YOUR DUES DOLLARS AT WORK

PROPOSED BUDGET WOULD CUT SIGNIFICANT CLIMATE INVESTMENTS IN FISCAL YEAR 2023-24

by CCA Vice President of Government Affairs Kirk Wilbur

On Jan. 19, Gov. Gavin Newsom released his proposed 2023-24 State Budget. The $297 billion proposed budget is responsive to what the Administration forecasts as a $22.5 billion budget deficit (lower than the Legislative Analyst’s Office’s estimate of $24 billion) – a stark contrast to the historic surpluses of the past two budget cycles. As with other recent budgets, the Governor’s proposal prioritizes early education and seeks to address the crises of homelessness and housing availability.

The Governor is not yet proposing to tap into the State’s roughly $23 billion in generalpurpose reserves to address the projected budget shortfall, and the Legislative Analyst’s Office has cautioned that the State should hold onto its available reserves in case of a recession. Of course, the Governor does not have the only word on whether to dip into State reserves, and the question of how to address the deficit will be subject to months of debate between the Legislature and Administration. Assembly Speaker Anthony Rendon (D-Lakewood) in January noted that “it’s early, but that’s what [the reserves are] there for. I’d rather dip into the rainy day fund than cut programs and services.”

Instead of dipping into reserves, the Governor has proposed that the state seek to “close the budget gap” through funding reductions, delays, shifts and “trigger reductions.” In terms of reductions, the proposed budget seeks to outright eliminate $5.7 billion in expenditures previously authorized in the 2021 and 2022 Budget Acts. $3.9 billion in funding commitments for various programs between

Fiscal Year 2021-22 and 2023-24 would be restored or reduced in the Governor’s 2024 Budget based on the “trigger” of whether there are sufficient funds for those programs in the State’s coffers next January. $7.4 billion in expenditures would be delayed over a multi-year period but not diminished and $4.3 billion in funding would be shifted from General Fund obligations to other state funding sources.

Of particular interest to cattle producers are likely the modifications to roughly $54 billion in multi-year climate resilience investments made in the 2021 and 2022 Budget Acts. While a significant portion of this funding was earmarked to promote zero-emissions vehicles, decarbonize the State’s transportation infrastructure and “to expedite the state’s transition to clean energy,” much of that $54 billion investment was allocated to climate priorities such as wildfire and forest resilience, drought response and water resilience and climate smart agriculture.

The Governor’s 2023-24 budget proposes to cut roughly $5.9 billion from the five-year climate investments allocated in the past two budget cycles. Of that total, about $3.1 billion would be placed in the trigger restoration fund and could be restored if the state’s fiscal outlook is significantly improved in January of 2024. Importantly, roughly $48 billion in the state’s recent climate investments will go untouched.

Fortunately, the Proposed Budget retains most of the outlays made over the past two budget cycles for wildfire and forest resilience. Of $2.8 billion allocated to wildfire and forest resilience over the past two years, the Governor has proposed retaining $2.7 billion, or about 97 percent. The most significant cut would be a $41 million reduction in the Climate Catalyst Revolving Loan Fund; other proposed cuts in this area include stewardship of state- owned lands ($10 million proposed cut) and state inspections of defensible space ($5 million cut).

The proposed budget cuts previous commitments for drought response and water resilience by two percent, retaining $8.6 billion of the roughly $8.7 billion committed over the prior two budget cycles. Most of those proposed cuts could be restored in the 2024 Budget if fiscal conditions improve. Proposed cuts include reducing previously-authorized funding levels for watershed resilience programs by $24 million (5 percent of total) and $40 million from water recycling programs (also 5 percent of total).

