The Barbed Wire - December 15, 2017

CAFWA Issues Statement on Updated Tree Mortality Numbers

Early this week, the U.S. Forest Service announced that tree mortality in California has killed 129 million trees, up 27 million from this time last year.  In response to the increased tree mortality numbers, the California Forest Watershed Alliance (CAFWA), of which RCRC is a founding member, released the following statement.  Read More…

Insurance Commissioner Orders FAIR Plan to Provide Coverage in Wildfire-Impacted Areas

On Thursday, Insurance Commissioner Dave Jones issued a cease and desist order requiring the California FAIR Plan to immediately terminate a recent moratorium on writing new fire insurance coverage in wildfire-impacted areas.  The FAIR Plan, which exists as a state-sponsored “last resort” insurance plan for homeowners who can’t find insurance coverage from another provider, recently placed a moratorium on issuing insurance policies in certain zip codes impacted by wildfires.  

The Commissioner’s order demanded immediate termination of the moratorium on the basis that the FAIR Plan has no statutory allowance to take such an action.  Anyone who has been impacted by wildfires and denied coverage under the FAIR Plan should contact the California Insurance Commissioner’s Office through their consumer hotline at (800) 927-4357.  The full press release from the Commissioner can be accessed here.

RCRC Hosts Global Trade and Small Business Workshop in Tehama County

On Thursday, RCRC and the Northern California Center for International Trade Development (CITD) partnered with Tehama County Economic Development and the U.S. Department of Commerce Sacramento U.S. Export Assistance Center to bring their free export services workshop to Tehama County.  

The workshop seeks to teach local, small business owners the basics of starting or enhancing opportunities for exporting products and/or services from California’s rural counties to the global market.

“While international trade opportunities are becoming more of a reality for rural business ventures, it’s often challenging to know where to start,” said RCRC Chair and Tehama County Supervisor Bob Williams.  “These RCRC workshops are designed to provide a high-level overview of the exporting process, and bring resources and funding opportunities to small business owners and entrepreneurs in California’s rural counties.  Thriving rural businesses make the California economy stronger, and more balanced.”

The workshop included presentations from the following individuals and groups:

• Brooks Ohlson, Angela Cordell, and Raj Shea from the Center for International Trade Development who have been working closely with RCRC on this effort;
• Megan Hodapp from the Governor’s Office of Business and Economic Development;
• George Tastard with the US Department of Commerce-US Commercial Service;
• Jeff Diess and Darrel Dante from the United States Small Business Administration; and,
• Joyce Mikkelson, Exporter.

Details on theworkshop can be accessed here.

Fiscal Year 2018 Federal Budget

House Republicans reached an agreement on a stopgap funding bill that was published by the House Appropriations Committee Wednesday night.  The proposal is a Continuing Resolution (CR), a stopgap measure that will extend federal funding until January 19, 2018, and avoid a government shutdown on December 22.

The appropriations package does not include disaster relief for regions recovering from wildfires or hurricanes, an omission that is sure to cost Republicans votes on the floor.  Members from Texas and Florida are meeting as a bipartisan coalition and Rep. Dennis Ross (R-FL) claims they’re not voting for a CR without aid for their states.  Majority Leader Kevin McCarthy (R-CA) agreed there is “a little more work” to be done for disaster aid before the end of the year.

If the CR, introduced by House Appropriations Chairman Rodney Frelinghuysen (R-NJ), manages to pass the House it is expected to meet opposition from Senate Democrats.  Appropriations measures do not fall within the scope of the “Bird Rule,” which allows Senate Republicans to pass a tax reform bill with a simple majority, therefore Republicans will need at least eight Democratic votes to reach the required 60-vote threshold.  This threshold gives Democrats more leverage in budget negotiations than tax reform or health care, which is how Democrats are able to demand reforms for the Deferred Action for Childhood Arrivals (DACA) program or Children’s Health Insurance Program (CHIP).

After the CR proposal was announced, Sen. Roy Blunt (R-MO) told reporters “the House bill is not going to pass over here,” therefore Senate Republicans will choose to submit their own stopgap proposal.  Republicans are anticipating Sens. Ted Cruz (R-TX) and John Cornyn (R-TX) will add a disaster relief package to the Senate CR proposal.

