Governor Signs State Budget Bill to Return Gasoline Subsidies

On Thursday, California Gov. Gavin Newsom signed a bill for a new $307.9 billion state budget. The budget focuses on gasoline rebates for 17.5 million taxpayers to ease the high cost of living for Californians.

The bill reportedly provides for refunds ranging from $200, for individuals, to $1,050 for couples with children. The State of California has worked to return a portion of the projected $101.4 billion surplus to Californians. The governor and lawmakers are also investing billions of dollars in public education for grades one through 12 to ensure there is enough power to keep the lights on during heat waves. The state has also allocated $47 billion for infrastructure projects over the next three years.

Newsom said in a statement that the bill reflects the core values of the state of California. He explained that California’s values include ensuring women’s right to choose, expanding access to health care for all, supporting the most vulnerable among us, as well as supporting people’s futures with funds to address the climate crisis, strengthening California’s energy grid, transforming California’s schools and protecting our communities.

The budget covers the 2022-23 fiscal year that begins Friday. This was a period when economists warned that Russia’s invasion of Ukraine, interest rates and inflation could weaken the U.S. economy and lead to a recession. Since California’s Government revenue comes primarily from income taxes paid by high-income earners, Newsom said the bill’s introduction would certainly undercut California’s record revenues in recent years.