California Gov. Newsom unveils historic $97.5 billion funds surplus

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

Newsom unveiled a revised finances plan of just over $300 billion for the following fiscal 12 months, the very best in state historical past 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.

That 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 additional spending to deal with the continuing 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 reach agreement with the Democratic-led legislature on all of his proposals. They've till the end of June to finalize the budget, which takes impact July 1.

Newsom said one in every of his prime funds priorities is offering Californians relief from inflation.

“People are feeling deep stress, deep anxiousness,” he stated.

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

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

Democratic lawmakers, though, have a different concept on the best way to provide relief. They want to give $200 checks solely to those beneath a certain revenue degree.

Republicans, meanwhile, say moderately than a examine Newsom should droop the state’s highest-in-the nation gasoline tax for one year. They’ve also requested him to increase a tax credit score for renters and supply new tax credit to students.

“Senate Republicans consider there is a higher method to invest in the state,” mentioned Sen. Rosilicie Ochoa Bogh of Yucaipa.