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 Kelly Kalfsbeek, PIO, Contra Costa County Public Works Department

Contra Costa County (County) is accepting applications for the upcoming Member at Large opening on the Aviation Advisory Committee (AAC). This position is designated for someone who works or resides in Contra Costa County to represent all County stakeholders in matters related to Buchanan Field and Byron Airports. Upon appointment by the Board of Supervisors the new appointee would serve a term expiring on Sunday, February 28, 2027.

The AAC serves as an advisory group to the Contra Costa County Board of Supervisors (Board) to provide advice and recommendations to the Board on aviation matters related to the Contra Costa County Airports.  The AAC typically meets every other month at either Buchanan Field or Byron Airport.

Application forms can be obtained from the Clerk of the Board of Supervisors by calling (925) 655-2000 or at:  https://www.contracosta.ca.gov/3418/Appointed-Bodies-Committees-Commissions.  Applications should be submitted online or returned to the Clerk of the Board of Supervisors, County Administration Building, 1025 Escobar Street, 1st Floor in Martinez, no later than 5:00 p.m. on Thursday, December 28, 2023.  Applicants should plan to be available for public interviews in person or via Zoom, tentatively scheduled for Monday, January 22, 2024, at 11:00 am at the County Administration Building, 1025 Escobar Street, Conference Room 110 A & B, Martinez, at the Airports Committee Meeting.

For more information on the Contra Costa County Airports or the AAC visit us at www.ContraCostaCountyAirports.org or by calling (844) Fly-ToUs or (844) 359-8687.

Dan Mierzwa will replace Russell Watts who is retiring Dec. 31

By Kristi Jourdan, PIO, Contra Costa County

On Tuesday, Dec. 12, 2023, the Contra Costa County Board of Supervisors appointed Dan Mierzwa as the next Treasurer-Tax Collector effective Jan. 1, 2024.

Mierzwa’s appointment follows the announcement of Russell Watts’ retirement in December. He is currently Yuba County’s Treasurer & Tax Collector and must submit proof of residency and voter registration in Contra Costa County before he assumes the office.

Mierzwa holds a Bachelor of Arts in Economics with Finance and Business Administration minors from the University of Puget Sound in Tacoma, Wash. He also holds a Certified California Municipal Treasurer certification.

“I’m honored by the opportunity to help during this transition in leadership and am committed to maintaining the levels of transparency and accountability with sound financial practices that serve the best interests of the public,” Mierzwa said. “We will also continue improving our online payment and business license application services and explore ways to save and recover costs to deliver our services.”

The Treasurer-Tax Collector’s Office acts as the bank for the County, providing financial services to County departments, schools, and special districts and managing more than $4.9 billion in the County’s investment pool. The office also collects various taxes – including business taxes from those operating in the unincorporated areas, and property taxes. While the Treasurer-Tax Collector mostly provides services to the County and taxing districts, the office also invests public funds and collects business related taxes, namely business licenses and transient occupancy taxes, as well as short-term rental and cannabis taxes.

“The Treasurer-Tax Collector’s Office holds a key position of trust in the financial affairs of local government,” said Board Chair District I Supervisor John Gioia. “Dan’s experience and knowledge of both the treasury and tax collection functions will continue the County’s efforts to protect, invest, and disburse funds in a prudent and safe manner.”

The current term for the elected office expires on Jan. 4, 2027. Government Code section 25304 requires that the Board of Supervisors appoint someone to fill the vacancy for the remainder of the term. The annual salary for the position is $254,901.24.

Watts, who is leaving office to spend more time with family, has served as the elected-Treasurer-Tax Collector for 13 years.

At Diablo Valley College

Congressman Mark DeSaulnier (CA-10) has announced he will host his 200th Town Hall since coming to Congress on Saturday, December 9th at 1 p.m. at the Bistro at Diablo Valley College’s Pleasant Hill Campus.

“I am grateful for the continued engagement of the people of California’s 10th Congressional District and look forward to celebrating this milestone together,” said DeSaulnier.

During the town hall he will provide a recap of House Democrats’ efforts this past year to support the American people and a preview of his legislative priorities heading into the new year.

