State Budget Deadline Approaches
June 2, 2016
The deadline for the Legislature to send Governor Brown a 2016-17 state budget is less than two weeks away and CSAC’s Legislative team is keenly focused on key priorities for counties as funding discussion move from the Budget Conference Committee to closed sessions with legislative leadership and the Governor. The following article highlights CSAC budget priorities to protect and grow critical funding streams for existing and new county programs totaling over $1 billion dollars.
CSAC is pleased to report early victories in the budget process thus far. First, $16.22 million is secured for elections administration will be available to counties to help fund duties associated with the June 7 primary as well as the November ballot initiative petition verification process. Second, CSAC successfully advocated for a lump sum repayment to counties for AB 85 2013-14 reconciliations, or true ups, from the state. Each county will receive a reconciliation amount after final data sharing between AB 85 formula counties and the Department of Health Care Services concludes later this month, unless a county utilizes the appeals process. Finally, the CSAC-supported Managed Care Organization (MCO) fix was signed into law in March, resolving a potential $1 billion dollar hole in the state general fund and securing several important provisions for county Medi-Cal services and contracting agreements.
Administration of Justice
- Jail construction grants. CSAC supports the Governor’s proposal to allocate $250 million for the construction or renovation of local criminal justice facilities. Many counties are still struggling with overcrowded jails that lack the mental health and healthcare treatment space required to address the long-term needs of offenders. The focus for these funds remains on improving and developing programming, treatment, and rehabilitation space.
- Community-Based Transitional Housing. CSAC supports $25 million for incentive payments to cities and counties that approve new long-term permits for hard-to-site facilities that improve public safety.
- Court Security Funding. CSAC supports $7 million to offset trial court security costs. These funds are directed for new court construction projects occupied on or after October 9, 2011 that modified or created building features that increase the overall trial court security costs.
Agriculture, Environment, and Natural Resources
- Tree Mortality. CSAC supports the Governor’s proposal to address tree mortality, an $11 million general fund increase to Cal Fire for local grants and Cal Fire operations. Of this amount, $6 million is for grants to local governments for the removal of dead and hazardous trees, and $5 million is to support additional assistance through equipment use and personnel overtime for hazardous tree removal and fuels reduction efforts. , The Governor has also proposed an additional $30 million for the Office of Emergency Services (OES), which could be used to assist counties with tree mortality. CSAC also supports the Governor’s proposed $150 million in cap and trade funding for forest health and tree mortality.
- Cap and Trade. CSAC supports the Governor’s proposal for cap and trade revenues for forest health and tree mortality ($150 million), waste diversion ($100 million), and the local government transformative communities program ($100 million). CSAC is also supportive of the Governor’s proposal to invest $400 million in transit capital projects and $100 million for complete streets projects that add appropriate bicycle, pedestrian or transit-related features to local roads.
- Payment in Lieu of Taxes (PILT). CSAC supports the Governor’s proposed $644,000 in Payment in Lieu of Taxes funding to local governments. The Department of Fish and Wildlife (DFW) operates wildlife management areas throughout the state. Existing law (Fish and Game Code §1504) requires DFW to compensate counties for loss property taxes and assessments as a result of the establishment of a wildlife management area. These “payments in-lieu of taxes” (PILT) are equal to the county taxes levied upon the property at the time the state acquired the property plus any assessments levied upon the property by any irrigation, drainage, or reclamation district.
- California Endangered Species Act Fee. CSAC opposes a proposal to create a new fee to cover costs associated with processing California Endangered Species Act (CESA) incidental take permits. These permits are required for projects that might result in the “take” of an endangered or threatened species, and are processed by the Department of Fish and Wildlife (DFW). The fee is proposed on a sliding scale related to the cost of the project, and according to DFW, the fee would offset “some” of their costs for processing these permits. The fees could be imposed on a wide range of county projects including flood control, road and bridge work and water management activities. CSAC believes that the fees are excessive and could result in counties having to defer important public projects due to cost issues. Of particular concern is the impact on local projects that provide flood protection for people and property.
Finance and Operations
- Insufficient ERAF. CSAC supports $393,000 for three counties and the cities within therein that currently find themselves with insufficient Educational Revenue Augmentation Fund (ERAF) revenues to offset their costs associated with the Triple Flip and Vehicle License Fee (VLF) Swap. Current statutes require county auditor-controllers to reimburse cities and counties for the Triple Flip and VLF Swap from property taxes shifted to ERAF. In rare cases, there is not enough property tax revenue available to fully reimburse the Flip and Swap, and this type of fix is needed to ensure all local entities get the appropriate amount of funding.
Health and Human Services
- Medi-Cal Administration “Overspend” Issue. CSAC supports efforts to identify solutions related to minor overspending of previous years’ Medi-Cal Administration allocations, resulting in a $20 million, or 1.2 percent overall, overage in 2013-14 and $29 million, or 1.6 percent overall, in 2014-15. CSAC is working with CAO’s and stakeholders to identify potential non-state General Fund solutions to fund these previous two years.
- Medi-Cal Administration Funding. CSAC strongly supports an additional $47 million ($169 million total funds) as included in the Governor’s May Revision Budget to allow counties to continue critical local Medi-Cal eligibility services and deliver this critical healthcare benefits to millions of Californians. In California, counties are responsible for the administration of Medi-Cal, a system whose caseload has increased significantly since the implementation of the Affordable Care Act.
- Group Home Reform. CSAC supports up to $150 million General Fund in 2016-17 to assist counties in implementing group home reform. Counties are currently preparing for AB 403 Continuum of Care foster and probation youth group home reform to begin on January 1, 2017. However, as with all major policy shifts, the implementation of this major task with our most at-risk youth is complicated. Counties are dedicated to carrying out this reform to provide continuous quality care and services for foster and probation youth, however doing so will require both the time and resources to properly implement the requirements laid out in AB 403.
- No Place Like Home Chronically Homeless Supportive Housing. The Senate and the Governor have worked together to propose a compromise version of the No Place Like Home proposal to address homelessness for those struggling with a mental illness in California. This proposal would redirect funding from the Mental Health Services Fund, created by Proposition 63, to leverage up to $2 billion in construction bonds. These funds would be distributed to counties and developers to finance the acquisition, design, construction, or reconstruction of permanent supportive housing for individuals with mental illness who are chronically homeless. CSAC has not yet taken a position on the proposal and is currently reviewing the details of the No Place Like Home proposal.
Housing, Land Use and Transportation
- Transportation Funding. Budget committees in both houses rejected the Governor’s transportation funding plan without prejudice, thereby removing consideration of a transportation funding deal from the budget process and putting the focus back on the transportation and infrastructure special session. CSAC and our coalition partners wrote to legislative leaders urging them to continue to work on this vital issue. The letter is available online here.