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Chamber blog

Relevance of Senate Bill 562: The Healthy California Act

5/31/2017

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  • One of the most intently discussed policy issues at both the federal and state level is health care. On the federal level, President Trump is seeking to rapidly repeal the Patient Protection and Affordable Care Act signed into law by former President Obama that greatly expanded health care access for many Americans. The California legislature is making a great deal of noise with its most recent health care bill proposal, Senate Bill 562, also known as the Healthy California Act.
  • SB 562, authored by California Senators Lara and Atkins, calls for a single payer health care system in California; one that would provide comprehensive medical care coverage for all 39 million of California residents, thus eliminating private health insurance costs in California, and placing the responsibility of health insurance in the hands of the California government.
  • This bill would eliminate private insurance co-pays and deductibles and likely gain its funding from increased taxes- it recently passed its first major legislative test moving through the Senate Health Committee with a vote of 5-2. and passed through the Senate Appropriations Committee where the cost of legislation was determined. The $300 + billion dollar price tag did not detour the Democratic controlled committee from approving the bill on a 5-2 vote.  The cost of the legislation is double the state budget.
  • There is a great deal of excitement and grassroots momentum surrounding the Healthy California Act, it has received major backing from the California Nurses Association, the California Teachers Association and the California Labor Federation, but there remains major questions about its fundamental reliance upon increased taxes. Critics, such as Governor Brown, question not only whether voters will embrace more tax hikes (having recently approved the largest gas hike in state history, see our previous Newsletter for details), but whether such a plan would balloon through the state budget of $124 billion, pointing to the budgetary flaws of previous, failed single-payer health care proposals in states such as Vermont and California.  
  • Despite questions regarding SB 562’s budget and funding, the Santa Cruz City Council has recently declared its full support for the Healthy California Act, issuing a resolution of Support on May 9, 2017.
  • While there are still major legislative obstacles, if this bill is passed it would have enormous economic implications. California’s health care system relies upon roughly $230 billion in spending per year, and the burden of funding a single-payer health care system would likely fall upon taxpayers. SB 562 has faced intense opposition from private insurance companies, as well as the California Chamber of Commerce, who identify this health care proposal not only as expensive and unsustainable, but as a job killer that would hurt business by eliminating private insurance companies and penalizing employers and employees alike with further tax hikes. The California Chamber argues that this proposed new tax burden will not only hurt consumers and businesses already located in California, but will discourage businesses from establishing themselves in California, and will further cause job loss, as businesses will be forced to ease their increased financial burden with layoffs.
  • While there is both intense support for, and opposition against SB 562, much remains unknown, as the authors of the bill have yet to present a specific budget proposal for the bill, and there is plenty of room for amendments and changes as it moves towards legislative review.
  • We will keep you updated with further details as this bill continues to the Senate Appropriations Committee.   Santa Cruz Area Chamber has not taken a position on this legislation.

For more information please see the following links:
  • https://advocacy.calchamber.com/2017/04/26/senate-health-committee-to-hear-single-payer-job-killer-today/
  • http://www.healthycaliforniaact.org
  • http://www.sacbee.com/news/politics-government/capitol-alert/article141617074.html
  • http://sd33.senate.ca.gov/news/2017-04-26-healthy-california-act-wins-support-senate-committee-push-universal-healthcare
  • http://www.mercurynews.com/2017/04/26/californias-healthcare-for-all-bill-passes-first-committee/
  • http://capitalandmain.com/california-once-again-considers-a-single-payer-health-care-system-0427
  • http://scsire.cityofsantacruz.com/sirepub/mtgviewer.aspx?meetid=843&doctype=AGENDA

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Santa Cruz Nissan Project

5/31/2017

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  • The owner of Santa Cruz Nissan, a car dealership located on Soquel Avenue in Santa Cruz, is requesting approval from Santa Cruz County to move his dealership to a new site in  Soquel on 41st Avenue next to the Redwood Square shopping center, Best Buy and Ocean ​Honda. This new dealership site would be located on the corner of 3820 Soquel Drive and 2755 41st Avenue, and has an estimated construction cost of $10 million.  
  • While the owner expects both staff and sales to increase at the new Soquel site, citing expected potential sales of over $20 million; this move is facing opposition from economic interests in Santa Cruz, as well as from Soquel residents who fear the increased traffic congestion that this move would bring.
  • The City of Santa Cruz’s Economic Development Director has shown disappointment at this requested move, and has failed to convince Santa Cruz Nissan to stay, despite offering alternative locations within the Santa Cruz City limits.
  • While Santa Cruz City may mourn this loss of economic revenue, Santa Cruz County’s Economic Development Manager Andy Constable hopes that this move to Soquel will boost job growth and tax revenue. Members who routinely commute through this area of 41st Avenue are not as hopeful, opposition from members of the Soquel Neighbors Alliance has been actively expressed, with members claiming that this move would result in an estimated 600 additional vehicle trips to this area of 41st/Soquel Drive that is already heavily congested with traffic.
  • This application has recently been taken off the May Planning Commission Agenda, due to proposed modifications to the project that the owner of Santa Cruz Nissan has requested.
  • In light of community concern and opposition, Supervisor John Leopold, the representative for the 1st District, has assured his residents in his newsletter, that he will keep his residents updated and included as this Nissan project develops.  
This post is based in Santa Cruz Sentinel publications on May 1st and May 9th. For details and more information please see the following links:
  • http://www.santacruzsentinel.com/article/NE/20170501/NEWS/170509976
  • http://www.santacruzsentinel.com/article/NE/20170509/NEWS/170509667


