HomeMy WebLinkAbout2020-05-12; City Council Legislative Subcommittee; ; Legislative UpdateCity Council Legislative Subcommittee
Meeting Date: May 12, 2020
To: City Council Legislative Subcommittee
From: Jason Haber, Intergovernmental Affairs Director
Item 1: Legislative Update
{city of
Carlsbad
Recommendation: Receive an update on state and federal legislative and budget activity,
recent and ongoing advocacy efforts and operational needs, and provide feedback to staff.
Discussion:
The California Legislature has reconvened as of May 4, 2020, and the city's state lobbyist,
California Strategies and Advocacy, is actively engaging legislators to identify bills moving
forward in 2020.
As noted in the revised Legislative Calendars (Exhibit 1), policy committee hearings are
underway in the State Assembly and are expected to resume as of May 11 in the State Senate.
The Governor's office will release its May Budget Revision on May 14 and will be updating their
state budget proposal based on the latest economic data available. The State Department of
Finance has released a May Revision forecast (Exhibit 2), which anticipates an overall budget
deficit of approximately $54.3 billion, of which $13.4 billion occurs in the current year and
$40.9 billion is in the fy 2020-21 budget year. With the delay in personal income tax receipts to
July 15, the state is not expected to have a complete picture of state revenues until August. As
such, a second round of budget deliberations is expected to occur in the August timeframe.
Mayor Hall signed onto a joint statement with Rep. Mike Levin and all of the mayors from
California's 49th Congressional District, who are calling on Congress to pass additional relief
legislation with direct stabilization funding to localities with populations under 500,000 and to
lower the threshold for direct funding through the Coronavirus Relief Fund (Exhibit 3f
The city is receiving daily updates on state legislative and budget developments, as well as
summaries of the Governor's daily press updates from both California Strategies and Advocacy
and the League of California Cities. City staff continue to identify and evaluate operational
needs that might translate into additional state and federal advocacy initiatives, which will be
presented for discussion and feedback from the Legislative Subcommittee, as needed.
City Manager's Office
lnter,;p~vernmental Affairs
~tm-~8lBvillage Dr. I Carlsbad, CA 920081 760-434-2958 t Item #1 Page 1 of 12
May 12, 2020
Page 2
Exhibits:
1. May 6, 2020 -CA Assembly Rules Committee Memo on Revised Legislative Calendars
2. May 7, 2020 -CA Department of Finance Fiscal Update
3. May 7, 2020-Rep. Levin Statement on Federal Relief Funding to Smaller Municipalities
May 12, 2020 Item #1 Page 2 of 12
Exhibit 1
DA TE: May 6, 2020
TO: All Capitol and LOB Offices
FROM: Assembly Rules Committee
SUBJECT: Revised Legislative Calendars
Attached, please find a copy of the revised Assembly and Senate calendars for the remainder of
the 2020 Legislative session.
As you know, the Assembly resumed session on May 4. 2020 and the Senate plans to resume
on May 11, 2020. Policy committees in both houses are scheduled to hold hearings over the
next few months, and work is also underway on the revised state budget. The House calendars
will sync up again beginning July 13, 2020.
48
May 12, 2020 Item #1 Page 3 of 12
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Vik. 3 15
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Wk.I 29
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Spring 5 Recess
Wk. 2 12
Wk.3 19
Wk.4 26
s
Wk.4
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Wk. 3 17
Wk.4 24
Wk. I 31
2020 TENTATIVE ASSEMBLY LEGISLATIVE CALENDAR
COMPILED BY 1HE OFFICE OF 1HE ASSEMBLY CHIEF CLERK
JANUARY
M T w TH
l 2
6 7 8 9
13 14 15 16
20 21 22 23
27 28 29 30
FEBRUARY
M T w TH
3 4 5 6
10 11 12 13
17 18 19 20
24 25 26 27
MARCH
M T w TH
2 3 4 5
9 10 11 12
16 17 18 19
23 24 25 26
30 31
APRIL
M T w TH
1 2
6 7 8 9
13 14 15 16
20 21 22 23
27 28 29 30
MAY
M T w TH
4 5 6 7
11 12 13 14
18 19 20 21
25 26 27 28
F s
3 4
IO 11
17 18
24 25
31
F s
l
7 8
14 15
21 22
28 29
F s
6 7
13 14
20 21
27 28
F s
3 4
IO 11
17 18
24 25
F s
1 2
8 9
15 16
22 23
29 30
Revised 5-&20
DEADLINES
Jan. I Statutes take effect (Art. JV, Sec. S(c)).
