California Gov. Newsom unveils historic $97.5 billion funds surplus

SACRAMENTO, Calif. — California is coming into the following finances yr with a record-smashing surplus of almost $100 billion, Gov. Gavin Newsom said Friday.

Newsom unveiled a revised finances plan of just over $300 billion for the following fiscal yr, the best in state history and fueled by surging tax revenues. The state has collected $55 billion extra in taxes than officials anticipated 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 current initiatives as he seeks re-election within the fall. He plans further spending to deal with the continued drought, to help more girls get abortions in California and to offset rising costs of food, fuel and different goods because of inflation.

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

Newsom stated certainly one of his top budget priorities is offering Californians relief from inflation.

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

He’s proposed giving $400 checks to registered automobile homeowners within the state, with up to two checks per person. That would price the state about $11.5 billion, he said. Although the money would solely go to automotive homeowners, Newsom said it needs to be thought of “inflation refund and reduction.”

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

Democratic lawmakers, though, have a distinct idea on how one can present aid. They wish to give $200 checks solely to these below a certain revenue degree.

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

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