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HomeMy WebLinkAboutStaff Report 2411-3774CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, January 13, 2025 Council Chambers & Hybrid 5:30 PM     Agenda Item     11.Discussion regarding State and Federal Legislative Advocacy and Adoption of the Policy and Services Committee Recommendations on the 2025 State and Federal Legislative Guidelines. Staff Presentation City Council Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: City Clerk Meeting Date: January 13, 2025 Report #:2411-3774 TITLE Discussion regarding State and Federal Legislative Advocacy and Adoption of the Policy and Services Committee Recommendations on the 2025 State and Federal Legislative Guidelines. RECOMMENDATION The Policy and Services Committee recommends that the City Council adopt the 2025 State and Federal Legislative Guidelines (Attachment A) and receive a legislative update. BACKGROUND As part of the City’s state and federal legislative advocacy program, staff and Townsend Public Affairs, the City’s federal and state legislative advocates, work to identify and analyze potentially impactful legislation and communicate the City’s public advocacy positions to legislators. The program is guided by the Advocacy Process Manual1 and a City Council-approved set of Legislative Guidelines. The guidelines provide direction to staff and the City’s legislative advocates on issues that are important to the City Council and likely to become a legislative issue. In consultation with the Mayor, staff use the guidelines to respond to issues throughout the year. These guidelines allow for flexible and quick responses to emerging issues in the fast-paced legislative environment without returning to the City Council each time an issue arises. ANALYSIS Legislative Guidelines The Policy and Services Committee discussed the 2025 State and Federal Legislative Guidelines at its November 6, 2024 meeting2 and voted to advance the updated guidelines to the City Council for adoption. Updates reflect Committee direction, topics the City Council has expressed interest in and issues expected to be prominent in the upcoming legislative year. 1 Advocacy Process Manual: https://www.cityofpaloalto.org/files/assets/public/v/1/intergovernmental- affairs/advocacy-manual-updated-jan-2020.pdf 2 Policy and Services Committee, November 6, 2024; Agenda Item 1; Staff Report #2407-3241 https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=15686 Legislative Update As mentioned above, Townsend Public Affairs are the City’s legislative advocates in Sacramento and Washington, D.C. Townsend’s Update Memo (Attachment B) previews the upcoming legislative year for the state and federal governments, including anticipated issues, budget outlooks, and legislation that may be of interest to the City. FISCAL/RESOURCE IMPACT There is no fiscal impact associated with this action. The City Council budgets annually for the legislative advocacy services and these efforts are led by staff in the City Clerk’s Office in close collaboration with the City Manager’s Office with stakeholder support across other City departments on key issues. STAKEHOLDER ENGAGEMENT Staff from multiple departments meet regularly with Townsend to discuss legislative actions and advocacy that could impact the City. ENVIRONMENTAL REVIEW The City’s legislative advocacy activities are not a project under section 15378(b)(25) of the California Environmental Quality Act Guidelines (administrative activities that will not result in direct or indirect physical changes in the environment). ATTACHMENTS Attachment A - Draft 2025 State and Federal Legislative Guidelines Attachment B - Townsend Public Affairs Update Memo APPROVED BY: Mahealani Ah Yun, City Clerk Page 1 of 4  The City of Palo Alto’s 20245 Federal and State Legislative Guidelines Adopted January 22, 2024   These Guidelines reflect and activate the City Council’s priorities; they do not supplant them.  They work to guide staff and the City’s legislative advocates on issues that are important to the  City Council, and likely to become a legislative issue. These Guidelines are not rank‐ordered and  are meant to allow for a flexible and quick response by staff and advocates, without the need to  return to the City Council to seek guidance. The Guidelines work in conjunction with the City  Council‐approved Advocacy Process Manual and the City Council action to do “Strategic  Weighing in on Issues of Interest”1 (June 22, 2021 CMR 12344; Minutes). The City Council’s  annual priorities are also guidance for the City’s legislative platform.  