Finally, the Governor has proposed to cut $94.2 million in Climate Smart Agriculture Programs from allocations made in the 2021 and 2022 budget acts – a ten percent decline. Programs that would suffer funding reductions include the State Water Efficiency Enhancement Program (SWEEP) and the Healthy Soils Program, among others. The cuts will not uniformly impact climate-smart programs, however. For instance, the Small Agricultural Business Drought Relief Grant Program and the Department of Conservation’s Multi-Benefit Land Repurposing Program, among others, will retain the full funding allocated in the prior two budget cycles.

In light of a significant forecasted budget deficit and the Governor’s plan to cut multiyear expenditures authorized in prior budget acts, it is perhaps not surprising that there are not significant proposals for new investments tackling issues of greatest significance to California’s cattle producers. There is one outlier, however. The proposed budget dropped as California was in the midst of a series of nine atmospheric rivers which caused widespread damage and flooding throughout the state. In recognition that “California is experiencing large swings between drought and flood” and that “those swings are becoming more severe,” Newsom’s Budget proposes $385 million in additional water resilience investments in Fiscal Year 2023-24, including $40.6 million to strengthen Delta levees and $25 million for Central Valley flood protection.

Governor Newsom’s Proposed Budget is merely the opening salvo in a five-month budget cycle. The Assembly Budget Committee and Senate Budget and Fiscal Review Committee have already begun holding hearings overviewing the proposed budget, and over the coming months budget subcommittees in each chamber will begin delving into the details of the budget. In May the Governor will issue his “May Revise” of the budget based on an updated revenue forecasts and his negotiations with the Legislature. The Legislature has a Constitutional obligation to pass a budget act by June 15.

Over the coming months CCA will communicate our budget priorities to key legislators and the Newsom Administration, working with coalition partners where possible to leverage broad support to bolster specific budget outlays. CCA will continue to keep members apprised of crucial budget discussions via our various publications throughout the remainder of the 2023-24 budget cycle.

(tulathromycin injection)

Antibiotic Injectable Solution

100 mg of tulathromycin/mL

CAUTION: Federal (USA) law restricts this drug use by or on the order of a licensed veterinarian.

DESCRIPTION:

Tulieve® Injectable Solution is a ready-to-use sterile parenteral preparation containing tulathromycin, a semi-synthetic macrolide antibiotic of the subclass triamilide. Each mL of Tulieve contains 100 mg of tulathromycin, 500 mg propylene glycol, 19.2 mg citric acid and 5 mg monothioglycerol. Sodium hydroxide or hydrochloric acid may be added to adjust pH. Tulieve consists of an equilibrated mixture of two isomeric forms of tulathromycin in a 9:1 ratio.

The chemical names of the isomers are (2R,3S,4R,5R,8R,10R,11R,12S,13S, 14R)-13-[[2,6-dideoxy-3-C-methyl-3-Ο-methyl-4-C-[(propylamino) methyl]α-L-ribo-hexopyrano-syl]oxy]-2-ethyl-3,4,10-trihydroxy-3,5,8,10,12,14hexamethyl-11-[[3,4,6-trideoxy-3-(dimethylamino)-β-D-xylo-hexopyranosyl]oxy]-1-oxa-6-azacyclopentadecan-15-one and (2R,3R,6R,8R,9R,10S,11S, 12R)-11-[[2,6-dideoxy-3-C-methyl-3-Ο-methyl-4-C-[(propylamino)methyl]α-L-ribo-hexopyrano-syl]oxy]-2-[(1R,2R)-1,2-dihydroxy-1-methylbutyl]8-hydroxy-3,6,8,10,12-pentamethyl-9-[[3,4,6-trideoxy-3-(dimethylamino)β-D-xylo-hexopyranosyl]oxy]-1-oxa-4- azacyclotridecan-13-one, respectively.

