Sacramento, Calif. ( Associated Press) — California Governor Gavin Newsom will announce another record-breaking budget surplus on Friday, giving him and state lawmakers plenty of money to spend in a year the governor is re-elected to a second term. expected to leave. ,
Surplus in California’s General Fund could be as high as $68 billionThat’s up from the initial $29.6 billion Newsom announced in January.
“Our revenue is up significantly from January,” said Kelly Martin Bosler, director of the California Department of Finance.
Newsom has already said how he wants to spend most of the state’s money this year. In January, the governor unveiled a $286.4 billion budget proposal that would pay for the health care expenses of all low-income immigrants living in the country illegally, while cutting nearly $5.5 billion in taxes for businesses — Newsom called into law. Signed in.
But that budget proposal was based on the administration’s best estimate of how much money California would have. Now that most people have paid their taxes, state officials know they will have more money than they thought. Friday, Newsom will update its budget proposal to include that new money.
The governor has already announced how he plans to spend some of the new money. He wants to spend $322 million on drought and an additional $125 million to make it easier for women in California to get abortions.
But there are still a lot of questions about how the state will spend its surplus. For one thing, Newsom and legislative leaders can’t agree on how to give money back to taxpayers to help offset higher gas prices.
Newsom wants to give a $400 check to people who have a car, regardless of their income. Democrats in the state legislature want to give a $200 check to everyone earning below a certain income level. Both sides are still negotiating.
Newsom wants to expand the state’s Medicaid program to cover the health expenses of all low-income adults, regardless of their immigration status. But Newsom’s plan won’t start until January 2024. Some advocates and Democratic lawmakers have asked him to do so as soon as possible.
At least one of Newsom’s January budget proposals won’t. With gas prices soaring, the governor wanted to stem the rise of inflation 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 all state gas taxes for one year. They have also asked him to increase tax credits for tenants and offer new tax credits to students.
“Senate Republicans believe there is a better way to invest in the state,” said Sen. Rossie Ochoa Bogg, a Republican from Yucaipa.
But Republicans have just nine out of 40 seats in the state Senate, which prevents them from garnering enough votes to pass their preferences.