California Sees Upbeat Budget Cushioned by $15 Billion Surplus
- Governor pushes $165 billion budget as revenue defies forecast
- Newsom says California ‘seeing real signs of recovery’
People wait in line at a Coronavirus testing and vaccination site in Los Angeles.
Photographer: Frazer Harrison/Getty Images
California Governor Gavin Newsom on Friday unveiled a $164.5 billion budget for the next fiscal year, detailing how he plans to spend a $15 billion surplus that the state has accumulated despite the pandemic-induced recession that’s left thousands of businesses shuttered and 1.5 million people still out of work.
Besides his already announced plans to allocate grants for small businesses, send $600 checks to low-income Californians, and help schools re-open more quickly, Newsom said the budget will spend a record amount for public education, dedicate $4.5 billion to help the state’s economy recover and pay down almost $10 billion in long-term liabilities. He said various savings accounts will total $22 billion, a record high. Cuts in state worker compensation may not be necessary, acccording to the budget.