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

SACRAMENTO, Calif. — California is getting into the following price range 12 months with a record-smashing surplus of practically $100 billion, Gov. Gavin Newsom said Friday.

Newsom unveiled a revised funds plan of simply over $300 billion for the following 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.

Meaning Newsom, a Democrat, has tens of billions of dollars extra to spend on new and current initiatives as he seeks re-election within the fall. He plans further spending to deal with the continuing drought, to assist more women get abortions in California and to offset rising prices of meals, fuel and different goods resulting from inflation.

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

Newsom stated one in every of his prime price range priorities is offering Californians relief from inflation.

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

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

“For you, it may very well be a rebate to handle the problem of groceries, it may very well be a rebate to address the other value burdens which can be placed on you,” he mentioned.

Democratic lawmakers, although, have a unique concept on the way to present reduction. They need to give $200 checks only to those below a certain earnings stage.

Republicans, in the meantime, say fairly than a test Newsom ought to suspend the state’s highest-in-the nation fuel tax for one yr. They’ve additionally requested him to extend a tax credit score for renters and offer new tax credit to students.

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