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

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

Newsom unveiled a revised funds plan of simply over $300 billion for the next fiscal year, the very best in state historical past and fueled by surging tax revenues. The state has collected $55 billion more in taxes than officers anticipated in January, leaving it with an estimated $97.5 billion surplus.

Which 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 additional spending to sort out the continued drought, to assist extra ladies get abortions in California and to offset rising costs of meals, fuel and other goods attributable to inflation.

He’ll have to achieve agreement with the Democratic-led legislature on all of his proposals. They've till the top of June to finalize the funds, which takes impact July 1.

Newsom mentioned certainly one of his top price range priorities is offering Californians aid from inflation.

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

He’s proposed giving $400 checks to registered car house owners in the state, with as much as two checks per person. That will value the state about $11.5 billion, he stated. Although the cash would solely go to automobile house owners, Newsom said it needs to be thought of “inflation refund and reduction.”

“For you, it might be a rebate to handle the difficulty of groceries, it could possibly be a rebate to address the opposite value burdens which can be placed on you,” he mentioned.

Democratic lawmakers, though, have a unique thought on present relief. They need to give $200 checks only to these beneath a sure income stage.

Republicans, in the meantime, say reasonably than a examine Newsom should suspend the state’s highest-in-the nation gas tax for one yr. They’ve additionally asked him to extend a tax credit score for renters and provide new tax credit to students.

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