CDA District Digest: January 2024

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January 2024

BOARD OF DIRECTORS

President

Austin Metoyer

Downtown Long Beach Alliance

Immediate Past President

Rena Masten Leddy, LPM

Urban Place Consulting Group

1stVice

President

Chloe Shipp

San Jose Downtown Association

2nd Vice President

Suzanne Holley

Downtown Center BID (LA)

Secretary

Andrew Robinson

The East Cut

Treasurer

John Caner

Downtown Berkeley Association

Membership Chair

Kathy Hemmenway

Walnut Creek Downtown

Legislative Chair

Liz Lorand Williams

Downtown Sacramento Partnership

Marketing Chair

Mackenzie Carter, LPM

The Hollywood Partnership

At-Large Directors

Shifra de Benedictis-Kessner

City of Oakland

Kevin Clerici

Downtown Ventura Partners

Josh Coyne

Downtown San Diego Partnership

Savlan Hauser

Jack London District Oakland

Christian Martin

SOMA West CBD

Jameson Parker

Midtown Association Sacramento

Anthony Rodriguez

LA Fashion District

Marisa Rodriguez

Union Square Alliance

Andrew Thomas

Downtown Santa Monica, Inc.

Brian Wallach

Pasadena Playhouse District

IN THE NEWS

The Mayors Who Aren’t Burning Out

City Lab

Local politics in a polarized era can be stressful. To survive, some municipal leaders have managed to mix pragmatism and wonkiness with a flair for creativity — and a thick skin.

San Diego's first affordable housing project on church land under construction

KPBS

Construction crews are beginning to pour the foundation on an affordable housing project in Logan Heights — the first project to emerge from San Diego's budding "Yes in God's Backyard" (YIGBY) movement.

America’s Biggest Universal Basic Mobility Experiment Is Taking Place in L.A.

NextCity

A “mobility wallet” pilot program is giving South L.A. residents $150 per month to spend on a menu of transportation options. And early data is in.

How New California Housing Laws Will Impact Renters

Planetizen

Laws going into effect this year will affect regulations around security deposits, credit checks, and even e-scooters.

Why Transit Reliability is Difficult in Midsized Cities

Streetsblog USA

A lot of mid-sized cities struggle to keep the buses and trains running on time — or even know when they're way off schedule. Advocates in Baltimore are exploring why, and how to fix it.

Biden administration steps in on Caltrans’ highway expansion in Fresno

Fresnoland

In America’s most polluted air basin, EPA set to take a fresh look at air quality impacts of warehouse-focused highway expansion.

California turns to artificial intelligence to make roadways safer

CBS Sacramento

A push is underway in California to use artificial intelligence (AI) to keep people safer on state roads.

Climate news to watch in 2024

Yale Climate Connections

The world made major progress on climate change in 2023. Here’s what could come next.

Do you have your ear to the ground when it comes to the latest downtown news in your region? To submit news to be considered for inclusion in the newsletter, please contact us.

Letter from President of the Board, Austin Metoyer

I am deeply honored and excited to address you as the newly elected President of the California Downtown Association.

As I begin my new role as President, I want to express my deep appreciation for Rena Leddy's exceptional leadership as our outgoing President. During Rena's two-year tenure as Board President, she led the successful passage of AB 2890, which addressed bid formation and renewal initiatives, bolstered our financial health, and expanded the West Coast Urban District Forum's reach. Her dedication has been instrumental in advancing our mission to support and empower place management organizations. I also appreciate Rena's generosity and time as I transition into this role. Rena's commitment to the place management industry should inspire us as we continue our work for vibrant communities.

As President, I will focus on collaboration, innovation, and inclusivity. Together, we will tackle the challenges that lie ahead and seize the opportunities that come our way. I am a strong advocate for the power of partnerships, and I believe that by working together, we can achieve remarkable outcomes for our districts and the people who use them.

As the Board kicks off 2024, we've taken significant steps to codify and formalize a set of strategic priorities that we believe will not only guide our organization but also strengthen our collective efforts in advancing the mission of the CDA. These priorities have been carefully considered to align with our shared goals and values, and we are excited to share them with you.

