California Gov. Newsom unveils historic $97.5 billion budget surplus

SACRAMENTO, Calif. — California is entering the next finances yr with a record-smashing surplus of nearly $100 billion, Gov. Gavin Newsom mentioned Friday.

Newsom unveiled a revised budget plan of just over $300 billion for the next fiscal year, the very best in state history and fueled by surging tax revenues. The state has collected $55 billion more 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 in the fall. He plans further spending to sort out the continued drought, to help extra women get abortions in California and to offset rising costs of meals, fuel and other items due to inflation.

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

Newsom said one of his high budget priorities is providing Californians relief from inflation.

“Individuals are feeling deep stress, deep nervousness,” he mentioned.

He’s proposed giving $400 checks to registered automobile owners within the state, with as much as two checks per individual. That may price the state about $11.5 billion, he stated. Although the money would only go to automotive house owners, Newsom said it needs to be thought-about “inflation refund and reduction.”

“For you, it could be a rebate to address the difficulty of groceries, it could possibly be a rebate to address the other value burdens which can be positioned on you,” he said.

Democratic lawmakers, though, have a unique concept on the right way to provide aid. They need to give $200 checks solely to those beneath a certain earnings stage.

Republicans, in the meantime, say relatively than a verify Newsom should droop the state’s highest-in-the nation fuel tax for one yr. They’ve additionally asked him to extend a tax credit score for renters and supply new tax credits to college students.

“Senate Republicans consider there is a higher method to invest in the state,” mentioned Sen. Rosilicie Ochoa Bogh of Yucaipa.