(The Center Square) – Sen. Dave Cortese, D-San Jose, told The Center Square on Tuesday that he is happy with a $1.128 billion proposal to backfill affordable housing, transit, and clean air and water programs.
The proposal, which was advanced by the Senate Democratic Caucus on Aug. 20, is similar to what Cortese proposed to offset funding cuts to affordable housing, public transportation and other climate goals prioritized by the Golden State.
The money would come from the state’s general fund surplus set-aside account, as well as the special fund for economic uncertainties, according to the Senate Democratic Caucus.
“Our argument is we built reserves for next year that are large enough to handle some of the [greenhouse gas reduction fund,” Cortese said. “We have a proposal out there that has been largely replicated by the Senate caucus, and we’re happy with it.”
According to Cortese’s office, revenue declines from the state’s Greenhouse Gas Reduction Fund and commitments made under new legislation passed in the last year have left less than one-fifth of promised funding for affordable housing, transit and the Intercity Rail Capital Program, community air protections, the Low Carbon Transit Operations Program, fire prevention programs and safe drinking water. These programs are referred to as “Tier 3” programs paid for by money from the state’s greenhouse gas reduction fund, which is paid for by California’s cap-and-invest program, previously called cap-and-trade.
That program uses money from corporations that are the state’s biggest air polluters to pay for state infrastructure programs, according to previous reporting by The Center Square.
Cortese told The Center Square that taxpayers don't have to pay some of these costs for public project because of money from the greenhouse gas reduction fund.
Reduced money in the gas reduction fund, because of tax credits for corporations, moves the costs onto taxpayers, the senator warned.
“It’s almost worse than the taxpayers not getting their money’s worth,” Cortese said. “What the taxpayers should be upset about is these are pollution credits, so it’s really corporate dollars and taking some of the burden off taxpayers by paying for things like major transportation infrastructure.”
The proposal by the Senate Democratic Caucus introduced earlier this month aims to preserve $107 million for affordable housing, $230 million for transit, $20 million for community air protection programs, $160 million for the low-carbon transit operations program, and $55 million for safe and affordable drinking water programs, among other facets of the funding proposal.
Despite the back-and-forth among Democrats to find ways to bolster funding for priority programs, Sen. Tony Strickland, R-Huntington Beach, said he thought any funding for these programs is a waste.
“The fact of the matter is this whole movement is a war on automobiles to get people to stop driving cars,” Strickland told The Center Square. “Well, oil consumption is up in California. We’re still driving cars, and what ends up happening is that now people can’t afford to live in California and they’re moving to other states.”