Jan. 6 Legislature reconvenes (J.R 51 (al( 4)).
Jan. 10 Budget must be submitted by Governor (Art. IV, Sec. 12(a)).
Jan. 17 Last day for policy committees to hear and report to fiscal committees
fiscal bills introduced in their house in the odd-numbered year
(J.R 6l(b)(I)).
Jan. 20 Martin Luther King. Jr. Day.
Jan. 24 Last day for any committee to hear and report to the floor bills introduced
in that house in the odd-numbered year. (J.R 61(b)(2)). Last day to submit
bill requests to the Office of Legislative Counsel.
Jan. 31 Last day for each house to pass bills introduced in that house in the odd-
numbered year (J.R 6l(b)(3))(Art. IV, Sec. I0(c)).
Feb. I 7 Presidents' Day.
Feb. 21 Last day for bills to be introduced (J.R. 61(b)(4), J.R 54(a)).
Mar. 3 Primary Election.
Mar. 20 Joint Recess begins upon adjournment (A.C.R. 189, Resolution Chapter 15,
Statutes of 2020).
Mar. 27 Cesar Chavez Day observed.
May 4 Assembly reconvenes from Joint Recess (A.C.R. 189, Resolution
Chapter 15, Statutes of2020).
May 22 Last day for policy committees to hear and report to fiscal committees
fiscal bills introduced in the Assembly (J.R. 6I(b)(5)).
May 25 Memorial Day.
May 29 Last day for policy committees to hear and report to the floor nonf15cal
bills introduced in the Assembly (J.R. 6l(b)(6)).
*Holiday schedule subject to final approval by Rules Committee. Page I of2
OVER
May 12, 2020 Item #1 Page 4 of 12
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No 14 1-lrl!S.
Summer 21 Recess
Summer 28 Recess
s
Summer
Recess
Summer 5 Recess
'Wk. 3 12
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V.'k. l 26
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No 16 !-lr<>S.
No 23 Hres_
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2020
Sept. 30
Oct. l
Nov. 3
Nov. 30
Dec. 7
2021
Jan. 1
M
1
8
15
22
29
M
6
13
20
27
2020 TENTATIVE ASSEMBLY LEGISLATIVE CALENDAR
JUNE
T w
2 3
9 10
16 17
23 24
30
JULY
T w
I
7 8
14 15
21 22
28 29
COMPil.ED BY 1HE OFFICE OF THE ASSEMBLY CHIEF CLERK
Revised 5-6-20
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11 12
18 19
25 26
TH F
2 3
9 10
16 17
23 24
30 31
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6
13
20
27
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II
18
25
June 5 Last day for fiscal committees to hear and report to the floor bills
introduced in the Assembly (J.R. 61 (bX8)).
June 15 Budget Bill must be passed by midnight (Art. IV, Sec. 12(c)).
June 15-19 Assembly Floor session only. No committee may meet for any
purpose except for Rules Committee, bills referred pursuant to
Assembly Rule 77.2, and Conference Committees (JR. 6J(bXlO)).
June 19 Last day for the Assembly to pass bills introduced in that house
(JR. 6J(b)(ll)).
Summer Recess begins for the Assembly upon adjournment, provided
Budget Bill has been passed (J.R. 5l{bX2)).
June 25 Last day for a legislative measure to qualify for the Nov. 3 General
Election ballot (Elections Code Sec. 9040).
July 3 Independence Day observed.
July 13 Legislature reconvenes from Summer Recess (JR. 5l{b){2)).
