California Gov. Newsom unveils historic $97.5 billion finances surplus

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

Newsom unveiled a revised finances plan of simply over $300 billion for the next fiscal year, the highest in state history and fueled by surging tax revenues. The state has collected $55 billion extra in taxes than officers expected in January, leaving it with an estimated $97.5 billion surplus.

Meaning Newsom, a Democrat, has tens of billions of dollars extra to spend on new and present initiatives as he seeks re-election in the fall. He plans extra spending to tackle the continuing drought, to assist more women get abortions in California and to offset rising costs of food, gasoline and other items attributable to inflation.

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

Newsom mentioned considered one of his prime price range priorities is offering Californians reduction from inflation.

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

He’s proposed giving $400 checks to registered automobile owners in the state, with up to two checks per individual. That would price the state about $11.5 billion, he said. Although the cash would only go to car owners, Newsom said it should be thought of “inflation refund and aid.”

“For you, it could possibly be a rebate to deal with the problem of groceries, it may very well be a rebate to address the other price burdens which might be placed on you,” he stated.

Democratic lawmakers, though, have a different idea on find out how to provide reduction. They want to give $200 checks only to those beneath a certain income degree.

Republicans, meanwhile, say reasonably than a test Newsom should suspend the state’s highest-in-the nation gasoline tax for one yr. They’ve also asked him to increase a tax credit for renters and supply new tax credit to college students.

“Senate Republicans consider there's a better way to spend money on the state,” mentioned Sen. Rosilicie Ochoa Bogh of Yucaipa.