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GOVERNMENT RELATIONS


The coming months will bring additional details and policy debate around the governor’s proposals. With record revenues in the state treasury, it is guaranteed that there will be fierce competition to set the direction for California’s fiscal future.


in the 2020-21 budget. Specifically, the Agency will apportion these funds as follows: Caltrans (46.7%), CHP (13.5%), HSRA (15.3%), GO Bonds- Transportation (10.6%), DMV (7.2%), State Transit Assistance (5.1%), and Other (1.6 %). Additional budget detail for all transportation funding – subject to change in the governor’s May revision and by the Legislature – may be found here: http://ebudget. ca.gov/2020-21/pdf/Governors- Budget/2500.pdf. However, there are elements of the


budget that cause some early concern: Independent Contractors – Te


governor’s budget proposes $17.5 million in new funding for anticipated increased workload and enforcement stemming from the passage of AB 5. Tis new law, which attempts to codify the Dynamex case, is currently being challenged by various industries. Tis appropriation is being proposed, despite recent wins in court by its chief target, independent owner/operators in the trucking industry. In January of this year, a federal


court granted a temporary injunction for the California Trucking Associ- ation blocking enforcement of AB 5 on the basis that it likely conflicts with


www.AGC-CA.org


federal regulations found in the Federal Aviation Administration Authorization Act. Within days of that ruling, a state court landed on the same conclusion in a final decision in State of CA v Cal Cartage Transportation Express LLC.


Climate Catalyst Fund &


Resilience Bond – Te governor’s budget creates a new Climate Catalyst Fund with a first-year budget of $250 million. Te proposal, if adopted, would capitalize the fund with $1 billion General Fund dollars over the next four years. Te fund would finance investments in low-carbon transportation, sustainable agriculture, and waste diversion through low-interest loans. Te fund would have a revolving loan structure that would attempt to leverage private capital through the State Infrastructure and Economic Development Bank. Additionally, the governor is


proposing a $4.75 billion bond for the November 2020 ballot. Te Climate Resilience Bond would appropriate


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© Trench Shoring Company Associated General Contractors of California 7


funds over a five-year period aimed at specific climate risks. It would make “long-term investment in natural and built infrastructure” targeting the “state’s most climate-vulnerable communities.” Again, the focus of the bond would be on achieving carbon neutrality and carbon sequestration goals rather than shoring up the existing built environment and infra- structure. It should be noted that the administration plans to appropriate 62% of these bond funds to recommen- dations made by the Water Resilience Portfolio.


Te Legislature – Te coming


months will bring additional details and policy debate around the gover- nor’s proposals. With record revenues in the state treasury, it is guaranteed that there will be fierce competition to set the direction for California’s fiscal future. Count on AGC’s members and advocates to be amongst those battling for more investment in California’s infrastructure and built environment. 


Safely and cost-effectively shore up a range of pipeline or pit excavations up to 35 feet deep, while maintaining required vertical clearances


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