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Prepared by Precision Advocacy
The county’s sponsored bill, AB 571 (Quirk-Silva), passed the Assembly unanimously on Monday. The measure exempts the proposed Gypsum Canyon Veterans Cemetery in Anaheim, Orange County from further review under the California Environmental Quality Act (CEQA). It will next be assigned to policy committees by the Senate Rules Committee.
Budget & Legislative Analyst’s Office (LAO) Initial Comments on the May Revision
The legislature is currently analyzing the governor's May Revision, with over 20 budget subcommittee hearings conducted this week. Both the Assembly and Senate are expected to release their budget priorities shortly and will then begin negotiations with the administration to reconcile any differences.
Lawmakers recognize that this is likely the initial phase of the budget process, anticipating that federal government decisions will significantly affect California's budget. The legislature will send the Budget Act of 2025 to Governor Newsom on or before June 15, and as necessary, continue discussions in the coming months.
On May 16, the LAO released its initial comments on the May Revision proposal. Although the numbers do not align exactly, the administration and LAO’s assessment is very similar as it relates to revenues, the budget deficit, and the necessity of solutions.
The LAO provides some recommendations to the legislature in consideration of the governor’s proposal:
- Adopt solutions that do not delay or exacerbate future problems and avoid new funding commitments.
- The legislature should adopt a similar level of ongoing solutions and maintain the reserve as proposed by the administration.
- A high bar should be applied to new funding proposals.
- The administration focused reductions on the state’s largest and fastest growing programs, including Medi-Cal, IHSS, and the Department of Developmental Services. The legislature could consider allocating the mix of solutions differently, such as adopting proposals over a broader set of program areas or variations of the administration’s proposals.
- The legislature could consider increasing revenues through limiting or eliminating tax expenditures or increasing rates.
- Deferral of policy-driven May Revision proposals that have limited budget implications to later in the year or beyond is recommended. These include streamlining housing production, accelerating Delta conveyance projects, changing requirements for state water quality control plans, regulating pharmacy benefit managers, and creating new state agencies for housing and consumer protection. This would allow more time and consideration of the potential benefits, implications, and trade-offs.
Joint Senate Hearing on Prop. 36 Implementation
The Senate Budget and Fiscal Review Subcommittee No. 5 on Corrections, Public Safety, Judiciary, Labor, and Transportation and Senate Public Safety Committees held a joint hearing on the implementation of Proposition 36 last week. The hearing was co-chaired by Senators Laura Richardson (D-Inglewood) and Jesse Arreguin (D-Oakland) and was attended by Senators Kelly Seyarto (R-Murrieta), Maria Elena Durazo (D-Los Angeles), and Aisha Wahab (D-Fremont).
Approved by voters last November by a large margin, Prop. 36 allows felony charges for possessing certain drugs and for thefts under $950, if the defendant has two prior drug or theft convictions. According to the Secretary of State, state criminal justice costs ranging from several tens of millions of dollars to the low hundreds of millions of dollars annually were projected, with local criminal justice costs likely in the tens of millions of dollars annually.
Chair Richardson emphasized at the beginning of the hearing that although the May Revision did not include any new resources for locals, it is a starting point for discussion of the legislature and conversations will continue in budget subcommittees. Chair Arreguin stated that the Senate is committed to Prop. 36 implementation, and that Prop. 47 savings will not be enough to ensure effective implementation over the next several years. A major theme of the hearing was a lack of resources for local agencies to implement Prop. 36, particularly the treatment services portion of the law.
Some early data on implementation is emerging, with a recent survey by California’s Judicial Council of the courts conducted in the second half of February and covering most counties indicating that about 1,500 theft and 1,900 drug cases have been filed by prosecutors applying the new law’s felony charges. Early estimates amount to about 1,700 to 2,600 Prop. 36 felony cases filed per month, representing a 10%-15% share of the roughly 15,000 felony cases filed in an average month. The filings vary across the state with the number per 100,000 residents ranging from 24 and 19 in Kern and Orange counties, respectively, to about 2 in both Fresno and San Francisco counties.
The Senate hearing included three panels of experts on implementation of the proposition discussing fiscal impacts at the state level as well as the local level. Notably, Orange County Sheriff Don Barnes, who is also the California State Sheriffs Association President this year participated in the panel discussion of fiscal impacts of enforcement and charging.
