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April 4, 2014 - We believe California's child care and development system has several serious design flaws. Most notably, families accessing some subsidized child care programs may choose among a broad array of providers whereas families accessing other programs have access to child care only offered in particular places. In addition, some child care programs are required to include developmentally appropriate activities whereas other programs are required to meet only health and safety standards. While these two elements--choice and developmentally appropriate care--are strengths of specific child care programs, the fundamental shortcoming of California's current system is that no subsidized program exhibits both of these strengths concurrently. Given the serious shortcomings of the state's child care and development system, we recommend the Legislature fundamentally restructure it. Our report lays out a plan for a new, simplified, more rational system that treats similar families similarly. Since a fundamental restructuring would take time, the report also includes a roadmap that the Legislature could use for incrementally moving to this new system.
April 3, 2014 - Presented to: California Association of Chief Business Officers
April 2, 2014 - Presented to: Assembly Budget Subcommittee No. 2 on Education Finance
April 2, 2014 - Presented to CCC All Financial Aid Directors' Meeting
March 28, 2014 - In this report, we analyze the Governor's two main 2014-15 budget proposals for the Commission on Teacher Credentialing (CTC). The Governor proposes to allow CTC to transfer revenue from its test fee account to its primary budget account to help cover cash shortfalls midyear. The Governor also proposes to expand CTC's fee authority by allowing it to begin charging fees for the regular activities it undertakes in accrediting existing teacher preparation programs. Although the Governor's proposal to allow 60-day fund transfers among accounts would provide some cash relief, we recommend the Legislature instead consolidate CTC's revenues into a single, combined account. We also recommend the Legislature work with the administration and CTC to refine budget documents such that fee revenues can be more easily linked with associated expenditures. Additionally, we recommend the Legislature adopt the Governor's proposal to expand accreditation fees, as it is consistent with prior state actions that aim to keep CTC self-supporting. We are concerned, however, that the Governor's proposal does not make any changes to CTC's current costly, labor-intensive accreditation process. We recommend the Legislature require CTC to streamline its process to ensure (1) teacher preparation program standards are clear, concise, and aligned to state academic content standards; (2) accreditation incorporates data on program outcomes; and (3) accreditation is self-supporting.
March 28, 2014 - Presented to Assembly Select Committee on Higher Education in San Diego County
March 27, 2014 - Presented to: Senate Transportation and Housing Committee
March 27, 2014 - In this report, we assess the Governor's proposal to provide state funds for the California State Library to contract with the Corporation for Education Network Initiatives in California (CENIC) in an effort to increase Internet speeds at local libraries. We find that the Governor’s plan is unlikely to increase speeds at many libraries and lacks adequate cost information. We recommend the Legislature reject the Governor’s proposal and instead focus on improving existing state programs designed to increase Internet speeds for libraries as well as other entities.
March 26, 2014 - Presented to Assembly Budget Subcommittee No. 2 on Education Finance
March 26, 2014 - In January 2014, the FI$Cal Project submitted, and the Department of Technology approved, special project report (SPR) 5, which updates the project plans. The SPR 5 includes changes in the project's scope, implementation schedule, and future staffing levels. In this report, we find that SPR 5 reduces overall project risk and make recommendations concerning (1) the project's annual reporting requirement to the Legislature and (2) recruitment and retention issues. Ultimately, we believe that the benefits of proceeding with FI$Cal development outweigh the inherent risks that remain, and therefore recommend approval of the Governor’s budget proposal that reflects a reasonable funding plan to implement the updated project plan (SPR 5).
March 21, 2014 - As required by Chapter 620, Statutes of 2012 (Assembly Bill 970, Fong), we reviewed the University of California’s and California State University’s compliance with certain student fee and financial aid provisions. Enclosed is our report. In the report, we first provide background on fee policies in the state and then describe the main Chapter 620 requirements. We next review the segments’ responses to the requirements in Chapter 620, provide our assessment of their compliance, and offer a few related recommendations for the Legislature’s consideration.
March 20, 2014 - Presented to Assembly Budget Subcommittee No. 2 on Education Finance
March 20, 2014 - For about 100 years, California’s local governments generally could raise taxes without directly securing their residents’ consent. Beginning in 1978, the state’s voters amended the California Constitution several times to require that local government tax increases be approved by local voters. Recently, the Legislature has shown interest in exploring changes to voter-approval requirements for local taxes. Several proposals to place changes before the voters have been introduced during the current legislative session. This report was developed to provide context for discussions about changing these requirements. After a brief introduction to local governments in California, the report (1) summarizes the state's existing system of voter-approval requirements for local taxes, (2) explains how the state's complex voter-approval system evolved, and (3) reviews outcomes of local tax elections over the past 15 years.
March 19, 2014 - In this presentation to the Senate and Assembly public employment committees, we discuss the relationship between a CalSTRS funding plan and Proposition 98, the minimum annual amount of funding required for schools and community colleges in California. Addressing the pension system's large unfunded liabilities likely will require additional payments by the state, districts, and teachers over the next several decades. The presentation discusses a possible "grand bargain" for funding CalSTRS benefits in the future.
March 19, 2014 - In this report, we review the administration’s 2014-15 budget proposal to continue legal activities related to the suspended 21st Century Project (TFC). We find that the Governor’s 2014-15 budget proposes funding for outside legal counsel at roughly one-half of the State Controller's Office's (SCO) estimate of projected costs, and therefore recommend that the Legislature budget the full estimate instead. In addition, we find that an independent assessment of the TFC Project is a necessary precursor to addressing the state’s unmet need for an updated human resources management and payroll system. As the Governor's proposal lacks such an assessment, we recommend the Legislature appropriate additional resources to SCO for such an assessment. We provide details on what such an assessment should include.