California Gov. Newsom unveils historic $97.5 billion budget surplus

SACRAMENTO, Calif. — California is getting into the next budget yr with a record-smashing surplus of practically $100 billion, Gov. Gavin Newsom stated Friday.

Newsom unveiled a revised funds 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 extra in taxes than officials expected 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 sort out the continuing drought, to help more girls get abortions in California and to offset rising costs of food, fuel and other items as a consequence of inflation.

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

Newsom stated one in every of his prime price range priorities is offering Californians aid from inflation.

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

He’s proposed giving $400 checks to registered automotive homeowners in the state, with up to two checks per individual. That will price the state about $11.5 billion, he said. Although the cash would solely go to automobile homeowners, Newsom mentioned it ought to be considered “inflation refund and aid.”

“For you, it could possibly be a rebate to deal with the issue of groceries, it could be a rebate to handle the opposite cost burdens that are placed on you,” he mentioned.

Democratic lawmakers, although, have a different thought on tips on how to present relief. They need to give $200 checks solely to these below a sure income level.

Republicans, meanwhile, say rather than a check 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 for renters and offer new tax credits to students.

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