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HomeMy WebLinkAboutBOARD STANDING COMMITTEES - 12182023 - Legislation Cte Agenda PktMonday, December 18, 2023 12:30 PM CONTRA COSTA COUNTY 1025 Escobar Street, Conference Center Rm 110, Martinez, CA 3361 Walnut Boulevard, Suite 140, Brentwood, CA 94513 AGENDA Legislation Committee Supervisor Ken Carlson, Chair Supervisor Diane Burgis, Vice Chair https://cccounty-us.zoom .us/j/87434558220 Call in: 1-888-278-0254 access code: 219464 1 Legislation Committee AGENDA December 18, 2023 The public may attend this meeting in person at 1025 Escobar Street, Conference Room 110, Martinez, CA or at 3361 Walnut Boulevard, Suite 140, Brentwood, CA. The public may also attend this meeting remotely via Zoom or call-in. Zoom: https://cccounty-us.zoom.us/j/87434558220. Call-in: 1-888-278-0254 access code 219464. Agenda Items: Items may be taken out of order based on the business of the day and preference of the Committee. 1.Introductions 2.Public comment on any item under the jurisdiction of the Committee and not on this agenda (speakers may be limited to two (2) minutes). 3.RECEIVE and APPROVE the Meeting Minutes for the November 13, 2023 meeting of the Legislation Committee, with any necessary corrections . 23-1242 Meeting Minutes Draft 11.13.23Attachments: 4.CONSIDER recommending to the Board of Supervisors a position of "Oppose" on AB 702 (Jackson) Local government financing: Juvenile Justice, as recommended by the County's Chief Probation Officer. 23-1243 Attachment A: AB 702 (Jackson) - JJCPA - Oppose templateAttachments: 5.CONSIDER the projects proposed by County staff for federal Community Project Funding for FY 2025 and RECOMMEND projects to the Board of Supervisors for support. 23-1244 Attachment A--Planning for Earmarks in FY 2025 Attachment B--Summary of Proposed Projects Attachments: Page 1 of 3 2 Legislation Committee AGENDA December 18, 2023 6.RECEIVE a report on the status of the County's federal FEMA (Federal Emergency Management Agency) COVID-19 claims for Public Assistance for its Non-Congregate Shelter expenses. 23-1245 Attachment A--SIGNED 4482DR CA Non-Congregate Sheltering_10132023 Attachment B- -Obligation_Interim_Final_Rule_Quick_Reference_Guide_2023 Attachments: 7.CONSIDER the proposed 2023-24 Legislative Platform amendments and RECOMMEND amendments to the Board of Supervisors, as needed. 23-1246 Attachment A--2023-24 Adopted State Platform, As amended 07.18.23 Attachment B--2023-24 Adopted Federal Platform, as amended 07.18.23 Attachments: 8.RECEIVE a report on the FY 24-25 State Budget and provide direction to staff and the County's state advocates, as needed. 23-1247 Attachment A--LAO 2024-25-Fiscal-Outlook-120723Attachments: 9.The next meeting is currently unscheduled. 10.Adjourn Page 2 of 3 3 Legislation Committee AGENDA December 18, 2023 General Information This meeting provides reasonable accommodations for persons with disabilities planning to attend a the meetings. Contact the staff person listed below at least 72 hours before the meeting. Any disclosable public records related to an open session item on a regular meeting agenda and distributed by the County to a majority of members of the Committee less than 96 hours prior to that meeting are available for public inspection at 1025 Escobar St., 4th Floor, Martinez, during normal business hours. Staff reports related to items on the agenda are also accessible on line at www.co.contra-costa.ca.us. HOW TO PROVIDE PUBLIC COMMENT: Persons who wish to address the Committee during public comment on matters within the jurisdiction of the Committee that are not on the agenda, or who wish to comment with respect to an item on the agenda, may comment in person, via Zoom, or via call-in. Those participating in person should offer comments when invited by the Committee Chair. Those participating via Zoom should indicate they wish to speak by using the “raise your hand” feature in the Zoom app. Those calling in should indicate they wish to speak by pushing *9 on their phones. Public comments generally will be limited to two (2) minutes per speaker. In the interest of facilitating the business of the Board Committee, the total amount of time that a member of the public may use in addressing the Board Committee on all agenda items is 10 minutes. Your patience is appreciated. Public comments may also be submitted to Committee staff before the meeting by email or by voicemail. Comments submitted by email or voicemail will be included in the record of the meeting but will not be read or played aloud during the meeting. Committee staff is: Lara DeLaney Senior Deputy County Administrator (925) 655-2057 lara.delaney@cao.cccounty.us Page 3 of 3 4 CONTRA COSTA COUNTY Staff Report 1025 ESCOBAR STREET MARTINEZ, CA 94553 File #:23-1242 Agenda Date:12/18/2023 Agenda #:3. LEGISLATION COMMITTEE Meeting Date: December 18, 2023 Subject: Meeting Minutes for Legislation Committee Meeting of 11/13/23 Submitted For: Legislation Committee Department: County Administration Referral No: 2023-08 Referral Name: Meeting Minutes Presenter: L. DeLaney Contact: (925) 655-2057 Referral History: County Ordinance requires that each County body keep a record of its meetings. Though the record need not be verbatim, it must accurately reflect the agenda and the discussions made in the meetings. Referral Update: Attached for the Committee’s consideration is the draft Meeting Minutes for the Committee’s November 13, 2023 meeting. Recommendation(s)/Next Step(s): Staff recommends APPROVAL of the Meeting Minutes for the November 13, 2023 meeting of the Legislation Committee. Fiscal Impact (if any): None. CONTRA COSTA COUNTY Printed on 12/14/2023Page 1 of 1 powered by Legistar™5 Meeting Minutes - Draft CONTRA COSTA COUNTY Legislation Committee Supervisor Ken Carlson, Chair Supervisor Diane Burgis, Vice Chair https://cccounty-us.zoom.us/j/87434558220 Call in: 1-888-278-0254 access code: 219464 1:00 PM 1025 Escobar Street, Conference Center Rm 110, Martinez, CA | 3361 Walnut Boulevard, Suite 140, Brentwood, CA | https://cccounty-us.zoom.us/j/87434558220 | Call in: 1-888-278-0254 access code: 219464 Monday, November 13, 2023 1 Introductions Chair Carlson convened the meeting at 1:04 p.m. Vice Chair Burgis joined the meeting from her office in Brentwood. Also in attendance were: Lara DeLaney, staff to Committee Geoff Neill, state lobbyist Peter Myers, Office of Supervisor Burgis Paul Schlesinger, federal lobbyist Simon OConnell, District Attorney's Office Jennifer Quallick, Office of Supervisor Andersen Timothy Ewell, Chief Assistant County Administrator Alana Mathews, District Attorney's Office Hailey Solares, Food Bank CCS District IV Supervisor Ken Carlson and District III Supervisor Diane Burgis Present: 2 Public comment on any item under the jurisdiction of the Committee and not on this agenda (speakers may be limited to two (2) minutes). No public comment was received. Page 1 of 3 6 Legislation Committee Meeting Minutes - Draft November 13, 2023 3 RECEIVE and APPROVE the Record of Action for the September 11, 2023 meeting of the Legislation Committee, with any necessary corrections . 23-850 Attachments:Draft Record of Action 09.11.23 The Record of Action was approved as presented. This Consent Item was approved. 4 RECEIVE a report on federal matters of interest to the County and PROVIDE direction to staff and the County's federal lobbyists, as needed . 23-851 Attachments:The TRP Tip Sheet 11.08.23 The County's federal lobbyist, Paul Schlesinger, provided an update to the staff report, describing the Continuing Resolution that the Congress was considering . The Speaker of the House had a "two step" continuing resolution proposal that would provide funding for Agriculture, Military Construction-VA, and Energy-Water Development through January 19, 2024 with the rest of the federal budget funded through February 2, 2024. The deadline to pass a bill was November 17, 2024, so there was pressure from a looming shutdown. Mr. Schlesinger also discussed the impacts on the County's federal earmark projects, noting that the appropriations bills would be required to pass--not just a continuing resolution. Chief Assistant County Administrator Tim Ewell provided the Committee an update of the FEMA claim issue related to the Non-Congregate Shelter costs incurred during the COVID-19 pandemic. He noted that there were on-going and regular meetings being held with CalOES regarding this issue, and that the County's claims assistance from Ernst & Young would include an updated financial estimate of the impact of the proposed policy change promulgated by FEMA Region 9. The Committee inquired about the anticipated timing of the payment of the County claims and how those payments may be affected by the ARPA deadlines for obligating and spending the money. No public comment was offered. This Consent Item was received. 5 ACCEPT the 2023 Legislative Year in Review and 2024 Preview from the County's state lobbyists and provide direction and/or input to staff and the lobbyists. 23-852 Attachments:Attachment A: 2023 Year-End Report and 2024 Preview The County's state lobbyist, Geoff Neill, was present in-person at the meeting and provided a recap of the written report. He covered the 2023 bills of interest to the County, including the County's sponsored bills, and the kinds of bills the Legislature would likely be engaged with in 2024, including Artificial Intelligence (AI), fire insurance, and bonds. The County's legislative priorities, as articulated in the adopted State Legislative Platform, would be reviewed in more detail at the Committee's December meeting . Vice Chair Burgis indicated a particular interest in legislative or budgetary solutions to the fire insurance problems facing many homeowners . No public comment was received. This Consent Item was accepted. Page 2 of 3 7 Legislation Committee Meeting Minutes - Draft November 13, 2023 6 The next meeting date is currently scheduled for December 18, 2023 at 12:30 p.m. (Note new date and time) 7 Adjourn The meeting was adjourned at 1:59 p.m. Page 3 of 3 8 CONTRA COSTA COUNTY Staff Report 1025 ESCOBAR STREET MARTINEZ, CA 94553 File #:23-1243 Agenda Date:12/18/2023 Agenda #:4. LEGISLATION COMMITTEE Meeting Date: December 18, 2023 Subject: AB 702 (Jackson) Local government financing: Juvenile Justice Submitted For: Legislation Committee Department: County Administration Referral No: Referral Name: AB 702 (Jackson) Presenter: Esa Ehmen-Krause Contact: Referral History: The Legislation Committee received updates on AB 702 (Jackson) in 2023 but made no recommendation to the Board of Supervisors regarding the bill. Chief Probation Officer Esa Ehmen-Krause has requested a position of “Oppose” on AB 702 and will be in attendance at the meeting to discuss the bill. Referral Update: AB 702 <https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240AB702> (Jackson) - Bill to Redirect JJCPA Resources Held for Further Deliberation Until 2024. The bill is scheduled for hearing on January 9, 2024. AB 702, by Assembly Member Corey Jackson, proposes to redirect Juvenile Justice Crime Prevention Act (JJCPA) funds, revise the composition of local Juvenile Justice Coordinating Councils (JJCC), and recast various elements of required multiagency juvenile justice plans. This measure largely mirrors previous legislative efforts - AB 1007 (Jones-Sawyer, 2020) and SB 943 (Bradford, 2021). AB 702 was scheduled for hearing in the Assembly Public Safety Committee on April 25, 2023; the author decided to pull the measure from the hearing and designate it as a two-year bill. UCC, RCRC, and CPOC (Chief Probation Officers of California) and CSAC had weighed in with joint opposition to this measure, primarily because of provisions that would require redirection of 95 percent of JJCPA funds to community-based organizations or non-law enforcement public entities. These changes would have considerably destabilized core probation support of local juvenile justice programs and services at the local level. JJCPA funding is in many jurisdictions dedicated to staffing and personnel costs that make up the backbone of our juvenile probation departments. These expenditures have been and continue to be wholly eligible and lawful under JJCPA. The county coalition raised as part of its opposition advocacy that the proposed redirection in AB 702 appears to ignore constitutional protections enacted under Proposition 30 (2012) that ensure resource certainty and CONTRA COSTA COUNTY Printed on 12/14/2023Page 1 of 2 powered by Legistar™9 File #:23-1243 Agenda Date:12/18/2023 Agenda #:4. stability for all programs realigned in 2011, including JJCPA. The proposal also is especially troubling given that counties are (1) working diligently toward full implementation of SB 823 (2020), which shifted responsibility for the care and custody of all system-involved youth to county responsibility and (2) supporting the transition of and subsequent care for several hundred young people who will remain in the jurisdiction of the Department of Juvenile Justice (DJJ) once all state facilities close on June 30, 2023. The template for a letter of opposition is Attachment A. Recommendation(s)/Next Step(s): CONSIDER recommending to the Board of Supervisors a position of “Oppose” on AB 702 (Jackson), as recommended by the Chief Probation Officer. There is no specific policy in the Board’s adopted State Legislative Platform relating to this bill. Fiscal Impact (if any): Redirection of 95% of JJCPA funding away from law enforcement agencies. CONTRA COSTA COUNTY Printed on 12/14/2023Page 2 of 2 powered by Legistar™10 December 4, 2023 The Honorable Corey Jackson Member of the Assembly 1021 O Street, Suite 6120 Sacramento CA 95814 RE: AB 702 (Jackson) – Local government financing: juvenile justice - OPPOSE Dear Assembly Member Jackson: On behalf of the County of ________, I write to express our respectful opposition to AB 702, your measure that would make fundamental changes to the Juvenile Justice Crime Prevention Act (JJCPA). These changes would be detrimental to probation departments’ ability to coordinate the delivery of services and supports to youth in our communities, resulting in system fragmentation and diminished outcome improvements for and advancement of young people with whom we engage on a daily basis. AB 702 proposes to enact three major changes to the funding and coordination of local juvenile justice system activities. It would redirect Juvenile Justice Crime Prevention Act (JJCPA) funds, change the designated chair and overall composition of local Juvenile Justice Coordinating Councils (JJCC), and recast various elements of required multiagency juvenile justice plans. This measure largely mirrors previous legislative efforts – AB 1007 (Jones-Sawyer, 2020) and SB 493 (Bradford, 2021). JJCPA funding is vital to counties’ delivery of a continuum of robust, trauma-informed, and culturally responsive services that support youth at various points along the juvenile justice system – from the earliest stages of vulnerability to system involvement. In many instances, JJCPA funds are dedicated to staffing and personnel costs that serve as the foundation of our juvenile probation departments. These resources support the full array of local responsibilities for system-involved youth, up to and including counties’ diligent and ongoing implementation of SB 823 (2020) that shifted care, treatment, and custody of youth and young adults who previously were eligible for placement at one of the state’s Division of Juvenile Justice (DJJ) facilities. Additionally, we would reiterate the constitutional concerns associated with the requirement to redirect JJCPA resources, given that this funding resides within the 2011 fiscal structure that is constitutionally protected under the provisions of Proposition 30 (2012). As for the changes to the JJCC, under current law, the chief probation officer in each county serves as chair, a model that recognizes the important role of probation as a connector of services and community organizations in service to the youth in need of treatment and support. The balance of committee members brings a diverse set of experiences and perspectives to the important work of JJCC who work together to coordinate and plan for the safety and rehabilitation of youth locally. By removing the probation chief as the chair Attachment A 11 of the JJCC, as proposed in AB 702, counties generally and probation more specifically would hold the responsibility and liability for serving system-involved youth without the authority to provide leadership, guidance, and coordination of local activities. [Include here examples of where locally CBO partnerships or other multi-agency partnerships exist and the value of those partnerships.] [If appropriate >>>] In smaller counties, including ________, probation agencies operate where there are no or very limited community-based organizations, and probation staff are tasked with providing and facilitating treatment programs on behalf of the courts and for the benefit of youth. In addition, many counties experience challenges in seating a full JJCC, particularly in recruiting community members and formerly justice-involved individuals to serve, and this legislation would create considerable obstacles rather than opportunities due to its specificity regarding JJCC composition. For these reasons, ______ County believes that the approach in AB 702 would be detrimental to our collective efforts of building and sustaining a responsive and locally tailored set of services to address the needs of young people in our community. We therefore must respectfully oppose AB 702. Thank you for considering our position. Sincerely, NAME TITLE cc: Honorable Members and Counsel, Assembly Public Safety Committee Attachment A 12 CONTRA COSTA COUNTY Staff Report 1025 ESCOBAR STREET MARTINEZ, CA 94553 File #:23-1244 Agenda Date:12/18/2023 Agenda #:5. LEGISLATION COMMITTEE Meeting Date: December 18, 2023 Subject:Federal FY 2025 Community Project Funding Requests Submitted For: Legislation Committee Department: County Administration Referral No: Referral Name: Federal FY 2025 Earmarks Presenter: L. DeLaney and Paul Schlesinger Contact: (925) 655-2057 Referral History: After many years of Congress’ discontinued practice of allowing “earmarks” in the federal budget, the process of appropriating funding to specific “Community Project Funding’ requests made by Congressional members returned in 2021 for federal FY 2022. Consequently, the County has been submitting projects authorized by the Board of Supervisors to our federal delegation for the past three years for their consideration and nomination to their respective Appropriations committees. The Legislation Committee provides recommendations to the Board of Supervisors on federal “Community Project Funding” projects for submittal to the County’s federal delegation. Referral Update: Although the fate of the County’s FY 2024 “Community Project Funding” requests is still unknown, and dependent on the enactment of the federal budget which is presently operating under a Continuing Resolution, the County’s federal lobbyists have advised us to commence preparations for the FY 2025 earmark process. (See Attachment A) As a reminder, the following are the County projects currently included in FY 2024 appropriations bills: •Harmful Algal Blooms Demo Program - $5 million (Rep. DeSaulnier) •Knightsen Wetland Restoration Project - $150K (Rep. DeSaulnier) •Sacramento-San Joaquin Delta - $150,000 (Sen. Feinstein/Padilla) •Concord Homeless Shelter Roofing Project - $1.05M (Rep. DeSaulnier) •San Pablo Ave. Complete St./Bay Trail Gap Closure - $1M (Rep. Garamendi) •Underserved Survivors Support and Safety Program- $963K (Rep. Garamendi) The types of projects that can be submitted for consideration must fall within the guidelines promulgated by the Appropriations Committee. Until we receive the FY 2025 guidance, the FY 2024 guidance and input from our CONTRA COSTA COUNTY Printed on 12/14/2023Page 1 of 2 powered by Legistar™13 File #:23-1244 Agenda Date:12/18/2023 Agenda #:5. lobbyists and congressional offices will help to inform the process. There are several factors that the congressional members consider when selecting projects, which include, among others: the project need/positive impact on the community, the number of applicants/projects received, the level of demonstrable community support for the project, cost sharing requirements of projects, requested funding amount, project readiness, and regional diversity. The projects that have been proposed for County submittal for FY 2025 include the projects identified in Attachment B. In addition, the County has been requested to support a potential federal earmark project for the City of Oakley’s proposed Library project. Recommendation(s)/Next Step(s): CONSIDER the projects proposed for federal “Community Project Funding” and RECOMMEND projects to the Board of Supervisors for submittal to the County’s federal delegation. Fiscal Impact (if any): If project requests are advanced by the County’s congressional representatives and included in federal Appropriations bills that are enacted, the County will receive federal funding for the projects. CONTRA COSTA COUNTY Printed on 12/14/2023Page 2 of 2 powered by Legistar™14 100 M Street SE, Suite 750 | Washington D.C. 20003 | (202) 688-0225 | inquiry@thornrun.com PLANNING FOR FY 2025 COMMUNITY FUNDED PROJECTS (AKA EARMARKS) EXECUTIVE SUMMARY Anticipating that many members of the House and Senate will once again solicit Community Funded Project requests (also known as earmarks) for the Fiscal Year (FY) 2025 appropriations process beginning early next year, now is a good time to begin planning for what project(s) you may want to request. While we do not know exactly what the process will look like, how many projects Members may be able to request on behalf of constituents, or when deadlines may occur, it is prudent to begin brainstorming now. Note that the President’s budget is expected to be released in February 2024, which is typically the kick-off to the discussion of funding the government for the coming fiscal year. Also, FY 2024 funding has yet to be resolved by Congress, including any earmarks that may be in those draft House or Senate bills. Even with those caveats, requests to participating members of Congress and Senators may still be due as early as February or as late as April. Below is information the House Appropriations Committee provided this year to guide requests. Until we have new information, this is the best guidance to help think of ideas for FY 2025. We can also pull projects that were funded in the draft FY 2024 bills if you would like additional examples or ideas. INFORMATION NEEDED FOR REQUESTS Like the last few years, all requests will require us to fill out forms with your assistance with information. Beyond that, we will need letters of support at a minimum, but the Committee in the past suggested these other types of community support identifiers may be helpful: •Press articles highlighting the need for the requested Community Project Funding; •Support from newspaper editorial boards; •Letters from regional elected officials; •Projects listed on State intended use plans, community development plans, or other publicly available planning documents; or •Resolutions passed by city councils or boards. Memorandum October 20, 2023 Attachment A 15 Page 2 TYPES OF PROJECT/PROGRAM REQUESTS THAT CAN BE MADE VIA APPROPRIATIONS SUBCOMMITTEES Agriculture, Rural Development, Food and Drug Administration, and Related Agencies • Community Facility Grants o Purchase, construct, or improve essential community facilities, to purchase equipment, and pay other related project expenses. Essential community facilities include, but are not limited to, healthcare facilities, public facilities, public safety measures, educational services, or other community support services. Examples of eligible projects include medical or dental clinics, towns halls, courthouses, childcare centers, police or fire departments, public works vehicles, or distance learning equipment. Any project in this category must serve a rural area with strict definitions of “rural.” o Sample projects: ▪ WI Ambulance Services – $151,000 ▪ ME Food Bank Expansion – $388,888 ▪ MN Child Care Facility – $418,000 ▪ MI Hospital Redevelopment – $750,000 ▪ GA Volunteer Fire Department – $1.4 million • Rural Utilities Service, ReConnect Grants o Facilitate broadband deployment in rural areas • Agricultural Research Service (ARS), Buildings and Facilities o To improve ARS facilities in communities nationwide ➢ Additional information from FY 2024 related to requests made under this bill can be found here. Commerce, Justice, Science, and Related Agencies • Byrne Justice Assistance Grants o These grants typically assist law enforcement efforts to prevent crime, improve the criminal justice