The below Foundational Principles represent the ideals that form the core of the City’s policy  agenda. The Legislative Guidelines all rise from and strengthen four foundational principles:  1.Promote Local Fiscal Sustainability: Support measures that promote fiscal stability, predictability, financial independence, and preserve the City’s revenue base and maximum control over local government budgeting. Also protect local revenue sources and prevent unfunded mandates. 2.Support Funding Opportunities: Protect, seek, and increase funding for programs, projects, and services. Seek opportunities that allow the City to compete for regional, state and federal funding. Support funding for programs including, but not limited to, economic development, infrastructure investment, housing, transportation projects (such as road improvements, rail grade separations, bicycle and pedestrian safety, multi‐modal transportation systems and transit‐oriented development), air quality, water quality and local water reliability, parks and recreation, historic preservation, natural resources, hazard mitigation, public safety and public health. 3.Preserve Local Control: Preserve and protect the City’s powers, duties, and discretion to enact and engage in local processes and policy making concerning local affairs and oppose efforts and legislation from state and regional bodies that preempt local authority and do not align with City priorities. Advocate for longer lead times for implementation of new legislation that adversely impacts Palo Alto. Oppose items that preempt or reduce the authority or ability of local government to determine how to effectively operate local programs, services, activities, and governance. 4.Protect the health and safety of the community: Support policies and funding that enrich the quality of life for the Palo Alto community with services that provide for a safe, fulfilling, and vibrant life. Support policies that promote equity. 1 City Council, June 22, 2021; Agenda Item # 7; Staff Report # 12344  https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=81546&dbid=0&repo=PaloAlto Page 2 of 4  The City of Palo Alto’s 20245 Federal and State Legislative Guidelines   Adopted January 22, 2024   The Legislative Guidelines create the framework for organizing the City’s policy interests, while  guiding staff and contracted legislative advocateslobbyists in their advocacy efforts on behalf of  the City. The items below provide direction for the City’s efforts when addressing reasonable  government actions.    Transportation    The City supports government action that:  • Deters single occupancy drivers and alleviates local traffic congestion  • Supports local and regional public transportation  • Regulates technology that diverts traffic into residential neighborhoods  • Provides funding for rail grade separations, rail efficiency improvements, and other means  of reducing the local impacts of regional transportation systems  • Streamlines funding between the state, federal, and local governments that help reduce  the amount of time and resources it takes to fund and complete transportation projects.  • Sustains local, regional, and state funding sources for the development and maintenance  of transportation and does not condition receipt of funds on non‐transportation related  factors  • Supports expansion and/or maintaining and operations of public transit options throughout  Palo Alto, especially funding for transit  • Supports state legislation that maximizes local control related to land use requirements  near transit (especially if it impacts the City’s approach to planning for complete  communities)    Climate and Environment    The City supports government action that:    • Reduces GHG emissions and supports just, equitable, and cost‐effective progress toward  GHG reduction, and carbon neutrality goals, and electrification  • Maintains or expands funding resources for local governments to reduce GHG emissions  • Reduces airplane noise, health impacts, and/or airplane emissions  • Promotes residential, commercial, and vehicle electrification programs  • Promotes workforce development to provide increased workforce needed for  electrification and grid modernization  • Promotes the use of renewable resources, water conservation, and the flexible use of  existing resources  • Continues support for a statewide ban on polystyrene containers and packaging  materials  • Provides opportunities for staff, in partnership with the San Francisquito Creek Joint  Powers Authority and other regional stakeholders, to advance efforts to improve the  creek’s watershed and floodplain (especially related to local bridges)  • Supports efforts to protect local communities from sea level rise and other impacts of  climate change  Page 3 of 4  The City of Palo Alto’s 20245 Federal and State Legislative Guidelines   Adopted January 22, 2024   • Supports