Money would be directed towards carbon emissions

by Brian Leubitz

AB 32, our landmark climate change legislation, will have some enormous impacts on the state’s economy and the government. However, there’s this:

The amounts are potentially enormous: from $1 billion to $3 billion a year in 2012 and 2013, jumping to as high as $14 billion a year by 2015, according to the nonpartisan state Legislative Analyst’s Office. By comparison, the state’s current budget deficit is $9 billion.

But like thirsty castaways on an island surrounded by ocean water they can’t drink, Gov. Jerry Brown and state legislators face strict constraints on how they can spend the money. More than 30 years of court rulings and ballot measures — dating to Proposition 13 in 1978 — limit its use, probably only to projects that reduce greenhouse gas emissions.(Media News)

The state already has some spending lined up, including helping to pay for cleaner burning trucks for the ports. There is likely to be some benefit for the budget, as spending for climate change programs are shifted away from the general fund. However, unless the legislation is changed, it isn’t the solution for the deficit.