Town Hall at Diablo Valley College

Saturday, December 9th
1:00 – 2:00 PM
The Bistro

321 Golf Club Road, Pleasant Hill

This event is open to the public and press and will be streamed live on Congressman DeSaulnier’s Facebook page.

To RSVP, submit a question, or request special accommodations, visit  https://desaulnier.house.gov/town-hall-rsvp or call (925) 933-2660.

By Dave Mason, Public Information Supervisor, Public Affairs, East Bay Regional Park District

After a nationwide search, the East Bay Regional Park District announces the appointment of José G. González as its new Equity Officer to lead diversity, equity, and inclusion efforts at the public agency. The East Bay Regional Park District’s mission is to preserve a rich heritage of natural and cultural resources and provide open space, parks, trails, safe and healthful recreation and environmental education. An environmental ethic guides the District in all of its activities. González begins in the role on December 18, 2023.

As the largest regional park district in the country, the park system spans Alameda and Contra Costa counties and serves an estimated 30 million visitors a year through park and trail access, visitor centers, and programs. Its workforce provides services that encompass 73 parks, 55 miles of shoreline, and over 1,300 miles of trails.

“We are pleased to share news of this pivotal role and welcome José González to help lead the East Bay Regional Park District to further strengthen its mission and impact and build upon successes as we continue to prioritize a strong, systemic approach to equity both in our workplace and services to the public,” said Sabrina B. Landreth, General Manager at the East Bay Regional Park District.

The new role will work to improve access to and use of the parks’ services for all community members and support inclusive programs, services, and public processes that reflect the tremendous diversity of our community. The position will also lead on programs and activities to help diversify our workforce, eliminate any systemic barriers to employment and promotion, and ensure equitable policies and best practices to make the agency an employer of choice as the District continuously seeks to build and retain a topnotch workforce.

“I am excited to join the East Bay Regional Park District as its inaugural Equity Officer. I look forward to bringing my experience from the local to the national level around equity in the conservation field and community in a way that showcases the opportunity and leadership that the Park District has been developing in this space for all of our community,” said González.

“Equity and inclusion begin from within, so I am thrilled and ready to support and lead the work that the Park District has prioritized for the agency to represent and reflect the diversity of its community,” added González.

González is a professional educator with training in the fields of education and conservation. He is the Founder of Latino Outdoors as well as a consultant at large. As a Partner at the Avarna Group and through his own consulting, his work focuses on Equity & Inclusion frameworks and practices in the environmental, outdoor, and conservation fields. He is also an illustrator and science communicator.

He received his B.A. at the University of California, Davis with teaching coursework at the Bilingual, Multicultural, Education Department at Sacramento State University. He received his M.S. at the University of Michigan School of Natural Resources & Environment. He serves as a board member at Parks CA and Resource Media, and as a Commissioner for the California Boating & Waterways Commission, among other leadership volunteer roles.

According to his profile on parkscalifornia.org, González is the Founder and Director Emeritus of Latino Outdoors. He is an experienced educator as a K-12 public education teacher, environmental education advisor, outdoor education instructor and coordinator, and university adjunct faculty. As a Partner in the Avarna Group and through his own consulting, his work focuses on Equity & Inclusion frameworks and practices in the environmental, outdoor, and conservation fields. He is also an illustrator and science communicator.

The East Bay Regional Park District is the largest regional park system in the nation, comprising 73 parks, 55 miles of shoreline, and over 1,300 miles of trails for hiking, biking, horseback riding, and environmental education. The Park District receives more than 25 million visits annually throughout Alameda and Contra Costa counties in the San Francisco Bay Area.

Allen D. Payton contributed to this report.

Help Contra Costa beat Solano County to win the Big Apple trophy

By Contra Costa County District 3 Supervisor Diane Burgis

I would like to take a moment to wish you and your family a Happy Thanksgiving and invite you to participate in the annual Counties Care Holiday Food Fight to raise money for the Food Bank of Contra Costa and Solano. 

Once again, in 2023 Contra Costa and Solano counties will compete to raise funds for the Food Bank. This friendly competition, spearheaded by individual county departments, has raised nearly $2.7 million since 2003. The county that raises the most funds per employee will win the Big Apple trophy. The trophy and bragging rights pass back and forth annually, but the real winners are the recipients of the funds you raise: those that go hungry in our communities. (See results from past years’ Food Fights)

Please help raise funds for the Food Bank of Contra Costa and Solano with a donation today. Every dollar donated provides enough food to make two meals. Of every dollar donated, 97 cents go toward food programs.

