Gov. Newsom likely to announce another record-breaking budget surplus today
SACRAMENTO, Calif. -- Gov. Gavin Newsom will likely announce another record-breaking budget surplus on Friday, giving him and state lawmakers lots of money to spend in a year the governor is expected to cruise to reelection for a second term.
Newsom has already said how he wants to spend most of the state's money this year. In January, the governor revealed a $286.4 billion budget proposal that would pay the health care expenses of all low-income immigrants living in the country illegally while also cutting taxes by about $5.5 billion for businesses - cuts Newsom has since signed into law.
But there are still lots of questions about how the state will spend its surplus. For one thing, Newsom and legislative leaders cannot agree on how to give money back to taxpayers to help offset higher gas prices. At least one of Newsom's January budget proposals won't happen. With gas prices soaring, the governor had wanted to halt an inflationary increase in the state gas tax this summer. But Democrats who control the state Legislature did not agree to do that, and now it's too late.
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