This is an excerpt from an article by Four Twenty Seven (427) Climate Solutions 427mt.com/2014/01/cap-and-trade-investment-plan-proposed-budget) entitled A Closer Look at the Cap & Trade Investment Plan in Governor Brown's proposed Budget:
"The Governor plans for $850 million dollars of revenues for the GHG Reduction Fund in 2014-2015, a conservative estimate in our view. Auctions so far have brought in $532 million, of which $500 million was loaned to the General Fund last year. We forecast additional auction revenues in 2014-2015, large increases compared to revenues in 2013-2014 due to the inclusion of fuels under the cap starting in 2015. The $850 million also includes the repayment of $100 million from the funds borrowed last year, with the rest to be reimbursed 'over the next few years'."
How the governor plans to come up with these funds is a major concern, since it does not appear that we will have the necessary revenue to do so and we don't even have a balanced budget at this point.
I read an opinion letter in the Fresno Bee which states that some Democrats, led by Henry T. Perea, D-Fresno, are attempting to delay including gas and diesel subject to the cap-and-trade auction because they know it will increase gas prices by approximately 15 cents per gallon on January 1, 2015. The letter goes on the say, among other things: "This will negatively impact businesses in California. Valley truckers are already investing nearly $1 billion a year on cleaner trucks."
In short, higher fuel prices will only increase the cost of goods and services, which will negatively impact all of us in Fresno and Madera counties.
Now the federal government wants to increase the federal gas tax an additional 15 cents to pay for road maintenance.
It sounds like we are facing a possible hefty gas hike from both the state and the federal governments in order to pay for programs that we have supposedly already paid taxes to fund.
Gary L. Murphy, Oakhurst