Gavin Newsom gets power to withhold funds for counties that don’t follow COVID-19 rules
California counties must comply with state and federal COVID-19 rules if they want part of $2 billion in funding through the state budget, according to details of a budget deal expected to win approval in the Legislature.
The agreement Gov. Gavin Newsom and legislative leaders reached Sunday night would allocate $750 million to counties for social safety net programs. That amount could be increased to $1 billion if the federal government sends California additional aid money that it has requested, according to bill language posted Monday at 8:45 p.m. The budget deal also allocates $1.3 billion in existing federal coronavirus relief funds for counties and $500 million for cities.
The funding is contingent on counties and cities following federal guidance, the state’s stay-at-home order and other directives laid out by the California Department of Public Health to prevent the spread of the coronavirus that causes COVID-19. That includes the statewide mask order Newsom issued last week that requires people to wear masks in public. The Department of Public Health has also issued guidance for businesses requiring them to implement social distancing and sanitation measures for staff and customers.
The policy would put Newsom’s Department of Finance in charge of determining whether counties are compliant.
Tying the funding to COVID-19 compliance is part of state government’s effort to fight the coronavirus, which has killed more than 5,500 Californians, Department of Finance spokesman H.D. Palmer said. Counties are already required to follow the Newsom administration’s public health guidelines related to the pandemic, he said.
Assemblyman James Gallagher, a Republican who represents a rural district that includes Sutter County, said the policy goes against the Democratic governor’s assertion that counties have discretion in responding to the pandemic.
“Once again, the Governor is instituting a one-size-fits all mandate, this time with major financial consequences,” Gallagher said in a written statement. “In our time of greatest need, our federal funds are being held hostage.”
Sutter County, in conjunction with neighboring Yuba County, began began allowing businesses to reopen ahead of state guidance in May, citing low coronavirus infection and death rates.
The two counties are currently in compliance with all state requirements and plan to continue following the state’s rules, Yuba County spokeswoman Rachel Rosenbaum said. The county is still reviewing the budget deal, but officials don’t have concerns about funding being tied to compliance, she said.
“We don’t have any real concerns right now,” she said. “We’re in step with the state.”
The California State Association of Counties had pushed for $1 billion in funding through the state budget to preserve funding public health departments and social safety net programs.
“California’s Counties strongly support the funding as critically important to preserve some semblance of a safety net,” spokeswoman Sara Floor wrote in an email to The Bee, adding that the association is still reviewing the specifics of the proposal.
Lawmakers and Newsom plan to approve the budget deal before July 1, when the next fiscal year begins.
Bee Capitol Bureau reporter Hannah Wiley contributed to this report.
Editor’s note: This story has been changed to reflect that counties stand to lose $2 billion in funding if they do not comply with COVID-19 rules.
This story was originally published June 23, 2020 at 5:51 PM with the headline "Gavin Newsom gets power to withhold funds for counties that don’t follow COVID-19 rules."