SACRAMENTO, Calif. — Gov. Gavin Newsom signed a more than $300 billion state budget Thursday, which includes money to cover abortions, health care for undocumented immigrants, and inflation relief payments.
“In the face of new challenges and uncertainties, we’re providing over $17 billion in relief to help families make ends meet, and doubling down on our investments to keep building the California Dream on a strong fiscal foundation,” said Newsom. “This budget invests in our core values at a pivotal moment, safeguarding women’s right to choose, expanding health care access to all and supporting the most vulnerable among us while shoring up our future with funds to combat the climate crisis, bolster our energy grid, transform our schools and protect communities. Building a better future for all, we’ll continue to model what progressive and responsible governance can look like, the California way.”
The budget continues a turnaround for the nation's most populous state, which just two years ago raised taxes and slashed spending to cover what they feared would be a staggering $54.3 billion budget deficit caused by the pandemic.
Instead, California's revenues soared on the back of a roaring stock market boosting the wealth of the state's share of millionaires and billionaires who pay higher tax rates than other states. The top 1% of California earners account for roughly half of all the state's income tax collections.
The result? A $97 billion budget surplus, the largest in state history.
About $9.5 billion of the budget is going back toward 23 million California taxpayers. They'll be getting up to $1,050 as soon as October.
Another investment comes in the form of $200 million in reproductive care and $53.9 billion in new investments related to climate change, including fire protection and drought response.
See if you qualify on the new Middle-Class Tax Refund calculator here.
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