CSDA has submitted a formal letter in support of Governor Gavin Newsom’s budget trailer bill package relating to infrastructure as well as a letter requesting key actions related to the homelessness crisis facing our communities and impacting the services of special districts. Meanwhile, the State Legislature voted last week to approve their version of the State Budget as Legislative leaders continue to negotiate a final, compromise version with Governor Newsom.
Expedited Infrastructure
The infrastructure letter states, “Whether it’s public spaces like building neighborhood parks or critical infrastructure such as flood control channels that protect our neighborhoods, special districts have a great need to expedite infrastructure projects on behalf of residents. Current statutory limitations have led to expensive delays for many infrastructure projects.”
CSDA’s infrastructure letter of support focused on three of the Governor’s proposals:
1. Administrative Records Review
2. CEQA Judicial Streamlining
3. Progressive Design Build (PDB) for Caltrans and Department of Water Resources
Governor Newsom’s budget infrastructure package addresses several of CSDA’s strategic policy objectives related to public works, including:
- Encourage prudent planning for investment and maintenance of innovative long-term infrastructure.
- Support the contracting flexibility and fiscal tools and incentives needed to help special districts meet California’s changing demands.
- Promote the efficient, effective, and sustainable delivery of essential local services.
Homelessness Support
CSDA’s homelessness budget letter noted, “Whether it’s the public spaces owned and operated by special districts where families come together or critical infrastructure such as flood control channels that protect our neighborhoods, special districts are experiencing unprecedented financial, health, and safety impacts due to homelessness.”
CSDA put forward three proposals to help address the homelessness challenge:
1. CSAC “At Home” Plan with Requested Amendment
- CSDA supports the “At Home” plan proposed by the California State Association of Counties (CSAC), with one requested amendment to explicitly include “special district” in CSAC’s proposed Health and Safety Code Section 50220.9(b)(2)(D) on page 13. This simple inclusion of “special district” would promote the collaboration, communication, and coordination essential to our collective success.
2. Sufficient, Ongoing, and Flexible Funding
- An emphasis for such funding is vital to the resolution of homelessness impacts on public spaces, such as parks and libraries, as well as critical infrastructure, such as flood control, water, and electricity, that our communities depend upon. State funding should encourage intergovernmental collaboration to help bring solutions to this crisis and address homelessness impacts in all communities, regardless of which type of government delivers their essential services.
3. Clean California Local Grant Program Extension and Expansion
- CSDA requests the extension and expansion in eligibility and funding levels for the Clean California Local Grant Program administered by CalTrans. Special districts need access to this program or a similar program that would add the following eligible projects: prevent and correct degradation to flood control, stormwater management, or water quality; mitigate the risk of uncontrolled fires; and train and equip frontline workers.
Status of California’s State Budget Process
During last Thursday’s floor session, The State Senate and Assembly voted to approve their version of the State Budget, Senate Bill 101. The Chairs of both houses’ Budget Committees, Assembly Member Phil Ting and Senator Nancy Skinner, took the opportunity to deliver remarks highlighting the work and negotiations that led to that point. Legislative leaders and Governor Gavin Newsom will continue negotiating over the budget leading up to the July 1 start to the new fiscal year, by which time a final version must be signed into law.
The Legislature’s version of the State Budget took into account over 102 budget committee and subcommittee hearings, resulting in a spending plan of $311.7 billion. Out of this amount, $227 billion is sourced from the General Fund, while $30.7 billion is allocated to address the budget deficit through various solutions.
One of the primary objectives of the State Legislature’s version of the budget is to shield core programs from potential impacts from the budget deficit. In her remarks, Senator Skinner emphasized that the Legislature’s budget is designed to safeguard core programs from adverse impacts, and ensuring adequate funding for schools, while avoiding tax increases for the middle class. The budget reflects an increased commitment to public education compared to the previous year with $2.1 billion more allocated for K-12 education and community colleges. Furthermore, the budget includes $1 billion for temporary childcare rate increases and family fee reform, aiming to support the recovery of this sector which has yet to fully rebound from the effects of the pandemic. Notably, $1 billion has been earmarked for the Homelessness Housing Assistance and Prevention (HHAP) program.