system, provide victims’ services, and other related activities. The Committee encourages community project funding designed to help improve police- community relations. o Sample projects: ▪ CO Crisis Intervention Response Initiative – $255,000 ▪ OH Community Policing Initiative – $400,000 ▪ MN Emergency Crisis Center Support – $300,000 ▪ CA First Responder Enhanced Crisis Intervention Training – $350,000 ▪ CA City Public Safety Training – $1.2 million • COPS Technology and Equipment o Sample projects: ▪ OR Public Safety Communications – $606,000 ▪ MN Public Safety Equipment Upgrade – $305,000 ▪ NV Public Safety Interoperability Upgrade – $376,000 Attachment A 16 Page 3 ▪ OH Police Department Technology and Equipment Upgrades – $500,000 ▪ NH Radio Communications Infrastructure Upgrades – $900,000 • National Oceanic and Atmospheric Administration--Operations, Research, and Facilities o For research, demonstration, or education projects performed by external partners or for prioritizing NOAA internal funds for geographically specific projects. o Sample projects: ▪ OR Fish Passage Restoration – $2.5 million ▪ CA Ocean Ecosystem Restoration Project – $2 million ▪ ME Climate Center Project – $650,000 ▪ NY Integrated Modeling of Compound Flood Risks Initiative – $150,000 ▪ OR Dam Channel Study – $585,000 ➢ Additional information from 2024 related to requests made under this bill can be found here. Energy and Water Development, and Related Agencies • Corps of Engineers – authorized projects only o Investigations o Construction o Operation and Maintenance • Bureau of Reclamation (for 17 western states only) o Water and Related Resources o Sample projects: ▪ CA River Basin Floodplain Reactivation – $5 million ▪ WA Irrigation Project – $995,000 ▪ CA Fish Screen Program – $3.9 million ▪ CA Creek Appraisal Study – $500,000 ▪ WA Groundwater Recharge Project – $2 million ➢ Additional information from 2024 related to requests made under this bill can be found here. Financial Services and General Government • Small Business Administration, Small Business Initiatives o This includes entrepreneur training, workforce development, counseling, research, and construction or acquisition of facilities. o Sample projects: ▪ PA Innovation Center – $350,000 ▪ CA Enhanced Workforce Training for Economic Recovery – $250,000 ▪ OR Economy Incubator – $1 million ▪ IL Workforce Training Initiative – $600,000 ▪ OR Small Business Support for Black and Disadvantaged Business Owners – $750,000 ➢ Additional information from 2024 related to requests made under this bill can be found here. Attachment A 17 Page 4 Homeland Security • Pre-Disaster Mitigation o Projects that meet the criteria for the BRIC program; project proposals must be accompanied by a letter from the supporting state agency. o Sample projects: ▪ OH Flood Mitigation Project – $1 million ▪ NC BRIC – $1.7 million ▪ MD Dam Decommissioning and Stream Restoration – $908,000 ▪ VT Stream Restoration and Resilience – $2.6 million (statewide) ▪ NJ Hazard Mitigation Improvements – $300,000 • Emergency Operations Centers o Project proposals must be accompanied by a letter from the supporting state agency. o Sample projects: ▪ CA Emergency Operations Center – $1 million ▪ CA Emergency Operations Center Power Supply – $700,000 ▪ OR Emergency Operations Center – $2 million ▪ WV Emergency Operations Center Facility Project – $955,000 ▪ NY County Emergency Communications Radio System Replacement – $2 million ➢ Additional information from 2024 related to requests made under this bill can be found here. Interior, Environment, and Related Agencies • Land acquisition through the Land and Water Conservation Fund o Must be for the purpose of land and habitat conservation and the encouragement of outdoor recreation o Sample projects: ▪ NM National Monument – $3 million ▪ GA National Forest – $2.7 million ▪ WV National Wildlife Refuge – $5 million ▪ VT National Wildlife Refuge acquisitions – $8.5 million ▪ MO National Fish & Wildlife Refuge – $1 million • EPA: State and Tribal Assistance Grants o Local wastewater and drinking water infrastructure projects o The Committee will look favorably upon requests for projects that are listed on a state’s most recent Clean Water/Drinking Water State Revolving Fund Intended Use Plan. o Sample projects: ▪ CA Groundwater Treatment Project – $2.5 million ▪ FL Septic to Sewer Conversion Project – $3.2 million ▪ MI Sanitary Sewer Project – $1 million ▪ TX Ground Storage Tank Project – $3.5 million ➢ Additional information from 2024 related to requests made under this bill can be found here. Attachment A 18 Page 5 Labor, Health, and Human Services, and Related Agencies – REQUESTS ONLY AVAILABLE IN THE SENATE • Department of Labor—Employment and Training Administration—Training and Employment Services o Workforce Innovation and Opportunity Act demonstration programs o Sample projects: ▪ CA Workforce Development Services – $500,000 ▪ CA Job Training Program – $1.5 million ▪ DE Offshore Wind Technician Training Program – $1.6 million ▪ IL Emergency Medical Technician Apprenticeship Program – $315,000 • Department of Health and Human Services—Health Resources and Services Administration—Program Management o Health Facilities Construction and Equipment o Health Professions Education and Workforce Development o Rural Health Outreach & Research o Telehealth and Health IT o Sample projects: ▪ CA County Facilities and Equipment – $1 million ▪ MN Health Care System for Facilities and Equipment – $4.6 million ▪ PA University Health System, for Facilities and Equipment – $400,000 ▪ OK Hospital Equipment – $720,000 • Department of Health and Human Services—Substance Abuse and Mental Health Services Administration—Health Surveillance and Program Support o Mental health, substance abuse treatment, substance abuse prevention programs o Sample projects: ▪ CA Mobile Crisis Response Program – $500,000 ▪ MI Suicide Prevention – $811,000 ▪ NV Higher Education Mental Health Services and Training – $2.6 million ▪ DE Nonprofit Workforce Development Program for Mental Health Counselors – $3.5 million • Department of Education—Innovation and Improvement o Instructional services, afterschool centers, curricula development, teacher training, acquisition of books and computers, arts education, social and emotional learning activities, full-service community schools, and early childhood education o Sample projects: ▪ CA Program Development, Including Equipment and Supplies – $340,000 ▪ MI Education Pilot Program, Including Equipment – $1 million ▪ NM Artificial Intelligence Educational Pipeline Initiative from Elementary And Secondary Education through Postsecondary Education – $750,000 ▪ MI Professional Development Curricula for Educators – $2 million • Department of Education—Higher Education o Improving access to, or the quality of, postsecondary education, but not construction Attachment A 19 Page 6 ▪ Hire and train faculty, establish and improve degree programs, improve teacher preparation programs, develop and improve curricula, upgrade technology and telecommunications, acquire science laboratory equipment, provide student support, implement university partnerships with school districts, and establish research and training centers o Sample projects: ▪ CA Equity Innovation Hub, Which May Include Professional Development – $1 Million ▪ MI Community College Health Care Apprenticeship Programs – $2.6 million ▪ CA Cybersecurity Programs – $500,000 ▪ ME Community College Training Program, Including Technology and Equipment – $988,000 ➢ The House will not accept LHHS project requests; however, the Senate will. Military Construction, Veterans Affairs, and Related Agencies Requests can be made for construction projects on military bases. ➢ Additional information from 2024 related to requests made under this bill can be found here. Transportation Housing, and Urban Development, and Related Agencies • DOT - Local Transportation Priorities o Highway and transit capital projects eligible under title 23 and title 49 of the United States Code. Eligible projects are described under Section133(b) of title 23, United States Code. o Sample projects: ▪ CA State Route Improvement Project – $3 million ▪ FL Highway Corridor Improvements – $600,000 ▪ MI Reconstruction Project – $1.4 million ▪ TX Road Expansion – $3 million • DOT - Airport Improvement Program (AIP) o Projects for enhancing airport safety, capacity, and security, and mitigating environmental concerns. o Sample projects: ▪ CA Terminal Expansion and Safety Enhancement Project – $2 million ▪ OR Automated Weather Observing System Replacement – $500,000 ▪ CO Pavement Upgrades – $450,000 ▪ MD Regional Airport Runway Extension – $500,000 • HUD - Economic Development Initiative (EDI) o Site acquisition, demolition or rehabilitation of housing or facilities, construction and capital improvements of public facilities (including water and sewer facilities), and public services are eligible. o Sample projects: ▪ CA Transitional Housing Project – $500,000 Attachment A 20 Page 7 ▪ LA Sewerage and Water Board Wastewater and Stormwater Improvement – $6 million ▪ MA Climate Resilient Community Park – $2 million ▪ ME Fish Pier Redevelopment – $1.5 million Additional information from 2024 related to requests made under this bill can be found here. Attachment A 21 Project Congressional District Total Project Cost Requested Amount Brief Summary of Project 1 Treat Boulevard Corridor Improvements (Prior Submission )CD-10 (DeSaulnier)4,200,000$ 1,500,000$ The project will improve safety and first mile/last mile connectivity for pedestrians and bicyclists along Treat Boulevard in the vicinity of the Contra Costa Centre Transit Village. Multi-modal barriers will be removed within the 0.4-mile segment by constructing buffered bike lanes, protected bike lanes, and a Class I multi-use path. 2 Marsh Drive - Class I Separated Path Accommodation CD-10 (DeSaulnier)4,879,000$ 3,000,000$ This project will close a 1.3-mile gap in the County bicycle network by constructing a Class I separated path along Marsh Drive between Center Avenue and the Walnut Creek bridge in unincorporate Pacheco. 3 San Pablo Avenue Complete Street/Bay Trail Gap Closure (Prior Submission )CD-8 (Garamendi)11,717,000$ 2,000,000$ The project will construct a Class I shared-used path closing a 3.2-mile gap in the planned 500- mile San Francisco Bay Trail, providing multimodal access for residents in Rodeo and Crockett, and improving safety. Completion of the trail will connect users between forty-seven cities with regional and local destinations. 4 North Bailey Road Active Transportation Corridor CD-8 (Garamendi)10,506,000$ 2,000,000$ The project will construct 0.5 miles of a two-way cycle track, ADA-compliant curb ramps, ADA- accessible sidewalks, traffic signal, and reconfigure travel lanes on Bailey Road between Willow Pass and Canal Road in unincorporated Bay Point. 5 Pacifica Avenue Safe Routes to School CD-8 (Garamendi)4,342,000$ 2,000,000$ The project will improve multi-modal access for students at Riverview Middle School and Gateway High School by reconfiguring of 0.5 miles of Pacifica Avenue from Port Chicago Highway to Driftwood Drive to install a two-way cycle track, new sidewalk, widened sidewalk, narrower travel lanes, bulb-outs, and new raised crosswalks in unincorporated Bay Point. 6 Carquinez Middle School Trail Connection CD-8 (Garamendi)4,868,000$ 2,000,000$ This project will construct a multi-modal path adjacent and separated from Crockett Boulevard to access two schools and close a gap in the Carquinez Scenic Loop Trail. 7 Auto-Focused Crime Elimination (ACE) Task Force Pilot Program (Previously submitted as a Measure X Proposal )Countywide 500,000$ 500,000$ Three-year Pilot requesting funding for a leased commercial space and necessary equipment for task force members to reduce motor vehicle theft in the county 8 Underserved Survivors Support Program (Previously submitted as a Measure X Proposal )Countywide 1,300,194$ 435,340$ Three-year Pilot requesting $435,340/yr to provide crucial safety net services to victims of unsolved shootings in the county. Funds 3 FTE victim witness advocates to provide 1) Crisis Intervention and Safety Planning; 2) Counseling; 3) Increased Community Outreach; plus 4) Emergency Financial Assistance for victims’/survivors’ immediate safety needs 9 Organized Retail Theft Prevention and Prosecution Pilot (Previously submitted to compete for state grant, pending decision )Countywide 2,000,000$ 10 Healing and Justice for Survivors of Labor Trafficking (Previously submitted as a Measure X Proposal )Countywide 500,000$ Adds 2 FTE to the County and 1 contracted FTE to enhance investigations and provide specialized advocacy; plus targeted outreach, staff training, and contracted civil legal services for victims of labor trafficking 11 Knightsen Wetland Restoration Project (Previously submitted for FY 24 federal earmark )CD-10 (DeSaulnier)2,000,000$ An extensive project to restore habitat types historically present that can support special status species. When constructed, the project will provide habitat for state and federally threatened and endangered species as well as providing a host of ancillary benefits locally including flood water attenuation, Delta water quality improvements, and protected open space. 12 Contra Costa County Sea Level Rise Resilience and Adaptation Plan development (Previously submitted for FY 24 federal earmark )Countywide 1,600,000$ 800,000$ NOT ELIGIBLE. Contra Costa County presently lacks a comprehensive, parcel-scale, set of strategies to combat sea level rise that spans all 90 miles of our unique shoreline, stretching from the city of Richmond in the San Francisco Bay to the community of Byron in the Sacramento-San Joaquin Delta. The purpose of the Plan would be to inform local cities, special districts, and property owners of the future risks of sea level rise and assist the applicable land use authority in accounting for these risks to ensure we protect, improve, and enhance the quality of life for all residents in Contra Costa County. 13 Countywide Tree Plan Countywide 800,000$ NOT ELIGIBLE. Contra Costa County will develop a Countywide Tree Plan to ensure that all residents, particularly those in the many Impacted Communities in our county, have trees to help mitigate increasing extreme heat, provide green infrastructure, and address equity issues. The Tree Plan will build on the work of the 2023 Healthy Lands, Healthy People study, which identifies best practices for storing greenhouse gas emissions in the different land use types in Contra Costa County. As the temperature warms, it will be important to identify tree species appropriate for a different climate than we experience now, species that are drought tolerant natives and fire resistant. A growing body of research shows a link between neighborhoods with more tree cover and higher property values – robust tree cover is an equity issue as well as a public health priority. Attachment B 22 CONTRA COSTA COUNTY Staff Report 1025 ESCOBAR STREET MARTINEZ, CA 94553 File #:23-1245 Agenda Date:12/18/2023 Agenda #:6. LEGISLATION COMMITTEE Meeting Date: December 18, 2023 Subject:County’s FEMA Claims for Public Assistance for COVID-19 related Non-Congregate Shelter Submitted For: Legislation Committee Department: County Administration Referral No: Referral Name: FEMA Claims Presenter: Timothy Ewell, Chief Assistant County Administrator Contact: (925) 655-2043 Referral History: The Legislation Committee received a report on this subject in November 2023. Referral Update: Chief Assistant County Administrator Timothy Ewell will be present at the meeting to provide the Legislation Committee with an update on the status of this matter and to discuss the related attachments. Recommendation(s)/Next Step(s): RECEIVE the report and provide direction and/or input to staff and the County’s lobbyists, as needed. Fiscal Impact (if any): There could be a significant fiscal impact on the County depending on the final disposition of the County’s FEMA claims. CONTRA COSTA COUNTY Printed on 12/14/2023Page 1 of 1 powered by Legistar™23 U.S. Department of Homeland Security Region 9 1111 Broadway, Suite 1200 Oakland, CA 94607-4052 October 16, 2023 Ms. Nancy Ward Director Governor’s Authorized Representative California Office of Emergency Services 3650 Schriever Avenue Mather, California 95655 RE: Emergency Non-Congregate Sheltering – FEMA-4482-DR-CA (COVID-19) Dear Director Ward: This letter provides clarification to questions received from the California Governor’s Office of Emergency Services (Cal OES) regarding the eligibility of emergency Non-Congregate Sheltering (NCS) during the COVID-19 Pandemic, specifically the eligibility of “high-risk” individuals requiring social distancing and FEMA’s methodology for evaluating the length of stay for eligible populations in emergency NCS. Under the COVID-19 major declaration, FEMA will consider emergency NCS for health and medical-related needs, such as isolation and quarantine resulting from the public health emergency. FEMA will reimburse emergency NCS costs incurred for: 1.Individuals who test positive for COVID-19 that do not require hospitalization, but need isolation (including those exiting from hospitals); 2.Individuals who have been exposed to COVID-19 (as documented by a state or local public health official, or medical health professional), that do not require hospitalization; and 3.Individuals who are “high-risk,” such as people over 65 or who have certain underlying health conditions (respiratory, compromised immunities, chronic disease), and who require emergency NCS as a social distancing measure. For the third category of eligible individuals, FEMA interprets the term high-risk based on the list of medical conditions identified in the Centers for Disease Control and Prevention’s (CDC’s) guidance.1 An individual confirmed to be at high-risk based on the CDC list of medical conditions may be eligible for emergency NCS if needed as a social distancing measure. Providing confirmation of a positive COVID test is not a requirement for the third category; however, eligible applicants will need to demonstrate that the individuals sheltered are high-risk. Regarding the length of stay for eligible populations in emergency NCS, FEMA recognizes the unprecedented scale and scope of the COVID-19 response. Widespread community transmission overwhelmed healthcare systems across the nation, and in the absence of available testing supplies, sheltering was a key strategy for limiting the loss of life and protecting public safety. Vaccines were not readily available to all members of the public until the Governor rescinded the Statewide Stay at 1 https://www.cdc.gov/coronavirus/2019-ncov/need-extra-precautions/people-with-medical- conditions.html#MedicalConditionsAdults Attachment A 24 Ms. Nancy Ward, Governor’s Authorized Representative FEMA-4482-DR-CA Page 2 of 4 Home Order on June 11, 2021.2 Recognizing the scarcity of testing and vaccine availability prior to recission of the Governor’s State at Home Order, FEMA will not limit the eligibility of length of stays in emergency NCS prior to June 11, 2021. FEMA also recognizes new COVID-19 variants resulted in spikes of COVID-19 community transmission following the Governor’s rescission of the Statewide Stay at Home Order. Some local public health orders required sheltering for a longer period following June 11, 2021, to protect individuals from exposure to COVID-19. Between March 2020 and June 2021, California took effective action to reduce the spread and mitigate the impacts of COVID-19, successfully curbing the spread of the virus and dramatically lowering disease prevalence and death. As of June 11, 2021, over 70 percent of Californians 18 and older received at least one vaccine dose, raising the overall level of immunity in the state.3 Because of the significant efforts made by the State of California to reduce transmission of COVID-19, after June 11, 2021, FEMA Region 9 has aligned its implementation of emergency NCS with federal public health authorities and their official recommendations regarding isolation and quarantine periods. Consequently, between June 11, 2021 – May 11, 2023, eligible costs for emergency NCS may be incurred for a period up to 20 days in accordance with the CDC’s recommended isolation and quarantine period, which is the lengthiest period the CDC recommended for isolation and quarantine.4 Based on Cal OES’ extension requests in 2020, the average length of emergency NCS was 11 days for first responders and 37 days for high-risk individuals. Additionally, Cal OES submitted monthly emergency NCS data reports between December 2020 – May 2023 that showed an average of 14 days for emergency NCS stays. Except where specifically stated otherwise in this letter, the reimbursement of costs for eligible emergency NCS remains subject to the same requirements set forth in the California NCS Approval Letters5 and the NCS Transition Plan to other Federal Funding letter, dated October 18, 2021. Sheltering specific populations in emergency NCS should be determined by a public health official’s direction or in accordance with the direction or guidance of health officials by the appropriate state or local entities. As mentioned in the October 18, 2021 letter, reimbursement of costs for emergency NCS does not include assistance for individuals experiencing homelessness unless they qualify under one of the three eligible population categories. Finally, contracts for emergency NCS must comply with federal procurement requirements at 2 CFR Part 200, including reasonable costs and incorporation of a termination for convenience clause. I have attached an emergency NCS project eligibility review list that my staff will use to review emergency NCS project submissions from applicants. 2 Governor’s Executive Order, No. N-07-021, rescinding Executive Order, No. N-60-20 (Statewide Stay-at-Home Order). 