responsible processing of recyclables once removed from Palo Alto and other  communities, including promoting processing facilities and recyclables markets within  the United States  • Strengthens and modernizes the State and Local electric grids and grid capacity  • Supports the protection of our natural environment, including open space, trees/tree  canopy, and biodiversity    Financial    The City supports government action that:    • Supports the long‐term stability of CalPERS and the ability of local governments to mitigate  and manage with flexibility its pension obligations  • Protects the funding sources for the sustainable delivery of City services  • Supports the continued deductibility of tax‐exempt municipal bonds and the restoration of  Advance Refunding of Tax‐Exempt Municipal Bonds  • Supports the continuance of tax credits available at the federal level to support low‐ income individuals in achieving housing affordability and financial stability  • Supports the lowering or maintaining maintenance of voter thresholds for local revenue  measures  • Supports maximum flexibility for local government in contracting and contract  negotiations  • Supports reforms to local revenue financing tools for the purpose of supporting the  development of affordable housing and public infrastructure  • Supports efforts to attract and retain resources for current and future smaller businesses  in Palo Alto  • Preserves local discretion in the assessment, collection, and usage of development fees     Governance, Transparency, and Human Resources    The City supports government action that:    • Preserves local government’s ability to manage its own employment issues, including, but  not limited to hiring, evaluating, disciplining, and/or terminating and negotiating collective  bargaining agreements with employees’ representatives  • Supports reasonable regulatory efforts surrounding policies regarding cybersecurity,  drones, shared mobility services, returning to Obama‐era net neutrality regulations, and  smart city initiatives  • Provides for the incremental and thoughtful integration of artificial intelligence  technologies  • Protects individual privacy and allows the City to safeguard customer information  • Maintain existing records collection and retention requirements  • Promote teleconferencing flexibilities under the Ralph M. Brown Act  • Allows the City to support the collaborative work of regional partners, trade associations,  Page 4 of 4  The City of Palo Alto’s 20245 Federal and State Legislative Guidelines   Adopted January 22, 2024   other local governments and organizations, and Joint Powers Authorities  • Provides for the equal treatment of all individuals    Housing    The City supports government action that:  • Supports reasonable housing policies that recognize local autonomy to maintain the local  public process and preserve local government’s ability to determine land use policies and  development standards  • Provides flexible, ongoing funding for (a) affordable housing, (b) homelessness, and (c)  infrastructure (such as parks, utilities, roads, and transit) required to support the increased  housing production and keep pace with local development goals   • Promotes the development and enhancement of safe and affordable housing and  accessible housing within the City for all economic segments of the population   • Promotes funding and tax incentives for the identification, acquisition, maintenance,  adaptive reuse, and restoration of historic sites and vacant structures  • Fosters reasonable ratios between jobs and housing  • Supports the development and implementation of efficient and environmentally  sustainable land use and building practices  • Supports the provision of greater lead times for Palo Alto to implement state legislation  when necessary to comply with new land use and housing requirements within the local  context    Public Safety    The City supports government action that:    • Supports efforts which seek to modify policing services, including but not limited to  alternative public safety models and funding to address community mental health  issues, expansion of requirements regarding police data and rules regarding prior  employment information transparency, and expansion of data and communications  including radio encryption  • Provides for greater public safety support resources especially related to organized retail  theft operations  • Reduces weapons‐related violence via the enactment of common‐sense firearm reforms  • Enhances fire and emergency training and response capabilities. Mitigate fire safety  risks. Advocate for funding and policy to mitigate wildfire risks and funding for fire  services in general as well as funding for emergency services.  • Updates, implements, and refines processes, services, and programs affecting the City.  This includes, but is not limited to, public safety reform efforts and streamlining  reporting mandates  • Support legislation that would address ongoing safety concerns and help prevent acts of  violence motivated by hate, including improving data collection and reporting  1 6 4 8 1 M E M O R A N D U M To: The Honorable Greer Stone and Members of the Palo Alto City Council CC:Ed Shikada, City Manager Chantal Cotton Gaines, Deputy City Manager Christine Prior, Deputy City Clerk From: Townsend Public Affairs Christopher Townsend, President Niccolo De Luca, Vice President Alex Gibbs, Grants Director Carlin Shelby, Senior Associate Joseph Melo, Senior Federal Associate Date: December 30, 2024 Subject: State and Federal Legislative Updates Townsend Public Affairs, Inc. (TPA) has prepared this report for the City of Palo Alto to provide a summary of State, Federal, and funding efforts and highlight the current status of the legislative process. STATE LEGISLATIVE UPDATES Legislature Commences 2025-26 Session On December 3, the California State Assembly and Senate reconvened for an Organizational Session to welcome new legislators, adopt house rules, and elect their respective leadership teams. Overall, 29 newly elected Senators and Assembly Members were sworn in during the convening of the 2025-26 Legislative Session. This number is slightly less than the 37 new lawmakers that were sworn in at the beginning of the 2023-24 Session. This means that over half of the state’s 120 legislators began their tenures on or after 2023. One notable change to the Standing Rules in each house is a reduction in how many bills legislators may introduce during a two-year Session. Assemblymembers and Senators are now only permitted to introduce 35 bills, a change from 50 in the Assembly and 40 in the Senate, in order to allow more time for consideration of measures and improve the deliberative process. So far, approximately 140 bills, resolutions, and constitutional amendments have been introduced since December 2nd. Assemblymember Robert Rivas and Senator Mike McGuire were re-elected as Assembly Speaker and Senate pro Tempore, respectively, and both addressed their chambers kicking off their Regular and Special Sessions. Members from both houses introduced bills in the Special Session related to shoring up resources for the Department of Justice (DOJ) to pay for federal litigation expenses, one of which appropriates $500,000 to the Department. More details on the Special Session and funding to DOJ are anticipated to coincide with the Governor’s January 2 6 4 8 1 Budget. Next, we can expect changes to committee chairs and membership as members and staff get settled in. •Ensuring grade separation funding rescinded in last year’s budget is reinstated and the City’s projects can move forward: In 2022, the Budget Act allocated $113,790,000 from the Transit and Intercity Rail Capital Program (TIRCP) for critical grade separation initiatives in Burlingame, Mountain View, and Palo Alto. The City of Palo Alto was specifically awarded $23.79 million for the Connecting Palo Alto project, which focuses on grade separation at Churchill Avenue, Meadow Drive, and Charleston Road. •Protecting Locally Contracted Artists from Litigation: Local agencies, including the City of Palo Alto, have encountered difficulties in contracting with local artists using local funds due to different interpretations of state contracting law and the standards governing who is and is not a licensed artist. TPA will be working with the legislature and other local agencies to create clarity and allow the City to move forward with its robust local art program without the threat of costly litigation. •Brown Act Flexibility extension: Several statutes associated with remote meeting flexibilities for elected officials during times of emergency or other extenuating circumstances are set to expire during the 2025-26 legislative session. TPA will be working with the legislature and other local stakeholders to extend and/or expand these flexibilities to accommodate the needs of elected officials, public transparency, and even the cities non decision making bodies, such as subcommittees. •Proposition 36 Implementation: In the November 2024 election, voters overwhelmingly passed Proposition 36, which overturned certain provisions associated with penalizing serial theft offenses within Proposition 47 (2014). TPA will work with the legislature and local stakeholders on legislation aimed at the seamless implementation of some of the provisions contained within Proposition 36, including diversion programs and resources for repeat offenders with behavioral