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The Road Repair and Accountability Act of 2017

5/8/2017

1 Comment

 
  • On April 6th 2017, the California legislature passed the Road Repair and Accountability Act of 2017 (Senate Bill 1), the largest gas tax in state history. This bill was just signed into law by Governor Brown on April 28th.
  • This bill will raise the base gasoline excise tax by 12 cents per gallon, will increase the diesel and biodiesel tax by 20 cents, and will impose annual vehicle licensing fees. The combination of these taxes and fees will provide the state roughly $5 billion a year in transportation funding, and $52 billion over the next 10 years.
  • While the passing of Senate Bill 1 is considered a huge win for the Democrats in Sacramento, it did not come easily, as highly controversial last minute deals with hesitant Democrats and Republicans resulted in roughly $1 billion being set aside for projects in areas of Riverside and Modesto.
  • With Santa Cruz County having already approved Measure D in December of 2016, which authorized a half cent sales tax that will raise an estimated $17 million per year for local transportation funding, Senate Bill 1 will offer Santa Cruz County an additional $6 million per year, making available an additional $23 million in annual funding for road repair and transportation projects in Santa Cruz County.
  • In addition, in response to concerns that the new funds will not be spent solely upon transportation as intended, Senate Bill 1 contains a proposed 2018 constitutional amendment that will guarantee that all of the $5 billion a year, will be used only for transportation repair and projects.
  • From Senate Bill 1, which will begin in November of 2017, the City of Santa Cruz can expect to receive $1.48 million annually, whereas Watsonville will receive $1.21 million, Scots Valley $278,000 and Capitola $232,000.
Relevance: This bill is of great relevance to California’s infrastructure and economy as a whole, and addresses recent concerns in Santa Cruz County regarding the need for greater funding for roads and transportation. While this tax increase can be criticized as an increased financial burden for Santa Cruz residents who have already approved a gas tax in November and are struggling with the extremely expensive nature of California living, one can also argue that increased funding for transportation infrastructure and projects will not only put many people to work, but will also strengthen Santa Cruz’s local economy, as safe and efficient travel is a core aspect of economic growth. Furthermore, this additional funding may also play a role in supporting the City’s energy efficiency goals, as this bill allocates funding for sustainable and energy efficient transportation, setting aside an annual $100 million to promote increased travel by walking or bicycling, as well as $25 million for sustainable communities grant applications. Furthermore, this bill will also heavily invest in strengthening public transit, an essential aspect of sustainable travel. Many also see this increase in transportation funding as highly timely, in light of one of California’s wettest winters, which caused an estimated $20 million in road damage in Santa Cruz County, forcing both the City and County to declare a state of emergency.
​
To read more about the relevance of this bill please see our Chamber Newsletter for more details:
http://web.santacruzchamber.org/news/newsarticledisplay.aspx?ArticleID=1528
To see the specific details on the allocation of the projected funding please visit the following link:
http://www.sacbee.com/news/politics-government/capitol-alert/article147437054.html 
For more information please see the following links:
  • http://www.kion546.com/news/santa-cruz-county/measure-d-passes-will-fund-transportation-projects/200725634
  • http://www.sacbee.com/news/politics-government/capitol-alert/article143237054.html
1 Comment

