United states

California Gov.: Surplus $ 98 billion in support of a real, life-supporting state

SACRAMENTO, Calif. (AP) – California Gov. Gavin Newsom on Friday pledged to use the state’s record $ 300 billion budget, including an unprecedented surplus of nearly $ 100 billion, to “prove the future” of the state from the effects of volatile midterm elections. he fears will undermine access to abortion, gun safety and the protection of privacy across the country.

The governor of the nation’s first-largest

He described the sharp increase in spending on health, education, childcare and the environment, while promising to spend $ 125 million to make it easier for women to have abortions in California, including those in other states.

As the U.S. Supreme Court is ready to likely overturn Rowe v. Wade next month, Newsum cited a sign showing lower COVID-19 mortality in California than Republican-led states of Florida, Texas and Arizona, all of which are expected. to continue restricting or prohibiting abortions if the court overturns Roe.

Newsom introduced the first coronavirus order to stay home across the country, and many attribute his aggressive actions during the life-saving pandemic. Critics say he has gone too far and exacerbated the economic damage.

“If you’re pro-life, how the hell is that possible?” Newsham said of the higher death rates in the three states, which took a more indifferent approach during the pandemic. “Save me the mantra of being pro-life. They do not deserve this status. “

Newsham’s plaque was about how California compares to the “most populous states.” Texas is number 2, followed by Florida. But Arizona is № 14. State № 4 is led by Democrats, a strong supporter of abortion rights in New York, whose death rate from COVID is higher than Texas and comparable to Florida.

Brian Griffin, Florida’s deputy governor’s spokesman Ron DeSantis, challenged Newsum’s claim, saying that in an “appropriately adjusted format,” Florida did as well as California with COVID, “but still retained the personal freedoms of its citizens.” and did not destroy many small businesses in the process. “

California’s projected budget surplus of $ 97.5 billion is different from anything seen before at the state level and is fueled by rising tax revenues. It is larger than all the operating budgets of almost any other country.

The steady flow of tax money has prompted California Republicans – who don’t have enough people in the state legislature to have much influence – to complain about high taxes that reduce quality of life.

“He has not offered any permanent tax breaks to deal with the deteriorating accessibility crisis exacerbated by his policies,” said Republican Vince Fong, deputy chairman of the assembly’s budget committee. “The governor may not want to admit it, but California is in crisis and its budget is unsustainable.

Newsham said rising incomes were “a sign of how well many people are doing in this economy” and a reflection of “the concentration of wealth and success in the hands of a few”.

Approximately half of California’s income taxes come from the top 1% of winners who did well during the pandemic. This system makes the state more vulnerable than others to the ups and downs of the economy.

Capital gains – the increase in the value of assets such as stocks and other investments from which most wealthy people derive their wealth – account for 9.7% of California’s personal income. This is the second highest record ever recorded since 2000, just before the dotcom bubble burst and led to a recession.

The Newsom administration said this could be a sign that the economy is on the verge of slowing down again, citing insecurity caused by the war in Ukraine, supply chain problems and recent actions by the Federal Reserve. inflation. According to him, revenues from capital gains will fall by 22% next year.

Newsom’s proposal will leave the state with $ 37.1 billion in reserves, while using almost all of its surplus for non-recurring expenses. One of his biggest proposals is to return $ 18.1 billion to taxpayers in the form of tax rebates and programs that offer rental assistance, utility bills and health insurance premiums.

As gas prices hit record highs in March, Newsom proposed suspending the state’s diesel tax, offering discounts of up to $ 800 for each person with registered vehicles in the state, and spending $ 750 million to give everyone free ride on public transport for three months.

But that proposal has gone nowhere in the state legislature, where Democratic leaders prefer a narrower package of benefits that targets only low- and moderate-income families.

Newsom insisted the two sides would agree to receive inspections later this year. Republicans say the state should instead suspend its gas tax, the highest in the nation at 51.1 cents a gallon.

“The governor is living in a fantasy country during the election year if he believes that promises of debit cards and discounts in the fall will provide relief now,” said Senate Republican leader Scott Wilk.

Newsom’s budget presentation comes when the state is in agony of a deepening drought and when government energy officials warn of a possible power outage in the summer, when air conditioning is at its peak.

The governor called on people to reduce water consumption by 15%, but consumption rose sharply in March. Newsom wants to spend more money to promote environmental protection, lend to drinking water systems and promote water recycling. It includes $ 75 million in grants to drought-stricken farms and businesses.

He, meanwhile, is calling for $ 5 billion to create a 5,000-megawatt “strategic reserve” of energy to help the state avoid power outages. One megawatt can power 750 to 1,000 homes.

Newsom’s budget document includes limited details on how the reserve will be built, but he said it is open to the Diablo Canyon nuclear facility remaining online after its planned closure in 2025, as well as some gas-fired power plants. to retire.

The budget plan must be approved by the legislature and enter into force on 1 July.