California Gov. Newsom unveils historic $97.5 billion finances surplus

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

Newsom unveiled a revised budget plan of just over $300 billion for the next fiscal 12 months, the very best in state historical past 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 extra to spend on new and current initiatives as he seeks re-election within the fall. He plans additional spending to tackle the continued drought, to help more women get abortions in California and to offset rising costs of food, gas and different items resulting from inflation.

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

Newsom mentioned one among his top budget priorities is offering Californians reduction from inflation.

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

He’s proposed giving $400 checks to registered automotive owners in the state, with as much as two checks per person. That would price the state about $11.5 billion, he stated. Although the cash would solely go to automobile homeowners, Newsom stated it should be considered “inflation refund and relief.”

“For you, it might be a rebate to deal with the difficulty of groceries, it could possibly be a rebate to handle the opposite price burdens which can be placed on you,” he mentioned.

Democratic lawmakers, though, have a special idea on tips on how to present aid. They want to give $200 checks solely to those beneath a certain income stage.

Republicans, in the meantime, say rather than a check Newsom should 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 offer new tax credits to students.

“Senate Republicans consider there's a better strategy to put money into the state,” stated Sen. Rosilicie Ochoa Bogh of Yucaipa.