California Gov. Newsom unveils historic $97.5 billion budget surplus

SACRAMENTO, Calif. — California is entering the subsequent price range 12 months with a record-smashing surplus of practically $100 billion, Gov. Gavin Newsom mentioned Friday.

Newsom unveiled a revised finances plan of just over $300 billion for the following fiscal yr, the highest in state historical past and fueled by surging tax revenues. The state has collected $55 billion extra in taxes than officers expected 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 current initiatives as he seeks re-election in the fall. He plans further spending to sort out the ongoing 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 succeed in settlement with the Democratic-led legislature on all of his proposals. They've till the tip of June to finalize the finances, which takes effect July 1.

Newsom said one in all his top funds priorities is providing Californians reduction from inflation.

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

He’s proposed giving $400 checks to registered automotive owners in the state, with up to two checks per particular person. That will value the state about $11.5 billion, he stated. Although the cash would only go to automobile homeowners, Newsom stated it needs to be considered “inflation refund and aid.”

“For you, it may very well be a rebate to deal with the difficulty of groceries, it could be a rebate to deal with the opposite value burdens that are placed on you,” he said.

Democratic lawmakers, although, have a distinct thought on the best way to present relief. They want to give $200 checks solely to those beneath a sure earnings level.

Republicans, in the meantime, say somewhat than a verify Newsom ought to suspend the state’s highest-in-the nation fuel tax for one yr. They’ve additionally asked him to increase a tax credit score for renters and provide new tax credits to students.

“Senate Republicans believe there is a higher option to put money into the state,” mentioned Sen. Rosilicie Ochoa Bogh of Yucaipa.