May 11, 2018 – -Gov. Jerry Brown released his revised state budget proposal that boosts education funding to an all-time high, fills the Rainy Day Fund to the brim, and directs billions of dollars in one-time surplus funding to combat homelessness, improve mental health services and rebuild crumbling infrastructure.
Governor Brown continued to emphasize the importance of saving for our future, and the May Revision maintains the January budget commitment to increase funding to the rainy day account. By the end of the current fiscal year, this fund will have a total balance of $9.4 billion growing to $13.8 billion by the end of 2018-19. Additionally, to further protect against the next economic downturn, the budget proposes to direct an extra $3.2 billion into the state’s traditional budget reserve fund.
Also included in the budget is $96 million of cap and trade funds to implement the Forest Carbon Plan and take other actions to protect California’s forests against the increasing threat of disastrous wildfires. This $96 million comes in addition to $160 million proposed in January’s cap-and-trade expenditure plan to support forest improvements and fire protection.
The Brown administration asserts that California’s agricultural sector offers substantial opportunities to reduce greenhouse gas emissions while improving air quality and maintaining our food economic security. The Administration’s Cap and Trade Expenditure Plan provides $244 million for multiple Climate Smart Agriculture programs. The May Revision builds on the Cap and Trade January proposal with additional one-time investments to reduce greenhouse gas emissions.
- Agricultural Diesel Engine Replacement and Upgrades—An increase of $30 million General Fund on a one-time basis to the Air Resources Board to replace existing diesel agricultural vehicles and equipment with the cleanest available diesel or advanced technologies. Emissions from agricultural equipment are a significant source of air pollution, especially in the San Joaquin Valley, and reducing these emissions is critical for meeting federal ozone and particulate matter air quality standards.
- Agricultural Energy Efficiency Program—An increase of $30 million General Fund on a one-time basis for the Energy Commission to fund innovative projects that reduce energy costs, increase efficiency, and reduce greenhouse gas emissions in the food processing sector. Funded technologies will accelerate the adoption of advanced energy efficiency and renewable energy technologies, and help contribute to meeting the state’s energy efficiency and greenhouse gas reduction goals.