Category Archives: Economy

Benicia CA, Benicia City Council, Benicia city staff, Benicia Economic Development, Coronavirus, Covid 19, Economy, Re-opening

Benicia staff releases dire financial forecast in response to COVID-19 pandemic

By Roger Straw, May 1, 2020

“Stark and immediate”shortfalls expected

The COVID-19 pandemic is having a serious impact on our City’s finances.  The Benicia City Council will discuss a staff report with financial forecasts at its May 5 videoconferencing Council meeting.

From the staff report’s introduction:  “This financial forecast provides an initial update to the General Fund revenues and expenses due to the sudden impact of the coronavirus pandemic on local revenues. At this time, the projected shortfall for the General Fund for 2019-20 is approximately $2.5 million and for 2020-21 the projected shortfall is approximately $8.5 million.”

The staff report and detailed financial forecasts are included in the May 5 agenda packet (see links below).

14.B – GENERAL FUND FINANCIAL FORECAST IN RESPONSE TO COVID-19 PANDEMIC (Finance Director)

Staff has reviewed the City’s General Fund budget and created an initial financial forecast in response to the novel coronavirus (COVID-19) and its estimated impacts on the City’s local economy. The forecast focuses primarily on the City’s revenues and incorporates information sourced from economic experts as well as financial trend analysis based on the City’s economic history.

Due to the quick-changing nature of information and action from both the State and City in response to COVID-19, staff prepared this forecast to present a potential scenario based on the best available information available at the time it was prepared. The purpose of the forecast is to review and discuss the potential budgetary impacts, with the intent to adjust the budget when staff returns with a mid-cycle budget update in June 2020.

There is no action or budget adjustment associated with this report.

Recommendation:
Move to accept the General Fund Financial Forecast for Fiscal Years 2019-2021 as shown in Attachment 1.

Staff Report -General Fund Financial Forecast in Response to COVID-19 Pandemic

1. General Fund Financial Forecast

California, California Governor Gavin Newsom, Coronavirus, Covid 19, Economy, Stay-at-home

Gov. Newsom: 4 Stage Plan to Reopen California’s Economy

From Gov.ca.gov – Update on California’s Pandemic Roadmap, 4/28/20

Below is the powerpoint Governor Newsom used at his noon press conference today to outline the process for California’s road to modifying stay-at-home orders and re-opening the businesses and workplaces.  A good summary can be found at CBS8 San Diego.  (A print version is likely to appear soon on the Governor’s coronavirus page.)

Benicia CA, Coronavirus, Covid 19, Economy

Benicia workshop on Tues 4/28: Understanding the Economic Disruption to City of Benicia as a Result of COVID-19

UPDATE: See video of the workshop: Understanding the Economic Disruption to Benicia as a Result of COVID-19

The City of Benicia is sponsoring a free, 30-minute webinar on Tuesday, April 28, 2020 at 6:00 p.m. titled “Understanding the Economic Disruption to City of Benicia as a Result of COVID-19” with speaker Dr. Robert Eyler.  Details below.  Register here.

California Environmental Quality Act (CEQA), Economy

New Economic Study Shows CEQA Protects Environment without Stunting Economic Growth

Repost of a Planning and Conservation League Press Release

New Economic Study Shows CEQA Protects Environment without Stunting Economic Growth

August 15, 2016
BAE Urban Economics report includes quantitative analysis of CEQA’s impacts on litigation, development costs and affordable housing

Click for the full report

Berkeley, Calif. – Economic analysis firm BAE Urban Economics released a new report today that shows the California Environmental Quality Act (CEQA) supports economically and environmental sustainable development in California. The report was commissioned by the Rose Foundation in response to a number of flawed analyses released in recent years that inaccurately blame CEQA for economic challenges in the state.

“This report uses quantitative analysis to clarify that anti-CEQA rhetoric really has no basis in fact,” said Janet Smith-Heimer, President of BAE Urban Economics. “After extensive analysis, we found that CEQA does not have an actual dampening effect on California’s economy.”

The report includes a number of significant findings, including:

  • There is no quantitative evidence that CEQA has a retarding effect on the state’s economic prosperity.
  • Legislative changes to CEQA aimed at streamlining the CEQA process to encourage infill development are working. In San Francisco, only 14 environmental impact reports were prepared in the last three years. In that time, 100 projects proceeded with CEQA exemptions or expedited review.
  • Despite rapid population growth and development, the number of CEQA lawsuits statewide has remained constant over the past 14 years. Between 2013 and 2015, legal challenges were filed in 0.7 percent of projects subject to CEQA review.
  • Less than one percent of projects subject to CEQA review face litigation.
  • Direct costs for complete environmental reviews under CEQA typically range from 0.025% to 0.5% of total development costs.
  • California is the 11th most densely populated state in the nation. Its urban areas compare favorably to cities around the country with regard to the rate of infill vs. greenfield development.
  • The state’s largest cities show ongoing improvement in walkability. California is home to 12 of the nation’s 50 most walkable cities.
  • CEQA does not hamper the development of affordable housing in urban areas. Although the need to provide more affordable housing in California is undisputed, when compared to other states, California produces the second highest number of affordable housing units per 100,000 residents in the nation.
CEQA was signed into law in 1970 by then-Governor Ronald Reagan. CEQA requires public agencies to identify environmental impacts associated with development and to reduce or eliminate such impacts whenever feasible. The law provides provisions to ensure transparency and invites community involvement in development decisions.“CEQA is often the only legal protection afforded to communities of color and low-income communities disproportionately burdened by environmental harms,” noted Gladys Limón, Staff Attorney with Communities for a Better Environment. “It identifies environmental health and safety impacts that would otherwise be passed off to residents and taxpayers generally. CEQA ensures smart development that respects the right of a decent home and suitable living environment for every Californian.”

The report’s analysis includes:

  • A literature review of recent studies on CEQA’s impacts.
  • A detailed review of legislation, legal findings and regulatory changes intended to streamline the CEQA process, and the degree to which those efforts have been successful.
  • Five case studies that illustrate how the CEQA process works (a transit center in Anaheim, an affordable senior housing project in Richmond, a Specific Plan for the Millbrae BART station, a solar installation in the Mojave Desert, and the contested SCIG railyard development at the Port of Los Angeles).
  • An analysis of the direct costs for the environmental review portion of a project, placed into context of other planning and constructions costs.
  • A review of California’s ranking compared to other states with regard to infill development, population density, walkability (a key metric of sustainable development) and economic prosperity.
“Public enforcement of CEQA plays a crucial function in protecting public health and the environment in California’s most vulnerable communities,” said Sean Hecht, Co-Executive Director, Emmett Institute on Climate Change and the Environment, UCLA School of Law. “At the same time, this report shows that litigation under CEQA affects only a small fraction of projects in the state.”To read the full report, CLICK HERE.