July 31 Last day for policy committees to hear and report f15caJ bills to fiscal
committees (J.R. 6l(b)(J3).
AUGUST
M
3
10
17
24
31
T w TH
4 5 6
II 12 13
18 19 20
25 26 27
F s
I
7 8
14 15
21 22
28 29
Aug. 7 Last day for policy committees to meet and report bills (J.R. 6l(bX14)).
Aug, 14 Last day for fiscal committees to meet and report bills (J.R. 6l(b)(l5)).
Aug. 17 -31 Floor session only. No committee may meet for any purpose except
Rules Committee, bills referred pursuant to Assembly Rule 77.2, and
Conference Committees (J.R. 6J(b)(l6)).
Aug. 21 Last day to amend bills on the floor (J.R. 6J(bX17)).
Aug. 31 Last day for each house to pass bills (Art. IV, Sec IO(c), J.R. 6l(b)(l8)).
Final Recess begins upon adjournment (J.R. 51{b)(3)).
IMPORTANT DATES OCCURRING DURING FINAL RECESS
Last day for Governor to sign or veto bills passed by the Legislature before Sept. I
and in the Governor's possession on or after Sept. l (Art. IV, Sec. I0(b)(2)).
Bills enacted on or before this date take effect January I, 2021. (Art. IV, Sec. 8(c)).
General Election.
Adjournment sine die at midnight (Art. IV, Sec. 3(a)).
2021-22 Regular Session convenes for Organizational Session at 12 noon.
(Art. IV, Sec. 3(a)).
Statutes take effect (Art. IV, Sec. 8(c)).
*Holiday schedule subject to finaJ approval by Rules Committee. Page 2 of2
May 12, 2020 Item #1 Page 5 of 12
s M
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19 20
26 27
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22 23
29 30
s M
5 6
12 13
19 20
26 27
s M
3 4
10 11
17 18
24 25
31
2020 TENTATIVE LEGISLATIVE CALENDAR
COMPILED BY THE OFFICE OF THE SECRET ARY OF THE SENA TE
Revised April 23, 2020
JANUARY
T w TH
1 2
7 8 9
14 15 16
21 22 23
28 29 30
FEBRUARY
T w TH
4 5 6
11 12 13
18 19 20
25 26 27
MARCH
T w TH
3 4 5
IO 11 12
17 18 19
24 25 26
31
APRIL
T w TH
1 2
7 8 9
14 15 16
21 22 23
28 29 30
MAY
T w TH
5 6 7
12 13 14
19 20 21
26 27 28
F
3
10
17
24
31
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7
14
21
28
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20
27
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17
24
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15
22
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15
22
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21
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18
25
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2
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16
23
30
DEADLINES
Jan. I Statutes take effect (Art. IV, Sec. 8(c)).
Jan. 6 Legislature Reconvenes (JR 5l(a)(4)).
Jan. 10 Budget must be submitted by Governor (Art. IV, Sec. 12(a)).
Jan. 17 Last day for policy committees to hear and reprut 10 fiscal committees
fiscal bills introduced in their house in the odd-numbered year
(JR 61(bXI).
Jan. 20 Manin Luther King, Jr. Day.
Jan. 24 Last day for any committee to hear and report to the floor bills
introduced in that house in the odd-numbered year (J.R. 6l(b)(2)).
Last day to submit bill requests to the Office of Legislative
Counsel.
Jan. 31 Last day for each house to pass bills introduced in that house in the
odd-numberedyear(Art. IV, Sec. IO(c)), (J.R. 6l(bX3)).
Feb. 17 Presidents' Day.
Feb. 21 Last day for bills to be introduced (JR. 6l(bX4)), (JR. 54(a)).
Mar. 16. Legislature in recess, A.CR 189, Resolution Chapter 15, Statutes of2020
Mar. 27 Cesar Chavez Day observed
May 11. Senate Reconvenes
May 25. Memorial Day
May 29. Last day for policy committees to h~ar and report to f'ucal committees
fiscal bills introduced in their house (J .R 61 (b X 5) ).
