California News

CALIFORNIA NEWS State Budget Surplus: $76B Or $38B?

Editor’s note: Here is an edited version of the Legislative Analyst’s Office May 17 analysis:

Key Takeaways

We Estimate the State Has a $38 Billion Surplus to Allocate. We estimate the state has $38 billion in discretionary state funds to allocate in the 2021-22 budget process, an estimate that is different than the Governor’s figure—$76 billion.

The differences in our estimates stem from our differing definitions. The Governor’s estimate includes constitutionally required spending on schools and community colleges, reserves, and debt payments. We do not consider these spending amounts part of the surplus because they must be allocated to specified purposes.

In Contrast to the Governor, We Recommend Legislature Restore Budget

Resilience. Despite a historic surge in revenues, the Governor uses $12 billion in reserve withdrawals and borrowing to increase spending. The state will need these tools to respond to future challenges when federal assistance might not be as significant. We urge the Legislature not to step back from its track record of prudent budget management.

State Appropriations Limit (SAL) Is

Important. The Governor’s May Revision estimates the state will collect $16 billion in revenues in excess of the limit this year. However, the ultimate amount of a potential excess will depend on decisions by the Legislature, which has substantial discretion in how to meet the constitutional requirements.

Addressing Many Issues or Making Significant Inroads on Fewer Issues.

The May Revision includes roughly 400 new proposals. While the surplus is large enough to make significant inroads in addressing a few key policy priorities, it is unlikely sufficient to do so across the number of issues contemplated in the May Revision. If the Legislature preferred to make substantial progress in a few key areas, it could allocate the surplus in a targeted manner.

Consider Postponing Some Deci-

sions. The surplus, in combination with the federal fiscal recovery funds, represents resources equal to about half of pre-pandemic General Fund budgets. Departments’ capacity to allocate this funding in a timely and effective manner likely will be constrained. More importantly, the Legislature’s time to deliberate over choices is extremely limited. We recommend the Legislature delay some decisions.

Introduction

On May 14, 2021, Gov. Newsom presented a revised state budget proposal to the Legislature, the “May Revision.” In coming days, we will analyze the plan in more detail and provide comments in hearing testimony and online.

This information is based on our best understanding of administration proposals as of Saturday, May 15, 2021. In many areas, our understanding of the administration’s proposals will continue to evolve as we receive more information. We only plan updates for changes greater than $500 million.

General Fund Condition

Revenues Higher by $51 Billion Compared to Governor’s Budget. Reflecting very strong cash collections in recent months, the May Revision adjusts 2020-21 revenues (and transfers) up by $26.8 billion to $182 billion. This represents a 27 percent increase over 2019-20, the largest single-year increase in over four decades. Much of these revenue gains carry over into the budget year, with 2021-21 revenues being adjusted up $24.4 billion to $179 billion.

Constitutionally Required Spending Higher by $16 Billion. The constitution requires the state to spend minimum annual amounts on schools and community colleges (under Proposition 98) and budget reserves and debt payments (under Proposition 2). Mainly due to higher revenues, relative to January, constitutionally required spending is higher by nearly $16 billion.

Costs Reduced by $3 Billion. Other budgetary costs are, on net, lower by $3 billion compared to January. This number obscures billions of dollars in budgetary changes. For example, relative to the Governor’s budget, the Legislature enacted $6.4 billion in spending increases and revenue reductions through early action. Baseline costs associated with the state’s major safety net programs are lower by $3.7 billion.

Total Reserves Would Reach Nearly $20 Billion Under Governor’s May Revision. Under the administration’s proposals, total reserves would reach $19.8 billion in 2021-22. This total differs from the administration’s estimate of total reserves because we exclude the dedicated reserve for schools and community colleges, which we do not consider part of General Fund reserves. school and community college spending, American Rescue Plan funds for relief and capital projects. Schools and community colleges would receive the largest allocations. In the other category, the second largest, are $5.5 billion for broadband, $1.1 billion to replenish the state Unemployment Insurance Trust Fund, and $305 million for the Employment Development Department to address workload.

General Fund Surplus

We estimate the Governor had a $38 billion General Fund surplus to allocate in the 2021 May Revision. This surplus reflects higher revenues, higher constitutional spending, and net lower other spending.

“State Budget” page 22

Screen-Free Playtime

ACROSS

1. Ivory, in the bathroom 5. Letter of the ____ 8. Kiln for drying hops 12. Marine eagle 13. Muffin Man’s Drury 14. Zest 15. Landlord’s collection 16. Chieftain in Arabia 17. Frequently precedes

“nonsense” 18. *Tabletop fun (2 words) 20. Passage in a coal mine 21. Clear the whiteboard 22. Sean’s mom Yoko 23. Alpine structure 26. Slabbered 30. Clothing border 31. Incense burning container 34. Gauche or Droite, in

Paris 35. In a frenzy 37. Unagi 38. Fancy necktie 39. Eye protection, sing. 40. Not dangerous to health 42. Dwight the President 43. Worked the dough 45. *Screen-free message 47. Hairpiece, slangily 48. Libra symbol 50. Buenos ____ 52. *Dirty hobby? 56. African prairie 57. Like family lore 58. Don’t let it hit you on your way out 59. *Ten-pin establishment 60. Challenge 61. Purse to match a gown 62. Lake of Scottish lore 63. *Between ‘game’ and

