California Gov. Newsom unveils historic $97.5 billion budget surplus

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

Newsom unveiled a revised funds plan of just over $300 billion for the next fiscal year, the highest in state historical past and fueled by surging tax revenues. The state has collected $55 billion extra in taxes than officials 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 sort out the ongoing drought, to assist extra girls get abortions in California and to offset rising costs of food, gas and different items attributable to inflation.

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

Newsom stated certainly one of his high finances priorities is offering Californians relief from inflation.

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

He’s proposed giving $400 checks to registered automotive house owners in the state, with as much as two checks per particular person. That might price the state about $11.5 billion, he said. Though the cash would solely go to car homeowners, Newsom stated it must be thought of “inflation refund and reduction.”

“For you, it could be a rebate to deal with the difficulty of groceries, it might be a rebate to address the opposite cost burdens which might be positioned on you,” he stated.

Democratic lawmakers, though, have a distinct idea on tips on how to provide reduction. They need to give $200 checks solely to these below a sure income level.

Republicans, in the meantime, say quite than a check Newsom should suspend the state’s highest-in-the nation gas tax for one 12 months. They’ve also asked him to extend a tax credit score for renters and provide new tax credits to students.

“Senate Republicans imagine there is a better option to invest in the state,” said Sen. Rosilicie Ochoa Bogh of Yucaipa.