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

SACRAMENTO, Calif. — California is getting into the subsequent price range yr with a record-smashing surplus of almost $100 billion, Gov. Gavin Newsom said Friday.

Newsom unveiled a revised finances plan of simply over $300 billion for the next fiscal year, the best in state historical past and fueled by surging tax revenues. The state has collected $55 billion extra in taxes than officials 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 existing initiatives as he seeks re-election within the fall. He plans further spending to deal with the continued drought, to assist extra women get abortions in California and to offset rising costs of food, fuel and other goods as a consequence of inflation.

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

Newsom mentioned one of his top funds priorities is offering Californians relief from inflation.

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

He’s proposed giving $400 checks to registered car homeowners within the state, with up to two checks per person. That might price the state about $11.5 billion, he stated. Though the money would only go to automotive owners, Newsom said it ought to be thought of “inflation refund and aid.”

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

Democratic lawmakers, though, have a unique thought on easy methods to provide relief. They wish to give $200 checks only to these beneath a sure income stage.

Republicans, meanwhile, say rather than a verify Newsom ought to droop the state’s highest-in-the nation gas tax for one yr. They’ve also requested him to extend a tax credit for renters and supply new tax credits to students.

“Senate Republicans believe there is a higher option to invest in the state,” stated Sen. Rosilicie Ochoa Bogh of Yucaipa.