‘match’ 64. Deliver a tirade

DOWN

1. Belgrade native 2. Dessert sandwich 3. Pavlova, e.g. 4. Tube-nosed seabird 5. Tibetan priests 6. Japanese cartoon 7. Used to be 8. *Explore the great ____ 9. ____ spumante 10. Editor’s mark 11. Craggy peak 13. Official emissary 14. Bird-deposited fertilizer 19. Same as schlock 22. Famous Bobby, on ice 23. *Sidewalk art medium 24. Macho man 25. *Tell jokes, e.g. 26. Sub station 27. Permissible 28. Extract a memory, e.g. 29. Try to prevent 32. It’s not a want 33. ____ Bernie Sanders, abbr. 36. *Guessing game 38. Administer an oil 40. “Don’t make me ___!” 41. With pleasure 44. Full of bunnies? 46. Full of gentleness 48. Ranee’s wrap 49. *Macrame or wood carving, e.g. 50. Expunge 51. Bodily disorders 52. Hermes and Apollo 53. ‘I’ in Greek alphabet 54. Person, place or thing 55. John Wayne’s “True ____” 56. Delivery vehicle

SCOTTS VALLEY FESTIVAL NEEDS VOLUNTEERS Planning for the 2021 Scotts Valley Art Wine & Beer Festival is well underway. We are calling for volunteers to help make this year’s event a success! Volunteer shifts will begin early on Friday, August 20 to help with the event set up, such as tents, signage, tables, chairs. Specifically, checking in the festival artists and wineries and assisting them on to the field. We also need a team of volunteers to help on Saturday, August 21 and Sunday, August 22 during the main event.

Volunteers Shifts include the following areas:

Festival set up (Friday) • Meet and greet festival goers, hand out programs • Check ID’s and & Drink Bracelets • Artist assistants • Parking Lot assistance • Kid Zone • Cops N Rodder’s Car Show (Saturday only) • Doggy Day (Sunday only) • Tear Down (Sunday afternoon)

If you are interested in a leadership role or have past festival experience and would like to volunteer for a specific role, please email us at volunteerchairartwinebeerfest@gmail.com

All volunteers will receive:

Festival T-Shirt • Food and Drinks during your shift • Volunteers over 21 will receive a festival glass and drink ticket • Invitation to Volunteer Appreciation Party!

Sign-up today — and If you need to change it, it’s ok! We need to get a head-count early — so we appreciate your commitment to volunteer today! You can edit your shift or cancel before August 1st. You can do that by logging in to your registration sign-up and make the change at any time! For more information, contact (text only) Cherie La-France Anderson, Volunteer Chairperson, at (831) 239-4616, or Kevin Anderson, Volunteer Chairperson, at (831) 206-2943.

CALL FOR ARTISTS FOR SCOTTS VALLEY ART WINE & BEER FESTIVAL The Scotts Valley Art Wine & Beer Festival is looking for artists for the 2021 event, Saturday, Aug. 21, from 10 a.m. to 6 p.m. and Sunday, Aug. 22, from 10 a.m. to 5 p.m. at Siltanen Park on Vine Hill Road, Scotts Valley.

The festival has been approved by the Santa Cruz County Public Health Director Gail Newell and the City of Scotts Valley.

All artwork will be juried, with initial results posted on June 15.

Artists must have original, quality art and excellent craftsmanship. No kits, mass-produced items, commercial reproductions or imports will be allowed. The charge is $220 for a single booth and $390 for a double booth for Santa Cruz County residents, and $330 and $620 for out-of-county residents.

Artists apply at svartfestival.com. Artists who apply before June 15 get a $40 early bird discount. Applicants after June 15 will be juried on an individual basis. Final registration deadline is July 20. .

Artist check-in is noon to 6 p.m. Friday, Aug. 20, with no late check-ins allowed due to limited access to the new venue. Artist questions? Email Angela Marshall, artist chair, at amarshall@scottsvalleychamber.com

BLACK HEALTH MATTERS: FRESH AIR ’21 THIS SUMMER Tannery World Dance & Cultural Center Tannery World Dance & Cultural Center’s Black Health Matters Initiative is kicking off a summer of free programming, Fresh Air ’21, to address and elevate the mental

Have a virtual or live event you want to promote? Send your information to info@cyber-times.com by June 18

health and wellness of the Black community of Santa Cruz County.

Black Health Matters, with Santa Cruz County Parks and County Parks Friends, will produce a diverse and accessible lineup of COVID-mindful events and experiences led by and for Black residents (and allies) in beautiful outdoor spaces.

From movement classes, guided nature hikes, and self-care workshops, to weekly virtual content, community gatherings, and celebrations, this summer-long campaign is geared toward having a seat at the table for all. Register: https://tanneryworlddance.com/bhm-happenings/ TWDCC Instagram: https://www.instagram.com/ twdcc_dance/?hl=en

CABRILLO CLASSES Cabrillo College’s summer session begins June 14. Act now to see if the class you’re looking for is available.

