Newsom: California has record $97.5 billion budget surplus

California is coming into the following funds 12 months with a record-smashing surplus of practically $100 billion, Gov. Gavin Newsom stated Friday.

Newsom unveiled a revised funds plan of simply 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 officers anticipated in January, leaving it with an estimated $97.5 billion surplus.

Which means Newsom, a Democrat, has tens of billions of {dollars} extra to spend on new and present initiatives as he seeks re-election within the fall. He plans further spending to deal with the continued drought, to assist extra ladies get abortions in California and to offset rising prices of meals, fuel and different items on account of 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 funds, which takes impact July 1.

Newsom stated one in every of his high funds priorities is offering Californians reduction from inflation.

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

He’s proposed giving $400 checks to registered automobile house owners within the state, with as much as two checks per individual. That might value the state about $11.5 billion, he stated. Although the cash would solely go to automobile house owners, Newsom stated it ought to be thought-about “inflation refund and reduction.”

“For you, it may very well be a rebate to deal with the difficulty of groceries, it may very well be a rebate to deal with the opposite value burdens which can be positioned on you,” he stated.

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

Republicans, in the meantime, say somewhat than a verify Newsom ought to droop the state’s highest-in-the nation fuel tax for one 12 months. They’ve additionally requested him to extend a tax credit score for renters and provide new tax credit to college students.

“Senate Republicans imagine there’s a higher option to spend money on the state,” stated Sen. Rosilicie Ochoa Bogh of Yucaipa.