California Gov. Newsom unveils historic $97.5 billion price range surplus

SACRAMENTO, Calif. — California is entering the next price range year with a record-smashing surplus of practically $100 billion, Gov. Gavin Newsom said Friday.

Newsom unveiled a revised funds plan of simply over $300 billion for the next fiscal yr, the highest in state history and fueled by surging tax revenues. The state has collected $55 billion extra in taxes than officials 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 present initiatives as he seeks re-election within the fall. He plans extra spending to sort out the continuing drought, to help more ladies get abortions in California and to offset rising prices of food, gasoline and different goods attributable to inflation.

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

Newsom said one among his high funds priorities is offering Californians aid from inflation.

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

He’s proposed giving $400 checks to registered automotive house owners within the state, with as much as two checks per particular person. That may price the state about $11.5 billion, he said. Although the money would only go to automotive house owners, Newsom stated it ought to be thought of “inflation refund and reduction.”

“For you, it may very well be a rebate to deal with the problem of groceries, it may very well be a rebate to handle the other price burdens which can be positioned on you,” he stated.

Democratic lawmakers, though, have a different thought on provide aid. They need to give $200 checks solely to these beneath a certain income level.

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

“Senate Republicans consider there is a better technique to spend money on the state,” stated Sen. Rosilicie Ochoa Bogh of Yucaipa.