California Gov. Newsom unveils historic $97.5 billion finances surplus

SACRAMENTO, Calif. — California is coming into the next budget 12 months with a record-smashing surplus of practically $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 history 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.

Which means Newsom, a Democrat, has tens of billions of dollars extra to spend on new and present initiatives as he seeks re-election within the fall. He plans extra spending to deal with the continuing drought, to help more ladies get abortions in California and to offset rising costs of meals, gas and different goods because of inflation.

He’ll have to reach settlement with the Democratic-led legislature on all of his proposals. They have till the end of June to finalize the budget, which takes impact July 1.

Newsom stated one in every of his top budget priorities is providing Californians reduction from inflation.

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

He’s proposed giving $400 checks to registered car house owners within the state, with as much as two checks per individual. That may price the state about $11.5 billion, he stated. Although the cash would solely go to car homeowners, Newsom mentioned it should be considered “inflation refund and reduction.”

“For you, it might be a rebate to address the issue of groceries, it may very well be a rebate to address the opposite cost burdens which might be positioned on you,” he said.

Democratic lawmakers, although, have a special concept on methods to present relief. They need to give $200 checks only to those beneath a sure earnings degree.

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

“Senate Republicans imagine there is a better method to spend money on the state,” mentioned Sen. Rosilicie Ochoa Bogh of Yucaipa.