3 https://www.gov.ca.gov/2021/06/11/governor-newsom-announces-new-rewards-for-vaccinated-californians-as-second- round-of-vax-for-the-win-50k-winners-is-drawn/ 4 https://www.cdc.gov/coronavirus/2019-ncov/hcp/duration-isolation.html 5 Initial letter approving PA funding for eligible NCS costs incurred by the State of California dated March 27, 2020, initial letter approving PA funding for eligible costs incurred by local NCS providers dated April 2, 2020, and most recent letters approving NCS extensions dated July 1, 2020, July 30, 2020, August 29, 2020, October 1, 2020, October 30, 2020, and November 30, 2020 Attachment A 25 Ms. Nancy Ward, Governor’s Authorized Representative FEMA-4482-DR-CA Page 3 of 4 Thank you for emphasizing to local providers the importance of maintaining effective tracking mechanisms to provide sufficient data and documentation to establish the eligibility of emergency NCS costs (including wrap-around services directly necessary for the safe and secure operations of emergency NCS facilities) for which they intend to request Public Assistance funding. As with any activity, lack of sufficient supporting documentation may result in FEMA determining that some or all of the costs claimed are ineligible. Thank you for your continued partnership as we address questions related to COVID-19 eligible activities during an unprecedented time. If you have additional questions regarding this matter, please do not hesitate to contact me. Sincerely, Robert J. Fenton Regional Administrator FEMA Region 9 Attachment 1: Emergency NCS Project Eligibility Review List Attachment A 26 Ms. Nancy Ward, Governor’s Authorized Representative FEMA-4482-DR-CA Page 4 of 4 Attachment 1: Emergency NCS Project Review List: Legal responsibility To be eligible, work must be the legal responsibility of an eligible applicant. Measures to protect life, public health, and safety are generally the responsibility of state, local, tribal, and territorial governments. Directed and Documented by Public Health Official NCS must be at the direction of and documented through an official order signed by a state, local, tribal, or territorial public health official. Intake process at each NCS site (data collection of questionnaires and/or surveys) Individuals should be pre-screened or referred to by an authorized local public health representative. Applicants should follow the detailed protocols issued by the Department of Public Health and site administrators to ensure that only individuals who meet FEMA eligible criteria are sheltered. Data collected should include: - Documentation showing a recent positive test, - Self-certification form or, - Medical referrals Duration of the Sheltering Activities Number of individuals sheltered Operational period Wraparound services Costs associated with the provision of support services, such as case management, mental health counseling and similar services are not eligible for reimbursement. Cost reasonableness Costs claimed by State, Local, Tribal and Territorial governments must be reasonable pursuant to federal regulations and federal cost principles. A cost is considered reasonable if, in its nature and amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost. Unoccupied rooms Generally, unoccupied rooms are ineligible. Exceptions might be made for reasonable pre-positioning of resources or other circumstances made on a case-by-case basis. Termination for Convenience Clauses Applicants must follow FEMA’s Procurement Under Grants Conducted Under Exigent or Emergency Circumstances guidance and include a termination for convenience clause in their contracts. Attachment A 27 1 State and Local Fiscal Recovery Funds: Obligation IFR Quick Reference Guide This Quick Reference Guide provides an overview of the Obligation Interim Final Rule (Obligation IFR) for informational purposes and is intended as a brief summary. INTRODUCTION The Coronavirus State and Local Fiscal Recovery Funds (SLFRF), established by the American Rescue Plan, delivers $350 billion to state, local, territorial, and Tribal governments to support the response to and recovery from the COVID-19 public health emergency. In November 2023, Treasury issued the Obligation IFR to address recipients’ questions and comments regarding the definition of obligation. The Obligation IFR revises the definition of “obligation” in Treasury’s implementing regulations for the SLFRF program and provides related guidance to give additional flexibility and clarity to recipients to support their use of SLFRF funds. The Obligation IFR does not alter the existing SLFRF obligation or expenditure deadlines. Recipients must obligate SLFRF funds by December 31, 2024 , and expend obligated funds by December 31, 2026 (with the exception of projects under the Surface Transportation projects and Title I eligible use categories, for which funds must be expended by September 30, 2026). In addition, the Obligation IFR does not alter the eligible use categories described in the 2022 Final Rule and the 2023 Interim Final Rule. Recipients seeking information about whether a specific project may be an eligible use of SLFRF funds should reference the rules, along with the Overview of the 2022 Final Rule and the Overview of the 2023 Interim Final Rule. Below is a summary of the Obligation IFR. Recipients should refer to the Obligation IFR for a complete description of the definition of obligation and associated requirements. AMENDMENT TO THE DEFINITION OF “OBLIGATION” AT 31 CFR 35.3 Under the revised definition of “obligation,” the term continues to mean an order placed for property and services and entry into contracts, subawards, and similar transactions that require payment. Under the Obligation IFR, a recipient is also considered to have incurred an obligation by December 31, 2024, with respect to a requirement under federal law or regulation or a provision of the SLFRF award terms and conditions to which the recipient becomes subject as a result of receiving or expending SLFRF funds. Accordingly, under the second part of the definition of obligation set out above, a recipient may use SLFRF funds to cover costs related to: 1.Reporting and compliance requirements, including subrecipient monitoring 2.Single Audit costs 3.Record retention and internal control requirements 4.Property standards 5.Environmental compliance requirements 6.Civil rights and nondiscrimination requirements Attachment B 28 2 To take advantage of the additional flexibility to cover the costs of meeting these requirements, the Obligation IFR lists the information that a recipient must submit to Treasury regarding estimates of SLFRF funds that it will use to cover administrative and compliance related expenditures. Treasury will update the SLFRF Compliance and Reporting Guidance to reflect recipients’ additional reporting regarding these estimated amounts. The Obligation IFR also clarifies that recipients may continue to charge their current negotiated indirect costs rate agreement established with their federal cognizant agency or the de minimis rate of 10 percent of modified total direct costs pursuant to 2 CF R 200.414(f), after December 31, 2024 through December 31, 2026. Additionally, the Obligation IFR states that Treasury considered some recipients’ comments to revise the rule to define “costs incurred” by reference to recipient appropriation, budget, or allocation processes, and explains that this approach would not provide a standard that could be applied consistently across recipients. APPLICATION OF OBLIGATION DEADLINE TO SUBRECIPIENTS Subrecipients are not subject to the December 31, 2024 obligation deadline. The obligation deadline applies to the recipient of SLFRF funds, and a cost is considered to have been incurred once a recipient enters into a subaward or contract that obligates the recipient to cover that cost. Neither subrecipients nor contractors need to take additional steps to obligate SLFRF funds after entering into a subaward or contract with the recipient. AMENDMENT AND REPLACEMENT OF CONTRACTS AND SUBAWARDS In general, recipients cannot re-obligate funds or obligate additional SLFRF funds after the obligation deadline of December 31, 2024. For instance, if a contractor makes a change order request after December 31, 2024, that necessitates a contract amendment, the recipient would not be permitted to obligate additional SLFRF funds to the project because the obligation deadline would have passed. However, after the obligation deadline, recipients are permitted to replace a contract or subaward that was entered into prior to December 31, 2024 under the following circumstances: 1. The recipient terminates the contract or subaward because of the contractor or subrecipient’s default, the contractor or subrecipient goes out of business, or the recipient determines that the contractor or subrecipient will not be able to perform under the contract or carry out the subaward. 2. The recipient and contractor or subrecipient mutually agree to terminate the contract or subaward for convenience. 3. The recipient terminates the contract or subaward for convenience if the contract or subaward was not properly awarded (for example, if the contractor was not eligible to receive the contract), there is clear evidence that the contract or subaward was improper, the recipient documents the determination that it was not properly awarded, and t he original contract or subaward was entered into by the recipient in good faith . Treasury will update the SLFRF Compliance and Reporting Guidance for recipients to report any contract or subaward replacements after the December 31, 2024, obligation deadline. Attachment B 29 CONTRA COSTA COUNTY Staff Report 1025 ESCOBAR STREET MARTINEZ, CA 94553 File #:23-1246 Agenda Date:12/18/2023 Agenda #:7. LEGISLATION COMMITTEE Meeting Date: December 18, 2023 Subject:2023-24 State Legislative Platform Amendments Submitted For: Legislation Committee Department: County Administration Referral No: Referral Name: 2023-24 Legislative Platforms Presenter: L. DeLaney Contact: (925) 655-2057 Referral History: The Legislation Committee considers amendments, as needed, to the County’s adopted State and Federal Legislative Platforms and recommends changes to the Board of Supervisors. The Board adopted the 2023-24 State and Federal Legislative Platforms at their January 17, 2023 meeting. (C. 16) The Platforms were subsequently amended on July 18, 2023 to include elections related policy statements. (C. 28) (Attachments A and B) Referral Update: When the Legislature returns on January 3, 2024 to kick off the second year of the two-year session, they will immediately face a January 31 deadline, which is the date by which any “two-year” bills must pass out of the house of origin. The Legislature’s focus in January also will be on the state’s fiscal condition, given that the Governor’s January 10 budget proposal will likely address the estimated $68 billion state budget deficit currently projected by the Legislative Analyst’s Office. As we anticipate the start of the second year of the legislative session in January 2024, County staff and the County lobbyists have reviewed the adopted Legislative Platforms for recommended amendments that reflect the current legislative and budgetary landscape. Recommended amendments to the 2023-24 State Legislative Platform include the following: 1.Sponsored Bills and Advocacy Priorities (p. 7): A.Sponsored Bill #1 may not advance in 2024 due to state cost concerns; alternative mechanisms for obtaining greenhouse gas emissions inventories for California cities, counties, and special districts are being considered. After confirmation with the County’s partner sponsor, CivicWell, the bill may be removed. B.Sponsored Bill #2 was successfully enacted and can be removed from the Platform. CONTRA COSTA COUNTY Printed on 12/14/2023Page 1 of 2 powered by Legistar™30 File #:23-1246 Agenda Date:12/18/2023 Agenda #:7. C.Advocacy Priorities: i.Remove COVID-19 Economic Recovery. (The Legislature is unlikely to consider legislative proposals given the state budget situation.) ii.Climate Change: Add: “Advocate for and support resource/resilience bonds and Contra Costa County specific projects in the bond measure(s). Funding is needed to facilitate the conversion of existing buildings to all-electric, promote a countywide approach to adaption to rising water levels, support the development and implementation of a countywide tree plan, and build-out the active transportation network across the County.” iii.Health Care: Add: “CalAIM Implementation engagement with focus on finance implications as well as impacts on county operations, programs and people served. Advocate for Behavioral Health workforce assistance and adequate, sustained funding to match new services and administration expectations. Advocate for secure, adequate, flexible, and sustained funding for CARE Court implementation, mindful of the state budget.” iv.Housing and Homelessness: Add “Although state and local governments have made significant investments in housing and homelessness programs over the last few years, California lacks a comprehensive, holistic strategy that provides sustained funding and clear levels of responsibility for all levels of government. Continue to support significant strategic investments.” v.The Delta/Water and Levees:Add “Support efforts to protect and improve water quality, water quantity, and Delta outflow and advocate for increased freshwater flow through the Delta into the San Francisco Bay. Advocate for significant funding for western and central Delta levees to support water quality and the existing Delta water conveyance system and to protect critical infrastructure.Support multi-purpose storage options that incorporate water supply, flood control, surface water and groundwater storage, groundwater management, and ecosystem components.” 2.Principles and Policy Statements (p. 8) Staff recommends consideration of the following additional policy statements to the 2023-24 State Legislative Platform: Artificial Intelligence (AI): SUPPORT engagement on policy discussions surrounding the development and use of artificial intelligence. The policies should recognize and allow for AI’s beneficial uses, including by counties, but prohibit areas of potential misuse. Child Welfare Services: SUPPORT the development or designation of safe, appropriate placement options and congregate care reform for foster youth with acute complex needs. Recommendation(s)/Next Step(s): CONSIDER the proposed amendments to the 2023-24 State Legislative Platform and RECOMMEND amendments to the Board of Supervisors for adoption. Fiscal Impact (if any): None. CONTRA COSTA COUNTY Printed on 12/14/2023Page 2 of 2 powered by Legistar™31 2023-24 Adopted State Legislative Platform Contra Costa County Website: www.contracosta.ca.gov Adopted January 17, 2023 Amended July 18, 2023 Attachment A 32 2 TABLE OF CONTENTS Introduction ___________________________________________________________ 3 County Profile ____________________________________________________________________ 3 Demographic Highlights ____________________________________________________________ 3 Governance _____________________________________________________________________ 4 Legislative Platform Purpose ________________________________________________________ 6 Mission, Vision, and Values __________________________________________________________ 6 Sponsored bills ________________________________________________________ 7 Advocacy Priorities ________________________________________________________________ 7 Principles and Policy Statements ___________________________________________ 8 Agriculture and Weights & Measures __________________________________________________ 8 Animal Services ___________________________________________________________________ 8 Child Support Services _____________________________________________________________ 9 Climate Change __________________________________________________________________ 9 The Delta ______________________________________________________________________ 11 Economic Development ____________________________________________________________ 11 Elections _______________________________________________________________________ 12 Emergency Preparedness, Emergency Response ________________________________________ 13 Flood Control and Clean Water _____________________________________________________ 14 Finance and Administration _________________________________________________________ 14 Health Care ____________________________________________________________________ 16 Homeless Services ________________________________________________________________ 19 Human Services __________________________________________________________________ 20 Justice Systems __________________________________________________________________ 25 Land Use/Community Development/Natural Resources ___________________________________ 26 Library Services _________________________________________________________________ 27 Telecommunications and Broadband _________________________________________________ 27 Transportation __________________________________________________________________ 28 Veterans _______________________________________________________________________ 29 Waste Management ______________________________________________________________ 29 Workforce Development __________________________________________________________ 31 Attachment A 33 3 INTRODUCTION County Profile One of the original 27 counties established in California in 1850, Contra Costa County is home to more than one million people, making it the ninth most populous county in the state. Physically, Contra Costa is over 733 square miles and extends from the northeastern shore of the San Francisco Bay easterly about 50 miles to San Joaquin County. The County is bordered on the south and west by Alameda County and on the north by the Suisun and San Pablo Bays. The western and northern shorelines are industrialized, while the interior sections are suburban/residential, commercial and light industrial. About 40 percent of the county is under the jurisdiction of 19 incorporated cities and towns, and large portions of the remaining unincorporated area are part of public park systems and a habitat conservancy. Contra Costa County is very diverse, with communities that range from small agricultural places like Byron, with a density of about 200 people per square mile, to urban population centers like Contra Costa Centre, a bustling transit village with a density of 8,400 people per square mile. With its strategic location as The Capital of The Northern California Mega-RegionTM and easy access to suppliers and customers, Contra Costa is a business destination full of opportunity. Demographic Highlights According to the 2022 State Department of Finance data, 1,156,555 people live in Contra Costa County. 15% of the total population, about 176,941 people, reside in the unincorporated areas of the county. The median age of County residents is 39 years old. Our population of seniors age 60 or older is expected to grow by approximately 47% between 2020 and 2050, making this age group our fastest growing. 34 4 44% of County residents are white, with significant proportions of Asian (16.5%) and African American (8%) people. The Census tracks Latinx ethnicity separately from other populations; in total, the Hispanic/Latino population makes up approximately 26% of the total population. Governance A five-member Board of Supervisors, each elected to four-year terms, serves as the legislative body of the County, which has a general law form of government. Also elected are the County Assessor, Auditor-Controller, Clerk-Recorder, District Attorney, Sheriff-Coroner and Treasurer-Tax Collector. The County Administrator, Monica Nino, is appointed by the Board and is responsible for running the day- to-day business of the County. 35 5 Contra Costa County Board of Supervisors: District 1: John M. Gioia District II: Candace Andersen District III: Diane Burgis District IV: Ken Carlson District V: Federal D. Glover 36 6 Legislative Platform Purpose The Legislative Platform establishes the priorities, principles, and policy statements of the Contra Costa County Board of Supervisors and creates the basis for its advocacy efforts, alerting our legislative partners of the greatest needs of our residents and where we need additional help. The Platform provides general direction to County departments and agencies, legislative advocates, delegation members, and the public on our positions on key policy matters that would impact the way the County does business. The Platform also includes new bill requests for which legislation is sought from Contra Costa County. Throughout the legislative session, the County will review and take positions on various policy and State Budget items. When a recommended position is consistent with existing County policy, as adopted in the Platform, the CAO’s office or department staff will prepare a County position letter for signature by the Board Chair. Contra Costa County has also adopted a Delta Water Platform to identify and promote activities and policy positions that support the creation of a healthy Sacramento-San Joaquin Delta. Contra Costa County uses this Delta Water Platform to guide its actions and advocacy regarding the future of the Delta. Mission, Vision, and Values Contra Costa County has adopted the following Mission, Vision and Values statement: 37 7 SPONSORED BILLS AND ADVOCACY PRIORITIES Sponsored Bill #1: Legislation to direct the California Air Resources Board to develop greenhouse gas inventories for California cities, counties, and special districts. The Legislature should allocate up to $2.5 million for this purpose. Sponsored Bill #2: S tatewide permitting for hauling solid waste by non- franchise haulers. Permits are required for non-franchise solid waste haulers in unincorporated areas of the County, but no similar requirement exists for cities, which impedes enforcement of illegal dumping. Advocacy Priorities  COVID-19 Economic Recovery that supports the goals of Mental Well-Being, Equity in Action, Healthy Communities, Intergenerational Thriving, and a Welcoming & Safe Community  Climate Change  Heath Care, including Mental Health, Behavioral Health and Substance Use Disorder (SUD) services  Housing and Homelessness  The Delta/Water and Levees 38 8 PRINCIPLES AND POLICY STATEMENTS Agriculture and Weights & Measures • SUPPORT actions to ensure sufficient state funding for pest and disease control and eradication efforts to protect both agriculture and the native environment. • SUPPORT funding for agricultural land conservation programs and agricultural enterprise programs, and revisions to State school siting policies to protect and enhance the viability of local agriculture. • SUPPORT legislation to facilitate the efforts by the California Department of Food and Agriculture and the Department of Boating and Waterways to survey and treat all infestations in the Delta of invasive aquatic species through integrated pest management. • SUPPORT legislation that preserves the integrity of the Williamson Act, eliminates abuses resulting in unjustified and premature conversions of contracted land for development, and fully restores Williamson Act subventions. • SUPPORT legislation that would preserve or enhance protections now afforded to consumers for commercial transactions involving commercial weighing or measuring devices (scales, meters and scanners) or computed by point-of-sale systems. • SUPPORT efforts to ensure sufficient funding for weights and measures programs that protect consumers and promote fair competition in the marketplace. Animal Services • SUPPORT actions to protect local revenue sources designated for use by the Animal Services Department; i.e., animal licensing, fines and fees. • SUPPORT actions to protect or increase local control and flexibility over the scope and level of animal services; and SUPPORT efforts to protect and/or increase County flexibility to provide animal services consistent with local needs and priorities. • SUPPORT actions to protect against unfunded mandates in animal services or mandates that are not accompanied by specific revenue sources which completely offset the costs of the new mandates, both when adopted and in future years. SUPPORT efforts to ensure full funding of State animal services mandates. • SUPPORT efforts to preserve the integrity of existing County policy relating to Animal Services (e.g., the Animal Control Ordinance and land use requirements). 39 9 Child Support Services • SUPPORT recognition, promotion and enhancement of the child support program as a safety net program. • SUPPORT efforts that create new child support collection tools and methods or enhance existing child support collection tools and methods. OPPOSE efforts that eliminate or limit existing child support collection tools and methods. • SUPPORT efforts to increase funding for the child support program. OPPOSE efforts to reduce funding for the child support program. • SUPPORT efforts that enhance or create new data collection tools and methods. OPPOSE efforts that eliminate or limit existing data collection tools and methods. Climate Change • SUPPORT funding and policy to implement the following:  Technologies that support the County’s climate goals, including battery energy storage and microgrids, solar and wind energy, electric vehicles, and electric vehicle infrastructure;  Energy efficiency programs that encourage whole house retrofits and address asthma triggers in the built environment;  Planning work for adapting to rising sea levels;  Planning and implementation of microgrids;  Active transportation and green infrastructure programs;  Job training for careers in clean energy, clean transportation, and green infrastructure. • SUPPORT funding and policy to harden and enhance the infrastructure of public facilities, including public hospitals and health care centers, to the impacts of climate change. • SUPPORT actions that: address the impacts of climate change; support climate adaptation and resilience efforts; support the Green Business program; address the disproportionate impacts that some communities bear because they are located near sources of exposure such as large industrial facilities, freeways or transportation corridors and/or live in proximity to areas vulnerable to sea- level rise or inland flooding; reduce exposure to toxic air pollutants and greenhouse gases; study and recognize the health impacts of global and regional climate change; and study the economic, workforce and social impacts of transitioning away from fossil fuels. • ENSURE that the implementation of AB 32 and successor bills results in harmony between the greenhouse gas reduction target created by the Air Resources Board for each regional/local agency, data that reveals disparity in population health status, the housing needs numbers provided 40 10 by the state Department of Housing and Community Development, and the Sustainable Communities Strategy developed through the Regional Transportation Plan processes. • SUPPORT efforts that favor allocation of funding and infrastructure from the California Climate Investments Program to jurisdictions within whose boundaries are the largest emitters of greenhouse gas, have vulnerable and/or disadvantaged communities that are disproportionately affected by climate change and environmental pollution, have Natural Community Conservation Plans or similar land conservation efforts that will address climate change and have demonstrated a local commitment to climate protection. • SUPPORT revisions to the Public Resources Code and the Air Resources Board’s Investment Plans to provide California Climate Investments funding for the conservation of natural lands, parks and open space through fee title acquisition as well as easements. • SUPPORT efforts to expand eligible expenditures of the Climate Investments to investments in accessible transit/transportation systems (serving seniors, disabled, and veterans) which result in more efficient service and corresponding reductions in greenhouse gas production, and in investments in infrastructure and programs to promote active transportation, particularly bicycling and walking. • OPPOSE changes to the California Environmental Protection Agency’s protocols for designating disadvantaged communities which result in a reduction in the number or size of disadvantaged communities in Contra Costa County prioritized for receipt of California Climate Investment funds. • SUPPORT efforts to ensure life-cycle costs are considered when planning new projects in the state. • SUPPORT the autonomy of community choice aggregators (CCAs) in policymaking and decision- making. OPPOSE legislation and regulatory policies that unfairly disadvantage CCAs or CCA customers or reduce or undermine local decision-making autonomy by the CCA. • SUPPORT continuing development of local renewable energy resources and supply, including protection of local autonomy to administer energy efficiency programs and install and utilize integrated distributed energy resources, and SUPPORT effective leveraging of energy efficiency programs tailored to address local needs and concerns. • SUPPORT complete transparency of all energy procurement practices, stranded costs, and departing load charges; fair competition in statewide energy markets for community choice aggregators (CCAs) and municipal or other publicly owned utilities; legislation and regulatory policies that protect CCA customers from improper cost allocation; and OPPOSE legislation that conflicts with or diminishes CCA procurement autonomy. • SUPPORT requirements for investor-owned and public energy utilities to provide local governments with energy usage data for all facilities in their jurisdictions for purposes of developing inventories of greenhouse gas emissions within their boundaries. 