California Gov. Newsom unveils historic $97.5 billion funds surplus

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

Newsom unveiled a revised funds plan of just over $300 billion for the subsequent fiscal yr, 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 existing initiatives as he seeks re-election within the fall. He plans extra spending to tackle the continued drought, to assist extra ladies get abortions in California and to offset rising prices of meals, gas and different goods because of inflation.

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

Newsom stated one of his top finances priorities is offering Californians aid from inflation.

“People are feeling deep stress, deep anxiousness,” he stated.

He’s proposed giving $400 checks to registered automobile owners in the state, with as much as two checks per individual. That will cost the state about $11.5 billion, he mentioned. Though the money would solely go to car owners, Newsom mentioned it ought to be thought-about “inflation refund and aid.”

“For you, it could be a rebate to deal with the problem of groceries, it could be a rebate to address the other value burdens which are placed on you,” he said.

Democratic lawmakers, though, have a different idea on tips on how to present aid. They need to give $200 checks solely to these below a certain 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 asked him to increase a tax credit for renters and supply new tax credits to students.

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