California Gov. Newsom unveils historic $97.5 billion budget surplus

SACRAMENTO, Calif. — California is coming into the following budget year with a record-smashing surplus of practically $100 billion, Gov. Gavin Newsom mentioned Friday.

Newsom unveiled a revised budget plan of just over $300 billion for the next fiscal year, the highest in state historical past and fueled by surging tax revenues. The state has collected $55 billion extra in taxes than officers anticipated in January, leaving it with an estimated $97.5 billion surplus.

That means Newsom, a Democrat, has tens of billions of dollars more to spend on new and present initiatives as he seeks re-election in the fall. He plans further spending to sort out the continuing drought, to assist extra women get abortions in California and to offset rising costs of meals, fuel and different goods as a consequence of inflation.

He’ll have to reach agreement with the Democratic-led legislature on all of his proposals. They've till the end of June to finalize the finances, which takes impact July 1.

Newsom mentioned considered one of his prime price range priorities is offering Californians aid from inflation.

“People are feeling deep stress, deep anxiety,” he said.

He’s proposed giving $400 checks to registered automobile house owners in the state, with up to two checks per individual. That will value the state about $11.5 billion, he stated. Though the cash would only go to automobile house owners, Newsom said it should be thought-about “inflation refund and relief.”

“For you, it could be a rebate to handle the difficulty of groceries, it might be a rebate to address the other price burdens which might be positioned on you,” he stated.

Democratic lawmakers, although, have a special concept on the way to present aid. They wish to give $200 checks solely to these beneath a certain revenue level.

Republicans, in the meantime, say reasonably than a check Newsom should droop the state’s highest-in-the nation gas tax for one 12 months. They’ve additionally asked him to increase a tax credit for renters and provide new tax credit to college students.

“Senate Republicans imagine there's a better option to invest in the state,” stated Sen. Rosilicie Ochoa Bogh of Yucaipa.