California Gov. Newsom unveils historic $97.5 billion budget surplus

SACRAMENTO, Calif. — California is entering the next funds 12 months with a record-smashing surplus of practically $100 billion, Gov. Gavin Newsom mentioned Friday.

Newsom unveiled a revised price range plan of just over $300 billion for the following fiscal 12 months, the best in state history 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 current initiatives as he seeks re-election within the fall. He plans further spending to sort out the ongoing drought, to help extra women get abortions in California and to offset rising costs of meals, fuel and other items because of inflation.

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

Newsom mentioned one of his high funds priorities is providing Californians reduction from inflation.

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

He’s proposed giving $400 checks to registered automotive owners in the state, with as much as two checks per person. That might price the state about $11.5 billion, he stated. Although the money would only go to automotive house owners, Newsom mentioned it ought to be thought-about “inflation refund and aid.”

“For you, it might be a rebate to handle the issue of groceries, it could possibly be a rebate to deal with the opposite value burdens which are placed on you,” he mentioned.

Democratic lawmakers, though, have a different idea on methods to present reduction. They wish to give $200 checks solely to those beneath a sure income level.

Republicans, meanwhile, say fairly than a verify Newsom should suspend the state’s highest-in-the nation gas tax for one 12 months. They’ve also asked him to increase a tax credit score for renters and offer new tax credits to college students.

“Senate Republicans consider there's a higher option to spend money on the state,” mentioned Sen. Rosilicie Ochoa Bogh of Yucaipa.