California Gov. Newsom unveils historic $97.5 billion budget surplus

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

Newsom unveiled a revised budget plan of simply over $300 billion for the next fiscal 12 months, the highest in state history 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.

That means Newsom, a Democrat, has tens of billions of dollars extra to spend on new and present initiatives as he seeks re-election within the fall. He plans further spending to sort out the continuing drought, to help more ladies get abortions in California and to offset rising costs of meals, gas and different items resulting from inflation.

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

Newsom said considered one of his prime budget priorities is offering Californians reduction from inflation.

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

He’s proposed giving $400 checks to registered car owners within the state, with as much as two checks per individual. That might cost the state about $11.5 billion, he stated. Though the money would only go to automobile homeowners, Newsom stated it should be considered “inflation refund and relief.”

“For you, it might be a rebate to handle the problem of groceries, it may very well be a rebate to address the other price burdens which are placed on you,” he stated.

Democratic lawmakers, though, have a distinct thought on the right way to present relief. They wish to give $200 checks solely to those beneath a sure income degree.

Republicans, in the meantime, say reasonably than a examine Newsom should suspend the state’s highest-in-the nation gasoline tax for one year. They’ve also requested him to increase a tax credit for renters and supply new tax credits to college students.

“Senate Republicans consider there is a higher method to put money into the state,” stated Sen. Rosilicie Ochoa Bogh of Yucaipa.