Responding to the Moment: We must remain agile and responsive to emerging issues and opportunities in today's rapidly changing world. CDA recognizes the importance of being able to address immediate concerns and challenges that affect our districts.
Community Building: Building strong and inclusive communities and place management organizations is at the heart of our mission. CDA's commitment to community building will be felt through our ability to help foster connections between organizations and build capacity for our member organizations to thrive.
Coalition Building: Collaboration is a cornerstone of our successes in the advocacy arena. We recognize the power of partnerships and the importance of building coalitions with like-minded organizations and stakeholders. By leveraging those internal and external relationships, CDA has been able to punch above our weight and take on exciting and challenging initiatives around mental health reform (Prop 1/Care Courts), bid operations (AB2890), and economic vitality (Prop 47 Reform). By actively seeking alliances and partnerships, we amplify our collective voice, leverage resources, and maximize our impact.
Call to Action: We must mobilize our members and supporters to effect positive change. The organization will continue to rise to the call and articulate a clear rallying point for our members to engage in our advocacy efforts.

By codifying these priorities, we are committing to creating meaningful opportunities for all members to be part of our advocacy initiatives. Whether a BID, CBD, a chamber, a municipality, or a small or large organization, CDA stands ready to advocate on your behalf at the state level and fight for issues that are important to our dynamic districts, provide technical assistance and networking opportunities needed to help support our growing profession.

As we move forward, let us always remember our core purpose. Together, we are the champions of our districts, working tirelessly to ensure that they remain vibrant, inviting, and resilient. Our commitment to legislative support and advocacy is unwavering, and it is through our collaborative action we can achieve our shared vision for the future of our districts and place management profession.

In the coming months, I look forward to engaging with you all through virtual meetings, regional gatherings, or the upcoming West Coast Urban District Forum conference in San Diego. As a united and dedicated group, I am confident we can make a lasting impact across the state.

Thank you for being part of the California Downtown Association and for your dedication to the vital mission. Together, let's embark on this journey to create more vital, more prosperous spaces for people to enjoy across California.

Austin Metoyer

CDA President

President & CEO, Downtown Long Beach Alliance

austinm@dlba.org

Inspire, Connect and Learn at #WCUDF24

Join the Downtown San Diego Partnership, California Downtown Association (CDA) and IDA for the 2024 West Coast Urban District Forum. Pillars of Resiliency will address how residents, businesses and tourism continue to support the changing urban economy.

Explore the event webpage and check out the recently released plenary speaker bios, including Phoebe Cornog, Founder of Pandr Design Co., a design studio specializing in custom murals, Mia Fiorella, Director of Experiences & Activations at La Jolla Playhouse, and San Diego County District Attorney Summer Stephan.

Government Affairs Report by Jason Bryant

Governor’s 2024-2025 January Budget

On January 10th, Governor Newsom unveiled a $291.5 billion budget proposal for the upcoming fiscal year, 2024-2025. However, Newsom cited a much lower than expected budget deficit amount than the Legislative Analyst's Office has been reporting ($37.86 billion deficit compared to the LAO’s $68 billion figure).

The budget preserves a number of the Administration’s priority program investments that were enacted in the last few years, including Medi-Cal expansion for undocumented immigrants and homelessness grants for local governments. However, it cuts $8.5 billion from a variety of funds, including reductions to climate change and housing programs and school facilities (with the note that bonds will be considered for November 2024 in this area). The budget also delays and defers more than $7 billion in funding for transit and intercity rail, early childhood education grants, clean energy and behavioral health housing. Despite these proposed cuts and delays, Newsom’s budget also withdraws $13 billion from the state’s reserves, which they had avoided in last year’s budget shortfall. However, just a reminder that the budget numbers will shift again by the time Newsom announces a revised plan in May, after Californians have filed their tax returns and state officials have a better idea of how much money will be available.

In his lengthy press release, the Governor mentioned a number of promises and proposed areas to focus funding this year, including addressing homelessness, mental health reform, public safety, maintaining economic stability, and career education / TK investments.

Highlights by Issue Areas

Below, we have included proposals of interest or significance in the Governor’s budget broken down by subject area. A link to each subject area is also included in the header of each section, if you need additional information.

Criminal Justice/Public Safety

Prison Closures - The Budget includes $9.6 million General Fund savings in 2024-25, increasing to $11.1 million ongoing, to reflect a reduction in administrative workload and positions associated with supporting the four prison closures.

