Contrary to legislative direction, the Governor has failed to identify a stable, long-term source of funding in the budget for implementation of "AB 32"--climate change legislation enacted in 2006. Instead, the Governor has relied on more borrowing from unrelated special funds to pay for a majority of the program. While not taking issue with the merits of the activities proposed for funding, we recommend that the Legislature defer action on a majority of the budget proposal until the administration submits a funding plan that is responsive to legislative direction.