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Returning money to California taxpayers may aid state budget

California Gas Prices
Posted at 4:52 PM, Mar 09, 2022
and last updated 2022-03-09 19:52:35-05

SACRAMENTO, Calif. (AP) — California Gov. Gavin Newsom's proposal to send people another round of government checks could help him balance the state's budget.

The California Constitution limits how much money the Legislature can spend each year.

This year, Newsom expects the state to be at least $2.6 billion past the limit.

But that number will likely grow much larger.

To get back under the limit, the state can do things like cut taxes, spend more money on infrastructure and public education or return money to taxpayers.

On Tuesday, Newsom proposed sending rebates to taxpayers to help with the high cost of fuel.

That rebate could help keep the state beneath the spending limit.