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Legislature Passes FY 2018–19 State Budget with Funding for Homelessness Programs, Disaster Response, Transportation Projects and Rainy Day Fund

Action on Additional Trailer Bills Expected Next Week

June 15, 2018
The Legislature passed the main FY 2018–19 State Budget Act and some of the associated trailer bills on Thursday, June 14, a day before the constitutional budget deadline establishing the state’s financial plan for the fiscal year that begins July 1.
 
The final budget largely tracked with Gov. Jerry Brown’s May Budget Revise with total spending of $137.7 billion in General Fund spending, out of a total budget of $199.7 billion. The budget votes came almost a week after the Governor, Senate President pro Tem Toni Atkins (D-San Diego) and Assembly Speaker Anthony Rendon (D-Lakewood) announced that they’d reached a spending agreement for the upcoming fiscal year. 
 
Continuing to build state reserves is a central feature of this budget. The Rainy Day Fund is projected to grow to $13.8 billion by the end of the upcoming budget year, which is its constitutional maximum. Additional revenues have been set aside in two new savings funds — a $200 million reserve for safety net programs and the Budget Deficit Savings Account that will hold a portion ($2.6 billion of the Rainy Day Fund) until after May 31, 2019.
 
The budget also addresses homelessness, one of the League’s 2018 strategic priorities, with $500 million in one-time Homeless Emergency Aid Block Grants. This effort has come a long way since January, when no new funding for homelessness was included in the Governor’s budget. The League’s executive officers initially raised the homeless issue with the Governor at a meeting in January. Following that, throughout the year the League worked with a coalition including mayors representing the state’s largest cities on this issue. These efforts resulted in $250 million being included in the May Revise, and later the final agreement at double that amount. A pending trailer bill (AB 1827/SB 861) would provide additional homeless resources by seeking voter approval to resolve a legal ambiguity associated with dedicating mental health funding from Proposition 63 to build 10,000 housing units for the homeless mentally ill through the No Place Like Home Program.
 
While the Legislature approved the main budget bill, SB 840, and several trailer bills, additional trailer bills are expected to be taken up over the next few weeks. Negotiations over Cap-and-Trade revenue allocations is likely to be deferred until after the summer break. As of this writing, the Senate Budget and Fiscal Review Committee has scheduled a meeting to take up remaining trailer bills on Monday, June 18.
 
Homelessness
 
Securing $500 million in one-time funding to support local government efforts to address homelessness is a major bright spot for cities in this year’s budget. While this amount is less than what the League and our cities had advocated for, there were zero dollars proposed in January and it is twice as much as the Governor put forward in the May Revise. Most importantly, cities will have great flexibility when spending these new resources.
 
Funds available to most cities will be distributed through the Continuum of Care (COC) and can be used for a variety of purposes, including emergency shelters, bridge housing, motel vouchers, and supportive housing. A COC is a geographically based group composed of representatives of organizations, including nonprofit homeless providers, victim service providers, faith-based organizations, and local governments. A COC designates certain applicants as the entities responsible for carrying out the projects that the Continuum has identified through its planning responsibilities. A complete list of COCs in California is available online. Given that the state’s largest cities have 50 percent of the state’s homeless population, there is a $150 million direct allocation to a city or city and county with a population over 330,000.

An additional $50 million was also provided to the Department of Health Care Services to provide counties with funding for intensive outreach, treatment and related services for homeless persons in need of mental health services, as referenced in the Health and Human Services Chapter. Another $15 million was provided to fund a pilot program with Adult Protective Services to assist seniors experiencing homelessness or at risk of losing their home by providing temporary rental or utility assistance, housing repairs, landlord mediation, and case management. This program requires local match.
 
The budget also establishes the California Emergency Solutions and Housing Program to fund activities that include rental assistance, housing relocation, navigation centers, emergency housing, and shelter diversion, that will be funded by dedicating 50 percent of the first year of revenue derived from real estate recording fees established by SB 2 (Atkins) of 2017.
 
