California Gov. Newsom unveils historic $97.5 billion finances surplus

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

Newsom unveiled a revised budget plan of simply over $300 billion for the following fiscal yr, the highest in state historical past 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 within the fall. He plans further spending to tackle the continuing drought, to assist more girls get abortions in California and to offset rising prices of meals, fuel and different goods on account of inflation.

He’ll have to succeed in agreement with the Democratic-led legislature on all of his proposals. They have until the tip of June to finalize the budget, which takes effect July 1.

Newsom mentioned certainly one of his prime funds priorities is providing Californians relief from inflation.

“Persons are feeling deep stress, deep nervousness,” he mentioned.

He’s proposed giving $400 checks to registered car house owners within the state, with up to two checks per individual. That might value the state about $11.5 billion, he mentioned. Though the money would only go to automobile homeowners, Newsom stated it must be thought of “inflation refund and reduction.”

“For you, it could possibly be a rebate to handle the problem of groceries, it may very well be a rebate to handle the other cost burdens which might be placed on you,” he said.

Democratic lawmakers, though, have a distinct idea on provide relief. They need to give $200 checks only to those beneath a sure income degree.

Republicans, in the meantime, say reasonably than a examine Newsom should suspend the state’s highest-in-the nation fuel tax for one year. They’ve additionally asked him to extend a tax credit score for renters and supply new tax credits to college students.

“Senate Republicans consider there is a better option to spend money on the state,” stated Sen. Rosilicie Ochoa Bogh of Yucaipa.