California Gov. Newsom unveils historic $97.5 billion budget surplus

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

Newsom unveiled a revised funds plan of simply over $300 billion for the next fiscal year, the best in state historical past 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.

Which means Newsom, a Democrat, has tens of billions of dollars more to spend on new and existing initiatives as he seeks re-election in the fall. He plans further spending to sort out the ongoing drought, to assist extra ladies get abortions in California and to offset rising costs of food, gasoline and different items as a result of inflation.

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

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

“People are feeling deep stress, deep anxiousness,” he stated.

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

“For you, it may very well be a rebate to deal with the issue of groceries, it might be a rebate to address the opposite value burdens that are placed on you,” he mentioned.

Democratic lawmakers, although, have a distinct idea on tips on how to provide relief. They need to give $200 checks solely to those beneath a certain income degree.

Republicans, meanwhile, say moderately than a check Newsom ought to suspend the state’s highest-in-the nation gasoline tax for one 12 months. They’ve additionally asked him to increase a tax credit score for renters and provide new tax credit to students.

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