Free Voice Calling Adjustments—An increase of $7.4 million one-time General Fund in 2023-24, and $8.2 million ongoing, which results in total funding of $32.6 million in 2023-24, and $36.7 million ongoing, to provide incarcerated individuals access to free voice calling, consistent with Chapter 827, Statutes of 2022 (SB 1008). While rates are unchanged, the number of minutes increased compared to spring 2023 projections.

DJJ Funding Changes - SB 823 required the Governor and the Legislature to work with stakeholders to establish a new funding distribution methodology for JJRBG by January 10, 2024. As part of the Budget, the Administration is proposing statutory changes to maintain the current funding formula specified in SB 823 for 2024-25 to: (1) provide more time for the Administration to engage with the Legislature and stakeholders on the best approach for achieving a refined funding allocation methodology that will lead to improved outcomes for realigned youth, and (2) help create greater certainty for counties regarding their allocation amounts for 2024-25, which is particularly important given the current fiscal climate.

Combating Organized Retail Theft and Other Crimes—$373.5 million General Fund over four years to bolster local law enforcement efforts to address retail theft and other crimes. This includes ongoing resources to expand and make permanent California Highway Patrol's retail theft task forces as well as the Department of Justice's Special Operations Unit and other task force and prosecution teams. These statewide enforcement efforts combat violent career criminals, gangs, and organized crime groups by using electronic surveillance and advanced investigative techniques.

California Violence Intervention and Prevention (Cal VIP) Grant Program— $200 million General Fund was provided over three years to expand violence prevention efforts within communities that focus on those at the highest risk of violence.

Gun Violence Restraining Orders—$15 million one-time General Fund across 2021-22 ($11 million) and 2023-24 ($4 million) to facilitate education and training efforts related to gun violence restraining orders, including a public awareness campaign, grants to domestic violence groups to conduct outreach, and gun violence restraining order trainings to entities statewide.

Drug Interdiction Continuation—An increase of $30 million General Fund ($15 million in 2024-25 and $15 million in 2025-26) to further expand the Military Department’s existing drug interdiction efforts to prevent drug trafficking by transnational criminal organizations throughout the state, with a particular focus on assisting federal, state, local, and tribal law enforcement agencies in combating fentanyl.

Post Release Community Supervision—The Post Release Community Supervision Act of 2011 authorized CDCR to release certain incarcerated individuals to county supervision. The state provides funding to those counties. The Budget estimates $4.4 million General Fund will be allocated to counties for this purpose in 2024-25.

Community Corrections Performance Incentive Grant—The Community Corrections Performance Incentive Grant, Chapter 608, Statutes of 2009 (SB 678), was created to provide incentives for counties to reduce the number of felony probationers sent to state prison. The Budget includes $113.6 million General Fund for county probation departments. In the prior three years, funding for this item was held constant due to the COVID-19 Pandemic’s effect on probation populations, law enforcement practices, and court processes. The Budget reverts to the previous methodology for calculating incentive payments to the counties beginning in 2024-25, as specified in existing statute and because recent data suggest the number of felony probationers sent to state prison is normalizing to pre-pandemic levels.

Public Safety Radio Modernization to Support Equal Access to 9-1-1 Services—An increase of $6.4 million State Emergency Telephone Number Account funds an additional 12 positions to continue implementation of the California Radio Interoperable System, a statewide public safety radio system that dramatically improves interoperability for state, local, and federal public safety responders.

Health and Human Services

Expanding Medi-Cal to All Income-Eligible Californians—The Budget maintains $1.4 billion ($1.2 billion General Fund) in 2023-24, $3.4 billion ($2.9 billion General Fund) in 2024-25, and approximately $3.7 billion ($3.2 billion General Fund) ongoing, inclusive of In-Home Supportive Services (IHSS) costs, to expand full-scope Medi-Cal eligibility to income-eligible adults aged 26 to 49 regardless of immigration status as of January 1, 2024.

Behavioral Health Continuum—The Budget maintains over $8 billion total funds across various Health and Human Services departments to expand the continuum of behavioral health treatment and infrastructure capacity and transform the system for providing behavioral health services to children and youth.