41 11 • SUPPORT resources for local governments to use in addressing impacts of climate change and rising water levels caused by a warming climate, such as extreme heat, wildfire smoke, sea level rise, flooding, ground water rise, fires, and power disruptions. • SUPPORT actions that cost-effectively reduce exposure to criteria air pollutants and toxic air pollutants. The Delta • PROTECTION and RESTORATION of a healthy sustainable Delta ecosystem including adequate water quality, inflow and outflow, and water supply, to support fisheries, wildlife and habitat in perpetuity and managing or eradicating invasive species. • RESPECT and SAFEGUARD Delta Counties’ responsibilities related to land use, water resources, flood management, tax revenues, public health and safety, economic development, agricultural stability, recreation, and environmental protection in any projects, policies, or operations. • SUPPORT rehabilitation, improvement, and maintenance of levees throughout the Delta. • SUPPORT the Delta pool concept, in which the common resource provides quality freshwater supply to all Delta users, requiring mutual responsibility to maintain, restore, and protect the common resource. • REPRESENT and include local government in any governance structures for the Delta. • OPPOSE isolated conveyance. Economic Development • ADVOCATE for jobs-oriented incentive programs for jurisdictions that have met their Regional Housing Needs Assessment (RHNA) numbers. State legislators will continue to advance bills that 42 12 make it easier to build housing, but it would also benefit the county to have those streamlining measures apply to jobs-oriented development like office and advanced manufacturing as well. • SUPPORT an amendment to the California Competes Tax Credit program guidelines to consider qualifying low-income census tracts within unincorporated areas of a county in the enhanced scoring category. Elections • SUPPORT full state reimbursement for state mandates imposed upon local registrars by the Secretary of State, including special state elections. • SUPPORT legislation to assist and fully fund counties in the effective implementation of State- mandated changes in the elections process and administration including but not limited to expanded access to language assistance. • SUPPORT proposals for full state funding to support the accelerated implementation of California’s expanded vote-by-mail model. • SUPPORT proposals that would provide full funding for state-mandated requirements related to signature verification and petition efforts, special elections and redistricting activities. • OPPOSE any legislation that imposes specific and impractical requirements regarding equipment, procedures, and personnel responsibilities for election administration. • OPPOSE any legislation that requires any specific methodologies for post-election audits. • SUPPORT policies that facilitate secure elections. • SUPPORT legislation that increases protections against interfering with the casting of ballots at polling places or by mail, including increasing fines and/or penalties for practices that attempt to impede the voting process or intimidate votes. • SUPPORT legislation to protect election workers from harassment and to ensure the physical safety of workplaces for election administrators. • SUPPORT legislation to allow for the secure and effective use of new technologies available in the field of election administration and to provide adequate funding for both deployment and maintenance of new technologies. • SUPPORT proposals that provide elections officials flexibility on the availability of in-person voting locations and the recruitment of poll workers in response to emergency orders. 43 13 Emergency Preparedness, Emergency Response • ADVOCATE for disaster recovery funding that addresses tax backfills, debris removal, resiliency, forest health, and economic assistance. SUPPORT legislation that will improve forest management and emergency communications systems. • SUPPORT funding for defensible space inspections, community wildfire risk mitigation, and for hardening of existing homes from wildfire exposure. • SUPPORT more authority to train volunteers, provide funding for Community Emergency Response Training (CERT), and help clean-up oil spills without taking on additional legal liability. • SUPPORT a sales tax exemption for public safety related apparatus and/or equipment over a certain value (e.g., $250,000). • SUPPORT exemptions from CEQA for wildfire risk mitigation projects and Essential Services Facilities (ESF) such as fire stations, and exemptions from fees and air quality limitations for emergency generators at fire stations. • SUPPORT a permanent resolution to the reimbursement for air ambulance providers. • ENSURE that development impact fees provide adequate funding for public safety facilities and ongoing operations. • SUPPORT legislation to improve telephone access or back-up during emergencies. • SUPPORT actions that increase the safety of the shipment of hazardous materials by pipeline through better monitoring, technical seismic vulnerability studies, leak detection, operational practices, and equipment. • SUPPORT legislation to maintain or strengthen the authority and governing role of counties and their local emergency medical services agencies to plan, implement, and evaluate all aspects and components of the emergency medical services system. • SUPPORT legislation to maintain or strengthen the administration and medical control of emergency medical services, pre-hospital emergency medical care, and ambulance services at the county level. • SUPPORT legislation that would enable paramedics and emergency medical technicians responding to 911 calls to transport patients to the most appropriate facility, such as, mental health urgent care centers or sobering centers, subject to the County’s Emergency Medical Services Policy. • SUPPORT legislation that provides adequate and stable funding for LEMSAs and EMS systems components including but not limited to: EMS administration, trauma systems, specialty centers (e.g. trauma, pediatric, cardiac, stroke), ambulance transport, emergency and disaster preparedness and 44 14 response, reimbursable transport to alternate destinations, and uncompensated care by emergency department physicians and on-call specialists. • OPPOSE legislation that would threaten or weaken the authority and governing role of counties or local medical control over the locally coordinated and standardized provision of emergency medical services. • OPPOSE legislation that may result in the fragmentation of the emergency medical services systems, prehospital emergency medical care, and ambulance services. • OPPOSE legislation that would prevent or weaken the ability of the LEMSA Medical Director to assure medical control of the EMS system. Flood Control and Clean Water • SUPPORT legislation that would improve integration of planning between member agencies of an Integrated Regional Water Management Planning group, thereby increasing multi-benefit projects. • SUPPORT legislation that would require Metropolitan Planning Organizations to integrate local and regional stormwater needs into their regional transportation planning process. Finance and Administration • SUPPORT the State's effort to balance its budget through actions that do not adversely affect County revenues, services, or ability to carry out its governmental responsibilities. • OPPOSE any state-imposed redistribution, reduction or use restriction on general purpose revenue, sales taxes or property taxes unless financially beneficial to the County. • OPPOSE efforts to limit local authority over transient occupancy taxes (TOT). • OPPOSE any efforts to increase the County's share-of-cost, maintenance-of-effort requirements or other financing responsibility for state-mandated programs, absent new revenues sufficient to meet current and future program needs. • SUPPORT efforts to ensure that Contra Costa County receives its fair share of state allocations. • SUPPORT efforts to receive reimbursement for local tax revenues lost pursuant to sales and property tax exemptions approved by the Legislature and the State Board of Equalization. • SUPPORT efforts to reform the state/local relationship in a way that makes both fiscal and programmatic sense for local government and conforms to the adopted 2010 CSAC Realignment 45 15 Principles, with an emphasis on maximum flexibility for counties to manage the existing and realigned discretionary programs. • SUPPORT a reduction in the 2/3rd vote requirement to 55% voter approval for locally-approved special taxes that fund health, education, economic, stormwater services, library, transportation and/or public safety programs and services. • SUPPORT efforts to authorize counties to impose forfeitures for violations of ordinances, as authorized for cities. • SUPPORT efforts to redefine the circumstances under which commercial and industrial property is reassessed to reduce the growing imbalance between the share of overall property tax paid by residential property owners versus commercial/industrial owners. • SUPPORT efforts to reduce County costs for Workers’ Compensation, including the ability to control excessive medical utilization and litigation. • SUPPORT actions that maximize federal, state, and local revenues for county-run services and programs. • SUPPORT legislative compliance with both the intent and language of Proposition 1A. • OPPOSE efforts of the state to avoid state mandate claims through the practice of repealing the statues then re-enacting them. SUPPORT timely, full payments to counties by the state for programs operated on their behalf or by mandate. • SUPPORT full state participation in funding the County’s retiree and retiree health care unfunded liability. • OPPOSE the establishment of specific or stricter standards for the use of personal services contracts by counties that would make contracting with community-based organizations more difficult. • ENABLE the use of Progressive Design-Build project delivery for construction contracts. • ENABLE local governments to continue offering opportunities for public meeting attendance, participation, and accessibility through technological means after the pandemic has ended. • SUPPORT legislation that will facilitate more efficient and effective public service delivery and financial management under alternative governance and administrative structures supported by the Board. • SUPPORT efforts that ensure public entities are procuring products and delivering services in a manner that progressively reduces the carbon footprint of goods and services. 46 16 Health Care • SUPPORT legislation and administrative policy changes that will continue into the future the flexibilities in use of Telehealth services that have so benefited our community during the Public Health Emergency. • SUPPORT state action to increase health care access and affordability. • SUPPORT Medi-Cal reimbursement rate increases to incentivize providers to participate in the program. Also, SUPPORT Medi-Cal reimbursement rate increases through Proposition 56 funding to provide quality reproductive health care services. • SUPPORT reimbursement for a maximum of 2 visits taking place on the same day at one location if the patient suffers illness/ injury requiring additional diagnosis/ treatment, or if the patient has a medical visit and mental health or dental visit. • SUPPORT actions that address provider shortages (including physicians, particularly specialists, and nurses). Innovative programs, such as loan forgiveness programs, should be expanded. • SUPPORT actions that implement comprehensive systems of care, including case management, for frequent users of emergency care and those with chronic diseases and/or dual (or multiple) diagnoses. • SUPPORT actions that provide sufficient time for detailed data gathering of current safety net funding in the system and the impact of any redirection of funds on remaining county responsibilities. • SUPPORT measures that maximize federal reimbursement from Medicaid and S-CHIP. • SUPPORT actions to implement a Medi-Cal waiver in a manner that maximizes the drawdown of federal funds for services and facilities, provides flexibility, and ensures that counties receive their fair share of funding. • SUPPORT actions to extend Drug Medi-Cal and Minor Consent Medi-Cal Coverage to incarcerated youths, many of whom are in custody due to drug related crimes. • SUPPORT coverage of medically necessary alcohol and substance use related disorder treatment at the same level as other medical conditions. • SUPPORT legislation that extends the restrictions and prohibitions against the smoking of, and exposure to, tobacco products; and the promotion of cessation among young people and adults. 47 17 • SUPPORT actions that further align a statewide regulatory framework for the commercial cannabis industry and that continue to authorize local jurisdictions to adopt more restrictive measures to protect the health, safety and welfare of their residents. OPPOSE legislation and state regulation that seeks to weaken or eliminate local control over the commercial cannabis industry. • SUPPORT necessary County infrastructure and adequate funding related to education, regulation, testing and enforcement functions associated with cannabis regulatory controls. • SUPPORT restricting the sale and use of powdered alcohol and other similar products marketed to youth; restrictions on advertising of cannabis products targeting youth and near places frequented by youth or alcohol and other drug treatment facilities. • SUPPORT legislation that extends the restrictions and prohibitions against the smoking of, and exposure to, cannabis products in various places, including, but not limited to, places of employment, school campuses, public buildings, day care facilities, multi-family housing, health facilities, alcohol and other drug treatment facilities, and homeless shelters. • SUPPORT actions to seek a state ban on electronic devices that deliver flavored e-liquids as well as the e-juice itself. • SUPPORT actions aimed at reducing the misuse of prescription drugs, most especially opioids, and increase prevention and treatment of opioid disorders to eliminate overdoses and combat the opioid epidemic. • SUPPORT population-based chronic disease prevention efforts such as the creation and funding of a State Wellness Trust. • SUPPORT developing a workforce with gerontological expertise to manage the exponential growth in the chronically ill aging population. • SUPPORT efforts that would advance a Health-In-All-Policies approach to policy work done across the County. This implies consideration of how health is influenced by the built environment and a connection with land use planning and development. • SUPPORT ongoing study of the health impacts of global and regional climate change and ongoing countywide mitigation and adaptation efforts. • SUPPORT actions that would preserve the nature and quality and continuity of care associated with safety net services historically provided at the local level, such as the California Children’s Services (CCS) and Child Health and Disability Prevention (CHDP) programs. • SUPPORT actions that promote aging in place through the utilization of long-term supports and services and caregiver support services. 48 18 • SUPPORT increasing the level of funding for Long-Term Services and Supports (LTSS) and Home and Community Based Services (HCBS) to meet the increase in cost to provide services and to meet the tremendous increase in the aging population. • SUPPORT funding, streamlined processes, and greater flexibility for use of state and federal funding to respond to Public Health Emergency Preparedness initiatives including Pandemic Influenza, emerging diseases, and continued funding for all categories related to Public Health Preparedness. • SUPPORT increased funding and policy changes for Tuberculosis (TB) prevention and treatment to reflect the increased risk of transmission faced across the Bay Area. • SUPPORT increased funding for the public health infrastructure, capacity and prevention services. • SUPPORT Local Public Health Departments as an authorized provider for direct billing reimbursement related to the provision of Immunization, Family Planning, HIV, STD and TB services. • SUPPORT the reversal of the pre-emption language regarding local Menu-Labeling that is included the Affordable Care Act. • SUPPORT enhanced funding and capacity for public health programs. • SUPPORT efforts to strengthen needle exchange programs as part of an overall program to combat the spread of HIV and other diseases. • SUPPORT legislative efforts to reduce or eliminate lead and toxic substances in consumer products, particularly those used by infants and children. • SUPPORT funding, policy and programs dedicated to suicide, injury and violence prevention. • SUPPORT legislation to tax certain beverages that contain added sugars. • SUPPORT efforts that support healthy meals, adequate meal time, and increased physical activity/education for school-age children. • SUPPORT funding that sustains and expands non-infrastructure Safe Routes to School programs that educate students, parents, and school staff about safe walking and bicycling to school. • SUPPORT efforts to address the underlying determinants of health and health equity, such as housing and prevention of displacement, educational attainment and livable wage jobs, and accessible transportation. 49 19 Homeless Services • SUPPORT the continuation and expansion of funding for fair and equitable affordable housing, homelessness assistance and prevention programs, and strategic local and regional responses to homelessness that promote transparency, equity and data informed decision-making and enhance access to resources that support the County’s compliance with federal and state anti-homelessness and anti-poverty initiatives and requirements. • SUPPORT increasing and maintaining affordable housing stock and housing stability by way of supporting funding, policy, or regulations that promote fair and equitable housing for the most vulnerable low, very low, and extremely low-income households, including the acquisition, production and preservation of various housing types and the protection of stable housing for vulnerable persons experiencing homelessness. • SUPPORT removal of barriers in planning processes, regulatory frameworks, funding programs, healthcare access, and policy to promote increased equity, innovation, transparency and data- driven approaches to addressing homelessness and housing affordability, with the goals of increasing affordable housing and eliminating discrimination and disparate treatment of individuals based on race, ethnicity, gender, gender identity, sexual orientation, ability, housing status, income, or other household characteristics. • SUPPORT a wide variety of housing types and formats, for all persons regardless of personal characteristic or status, and actively promote the equitable distribution and access to affordable units and holistic services, in line with evidence-based practices, to ensure the elimination of discrimination and disparate treatment of individuals, particularly vulnerable individuals and those from communities of color. • SUPPORT increasing funding, policy, and regulations for disaster planning and relief efforts that allow the County and the County’s homeless system to plan for and equitably respond to disasters and pandemics, including for purposes of supporting the health and safety of providers and persons experiencing homelessness, particularly the most vulnerable and those from communities of color. 50 20 Human Services Older Adults • SUPPORT actions that promote individual choice by easing access to In Home Supportive Services (IHSS). SUPPORT funding to reduce the intake wait-time for eligibility and delivery of in-home care. • SUPPORT allowing counties to use alternative IHSS reassessment approaches including, but not limited to, telephonic reassessments. • SUPPORT programs that increase seniors’ access to technology and internet connection. • SUPPORT fully funding the administration of IHSS. • SUPPORT funding to recruit, train, and retain IHSS home health care workers. SUPPORT increased state investment in livable wages for IHSS care providers. • SUPPORT actions to provide respite for caregivers. • SUPPORT the creation of funding opportunities and policies which promote the development of aging-friendly communities. • SUPPORT actions that strengthen the capacity and funding of Adult Protective Services (APS) to address all forms of abuse and neglect. • SUPPORT funding to expand services for older adults and people with disabilities. • SUPPORT actions to promote the safety of social workers and all in-home care providers. • SUPPORT funding and policies to provide older adults with holistic, culturally appropriate services and treatment modalities that support well-being, health, and mental health. • SUPPORT actions that promote safety in skilled nursing and other long-term care facilities for older adults. 51 21 Safety Net Programs • OPPOSE actions that result in reduced level of services to families, children, adults and seniors, or that lead to preemption of local control. • SUPPORT continuous investment in safety net programs, including the California Earned Income Tax Credit (Cal EITC) and the Supplemental Security Income/State Supplementary Payment (SSI/SSP) Program. • SUPPORT ongoing funding for programs that would provide disability benefit advocacy and housing assistance to our indigent, disabled, and homeless populations. • SUPPORT ongoing funding for CalAIM PATH III, including funding to support staff. • SUPPORT fully funding costs for administering programs, especially CalFresh. • SUPPORT continued flexibilities and waivers in benefits program administration for the benefit of individuals and families who are struggling. • SUPPORT actions to improve and expand access to food, including emergency food assistance networks (e.g. local food banks, and food pantries), increasing the amount and flexibility of CalFresh and other local assistance programs. • SUPPORT actions to streamline benefit applications, align verifications between programs, and have the same appointment for multiple applications. • SUPPORT the ease of data sharing and coordination of care across safety net programs, including those administered by the Health Department, such as WIC. • SUPPORT actions to ease access to Medi-Cal and its services. • SUPPORT actions which would expand eligibility to CalWORKS. • SUPPORT increased access to employment training programs and subsidized work programs for vulnerable populations, including access to community colleges. • SUPPORT establishing a General Assistance Program with a state share of funding. 