New study says a third of Californians in poverty

Nearly a third of California’s households “struggle each month to meet basic needs,” largely because of the state’s high cost of living, a new study by United Ways of California concludes.

The study relies on what the organization calls a “real cost measure” that goes well beyond the Census Bureau’s official poverty measure, which dates back to the early 1960s and pegs California’s rate at just half of what the United Ways study found.

The organization’s methodology is, however, similar in thrust to an alternative poverty measure that includes all forms of income and is adjusted for the cost of living. By that measure, nearly a quarter of California’s 39 million residents are living in poverty.

The United Ways study is centered on a household budget “composed of costs all families much address, such as food, housing, transportation, child care, out-of-pocket health expenses and taxes.”

While overall, by that method, 31 percent of California’s families “lack income adequate to meet their basic needs,” the rates vary widely by ethnic group and locale.

Over half of Latino families fall under the United Ways poverty measure, as well as 40 percent of black families. White families (20 percent) and Asian-American households 28 percent) are better off.

Geographically, poverty rates range from as high as 80 percent in inner city Los Angeles to as low as 9 percent in suburban Contra Costa County.

The study identified housing costs as the major factor in poverty, with struggling families spending over half of their incomes for shelter, with rents of two-bedroom housing units ranging from $584 a month in Modoc County to $1,905 in Marin, San Francisco and San Mateo counties.

Via: http://www.sacbee.com/news/politics-government/capitol-alert/article27256111.html

Optimistic on economy, California lawmakers OK $156.4-billion budget

Flush with optimism from California's resurgent economy, lawmakers approved a $156.4-billion state budget that expands preschool for children from poor families, increases welfare payments and provides critical funding for building the nation's first bullet train.

The state's financial turnaround has allowed the Democratic-led Legislature, with the blessing of Gov. Jerry Brown, to spend more freely just a few years after the recession prompted deep cuts to government services. And if tax receipts outpace expectations, the budget could send even more money to schools, public universities and local governments.

Lawmakers also are addressing more of California's lingering financial problems, stockpiling cash in a rainy-day fund and chipping away at pension costs.

"This is a much brighter day than what we've seen in years past," Senate Budget Chairman Mark Leno (D-San Francisco) said.

The spending plan — which includes a $108-billion general fund, $7.3 billion larger than last year's — now goes to Brown, who has until the end of the month to sign it. He can still veto items he dislikes.

The budget marks lawmakers' first major effort to combat global warming with revenue from the state cap-and-trade program, which charges fees on polluters when their carbon emissions exceed set limits.

Over the next several years, billions of dollars from those funds could flow to affordable housing, mass transit and environmental programs in a broad effort to get Californians to drive less and consume less energy.

A quarter of the money will be used for building the $68-billion bullet train, a decision that may draw legal challenges from groups that oppose the project and view it as an improper use of cap-and-trade revenue.

Republicans criticized the money for high-speed rail, and Senate Republican leader Bob Huff (R-Diamond Bar) called the budget a "missed opportunity."

"You're enacting policies to make California unnecessarily expensive, drive people into poverty and then propose new government programs to subsidize their life in poverty," Huff said.

Long-term costs for public employee retirements and overdue maintenance continue to weigh on state finances, and the budget starts tackling the $74-billion shortfall in the teacher pension fund. Under the plan, schools, teachers and the state will contribute more money to the fund in an attempt to close the gap over the next three decades.

The budget also deposits $1.6 billion into a reserve fund, a down payment on the state's effort to create a cushion for future economic downturns. Voters will have an opportunity in November to approve a constitutional amendment that would set aside money in the fund every year and help pay off the state's debt and long-term costs.

Despite the budget's increasing size, some cuts remain in place. Most notably, doctors who participate in Medi-Cal will continue receiving reduced payments even as hundreds of thousands of new patients enroll in the state's public healthcare program. Brown's resistance to increasing the payments disappointed lawmakers from both sides of the aisle, who fear fewer doctors will agree to care for Medi-Cal patients.

"The Senate wants to do this, the Assembly wants to do this and the governor understands we need to," Assembly Speaker Toni Atkins (D-San Diego) said. "So we are working as of tomorrow to figure out how soon we can do this. But we have to make sure we can pay for it."

Other programs for California's poor are being boosted. Beginning next April, welfare payments for a family of three in such high-cost counties as Los Angeles would increase to $704 per month, up from $670.

Over the next few years, preschool enrollment is expected to increase by 43,000 4-year-olds from low-income families. There's also more money for subsidized child care.

The budget already had been negotiated among Brown and top Democratic lawmakers before Sunday's vote, tamping down the drama in the Capitol. Still, controversy bubbled over a series of new policy proposals that were included in budget-related bills, sometimes after little public vetting.

For example, Brown has pushed new limits on how much money school districts can keep in their reserve accounts. Administration officials say the schools won't need to stockpile as much cash because the state will have its own rainy-day fund, but angry district officials called the proposal a ploy by the powerful teachers union to make more money available while negotiating contracts.

The California Teachers Assn. spent $4.7 million to help elect Brown in 2010 and donated nearly $290,000 to lawmakers, mostly Democrats, for this year's campaigns.

Lawmakers from both parties criticized the governor for inserting the proposal late in the budget process, but Democrats ensured the bill passed.

Another measure approved by the Legislature would modify California's new rules for granting driver's licenses to immigrants here without documentation, eliminating the requirement for applicants to submit affidavits saying they cannot prove legal residency.

Ronald Coleman, a lobbyist for the California Immigrant Policy Center, said the change would provide "peace of mind" that applying for a license won't increase the risk of deportation for immigrants who are here without those papers.

