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

SACRAMENTO, Calif. — California is getting into the subsequent funds yr 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 following fiscal 12 months, the highest 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.

That means Newsom, a Democrat, has tens of billions of dollars more to spend on new and current initiatives as he seeks re-election in the fall. He plans further spending to tackle the continuing drought, to assist extra ladies get abortions in California and to offset rising costs of meals, fuel and other items because of inflation.

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

Newsom said one of his top price range priorities is providing Californians reduction from inflation.

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

He’s proposed giving $400 checks to registered car house owners within the state, with up to two checks per individual. That will cost the state about $11.5 billion, he stated. Though the money would solely go to car homeowners, Newsom stated it should be considered “inflation refund and aid.”

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

Democratic lawmakers, though, have a unique concept on provide reduction. They want to give $200 checks solely to those beneath a sure earnings degree.

Republicans, in the meantime, say relatively than a verify Newsom ought to suspend 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 believe there's a higher way to invest in the state,” mentioned Sen. Rosilicie Ochoa Bogh of Yucaipa.