California Gov. Newsom unveils historic $97.5 billion budget surplus

SACRAMENTO, Calif. — California is coming into the following funds year with a record-smashing surplus of practically $100 billion, Gov. Gavin Newsom mentioned Friday.

Newsom unveiled a revised funds plan of simply over $300 billion for the subsequent fiscal yr, the very best in state history 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.

Meaning Newsom, a Democrat, has tens of billions of dollars more to spend on new and present initiatives as he seeks re-election in the fall. He plans extra spending to deal with the continuing drought, to help extra women get abortions in California and to offset rising prices of meals, fuel and other items because of inflation.

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

Newsom said considered one of his prime funds priorities is providing Californians relief from inflation.

“Persons are feeling deep stress, deep nervousness,” he said.

He’s proposed giving $400 checks to registered automobile house owners in the state, with up to two checks per particular person. That may cost the state about $11.5 billion, he mentioned. Though the cash would solely go to car homeowners, Newsom said it ought to be thought-about “inflation refund and aid.”

“For you, it could possibly be a rebate to handle the problem of groceries, it could be a rebate to deal with the other cost burdens which might be positioned on you,” he mentioned.

Democratic lawmakers, though, have a distinct idea on find out how to provide relief. They wish to give $200 checks only to these beneath a sure revenue degree.

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

“Senate Republicans believe there is a better technique to invest in the state,” mentioned Sen. Rosilicie Ochoa Bogh of Yucaipa.