The fall semester begins Aug. 23. Register at www.cabrillo.edu Tickets have sliding-scale prices of $10, $20 and $30 and can be found at https://www.bicyclefilmfestival.com/

SENIOR CENTER WITHOUT LIMITS This new program from Community Bridges brings enrichment activities like yoga, art, music, tai chi, cooking, tech and support groups to seniors age 60 and up in their homes at no cost. To participate, you need an internet connection and a computer, tablet or smartphone. To participate, view the calendar at https://communitybridges. org/SCWOL/ and find a class. That day and time, click on the link in the calendar to be connected. If you have a problem connecting, call Clara Munoz at (831) 458-3481.

SECOND HARVEST FOOD DISTRIBUTION Second Harvest Food Bank’s drive-through food distribution will continue operating at the county Fairgrounds 9 a.m.-Noon on the following Fridays: June 4 • June 18 • July 9 • July 23 Aug. 6 • Aug. 20 • Sept. 10 • Sept. 24 Food hotline: 831-662-0991.

ALZHEIMER’S ASSOCIATION CAREGIVER SUPPORT GROUPS Alzheimer’s Association is offering video and phone meetings for caregivers throughout the month: Second and Fourth Wednesdays Santa Cruz, 2-3:30 p.m. via phone — Facilitators: Jill Ginghofer and Laurie McVay. First and Third Wednesdays Santa Cruz, 5:30-7 p.m. via video or phone — Facilitators: Francie Newfield and Kathleen McBurney. Second Saturdays Scotts Valley, 10-11:30 a.m. via video or phone — Facilitator: Diana Hull. Register by calling 800-272-3900 or email ymflores@alz.org. ••• Second Wednesdays Spanish, 7-8:30 p.m. via phone — Facilitator: Yuliana Mendoza. Register by calling 831-647-9890 or email ymflores@alz.org.

STUDENT STORY CONTEST DEADLINE Stories Due Wednesday, June 30 The Palo Alto Humane Society invites 7th and 8th graders in Santa Cruz County to participate in a writing competition on the theme of animals and people helping each other. Stories can be fiction or nonfiction and should illustrate a sense of kindness in their characters.

The top prize is $500, with $200 each for two runner-ups. Winning stories will be published by Palo Alto Humane Society and highlighted during the 2021 Creating Compassionate Communities campaign.

Stories must be original and between 800 and 1,000 words. Competition guidelines — plus a submission form — are at https://tinyurl.com/paloalto-humane-write-2021.

20TH ANNIVERSARY BICYCLE FILM FESTIVAL VIRTUAL TOUR June 11-20, Online Film Festival The 20th Annual Bicycle Film Festival offers a virtual screening of short films curated for Santa Cruz County. The Festival is a fundraiser for local nonprofits Community Bike Collective and Bike Santa Cruz County.

ONGOING EVENTS

Ongoing thru July 31 SUMMER READING All ages are invited to register for the Santa Cruz Public Libraries’ Summer Reading Program June 1 – July 31 and earn prizes and entries to a raffle of local merchant gift cards.

Go to santacruzpl.org/srp, call 831-427-7713, or text 831-264-0647 to sign up and for more information.

Kids up to age 18 get a $10 Atlantis Fantasyworld gift certificate toward a collection of comics and graphic novels.

After reading for 5 hours, kids up to age 11 get a new book selected by librarians, kids 12-18 get a tote bag with goodies, and adults get a tote bag and a raffle ticket. Prizes include a free scoop from The Penny Ice Creamery. Grand prize is family membership to the Monterey Bay Aquarium or the Santa Cruz Museum of Art and History.

The Beanstack online platform with mobile app will track summer reading and allow readers to claim rewards. Paper reading logs are available. Summer reading events include magic shows, circus acts, NorCalBats, musical performances, and STEAM projects. See santacruzpl.org/calendar.

Ongoing Through Labor Day LOCH LOMOND RESERVOIR OPEN Hours: August–Labor Day: 7 a.m-8 p.m. • June & July: 7 a.m.-8:30 p.m. • Closed Wednesdays Loch Lomond Recreation Area is owned and operated by the City of Santa Cruz Water Department, primarily storing water for Santa Cruz residents and offering boat rentals, picnicking, fishing and hiking.

After Labor Day, the Reservoir will remain open on weekends through the second weekend of October, open 7 a.m.-6 p.m.

Vehicle entrance fee: $8 • Season pass: $80 Information: https://www.cityofsantacruz.com/ government/city-departments/water/watershed/ loch-lomond-recreation/park-map First and Third Monday Each Month SENIOR LIFE ONLINE 4 p.m., Online Meeting Join a local group of senior citizens for “Senior Life Online,” a free online (Zoom) program featuring a presentation by a local expert. Senior Life Online meets on the first and third Monday of each month at 4 p.m. View the schedule at scottsvalleyseniorlife.org/currentactivities/.

June 7: Scotts Valley Fire Chief Ron Whittle on Fire Prevention for Property Owners.

June 21: Piret Harmon, General Manager at the Scotts Valley Water District, giving an update.

To participate, you need an Internet connection and a computer, tablet or smartphone. A one-time preregistration is required at https://tinyurl. com/SVSLA-5. Questions? Call George at (831) 334-7763. Senior Life Online is sponsored by Scotts Valley Senior Life Association (SVSLA), a 501(c)(3) non-profit whose mission is to promote healthy living for senior citizens. Information is at http://scottsvalleyseniorlife.org.

