Thursday, May 30, 2024

Yesterday, the Senate and the Assembly released their proposed Joint Legislative Budget Plan for the state’s 2024-25 budget. This proposal is a response to the Governor’s 2024-25 May Revision budget proposal, released on Tuesday, May 14 and represents the Legislature’s starting proposal in their negotiation with the Governor’s Administration on a final Budget.

Notably, some components of the Legislature’s budget proposal align with requests made by CSAC to legislative leadership, including a $1 billion appropriation for Round 6 of the Homeless Housing, Assistance and Prevention (HHAP) program and rejecting numerous proposed cuts to health and human services programs (CSAC letters to Senate and Assembly leadership). Further commentary on the Legislature’s budget plan by policy area are included below.

The budget development process is far from over. In the coming days, negotiations to develop the final 2024 Budget Act agreement between the Legislature and the Governor will intensify against the backdrop of the upcoming constitutional deadline for the Legislature to pass the budget bill by June 15.  

To this end, CSAC legislative staff are committed to partnering with the Legislature to balance the state budget in the interest of California’s vulnerable populations and to preserve core services. CSAC is communicating to lawmakers that now is not the time to pull back on the commitment to these programs, but rather to maintain and strengthen our investments. The Legislature must hold the line and reject cuts to vital funding for county administered programs and services that vulnerable Californians rely on every day.

To receive a template letter to submit to legislative leadership and budget committees in both houses to express how your county will be impacted by the Joint Legislative Budget Plan, please contact Jessica Sankus, CSAC Principal Fiscal and Policy Analyst, at jsankus@counties.org.

Administration of Justice

CSAC joined a broad coalition of more than 200 community service providers and county affiliates, urging the state to backfill federal reductions to the Victims of Crime Act (VOCA).  Alongside key champions in the Legislature, the Legislature’s Joint Budget Plan proposes to appropriate $103 million ongoing backfill to address the historic low funding counties are poised to receive.

While the Administration proposed cuts to the third and final year of this program, the Legislature continues to stand with counties and advocates, by proposing to reject the Administration’s proposed $40 million reduction. Last year, the program was proposed to be cut by $50 million, but with pressure from advocates and the Legislature the final 2023 Budget Act reflected a $10 million reduction.

Please contact Ryan Morimune (rmorimune@counties.org) or Michaela Schunk (mschunk@counties.org) with any questions.

Agriculture, Environment, and Natural Resources

The Legislature proposes to restore the extreme heat package and critical dam safety infrastructure funding.

Please contact Catherine Freeman (cfreeman@counties.org) or Ada Waelder (awaelder@coutnies.org) with any questions.

Government Finance and Administration

The Legislature proposes to reject the Administration’s proposal to make charter schools eligible to receive Educational Revenue Augmentation Funds (ERAF). The Legislature also proposes an appropriation of $73.5 million to backfill counties with insufficient ERAF, ensuring they are held harmless under the Vehicle License Fee reduction made in 2004.

The Legislature proposes to adopt the Administration’s proposal to reduce the Middle Mile Broadband Initiative by $250 million in 2024-25 and $1.3 billion in 2025-26. The Legislature also proposes to adopt the reductions to the California Jobs First program (formerly the Community Economic Resilience Fund (CERF)) by $50 million annually beginning in 2024-25 through 2026-27.

Please contact Kalyn Dean (kdean@counties.org), Eric Lawyer (elawyer@counties.org) or Stanicia Boatner (sboatner@counties.org) with any questions.

Health and Human Services

The Legislature proposes numerous budget actions that preserve the safety net and core programs and services that counties provide to Californians, including rejection of cuts to public health infrastructure, CalWORKs, child welfare, and adult protective services, and appropriating $1 billion for Round 6 of the HHAP program. Given the number of notable differences between the Joint Legislative Budget Plan and the Governor’s May Revision budget proposal, a lengthier description of the Legislature’s proposal is available in the CSAC bulletin.

Please contact Justin Garrett (jgarrett@counties.org), Jolie Onodera (jonodera@counties.org), or Danielle Bradley (dbradley@counties.org) with any questions.

Housing, Land Use, and Transportation

The Legislature proposes to partially restore funding for the Multifamily Housing, Regional Early Action Planning (REAP) 2.0 program. The Legislature also proposes to adopt the Administration’s proposal to include a one-time appropriation of $500 million for Low Income Housing Tax Credits, which supports affordable housing production. Notably, the Legislature proposes to include CSAC’s request for reporting language for Caltrans Fleet Replacement. Lastly, CSAC is reviewing the impact of the Assembly’s proposal to shift the Active Transportation Program to the State Highway Account could have for counties.

Please contact Mark Neuburger (mneuburger@counties.org) or Kristina Gallagher (kgallagher@counties.org) with any questions.