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HomeMy WebLinkAbout2022-02-08; City Council Legislative Subcommittee; ; Legislative Update and Advocacy ReportCCity of Carlsbad City Council Legislative Subcommittee Meeting Date: Feb. 8, 2022 To: City Council Legislative Subcommittee From: Jason Haber, Intergovernmental Affairs Director Item 2: Legislative Update and Advocacy Report Recommendation: Receive an update on state and federal legislative and budget activity and recent and ongoing advocacy efforts and provide feedback to staff. Discussion: Staff and the Renne Public Policy Group (RPPG) will present an update and overview of state legislative and budget activity (Exhibits 1 and 2). With the Legislature recently reconvening for the second year of a two-year session, and as legislative deadlines approach for two-year bills to pass out of their house of origin and for new bills to be introduced for the 2022 session, staff and RPPG are working to identify potential priority bills for city monitoring and advocacy. Staff continues to evaluate bills that may impact city operations and policy priorities, which will be presented for discussion and feedback from the Legislative Subcommittee. Exhibits: 1.RPPG Legislative Monthly Report —January 2022 2.RPPG Summary of Governor Newsom's FY 2022-23 Budget Proposal City Manager's Office — Intergovernmental Affairs Eftl?•Wallaa Carlsbad Village Dr. I Carlsbad, CA 920081 760-434-2958 t Item #2 Page 1 of 13 RPPG Renne Public Policy Group (City of Carlsbad California Exhibit 1 February 3, 2022 To: Mayor Matt Hall, Legislative Subcommittee Member Councilmember Teresa Acosta, Legislative Subcommittee Member Jason Haber, Intergovernmental Affairs Director City of Carlsbad From: Sharon Gonsalves Director of Government Affairs Renne Public Policy Group Re: Legislative Monthly Report — January 2022 After a 3-month recess, the Legislature reconvened the second year of a two-year session on January 3, 2022. Many were hoping for 2022 to be a turning page relative to the pandemic, but unfortunately health and safety protocols continue to be in place limiting in person access to committee hearings and meetings with lawmakers. UPCOMING LEGISLATIVE DEADLINES •January 31: Last day for each house to pass bills introduced in their house in 2021 •Feb. 18: Last day for bills to be introduced for 2022 Session GOVERNOR NEWSOM 2022/23 BUDGET PROPOSAL Gavin Newsom unveiled a $286.4 billion budget proposal, 9% bigger than last year's record state spending plan. Buoyed by a strong economic recovery and tax revenues that continue to roll in even higher than anticipated, his administration projects a $21 billion discretionary surplus for 2022-23, plus tens of billions more in extra cash for schools, pension payments and reserve accounts. On January 21, RPPG sent the City a comprehensive overview of Governor Newsom's proposed budget plan. There are five core themes in this year's proposal: •Fighting COVID-19 With Science •Combating the Climate Crisis •Confronting Homelessness •Tackling the Cost of Living •Keeping our Streets Safe Feb. 8, 2022 Item #2 Page 2 of 13 RPPG Penne Public Pao,/ Group Throughout the month of January Governor Newsom traveled across the state to highlight key components of the budget proposal. To address an escalation in blatant high profile crime activity, the Governor's public safety plan includes $255 million in grants for local law enforcement to increase their presence at retail locations and combat organized retail crime, along with $18 million to create a dedicated state team of special investigators and prosecutors in the Attorney General's Office to prosecute cross- jurisdictional theft-related crimes. Further, the plan calls for the creation of a permanent Smash and Grab Enforcement Unit operated by CHP that will work with local law enforcement to crack down on organized rail, retail and auto theft in counties across the state. To address the homelessness crisis, Governor Newsom traveled to San Diego to highlight funding in his proposal to clean up encampments and connect people to shelter including transitional housing. In Los Angeles Governor Newsom announced his Administration's $14 billion package to advance the state's multi-year plan to confront the homelessness crisis. The Governor announced he will request an additional $2 billion from the legislature to invest in behavioral health housing and encampment rehousing strategies. The plan is estimated to create 55,000 new housing units and treatment slots when fully implemented. The Governor's framework is just the opening bid in negotiations with the Legislature, which must pass a budget by June 15— though the details are not worked out until well into the summer some years. COVID-19 SURGE The beginning of the year saw a dramatic surge in positive cases of COVID-19 due the highly contagious omicron variant. As a result, the State's indoor mask mandate that was originally due to expire on January 16 was extended 30 days to February 15. Currently the state requires mask wearing for everyone — regardless of vaccination status — in all indoor spaces. The Governor and Legislative leadership announced a framework to extend COVID-19 related sick leave. This will be done through the budget trailer bill process, which means that it will take effect immediately upon signature and will only require a majority vote to pass. Assembly