health or substance use disorders. State Budget Update: November Income Tax Withholdings Below Projections; 2025-26 Fiscal Outlook Highlights Budget Challenges 3 6 4 8 1 delayed from November to December due to the later Thanksgiving holiday. Encouragingly, the week following Thanksgiving saw collections rise approximately 20% over the same period last year, with this uptick likely bolstering December's totals. FEDERAL UPDATES Congressionally Directed Spending Submittal $1,250,000. This funding amount is reflective of bipartisan negotiations, budget topline numbers, and requests among all 50 states. It is anticipated that this funding will remain stabilized as the FY 25 Federal Appropriations process continues. TPA advocates will continue to advocate for its inclusion in subsequent appropriations process actions and will monitor the progress of the Senate. 4 6 4 8 1 Federal Appropriations Update After a week of rollercoaster negotiations, Congress has approved a legislative package to avert a government shutdown and extend current government funding levels until March 14, 2025. The bill, H.R.10545 also includes provisions providing more than $100 billion in disaster relief and several extensions of health care and agriculture programs. This final package comes after two previous attempts failed earlier in the week. The first proposal, which Republicans negotiated with Democrats, included measures to regulate pharmacy benefit managers, limit trade with China, and allow year-round sales of certain ethanol-blended fuels. However, this proposal was withdrawn after President-elect Donald Trump opposed it, urging Republican leaders to address the debt limit first. A second plan, which removed most of the provisions from the first, aimed to suspend the debt limit until January 2027. This plan was rejected on December 19, with a vote of 174-235, as 38 Republicans opposed it and only two Democrats supported it. The latest plan resembled the second but excluded the debt limit suspension and extensions for the Stephanie Tubbs Jones Child Welfare Services Program and the MaryLee Allen Promoting Safe and Stable Families Program. The House approved this plan by a vote of 366-34 with one member voting present. Relevance to Palo Alto: As a result of negotiations, the package was narrowly focused on four main provisions: 1. Extending current government funding until March 14, 2025. 2. Enacting supplemental appropriations for disaster relief efforts. 3. Extending certain expiring health care programs. As a result, impacts on the City are limited to avoiding the impacts of expiring programs and a lapse in funding. Summary of H.R. 10545, the American Relief Act, 2025 Spending Provisions •The legislative package included a continuing resolution (CR) extending current funding from Fiscal Year 2024 appropriations through March 14, 2025. •Anomalies (adjustments to funding that differ from FY24 appropriations) include: o Allocate an annualized $625 million to the National Oceanic and Atmospheric Administration to maintain the acquisition schedule for the Geostationary Earth Orbit weather satellite program. o Permit the Federal Aviation Administration to use funds necessary for air traffic operations, aviation safety oversight, and the hiring and training of air traffic controllers. o Authorize the Energy Department to utilize funds required for specialized security activities. o Grant the Education Department the flexibility to allocate funds needed to administer federal student loan and aid programs. •The bill blocks an automatic cost of living pay increase for Members of Congress, the Vice President, and other executive and senior-level government officials. 5 6 4 8 1 Extensions •Several programs that were set to expire are extended through March 14, 2025, these include: o The CFTC Whistleblower Program o The Domestic Trafficking Victims Fund o Temporary Assistance for Needy Families program. o Federal Emergency Management Agency’s National Flood Insurance Program. o DHS’ and the Justice Department’s authority to counter uncrewed aircraft systems that pose a credible threat. o The Homeland Security Department’s National Cybersecurity Protection System. o US Agency for International Development’s Food for Peace program. •The measure provides $12 billion for the Housing and Urban Development Department’s Community Development Block Grant-Disaster Recovery program to support long-term recovery efforts in communities affected by major disasters in 2023 and 2024. •It provides $8.1 billion for the Federal Highway Administration’s Emergency Relief Program. •It authorizes the use of funds to cover 100% of the costs associated with rebuilding the Francis Scott Key Bridge in Baltimore, which collapsed after being hit