California Gov. Newsom unveils historic $97.5 billion funds surplus

SACRAMENTO, Calif. — California is coming into the subsequent finances yr with a record-smashing surplus of almost $100 billion, Gov. Gavin Newsom mentioned Friday.

Newsom unveiled a revised price range plan of simply 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 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 current initiatives as he seeks re-election in the fall. He plans further spending to tackle the continued drought, to help more women get abortions in California and to offset rising costs of food, gas and other items on account of inflation.

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

Newsom stated one of his high budget priorities is offering Californians relief from inflation.

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

He’s proposed giving $400 checks to registered automobile homeowners in the state, with as much as two checks per individual. That may price the state about $11.5 billion, he mentioned. Though the money would solely go to automobile owners, Newsom mentioned it ought to be considered “inflation refund and relief.”

“For you, it might be a rebate to handle the problem of groceries, it may very well be a rebate to handle the opposite cost burdens which can be positioned on you,” he said.

Democratic lawmakers, although, have a unique idea on the right way to provide aid. They want to give $200 checks solely to these under a certain revenue degree.

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

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