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

SACRAMENTO, Calif. — California is entering the next budget yr with a record-smashing surplus of nearly $100 billion, Gov. Gavin Newsom mentioned Friday.

Newsom unveiled a revised price range plan of just over $300 billion for the next fiscal 12 months, the best in state history 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 current initiatives as he seeks re-election in the fall. He plans extra spending to tackle the continued drought, to help more ladies get abortions in California and to offset rising costs of food, gas and other items because of inflation.

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

Newsom said considered one of his high funds priorities is offering Californians reduction from inflation.

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

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

“For you, it might be a rebate to address the problem of groceries, it could possibly be a rebate to handle the other price burdens which might be placed on you,” he stated.

Democratic lawmakers, though, have a different thought on the best way to provide reduction. They wish to give $200 checks solely to those below a sure revenue degree.

Republicans, meanwhile, say moderately than a verify Newsom ought to suspend the state’s highest-in-the nation gasoline tax for one 12 months. They’ve additionally requested him to extend a tax credit for renters and supply new tax credit to students.

“Senate Republicans imagine there is a higher technique to invest in the state,” mentioned Sen. Rosilicie Ochoa Bogh of Yucaipa.