• 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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• 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

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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​