Today, State Legislative Leaders and Budget Chairs jointly released the Legislative Version of the 2021-22 State Budget, including a $100 million General Fund appropriation for the California Department of Finance to provide fiscal relief to special districts. The united budget proposal from both houses of the Legislature follows weeks of budget subcommittee hearings and the proposed special district relief fund is a clear recognition of advocacy efforts by CSDA and its growing coalition of more than 750 organizations and local leaders.
According to the June 1 Assembly Subcommittee Report (p. 124) and the Agenda for the Overview of the Senate Budget Plan (p. 89), the $100 million special district COVID-19 relief fund would go toward districts that, “can justify fiscal duress due to a revenue decline or increase in cost related to their role in response of the COVID-19 Pandemic.”
CSDA appreciates the State Legislature’s recognition of COVID-19 impacts on special districts and the communities they serve, including a letter signed by 46 State Legislators strongly urging the Governor’s Administration to extend access of COVID-19 relief funding to special districts.
Given additional State Budget proposals to address utility arrearages, ports and harbors, and transit agencies, the Legislature’s proposed $100 million special district COVID-19 relief fund addresses just over 20 percent of the remaining projected need.
As the June 15 deadline for the Legislature to pass the State Budget approaches, CSDA will continue working with the Governor’s Administration, Legislators, and other stakeholders to secure needed COVID-19 relief funding and other key budget priorities.
Both the State Senate Budget and Fiscal Review Committee and Assembly Budget Committee will convene June 2 upon adjournment of their respective floor sessions to discuss the Legislative Version of the 2021-22 State Budget.
The Legislative Version of the 2021-22 State Budget notably also includes the following elements:
Utilities and Energy
Approves the Governor’s May Revision proposal regarding the American Rescue Plan Act energy arrearages, providing approximately $1 billion in one-time assistance provided by the federal government under the American Rescue Plan Act of 2021 to cover low income utility payment arrearages.
Approves $1 billion of American Rescue Plan Act funds for water arrearages subject to a final agreement with the Senate, Assembly, and Governor.
Ports and Harbors
Approve $250 million in one-time federal Coronavirus State Fiscal Recovery Fund dollars. Adopt provisional language related to funding allocations.
Transportation
Provides $3 billion in funding for transportation infrastructure across the state, including for active transportation projects and projects identified for completion by 2028. Approves $400 million for state and local transportation adaptation grants. Adopts placeholder trailer bill language and budget bill language.
Provides $10 million for UC ITS to develop a three-year research and technical assistance program that addresses four strategic areas: 1) strategic actions to support public transit and shared mobility recovery and long-term resilience; 2) policies to accelerate the use of zero emission vehicles (powered by electricity and hydrogen); 3) integration of emerging transportation technologies and service models (e.g., mobility wallets, microtransit, shared micromobility, shared automated mobility) with California’s environmental, social, and economic policy priorities; and 4) policy trade-offs and implications for sustaining “high road” jobs, supporting economic growth, and advancing social and racial equity while reducing GHG emissions from the transportation sector.
Libraries
Provides $50 million one-time to support local library infrastructure, $35 million to support local projects to expand broadband access and upgrade equipment to access high speed connectivity, and $389 million to support library facilities, technology infrastructure upgrades and devices for loaning and lending.
Approves the Governor’s Budget proposal of $3 million one-time General Fund to support grants to local library jurisdictions to acquire bookmobiles and vans. Approves the May Revision proposal to provide $50 million one-time General Fund to provide grants for local library infrastructure improvements through an equity-focused matching infrastructure grant program. Approves the May Revision proposal to provide $6 million one-time General Fund to support the Broadband Connectivity initiative for public libraries, an initiative that supports library grants to leverage federal funds to connect rural and under-sourced public libraries, tribal libraries and cultural centers, and to upgrade local library equipment to support high speed connectivity. Approves the May Revision proposal to provide $35 million one-time to support local projects to expand broadband access for isolated and under-served communities through a collaborative partnership of local education agencies, regional and local libraries, and telehealth providers.
Local Parks
Approve $250 million one-time for capital outlay local park grants and legislative investments.
Mosquito and Vector Control
Rejects the tiered mil fee assessment trailer bill proposal.
Waste Management
Approves placeholder trailer bill language to revise the Environmental Fee rates and the hazardous waste fee rates and structure.
Broadband
The Legislature’s budget plan provides $7 billion ($2 billion American Rescue Plan Act and $5 billion General Fund) for broadband issues, with specific direction to be determined through additional Legislative Action.
HR & CalPERS
Approves amending Control Section 4.20 to reflect an administrative rate of .25 percent to mitigate the impact of changing rates in the out years as a result of updated projections.
Adopts placeholder trailer language that extends the sunset date for paid family leave wage replacement rate by one additional year.
Property Taxes
Includes $11 million to backfill property tax losses for the 2020 wildfires.
Climate-Related Budget Packages
The Legislature proposes several packages with details to be determined in a final agreement among the Senate, Assembly, and Governor. The spending levels are:
- Wildfire Prevention & Resilience: $1 billion
- Agriculture Budget Plan: $776 million
- Water and Drought Resilience: $3.7 billion
- Climate Resilience: $3.7 billion over three years
- Cap-and-Trade Spending Plan: $1.4 billion
- ZEV Package: $3.9 billion over three years, including $2.7 billion in 2021-22
- Advancing Clean Energy: $835 million
Both the Governor and the Senate proposed substantial investments in these categories to reduce greenhouse gas emissions, protect our environment, and ensure resiliency in the face of a changing climate. While there is broad agreement on many of the components of these packages, the Assembly would like to prioritize investments in wildfire prevention, clean drinking water, PFAS remediation, regional planning, and helping communities increase greenspace and respond to extreme heat. Conversations are ongoing with the specific program allocations and appropriateness of fund source for each.
$3.7 billion Climate Resilience Package includes the following categories of spending:
- Regional Climate Resilience (e.g., regional climate resilience projects).
- Urban Climate Resilience (e.g. urban greening, cooling/resilience centers, Transformative Climate Communities).
- Watershed Protection (e.g., multibenefit flood protection, urban streams and rivers).
- Fish and Wildlife Protection.
- Agriculture and Food Supply Resilience (e.g., Farmland Protection Program, research on GHG reduction of agriculture).
- Coastal Protection (e.g., wetlands restoration and sea-level rise projects).
- Approves $30 million one-time for sea level rise local assistance grant program with encumbrance by June 30, 2026.
$1 billion Wildfire Prevention and Resilience Package includes the following categories of spending:
- Resilient Wildlands (e.g., forest health and stewardship of state-owned lands).
- Wildfire Fuel Breaks (e.g., fire prevention grants and prescribed fire & hand crews).
- Community Hardening (e.g., defensible space inspectors).
- Science-Based Management (e.g., research and adaptive management).
- Forestry Sector Economic Stimulus (e.g., workforce and market development).
$3.5 billion for Water and Drought Package includes the following categories of spending:
- Immediate Community Assistance for Water and Drought Relief.
- Emergency Drought Water-Use Efficiency.
- Sustainable Groundwater Management.
- Resilient Water Infrastructure Projects.
- Recycled Water.
- Stormwater Management.
- Protecting Fish & Wildlife from Drought Impacts.
- Water Quality.
- Water Data and Forecast Improvements.
- Helping Ratepayers, Community Water Systems, Waste Water Treatment Works, and Public Utilities Recover from COVID-19 Economic Impacts.