Another positive is an effort to improve coordination by the state’s various homeless programs by enhancing the role of the state’s Homeless Coordinating and Financing Council and moving it to the Business, Consumer Services and Housing Agency. The council will provide statewide guidance on homelessness issues and development a statewide plan, in collaboration with state and local governments. This action mirrors a recommendation in the recently-released CSAC/League Homelessness Task Force Report that concluded state and local governments should better coordinate on homelessness issues if meaningful progress is to be made. City officials are encouraged to review the task force report and prepare for the millions of dollars that are directed at local governments.
 
Local Wildfire and Disaster Response
 
The League has advocated for $100 million for local fire response, including reimbursement for local agency prepositioning, as well as upgrades to the state’s mutual aid system. The budget package appropriates the following funding for several activities due to the wildfires and mudslides in late 2017.
  • Mutual Aid — Provides $25 million to the Office of Emergency Services for mutual aid. Budget language specifies this funding must be used for equipment and technology that improves the mutual aid system. The League and our coalition partners are advocating to expand this language to allow funding to be used for local agency prepositioning.
  • California Disaster Assistance Act (CDAA) — Increases the CDAA by $49.52 million. The CDAA provides financial assistance to local governments for the reimbursement of local government costs associated with certain emergency activities.
  • CalRecycle — $1.250 million for CalRecycle to lead a disaster recovery and debris removal team to respond to disaster events, train internal staff, support local agency requests for technical assistance, and assist with disaster response and debris removal plans. 
  • Local Government Backfill — Provides $32.9 million to backfill the property tax revenue losses that cities, counties, and special districts will incur in 2017–18 and 2018–19.
  • For details on the 9-1-1 system, please see the AB 1836/SB 870 section.  
The League will continue to seek additional funding for equipment prepositioning from the state’s Cap-and-Trade revenues, which continue to be negotiated.
 
Cap-and-Trade
 
The Legislature deferred action on allocating approximately $1.4 billion Cap-and-Trade revenues that are deposited into the Greenhouse Gas Reduction Fund (GGRF). Rather, the budget package only provides limited resources to GGRF-funded programs to “keep the lights on.” Negotiations on GGRF appropriations will continue between the Legislature, the Administration, and stakeholders. The League will continue to urge funding for local disaster response, waste diversion, the Transformative Climate Communities program, and urban forestry and urban greening, among others.
 
Proposition 68 — Park and Water Bond Implementation
 
Now that voters have approved Proposition 68, the $4 billion parks and water bond, funding will begin flowing to state agencies. The budget makes numerous allocations to multiple state agencies for the first year of implementation of the measure. Allocations include:
  • $39 million for the Natural Resources Agency to provide competitive grants to local agencies, nonprofit organizations, nongovernmental land conservation organizations, and Native American tribes. Grants may be used for numerous purposes including preserving or acquiring Native American, natural, cultural, and historic resources, enhancing natural resources recreation and tourism, developing venues and visitor’s centers, and other purposes;
  • $5 million for the Department of Water Resources for the Sutter Butte Flood Management Agency for sediment management with provisional language to specify the project is consistent with the requirements of this section;
  • $30 million for the State Water Resources Control Board for Pure Water San Diego;
  • $1 million for the Department of Conservation for watershed restoration and conservation projects;
  • $25 million to the Santa Monica Mountains Conservancy for local assistance;
  • $25 million for the State Coastal Conservancy for San Francisco Bay wetland restoration;
  • $10 million for the State Coastal Conservancy for the Santa Margarita River;
  • $19.4 million for the State Coastal Conservancy for coastal watershed;
  • $10 million for the Wildlife Conservation Board to provide grants for wildlife corridor infrastructure projects; and
  • $21 million for the Wildlife Conservation Board for the Lower American River Conservancy Program and Conservation Project grants.  
It will take some time for the affected state agencies to receive these allocations and distribute them through grant programs. The Department of Parks and Recreation notes that once it receives funding, program details will be developed in conjunction with likely public workshops and meetings. Additional details will be posted on the Department’s Grants and Local Services webpage after July 1.
 
