California Gov. Newsom unveils historic $97.5 billion budget surplus

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

Newsom unveiled a revised price range plan of just over $300 billion for the subsequent fiscal 12 months, the highest in state history and fueled by surging tax revenues. The state has collected $55 billion more in taxes than officials expected in January, leaving it with an estimated $97.5 billion surplus.

Which means Newsom, a Democrat, has tens of billions of dollars more to spend on new and existing initiatives as he seeks re-election in the fall. He plans further spending to tackle the continued drought, to assist extra women get abortions in California and to offset rising prices of meals, gas and different items as a result 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 price range, which takes effect July 1.

Newsom said one in all his prime funds priorities is offering Californians aid from inflation.

“Persons are feeling deep stress, deep anxiousness,” he stated.

He’s proposed giving $400 checks to registered car homeowners in the state, with up to two checks per particular person. That may cost the state about $11.5 billion, he stated. Although the cash would only go to automobile owners, Newsom said it needs to be thought of “inflation refund and reduction.”

“For you, it may very well be a rebate to handle the problem of groceries, it may very well be a rebate to address the other price burdens that are placed on you,” he stated.

Democratic lawmakers, although, have a unique idea on methods to present relief. They need to give $200 checks only to these beneath a certain revenue degree.

Republicans, meanwhile, say moderately than a examine Newsom should suspend the state’s highest-in-the nation gas tax for one 12 months. They’ve additionally asked him to extend a tax credit for renters and provide new tax credit to college students.

“Senate Republicans imagine there's a better way to put money into the state,” said Sen. Rosilicie Ochoa Bogh of Yucaipa.