by a cargo ship in March. Any funds obtained by state and local authorities in Maryland from insurance or lawsuits related to the Key Bridge are used to reduce the federal government’s liability for the cost of reconstruction. •The measure provides $1.5 billion for the Army Corps of Engineers to address emergency situations and repair damage to Corps flood control projects, including $745 million to prepare for floods and hurricanes. •It allocates $3.3 billion for Environmental Protection Agency state and tribal assistance grants, including $3 billion for capitalization grants to help repair wastewater and drinking water infrastructure damaged by hurricanes or wildfires. •It provides $3.1 billion to the Interior Department for expenses related to natural disasters in 2024 and previous years, including $2.3 billion for the National Park Service. •The measure allocates $1 billion for the National Oceanic and Atmospheric Administration, including $399 million to acquire hurricane hunter aircraft, $344 million to replace or repair damaged property and equipment, and $300 million for fisheries disaster relief. 6 6 4 8 1 •It provides $1.5 billion for the Commerce Department’s Economic Development Administration to aid areas that received a major disaster designation in 2023 and 2024. •The bill allows recipients of FEMA disaster relief and preparedness grants to retain unspent administrative funds for up to five years. It also permits them to repurpose these funds to assist with other declared disasters or to enhance their capacity to respond to future emergencies. Health Programs The funding package includes several extensions and flexibilities for health programs, including: •An extension of flexibilities allowing for greater Medicare coverage of virtual telehealth services until March 31, 2025. These were set to expire at the end of 2024. •$1.1 billion from January 1 to March 31, 2025 for the Community Health Center Fund which provides federal funding for community health centers. Funding was set to expire on December 31, 2024. •The measure extends several expiring provisions through March 31, 2025 including: o Increased Medicare payments to low-volume hospitals. o Add-on payments for ground ambulances. o A floor on the geographic index used to calculate provider payment rates under Medicare. o The Medicare-dependent hospital program. •Other health programs extended through March 31, 2025 include: o The National Health Service Corps, which provides scholarships and loans to medical students. o The Teaching Health Center Graduate Medical Education Program. o The Special Diabetes Program and Special Diabetes Program for Indians. o The Personal Responsibility Education Program and Sexual Risk Avoidance Education Program. GRANT FUNDING UPDATES The TPA team works directly with City staff and department heads to discuss funding needs and match them with available priorities. Each month, TPA provides the City with a grant opportunities memo, which details upcoming funding opportunities with a focus on transportation and infrastructure, environmental sustainability, public safety, community services, and clean energy needs. Further, the TPA team regularly meets with City staff to discuss these opportunities in greater detail, along with other local/regional programs. TPA’s efforts in crafting, editing, and submitting competitive grant applications on behalf of the City include: Program Request Amount Description California Business, Consumer Services and Housing Agency – Encampment Resolution Fund $5,427,000 – PENDING (evaluating if the changed circumstances impact eligibility) Funding to be used for encampment clean up and connecting homeless individuals to supportive services. 7 6 4 8 1 Program Request Amount Description MTC – Transit Oriented Communities $3,100,000 – PENDING Application for additional electric vehicle charging stations to be installed within the City. CalRecycle Beverage Container Recycling Grant $165,000 – PENDING Application to install publicly accessible water refill stations throughout the City’s public spaces. CalOES State and Local Cyber Security Grant Program $250,000 – NOT AWARDED Funding to be used to improve local cybersecurity infrastructure capabilities to prevent fraud and attacks. Bureau of State and Community Corrections – Organized Retail Theft Grant $5,176,812 – AWARDED Successfully awarded to assist the City in combatting organized retail theft occurrences through increased public safety resource coordination. January 13, 2025 www.cityofpaloalto.org Legislative Guidelines &Legislative Advocacy Updates Christine Prior, Deputy City Clerk Chantal Cotton Gaines, Deputy City Manager Carly Shelby, Senior Associate, Townsend Public Affairs 1 •Adopt the 2025 State and