Bill 84 was amended on February 2 with full details of the plan. Highlights of AB 84 include: •COVID-19 related paid leave will be retroactive to January 1, 2022 and the provision will extend to September 30, 2022 •Applies to all businesses who have 26 employees or more •Time cannot be used to receive the vaccine, nor can it be used to recover from vaccine symptoms •A separate bucket of time equal to 24 hours is specific for vaccine recovery •All employees are eligible for an additional 40 hours if re-infected or taking care of another family member who is infected •Employers must pay for and provide COVID-19 testing Feb. 8, 2022 Item #2 Page 3 of 13 RPPG POicy Crop •A one-time sum of $100,000 will be appropriated to the Labor Commissioner to implement the provisions set forth in the legislation CITY-SPONSORED LEGISLATION AB 1672 (Boerner Horvath) Public Swimming Pools: lifeguards. This bill sponsored by the City of Carlsbad would authorize lifeguards who are certified by the United States Lifesaving Association (USLA) to provide services at municipal operated swimming pools. This bill was introduced on January 20, 2022 and has been referred to the Assembly Health Committee. AB 1682 (Boerner Horvath) Public safety: Speeding vessels: lifeguard rescue vessels. This bill was introduced on January 24 and will be jointly authored by Assemblymember Chris Ward and the City of San Diego will serve as a co-sponsor of the bill. 2 YEAR BILLS The most controversial of the two-year bills was AB 1400 (Kalra), the latest attempt to create a government run universal health care system in California. Having been introduced in 2021 but held in the Assembly without any policy hearings, the bill needed to be voted off the Assembly floor by January 31 to advance for further consideration. Ultimately after numerous meetings and political pressure from the Democratic Party and the bill sponsors, AB 1400 was not taken up on the Assembly floor for a vote. Notable bills that will continue to advance are: AB 411 (Irwin) Veterans Housing and Homeless Prevention Bond Act of 2022: Subject to voter approval, this bill will authorize the issuance of $600 million in general obligation bonds to provide affordable housing to specified veteran's housing and homeless prevention efforts. AB 1445 (Levine) Planning and Zoning; Regional Housing Needs Allocation: Climate Change Impacts: This bill requires that a council of governments, a delegate subregion, or the department within a local agency additionally consider emergency evacuation route capacity, wildfire risk, sea level rise, and other impacts caused by climate change when developing the methodology for regional housing needs. AB 1416 (Santiago) Elections: Ballot Label: Requires the ballot label for a statewide ballot measure and permits the ballot label for a local ballot measure, to include the names of specified supporters and opponents of the measure. SB 379 (Wiener) Residential Solar Energy Systems: Permitting: This bill requires most cities and counties to adopt an automated, online permitting system for solar energy systems and energy storage. This bill is similar to SB 617 from 2021 that the City's had a WATCH position on and stalled in the Senate Appropriations Committee. SB 513 (Hertzberg) Homeless Shelters Grants: Pets and Veterinary Services: This bill requires the Department of Housing and Community Development (HCD) to establish a grant program to provide funding to homeless shelters to provide shelter, food, and basic veterinary services for pets owned by individuals experiencing homelessness. This bill is identical to SB 344 from 2021 that the City had a SUPPORT position on and stalled in the Assembly Appropriations Committee. Feb. 8, 2022 Item #2 Page 4 of 13 RPPG . Pence Public Policy Group REDISTRICTING AND ELECTION YEAR Throughout fall of 2021 and January of 2022, announcements have been made by sitting lawmakers who have chosen not to run for reelection in 2022 or resigned prior to the end of their current term. Most recently on January 31, Assemblywoman Autumn Burke resigned effective February 1, in order to spend more time with her family. The Chair of the Assembly Revenue and Taxation Committee, Burke authored the expansion of California's Earned Income Tax Credit and landmark wildfire legislation in AB 1054 which protects Californians from unexpected electricity costs while also creating a fund to address future wildfire liabilities. The wave may continue as candidates have until mid-March to announce whether or not they will run for office. ### Feb. 8, 2022 Item #2 Page 5 of 13 RPPG Cr-n January 12, 2022 Exhibit 2 To: Jason Haber City of Carlsbad From: Dane Hutchings Renne Public Policy Group Re: Governor Newsom FY 22-23 State Budget Proposal Dear Jason: The following is a topline summary of the Newsom Administration's FY 22-23 proposed State budget highlighting specific areas of interest to the City of Carlsbad. In addition to the summary below, you will also see occasional line items that have an "RPPG Note". These are specific line items that we have identified based on our "Deep Dive" process where there may be fiscal or policy alignment with the Administration. If there are other areas or line items of interest expressed by Council or department heads, please do not hesitate to reach out to our team to ask questions or request additional information. On January 