California Gov. Newsom unveils historic $97.5 billion budget surplus

SACRAMENTO, Calif. — California is coming into the next finances 12 months with a record-smashing surplus of practically $100 billion, Gov. Gavin Newsom said Friday.

Newsom unveiled a revised funds plan of simply over $300 billion for the following fiscal yr, the very best in state history and fueled by surging tax revenues. The state has collected $55 billion extra in taxes than officials anticipated in January, leaving it with an estimated $97.5 billion surplus.

That 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 additional spending to tackle the ongoing drought, to help extra women get abortions in California and to offset rising costs of meals, gas and different items due 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 funds, which takes effect July 1.

Newsom stated one in every of his prime funds priorities is providing Californians reduction from inflation.

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

He’s proposed giving $400 checks to registered automobile house owners in the state, with up to two checks per particular person. That may cost the state about $11.5 billion, he said. Though the cash would only go to car homeowners, Newsom mentioned it ought to be thought of “inflation refund and reduction.”

“For you, it could possibly be a rebate to handle the issue of groceries, it may very well be a rebate to handle the opposite price burdens which are placed on you,” he mentioned.

Democratic lawmakers, though, have a special thought on learn how to provide aid. They wish to give $200 checks only to those below a sure earnings level.

Republicans, meanwhile, say rather than a verify Newsom ought to suspend the state’s highest-in-the nation gas tax for one year. They’ve additionally requested him to increase a tax credit score for renters and offer new tax credit to college students.

“Senate Republicans imagine there is a higher solution to put money into the state,” mentioned Sen. Rosilicie Ochoa Bogh of Yucaipa.