Legislators, agencies spar over May Revision’s GGRF cuts, transit grants and a $1 billion high‑speed rail pledge

Chair Senator Richardson convened the Senate Budget Subcommittee No. 5 hearing to review the governor’s May Revision proposals affecting transportation funding, including a reauthorization proposal for the cap‑and‑trade program now called “cap and invest.” Department of Finance and Legislative Analyst’s Office representatives told the committee the administration has zeroed out discretionary Greenhouse Gas Reduction Fund (GGRF) allocations in the May Revision while proposing a multiyear funding approach that, as drafted, would guarantee at least $1 billion per year for the California High‑Speed Rail Authority.

The Legislative Analyst’s Office cautioned the committee the May Revision leaves the legislature to prioritize multiple constrained funding sources. “Overall, you’re faced with a situation where general fund, greenhouse gas reduction fund, and motor vehicle account, which are 3 of the key funding sources for many transportation programs, all do not have sufficient resources to fund all of the plans that are in place for them,” Rachel Ehlers of the LAO said.

Why it matters: The administration’s plan would remove a number of discretionary GGRF commitments the legislature and regions had previously programmed. That includes formula and competitive Transit and Intercity Rail Capital Program (TIRCP) awards and the 0‑Emission Transit Capital Program allocations that local…