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

SACRAMENTO, Calif. — California is coming into the next price range year with a record-smashing surplus of practically $100 billion, Gov. Gavin Newsom said Friday.

Newsom unveiled a revised finances plan of just over $300 billion for the subsequent fiscal yr, the best in state historical past and fueled by surging tax revenues. The state has collected $55 billion extra in taxes than officers 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 extra spending to deal with the continuing drought, to help extra ladies get abortions in California and to offset rising costs of food, gas and different goods because of inflation.

He’ll have to reach agreement with the Democratic-led legislature on all of his proposals. They have until the tip of June to finalize the budget, which takes impact July 1.

Newsom said certainly one of his high finances priorities is offering Californians reduction from inflation.

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

He’s proposed giving $400 checks to registered car house owners within the state, with as much as two checks per particular person. That would price the state about $11.5 billion, he stated. Though the cash would solely go to car house owners, Newsom said it ought to be thought-about “inflation refund and reduction.”

“For you, it could possibly be a rebate to address the difficulty of groceries, it may very well be a rebate to address the other cost burdens that are positioned on you,” he stated.

Democratic lawmakers, although, have a special concept on easy methods to provide reduction. They need to give $200 checks solely to these below a certain income degree.

Republicans, in the meantime, say rather than a test Newsom ought to suspend the state’s highest-in-the nation gasoline tax for one year. They’ve additionally asked him to increase a tax credit for renters and provide new tax credit to college students.

“Senate Republicans imagine there is a better solution to put money into the state,” stated Sen. Rosilicie Ochoa Bogh of Yucaipa.