52 22 • SUPPORT actions to create whole family care through a more comprehensive safety net of services that enable families to be stable and have economic opportunities. • SUPPORT research that describes and assesses local service needs and gaps. Child Welfare Services • SUPPORT funding for services that stabilize children and families in the foster care system. • SUPPORT full funding of efforts to support the Continuum of Care Reform. • SUPPORT initiatives which would expand benefits and support for reunified families. • SUPPORT restorative justice and healing-centered framework initiatives and programs that seek to eliminate the school-to-prison pipeline and end the criminalization of youth. • SUPPORT funding and initiatives to support children’s mental health and studies on the long-term impacts of COVID-19 on the physical and mental health of adults and children. Early Childhood Development • SUPPORT legislation to expand early childcare, education, mental health and other comprehensive services and holistic approaches. • SUPPORT increased funding and support preschool enrichment programs with family engagement to provide quality care and parent education in early life. • SUPPORT policies and systems changes to foster holistic family and early childhood development and resilience. • SUPPORT early childhood home visitation to enhance parenting skills and promote health child development. • SUPPORT early childhood mental health and trauma prevention programs. Violence Prevention • SUPPORT actions that seek to address the impact of gun violence, domestic violence, community violence, stalking, sexual assault, human trafficking, elder abuse and child abuse. 53 23 • SUPPORT actions that seek to prevent the underlying causes of all forms of violence and invest in upstream strategies. • SUPPORT actions to increase cross-agency and cross-system collaboration on cases involving violence, including the sharing of confidential or protected information in multidisciplinary team settings. • SUPPORT actions to reduce the effects of toxic stress, trauma, and adverse childhood experiences. • SUPPORT alternatives to the criminal justice system that center community and survivor needs. • SUPPORT actions to support successful transition from incarceration and detention to the community. • SUPPORT increase in funding for Lethality Assessment Protocols and reallocation strategies to support other prevention and social services. Immigration, Equity, and Inclusion • SUPPORT the continued expansion of benefits and services for immigrants, refugees, and asylum seekers regardless of immigration status. • SUPPORT efforts to expand full scope Medi-Cal to include Deferred Action for Childhood Arrivals (DACA) youth, seniors, and all remaining uninsured residents regardless of their immigration status. • SUPPORT increased language access and culturally responsive social services for all immigrants. • SUPPORT funding for the hiring and training of bilingual-bicultural social case workers. • SUPPORT actions to assist immigrants, refugees, and other seeking asylum who experience domestic or sexual assault to receive resources, including services to prevent homelessness, labor and human trafficking, and legal resources to help attain citizenship. 54 24 • SUPPORT funds for education and outreach to engage immigrants, refugees, asylum-seekers, and non-legal status communities to help them access benefits, mitigate concerns around public charge, and address other issues related to their enrollment to safety net programs. • OPPOSE any changes that may penalize immigrants for using vital public benefits they are legally allowed to access. OPPOSE any changes to sponsor requirements which add limiting threshold criteria. • SUPPORT funding and other resources for day labor programs and other workforce development programs that serve immigrant communities and undocumented workers. • SUPPORT actions that would eliminate systemic racism and structural inequities, including efforts to refocus Medi-Cal and other social safety net programs toward reducing health disparities. 55 25 Justice Systems • SUPPORT justice reform efforts that reduce racial and ethnic disparities. • SUPPORT justice reform efforts that reduce barriers to success for system-involved youth and adults. SUPPORT legislation that encourages and increases youth engagement. • SUPPORT justice reform legislation that recognizes adolescent brain development and the unique needs of transition-aged youth. • SUPPORT an ongoing commitment to investing in community based organizations and community alternatives to incarceration and detention. • SUPPORT legislation to restore pretrial detainee access to federal health benefits. • SUPPORT legislation raising the maximum age limit for juvenile court jurisdiction, allowing youths to remain on juvenile probation supervision through age 24, with an elevated focus on rehabilitation and restorative justice. • SUPPORT local flexibility and funding to implement justice diversion programs. • OPPOSE legislation that would shift the responsibility of parolees from the state to the counties without adequate notification, documentation and funding. • SUPPORT legislation that will help counties implement 2011 Public Safety Realignment as long as the proposal would provide for county flexibility, eliminate redundant or unnecessary reporting, and would not transfer more responsibility without funding. • SUPPORT legislation that will combat the negative impact that human trafficking has on victims in our communities, including the impact that this activity has on a range of County services and supports, and support additional tools, resources and funding to help counties address this growing problem. • SUPPORT legislative reform of current bail provisions that will replace reliance on money bail with a system that incorporates evidence-based pretrial release decisions. ADVOCATE for funding for any new or revised responsibilities for counties, including the assessment and supervision of people charged with crimes. • SUPPORT legislation that provides a solution to addressing the problems of metal theft and abandoned and trespassing vessels and ground tackle. 56 26 Land Use/Community Development/Natural Resources • ASSIST in the development and preservation of low and moderate income housing through support of programs that: 1) provide access to federal, state and local financing, 2) ensure timely review of residential projects, 3) provide financial and/or regulatory incentives where feasible and appropriate to offset or reduce the costs of affordable housing development, and 4) promote the re-use of existing publicly-owned assets. • MAINTAIN local agency land use authority. • SUPPORT ways to streamline overall compliance with State legislation, while opposing efforts to expedite a particular development project. • ENSURE Contra Costa residents of all income categories have access to adequate housing. • GROW more jobs countywide, particularly in those parts of the County with the longest commutes and most acute jobs-housing imbalance. • SUPPORT historically under-invested communities in their equitable economic growth. • IDENTIFY new or enhanced revenue to support residents’ quality of life. • ESTABLISH, fund and support locally-controlled resource permitting to streamline economic development activities and conserve and recover species and the habitats upon which they depend, natural resources, watersheds and open space. • SUPPORT legislative actions that reduce the risk to students from the accidental release of hazardous materials by requiring risk assessments that account for all sources of hazardous materials as part of school siting and rebuilding decisions. • SUPPORT legislative actions to evaluate, clean up, and redevelop contaminated sites. 57 27 Library Services • SUPPORT State funding for the operation of public libraries, including but not limited to, full funding of the California Research and Education Network (CalREN), Lunch at the Library, Zip Books, and the Pacific Library Partnership. • SUPPORT State bonds and other state funding for public library renovation and construction. • SUPPORT funding for the California Library Literacy and English Acquisition Services Program, which provides matching funds for public library adult literacy programs that offer free, confidential, one- on-one basic literacy instruction to English-speaking adults who want to improve their reading, writing, and spelling skills. • SUPPORT legislation that allows libraries to purchase eBooks and e-audiobooks at the same price as consumers. • SUPPORT funding for early literacy, school readiness, adult literacy, career development, vocational support, and assistance to vulnerable populations. • SUPPORT legislation that affirms the freedom to access library materials with diverse points of view and OPPOSE legislation that seeks to restrict access to library materials with diverse points of view. Telecommunications and Broadband • SUPPORT preservation of local government ownership and control of the local public rights-of-way and ensure reasonable compensation for their use. • SUPPORT continued funding for Public, Educational and Government Access (PEG) channels to provide local community access and benefits and increase flexibility in the use of PEG funds. • ENSURE nondiscriminatory treatment of Public, Educational and Government Access Channels by Cable System Operators. • SUPPORT the expansion of broadband (high speed internet service) to drive economic development and job opportunities, support county service delivery, and improve health, education and public safety outcomes for residents. • SUPPORT programs and funding for outreach to raise awareness of programs, discounts, and subsidies that are available to eligible members of the community for internet service and computer equipment. 58 28 Transportation • PROVIDE an integrated, multi-modal transportation system that safely and efficiently meets the transportation needs of all economic and social segments of the County and provides for the transport of goods and services throughout Contra Costa County. • EMPHASIZE the efficient use of the existing transportation system and cost-effective enhancements to this system. New and emerging policy direction includes an increase in the support for active transportation modes, support for the development of aging-friendly communities, and a decreasing emphasis on automotive capacity expanding projects which increase greenhouse gas production. • SUPPORT the provision of a safe, reliable, efficient, and accessible transportation system that balances social, environmental, and economic needs of the County through participation in planning and legislative initiatives (at the state and local level) which emphasize transportation improvements for seniors and persons with disabilities. • SUPPORT increased flexibility in the use of transportation funds. • Increased regional coordination, while reflecting local input, is necessary for public transit (paratransit and fixed route), roads, trails, advanced mobility technology, and greenhouse gas reduction related projects. • ENSURE complete life-cycle costs, including an emphasis on environmentally friendly construction resources, are considered during state and local project development. • SUPPORT improvements in safety throughout the transportation system, specifically for vulnerable users of the system (children, pedestrians, cyclists, etc.). • PROMOTE the streamlining of transportation safety projects. • SUPPORT actions to put in place local planning coordination mechanisms and requirements for state funded or regulated facilities such as schools, roads, courts, jails, and OPPOSE efforts to compromise the County’s road authority and the ability to protect public health, safety, and welfare. • SUPPORT regional, coordinated aviation transportation planning efforts to improve service delivery and to provide options to the surface transportation system for people and goods movement. • SUPPORT actions to increase waterborne transport of goods, in particular relative to the San Francisco to Stockton Ship Channel. 59 29 • SUPPORT measures to enhance rail safety with an emphasis on; increased state oversight of railroad bridges, funding for first responder training, funding to improve rail safety and prevent rail trespass fatalities, improved regulations for tank car safety standards, impacts from sea-level rise, and data sharing requirements between state emergency managers, local responders, and rail operators. • OPPOSE linking transportation funding to housing production. • OPPOSE reducing or eliminating development impact fees (without secured backfill) in an effort to increase housing production. • INCREASE requirements for coordination between transportation agencies and utilities. • SUPPORT funding increases for active transportation projects and planning with an emphasis on facilities and investments that increase the likelihood of a mode shift away from automobiles. • PROVIDE resources to facilitate the deployment of electric vehicles and electric vehicle charging infrastructure, including funding for vehicles, chargers, and facility upgrades, and improvements to the electric distribution and transmission grids to safely accommodate increased load. • SUPPORT actions to increase and improve waterborne transportation of goods when it increases safety. Veterans • SUPPORT legislation and budget actions that will continue the state's annual local assistance for County Veterans Service Offices at a minimum of $11 million. • SUPPORT legislation and funding that will provide veterans organizations with resources to operate and make necessary repairs to, or replacement of, their meeting halls and facilities. • SUPPORT legislation that will improve the timeliness and quality of both VA benefits claim decisions and VA healthcare services. Waste Management • MAINTAIN the County’s existing discretionary authority over matters pertaining to solid or hazardous waste management, recovery, and disposal. ENSURE new or expanded responsibilities are not imposed on the County, either directly or indirectly, without providing statutory authority to guarantee funding to implement actions necessary to adequately enforce or comply. • SUPPORT legislation that provides new or additional funding sources for local implementation of applicable solid waste and waste diversion mandates. 60 30 • SUPPORT legislation to provide alternative management standards for the Treated Wood program at the Department of Toxic Substance Control so treated wood could be processed at Class II landfills and transfer stations with a composite line. • SUPPORT legislation that:  Protects local decision-making authority regarding solid waste facility siting;  Protects local solid waste franchising authority;  Expands local solid waste and recycling fee-setting authority;  Protects local governments’ authority to direct the flow of waste; and  Seeks to remedy lack of sufficient authority to address statutory responsibilities. • SUPPORT legislation promoting the diversion of recyclables and organics from landfills unless burdensome or impractical for local governments to implement. • SEEK more robust local regulatory and enforcement authority relative to the storage, transport, processing, recovery, and disposal of hazardous or solid waste within our jurisdictional boundaries. • SUPPORT statewide regulation for hauling solid waste and enforcing increased penalties for illegal dumping. • SUPPORT legislation that prioritizes, incentivizes, and innovates hazardous or solid waste reduction and reuse practices of the waste hierarchy over traditional recycling. • SUPPORT actions to improve and diversify markets for recyclable materials and that encourages:  Solutions to global policy reforms and development of local recycling markets;  Creation of economic incentives for the use of recycled materials;  Increased use of recycled content in products manufactured or sold in California; and  Increased use of materials that are biodegradable and compostable. • OPPOSE legislation that requires diversion of materials for which there is not adequate markets. • ENSURE manufacturers are held accountable for proper end-of-life management of products and packing materials they produce, including pharmaceuticals, batteries, sharps, and veterinary medicine, to create effective producer-led reduction, reuse and recycling programs and foster more environmentally sustainable product/packaging design and reduce the quantity of harmful pharmaceuticals (including veterinary medicine) that ultimately enter wastewater treatment facilities, bodies of water, and landfills. • SUPPORT actions that will shift the financial burden of end-of-life management of products from individuals to producers and sellers. 61 31 • SUPPORT statewide regulation and enforcement to limit production or sale of items that negatively impact the environment or human health. • SUPPORT legislation that protects human health and the environment from exposure to hazardous materials and hazardous wastes such as per- and polyfluoroalkyl substances (PFAS). • OPPOSE actions that require counties to site, fund, approve, build and/or operate organic processing facilities, including composting operations. • SUPPORT actions to protect and expand waste diversion credits or disposal reduction credits. • SUPPORT the development of conversion technologies as an alternative to land filling and provides state funding to local jurisdictions for such projects; and provides that all energy produced by such projects be designated as renewable energy. • SUPPORT new or additional funding for expanded recycling and organics processing infrastructure. • SUPPORT funding for CalRecycle to assist in the implementation of laws focused on diverting organic and recyclable waste from landfill. • SUPPORT state investment in expanded clean composting, anaerobic digestion and recyclable materials manufacturing. • SUPPORT legislation to enable additional food rescue and recovery of edible food, including expansion of good Samaritan laws, and support legislation that establishes funding for food recovery programs and develops policies for safe but consistent food date labeling. • SUPPORT legislation that provides for less burdensome recovery of Household Hazardous Waste. Workforce Development • SUPPORT increasing the flexibility of Workforce Development Board spending and ability to partner with community agencies and other county bureaus to increase supportive services and respond to local workforce needs. • SUPPORT establishing a higher minimum wage. SUPPORT paid and job-protected leave policies. • SUPPORT funding for wage stipends for COVID positive workers and other direct cash assistance to COVID impacted families, most critically for ethnic-racial minority front line workers in the non- benefited employment sector. 62 32 • SUPPORT increased teacher training and education, including funding to support employees to obtain a teaching credential. • SUPPORT policies and programs that increase economic opportunity for women and improve gender equity. • SUPPORT actions that promote training, capacity building and deeper understanding for students, educators and county staff on trauma informed care, interpersonal violence, adverse childhood experiences, and healthy workplaces and schools. • SUPPORT expansion of education and educational materials in multiple languages related to labor rights, wage theft, proper compensation, and other work-related issues for all workers. • SUPPORT training for social workers in all of the fields covered by County staff. 63 2023-24 Adopted Federal Legislative Platform Contra Costa County Website: www.contracosta.ca.gov Adopted January 17, 2023 Amended July 18, 2023 Attachment B 64 2 TABLE OF CONTENTS Introduction ___________________________________________________________ 3 County Profile ____________________________________________________________________ 3 Demographic Highlights ____________________________________________________________ 3 Governance _____________________________________________________________________ 4 Legislative Platform Purpose ________________________________________________________ 6 Mission, Vision, and Values __________________________________________________________ 6 Federal Funding Needs: Project specific ____________________________________ 7 Surface Transportation Funding Needs ________________________________________________ 8 Federal Funding Needs: Program specific __________________________________ 10 Priority Policy Statements _______________________________________________ 12 Climate Change _________________________________________________________________ 12 Criminal Justice and Mental Health __________________________________________________ 12 The Delta ______________________________________________________________________ 13 Elections _______________________________________________________________________ 13 Health Care ____________________________________________________________________ 14 Homeless Services ________________________________________________________________ 15 Human Services __________________________________________________________________ 16 Land Use _______________________________________________________________________ 19 Library Services _________________________________________________________________ 19 Natural Resources/Permit Streamlining _______________________________________________ 20 Pipeline Safety __________________________________________________________________ 20 Telecommunications and Broadband _________________________________________________ 20 Transportation, Mobility Management and Coordination _________________________________ 20 Veterans _______________________________________________________________________ 21 Waste Management ______________________________________________________________ 21 Attachment B 65 3 INTRODUCTION County Profile One of the original 27 counties established in California in 1850, Contra Costa County is home to more than one million people, making it the ninth most populous county in the state. Physically, Contra Costa is over 733 square miles and extends from the northeastern shore of the San Francisco Bay easterly about 50 miles to San Joaquin County. The County is bordered on the south and west by Alameda County and on the north by the Suisun and San Pablo Bays. The western and northern shorelines are highly industrialized, while the interior sections are suburban/residential, commercial and light industrial. About 40 percent of the county is under the jurisdiction of 19 incorporated cities and towns, and large portions of the remaining unincorporated area are part of public park systems. Most of the population is consolidated along the major transportation corridors--Interstates 80 and 680, Highways 4 and 24, and the BART lines. Contra Costa County is also very diverse, with communities that range from small agricultural towns like Byron, with a population density of about 200 people per square mile, to urban population centers like Contra Costa Centre, a bustling transit village with a population density of 8,400 people per square mile. With its strategic location as The Capital of The Northern California Mega-RegionTM and easy access to suppliers and customers, Contra Costa County is a business destination full of opportunity. Demographic Highlights According to the 2022 State Department of Finance data 1,156,555 people live in Contra Costa County. 15% of Contra Costa’s population, 176,941 people, reside in the unincorporated areas of the county. The median age of Contra Costa County residents is 39 years old. Our population of seniors age 60 or older is expected to grow by approximately 47% between 2020 and 2050, making this age group our fastest growing. 66 4 44% of County residents are white, with significant proportions of Asian (16.5%) and African American (8%) people. The Census tracks Latinx ethnicity separately from other populations; in total, the Hispanic/Latino population makes up approximately 26% of the total population. Governance A five-member Board of Supervisors, each elected to four-year terms, serves as the legislative body of the County, which has a general law form of government. Also elected are the County Assessor, Auditor- Controller, Clerk-Recorder, District Attorney, Sheriff-Coroner and Treasurer-Tax Collector. The County Administrator, Monica Nino, is appointed by the Board and is responsible for running the day-to-day business of the County. 