Legislative Agendas
January in the second year of each two-year legislative cycle can be more interesting than in the first year. This week, dozens of so-called “two-year bills,” meaning measures introduced in 2023 that currently remain in their house of origin, are being considered. Bills fitting this description need to pass out of the house of origin by the end of this month. To do so, bills must successfully navigate policy committees this week and fiscal committees next week. Two such bills tracked by CCWC were unsuccessful as the authors attempted to resuscitate them from last year (more in Jason Schmelzer’s report).
In addition to older bills trying to stay alive, new bills introductions are occurring daily and will continue through the deadline of February 16. Artificial intelligence, fire insurance, reparations, health care, housing, schools and environmental protection seem likely to top the list of legislative interest in 2024.
Deficits
The one thing that most likely will overshadow everything else legislatively this year is California’s state budget deficit, estimated by the Legislative Analyst’s Office (LAO) to be $68 billion. The LAO has observed to the Legislature that it has the options of utilizing money in various reserve accounts ($24 billion that can go towards the state’s general fund, as well as $10 billion that can go towards K-14 public education) as well as $10 billion in cuts in one-time spending (from prior budget cycles) and $10 billion of internal borrowing. If you’re following along and doing the math, this still doesn’t add up to $68 billion and additional cuts seem unavoidable.
Assemblymember Jessee Gabriel, an Encino Democrat who just took over as chairperson of the Assembly Budget Committee, recently stated to the press that, “Our top priority is going to be to protect vulnerable communities....that includes social services and classroom funding, as well as protecting recent investments in climate and homelessness programs," he said.
Over in the Senate, Budget Chairwoman Nancy Skinner, an Oakland Democrat, has stated that her goal is to avoid cuts that “will create harm for people,” and instead modify new programs that haven’t started yet. Delaying planned new spending was one of the strategies the State employed to close a more than $30 billion deficit last year; it’s unclear whether that will be enough this year.
Gov. Gavin Newsom will help frame the debate when he unveils his initial budget proposal later this week. He has already rejected a Dec. 14 call from Assembly Republicans to call a special session on the budget deficit, or to take further actions other than some spending freezes. However, we do believe that the Governor could call a “state budget emergency,” which – under the state constitution, will allow easier access to the reserves mentioned above.
New Leaders
The State Senate will have a new leader on February 5, when Mike McGuire (D-Sonoma) takes the reins from Toni Atkins (D-San Diego). The Assembly already has a new Speaker, Robert Rivas (D-Hollister). So far, Speaker Rivas has outlined goals as follows: boosting housing production by reducing fees and bureaucratic barriers, converting vacant properties into housing, and improving access to property insurance amid rising wildfire risks; addressing public safety concerns, including retail theft and possible amendments to Proposition 47 which reduced penalties for certain crimes; and tackling climate change with a focus on land use and management to balance carbon sequestration and emissions.