For the legislative and political week January 16-20
Welcome to the January 16-20 edition of the NFIB California Main Street Minute from your NFIB small-business-advocacy team in Sacramento.
Small Business and the Governor’s Budget
- By now, even casual readers of the news are aware that the good times are over with state spending. A $22.5 billion deficit is staring legislators and the governor in the face.
- Still, there were some morsels in Gov. Gavin Newsom’s proposed budget for the 2013-2014 Fiscal Year, which he released last Tuesday (January 10).
- From the Employment Development Department section of the Labor and Workforce Development component of his proposed budget:
— Unemployment Insurance Trust Fund Loan Interest—$279 million one-time General Fund to pay the annual interest payment on the state’s Unemployment Insurance loan balance.
— Unemployment Insurance Debt Payment—The 2022 Budget Act included $1billion ($250 million federal funds in 2022-23 and $750 million General Fund in 2023-24) to pay down a portion of the state’s approximately $18 billion Unemployment Insurance Trust Fund debt. The Budget proposes to withdraw the $750 million one-time General Fund payment in 2023-24.
— Unemployment Insurance Small Business Relief—The Budget proposes to remove the $500 million one-time General Fund commitment made as part of the 2022 Budget Act to offset the anticipated rising federal unemployment insurance tax rates resulting from the Unemployment Insurance Trust Fund insolvency.
- From the Investments and Business Innovation section of the General Government and Statewide Issues component of his proposed budget:
— State Small Business Credit Initiative (SSBCI)—$1.1 billion from the federal American Rescue Plan Act of 2021 has been allocated to help support small businesses. This funding is intended to leverage an additional $18 billion of capital to California small businesses. To supplement SSBCI funds, the 2021 Budget Act added $20 million one-time General Fund for IBank’s Small Business Loan Guarantee Program to continue to provide loans as businesses recover from the economic impacts of the COVID-19 Pandemic. The Small Business Loan Guarantee Program uses state funds for guarantees that are not eligible for SSBCI.
— Pandemic-Related Investments—$397.5 million one-time General Fund has been invested to create the California Venues Grant ($150 million) and Microbusiness COVID-19 Relief Grant programs ($50 million); to assist in the continued recovery of California’s travel and tourism industry ($110 million); and to support IBank’s Small Business Finance Center and the California Rebuilding Fund to focus on programs that benefit underserved businesses ($87.5 million).
— Small Business and Nonprofit COVID-19 Supplemental Paid Sick Leave Grants—$250 million one-time General Fund has been appropriated for relief grants for small businesses and non-profits to offset costs of their employees who used the state’s supplemental COVID-19 paid sick leave.
— Small Agricultural Business Drought Relief Grant Program—$75 million one-time General Fund was allocated to provide direct assistance to eligible agriculture-related businesses affected by severe drought conditions.
2024 Election is Upon Us
- No sooner has a new Legislature just settled in and wiped the pork rinds and nacho-flavored Doritos stains from the desks of previous occupants when the secretary of state’s office updated its list of ballot initiatives for 2024.
- Ten measures have either qualified, are eligible, are in circulation, or awaiting title. Of particular concern to small business, right now, are:
— An initiative to raise the state’s minimum-wage rate to $18 an hour.
— A repeal of a 2004 law allowing employees to file lawsuits on behalf of themselves and other employees against employers to recover monetary penalties for certain state labor-law violations.
— A tax increase on personal income over $5 million by 0.75% for 10 years to finance a new California Institute for Pandemic Prevention.
Speaking of the New Legislature …
- The Sheehy Strategy Group has published a Guide to New Members of the Legislature (2023-2024 Session).
Will Small Claims Court Get Bigger?
- Senate Bill 71. “Existing law provides that the small claims court has jurisdiction over actions seeking certain forms of relief, including money damages in specified amounts and claims brought by natural persons, not exceeding $10,000 … This bill would increase the small claims court jurisdiction over actions brought by a natural person, if the amount does not exceed $25,000 … The bill would increase the limit on the amount in controversy for an action or special proceeding to be treated as a limited civil case to $100,000.” NFIB Status: Monitor.
NFIB National
Highlights from NFIB Legislative Program Manager Caitlin Lanzara’s weekly report
- On Jan. 13, NFIB issued a press release announcing NFIB’s Small Business Growth Agenda for the 118th Congress, which highlighted feedback from NFIB small business members and reflects the top small business legislative priorities. Read the press release here.
- On January 9, NFIB Key Voted in support of H.R. 23, the Family and Small Business Taxpayer Protection Act. The legislation rescinds approximately $70 billion of the expanded IRS enforcement funding from the Inflation Reduction Act and directs the IRS to prioritize serving taxpayers by keeping the funding for increased taxpayer services. Read the statement here.
- On January 10, the United States Supreme Court held an oral argument in Glacier Northwest, Inc. v. International Brotherhood of Teamsters. NFIB filed an amicus brief in the case.
— “This decision could create a significant imbalance of power between unions and employers and would leave small business owners with no course of action should their property be destroyed,” said Beth Milito, Executive Director of NFIB’s Small Business Legal Center. “NFIB urges the Supreme Court to adhere to its previous precedents and protect small businesses across the nation.”
This Main Street Minute can also be read on the NFIB California webpage here. Next Main Street Minute January 23.