Page I of2
*Holiday schedule subject to Senate Rules
committee approval.
May 12, 2020 Item #1 Page 6 of 12
s M
l
7 8
14 15
21 22
28 29
s M
5 6
12 13
19 20
26 27
s M
2 3
9 10
16 17
23 24
30 31
2020 TENTATIVE LEGISLATIVE CALENDAR
JUNE
T w TH
2 3 4
9 10 11
16 17 18
23 24 25
30
JULY
T w TH
I 2
7 8 9
14 15 16
21 22 23
28 29 30
AUGUST
T w TH
4 5 6
II 12 13
18 19 20
25 26 27
COMPILED BY THE OFFICE OF THE SECRET ARY OF 11IE SENA TE
Revised April 23, 2020
F
5
12
19
26
F
3
10
17
24
31
F
7
14
21
28
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,6
13
20
27
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4
11
18
25
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8
15
22
29
June S. Last day for policy committees to bear and repon to tbe floor non-fiscal bills
introduced in their house (J.R. 6J(b)(6J. Last day for policy committees to meet prior to
June 8 (J.R 6J(b)(7)).
Jun• IS. Budget Bill must be passed by midnight (Alt. IV, Sec. 12(.c)(3)).
June 19. Last day for fIScal committees to hear and repon to the floor bills introduced
in their house (l.R. 6I(b)(8)). Last day for fiscal committee's to meet priorto June 29
(J.R.61(b)(9)).
June 22-26. Floor Session Only. No committees, otber than conference or Rules
committees, may meet for any plll'J)ose (J.R. 6J(b)(I0)).
June 25. Last day for a legislative measure to qualify for the
November 3 General Election ballot (Election code Sec. 9040).
June 26. Last day for each house to pass bills introduced in that house (J.R. 61 (b )(11 )).
July 2. Summer Recess begins upon adjournment provided
Budget Bill has been passed (J.R. 51(b)(2)J.
July 3. Independence Day observed.
July 13. Legislature reconvenes from Summer Recess (J.R. 5J(b)(2)).
July 31. Last day for policy committees to hear and repon fiscal bills to fiscal
committees (J.R. 6l(b){l3)).
August 7. Last day for policy committees to meet and report bills
(J.R. 6l(bJ(l4)).
Aug. 14 Last day for fiscal committees to meet and report bills
(J.R. 6l(b)(l5)).
Aug. 17-31 Floor Session only. No committees, other than conference and
Rules committees, may meet for any plll'J)osc (J.R. 6l(b)(J6)).
Aug. 21 Last day to amend bills on the Floor (J.R. 6l(b)(l7)).
Aug. 31 Last day for each house to pass bills, except bills that take effect
Immediately or bills in Extraordinruy Session (Art IV, Sec. IO(c)),
(J.R. 6l(b){l8)). Final recess begins upon adjournment(J.R. 5J(b)(3)).
*Holiday schedule subject to Senate Rules committee approval.
2020
Sept. 30
Nov.3
Nov. 30
Dec. 7
2021
Jan. l
Jan. 4
May 12, 2020
IMPORTANT DATES OCCURRING DURING FINAL RECESS
Last day for Governor to sign or veto bills passed by the Legislature before
Sept. land in the Governor's possession on or after Sept. I (Art. IV, Sec. 10(b)(2)).
General Election
Adjournment Sine Die at midnight (Art. IV, Sec. 3(a)).
12 m. convening of2021-22 Regular Session (Art. IV, Sec. 3(a)).
Statutes take effect (Art. IV, Sec. 8(c)).
