California Gov. Newsom unveils historic $97.5 billion funds surplus

SACRAMENTO, Calif. — California is getting into the next finances yr with a record-smashing surplus of nearly $100 billion, Gov. Gavin Newsom mentioned Friday.

Newsom unveiled a revised price range plan of simply over $300 billion for the next fiscal 12 months, the best in state historical past and fueled by surging tax revenues. The state has collected $55 billion extra in taxes than officials expected in January, leaving it with an estimated $97.5 billion surplus.

Which means Newsom, a Democrat, has tens of billions of dollars extra to spend on new and present initiatives as he seeks re-election within the fall. He plans extra spending to sort out the continuing drought, to assist extra girls get abortions in California and to offset rising prices of meals, gas and different items because of inflation.

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

Newsom mentioned one in all his top finances priorities is providing Californians relief from inflation.

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

He’s proposed giving $400 checks to registered automobile homeowners in the state, with as much as two checks per individual. That might cost the state about $11.5 billion, he mentioned. Though the money would only go to automotive owners, Newsom stated it must be considered “inflation refund and relief.”

“For you, it could be a rebate to deal with the problem of groceries, it could possibly be a rebate to handle the opposite price burdens which are positioned on you,” he mentioned.

Democratic lawmakers, although, have a distinct thought on find out how to present reduction. They need to give $200 checks solely to those under a certain revenue degree.

Republicans, meanwhile, say quite than a check Newsom ought to suspend the state’s highest-in-the nation gas 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 imagine there is a better technique to spend money on the state,” said Sen. Rosilicie Ochoa Bogh of Yucaipa.