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- Written by: Lake County News reports
Gov. Gavin Newsom on Wednesday introduced his 2024-25 state budget proposal, which he said is a balanced funding plan that maintains the state’s fiscal stability while preserving key investments for education, public safety, addressing homelessness, mental health care reform, climate action and other priorities.
Newsom’s office said he used some of the “unprecedented budget reserves built up over the years” along with other tools to “responsibly” close a projected $37.86 billion shortfall.
Recognizing increased uncertainty due to a decline in the stock market and federal tax deadline delays, the 2023-24 state budget passed in June set aside record reserves of close to $38 billion to prepare for a potential shortfall.
Despite the downward revision, 2022-23 revenues are estimated to still be 23% higher than pre-pandemic levels. California's GDP remained strong in 2023, and the state’s big three revenues are projected to return to levels consistent with a normal revenue growth trajectory.
“Thanks to the record reserves we have built up and a commitment to fiscal discipline over the years, our state is in a strong position to close this shortfall while protecting key priorities and programs that millions of Californians rely on,” Newsom said. “This balanced budget plan keeps California on firm economic footing while continuing our work to tackle homelessness, keep communities safe, expand access to high-quality education, overhaul behavioral health care and fight climate change. I look forward to partnering with the Legislature to meet this moment with a balanced approach that meets the needs of Californians and safeguards our state’s future.”
Even after the proposed withdrawals, this budget plan reflects $18.4 billion in total budgetary reserves, including $11.1 billion in the Rainy Day Fund.
In addition to addressing the budget shortfall through a balanced package of solutions that avoids deep program cuts, the January budget proposal maintains investments in several of Newsom’s priority issues, including:
TACKLING HOMELESSNESS. Gov. Newsom has advanced a multi-year $15.3 billion plan to address homelessness — more than ever before in state history. This budget proposal maintains billions of dollars for an all-of-the-above approach including $400 million for encampment resolution grants and $1 billion for Homeless Housing, Assistance and Prevention program grants.
KEEPING CALIFORNIANS SAFE. The budget invests $1.1 billion over four years to increase the safety and security of our communities, including $373.5 million to combat organized retail theft; over $230 million for opioid and fentanyl interdiction and enforcement, naloxone distribution, recovery and support services and more; $302 million to enhance community public safety through nonprofit security grants, officer training and more; and $197 million to tackle gun violence.
TRANSFORMING EDUCATION. The budget maintains investments that are critical to improving supports for students, including funding for community schools, universal school meals, expanded learning opportunities, education workforce, and continued implementation of universal transitional kindergarten. Proposition 98 funding for K-12 schools and community colleges is estimated to be $109.1 billion in 2024-25 and per-pupil funding totals $23,519 per pupil when accounting for all funding sources.
MENTAL HEALTH REFORM. California has advanced a major transformation of the state’s behavioral health services system. This budget includes funding to make wellness coaches available to support children and youth behavioral health and maintains $7.6 billion from various funds to implement the Behavioral Health Community-Based Organized Networks of Equitable Care and Treatment (BH-CONNECT) demonstration.
CALIFORNIA’S CLIMATE COMMITMENT. California is advancing a $48.3 billion multi-year commitment, alongside over $10 billion from the Biden-Harris Administration in federal climate funding, to implement its nation-leading initiatives to slash pollution and achieve carbon neutrality by 2045, protect communities from harmful climate impacts, deliver 90% clean electricity by 2035, hold big oil accountable, and more.
Additional details on the January budget proposal can be found at www.ebudget.ca.gov.
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- Written by: LAKE COUNTY NEWS REPORTS
“While December’s cash position fell short of Department of Finance Budget Act cash flow estimates for the month by $3 billion, the state still has a strong $88.5 billion in available borrowable resources. Barring any unforeseen circumstances, California still has ample cash in its coffers to pay its bills and meet its financial obligations through the end of the fiscal year,” Cohen said.
“The Legislature and Governor have a difficult task ahead to bring revenues and spending into balance in the year ahead. However, their forethought in building rainy-day reserves in the Budget Stabilization Account has bolstered the state’s cash-on-hand and provided stability in the face of a budgetary deficit,” she added.
December saw California’s total General Fund receipts fall $5.2 billion — or 21.4% — short of estimates for the month, while disbursements were $2.3 billion — or 10.1% lower than estimated.
The state is 22.2% behind forecasts for the fiscal year to date with general fund receipts, $28.2 billion below estimates.
Disbursements were $5.1 billion lower than expected, and 4.2 percent behind estimates for the first six months of the fiscal year.
As the chief fiscal officer of California, Controller Cohen is responsible for accountability and disbursement of the state’s financial resources. The controller has independent auditing authority over government agencies that spend state funds.
