California Gov. Newsom unveils historic $97.5 billion finances surplus

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

Newsom unveiled a revised budget plan of just over $300 billion for the subsequent fiscal year, the best in state historical past 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 more to spend on new and present initiatives as he seeks re-election within the fall. He plans extra spending to sort out the continuing drought, to help more girls get abortions in California and to offset rising costs of food, gasoline and other items attributable to inflation.

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

Newsom stated one in all his top price range priorities is offering Californians reduction from inflation.

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

He’s proposed giving $400 checks to registered car house owners in the state, with up to two checks per person. That may cost the state about $11.5 billion, he mentioned. Though the money would solely go to automotive owners, Newsom said it needs to be considered “inflation refund and aid.”

“For you, it could possibly be a rebate to deal with the difficulty of groceries, it might be a rebate to address the other price burdens that are placed on you,” he said.

Democratic lawmakers, though, have a unique concept on methods to provide aid. They wish to give $200 checks only to these beneath a certain revenue degree.

Republicans, meanwhile, say relatively than a examine Newsom should droop the state’s highest-in-the nation gas tax for one yr. They’ve also asked him to increase a tax credit score for renters and provide new tax credit to students.

“Senate Republicans imagine there is a better approach to invest in the state,” stated Sen. Rosilicie Ochoa Bogh of Yucaipa.