California Gov. Jerry Brown (D) unveiled the final budget of his tenure, a plan calling for $199.3 billion in total spending and projecting an $8.8 billion surplus, $7.6 billion of which would be deposited into two reserve funds in preparation for the next recession. “This is a time to save for our future, not to make pricey promises we can’t keep,” he said.

In the Governor’s initial January budget, $244 million was included for the agricultural community. In the May revise, the governor included an additional $60 million in funds for the agricultural community, bringing the total funding to $304 million. The specific breakdown is:

• $132 million for agricultural diesel engine replacement and upgrades;
• $64 million for food processors to implement greenhouse gas reducing projects;
• $4 million for agricultural renewable energy projects;
• $5 million for healthy soils projects; and
• $99 million for dairy digester research, development, and alternative manure management projects.

The additional funds included brings the total funding provided to the agricultural community from the Cap and Trade negotiations to $604 million over these two years.

On Thursday, May 17, Senate Budget Subcommittee 2 approved the Governor’s Greenhouse Gas Expenditure Plan as well as an additional general fund expenditure of $30 million for agricultural diesel engine replacement and upgrades.  If Assembly Budget Subcommittee 3 also approves the plan and expenditure, the items will automatically be in the budget the Legislature will vote on and will avoid Conference Committee.  Senate Budget Subcommittee 2 also rejected the Governor’s proposal of an additional $30 million expenditure of the General Fund for food processors.  The goal is for Assembly Budget Subcommittee 3 to approve this item so that it can go to Conference Committee and be further negotiated.

Senate Budget Subcommittee 2 also rejected the Governor’s proposal to supplement the Department of Fish and Wildlife’s budget with the Carl Moyer Tire fee.  The Ag Presidents C is working with Assembly Budget Subcommittee 3 to do the same, which would leave the tire fee intact.  Senate Budget Subcommittee 2 also rejected the Governor’s proposal to increase water rights fees to pay for a “new” division of administrative law judges to hear water rights cases.  The APC opposed this measure in committee as it would increase fees and not create any new independent group to hear water rights cases as was called for Assembly Member Gray’s AB 313.

Source: Sacramento Bee, LexisNexis StateNet, FWEDA