The surplus in California’s common fund could possibly be as excessive as $68 billion, up from the preliminary $29.6 billion surplus Newsom introduced in January.
“Our revenues are up significantly above January,” stated Keely Martin Bosler, director of the California Division of Finance.
Newsom has already stated how he desires to spend many of the state’s cash this 12 months. In January, the governor revealed a $286.4 billion budget proposal that may pay the well being care bills of all low-income immigrants dwelling within the nation illegally whereas additionally reducing taxes by about $5.5 billion for companies – cuts Newsom has since signed into legislation.
However that budget proposal was based mostly on the administration’s finest guess of how a lot cash California would have. Now that most individuals have paid their taxes, state officers know they are going to have much more cash than they thought. Friday, Newsom will replace his budget proposal to embrace that new cash.
The governor has already introduced how he plans to spend a number of the new cash. He desires to spend an additional $322 million on the drought and one other $125 million to make it simpler for girls to get an abortion in California.
However there are nonetheless a lot of questions on how the state will spend its surplus. For one factor, Newsom and legislative leaders can’t agree on how to give a refund to taxpayers to assist offset larger gasoline costs.
Newsom desires to give $400 checks to individuals who personal vehicles, no matter their revenue. Democrats within the state Legislature need to give $200 checks to everybody who earns beneath a sure revenue stage. The 2 sides are nonetheless negotiating.
Newsom desires to broaden the state’s Medicaid program to cowl well being bills for all low-income adults, no matter their immigration standing. However Newsom’s plan wouldn’t begin till January 2024. Some advocates and Democratic lawmakers have requested him to do this sooner.
At the least one in every of Newsom’s January budget proposals will not occur. With gasoline costs hovering, the governor had wished to halt an inflationary enhance within the state gasoline tax this summer time. However Democrats who management the state Legislature didn’t agree to do this, and now it is too late.
Republicans have urged Newsom to droop all the state’s gasoline tax for one 12 months. They’ve additionally requested him to enhance a tax credit score for renters and provide new tax credit to college students.
“Senate Republicans believe there is a better way to invest in the state,” Sen. Rosilicie Ochoa Bogh, a Republican from Yucaipa, stated.
However Republicans have simply 9 of 40 seats within the state Senate, stopping them from mustering sufficient votes to cross their priorities.