67 5 Contra Costa County Board of Supervisors: District 1: John M. Gioia District II: Candace Andersen District III: Diane Burgis District IV: Ken Carlson District V: Federal D. Glover 68 6 Legislative Platform Purpose The Legislative Platform establishes the priorities, principles, and policy statements of the Contra Costa County Board of Supervisors and establishes the basis for its advocacy efforts, alerting our legislative partners of the greatest needs of our residents and where we need additional help. The Platform also provides general direction to County departments and agencies, legislative advocates, delegation members, and the public on our positions on key policy matters that would impact the way the County does business. Throughout the legislative session, the County will review and take positions on various policy and regulatory proposals. When a recommended position is consistent with existing County policy, as adopted in the Platform, the CAO’s office or department staff will prepare a County position letter for signature by the Board Chair. Contra Costa County has also adopted a Delta Water Platform to identify and promote activities and policy positions that support the creation of a healthy Sacramento-San Joaquin Delta. Contra Costa County uses this Delta Water Platform to guide its actions and advocacy regarding the future of the Delta. Mission, Vision, and Values Contra Costa County has adopted the following Mission, Vision and Values statement: 69 7 FEDERAL FUNDING NEEDS: PROJECT SPECIFIC 1. Secure funding for the Army Corps’ annual maintenance dredging of the federal channels along the County’s borders that maintain the ship channel to the authorized depth of -35 feet. 2. Advocate for and support the San Francisco to Stockton Navigation Improvement Project that proposes to deepen the ship channel to realize transportation efficiencies. 3. Mount Diablo Mercury Mine. Support legislation in the Water Resources Development Act that would give authority to the Army Corps of Engineers to build remediation projects in the Remediation of Abandoned Mine Sites program. 4. Buchanan Field and Byron Airports: Secure funding for Master Plan/Business Plan Implementation. 70 8 Surface Transportation Funding Needs  Vasco Road Safety Improvements: Project components (barriers, shoulders, passing facilities) will eliminate cross median collisions, wildlife undercrossing/overcrossing will preserve migration patterns.  North Richmond Community Supportive Transportation Improvements: Alternate truck route/regulations, trail/school access improvements to address community safety, public health and livability needs, and general transportation improvements to support job growth and priority development area access.  Eastern Contra Costa Multi-use Trail Network: Active mode access improvements for planned and existing mass transit stations, schools, and activity centers.  Brentwood Intermodal Transit Center: Multimodal station access improvements and the extension of mass transit from the Antioch BART station.  Iron Horse Corridor Enhancement Program: Improvements to trail access (to/from activity center and other regional trails), additional facilities for different active modes, overcrossings, and at grade intersection improvements. 71 9  State Route 4 / Old River Bridge Study: The existing structure is narrow; improvements would address safety and traffic flow.  West Contra Costa High Capacity Transit: Implementation of the WCCTAC High Capacity Transit Study.  Kirker Pass Truck Climbing Lane (southbound) and Turn Channelization: Needed for improved traffic flow and safety.  Vasco Road – Byron Highway Connector: Connection between two major arterials improving connectivity while removing through/truck traffic from the Byron community. 72 10 FEDERAL FUNDING NEEDS: PROGRAM SPECIFIC 1. Housing: Support funding for economic development and affordable housing for local agencies engaged in building stronger, more economically viable communities. 2. Local Cost Share. Support legislation that would give the Army Corps of Engineers the authority to reduce the project cost share in disadvantaged communities to 10% local match. 3. Multimodal National Freight Network: Support increases in funding for National Freight Strategic Plan implementation specifically to fulfill the goals of the Northern Waterfront initiative and to address congestion in the I -680 Corridor. 4. Rail Safety: Support measures to enhance the safety of rail transportation of hazardous materials with an emphasis on: increased state oversight of railroad bridges; funding for first responder training; funding to improve rail safety and prevent rail trespass fatalities; funding to improve the rail system to address the impacts of Sea Level Rise; improved regulations for tank car safety standards for hazardous materials; funding for enforcement; data sharing requirements between state emergency managers, local responders and rail operators; support for improved partnerships between state and federal regulators; and addressing the enhanced hazard from incompatible hazardous materials being stored or transported in proximity to each other. 5. Rural Road Funding Program: Support the creation of a new program to modernize rural roads consistent with emerging safety, complete streets, active mode policies. 6. Stormwater Program Funding: Support additional funding through the EPA to enable compliance with the Clean Water Act. 73 11 7. Surface Transportation Program/Increases in Highway (road/rail) Bridge Funding: Consistent with the National Association of Counties (NACo) position, regulation changes are needed that allow for direct funding to qualified local jurisdictions to expedite economic benefits, increase purchasing power, and bolster travel, business and economic growth. 8. Transportation Funding for Disabled, Low-income, and Elderly Persons: Support increased capital and operations funding, in addition to funding and policy changes that would address local, state, and federally identified needs for coordination improvements. 9. Flood Risk and Water Supply Forecasting: Support coordination and funding for the Advanced Quantitative Precipitation Information (AQPI) radar system. https://psl.noaa.gov/aqpi/ 74 12 PRIORITY POLICY STATEMENTS Climate Change • SUPPORT funding and policy to implement the following:  Technologies that support the County’s climate goals, including battery energy storage and microgrids, solar and wind energy, electric vehicles, and electric vehicle charging infrastructure;  Energy efficiency programs that encourage whole house retrofits and address asthma triggers in the built environment;  Planning work for adapting to rising sea levels;  Planning and implementation of microgrids;  Active transportation and green infrastructure programs;  Job training for careers in clean energy, clean transportation, and green infrastructure. • SUPPORT legislative and administrative efforts that: address the impacts of climate change; support climate adaptation and resilience efforts; support the Green Business program; address the disproportionate impacts that some communities bear because they are located near sources of exposure such as large industrial facilities, freeways or transportation corridors and/or live in proximity to areas vulnerable to sea-level rise or inland flooding; reduce exposure to toxic air pollutants and reduce greenhouse gases; study and recognize the health impacts of global and regional climate change; and study the economic, workforce and social impacts of transitioning away from fossil fuels. • SUPPORT the concept of establishing a national price on carbon-based fuels to address the costs to society of emissions from those fuels. Criminal Justice and Mental Health • SUPPORT policies and approaches that would enhance the ability of county officials and our partners to prevent and treat mental health and substance use disorders, both in the community and within the confines of the criminal justice system. • SUPPORT policies and programs that divert non-violent individuals struggling with mental illness and/or substance use disorders from local jails into more appropriate treatment programs. • SUPPORT legislation and regulations that would amend the federal Medicaid Inmate Exclusion Policy (MIEP) and allow non-convicted individuals to have continued access to necessary treatment through federal health benefits such as Medicaid, Medicare, CHIP and VA health benefits. 75 13 The Delta • SUPPORT protection and restoration of a healthy sustainable Delta ecosystem including adequate water quality, inflow and outflow, and water supply, to support fisheries, wildlife and habitat in perpetuity and managing or eradicating invasive species. • SAFEGUARD Delta Counties’ responsibilities related to land use, water resources, flood management, tax revenues, public health and safety, economic development, agricultural stability, recreation, and environmental protection in any projects, policies, or operations. • SUPPORT rehabilitation, improvement, and maintenance of levees throughout the Delta. • SUPPORT the Delta pool, in which the common resource provides quality freshwater supply to all Delta users, requiring mutual responsibility to maintain, restore, and protect the common resource. • REPRESENT and include local government in any governance structures for the Delta. • OPPOSE isolated conveyance. Elections • SUPPORT policies that facilitate secure elections. • SUPPORT a consistent, predictable, and dedicated federal funding stream to assist counties with meeting the significant federal requirements imposed on local governments administering elections. • OPPOSE any legislation that imposes specific and impractical requirements regarding equipment, procedures, and personnel responsibilities for election administration. • OPPOSE any legislation that requires any specific methodologies for post-election audits. 76 14 • SUPPORT policies that value and fund the role and functions of the U.S. Election Assistance Commission (EAC). OPPOSE any legislation that seeks to create further federal certification processes in addition to EAC certification. Health Care • SUPPORT full funding of the Federal Medicaid program. OPPOSE federal efforts to reduce Medicaid funding or restrict access to Medicaid benefits and services. OPPOSE federal legislation and administrative efforts to privatize Medicaid and/or to impose work requirements as a condition of Medicaid (Medi-Cal) eligibility. • OPPOSE efforts to repeal the Affordable Care Act or to replace it with any proposals that represent significant, permanent structural alterations to current subsidized segments of the health care system. SUPPORT efforts to strengthen the ACA and expand eligibility, regardless of immigration status. • OPPOSE new block-granting proposals, harsh cuts, or proposals that will significantly and/or permanently shift the structure of health and human service funding and programming that would lead to the restriction or elimination of safety-net programs. • OPPOSE efforts to eliminate or reduce funding for essential public health services, inclusive of funding for immunization, HIV/Ryan White, Communicable Disease and Tuberculosis Control, Hansen’s Disease, Teen Pregnancy, Public Health Preparedness and Maternal Child Health Funding. • OPPOSE changes to Title X Family Planning Program, enacted in 1970, dedicated solely to providing individuals with comprehensive family planning and related preventive health services. • SUPPORT Medicaid (Medi-Cal) funding for same day mental health appointments. • SUPPORT reauthorization of funding for HIV/Ryan White Care, Maternal Child Health Funding including Maternal Infant Early Childhood Home Visiting (MIECHV), and CHIP (Children’s Health Insurance Program). • SUPPORT legislation and administrative changes that will enhance counties’ ability to provide comprehensive Behavioral Health Services. • PROTECT funding for core local public health and prevention efforts. • ADVOCATE for federal resources to address local pandemic response efforts, including vaccination efforts, that provide direct allocations to local governments to offset revenue losses and maximize local flexibility for use of such funds. 77 15 • SUPPORT legislation and administrative policy changes that will continue into the future the flexibilities in use of Telehealth services. Homeless Services • SUPPORT the continuation and expansion of funding for fair and equitable affordable housing, homelessness assistance and prevention programs, and strategic local and regional responses to homelessness that promote transparency, equity and data informed decision-making and enhance access to resources that support the County’s compliance with federal and state anti- homelessness and anti-poverty initiatives and requirements. • SUPPORT increasing and maintaining affordable housing stock and housing stability by way of supporting funding, policy, or regulations that promote fair and equitable housing for the most vulnerable low, very low, and extremely low-income households, including the production and preservation of various housing types and the protection of stable housing for vulnerable persons experiencing homelessness. • SUPPORT removal of barriers in planning processes, regulatory frameworks, funding programs, healthcare access, and policy to promote increased equity, innovation, transparency and data- driven approaches to addressing homelessness and housing affordability, with the goals of increasing affordable housing and eliminating discrimination and disparate treatment of individuals based on race, ethnicity, gender, gender identify, sexual orientation, ability, housing status, income, or other household characteristics. • SUPPORT wide variety of housing types and formats, for all persons regardless of personal characteristic or status, and actively promote the equitable distribution and access to affordable units and holistic services, in line with evidence-based practices, to ensure the elimination of discrimination and disparate treatment of individuals, particularly vulnerable individuals and those from communities of color. • SUPPORT increasing funding, policy, and regulations for disaster planning and relief efforts that allow the County and the County’s homeless system to plan for and equitably respond to disasters and pandemics, including for purposes of supporting the health and safety of providers and persons experiencing homelessness, particularly the most vulnerable and those from communities of color. 78 16 Human Services Older Adults and Aging • OPPOSE elimination or cuts to funding for older adult programs and services. SUPPORT funding for programs that support older adults, veterans, disabled individuals, the homeless, and low-income individuals, especially the most vulnerable in racial minority communities. • SUPPORT funding and policies to provide older adults with holistic (culturally appropriate) services and treatment modalities that support well-being, health, and mental health. • SUPPORT health insurance programs that maintain or expand current services and protections under Medicare, Medicaid and the Affordable Care Act (ACA), including – but not limited to – protections for preexisting conditions. • SUPPORT funding to maintain or increase Social Security, SSI and Federal Disability programs. Safety Net Programs • SUPPORT reinstatement of the Child Tax Credit. • SUPPORT reevaluation and updates to the Federal Poverty Guidelines. • SUPPORT funding for entitlement programs that help low-income families, especially the ethnic minority communities, to reach self-sufficiency. This includes efforts to expand eligibility to the Earned Income Tax Credit (EITC) program to all tax filers regardless of immigration status. • SUPPORT funding for retroactive and future COVID-19 related expenses at the state, and ideally, county level, with flexibility to address county-specific needs and ensure protections and the access to treatment modalities in the racial and ethnic communities disproportionately impacted. • SUPPORT the extension of flexibilities and waivers for benefit program administration. • OPPOSE actions that would result in cost shifts on federal entitlement programs to state and localities or which would result in greater dependency on county-funded programs. • SUPPORT efforts to increase Supplemental Nutrition Assistance Program (SNAP) benefit amounts to better meet recipients’ nutritional needs, adjust SNAP eligibility requirements to include populations with significant need, and remove current federal barriers that prevent some nutrition programs from employing EBT technology. • OPPOSE efforts to eliminate states’ flexibility in taking high cost of living into eligibility determinations; OPPOSE restoration of asset tests for SNAP. 79 17 • OPPOSE funding cuts or block granting benefit programs, including SNAP and Medicaid. • SUPPORT efforts that allow people to apply for benefits while incarcerated. OPPOSE efforts to limit eligibility for individuals with certain criminal records or to impose work requirements on them for benefit programs, including SNAP and Medicaid. • SUPPORT efforts to eliminate time limits for Temporary Assistance for Needy Families (TANF) recipients and provide families who are working with modest cash assistance grants to supplement low earnings. • SUPPORT reauthorization and increase the TANF Block Grant. OPPOSE changes to TANF that will require counties to invest new funds to administer the program. • OPPOSE efforts to restrict allowable state maintenance-of-effort expenditures and end federal efforts to impose a national TANF error rate. • SUPPORT federal and state financial assistance to aid county and local government efforts to meet unfunded federal mandates. • OPPOSE elimination and reduction in funding for programs that help low- income families pay their heating bills and reduce energy bills by making homes more energy efficient, including LIHEAP and Weatherization Assistance Program (WAP). Child Welfare Services • SUPPORT legislation that increases and protects the safety and well-being of children at risk of abuse, neglect and exploitation. • OPPOSE the elimination or cuts to funding streams for child welfare programs. • SUPPORT increasing prevention dollars to help children who are victims of abuse, neglect and exploitation remain safely in their own homes or family- based settings and provide support to their caregivers. • SUPPORT efforts to provide states with financial incentives, as opposed to monetary penalties, and minimize the significant administrative burden associated with child welfare review processes. Early Childhood Development • SUPPORT efforts that ensure all children have access to quality care by expanding high quality learning opportunities for children, expanding subsidized childcare and tax credits, increasing new childcare slots, increasing access to home visiting programs, and making 80 18 funding available for First 5 commissions, increasing wages and supporting infrastructure of ECE programs. • SUPPORT policies that increase or align eligibility guidelines to ensure more access of services for low income working families to programs such as Head Start. • OPPOSE actions that would reduce funding for early childhood education, including Head Start and Early Head Start programs. • SUPPORT funding and initiatives to support children’s mental health and studies on the long-term impacts of COVID-19 on the physical and mental health of adults and children Immigration, Inclusion, and Racial and Ethnic Equity • OPPOSE actions to repeal DACA (Deferred Action for Childhood Arrivals) as well as legislation and administrative efforts that negatively target immigrants. • OPPOSE actions which discourage or prevent immigrant populations from accessing public benefits and housing, including any negative changes to the Public Charge Final Rule published in September 2022. • SUPPORT the inclusion of historically marginalized communities in the development of housing, workforce, and health policies. • SUPPORT legislation and administrative actions that address inequities in housing, health (including mental health), education, economic development, reentry, and criminal justice. Violence Prevention • SUPPORT efforts to prevent, interrupt and end gun violence, child abuse, domestic violence, sexual assault, elder abuse and human trafficking in all its forms. • OPPOSE any elimination and cuts to grant programs for violence prevention, human/labor trafficking, victim services, and federal grants related to the Violence Against Women Act. • SUPPORT efforts that increase access to cultural responsiveness and language support for victims of crime. • SUPPORT efforts to protect housing access and employment rights for victims of harassment and survivors of interpersonal violence. • SUPPORT programs and actions that address suicide, injury and violence prevention. • SUPPORT efforts aimed at reducing health disparities and inequities associated with violence against women, communities of color, and the LGBTQ+ community. 81 19 • SUPPORT increased funding for Lethality Assessment Protocols (LAP) and reallocation strategies to support other prevention programs and social services. Workforce Development • SUPPORT policies that meet the needs of serving businesses, workers, job seekers, and youth under the Workforce Innovation & Opportunity Act (WIOA) that preserve local decision-making relative to spending, direction of work, and other functions of local workforce boards. • SUPPORT establishing a higher minimum wage. • SUPPORT additional funding for WIOA programs and activities including education, training, apprenticeships, job seeker support, and job placements. SUPPORT additional funding for racial-ethnic minority communities impacted by COVID job loss and displacement. • SUPPORT policies that increase access to training and education for social workers and staff in Aging, including programs that assist students in obtaining a social work degree. • SUPPORT policies that drive innovation in training and apprenticeships for jobs of the future and expansion of equitable economic opportunity. • SUPPORT policies that provide greater access for people with disabilities to participate in programs for training, education, upskilling, and job seeking. Land Use • SUPPORT legislative efforts to evaluate, clean up and redevelop contaminated sites. Library Services • SUPPORT funding for the Institute of Museum and Library Services (IMLS), the primary source of federal support for the nation's approximately 120,000 libraries and 35,000 museums and related organizations. • SUPPORT the reauthorization and funding for the Library Services and Technology Act (LSTA) including the Museum and Library Services Act. • SUPPORT federal funding for library renovation and construction projects. 82 20 Natural Resources/Permit Streamlining • SUPPORT locally-controlled resource permitting to streamline economic development activities and conserve and recover species and the habitats upon which they depend, natural resources, watersheds and open space. Pipeline Safety • SUPPORT legislative efforts that increase the safety of the shipment of hazardous materials by pipeline through better monitoring, technical seismic vulnerability studies, leak detection, operational practices and equipment. Telecommunications and Broadband • SUPPORT the expansion of broadband (high speed internet service) and the deployment of emergency technologies, such as small cell 5G, to drive economic development and job opportunities, support county service delivery, and improve health, education and public safety outcomes for residents. • SUPPORT the restoration of net neutrality to ensure open and nondiscriminatory access to online information. • SUPPORT preservation of local government ownership and control of the local public rights-of-way and ensure reasonable compensation for their use. • OPPOSE Federal Communications Commission (FCC) rulemaking that would reduce franchise fee obligations which fund community television operations and the General Fund. • ENSURE nondiscriminatory treatment of Public, Educational and Government (PEG) channels by cable system operators. • SUPPORT continued funding for PEG channels. • SUPPORT local decision-making and accountability of local elected officials and OPPOSE any actions that would preempt or limit the zoning and siting authority of local governments. • SUPPORT extension of Affordable Connectivity Program (ACP) that provides income-eligible individuals and families discounts to internet service and computer equipment. SUPPORT funding for outreach to create awareness of ACP and other opportunities for increased digital access. Transportation, Mobility Management and Coordination • SUPPORT and seek opportunities to streamline the regulatory process as well as encourage the development of regulations that are appropriate and flexible. 