10, Governor Newsom presented for nearly three hours on the budget in its entirety. The $286.4 billion spending plan is an increase of 9% in total. While the projected surplus comes in it at approximately $45.7 billion the Governor was quick to point out that over half ($25 billion) has been earmarked through Proposition 98 ($16.1 billion), Proposition 2 ($3.9 billion) and various state reserves ($5.21 billion) leaving approximately $20.6 billion in discretionary reserves. Similar to his predecessor, Governor Newsom has proposed little in the ways of long-term funding commitments and instead is seeking to bolster current programs and make one-time investments centered around five major themes: 1.Fighting COVID-19 With Science 2.Combating the Climate Crisis 3.Confronting Homelessness 4.Tackling the Cost of Living 5.Keeping our Streets Safe One notable exception to mostly one-time or short term (multi-year) funding proposals aims to expand full-scope Medi-Cal eligibility to all income-eligible adults aged 26 through 49 regardless of immigration status. Over the last decade, the Medi-Cal program has significantly expanded and changed. This is due in large part to the implementation of the federal Patient Protection and Affordable Care Act as well as California's expansions of Medi-Cal coverage to children, young adults, and adults over 50. The Governor proposes an ongoing $2.2 billion appropriation with a 1 Feb. 8, 2022 Item #2 Page 6 of 13 RPPG Renne I I rotio target date of no sooner than January 1, 2024, to expand Medi-Cal—making it available to all income-eligible Californians. Timing The Administration will work with the State Legislature over the next six months considering the merits of the Governor's budget proposal—deliberating items through various budget sub committees, the Administration and the Legislature will come to a consensus to adhere to the Constitutional June 15, 2022, deadline to adopt a balanced budget. The Governor will then have until June 30, 2022, to sign the Budget into law. Keep in mind that the "Budget Act" is bound by constitutional restraints as outlined. However, it has become common practice for the Governor and the Legislature to use the Budget Trailer Bill (BTB) process (e.g., a series of smaller—often topic-specific budget bills) that can quickly move anytime through the year to advance both early and late budget action. RPPG will continue to engage and advise on all budget-related matters of interest to the City. Below is a summary of budget items we felt of most importance to the City that falls within each of these core themes. The Governors "California Blueprint" 22-23 budget proposal can be found HERE. CC: Cindie McMahon Fighting COVID-19 With Science With the rapid increase of the Omicron variant of COVID-19, addressing the impacts of this pandemic continue to be a top funding priority. The focus of the Administration is to keep schools open, protect frontline workers and keep the economy moving. •$2.7 billion additional one-time spending to: o Ramp up vaccine distribution o COVID testing o Increase personnel to combat future surges. •Specific "request" from the Administration that the Legislature extend pandemic related sick leave now that SB 95 (Skinner) has expired. [RPPG Note: While not a "budget item", it is highly likely an extension of the now expired SB 95 will span over multiple years] Combating the Climate Crisis Since assuming office, Governor Newsom has pushed aggressive policies and funding to ensure the State of California is a leader in addressing the impacts of global warming. Fire and Forrest Health: 2 Feb. 8, 2022 Item #2 Pane 7 of 13 RPPG Pub;ic Po:icy Group •$1.2 billion in additional spending on forest health and fire protection: $800 million General Fund and $400 million Greenhouse Gas Reduction Fund) over two years to build on similar commitments in 2021 and sustain critical investments in forest health and fire prevention to continue to reduce the risk of catastrophic wildfires. This includes funding to support resilient forest and landscapes; wildfire fuel breaks; community hardening; regional capacity; science-based management; and economic development of the forest sector. [RPPG Note: Funding for high fire hazard severity zones has been identified as an ongoing need, particularly in service areas near stations 2,3,5,6]. Drought: •$750 million for drought resilience: Additional $750 million one-time General Fund to support drought resilience and response, including water conservation, groundwater recharge, and assistance for small farmers whose needs have grown more acute with extended dry conditions. o Additionally, $3.725 billion in federal dollars over the next five years to improve local water infrastructure. Climate: •Coastal: $400 million for coastal and ocean protection: $350 million for coastal protection and adaptation for coastal wetland protection and restoration. $50 million for projects that protect and restore healthy ocean and coastal ecosystems. [RPPG Note: Funding for coastal protection, including sand replentishment have been identified by the City as areas of interest]. •Extreme Heat: $175 million additional to combat extreme heat. Significant investments include: o $100 million for urban and community forestry and urban greening to cool communities through expanding tree canopies. o $25 million for community resilience and heat programs to reduce the impacts of extreme heat and the heat island effect. o $25 million to fund community resilience centers program to support vulnerable residents experiencing emergency situations brought about by the climate crisis. o $25 million to accelerate energy-efficient updates to low-income households. •Resilience: $325 million to further climate resiliency. Significant investments include: o $165 million for the Transformative Climate Communities Program. o $135 million to provide direct investments in regional climate collaboratives and resilience planning, implementation, and resilience projects. o $4.7 million for the California Climate Action Corps to help take action against climate change. 