Justin Adelman from the Department of Finance discussed the high-level interplay between Prop. 36 and Prop. 47. $88.5 million was included in the May Revision separated into 2 components - the costs of increased incarceration ($29.3 million) and the second chance fund identified in Prop. 36, and created by Prop. 47 in 2014 ($59.2 million). 65% of the second chance fund provides grants for public agencies to support mental health treatment, substance use disorder treatment, and diversion programs for individuals in the criminal justice system. Funding dynamics are expected to shift in future years as the prison population rises due to Prop. 36 implementation, and Prop. 47 savings decrease, reducing the available funds in the second chance fund.
Francine Byrne, Director of Criminal Justice Services at Judicial Council talked about the data that the courts have already collected around increased felony cases, cautioning that early data was quite volatile. She highlighted the collaborative court model that many courts are implementing despite uncertainties around funding particularly at the federal level.
Sheriff Barnes highlighted the work that Orange County has done with a nexus to Prop. 36. Despite large financial investments the county has made in these programs, challenges persist. Los Angeles County Public Defender Ricardo Garcia talked about the challenges of offering treatment, when there are no resources in place to deliver the treatment. He said implementation of the proposition is creating an "impossibility" for counties across the state. San Joaquin County Chief Probation Officer Steve Jackson described the current situation of decreased funding and increased workload as a “double whammy.” He said Prop. 36 related services are in line with what the county can offer, but currently there are not the resources to do it.
Senator Seyarto expressed his strong support for the implementation of Prop. 36, particularly because it was so overwhelmingly supported by voters. Panelists discussed the importance of probation post Prop. 36, and emphasized the need for additional funding to implement treatment and supervision. Pretrial services funding was also discussed as a priority.
We will keep you apprised as discussions continue. Orange County, as with other counties, is facing large cost increases as a result of Prop. 36, and the legislature has expressed the funding as a priority.
Upcoming Hearings
Agendas are typically posted on the committee websites in the Assembly and Senate a few days prior to the hearings. To view hearings after they take place, you may access them in the Assembly or Senate media archives where they are generally available within a few hours of committee adjournment.
Tuesday, May 27, 2025, 9:00 a.m.
Senate Budget and Fiscal Review Subcommittee No. 2 on Resources, Environmental Protection, and Energy
1021 O Street, Room 2200 Allen, Benjamin, Chair
May Revision: All Departments - Open Issues
Tuesday, May 27, 2025, 9:00 a.m.
Senate Budget and Fiscal Review Subcommittee No. 4 on State Administration and General Government
State Capitol, Room 113 Cabaldon, Christopher, Chair
May Revision: All Departments - Open Issues
Tuesday, May 27, 2025, 10:00 a.m.
Assembly Privacy and Consumer Protection
State Capitol, Room 437 Bauer-Kahan, Rebecca, Chair
Informational Hearing: Automated Decisionmaking Systems and Frontier Models: Risks and Mitigations
Wednesday, May 28, 2025, 9:00 a.m.
Assembly Joint Hearing Health and Privacy and Consumer Protection
1021 O Street, Room 1100 Bonta, Mia, Chair
Informational Hearing: Generative AI in Health Care: Opportunities, Challenges, and Policy Implications.
Wednesday, May 28, 2025, 9:00 a.m.
Senate Budget and Fiscal Review Subcommittee No. 1 on Education
1021 O Street, Room 2100 Laird, John, Chair
May Revision: All Departments - Open Issues
Wednesday, May 28, 2025, 9:00 a.m.
Senate Budget and Fiscal Review Subcommittee No. 3 on Health and Human Services
1021 O Street, Room 1200 Weber Pierson, M.D., Akilah, Chair
May Revision: All Departments - Open Issues
Wednesday, May 28, 2025, 9:00 a.m.
Senate Budget and Fiscal Review Subcommittee No. 5 on Corrections, Public Safety, Judiciary, Labor, and Transportation
State Capitol, Room 112 Richardson, Laura, Chair
May Revision: All Departments - Open Issues
Wednesday, May 28, 2025, 9:30 a.m.
Assembly Insurance
State Capitol, Room 437 Calderon, Lisa, Chair
Oversight Hearing: The California Fair Plan
Wednesday, May 28, 2025, 1:30 p.m.