Federal Legislative Guidelines as recommended by the Policy & Services Committee •Receive a legislative advocacy update from Townsend Public Affairs Recommendation 1 •Framework for used by staff and legislative advocates, in consultation with the Mayor, to respond to legislative issues •Allow for flexible and quick responses to emerging issues •2025 updates (Attachment A; Packet pgs. 118-121) Legislative Guidelines Slide 4 Advocacy Program Anticipated Issues for 2025 Overview of Advocacy Efforts Presentation Overview Funding Updates City of Palo Alto | Advocacy Program Overview and Legislative Updates Slide 5 Overview of Advocacy Program City of Palo Alto | Advocacy Program Overview and Legislative Updates Townsend Public Affairs Provides State and Federal Legislative and Grant Funding Advocacy Services to the City of Palo Alto: Federal Legislative Advocacy Grant Writing and Funding Advocacy State Legislative Advocacy Slide 6 6 Examples of Advocacy Efforts for the City 21 3 4 State Legislative Advocacy Federal Legislative Advocacy Grant Application Development and Submittal Agency and Regulatory Support •Engagement on over 50 Legislative Proposals during 2023-24 Legislative Session •Successful budget advocacy efforts to protect City Funding •Strategic Coalition Engagement •Federal Appropriations process navigation and earmark success •Federal agency engagement on high natural gas prices •Successful advocacy trips in DC •Development of over 5 large- dollar amount grant proposals •Strategic eligibility and competitive application advice •Consistent meetings with staff on priorities and opportunities •Communication with HUD, Caltrans, and other agencies on funding and project implementation •Post-submittal grant and funding advocacy City of Palo Alto | Advocacy Program Overview and Legislative Updates Slide 7 Recap of 2024 Key State Issues Housing Production and Affordability RHNA Reform Climate Resiliency Homelessness and Behavioral Health Public Safety and Organized Crime Reduction City of Palo Alto | Advocacy Program Overview and Legislative Updates Slide 8 2025 Legislative Session: Key Dynamics City of Palo Alto | Advocacy Program Overview and Legislative Updates Legislature Reconvened January 6, 2025 First Year of Two-Year Session 25% Member Turnover New Bill Introduction Maximums 50 to 35 New Committee Leadership CA/DC Dynamics Slide 9 Governor’s January Budget Proposal Despite a projected $2 billion deficit from the Legislative Analyst’s Office, Governor Newsom’s plan delivers a balanced $322.2 billion budget with no deficit and a modest surplus, backed by $16.9 billion in reserves. City of Palo Alto | Advocacy Program Overview and Legislative Updates Slide 10 Looking Ahead: Key Issues for 2025 Housing Financing Cap and Trade Reauthorization RHNA Reform Property Insurance Availability and Affordability Local Artist Contract Protections Regional Transportation Funding City of Palo Alto | Advocacy Program Overview and Legislative Updates Slide 11 2025 Key Federal Issues 119th Congress: Leadership and Administration Changes FY 2024 Appropriations Process –March Federal Earmarks – Community Project Funding Current Pending Community Project Funding Request: $1,250,000 for Fire Station No. 4 Improvements – Championed by Congresswoman Eshoo City of Palo Alto | Advocacy Program Overview and Legislative Updates Slide 12 Advocacy Program •Regular check in meetings with City staff •Identification of legislative and budget priorities for 2025 •Consistent reports and updates on priority issues •Legislative platform review and updates •Advocacy trip planning •Ongoing advocacy in Sacramento and Washington, DC on behalf of City legislative priorities and budget requests •Relationship development with Legislative Delegation and Leadership City of Palo Alto | Advocacy Program Overview and Legislative Updates Slide 13 California Advocacy | Federal Advocacy | Grant Writing www.TownsendPA.com | (949) 399-9050 Townsend Public Affairs, Inc. California Advocacy, Featuring: Niccolo De Luca Vice President ndeluca@townsendpa.com Casey Elliott Vice President celliott@townsendpa.com Carly Shelby Senior Associate cshelby@townsendpa.com Federal Advocacy, Featuring: Ben Goldeen Fed. Advocacy Director bgoldeen@townsendpa.com Joseph Melo Senior Associate jmelo@townsendpa.com Sammi Maciel Fed. Funding Associate smaciel@townsendpa.com Grant Writing, Featuring: Alex Gibbs Grants Director agibbs@townsendpa.com Anastasia Heaton Senior Associate aheaton@townsendpa.com Barbarah Torres Senior Associate btorres@townsendpa.com City of Palo Alto | Advocacy Program Overview and Legislative Updates 1 •Adopt the 2025 State and Federal Legislative Guidelines as recommended by the Policy & Services Committee Recommendation Motion