By Jon Coupal, President, Howard Jarvis Taxpayers Association

The Taxpayer Protection and Government Accountability Act (TPA) is a proposed constitutional amendment which has already qualified for the November 2024 ballot. It is sponsored by taxpayer and business organizations to restore key provisions of Proposition 13 and other pro-taxpayer laws that give voters more control over when and how new tax revenue is raised.

Although TPA, unlike previous tax reform measures, doesn’t reduce or eliminate any state or local tax, it does impose both enhanced voter approval requirements for fee and tax increases as well as robust accountability and transparency provisions.

For obvious reasons, tax-and-spend interests hate TPA and have launched a multi-front assault hoping to either defeat it or keep it off the ballot entirely.

The motivation for these schemes is that politicians and their enablers are fully aware that TPA is highly likely to pass if it stays on the ballot. Californians are sick and tired of having the nation’s highest tax rates jammed down their throats, especially when these heavy tax burdens are not accompanied by higher levels of public services; in fact, the opposite is true, as evidenced by California’s high cost of living, crime, homelessness, hostile business climate, and other ills.

But now, there may be another reason why anti-taxpayer interests are waging this war on TPA. A recent report by the California Legislative Analyst’s office threw a bucket of cold water on progressives’ plans to continue to increase taxes with virtually no restraint. The LAO now estimates “2022-23 revenues to be $26 billion below Budget Act projections. Historical experience suggests this weakness is likely to carry into this fiscal year and next. Overall, our updated revenue outlook anticipates collections to come in $58 billion below Budget Act projections across 2022-23 to 2024-25.” (Note that in less than a week after this news, the LAO upped the shortfall from $58 billion to $68 billion).

If there is any saving grace to the current financial situation it is that California still has substantial budget reserves. That, plus some creative accounting, can probably blunt the negative impacts of a severe drop in revenues – at least for a while.

Nonetheless, if California’s tax revenue spigot is curtailed any significant amount, will the enemies of the Taxpayer Protection Act argue that this provides another justification for removing all restraints on raising taxes?

Economic growth in Texas and Florida is outpacing that in California, due in part to a top marginal income tax rate of zero. What is happening in other smaller states is less well known. The smart move would be to follow the lead of other states which are aggressively pursuing pro-growth strategies which in turn lead to more tax revenue.

Take Iowa for example. Defying critics who claimed that tax reductions would crush the state budget, Iowa’s Governor Kim Reynolds slashed top marginal tax rates, previously some of the highest in the nation. Not only did revenues not crash, but they shot up by huge percentage points. According to a report in Center Square, “Iowa led the ‘tax-cutting wave’ in 2022, with the most comprehensive and aggressive tax reform in the United States. This will gradually replace the nine-bracket, progressive income tax with a flat tax, bringing the top rate, which was close to 9 percent, down to a flat 3.9 percent by 2026.”

Other states have provided California with a roadmap for economic growth and healthy budgets by cutting taxes and pursuing other pro-freedom policies. However, the political realities in this one-party state – governed by hardcore progressives – render the odds of politicians even looking at the roadmap extremely slight.

That being said, if the Governor and the Legislature won’t do what’s necessary to prevent a budget disaster, the least they can do is get out of the way of those who have offered the Taxpayer Protection Act to the voters so that ordinary citizens can do what politicians won’t: impose fiscal discipline on a fiscally reckless state.

This column originally appeared in the Orange County Register. Republished with permission.

Says state can borrow over $91 billion

By Allen D. Payton

The California Legislative Analyst’s Office issued a report on Dec. 7, 2023, that the state faces a $68 billion budget deficit for the 2024-25 Fiscal Year. Entitled, “The 2024-25 Budget: California’s Fiscal Outlook”, the report’s Executive Summary read as follows:

“California Faces a $68 Billion Deficit.

Largely as a result of a severe revenue decline in 2022-23, the state faces a serious budget deficit. Specifically, under the state’s current law and policy, we estimate the Legislature will need to solve a budget problem of $68 billion in the upcoming budget process.