Behavioral Health Community-Based Organized Networks of Equitable Care and Treatment (BH-CONNECT) Demonstration—The Budget maintains $7.6 billion ($350.4 million General Fund, $87.5 million Mental Health Services Fund, $2.6 billion Medi-Cal County Behavioral Health Fund, and $4.6 billion federal funds) through the term of the waiver, for the Department of Health Care Services (DHCS) and the Department of Social Services (DSS) to implement the BH-CONNECT Demonstration, effective January 1, 2025.

California Advancing and Innovating Medi-Cal (CalAIM)—The Budget maintains approximately $2.4 billion ($811.1 million General Fund) in 2024-25 to continue transforming the health care delivery system through CalAIM at DHCS. The Budget also maintains $24.7 million ($8.6 million General Fund) in 2025-26 increasing to $197.9 million ($69.3 million General Fund) at full implementation to allow up to six months of rent or temporary housing to eligible individuals experiencing homelessness or at risk of homelessness transitioning out of institutional care, a correctional facility, the child welfare system, or other transitional housing settings. Counties will also have the option to implement this benefit as part of the BH-CONNECT Demonstration.

Child Care and Development—A multi year plan was initiated as part of the 2021 Budget Act to expand access to subsidized child care slots. The Budget maintains this commitment, and includes $2.1 billion for the DSS to fund roughly 146,000 new subsidized child care slots expected to be filled by 2024-25, working towards the goal of creating over 200,000 new slots by 2026-27.

Children and Youth Behavioral Health Initiative Wellness Coaches—The Budget includes $9.5 million ($4.1 million General Fund) in 2024-25 increasing annually to $78 million ($33.8 million General Fund) in 2027-28 to establish the wellness coach benefit in Medi-Cal effective January 1, 2025. Wellness coaches will primarily serve children and youth and operate as part of a care team in school-linked settings and across the Medi-Cal behavioral health delivery system.

Behavioral Health Continuum Infrastructure Program—A delay of $140.4 million General Fund from 2024-25 to 2025-26, for a total of $380.7 million for the final round of grants in 2025-26. The Budget maintains a $300 million General Fund in 2023-24 and $239.6 million General Fund in 2024-25.

Behavioral Health Bridge Housing—Due to lower-than-projected Mental Health Services Act revenues, the Budget proposes to shift $265 million from the Mental Health Services Fund appropriated in the 2023 Budget Act to the General Fund in 2024-25. In addition, the Budget delays the $235 million General Fund originally planned for 2024-25 to 2025-26. Despite the delays, the Budget maintains $1.5 billion for this program.
Clinic Workforce Stabilization Payments—A reversion of $14.9 million in unexpended General Fund from the one-time $70 million General Fund included in the 2022 Budget Act for the Clinic Workforce Stabilization and Retention Payment Program that was planned to be transferred to the Department of Health Care Access and Information for workforce development programs.

Child Welfare Services-California Automated Response and Engagement System (CWS-CARES) Project—The Budget includes $173.4 million ($88.1 million General Fund) in 2024-25 to support continued project development and implementation costs, and an additional $52 million ($26 million General Fund) in one-time provisional authority, of the CWS-CARES project. The CWS-CARES will replace the existing case management system to benefit state, local and tribal child welfare agencies and will align with state and federal requirements.

Foster Care Rate Reform—The Budget includes $12 million General Fund in 2024-25 to make automation changes for a reformed foster care payment structure, with full implementation anticipated as early as 2026-27. The new rate system for foster care placements will focus on the child’s individual level of needs and strengths, rather than the placement type.

Family Urgent Response System—A reduction of $30 million in 2024-25 and ongoing.

Bringing Families Home Program—The Budget delays $80 million General Fund for the Bringing Families Home to 2025-26.

Home Safe Program—The Budget delays $65 million General Fund for the Home Safe Program to 2025-26

Healthier at Home Pilot—A reversion of $11.9 million General Fund for the Healthier at Home Pilot program at the California Department of Aging.

Housing & Homelessness

Homelessness— The Budget maintains $3.4 billion General Fund in 2023-24 to continue the state’s efforts, as committed to in prior budgets.

