California Gov. Newsom unveils historic $97.5 billion finances surplus

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

Newsom unveiled a revised budget plan of just over $300 billion for the next fiscal 12 months, the best in state history 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 current initiatives as he seeks re-election in the fall. He plans extra spending to deal with the continuing drought, to assist extra girls get abortions in California and to offset rising prices of food, gasoline and different items as a result of inflation.

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

Newsom stated one among his prime budget priorities is providing Californians reduction from inflation.

“Persons 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 individual. That might price the state about $11.5 billion, he said. Though the money would only go to car house owners, Newsom said it should be considered “inflation refund and reduction.”

“For you, it may very well be a rebate to deal with the issue of groceries, it might be a rebate to handle the other cost burdens which might be placed on you,” he mentioned.

Democratic lawmakers, though, have a distinct concept on find out how to present aid. They want to give $200 checks only to these beneath a sure earnings stage.

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

“Senate Republicans believe there's a better method to spend money on the state,” mentioned Sen. Rosilicie Ochoa Bogh of Yucaipa.