The League will continue to monitor Prop. 68 funding allocations and distribute additional details as they become available.
 
Transportation Funding

The budget documents describe the transportation funding to cities and counties received from the Highway Users Tax Account or the Road Maintenance and Rehabilitation Account (SB 1) in FY 2018–19:

Local:
  • $1.2 billion for local streets and roads, including $600 million for cities and $600 million for counties.
  • $355 million for State Transit Assistance.
  • $330 million for the Transit and Intercity Rail Capital Program.
  • $200 million for the State-Local Partnership Program.
  • $100 million for the Active Transportation Program. 
  • $75 million in one-time loan repayments.
  • $25 million for Local Planning Grants.  
State:
  • $1.2 billion for maintenance of the state highway system known as the State Highway Operation and Protection Program.
  • $400 million for bridges and culverts.
  • $306 million for trade corridor enhancements.
  • $250 million for commuter corridors.
  • $25 million for freeway service patrol.    
Note: As mentioned in the League’s January budget summary, the increase in FY 2018–19 funding of $1.2 billion compared to FY 2017–18’s partial year of funding of $445 million is divided equally between cities and counties. Absent repeal, city and county funding will rise to approximately $1.5 billion by the next fiscal year and grow over the following years when adjusted for inflation and as all the revenue increases go into effect.
 
Economic Development and Poverty Assistance
 
The budget includes a five-year extension of the California Competes Tax Credit program, tax credit allocation authority of $180 million per year through 2022–23, and $1.4 million in budget authority from the General Fund per fiscal year through 2022–23, to maintain the 10 positions associated with administering the program.
 
An additional $23 million is allocated to small business assistance centers to maximize the draw-down of federal funds and provide other direct assistance to small businesses.
A trailer bill (AB 1837/SB 871) to extend the existing $330 million annual film tax credit from 2020 to 2025 remains pending.
Low income workers are assisted via a $60 million expansion of the Earned Income Tax Credit (EITC) to working individuals who are aged 18 to 24 or over age 65 and to increase the qualifying income range so that employees with one or more dependents working up to full-time at the 2019 minimum wage of $12 per hour would qualify for the credit. An additional $10 million is provided to continue outreach activities and free tax preparation resources related to the EITC.
 
The poor and disabled are assisted by $360 million in ongoing funds supporting a 10 percent grant increase for recipients in the CalWORKs program, and a $200 million to hold harmless those affected by the SSI-Cash Out policy reversal, which means that SSI/SSP recipients are now eligible for CalFresh benefits. It also includes the restoration of cost-of-living adjustments for the CalWORKs program and the SSI/SSP program beginning 2022–23.
 
Cannabis Regulation
 
The budget includes a total of $133.3 million for cannabis-related activities across several departments, and includes a General Fund loan of up to $59 million to the Cannabis Control Fund. Ten million is included for equity programs contingent on the passage of legislation on social equity through the policy process.
 
California Department of Corrections and Rehabilitation
 
To support progress on efforts to manage the prison population consistent with the federal court order to maintain that population at 137.5 percent of the correctional system’s design capacity, the budget provides $50 million in community-based reentry and housing support for formerly incarcerated individuals. To further assist with rehabilitative efforts, it also allocates $13.5 million in 2018–19 and 89.2 positions to reduce offender/correctional counselor ratios from 150:1 to 135:1.
 
In a related effort, $16 million (General Fund) in FY 2018–19, and $20 million in FY 2019–20, is provided for the Prison to Employment Initiative to better link education and job training in prison to post-release employment; integrate services of reentry service providers and career centers; and fund regional integration, direct services, and post-release supportive services. An additional $15 million is allocated for a two-year period to a job training program called Breaking Barriers to Employment Initiative created by AB 1111 (E. Garcia) of 2017.
 
