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

SACRAMENTO, Calif. — California is coming into the following funds yr with a record-smashing surplus of almost $100 billion, Gov. Gavin Newsom stated Friday.

Newsom unveiled a revised finances plan of simply over $300 billion for the subsequent fiscal year, the very best in state history and fueled by surging tax revenues. The state has collected $55 billion more in taxes than officers 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 existing initiatives as he seeks re-election in the fall. He plans further spending to deal with the continuing drought, to assist more girls get abortions in California and to offset rising costs of meals, gasoline and different goods due to inflation.

He’ll have to reach agreement with the Democratic-led legislature on all of his proposals. They have till the top of June to finalize the price range, which takes effect July 1.

Newsom mentioned certainly one of his top funds priorities is offering Californians reduction from inflation.

“People are feeling deep stress, deep anxiety,” he mentioned.

He’s proposed giving $400 checks to registered automobile homeowners within the state, with up to two checks per particular person. That might price the state about $11.5 billion, he said. Though the money would only go to car homeowners, Newsom stated it must be thought-about “inflation refund and reduction.”

“For you, it could possibly be a rebate to deal with the problem of groceries, it might be a rebate to deal with the other price burdens which are positioned on you,” he said.

Democratic lawmakers, although, have a unique concept on easy methods to present aid. They need to give $200 checks solely to those under a sure earnings level.

Republicans, meanwhile, say moderately than a verify Newsom should droop the state’s highest-in-the nation gasoline tax for one year. They’ve also requested him to increase a tax credit score for renters and supply new tax credits to college students.

“Senate Republicans believe there is a higher strategy to invest in the state,” stated Sen. Rosilicie Ochoa Bogh of Yucaipa.