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Staff brief council on state budget priorities, including homelessness and housing allocations
Summary
City staff summarized the recently signed state budget and highlighted allocations staff said would affect the city, including funding for homelessness, housing credits, disaster recovery and immigrant legal services; council asked for clearer legislative-status listings.
Consuelo Hernández, director of governmental affairs, briefed the council on the recently signed state budget and the items staff expect will affect the city, including homelessness funding, housing programs and other state initiatives.
Hernández told the council the governor signed the budget and that staff described it as balancing the current and next fiscal years while maintaining reserves. In the meeting transcript staff reported several notable allocations for municipal priorities: about $900,000,000 cited for homelessness-related programs; $500,000,000 for low-income housing tax credits; $100,000,000 for multifamily housing programs; $7,000,000 for infill infrastructure grants; and a $100,000,000 disaster-recovery fund to help homeowners affected by disasters.
She also said the budget included $175,000,000 for legal services for immigrants and mentioned a bill on prefabricated housing (referred to in the transcript as "bill 79") intended to allow local exemptions, limits or deferrals of impact fees for affordable housing. Hernández summarized staff concerns about the reallocation of Cap-and-Invest funds and noted debate at the state level about prioritizing level-3 projects (climate, transportation, housing and environmental initiatives). She also referenced possible reform efforts related to SB 54, the state packaging law, and noted there are ongoing ballot initiatives that could affect municipal revenues.
A councilmember asked staff to include the current legislative status of items in future position-letter lists; Hernández agreed to add status information. Several numeric figures in the oral briefing were transcribed in a way that makes exact statewide totals unclear in the record; staff offered to provide finalized figures and analysis to the council after the meeting.
The council did not take any formal budget actions during this session; the briefing was informational and staff will follow up with clarified figures and bills' status in future materials.
