California Gov. Newsom unveils historic $97.5 billion budget surplus
SACRAMENTO, Calif. — California is entering the next budget year with a record-smashing surplus of nearly $100 billion, Gov. Gavin Newsom said Friday.
Newsom unveiled a revised budget plan of just over $300 billion for the next fiscal year, the highest in state history and fueled by surging tax revenues. The state has collected $55 billion more 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 existing initiatives as he seeks re-election in the fall. He plans additional spending to tackle the ongoing drought, to help more women get abortions in California and to offset rising costs of food, gas and other goods due to inflation.
He’ll have to reach agreement with the Democratic-led legislature on all of his proposals. They have until the end of June to finalize the budget, which takes effect July 1.
