California Gov. Newsom unveils historic $97.5 billion finances surplus

SACRAMENTO, Calif. — California is entering the subsequent finances yr with a record-smashing surplus of nearly $100 billion, Gov. Gavin Newsom said Friday.

Newsom unveiled a revised funds plan of simply over $300 billion for the following fiscal yr, the best in state historical past 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.

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 continuing drought, to help extra girls get abortions in California and to offset rising costs of meals, fuel and other goods as a consequence of inflation.

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

Newsom said certainly one of his top finances priorities is providing Californians relief from inflation.

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

He’s proposed giving $400 checks to registered automotive house owners in the state, with as much as two checks per particular person. That would value the state about $11.5 billion, he mentioned. Although the money would solely go to automotive house owners, Newsom mentioned it should be considered “inflation refund and aid.”

“For you, it may very well be a rebate to handle the difficulty of groceries, it may very well be a rebate to deal with the other value burdens which are placed on you,” he stated.

Democratic lawmakers, although, have a unique thought on easy methods to present aid. They need to give $200 checks only to these below a certain income level.

Republicans, in the meantime, say rather than a test Newsom ought to droop the state’s highest-in-the nation fuel tax for one 12 months. They’ve also asked him to extend a tax credit score for renters and provide new tax credits to students.

“Senate Republicans consider there is a higher technique to spend money on the state,” stated Sen. Rosilicie Ochoa Bogh of Yucaipa.