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August 25, 2011 - California’s infrastructure includes a diverse array of capital facilities across many program areas. Additionally, the state provides funding for local public infrastructure such as K-12 schools and local streets and roads. Over the last decade, infrastructure costs have taken up a larger share of the state’s budget, yet the state’s infrastructure demands continue to grow. In this report, we summarize the state’s infrastructure spending and provide ideas for planning and funding future infrastructure. Specifically, we recommend that the Legislature establish a more coordinated process for financing infrastructure. Throughout the report, we also highlight ways the state could manage infrastructure to reduce state costs such as prioritizing the state’s infrastructure investments to the most critical and appropriate programs, adopting strategies to reduce infrastructure demand, and identifying additional revenue to support infrastructure.
August 19, 2011 - As part of the 2011-12 budget plan, the Legislature enacted a major shift—or “realignment”—of state program responsibilities and revenues to local governments. In total, the realignment plan provides $6.3 billion to local governments to fund various criminal justice, mental health, and social services programs in 2011-12, and ongoing funds for these programs annually thereafter. We recommend the Legislature address a few pressing implementation issues before this legislative session ends. We also identify a series of more extensive issues that we recommend the Legislature address in early 2012, such as developing local funding formulas with an eye towards the long term, promoting local accountability, and simplifying the plan’s extensive network of accounts and subaccounts.
August 17, 2011 - Presented to Select Committee on State School Financial Takeovers
August 11, 2011 - The 2011–12 state spending plan includes total budget expenditures of $120.1 billion from the General Fund and special funds. This consists of $85.9 billion from the General Fund and $34.1 billion from special funds. While General Fund spending has dropped by around 6 percent from 2010–11, this has, in part, been offset by increases in special fund spending as the state shifts some programs—from state to local responsibility under what has been called "realignment"—from General Fund support to special fund support. Federal funds spending continues to decline with the expiration of much of the funding made available through the American Recovery and Reinvestment Act.
August 8, 2011 - LAO State Finance Director Jason Sisney appears on the news interview program The Maddy Report, where he is questioned about public employee pensions. His interview is contained in the first two segments of this five segment program.
View on YouTube.
August 5, 2011 - On May 23, 2011, the U.S. Supreme Court issued a ruling in a lawsuit against the state involving prison overcrowding. Specifically, the court upheld the ruling of a federal three–judge panel requiring the state to reduce overcrowding in its prisons to 137.5 percent of its “design capacity” within two years. The court’s decision will almost certainly result in some of the most dramatic changes to the state’s prison system in decades. The realignment plan that the Legislature recently enacted could go a long way toward meeting the court’s requirements. Our analysis, however, indicates that the realignment plan alone is unlikely to reduce overcrowding sufficiently within the two–year deadline set by the court. This indicates to us that, as the U.S. Supreme Court suggested, a somewhat longer timeframe is warranted. In addition, we recommend that the Legislature consider how the overcrowding reduction will affect the types of prison facilities California Department of Corrections and Rehabilitation (CDCR) has planned to build. Finally, we recommend that the Legislature provide CDCR with more flexibility to use contract beds in order to manage overcrowding, particularly in the near term. Addressing these issues would help to better plan for a dramatically reduced state inmate population within the state’s current fiscal situation.
July 21, 2011 - Presented to Fish and Wildlife Strategic Vision, Blue Ribbon Citizen Commission
July 7, 2011 - Beginning in 2008, the Unemployment Insurance (UI) funds of many states, including California’s, were under stress and soon became insolvent. Many states sought loans from the federal government. As of June 2011, California’s outstanding federal loan totaled over $10 billion. Three federal proposals have recently been introduced to address the insolvency issue. All three would improve the solvency of California’s UI fund and two would likely eliminate California’s UI fund deficit by 2016. Regardless of whether Congress acts, we recommend that the Legislature ensure implementation of a long–term solvency plan by 2014. If federal reforms are enacted, it is likely that no additional action by the Legislature will be necessary. However, if no federal reforms are enacted, it will be critically important for the Legislature to adopt its own long–term solvency plan. We recommend that the Legislature consider an approach which includes both increased employer contributions and decreased benefits for UI claimants.
July 5, 2011 - We will not publish a Major Features report in 2011. Instead, in early August we will release The 2011-12 California Spending Plan, which will provide similar information, but in much more detail. Until then the link below points to a 7 page July 1, 2011 handout titled Summary Tables 2011-12 Budget Package.
July 1, 2011 - Summary Tables 2011-12 Budget Package
June 29, 2011 - Presented to Senate Select Committee on the Environment, the Economy,and Climate Change
June 28, 2011 - Assembly Committee on Human Services and Assembly Select Committee on Foster Care Hon. Jim Beall, Chair
June 7, 2011 - This document is a partially updated list of nearly 300 state boards and commissions. This list is based on a search for state boards and commissions that our office completed in 2009. In updating this list, we removed any entities that we know have been abolished since 2009. We post this list with the caveat that Legislative Counsel and the administration have not reviewed it. Without their review, we do not know whether this list includes all state boards and commissions currently in existence. It may be possible, for example, that some boards and commissions have been eliminated or created since 2009 without our knowledge.
June 2, 2011 - Pursuant to Chapter 1124, Statutes of 2002 (AB 3000, Committee on Budget).
May 26, 2011 - Presented to Senate Budget and Fiscal Review Subcommittee No. 1 on Education