DATED EVENTS

Wednesday June 2

YOUR BRAIN AND YOUR BODY 10-11:30 a.m., Alzheimer’s Association online seminar The Alzheimer’s Association presents: “Healthy Living for Your Brain and Body” a webinar available via phone and online.

Join us to learn about research on diet and nutrition, exercise, cognitive activity and social engagement, and help you incorporate these recommendations into a plan for healthy aging. Call 800-272-3900 to register or visit ALZ.org/CRF Once you register, you will receive an email confirmation with call-in information and instructions for joining our webinar.

FIFTH ANNUAL GET HIRED 6:30 p.m., UCSC Competition 7 p.m., Santa Cruz Works Job Fair 7:30 p.m., Design Your Life Presentations More than 10 companies will offer 300+ jobs and internships, including Joby Aviation, Paystand, Parallel Flight Technologies, LIFEAID, Claret Bioscience, Astrea Forensics, at 7 p.m. Wednesday, June 2, at this virtual event presented by Santa Cruz Works.

The night starts at 6:30 p.m. with the UC Santa Cruz Center for Innovation and Entrepreneurial Development Business Plan Contest. Watch the top 3 teams who won the annual competition and cast your vote in the People’s Choice virtual ballot.

At 7:30 p.m., attendees can go to breakout rooms to meet recruiters, talk to company employees to learn about career paths, or listen to author and career guru Dave Evans, who will give a 30-pminute crash course on “Designing Your Life,” has taught to thousands. Tickets range from $0-$50. Register at https://www.eventbrite. com/e/5th-annual-get-hired-ucsc-cied-business-plan-contesttickets-153589643759

Thursday June 3

AUTHOR MARIA DAHVANA HEADLEY 7 p.m., Mt. Madonna Public Speaker Online Series The Mount Madonna School public speaker series based on the United Nations Sustainable Development Goals presents “Rethinking Traditional Gender in Classic Literature,” featuring New York Times-bestselling author Maria Dahvana Headley.

Headley’s “Beowulf: A New Translation,” is a feminist

reworking of the tale of entitlement and encroachment, powerful men seeking to become more powerful, and one woman seeking justice for her child. Her most recent novel, “The Mere Wife,” follows the arc of the original Beowulf but places the epic into a women-centered story in modern suburbia.

Author, editor, and historian Tiffany Wayne, Ph.D., former English teacher at Mount Madonna School and an alumni parent, will moderate. Tickets are by donation at https://www.sdgspeakerseries.org/

DANTE ALIGHIERI: ‘ART OF THE ITALIAN APERITIVO’ 3:15 – 5 p.m., Online Zoom Class (Waiting room opens at 3 p.m.) Prosecco is the base for many Italian aperitivos: the famous Aperol spritz, the Bellini, and the less known Hugo spritz or Negroni Sbagliato.

In this class, Chaney Janssen of Destined for Grapeness will teach you to make your own spritz at home. Lecture will include a demonstration of Aperol spritz and a “Spring Bellini/strawberry Bellini.” She will walk through what makes Prosecco a perfect ingredient for an afternoon cocktail.

Meghan O’Connell will teach you how to make a simple “stuzzichini” based on local ingredients to pair with your aperitivo. Cost is $10. Link: http://bit.ly/dante_aperitivo For more information, email: dantesantacruz1265@gmail.com

UNDERSTANDING ALZHEIMER’S 1-2:30 p.m., Alzheimer’s Association online seminar The Alzheimer’s Association presents “Understanding Alzheimer’s and Dementia,” a webinar available via phone and online. Call 800-272-3900 to register or visit ALZ.org/CRF Once you register, you will receive an email confirmation with call-in information and instructions for joining our webinar.

OCEAN FILM FESTIVAL OPENING NIGHT 7 p.m., Rio Theatre, 1205 Soquel Ave., Santa Cruz Quench your thirst for international travel with the 2021 Ocean Film Festival World Tour, a short-film online festival benefiting Save our Shores.

The festival is presented by Rio Theatre and will open on the big screen and then be available online through Monday, June 21.

The 2-1/2 hours of short films will take you free diving in the Coral Sea, sailing north to Alaska, exploring remote Russian Islands and surfing in Spain.

Meet Benoit, a surfer from Basque country who lost his arm, Wayan Nyo, a fisherman who pulls plastic trash from the ocean so he can fish again, conservationist Vladimir Burkanov, and kayakers Lucy Graham and Matilde Gordon. Cost to attend the limited live audience show at Rio Theatre is $18.90. Cost to rent online the festival for a 48-hour period is $18. Get tickets for either at https://www.riotheatre.com/events2/2021/6/8/ocean-film-festival-world-tour

Wednesday June 9

SONS IN RETIREMENT HONORS VETERANS Noon, Elks Lodge, 150 Jewell St., Santa Cruz Sons in Retirement of Santa Cruz will meet with Major General Bob Ostenberg, who will be awarding Vietnamera lapel pins to any veteran who served in the military from Nov. 1, 1955 to May 15, 1979.

