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

SACRAMENTO, Calif. — California is entering the following price range yr with a record-smashing surplus of nearly $100 billion, Gov. Gavin Newsom said Friday.

Newsom unveiled a revised budget plan of simply over $300 billion for the subsequent fiscal 12 months, the best in state historical past 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.

That means Newsom, a Democrat, has tens of billions of dollars more to spend on new and present initiatives as he seeks re-election within the fall. He plans extra spending to tackle the continued drought, to help more girls get abortions in California and to offset rising costs of meals, fuel and different goods because of inflation.

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

Newsom mentioned one of his top price range priorities is providing Californians reduction from inflation.

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

He’s proposed giving $400 checks to registered car homeowners within the state, with up to two checks per individual. That might value the state about $11.5 billion, he stated. Although the cash would only go to automotive house owners, Newsom stated it should be thought of “inflation refund and aid.”

“For you, it could possibly be a rebate to handle the problem of groceries, it may very well be a rebate to handle the opposite cost burdens that are placed on you,” he mentioned.

Democratic lawmakers, though, have a different idea on learn how to present relief. They want to give $200 checks solely to these under a certain earnings degree.

Republicans, meanwhile, say rather than a check Newsom ought to suspend the state’s highest-in-the nation fuel tax for one 12 months. They’ve also asked him to increase a tax credit for renters and provide new tax credit to students.

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