ONE: INTRODUCTION:
Opening sentence from a Sacramento Bee article of Wednesday, May 14:, 2025:
“Gov. Gavin Newsom said Wednesday morning that California is facing a shortfall of $12 billion for the upcoming budget year. Newsom’s office blamed the deficit on economic uncertainty caused by President Donald Trump’s policies and likely cuts to Medicaid. The overall budget, if passed by the Legislature by June 15, would top $321 billion.”
TWO: DISCUSSION:
In accordance with state law, in January of 2025, Governor Gavin Newsom presented his “proposed budget for 2025-2026.” The “budget process” then began, as legislative committees review all sections of the budget and add legislative proposals for the “final package” that must be passed by the State Legislature by June 15 so the Governor can review the legislative version of the budget, make changes, and sign the budget into law and implementation on July 1.
However: every California Governor must announce the “May Revision” in which the Governor’s Department of Finance adds up taxes collected in April and tells the Governor — who tells US — if the taxes collected bring in MORE money than the Governor budgeted in January (a surplus) or LESS money than the Governor budget in January (a deficit., or shortfall) At this week’s May Revision press conference on May 14, Governor Newsom announced a $12 billion deficit.
But Governor Newsom also announced his recommendations to cut some funds, shift some funds and even add some funds to balance the budget. Some forestry-and wildfire related programs will be protected.
Crucially, the Governor proposed extending the Cap and Trade Program until 2045(it currently expires in 2030), and renaming the program “Cap and Invest”. This program funds the Greenhouse Gas Reduction Fund, which in turn funds various climate-related wildfire prevention programs and other forestry-related matters — and funds CAL FIRE in some ways.
THREE: LINK TO THE ENTIRE 98-PAGE 2025-2026 MAY REVISION BUDGET SUMMARY
Below:
A link to the 2025-2026 May Revision Budget Summary.
2025-26 May Revision Budget Summary
This Budget Summary runs for 103 pages, give or take some pages “intentionally left blank.” We doubt that you will want to print out all 103 pages, or to read the entire document, but you may wish to view selected pages, including those starting at Page 29, including these provisions.
Climate Change and Environment
“Cap and Invest”(a discusson of the proposed new name for “Cap and Trade” – the Greenhouse Gas Reduction Fund will be used to fund certain CAL FIRE activities and there is “a General Fund backstop to protect CAL FIRE’s operations in the event the Cap-and-Invest auction proceeds fall below projected revenues.”)
Department of Forestry and Fire Protection(CAL FIRE) Operations Costs
FOUR: SUMMARY
As of today, the Legislature still must accept or reject the Governor’s May Revision recommendations, and make their own recommendations, before a final 2025-2026 budget can be passed and signed in June. Associated California Loggers will follow these developments and look out for programs and funding that can be of assistance to our members.