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

SACRAMENTO, Calif. — California is entering the next 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 next fiscal year, the best in state historical past 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.

That means Newsom, a Democrat, has tens of billions of dollars extra to spend on new and current initiatives as he seeks re-election in the fall. He plans further spending to deal with the continuing drought, to help extra girls get abortions in California and to offset rising prices of food, gas and different items as a result of inflation.

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

Newsom mentioned one in every of his high finances priorities is offering Californians reduction from inflation.

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

He’s proposed giving $400 checks to registered automobile homeowners in the state, with up to two checks per individual. That might cost the state about $11.5 billion, he mentioned. Though the money would only go to automobile house owners, Newsom stated it must be thought of “inflation refund and reduction.”

“For you, it could be a rebate to address the problem of groceries, it might be a rebate to handle the other value burdens which might be placed on you,” he said.

Democratic lawmakers, although, have a unique concept on learn how to present reduction. They need to give $200 checks solely to these beneath a sure revenue level.

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

“Senate Republicans believe there is a better technique to put money into the state,” mentioned Sen. Rosilicie Ochoa Bogh of Yucaipa.