Subcommittee examines Cal Fire GGRF swap and backstop language

Members asked detailed questions about the mechanics and contingencies for the administration’s decision to use GGRF revenue for Cal Fire state operations.

Andrew March of the Department of Finance explained that the June budget agreed to $1.25 billion of GGRF for Cal Fire in 2026–27 and $500 million in 2027–28 and 2028–29, noting the arrangement replaced general fund support for certain state operations. March said if GGRF receipts fall “below $2,400,000,000” provisional budget language would make CAL FIRE whole using general fund resources.

LAO and other witnesses said the shift reduces available discretionary dollars for Tier 3 programs and underscored uncertainty in GGRF receipts as a complicating factor for long‑range commitments. Members pressed whether interest earnings should be included in SB 8 40 methodology and whether backfills for Tier 3 should be pursued with general fund dollars; Finance said they had not advanced a specific backfill proposal but acknowledged options such as bond or ballot measures could be discussed.

The subcommittee did not vote on a policy change but sought further clarity on thresholds, contingency plans and the implications for tiered allocations.