Thanks to coordinated advocacy efforts by CSAC, the officers, Board of Directors, counties, and partner associations, the 2020-21 State budget signed by Governor Newsom on June 29 contains significant funding for all California counties, including $1 billion to preserve the county-administered safety net through a Realignment backfill and $1.3 billion from the federal Coronavirus Relief Fund.

CSAC is deeply appreciative of the financial resources for counties included in the budget that will keep the state’s safety net from unraveling and fuel economic recovery across the state. Counties also appreciate the inclusion of CARES Act funds to provide funding for emergency response to the COVID-19 pandemic. Counties must maintain compliance with state health orders to receive this funding. CSAC engaged in numerous conversations with the Administration to ensure this funding gets distributed as quickly as possible and to secure clarity on the required compliance.

Realignment Revenue Backfill

The public health, behavioral health, social services, and public safety services that make up the county-administered safety net face extreme cuts as counties grapple with the twin pressures of increased service demands and declining revenues. The $1 billion total provided in the budget, with $250 million dependent upon the state receiving additional federal COVID-19 relief, will help counties preserve health and human services programs, entitlement programs, and programs that serve vulnerable populations.

County amounts for the Realignment backfill were established on July 6 and CSAC drafted a methodology brief that explains how the amounts were determined. An initial payment of $125 million statewide (covering two months) will be made in July. The remaining balance will be provided upon enactment of a budget trailer bill that allows the state to withhold the monthly allocation amount of the General Fund backfill from a county’s 1991 Realignment funding, should a county be determined to be out of compliance with state health orders. CSAC and county affiliates will work collaboratively with the Administration and the Legislature to ensure the passage of a trailer bill. If no trailer bill is enacted, the remainder of the backfill payments will be made monthly.

Coronavirus Relief Fund

The state has authorized $1.3 billion from the CARES Act Coronavirus Relief Fund to provide funding to Counties for the incredible costs related to COVID-19 response. The county amounts were determined on a per capita basis taking into account counties with a population over 500,000 that received direct payments from the federal government. Initial payments will be made in July for one-sixth of the total amount (approximately $215 million) with identical payments on August 1 and September 1. The remainder of the funds, approximately $650 million, will be provided after submission of the report and summary from counties that is due by September 1, as long as the county remains in compliance with health orders and federal guidance on use of the funds.

Compliance with Public Health Conditions

The required compliance with public health conditions and monthly attestations for the Realignment backfill includes three key elements. First, counties must meet the contact tracing staffing level that is currently required for a county variance to the state public health order. Counties must also meet the currently required commitment to actively participate in the State’s County Data Monitoring Program and undertake efforts advised by the state for those counties that are on the County Data Monitoring List. Finally, counties must not adopt any ordinances/resolutions or take any actions that are inconsistent with the state’s stay-at-home order. In cases where Counties are faced with a sheriff refusing to enforce Public Health Conditions, the state will engage the county on next steps with the sheriff. Counties that cannot achieve resolutions are encouraged to attest to their *own* commitment to follow and have enforcement plans for state and local orders. In all cases, state officials will work with local leaders to encourage compliance.

CSAC continues to be in close contact with Governor Newsom, the Administration and Legislature on issues related to county funding and compliance with public health conditions. CSAC deeply appreciates the close partnership and ongoing communication related to these matters pertaining to the fiscal health of California’s communities.

Be sure to access the latest Budget Action Bulletin and the article Governor and Legislature Reach Budget Agreement for additional detail on 2020-2021 budget wins for counties.