Jan 10 - Governor's Budget Proposes Modification to Curbside/Local Recycling Funding

The Governor’s budget, released yesterday, contains a proposal to address the $100 million structural deficit in the Bottle Bill program.

Among key elements:
• Eliminate $10.5 million in local government funding while making a modest increase in the existing competitive grant program to $5 million.
• Eliminate $15 million supplemental curbside funding.

• Three year phase out of Manufacturer processing fee subsidies — Currently, the program subsidizes glass and plastic manufacturers by offsetting a portion of the cost to recycle containers. Under this proposal, manufacturers will ultimately bear the full cost of recycling. A three year phase out will provide the industry with time to adjust to these reductions.

For those who are interested, CalRecycle will be hosting a workshop to discuss the Bottle Bill reform in the Governor’s proposal in more detail this coming Monday at 10AM.

Location: CalEPA Building, Byron Sher Room, 1001 I Street, Sacramento, CA 95814

This will be CAW’s message on Monday:
We are appreciative of the effort that CalRecycle and Governor have undertaken putting forward a concrete proposal to eliminate the Recycling Program’s structural deficit. We have no objection to many of the proposed tough, but necessary expenditure reductions. That said, we believe that several of the proposed reductions in Core Recycling Expenditures will undermine existing successful recycling efforts, and unnecessarily eliminate good, green jobs. At the same time we believe that there are other needed program reforms that have the potential to close the current funding gap by equal or greater levels. Over the next several weeks, we will be working with local governments, recyclers and other stakeholders on a set of modifications to the Governor’s Budget Proposal that would:

• Reduce the structural deficit at a level equal to or greater than the Governor’s proposal;
• Maintain and potentially increase support for Core Local Government and Curbside Recycling Programs;
• Modify Convenience Zone Recycling Incentives to support the most efficient Supermarket-based recycling centers;
• Close program loopholes to increase recycling, reduce consumer confusion, and create a level playing field.

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