1 Damien O'Bid
From: Nancy Hall Bennett <[email protected]>
Sent: Thursday, May 19, 2022 5:14 PM
Subject: ACTION ALERT: Cal Cities State Budget Priorities Attachments: Cal Cities 2022-23 Budget Requests SAMPLE Letter_May 2022.docx; Unfunded Mandate Costs_North Bay.pdf
Importance: High
Members of the North Bay Division:
Thank you to those of you that were in Sacramento last week and joined us at our press conference at the Capitol asking the state to partner with cities as they decide how to allocate their unprecedented surplus. If you missed it, here is a link to the KRON story.
Cal Cities is asking for:
$500 million for the creation of the Housing and Economic Development Program. $933.5 million for local governments for costs owed for state-mandated programs. (Attached is a list that identifies what this amount would be for your city) $180 million for organic waste recycling.
Please consider using the attached sample letter to support this request.
Thank you,
Nancy
ACTION ALERT
Cal Cities State Budget Priorities
SUPPORT
ACTION:
Lawmakers will finalize the 2022-23 State Budget within the next month. The Legislature must pass a final, balanced budget before June 15.
Cal Cities calls on lawmakers to use the state’s historic surplus to allocate $1.6 billion for programs that achieve shared city and state goals for housing and climate resiliency, as well as reimburse cities for unfunded, state-mandated programs.
All Assembly Members and Senators need to hear from their cities. Voice your support for Cal Cities’ state budget priorities by calling your Assembly Member and Senator and submitting a letter TODAY. A sample letter is attached. 2 What is Cal Cities requesting in the State Budget?
$500 million for the creation of the Housing and Economic Development Program. $933.5 million for local governments for costs owed for state-mandated programs. $180 million for organic waste recycling.
Background:
$500 million for the creation of the Housing and Economic Development Program: The elimination of redevelopment agencies in 2011 stripped local governments of the most powerful and successful tool to revitalize urban cores, help jumpstart the construction of affordable housing, and support economic development activities. The loss of this tool also hinders local officials’ ability to help advance the state’s bold climate policy objectives, including minimizing vehicle miles traveled and reducing greenhouse gas emissions. This is why establishing the Housing and Economic Development Program is crucial to achieving our housing supply and climate action goals. $933.5 million for local governments for costs owed for state-mandated programs: According to data obtained from the State Controller’s Office, as of October 2021, the state owes cities, counties, and special districts $933.5 million, including estimated accrued interest, in mandated costs incurred since 2004 through fiscal year 2019-20.
$180 million for organic waste recycling: The Department of Resources Recycling and Recovery’s (CalRecycle) Organic Waste Reduction Regulations (SB 1383), adopted in November 2020, require local governments to reduce landfill disposal of organic waste 75% by 2025 and to increase edible food waste recovery 20%. Compliance obligations for local governments began in early 2022 and local governments continue to develop a comprehensive suite of local collection, enforcement, and funding programs. The 2021 Budget Act included $60 million to create the SB 1383 local assistance grant program, however, additional funding is greatly needed.
Talking Points:
$500 million for the creation of the Housing and Economic Development Program. Cities urge the Governor and lawmakers to allocate $500 million to create a state-local partnership to help finance housing projects, incentivize development, and kick start real progress toward housing production goals.
Existing tax increment financing tools help stimulate housing production and address important infrastructure needs, however they lack sufficient financial capacity — due in part to the absence of state participation — and are underutilized. This program would encourage partnerships between state and local agencies by providing matching funds to cities that adopt local tax increment financing tools to support affordable housing, upgrade essential infrastructure, and spur economic development. $933.5 million to reimburse cities for costs resulting from state-mandated programs. The state owes more than $933.5 million to cities, counties, and special districts for costs related to state mandates incurred after 2004. Of that amount, $466.6 million is owed to cities. 3 The pandemic demonstrated the vital role that cities play in California's economy and the important services they provide to the public.
A strong city budget creates strong, resilient communities and this allocation would help ensure that cities can continue to meet shared local and state priorities. $180 million for organic waste recycling.
As a key player in the state’s ability to achieve its solid waste management and recycling roles, cities urge the state include $180 million in the 2022-23 State Budget to help cities develop and implement SB 1383 (Lara, 2016) organic waste recycling programs. This funding will help local governments implement collection, education, outreach, edible food recovery, procurement activities, and capacity planning, and minimize the financial burden the cost of implementing these regulations could have on residents.
Under the Public Records Act (California Government Code 6250‐6270), e‐mail messages of local agencies are public records which are subject to disclosure to the public or may be subpoenaed.