Homeless Housing, Assistance and Prevention Program— The Budget maintains a total of $1.1 billion General Fund for HHAP 5 across 2023-24 and 2024-25 to provide local jurisdictions, including federally recognized tribal governments, with flexible funding to continue efforts to prevent and end homelessness in their communities. The Governor expressed interest in continuing to do the work to increase accountability.
Homekey— $2.8 billion
Encampment Clean Up Grants— $750 million

Housing Cuts—
Regional Early Action Planning Grants 2.0 (REAP 2.0)—A reversion of $300 million General Fund for REAP 2.0.

Multifamily Housing Program—A reversion of $250 million General Fund for the Multifamily Housing Program, which leaves $75 million in 2023-24 for this purpose.

Foreclosure Intervention Housing Preservation Program—A reduction of $247.5 million General Fund for the Foreclosure Intervention Housing Preservation Program over the next three years ($85 million in 2024-25, $100 million in 2025-26, and $62.5 million in 2026-27).

Infill Infrastructure Grant Program—A reversion of $200 million General Fund for the Infill Infrastructure Grant Program, which leaves $25 million in 2023-24 for this purpose.

CalHome Program—A reversion of $152.5 million General Fund for the CalHome Program.

Veteran Housing and Homelessness Prevention Program—A reversion of $50 million General Fund for the Veteran Housing and Homelessness Prevention Program.

Housing Navigators—A reduction of $13.7 million General Fund ongoing for Housing Navigators.REAP 2.0

Multifamily Seismic Retrofit Matching Funds—A reversion of $15 million General Fund for establishing the Seismic Retrofitting Program for Soft Story Multifamily Housing authorized in Chapter 48, Statutes of 2022 (SB 189).

Energy

The Budget maintains approximately $6.6 billion of the planned 2022 energy investments. In addition to the $944 million reduced in the 2023 Budget Act, the Budget includes $419 million in General Fund reductions, $144 million in fund shifts, and $505 million in delays across various energy-related programs. The Budget also maintains the proposed $1 billion for the Clean Energy Reliability Investment Plan with the remaining amount proposed over three years beginning in 2025-26.

Capacity Building Grants—A reversion of $20 million General Fund for the Capacity Building Grants Program at the California Public Utilities Commission (CPUC). The Budget maintains $10 million for this program.

Incentives for Long Duration Storage—A shift of $56.9 million General Fund to the GGRF in 2024-25 for the Long Duration Storage Program at the CEC. The Budget maintains $330 million for the program with this shift.

Hydrogen Grants—A reversion of $35 million General Fund for the Hydrogen Grant Program at the CEC. The Budget maintains $65 million to the CEC for this program.

Residential Solar and Storage—A delay of $200 million General Fund ($75 million in 2024-25 and $125 million in 2025-26) for the Residential Solar and Storage Program. Instead, $100 million in 2026-27 and $100 million in 2027-28 would be available. The Budget maintains the $630 million to the CPUC for this program.

Clean Energy Reliability Investment Plan (CERIP)—A delay of $400 million General Fund in 2024-25 and $400 million General Fund in 2025-26 for the CERIP. The Budget maintains the $1 billion for CERIP, which is consistent with SB 846 (Chapter 239, Statues of 2022) as follows: $100 million General Fund in 2023-2024, $100 million General Fund in 2025-26, $300 million General Fund in 2026-27, and $500 million General Fund in 2027-28.

Electric Homes—A reduction of $6.4 million General Fund in the California Electric Homes Program by the CEC.

Climate Change

The Budget proposes $6.7 billion of General Fund solutions in climate-related programs to achieve a balanced budget including: $2.9 billion in reductions; $1.9 billion in delays of expenditures to future years; $1.8 billion in shifts to other funds, primarily the Greenhouse Gas Reduction Fund (GGRF).

Regional Climate Resilience—A reversion of $25 million General Fund and a reduction of $50 million for the Regional Climate Resilience Program at the Office of Planning and Research. The Budget maintains $25 million previously allocated to this program.

Regional Climate Collaboratives—A reversion of $9.8 million General Fund for Regional Climate Collaboratives Program at the Strategic Growth Council within the Office of Planning and Research. The Budget maintains $10 million previously allocated to this program.

Climate Adaptation and Resilience Planning Grants—A reversion of $5 million General Fund for the Climate Adaptation and Resilience Planning Grants at the Office of Planning and Research. The Budget maintains $20 million previously allocated to this program.

