Budget Spotlight - 05/09/2025

Subcommittee #1 (Education) Laird (D-Santa Cruz) Chair, Ochoa Bogh (R-Yucaipa), and Pérez (D-Pasadena) 

Subcommittee 1 did not meet this week.

Subcommittee #2 (Resources, Environmental Protection, and Energy) Allen (D-Santa Monica) Chair, Choi (R-Irvine), Blakespear (D-Encinitas), and McNerney (D- Pleasanton)

Senate Panel Grills CARB Over Cap-and-Trade Transparency Amid Reauthorization Push. A joint informational hearing by the Senate Environmental Quality Committee and Budget Subcommittee No. 2 reviewed the reauthorization of California’s Cap-and-Trade program. Senators directed sharp scrutiny at the California Air Resources Board (CARB) regarding its management of the program. Senator Steven Choi (R-Irvine) spearheaded concerns, questioning CARB's transparency and oversight as the agency seeks to reauthorize and expand Cap-and-Trade. Lawmakers pressed CARB on its methods for setting emissions targets and allocating allowances, especially given the program's significant proposed spending and its central role in California's 2045 carbon neutrality mandate. Concerns arose when CARB admitted to tracking, but not counting, wildfire emissions towards the state's 2030 reduction targets. "CARB needs to be at the forefront of wildfire mitigation, not on the sidelines," asserted Senator Choi. "Their acknowledgment of monitoring wildfire emissions without taking responsibility undermines the very credibility of our climate policies." Senator Choi remains a vocal advocate for cost-effective, science-driven emissions reduction strategies, emphasizing proactive forest management and local resilience over what he views as burdensome state mandates.

Subcommittee #3 (Health and Human Services) Weber Pierson (D-San Diego) Chair, Grove (R-Bakersfield), Menjivar (D-San Fernando Valley)

Supporting Food Banks with California Grown and Produced Foods. The CalFood program provides funding for food banks to purchase, store, and transport California-grown and produced food. In recent years the program has received additional one-time funding, for an average yearly funding of $63 million since 2022-23. The Governor’s proposed budget for 2025-26 brings the program back down to its baseline of $8 million, representing an 87 percent reduction. The California Association of Food Banks notes that in 2023, their network saw a 20 percent year-over-year increase in the number of Californians served, and they have continued to see growing demand. As Democratic policies have raised the cost of many goods in California, including groceries, more residents face challenges making ends meet and may turn to food banks to feed their families. Senator Shannon Grove (R-Bakersfield) recently signed a letter requesting an increase of $52 million to CalFood’s budget, showing her support for bolstering California farmers and food producers while simultaneously assisting families.

Subcommittee #4 (State Administration and General Government) Cabaldon (D-Yolo) Chair, Niello (R-Fair Oaks), and Smallwood-Cuevas (D-Los Angeles)

Education Learning Lab Resources Duplicative. The subcommittee approved on a vote of 2-1 the Governor’s transfer of the California Education Learning Lab, along with $4 million in base funding, to the Government Operations Agency. Senator Roger Niello (R-Fair Oaks) voted No on the issue. The program awards grants to faculty teams to develop online course content and to support faculty professional development. In previous years, the nonpartisan Legislative Analyst’s Office (LAO) has recommended that Learning Lab funds be redirected toward other higher education budget priorities. The LAO has opined that these funds are duplicative since the core mission of the program overlaps with activities campuses are already undertaking. Given the enhanced level of campus engagement with online education in recent years, and the state’s looming deficits, the duplicative Education Learning Lab program and should not be prioritized over other critical higher education programs.

Subcommittee #5 (Corrections, Public Safety, Judiciary, Labor, and Transportation) Richardson (D- San Pedro) Chair, Seyarto (R-Murrieta), Wahab (D-Hayward), and Durazo (D-Los Angeles)

Inmates Abuse Staff Misconduct Investigation Process. The subcommittee discussed the Department of Corrections and Rehabilitation’s (CDCR’s) staff misconduct review process. Legislative Democrats have portrayed the volume of complaints received and the seemingly low number resulting in disciplinary action as an indication that CDCR does a poor job disciplining its workforce. When Senator Kelly Seyarto (R-Murrieta) pointed out the recent dramatic increase in opportunities for inmates to submit complaints and asked whether correctional officers find themselves facing false accusations for retaliatory or other reasons, a 20-year veteran correctional officer testified that inmates often abuse the system to temporarily rid themselves of effective officers who impede illicit activities, knowing that an accusation may cause the officer’s removal pending investigation. While it is important to ensure the staff misconduct investigation process weeds out bad actors, it is equally important to ensure that inmates do not weaponize the process to undermine valuable staff and disrupt the system.