California Gov. Newsom unveils historic $97.5 billion finances surplus

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

Newsom unveiled a revised finances 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 more in taxes than officers anticipated in January, leaving it with an estimated $97.5 billion surplus.

Meaning 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 further spending to sort out the continuing drought, to help extra women get abortions in California and to offset rising prices of meals, gasoline and different items due to inflation.

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

Newsom said one in every of his high price range priorities is providing Californians aid from inflation.

“People are feeling deep stress, deep anxiousness,” he stated.

He’s proposed giving $400 checks to registered car house owners within the state, with as much as two checks per person. That may value the state about $11.5 billion, he mentioned. Though the cash would only go to car owners, Newsom mentioned it needs to be thought-about “inflation refund and aid.”

“For you, it could be a rebate to handle the difficulty of groceries, it might be a rebate to address the other price burdens that are placed on you,” he stated.

Democratic lawmakers, though, have a distinct idea on easy methods to present aid. They want to give $200 checks only to those below a sure income stage.

Republicans, meanwhile, say somewhat than a examine Newsom should droop the state’s highest-in-the nation fuel tax for one year. They’ve also requested him to extend a tax credit for renters and provide new tax credits to college students.

“Senate Republicans believe there is a higher way to invest in the state,” said Sen. Rosilicie Ochoa Bogh of Yucaipa.