Department of Justice
 
While the May Revise proposed $14 million to support the investigation and enforcement of illegal cannabis activities, this proposed funding was removed from the final budget, however, it includes several funding augmentations to support the following programs:
  • $11.4 million in one-time funding to offset revenue declines in the DNA identification fund;
  • $10 million to implement the California Sex Offender Registry (SB 384, Chapter 541, Statutes of 2017) which mandates replacement of the lifetime sex offender registry with a tiered registration system beginning Jan. 1, 2021;
  • $5.63 million to support two investigation teams to combat cybercrimes, white collar crimes and human trafficking;
  • $2.5 million to secure the Department of Justice and law enforcement data;   
  • $1 million towards auditing the number of untested sexual assault kits statewide; and
  • $6.5 million towards reducing the backlog of untested sexual assault kits.  
Fireworks Disposal
 
The budget allocates $3.6 million to the Office of the State Fire Marshall for the management and disposal of illegal fireworks. This comes on the heels of an 18-month investigation into an illegal fireworks ring occurring in multiple locations, which resulted in CalFIRE’s seizure of more than 50,000 pounds of fireworks.
 
Peace Officer Standards and Training
 
The budget provides $25 million to support law enforcement officers with additional trainings in use of force and de-escalation, mental health crisis encounters and establishes an Innovations Grant for organizations that provide law enforcement trainings in areas like implicit bias and officer wellness.
 
Forest Carbon Plan
 
The Governor released a Forest Carbon Plan in May to support forest improvement and fire protection. Along with an accompanying Executive Order, the plan sets forth a multi-prong strategy to improve forest health and increase forest resiliency to improve the health and resiliency of California’s forests.
 
The budget package includes $96 million for various departments in the Natural Resources Agency to:
  • Increase pace and scale of forest management and restoration efforts;
  • Build local capacity and strengthen regional collaborations; and
  • Innovate and increase economies around the use of materials from forest health projects.  
Safe and Affordable Drinking Water
 
An effort has stalled, so far, to levy a monthly tax on water and dairy and fertilizer fees to fund safe and affordable drinking water. There had been discussion of inserting this proposal into a budget trailer bill backed by the administration that would be substantially similar to SB 623 (Monning). The Legislature rejected this proposal in the budget package and took no action. The budget package, however, sets aside $23.5 million for the State Water Resources Control Board that may be acted upon later in this legislative session.
 
Flood Control Infrastructure
 
The budget includes funding for the Department of Water Resources for the following flood control infrastructure projects:
  • $20 million for support costs associated with urban levee projects, and shall be available for encumbrance or expenditure until June 30, 2023.
  • $40 million for two purposes (1) operations, maintenance, repair, rehabilitation, and replacement of state flood control levees and infrastructure that reduce state liability, and (2) for support or local assistance. Local assistance funds shall be awarded as competitive grants or direct expenditures for operations and maintenance of locally maintained levees and related activities consistent with program guidelines to be developed by the Department of Water Resources by Jan. 1, 2019.
  • $150 million for the Urban Flood Risk Reduction Program for study, planning, and construction of specified projects.  
Note: at the time of this writing there are conflicting accounts on whether additional levee maintenance funds, beyond those described above, may be available. This should become clearer in the coming days as the budget is further analyzed. 
 
Department of Fish and Wildlife
 
To address a structural deficit, the budget package provides a three-year funding plan for the department. It includes a total of $29.6 million in funding, most of which comes from the state’s General Fund with $5 million from the Tire Fund. This funding will address a $19.6 million structural deficit and spend $10 million to expand program activities. The complex package also includes $2 million in one-time funding for the department to contract with an independent entity to conduct a service-based budget review and development of a budget tracking system.
 
Early Childhood Programs Overview
 
The budget contains a total of $1 billion federal and state funds over four years for early childhood programs, including adding 13,400 child care and 2,947 preschool slots, rate increases for providers, and new quality investments. In addition, the budget provides $90 million beginning April 1, 2019 and $360 million ongoing funding to increase CalWORKs grants designed to reduce the number of children living in deep poverty.
 
