2024 Legislative Year in Review

The Legislature Returns

The 2024 legislative session of the California State Legislature commenced in early January as both houses reconvened for the second year of the 2023-24session. Legislators quickly set to work, prioritizing the remaining bills from the previous year. In late January, Senator Mike McGuire (D-Geyserville) was officially elected as Senate President pro-Tempore and sworn into the role on February 5. On February 8, he announced the new Senate Democratic leadership team for the upcoming legislative year. Senator Lena A. Gonzalez (D-Long Beach) was appointed Majority Leader, with Senators Angelique V. Ashby (D-Sacramento) and Aisha Wahab (D-Hayward) taking on the roles of Assistant Majority Leaders. Additional changes were made to the leadership team, including committee chairs and membership. Senator McGuire also announced the splitting of the Senate Governance and Finance Committee into two new committees, leading to the establishment of the Senate Local Government and Senate Revenue and Taxation committees.

The Governor’s Budget

In early January, Governor Gavin Newsom revealed his proposed budget for fiscal year 2024-25 during a press conference. The proposal projected total state spending at $291.5 billion, with a deficit of $37.9 billion. Governor Newsom attributed the budget deficit to a return to the “normalization of state revenues following the massive surpluses in 2021 and 2022.” Factors contributing to the deficit include the state ‘s reliance on the top one percent of taxpayers for half of all income tax revenue, stock market declines in 2022, and delays in income tax collection in 2023. The May revision to the January proposal indicated a slight reduction in total spending to$288.1 billion, with the projected deficit revised downward to $27.6 billion. The lower projected deficit resulted from Governor Newsom signing AB 106 (Gabriel) [Chapter 9, Statutes of 2024], an early action budget package. Governor Newsom stated that approximately half of the deficit would be addressed through budget cuts, with the remainder managed through reserves, delays, fund shifts, borrowing, and new efficiencies. In mid-June, the Legislature met its constitutional deadline to advance a balanced state budget for fiscal year 2024-25, passing AB 107 (Gabriel) [Chapter 22, Statutes of 2024]. A few days later, Governor Newsom announced an agreement on the budget, which included two budget bills and 17 budget trailer bills. The final budget reflected total spending of $297.8 billion and closed a projected deficit of $46.8 billion. The fiscal year 2024-25 budget priorities for the Governor and the Legislature aligned with previous years, focusing on funding for homelessness, public safety, climate change, healthcare, education, and housing.

National Narratives Drove Legislative Priorities

As the 2024 presidential election approached, California lawmakers turned their attention to policy areas influenced by state and national polling data. Major themes included addressing the rise of retail theft, drug and property-related offenses, homelessness, housing production, and climate change. In late February, Senator McGuire, alongside legislative, law enforcement, and mental health leaders, held a press conference to unveil a bipartisan package of priority legislation aimed at addressing public safety and mental health. In April, Assembly Speaker Robert Rivas (D-Hollister) announced additional legislation in the package. This legislative package featured various proposals, ranging from increased access to addiction and mental health treatment, to enhancing tools for law enforcement. The legislative package was introduced as an alternative to the Homelessness, Drug Addiction, and Theft Reduction Act, a proposed ballot initiative seeking to repeal parts of Proposition 47 and increase sentences for certain drug and theft crimes. However, the slate of bills was enacted and the Theft Reduction Act appeared on the November ballot as Proposition 36.

More Housing Laws Aimed at Targeting Local Agencies

After abandoning plans for a $10 billion affordable housing bond and reducing housing funding in the budget, the Legislature’s 2024 housing package continued the narrative that local governments are the primary barrier to housing production. A key theme this year focused on bills designed to increase pressure on local agencies to secure approval for housing elements from the Department of Housing and Community Development. These bills overlooked the established legal processes that ensure neutral judicial dispute resolution regarding housing element compliance. Instead, they introduced legal presumptions, tight deadlines(without committed funding for compliance assistance), and various vulnerabilities. In essence, the approach offered more sticks and no carrots, even for communities recognized with the state’s esteemed “Prohousing Designation”.

Democrats Flexing Supermajority

Democrats leveraged their bicameral supermajority to advance ACA 10 (Aguiar-Curry) [Chapter 134, Statutes of 2024]. This resolution instructed the Secretary of State to amend ACA 1 (Aguiar-Curry) [Chapter 173, Statutes of 2023], eliminating all sections that authorized the imposition of a sales and use tax and a parcel tax with a 55 percent vote. Additionally, ACA 10 revised the definitions of “affordable housing” and “public infrastructure” in ACA 1.In early July, following more than five years of debate and discussion, the Legislature reached an agreement on a climate bond. Senator McGuire announced in a press release that SB 867 (Allen) [Chapter 83, Statutes of 2024] would be the vehicle for the bond measure, which sought voter approval for funding initiatives related to safe drinking water drought management, flooding, wildfires, forest resilience, sea level rise, extreme heat, park creation, and outdoor access. The compromise amount for the bond was $10 billion, falling short of previous proposals that sought nearly $16 billion in funding.

California Supreme Court Sidelines CBRT

In late June, it was announced that the California Supreme Court had removed the California Business Roundtable tax measure from the November 2024 ballot. This measure would have required a two-thirds vote by the Legislature for new state taxes and a two-thirds vote by voters for new local taxes. The court’s decision marked a significant victory for the state and local governments.

Close of Session

By the evening of August 31, the Legislature had advanced a total of 1,206 bills to the Governor for his consideration in 2024. By September 30, the Governor had signed 1,017 bills into law and had vetoed 189, resulting in a signing ratio of approximately 85 percent to 15 percent. This ratio aligns with the average since Governor Newsom took office. The Legislature officially adjourned the 2023-24 legislative session on November 30 and reconvened for the 2025-26 legislative session during a one-day Organizational Session on December 2, returning full-time for the new two-year cycle on January 6, 2025.

Conclusion

We very much appreciate the opportunity to represent the Association, and we are grateful that the Association values our work and will continue its relationship with CPPG in 2025. While our team has achieved victories and significant progress on behalf of the Association in 2024, more work remains to be done in support of the Association’s interests, and we take this responsibility to heart. Thank you once again for the opportunity to serve CARPD and for your support. We look forward to continuing our partnership and building on the success we have achieved.

By Dane Hutchings

California Public Policy Group