Gov. Gavin Newsom's revised May budget proposal includes big wins for cities and Californians, but the devil will be in the details released later this month
The Governor announced a record-breaking $267.8 billion revised May budget proposal on Friday, $40 billion higher than the one he proposed four months ago.
Repeatedly touting the budget as "historic" and "without precedent," Newsom noted, "We are trying to do things the State has talked about but never been able to accomplish because we've never had the resources to do it." The revised budget proposal included a number of one-time investments thanks to a record $75 billion state surplus, as well as an additional $26 billion in federal relief from the American Rescue Plan. The historic State Budget surplus is driven by robust personal income and corporation and capital gains tax revenues. State sales tax revenues remain strong.
