California Gov. Newsom unveils historic $97.5 billion budget surplus

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

Newsom unveiled a revised finances plan of just over $300 billion for the subsequent fiscal yr, the very best in state history and fueled by surging tax revenues. The state has collected $55 billion more 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 existing 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 prices of meals, gasoline and different goods resulting from inflation.

He’ll have to achieve agreement with the Democratic-led legislature on all of his proposals. They have till the top of June to finalize the funds, which takes effect July 1.

Newsom mentioned one in every of his prime finances priorities is offering Californians reduction from inflation.

“People are feeling deep stress, deep nervousness,” he stated.

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

“For you, it could be a rebate to deal with the difficulty of groceries, it could be a rebate to address the other cost burdens which are placed on you,” he said.

Democratic lawmakers, though, have a different thought on how one can present aid. They need to give $200 checks solely to those below a sure earnings stage.

Republicans, in the meantime, say moderately than a check Newsom ought to suspend the state’s highest-in-the nation fuel tax for one 12 months. They’ve additionally requested him to increase a tax credit for renters and supply new tax credit to college students.

“Senate Republicans believe there is a higher solution to spend money on the state,” said Sen. Rosilicie Ochoa Bogh of Yucaipa.