FOR IMMEDIATE RELEASE
January 10, 2025
Contact: Michael Blenner, michael.blenner@sierraclub.org
Governor Newsom’s Budget Proposal Relies on Climate Bonds for Key Environmental Funding
Sacramento, CA - Today, Governor Gavin Newsom released his 2025-2026 state budget proposal, which reduces general fund investments by more than $3 billion to key environmental agencies. The budget will rely on climate bond funding to backfill some of the lost funding for important environmental programs.
Nearly $890 million of the climate bond will be allocated to various water projects and programs, including $509.7 million for water reuse and recycling projects, flood management, water quality and safe drinking water programs, and Tribal Infrastructure projects. The Salton Sea Management Program will be allocated $148.2 million to allow additional time for stakeholder engagement in the Administration's proposal to establish the Salton Sea Conservancy. That proposal is expected to be submitted in the spring.
General fund money amounting to $173.5 million will be allocated to various water projects that the budget proposal says will improve water storage, replenish groundwater, improve conditions in streams and rivers, and complete various water resilience projects and programs.
The funding allocated for environmental and natural resource agencies amounts to less than 3% of the total budget. Given the extraordinary impact climate change is having on the economy, public safety and the environment, the decline in general funding for environmental agencies is startling. Even with the bond funding backfill, the environmental agencies remain underfunded given the urgency of addressing the issues those agencies cover.
Additionally, the Governor’s proposal will still have to account for potential federal cuts that have been threatened by the incoming Trump administration, so balancing the budget needs in the face of potential federal fund cuts will be essential from now until June.
Statement from Gabriela Facio, Sierra Club California Senior Policy Strategist:
“Governor Newsom’s budget proposal essentially maintains a status quo for environmental agencies. Unfortunately, that status quo is not enough in an era of extreme climate-associated events.
“As Southern California faces the most destructive wildfires in its history, we need more than just immediate response measures. California’s leaders need to more aggressively address the root of these climate emergencies and enhance investments.
“Most voters probably expected the bond funds they voted for in November to be additive to existing funding so that challenged agencies could do more, not just maintain the status quo.”
Statement from Molly Culton, Sierra Club California Chapter Organizing Manager:
“We are pleased to see water reuse and recycling projects funded from the Climate Bond included in the 2025-2026 state budget.
“However, we are anxious to see exactly how the state plans to spend the $173.5 million from the General Fund and the $231.5 million from the Climate Bond allocated for dam safety and climate resilience. None of that money should be spent on out-of-date proposals, like the Sites Reservoir Project and the Delta tunnel project, that won’t solve the water problems we face in this new climate era, but will significantly harm the environment.”
Sierra Club California is the legislative and regulatory arm of Sierra Club’s 13 local chapters in California, representing half a million members and supporters.