California Gov. Newsom unveils historic $97.5 billion funds surplus

SACRAMENTO, Calif. — California is entering the next finances year 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 yr, the very best in state historical past 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.

Meaning 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 further spending to sort out the ongoing drought, to help more girls get abortions in California and to offset rising costs of food, gas and other items as a result of inflation.

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

Newsom mentioned one in every 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 house owners within the state, with as much as two checks per person. That may value the state about $11.5 billion, he mentioned. Though the money would solely go to automobile owners, Newsom stated it needs to be thought-about “inflation refund and reduction.”

“For you, it could be a rebate to address the difficulty of groceries, it could be a rebate to address the other cost burdens which can be positioned on you,” he mentioned.

Democratic lawmakers, although, have a special idea on how you can provide reduction. They wish to give $200 checks only to these below a sure earnings stage.

Republicans, in the meantime, say fairly than a check Newsom should droop the state’s highest-in-the nation gas tax for one 12 months. They’ve also requested him to increase a tax credit for renters and provide new tax credits to students.

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