WA companies pay to emit greenhouse gases, where should that money go?

The state’s general fund budget is in trouble, as is its transportation budget. Inflation, higher than expected costs, lower than anticipated revenues, state services scheduled to expand. If you listen to KUOW, you’re probably aware of why the state is facing budget shortfalls. 

This next segment is about a bright spot in the state’s budget: the money generated from the cap and invest system. That’s part of the Climate Commitment Act which voters upheld in 2024. 

Here’s how it works: The state sets a limited amount of emissions allowed each year by major companies that’s the cap.

Companies that emit more than they’re supposed to have to buy an allowance in a state-run auction. The latest auction generated $394 million dollars. The money is supposed to go towards climate investments like air quality monitors, electric vehicle chargers, and public transportation projects. 

But Governor Ferguson recently proposed using more than half billion dollars of that money to fund another program: The Working Families Tax Credit. It’s a refund that gives money back to low-and-medium income state residents.   

Meanwhile, Republicans, perhaps seeing an opening with the governor’s proposal, want to use the money to offset utility costs for schools.

Environmental groups are already pushing back against the Governor’s proposal. 

The budget fight has come for this big pot of money and we’re going to hear two perspectives on this issue today. 

Guests:

Todd Myers, Vice President of Research at Washington Policy Center

Reuven Carlyle, Founder of Earth Finance, former state senator, and architect of the Climate Commitment Act

Relevant Links:

Seattle Times: A budget ‘rat hole’? Political fight over WA climate money intensifies

Washington State Standard: WA governor calls for tapping reserve fund and climate law cash to fill budget hole

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