California lawmakers to vote on $308B spending plan
California residents will receive cash for gas costs
California lawmakers are set to vote on a plan to spend close to $308 billion in taxpayer money over the course of the next year.
In the new operating budget for the world's fifth-largest economy – drafted by Gov. Gavin Newsom and others – is $17 billion in new spending aimed at providing inflation relief.
Earlier in June, the Labor Department reported that inflation rose to a new four-decade high in May; it's impacted the prices for most things, like gasoline and groceries.
In California, more than 20 million residents will receive cash payments of between $200 and $1,050 to help pay for gas costs.
Gas prices are advertised at over six dollars a gallon in Los Angeles, California. (AP Photo/Marcio Jose Sanchez / AP Newsroom)
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Businesses will receive $2.3 billion, which includes a suspension of the state sales tax on diesel fuel. The suspension lasts for a year.
The package also includes additional funding to help people pay their rent and utility bills.
FILE - California Gov. Gavin Newsom discusses the effect of the drought on power generation after touring the Edward Hyatt Power Plant at the Oroville Dam, in Oroville, Calif., Tuesday, April 19, 2022. (AP Photo/Rich Pedroncelli, File) / Associated Press)
It also commits to making California the first state to provide free health care for all low-income adults, regardless of their immigration status.
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In addition, the budget includes more than $200 million to support abortion clinics and other reproductive health care services following the overturning of Roe v. Wade.
FILE: The U.S. Supreme Court building is shown, May 4, 2022 in Washington. (AP Photo/Alex Brandon, File / AP Newsroom)
In a joint statement, Newsom, Senate President pro Tempore Toni Atkins and Assembly Speaker Anthony Rendon said it addresses the state's most pressing needs.
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"In the face of growing economic uncertainty, this budget invests in California’s values while further filling the state’s budget reserves and building in triggers for future state spending to ensure budget stability for years to come," the trio said.
The Associated Press contributed to this report.