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Resources Report

Report

Budget Status of State Water Project

February 21, 2007 - We recommend that funding for the State Water Project (SWP), the state’s main water conveyance system connecting Northern and Southern California, be brought "on budget." This is because SWP’s current off-budget status makes it difficult for the Legislature to comprehensively address the state’s water policy issues, particularly in light of SWP’s increasing fiscal and programmatic ties to other state on-budget programs, such as the CALFED Bay-Delta Program.


Report

Flood Management Issues

February 21, 2007 - The budget reflects a major infusion of funding, mostly from bond funds, for flood management. We make a number of recommendations to ensure that a systematic approach is used to complete improvements and repairs to the state’s Central Valley flood control system, including requiring the Department of Water Resources to provide a plan for independent review and oversight of its flood-related capital outlay projects.


Report

Resources Bonds

February 21, 2007 - The budget proposes over $2.3 billion in bond funding for various resources programs, most of which comes from two resources bonds approved by voters in November 2006. The state would spend substantially higher bond amounts than in the current year, particularly for flood management. To ensure the effective and efficient implementation of the new bonds, we recommend that the Legislature set funding priorities to guide new programs created by the bonds; establish appropriate cost-sharing arrangements; ensure related programs are coordinated; and exercise oversight by holding hearings, establishing reporting requirements, and controlling administrative costs. review infrastructure


Report

Analysis of the 2007-08 Budget Bill, Resources Chapter

February 21, 2007 - Analysis of the 2007-08 Budget Bill, Resources Chapter


Report

Strengthening Public Safety of Waste Facilities and Surface Mines: Financial Assurances

April 26, 2006 - The state has long recognized its responsibility to protect the general health and safety of the people of California. To protect Californians from hazards posed by waste facilities and surface mines, the state’s environmental regulatory agencies require financial assurances from the owners/operators of these facilities-evidence that these parties have the financial capacity to restore public resources that they degrade. This report details California’s existing financial assurance requirements, examines shortcomings with the current financial assurance system, and recommends improvements. Adoption of our recommendations should decrease the likelihood that financial assurances will fail to serve their public purpose, thereby reducing the state’s exposure to significant financial risk in the future.


Report

Beverage Container Recycling

February 23, 2006 - As the state’s beverage container recycling rates persist below statutory targets, the balance in the Beverage Container Recycling Fund continues to swell. We recommend that the Legislature consider options to reduce the fund balance, both by reducing monies that flow into the fund and by increasing monies that flow out of the fund to support activities intended to increase the rate of recycling.


Report

Ensuring Access to Telecommunications Services

February 23, 2006 - The California Public Utilities Commission administers several programs designed to subsidize telecommunications services in order to ensure universal access to these services. One of these is the California Teleconnect Fund (CTF) program, which provides discounts to schools, libraries, public hospitals and clinics, and community-based organizations (CBOs). While most of the eligible schools and libraries participate in the program, many eligible CBOs and public hospitals and clinics do not. We provide options to increase participation in the program by eligible entities.


Report

School Land Bank Fund Investments

February 23, 2006 - The Legislature intended that the monies in the School Land Bank Fund, managed by the State Lands Commission, be invested in land acquisitions that would generate revenue for the Teachers’ Retirement Fund (TRF). However, our review finds that the commission made no such investments over the past five years, nor does it propose to in the budget year. We therefore recommend that the balance in the School Land Bank Fund be transferred directly to TRF for investment by the California State Teachers’ Retirement System.


Report

Addressing State’s Flood Management Problems

February 23, 2006 - The budget proposes increased funding for flood management activities in the Department of Water Resources. Due to the critical need to improve the Central Valley flood control system, we recommend approval of this proposal. The Legislature will be evaluating other flood management proposals this session, including the Governor’s in his Strategic Growth Plan ($2.5 billion of bonds). When evaluating these proposals, the Legislature should consider: (1) the role of bond funding, (2) the relationship between land use and flood control, (3) application of “beneficiary pays” financing, and (4) the potential for increased state oversight of levees in the Delta region that are outside the Central Valley flood control system.


Report

Wildland Firefighters’ Employee Compensation

February 23, 2006 - A contract signed between the state and firefighters in the California Department of Forestry and Fire Protection will result in significantly increased employee compensation costs and additional staffing resources for the department. We think that is important for the Legislature—who must approve labor contracts—to have full information on the fiscal impact of changes to the department’s staffing resources, and whether less costly alternatives exist. We recommend the enactment of legislation to ensure that the Legislature is provided with sufficient information on the fiscal impacts of future contracts.


Report

Governor’s Hydrogen Highway Initiative

February 23, 2006 - Last year, the Legislature approved $6.5 million as initial, one-time funding for the Governor’s Hydrogen Highway Initiative. The budget proposes to increase funding for the Hydrogen Highway Initiative by an additional $6.5 million in 2006-07. We think that the requested funding is premature until the board submits a statutorily required report that will enable the Legislature to evaluate whether continued funding for this purpose is warranted.


Report

Governor’s Climate Change Initiative

February 23, 2006 - The budget proposes $7.2 million across several departments to implement the first steps in the Governor’s Climate Change Initiative—a series of strategies designed to reduce the state’s emissions of greenhouse gases (GHG). We recommend that the Legislature provide statutory direction for a state climate change policy that addresses a number of issues, including GHG emission reduction targets, the appropriate mix of regulatory and voluntary strategies, and lead agency designation.


Report

Fish and Game Fiscal Problems

February 23, 2006 - The budget fails to address the long-term structural deficit in the Fish and Game Preservation Fund (FGPF)—the fund into which revenues from the sales of hunting and fishing licenses are deposited and the department’s largest source of support. We recommend steps for the Legislature to take to address the long-term deficit problem. We further recommend that the Legislature conduct oversight hearings on the department’s fiscal problems and performance in carrying out its program responsibilities.


Report

Reforming the CALFED Bay-Delta Program

February 23, 2006 - Four independent management and fiscal reviews have come to similar conclusions: (1) the current CALFED governance structure is not working well, (2) state priorities for CALFED are not clear, and (3) meaningful performance measures for the program are lacking. However, the Governor’s CALFED budget proposal is “business as usual.” To accomplish a needed overhaul, we recommend the enactment of legislation addressing the governance problems, setting expenditure priorities, establishing performance measures that tie to the budget process, and defining the beneficiary pays funding principle.


Report

Analysis of the 2006-07 Budget Bill, Resources Chapter

February 23, 2006 - Analysis of the 2006-07 Budget Bill, Resources Chapter