Nature Based Solutions—The 2021 and 2022 Budget Acts committed $1.6 billion for nature-based solutions. The Budget maintains $1.4 billion of these investments over multiple years in various programs. The Budget includes $15 million in General Fund reductions across two programs.

Watershed Climate Resilience Programs—A reversion of $88.4 million General Fund and a reduction of $350 million over the next two years for various watershed climate resilience programs within the DWR and the Wildlife Conservation Board. The Budget maintains $56 million previously allocated to these programs.

Water Recycling—A reversion of $174.4 million General Fund and a delay of $100 million until 2025-26 for water recycling and groundwater cleanup. The Budget maintains $348 million previously allocated to this program.

Salton Sea— Includes $159.1 million in new investments to support flood protection, levee repair, and restoration of the Salton Sea.

Wildfire—The Budget maintains $2.7 billion of these investments over five years to advance critical investments in restoring forest and wildland health to continue to reduce the risk of catastrophic wildfires in the face of extreme climate conditions.

Per- and Polyfluoroalkyl Substances—A reversion of $71.6 million General Fund and reduction of $30 million in 2024-25 for Per-and Polyfluoroalkyl support. The Budget maintains $53 million previously allocated to this program.

Dam Safety—A reversion of $50 million General Fund for dam safety investments. The Budget maintains $50 million previously allocated to this program.

Sea Level Rise—A reversion of $220.9 million General Fund for Sea Level Rise activities. The Budget maintains $333.6 million previously allocated for this program.

Urban Greening—A shift of $23.8 million General Fund to the GGRF, which maintains $75 million over four years for the Urban Greening Program. Funding being shifted for the Program is delayed to 2024-25.

Goods Movement Workforce Training Facility—A delay of $40 million General Fund for a Goods Movement Workforce Training Facility in Southern California. The Budget includes a $20 million General Fund for this purpose in both 2025-26 and 2026-27. (See the Labor and Workforce Development Chapter for more information.)

Transportation/Infrastructure

The 2022 Budget Act included $13.8 billion for transportation programs and projects that align with the state’s climate goals. The Budget maintains $13.6 billion of these investments. The Budget includes $200 million in General Fund reductions, $791 million in fund shifts, and $3.1 billion in delays across various programs.

Active Transportation—A reduction of $200 million to the Active Transportation Program (ATP). This will leave the Active Transportation Program with $850 million in one-time funding. To ensure no impact to previously-awarded projects, the $200 million reduction will be backfilled from ATP funding that was anticipated to be available for allocation in future cycles.

Statewide, Regional, and Local Transit and Rail Projects-Competitive Grants—A shift of $529.7 million of General Fund expenditures to the GGRF.

Statewide, Regional, and Local Transit and Rail Projects-Formula Grants—A delay of $1 billion of formula Transit and Intercity Rail Capital Program funds from 2024-25 to 2025-26, leaving $1 billion for this program in 2024-25. Additionally, the Budget proposes to shift $261.4 million of the remaining $1 billion in 2024-25 from the General Fund to the GGRF. This fund shift will have no programmatic impact.

Zero Emission Vehicles (ZEV) —The Budget maintains $10 billion, extended over seven years, in investments to the state’s ZEV agenda—including targeted investments in disadvantaged and low-income communities by increasing access to the benefits of clean transportation and by continuing to decarbonize California’s transportation sector and improve public health.

Labor & Workforce Development

Apprenticeship Innovation Fund— delay of $40 million General Fund to 2025-26 and 2026-27 ($20 million each year) for the Apprenticeship Innovation Fund at the Department of Industrial Relations.

California Youth Leadership Program— delay of $25 million General Fund to 2025-26 for the California Youth Apprenticeship Program at the Department of Industrial Relations.

California Small Business COVID-19 Relief Grant Program— maintains multi-year commitment.

IBank’s Small Business Finance Center and the California Rebuilding Fund—

California Competes—The Budget includes a total of $60 million General Fund, comprised of $10 million in savings from 2023-24 and $50 million in new funding in 2024-25, to extend the California Competes grant program for one additional year

CA Jobs First Program—delay of $300 million General Fund for California Jobs First

West Coast Urban District 2024 Sponsorships

IDA and CDA are gearing up for WCUDF 2024 in San Diego. Do you know someone who should be there to share their product or service? Share the 2024 Forum Sponsorships.

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