California Gov. Newsom unveils historic $97.5 billion budget surplus

SACRAMENTO, Calif. — California is entering the next budget year with a record-smashing surplus of nearly $100 billion, Gov. Gavin Newsom mentioned Friday.

Newsom unveiled a revised budget plan of simply over $300 billion for the next fiscal 12 months, the highest in state historical past and fueled by surging tax revenues. The state has collected $55 billion more in taxes than officials anticipated 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 within the fall. He plans further spending to sort out the continued drought, to assist more ladies get abortions in California and to offset rising costs of meals, gas and different goods due to inflation.

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

Newsom mentioned certainly one of his prime finances priorities is providing Californians relief from inflation.

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

He’s proposed giving $400 checks to registered automobile owners in the state, with as much as two checks per individual. That might price the state about $11.5 billion, he stated. Though the cash would solely go to car homeowners, Newsom stated it needs to be thought of “inflation refund and aid.”

“For you, it might be a rebate to address the issue of groceries, it may very well be a rebate to address the other price burdens which can be placed on you,” he mentioned.

Democratic lawmakers, although, have a distinct concept on how you can present reduction. They wish to give $200 checks solely to these beneath a certain revenue degree.

Republicans, in the meantime, say rather than a test Newsom ought to suspend the state’s highest-in-the nation gas tax for one yr. They’ve additionally asked him to extend a tax credit for renters and provide new tax credits to students.

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