Unprecedented Prior-Year Revenue Shortfall Creates Unique Challenges.

Typically, the budget process does not involve large changes in revenue in the prior year (in this case, 2022-23). This is because prior-year taxes usually have been filed and associated revenues collected. Due to the state conforming to federal tax filing extensions, however, the Legislature is gaining a complete picture of 2022-23 tax collections after the fiscal year has already ended. Specifically, we estimate that 2022-23 revenue will be $26 billion below budget act estimates. This creates unique and difficult challenges—including limiting the Legislature’s options for addressing the budget problem.

Legislature Has Multiple Tools Available to Address Budget Problem.

While addressing a deficit of this scope will be challenging, the Legislature has a number of options available to do so. In particular, the state has nearly $24 billion in reserves to address the budget problem. In addition, there are options to reduce spending on schools and community colleges that could address nearly $17 billion of the budget problem. Further adjustments to other areas of the budget, such as reductions to one-time spending, could address at least an additional $10 billion or so. These options and some others, like cost shifts, would allow the Legislature to solve most of the deficit largely without impacting the state’s core ongoing service level.

Legislature Will Have Fewer Options to Address Multiyear Deficits in the Coming Years.

Given the state faces a serious budget problem, using general purpose reserves this year is merited. That said, we suggest the Legislature exercise some caution when deploying tools like reserves and cost shifts. The state’s reserves are unlikely to be sufficient to cover the state’s multiyear deficits—which average $30 billion per year under our estimates. These deficits likely necessitate ongoing spending reductions, revenue increases, or both. As a result, preserving a substantial portion—potentially up to half—of reserves would provide a helpful cushion in light of the anticipated shortfalls that lie ahead.”

Controller Cohen Calls for Calm

In a press release issued Tuesday, Dec. 19, State Controller Malia M. Cohen calls for calm in the wake of recent budget deficit announcements and issued the following statement after releasing the recent Cash Report on December 8:

“Despite reports from various sources indicating a budgetary deficit of approximately $68 billion, the state’s cash position remains strong, and, absent any unforeseen circumstances, the state has sufficient cash to pay its bills and meet its financial obligations through the end of the fiscal year.”

“As chief fiscal officer, one of my duties is to track and report on the state’s actual cash balance,” she continued. “In that regard, the state currently has more than $91.4 billion in available borrowable resources, due in large part to the Governor’s and Legislature’s foresight in building prudent rainy-day reserves in the Budget Stabilization Account. While legislators will have difficult choices to make in the new year, I am confident they will be deliberate in addressing the budget challenges before them, and I urge them to protect, to the extent possible, the health and social service programs designed to benefit those who are displaced, without shelter, or otherwise economically disadvantaged.”

About Controller Cohen

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. Follow the Controller on X at @CAController and on Facebook at California State Controller’s Office.

About the Legislative Analyst’s Office

The Legislative Analyst’s Office (LAO) has provided fiscal and policy advice to the Legislature for 75 years. It is known for its fiscal and programmatic expertise and nonpartisan analyses of the state budget. The office serves as the “eyes and ears” for the Legislature to ensure that the executive branch is implementing legislative policy in a cost efficient and effective manner.

Organization

The office is overseen by the Joint Legislative Budget Committee (JLBC), a 16-member bipartisan committee. Currently, the office has a staff of 43 analysts and approximately 13 support staff. The analytical staff cover several budget and policy areas: Criminal Justice, State Finance, Education (including K-12 and Higher Education), Health and Human Services, Natural Resources and Environment, General Government (including Local Government), Transportation, and Capital Outlay and Infrastructure.

By Josef Britschgi, Marketing & Communication Administrator, BAC Community Bank

BAC Community Bank recently helped secure funding for a nonprofit workforce development organization in Antioch.

Through a collaboration with the Federal Home Loan Bank of San Francisco (FHLBank San Francisco) and its AHEAD economic development grant program, BAC Community Bank helped to provide $70,000 in funding to Antioch’s Opportunity Junction for the expansion of its mental health services. 