83 21 • SUPPORT policies, programs and funding increases that enable new technologies, practices, and services to improve mobility to vulnerable populations. • SUPPORT legislative efforts to increase and improve waterborne transportation of goods when it increases safety. Veterans • SUPPORT legislation to increase availability, accessibility, and utilization of Veterans Benefits. • SUPPORT legislation to provide America’s veterans organizations with resources to make necessary repairs to or replacement of their meeting halls and facilities. • SUPPORT legislation that enhances health care/mental health care in support of veterans. • SUPPORT legislation that would focus on getting homeless veterans off the street and into housing. • SUPPORT legislative efforts to advance the exoneration of the Port Chicago 50. Waste Management • SUPPORT legislation that protects human health and the environment from exposure to hazardous materials and hazardous wastes. • SUPPORT legislative efforts that establish producer responsibility for management of products at the end of their useful life including pharmaceuticals, batteries, sharps, and veterinary medicine. • SUPPORT legislative efforts that reduce the quantity of harmful pharmaceuticals (including veterinary medicine) that ultimately enter wastewater treatment facilities, bodies of water, and landfills. 84 CONTRA COSTA COUNTY Staff Report 1025 ESCOBAR STREET MARTINEZ, CA 94553 File #:23-1247 Agenda Date:12/18/2023 Agenda #:8. LEGISLATION COMMITTEE Meeting Date: December 18, 2023 Subject:FY 24-25 State Budget Update Submitted For: Legislation Committee Department: County Administration Referral No: Referral Name: State Budget Presenter: Michelle Rubalcava & Geoff Neill, Nielsen Merksamer Contact: L. DeLaney, 925-655-2057 Referral History: The Legislation Committee regularly receives reports on the State Budget and considers its impacts on County revenues and operations. Referral Update: On December 8, 2023, the Legislative Analyst’s Office (LAO) released their annual report on the state’s budget condition, 2024-25 Budget: California’s Fiscal Outlook. (Attachment A) At this time, the LAO forecasts a state budget deficit of $68 billion in fiscal year 2024-25 due mostly to the net effect of unexpected revenue changes in 2022-23 and 2023-24. The Fiscal Outlook details the perceived economic weaknesses and forecasted revenue changes that resulted in the anticipated state budget shortfall. The 2024-25 Fiscal Outlook also includes the LAO’s assumptions about the state’s economy for fiscal years 2024- 25 through 2027-28 and how the state’s economy affects the state’s annual revenues and expenditures. The LAO is the California Legislature’s nonpartisan fiscal and policy advisor. The LAO’s annual Fiscal Outlook publication provides an independent assessment of the California state budget condition for the upcoming fiscal year. The publication also includes a forecast of the state’s longer-term condition, typically a three-year period following the upcoming fiscal year. In a letter from the Department of Finance issued on December 13, the Department directed agency secretaries, department directors and other officials to limit spending and "strongly encouraged" state constitutional officers to do the same in their offices. The letter was sent under the subject line "Current Year Expenditure Freeze" but made no mention of a hiring freeze. It was sent to agency secretaries, department directors, and other staff at state departments - including budget and accounting officers, human resources staff, and business officers. Governor Newsom will announce his proposed budget for 2024-25 along with the state’s updated revenue forecast by January 10, 2024. CONTRA COSTA COUNTY Printed on 12/14/2023Page 1 of 2 powered by Legistar™85 File #:23-1247 Agenda Date:12/18/2023 Agenda #:8. New Legislative Leadership and Committee Chairs Assembly: As anticipated, on November 21, Assembly Speaker Robert Rivas announced a number of appointments and changes to Assembly leadership, policy committees, and budget committees assignments. Of note to Contra Costa County, in particular, is the appointment of Assembly Member Buffy Wicks as Chair of the Assembly Appropriations Committee, the appointment of Assembly Member Rebecca Bauer-Kahan as Chair of the Assembly Privacy and Consumer Protection Committee, and the appointment of Assembly Member Lori Wilson as Chair of the Assembly Transportation Committee. The following changes are of note to the health and human services departments: -Budget Committee: Assemblymember Jesse Gabriel has been appointed to replace Assemblymember Phil Ting as Chair of the Assembly Budget Committee. -Assembly Budget Subcommittee No. 1 on Health: Assemblymember Akilah Weber has been appointed Chair. -NEW Assembly Budget Subcommittee No. 2 on Human Services: Assemblymember Corey Jackson has been appointed Chair as this newly created budget subcommittee, which was previously combined with Budget Subcommittee No. 1 on Health. -Health Committee: Assemblymember Mia Bonta has been appointed to replace Assemblymember Jim Wood as Chair of the policy committee. -Human Services Committee: Assemblymember Alex Lee has been appointed to replace Assemblymember Corey Jackson as Chair of the policy committee. Senate: In August, Senate President pro Tempore Toni Atkins announced that Senator Mike McGuire had been selected by the Senate Democratic Caucus as the next Pro Tem Designee. Although the original announcement did not include a transition date, it has since been determined that Senator McGuire will be sworn in as the new Senate President pro Tempore on February 5, 2024. Recommendation(s)/Next Step(s):RECEIVE the report and provide direction/input to staff and the County’s lobbyists, as needed. Fiscal Impact (if any): The fiscal impact of the State’s FY 24-25 Budget is as yet unknown. CONTRA COSTA COUNTY Printed on 12/14/2023Page 2 of 2 powered by Legistar™86 www.lao.ca.gov 2024-25 BUDGET 1 GABRIEL PETEK LEGISLATIVE ANALYST DECEMBER 2023 The 2024-25 Budget: California’s Fiscal Outlook 87 LEGISLATIVE ANALYST’S OFFICE 2024-25 BUDGET 2 88 www.lao.ca.gov 2024-25 BUDGET 3 Executive Summary California Faces a $68 Billion Deficit. Largely as a result of a severe revenue decline in 2022-23, the state faces a serious budget deficit. Specifically, under the state’s current law and policy, we estimate the Legislature will need to solve a budget problem of $68 billion in the upcoming budget process. Unprecedented Prior-Year Revenue Shortfall Creates Unique Challenges. Typically, the budget process does not involve large changes in revenue in the prior year (in this case, 2022-23). This is because prior-year taxes usually have been filed and associated revenues collected. Due to the state conforming to federal tax filing extensions, however, the Legislature is gaining a complete picture of 2022-23 tax collections after the fiscal year has already ended. Specifically, we estimate that 2022-23 revenue will be $26 billion below budget act estimates. This creates unique and difficult challenges—including limiting the Legislature’s options for addressing the budget problem. Legislature Has Multiple Tools Available to Address Budget Problem. While addressing a deficit of this scope will be challenging, the Legislature has a number of options available to do so. In particular, the state has nearly $24 billion in reserves to address the budget problem. In addition, there are options to reduce spending on schools and community colleges that could address nearly $17 billion of the budget problem. Further adjustments to other areas of the budget, such as reductions to one-time spending, could address at least an additional $10 billion or so. These options and some others, like cost shifts, would allow the Legislature to solve most of the deficit largely without impacting the state’s core ongoing service level. Legislature Will Have Fewer Options to Address Multiyear Deficits in the Coming Years. Given the state faces a serious budget problem, using general purpose reserves this year is merited. That said, we suggest the Legislature exercise some caution when deploying tools like reserves and cost shifts. The state’s reserves are unlikely to be sufficient to cover the state’s multiyear deficits—which average $30 billion per year under our estimates. These deficits likely necessitate ongoing spending reductions, revenue increases, or both. As a result, preserving a substantial portion—potentially up to half—of reserves would provide a helpful cushion in light of the anticipated shortfalls that lie ahead. 89 LEGISLATIVE ANALYST’S OFFICE 2024-25 BUDGET 4 90 www.lao.ca.gov 2024-25 BUDGET 5 INTRODUCTION Each year, our office publishes the Fiscal Outlook in anticipation of the upcoming budget season. The goal of this report is to give the Legislature our independent estimates and analysis of the state’s budget condition as lawmakers begin planning the 2024-25 budget. This year, this report has three key takeaways: • California Faces a Serious Deficit. Largely as a result of a severe revenue decline in 2022-23, the state faces a serious budget deficit. Specifically, under the state’s current law and policy, we estimate the Legislature will need to solve a budget problem of $68 billion in the coming budget process. • Unprecedented Prior-Year Revenue Shortfall. Typically, the budget process does not involve large changes in revenue in the prior year (in this case, 2022-23). This is because prior-year taxes usually have been filed and associated revenues collected. Due to the state conforming to federal tax filing extensions, however, the Legislature is only gaining a complete picture of 2022-23 tax collections after the fiscal year has already ended. Specifically, we estimate that 2022-23 revenue will be $26 billion below budget act estimates. • Legislature Has Multiple Tools Available to Address Budget Problem. While addressing a deficit of this scope will be challenging, the Legislature has a number of options available to do so. In particular, the Legislature has reserves to withdraw, one-time spending to pull back, and alternative approaches for school funding to consider. These options, along with some others, would allow the Legislature to solve most of the deficit largely without impacting the state’s core ongoing service level. CALIFORNIA ENTERED A DOWNTURN LAST YEAR Higher Borrowing Costs and Reduced Investment Have Cooled California’s Economy. In an effort to cool an overheated U.S. economy, the Federal Reserve has taken actions over the last two years to make borrowing more expensive and reduce the amount of money available for investment. This has slowed economic activity in a number of ways. For example, home sales are down by about half, largely because the monthly mortgage to purchase a typical California home has gone from $3,500 to $5,400. Some effects of the Federal Reserve’s actions have hit segments of the economy that have an outsized importance to California. In particular, investment in California startups and technology companies is especially sensitive to financial conditions and, as a result, has dropped significantly. For example, the number of California companies that went public (sold stock to public investors for the first time) in 2022 and 2023 is down over 80 percent from 2021. As a result, California businesses have had much less funding available to expand operations or hire new workers. State’s Economy Entered a Downturn in 2022. These mounting economic headwinds have pushed the state’s economy into a downturn. The number of unemployed workers in California has risen nearly 200,000 since the summer of 2022. This has resulted in a jump in the state’s unemployment rate from 3.8 percent to 4.8 percent, as Figure 1 on the next page shows. Similarly, inflation-adjusted incomes posted five straight quarters of year-over-year declines from the first quarter of 2022 to the first quarter 2023. Recent Revenue Collections Show Impact of Economic Downturn. With the state’s conformity to federal actions postponing deadlines for tax payments on investment and business income for much of the past year, the state adopted the 2023-24 budget without a clear picture of the impact 91 LEGISLATIVE ANALYST’S OFFICE 2024-25 BUDGET 6 of recent economic weakness on state revenues. Regardless, there have been signs of revenue weakness over the past year. The portion of income taxes collected directly from workers’ paychecks was down 2 percent over the last twelve months compared to the preceding year. Sales tax collections have been essentially flat, despite above-average growth in consumer prices. The full extent of revenue weakness, however, came into full focus recently with the arrival of the postponed tax payments. With the deadline passed, collections data now show a severe revenue decline, with total income tax collections down 25 percent in 2022-23. This decline is similar to those seen during the Great Recession and dot-com bust. While the slowdown of investment in California companies and corresponding broader economic weakness likely were primary drivers of this decline, another important factor was financial market distress in 2022. Overall, the experience of the last few years suggests California’s economy and revenues are uniquely sensitive to Federal Reserve actions. Significant Risk That Weakness Could Persist Into Next Year. Whether the recent weakness will continue is difficult to say. However, the odds do not appear to be in the state’s favor. Past downturns similar to this recent episode have tended to be followed by additional weakness. For instance, as Figure 1 shows, an increase in the unemployment rate similar to the recent period has consistently been followed by an extended period of elevated unemployment. Similarly, in the past, years with large revenue declines typically have been followed by an additional year of lackluster revenue performance. History does not always repeat itself and might not this time. Nonetheless, there is a significant risk the current weakness could continue into next year. Sahm Rule Triggered On Sahm Recession Indicator signals the start of a recession when the three-month moving average of the unemployment rate rises by 0.5 percentage points or more relative to its low during the previous 12 months. Figure 1 Uptick in Unemployment Rate Triggered a Recession Indicator Federal policymakers use the Sahm Rule to track the start of recessions in real time. The Sahm Rule has accurately indicated—with no false positives—the prior six U.S. recessions as well as California downturns. 2 4 6 8 10 12 14 16% 1980 1985 1990 1995 2000 2005 2010 2015 2020 92 www.lao.ca.gov 2024-25 BUDGET 7 Revenue Outlook Reflects Risk of Continued Weakness. Reflecting the risk of continued weakness, our revenue outlook—shown in Figure 2—anticipates collections will be nearly flat in 2023-24, after falling 20 percent in 2022-23. Our outlook then has revenue growth returning in 2024-25 and beyond. Based on this trajectory, our revenue outlook expects collections to come in $58 billion below budget act assumptions across 2022-23 through 2024-25, with about half of this difference ($26 billion) attributable to 2022-23. As always, this forecast is highly uncertain. It is entirely possible that revenues could end up $15 billion higher or lower than our forecast for 2023-24 and $30 billion higher or lower for 2024-25. THE BUDGET PROBLEM Budget Year In this section, we describe our estimates of California’s budget condition for the upcoming fiscal year: 2024-25. We expect the state will face a serious deficit, also known as a budget problem. A budget problem occurs when resources for the upcoming budget are insufficient to cover the costs of currently authorized services. State Faces a $68 Billion Deficit. Under current law and policy, we estimate the state faces a budget problem of $68 billion. Figure 3 reflects the budget problem in the 2024-25 ending balance in the Special Fund for Economic Uncertainties. The budget problem is the net effect of the following factors: • State Anticipated a Deficit of Around $14 Billion. The 2023-24 Budget Act planned for a spending level in 2024-25 that was higher than expected revenue collections. Put another way, last year’s budget planned for a deficit in 2024-25. That anticipated deficit of $14 billion is the starting place for the upcoming budget process and therefore adds to the calculation of the budget problem. Figure 2 LAO Revenue Outlook Total Revenue Excluding Federal Cost Recovery (In Billions) 160 180 200 220 240 260 $280 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 The shaded area shows how far revenues could deviate from our main forecast. Outcomes beyond the shaded area are possible, but revenues most likely will fall in the shaded area. Figure 3 General Fund Condition Under Fiscal Outlook (In Millions) 2022-23 2023-24 2024-25 Prior-year fund balance $52,561 $167 -$32,792 Revenues and transfers 179,961 189,062 193,255 Expenditures 232,355 222,021 222,782 Ending Fund Balance $167 -$32,792 -$62,318 Encumbrances $5,272 $5,272 $5,272 SFEU balance -$5,105 -$38,064 -$67,590 Reserves BSA balance $21,515 $22,074 $22,809 Safety Net Reserve 900 900 900 SFEU = Special Fund for Economic Uncertainties and BSA = Budget Stabilization Account. 93 LEGISLATIVE ANALYST’S OFFICE 2024-25 BUDGET 8 • Revenues Are Lower Than Budget Act Projections by $58 Billion. As described earlier, collections data to date show a severe revenue decline, with total income tax collections down 25 percent in 2022-23. Reflecting the risk of continued economic weakness, our forecast anticipates flat revenue growth for 2023-24, with positive growth returning in 2024-25 and beyond. Based on this trajectory, our revenue outlook expects collections to come in $58 billion below budget act assumptions across the budget window. This is the major driver of the budget problem. • School and Community College Spending Is Lower by More Than $4 Billion. Proposition 98 (1988) establishes a minimum annual funding requirement for schools and community colleges, met with state General Fund and local property tax revenue. When General Fund revenue declines, the minimum requirement usually declines in tandem. Most school spending, however, does not automatically decrease when the minimum requirement drops in the current or prior year. As described in the nearby box, the state could decide to reduce Proposition 98 General Fund spending by nearly $21 billion under our outlook, but the automatic reduction is about $4 billion. The budget problem is therefore lower by about $4 billion in our deficit calculation. • Other Spending Is Lower by $4 Billion. We estimate spending across the rest of the budget will be lower than the administration’s June projections by about $4 billion over the budget window. The major driver of this difference is spending on health and human services (HHS) programs, where our estimates are lower by about $3 billion. We do not have department- or program-level detail on the administration’s HHS spending forecast, so we cannot give more detail about the nature of this difference. This lowers the budget problem by a like amount. • Entering Fund Balance Is Lower by $3 Billion. Budgetary changes to years before the budget window are reflected in the 2022-23 entering fund balance. (These changes occur due to accounting rules, which sometimes result in the state “accruing” or attributing revenues or spending to earlier years, based on when the underlying economic activity is estimated to have occurred.) Our estimate of the budget problem reflects a $3 billion downward adjustment in the entering fund balance as a result of lower revenues. This adds to the budget problem. • Reserve Deposits Are Higher by $400 Million. Proposition 2 (2014) requires the state to set aside minimum amounts to deposit into its reserve, pay down debts, and (under certain conditions) spend money on infrastructure. These requirements are determined by a set of relatively complex formulas. Ordinarily, the required set asides increase when revenues increase and drop when revenues decrease. This year, however, due to a variety of idiosyncratic issues, under current law and policy, the state’s reserve requirements would increase in response to our revenue forecast. The nearby box describes the reasons why. As we discuss later, in response to a budget emergency, the Legislature and Governor can decide to suspend these deposits and/or withdraw funds from the reserve. Multiyear In this section, we describe our estimates of California’s budget condition for the multiyear period through 2027-28. This projection is based on our main revenue forecast, as shown in Figure 2, and spending forecast, as shown in Appendix 2. State Faces Significant Operating Deficits. Figure 4 on page 10, shows our projections of the multiyear condition of the budget under our main revenue forecast. As the figure shows, in addition to the $68 billion budget problem we have identified for 2024-25, the state faces annual operating deficits of around $30 billion per year. 94 www.lao.ca.gov 2024-25 BUDGET 9 ONLY MODEST AUTOMATIC SPENDING CHANGES IN RESPONSE TO LOWER REVENUES State Has Two Constitutional Reserves with Formula-Driven Requirements. Proposition 2 (2014) governs deposits into (and withdrawals from) the state’s two constitutional reserves: the Budget Stabilization Account (BSA), a general purpose reserve, and the Proposition 98 Reserve, which is dedicated to schools and community colleges. In both cases, reserve requirements tend to go up when revenues increase, particularly when capital gains taxes rise, and vice versa. These requirements are automatically adjusted in response to changes in revenue estimates and both reserves have maximum thresholds. In the case of the BSA, requirements above the maximum threshold must be spent on infrastructure instead. In the case of the Proposition 98 Reserve, reserve withdrawals are sometimes required, especially in tighter fiscal times. Proposition 2 This Year, Most Declines in BSA-Related Requirements Do Not Impact Budget’s Bottom Line. Typically, drops in revenue would result in lower BSA and infrastructure requirements. Under our estimates, the state’s required payments on infrastructure decline by billions of dollars, but because of the way these payments are scored, these changes have no impact on the budget’s bottom line. In addition, BSA deposits increase largely because of the significant downward revenue adjustment to 2022-23. The large downward revenue adjustment means the state must continue to make reserve deposits to reach the 10 percent threshold (under our understanding of the administration’s interpretation of Proposition 2) after 2022-23. Proposition 98 Proposition 98 Sets Minimum Level of School Funding. Proposition 98 (1988) amended the California Constitution to establish a minimum annual funding requirement for schools and community colleges. The state calculates the minimum requirement using formulas that account for various inputs, including General Fund revenue. The state meets the requirement through a combination of General Fund spending and local property tax revenue. The state recalculates the minimum requirement at the end of the year based on revised estimates of these inputs, followed by a second recalculation at the end of the following year. When the minimum requirement decreases, the state can leave school spending at the level it initially approved in the budget or reduce spending to the lower requirement. Estimate of Minimum General Fund Spending Requirement Under Proposition 98 Is Down $21 Billion… Under our outlook, the decline in General Fund revenue reduces the minimum required General Fund spending under Proposition 98 by $21 billion from 2022-23 through 2024-25, which represents a reduction of nearly 38 cents for each dollar of lower revenue. This reduction includes $9.6 billion in 2022-23, $7 billion in 2023-24, and $4.4 billion in 2024-25. The magnitude of the downward revision in 2022-23 is unprecedented for a fiscal year that is already over. Although the state has experienced large swings in the minimum requirement for fiscal years that are currently in progress, revisions to prior fiscal years are typically minor and rarely exceed a few hundreds of millions of dollars. … But Automatic Reduction in School Spending Is Only $4.3 Billion. Although the constitutional minimum funding requirement is down $21 billion, the automatic reduction in school spending over the period is only $4.3 billion. Most of this reduction relates to the automatic elimination of required deposits into the Proposition 98 Reserve in 2022-23 and 2023-24. After accounting for the effects of lower reserve deposits—along with several smaller adjustments—General Fund spending over the three years is down $4.3 billion compared with the June 2023 estimates. This reduction leaves school spending nearly $16.7 billion above the levels that would exist if the state only funded at the constitutional minimum each year of the period. 