California Gov. Newsom unveils historic $97.5 billion budget surplus

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

Newsom unveiled a revised funds plan of just over $300 billion for the following fiscal yr, the very best in state historical past and fueled by surging tax revenues. The state has collected $55 billion more in taxes than officials anticipated 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 current initiatives as he seeks re-election within the fall. He plans additional spending to deal with the continued drought, to help extra girls get abortions in California and to offset rising prices of food, fuel and different items resulting from inflation.

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

Newsom mentioned one in all his top finances priorities is providing Californians relief from inflation.

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

He’s proposed giving $400 checks to registered automotive homeowners within the state, with up to two checks per person. That would price the state about $11.5 billion, he said. Although the money would only go to automotive homeowners, Newsom said it needs to be considered “inflation refund and relief.”

“For you, it could possibly be a rebate to deal with the problem of groceries, it may very well be a rebate to handle the other price burdens which can be positioned on you,” he stated.

Democratic lawmakers, although, have a distinct thought on easy methods to present aid. They need to give $200 checks only to those under a sure income level.

Republicans, meanwhile, say quite than a verify Newsom should droop 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 offer new tax credits to college students.

“Senate Republicans believe there is a higher technique to spend money on the state,” said Sen. Rosilicie Ochoa Bogh of Yucaipa.