California Democrats propose $1.128 billion for climate and housing programs

The California Senate Democratic Caucus has advanced a $1.128 billion proposal to fund essential climate and infrastructure programs. The initiative aims to backfill funding gaps for affordable housing, public transit, clean air, and safe drinking water initiatives.

Senator Dave Cortese noted that the proposal seeks to utilize the state’s general fund surplus set-aside account and the special fund for economic uncertainties. This move comes in response to significant revenue declines in the Greenhouse Gas Reduction Fund, which has left less than one-fifth of promised funding available for certain 'Tier 3' programs, including the Intercity Rail Capital Program and fire prevention efforts.

According to Cortese, the reduction in the Greenhouse Gas Reduction Fund—driven by corporate tax credits—threatens to shift the financial burden of these public projects onto taxpayers.