California Gov. Newsom unveils historic $97.5 billion funds surplus

SACRAMENTO, Calif. — California is getting into the next price range 12 months with a record-smashing surplus of nearly $100 billion, Gov. Gavin Newsom mentioned Friday.

Newsom unveiled a revised budget plan of simply 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 anticipated 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 current initiatives as he seeks re-election in the fall. He plans additional spending to deal with the continued drought, to help more ladies get abortions in California and to offset rising costs of meals, gasoline and other goods attributable to inflation.

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

Newsom said one in every of his high budget priorities is offering Californians relief from inflation.

“Persons are feeling deep stress, deep anxiety,” he mentioned.

He’s proposed giving $400 checks to registered automotive homeowners within the state, with up to two checks per individual. That might value the state about $11.5 billion, he mentioned. Though the money would solely go to car house owners, Newsom mentioned it needs to be thought-about “inflation refund and relief.”

“For you, it could possibly be a rebate to deal with the issue of groceries, it could possibly be a rebate to handle the opposite cost burdens that are positioned on you,” he mentioned.

Democratic lawmakers, though, have a distinct thought on how you can provide relief. They need to give $200 checks solely to these below a certain income degree.

Republicans, in the meantime, say quite than a test Newsom should droop the state’s highest-in-the nation gas tax for one 12 months. They’ve also asked him to extend a tax credit score for renters and offer new tax credit to students.

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