Federal Tax Reform

House and Senate Republicans reached a deal this week on the final version of the Tax Cuts and Jobs Act, and hope to deliver a bill to President Trump.  The final version has multiple provisions, including a raise in the corporate rate from 20 percent to 21 percent, a $10,000 state and local income deduction cap, a $10,000 real property tax deduction cap and a $750,000 mortgage interest deduction cap.  

The state and local income tax deduction was partially reinstated to meet the demands of Republicans from high-tax states, primarily New York, New Jersey, and California.  To further offset losses for high-earners in these states, the final version of the plan will lower the top income tax rate from 39.6 percent to 37 percent.

The final bill’s prospects were immediately complicated by Sen. Marco Rubio (R-FL) who announced he will vote no on the final Republican plan unless it expands the child tax credit.  Republicans can only afford to lose two votes on the Senate Floor, where Bob Corker (R-TN) voted no on a previous draft.  Corker’s concerns about the bill’s impact on the deficit were not addressed in the final text, and there is no reason to believe he will vote yes this time around.  Republicans can only afford to lose two-votes on the tax reform plan, and Vice President Mike Pence has been forced to postpone his trip to Israel so that he can provide a tie-breaking vote if necessary.  Last-minute negotiations will continue through the weekend to bring on as many Republican hold outs as possible before the bill is brought to the floor for a vote sometime next week.

Wildfire Relief

The Republican tax reform plan received fresh criticism from media this week after reports emerged that the Tax Cuts and Jobs Act would eliminate a deduction for homeowners affected by wildfires.  The final text of the GOP tax overhaul has not been released, but versions of the bill in the House and Senate include a repeal, or partial repeal, of a provision that grants homeowners a tax write-off for property damage caused by wildfires.

Under current law, if a taxpayer suffers property damage that exceeds 10 percent of their gross income, the excess amount may be deducted from federal taxes.  The House plan includes a complete repeal of this provision, while the Senate version only allows the deduction in scenarios where the president uses the federal disaster declaration, an uncommon occurrence for wildfires.  If the tax bill is signed into law by Christmas, damages incurred after January 1, 2018, will not be eligible for the deduction.

Net Neutrality

This week, the Federal Communications Commission (FCC) voted 3-2 to repeal the net neutrality rules that required internet service providers to treat web content equally.  Under the FCC’s new plan, broadband providers will be able to tier internet speeds for websites based on user-traffic.  Providers may charge consumers extra to access content on popular sights like Netflix and Facebook, who themselves may be charged extra for broadband “fast lanes” to provide their customers faster internet speeds on their platforms.  

The major broadband providers have not announced any plans to implement these tiered models, but consumers and internet-based firms are outraged by the prospects of paying more for their online activity.

There is no consensus on how the net neutrality repeal will impact broadband in rural areas, where 39 percent of rural communities lack internet access.  Rural providers argue the regulatory repeal will pave the way for broadband investment in rural areas that weren’t previously financially viable.  Critics point out many rural consumers are subject to the monopoly of a single provider, and the repeal will give these providers more leverage over consumers in these areas.  For example, rural businesses may be charged additional fees to access e-commerce platforms and social media sites.  The FCC’s proposal is expected to be challenged in court by pro-internet groups which could potentially delay providers from implementing policy changes in the short term.  Either way, consumers and businesses should not expect any meaningful changes to their internet and data usage through 2018. 

RCRC MEMBER SPOTLIGHT

Merced County: All Dad’s Matter

In November, RCRC sponsored the San Joaquin Valley Regional Association of California Counties fall conference, hosted by Merced County.  The final panel highlighted a program called All Dads Matter.  Supported through the Merced County Human Services Agency, All Dads Matter focuses on the importance good fatherhood has upon a child’s development.  The panel’s presenters, Lamar Henderson, program coordinator, and Cesar Vera, program supervisor, provided a riveting overview of the program, leaving the audience moved by the potential impact the program will have upon our next generation.

We’re excited to introduce you to this Merced County program, and applaud Mr. Henderson and Mr. Vera for the work they’re doing to strengthen the bond of fatherhood in Merced County!  Read More…

BULLETIN BOARD

Save-the-Date: RCRC Annual Installation of Officers and Rural Leadership Awards Reception

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Mendocino County Seeks Cannabis Program Manager

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14^th Annual California Water Law Symposium

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California Irrigation Institute Conference: Drought to Deluge – Scaling Solutions

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Making Ends Meet: How Much Does It Cost to Support a Family in California?

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CSUS 2018-19 Capital Fellows Program Application Period Open

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