[City management PPT text] The proposed FY 22 budget is balanced, but with one-time funding; it is not a structural (permanent) balancing and will need to be addressed in FY 23. The ongoing structural shortfall in FY 22 is $27 million with $3 million in additional one-time costs. The shortfall is all being funded by one-time Long Beach Recovery Act funding. This unusual balancing approach, while not in conformance with normal City Council policy, is recommended to be able to maintain services and better allow our residents and businesses to recover from the pandemic...

[City release text]

...Early in 2021, the City developed the Long Beach Recovery Act, funding $249.3 million in major economic, public health and fiscal initiatives for Long Beach residents, business owners and workers critically impacted by the pandemic. The funds provide for programs for local businesses and residents, while also helping maintain City services in FY 21 and FY 22 that otherwise would have been in jeopardy due to budget shortfalls in the pandemic-impacted economy. The Long Beach Recovery Act also provides time during this coming year to develop a strategy and permanent solution for the projected budget shortfall that will need to be solved for the FY 23 budget. 

“In spite of the unprecedented challenges the City has faced this past year due to the initial and ongoing effects of the COVID-19 pandemic and associated budget shortfalls, we have made tremendous strides in providing ongoing support to local residents and businesses,” said Long Beach City Manager Tom Modica. “Our focus on recovery and resiliency will extend to all the people of Long Beach, and we also continue to implement our multifaceted Racial Equity and Reconciliation Initiative. I am confident we will be more resilient than ever and continue to build a city where every Long Beach resident has a safe place to live and the opportunity to thrive.”

The programs proposed through the Long Beach Recovery Act are as follows:

Economic Recovery ($64 million)
Economic recovery efforts focus resources on the residents and businesses most impacted by the pandemic. It also shores up the business sectors hardest hit by the pandemic to promote inclusive economic recovery, including:

• COVID-19 protection for businesses and non-profits: $13 million
• Direct business support: $20.6 million
• Economic inclusion: $7.6 million
• Clean cities: $4 million
• Technical assistance: $500,000
• Economic stability: $1.6 million
• Micro/Public transit pilot: $1.6 million
• Airport assistance: $15.1 million

Healthy and Safe Community ($108.5 million)
This program area works to create a city where all residents can be healthy and safe. It requires investment in resources to address the underlying factors impacting health and prioritizes the basic mental and physical health needs of the community members most adversely impacted by the pandemic. Such efforts include investments in:

• Public Health COVID-19 response: $15.7 million 
• Basic needs, including food security and older adult supports: $6.3 million
• Physical and mental health equity: $12.1 million
• Early childhood education and childcare supports: $2.8 million 
• Violence prevention and safe cities: $3.6 million 
• Support for people experiencing homelessness: $10.9 million
• Housing support: $56.4 million 
• Language access: $500,000
• Long Beach Justice Fund supports: $300,000

Securing our City’s Financial Future ($76.7 million)
This program area allows the City to maintain and provide services for residents and businesses in the current year (FY 21) and in the coming year (FY 22) that may otherwise have been significantly reduced due to budgetary shortfalls. It also allows for the restoration of depleted operating and emergency reserves that were adversely impacted by the pandemic. To resolve a projected FY 22 General Fund shortfall of $30 million, the proposed budget is balanced using one-time Long Beach Recovery Act funds, due to American Rescue Plan Act federal funds paying for specific City services.

The budget, aside from Long Beach Recovery Act investments, is largely unchanged. Key additions to critical and strategic investments include:

General Fund 

• Elections and redistricting one-time funding needed for the primary election in FY 22 and the independent redistricting commission work ($2.18 million).
• Funding previous commitments such as the new Wrigley Greenbelt ($60,000), maintenance and programming for the new Lincoln Park ($621,000), funding for regular mandates and budget neutral department reorganizations.
• Fire Department diversity recruitment one-time funding support to continue fostering diversity in the Fire Department ($250,000).
• Diversity recruitment, mentorship and partnership program in the Police Department to foster a workforce that reflects the diverse community, offset within the Department’s budget ($220,000).

Measure US 
The budget includes Measure US-funded enhancements using additional oil barrel revenue via a voter-approved tax, which the City Council has designated through a resolution for the priority areas of children and youth, community health and climate change programs. While there is not the financial capacity to increase services in the General Fund, Measure US provides the City with a unique opportunity to invest in these important areas, including:

• Youth Fund ($917,636): Development of a City Council directed Youth Fund – a designation of Measure US funding that creates significant investment in youth, informed by the strategic plan, the reconciliation plan and other youth planning efforts.  Investments include direct youth community-based grants; support for STEAM (Science, Technology, Engineering, Arts and Mathematics) Ecosystem programming at libraries; mental health programming for youth between the ages of 13 and 18; an annual Long Beach Youth Festival/Summit; and youth related communications, grants and data management efforts.
• Community Health ($154,535): Investments into community health and equity efforts including support for the Older Adult Program and intergenerational approaches to learning and growing; and staff support to support racial equity efforts, training and capacity building.
• Climate ($243,029): Enhancements for climate change work including support for a Field Work program for expanded neighborhood tree planting and urban agriculture support; community-based organization grants for farms, community and teaching gardens and tools; and development of an Electric Lawn Equipment program as outlined in the Climate Action and Adaptation Plan.

Measure A

• Continued support of all past restorations, including public safety maintenance and administrative support.
• Funding to keep Engine 17 in service for FY 22 in the Fire Department; previously funded only through FY 21 ($2.5 million).
• Funding support for the Neighborhood Safe Streets Initiative in the Police Department ($2.2 million).
• Funding for Public Safety Replacement Lease Costs ($13.6 million). 
• Support for Community Hospital ($1 million).
• Funding for compliance with ADA sidewalk and curb-cut requirements as well as past commitments and funding for Police and Fire Academy buildings and other infrastructure ($20.8 million).