If you plan to attend, email JimHealey36@yahoo.com by June 7.

Thursday June 10

ALZHEIMER’S ASSOCIATION SEMINAR: WARNING SIGNS 3-4:30 p.m., Online Class The Alzheimer’s Association presents: “10 Warning Signs of Alzheimer’s” webinar, available both online and by phone.

Alzheimer’s and other dementias cause memory, thinking and behavior problems that interfere with daily living.

Learn how to recognize common signs of the disease; how to approach someone about memory concerns; the importance of early detection and benefits of a diagnosis; possible tests and assessments for the diagnostic process, and Alzheimer’s Association resources. Call 800-272-3900 to register or visit ALZ.org/CRF

OCEAN & CLIMATE JUSTICE SUMMIT 4-6 p.m., Online Summit TRUTH + JUSTICE = HOPE is a California Ocean & Climate Justice Summit.

The summit, hosted by The Resource Center for Nonviolence and Save Our Shores, will amplify the stories of emerging BIPOC environmental justice leaders to inspire California to recognize how its diverse population, cultural influence, vast wealth, and startup mindset can be essential collective forces to regenerate our ocean. Tickets and link information are available at Eventbrite.com (https://tinyurl.com/cal-ocean-climate-summit)

Friday June 11

ALZHEIMER’S ASSOCIATION SEMINAR: DEMENTIA CONVERSATIONS 1-2:30 p.m., Online Class The Alzheimer’s Association presents: “Dementia Conversations” webinar, available both online and by phone.

When someone is showing signs of dementia, it’s time to talk. Often, conversations with family about changing behaviors can be challenging and uncomfortable.

This program provides tips for breaking the ice with your family so you can address issues such as going to the doctor for a diagnosis or medical treatment, deciding when to stop driving, and making legal and financial plans for future care. Call 800-272-3900 to register or visit ALZ.org/CRF

Sunday June 13

PRESCRIBED BURN WORKSHOP 9:30–11 a.m., near La Selva Beach Central Coast Prescribed Burn Association will host a pile burn workshop/work party near La Selva Beach.

The burn workshop, which is free, will cover the basics and the permit process. Afterward participants will burn vegetation piles for wildfire safety; the landowner will provide lunch. Sign up with Jared Childress at childress. ember@gmail.com

You can also e-mail Jared if you are interested in joining a “Wildfire Preparation Brigade” for both the Santa Cruz Mountains and the Northern Santa Lucia Mountains.

Tuesday June 15

ALZHEIMER’S ASSOCIATION SEMINAR: HEALTHY AGING 1-2:30 p.m., Online Class The Alzheimer’s Association presents: “Healthy Aging”, available both online and by phone.

Science is providing insights into how to lifestyle choices may help you keep your brain and body healthy as you age.

LUNAFEST 2021

Thursday June 3 thru Saturday June 5, Virtual Film Festival

Viewing begins June 3 at 7 p.m. Ticket sales end June 5 at 7 p.m. Details below LUNAFEST is a series of short films by and about women. The Santa Cruz virtual screening June 3-5 will benefit WomenCARE Santa Cruz; proceeds from ticket sales and sponsorships go directly to WomenCARE, which provides a safe haven where women with any type of cancer find mutual support, shared experiences, and open hearts.

Virtual viewing begins Thursday, June 3, at 7 p.m. You have 48 hours from then to unlock the films and then 24 hours to watch them. The run time is 86 minutes. Ticket sales end at 7 p.m. Saturday, June 5.

The films are: OVEREXPOSED: FILMING AN ARCTIC ODYSSEY by Holly Morris • KNOCKING DOWN THE FENCES by Meg Shutzer • A LINE BIRDS CANNOT SEE by Amy Bench • THE SCIENTISTS VERSUS DARTMOUTH by Sharon Shattuck • UNTIL SHE IS FREE by Maria Finitzo • CONNECTION by Tracy Nguyen-Chung & Ciara Lacy • BETYE SAAR: TAKING CARE OF BUSINESS by Christine Turner ••• This year’s films feature strong women, powerful images, and impactful language — and may not be suitable for children or teens. Tickets are $20 at https://www.lunafest.org/screenings/virtual-screening-friends-of-womencare-santa-cruz-060321

Learn about research on diet and nutrition, exercise, cognitive activity and social engagement, and tools to help you incorporate these insights into a plan for healthy aging. Call 800-272-3900 to register or visit ALZ.org/CRF

Tuesday June 15 and Friday June 25

FOOD TRUCKS AT SKYPARK 5–8 p.m., 361 Kings Village Road, Scotts Valley Local food trucks will be gathering at Skypark in Scotts Valley for two special events this month.

The first event is a mid-month Taco Tuesday on the day California will be relaxing COVID-19 restrictions! Taquizas Gabriel, Holopono and more will bring their regular menu and their signature tacos for all to enjoy. Keep your fingers crossed!

Next, the food trucks are joined by live music and a beer & wine garden for a Friday evening in the park. The Paperback Ryders will perform Beatles tunes and the Scotts Valley Educational Foundation will host a beer garden fundraiser. Food vendors at this event include Pana, Taquizas Gabriel, Saucey’z and Aunt LaLi’s.

