On Monday, June 15, 2020, both houses of the Legislature approved the main 2020-21 State Budget and two budget trailer bills that assist in implementing the 2020-21 State Budget Package. RCRC’s governmental affairs team reviewed the 2020-21 State Budget Package, and developed The Rural Rundown, a summary of the initial 2020-21 State Budget Package, its implications for member counties, details of RCRC’s advocacy efforts on specific issue items and an insider perspective into the reasoning and rationale behind elements of the Package.

Key Issues/Changes for RCRC Member Counties:

  • Continues to provide $644,000 for the State’s Payment in Lieu of Taxes (PILT) Program for 2020-21;
  • Provides for the release of federal Coronavirus Aid, Relief, and Economic Security (CARES) Act monies to counties and cities;
  • Delays action on Cap-and-Trade revenues for various greenhouse gas reduction programs, including SB 901 forest health and wildfire prevention activities and the FARMER Program;
  • Fails to provide a $3.6 million increase, along with an additional 10 percent reduction, from the current baseline for the University of California, Division of Agriculture and Natural Resources;
  • Defers to a later discussion a $1 billion backfill to Realignment programs to account for the loss of sales tax monies that support the Realignment structure; and,
  • Provides $50 million to the California Office of Emergency Services for community power resiliency projects to help local governments, special districts, and fairgrounds undertake actions to mitigate the impacts of future public safety power shutoff (PSPS) events, and provides increased funding for the California Public Utilities Commission to review utility Wildfire Mitigation Plans and PSPS reports.

It should be noted that the State Budget Package remains incomplete – the vast majority of the budget trailer bills still await action, including measures pertaining to criminal justice and corrections, resources, housing and homelessness, broadband, reform of the Department of Toxic Substances Control, and expenditures from the state’s Cap-and-Trade auction proceeds, along with a supplemental budget bill to address outstanding issues with the current fiscal year which ends on June 30th. Over the next several days and weeks, it is expected these remaining issues will be considered and adopted. It should be noted that the Legislature and the Governor do not have an agreement on the State Budget Package, which leaves some uncertainty as to the Governor’s position on the proposed spending plan.

The Rural Rundown can be accessed here.