California Gov. Newsom unveils historic $97.5 billion price range surplus

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

Newsom unveiled a revised budget plan of just over $300 billion for the next fiscal 12 months, the highest in state history 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 current initiatives as he seeks re-election in the fall. He plans extra spending to sort out the ongoing drought, to help more girls get abortions in California and to offset rising prices of food, fuel and different goods on account of inflation.

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

Newsom mentioned one among his prime budget priorities is offering Californians aid from inflation.

“People are feeling deep stress, deep anxiousness,” he said.

He’s proposed giving $400 checks to registered car owners in the state, with as much as two checks per person. That will cost the state about $11.5 billion, he said. Though the cash would solely go to automotive homeowners, Newsom mentioned it should be considered “inflation refund and relief.”

“For you, it may very well be a rebate to address the difficulty of groceries, it could be a rebate to deal with the opposite value burdens that are placed on you,” he stated.

Democratic lawmakers, though, have a distinct thought on how you can provide aid. They wish to give $200 checks solely to those below a sure revenue degree.

Republicans, meanwhile, say somewhat than a test Newsom should suspend the state’s highest-in-the nation gasoline tax for one 12 months. They’ve also requested him to increase a tax credit for renters and offer new tax credits to college students.

“Senate Republicans believe there is a higher solution to spend money on the state,” said Sen. Rosilicie Ochoa Bogh of Yucaipa.