Spread out and eat at the picnic tables, bring a blanket and picnic on the lawn or order your food to go. Info: https://www.facebook.com/events/762864271075610

Wednesday June 23

To view, visit: https://zoom.us/j/97161327724 Meeting ID: 971 6132 7724

Thursday June 24

BOOK TO ACTION: JOSE ANTONIO VARGAS 8 p.m., Santa Cruz Public Libraries Online Seminar The Watsonville and Santa Cruz Public Libraries invite teens and adults to participate in a Book to Action Zoom meeting featuring Dear America: Notes of an Undocumented Citizen author Jose Antonio Vargas. Free copies of his book are available at all library locations while supplies last. It’s also available in e-book and audio formats. About 280 seats are available. Register at https://www. santacruzpl.org/pages/book-to-action/ n

Saturday June 26

HOME WILDFIRE SAFETY WORKSHOP June 26: 10 a.m.–12:30 p.m., Woods Cove Central Coast Prescribed Burn Association will host a wildfire home hardening and defensible space workshop at Woods Cove.

Topics include: Native cultural burning, logging and brush encroachment; current lack of stewardship; tools such as broadcast burning, pile burning, targeted grazing, saws, chipping, mastication; 3’ to 30’ to 100’ zones; tree killers such as sudden oak death, pine bark beetle, Monterey pine canker.

The workshop costs $10; scholarships are available. Register at: https://ucanr.edu/survey/survey. cfm?surveynumber=34949 n

“State Budget” from page 19

What Is the General Fund Surplus? The Governor’s May Revision is the starting point for legislative deliberation. Ultimately, the Legislature will make its own determination about how to allocate available funds. Here we estimate how much capacity the budget has to make those allocations under the Governor’s revenue estimates. We answer this question by assessing which of the Governor’s proposals are “discretionary.” We define discretionary spending to mean spending, reserve deposits, debt payments, and tax reductions not already authorized or required under current law. (Our definition of discretionary excludes the cost to maintain current state services, such as base increases for the universities and employee compensation.)

Why Does This Figure Differ From the Governor’s Estimate? The Governor and administration have cited a surplus estimate of about $76 billion, which is different than our estimate. The primary reason is the Governor’s estimate of the surplus includes constitutionally required spending, whereas our estimate excludes it. For example, the Governor counts $27 billion in constitutionally required spending on schools and community colleges, nearly $8 billion in required reserve deposits, and $3 billion in required debt payments. After excluding these amounts, our surplus estimates are nearly the same.

How Can These Monies Be Used? In a normal budget year, General Fund surplus monies are available to use for any public purposes. This is not necessarily the case in this May Revision. That is because the State Appropriations Limit, which limits how the state can use revenues that exceed a specified threshold, applies to the budget process this year. The administration allocates $23 billion towards purposes that meet SAL requirements. The remaining surplus is used more flexibly.

The Governor Proposes Allocating $26 Billion in Surplus Funds to Spending. Using the $38 billion surplus, the Governor proposes roughly 400 spending proposals, which would cost $26 billion. Less than one-quarter of these proposals are unchanged from the Governor’s budget. The remaining three-quarters are either modified proposals or entirely new proposals.

State Appropriations Limit

SAL Limits Use of Surplus. Each year, the state compares the appropriations limit to appropriations subject to the limit. If appropriations subject to the limit exceed the limit (on net) over any two-year period, there are excess revenues.

The Legislature can use excess revenues in three ways: (1) appropriate more money for purposes excluded from the SAL (under the Governor’s proposal, the common new spending is capital outlay), (2) split the excess between additional school and community college district spending and taxpayer rebates, or (3) lower tax revenues.

How Does the Governor Use the Surplus for SAL-Related Purposes? Under the administration’s proposals, $23 billion of the surplus is split between two SAL-related purposes: $15 Billion in Discretionary Spending on Excluded Purposes. The Governor’s General Fund discretionary proposals include $15 billion in discretionary SAL exclusions. These exclusions are proposals for capital outlay projects. $8 Billion for Tax Rebates. The administrations estimates indicate the state would have excess revenues of $16.2 billion across 2020-21 and 2021-22. The Governor allocates half of these excess revenues—$8.1 billion—to taxpayer rebates for taxpayers with incomes less than $75,000. The administration does not allocate the remaining half to schools and community colleges. (The State Constitution allows the state two years to make the payments.) The estimate of the amount owed to K-14 education could change substantially in coming years due to changes in revenue estimates and legislative decisions.

Noteworthy Administrative and Proposed Statutory Changes. These three changes increase room under the SAL. First, the administration will stop counting vehicle registration fees as proceeds of taxes. Second, the administration is making an correction of its treatment of school-related deferrals. Third, the administration is proposing trailer bill language to absorb school districts’ room. We think all these changes are reasonable.

American Rescue Plan

What Are ARP Flexible Funds? The Rescue Plan included $350 billion in funding to state and local governments for fiscal recovery. California’s state government will receive $27 billion. In addition, California will receive $550 million in Coronavirus Capital Projects Fund, which also are available to the state on a more flexible basis.

