Governor’s Proposed Budget Falls Short on Housing, Transportation, and Climate

As we review Governor Gavin Newsom’s budget proposal, it’s becoming clear that, once again, proposed expenditures are not in alignment with California’s climate goals. With the first balanced budget in three years, the governor is missing a massive opportunity to commit additional resources to vital housing and transportation programs that will reduce climate emissions.

Affordable housing and transportation are essential for Californians

Affordability was clearly a big theme in the 2024 election, and investments in housing and transportation are a fundamental part of the solution. On average, Californians spend 62% of their income on combined housing and transportation costs. The state has the power to increase transit service and double down on the production of affordable housing, but Governor Newsom’s budget fails to do so. 

We need more funding for new affordable homes to combat the rising cost of housing and the increasing number of homeless residents. We’re intrigued by the creation of a new Department of Housing and Homelessness and will continue to track that closely, but we remain disappointed that the governor didn’t appropriate new funds for housing. 

Californians also need affordable transportation options. In too many communities, people are trapped in their cars and forced into long commutes to reach workplaces. While it’s notable that, for the first time in three years, the governor didn’t try to pull money from the tiny Active Transportation Program, the transportation budget still puts too many dollars toward highway projects and not enough into public transit and biking and walking infrastructure.

Climate investments are critical

Voters approved a $10 billion climate bond in 2024, which will positively impact California’s ability to put state monies toward projects that mitigate climate change. However, the bond is a fraction of what’s needed to make our communities climate-resilient. Our climate budget must find funding beyond the bond to make those investments now. Instead, the budget pulls money from existing programs that were funded by the bond.

With the reauthorization of California’s Cap and Trade program on the table this year, Transform is focused on identifying additional funding for climate solutions. As recent climate disasters such as the LA fires show, we don’t have a moment to spare to reduce emissions.