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Yesterday the California State Legislature passed AB 128, the 2021-22 State Budget Act as proposed by the Legislature, and in it several funding programs that would be accessible to COVID-19 impacted special districts. However, it is important to note the budget bill sent to Governor Gavin Newsom reflects the legislature’s priorities, with negotiations ongoing to reach agreement with the Administration. Special districts are encouraged to continue advocating for final approval of special district funding.

Following passage of the Legislative version of the State Budget, CSDA Chief Executive Officer Neil McCormick stated, “On behalf of California’s 2,000 independent special districts providing essential services, including fire protection, water, sanitation, parks, ports, healthcare, and much more, CSDA applauds the State Legislature’s approval of $100 million in COVID-19 relief funding for special districts, their 120,000 front-line workers, and the communities they serve. CSDA appreciates the thoughtful and considered work of ProTem Toni Atkins, Speaker Anthony Rendon, Budget Chairs Nancy Skinner and Phil Ting, and the more than 40 Legislators who signed a letter urging Governor Gavin Newsom to sign this necessary relief funding into law.”

Special districts and local leaders are encouraged to like and retweet CSDA’s post to Twitter applauding passage of the $100 million special district relief fund within the Legislative version of the State Budget, as well as to submit support letters via email, as available at csda.net/take-action/covid.

The State Legislature has a constitutional duty to pass a balanced budget by June 15 each year. This requirement is in effect regardless the status of negotiations with the Governor.  AB 128 will be followed by budget bill(s) jr, which are bills that amend the budget and can add to or subtract from various appropriations within the original budget bill. This subsequent legislation will reflect the results of negotiations currently underway with the Administration. “Budget trailer bills” will also follow passage of the budget in chief to amend statute as needed to implement fiscal provisions within the budget bill(s) and provide more details associated with program funding.

While the provisions within AB 128 remain subject to agreement by the Governor, the State Budget passed yesterday by lawmakers includes several proposals of significant impact to special districts:

Independent Special Districts

• $100 million in one-time General Fund fiscal relief for special districts able to demonstrate expenditure and revenue loss impacts related to COVID-19 response.

Utilities

• $1 billion in Coronavirus Fiscal Recovery Fund for water arrearage debt relief.
• Just under $1 billion in Coronavirus Fiscal Recovery Fund for the California Arrearage Payment Program (CAPP) to reduce delinquent electricity and natural gas utility bill balances for customers experiencing financial hardships related to the economic impacts of the COVID-19 pandemic.

Ports

• $250 million in Coronavirus Fiscal Recovery Fund for California ports impacted by the COVID-19 state of emergency, as proclaimed on March 4, 2020.

Transit

• Significant investments for priority local transit projects and electric vehicle infrastructure.

Libraries

• Significant investments in local library grant programs and library infrastructure.

Recreation and Parks

• $250 million from the General Fund for local parks grants.

Other Packages of Significance

• Climate resiliency package.
• Water and drought resiliency package.
• Wildfire prevention and forest resilience package.

While a legislative proposal for funding accessible to independent special districts is a step in the right direction, with negotiations between the Legislature and Governor ongoing it continues to be both helpful and important to voice support for the funding proposals for special districts to state representatives and to the Governor: both Legislative Leadership and the Administration need to hear from stakeholders it is vital they retain currently proposed funding for special districts in the final Budget Act.

Toward that end CSDA continues to advocate for the funding to remain in the 2021-22 state budget agreement:

• Late last week CSDA sent a letter to the Governor and Legislative Leadership urging them to include the $100 million proposed relief funding for special districts in the final budget act, as well as in support of the additional proposed pots of funding that could be accessible to special districts seeking relief for impacts.
• Friday, June 11, State Senator Melissa Hurtado sent an updated letter to the Governor that had the bi-camaral, bi-partisan backing of more than 40 legislators urging the Governor to approve the Legislature’s request of $100 million one-time General Fund relief funding for special districts who can demonstrate financial need due to the COVID 19 pandemic in the final 2021-22 State Budget.
• Yesterday, Congressman Salud Carbajal sent an updated coalition letter from nine California Congressional Delegation members to state leaders urging adoption of the $100 million fund for special districts' relief in the State Budget.

CSDA encourages special districts to continue to answer the Call to Action and send letters of support in to state leaders. More information can be found on the CSDA COVID-19 Take Action Page.