The Legislature agreed to increase the income limits it had initially proposed, while preserving its original intent to give higher payments to families who earn less money. The governor compromised with lawmakers on the final refund plan, giving up his push to offer money exclusively to drivers. Many lawmakers wanted to direct more of the surplus to infrastructure funding, which ultimately included a multiyear investment of $14.8 billion in transportation, $2 billion for student housing through 2025, more specific projects in their home districts and other spending priorities.

Newsom and the Legislature disagreed for months over income eligibility for gas refunds and how much Californians should receive, a debate that delayed the timeline to begin delivering payments until October. The package includes $9.5 billion in gas refunds, $1.4 billion in utility payment assistance, expanded tax credits, $250 million for paid sick leave grants, a suspension of the sales tax on diesel fuel at a cost of $439 million to the state and $75 million in drought relief grants. The spending plan that Newsom and lawmakers approved features a $17-billion relief package to help families, seniors, low-income Californians and small businesses. That would surely dampen the record revenues California has received in recent years largely from income taxes paid by its highest earners. It’s a period in which economists warn that the Russian invasion of Ukraine, interest rates and inflation could weaken the U.S. The budget covers the 2022-23 fiscal year that begins Friday. “This budget invests in our core values at a pivotal moment, safeguarding women’s right to choose, expanding health care access to all and supporting the most vulnerable among us while shoring up our future with funds to combat the climate crisis, bolster our energy grid, transform our schools and protect communities,” Newsom said in a statement. The governor and lawmakers also invested heavily in K-12 public education, directed billions of dollars to secure enough power to keep the lights on during heat waves and earmarked $47 billion for infrastructure projects over the next three years. The refunds, varying from as little as $200 for individuals up to $1,050 for couples with children, are the hallmark of the state’s effort to return a portion of an anticipated $101.4-billion surplus back to Californians. Gavin Newsom on Thursday signed into law key elements of a new $307.9-billion state budget, a spending plan centered on gas refunds for 17.5 million taxpayers to soften the sting of high fuel prices and the cost of living.

Rail maze limited budget