California Gov. Newsom unveils historic $97.5 billion funds surplus

SACRAMENTO, Calif. — California is entering the next funds 12 months with a record-smashing surplus of nearly $100 billion, Gov. Gavin Newsom mentioned Friday.

Newsom unveiled a revised funds plan of just 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 officials anticipated 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 present initiatives as he seeks re-election in the fall. He plans extra spending to deal with the continued drought, to help more girls get abortions in California and to offset rising costs of meals, gas and other goods because of inflation.

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

Newsom mentioned certainly one of his high funds priorities is providing Californians reduction from inflation.

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

He’s proposed giving $400 checks to registered automotive homeowners in the state, with as much as two checks per particular person. That would cost the state about $11.5 billion, he stated. Though the money would solely go to automotive homeowners, Newsom stated it ought to be thought-about “inflation refund and relief.”

“For you, it could possibly be a rebate to handle the difficulty of groceries, it could be a rebate to handle the other value burdens which might be placed on you,” he mentioned.

Democratic lawmakers, although, have a special thought on how one can provide relief. They need to give $200 checks solely to these under a certain earnings level.

Republicans, meanwhile, say moderately than a check Newsom ought to droop the state’s highest-in-the nation gas tax for one yr. They’ve also asked him to extend a tax credit score for renters and supply new tax credit to students.

“Senate Republicans imagine there's a higher option to spend money on the state,” mentioned Sen. Rosilicie Ochoa Bogh of Yucaipa.