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Report

The 2012-13 Budget: Overview of the Governor's Budget

January 11, 2012 - The Governor’s proposed tax initiative is the cornerstone of his 2012-13 budget plan, which includes proposals to restructure education finance, reduce social services and child care programs substantially, and implement trigger cuts--primarily affecting schools--if voters do not approve the tax measure. The Governor’s plan would continue the difficult task of restoring the state budget to balance, but the difficulty in knowing how much taxable income will be attributable to high-income Californians makes the state’s revenue estimates an even bigger question mark than usual. With regard to the Governor’s major proposals, we think the Governor’s education restructuring proposals would institute lasting improvements to the system, and we observe that, while his social services and child care proposals have merit, they involve considerable drawbacks as well, given potentially severe impacts on affected families. Moreover, while the Governor’s tax initiative would improve the financial outlook of public education over the next several years, his trigger plan would create significant uncertainty for educational institutions in their planning for 2012-13. The Legislature needs to be very deliberate in structuring a workable trigger package and designing tools to help schools respond to potential trigger cuts.


Other

Who Pays Education Costs at California’s Public Colleges and Universities?

January 11, 2012 - Who Pays Education Costs at California’s Public Colleges and Universities? (updated November 2009). This is one of a series of issue briefs examining important questions about higher education funding in California. For more information on this topic, or to request other briefs from this series, contact the Legislative Analyst’s Office Higher Education section at (916) 319-8349, or visit our Web site at www.lao.ca.gov/highered.


Report

Improving Higher Education Oversight

January 6, 2012 - Supplemental report language approved in the 2011 legislative session seeks the LAO's recommendations on the structure and duties of a statewide higher education coordinating body for California. The state currently has no coordinating body, following the Governor’s veto of funding for the California Postsecondary Education Commission in the 2011-12 budget. This report finds a need for robust and deliberate state oversight that enables policymakers to monitor how efficiently and effectively the postsecondary system is serving the state’s needs, and to make changes to improve its performance. This report includes both longer-term recommendations for creating a new state oversight structure as well as interim steps the Legislature could take to help guide the state’s postsecondary policy in the absence of a new agency. In the accompanying video, the LAO's Steve Boilard and Judy Heiman discuss the topic further.


Letter

Letter to Assembly Member Dickinson Regarding Small Special Districts and Local Agency Formation Commissions

January 5, 2012 - Letter to Assembly Member Dickinson regarding the 1) efficiency of small special districts, 2) accountability of small special districts, and 3) effectiveness of Local Agency Formation Commissions (LAFCOs).


Report

An Alternative Approach: Treating the Incompetent to Stand Trial

January 3, 2012 - Over the past several years, the state has experienced waitlists in county jails to transfer those deemed incompetent to stand trial (IST) to state hospitals for treatment. In response to the waitlist, which averages between 200 and 300 individuals a month, the Department of Mental Health began a pilot program in San Bernardino County to treat ISTs in county jail instead of at a state hospital. This report finds that the pilot program has greater flexibility to hold down costs and has been able to restore ISTs to competency in a shorter amount of time than state hospitals. We find that if the pilot program is expanded, it has the potential to significantly reduce the waitlist, as well as reduce costs to the public sector.


Handout

Current State R&D Tax Credits

December 5, 2011 - Presented to Assembly Revenue and Taxation Committee


Report

Streamlining State Financial Aid: Report on Cal Grant Alternative Delivery Pilot

December 5, 2011 - Legislation in 2009 authorized a pilot program whereby college and university campuses could voluntarily administer certain Cal Grant programs that are normally administered centrally by the Student Aid Commission (CSAC). The CSAC developed regulations for the pilot in time for the 2010-11 academic year. No campuses volunteered to participate, however, due to cumbersome program requirements. This report provides background on the existing delivery model for financial aid programs; describes recent proposals for alternative delivery models; and chronicles the development, implementation, and outcomes of the pilot program. The report concludes with our recommendation, drawing on numerous studies over the last two decades, to decentralize Cal Grants through a process that includes a planning period but no pilot phase.


Handout

K-12 Mandates Overview

December 1, 2011 - Presented to Joint Oversight Hearing: Education Mandates


Other

How Will the California Dream Act Affect Higher Education Costs?

November 30, 2011 - How Will the California Dream Act Affect Higher Education Costs? This is one of a series of issue briefs examining important questions about higher education funding in California. For more information on this topic, or to request other briefs from this series, contact the Legislative Analyst’s Office Higher Education section at (916) 319-8349, or visit our website at www.lao.ca.gov.


Handout

Governance and Funding Options for Restoring the Salton Sea

November 29, 2011 - Presented to: Assembly Budget Subcommittee No. 3 on Resources and Transportation


Handout

High-Speed Rail Authority: The Draft 2012 Business Plan and Funding Plan

November 29, 2011 - Presented to: Assembly Transportation Committee


Handout

California’s Fiscal Outlook: Proposition 98 Briefing

November 23, 2011 - Presented to Legislative Staff


Handout

California Fiscal Outlook -- CASBO Presentation

November 17, 2011 - Presented to CASBO


Handout

Information Technology Procurement

November 17, 2011 - Presented to theAssembly Select Committee on Government Efficiency, Technology and Innovation and the Assembly Budget Subcommittee No. 4 on State Administration


Report

The 2012-13 Budget: California’s Fiscal Outlook

November 16, 2011 - We forecast that General Fund revenues and transfers in 2011-12 will be $3.7 billion below the level assumed in the June budget package. Such a shortfall could result in $2 billion of “trigger cuts” to various programs—including all of the “Tier 1” trigger cuts and three-fourths of the “Tier 2” cuts. (The Director of Finance will determine the actual amount of such cuts next month.) In 2011-12, we project that the state will have a $3 billion deficit, including the effects of these trigger cuts. In 2012-13, the state will face higher costs due to expiration of a number of temporary budget measures, an increase in Proposition 98 school costs under current law, the repayment of its Proposition 1A property tax loan, and other factors. We project a $10 billion operating shortfall (the difference between annual revenues and expenditures) in 2012-13. The $3 billion “carry-in” deficit from 2011-12 and the projected $10 billion operating shortfall mean that the Legislature and the Governor will need to address a $13 billion budget problem between now and the time that the state adopts a 2012-13 budget plan.