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January 14, 2020

Governor Newsom Releases 2020-2021 State Budget Proposal

Last Friday, Governor Newsom released his 2020-2021 state budget proposal, the largest budget ever at $222.2 billion. The governor will now work with the California Legislature over the next several months to address questions about the proposal and to negotiate significant additions or removals of programs and associated funding. The state budget must be passed by midnight on June 15th.

The governor continues to prioritize the environment and water policy in his budget. Highlights for Western Growers members include:

  • $1 billion over the next four years for a Climate Catalyst Fund to support the state’s transition to carbon neutrality by 2045.
  • $4.75 billion for a Climate Resilience Bond (CRB) that will be used to support investments that reduce climate risks such as floods, droughts, and wildfires. The CRB would also include $360 million for grants and loans to improve access to safe drinking water, $220 million for support of Salton Sea projects, and $140 million for enhanced stream flows and fish passage.
  • $50 million from the Cap and Trade fund for agricultural diesel engine replacement and upgrades. While very helpful, this represents $15 million less than what was allocated in the previous budget.

For additional budget items related to the agriculture industry, click here.

Contact Matthew Allen for more information on the governor’s state budget proposal.