California Gov. Newsom unveils historic $97.5 billion budget surplus

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

Newsom unveiled a revised price range plan of just over $300 billion for the following fiscal 12 months, the highest in state history and fueled by surging tax revenues. The state has collected $55 billion extra in taxes than officers expected in January, leaving it with an estimated $97.5 billion surplus.

Which means Newsom, a Democrat, has tens of billions of dollars extra to spend on new and existing initiatives as he seeks re-election in the fall. He plans additional spending to sort out the ongoing drought, to help extra women get abortions in California and to offset rising prices of meals, fuel and other goods because of inflation.

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

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

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

He’s proposed giving $400 checks to registered car owners in the state, with as much as two checks per person. That may value the state about $11.5 billion, he stated. Though the money would solely go to automobile homeowners, Newsom stated it should be thought of “inflation refund and reduction.”

“For you, it might be a rebate to deal with the problem of groceries, it could be a rebate to deal with the opposite value burdens that are positioned on you,” he said.

Democratic lawmakers, though, have a different thought on present relief. They need to give $200 checks only to these under a sure earnings stage.

Republicans, meanwhile, say quite than a verify Newsom ought to droop the state’s highest-in-the nation fuel tax for one year. They’ve additionally asked him to increase a tax credit for renters and provide new tax credit to college students.

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