California Gov. Newsom unveils historic $97.5 billion finances surplus

SACRAMENTO, Calif. — California is getting into the subsequent price range 12 months 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 following fiscal 12 months, the best in state history 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.

Which means Newsom, a Democrat, has tens of billions of dollars more to spend on new and existing initiatives as he seeks re-election in the fall. He plans extra spending to deal with the ongoing drought, to help extra girls get abortions in California and to offset rising prices of meals, fuel and other items resulting from inflation.

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

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

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

He’s proposed giving $400 checks to registered automobile owners within the state, with as much as two checks per individual. That might value the state about $11.5 billion, he said. Though the money would only go to automotive house owners, Newsom said it ought to be thought-about “inflation refund and reduction.”

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

Democratic lawmakers, though, have a unique thought on how one can provide reduction. They need to give $200 checks solely to those beneath a sure revenue stage.

Republicans, meanwhile, say somewhat than a test Newsom should suspend the state’s highest-in-the nation gas 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 believe there is a better solution to invest in the state,” stated Sen. Rosilicie Ochoa Bogh of Yucaipa.