California Gov. Newsom unveils historic $97.5 billion funds surplus

SACRAMENTO, Calif. — California is entering the subsequent price range 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 12 months, 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.

Meaning Newsom, a Democrat, has tens of billions of dollars more to spend on new and existing initiatives as he seeks re-election in the fall. He plans extra spending to tackle the continuing drought, to help extra ladies get abortions in California and to offset rising costs of food, 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 end of June to finalize the budget, which takes effect July 1.

Newsom said one in all his high price range priorities is providing Californians aid from inflation.

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

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

“For you, it could possibly be a rebate to handle the difficulty of groceries, it may very well be a rebate to handle the other value burdens that are positioned on you,” he said.

Democratic lawmakers, though, have a special idea on find out how to present reduction. They need to give $200 checks solely to those below a sure income degree.

Republicans, meanwhile, say somewhat than a check Newsom ought to suspend the state’s highest-in-the nation gas tax for one 12 months. They’ve also requested him to increase a tax credit for renters and offer new tax credits to students.

“Senate Republicans believe there's a better way to invest in the state,” stated Sen. Rosilicie Ochoa Bogh of Yucaipa.