Senate subcommittee examines May Revision transport plan as GGRF shifts put transit and high‑speed rail under scrutiny

The California Senate Budget Subcommittee No. 5 at the State Capitol heard an informational briefing on the governor's May Revision transportation package, which would reauthorize cap‑and‑trade as "cap and invest," set a suggested $1 billion‑per‑year floor for high‑speed rail, and zero out the administration's discretionary greenhouse gas reduction fund (GGRF) allocations in the current proposal.

Why it matters: The administration's May Revision would preserve certain continuous appropriations while removing discretionary GGRF commitments that had been programmed for transit capital and other transportation priorities. That change would immediately affect competitive and formula transit programs and has prompted concern from regional transit agencies and the Legislative Analyst's Office (LAO).

Overview and administration framing James Moore of the Department of Finance told the committee the administration seeks a multiyear GGRF expenditure plan developed with the Legislature. "The intent of the administration is to develop a multiyear GGRF expenditure plan with the legislature to fund shared priorities," Moore said, but he noted the May Revision "does not include any of the discretionary GGRF included in last year's budget." Moore listed discretionary reductions by program category and said the administration still hopes to negotiate a multiyear plan with the Legislature.

LAO caution and priorities Rachel Ehlers of the Legislative Analyst's Office told the subcommittee the three key funds for transportation—General Fund, GGRF, and the Motor Vehicle Account—do not have enough resources to support all current commitments. She said the administration…