California Gov. Newsom unveils historic $97.5 billion funds surplus

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

Newsom unveiled a revised finances plan of just over $300 billion for the next fiscal 12 months, the highest in state history and fueled by surging tax revenues. The state has collected $55 billion more in taxes than officials expected in January, leaving it with an estimated $97.5 billion surplus.

Meaning Newsom, a Democrat, has tens of billions of dollars more to spend on new and present initiatives as he seeks re-election in the fall. He plans additional spending to tackle the continuing drought, to help extra women get abortions in California and to offset rising prices of meals, fuel and other items resulting from inflation.

He’ll have to succeed in agreement with the Democratic-led legislature on all of his proposals. They have until the top of June to finalize the price range, which takes impact July 1.

Newsom said one among his high funds priorities is providing Californians reduction from inflation.

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

He’s proposed giving $400 checks to registered car homeowners within the state, with as much as two checks per particular person. That will value the state about $11.5 billion, he said. Though the money would only go to automobile owners, Newsom said it needs to be thought of “inflation refund and aid.”

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

Democratic lawmakers, though, have a unique idea on how to present aid. They wish to give $200 checks only to these beneath a sure revenue level.

Republicans, meanwhile, say fairly than a verify Newsom should droop the state’s highest-in-the nation gas tax for one yr. They’ve also asked him to extend a tax credit score for renters and supply new tax credit to students.

“Senate Republicans imagine there's a higher strategy to spend money on the state,” stated Sen. Rosilicie Ochoa Bogh of Yucaipa.