Politics & Government
Newsom Targets 6 Issues To Fund With Record $97.5B Budget Surplus
Gov. Gavin Newsom proposed a record budget of $300.7 billion to address abortion care, inflation relief, climate change and public safety.
![California Gov. Gavin Newsom outlines his revised 2022-2023 state budget at a news conference in Sacramento Friday.](https://patch.com/img/cdn20/ap/24438295/20220516/021836/styles/patch_image/public/ap22133854597564___16141619753.jpg)
CALIFORNIA — The Golden State will step into another fiscal year flush with cash. Gov. Gavin Newsom announced a surplus of nearly $100 billion last week and proposed a revised budget of more than $300 billion.
The proposed state budget would be the largest in state history, smashing last year's record, thanks to surging tax revenues and the state's highest earners amid the pandemic.
The state collected some $55 billion more in taxes in January, inflating the state's surplus to $97.5 billion.
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"No other state in American history has ever experienced a surplus as large as this," Newsom told reporters last week.
California is the wealthiest state in the nation, but it also has the highest share of residents living in poverty, according to the U.S. Census.
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The governor addressed the deep divide between the rich and the poor in California, where the wealthiest residents are taxed the most.
"It's a sign of what's happening," he said. "In some respects, across this nation and around the world — concentration of wealth and success in the hands of a few that are enjoying abundance in historic and unprecedented ways."
The legislature must approve a state budget by June 15 for the governor to sign by June 30.
Newsom spelled out his plans for spending in his announcement of the record $300.7 billion budget. Here are five California-centric issues the governor aims to tackle.
1. Inflation
Newsom proposed dedicating $18.1 billion in direct payments to help Californians pay utility bills, rent, health care bills and child care expenses.
The governor said he aims to help offset the rising costs of gas, groceries and housing.
"People are feeling deep stress, deep anxiety," Newsom said.
The governor has also proposed sending $400 checks to registered car owners, with up to two checks per person. The rebate would cost the state $11.5 billion and would be part of "inflation refund and relief," he said.
2. Climate Change
The state would commit $47.1 billion to mitigate the effects of a warming climate by building more sustainable methods of supplying water, addressing pollution, reducing wildfire risk, strengthening the state's power grid, bolstering clean energy solutions and protecting communities from scorching weather.
3. Abortion And Reproductive Care
The U.S. Supreme Court appeared ready to overturn Roe v. Wade this month, sparking outrage among leaders in California, including Newsom.
As part of his proposed historic budget, the governor announced $125 million to expand access to abortions and reproductive health care in California.
"These investments will be critical in our efforts to expand access, especially as we anticipate an influx of people coming to California for reproductive care," according to a release from Newsom's office.
The funding would also go to improving the state's schools, universal preschool, after school programs, school meals and relief for child care expenses.
4. Public Safety
Under the proposed budget, the state would spend $660 million to bolster public safety in California by hiring new officers and offering mental health support for officers. The budget would also fund support for victims of sex trafficking, crack down on internet crimes against children and tackle the opioid criss.
5. Homelessness And Mental Health
The governor proposed spending $14.7 million to address Californians experiencing homelessness and mental illness.
The money would help get people off the streets and introduce them to services for substance abuse and counseling, Newsom said.
6. Infrastructure, Housing And Education
Some $37 billion was proposed to "rebuild California," with funding for broadband access, new housing and $128.3 billion to "transform" public education.
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