Questions and Concerns with California Budget Proposal

Brian German Agri-Business, Funding, Industry

Budget Proposal

Leaders in the California agriculture industry have responded to Governor Gavin Newsom’s budget proposal. Newsom unveiled the $291.5 billion budget on January 10, and many in the industry are evaluating how the budget will affect agriculture. 

A budget deficit of $37.9 billion is being reported by the Newsom Administration, which is a significant departure from a previous estimate of $68 billion from the Legislative Analyst’s Office in December. The proposed plan includes cuts to sustainable agriculture and climate initiatives, increased funding for fruit fly mitigation and to the Department of Pesticide Regulation. The state will also dip into its rainy-day reserves to meet the goals set in the budget plan. 

CDFA SUSTAINABLE AGRICULTURE INITIATIVES 

The budget proposal will impact several initiatives focused on sustainability which strive to build up financial safety, infrastructure, and weather recovery relief funds for small-scale producers. These programs are developed and supported by the California Department of Food and Agriculture (CDFA). Jamie Fanous, Policy Director of Community Alliance with Family Farmers, said that “we have fought every year to maintain funding for the Farm to Community Food Hubs program…yet the Administration repeatedly chooses to cut the funding,” and that “over $100 million in budget cuts in family farmer-centered programs is disappointing to California’s family farmers as they work to build equitable food systems and climate change resilience.” 

EXOTIC FRUIT FLY

President of the California Farm Bureau, Shannon Douglass, said that she appreciates Governor Newsom’s protection of the state’s farming economy by “investing $22 million to combat the fruit fly invasion.” At the same time, there is also hope that “the governor and the Legislature will ease regulatory burdens affecting farmers and ranchers producing our food supply.” 

The fruit fly invasion has impacted a number of crops across the state. An estimated cost associated with avoiding eradication “would range from $44 to $176 million in crop losses, additional pesticide use, and quarantine requirements” said the CDFA in its pest profile. The funding is a response to the exotic fruit fly infestations across 15 counties. 

DEPARTMENT OF PESTICIDE REGULATION 

The Department of Pesticide Regulation (DPR) would see increased funding of $33.3 million and the addition of 117 new positions under the budget proposal. The funding would come from the pesticide mill fee which will increase over a three-year period. The mill fee accounts for roughly 80 percent of the DPR’s funding. The budget proposal also includes changes relative to the collection of the mill assessment, data review, registration, and enforcement.

The increased funding for DPR has received support from environmental groups. However, concerns were also raised that the budget proposal does not go far enough. Organizing co-director of the Pesticide Action Network, Asha Sharma said, “the increase in funds could help spur a much overdue transition to safer ways to manage pests other than toxic chemical use.”  

Co-director of Californians for Pesticide Reform, Angel Garcia, said that he is “cautiously optimistic” about the funds because they could also be used “to speed up registration of new pesticide products in California—a long-time push of industrial agriculture and chemical corporations.” Garcia said that doing so would “jeopardize the rigor of the scientific review process.” 

FOOD INSECURITY 

The California Association of Food Banks has responded positively to the governor’s proposal, saying that they “applaud Governor Newsom for prioritizing the well-being of California’s most low-income residents.” The budget proposal maintains support for CalFood and CalFresh programs while adding $112 million for the statewide school meal program. The association encourages Newsom to “continue his steadfast commitment to ensuring all Californians have the food they need to thrive, by protecting and strengthening investments in our food safety net,” it said. 


Contributing Author:
Lauren McEwen
AgNet West Intern