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

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

Newsom unveiled a revised price range plan of just over $300 billion for the subsequent 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 anticipated 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 current initiatives as he seeks re-election in the fall. He plans additional spending to tackle the continued drought, to help extra girls get abortions in California and to offset rising prices of meals, fuel and other goods because of inflation.

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

Newsom said one among his top price range priorities is offering Californians reduction from inflation.

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

He’s proposed giving $400 checks to registered automobile owners in the state, with as much as two checks per person. That might price the state about $11.5 billion, he said. Though the cash would only go to automotive homeowners, Newsom mentioned it should be thought-about “inflation refund and reduction.”

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

Democratic lawmakers, though, have a unique idea on the way to present relief. They want to give $200 checks solely to these beneath a certain revenue stage.

Republicans, meanwhile, say reasonably than a test Newsom should suspend the state’s highest-in-the nation gasoline tax for one yr. They’ve also asked him to extend a tax credit for renters and supply new tax credit to college students.

“Senate Republicans consider there's a higher way to invest in the state,” said Sen. Rosilicie Ochoa Bogh of Yucaipa.