California Gov. Newsom unveils historic $97.5 billion finances surplus

SACRAMENTO, Calif. — California is coming into the next funds year with a record-smashing surplus of practically $100 billion, Gov. Gavin Newsom said Friday.

Newsom unveiled a revised price range plan of just over $300 billion for the following fiscal year, the best in state historical past and fueled by surging tax revenues. The state has collected $55 billion more in taxes than officers 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 existing initiatives as he seeks re-election in the fall. He plans extra spending to sort out the continued drought, to help extra women get abortions in California and to offset rising prices of meals, gas and different items attributable to inflation.

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

Newsom said one in all his high funds priorities is offering Californians reduction from inflation.

“Individuals are feeling deep stress, deep anxiety,” he said.

He’s proposed giving $400 checks to registered automobile homeowners within the state, with as much as two checks per person. That might price the state about $11.5 billion, he said. Though the money would solely go to car owners, Newsom mentioned it must be thought of “inflation refund and relief.”

“For you, it could be a rebate to deal with the issue of groceries, it may very well be a rebate to handle the opposite value burdens which might be positioned on you,” he mentioned.

Democratic lawmakers, though, have a different concept on the best way to provide aid. They need to give $200 checks solely to those beneath a certain revenue level.

Republicans, in the meantime, say fairly than a examine Newsom should droop the state’s highest-in-the nation gasoline tax for one 12 months. They’ve additionally requested him to extend a tax credit for renters and offer new tax credit to students.

“Senate Republicans consider there is a higher method to put money into the state,” stated Sen. Rosilicie Ochoa Bogh of Yucaipa.