Monterey Bay Community Power Project

5/8/2017

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  • In early March, the Monterey Board of Supervisors finalized their vote to join Monterey Bay Community Power, joining Santa Cruz and San Benito counties to form a tri-county community choice energy project that will place control over energy supplies in local hands. This vote was of great significance as it secured the support of all three counties and pushed the Monterey Bay Community Power Project past one of many obstacles to come for this revolutionary tri-county energy initiative.
  • The project, recently joined by San Juan Bautista, still has more progress to be made, as of the twenty-one cities within the three counties of Santa Cruz, Monterey, and San Benito, two cities, Del Rey Oaks and King City, have still refused to join this tri county agency, with Del Rey Oaks City Council voting against the Project on March 28th.
  • Supporters of this community choice energy project intend to move forward with door to door canvassing in Del Rey Oaks with the hope of garnering enough community support to sway the City Council to vote on the issue again in May.
  • Monterey Bay Community Power, an initiative driven by Santa Cruz County Supervisor Bruce McPherson, would not only emphasize local control over energy but would stimulate local economic development by keeping both energy and money local and creating local energy jobs. Furthermore this community choice energy project is projected to offer cleaner energy at similar rates to PG&E, and would emphasize investment in local renewable energy projects, which would play an important role in achieving California’s recent ambitious goal to reduce state emissions to 40% below 1990 levels by 2030.
  • Monterey Bay Community Power will open for enrollment this summer and will automatically register residents from its counties, who will be given the option to remain with PG&E. 
  • Roughly half of Santa Cruz, Monterey and San Benito’s green house gases are estimated to come from the projection of energy. As California is arguably the United States’ leader and pioneer in energy sustainability and environmental policy, if this tri county initiative is successful in promoting clean local energy at comparable PG&E rates, then this could set an innovative example of sustainable energy reliance for other counties and states to follow. For details and more information please visit the Monterey Bay Community Power Project at: http://montereybaycca.org
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City Council on the Next UC Santa Cruz Long Range Development Plan

5/8/2017

4 Comments

 
​
  • On April 25th, 2017, the Santa Cruz City Council addressed UC Santa Cruz’s Long Range Development Plan and adopted a recommendation to direct the Mayor to forward the Council’s recommendations to Chancellor Blumenthal.
  • The existing UC Santa Cruz Long Range Development Plan (LRDP), which sets forth the standards of growth that the UC campus must adhere to by 2020, is of great importance to the Santa Cruz community, as the expansion of the university must be limited and within reason, due to the university’s direct impact upon key areas of transportation, housing and water usage.
  • While the university is beneficial to the Santa Cruz community in many ways, promoting economic growth and a vibrant learning environment, the increasing university student body, and it’s role in driving up housing costs and traffic congestion, makes the communities considerations and involvement in the next LRDP to be of utmost importance.
  • In regards to the next LRDP, which would enter into place after 2020, the City Council requests that the previous LRDP student population limit of 19,500 remain as the maximum population, and that no more student body growth be allowed, due to the strain that this already high population places on community resources.
  • The City Council also requests that a Community Impact Committee be created in order to advise and educate the next LRDP about the Santa Cruz community’s needs and concerns in regards to the university's growth.
  • Lastly the City Council recommends that the Mayor write a letter directly to UC Santa Cruz Chancellor Blumenthal, regarding the integration of the above concerns into the LRDP.
 
 
The information in this write up is based in a Santa Cruz City Council Agenda Report set forth on April 25th, 2017. For details and more information please see the following City Council Agenda Report.
http://scsire.cityofsantacruz.com/sirepub/mtgviewer.aspx?meetid=856&doctype=AGENDA

4 Comments

Santa Cruz Annual Federal Housing Funding

5/8/2017

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​
  • In response to the Santa Cruz’s eligibility for annual federal housing funding in the form of a Community Development Block Grant, Home Investment Partnership and additional funding from the U.S. Department of Housing and Urban Development, Santa Cruz must declare a five year plan that discerns where the City will distribute these funds and what community needs must be met.
  • The federal funding through the Community Development Block Grant is given under the condition that the funds must target low-income individuals and meet essential community needs. Home Investment Partnership funds on the other hand, are offered on the condition that such funding rehabilitate income-restricted housing as well as target renters and home buyers of low-income
  • One of the projects targeted is the Water Street Affordable Housing Project, which is seeking to establish 41 units of affordable housing off of Water St. Santa Cruz. The City Council has already approved funding in the form of $2.6 million and will receive $671,615 in additional funding from Home Investment Partnership, as well as $11-$12 million in federal bonds from Low Income Housing Tax Credits.
  • Affordable housing projects such as this are of immense importance in the face of the extremely high rent and home prices that Santa Cruz currently faces. This report on annual federal housing funding illustrates how funding for housing development and affordable housing units is one of the greatest obstacles to affordable rental and home prices. While other issues such as community resistance and environmental regulation play a role in limiting housing development and matching the extreme demand that California currently faces, finding the funding needed for affordable housing projects is arguably the greatest barrier to addressing the housing crisis that California faces.
 
The information in this write up is based in a Santa Cruz City Council Agenda Report set forth on March 14th, 2017. For details and more information please see the following City Council Agenda Report.
  • http://scsire.cityofsantacruz.com/sirepub/mtgviewer.aspx?meetid=817&doctype=AGENDA​
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    Casey Beyer
    ​Ilan Zur
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Santa Cruz County Chamber of Commerce
7960 Soquel Drive, Ste B112
Aptos, CA 95003
Phone: (831) 457-3713