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News for Nonprofits August 2009

 

NEWS FOR NONPROFITS connects nonprofits in the 11th Senate District of California with information and resources available from the State or other sources. Information provided is deemed relevant to the nonprofit sector and no endorsement is implied.

If you have questions about items in this newsletter, state legislation, or state agencies, please do not hesitate to contact Hema Sareen Mohan at (650) 688-6384 or .(JavaScript must be enabled to view this email address).


Contents



Budget Update

In mid-February the Legislature passed a package of budget measures that addressed what was then estimated to be a $41.4 billion deficit over the then remainder of the fiscal year (2008-09) and the next fiscal year (2009-10).

To close the gap, the budget package contained about $14.8 billion in cuts to a wide range of state-funded programs and services including education, health and human services, court administration, public transportation, and other areas.

The February package also contained about $12.5 billion in new revenue generated by a number of broad-based tax and fee increases, including a 1-cent sales tax increase, a .65% increase in the vehicle license fee (to 1.15% total), and a .25% income tax surcharge. These increases are currently set to expire by 2011.

Almost $6 billion of the February package depended on voter approval in the May 19, 2009 Special Election.  As you know, those propositions failed.  With the economy in further decline, the projected budget gap widened.

The Legislature convened the Budget Conference Committee, a bicameral committee charged with addressing the state’s budget gap, hearing public testimony and deliberating on specific policy areas.  The Legislature presented a package of bills to Governor Schwarzenegger aimed at closing the state’s growing budget shortfall.  The Governor signed that package on July 28, but used his line-item veto authority to cut expenditures by an additional $489 million.  A large portion of that cut came out of critical health and human services programs.

The budget agreement included several policy changes to human services programs such as the California Work Opportunity and Responsibility to Kids (CalWORKs) Program, In-Home Supportive Services (IHSS) Program, and the Supplemental Security Income/State Supplementary Payment (SSI/SSP) Program.

The Governor’s additional $50 million cut to funding for the Healthy Families Program increases the total Healthy Families reduction to more than $170 million in 2009-10.  To help partially close this shortfall, the First 5 California Children and Families Commission recently voted to provide up to $81.4 million of its own tobacco tax dollars to support enrollment of approximately 200,000 children from birth through age 5 in Healthy Families between August 13, 2009 and June 30, 2010.

The little that remained to help support, for example, community clinics ($25 million), AIDS/HIV programs ($52.1 million), and domestic violence shelters ($16.4 million) was eliminated with the Governor’s line-item vetoes.

The further cuts to safety net services was deeply disappointing and not consistent with the budget agreement that the Legislature delivered to the Governor.  Senate President pro Tem Darrell Steinberg (D-Sacramento) filed a lawsuit against Governor Schwarzenegger, calling into question the legality of these cuts.  The suit is not about an ideological divide, but rather an important assertion of the separation of powers.

Whether the Governor has the legal authority to line-item veto a budget revision, as opposed to an actual budget appropriation, is yet to be decided by the courts.  In the meantime, there is no question that the current budget is acutely painful for California’s most vulnerable populations.


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Legislative Update

In 2006, I authored Senate Bill (SB) 423 to allow energy companies to donate electricity to nonprofit organizations.  SB 423 was the result of a request from the Emergency Housing Consortium (EHC) Lifebuilders and the Second Harvest Food Bank of Santa Clara and San Mateo counties, who were offered in-kind gifts of energy from Calpine Corporation, but were unable to accept them because of a state law that prohibited receiving energy directly from the producer, known as "direct access."

Under SB 423, nonprofits still pay for all normal transmission costs for the energy, so as not to affect other ratepayers, but organizations receive the energy itself at no cost.  SB 423 was set to expire on January 1, 2010; so this year, I introduced SB 176, which extends this law for another five years.  Governor Schwarzenegger signed SB 176 into law on August 5th.

These are challenging times not only for those who rely on the critical services that nonprofit organizations provide, but also for those who provide them.  I’m gratified that we were able to lend a hand, and hope that nonprofit organizations will be able to benefit from this extension.


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Where you can find me in the District

During these difficult times, it’s more important than ever for elected officials to listen to the people they represent.  I’ve been holding my "sidewalk office hours" at farmers’ markets in cities throughout my district.  These events give the public and me a chance to interact in an informal atmosphere.  It’s been tremendously helpful to hear first-hand what folks have on their minds.  I have two "sidewalk office hours" remaining this year, as follows:

Saturday, August 29
10:30 AM - noon
Willow Glen Farmers’ Market
Behind the Garden Theatre at 1165 Lincoln Avenue

Sunday, August 30

10:00 - 11:30 AM
Campbell Farmers’ Market
Campbell Avenue between Central and Second

I will also be hosting five town hall meetings this fall.  A Town Hall is participatory democracy in its purest form.  Each event will be followed by a light reception where my staff and I will meet informally with the public. 

Wednesday, September 16

6:00 - 7:30 PM
Cupertino Community Hall
10350 Torre Avenue, Cupertino

Thursday, September 24
6:00 - 7:30 PM
Redwood City Council Chambers
1017 Middlefield Road, Redwood City

Saturday, September 26
10:30 AM - noon
Palo Alto City Hall Council Chambers
250 Hamilton Avenue, Palo Alto

Wednesday, October 14
6:00 - 7:30 PM
Campbell Library Community Room
77 Harrison Avenue, Campbell

Thursday, October 15
6:00 - 7:30 PM
Willow Glen Library Community Room
1157 Minnesota Avenue, San Jose


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Regional Announcements


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If you have questions about items in this newsletter, state legislation, or state agencies, please do not hesitate to contact Hema Sareen Mohan at (650) 688-6384 or .(JavaScript must be enabled to view this email address).

 


Related Pages: Nonprofit Newsletter