California Gov. Newsom unveils historic $97.5 billion finances surplus

SACRAMENTO, Calif. — California is coming into the subsequent budget year with a record-smashing surplus of almost $100 billion, Gov. Gavin Newsom mentioned Friday.

Newsom unveiled a revised funds plan of simply over $300 billion for the following fiscal 12 months, the highest 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 present initiatives as he seeks re-election within the fall. He plans further spending to deal with the continued drought, to help more ladies get abortions in California and to offset rising prices of meals, gas and other goods 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 effect July 1.

Newsom mentioned considered one of his prime budget priorities is providing Californians reduction from inflation.

“Individuals 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 will price the state about $11.5 billion, he stated. Although the cash would only go to automobile homeowners, Newsom said it ought to be thought-about “inflation refund and reduction.”

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

Democratic lawmakers, though, have a distinct thought on easy methods to present relief. They want to give $200 checks solely to these beneath a certain revenue degree.

Republicans, meanwhile, say rather than a check Newsom should suspend the state’s highest-in-the nation gasoline tax for one yr. They’ve also asked him to increase a tax credit for renters and supply new tax credits to students.

“Senate Republicans imagine there is a better strategy to invest in the state,” said Sen. Rosilicie Ochoa Bogh of Yucaipa.