ARTICLE
At 1:29 am on Tuesday morning (an hour and half after the predetermined legislative deadline) California’s Legislature left much undone when it adjourned for the year, exposing the state’s weaknesses. When the Legislature reconvened in January, the stage was seemingly set for a year of sweeping action on California’s most vexing political issues, such as a chronic housing shortage, homelessness and an embarrassingly high poverty rate and other pressing issues that amount to political gains or losses come election time. If you follow these eNews postings you know the Chamber is very selective in taking stands on state legislation and only those issues that have a positive or negative impact on businesses and our members. We stick to our core issues — economic vitality, education of our workforce, housing, transportation, and safe and clean water supply. All of these core issues can be addressed at the city and county level. Yet, when local government fails to act because of budget constraints, limited political support or long standing policy that leans towards local control, the state legislature, the Governor or statewide ballot initiatives imposed by the Legislature or special interest groups move in with their authority. As 2020 started with a roar of optimism, a flush bank account, and the California legislature controlled by the Democrats, a clear path to more government funded programs seemed evident. The Democrats enjoyed overwhelming majorities in both legislative houses, Governor Gavin Newsom, was fond of pursuing “big hairy, audacious goals” in contrast with cautious predecessor Jerry Brown, and the state’s roaring economy was pouring billions of extra dollars into the state treasury. However, the most telling fact about the 2020 legislative session, which drew to a pitiful close Monday night, is the list of issues that either didn’t get addressed or received just token attention, including those stemming from more recent traumatic events. The COVID-19 pandemic, the deep economic recession it spawned, terribly destructive wildfires and the furor over the suffocation death of George Floyd changed the political narrative in mid-session. However, the Legislature didn’t respond to any immediate issue any more satisfactorily than it did to older issues. After COVID-19 hit us with a brick to the head in March, the Legislature needed to take a two-month hiatus to Shelter in Place. That lead Governor Newsom to single handily manage the emergency. Because we were, and still are, in unprecedented choppy waters, it is not fair to call the Governor’s action on COVID-19 inadequate. We are not in a 100 meter sprint race but rather a long, long marathon — most likely for another 8 to 12 months before some normalcy will return. When state lawmakers returned to Sacramento in mid-summer, they did not fully restore their usual legislative gamesmanship. They fell into a defensive mode, adopting stop-gap measures such as a debt-heavy state budget in June and a temporary, partial renter relief bill on the last night of the session. They were tempered in their legislative approach. Who could blame them when no one sees a clear path forward? There were a couple of suggested pieces of legislation proposed, such as a $100 billion economic stimulus package, raising income taxes on the wealthiest Californians, imposing a tax on their wealth, overhauling the economics of rental housing and home ownership, ending single-family zoning to allow more multi-family housing, and stripping violent cops of their legal status. Some were justified, such as taking away the certification of bad cops, and some were unworkable, such as a wealth tax. But all were shunted aside. The result at the end of the session now turns on the outcome of the November election and hope that former Vice President Joe Biden will unseat Republican President Donald Trump. The logic of that tactic is a more friendlier administration will provide California with many billions of dollars to solve our economic problems and the billions of federal dollars used to fight the pandemic and the wildfires. One example is the Rental Relief legislation passed in the last minutes of the session and signed by the Governor. It protects tenants who can show that they lost income due to COVID-19’s economic shutdown from eviction, as long as they pay at least 25% of their rent. But unpaid rent will still accumulate, and evictions could resume early next year. As legislators debated the bill, they expressed hope that a new White House administration would offer new cash relief to the unemployed, allowing them to fully pay their rents. The question for Californians: Is there another option if the former vice president doesn’t win in November? There appears to be no Plan B. Will the working relationship between California and a Trump Administration improve? How will the Governor and the Legislature handle a state budget leaking red ink or a housing shortage that pandemic and wildfires has worsened? Will the Governor call for a special legislative session as the short stop-gap solution? There are nearly three million unemployed workers and their families that are dependent upon state and federal support, not to mention the 1,000 of folks who lost homes to the wildfires. As we limp into the last two quarters of 2020, the once mighty California, with the 5th largest economy in the world is suddenly not the globally powerful, semi-independent nation-state that we have proudly claimed. COVID— 19 and the wildfires have exposed California’s limitations both economically and politically. We have been down this road before, perhaps not in such an unprecedented manner, but the resiliency of Californians can and will make the difference. Stay Strong California, Stay Stronger Santa Cruz County!
