California Gov. Newsom unveils historic $97.5 billion price range surplus

SACRAMENTO, Calif. — California is getting into the next finances 12 months with a record-smashing surplus of almost $100 billion, Gov. Gavin Newsom stated Friday.

Newsom unveiled a revised budget plan of just over $300 billion for the subsequent fiscal yr, the best in state historical past and fueled by surging tax revenues. The state has collected $55 billion extra in taxes than officers anticipated in January, leaving it with an estimated $97.5 billion surplus.

Which means 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 sort out the continuing drought, to help extra girls get abortions in California and to offset rising prices of food, gasoline and different items on account of inflation.

He’ll have to reach settlement with the Democratic-led legislature on all of his proposals. They've until the end of June to finalize the finances, which takes effect July 1.

Newsom mentioned one in every of his prime finances priorities is providing Californians aid from inflation.

“Persons are feeling deep stress, deep anxiousness,” he stated.

He’s proposed giving $400 checks to registered automobile owners within the state, with as much as two checks per particular person. That would price the state about $11.5 billion, he said. Though the money would solely go to automotive owners, Newsom stated it should be thought-about “inflation refund and aid.”

“For you, it could possibly be a rebate to address the problem of groceries, it could be a rebate to handle the other price burdens which can be placed on you,” he stated.

Democratic lawmakers, though, have a unique concept on easy methods to present relief. They wish to give $200 checks solely to those under a sure revenue level.

Republicans, meanwhile, say rather than a verify Newsom ought to suspend the state’s highest-in-the nation gasoline tax for one yr. They’ve additionally requested him to increase a tax credit score for renters and offer new tax credits to college students.

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