California Gov. Newsom unveils historic $97.5 billion finances surplus

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

Newsom unveiled a revised budget plan of simply over $300 billion for the subsequent fiscal yr, the best in state historical past 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 more to spend on new and existing initiatives as he seeks re-election in the fall. He plans additional spending to tackle the continued drought, to assist more women get abortions in California and to offset rising prices of meals, fuel and different items attributable to inflation.

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

Newsom stated certainly one of his high budget priorities is providing Californians reduction from inflation.

“People are feeling deep stress, deep anxiety,” he said.

He’s proposed giving $400 checks to registered car owners in the state, with up to two checks per individual. That will cost the state about $11.5 billion, he said. Though the money would only go to automotive homeowners, Newsom mentioned it ought to be thought of “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 address the opposite cost burdens which might be placed on you,” he said.

Democratic lawmakers, although, have a different concept on how you can provide reduction. They want to give $200 checks solely to these beneath a sure income level.

Republicans, meanwhile, say fairly than a examine Newsom should suspend the state’s highest-in-the nation gas tax for one year. They’ve additionally asked him to extend a tax credit score for renters and provide new tax credits to college students.

“Senate Republicans believe there's a higher solution to spend money on the state,” mentioned Sen. Rosilicie Ochoa Bogh of Yucaipa.