“It is a privilege to stand by Opportunity Junction and other grassroots community organizations,” said Dana Bockstahler, BAC Community Bank CEO. “We are honored to assist in providing the vital financial support that fuels their unwavering dedication to making a positive impact on local lives.”

With a mission to “help motivated Contra Costa County job seekers develop the skills and confidence to launch careers that lead to financial security,” Opportunity Junction provides no-cost job training and wraparound support to income-eligible individuals with barriers to employment. 

Opportunity Junction President and CEO Brianna Robinson said her organization’s Administrative Careers Training program has offered mental health services to participants since 2003, but this BAC Community Bank-sponsored grant will now make those services available to all individuals enrolled in the Healthcare Career Pathway and Career Counseling and Placement Assistance programs. 

“We are deeply grateful for this support,” Robinson continued. “We recognized in 2003 that addressing trauma was critical to helping job seekers overcome barriers to employment. As we have grown over the years and added more programs, we are excited to offer these services to all our job seekers with the goal of supporting high graduation and employment retention rates.” 

The AHEAD program enables FHLBank San Francisco members like BAC Community Bank to give a critical boost to local programs and projects that target pressing community needs and bring greater opportunity to underserved populations. AHEAD grants are awarded annually and delivered through FHLBank San Francisco member financial institutions to local community organizations for projects and programs that benefit lower-income and underserved communities. 

Since the program’s inception in 2004, FHLBank San Francisco has awarded more than $25 million in AHEAD grants to over 800 economic development projects in Arizona, California and Nevada. In 2023, the FHLBank San Francisco board of directors allocated $4 million to the AHEAD program, more than doubling the funding in prior years, and awarded grants to 75 projects. BAC Community Bank applied for the grant in partnership with Opportunity Junction and was awarded the $70,000 after a competitive selection process. This is the fourth year that BAC Community Bank has participated in the program.

“Each year, we are inspired by the wide range of impactful programs that are brought to us by our member institutions through the AHEAD grant program,” said Eric Cicourel, FHLBank San Francisco senior vice president and community investment officer. “We were particularly encouraged by the large number of unique members who participated in this cycle, including BAC Community Bank. These financial institutions are pillars in their communities and have an intimate understanding of the needs of the communities they serve. We are proud to partner with our members to extend a lifeline to so many compelling and deserving organizations.”  

For those interested in applying for the AHEAD Program in 2024, please contact BAC Community Bank or visit the FHLBank San Francisco website at www.fhlbsf.com to learn more. 

About BAC Community Bank

BAC Community Bank is California’s 10th oldest state-chartered bank. Established in 1965, BAC operates branch offices throughout San Joaquin, Stanislaus, and eastern Contra Costa counties. Centrally headquartered in Stockton, California, BAC is continuously recognized for its strength and banking excellence in the communities it serves. BAC Community Bank is an Equal Housing Lender and Equal Opportunity Employer. Member FDIC. More information is available online at www.bankbac.com. 

About Opportunity Junction

Opportunity Junction was founded in 2000 on the fundamental belief that everyone who works hard deserves the opportunity to succeed despite facing personal and systemic barriers. The organization provides training, support, work experience and placement assistance to empower Contra Costa job seekers to achieve financial security. More information is available online at www.opportunityjunction.org. 

About the Federal Home Loan Bank of San Francisco

The Federal Home Loan Bank of San Francisco is a member-driven cooperative helping local lenders in Arizona, California, and Nevada build strong communities, create opportunity, and change lives for the better. The tools and resources we provide to our member financial institutions — commercial banks, credit unions, industrial loan companies, savings institutions, insurance companies, and community development financial institutions — promote homeownership and expand access to quality housing and boost economic development. Together with our members and other partners, we are making the communities we serve more vibrant, equitable, and resilient. More information is available online at www.fhlbsf.com.

Claims typical residential customer will pay $32.62 more for combined monthly electric and natural gas bill beginning January 1, 2024.

