California Gov. Newsom unveils historic $97.5 billion price range surplus

SACRAMENTO, Calif. — California is getting into the following funds yr with a record-smashing surplus of practically $100 billion, Gov. Gavin Newsom stated Friday.

Newsom unveiled a revised finances plan of just over $300 billion for the following fiscal 12 months, the very best in state historical past and fueled by surging tax revenues. The state has collected $55 billion extra in taxes than officials expected in January, leaving it with an estimated $97.5 billion surplus.

Which means Newsom, a Democrat, has tens of billions of dollars extra to spend on new and existing initiatives as he seeks re-election within the fall. He plans further spending to deal with the continued drought, to assist more women get abortions in California and to offset rising costs of food, fuel and different items as a consequence of inflation.

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

Newsom mentioned one among his top finances priorities is providing Californians relief from inflation.

“People are feeling deep stress, deep nervousness,” he stated.

He’s proposed giving $400 checks to registered car owners in the state, with as much as two checks per person. That might price the state about $11.5 billion, he mentioned. Though the money would solely go to automobile owners, Newsom mentioned it needs to be thought of “inflation refund and reduction.”

“For you, it could be a rebate to deal with the issue of groceries, it may very well be a rebate to handle the opposite value burdens which are positioned on you,” he said.

Democratic lawmakers, though, have a unique concept on learn how to provide reduction. They wish to give $200 checks only to those below a certain revenue level.

Republicans, meanwhile, say fairly than a check Newsom should droop the state’s highest-in-the nation fuel tax for one year. They’ve also requested him to extend a tax credit score for renters and offer new tax credit to college students.

“Senate Republicans believe there is a higher technique to put money into the state,” mentioned Sen. Rosilicie Ochoa Bogh of Yucaipa.