California's cap-and-trade auction revenues are declining, threatening funding for the bullet train and other programs. The state faces a budget gap as revenues drop.
- Revenues peaked at $8.1 billion in 2023-24 but are now declining. - New regulations may sharply reduce net revenues, leaving only enough for the bullet train and $1 billion for discretionary spending.
- Other programs like wildfire protection and housing may get nothing. - The revenue drop could worsen the state's budget deficit.