A year after slashing spending to fill a record-breaking deficit spurred by the pandemic, California Gov. Gavin Newsom is eyeing a massive surplus and hopes to send out a second, larger round of stimulus checks to residents.

“It’s a remarkable, remarkable turnaround,” Newsom said in an interview with All Things Considered Monday.

California’s progressive tax structure means the state budget suffered early in the pandemic but quickly rebounded, bolstered by capital gains taxes and high-income earners who’ve seen their wealth grow over the past year.

Newsom, who will likely face a recall election later this year, announced a plan to send billions of dollars back to taxpayers. If approved, the state would give $600 checks to workers who earn up to $75,000 annually, with $500 bonuses for tax filers with dependents and undocumented families.

Newsom said 80% of the state’s workers and two-thirds of all residents would benefit from the plan.