During a recent meeting of the Assembly Budget Subcommittee No. 1 on Health and Human Services, significant concerns were raised regarding the allocation and timing of infrastructure funding for health services in San Diego. The discussion highlighted the challenges faced by local agencies in acquiring essential vehicles, particularly electric vans, which are crucial for delivering services to the community.

A representative detailed that approximately $200,000 had been requested for infrastructure improvements, with about $140,000 earmarked specifically for vehicles. However, complications have arisen due to supply chain issues and the inability to procure vehicles without a Vehicle Identification Number (VIN), which is only assigned once a vehicle is produced. This has led to smaller agencies needing to secure bank loans to purchase vehicles upfront, with reimbursement expected later.

The situation was exacerbated by a recent change in funding timelines. Initially, agencies were informed that they had until December 31, 2024, to utilize the funds. However, a memo received in January indicated that the deadline had been moved up to December 31, 2023. This reduction in time has raised alarms among service providers, who fear they will not be able to make necessary purchases in time to benefit from the allocated funds.

The representative urged the state to apply for a one-year extension from the federal government, as permitted by the Centers for Medicare and Medicaid Services (CMS), to allow for the effective expenditure of these funds. Alternatively, they suggested that the state should consider appropriating General Fund dollars in the upcoming budget to cover any potential shortfall resulting from this timeline change.

The urgency of the situation was underscored by the representative's personal experience in attempting to secure electric vans, revealing that despite receiving a $300,000 grant, only one vehicle had been acquired since September, with the possibility of two more arriving in the summer. This illustrates the logistical challenges that many agencies are facing, which could hinder their ability to deliver vital nutrition and health services.

In conclusion, the meeting underscored the pressing need for state intervention to ensure that local agencies can effectively utilize the infrastructure funding intended to enhance health services. The outcome of these discussions will be critical in determining how well these agencies can meet the needs of their communities in the coming year.