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March California Policy Update

We are pleased to provide our March 2022 California Policy Update. This issue includes updates on Governor Newsom’s State of the State Address, the Taxpayer Protection and Government Accountability Act (currently being circulated for signatures for potential inclusion on the November 2022 Statewide ballot), and legislation by topic area that is currently going through the legislative process.

On March 8, Governor Gavin Newsom delivered his annual State of the State Address, going through a rundown of California’s successes and touting additional plans in furtherance of those accomplishments. Although distinct from his 2022-23 budget presentation, there was not much new information shared, and the speech felt akin to a pep talk or comparative analysis of California versus the nation with California coming out on top.

This update covers highlights from the Governor’s State of the State Address by topic.

Read the full California March Policy Update here.

January California Budget Update

Governor Gavin Newsom submitted his 2022-23 State Budget proposal to the Legislature on January 10, 2022 – a $286 billion spending plan that estimates a $45.7 billion surplus, of which $20.6 billion is discretionary, $16.1 billion is mandated by Proposition 98 for K-14 education, and $9 billion is set aside for reserve and supplemental pension payments. The State Appropriations Limit (Gann Limit) is likely to be exceeded in both 2020-21 and 202122 by a total of $2.6 billion, which will require additional funding to be directed to schools and taxpayer rebates. The administration will update the State Appropriations Limit numbers as part of the May Revision.

The January budget update contains a detailed review of the budget proposals for nearly a dozen items that are important to jurisdictions across California.

Read the full January Budget Update here.

UCLA Anderson Forecast July Economic Outlook

Avenu in partnership with the UCLA Anderson Forecast collaborates to provide both micro and macro level views of the economic health of California at the state and local levels. The following economic information has been provided by our colleagues at UCLA Anderson Forecast. We’ve also attached our recent sales tax forecast assumptions.

Read the full July Economic Forecast Here.

Sales Tax Forecast Assumptions

July California Budget Update

The Administration and Legislature are nearing final agreement on the Budget Act of 2021. The Legislature sent SB 129 to the governor on June 29 amending the Budget Act of 2021 (AB 128). AB 128 contains the Legislature’s Budget which the governor signed; however, the bulk of the final budget agreement is contained in SB 129. This is the first time in ten years that the actual budget agreement was not signed on or by June 30.

Read the full July Budget Update here.

UCLA Anderson Forecast January Economic Outlook

Avenu in partnership with the UCLA Anderson Forecast collaborates to provide both micro and macro level views of the economic health of California at the state and local levels. The following economic information has been provided by our colleagues at UCLA Anderson Forecast.

Please mark your calendars for our next quarterly joint economic presentation which will take place on February 23rd at
9:00 AM Pacific. Meeting invitations will go out the first week of February.

Read the full January Economic Forecast Here.

January California Legislative Update

The January California Legislative Update provides an overview of Gov. Newsom’s recently released budget proposal.

Governor Gavin Newsom introduced his $227 billion 2021-22 Budget Proposal on Friday with fairly positive news. Although California’s revenues have experienced a moderate slowdown, thus far it has impacted the State’s revenues far less than anticipated by the 2020-21 Budget Act. The difference in projections is the result of a less severe economic downturn than expected wage losses in
large part impacting low-wage earners, and a stronger stock market than projected.

The Budget Proposal contains $34 billion in Reserves and Surplus
● $15.6 billion in the Proposition 2 Budget Stabilization Account (Rainy Day Fund)
● $450 million in the Safety Net Reserve
● $3 billion in the Public School System Stabilization Account
● $2.9 billion in the State’s operating reserve

Our full analysis will provide your jurisdiction the information needed to plan for the year.

Read the full January California Legislative Update Here.

October California Legislative Update

The October California Legislative Update provides a broad review of bills that were signed into law by Califonia’s Governor, Gavin Newsom.

Avenu Co-sponsored Pre-Paid Wireless Bill Signed by the Governor: On October 08, 2019, the Governor passed the Local Prepaid Mobile Telephony Services Collection Act.

Governor’s Office of Business and Economic Development: The Legislature’s budget approves a total of $100 million to support the California Infrastructure and Economic Development Bank’s loan guarantee program that provides financial assistance to small businesses.

Clean Cars by 2035: The executive order requires that all new cars and passenger trucks sold in California must be zeroemission vehicles by 2035.

Medicaid Fiscal Accountability Regulation: Medicaid Director Seema Verma announced that, concerns that have been raised and they will be removing the Medicaid Fiscal Accountability Regulation from the regulatory agenda.

Read the full October California Legislative Update Here.

Why and How Local Governments Should Start Automating During COVID-19

The coronavirus pandemic has severely impacted the economy. As a result, tax revenue is down, and many local governments are struggling to withstand significant budget shortfalls.

But cash-strapped governments can access new revenue simply by updating and automating their internal systems. In his new op-ed for Forbes, Paul Colangelo, Avenu’s CEO, explains why automation is imperative today and how it can help cities become more resilient against crises like COVID-19.

At its core, automation is increasing efficiency and productivity through digital technology. Far too many governments today are still reliant on outdated paper processes and inefficient manual labor. Automation can streamline the public workforce and equip governments to maximize their revenue streams while delivering higher quality services to their constituents.

Read more about the benefits of automation here.

 

 

June California Legislative Update

The June California Legislative Update covers the passage of the state budget and a number of bills related to the CARES Act. staff is currently monitoring 15 bills that seek to modify existing local taxes and impose new fees. This update provides the latest information on this legislation as well.

On June 15th, the Legislature passed the State Budget Act for the 2020-21 fiscal year. Our understanding is that the Legislature and Administration have not yet reached a final agreement; however, they have agreed to continue discussions and keep working on a compromise. The Budget Act and two trailer bills were sent to the governor and are further described in this report.

Governor’s Office of Business and Economic Development: The Legislature’s budget approves a total of $100 million to support the California Infrastructure and Economic Development Bank’s loan guarantee program that provides financial assistance to small businesses.

Revenues: The provisions of AB 85 include a total General Fund benefit of approximately $4.4 billion in the 2020-21 fiscal year.

Read the full June California Legislative Update Here.