California Expects Record $68 Billion Surplus From Tax Surge (1)

California has an unprecedented $68 billion that it can use for any purpose in the next fiscal year, according to state Senate Democrats, a surplus that presents both opportunities and conflicts for Governor Gavin Newsom in his budget release next month.

The figure surpasses the staggering $38 billion lawmakers had at their disposal during the previous budget season, then considered the biggest.

The most-populous U.S. state is benefiting from soaring tax collections from its highest earners, thanks to a progressive tax system that rakes in more revenue when income rises for its wealthiest residents. That group has reaped the benefits ...