Legislature reconvenes (JR 51(a)(l)). Page 2 of2
Item #1 Page 7 of 12
Exhibit 2
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• DEPARTMENT OF" r:-1 NAN c E GAVIN N&:WEiDM • C3CJVE:RNCJR .C-'°''-'•-o:R .. , .. r --,,-T .. -Tl:-C-AP_f'_0~-■-,.-00-.. -, -, _.-,,-■ =,,~..:::C .. :.:..; .... :.:..;C:_NT...:..;O :..=CA:....:.■:....: .. =-:§B::;_;t;::_-'•-49_9_;8 =■ ..,=..,,,.,:....:...=,OC..:..;;< • .:..;:CA:._:.a:..:.;:a~
Cf'f'ICE Cf' THIE 01 .. ECTOR
Fiscal Update
May 7, 2020
The COVID-19 Pandemic and California's Budget Outlook
The COVID-19 pandemic has caused enormous hardship for families, businesses
and governments across the world, the United States, and California. It has
endangered health, stressed the health care system, and caused devastating
losses in family and business income.
COVID-19 has caused a national recession, a precipitous decline in income,
rapidly rising health and human services caseloads and substantial COVID-19
driven costs. This update reflects the Department of Finance's May Revision
forecast, and underscores the necessity of further federal stimulus to help states
and local governments support an effective response to COVID-19, a timely and
fact-based modification of the stay-at-home order, and a safe, expedited
economic recovery.
Callfornla's Pre-Pandemic Budget and Economy
California began 2020 with a strong bill of financial health-a strong economy,
historic reserves, and a structurally balanced budget.
• The unemployment rate (3.9 percent} was one-third of its Great Recession
peak ( 12.3 percent).
• The "Wall of Debt" (past budgetary borrowing) was eliminated, and
supplemental payments were made to retirement obligations.
• The 2020-21 Governor's budget reflected a $5.6 billion surplus.
• The budget reflected a record level of reserves: $21 billion in FY 2020-21,
including $18 billion projected in the state's Rainy Day Fund.
• Revenues through March ran $1.35 billion above January's projections, as
markets outperformed the budget forecast.
May 12, 2020 Item #1 Page 8 of 12
COVID-19 Recession
The rapid onset of the COVID-19 pandemic has had an immediate and severe
impact on the global, national, and state economies. In California, COVID-19
has led to the following:
• In the last one-week reporting period, nearly 478,000 claims were filed in
California for state and federal unemployment benefits. Since mid-
March, more than 4.2 million claims have been filed.
• Job losses that have occurred disproportionately in the lower-wage
sectors of the economy-amplifying the wage disparity that existed
before the pandemic.
• Finance projects that the 2020 unemployment rate will be 18 percent, a
much higher rate than during the Great Recession.
The May Revision economic forecast reflects that COVID-19 impacts will
continue to cause economic losses in 2020:
• California personal income is projected to fall by nearly 9 percent on an
annual basis in 2020.
• Permits for new housing construction, a key economic indicator, are
forecast to drop by more than 21 percent this year.
How This Compares To Past Downturns
The widespread economic interruption caused by the global pandemic is
unprecedented in modern history. The chart below provides some perspective
on how different components of personal income are projected to fall in 2020
compared to the Great Recession. Income from transfer payments,
unemployment insurance, and other social safety net programs are projected
to increase at a faster rate.
The May Revision forecast projects that the impact of these economic losses will
be disproportionately borne by low-and middle-income Californians. This is
particularly concerning as state median income did not return to the pre-Great
Recession level until 2018.
2
May 12, 2020 Item #1 Page 9 of 12
•-k lo Tro\19h Inc om~ Lon
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Impact on Revenues
Job losses and business closures will sharply reduce state revenues. Compared
to the January forecast, the state's three main General Fund revenue sources
are projected to drop for the 2020-21 fiscal year as follows:
• Personal Income Tax: -25.5 percent.
• Sales and Use Tax: -27.2 percent.
• Corporation Tax: -22.7 percent.
Specifically, Finance projects that General Fund revenues will decline by
$41.2 billion below January projections, as follows:
• 2018-19: +$0.7 billion
• 2019-20: -$9.7 billion
• 2020-21: -$32.2 billion
Under Proposition 98's constitutional calculation, this revenue decline results in a
lower required funding level by $18.3 billion General Fuhd for K-12 schools and
community colleges.
