WATCH LIVE: Governor Gavin Newsom announces record-setting $97.5 billion California budget surplus

SACRAMEDO, CA – California expects to enter next fiscal year with a record $ 97.5 billion budget surplus.

Gov. Gavin Newsom announced the figure Friday as he outlined how he wanted to spend about $ 300 billion of the state budget. This is the largest budget in the history of the state. It was fueled by rising tax revenues during the winter and spring.

It means that Newsom has billions more to propose new programs. Among other things, he wants to give $ 400 checks to car owners to offset high gas taxes and spend more on drought and help more women have abortions in California.

This is an emergency update. The original AP report is below.

Gov. Gavin Newsom is likely to announce another record budget surplus on Friday, giving him and state lawmakers plenty of money to spend in a year when the governor is expected to be re-elected for a second term.

The California general fund surplus could reach $ 68 billion, up from Newsom’s initial $ 29.6 billion surplus in January.
“Our revenue has risen significantly since January,” said Keely Martin Bosler, director of the California Treasury.

Newsom has already said how it wants to spend most of the state money this year. In January, the governor unveiled a $ 286.4 billion budget proposal that would pay for the health care of all low-income migrants living illegally in the country, while cutting taxes by about $ 5.5 billion for businesses. which Newsom has since signed into law.

But this budget proposal was based on the administration’s best guess as to how much money California would have. Now that most have paid their taxes, government officials know they will have much more money than they thought. On Friday, Newsom will update its budget proposal to include this new money.

The governor has already announced how he plans to spend some of the new money. She wants to spend an extra $ 322 million on drought and another $ 125 million to make it easier for women to have an abortion in California.

But there are many questions about how the state will spend its surplus. First, Newsom and the legislature can not agree on how to return taxpayers money to help offset higher gas prices.
Newsom wants to give $ 400 checks to people who own cars, regardless of their income. Democrats in the state legislature want to give $ 200 checks to anyone earning below a certain income level. The two sides continue to negotiate.

Newsom wants to expand its state-run Medicaid program to cover health expenses for all low-income adults, regardless of their immigration status. But Newsom’s plan will not begin until January 2024. Some supporters and Democrat lawmakers have called for it to be done sooner.

At least one of Newsom’s January budget proposals will not be implemented. With gas prices soaring, the governor wanted to stop an inflationary increase in the state gas tax this summer. But the Democrats who control the state legislature did not agree to do so and now it is too late.

Republicans have urged Newsom to suspend the entire state gas tax for one year. He was also asked to increase a tax deduction for tenants and offer new tax deductions to students.

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

But Republicans hold just nine of the 40 seats in the state Senate, preventing them from garnering enough votes to pass their priorities.

Copyright © 2022 by the Associated Press. All rights reserved.

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WATCH LIVE: Governor Gavin Newsom announces record-setting $97.5 billion California budget surplus Source link WATCH LIVE: Governor Gavin Newsom announces record-setting $97.5 billion California budget surplus

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