Subcommittee grills Caltrans and CHP on funding swaps, fleet electrification and the Motor Vehicle Account; members warn GGRF cuts could hit wildfire and local-

Caltrans and the California Highway Patrol appeared before the Assembly Budget Subcommittee to present a mix of trailer-bill proposals and budget change requests that touch several funding streams senators and assemblymembers said need careful scrutiny.

Caltrans budget staff asked the committee to replace a previously planned federal funding source with a one-time $30 million transfer from the State Highway Account to continue the High Road Construction Careers workforce program after federal authorization for that use was not approved. "The administration's proposal is a reasonable approach for meeting the intent of SB 150 with state funds, albeit at a slightly smaller amount," Frank Jimenez of the LAO said.

Caltrans also requested a one-time $225 million for fleet replacement (about 1,120 vehicles) and charging infrastructure. The department said roughly 75% of new vehicles purchased would be full electric when market-available, with the remaining vehicles prioritized as plug-in hybrid, hybrid and, only as last recourse, fossil-fuel powered. Caltrans said it will prioritize EV and charging deployments in disadvantaged communities and coordinate with utilities for grid work.

The California Highway Patrol asked for operating augmentations and modest capital outlays to sustain baseline operations and critical radio and facility projects. CHP testimony highlighted inflationary pressures on gasoline and outfitting costs and noted recruitment efforts have reduced vacancy rates. The LAO recommended shifting small capital requests from the General Fund to the Motor Vehicle Account and cautioned the committee that a one-time request to cover ongoing operating pressures would return the problem to the committee in future years unless structural adjustments are made.

That concern about structural funding extended into a later conversation about the Greenhouse Gas Reduction Fund (GGRF). Members raised a scenario where proposed CARB rule changes would reduce GGRF receipts to roughly $2 billion per year, which the LAO said could leave Tier 3 programs — including wildfire prevention and some transit and affordable-housing initiatives — without the statutory funding now envisioned under SB 840. Several legislators urged the committee and administration to consider reallocations or alternative revenue sources if the CARB proposals proceed.

Next steps: Caltrans and CHP will provide follow-up details on disadvantaged-community prioritization, charging-port counts and potential partnerships with local jurisdictions and utilities. The LAO will supply updated MVA forecasts and members indicated they will scrutinize any proposal that uses one-time funds to cover ongoing operating costs.