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State Data Centers: Options for Savings

February 19, 2003 - In reviewing the state's two major data centers, we found two options that could reduce department expenditures: (1) consolidation of data centers, and (2) consolidation of servers from various state departments to state data centers.


Report

Information Technology Governance

February 19, 2003 - The administration proposes a model for a new state information technology governance structure consisting of three components: a State Chief Information Officer, an oversight board, and state control agencies. Our review found that the proposal lacks details and leaves many questions unanswered. We recommend the Legislature evaluate the proposal based on the key objectives of leadership, accountability, and oversight.


Report

Proposition 46 Housing Bond

February 19, 2003 - In November 2002, the voters approved a $2.1 billion housing bond. The General Fund will pay an average of $157 million annually for 30 years to pay for the principal and interest of the bonds. We review the administration's proposal for implementing the bond's provisions and outline potential options for using the bond to help address the budget situation.


Report

State Emergency Telephone Number Account

February 19, 2003 - The administration proposes to increase the maximum 911 surcharge rate from 0.75 percent to 1 percent of intrastate phone charges. Since the proposal is inconsistent with current law and changes the nature of the 911 surcharge, we recommend the Legislature reject the proposal.


Report

Vacant Positions

February 19, 2003 - Recently, the Legislature has taken various steps, through budget control sections, to reduce the number of vacant positions in state government. We found that the Department of Finance (DOF) has provided most of the information requested. We recommend that DOF provide updated information.


Report

General Government: Mandates

February 19, 2003 - The administration proposes to defer the costs of all general government mandates on local governments. By the end of the budget year, the state would owe over $1.2 billion to noneducation local governments. We recommend the Legislature adopt the general policy of either funding its mandate obligations or eliminating the state's liability for the mandate.


Report

State Retirement Contributions

February 19, 2003 - To reduce budget costs, the administration proposes to finance up to $2.5 billion in scheduled retirement contributions to the Public Employees' Retirement System (PERS) and the State Teachers' Retirement System (STRS). We recommend rejecting this proposal because incurring decades worth of debt to avoid an annual operating expense is poor fiscal policy.


Report

California Community Colleges Fees

February 19, 2003 - We believe that the level of the proposed CCC fee--which would remain the lowest in the nation--is reasonable. However, the Governor's proposal misses an opportunity to significantly increase federal financial aid to needy students. This could be achieved by increasing the proposed fee by $1 per unit.


Report

Higher Education Financial Aid

February 19, 2003 - The Governor's budget would increase campus-specific financial aid programs at UC and CSU by about 60 percent. We recommend that the state instead provide additional funding for statewide financial aid programs that are open to all students, irrespective of the particular campus or system they select.


Report

Higher Education Enrollment Growth

February 19, 2003 - We believe the Governor's proposed enrollment increase at UC and CSU far exceeds any reasonable projection of demand. We therefore recommend that budgeted enrollment at UC and CSU be increased by 4 percent rather than 7 percent. We recommend that the Legislature consider increasing enrollment funding at CCC by up to $100 million.


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Higher Education Student Fees

February 19, 2003 - The Governor's budget assumes student fees will increase for the average full-time undergraduate student by $1,065 at UC, $468 at CSU, and $338 at CCC in 2003-04. We recommend increases that are about 40 percent smaller at UC and CSU. We also recommend the Legislature adopt an explicit fee policy requiring annual adjustments that are gradual and predictable.


Report

LAO Alternative Higher Education Budget Proposal

February 19, 2003 - The Governor proposes a 9.8% General Fund saving in higher education. We outline the main features of an alternative that accomplishes this for the University of California, the California State University, and the Student Aid Commission.


Report

Child Care and Development

February 19, 2003 - The Governor's proposal to shift responsibility for most child care programs from the state to counties deserves legislative consideration. This realignment would give counties the flexibility to use child care funds as part of an integrated county strategy to serve low-income families.


Report

Special Education

February 19, 2003 - We recommend the State Department of Education report at budget hearings on the likelihood that the federal Department of Education would grant California a waiver of the special education maintenance of effort requirements for 2003-04.


Report

Instructional Materials

February 19, 2003 - We recommend that the Legislature enact legislation to allow materials adopted in the interim adoptions required under Chapter 481, Statutes of 1998 (AB 2519, Poochigian), to be recognized as standards-aligned materials for the purposes of eligibility for categorical programs.