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Tobacco Settlement Fund

February 20, 2002 - The administration's proposal to "securitize" the state's future revenues from settlement of litigation with tobacco companies is a feasible and reasonable step for the Legislature to consider However, we recommend that the Legislature consider this transaction only if presented a more detailed analysis demonstrating that the net financial outcome would be beneficial to the state.


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Mental Health Services for Special Education Pupils

February 20, 2002 - We recommend the Legislature set aside funding for the AB 3632 program mandate--"Services to Handicapped Students"--pending development of a new program of county mental health services for special education pupils.


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State Faces Potential Loss of State Children's Health Insurance Program Funds

February 20, 2002 - The state is at risk of losing $750 million in unspent federal State Children's Health Insurance Program funds over the next two years in the absence of congressional action. We suggest the Legislature work with the congressional delegation regarding the availability of these funds. We also present examples of options to minimize this potential loss of federal funds.


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Healthy Families Parent Expansion

February 20, 2002 - The Governor has recently indicated support for the Healthy Families parent expansion in the budget year. Should the Legislature wish to proceed with the expansion in the budget year, we offer an alternative for doing so at a reduced state cost.


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Child Health and Disability Prevention Program

February 20, 2002 - We agree in concept with the Governor's plan to eliminate the Child Health and Disability Prevention (CHDP) program. However, we note that there are problems with the proposal that need to be addressed such as its impact on community health clinics and access to care for children previously served by CHDP.


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Medi-Cal Managed Care: Where Do We Go From Here?

February 20, 2002 - We review options for reform of the medical system that now provides care for a majority of Medi-Cal beneficiaries. We suggest the Legislature consider changing the way managed care rates are set, increasing competition among health plans, and enrolling the elderly and disabled in managed care.


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Regional Center Mission and Funding are Misaligned

February 20, 2002 - Funding for Regional Centers for the developmentally disabled has more than doubled since 1995-96, yet they are still experiencing financial problems. We propose some initial steps the Legislature could take to achieve significant savings that could either be used to reduce state spending or to reinvest in the Regional Center system.


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Assessing the Governor's Proposed Medi-Cal Reductions

February 20, 2002 - We recommend against adopting administration proposals to reduce provider rates for certain services and charge copayments to Medi-Cal beneficiaries. We propose a different copayment approach. We recommend approval of a proposal to reduce the cost of Medi-Cal drug purchases and offer some additional approaches that could save the state money on purchases of drugs.


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Hospitals Face Financial Headaches

February 20, 2002 - California hospitals face significant financial pressures in the next several years, particularly from recent federal regulations limiting the amount the state can pay public hospitals participating in Medi-Cal. We recommend steps the Legislature could take even in difficult fiscal times to deal with problems faced by hospitals.


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Partnership for Excellence

February 20, 2002 - We recommend that the Legislature either end or modify the Partnership for Excellence (PFE) experiment, which provides supplementary funding to community colleges in exchange for their commitment to improve certain student outcomes.


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The University of California's K-12 Outreach Programs

February 20, 2002 - The state administers a number of K-12 outreach programs that focus on preparing students from disadvantaged backgrounds for college. We find that for a variety of reasons these programs may not be achieving their goals. We review these programs and recommend steps for improving the efficiency and effectiveness of the system.


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Expand Competitive Cal Grant Programs by Pooling State Funds

February 20, 2002 - We recommend expansion of the competitive Cal Grant programs by redirecting state funds from certain financial aid programs at the University of California (UC) and the California State University (CSU). This would help create a statewide financial aid system that is more efficient and objective.


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Student Fee Policy Needed

February 20, 2002 - We recommend that the Legislature enact in statute a consistent fee policy that provides for an appropriate sharing of educational costs between students and the state, and which preserves student access to higher education.


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Enhanced Security Antiterrorism Programs

February 20, 2002 - We withhold recommendation on $89.6 million requested for the California Highway Patrol until the levels of federal reimbursement are better known in the spring. We also recommend development of an expenditure plan that sets priorities for the use of the remaining $176 million in anticipated additional federal funds.


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Motor Vehicle Account Condition

February 20, 2002 - Increased costs for security activities in the budget year, together with other Motor Vehicle Account (MVA) expenditures, will result in an MVA shortfall if corrective actions are not taken.