California’s massive budget surplus means residents could receive $200 discount checks under the new Senate plan 2022-04-28 14:18:32


Millions of Californians will receive $200 discount checks under a plan by state senators who say they expect the state’s additional spending power to reach $68 billion.

Senate leaders revealed their plan and economic estimates Thursday, predicting California’s budget surplus to be more than double what Gov. Gavin Newsom estimated in his January budget proposal.

At the time, Newsom predicted a surplus of about $29 billion in the state’s general fund when he presented that Spending plan For the 2022-23 fiscal year.

Both Newsom and lawmakers have suggested using the surplus money to provide relief for soaring gas prices, but they haven’t agreed on the specifics of which residents should benefit and how.

The Senate plan unveiled Thursday would send checks for $200 to individuals with incomes less than $125,000 or families with less than $250,000. It will also provide additional money for people in state programs for food aid and supplemental income for low-income residents.

The state is rife with unexpected cash because tax returns from the state’s high-income earners have continued to come in stronger than analysts expected. California taxes its wealthiest residents and businesses, which means that their financial success in the past two years has led to solid revenue for the state.