California is awash in tax revenue and budget reflects it

California Budget
Posted at 11:08 AM, May 14, 2021
and last updated 2021-05-14 14:08:13-04

SACRAMENTO, Calif. (AP) — California Gov. Gavin Newsom is delivering a booming spending plan to the Legislature.

It's fully one-third larger than the state's current budget. Newsom revealed his initial budget proposal in January. He updated that proposal Friday based on more than $100 billion in new money.

That's a combination of a $76 billion surplus of state revenues plus $27 billion in federal coronavirus aid.

In his plan, Newsom wants to give 11 million people direct payments of up to $1,100 and pay for all 4-year-olds to go to pre-kindergarten for free.

He also wants to give $1.5 billion to small businesses hurt by the pandemic. Lawmakers have until mid-June to consider the plan.

See Gov. Newsom's full press conference on the budget below: