State leaders have a fun problem -- how to spend $2.5 billion in energy efficiency funds over the next five years.

 

But the Legislative Analyst's Office is questioning the governor's proposals for the money.

 

Voters gave a big green thumbs up to Proposition 39 in November. The measure closed a corporate tax loophole to generate about $500 million a year for energy upgrades for public schools, community colleges and other buildings.

 

However, Governor Brown's budget proposes earmarking all the funds for schools.

 

Energy policy analyst Tiffany Roberts with the Legislative Analyst's Office says lawmakers need to do more analysis to make sure they're maximizing energy savings and job creation. "The legislature could certainly consider having this funding go to other types of buildings," she says,"such as public hospitals or even potentially prisons."

 

Legislators are set to hold hearings on the issue.