California Gov. Newsom unveils historic $97.5 billion finances surplus

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

Newsom unveiled a revised budget plan of just over $300 billion for the subsequent fiscal yr, the highest in state history and fueled by surging tax revenues. The state has collected $55 billion extra in taxes than officials expected 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 present initiatives as he seeks re-election in the fall. He plans additional spending to sort out the ongoing drought, to assist extra women get abortions in California and to offset rising prices of food, gas and different goods as a result of inflation.

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

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

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

He’s proposed giving $400 checks to registered car owners in the state, with as much as two checks per person. That will cost the state about $11.5 billion, he said. Although the cash would only go to car owners, Newsom said it ought to be thought-about “inflation refund and aid.”

“For you, it might be a rebate to address the problem of groceries, it may very well be a rebate to address the opposite cost burdens that are positioned on you,” he said.

Democratic lawmakers, although, have a different concept on learn how to provide aid. They need to give $200 checks solely to these under a sure revenue stage.

Republicans, meanwhile, say moderately than a test Newsom should droop the state’s highest-in-the nation gas tax for one year. They’ve also requested him to extend a tax credit score for renters and offer new tax credit to students.

“Senate Republicans believe there is a higher technique to put money into the state,” said Sen. Rosilicie Ochoa Bogh of Yucaipa.