2022-23 State Budget
On Monday, January 10th Governor Newsom introduced his 2022-23 State Budget proposal. Revenues are again surging resulting in a projected $20 billion revenue surplus. Prior revenue forecasts released by the independent Legislative Analyst’s office projected a $31 billion budget surplus in 2022-23, creating an approximate $10 billion discrepancy in available discretionary spending. Beginning in March the Legislature will work through each of the Governor’s proposed Budget actions through the Budget subcommittee process in each house and will propose changes. In May, the Governor will announce his May Revision of the Budget, which is reflective of revenues post tax-season and will include updated revenue estimates. In late May Budget negotiations will take center stage in the Legislature and the final Budget will be passed by the June 15th constitutional deadline.

There are several major expenditures of interest to CASA members in the Governor’s Budget, including:
$22.5 Billion for investments for Climate Change, including:
  • $750 million for water resilience and drought response;
  • $2.1 Billion for Nature Based Solutions, Extreme Heat, Coastal Resilience and Community Resilience, including:
  • $382 million for nature-based solutions to support the Governor’s 30×30 initiative
  • $350 million for coastal wetland protection, restoration, and resilience
  • $6.1 billion over 5 years for Zero Emission Vehicle (ZEV) acceleration, including:
  • $1.1 billion for zero emission trucks, buses and off-road equipment
  • $2 billion for Clean Energy Investments, including:
  • $380 million for long duration storage projects to support grid reliability;
  • $100 million to advance the use of green hydrogen;
  • $210 million for industrial sector decarbonization
$6 Billion for Environmental Protection, including:
  • $240 million for the Air Resources Board to support the Community Air Protection Program (AB 617)
  • $7.6 million to implement the Heavy-Duty Vehicle smog check program (SB 210)
New tax credits to encourage climate innovation:
  • $250 million per year for 3 years in credits for companies investing in activities and technologies that mitigate climate change and are headquartered in California;
  • $100 million per year for 3 years in credits for companies to fund
  • pre-development costs for new technologies such as: electric vehicle manufacturing and infrastructure; geothermal, lithium extraction, and battery manufacturing; long-duration storage; addressing methane emissions; and hydrogen technologies to reduce the use of natural gas.
We will work with the CASA State Legislative Committee to identify opportunities to support, provide feedback on, and advocate for our funding priorities in the Budget.