Governor Gavin Newsom has presented the 2024-25 state budget proposal. The proposed budget will reportedly close what the Newsom Administration conservatively projects as a $37.86 billion shortfall. Last month, the Legislative Analyst’s Office projected a $68 billion budget deficit. Newsom cited reserves that were built up and a “commitment to fiscal discipline over the years” as putting the state in a position to overcome funding shortfalls. The proposal includes more than $8 billion in cuts to existing programs and delays more than $5 billion in spending.
The budget proposal involves several key adjustments in funding allocation for environmental and agricultural programs. Notably, the budget includes a $22.1 million provision to combat exotic fruit fly infestations and a $12.9 million reversion for drought relief to small farms. There is also a shift of $24 million from the General Fund to the Greenhouse Gas Reduction Fund (GGRF) intended for the Livestock Methane Reduction Program, with the funding delay until 2024-25. Additionally, a reversion of $23 million from the General Fund is outlined for the Enteric Methane Incentives Program, while maintaining a $2 million allocation to the program.
Another shift of $20.6 million to the GGRF for the State Water Efficiency and Enhancement Program is also proposed, with funding delayed to 2024-25. Climate-smart ag initiatives, previously allocated at $1.1 billion over multiple years, retain $1 billion in investments despite reductions and funding shifts. The budget upholds a commitment of $7.3 billion for drought resilience and response, encompassing flood protection, levee repair, and Salton Sea restoration.
Specifically, the budget proposal allots $33.3 million ongoing to the Department of Pesticide Regulation Fund and GGRF. This funding is to be phased in over three years and includes increases for pesticide evaluation, enforcement, compliance, and regulation development. The budget also proposes an increase of approximately $8.3 million annually for three years to the Labor and Workforce Development Fund. This supports the Department of Industrial Relations and the Agricultural Labor Relations Board in educating rural workers on workplace rights.
Brian German
Ag News Director / AgNet West