California Sees Record $97.5 Billion Surplus, Driven by the Rich

California Governor Gavin Newsom said Friday that his state has a record $97.5 billion operating surplus, as high tax rates on its wealthiest residents mean he has more cash to fund liberal priorities such as education and health care.

The surplus is bigger than the entire 2020 spending of any other state except New York and Texas. Of that windfall, lawmakers can tap $49.2 billion for any purpose. That figure surpasses the staggering $38 billion that they had at their disposal during the previous budget season, then considered the biggest.

The surplus is “simply without precedent,” Newsom, a first-term Democrat ...