California announces $75 billion budget surplus
California secured a more than $75 billion budget surplus after boosts from a thriving stock market and tax revenues, Gov. Gavin Newsom (D) said Monday.
Why it matters: Last year, the governor's office projected a budget deficit of up to $54 billion due to the fallout from the COVID-19 pandemic — about a quarter of the entire budget. On Monday, Newsom laid out his plan to use the surprise surplus to fund what he called the biggest economic recovery package in state history.
Details: Newsom's $100 billion proposal would provide $12 billion more in direct payments to residents: $600 for most people along with an additional $500 for families with dependents.
- The money would go to families earning less than $75,000 annually.
- The package would also assist renters, covering 100% of their past-due rent.
What to watch: Newsom will announce the rest of his proposal in an address on Friday.
What he's saying: "This is just the first of many announcements this week across the spectrum that amplify the narrative of this state truly roaring back," Newsom said at an address.