Today Governor Gavin Newsom unveiled his California Comeback Plan, which means two-thirds of Californians would receive $600 stimulus checks, and some families with children would get $1100 checks. This is all happening as the state is projecting a $75 billion budget surplus. It’s a far cry from the $54 billion fiscal shortfall projected last year.
The boom is the result of California’s top earners doing financially well during the pandemic, says Nicole Nixon, politics reporter for Capital Public Radio. “Because of California's tax structure, higher earners pay more in income taxes. There's also a tax on capital gains. So when the stock market's doing well, California's budget is doing really well too.”
Nixon says the plan seems inclined to get approval from the California State Legislature.
