Department of Finance Outlook. It’s no surprise that the Department of Finance (DOF) has been releasing information surrounding the state budget that cautions spending and reports a deficit moving forward. The latest fiscal update from May 7 stated, “California began 2020 with a strong bill of financial health-a strong economy, historic reserves, and a structurally balanced budget” but that “the rapid onset of the COVID-19 pandemic has had an immediate and severe impact on the global, national, and state economies” and that “the May Revision economic forecast reflects that COVID-19 impacts will continue to cause economic losses in 2020.” CAPS expects that as we approach the deadline for the May Budget Revise, we will see cuts to spending not related to COVID-19 measures. However, the DOF did recognize that California has been preparing for a “rainy day” by stating: “While the COVID-19 Recession is causing an unprecedented loss of jobs and income, the projected deficit as a percent of General Fund spending is modestly smaller than the budget deficits faced by the state in 2003 and in 2009. This is due largely to the state’s prudent fiscal management and strong economic recovery since 2011.”
Last month, Governor Newsom officially requested billions of dollars in additional federal assistance to cover increased COVID-19 related costs. But with the May Budget Revision release date scheduled for May 14, it is unlikely that any additional federal assistance will have arrived to impact the 2020-2021 state budget. Initially, the Administration had signaled that the May Budget Revision would propose a “workload” budget which would roll over the current year spending authority with minor adjustments where necessary.
Now, with the release of the DOF Fiscal Update, it becomes more likely that the Administration will need to propose budget cuts or adjustments next week to meet California’s constitutional requirement that the Legislature adopt a balanced state budget by June 15. To read the entire Fiscal Update from May 7, visit the DOF Website here.
The Workplace Upon Return to Work. CAPS has been advocating for members’ safety in the workplace since the union was formed, and our efforts have continued amidst these trying times. CAPS has advocated at all levels of state government that departments implement workplace protections to ensure that, upon their eventual return to work, CAPS members can maintain social distancing. Actions CAPS has taken and continues to take include: urging that telework programs be allowed to continue, that departments adhere to and encourage Alternate Work Week Schedules, and the modification of workplace equipment upon members’ return. The State’s COVID-19 webpage now includes guidance for workplaces such as in office spaces and the life sciences. As California slowly transitions back to work, CAPS will continue to ensure departments are accountable for employee’s safety. If you encounter a safety issue at your worksite, follow appropriate safety protocols, then contact CAPS (caps@capsscientists.org).
News Briefs
Former Army base at Fort Ord recognized with EPA Superfund site reuse award – The U.S. Environmental Protection Agency announced this week that Fort Ord has received the National Federal Facility Excellence in Site Reuse award recognizing the transformation of the former Army base into a thriving environmental, economic and community asset. The Army’s base redevelopment executive issued a press release recognizing “the continued collaboration and cooperation among the EPA, the California Department of Toxic Substances Control, the California Regional Water Quality Control Board, and the Fort Ord Reuse Authority which have made the successful redevelopment and reuse of the former Fort Ord possible.”
How the coronavirus is hampering enforcement of California’s pollution rules – The California Environmental Protection Agency said several boards and departments have temporarily cut field inspections because of coronavirus restrictions, including the Air Resources Board, the Department of Toxic Substances Control and the Department of Pesticide Regulation.
California Oil Producers Fighting Newsom Proposal for Stronger Industry Oversight – A leading energy industry group is calling on Gov. Gavin Newsom’s administration to hold off on efforts to strengthen oversight of oil and gas production in order to soften the pain fossil fuel companies are experiencing during the coronavirus pandemic.