Discrimination and Harassment Prevention
 
Includes three permanent positions within the Department of Human Resources to establish a centralized unit, within the Office of Civil Rights, specifically responsible for the statewide oversight of monitoring and addressing discrimination and harassment complaints received by state entities. The unit will be responsible for analyzing complaint data, assisting state entities with problems, and addressing negative trends. The unit will also provide detailed reporting on all activities, allowing CalHR to be proactive in identifying compliance issues within departments. Funding will come from both the General Fund and special funds to support this effort.
 
Census Outreach
 
Reflecting a major state effort to ensure California’s population is fully counted, $90.3 million is allocated in the budget for the 2020 Census Outreach effort, including moving the existing staff from the Office of Planning and Research to the Government Operations Agency.
 
Trailer Bills Approved:
 
SB 840 (Committee on Budget and Fiscal Review) Budget Act of 2018 
 
This is the main budget act.
 
SB 841 (Committee on Budget and Fiscal Review) Augmentation to Budget Act of 2018 
 
Makes an $890 million augmentation to the budget act for various purposes.
 
SB 848 (Committee on Budget and Fiscal Review) Transportation
 
This measure makes a number of technical and clarifying changes to several transportation issues. These include allowing self-help counties that have passed a county-wide sales tax measure for transportation projects to limit CalTrans administrative charges to 10 percent and giving cities and counties the ability to reimburse themselves for Road Maintenance and Rehabilitation Account funding expenditures across multiple fiscal years. In addition, this trailer bill also requires the Department of Motor Vehicles to impose an additional $1 transaction fee to cover its implementation costs. 
 
SB 850 (Committee on Budget and Fiscal Review)/AB 1816 (Committee on Budget) – Housing and Homelessness
 
Makes various statutory changes to implement budget provisions related housing and homelessness. Notably:
  • Makes clarifying changes to SB 35 (Wiener), Chapter 366, Statutes of 2017, related to building permits; building site exclusions; and skilled workforce requirements.
  • Creates the Homelessness Emergency Aid Program for the purpose of providing localities with one-time flexible block grant funds to address immediate homelessness challenges. Appropriates $250 million and distributes the funds through the COC process as outlined by the federal Department of Housing and Urban Development.  Funds are allocated as follows:
    • $40 million to COCs with a homeless point-in-time count of over 20,000 persons;
    • $60 million to COCs with a homeless point-in-time count between 4,000 and 19,999 persons;
    • $30 million to COCs with a homeless point-in-time count between 2,500 and 3,999 persons;
    • $48 million to COCs with a homeless point-in-time count between 1,800 and 2,499 persons;
    • $18 million to COCs with a homeless point-in-time count between 1,500 and 1,799 persons;
    • $32 million to COCs with a homeless point-in-time count between 1,000 and 1,499 persons;
    • $12 million to COCs with a homeless point-in-time count between 750 and 999 persons;
    • $7 million to COCs with a homeless point-in-time count between 250 and 749 persons; and
    • $2 million to COCs with a homeless point-in-time count of less than 250 persons.
  • Allocates $100 million to COCs. Funds are distributed based proportionate share of total homeless population based on the 2017 homeless point-in-time count.
  • Allocates $150 million to cities with a population over 330,000 based on the proportionate share of the total homeless population.
  • Allocates $5 million to the Bridges at Kraemer Place emergency shelter, located in Orange County.
  • Allocates $5 million to the County of Merced to create a homeless navigation center.
  • Establishes the Emergency Solutions and Housing Program to:
    • Provide rental assistance and housing relocation and stabilization services to ensure housing affordability to people experiencing homelessness or at risk of homelessness;
    • Operating subsidies in the form of 15-year capitalized operating reserves for new and existing affordable permanent housing units for homeless individuals and families;
    • Flexible housing subsidy funds for local programs that establish or support the provision of rental subsidies in permanent housing to assist homeless individuals and families;
    • Operating support for emergency housing interventions;
    • Systems support for activities necessary to maintain a comprehensive homeless services and housing delivery system, including CES, data, and HMIS reporting, and homelessness planning activities; and
    • To develop or update a CES system.
  • Allows 50 percent of the first year of the real estate recording fee created by SB 2 (Atkins), Chapter 364, Statutes of 2017, to be allocated to the Housing for a Healthy California program.
  • Makes statutory changes to the Office of Migrant Services.
  • Moves the Homeless Coordinating and Financing Council from the Housing and Community and Economic Development to the Business, Consumer Services and Housing Agency. Increases the membership of the council from 15 to 17. The two new members are formerly homeless youth who lives in California.  
SB 852 (Committee on Budget and Fiscal Review) Corrections Officer’s MOU
 