Both the Senate and Assembly Budget Chairs noted that productive talks had been held with the Governor and his office over the previous weekend and, while the final budget may undergo some modifications, the final version of the State Budget is expected to closely resemble the Legislature’s version.
Republican Budget Vice-Chairs, Assembly Member Vince Fong, and Senator Roger Niello, expressed their dissenting views during floor remarks on the budget proposal put forward by their Democratic counterparts, including with respect to the viability of the budget.
As the budget proceedings continue, stakeholders await further deliberations and potential adjustments to shape the outcome. Below are some notable highlights from the legislative budget proposal.
- Safety Net Reserve: Rejects any proposed use of the Safety Net Reserve that deviates from its original intent.
- Climate and Energy: Safeguards investments in Coastal Resilience and Clean Energy.
- Allocates $64 million from the General Fund to the Ocean Protection Council (OPC) for the implementation of SB 1 (Atkins).
- Allocates $24.5 million from the General Fund to the California Natural Resources Agency (CNRA) for urban greening initiatives aimed at addressing extreme heat.
- Allocates $102 million from the General Fund to the State Coastal Conservancy (SCC), consolidating coastal resiliency and sea level rise funding into a single program to prioritize urgent projects that address the issues.
- Allocates $64 million from the General Fund to the Wildlife Conservation Board (WCB) for improving watersheds and enhancing water resiliency.
- Provides $24 million from the General Fund in 2023-24 to CDFW, the Department of Conservation, Department of Water Resources (DWR), and State Water Resources Control Board (SWRCB) for high priority stream gauges in accordance with SB 19 (Dodd), Chapter 361, Statutes of 2019.
- Allocates $14 million from the General Fund and grants $94 million in reimbursement authority to the Department of Parks and Recreation for 2023 Winter Storm Damage – Statewide Repairs and Adaptation project, with a total of $119 million from the General Fund phased over four years.
- Allocates $50 million from the General Fund to the Department of Water Resources (DWR) for initiatives concerning the Salton Sea.
- Allocates $14 million from the General Fund on an ongoing basis to DWR, supporting 40 positions for the implementation activities of the Sustainable Groundwater Management Act (SGMA), along with a one-time allocation of $900,000 from the General Fund for the development of a groundwater trading implementation plan.
- Allocates $119 million from the General fund in 2023-24 (and $35 million in 2024-25) to DWR for various flood projects in the Central Valley.
- Allocates $31.5 million from the General Fund to the State Water Resources Control Board (SWRCB) for the modernization project: Updating Water Rights Data for California (UPWARD).
- Allocates $422 million from the General Fund to the California Energy Commission (CEC) for Equitable Building Decarbonization.
- Allocates $20 million from the General Fund to the California Air Resources Board (CARB) for Equitable Building Decarbonization.
- Returns $937 million to the General Fund from the Department of Water Resources (DWR) designated for the Strategic Energy Reserve.
- Returns $250 million to the General Fund from the California Air Resources Board (CARB) earmarked for the Clean Vehicle Rebate Program (CVRP).
- Temporarily delays $350 million from the California Public Utilities Commission intended for the Self-Generation Incentive Program (SGIP).
- Provides $100 million from the General Fund for the Clean Energy Reliability Incentive Program (CERIP).
- Allocates $125 million from the Greenhouse Gas Reduction Fund to the California Air Resources Board (CARB) for the Clean Cars 4 All and Financing Assistance programs.
The State Budget passed out of the Assembly with a 61-14 vote and passed the Senate with a 32-8 vote.
Budget trailer bills, such as those containing the Governor’s infrastructure package, could become part of such an agreement or could follow further negotiations beyond the passage of the budget in chief. CSDA will continue to keep members updated on the status of these proposals.
Click to read CSDA’s infrastructure letter and homelessness letter, respectively.
Please contact CSDA Legislative Representative Heidi Hannaman at heidih@csda.net with any questions.
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