California Gov. Newsom unveils historic $97.5 billion funds surplus

SACRAMENTO, Calif. — California is entering the next funds year with a record-smashing surplus of nearly $100 billion, Gov. Gavin Newsom mentioned Friday.

Newsom unveiled a revised funds plan of simply 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 more in taxes than officers anticipated 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 within the fall. He plans additional spending to sort out the continued drought, to help more ladies get abortions in California and to offset rising prices of food, gasoline and different goods as a consequence of inflation.

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

Newsom said one of his top funds priorities is providing Californians reduction from inflation.

“People are feeling deep stress, deep anxiousness,” he said.

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

“For you, it could possibly be a rebate to address the problem of groceries, it might be a rebate to address the other value burdens that are placed on you,” he said.

Democratic lawmakers, though, have a special concept on methods to provide aid. They want to give $200 checks solely to those below a certain earnings degree.

Republicans, in the meantime, say rather than a verify Newsom ought to droop the state’s highest-in-the nation fuel tax for one year. They’ve additionally requested him to extend a tax credit for renters and supply new tax credits to college students.

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