By CPUC

The California Public Utilities Commission (CPUC) on Thursday, Nov. 16, 2023, resolved Pacific Gas and Electric Company’s (PG&E) General Rate Case (GRC), which covers its operational and infrastructure revenue requirement for 2023-2026. The decision marks a crucial step in fortifying the future of California’s electric grid while prioritizing customer affordability.

Based on the evidence presented, the CPUC today unanimously approved the Alternate Proposed Decision of Commissioner John Reynolds. This decision approves investments in the safety and reliability of PG&E’s energy services. Inflation and a significant investment in undergrounding electric lines ranked among the top drivers in PG&E’s request. Over the past year and a half, numerous parties reviewed PG&E’s GRC request and provided input on each cost category and related proposed expenditures.

“I am proud of today’s decision because it represents the CPUC’s commitment to finding a reasonable balance in the face of incredibly challenging circumstances and competing objectives,” said Commissioner John Reynolds, who is assigned to the proceeding. “This decision ultimately represents both an historic investment in PG&E’s electric and natural gas systems as well as an expectation that PG&E must continue to be safer and more efficient. I am grateful to the many parties, and the scores of CPUC staffers, for their help as we grappled with this decision.”

Today’s decision propels PG&E’s energy infrastructure and operations into the future, addressing critical objectives such as mitigating wildfire risk, enhancing safety and reliability, and anticipating evolving electric grid demands. This comprehensive approach not only ensures PG&E’s capacity to maintain a safe and reliable energy system with a dedicated workforce, but also positions California for a more resilient energy future in the face of climate change. Moreover, the decision reflects rigorous oversight over hundreds of programs, and reduces PG&E’s request to more accurately reflect forecasts for prudent use of ratepayer funds.

Among the key initiatives covered in the decision:

• Wildfire System Enhancement and Undergrounding
  • Approves 1,230 miles of electric line undergrounding, as well as 778 miles of covered conductor, totaling 2,008 hardened miles. This represents an historic opportunity for PG&E to invest in safer, reliable improvements for its customers while also achieving economies of scale to drive down costs; the revised undergrounding total also provides PG&E with a bridge to a future phase of undergrounding planning, through the Senate Bill 884 program.
• Vegetation Management
  • Approves PG&E investing approximately $1.3 billion in vegetation management to reduce wildfire ignition risk and improve reliability on PG&E’s electrical system.
• Capacity Upgrades
  • Approves PG&E investing more than $2.5 billion in upgrading the electric distribution system from 2023-2026, which will help prepare the grid to support initiatives for enhanced building electrification and new interconnections for electric vehicle charging stations and new housing and businesses.

“Today’s decision balances a myriad of competing interests—affordability, feasibility, safety, and reliability,” said CPUC President Alice Reynolds. “And in the face of increasingly turbulent climate-driven weather events, it gives PG&E the opportunity to prove it can underground electric lines at scale.  This will allow PG&E to achieve economies of scale, drive down costs, and reduce wildfire risk.”

Setting the pathway for critical investments in PG&E’s system

For PG&E customers, this approval by the CPUC translates to a continued commitment to safe, reliable, and affordable energy services. The GRC ensures that every dollar invested contributes to more resilient energy infrastructure, offering customers lasting benefits. Moreover, stringent accountability measures are embedded within the decision, assuring customers that their investment yields tangible and accountable improvements in PG&E’s operations and services.

PG&E requested $15.4 billion for 2023; Thursday’s decision cut that amount substantially, by $1.8 billion. Today’s decision sets the 2023 revenue requirement at $13.5 billion, reflecting an 11 percent increase from the authorized 2022 revenue requirement. For the typical residential customer, their combined monthly electric and natural gas bill will increase by $32.62 or 12.8 percent, compared to PG&E’s request of $38.73 or 17.9 percent increase.