At 1:29 am on Tuesday morning (an hour and half after the predetermined legislative deadline) California’s Legislature left much undone when it adjourned for the year, exposing the state’s weaknesses.
When the Legislature reconvened in January, the stage was seemingly set for a year of sweeping action on California’s most vexing political issues, such as a chronic housing shortage, homelessness and an embarrassingly high poverty rate and other pressing issues that amount to political gains or losses come election time.
If you follow these eNews postings you know the Chamber is very selective in taking stands on state legislation and only those issues that have a positive or negative impact on businesses and our members. We stick to our core issues — economic vitality, education of our workforce, housing, transportation, and safe and clean water supply. All of these core issues can be addressed at the city and county level.
Yet, when local government fails to act because of budget constraints, limited political support or long standing policy that leans towards local control, the state legislature, the Governor or statewide ballot initiatives imposed by the Legislature or special interest groups move in with their authority.
As 2020 started with a roar of optimism, a flush bank account, and the California legislature controlled by the Democrats, a clear path to more government funded programs seemed evident. The Democrats enjoyed overwhelming majorities in both legislative houses, Governor Gavin Newsom, was fond of pursuing “big hairy, audacious goals” in contrast with cautious predecessor Jerry Brown, and the state’s roaring economy was pouring billions of extra dollars into the state treasury.
However, the most telling fact about the 2020 legislative session, which drew to a pitiful close Monday night, is the list of issues that either didn’t get addressed or received just token attention, including those stemming from more recent traumatic events.
The COVID-19 pandemic, the deep economic recession it spawned, terribly destructive wildfires and the furor over the suffocation death of George Floyd changed the political narrative in mid-session. However, the Legislature didn’t respond to any immediate issue any more satisfactorily than it did to older issues.
After COVID-19 hit us with a brick to the head in March, the Legislature needed to take a two-month hiatus to Shelter in Place. That lead Governor Newsom to single handily manage the emergency. Because we were, and still are, in unprecedented choppy waters, it is not fair to call the Governor’s action on COVID-19 inadequate. We are not in a 100 meter sprint race but rather a long, long marathon — most likely for another 8 to 12 months before some normalcy will return.
When state lawmakers returned to Sacramento in mid-summer, they did not fully restore their usual legislative gamesmanship. They fell into a defensive mode, adopting stop-gap measures such as a debt-heavy state budget in June and a temporary, partial renter relief bill on the last night of the session. They were tempered in their legislative approach. Who could blame them when no one sees a clear path forward?
There were a couple of suggested pieces of legislation proposed, such as a $100 billion economic stimulus package, raising income taxes on the wealthiest Californians, imposing a tax on their wealth, overhauling the economics of rental housing and home ownership, ending single-family zoning to allow more multi-family housing, and stripping violent cops of their legal status.
Some were justified, such as taking away the certification of bad cops, and some were unworkable, such as a wealth tax. But all were shunted aside. The result at the end of the session now turns on the outcome of the November election and hope that former Vice President Joe Biden will unseat Republican President Donald Trump. The logic of that tactic is a more friendlier administration will provide California with many billions of dollars to solve our economic problems and the billions of federal dollars used to fight the pandemic and the wildfires.
One example is the Rental Relief legislation passed in the last minutes of the session and signed by the Governor. It protects tenants who can show that they lost income due to COVID-19’s economic shutdown from eviction, as long as they pay at least 25% of their rent. But unpaid rent will still accumulate, and evictions could resume early next year.
As legislators debated the bill, they expressed hope that a new White House administration would offer new cash relief to the unemployed, allowing them to fully pay their rents.
The question for Californians: Is there another option if the former vice president doesn’t win in November? There appears to be no Plan B. Will the working relationship between California and a Trump Administration improve? How will the Governor and the Legislature handle a state budget leaking red ink or a housing shortage that pandemic and wildfires has worsened? Will the Governor call for a special legislative session as the short stop-gap solution?
There are nearly three million unemployed workers and their families that are dependent upon state and federal support, not to mention the 1,000 of folks who lost homes to the wildfires.
As we limp into the last two quarters of 2020, the once mighty California, with the 5th largest economy in the world is suddenly not the globally powerful, semi-independent nation-state that we have proudly claimed.
COVID— 19 and the wildfires have exposed California’s limitations both economically and politically. We have been down this road before, perhaps not in such an unprecedented manner, but the resiliency of Californians can and will make the difference.
Stay Strong California, Stay Stronger Santa Cruz County!