She is a member of numerous financing authorities, and fiscal and financial oversight entities including the Franchise Tax Board. She also serves on the boards for the nation’s two largest public pension funds.
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- Written by: Elizabeth Larson
The decision comes as Scott De Leon, Public Works’ longtime director who also heads Water Resources, is planning to retire June 30.
De Leon became Lake County Water Resources director in 2010, and in May 2011 was appointed by the Board of Supervisors as Public Works director. The two departments since then have been joined and separated numerous times, usually as a result of staffing changes.
De Leon said it will be challenging to recruit an individual to be Public Works director, much less one who also has the experience with water resources issues.
That’s why he is recommending the departments be separated and led by two directors.
At the same time, he suggested keeping the Public Works Department’s administrative division in place to provide clerical and fiscal oversight of both departments.
That administrative division, which De Leon said he created after former Water Resources Director David Cowan left in the summer of 2019, has 13 full-time employees allocated, Assistant County Administrative Officer Steve Carter said during the discussion.
De Leon said that the Public Works administrative division is the strongest it’s been in 25 years, and is a “well-oiled machine” with a succession plan in place. To split it to create two separate departments would be detrimental, he added.
Until late last year, Marina Deligiannis had been the deputy director for Water Resources. De Leon said she handled the day-to-day operations of Water Resources; she also had worked on the Middle Creek Restoration Project.
However, she left to take a job out of county and De Leon said that position will now be “upgraded.”
Human Resources Director Pam Samac said the county could begin recruiting as soon as they have salary guidelines. She said she would work with Carter on that question, adding that they need to create a salary to draw the right kind of candidates.
De Leon urged them not to reduce the salary. “You’re going to have a hard enough time recruiting.”
Lake County Human Resources’ webpages do not list the Water Resources director or its annual salary range, but the Water Resources deputy director has a range of $94,812 to $115,248, while the Public Works director’s annual salary is $140,748 to $171,084.
Public Works and Water Resources together have a large number of projects going at any one time, as De Leon acknowledged.
During the meeting, Lake County News asked if De Leon’s succession planning addressed how to handle key projects in the transition.
In addition to the Middle Creek Restoration Project, among those of special concern Lake County News asked about is the long-running project to stop the hillside collapse that has closed Hill Road East near the Lakeside Heights subdivision almost annually since 2013.
There is also the work to find the best alternative to improving the condition of the Middle Creek and Clover Creek diversion levees near Upper Lake, which the studies to date have shown have the potential to fail due to their current condition, which could lead to catastrophic flooding.
Then there is the countywide pavement rehabilitation plan which De Leon presented to the board in April of 2022, which proposed $84 million in road work over five years. That was later changed to 10 years.
De Leon told the board during the initial 2023-24 budget hearings in June that his department planned to deliver a big initial road project in this fiscal year.
Gas tax will be part of the funding mix, but De Leon said at that time that the board needed to think of sales taxes, bonds and other types of funding options because Public Works doesn’t have a confirmed funding source for the pavement rehabilitation project after the first year. Without additional funding sources, De Leon said it will take more than 10 years to do the work.
In response to Lake County News’ questions about those project continuity issues, Board Chair Bruno Sabatier said it will be a “delicate process” to make sure there is a handoff between leadership.
Sabatier added that the board is responsible for ensuring those projects continue and don’t slip through the cracks.
De Leon said Public Works recently entered into a contract with Coastland Engineering for staff augmentation for the inspection and engineering division.
“I don’t have any intentions of just walking away and leaving things without anyone to handle them and just leaving everyone with a bunch of unfinished projects,” De Leon said. “I plan to assist in any way I can with that transition.”
The board reached consensus to split the departments’ leadership, but not the administrative division, as De Leon suggested, and to have Human Resources quickly begin the recruitment process.
Email Elizabeth Larson at
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- Written by: Elizabeth Larson
The wreck occurred on Highway 29 near Highland Springs Road, said Sgt. Joel Skeen of the California Highway Patrol’s Clear Lake office.
Skeen said Jennifer Taylor was driving a 2017 Ford Fusion northbound on Highway 29, approaching Highland Springs Road, as George Kieffer was driving his 2005 Ford F-250 westbound in that same area.
He said both vehicles entered the intersection and hit in a broadside collision.
A passenger in the Ford Fusion sustained major injuries and was flown to UC Davis Medical Center, Skeen said.
Both Taylor and Kieffer, as well as a passenger riding with Kieffer, sustained minor injuries and were transported to Sutter Lakeside Hospital, Skeen said.
Skeen said all of the vehicles’ occupants were wearing seat belts and no drugs or alcohol were suspected.
Email Elizabeth Larson at