95 LEGISLATIVE ANALYST’S OFFICE 2024-25 BUDGET 10 These operating deficits represent additional budget problems the Legislature would need to address in the coming years, either by reducing spending, increasing revenues, shifting costs, or using reserves. Although highly uncertain, our projection of the state’s deficits would accumulate to $155 billion across the forecast window, which is significantly more than the amount of reserves the state has available (about $24 billion). Extent of Future Deficits Depends on Legislative Decisions This Year. The multiyear deficits shown in Figure 4 are subject to substantial uncertainty. First, revenue estimates can easily differ from our estimates by tens of billions of dollars in either direction. Second, these deficits are based on our assessment of the costs of the state’s programs under current law and policy. The state’s actual costs will be higher or lower depending on decisions made by the Legislature, including, for example, about how to fund schools and community colleges in 2022-23. SOLVING THE BUDGET PROBLEM State Has Various Options to Address the Budget Problem. While addressing a deficit of $68 billion will be challenging, the Legislature has a number of options available to do so. In this section, we describe some of the key ones. (Some of the solutions here assume a budget emergency is declared.) These solutions include: • Withdraw Reserves. Under our estimates, the state would have about $24 billion in reserves to help address the budget problem (assuming a budget emergency is declared). • Reduce Proposition 98 Spending. Over the three-year period, the state could reduce General Fund costs by $16.7 billion if it were to lower school spending to the constitutional minimum allowed under Proposition 98. One option for implementing some of this reduction would be to use the Proposition 98 Reserve to cover school-related costs that exceed the Proposition 98 minimum requirement in 2022-23. • Reduce Other One-Time Spending. We estimate the state has at least $8 billion in one-time and temporary spending in 2024-25 that could be pulled back to help address the budget problem. In addition, there are potentially billions of dollars more in spending from prior years that has been committed but not yet distributed, and therefore also could be reduced to help address the budget problem. • Identify Other Solutions. Even after using most or all of these solutions, the Legislature still would need to find more solutions to address the remainder of the budget problem. Other options include additional cost shifts (such as more loans from special funds), revenue solutions, and ongoing spending reductions. Figure 4 State Faces Serious Budget Problem in 2024-25, and Significant Operating Deficits in Future Years (In Billions) -70 -60 -50 -40 -30 -20 -$10 2024-25 2025-26 2026-27 2027-28 Budget Problem Operating Deficits 96 www.lao.ca.gov 2024-25 BUDGET 11 Withdraw Reserves State Could Withdraw Up to $24 Billion in General Purpose Reserves. As shown in Figure 3, the state has $23 billion in the BSA under our estimates, plus about $1 billion in the Safety Net Reserve, to address the budget problem. The Safety Net Reserve is available to fund program costs in HHS programs, like Medi-Cal, while the BSA can only be accessed in a budget emergency, as described below. Budget Emergency Available Under Our Estimates. The Legislature can only suspend mandatory deposits or make withdrawals from either of its two constitutional reserves—the BSA and the Proposition 98 Reserve—if the Governor declares a budget emergency. The Governor may declare a budget emergency in two cases: (1) if estimated resources in the current or upcoming fiscal year are insufficient to keep spending at the level of the highest of the prior three budgets, adjusted for inflation and population (a “fiscal budget emergency”), or (2) in response to a natural or man-made disaster. Under our forecast, a fiscal emergency would be available both in 2023-24 and 2024-25. In the case of a fiscal budget emergency, the Legislature only can withdraw the lesser of: (1) the amount of the budget emergency, or (2) 50 percent of the BSA balance (in each year). As of this writing, the Governor has not called a fiscal budget emergency for 2023-24 or 2024-25. Reduce Proposition 98 Spending Spending Reductions Would Help Balance the Budget but Involve Trade-Offs. If the Legislature reduced school spending to the constitutional minimum allowed by Proposition 98, it would address up to $16.7 billion of the budget problem. To obtain these savings, the state would have to reduce spending it previously approved in 2022-23 and 2023-24. In previous downturns, the state relied heavily on two main approaches for implementing such reductions: (1) across-the-board reductions to per-pupil allocations and (2) payment deferrals. These options, however, tend to be disruptive for school operations, particularly when the state announces them on short notice. In addition, the state’s options for reductions in 2022-23 are relatively limited because the state has allocated most of the funding attributable to the prior year already. Before resorting to cuts or deferrals, however, the state could reduce spending in other ways that would be less disruptive for schools. Proposition 98 Reserve Could Cover Spending Above the Minimum Requirement in 2022-23. Based on deposits the state made in 2020-21 and 2021-22, the Proposition 98 Reserve currently holds a balance of $8.1 billion. (This amount excludes the additional deposits the state had anticipated making in 2022-23 and 2023-24 prior to our lower revenue estimates.) The state could use up to $7.7 billion of this balance to cover school spending that exceeds the Proposition 98 minimum requirement in 2022-23. Using the Proposition 98 Reserve in this way would allow the state to lower General Fund spending to the constitutional minimum level in the prior year without reducing the funding allocations it previously approved. From an accounting perspective, Proposition 98 Reserve withdrawals also do not count as spending for the purpose of determining the minimum funding requirement in future years. This means using the Proposition 98 Reserve for 2022-23 also would reduce the constitutional minimum requirements in 2023-24 and 2024-25. (The formulas governing the Proposition 98 Reserve would require the state to withdraw the remaining amount in the reserve— about $450 million—in 2023-24.) State Could Make Reductions to Programs With Unallocated Funds. Although the Proposition 98 Reserve could allow the state to reduce General Fund spending with minimal disruption to school programs, the reserve balance is not large enough to obtain $16.7 billion in savings by itself. If the state wanted to obtain the maximum possible savings, it would need to make additional reductions. One option is to reduce program funding that has not yet been allocated to schools. For example, the state previously approved $1.1 billion for grants to community schools that count as spending in 2022-23 but have not yet been awarded. (This funding is in addition to the roughly $3 billion in funding for community schools that the state approved prior to 2022-23.) 97 LEGISLATIVE ANALYST’S OFFICE 2024-25 BUDGET 12 In addition, several hundreds of millions of dollars in State Preschool funding provided in 2022-23 and 2023-24 is currently not obligated for any specific purpose. Over the coming months, the state likely will be able to identify additional grants and programs with unspent funds. Reducing grants that have not yet been allocated to schools could allow the state to reduce General Fund spending while minimizing reductions to funding that schools were already planning to receive. As we explain in the Appendix, if the Legislature took these actions, Proposition 98 funding would be sufficient to cover all but $1 billion of ongoing program costs in 2024-25. Reduce One-Time Spending Pulling Back One-Time and Temporary Spending Could Provide More Than $10 Billion in Solutions. We estimate the state has $8.6 billion in one-time and temporary spending slated for 2024-25 that can be reduced entirely in order to address the serious budget problem. This includes spending of: $2.2 billion in transportation, $1.9 billion in natural resources and environment, and $1.8 billion in various education programs. In addition, the Legislature has committed tens of billions of dollars in previous years to one-time and temporary purposes, including billions of dollars in the current year. Some of these funds could be withdrawn to address the deficit, but the Legislature would need to request more information from the administration to know the precise amounts that could be feasibly reduced. To maximize flexibility and mitigate disruption, some of these pullbacks could merit early action in 2024. Identify Other Solutions State Might Have Some Cost Shift Options Remaining. Cost shifts occur when the state moves costs between fund sources or entities— for example, shifting spending from the General Fund to special funds or, as has been done in prior budgets, shifting costs from the state to local governments. The state used about $10 billion in cost shifts to address last year’s budget problem and could have some additional capacity to shift additional costs again this year. For example, we think the state would have more capacity to make loans from special funds if those loans were made on a pooled basis, rather than on an individual fund basis. State Has Used Revenue Increases to Address Past Budget Problems. For example, in 2020-21, the state temporarily suspended net operating loss (NOL) deductions, preventing corporations with net income over $1 million from using NOLs. The state also limited businesses from claiming more than $5 million in tax credits. The state also has increased broad-based taxes on a temporary and permanent basis in similar revenue downturns. Other Spending Reductions. Given the extent of the deficit, the state might also have to reduce other spending—including cuts into its core service level—in order to balance the budget. In facing budget problems of similar magnitudes, the state in the past has made reductions to employee compensation and lowered spending on higher education and the judicial branch. The Legislature also could explore using more of the state’s recently reauthorized tax on managed care organization to offset the General Fund costs of Medi-Cal, rather than for other costs, such as increasing provider rates. 98 www.lao.ca.gov 2024-25 BUDGET 13 COMMENTS Unprecedented Prior-Year Revenue Revision Creates Unique Challenges. Typically, the budget process does not involve large changes in revenue in the prior year (in this case, 2022-23). This is because usually prior-year taxes already have been filed and associated revenues collected. Due to the federal tax filing extensions, however, the Legislature is gaining a complete picture of 2022-23 tax collections after the fiscal year has already ended. This creates unique and difficult challenges. Had the Legislature had complete information about 2022-23 tax collections in May, as would be typical, it would have solved much of this deficit in June 2023. At that time, the Legislature would have had more options available to reduce spending. Now that the fiscal year has ended, adjusting spending for 2022-23 across a broad range of programs will be more challenging, including for schools and community colleges and much of the rest of the budget. Early Action Could Increase Flexibility. Given the scale of the budget problem, we suggest the Legislature immediately begin evaluating past spending to find monies that have been committed but not yet distributed. These could be pulled back to help address the budget problem. Taking early action on these reductions could increase the choices available to the Legislature. Once more money has been distributed, fewer options will be available by May. Legislature Will Have Fewer Options to Address Multiyear Deficits in the Coming Years. Given the state faces a serious budget problem, using general purpose reserves this year is merited. That said, we suggest the Legislature exercise some caution when deploying tools like reserves and cost shifts. The state’s reserves—which total $24 billion—are unlikely to be sufficient to cover the state’s multiyear deficits—which average $30 billion per year under our estimates. These deficits likely necessitate ongoing spending reductions, revenue increases, or both. As a result, preserving a substantial portion—potentially up to half—of reserves would provide a helpful cushion in light of the anticipated shortfalls that lie ahead. 99 LEGISLATIVE ANALYST’S OFFICE 2024-25 BUDGET 14 APPENDIX 1: OUTLOOK FOR SCHOOL AND COMMUNITY COLLEGE FUNDING Total Proposition 98 Funding Requirement Down $18.8 Billion Compared With June Estimates. Under our outlook, the minimum funding requirement for schools across 2022-23, 2023-24, and 2024-25 is $18.8 billion lower than the estimates from June 2023. This reduction reflects two main adjustments: (1) a $21 billion decrease in required General Fund spending and (2) a $2.2 billion increase in local property tax revenue. The reduction in required General Fund spending reflects our significantly lower estimates of General Fund revenue, with the minimum funding requirement decreasing nearly 38 cents for each dollar of lower revenue. The increase in local property tax revenue reflects preliminary data showing growth in 2022-23 and 2023-24. Appendix Figure 1 and Figure 2 on the following pages provide more detail on these changes by year. As the bottom of Appendix Figure 2 shows, the total reduction in the minimum funding requirement is $9 billion in 2022-23, $6.3 billion in 2023-24, and $3.5 billion in 2024-25. These amounts represent the maximum reductions in school funding—relative to June 2023 estimates—the state could make while still meeting the Proposition 98 minimum funding requirement. Under Baseline Assumptions, State Would Provide $11.9 Billion More Than the Revised Minimum Requirement in 2022-23 and 2023-24. Although the Proposition 98 funding requirement changes automatically based on updated revenue estimates, the law does not automatically adjust most school spending in the current or prior year. For 2022-23, we estimate that automatic adjustments only reduce Proposition 98 spending by $1.3 billion compared with the level anticipated in June 2023. This reduction mainly reflects the elimination of the required deposit into the Proposition 98 Reserve (the deposit is no longer required due to our lower estimates of capital gains revenue). It also reflects a small increase in costs for the Local Control Funding Formula and various smaller adjustments. Accounting for the $9 billion decrease in the Proposition 98 funding requirement and the $1.3 billion decrease in costs, overall spending in the prior year is $7.7 billion above the minimum requirement. This funding above the minimum level also becomes part of the base for calculating the minimum requirement in 2023-24. Specifically, it increases the 2023-24 requirement by $4.2 billion relative to the amount the state otherwise would have to provide. Across both years combined, funding under our baseline assumptions is $11.9 billion higher than the amount the state would provide if it were to fund at the minimum level only. Decision About Spending in 2022-23 and 2023-24 Affects Calculation of the Funding Requirement in 2024-25. The Legislature’s decision about whether to reduce funding to the lower minimum requirement in the current and prior year has significant implications for the calculation of the funding requirement in 2024-25. We estimate that if the state leaves funding $11.9 billion above the Proposition 98 minimum requirement across 2022-23 and 2023-24 (consistent with our baseline assumptions), the funding requirement in 2024-25 would be $113 billion. This level of funding would be slightly higher than the estimate the state made in June 2023. Conversely, if the state were to lower funding in 2022-23 and 2023-24 to the minimum levels allowed under Proposition 98, the funding requirement in 2024-25 would be $108.2 billion. This level of funding would be about $3.5 billion less than the estimate the state made in June 2023. If the state were to lower spending somewhat but not to the minimum levels in 2022-23 and 2023-24, the funding requirement in 2024-25 would fall somewhere between $108.2 billion and $113 billion. Total Costs for Existing Programs and Statutory Cost-of-Living Adjustment (COLA) Estimated at $109.3 Billion. Separate from our calculations of the Proposition 98 funding requirement, we also estimated the cost of maintaining existing school and community college programs in 2024-25. In making this estimate, we accounted for cost increases and decreases related to (1) changes in student attendance and community college enrollment, (2) an estimated statutory COLA of 1.27 percent, and (3) the 100 www.lao.ca.gov 2024-25 BUDGET 15 expiration of various one-time costs and savings included in the June 2023 budget plan. Under our estimates, the total cost for existing programs in 2024-25 is $109.3 billion. Of this amount, $1.3 billion is the cost specifically associated with the 1.27 percent statutory COLA. Under our baseline assumption (in which the state does not reduce funding to the minimum level in the current or prior year), the Proposition 98 funding requirement in 2024-25 would be more than enough to cover the statutory COLA. If the state were to reduce spending to the minimum level, however, the 2024-25 funding requirement would be about $1 billion less than the cost of existing programs adjusted for COLA. State Estimated to Withdraw Entire Proposition 98 Reserve Balance. Under our outlook, the reductions in Proposition 98 funding require the state to withdraw the entire $8.1 billion balance in the Proposition 98 Reserve. Under our baseline assumption—that is, absent any special action by the Legislature—the constitutional formulas would require withdrawals of nearly $5.5 billion in 2023-24 and nearly $2.7 billion in 2024-25. Alternatively, the state could decide to withdraw funds preemptively and use them to cover costs that exceed the Proposition 98 requirement in the prior year. Under this approach, the state would withdraw $7.7 billion from the reserve for use in 2022-23 (it would be required to withdraw the remaining $450 million in 2023-24). This approach would allow the state to reduce General Fund spending on schools in the prior year without cutting school programs below previously approved levels. (This approach also assumes a budget emergency is declared.) Under the Constitution, the Legislature may use withdrawals from the Proposition 98 Reserve for any school or community college purpose. Appendix 1, Figure 1 Comparing Proposition 98 Funding Levels in the Budget Windowª (In Billions) $107.4 $108.3 $111.6 $106.0 $106.2 $113.0 $98.3 $102.0 $108.2 Enacted Budget Level Baseline Funding Assumptionb Minimum Funding Levelc a Reflects total General Fund and local property tax revenue for schools and community colleges. b For 2022-23 and 2023-24, reflects June funding level with automatic adjustments, including elimination of required reserve deposits and baseline adjustments to Local Control Funding Formula. For 2024-25, reflects estimate of the Proposition 98 minimum requirement building upon the baseline spending assumptions in 2022-23 and 2023-24. c Reflects funding level if state funds at the Proposition 98 minimum requirement each year of the period. 90 95 100 105 110 115 $120 2022-23 2023-24 2024-25 $8.1 Billion Reserve Withdrawal Available During the Budget Window -$4.8 5 $10 -$4.2 -$7.7 101 LEGISLATIVE ANALYST’S OFFICE 2024-25 BUDGET 16 Appendix 1, Figure 2 Comparing Proposition 98 Funding Estimates (Dollars in Millions) 2022-23 2023-24 2024-25 Three-Year Totals Proposition 98 Estimates June 2023 Enacted Budget Proposition 98 Funding: General Fund $78,117 $77,457 $79,739 $235,314 Local property tax 29,241 30,854 31,881 $91,977 Totals $107,359 $108,312 $111,621 $327,291 General Fund tax revenueª$204,533 $201,213 $203,116 $608,862 K-12 average daily attendance 0.1%0.3%-0.2%— Per capita personal income 7.6 4.4 3.1 — Per capital General Fundb -6.2 -0.8 1.4 — Operative test 1 1 1 — LAO December Outlook With Baseline Adjustments Only Proposition 98 Funding: General Fund $76,244 $74,651 $80,111 $231,007 Local property tax 29,778 31,543 32,867 94,189 Totals $106,022 $106,195 $112,979 $325,195 General Fund tax revenueª$179,091 $182,747 $190,099 $551,938 K-12 average daily attendance 0.9%0.7%0.7%— Per capita personal income 7.6 4.4 4.3 — Per capital General Fundb -17.8 2.9 5.3 — Operative test 1 3 2 — LAO December Outlook With Funding Reduced to Minimum Level Proposition 98 Funding: General Fund $68,553 $70,491 $75,295 $214,338 Local property tax 29,778 31,543 32,867 94,189 Totals $98,330 $102,035 $108,162 $308,527 General Fund tax revenueª$179,091 $182,747 $190,099 $551,938 K-12 average daily attendance 0.9%0.7%0.7%— Per capita personal income (Test 2)7.6 4.4 4.3 — Per capital General Fund (Test 3)b -17.8 2.9 5.3 — Operative test 1 1 2 — Funding Comparisons Difference From Enacted Budget to LAO Baseline General Fund -$1,873 -$2,806 $372 -$4,307 Local property tax 536 689 986 2,211 Totals -$1,336 -$2,117 $1,358 -$2,096 Difference From LAO Baseline to Proposition 98 Minimum Level General Fund -$7,692 -$4,160 -$4,816 -$16,668 Local property tax ———— Totals -$7,692 -$4,160 -$4,816 -$16,668 Difference From Enacted Budget to Proposition 98 Minimum Level General Fund -$9,565 -$6,966 -$4,445 -$20,975 Local property tax 536 689 986 2,211 Totals -$9,028 -$6,277 -$3,459 -$18,764 a Excludes non-tax revenues and transfers, which do not affect the Proposition 98 calculations. b As set forth in the State Constitution, reflects change in per capita General Fund plus 0.5 percent. 102 www.lao.ca.gov 2024-25 BUDGET 17 103 LEGISLATIVE ANALYST’S OFFICE 2024-25 BUDGET 18 APPENDIX 2 Appendix 2, Figure 1 General Fund Spending Through 2024-25 (In Billions) 2023-24 Outlook 2024-25 Change From 2022-23 Legislative, Executive $6.1 $5.2 -15% Courts 3.5 3.7 6 Business, Consumer Services, and Housing 2.6 0.5 -79 Transportation 0.9 0.1 -94 Natural Resources 5.7 4.6 -20 Environmental Protection 0.6 0.4 -33 Health and Human Services 73.4 75.4 3 Corrections and Rehabilitation 14.2 13.5 -4 Education 21.2 21.4 1 Labor and Workforce Development 0.9 1.2 43 Government Operations 4.0 2.3 -42 General Government Non-Agency Departments 1.8 1.7 -3 Tax Relief/Local Government 0.6 0.6 6 Statewide Expenditures 4.8 5.7 18 Capital Outlay 0.5 0.3 -37 Debt Service 5.8 5.9 2 Non-98 Spending Totals $146.4 $142.7 -3% Proposition 98a $75.6 $80.1 6% Totals 222.0 222.8 0% a Reflects General Fund component of the Proposition 98 minimum guarantee. 104 www.lao.ca.gov 2024-25 BUDGET 19 Appendix 2, Figure 2 General Fund Spending by Agency Through 2027-28 (In Billions) Agency 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 Average Annual Growth Legislative, Executive $14.1 $6.1 $5.2 $3.1 $2.5 $2.5 -22.0% Courts 3.5 3.5 3.7 3.8 3.9 4.1 3.5 Business, Consumer Services, and Housing 3.9 2.6 0.5 0.3 0.3 0.2 -28.8 Transportation 1.5 0.9 0.1 0.3 0.0 0.0 -17.7 Natural Resources 13.7 5.7 4.6 4.9 3.5 3.3 -10.9 Environmental Protection 3.9 0.6 0.4 0.1 0.1 0.1 -28.0 Health and Human Services 61.2 73.4 75.4 79.4 84.3 89.9 6.0 Corrections and Rehabilitation 14.8 14.2 13.5 13.1 13.1 13.0 -1.2 Education 20.0 21.2 21.4 20.3 21.3 22.2 1.2 Labor and Workforce Development 1.3 0.9 1.2 1.0 1.0 1.0 -5.5 Government Operations 5.5 4.0 2.3 3.4 7.0 8.1 52.0 General Government Non-Agency Departments 2.3 1.8 1.7 1.8 1.3 1.1 -13.9 Tax Relief/Local Government 0.7 0.6 0.6 0.6 0.6 0.7 3.9 Statewide Expenditures 1.3 4.8 5.7 6.9 8.2 9.1 16.9 Capital Outlay 3.3 0.5 0.3 0.1 0.1 0.0 -48.3 Debt Service 5.2 5.8 5.9 5.9 5.9 6.0 0.6 Non-98 Spending Totals $156.1 $146.4 $142.7 $145.1 $152.9 $161.5 4.2% Proposition 98a $76.2 $75.6 $80.1 $84.5 $87.3 $89.7 3.8% Proposition 2 Infrastructureb $0.0 $0.2 $0.7 $1.7 $4.8 $5.4 95.7% Total Forecasted Spending 232.4 222.0 222.8 229.6 240.3 251.2 4.1% a Reflects General Fund component of the Proposition 98 minimum guarantee. b In 2022-23 and 2023-24, amounts are distributed across agencies. In 2024-25 and after, Proposition 2 infrastructure requirements are assumed to offset existing costs, for example for bond debt service, and so do not result in higher total state costs. 105 LEGISLATIVE ANALYST’S OFFICE 2024-25 BUDGET 20 LAO PUBLICATIONS This report was prepared by Ann Hollingshead, with contributions from Ken Kapphahn and Brian Uhler, as well as others across the office, and reviewed by Edgar Cabral and Carolyn Chu. The Legislative Analyst’s Office (LAO) is a nonpartisan office that provides fiscal and policy information and advice to the Legislature. To request publications call (916) 445-4656. This report and others, as well as an e-mail subscription service, are available on the LAO’s website at www.lao.ca.gov. The LAO is located at 925 L Street, Suite 1000, Sacramento, California 95814. 106