3 Feb. 8. 2022 Item #2 Page 8 of 13 RPPG Rmlne Public Policy Cifel;:: $2 billion over two years for clean energy projects. Significant funding includes: o $380 million for long-duration storage and to support grid resiliency. o $962.4 million for equitable building decarbonization. Transportation: •$6.1 billion for Zero-Emission Vehicles and charging infrastructure: $3.5 billion General Fund, $1.5 billion Proposition 98, $676 million Greenhouse Gas Reduction Fund, and $383 million Federal Funds) over five years for ZEV acceleration, with a focus on communities that are most impacted. •10.6 billion in new transportation investments: 4.5 billion two-year increase of federal infrastructure package for highways, roads, transit, safety and research. Additionally, there is a proposed $3.3 billion in General Fund for high-priority transit and rail infrastructure. These projects will improve rail and transit connectivity between state and local/regional services and are designed to reduce traffic congestion and greenhouse gas production. Other allocations include: o $750 million General Fund for Active Transportation Program projects, the Highways to Boulevards Pilot, and bicycle and pedestrian safety projects. [RPPG Note: There could be opportunities that align with the City's active transportation plan]. o $500 million General Fund for grade separation projects that support critical safety improvements and expedite the movement of traffic and rail by separating the vehicle roadway from the rail tracks. [RPPG Note: Funding for grade separation projects has been identified as a priority during Deep Dive meetings] o $400 million General Fund for climate adaptation projects that support resiliency and reduce the risks from climate impacts. Confronting Homelessness Homelessness has been a top state priority for several years now and 2022 will be no different. For the 2022/2023 budget, Governor Newsom emphasized the goals of creating 55,000 new homes and treatment beds, focusing on behavioral health, and reducing bureaucratic obstacles to addressing the state's homelessness crisis. The Governor's budget proposal will add $2 billion in new, one-time funding via the Homeless Housing and Assistance Program. [RPPG Note: Local governments are required to submit local homeless action plans to Cal-ICH as a condition of receiving funding through the Homeless Housing and Assistance Program]. •$1.5 billion in new funding to support rapid transition to get people off the streets and into behavioral health treatment •$500 million to address homeless encampments 4 Feb. 8, 2022 Item #2 Pane 9 of 13 RPPG Rene Pubiic POtiV GrOlin A fo.t.,,,,uf .reAtje.11.e.• .41* •$10.6 million annually for three years to continue the Returning Home Well Program to provide transitional housing to parolees at risk of housing insecurity or homelessness. The Governor also indicated in his presentation that he will "lean into" the conversation about conservatorship reform to expand the judicial branch's ability to conserve homeless individuals who are experiencing behavioral health issues. Tackling the Cost of Living •$2 billion in new funding to address Housing: o $500 million for the Infill Infrastructure Grant Program [RPPG Note: Major funding will be available to HCD "pro housing" jurisdictions. Advise that CD look at HCD's application to see how the City may be able to be certified as "Pro Housing"]. 0 o $300 million for the Affordable Housing Sustainable Communities grant program o $100 million for adaptive reuse incentive grants (e.g., structural improvements, plumbing and electrical). o $500 million for Low-Income Housing Tax Credits o $200 million to provide loans to developers for mixed-income rental housing o $200 million for the Portfolio Reinvestment Program to preserve targeted units in downtown-oriented areas o $100 million for the Mobilehome Park Rehabilitation and Resident Ownership Program [RPPG Note: if there is a preservation project that the City these funds will finance the preservation and development of affordable mobilehome parks, assisting one of the communities disproportionately and negatively impacted by the state's affordability] •Economic Development [RPPG Note: Given Carlsbad robust Economic Development initiatives we thought these programs may be of interest to the City]. o New Innovation Headquarters Credit: Offers $250 million ($750 million total) in tax credits over three years — in addition to the state's Research and Development Credit -- for California headquartered companies investing in activities and technologies that mitigate climate change. o Pre-Development of Green Energy Technologies: Offers $100 million ($300 million total) over