PG&E’s 2022 Authorized Revenue Requirement		Proposed 2023 Revenue Requirement	Percent Increase	Dollar Increase
$12.2 billion	PG&E Request	$15.4 billion	26%	$3.2 billion
	Decision	$13.5 billion	11%	$1.3 billion

Customers can expect any changes to their bill to go into effect on January 1, 2024.

For further information on the proceeding, including today’s decision and a fact sheet, please visit the CPUC’s website.

About the California Public Utilities Commission

The CPUC regulates services and utilities, protects consumers, safeguards the environment, and assures Californians access to safe and reliable utility infrastructure and services. Visit www.cpuc.ca.gov for more information.

Includes $741,000 for Tri Delta Transit, $352 million for BART

Funding distribution still is subject to state approval

The Metropolitan Transportation Commission (MTC) on Wednesday, Nov. 15, 2023, approved an emergency transit operations funding plan that, if approved by the state, will use state and regional funds for transit operations to address Bay Area transit agencies’ most dire funding shortfalls and help them avoid service cuts. 

Today’s action by the Commission approves the principles informing the funding distribution, the funding distribution framework, and regional accountability measures for funding from the Transit and Intercity Rail Program (TIRCP), Zero-Emission Transit Capital Program (ZETCP), and various regional funding sources according to the guidelines described in Senate Bill (SB) 125. The resolution also makes the transit agency boards’ acceptance of the accountability guidelines a requirement for receiving the funds. The actual distribution of the funds is subject to the submittal of these documents to the California State Transportation Agency (CalSTA) and CalSTA’s approval of the documents.

Distribution amounts will be reassessed annually to respond to changing conditions, and the disbursement of operating funds will be contingent upon transit agencies meeting or making significant progress toward a set of accountability requirements, including customer experience and efficiency enhancements. 

For all agencies receiving emergency operating money, the accountability requirements will include participation in ongoing Transit Transformation Action Plan initiatives, and implementation of schedule coordination and real-time transit data improvements. Other accountability requirements are specific to individual operators and focus on safety and security, fare evasion reduction, and comprehensive service improvements.

Under this plan, MTC will contribute an additional $300 million in regional funds to help address the funding shortfall and to keep transit operational. 

MTC will distribute funds according to the following framework:

MTC will distribute funds according to this framework.
Agency	FY24-25	FY25-26	Total ($)	Total (%)
SFMTA	$99,477	$209,328	$308,805	40%
BART	$58,211	$293,837	$352,048	45%
AC Transit	$4,000	$28,569	$32,569	4%
Caltrain	$0	$25,449	$25,449	3%
Golden Gate Transit	$2,838	$38,263	$41,101	5%
Other Operators	$4,661	$9,574	$14,235	2%
ACE	$1,777	$1,829	$3,605	n/a
ECCTA (Tri Delta Transit)	$503	$238	$741	n/a
LAVTA	$897	$1,392	$2,289	n/a
NVTA	$1,485	$966	$2,450	n/a
SolTrans	$0	$2,036	$2,036	n/a
WestCAT	$0	$3,113	$3,113	n/a
Regional Network Management	$2,000	$0	$2,000	0%
Bay Area Total	$171,187	$605,020	$776,207	100%

Amounts shown in thousands ($1,000)

In June, Gov. Newsom signed into law California’s fiscal 2023-24 state budget, which includes $1.1 billion in flexible transportation funding to help support transit operations. The state investment will help transit agencies avoid a near-term ‘fiscal cliff’ that has resulted from the COVID-19 pandemic and associated changes in travel patterns and that likely would have led to deep service cuts as early as this year by Muni, BART and other agencies whose fare revenues remain well below pre-pandemic levels.

SB 125 also requires that MTC collect and summarize data from transit operators on a variety of topics, including expenditures on safety, opportunities for enhanced coordination and improvements, and monthly ridership statistics. MTC by June 30, 2026, must submit a Long-Term Financial Plan that demonstrates the implementation of ridership recovery strategies and provides a five-year operating funding outlook.

