California Gov. Newsom unveils historic $97.5 billion budget surplus

SACRAMENTO, Calif. — California is coming into the next price range 12 months with a record-smashing surplus of almost $100 billion, Gov. Gavin Newsom stated Friday.

Newsom unveiled a revised finances plan of just over $300 billion for the next fiscal 12 months, the highest in state historical past 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.

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

He’ll have to succeed in settlement with the Democratic-led legislature on all of his proposals. They have till the end of June to finalize the funds, which takes effect July 1.

Newsom mentioned certainly one of his prime price range priorities is providing Californians reduction from inflation.

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

He’s proposed giving $400 checks to registered car homeowners within the state, with as much as two checks per individual. That would price the state about $11.5 billion, he mentioned. Though the money would solely go to automotive homeowners, Newsom said it needs 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 other price burdens which can be placed on you,” he stated.

Democratic lawmakers, although, have a special concept on tips on how to provide aid. They wish to give $200 checks only to these under a certain revenue level.

Republicans, in the meantime, say reasonably than a examine Newsom should droop the state’s highest-in-the nation gas tax for one 12 months. They’ve additionally asked him to increase a tax credit for renters and offer new tax credits to college students.

“Senate Republicans consider there's a higher option to put money into the state,” said Sen. Rosilicie Ochoa Bogh of Yucaipa.