3
May 12, 2020 Item #1 Page 10 of 12
Large Budget Deficit, Plus Ongoing Structural Deficits, Are Projected
The Revenue declines enumerated above ($41.2 billion), combined with
$7. l billion in caseload increases supporting health and human services
programs, and other expenditures of approximately $6 billion (the majority in
response to COVID) will result in an overall budget deficit of approximately
$54.3 billion, of which $13.4 billion occurs in the current year and $40.9 billion is in
the budget year.
• This overall deficit is equal to nearly 37 percent of General Fund spending
authorized in the 2019 Budget Act.
• This is also nearly three and one half times the revised balance in the Rainy
Day Fund ($16 billion).
While the COVID-19 Recession is causing an unprecedented loss of jobs and
income, the projected deficit as a percent of General Fund spending is
modestly smaller than the budget deficits faced by the state in 2003 and in
2009. This is due largely to the state's prudent fiscal management and strong
economic recovery since 2011.
###
Additional information regarding this fiscal outlook can be found in the
associated PowerPoint presentation linked here:
http://www.dof.ca.gov/Budget/Historical Budget Publications/2020-
21 /documents/DOF FISCAL UPDATE POWERPOINT-MAY-7th.pdf
4
May 12, 2020 Item #1 Page 11 of 12
Exhibit 3
U.S. REPRESENTATIVE
MIKE LEVIN
Proudly Serving California's 49th District ------~------
FOR IMMEDIATE RELEASE
Thursday, May 7, 2020
Contact: Eric.Mee@mail.house.gov
Rep. Mike Levin and Local Mayors Double Down on Calls for Federal Relief Funding to Smaller
Municipalities
San Juan Capistrano, CA-Today, U.S. Representative Mike Levin (D-CA) and a bipartisan coalition of
nine local Mayors reiterated their call for direct federal funding to stabilize smaller counties, cities, and
towns-specifically, those with populations under 500,000. Their call supports several letters Rep. Levin
and his House colleagues sent to Congressional leadership requesting funding for small municipalities,
which are struggling with enormous costs and declining revenues due to COVID-19.
"The essential public services that cities provide are critical for our health and security, yet many smaller
cities have been cut off from federal aid and they are desperate for a lifeline," said Rep. Levin. "While
the CARES Act included funding for states and large cities, it wasn't enough, and it's time for House and
Senate leadership to rectify that. The next Coronavirus relief package that Congress passes must provide
more money to cities, and it must set aside funding for cities with fewer than 500,000 residents. Smaller
cities, like those in North County San Diego and South Orange County, need help too. I will do everything
I can to ensure they aren't left behind."
"We have worked day and night throughout this crisis to maintain critical public services and protect the
health, safety, and economic security of our people. As the pandemic erodes our traditional sources of
local revenue, we have risen to the occasion to serve the individuals and families who call our cities
home. We need the federal government to step up. We are calling on Congress and the President to
provide direct aid to our cities in order to offset lost revenues and unexpected costs during this
unprecedented time. The health and well-being of our people depend on it," said Carlsbad Mayor Matt
Hall, Dana Point Mayor Richard Viczorek, Del Mar Mayor Ellie Haviland, Encinitas Mayor Catherine S.
Blakespear, Oceanside Mayor Peter Weiss, San Clemente Mayor Pro Tern Laura Ferguson, San Juan
Capistrano Mayor Troy Bourne, Solana Beach Mayor Jewel Edson, and Vista Mayor Judy Ritter.
The Coronavirus Aid, Reliet and Economic Security (CARES) Act created a Coronavirus Relief Fund with
$150 billion dollars for payments to state, local, and tribal governments confronting the COVID-19
outbreak. However, localities with populations under 500,000 cannot receive the funds directly. Rep.
Levin and the local Mayors are calling on Congress to pass additional relief legislation with direct
stabilization funding to localities with populations under 500,000, and to lower the threshold for direct
funding through the Coronavirus Relief Fund.
May 12, 2020 Item #1 Page 12 of 12