three years to fund pre-development costs of new technologies such as: electric vehicle manufacturing and infrastructure; geothermal, lithium extraction, and battery manufacturing; long-duration storage; addressing methane emissions; and hydrogen technologies to reduce the use of natural gas. The credit will be awarded by a newly created clean energy board at the Governor's Office of Business and Economic Development 5 Feb. 8 2022 Item #2 Page 10 of 13 RPPG 1j,E.r1:7€: PoiirN C,Irot.ic) (GO-Biz). This tax credit will be structures so that if the business becomes profitable, the state will benefit from a share of the profit. o SSBCI Allocations: Allocates $1 billion from the federal State Small Business Credit Initiative (SSBCI) split evenly between the California Infrastructure and Economic Development Bank (I-Bank) and the state Treasurer's Office. Detailed information on the state's expenditure plans will be available by February 11, 2022. Keeping our Streets Safe Responding to a significant increase in brazen organized retail thefts nationally, Governor Newsom provided how the state would combat the emergence of coordinated and organized robberies at high-value stores in this year's budget. An investment of $356 million over the next 3 years include: Law Enforcement: •Bolstering law endorsement and local response o Funding for local enforcement o New Smash and Grab Enforcement Unit o Deploy more patrols based on real time date o Small Business grants to victims •Ensuring prosecutors hold perpetrators accountable o New Statewide Organized Theft Team o Additional funding to local District Attorney's to prosecute o Continue overseeing High Impact Investigation Team to combat gangs. •Getting guns and drugs off our streets o Largest gun buyback program in American o Intercepting drugs at the border Other Areas of Interest: Children and Childcare •$5.8 billion for childcare programs, including continued support for the historic multiyear commitment to rate increases, supplemental funding to providers, infrastructure grant program funding, and the eventual expansion of childcare access by 200,000 slots. •$25 million for the Child Care Initiative Project to address areas underserved by childcare providers, increase childcare slots, and support providers wanting licensure. •$10.6 million for the California Infant and Early Childhood Mental Health Consultation program to support the mental health needs of children, families, and childcare providers. 6 Feb. 8. 2022 Item #2 Pane 11 of 13 RPPG Rei rie ;>‘-cy CrrniP •$10 million to expand early literacy efforts by providing multilingual books and early literacy programming for families with young children. •An additional $3.4 billion for the Expanded Learning Opportunities Program, which supports summer, before, and after school programs. •$4.7 million over three years to continue operation of a helpline that helps deliver services to children, families, and caregivers. Libraries •$5 million to expand the number of library jurisdictions providing summer meal programs for students in low-income communities. $12.8 million and $1.2 million ongoing to support the digitization of historically and culturally significant materials. $8.8 million increase to support free online job training and educational upskilling programs available through local public libraries. jfiPPG Note: Funding for increased library services was a topic of discussion during our deep dive meetings] Seniors and Aging $2.1 million to bolster the Master Plan for Aging's Data Dashboard to drive outcomes and sustain public engagement for statewide initiatives through the Department of Aging. •$10 million for programs to engage older adults in volunteer service. •$35.2 million for the California Food Assistance Program General Fund to expand the program to Californians age 55 and older. Parks •$50 million for the Department of Parks and Recreation to create new California Cultural and Art Installations in the Parks Program for state and local parks. California Volunteers •$10 million ongoing to expand California's existing volunteer infrastructure and bolster the statewide Neighbor-to-Neighbor initiative to recruit, train, equip, and organize neighbors to address community needs. •Permanently continues funding the California Climate Action Corps Program at its existing funding level of $4.7 million to support its mission of empowering Californians to take meaningful actions to protect their communities against the harshest impacts of climate change. California Arts Council •$30 million to be spent over three years to support 14 existing cultural districts. Community Health •$1.7 billion in Care Economy Workforce investments, including funding to recruit and train 25,000 new community health workers, as well as additional psychiatric providers. 7 Feb. 8. 2022 Item #2 Pane 12 of 13 RPPG Renne Public Policy Group •$350 million to recruit, train, and certify 25,000 new community health workers with specialty certifications in areas that include climate health, homelessness, and dementia. •$50 million for the CalFood program to mitigate increases in food needs among low-income and food-insecure populations throughout the state. •$7.5 million for the California Governor's Office of Emergency Services to advance implementation of the 9-8-8 call system mental health crisis call centers. ### 8 Feb. 8, 2022 Item #2 Page 13 of 13