Earlier this week the Senate and Assembly announced Budget Subcommittee activity in response to the coronavirus (COVID-19) pandemic. The Senate Budget Subcommittee met on Thursday, and the Assembly Budget Subcommittee is scheduled to meet on Monday. Both are focused on the implications of the COVID-19 response by the Newsom Administration as authorized by SB 89 and approved by the Legislature prior to their recess in March.
Yesterday’s Senate hearing included a brief economic update from the Legislative Analyst Office (LAO); a Department of Finance (DOF) overview of COVID-19 spending; and a California Budget and Policy Center (CBPC) discussion concerning areas of need that may not be addressed in state or federal relief. Overall, information presented at the hearing was consistent with messages communicated by the Governor in his briefings— the budget proposed in January is no longer accurate, and the May Revise will be a baseline budget reflecting the best revenue/expenditure information available. The ability to cover existing program commitments and COVID-19 response will be significantly influenced by the pace of economic slowdown and the adequacy of the federal response.
Of note, Senator Anna Caballero (D-Monterey) and Senator Brian Dahle (R-Lassen) called out the effect of the COVID-19 preparedness initiative on rural hospitals and health providers. The suspension of elective procedures has significantly affected the financial health of these facilities and providers.
In the Assembly, Speaker Anthony Rendon (D-Lakewood) indicated that the Assembly Budget Subcommittee hearing will include oversight and assessment of California’s COVID-19 expenditures, including the use of the emergency funds approved by the Legislature in March. Updates are also expected from the Legislative Analyst’s Office and the Department of Finance. Similar to the Senate hearing, the Capitol will be open for attendance of this hearing. However, given the statewide stay-at-home order, and guidance on physical distancing, seating will be very limited for press and for the public. All are encouraged to watch the live stream of the hearing on the Assembly’s website.