California’s Middle-Class Taxpayers Could Get a Rebate Under Newsom Plan

Faced with a large state surplus and a looming recall election, Gov. Gavin Newsom has proposed giving at least $600 to two-thirds of California taxpayers.

SACRAMENTO — Riding a breathtaking and exquisitely timed $75.7 billion surplus, Gov. Gavin Newsom on Monday proposed putting $600 in the pockets of two-thirds of California taxpayers in a state rebate that if approved would be the largest in U.S. history. The proposal, one in a series the governor plans to make this week in his annual budget revision, takes advantage of a remarkable turnaround in the state’s financial picture that comes not only as California emerges from the coronavirus pandemic, but also as Mr. Newsom works to defuse an expected recall election. Other plans for the windfall — all requiring legislative approval — include aid to low-income Californians who are behind on their utility bills and rental payments, expanded child care subsidies, drought and wildfire mitigation and more.