The Department of Finance has discovered several drafting errors in the state’s budget, leaving CDFA with $40 million less for its flagship climate program. CDFA Secretary Karen Ross on Tuesday issued a letter to stakeholders apologizing for the accounting error.
Gov. Gavin Newsom and First Partner Jennifer Siebel Newsom have prized the program, with the governor raising the budget for the Healthy Soils Program exponentially over the years. He had initially proposed $85 million for the incentive grants for the 2022-23 budget cycle.
CDFA has already made commitments for Healthy Soils block grants and demonstration projects. That left the department with one option, to cut direct-to-producer grants down to $11 million.
Ross recognized the error will disrupt plans for mitigating greenhouse gas emissions and building climate resilience, while posing challenges for the state to meet its climate goals for natural and working lands. She was hopeful tax revenues will improve the budget outlook for next year but cautioned farmers to be prepared for “a vastly changed budget scenario.”
It’s easy to be “in the know” about what’s happening in Washington, D.C. Sign up for a FREE month of Agri-Pulse news! Simply click here.
During the monthly meeting of the State Board of Food and Agriculture on Tuesday, Ross called the budget situation uncertain and discouraging. With tax filing deadlines delayed, the state will not have final revenue numbers until later this month. She said the administration is preparing for a rapidly changing budget situation, with heavy scrutiny on one-time funding provisions.
“I don't want to be overly bleak, but I also don't want to hold out false hope,” said Ross.
And time is running short. The governor presents his initial budget proposal in early January for the next fiscal year.