A separate budget-related bill, also approved Sunday, would remove the ban on drug felons receiving food stamps and welfare payments. Democrats say the measure would help former inmates reintegrate into society, but Republicans were critical.

"In what universe does it make sense to give cash benefit cards to drug users?" Huff said.

More budget bills have yet to be considered by the Legislature. Democrats are angling to pass two new taxes, on fireworks and insurance. The levy on fireworks — 10 cents per pound, to be paid by distributors — is intended to finance the safe destruction of illegal pyrotechnics. The other tax — 15 cents per insurance policy for residential and commercial renters — would fund earthquake research.

via: http://www.latimes.com/local/la-me-pol-state-budget-20140616-story.html

SB 391 Advances Further Than Any Other CA Housing Trust Fund Bill

From Campaign Co-Chairs Shamus Roller and Ray Pearl

On behalf of SB 391's co-sponsors -- Housing California and the California Housing Consortium -- we would like to congratulate all of you on an amazing job advocating for homes and jobs for Californians. To date, the California Homes and Jobs Act (SB 391) has advanced further than any bill to fund the state housing trust fund since the trust fund was permanently established in 1988.  Given the recent suspension of three Senators who voted yes on SB 391 (and whose votes would be needed again to approve amendments made in the Assembly), SB 391 is unlikely to advance this year in its current form.  While this news is disappointing, we remain strongly positioned to build upon our successes from this year and come back to win an ongoing source of state investment in homes and jobs. Even if we are successful with some of the exciting proposals currently in the Legislature (see below), California needs a statewide, flexible source of funding like SB 391 would provide.       Video Message to SB 391 Supporters from Senator Mark DeSaulnier The author of SB 391, Senator Mark DeSaulnier, recorded this special message for all of you who dedicated time and energy to this important campaign, reinforcing that you've done a fantastic job and our work is not over. Click here to watch Senator DeSaulnier's video.

Steinberg plan would dedicate California cap-and-trade dollars to housing, transit

In an effort to more closely manage how California spends revenue from its fledgling cap-and-trade program, Senate President Pro Tem Darrell Steinberg, D-Sacramento, on Monday unveiled a plan to dedicate ongoing money to affordable housing, mass transit and high-speed rail.

"National and international experts say that the climate problem grows worse, that we have no time to sit back and wait and think about an investment strategy year-to-year or just short-term. Now is the time to grab the moment and create these permanent sources," Steinberg said, adding that his plan would avoid an annual legislative fight over "who's in the front of the line, where is the need seemingly the greatest."

The proposal differs from Steinberg's previous proposal to change the state's system for curtailing carbon emissions. That plan, which the Democratic leader unveiled in February, would have imposed a gasoline tax rather than have industry purchase allowances for greenhouse gases emitted from "non-stationary fuels," a category that includes gas sold at the pump.

Now Steinberg has abandoned that change, shifting his attention from how California prices greenhouse gases to how the state allows levies on carbon emitters to be used. His new plan focuses on funding affordable housing, public transportation projects and the state's divisive high-speed rail project.

The gas tax plan was hit from the left and right. On Monday, by contrast, Steinberg spoke amid a phalanx of backers, including groups representing local government, (the League of California Cities) labor (the State Building and Construction Trades Council of California) and environmental (the Natural Resources Defense Council.)

"We stoked a debate a couple months ago, and a lot of consternation and controversy, and I understand it. But now many of us stand together," Steinberg said.

Under AB 32, the 2006 law that created California's cap-and-trade program, industry must purchase permits for generating the type of emissions blamed for global climate change. After six auctions, the program has generated $663 million for the state so far, according to the California Air Resources Board. Steinberg's office projects the permits could soon bring in $3 billion to $5 billion a year.
Current law dictates that the revenue will flow into a Greenhouse Gas Reduction Fund. From there, entities like local governments and transit systems can apply for some of the proceeds by explaining how they will use the money to reduce overall emissions. One quarter of the money must go to disadvantaged communities, an acknowledgment that some of California's poorest places are choking on poor air quality.

Housing and public transportation sit at the center of Steinberg's proposal. Forty percent of the cap-and-trade revenue would go to affordable housing, including communities built around transit options; 30 percent would subsidize transit projects and 10 percent would fund basic transportation infrastructure like road and highway maintenance, with all three administered through competitive grants.

"Permanent sources of funding for mass transit and affordable housing are key if we are committed to long-term change," Steinberg said on Monday, noting that the two areas "face a catastrophic funding crisis in California" after years of cutbacks.
In addition to those outlays, $200 million a year would go to water efficiency projects, to fuel-related outlays that include rebates on monthly fuel bills, and to accommodating the use of electric vehicles.
California's proposed bullet train would get 20 percent of the money, channeled through a continuous appropriation that would not require year-to-year approval by the Legislature.

Already, Gov. Jerry Brown's has stirred controversy by proposing in his budget for this year spending $250 million from emissions permit sales to fund his financially precarious high-speed rail project, whose funding plan faces legal uncertainty. Some environmentalists have called high-speed rail an inappropriate use of the carbon auction funds.

But Steinberg's blueprint embraces high-speed rail as a tool for reducing emissions — provided, Steinberg said, it is one element of a larger strategy.

"I understand that high-speed rail is controversial," Steinberg said. "If it were the only thing that we were talking about or the only thing on the table I think that would be problematic. I think this is a better approach."

PHOTO: The union oil company refinery in Rodeo, Tuesday, December 17, 2002. The Sacramento Bee Michael A. Jones.