ADVOCATING FOR THE INDUSTRY


largely under-employed. Te surplus in state resources has perplexed lawmakers and analysts and kept them busy. Rather than facing historic levels of unemployment and a budget deficit of $54 billion, as was once feared, Califor- nia’s budget roared back to having a surplus of over $75 billion dollars. Added to this was federal relief


funding for an additional $25 billion! Touted as the “$100-billion-dollar comeback plan” by embattled Governor Newsom, lawmakers found themselves in what will likely be one of the rarer moments of state history. Tat is, Legislators found it challenging to expend the newfound resources fast enough to satisfy the constitutional deadline of June 15 for budget passage. As an example, what was origi-


nally proposed for Caltrans in the Governor’s January budget ($15.4 billion dollars) swelled by 59% for a total of $24.5 billion dollars in the May revision of the budget. Tese unexpected revenues have largely presented lawmakers, as well as agencies, a once in a lifetime oppor- tunity to invest extremely meaningful amounts of funding into the built environment and state infrastructure. With no shortage of infrastructure deficits – most pressing being the deficient condition of the state’s bridges – AGC urged legislators to spend this one-time source of revenue on state infrastructure. Tis good fortune of surplus stacks


on top of the now 4-year-old SB 1 gas tax increase. SB 1, despite the COVID induced slump in vehicle miles traveled and underperforming gas tax revenue, has continued to steadily produce $5 billion dollars a year. Dedicated to transportation infrastructure, SB 1 revenue is responsible for improved roadways and tens of thousands of new skilled construction jobs.


Bonds and Taxes Despite California’s newfound


surplus, democratic lawmakers www.AGC-CA.org


continue to press for the stretching of California’s bonding capacity. Bond authority legis- lation introduced at the beginning of the year – when legislators were expecting a deeper economic recession – continues to make its way through both houses. Tese bond measures range in scope: K-12 and higher education facility improvements, affordable housing subsidies, and specified climate adaptation prescribed projects.


Specifically: n Senate Bill 5 (Atkins, D) – if adopted, would authorize the issuance of bonds in the amount of $6.5 billion. Proceeds from the sale of these bonds would be used to fund affordable rental housing and homeownership programs.


n Senate Bill 45 (Portantino, D) – if approved by the voters, would authorize the issuance of bonds in the amount of $5.595 billion. Bond proceeds to finance projects for wildfire prevention, safe drinking water, drought preparation, and flood protection.


n Senate Bill 22 (Glazer, D) & Assembly Bill 75 (O’Donnell, D) – if approved by the voters, these measures would authorize $15.5 billion or $12 billion, respec- tively, for the construction and/ or modernization of education facilities.


Legislation AGC members heard about the


policy priorities of the attending Legis- lators. Te Legislators, in turn, heard about bills of importance to AGC. Increased employer liability, state funding and infrastructure investment, and the regulatory environment were among the policy areas discussed. AGC members, staff, and advocates moderated the panels and are grateful


for the participation of: n Hon. Dave Cortese, Chair of Senate Committee on Labor,


Public Employment and Retirement, moderated by Mike Blach, Blach Construction.


n Hon. Lena Gonzalez, Chair of Senate Transportation Committee, moderated by Paul Gladfelty, Te Apex Group.


n Hon. Pat Bates, Vice Chair of Senate Transportation Committee, moderated by Brad Barnum, AGC San Diego Chapter.


n Hon. Laura Friedman, Chair of Assembly Transportation Committee, moderated by Manny Leon, AGC of California.


n Hon. Vince Fong, Vice Chair of Assembly Transportation Committee, moderated by Felipe Fuentes, Te Apex Group.


n Hon. Scott Wilk, Senate Minority Leader, moderated by Jamie Khan, Te Apex Group.


n Hon. Marie Waldron, Assembly Minority Leader, moderated by Bert Somers, Ferrovial Construction.


n Hon. Josh Newman, Member of Senate Transportation Committee, moderated by Dan McGrew, Griffith Company.


AGC members, staff and all those


who participated in the lobby day found consensus on many issues. In particular, all expressed their desire and hope to continue to meet and discuss important public policy facing the construction industry…in person. n


Associated General Contractors of California 7


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