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Report

Lowering the State's Costs For Prescription Drugs

February 17, 2005 - State agencies purchase about $4.2 billion annually in prescription and nonprescription drugs as part of their responsibilities to deliver health care services to their program recipients. Our review—which focused on 10 percent of these purchases—found several deficiencies in the state's procurement of drugs which lead to it paying higher costs than necessary. We make a number of recommendations to correct these procurement and administrative deficiencies which would, if implemented, generate savings totaling tens of millions of dollars annually.


Other

The Impact of SB 740 on California’s Nonclassroom-Based Charter Schools (RAND Corporation)

February 16, 2005 - Chapter 892, Statutes of 2001, (SB 740, O’Connell), directed our office to extend our contract with the RAND Corporation to include an assessment of the state’s process for funding nonclassroom-based charter schools. RAND found that the state’s funding determination process had reduced nonclass-room-based charter schools’ possible misuse of funds. The process also resulted in non-classroom-based schools increasing spending on instruction and teacher compensation. It did not, however, result in an increase in students’ exposure to teachers. Compared to the state’s existing “threshold” funding approach, RAND suggests the state use a more holistic funding determination process that still could detect possible financial wrong-doing without triggering automatic funding cuts for schools that might have reasonable justifications for their different expenditure patterns. Report Summary


Report

Evaluating the Administration's California Rx Proposal

February 10, 2005 - Our analysis indicates that the Governor's California Rx plan for drug discounts for the uninsured provides a reasonable starting point for the development of such a program. However, we propose, among other changes, that in the event that drug makers fail to make good on their promises for significant price concessions, an automatic trigger would phase-out the proposed voluntary approach to obtaining rebates from drug manufacturers, and be replaced by an alternative strategy likely to result in greater discounts on more drugs for consumers.
A related report—Lowering the State's Costs For Prescription Drugs—which addresses the state's purchasing of drugs for its own programs, will be released shortly.


Handout

Preschool and Child Care Overview

February 9, 2005 - Presented to a joint hearing of the Senate Budget and Fiscal Review Subcommittees No. 1 and No. 3 on February 9, 2005.


Report

Proposition 98 Primer

February 8, 2005 - Proposition 98 is a complex formula for setting a minimum annual funding level for K-12 schools and community colleges. This primer is intended to assist the Legislature in understanding the basic "mechanics" of the proposition and showing how it has affected school spending since its passage in 1988. We also describe the Governor's proposed changes to Proposition 98 and discuss our concerns about how they would diminish legislative budget authority.


Handout

Thoughts on State Categorical Programs in California

February 7, 2005 - Presented to the Senate Rules Committee on February 2, 2005.


Report

Design-Build: An Alternative Construction System

February 3, 2005 - We examine the advantages and disadvantages of the design-build method compared to the traditional design-bid-build method and find that design-build can be a useful option for some public construction projects. We make recommendations for statutory changes to provide that option while preserving the public's confidence in the procurement process, quality control, and access for small contractors to public contracts.


Handout

California’s Tax System and the Economy

February 2, 2005 - Presented to the Senate Committee on Revenue and Taxation


Handout

Key Issues Facing the State Board of Education

February 2, 2005 - Presented to the Senate Rules Committee on February 2, 2005.


Report

California Highway Patrol: Enhancing Road Patrol Service Through Efficiencies

January 31, 2005 - We suggest a number of measures to address workload growth in CHP's road patrol program. Most of these changes give the Legislature the opportunity to increase in-view patrols with existing levels of funding for CHP. Specifically, by making various changes to CHP's current policies, processes, and procedures—as well as to the way it allocates and uses uniformed and nonuniformed staff—the department can free up substantial resources, potentially in the hundreds of uniformed officers, for proactive patrols, thereby enhancing CHP's road patrol service throughout the state.


Report

Hard Decisions Before the Legislature: Toll Bridge Seismic Retrofit

January 24, 2005 - The administration recently estimated that the toll bridge seismic retrofit program will require an additional $3.2 billion to complete and has recommended changing the Bay Bridge's design to save money. The Legislature faces two key decisions: (1) whether to approve a redesign of the Bay Bridge east span and (2) how to fund the program's completion. Redesigning the Bay Bridge could save money, but also raises the risk of cost and schedule increases that could more than offset the savings. Funding should come from both state and local sources, and the Legislature has several options regarding the sources used and the amount to provide from each.


Report

Revenue Volatility In California

January 20, 2005 - Following the boom-bust revenue cycle in recent years, concerns have developed about volatility in California's General Fund revenues. This brief quantifies the amount of revenue volatility experienced in California during the past quarter century, identifies the main causes of the volatility, and discusses the outlook for volatility in the future. We also highlight some options for reducing future impacts of volatility—both those involving changes to the tax system and budgetary changes—and discuss the trade-offs inherent in each of the alternatives.


Report

Improving Coastal Access And Development Mitigation

January 19, 2005 - The Legislature has made protection of and access to California's 1,100 miles of coastline a statewide priority. While the California Coastal Commission has made progress toward protecting California's coastline, certain of the commission's permitting practices have temporarily reduced, and may permanently reduce, the public's access to the coast. The Coastal Commission's mitigation strategies include owners offering to dedicate (OTD) portions of their property to public use as a condition of receiving a coastal development permit. We make a number of recommendations focused on encouraging more upfront mitigation of coastal development, finding a more appropriate funding source for mitigation, and shortening the timeframes for acceptance and opening of OTDs.


Report

Overview of the 2005-06 Governor's Budget

January 12, 2005 - The Governor's proposal contains significant program savings—particularly in K-12 education, social services, and transportation—and borrowing to address the state's 2005-06 budget shortfall. While the 2005-06 proposal has several positive attributes, it falls well short of fully addressing the state's ongoing projected fiscal imbalances. Moreover, its budget reform proposals would put more future state spending on "cruise control" and hamper the ability of future policy makers to establish budget priorities.


Report

Tax Agency Consolidation: Remittance and Return Processing

January 10, 2005 - The physical consolidation of remittance and return processing activities of the Franchise Tax Board, the Board of Equalization, and the Employment Development Department would likely result in some savings in the medium and long term. It would also require a significant investment of funds in the near term in order to make such a consolidation feasible. Expanding the opportunities for electronic processing at all three agencies provides an alternative means of achieving savings in the long term while improving tax agency performance at the same time.