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

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

Newsom unveiled a revised price range plan of just over $300 billion for the next fiscal 12 months, the very best in state history and fueled by surging tax revenues. The state has collected $55 billion more in taxes than officials expected in January, leaving it with an estimated $97.5 billion surplus.

Meaning Newsom, a Democrat, has tens of billions of dollars more to spend on new and existing initiatives as he seeks re-election within the fall. He plans additional spending to sort out the continued drought, to assist more girls get abortions in California and to offset rising prices of meals, gas and different goods because of inflation.

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

Newsom mentioned one of his high finances priorities is providing Californians reduction from inflation.

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

He’s proposed giving $400 checks to registered automobile owners within the state, with up to two checks per particular person. That will cost the state about $11.5 billion, he stated. Although the cash would solely go to automotive house owners, Newsom stated it should be thought of “inflation refund and aid.”

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

Democratic lawmakers, though, have a distinct idea on how you can present aid. They wish to give $200 checks solely to these beneath a certain income degree.

Republicans, in the meantime, say fairly than a verify Newsom should suspend the state’s highest-in-the nation fuel tax for one 12 months. They’ve also requested him to extend a tax credit score for renters and supply new tax credits to students.

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