Budgets are a reflection of values, and the expenditures proposed in the May Revise reflect longstanding issues of importance to Governor Gavin Newsom, as well as urgent attention to state priorities related to climate change, wildfire mitigation, and drinking water.
The Governor’s May Revise includes significant investments that many special districts will have access to for the benefit of their communities and strengthening of local infrastructure, such as once in a lifetime funding levels for tackling climate change, drought resiliency, and transportation systems.
Unfortunately, the revised budget proposal did not include requested COVID-19 relief funding for all special districts. This week’s Special Districts Legislative Days will serve as a rallying point for all special districts to support passage of critical relief funding within the Governor’s proposal, and to request the State Legislature improve upon the budget by addressing the unmet COVID-19 impacts of those special districts thus far left out, including those providing fire protection, parks, healthcare, mosquito abatement, libraries, resource conservation, veterans memorial, cemeteries, and other essential services.
In support of this unified effort on behalf of all special districts, CSDA members are strongly encouraged to email their legislators requesting COVID-19 relief funding for all special districts and attaching CSDA’s one-page budget request overview:
More About the May Revise
Much of the Governor’s climate bond from his January 2020 State Budget Proposal was reborn in one-time funding proposals in the May Revise; also included is proposed funding to accomplish many of the executive orders issued during the pandemic, such as Executive Order N-79-20 calling for Zero Emission Vehicles by 2035 and consistent with California’s Zero Emission Vehicle Market Development Strategy and Executive Order N-82-20 to conserve 30 percent of the state’s natural lands and coastal waters by 2030; investments that implement goals outlined in his Water Resilience Portfolio; and, additional funding to carry out recommendations in the state’s Forest Management Task Force's Wildfire and Forest Resilience Action Plan.
In addition to these substantial proposals, the Governor’s revised budget includes funding that may trickle down for parks and recreation in underserved communities, meal and afterschool programs for under-resourced library systems, community resiliency centers, and potentially some district hospitals – in these cases, the details matter, and CSDA will be closely monitoring forthcoming trailer bill language for methodologies regarding funding eligibility, distribution, and access. Here is what we know so far:
Included in the Budget Proposal. Notably, the Governor’s proposed funding includes the following investments:
- $2 billion for rate payer assistance – and specifically called out the funding as support for “special district utilities to help households pay for water and utility arrearages”
- $250 million for economic support to ports
- Nearly $3 billion available for priority transit projects
This reflects the many discussions CSDA has had with Department of Finance staff and Administration leadership on the substantial impacts to special district utilities due to non-payment of debt. CSDA has advocated persistently for solutions to the above district impacts – and all others – seeking funding relief from the Governor’s administration, Department of Finance staff, and State Legislature, and CSDA will continue this effort to request the State Legislature approve the proposed funding solutions for those special district impacts that were included within the May Revise.
Excluded in the Budget Proposal. However, the Governor’s proposed budget lacks meaningful relief funding to address COVID-19 fiscal impacts for many, if not most, of the state’s special districts:
- Recreation and park districts and open space districts
- Districts providing fire protection services and resource conservation
- Healthcare districts for direct COVID-19 services, programs, and expenditures
- Other local services, such as libraries, mosquito abatement, veterans memorial, cemeteries, and air pollution control
Total projected impacts reported for these remaining district services is under $500 million, and CSDA is urging the Legislature to do what the Governor did not propose and provide adequate and meaningful funding relief in this year’s budget for these essential local service providers.
When special districts are excluded from relief, essential frontline workers and community residents are excluded from relief and the sustained fiscal impacts translate into lost jobs, reduced services, and compounding economic consequences to local economies.
Call to Action Before June 15 Budget Vote
While a budget is a reflection of the State’s priorities, it must also be a reflection of the public’s priorities – and must be centered in responsibility and accountability. Now is the time to continue to push for relief, as much progress has been made to elevate the needs of special districts and the critical role they play in the state’s infrastructure system and as local service providers.
As a direct result of CSDA’s advocacy efforts – and the relentless efforts of independent special districts throughout the state – the nonpartisan Legislative Analyst’s Office (LAO) and Little Hoover Commission (LHC) have released reports highlighting the need for special district relief and the state’s authority to grant it, a growing coalition of over 700 organizations and local leaders have joined in asking for access to relief, 46 State Legislators have signed a letter to Governor Gavin Newsom supporting this request, as have Senators Dianne Feinstein and Alex Padilla and 15 members of the California Congressional Delegation.
As over 200 special district leaders unite during this week’s Special Districts Legislative Days, we thank you for all you have accomplished in local communities to adapt and respond to COVID-19 needs, and the essential functions you provide to the public. We also recognize that our work together in the State Capitol is not yet finished.
The deadline for the Legislature to approve the State Budget is June 15, leaving less than one month for special districts across California to take action.
For more information and tools on taking action to secure COVID-19 relief funding for special districts, visit www.csda.net/take-action/covid.
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