California Gov. Newsom unveils historic $97.5 billion budget surplus

SACRAMENTO, Calif. — California is coming into the subsequent funds yr 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 subsequent fiscal yr, the very best in state history and fueled by surging tax revenues. The state has collected $55 billion more 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 current initiatives as he seeks re-election within the fall. He plans extra spending to sort out the ongoing drought, to assist more women get abortions in California and to offset rising costs of food, gas and different items attributable to inflation.

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

Newsom said considered one of his top price range priorities is offering Californians reduction from inflation.

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

He’s proposed giving $400 checks to registered automotive homeowners in the state, with up to two checks per particular person. That may value the state about $11.5 billion, he said. Although the cash would solely go to car house owners, Newsom mentioned it must be considered “inflation refund and relief.”

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

Democratic lawmakers, although, have a special idea on methods to present reduction. They need to give $200 checks only to these below a sure income degree.

Republicans, in the meantime, say relatively than a examine Newsom ought to suspend the state’s highest-in-the nation gasoline tax for one yr. They’ve additionally requested him to increase a tax credit score for renters and provide new tax credit to college students.

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