California Gov. Newsom unveils historic $97.5 billion budget surplus

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

Newsom unveiled a revised funds plan of just over $300 billion for the next fiscal yr, the best in state historical past 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 existing initiatives as he seeks re-election in the fall. He plans extra spending to sort out the ongoing drought, to help more women get abortions in California and to offset rising costs of food, gasoline and other items attributable to inflation.

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

Newsom mentioned one among his high price range priorities is providing Californians relief from inflation.

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

He’s proposed giving $400 checks to registered automotive homeowners in the state, with as much as two checks per particular person. That would cost the state about $11.5 billion, he mentioned. Though the money would solely go to automotive house owners, Newsom mentioned it must be thought of “inflation refund and aid.”

“For you, it could be a rebate to address the difficulty of groceries, it may very well be a rebate to address the other cost burdens which might be placed on you,” he said.

Democratic lawmakers, though, have a distinct thought on the way to present relief. They wish to give $200 checks solely to those below a sure revenue stage.

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

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