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California is awash in tax revenue and budget reflects it

California Budget
Posted at 12:16 PM, May 14, 2021
and last updated 2021-05-14 15:16:31-04

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.