California Gov. Newsom unveils historic $97.5 billion budget surplus

SACRAMENTO, Calif. — California is coming into the subsequent price range year with a record-smashing surplus of almost $100 billion, Gov. Gavin Newsom mentioned Friday.

Newsom unveiled a revised price range plan of simply over $300 billion for the subsequent fiscal 12 months, 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.

Meaning Newsom, a Democrat, has tens of billions of dollars more to spend on new and present initiatives as he seeks re-election in the fall. He plans further spending to sort out the continuing drought, to assist more women get abortions in California and to offset rising prices of food, fuel and other items due 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 impact July 1.

Newsom mentioned considered one of his prime budget priorities is providing Californians relief from inflation.

“Individuals are feeling deep stress, deep anxiety,” he stated.

He’s proposed giving $400 checks to registered automobile homeowners within the state, with as much as two checks per individual. That might value the state about $11.5 billion, he stated. Although the money would solely go to car homeowners, Newsom stated it must be thought of “inflation refund and reduction.”

“For you, it might be a rebate to address the problem of groceries, it might be a rebate to address the opposite cost burdens which can be placed on you,” he said.

Democratic lawmakers, though, have a distinct concept on learn how to present aid. They want to give $200 checks solely to those beneath a sure earnings level.

Republicans, meanwhile, say somewhat than a test Newsom should droop the state’s highest-in-the nation fuel tax for one yr. They’ve also requested him to increase a tax credit for renters and supply new tax credit to college students.

“Senate Republicans consider there's a better solution to put money into the state,” said Sen. Rosilicie Ochoa Bogh of Yucaipa.