California Gov. Newsom unveils historic $97.5 billion price range surplus

SACRAMENTO, Calif. — California is getting into the following funds yr with a record-smashing surplus of practically $100 billion, Gov. Gavin Newsom said Friday.

Newsom unveiled a revised funds plan of just over $300 billion for the following fiscal year, the very 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.

Which means Newsom, a Democrat, has tens of billions of dollars more to spend on new and present initiatives as he seeks re-election in the fall. He plans additional spending to deal with the continuing drought, to assist more women get abortions in California and to offset rising prices of food, gasoline and other items resulting from inflation.

He’ll have to reach settlement with the Democratic-led legislature on all of his proposals. They've till the top of June to finalize the budget, which takes impact July 1.

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

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

He’s proposed giving $400 checks to registered automobile owners within the state, with up to two checks per particular person. That might cost the state about $11.5 billion, he mentioned. Though the cash would solely go to automobile homeowners, Newsom said it must be thought-about “inflation refund and relief.”

“For you, it may very well be a rebate to address the difficulty of groceries, it might be a rebate to handle the opposite price burdens which are positioned on you,” he mentioned.

Democratic lawmakers, though, have a special concept on find out how to provide aid. They wish to give $200 checks only to those under a sure earnings degree.

Republicans, in the meantime, say reasonably than a verify Newsom should suspend the state’s highest-in-the nation gas tax for one yr. They’ve also asked him to increase a tax credit score for renters and supply new tax credit to college students.

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