California Gov. Newsom unveils historic $97.5 billion price range surplus

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

Newsom unveiled a revised funds plan of simply over $300 billion for the next fiscal year, the highest 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.

Meaning Newsom, a Democrat, has tens of billions of dollars extra to spend on new and existing initiatives as he seeks re-election in the fall. He plans additional spending to sort out the continuing drought, to assist more ladies get abortions in California and to offset rising costs of meals, fuel and other items as a result of inflation.

He’ll have to succeed in 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 impact July 1.

Newsom mentioned certainly one of his top budget priorities is providing Californians aid from inflation.

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

He’s proposed giving $400 checks to registered automobile owners in the state, with as much as two checks per person. That will price the state about $11.5 billion, he mentioned. Although the money would solely go to automotive house owners, Newsom mentioned it must be thought of “inflation refund and relief.”

“For you, it could be a rebate to deal with the issue of groceries, it might be a rebate to address the other value burdens which might be positioned on you,” he said.

Democratic lawmakers, though, have a unique thought on tips on how to provide relief. They need to give $200 checks only to those under a certain revenue level.

Republicans, in the meantime, say relatively than a verify Newsom ought to droop the state’s highest-in-the nation gasoline tax for one 12 months. They’ve also asked him to extend a tax credit score for renters and offer new tax credits to college students.

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