California Gov. Newsom unveils historic $97.5 billion budget surplus

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

Newsom unveiled a revised funds plan of simply 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 extra in taxes than officials 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 present initiatives as he seeks re-election within the fall. He plans additional spending to tackle the continued drought, to assist extra ladies get abortions in California and to offset rising costs of food, gas and other items due to inflation.

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

Newsom said one in every of his high finances priorities is providing Californians relief from inflation.

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

He’s proposed giving $400 checks to registered automobile owners within the state, with up to two checks per particular person. That would cost the state about $11.5 billion, he said. Though the cash would solely go to automotive owners, Newsom said it should be thought of “inflation refund and reduction.”

“For you, it could possibly be a rebate to address the problem of groceries, it could be a rebate to deal with the opposite value burdens that are placed on you,” he stated.

Democratic lawmakers, though, have a unique concept on the way to provide relief. They wish to give $200 checks solely to those below a certain revenue stage.

Republicans, meanwhile, say moderately than a verify Newsom should droop the state’s highest-in-the nation fuel tax for one 12 months. They’ve additionally asked him to extend a tax credit score for renters and supply new tax credit to students.

“Senate Republicans imagine there is a higher method to spend money on the state,” mentioned Sen. Rosilicie Ochoa Bogh of Yucaipa.