San Jose City Council
August 8, 2023

Office of Administration, Policy, and
Intergovernmental Relations
Kailyn Kenney, Senior Executive Analyst
Steve Stamos, Senior Executive Analyst
Item 3.3 2023 Summer Intergovernmental
Relations Report
San José City Council 08.08.23
Team Support:

Presenters:

Sarah Zárate, Director, Office of Administration,
Policy, & Intergovernmental Relations
Zane Barnes, Chief Intergovernmental Relations
Officer
Steve Cruz, Cruz Strategies
Leslie Pollner, Holland & Knight
2023
Summer
Report
 Legislative Priorities
 Federal Highlights
 FY2024 Budget Negotiations
 Funding Advocacy
 Priority Legislation, Rulemaking, and Policy
 State Highlights
 FY 2023-2024 Adopted Budget
 Funding Advocacy
 City Sponsored Legislation
 Priority Legislation
 Advocacy Efforts
IGR
By The
Numbers
 $28 Million Brought to the
Region Together with Partners
 360+ Bills Actively Monitored
 120+ Advocacy Letters
 3 Sponsored Bills
And…dozens of meetings with
Legislators and Agency Staff to
advocate for San José
Legislative Priorities
(Approved by City Council December 2022)
▪ Promote Safety and Vision Zero Initiatives
▪ Address Homelessness and Enable Affordable Housing
▪ Pursue Funding to Advance Equitable, Sustainable and
Resilient Infrastructure
▪ Drive Impactful Climate Action and Unlock San José’s
2030 Climate Smart Goals
▪ Relentlessly advocate for regional policy solutions that result in equitable outcomes and prosperity for San José families
4 Federal Highlights
FY2024 Budget Negotiations
 Federal budget must be passed by September 30th to avoid shutdown • Short-term continuing resolution is likely
 Fiscal Responsibility Act of 2023 signed on June 3rd; suspended debt ceiling until January 2025
• Outlined topline expenditure numbers for the FY 2024 spending package • Rescinded about $28 billion in unobligated funds from COVID-19 relief packages • Did not impact the Inflation Reduction Act climate and clean energy provisions  House Appropriations Committee and Senate Appropriations Committee are completing markups of appropriations bills
• House mark up - overall funding level of $1.47 trillion • Senate mark up - agreed upon level of $1.59 trillion
5 Federal Highlights
Funding Advocacy
 House Appropriations Committee included Community Project Funding (earmark) requests in the Transportation, Housing, Urban Development appropriations bill:
• $1 million for Rue Ferrari Emergency Interim Housing Site Expansion (Panetta) • $850,000 for Lake Cunningham Park Revitalization (Panetta) • $850,000 for Jackson Avenue Safety Improvements (Khanna) • $500,000 for Blossom Hill Senior Affordable Housing Development (Panetta) • $500,000 for Monterey Road Corridor Safety and Transit Improvements (Eshoo)  Airport awarded $9.6 million in Airport Improvement Program funding for the next phase of Taxiway Victor project
 Department of Transportation applied for $10 million from the U.S. DOT Federal-State Partnership for Intercity Passenger Rail Grant Program for Diridon Station
6 Federal Highlights
Priority Legislation, Rulemaking, and Policy Actions
• Federal Aviation Administration Reauthorization
• Last authorized by Congress in 2018, will expire in September 2023 • Transitions the nation to sustainable aviation fuels, bolsters consumer protections, and ensures the safe integration of drones and advanced air mobility • The House of Representatives passed its FAA Reauthorization bill in late July, and the Senate Commerce Committee is attempting to markup their bill before the September 30 deadline  Title 42
• Title 42, regulating border migration, was lifted in May  Inflation Reduction Act
• The Treasury Department and Internal Revenue Service released initial guidance on eligibility for clean energy tax credits
 National Primary Drinking Water Regulation
• The Environmental Protection Agency announced the proposed regulation of six per- and polyfluoroalkyl substances (PFAS) contained in drinking water 7 State Highlights
