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

SACRAMENTO, Calif. — California is entering the following price range yr with a record-smashing surplus of practically $100 billion, Gov. Gavin Newsom said Friday.

Newsom unveiled a revised budget plan of simply over $300 billion for the subsequent fiscal 12 months, the very best in state history and fueled by surging tax revenues. The state has collected $55 billion more in taxes than officials expected in January, leaving it with an estimated $97.5 billion surplus.

Which means Newsom, a Democrat, has tens of billions of dollars extra to spend on new and current initiatives as he seeks re-election within the fall. He plans further spending to sort out the continued drought, to assist more women get abortions in California and to offset rising costs of meals, gas and different goods on account of inflation.

He’ll have to reach agreement with the Democratic-led legislature on all of his proposals. They've until the top of June to finalize the funds, which takes impact July 1.

Newsom mentioned one in all his top price range priorities is offering Californians aid from inflation.

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

He’s proposed giving $400 checks to registered car owners within the state, with up to two checks per person. That might value the state about $11.5 billion, he said. Though the money would solely go to automotive homeowners, Newsom said it needs to be thought-about “inflation refund and aid.”

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

Democratic lawmakers, although, have a special idea on the right way to present aid. They want to give $200 checks solely to those beneath a sure revenue degree.

Republicans, meanwhile, say somewhat than a check Newsom should droop the state’s highest-in-the nation gasoline tax for one yr. They’ve also asked him to extend a tax credit for renters and offer new tax credit to college students.

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