Counties Care Holiday Food Fight Challenge!

WHO: Contra Costa and Solano County Residents

WHAT: Counties Care Holiday Food Fight 2023

WHEN: Now through December 31, 2023

The Food Bank of Contra Costa and Solano serves one in four residents and provides more than 3,400,000 meals monthly. While the Food Bank feeds our neighbors seven days a week, the need is felt even more around Thanksgiving, when a nourishing meal is the centerpiece of the day. 

As you plan your Thanksgiving menu, I hope you’ll consider our neighbors and donate to make the 2023 Holiday Food Fight a success.

To donate, click the link below or mail a check to our office. 

https://give.foodbankccs.org/team/326115

Please make checks payable to: Food Bank of Contra Costa and Solano

Mail to: Office of Supervisor Diane Burgis

Contra Costa County 

3361 Walnut Blvd. Ste 140, Brentwood, CA 94513

Allen D. Payton contributed to this report.

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.

Russell Watts retiring Dec. 31

Nov. 22 deadline to apply

Contra Costa County is recruiting for the next Treasurer-Tax Collector following the announcement of Russell Watts’ retirement, effective Dec. 31, 2023.

The current term for the elected office expires on Jan. 4, 2027. Government Code section 25304 requires that the Board of Supervisors appoint someone to fill the vacancy for the remainder of the term.

“We appreciate Rusty’s service over the past 21 years and wish him well in this next chapter,” said Board Chair District I Supervisor John Gioia.

The Treasurer-Tax Collector is required to be a registered voter of Contra Costa County at the time of appointment by the Board of Supervisors. To qualify for appointment to the office, a person must also meet at least one of the four criteria:

• The person has served in a senior financial management position in a county, city, or other public agency dealing with similar financial responsibilities for a continuous period of not less than three years, including, but not limited to, treasurer, tax collector, auditor, auditor-controller, or the chief deputy or an assistant in those offices.

• The person possesses a valid baccalaureate, masters, or doctoral degree from an accredited college or university in any of the following major fields of study: business administration, public administration, economics, finance, accounting, or a related field, with a minimum of 16 college semester units, or their equivalent, in accounting, auditing, or finance.

• The person possesses a valid certificate issued by the California Board of Accountancy pursuant to Chapter 1 (commencing with Section 5000) of Division 3 of the Business and Professions Code, showing that person to be, and a permit authorizing that person to practice as, a certified public accountant.

• The person possesses a valid charter issued by the Institute of Chartered Financial Analysts showing the person to be designated a Chartered Financial Analyst, with a minimum of 16 college semester units, or their equivalent, in accounting, auditing, or finance.

Contra Costa County is committed to racial equity, inclusion, and social justice within all county operations and is dedicated to the advancement of key initiatives and efforts in support of this essential mission. The ideal candidate will also possess a value system that engenders trust and confidence and embodies a commitment to racial equity, diversity, and inclusion.

Watts, who is leaving office to spend more time with family, served as the elected-Treasurer-Tax Collector for 13 years and as the Chief Deputy Treasurer-Tax Collector eight years prior.

“It has been a privilege and an honor to serve the residents of Contra Costa County,” Watts said. “I have met and worked with many wonderful people during my tenure and am very grateful for their support and trust.”

To apply visit https://www.contracosta.ca.gov/CivicAlerts.aspx?AID=4563

Please send the completed application and supplemental questionnaire to jobs@hrd.cccounty.us.

Contra Costa County
Summary -Treasurer-Tax Collector Appointment Timeline
Date	Description/Action
10/27/2023	Recruitment commences
11/22/2023	Recruitment closes (4 weeks)
11/27/2023	Applications Disclosed/Special Meeting Agenda Published for 11/30/23
11/30/2023	Special Meeting: Board of Supervisors Consider Applicants for Interview
12/12/2023	Regular Meeting: Board of Supervisors Interview Applicants and Makes Appointment
12/14/2023	Special Meeting: Continuation of Interviews (if needed)