FY 2023-24 Adopted Budget
 Addresses $32 billion shortfall while maintaining $37 billion in General Fund reserves  No deep cuts to ongoing programs
 Governor's infrastructure/permitting streamlining package  Highlights:
• Homelessness & Housing: $1 billion for the fifth round of Homeless Housing, Assistance, and Prevention Program (HHAP)
• Supporting families: $78.1 million for CalVolunteers youth workforce • Public Safety: $255 million over three years in local law enforcement grants to address crime • Transportation Funding: includes $5.1 billion over four years, thereby restoring the full $4 billion for the Transit and Intercity Rail Program that was partially cut 8 State Highlights
Funding Advocacy
 The state budget included two District Specific Budget (earmark) requests championed by Assemblymember Kalra:
• $2 million for Eviction Diversion Program
• $1.5 million for Lake Cunningham Water Quality and Shoreline Improvements  Grant awards
• The City Manager's Office was awarded $650,000 by the Governor's Office of Planning and Research for Climate Adaptation Planning
• The Environmental Services Department was awarded $320,000 by the CA Department of Resources Recycling and Recovery for landfill gas mitigation  Budget Advocacy
• In partnership with Valley Transportation Authority, successfully advocated for the restoration of Transit and Intercity Rail Program funding to support Bart to Silicon Valley Phase II • In partnership with Big City Mayors, successfully advocated for the restoration of $78.1 million in CalVolunteers youth workforce funding
9 State Highlights
City Sponsored Legislation
SB 400 (Wahab): Termination Disclosure
AB 645 (Friedman): Automated Speed
Enforcement
SB 8 (Blakespear): Statewide Gun Harm
Reduction
SB 8 (Blakespear): Firearms Liability
Insurance
10 State Highlights
Priority Legislation
 Homelessness and Affordable Housing
• SB 634 (Becker): EIH CEQA Streamlining
• SB 569 (Glazer) & AB 59 (Gallagher) Taxation: Renter's Credit • AB 1469 (Kalra): Santa Clara Valley Water District (homelessness resources)  Safety and Vision Zero
• AB 413 (Lee): Crosswalk Daylighting
• SB 719 (Becker): Law enforcement: radio communications  Equitable, Sustainable, and Resilient Infrastructure
• AB 1505 (Rodriguez): Seismic Retrofitting Funding
• AB 939 (Pellerin): Santa Clara Valley Water District (financing)  Climate Action and Climate Smart Goals
• AB 1567 (Garcia): Wildfire, Drought, Flood, Heat Mitigation Bond • SB 867 (Allen): Drought, Flood, Water, Wildfire Resilience Bond • Equitable Outcomes and Prosperity for Families
• SB 10 (Cortese): Student Health: Opioid Overdose
• Prevention and Treatment
• SB 43 (Eggman): Conservatorship Reform
11 Advocacy Efforts
Recent Partnership Wins:
 $5.1 billion in transportation funding, including restoring $4 billion in Transit and Intercity Rail Program funding (over four years), initially decreased by Governor  $235 million in funding allocated for the multi-family soft story retrofit program, with $15 million for Fiscal Year 2023-24, subject to trigger restoration IGR Team Continued Focus thru Early Fall:
 Continuing engagement to protect the City’s two cardrooms from proposed PAGA legislation that would leave the cardrooms privy to continued legal challenges  Partnering with sponsors on SB 634 (Becker) EIH CEQA Streamlining legislation (2024)  Monitoring State budget trailer bill language
 Monitoring Federal budget negotiations
 Developing next legislative session’s legislative priorities and activities 12 Presenters:

Sarah Zárate, Director, Office of Administration,
Policy, & Intergovernmental Relations
Zane Barnes, Chief Intergovernmental Relations
Officer
Steve Cruz, Cruz Strategies
Leslie Pollner, Holland & Knight
Council
Actions
San José City Council 08.08.23
2023 Summer Intergovernmental Relations
Report, Item 3.3
 Accept the Summer IGR Report
 Reaffirm City positions in Federal
Legislative Log
 Reaffirm City positions in State
Legislative Log