Assembly Utilities and Energy
1021 O Street, Room 1100 Petrie-Norris, Cottie, Chair
Oversight Hearing: California's Transportation Fuels Market
Thursday, May 29, 2025, 9:30 a.m. Or Upon Adjournment of Session
Senate Budget and Fiscal Review Subcommittee No. 1 on Education
1021 O Street, Room 2100 Laird, John, Chair
May Revision: All Departments - Open Issues
Thursday, May 29, 2025, 9:30 a.m. Or Upon Adjournment of Session
Senate Budget and Fiscal Review Subcommittee No. 2 on Resources, Environmental Protection, and Energy
1021 O Street, Room 2200 Allen, Benjamin, Chair
May Revision: All Departments - Open Issues
Thursday, May 29, 2025, 9:30 a.m. Or Upon Adjournment of Session
Senate Budget and Fiscal Review Subcommittee No. 3 on Health And Human Services
1021 O Street, Room 1200 Weber Pierson, M.D., Akilah, Chair
May Revision: All Departments - Open Issues
Thursday, May 29, 2025, 9:30 a.m. Or Upon Adjournment of Session
Senate Budget and Fiscal Review Subcommittee No. 4 on State Administration and General Government
State Capitol, Room 113 Cabaldon, Christopher, Chair
May Revision: All Departments - Open Issues
Thursday, May 29, 2025, 9:30 a.m. Or Upon Adjournment of Session
Senate Budget and Fiscal Review Subcommittee No. 5 on Corrections, Public Safety, Judiciary, Labor, and Transportation
State Capitol, Room 112 Richardson, Laura, Chair
May Revision: All Departments - Open Issues
Friday, May 30, 2025, 12:00 p.m.
Senate Transportation Subcommittee on Lossan Rail Corridor Resiliency
One Gateway Plaza, 3rd Floor, Metro Board Room, Los Angeles Blakespear, Catherine, Chair
Informational Hearing: Tracks to the Future: Strengthening the LOSSAN Corridor for California's Global Stage
Grant Opportunities
Below is a list of the latest grant opportunities released by the state. All opportunities for local jurisdictions may be found here.
Deadline: 8/14/24 00:00
Title: Youth Community Access (2024)
State Agency / Department: CA Natural Resources Agency
Match Funding? No
Estimated Total Funding: $18,300,000
Funding Method: Reimbursement(s)
Deadline: N/A
Title: Representative Research Collaborative
State Agency / Department: CA Health and Human Services Agency
Match Funding? No
Estimated Total Funding: $20,000 – $1,000,000
Funding Method: Reimbursement(s)
Governor’s Press Releases
Below is a list of the governor’s press releases beginning May 14.
May 20: Governor Newsom announces appointments 5.20.25
- Matthew Read, of Sacramento, has been appointed Chief Counsel at the Governor’s Office of Land Use and Climate Innovation.
- Ross Szabo, of Los Angeles, has been appointed to the Governor’s Council on Physical Fitness and Mental Well-Being.
- Richard Stein, of San Juan Capistrano, has been appointed to the California Arts Council.
May 20: Governor Newsom to U.S. Senate: ‘Will you side with China or America?’
May 20: Largest ever multi-agency operation seizes $123.5 million in illicit cannabis
May 20: Governor Newsom: GOP bill would rip health care from up to 3.4 million Californians, cost the state billions, close hospitals and clinics
May 19: Widespread support for Governor’s proposal to fast-track water infrastructure
May 19: First Partner joins conversation on expanding access to capital for female founders
May 19: Since Governor Newsom took office, California’s battery storage has increased 1,944% – and just achieved a major milestone
May 16: California invests $1.7 billion to improve safety, resiliency of highways – including millions for highways damaged by LA fires
May 16: California invests $1.7 billion to improve safety, resiliency of highways – including millions for highways damaged by LA fires
May 16: ICYMI: Governor Newsom reassures international partners that Trump’s tariffs don’t represent California
May 15: Governor Newsom proclaims Small Business Month 2025
May 15: Governor Newsom slams RFK Jr.’s plan to target abortion access with bogus “review” of safe, legal abortion medication
May 14: Governor Newsom unveils proposal to cut red tape and fast-track housing and development
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