The Governor’s budget assumes $760 million in additional General Fund will be needed in 2017‑18 for response and recovery associated with the 2017 fires in Northern and Southern California, $388 million of which will be reimbursed by the federal government in 2018‑19. For 2018‑19, the Governor proposes a total of $35 million from the General Fund for recovery costs associated the fires in Northern California, such as related to rebuilding public infrastructure and backfilling local tax revenue losses. While we do not raise specific concerns about the administration’s funding requests, we recommend that the Legislature direct the administration to report at budget hearings on the proposed funding and submit formal proposals for any future budget-year funding requests. We also recommend that the Legislature consider its priorities for allocating assistance to local governments affected by disasters and longer-term strategies for reducing future wildfire risk, such as strategies to improve forest health.

Correction (3/12/18): When this post was originally published, Figure 1 displayed the wrong graph. The correct graph is now in place.