In order to meet the December 31, 2023, deadline to submit materials to CalSTA, staff will return to the Commission in December to request adoption of the Short-Term Financial Plan. MTC will receive FY2023-24 SB 125 funds no later than April 30, 2024, and will be eligible to receive FY2024-25 funds early in that fiscal year, pending CalSTA’s review of MTC’s allocation package.

BART is seeking applicants to serve as public members on its Audit Committee, which assists the Board of Directors in providing oversight for financial management, operational effectiveness, ethics and regulatory compliance. 

The Audit Committee is comprised of five voting members, including three Board Directors and two public members with governmental financial expertise. It meets at least four times per year, with authority to convene additional meetings as needed.

Criteria for the position include:

• Expertise: Have expertise in governmental accounting, financial management, or Performance auditing, or conducting investigations of fraud, waste, or abuse;
• Technical Knowledge: Have technical knowledge of accounting, financial or performance auditing, financial reporting, and internal controls, including an understanding of and ability to apply the Government Auditing Standards, accounting standards issued by the Government Accounting Standards Board, and a recognized internal control framework;
• Professional Certification: Possess a relevant professional certification, such as Certified Public Accountant, Certified Internal Auditor, Certified Fraud Examiner, Certified Inspector General, Certified Internal Controls Auditor, Certified Information Systems Auditor, or a similar certification. Relevant experience may substitute for such certification in the Board’s discretion; 
• No conflicts/recent affiliations: Within the past 10 years and other than in their role as a committee member, have no affiliation with the District or with a firm that has done business with the District.

Public members serving on the Audit Committee must be appointed by a majority of the full Board of Directors through this application process. Public members must possess the independence, experience, and collective technical expertise necessary to carry out the duties of the Audit Committee. Public members must be residents within the District’s boundaries and are subject to conflict-of-interest laws.

The application process has two phases. In Phase 1, all applications will be reviewed to meet all requirements and qualifications, letters of recommendations and any supplemental documents. In Phase 2, selected candidates will be invited to appear before the Board of Directors to briefly explain their interest in serving on the committee, followed by a Board vote.

Download the application form, Audit Committee Public Member appointment rules, and the  Audit Committee Charter.

Please contact the Office of the District Secretary with any questions via email at boardofdirectors@bart.gov.

Assembly Bill 39 will establish a licensing process for crypto exchanges and provide consumers with needed protections. Senate Bill 401 will establish safeguards for crypto kiosks. 

(SACRAMENTO, CA) – On Friday, Oct. 13, 2023, Assembly Bill 39, authored by Assembly Banking and Finance Chair Timothy Grayson (D-Concord) and co-authored by Senate President pro Tempore Toni G. Atkins (D-San Diego), Senate Banking and Financial Institutions Chair Monique Limón (D-Santa Barbara), and Assemblywoman Cottie Petrie-Norris (D-Irvine), was signed by Governor Gavin Newsom. AB 39 will establish a licensing program for crypto assets within the Department of Financial Protection and Innovation (DFPI) to protect Californians from bad actors and foster responsible innovation. The bill represents a major victory for responsible innovators and California consumers.

AB 39’s lead author, Assemblymember Grayson, released the following statement:

“Today California is taking the necessary step to regulate a market that is volatile, risky, and, in some cases, deliberately rigged against everyday consumers. Because of today’s action, Californians can be confident that crypto businesses, like any other company in financial services, must follow reasonable rules that will protect consumers and their money. Thank you to Governor Newsom for helping ensure that our state leads in fostering responsible innovation.”

Assembly Bill 39 is a companion bill to Senate Bill 401 (Limón and Atkins), which will set a regulatory framework for crypto kiosks, a part of the crypto industry rife with fraud and abuse. Crypto kiosks are ATM-like machines that allow consumers to purchase cryptocurrencies such as Bitcoin. However, these machines charge exorbitant fees and are hubs of criminal activity, scams, and consumer fraud.