How Can These Monies Be Used? The state can use the fiscal relief funds: (1) to respond to the public health emergency or negative economic impacts associated with the emergency; (2) to support essential work; (3) to backfill a reduction in revenue that has occurred since 2018-19; or (4) for water, sewer, or broadband infrastructure. The state has until Dec. 31, 2024 to use the funds. The U.S. Department of the Treasury recently released detailed guidance.

The Governor’s Proposal. The single largest proposal using these monies is $5.5 billion for broadband access, affordability, and infrastructure; next, nearly $5 billion to housing and homelessness and $3.6 billion to higher education, nearly $3 billion for health and nearly $3 billion for resources and environment. The administration also proposes language to provide flexibility to reallocate these funds. We are still receiving information from the administration on the uses of these funds.

School and Community Colleges

Governor’s Spending Choices. The State Constitution sets a minimum annual funding requirement for schools and community colleges. The May Revision includes nearly $23 billion in spending proposals to provide the constitutionally required funding increases. The Governor proposes allocating nearly $10 billion to pay down deferred payments from previous years, $5 billion (including $2.1 billion ongoing) for high-poverty schools and districts, nearly $1.4 billion for community colleges, and the remaining $6 billion) for other K-12 spending.

Budget Structure

For the $38 billion General Fund surplus, which excludes spending on schools and community colleges, the Governor allocates: $25 billion to one-time or temporary spending, including nearly $15 billion for capital outlay; $7 billion to revenue-related reductions; $3.4 billion to the Special Fund for Economic Uncertainties; and nearly $2 billion to ongoing spending increases, although these costs would grow substantially over time. The Constitution requires the state to set aside $11 billion for reserves and debt payments.

One-Time Spending

The Governor proposes spending $25 billion of General Fund surplus monies on a one-time or temporary basis. The majority of these one-time proposals ($15 billion) meet the definition of capital outlay under the SAL and are excludable.

Governor Proposes $15 Billion in Spending on Capital Outlay. The Governor proposes allocating $15 billion of General Fund to capital outlay. For example, the Governor’s General Fund proposals include $2.6 billion for transit and rail projects, $2 billion for affordable college student housing, $550 million for Homekey (to house the unhoused), and $500 million for zeroemission vehicle fueling infrastructure. If the Legislature wants to make different decisions (without statutory changes or fund shifts), it can either: (1) use the funds to make tax rebates and additional payments to schools, (2) spend on other SAL-excluded purposes, or (3) use the funds to reduce taxes.

Governor Proposes $10 Billion in Spending on One-Time or Temporary Programs. The Governor proposes spending $9.8 billion on a one-time or temporary basis for a various program expansions that are not capital outlay. The largest proposals include $500 million for Golden State teacher grants and a $500 million endowment for learningaligned employment.

Reserves and Debt

$11 Billion in Constitutional Reserve and Debt Requirements. With the administration’s revenue estimates, the Constitution would require the state to deposit $7.6 billion into the Budget Stabilization Account and spend another $3.4 billion to pay down debts. These deposits would be required regardless of whether the state made withdrawals from the account in 2020 to address the anticipated budget problem. They are large because of revenue revisions.

Using Surplus, Governor Repays $700 Million in Loans and Proposes Special Fund for Economic Uncertainties Balance of $3.4 Billion. The Governor also dedicates $700 million in discretionary resources to repay special fund loans and sets the balance of the fund at $3.4 billion for the end of 2021-22, somewhat higher than balance at the end of June 2020. Notably, the administration’s multiyear estimates include a negative balance of $6 billion in the Special Fund for Economic Uncertainties in 2022-23.

Governor Maintains Borrowing and Reserve Withdrawals. The Legislature passed the 2020-21 budget in the face of major uncertainty. Revenues were expected to fall sharply. The Legislature took $54 billion in actions to address that problem -- it withdrew funds from reserves, shifted costs, reduced spending, and increased revenues. However, under the administration’s estimates, General Fund tax revenues actually grew between 2019-20 and 2020-21 by 27 percent, the largest increase in four decades.

While the Governor’s proposals this year eliminate most of the spending-related budget solutions, they do use reserve withdrawals and borrowing from 2020 for $12 billion in spending.

Tax Reductions

Governor Proposes $7.1 Billion to Tax- and Revenue-Related Reductions. The most

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significant of these proposals is $8.1 billion in tax rebates to households with incomes of $75,000 or less.

These payments would satisfy half of the constitutional requirement under the SAL.) Partially offsetting the cost of the rebates is revenue from a proposal for a new tax on certain businesses.

Ongoing Spending

Governor Proposes $1.8 Billion in Spending on Ongoing Programs, With Significant Outyear Cost Increases. The Governor’s spending proposals also include $1.8 billion in ongoing discretionary spending. (We exclude funding provided to maintain the cost of current state services, such as base increases for the universities and employee compensation, from discretionary spending. These baseline cost increases increase ongoing spending by roughly $2.3 billion.)

