Despite the ongoing challenges of the worldwide COVID-19 pandemic, national civic unrest, and continued economic strain, the Governor and Legislature continue their work at the Capitol to address the State Budget for FY 2020-21 and legislation of vital importance to the state.

According to the most recent media reports, Assembly and Senate Democrats have announced an agreement on a State Budget, in advance of the June 15 deadline and July 1 start date. This agreement, as anticipated, rejects a host of cuts initially proposed by Governor Newsom in his May Revision budget. The deal largely adheres to the framework passed by the Senate Budget and Fiscal Review Committee last week, which avoids cuts to health care and social services that Newsom said would occur if the federal government does not provide a $14 billion lifeline.

California faces a projected $54 billion deficit. The Legislature is expected to vote on the main Budget bill and trailer bills at the June 15 deadline. The next legislative discussion will occur June 4 in an Assembly budget subcommittee. It does not appear that the two houses will meet in a conference committee.

Significant elements of the joint Budget include the following:

• "Protects" $1.2 billion in Proposition 56 funding that provides supplemental rate increases for Medi-Cal providers. Governor Newsom had proposed eliminating those rate increases to free up funds for more Medi-Cal patients, a major point of contention for doctors, dentists and other providers.

• Assumes that the administration has overestimated the financial burden California's safety net programs will face in the next year. Their plan projects saving $4 billion on costs for Medi-Cal and CalWORKs below what the Department of Finance has calculated, which could be problematic for counties.

• Eliminates most of Governor Newsom's January spending proposals.

• Relies on suspending corporate tax deductions to generate more than $4 billion in the next fiscal year, but does not propose any broad-based, long-term tax increases.

• Proposes to provide the state's earned income tax credit to undocumented immigrant parents with young children. They also still want to provide Medi-Cal to undocumented residents over age 65 but delay implementation to 2022.

• Treats the Governor's federal "trigger" mechanism differently by giving the federal government until Sept. 1 to provide aid to states before deciding whether to use Plan "B." That backup plan would still impose cuts on the University of California and California State University systems, as well as state courts. It would dip deeper into the state's reserves and change the state's Managed Care Organization tax to raise an additional $1 billion.

• Compared to the Senate budget, the two-house plan provides more money for homelessness programs, more funds to counties for realignment responsibilities, and the 5 percent boost to UC and CSU that Governor Newsom proposed in January — as long as the federal government comes through with relief.

The Budget also proposes an increase in legislative control over COVID-19 spending, moving to cut budget language that allows the Governor to direct coronavirus response funds how he sees fit, though recognizing that the specifics will still be worked out with the Governor.

Attachment A: Pending Senate Version of the Budget, Draft 5/27

Attachment B: California Statewide COVID-19 Actions, prepared by Nielsen Merksamer

Attachment C: Master List of Bills of Interest to Contra Costa County


From CalMatters, Emily Hoeven. June 3, 2020:

“Floyd death could spark change

Will George Floyd’s death and the protests sweeping the nation galvanize California to make massive policy changes or reexamine controversial proposals with new eyes?

Today, a powerful Assembly committee will vote on a proposed amendment to the state Constitution that would reinstate affirmative action policies in state colleges, universities and agencies — after voters rejected such policies two decades ago. (The proposed amendment will appear on the November ballot if passed by two-thirds of both the Assembly and Senate.)

It will also vote on a bill that would establish a reparations committee to educate Californians about the lingering effects of slavery and recommend how the state might compensate African Americans for decades of inequality and discrimination.

• Audrey Dow, vice president of the Campaign for College Opportunity: Recent headlines “are forcing us to recognize that we are not beyond race as a country or state. We have not achieved the nirvana of being colorblind. Race matters.”

• The San Francisco Public Defender’s Office called Tuesday for an overhaul of use-of-force policies at the city’s police department.
• San Diego Mayor Kevin Faulconer said Monday police will no longer use a controversial neck hold that critics had asked the city for years to stop using.
• A group of Bay Area district attorneys asked the state bar to prevent prosecutors from taking money from police unions on the grounds that it creates a conflict of interest when investigating police misconduct.
• And Superintendent of Public Instruction Tony Thurmond pledged to improve implicit bias education for students and teachers.