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Report

The 2020-21 Budget: California Department of Food and Agriculture

February 28, 2020 - In this analysis we assess the Governor’s 2020‑21 budget proposals for the California Department of Food and Agriculture (CDFA). Specifically, we make recommendations regarding the Governor’s proposals to (1) fund a comprehensive assessment to identify solutions to the California Exposition and State Fair’s (Cal Expo) declining revenues and make available funding to offset near‑term deficiencies, and (2) establish a Fresno‑Merced innovation corridor to boost the region’s economy.

Report

The 2020-21 Budget: Effectively Managing State Prison Infrastructure

February 28, 2020 - Given the magnitude of the state’s prison infrastructure needs, combined with the possibility of closing a prison in the near future, it will be important for the state to think strategically about managing its prison infrastructure—both in the near term and long term. In this report, we (1) provide an overview of the state’s prison infrastructure, (2) discuss the major drivers of prison infrastructure needs and spending, and (3) provide a road map to guide the Legislature in the development of a plan to strategically manage the state’s prison infrastructure.

Report

The 2020-21 Budget: Re-Envisioning Medi-Cal—The CalAIM Proposal

February 28, 2020 - In this report, we provide an overview and assessment of the Governor's California Advancing and Innovating Medi-Cal (CalAIM) proposal, also known as Medi-Cal Healthier California for All. CalAIM would make far-reaching reforms to Medi-Cal that would increase the program’s focus on its high-cost and high-needs enrollee populations, transform and streamline Medi-Cal managed care, extend components of a current federal waiver, and rethink how behavioral health services are financed and delivered.

Post

The 2020-21 Budget: California Public Utilities Commission

February 27, 2020 - The Governor’s budget proposes $1.7 billion for the California Public Utilities Commission. In this post, we provide our recommendations on the proposed budget for the California LifeLine Program.

Hearing Handout

California’s Homelessness Challenges in Context

February 27, 2020 - Senate Budget and Fiscal Review Committee

Report

The 2020-21 Budget: California Student Aid Commission

February 27, 2020 - In this brief, we provide an overview of the Governor’s proposed budget for the California Student Aid Commission (CSAC). We then (1) assess the Governor’s Cal Grant cost estimates, (2) analyze the Governor’s proposal to fund a student loan outreach initiative, and (3) analyze the Governor’s state operations proposals for CSAC.

Report

The 2020-21 Budget: Reinventing the Department of Business Oversight

February 26, 2020 - The Governor proposes budget trailer legislation to make various changes related to the Department of Business Oversight. In this report, we assess the Governor's proposals and make recommendations for the Legislature to consider.

Hearing Handout

Local Government Revenues and Impact Fees

February 26, 2020 - Presented to: Senate Governance and Finance Committee Hon. Mike McGuire, Chair Senate Housing Committee Hon. Scott D. Wiener, Chair Assembly Local Government Committee Hon. Cecilia M. Aguiar-Curry, Chair Assembly Housing and Community Development Hon. David Chiu, Chair

Hearing Handout

Cannabis: Proposed Consolidation of Regulation and Identifying the Elements of the Illicit Market

February 25, 2020 - Assembly Budget Subcommittee No. 4 on State Administration Assembly Business and Professions Committee

Report

The 2020-21 Budget: Resources and Environmental Protection

February 25, 2020 - In this report we assess several of the Governor's 2020-21 budget proposals in the natural resources and environmental protection program areas. This includes reviews of the Governor's proposals related to the Department of Toxic Substances Control, Department of Parks and Recreation, and the Department of Fish and Wildlife.

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The 2020-21 Budget: Governor’s Information Security Proposals

February 25, 2020 - One of the priorities of the Governor’s proposed 2020‑21 budget is to improve information security (IS) across state government entities. The proposed budget includes resource requests for the entities that govern IS for the entire state to increase their operational capacity, as well as resource requests for individual government entities to expand and improve their IS programs. This budget and policy post provides relevant information about state IS strategy to help the Legislature consider each of these requests.

Hearing Handout

Overview of Community Care Licensing and Board and Care Facilities

February 24, 2020 - Presented to: Senate Human Services Committee Hon. Melissa Hurtado, Chair

Report

The 2020-21 Budget: Department of Social Services

February 24, 2020 - This brief provides information, analysis, and key issues to consider in evaluating the Governor’s 2020-21 budget proposals for the major programs in Department of Social Services.

Report

The 2020-21 Budget: Proposition 98 Education Analysis

February 24, 2020 - In this report, we assess the Governor’s overall Proposition 98 budget and his specific proposals for K-12 education. Of the $3.7 billion in new Proposition 98 funding for 2020-21, the budget dedicates $2 billion for one-time initiatives and $1.7 billion for ongoing augmentations. Nearly all of the ongoing funding is to cover an estimated 2.29 percent cost-of-living adjustment for various K-14 programs. Total K-12 funding per student would grow to $12,619 in 2020-21, an increase of $499 (4.1 percent) over the revised 2019-20 level. Most of the one-time proposals in the Governor’s budget seek to address longstanding issues in K-12 education. Many of the proposals, however, seem unlikely to have much long-term effect on these issues. We also are concerned that many proposals are missing important details regarding how the funds would be spent. We recommend the Legislature reject most of these proposals, freeing up more than $1 billion in Proposition 98 funding. We think the Legislature should consider using the freed-up funds to provide fiscal relief to districts. Although the Legislature has various options for providing fiscal relief, we think making additional payments toward districts’ unfunded pension liabilities would offer the greatest fiscal benefit. Paying down these liabilities would improve the funding status of the pension systems and likely reduce district costs over time.

Correction 2/26/20: Corrected reference to the cost of the Governor’s education workforce proposals.

Report

The 2020-21 Budget: Taxation of E-Cigarettes

February 24, 2020 - In this report, we discuss issues for the Legislature to consider as it decides whether to change the state’s approach to taxing e‑cigarettes. We find that a tax based on nicotine content has some advantages. We also suggest that the Legislature consider a wide range of possible tax rates. Once the Legislature has chosen a rate, we recommend indexing the rate to inflation and revisiting it frequently to assess whether further adjustments are warranted. If the Legislature chooses to enact a new tax on e‑cigarettes, we recommend that it take an approach to revenue allocation that prioritizes flexibility.