California Gov. Newsom unveils historic $97.5 billion funds surplus

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

Newsom unveiled a revised funds plan of just over $300 billion for the next fiscal year, the very best in state historical past and fueled by surging tax revenues. The state has collected $55 billion more in taxes than officials anticipated in January, leaving it with an estimated $97.5 billion surplus.

Meaning Newsom, a Democrat, has tens of billions of dollars more to spend on new and present initiatives as he seeks re-election within the fall. He plans further spending to sort out the continuing drought, to help extra girls get abortions in California and to offset rising prices of meals, gasoline and other goods attributable to inflation.

He’ll have to reach agreement with the Democratic-led legislature on all of his proposals. They've till the end of June to finalize the funds, which takes impact July 1.

Newsom said one among his high budget 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 owners within the state, with as much as two checks per individual. That may cost the state about $11.5 billion, he stated. Although the cash would only go to automobile owners, Newsom said it should be thought of “inflation refund and aid.”

“For you, it may very well be a rebate to deal with the problem of groceries, it might be a rebate to address the other value burdens which can be placed on you,” he mentioned.

Democratic lawmakers, though, have a special concept on how you can present relief. They need to give $200 checks only to these beneath a sure revenue stage.

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

“Senate Republicans believe there's a higher way to invest in the state,” stated Sen. Rosilicie Ochoa Bogh of Yucaipa.