Tuesday, January 16, 2018

Notations On Our World ( Special Community Edition): Out & About In Our Community of South Orange County & California

Governor Brown of California is entering his final year in Office.   He has just released his budget.  We received this at our Virtual Studios on a Snapshot of the budget which we hereby present courtesy of the team at Association of California Cities: 

2018-2019 January Budget Release Summary  The 2018-2019 budget continues to invest in Governor Brown's strategic priorities for the State of California including: education, healthcare, infrastructure and a progressive environmental protection agenda. Since the budget difficulties of 2011, the state grew out of a $26 billion deficit and has amassed a Rainy-Day Fund, which was approved by voters in 2014 under Proposition 2.  After meeting the constitutional obligations of contributing to the Rainy Day Fund, the State of California is experiencing a budget surplus going into the budget negotiation season for the 2018 fiscal year. This years 6.1 billion dollar surplus presents many opportunities for the legislature and for Orange County Cities.

Notable data:
  • By the end of 2017-18, the state's Rainy-Day Fund will have a total balance of $8.4 billion (65 percent of the constitutional target). The 2018-2019 budget proposal fills this gap to 100% or $13.5 billion.
  • Total budget spending $131.6 billion with total resource dollars available $135.1 billion.
  • Budget spending increases from 2017-2018 levels of $126.5 billion.
The new budget anticipates a coming recession within the next few budget cycles, with the goal of aligning revenue growth to future spending. Infrastructure:
With passage of SB 1, California will spend $55 billion over 10 years on its basic transportation infrastructure maintenance. The 2018-2019 budget sets in motion this allocation with $4.5 billion in funding and total spending (including selected bond funds) of $14 billion on transportation priorities.
  • Infrastructure Repair: $2.8 billion
  • Trade channel assets: $556 million
  • Local projects match: $200 million
  • Rail services: $721 million
Public Safety:
Public safety initiatives are addressed both at the state and local level.   
  • Rehabilitations and corrections general fund spending accounts for $11.8 billion of the budget
  • Community Corrections Performance Incentive Grant $106.4 million
  • Post-Release Community Supervision $29 million
Natural Resource Protection:
The 2018-2019 budget strongly protect the state's natural resources. The Natural Resources Agency receives $9.8 billion ($3.0 billion from the general fund) for all activities.
  • If approved by voters in June 2018, SB 5 would authorize $4 billion in general obligation bonds for California's parks, water and flood control infrastructure, ocean and coastal protection, safe drinking water, groundwater management and climate preparedness and resiliency.
  • The 2018-2019 budget allocates $1.02 billion of first year spending if the initiative is approved by voters in June 2018[TR1] .. 
  • Municipalities are slated to receive $464 million for local park programs within the measure, which would be allocated on a population based formula.
Redevelopment Agencies:
The Governor's priority is the final dissolution of the former redevelopment agencies' outstanding debts and other legal obligations and thus returns final funds to the cities, counties and special districts.
  • Cities will receive an $926 million in general purpose revenues in 2017-2018 and 2018-19 combined. Counties will receive $990 million, and special districts an additional $282 million in that same time period.
  • K-14 school districts will receive $1 4 billion in 2017-18 and $1.6 billion in 2018-19 from Proposition 98 General Fund savings resulting from the dissolution of redevelopment agencies.
To implement the 2017 housing package, the budget allocates
  • $3 million from the General Fund to the Department of Housing and Community Development. Additional resources from an estimated $258 million real estate transaction fee revenue, which will be a ballot measure in the November 2018 election. 
The housing packing also places a $4 billion bond on the November 2018 ballot for voter approval.
  • Includes $3 billion in general obligation bonds for various housing programs and $1 billion for veterans housing.
Voting Systems Replacement for Counties:
A one-time augmentation of $134.3 million from the General Fund will be made to replace outdated voting systems with the necessary hardware, software, and initial licensing to install new voting systems in all 58 counties.
  • This funding represents a 50 percent state share of total voting system replacement costs; counties will be responsible for the other 50 percent.
Medical and Adult Use Cannabis:
The Administration is deferring all cannabis-related budget proposals until the May Revision.
2020 Census
Commits $40.3 million for statewide outreach and other activities related to the 2020 Census.

Association of California Cities- Orange County
500 S. Main Street #410
Orange, CA 92868

and as we went to press, a welcome development on an agreement Capistrano Unified School District and the Teachers Union struck on a collective Bargaining Agreement which is welcome news for all the 52,000 students the District serves in the Seven South Orange County Cities:

January 12, 2017
Capistrano Unified School District:
An Unwavering Commitment to
Student Success 
CUSD and CUEA Reach a Tentative Agreement

Sent on behalf of CUSD and CUEA

We are pleased to announce that CUSD and CUEA have reached a Tentative Agreement that will provide the stability of a three year contract and allow our District to continue to operate efficiently while remaining focused on the education of young people.

Details of the Tentative Agreement will be released onWednesday, January 17, 2018.

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