Legislature Backs Key Council Budget Priorities

The Bay Area Council’s work advocating for key policy priorities in the state budget is delivering results as the Legislature and Gov. Newsom near the deadline to approve a final state spending plan by June 15. This week the state Assembly and Senate released their joint agreement on the budget proposal following Gov. Newsom’s revised budget proposal released May 15. Here is a summary of some of the Council’s priorities:

Housing/Homelessness

The Legislature’s budget agreement highlights and prioritizes the production of new housing by approving — subject to final negotiation – budget trailer bill language modifying CEQA procedures to facilitate specified housing and infrastructure projects. Assembly Bill 609 (Wicks) and Senate Bill 607 (Wiener) are the basis for the trailer bill negotiations. The Council is proud to serve as a sponsor for both bills and thrilled to see these measures included and effectuated via the budget process.

Also included in the agreed framework, the Legislature’s proposal invests in affordable housing by providing $500 million in supplemental state Low-Income Housing Tax Credits (LIHTC) and $120 million to the Multifamily Housing Program, two key sources of financing for a wide range of affordable housing projects. Both investments stretch state dollars further by opening up access to additional federal affordable housing resources.

Transportation

Aligning with the Council’s priorities, the Legislature’s joint agreement doesn’t include a proposal by Gov. Newsom in his May Revise to cut $1.1 billion to transit programs, and it provides up to $750 million in emergency loans to Bay Area transit agencies to address short-term fiscal challenges. This has been a major priority for the Council and we strongly urge the Governor to concur with the Legislature.

Public Safety

As strong proponents and supporters of Proposition 36, the Council is also thrilled to see that the Legislature’s proposal includes $110 million one-time for the implementation of Proposition 36, including $50 million for behavioral health, $30 million for the courts, and $15 million each for pretrial services and for public defenders.

In a letter to Gov. Newsom thanking him for embracing many of our priorities in the May Revise, including reducing cuts to higher education, we urge him to support the Legislature’s proposals in these key issue areas outlined above. A vote on the budget framework is expected June 12 with a flurry of budget bill juniors and trailer bills to follow.

For any questions on the status of budget items or Council budget priorities, please contact Senior Vice President Matt Regan or Bay Area Council lobbyist Alex Torres.