Some of the largest include the Governor’s proposals to increase child care slots, expand full-scope Medi-Cal coverage to all adults 60 and older and to implement reforms to MediCal called California Advancing and Innovating Medi-Cal (CalAIM). Some of these proposals are phased in over a multiyear period, so we estimate the cost at full implementation of all of these proposals at $3.7 billion in 2024-25. By 2024-25, the state would spend $2.7 billion ongoing for Transitional Kindergarten. (Under the Governor’s proposal, spending on schools and community colleges under Proposition 98 would increase to accommodate this expansion.) ••• LAO Comments

Budget Structure

In Contrast to the Governor, Recommend Budget Resilience. Despite a historic surge in revenues, the Governor proposes to use nearly $12 billion in reserve withdrawals and borrowing to increase spending. Using strategies designed for a budget crisis to support state spending at this time is shortsighted and inadvisable.

The state will need these tools to respond to future challenges when federal assistance may not be as significant. In the next recession, the state is likely to have sizeable declines in revenues. To avoid reductions to safety net programs that support Californians when economic hardship is most acute, budget reserves are critical. For instance, in last year’s budget process, when the state anticipated a historic budget problem, cuts to safety net programs were largely avoided because of the state’s significant reserves. We urge the Legislature not to take a step back from its track record of prudent budget management.

Budget Decisions Are More Complex Due to State Appropriations Limit. The SAL places significant restrictions on how the Legislature can use the surplus. The Legislature, however, can make different decisions, which will affect whether tax rebates or future tax cuts are necessary. Moreover, the Legislature could change calculation of the SAL. Ultimately, the Legislature has substantial discretion.

Spending Choices

Proposals to Address Problems Exacerbated by Crisis. Appropriately given the dramatic and widespread impacts of the pandemic, many of the Governor’s larger proposals seek to mitigate either the pandemic’s direct impacts or problems exposed by the health and economic crisis.

The Governor’s homelessness proposal would allocate significant resources to a longstanding problem that has been heightened by the pandemic. The state also plays a foundational role in enabling economic growth by maintaining well-functioning infrastructure, transit, and higher education.

The May Revision includes many proposals in these areas. A notable number of proposals augment new programs, rather than making significant increases to existing safety net programs—like California Work Opportunity and Responsibility to Kids (CalWORKs) and Supplemental Security Income/ State Supplementary Payment (SSI/SSP)—or rate increases in programs like the Department of Developmental Services.

Trade-Off: Address Many Issues or Inroads on a Few. The May Revision aims to address many well-known problems, for which solutions—particularly coming out of a pandemic—are less understood. For example, whether the administration’s workforce proposals will attract workers to retrain remains to be seen. Many of the Governor’s proposals touch on similar issues, but ways in which they would interact remain unclear. We recommend considering whether to spread funding across many dissues or to dedicate more substantial resources to a smaller set of problems for which the Legislature has greater assurance of success.

Limited Capacity for Oversight. The surplus, in combination with the federal fiscal recovery funds, represents resources equal to about half of pre-pandemic General Fund budgets. This is an extraordinary amount of funding. Departments’ capacity to allocate this funding and oversee new spending will be limited. While the administration proposes a relatively small new unit in the Department of Finance to oversee new federal spending, more robust mechanisms for both state and federal funding—administratively and legislatively—are warranted.

Consider Withholding Some Decisions. The administration proposes allocating almost all of the surplus and fiscal relief funds now. Given the constrained time line of the budget process, limited administrative capacity, and potential for future action at the federal level, we recommend the Legislature withhold decisions on some components of the May Revision. Delay would give the Legislature more time to determine which solutions would be most effective and develop a detailed plan. For example, the Legislature could wait to allocate the federal fiscal relief funds until more is known about what supports and services are needed as more Californians return to work, federal relief winds down, and the pandemic ebbs. n

Ratany’s Story

Hello everyone, I’m Ratany (A281241), but don’t take me for a shrub! I’m a 1 year old male black and white domestic shorthair with quite the story. Before arriving at the shelter I lived in an RV with 50 other kitties! Trust me, it was not as fun as it sounds! In fact, it has left me a bit hesitant. I like to take my time getting to know new folks, but once I know you’re safe I warm up fast!

My favorite thing to do is talk to you. Yup, I’m one of those! I can talk all day every day, especially if I learn that you give good cheek scritches. I also LOVE toys. Playing is the fastest way to my heart. Personally, I prefer the wand toy, as it requires a superior level of skill which I have honed during my time here at the shelter. And yes…that is an open invitation to challenge me. *winks*

So if you’re bringing lots of love, fun, and patience to the table, come down to the Santa Cruz County Animal Shelter so we can have a chat!

Adoptions are first come, first served! Please view available animals on our website and then visit the Shelter to turn in your application. All adoptions require proof of home ownership or landlord approval. Please have this information prepared. If an animal is in Foster Care, please bring in your adoption application and schedule an appointment to meet the animal. Call 831-454-7200 x0 during business hours or visit www.scanimalshelter.org for more information! n ••• Santa Cruz County Animal Shelter’s full-service, open-admission shelter: Santa Cruz Location (Public Entrance): 1001 Rodriguez St., Santa Cruz, 95062 Hours: Daily 10 a.m. – 6 p.m. Watsonville Location: CURRENTLY CLOSED 580 Airport Blvd, Watsonville, CA 95076 SCCAS Main line: 831-454-7200. Animal Control: 831-454-7227. After-Hours Emergency: 831-471-1182 • After Hours: jillian.ganley@santacruzcounty.us

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