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January 29, 2010 - For the special session, the Governor proposes solutions for social services programs totaling $121 million in 2009‑10 and $2.6 billion in 2010‑11. The state Department of Social Services (DSS) oversees most of these programs. There are two main types of proposed solutions: expenditure reductions and fund shifts (federal, county, and special funds). In addition to the General Fund savings, adoption of this package would result in the loss of about $3 billion in federal funds, assuming that the American Recovery and Reinvestment Act (ARRA) is extended through June 30, 2010. In this piece we provide our analysis of the Governor’s proposals, in some cases offer alternative approaches, and recommend the actions that we believe the Legislature should take on them at this time.
January 28, 2010 - Presented to: Senate Budget and Fiscal Review Committee Hon. Denise Moreno Ducheny, Chair
January 28, 2010 - California’s approach to coordination of the state's higher education system over the past 50 years has been indirect, resting mostly on well–defined missions and eligibility pools to guide the development of higher education institutions. This approach worked well during several decades of expansion, producing arguably the greatest higher education system in the world. The effectiveness of this approach has declined over the last quarter century, however, and institutions have been left to pursue their separate interests with insufficient mechanisms to advance the state’s priorities. This report examines the need for a systemwide approach to planning and coordination of California’s system of higher education, and proposes strategies for improvement.
January 27, 2010 - In this 5-minute video, analyst Judy Heiman discusses the LAO Report "Greater Than the Sum of Its Parts--Coordinating Higher Education in California."
January 27, 2010 - This report discusses some key issues facing the Legislature in the employee compensation area of the budget. In 2009–10, the state has achieved significant savings due to the Governor’s furlough program, which is being challenged in many court cases. For 2010–11, the Governor proposes various measures to reduce state personnel costs, including shifting pension contribution costs from the state to employees, unallocated reductions in personnel budgets of departments, and an across–the–board salary reduction for employees. These proposals would result in $2.5 billion in savings ($1.4 billion General Fund). We believe that employee compensation reductions are necessary due to the magnitude of the budget problem. Nevertheless, some of the administration’s proposals would face legal challenges or otherwise may be difficult to implement. Consequently, we recommend that the Legislature focus efforts to reduce compensation costs on pay reduction options. Special session.
January 27, 2010 - This policy brief examines the Governor’s special session proposal to generate additional state revenues from penalties imposed on drivers who are caught speeding through the use of automated speed enforcement (ASE) systems. In this brief, we outline how ASE systems would work, assess the administration’s estimate of new state revenues from this approach, and provide our comments and recommendations on the proposal.
January 26, 2010 - In his January budget, the Governor proposed a state constitutional amendment that would require reductions in spending on state corrections, with corresponding increases in spending for public universities. Beginning in 2014–15, the state would be required to dedicate no more than 7 percent of state General Fund spending to corrections and no less than 10 percent to public universities. We urge the Legislature to reject this proposal because it (1) would unwisely constrain the state’s ability to allocate funding where it is most needed each year; and (2) is unnecessary, as the state already has the ability to shift funding among programs without this constitutional amendment. Special session.
January 25, 2010 - Presented to Legislative Staff
January 25, 2010 - As part of the January 2010 special session to begin bringing the 2009‑10 and 2010‑11 budgets into balance, the Governor proposes statutory changes to reduce the state’s inmate and parolee populations. Specifically, the Governor proposes to require that offenders who have no prior serious or violent offenses and are convicted of certain property and drug felony crimes serve a maximum sentence of one year and one day in county jail in lieu of a state prison sentence. The administration estimates that, if approved by March 1, 2010, these changes would reduce state correctional costs by $25.2 million in 2009‑10 and $291.6 million in 2010‑11. In this brief, we (1) analyze the Governor’s proposal, particularly in the context of recent policy actions to reduce the inmate and parole populations, and (2) recommend modifying the Governor’s proposal to permit counties to place additional jail inmates on electronic home monitoring.
January 22, 2010 - The Governor’s various proposed actions to obtain savings in the current and budget years through actions in the special session have significant implications for the state’s health services programs. In this report, we (1) discuss some of the key overriding issues relating to the Governor’s plan, (2) summarize the Governor’s health budget proposals, and (3) provide our initial comments on a number of the major proposals in each specific program area. We note that we are still receiving information about these proposals from the administration that may prompt us to modify our recommendations. (Revised: 1/24/2010)
January 21, 2010 - Presented to Senate Budget and Fiscal Review Committee
January 21, 2010 - Presented to Senate Budget and Fiscal Review Committee
January 21, 2010 - Presented to Senate Budget and Fiscal Review Committee
January 21, 2010 - Presented to Senate Budget and Fiscal Review Committee
January 21, 2010 - In this seven minute video, analyst Ginni Bella Navarre summarizes the findings from our report, Considering the State Costs and Benefits: In-Home Supportive Services Program.