Tuesday October 6, 2026
LAO —
This post begins by providing an overview of total spending for the departments overseen by the California Natural Resources Agency (CNRA) and California Environmental Protection Agency (CalEPA). Next, we discuss certain cross-cutting issues that affect departments in both agencies, including spending from the Greenhouse Gas Reduction Fund (GGRF). We then discuss individual departments that had notable budget changes within each of the two agencies. We conclude with a summary of budget allocations from Proposition 4, the climate bond approved by voters in November 2024.
Overview
The 2026-27 budget package provides a total of $19.7 billion from various fund sources—the General Fund, a number of special funds, bond funds, and federal funds—for the departments overseen by CNRA and CalEPA. This amount represents a 28 percent decline compared to total 2025-26 estimated expenditure levels. This year-to-year decrease is primarily due to significant one-time funding—from the General Fund, GGRF, and Proposition 4—available for the departments within both agencies in 2025-26, including large amounts carried over from prior years. Figures 1 and 2 show the funding totals for the major departments within CNRA and CalEPA. These totals incorporate authorized spending from Proposition 4 and GGRF adopted through August 2026 budget actions.