The latest update on California state budget action impacting California’s rural counties.

 

  • Budget negotiations related to an IHSS fiscal penalty proposal continues. The Assembly Floor Report notes that the State Budget includes “trailer bill language to effectuate a seven percent penalty on counties that fail to reach a collective bargaining agreement for their IHSS workers and extends related bargaining tools.” There is no trailer bill language available with details of the penalty proposal. RCRC, along with our county partners, continue to advocate in opposition to the proposed IHSS fiscal penalty.  RCRC encourages member counties to contact their legislator to indicate their strong opposition to this proposal.
     
  • AB 128 (Main Budget Bill) Highlights
    • $703 million from the General Fund and $43 million from the Air Pollution Control Fund (totaling $746 million) for an agriculture package (details yet to be determined).
    • $1.93 billion from the General Fund, $1.54 billion from the Coronavirus Fiscal Recovery Fund of 2021, $7 million from the Water Quality, Supply, and Infrastructure Improvement Fund of 2014, and $3.5 million from the Safe Drinking Water Account (totaling $3.48 billion) for a water and drought resilience package (details yet to be determined).
    • $250 million from the General Fund for local parks grants.
    • $1 billion from the Coronavirus Fiscal Recovery Fund of 2021 for water arrearage debt relief.
       
  • Trailer Bill Highlights
    • AB 133 provisions, include but not limited to CalAIM, telehealth, Medi-Cal expansion to undocumented adults, Medi-Cal optional benefits, Medi-Cal asset test, conversion of the Office of Statewide Health Planning and Development into the Department of Health Care Access and Information. The extension of existing telehealth flexibilities, including video and audio visits paid at parity with in-person visits until December 31, 2022 was included in AB 133. Additionally, the bill creates an advisory group on telehealth for purposes of informing the 2022–23 proposed Governor’s Budget.
    • AB/SB 134 provides flexibilities related to MHSA and would appropriate $187 million from the Federal Trust Fund to the State Department of Health Care Services to support community mental health services.
    • AB 141 contains provisions to consolidate the three cannabis licensing agencies into a new Department of Cannabis Control and language extending the cannabis provisional license program. RCRC has significant concerns with the provisions around provisional license timelines and CEQA benchmarks. RCRC is working closely with the Administration and the Legislature to address issues we have raised in a clean-up bill. 
    • AB 143 specifies the methodology to distribute the $65 million in backfill authorized in AB 1869, a 2020-21 budget trailer bill that repealed about two dozen criminal justice administrative fees and vacated all associated debt. Pursuant to the provisions of AB 1869, the backfill will be paid to counties for five years (2021-22 through 2025-26) in recognition of revenue loss connected to elimination of fee authority. The Department of Finance is required to develop a specific county-by-county allocation schedule by October 1, 2021.
    • AB 832 extends a current statewide COVID-19 eviction moratorium for three additional months through September 30, 2021, and allows landlords of qualified low-income tenants to receive 100 percent of rent owed, funded by the $5.2 billion in federal rental relief aid.
       
    • SB 129 includes $6 billion total in one-time funds ($1.7 billion General Fund and $4.3 billion from the American Rescue Plan Act) for broadband infrastructure. Of the total funding appropriated, $3.75 is allocated to the California Department of Technology to create a statewide middle-mile, $250 million for a loan-loss reserve, and $2 billion for last mile infrastructure projects. Funding is contingent on the allocation details being outlined in trailer bill language before the end of legislative session. 
    • SB 152 contains provisions associated with conducting the recall election and including requirements for counties conducting regular elections before January 1, 2022, as well as consolidating previously called special elections with a gubernatorial recall election. The bill also includes intent language that the Legislature will provide additional resources if cost with the recall increase. AB 128, the main budget bill, passed this month includes $215 million to cover the cost of the recall for counties. It should be noted that update estimates from  the Department of Finance based on SB 152 increases counties cost by $28.4 million.