California Gov. Newsom unveils historic $97.5 billion budget surplus

SACRAMENTO, Calif. — California is coming into the subsequent funds 12 months 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 following fiscal 12 months, the highest in state history and fueled by surging tax revenues. The state has collected $55 billion extra 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 present initiatives as he seeks re-election in the fall. He plans further spending to deal with the continued drought, to help extra ladies get abortions in California and to offset rising prices of food, fuel and other items attributable to inflation.

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

Newsom said certainly one of his prime price range priorities is providing Californians relief from inflation.

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

He’s proposed giving $400 checks to registered automotive owners within the state, with as much as two checks per particular person. That will cost the state about $11.5 billion, he said. Though the money would solely go to automotive house owners, Newsom said it ought to be considered “inflation refund and relief.”

“For you, it might be a rebate to deal with the difficulty of groceries, it could possibly be a rebate to deal with the opposite price burdens that are placed on you,” he said.

Democratic lawmakers, although, have a distinct thought on find out how to provide aid. They need to give $200 checks solely to these under a certain revenue level.

Republicans, meanwhile, say relatively than a verify Newsom should suspend the state’s highest-in-the nation gas tax for one yr. They’ve additionally asked him to extend a tax credit for renters and offer new tax credit to college students.

“Senate Republicans consider there is a better approach to invest in the state,” mentioned Sen. Rosilicie Ochoa Bogh of Yucaipa.