January 15 | SIA Cabinet Report

By Tom Chorneau

The non-partisan Legislative Analyst raised strong objections Monday to the Brown administration’s plan to build into the state’s constitutional guarantee for schools $450 million in money earmarked for energy efficiency projects.

Those funds were generated by Proposition 39, adopted by voters in November to close a tax loophole that benefitted out-of-state companies doing business in California.

The measure, which the LAO estimates will increase state revenues by $440 million in the current year and $900 million in 2013-14, called on the Legislature to use half the money to improve energy efficiency in public buildings and for the other half to go into the state’s general fund.

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