Provides legislative approval for a memorandum of understanding and associated pay increases negotiated by the state with state correctional peace officers.
 
SB 853 (Committee on Budget and Fiscal Review) Developmental Services
 
Omnibus vehicle for various changes related to stet developmental services programs.
 
SB 854 (Committee on Budget and Fiscal Review) Public Resources
 
AB 1820 is the resources trailer bill that makes various statutory changes to implement the resources, environmental protection, energy, and agriculture budget actions. This bill contains numerous statutory changes, including the following:
  • Dam Inundation Maps and Emergency Action Plans — Clarifies the process for dam owners where there is an existing or partial Emergency Action Plan or inundation map as of March 1, 2017. Also requires dam owners with partial Emergency Action Plans or inundation maps to develop a timeline by which they will develop the comprehensive Emergency Action Plan and inundation maps.
  • Advanced Payments — Authorizes the California Air Resources Board to make advance payments to grantees of a grant program if the advance payments are necessary to meet the purposes of the program and additional criteria are met.
  • Beverage Container Recycling Program Enforcement — Clarifies the authority of the California Highway Patrol (CHP) to arrest individual transporters who illegally transport out-of-state empty containers for redemption in California.
  • Beverage Container Recycling Plastic Market Development Program — Extends the sunset date on the Plastic Market Development Program to July 1, 2022.
  • Office of Environmental Health Hazard Assessment — The Office has been required to publish public health goals for drinking water contaminants since 1998. This bill requires each public health goal to be reviewed at least once every five years unless the Office determines that there has not been a detection of the corresponding contaminant.  
AB 1817 (Committee on Budget) State Government
 
Department of Housing and Community Development (HCD)
  • Extends the 0.42 percent annual monitoring fee to the Veterans Housing and Homelessness Prevention Program and Affordable Housing and Sustainable Communities program and deposits those fees into a single fund to facilitate HCD’s statutorily-required monitoring duties as projects funded by these programs transition into the long-term monitoring phase.  
  • Requires HCD to maintain a 1.5 percent default reserve rate across programs, and allows HCD to expend default reserve funds across programs. The Multifamily Housing Program (MHP) currently includes a required annual 0.42 percent interest payment on the loan principal to fund HCD’s long-term monitoring efforts.  
Governor’s Office of Business Development (GO-Biz)
  • Creates the California Small Business Development Technical Assistance Expansion Program within GO-Biz for the purpose of assisting small businesses through free or low-cost one-on-one consulting and low-cost training by entering into grant agreements with one or more federal small business technical assistance centers.  
  • Requires, upon appropriation of funds by the Legislature, the office to make grants to federal small business technical assistance centers that the office determines meet specified eligibility criteria and requires a federal small business technical assistance center that receives funding under this program to provide periodic performance and financial reports.
  • Require Go-Biz, prior to finalizing contract negotiations and the committee hearing process, to provide information, so long as the information is not confidential, to the committee members regarding the potential awardees and allow the committee members to work through Go Biz to ask questions of the applicants if needed.
  • Allow for investment in training opportunities offered by the taxpayer to be a factor that Go-Biz should consider.
  • Require LAO to do a detailed analysis of the economic effects and administration of the tax credit by Jan. 1, 2021.
  • Approves $20 million (General Fund) annually for five years for the Small Business Development Technical Assistance Expansion Program. Of this amount, $3 million is for the California Small Business Development Center Program.  
  • Authorizes an additional $3 million (one-time General Fund) to be dedicated to for other federal small business technical assistance centers.  
Cannabis: Includes language to address a technical issue related to background checks.

