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Finance and LAO outline cap‑and‑trade revenues and GGRF plan; committee urged to monitor auction volatility

2577970 · March 12, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Department of Finance summarized lowered auction revenue estimates and the governor's cap‑and‑trade discretionary spending plan; LAO recommended monitoring revenues and expressed concerns about shifts from GGRF to Proposition 4 funds to support the motor vehicle account.

The subcommittee received an overview of the governor’s cap‑and‑trade revenue estimates and the proposed greenhouse gas reduction fund (GGRF) discretionary spending plan.

Brandon Merritt of the Department of Finance said the governor’s budget estimates auction revenues for 2024‑25 at roughly $4.1 billion — about $600 million lower than prior estimates — and projected 2025‑26 auction revenues of approximately $4.2 billion. Finance noted strong interest earnings…

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