Gov. Gavin Newsom on Monday unveiled a sweeping $286 billion funds proposal for the 2022 funds 12 months.
Whereas the funds as proposed doesn’t embrace one other spherical of Golden State Stimulus checks, the governor left open the likelihood for extra tax rebates this 12 months because the state figures out what to do with its large funds surplus — one probably giant sufficient to exceed California’s constitutional restrict.
Right here’s why the reply, a minimum of for now, can’t be answered with a easy sure or no.
Within the situations after the ceiling is reached, the state should return cash to taxpayers. That’s due to Proposition 4 — also referred to as the “Gann restrict” —a poll measure accredited by voters in 1979.
Final 12 months was simply the second time California soared above the restrict because it was established, the Related Press reported, and that successfully triggered the most important state tax rebate in U.S. historical past.
The Golden State Stimulus program gave again about $12 billion to taxpayers, with funds of as much as $1,100 nonetheless being issued, Newsom mentioned.
For this funds 12 months, which begins July 1, the state’s Legislative Analyst Workplace is as soon as extra projecting a funds surplus, this time to the tune of a minimum of $31 billion.
As of the January funds, California expects to exceed the “Gann restrict” by $2.6 billion, in accordance with the governor. Roughly half of the cash will go towards training, and the remaining again to taxpayers.
However whether or not they are going to be distributed within the type of stimulus checks: there’s no sure or no reply simply but.
“That’s an open-ended query,” Newsom responded when requested concerning the prospects of such funds.
No less than a part of the reason being that the projected determine “will … most probably considerably change between now and Could,” which is when the revised funds for the upcoming fiscal 12 months is due. “So we’re awaiting extra modern data and information, extra mirrored of what’s at the moment occurring earlier than we needed to put this funds to mattress to in the end make that willpower.”
And in the end, he believes that “sure,” taxpayers will obtain some type of contribution.
“What kind … and to what diploma by way of whole quantities of {dollars} will likely be decided extra intently in Could,” Newsom mentioned.
In 2021, the governor’s preliminary funds proposal included what turned referred to as Golden State Stimulus I. An expanded model of this system that introduced checks to thousands and thousands of extra residents was unveiled in June and in the end included within the 2021-2022 funds signed by Newsom in July.