“With the important frameworks established by AB 39 and SB 401, California will begin the challenging task ahead of us to regulate cryptocurrency and ensure that no Californian falls prey to scams, investment related fraud, or high-fee asset withdrawal schemes,” said California Senate President pro Tempore Toni G. Atkins. “Failures in crypto markets in recent years have emphasized the need for regulatory frameworks that have the backs of consumers, and Assemblymember Grayson and Senator Limón have led the way in doing just that.”

“California is taking a step in the right direction to protect California consumers from fraud, unnecessary risk, and potentially criminal activity with the signing of SB 401 and AB 39,” said Senator Monique Limón. “I am grateful that Governor Newsom sees the benefits to establishing a clear framework that allows for innovation without harming California consumers.”

Senate Bill 401 was signed into law, along with Assembly Bill 39. 

“The Consumer Federation of California thanks Governor Newsom for signing these two important bills protecting consumers in the crypto marketplace,” said Robert Herrell, Executive Director of Consumer Confederation of California. “California now retakes its rightful position near the top of states protecting consumers in the crypto market. We also profoundly thank Assemblymember Grayson and Senators Limón and Atkins for their perseverance on these issues. Consumers will be better protected in crypto thanks to these new laws.” 

With the Governor’s signature of these measures, crypto companies and crypto kiosk operators must obtain or apply for a license by July 1, 2025, to continue doing business in California. Additional information and the text of both bills can be found here. 

Includes projected deficits of $10.2 million in 2023-24 and $15.4 million in 2024-25; also approves $226.6 million 5-Year Capital Improvement Program budget

By Allen D. Payton

During their meeting on Tuesday, June 13, 2023, the Antioch City Council adopted a $237.5 million annual budget for Fiscal Year 2023-24 and $226.2 million budget for Fiscal Year 2024-25 with $10.2 and $15.4 million deficits, respectively. The council also unanimously approved the $226.6 million 5-Year Capital Improvement Program budget and spending up to $2.1 million for police dispatch and records management software upgrade over five years.

Approves Two-Year Budget

The council approved the two-year budget for Fiscal Years 2023-25 using less than $3 million from Budget Stabilization funds for the General Fund, according to Finance Director Dawn Merchant. The 2023-24 Fiscal Year Operating Budget projects a total $10.2 million deficit with $227,370,716 in revenue, including$91,854,602 to the General Fund and $237,524,285 in expenditures, including $92,698,366 from the General Fund. In Fiscal Year 2024-25 the deficit is projected to be $16 million with $210,736,707 in revenue, including$97,314,672 in the General Fund and total expenditures of $226,163,010, including $100,314,672 from the General Fund. (See below)

Over half of the General Fund pays for police, including $50,741,523 in FY 2023-24 and $54,670,183 in FY 2024-25.

Approves 5-Year Capital Improvement Program Budget

The council also unanimously approved the $226.6 million 5-Year Capital Improvement Program Budget with the largest amount of $69 million to be spent on the Brackish Water Desalination Plant. The budget also includes $55.4 million for Roadway Improvements, $47.1 million on the City’s water system, $21.6 million on Community Facilities, $16.4 million on Parks and Trails, $12 million on the Wastewater and Storm Drain System and $4.4 million on Traffic Signals.

Approve $2.1 million for Police Department Software Upgrade

The council approved a five-year contract not to exceed $2,123,744 to develop and maintain a Police Computer Aided Dispatch (“CAD”) and Records Management System (“RMS”) from June 1, 2023, to July 1, 2028, authorizing the Acting City Manager to execute a purchasing agreement with Sunridge Systems.

Mayor Pro Tem Tamisha Torres-Walker was the only council member to speak on the item.

“Increased police response times is literally a matter of life and death in this community,” she said “Three minutes versus 10 minutes when you have a loved one bleeding out in the street… response times matter. Until we can create this other world, this utopia where we don’t need these systems, we need to make them work. Our police department is way behind 21st Century Policing. I definitely support this, and I can make the motion,” which she then did.

Seconded by District 2 Councilman Mike Barbanica, the motion was adopted on a 5-0 vote.