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File #: 20-513    Version: 1 Name:
Type: Memo Status: Passed
File created: 7/2/2020 Departments: COUNTY MANAGER
On agenda: 7/7/2020 Final action: 7/7/2020
Title: Accept this informational report on the recently enacted FY 2020-21 State Budget.
Attachments: 1. 20200707_att_Legislative Tracking Sheet.pdf
Special Notice / Hearing: None__
Vote Required: Majority

To: Honorable Board of Supervisors
From: Michael P. Callagy, County Manager
Connie Juarez-Diroll, Legislative Officer

Subject: FY 2020-21 State Budget Act Analysis and 2020 State Legislative Mid-Session Report

RECOMMENDATION:
title
Accept this informational report on the recently enacted FY 2020-21 State Budget.

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BACKGROUND:
On June 29, 2020 Governor Gavin Newsom signed SB 74 (the Legislature's two-house plan) and AB 89 (a "Budget Bill Jr." containing the guts of an agreement brokered with state legislators) along with 18 other associated trailer bills to enact the state's 2020-21 spending plan. The $202.1 billion recessionary budget package in its totality largely rejects the cuts proposed in the Governor's May Revision, which would have imposed across-the-board reductions on everything from Medi-Cal to K-12 schools, and instead balances itself against a projected $54.3 billion deficit (the first state deficit in eight years) on the potential of federal assistance, deferrals, and significant use of budget reserves.

The budget-related bills reflect a provisional compromise between the Legislature and the Governor given the ongoing nature of the pandemic, the delay in knowing how much tax revenue the state will receive due to the extended tax filing deadline, and continued uncertainty about whether any additional federal COVID-19 relief funding will be provided to the state. It is anticipated that the Governor and Legislature will need to revisit aspects of this budget in August following the reporting of state income tax receipts in mid-July.

DISCUSSION:
The following are select new key elements of the recently approved state budget of importance to the County:

State Budget Reserves
Under this budget, total state General Fund expenditures for the 2020-21 fiscal year are $133.9 billion. In addition, the budget draws down $8.8 billion in reserves, including $7.8 billi...

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