California Gov. Newsom unveils historic $97.5 billion finances surplus

SACRAMENTO, Calif. — California is getting into the next funds yr with a record-smashing surplus of nearly $100 billion, Gov. Gavin Newsom mentioned Friday.

Newsom unveiled a revised funds plan of just over $300 billion for the next fiscal year, the best in state history 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.

That means Newsom, a Democrat, has tens of billions of dollars extra to spend on new and present initiatives as he seeks re-election in the fall. He plans additional spending to deal with the continued drought, to help extra women get abortions in California and to offset rising costs of food, gas and other items due to inflation.

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

Newsom said one in every of his high price range priorities is providing Californians relief from inflation.

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

He’s proposed giving $400 checks to registered automobile owners within the state, with as much as two checks per person. That might value the state about $11.5 billion, he stated. Though the cash would only go to car owners, Newsom stated it ought to be considered “inflation refund and aid.”

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

Democratic lawmakers, though, have a distinct concept on the right way to present reduction. They wish to give $200 checks only to these under a sure earnings stage.

Republicans, in the meantime, say relatively than a check Newsom should droop the state’s highest-in-the nation fuel tax for one year. They’ve also asked him to extend a tax credit score for renters and supply new tax credits to college students.

“Senate Republicans believe there's a better option to spend money on the state,” said Sen. Rosilicie Ochoa Bogh of Yucaipa.