California Gov. Newsom unveils historic $97.5 billion budget surplus

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

Newsom unveiled a revised price range plan of just over $300 billion for the next fiscal year, the highest in state history and fueled by surging tax revenues. The state has collected $55 billion extra in taxes than officers 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 in the fall. He plans further spending to sort out the continued drought, to help more women get abortions in California and to offset rising costs of meals, fuel and other items because of inflation.

He’ll have to succeed in agreement with the Democratic-led legislature on all of his proposals. They have till the end of June to finalize the price range, which takes impact July 1.

Newsom mentioned considered one of his high price range priorities is offering Californians reduction from inflation.

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

He’s proposed giving $400 checks to registered automobile house owners in the state, with up to two checks per individual. That may value the state about $11.5 billion, he said. Although the money would only go to car house owners, Newsom stated it needs to be considered “inflation refund and relief.”

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

Democratic lawmakers, although, have a distinct idea on find out how to present aid. They wish to give $200 checks only to these below a sure revenue stage.

Republicans, in the meantime, say slightly than a examine Newsom ought to droop the state’s highest-in-the nation fuel tax for one year. They’ve additionally requested him to increase a tax credit for renters and offer new tax credit to students.

“Senate Republicans consider there's a higher method to invest in the state,” mentioned Sen. Rosilicie Ochoa Bogh of Yucaipa.