Environmentalists say money from the sale of carbon pollution permits is supposed to go to programs that help further reduce emissions.
California Governor Jerry Brown and lawmakers say it will, just not this year.
“We’re very upset. We’re very disappointed, says Vien Truong with the Greenlining Institute. "This has been borrowed on the backs of people who can least afford it.”
Truong says there are projects ready to bring clean air to low-income communities.
But Democratic Senate budget chair Mark Leno says the money is needed for social service programs.
“In a perfect world we would not have had to take this money as a loan to be paid back next year," he says. "But it’s important to look at the overall architecture of the budget for consideration of this particular action.”
The cap-and-trade fund has just over $200-million in it now.
But lawmakers say they’re confident that future carbon auctions will bring in the money needed for the budget.