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What About Rebate Checks? Democrats Want To Spend California’s Surplus on Infrastructure

Source: Sacramento Bee

State lawmakers want to use a projected $31 billion surplus to fuel an infrastructure boom, a tactic that could reduce the amount Californians might see in any rebate checks this year – if they happen at all. The state expects to have so much money it risks exceeding a state spending threshold called the Gann Limit. If it does, it must send more money to schools and some money back to taxpayers through rebates.

Top Democratic lawmakers who control the budget process in Sacramento said they intend to reduce the amount they exceed the limit in part by spending a big chunk of the projected surplus on infrastructure. Assemblyman Phil Ting, who runs the Assembly Budget Committee, said he wants to spend a “significant portion” of the surplus on infrastructure, including $10 billion for school facilities and $10 billion for transportation projects.