AB 1824 (Committee on Budget) Voting Systems, Veterans, Victim’s Compensation
 
Contains language implementing the replacement of county voting systems funded by $134.3 million General Fund. This would provide funding for hardware, software, licenses and peripherals. Also, adopts trailer bill language to guide the expenditure of these funds. For example, allows counties to receive reimbursement for activities such as research and development of new voting systems, if the efforts result in the development of a voting system that is ultimately certified by the Secretary of State. In addition the bill:
  • Requires a master plan for veteran’s homes to be prepared by the Veterans Department no later than Dec. 31, 2019, and updated every five years.
  • Grants an extension for an application for compensation for victims of the “East Area Rapist,” also known as the “Golden State Killer.” This extension applies to a victim or derivative victim who incurs emotional harm as a result of preparing to testify and sunsets on Dec. 31, 2019.
  • Adds car muffler and exhaust design and noise violations to the list of findings where an officer can take appropriate enforcement action instead of issuing a “fix it ticket.”  
AB 1825 (Committee on Budget) Education Prop. 98 Certification
 
Contains various provisions related to the Prop. 98 guarantee for school funding.
 
AB 1826 (Committee on Budget) State Capitol Annex Replacement
 
Contains language that specifies the process for replacing the existing state Capitol Annex building with a new structure. Legislative offices would first be housed in a new building near the state capitol until the replacement structure is completed.
 
AB 1830 (Committee on Budget) Budget Reserve Accounts
 
Creates two new state budget reserve accounts:
  • The Budget Deficit Savings Account, which allows the state to save additional funds when the Budget Stabilization Account is fully funded. Uses the Budget Deficit Savings Account as a holding account for a $1.747 billion discretionary deposit. In the event that higher revenues reduce the amount that is needed to fill the Rainy Day Fund after May 31, 2019, half of the remaining balance would remain in this account and half would be transferred to the Safety Net Reserve CalWORKs Subaccount.
  • The Safety Net Reserve, which allows the state to set aside savings from lower caseloads and costs during good economic times to help pay for increased caseload costs during future downturns. This account has a CalWORKs and a Medi-Cal subaccount to reflect these two major safety net programs. Deposits $200 million into the Safety Net Reserve CalWORKs Subaccount.  
AB 1831 (Committee on Budget) State Government. Appointments. Infrastructure.
 
Provides that up to $415 million in excess of the 10 percent of the General Fund threshold for the Budget Stabilization Account be expended only on infrastructure and that any amount above that be split evenly on a continuous basis between a Rail Infrastructure Account and the Department of Housing and Community Development’s Multifamily Housing Program for infrastructure.  
 
AB 1834 (Committee on Budget) Financing Corrections Health Facility Projects
 
Authorizes the State Public Works Board to issue an increase of $43 million dollars in bonds towards the design and construction of new, or renovate existing, buildings and any necessary ancillary improvements, at facilities under the jurisdiction of the department to provide medical, dental, and mental health treatment or housing. Each allocation shall be approved by the State Public Works Board.
 
Additional Trailer Bills (Not Yet Acted Upon)
 
When the Legislature adjourned on June 14 for the weekend, the following budget trailer bills were not yet voted on:
  • AB 1808/SB 842 – Education
  • AB 1809/SB 843 – Higher Ed
  • AB 1810/SB 844 – Health
  • AB 1811/SB 845 – Human Services
  • AB 1812/SB 846 – Public Safety
  • AB 1813/SB 847 – Courts
  • AB 1821/SB 855 – Taxes (EITC, Hiring Credit, CalCompetes)
  • AB 1827/SB 861 – No Place Like Home
  • AB 1832/SB 866 – General Government III (Civil Service, Census)
  • AB 1836/SB 870 – 911 Fee
  • AB 1837/SB 871 – Film Tax Credit  
Next Steps
 
The Governor has until July 1 to sign the budget bill. Typically, most trailer bills are signed at that time as well. 
 


 
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