JBC funds Ridgeview from Prop. 123 and approves $15M/year severance transfer for radio system; several DOLA line items advance

The Joint Budget Committee approved a package of Department of Local Affairs (DOLA) budget actions that will shape near‑term spending for homelessness services, housing programs and local government grants.

Ridgeview operating funding: The committee approved staff’s recommendation to fund Ridgeview operating costs without general fund, using a mix of an $8.5 million one‑time transfer from the Innovative Housing Incentive Program cash fund and $1.8 million of Prop. 123 money for the 2025–26 year. JBC staff summarized that construction is underway and that estimated ongoing operating costs are roughly $10–$11 million per year. Committee members expressed differing views about whether ongoing operations should be sustained by Prop. 123 or general fund, but the committee voted to direct Ridgeview operating funding away from general fund. The motion to adopt the staff recommendation (with funding from Prop. 123 rather than general fund) passed 5–0 with Representative Sirota excused.

Severance tax and statewide radio upgrade: To fund a multi‑year plan for the digital trunked radio system (statewide public‑safety radio upgrades), the committee approved transferring $15,000,000 annually from the severance tax fund to a public communications interoperability fund for 10 years. The motion passed 5–0. Committee discussion framed this as a dedicated, ongoing transfer to support a statewide public‑safety communications contract and tower upgrades.

Housing Development Grant Fund administrative cap: The committee changed the administrative cap on the Housing Development Grant Fund (a large off‑budget pool with multiple revenue sources) from 3% to 4% and made administrative spending subject to appropriation. That change passed on a 3–2 vote. Members who opposed did not support increasing the overhead cap broadly but supported some targeted administrative funding; supporters emphasized that improved statewide homeless/outcomes data (the Homeless Management Information System) requires modest administrative investment.

Program changes and line items: The committee also took several other actions of note: - It terminated the Defense Counsel at First Appearance grant program, allowing an orderly wind‑down so current obligations can be met, and directed staff to prepare implementing legislation. The motion passed 5–0. - It repealed the gray/black market marijuana enforcement grant program in statute; administrative wind‑down funding was left in place for current year contracts. Motion passed 5–0. - It denied a BA request for two additional executive‑director‑office positions (accounting and human resources) that the department had requested to convert temporary staff into ongoing positions; the committee adopted staff recommendation and the motion passed 5–0. - The committee approved multiple line‑item details and base appropriations for DOLA divisions, including the Division of Property Taxation, Division of Housing, and others; routine indirect cost and cost‑plan items were approved without objection.

Why it matters: The Ridgeview decision and the transfer to the radio fund reallocate large pools of dollars and affect how the state uses Prop. 123, one‑time innovative housing funds, and severance tax revenue. The cap change on the Housing Development Grant Fund affects how much off‑budget revenue can be used for administration versus direct program dollars. Terminating or repealing small grant programs and denying staffing requests will also reduce ongoing DOLA administrative capacity and program flexibility.

Next steps: Staff will prepare drafting language for the statutory changes the committee requested (including the Housing Development Grant Fund administrative appropriation change and the program repeals) and will include the severance‑tax transfer on the committee’s transfer bill. The Ridgeview plan will return in greater detail during next year’s budget cycle for ongoing operating choices.