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May Revision would extend 'cap-and-invest' to 2045 and shift $1.5 billion to Cal Fire; lawmakers and stakeholders warn of downstream cuts
Summary
The governor's May Revision proposes extending California's cap-and-trade program to 2045 and shifting $1.5 billion from the general fund to the Greenhouse Gas Reduction Fund for Cal Fire operations, drawing warnings from lawmakers and stakeholders about cuts to transit, housing, and community air programs.
The governor's May Revision proposes extending California's cap-and-trade program to 2045, relabeling it the "cap and invest" program, and shifting $1.5 billion from the general fund to the Greenhouse Gas Reduction Fund (GGRF) to support Cal Fire operations in 2025–26, rising to $1.9 billion by 2029–30.
The measure, presented to Assembly Budget Subcommittee No. 4 by Department of Finance staff, frames the extension as a way to provide market certainty and align the program with the state's carbon neutrality goal. "The May revision, solves for a general fund budget problem," said Andrew Arch of the Department of Finance during the hearing.
Lawmakers expressed skepticism about the budget design and warned the shift could force cuts to programs that have already received awards or rely on continuous appropriations from GGRF. "I'm concerned that you're proposing to…
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