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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.

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

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.

Report

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.

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.

Report

The 2020-21 Budget: Governor's Wildfire-Related Proposals

February 21, 2020 - While wildfires have always been a natural part of California’s ecosystems, recent increases in the severity of wildfires and the adverse impacts on communities have increased the focus on the state’s ability to effectively prevent, mitigate, and respond to wildfire risks. This report has two parts. First, we assess the state’s approach to addressing wildfire risks in light of the complex challenges that make an efficient and effective approach difficult. Second, we evaluate the Governor’s various wildfire‑related budget proposals in the absence of having a statewide strategic wildfire plan.

Report

The 2020-21 Budget: Early Education Analysis

February 21, 2020 - In this report, we provide an overview of the Governor’s early education proposals, then analyze his three major early education proposals. Specifically, we analyze his proposals to (1) expand the number of full‑day preschool slots, (2) create a new department to administer child care programs, and (3) fund facilities for more preschool programs.

Handout

Impact of Recent Criminal Justice Policies on the State’s Inmate Population

February 20, 2020 - Presented to: Senate Budget and Fiscal Review Committee and Hon. Holly J. Mitchell, Chair

Report

The 2020-21 Budget: The Governor's IT Project Proposals

February 20, 2020 - This report provides an overview of the proposed and approved IT projects in the Governor’s proposed 2020-21 budget. We first provide relevant background information on the state’s IT project approval process, approaches to development and implementation of projects once approved, maintenance and operation of IT systems once completed, and requirements for state government entities to request resources for projects through the budget process. We then identify and summarize the budget requests to plan proposed projects and to develop and implement projects (whether proposed or approved).

Report

The 2020-21 Budget: Higher Education Analysis

February 20, 2020 - In this report, we analyze the Governor’s higher education budget proposals. Similar to last year, these proposals are wide ranging—including large base increases; targeted increases for apprenticeship programs and food pantries; one-time initiatives relating to extended education programs, work-based learning, faculty diversity, and animal shelters; and many facility projects.