INDICATIONS

Beef and Non-Lactating Dairy Cattle

BRD-Tulieve Injectable Solution is indicated for the treatment of bovine respiratory disease (BRD) associated with Mannheimia haemolytica, Pasteurella multocida, Histophilus somni and Mycoplasma bovis and for the control of respiratory disease in cattle at high risk of developing BRD associated with Mannheimia haemolytica, Pasteurella multocida, Histophilus somni and Mycoplasma bovis

IBK-Tulieve Injectable Solution is indicated for the treatment of infectious bovine keratoconjunctivitis (IBK) associated with Moraxella bovis

Foot Rot-Tulieve Injectable Solution is indicated for the treatment of bovine foot rot (interdigital necrobacillosis) associated with Fusobacterium necrophorum and Porphyromonas levii

Suckling Calves, Dairy Calves, and Veal Calves

BRD-Tulieve Injectable Solution is indicated for the treatment of BRD associated with M. haemolytica, P. multocida, H. somni, and M. bovis

Swine

Tulieve Injectable Solution is indicated for the treatment of swine respiratory disease (SRD) associated with Actinobacillus pleuropneumoniae, Pasteurella multocida, Bordetella bronchiseptica, Haemophilus parasuis, and Mycoplasma hyopneumoniae; and for the control of SRD associated with Actinobacillus pleuropneumoniae, Pasteurella multocida, and Mycoplasma hyopneumoniae in groups of pigs where SRD has been diagnosed.

DOSAGE AND ADMINISTRATION

Cattle

Inject subcutaneously as a single dose in the neck at a dosage of 2.5 mg/kg (1.1 mL/100 lb) bodyweight (BW). Do not inject more than 10 mL per injection site.

Swine

Inject intramuscularly as a single dose in the neck at a dosage of 2.5 mg/kg (0.25 mL/22 lb) BW. Do not inject more than 2.5 mL per injection site.

CONTRAINDICATIONS

The use of Tulieve Injectable Solution is contraindicated in animals previously found to be hypersensitive to the drug.

WARNINGS FOR USE IN ANIMALS ONLY. NOT FOR HUMAN USE. KEEP OUT OF REACH OF CHILDREN. NOT FOR USE IN CHICKENS OR TURKEYS.

RESIDUE WARNINGS

Cattle

Cattle intended for human consumption must not be slaughtered within 18 days from the last treatment. This drug is not approved for use in female dairy cattle 20 months of age or older, including dry dairy cows. Use in these cattle may cause drug residues in milk and/or in calves born to these cows.

Swine

Swine intended for human consumption must not be slaughtered within 5 days from the last treatment.

PRECAUTIONS

Cattle

The e ects of tulathromycin injection on bovine reproductive performance, pregnancy, and lactation have not been determined. Subcutaneous injection can cause a transient local tissue reaction that may result in trim loss of edible tissue at slaughter.

Swine

The e ects of tulathromycin injection on porcine reproductive performance, pregnancy, and lactation have not been determined. Intramuscular injection can cause a transient local tissue reaction that may result in trim loss of edible tissue at slaughter.

ADVERSE REACTIONS

Cattle

In one BRD eld study, two calves treated with tulathromycin injection at 2.5 mg/kg BW exhibited transient hypersalivation. One of these calves also exhibited transient dyspnea, which may have been related to pneumonia.

Swine

In one eld study, one out of 40 pigs treated with tulathromycin injection at 2.5 mg/kg BW exhibited mild salivation that resolved in less than four hours.

Approved by FDA under ANADA # 200-723

Tulieve® is a registered trademark of Norbrook Laboratories Limited

Made in the UK

Manufactured by:

Norbrook Laboratories Limited, Newry, BT35 6PU, Co. Down, Northern Ireland

To report suspected adverse drug events, for technical assistance or to obtain a copy of the Safety Data Sheet (SDS), contact Norbrook at 1-866-591-5777. For additional information about adverse drug experience reporting for animal drugs, contact FDA at 1-888-FDA-VETS or http://www.fda.gov/reportanimalae.

Revised Feb 2022

For additional Tulieve product information call: 1-866-591-5777 or go to www.Norbrook.com (landing page to be con rmed, may be www.Tulieve.com)