Legislature’s response to the California budget provides a lifeline for transit, invests in housing, and ignores biking and walking

FOR IMMEDIATE RELEASE

Contact: Zack Deutsch-Gross, [email protected], (415) 637-0101

California legislators have agreed on a budget that prioritizes needed investments in affordable housing and provides a lifeline to Bay Area transit agencies facing fiscal cliffs. However, by prioritizing highways over active transportation, the budget misses a major opportunity to meet the scale of the climate crisis.

The two-party agreement in the legislature invests $500 million in Low-Income Housing Tax Credits (LIHTC) and $120 million to the Multifamily Housing Program, rejects the Governor’s proposal to cut $1.1 billion from transit programs, and provides Bay Area transit agencies with a $750 million loan to keep buses and trains running as they seek long-term operating funds.

“We applaud the legislature’s commitment to affordable housing and keeping our transit agencies afloat,” said Transform Policy Director Zack Deutsch-Gross. “These vital investments keep the Bay Area on track toward a 2026 regional transportation measure, which depends on the legislature passing SB 63 authorizing legislation later this year.”

However, the proposal fails to address the $400 million cut from California’s Active Transportation Program in last year’s budget. As a result, only 13 of the over 300 project applications to promote safe biking and walking will move forward.

“Instead of shifting dollars toward sustainable transportation alternatives, this proposal continues to fund Caltrans’ highway expansion agenda,” said Deutsch-Gross. “Even in tight budget years, the climate crisis demands more than preserving the status quo.”

While the legislature’s proposal does not mention reauthorizing Cap-and-Trade, now Cap-and-Invest, it does allocate $500 million to CalFIRE from the Greenhouse Gas Reduction Fund, limiting GGRF’s ability to support affordable housing, transit, and environmental justice priorities.

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Transform works to ensure that people of all incomes thrive in a world safe from climate chaos. We envision vibrant neighborhoods, transformed by excellent, sustainable mobility options and affordable housing, where those historically impacted by racist disinvestment now have power and voice.