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

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

Newsom unveiled a revised price range plan of just over $300 billion for the next fiscal yr, the very best 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 more to spend on new and present initiatives as he seeks re-election within the fall. He plans additional spending to deal with the ongoing drought, to help extra girls get abortions in California and to offset rising costs of food, gas and different items as a result of inflation.

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

Newsom mentioned one in all his high price range priorities is offering Californians relief from inflation.

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

He’s proposed giving $400 checks to registered car homeowners within the state, with as much as two checks per person. That will value the state about $11.5 billion, he said. Although the money would only go to automotive owners, Newsom mentioned it must be considered “inflation refund and aid.”

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

Democratic lawmakers, although, have a different concept on present relief. They want to give $200 checks only to those under a sure earnings degree.

Republicans, meanwhile, say rather than a verify Newsom ought to suspend the state’s highest-in-the nation fuel tax for one 12 months. They’ve also requested him to extend a tax credit score for renters and supply new tax credit to students.

“Senate Republicans consider there's a higher method to spend money on the state,” said Sen. Rosilicie Ochoa Bogh of Yucaipa.