MEETING DATE:
APRIL 9, 2024
SUBJECT:
Title
LEGISLATIVE UPDATE
Body
Recommendation
Recommendation
NOTE and FILE update on pending legislation from the California State Legislature and the Governor and APPROVE letter of support for the Housing Acceleration Program (HAP).
Body
Relevant Council Strategic Theme
Planning for the Future
Good Governance
Introduction
The City Council adopted the 2024 Legislative Platform to guide the consideration of state and federal bills that affect City operations. The end of bill introduction of the two-year cycle for the California Legislature, a total of 2,124 bills were introduced. Staff, lobbyist consultants and Cal Cities are currently reviewing all of the new proposed legislation with future positions pending. Also at this time the governor and the upper and lower houses are looking for ways to reduce the state budget. In response to this SANDAG is seeking support from cities receiving REAP program funding to write letters of support for continuing funding of this program. The reversion of half of the dedicated REAP 2.0 funding could be devastating impact to our city’s progress towards meeting climate and housing goals.
Discussion
Lawmakers introduced over 2,100 bills during this second year of the two-year cycle. This report provides updates on newly proposed legislation with positions pending on current iteration of bills in print. Staff will continue to monitor and collaborate with Cal Cities and our lobbyist teams on future City Council consideration for an official position on proposed legislation. Policy committees are slowly starting to set hearings in the coming weeks to review all the new proposed bills.
The State already faces a significant deficit this year-estimated to be $58 billion under the administration’s revenue forecast at the time the Governor’s budget was proposed in January. State Senate leaders proposed a plan to reduce California's massive deficit by $17 billion through a combination of spending cuts, delays, and borrowing from state special funds. They also expressed agreement with Newsom's plan to allocate $12.2 billion from state reserves to address the shortfall. The lower house would reveal its own proposal in April.
Since 2016, Governor(s) have signed into law over 100 new housing bills. In the past legislative cycle, 2023, the Governor signed into law roughly three dozen (37) new housing laws. With the proposed cuts to REAP 2.0, SANDAG’s local jurisdictions including San Marcos, will be unable to address the many technical, capacity, and financial obstacles faced to successfully execute their housing element programs and implement new state housing law and guidance.
For the City of San Marcos, REAP would provide over $600k through the Housing Acceleration Program (HAP) Grant in providing a specific plan that would help to accelerate the development of potentially over 1000 new infill residential units including polices and implementation strategies assuring a range of diverse housing opportunities and transportation choices which allow multiple modes of travel that reduce the reliance on vehicles. Cutting this funding threatens our ability to address the housing crisis and meet the state’s important climate goals.
This letter of support will urge the Legislature to protect investments made to the Regional Early Action Planning Grants (REAP 2.0) program as they deliberate on the FY 2024-25 State Budget.
Environmental Review
There is no environmental impact to this recommendation.
Fiscal Impact
The fiscal impacts are associated with the bills listed above are unknown. A more thorough analysis of each bill’s implementation requirements would be needed to demonstrate total fiscal impact.
Attachments
HAP Letter of Support
Bill Position and Status List
Prepared by: Phil Scollick, City Clerk
Reviewed by: Dan Barron, Fire Chief/Assistant City Manager
Approved by: Michelle Bender, City Manager