California Gov. Newsom unveils historic $97.5 billion finances surplus

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

Newsom unveiled a revised funds plan of simply over $300 billion for the following fiscal 12 months, the very best in state historical past and fueled by surging tax revenues. The state has collected $55 billion extra in taxes than officers anticipated 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 present initiatives as he seeks re-election in the fall. He plans additional spending to tackle the continued drought, to help extra women get abortions in California and to offset rising costs of food, fuel and other items as a consequence of inflation.

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

Newsom said one among his prime budget priorities is offering Californians aid from inflation.

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

He’s proposed giving $400 checks to registered car house owners within the state, with up to two checks per particular person. That would cost the state about $11.5 billion, he stated. Although the cash would only go to car owners, Newsom mentioned it should be thought of “inflation refund and aid.”

“For you, it might be a rebate to deal with the issue of groceries, it might be a rebate to address the other value burdens which might be placed on you,” he mentioned.

Democratic lawmakers, though, have a unique concept on learn how to provide aid. They need to give $200 checks solely to those beneath a sure income degree.

Republicans, meanwhile, say slightly than a examine Newsom ought to droop the state’s highest-in-the nation fuel tax for one yr. They’ve also asked him to increase a tax credit score for renters and provide new tax credits to students.

“Senate Republicans imagine there is a better approach to invest in the state,” said Sen. Rosilicie Ochoa Bogh of Yucaipa.