California Gov. Newsom unveils historic $97.5 billion funds surplus

SACRAMENTO, Calif. — California is entering the next funds 12 months with a record-smashing surplus of almost $100 billion, Gov. Gavin Newsom mentioned Friday.

Newsom unveiled a revised budget plan of just over $300 billion for the subsequent fiscal yr, the highest in state historical past and fueled by surging tax revenues. The state has collected $55 billion more in taxes than officers 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 existing initiatives as he seeks re-election within the fall. He plans extra spending to tackle the ongoing drought, to help more women get abortions in California and to offset rising costs of meals, gasoline and other items due to inflation.

He’ll have to achieve 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 stated considered one of his prime finances priorities is providing Californians aid from inflation.

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

He’s proposed giving $400 checks to registered automotive owners within the state, with as much as two checks per particular person. That might value the state about $11.5 billion, he mentioned. Although the money would solely go to automotive owners, Newsom mentioned it ought to be thought of “inflation refund and aid.”

“For you, it may very well be a rebate to deal with the problem of groceries, it may very well be a rebate to address the other cost burdens that are placed on you,” he mentioned.

Democratic lawmakers, though, have a special thought on find out how to provide aid. They need to give $200 checks only to these under a certain income level.

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

“Senate Republicans consider there is a higher way to invest in the state,” stated Sen. Rosilicie Ochoa Bogh of Yucaipa.