California expects the largest budget surplus in the state’s history with $97.5 billion projected by summer 2023, Gov. Gavin Newsom announced on May 13.
“Here in California, we’re putting in the work to grow our economy and implement real, inclusive policy change to create a brighter future for all,” Newsom said in a statement.
Newsom announced the surplus while introducing the $300.7 billion budget that will go into effect at the start of the July fiscal year, if approved by lawmakers.
The budget includes a $18.1 billion inflation relief package to “get money back into the pockets of Californians,” according to Newsom’s office, by helping people pay for their past due rent and utility bills, and reducing health care costs.
The multi-billion budget also includes funds to combat climate change, ensure public safety, address the homelessness and mental health crisis, transform public education, and make health care more affordable.
The budget proposal was updated from Jan. 10 when Newsom announced a $286.4 billion state budget with a $31 billion budget surplus.
Since January the state has experienced economic growth, according to the governor’s office, leading the way for an increased budget and projected surplus.
Lawmakers have until June to finalize the proposed budget that will go into effect July 1.