California Governor Gavin Newsom has released his budget proposal for the next fiscal year, which includes a plan to use funds from the Proposition 4 climate bond to support priority programs for agriculture, water, and wildfire resilience. The $322 billion budget is expected to be balanced, but Republicans have warned that deficits may return if spending is not further curbed.
The governor plans to use $2.7 billion from the climate bond, which was approved by voters in November, to fund projects for drinking water, restoring the Salton Sea, water reuse and recycling, and other initiatives. The general taxpayer fund will also contribute an additional $174 million for water projects, including storage, groundwater recharge, and river improvements. An additional $176 million in bond money will support conservation efforts, habitat restoration, and floodplain protection, which could benefit the Sacramento-San Joaquin Bay-Delta watershed.
The Northern California Water Association, which represents prominent irrigation districts in the Sacramento Valley, is hoping to align some of the proposals with their “ridgetop to river mouth” strategy for water management.
The governor also plans to allocate $134 million from the bond to climate-smart programs at the California Department of Food and Agriculture. This includes $37 million for water efficiency grants, $36 million for Healthy Soils, and $20 million for combating invasive species. The general fund will provide an additional $25 million for Farm to School grants.
As a major supporter of the climate bond, the California Climate & Agriculture Network praised these investments. However, they noted that Newsom is not proposing any new general fund dollars for Healthy Soils, on-farm water conservation, or livestock methane reduction programs.
The California Farm Bureau also expressed appreciation for the investments, but pointed out the increasing costs for farmers in the state. They urged policymakers to follow through on their commitments to address these issues and make farming more affordable.
The budget plan also includes measures to address the state’s transition to clean energy. Newsom is calling for a decision on extending the cap-and-trade program beyond 2030 to be made soon in order to provide certainty and attract stable investment. He also plans to use revenues generated by the program to address energy affordability.
The budget debates will continue throughout the spring and may extend into September before a final budget is approved. For more information, please visit: https://www.agri-pulse.com/articles/22187-newsom-leans-on-climate-bond-to-shore-up-ag-and-water-programs-in-state-budget