GOVERNMENT RELATIONS


America’s economy and families from the devastations delivered by COVID-19. A two-pronged approach, the package is to contain significant aid to local and state government, significant investment in renewable energy as well as the transportation infrastructure sector. Depending on what is ultimately passed by congress will help finalize the details of the state budget this year.


Areas Impacting Construction Te Governor’s proposed budget


has the following items of interest for


our industry: ■ Committed to SB 1 as part of a five-year Infrastructure Plan. SB 1 revenues are expected to amount to approximately $5.4 billion in the coming fiscal year; $3.5 billion of which is dedicated to road projects, rehabilitation, and maintenance. $1.9 billion will be allocated for local transit, multi-modal projects, and other transportation priorities.


■ A proposal to build a climate- resilient water system: Te Water Resilience Portfolio. Te budget anticipates the passage of a future $4.75 billion climate resilience bond.


■ A new Department of Better Jobs and Higher Wages. Tis new department will consolidate the workforce functions dispersed across the Labor and Workforce Development Agency. Specifi- cally, Te Department will be comprised of the California Workforce Development Board, the Employment Training Panel, Workforce Services Branch and Labor Market Information Division, which are currently in the Employment Development Department, and the Division of Apprenticeship Standards currently in the Department of Industrial Relations


independent contractors.


■ Workforce Development – $250 million in one-time funding to support proposals that are focused on workforce development, segment alignment, and improving linkages between higher education institu-


tions and employers. Specific to our industry, there is $8.5 million to expand construction apprenticeship and multi-craft pre-apprenticeship programs that are estimated to result in approximately 650 new jobs.


Early Legislative Action Unlike in other budget years, some


of the most significant elements of the Governor’s budget proposal will be acted on early by the Legislature – those budgetary items intended to assist with vaccine delivery, returning children to school, and aid to impov- erished families. Te remainder will be deliberated, negotiated and adopted by the Legislature by the state constitu- tional deadline of June 15th. Until then, the Governor and


Legislature will do well by partnering with a friendly presidential adminis- tration and congress to ward off any further economic harm to the State and its residents. 


■ Increased funding for AB 5 enforcement. Specifically, $17.5 million for the Department of Industrial Relations to address workload associated with increased utilization of the workers’ compen- sation program, investigations of labor law violations related to worker status, wage claim filings, and workplace health and safety inspections. Tere is $3.4 million for the Employment Development Department to train staff and administer the ABC Employment Test, and to conduct hearings and investigations of worker status. And finally, $780,000 for the Department of Justice to address increased enforcement actions and to prosecute cases involving misclassification of employees as


www.AGC-CA.org


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