California Gov. Newsom unveils historic $97.5 billion finances surplus

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

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

That means 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 sort out the ongoing drought, to help more girls get abortions in California and to offset rising costs of food, fuel 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've until the top of June to finalize the price range, which takes impact July 1.

Newsom said one in every of his high budget priorities is providing Californians aid from inflation.

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

He’s proposed giving $400 checks to registered automotive house owners within the state, with as much as two checks per individual. That might cost the state about $11.5 billion, he stated. Although the money would solely go to automotive homeowners, Newsom mentioned it must be thought of “inflation refund and relief.”

“For you, it might be a rebate to address the difficulty of groceries, it might be a rebate to handle the other cost burdens that are placed on you,” he said.

Democratic lawmakers, although, have a unique concept on find out how to provide aid. They want to give $200 checks solely to these beneath a certain revenue stage.

Republicans, meanwhile, say somewhat than a test Newsom ought to droop the state’s highest-in-the nation fuel tax for one yr. They’ve also requested him to extend a tax credit score for renters and provide new tax credit to college students.

“Senate Republicans imagine there is a better option to spend money on the state,” said Sen. Rosilicie Ochoa Bogh of Yucaipa.