California Gov. Newsom unveils historic $97.5 billion funds surplus

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

Newsom unveiled a revised finances 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 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 existing initiatives as he seeks re-election within the fall. He plans additional spending to tackle the ongoing drought, to help extra ladies get abortions in California and to offset rising costs of meals, fuel and different goods on account of inflation.

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

Newsom mentioned one in every of his prime price range priorities is offering Californians relief from inflation.

“Individuals are feeling deep stress, deep anxiety,” he said.

He’s proposed giving $400 checks to registered automotive homeowners 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 money would only go to car homeowners, Newsom mentioned it must be thought-about “inflation refund and relief.”

“For you, it might be a rebate to deal with the issue of groceries, it might be a rebate to handle the other price burdens which can be placed on you,” he stated.

Democratic lawmakers, although, have a unique thought on how to provide aid. They want to give $200 checks solely to those below a sure earnings stage.

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

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