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

SACRAMENTO, Calif. — California is coming into the subsequent price range yr with a record-smashing surplus of almost $100 billion, Gov. Gavin Newsom said Friday.

Newsom unveiled a revised price range plan of just 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 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 existing initiatives as he seeks re-election within the fall. He plans further spending to sort out the continued drought, to help extra ladies get abortions in California and to offset rising prices of food, gas and different items resulting from inflation.

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

Newsom mentioned one of his high budget priorities is offering Californians reduction from inflation.

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

He’s proposed giving $400 checks to registered car owners within the state, with up to two checks per person. That might value the state about $11.5 billion, he mentioned. Although the money would only go to car homeowners, Newsom stated it should be considered “inflation refund and aid.”

“For you, it could possibly be a rebate to handle the issue of groceries, it could possibly be a rebate to address the other cost burdens which are positioned on you,” he stated.

Democratic lawmakers, though, have a special concept on find out how to present aid. They want to give $200 checks only to those below a certain income degree.

Republicans, in the meantime, say fairly than a check Newsom ought to droop the state’s highest-in-the nation fuel tax for one yr. They’ve additionally asked him to increase a tax credit for renters and offer new tax credit to students.

“Senate Republicans believe there is a better strategy to invest in the state,” said Sen. Rosilicie Ochoa Bogh of Yucaipa.