California Gov. Newsom unveils historic $97.5 billion budget surplus

SACRAMENTO, Calif. — California is entering the subsequent funds yr with a record-smashing surplus of practically $100 billion, Gov. Gavin Newsom stated Friday.

Newsom unveiled a revised budget plan of simply over $300 billion for the next fiscal yr, the best 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.

Meaning Newsom, a Democrat, has tens of billions of dollars extra to spend on new and current initiatives as he seeks re-election within the fall. He plans additional spending to tackle the continued drought, to assist extra women get abortions in California and to offset rising prices of food, gas and different goods as a result of inflation.

He’ll have to reach settlement with the Democratic-led legislature on all of his proposals. They have until the tip of June to finalize the budget, which takes effect July 1.

Newsom stated one in every of his high budget priorities is offering Californians reduction from inflation.

“Persons are feeling deep stress, deep anxiousness,” he stated.

He’s proposed giving $400 checks to registered car house owners in the state, with up to two checks per particular person. That might price the state about $11.5 billion, he stated. Though the cash would solely go to automobile house owners, Newsom stated it ought to be thought of “inflation refund and reduction.”

“For you, it could possibly be a rebate to handle the difficulty of groceries, it could possibly be a rebate to address the opposite price burdens which might be placed on you,” he stated.

Democratic lawmakers, though, have a different idea on methods to present reduction. They want to give $200 checks solely to these beneath a certain revenue degree.

Republicans, meanwhile, say slightly than a examine Newsom should droop the state’s highest-in-the nation gasoline tax for one yr. They’ve additionally requested him to increase a tax credit score for renters and offer new tax credits to students.

“Senate Republicans consider there is a better technique to put money into the state,” said Sen. Rosilicie Ochoa Bogh of Yucaipa.