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Report

The 2020-21 Budget: The Governor’s Homelessness Plan

February 11, 2020 - In this report we provide the Legislature context for the state’s homelessness crisis, provide an update on major recent state efforts to address homelessness, assess the Governor’s 2020‑21 homelessness plan, propose a framework to help the Legislature develop its own plan and funding allocations, and offer an alternative to the Governor’s 2020‑21 budget proposal.

Report

The 2020-21 Budget: Staffing to Address New Independent Contractor Test

February 11, 2020 - The 2020‑21 Governor’s budget includes two labor proposals related to Chapter 296 of 2019 (AB 5, Gonzalez), a new law that limits what types of work businesses can hire independent contractors to do. In this post, we provide a background on the new law, discuss how many workers it might affect, and make recommendations about the workload proposals at the Department of Industrial Relations (DIR) and the Employment Development Department (EDD).

Report

The 2020-21 Budget: Structuring the Budget

February 10, 2020 - California has made significant progress in recent years to make its budget more resilient. Yet the process of achieving resilience can never be considered finished. This report lays out a framework for evaluating the budget’s structure using two key tools: reserves and operating surpluses. Using this framework, we evaluate the Governor’s proposed 2020-21 budget structure. We find that building more reserves or preserving a larger operating surplus would be prudent.

Report

The 2020-21 Budget: Transportation

February 10, 2020 - This report reviews the Governor's 2020-21 budget proposals for the state's transportation departments and programs.

Report

The 2020-21 Budget: California Arts Council

February 7, 2020 - The Arts Council conducts a range of activities in order to support arts in California. In carrying out this mandate, the Arts Council focuses its efforts on the development of various grant programs to support artists and organizations. In addition, the state budget has recently included funds for the Arts Council to distribute to specific museums and other cultural institutions. The Governor’s budget proposes $49 million, mostly from the General Fund, for support of the Arts Council in 2020‑21. As we discuss in this brief, the Governor’s budget proposes $10.5 million from the General Fund on a one‑time basis to expand and extend two existing Arts Council pilot programs­—one focused on state‑designated cultural districts and one focused on disaster preparedness. In order to facilitate the Legislature’s evaluation of these extended pilots when they are complete, we recommend that the Legislature (1) establish clear goals for the pilots and (2) direct the Arts Council to develop and evaluate measureable outcomes related to the goals prior to requesting additional funding for these programs.

Report

The 2020-21 Budget: Analysis of the Department of Developmental Services Budget

February 7, 2020 - The following report assesses the Governor’s proposed 2020‑21 budget for the Department of Developmental Services (DDS), which currently serves about 350,000 individuals with qualifying developmental disabilities in California. We first provide an overview of the budget proposal, including caseload projections and changes in year‑over‑year spending. We then consider four key new policy proposals. First, and most significantly, we consider the Governor’s proposal for a performance‑incentive program, which appears to represent a new direction for the DDS system. Second, we assess the Governor’s proposal to provide supplemental rate increases in additional service categories in 2020‑21. Third, we review a proposal to reduce the caseloads of service coordinators who work with children ages 3, 4, and 5. Finally, we examine the Governor’s proposed additions to DDS’ crisis and safety net services.

Report

The 2020-21 Budget: Assessing the Governor's Reorganization Proposals

February 7, 2020 - As part of his budget plan for 2020‑21, the Governor proposes six government reorganizations across several policy areas. In many cases, the Governor proposes consolidating agencies or shifting responsibilities from existing agencies to newly established entities. The proposals would affect a broad array of state departments, offices, and commissions that perform a wide range of functions. In reviewing the Governor’s reorganization proposals, there are many issues for the Legislature to consider in determining whether to approve or reject each proposal. In this brief, we outline a broad framework to consider these issues. Specifically, we recommend that the Legislature consider key questions when evaluating the proposals.

Report

State Correctional Spending Increased Despite Significant Population Reductions

February 4, 2020 - In this brief, we find that the major reasons why CDCR’s costs did not decline in line with the substantial decrease in the populations are: (1) costly operational changes to comply with various federal court orders, (2) increased employee compensation costs, and (3) the payment of costs that were deferred during the state’s fiscal crisis. However, we note that had the inmate population not declined over this period, CDCR spending would have increased by billions of dollars more than it actually did.

Report

Narrowing California’s K-12 Student Achievement Gaps

January 31, 2020 - In response to concerns over K‑12 student achievement gaps, the Legislature tasked our office with convening a work group on the topic and submitting a report. The required report needed to: (1) examine data on K‑12 student achievement gaps, (2) identify funding provided for disadvantaged and low‑performing students, (3) assess existing state efforts to serve these students, and (4) develop options for better supporting these students. This report responds to these requirements.

Handout

High School Career Technical Education

January 29, 2020 - Presented to: Assembly Education Committee

Report

SB 1 Has Doubled Major Source of State Funding for Local Streets and Roads

January 24, 2020 - SB 1 has increased state funding for local streets and roads by $1.3 billion—a doubling of the previous level of shared revenues—with additional revenue increases projected in current and future years.

Report

Final Evaluation of Community College Bachelor’s Degree Pilot

January 24, 2020 - State law authorizes the California Community Colleges (CCC) to award associate degrees, generally limiting the awarding of more advanced degrees to the state’s universities. As an exception to this rule, Chapter 747 of 2014 (SB 850, Block) authorized CCC to offer bachelor’s degrees on a pilot basis at up to 15 community colleges. Chapter 747 directed our office to conduct an interim evaluation of the pilot by July 1, 2018 and a final evaluation by July 1, 2022. This report reflects our final evaluation.

Handout

Overview of the Governor's Budget

January 23, 2020 - Presented to the Senate Budget and Fiscal Review Committee

Report

The 2020-21 Budget: Overview of Labor and Employment Programs

January 22, 2020 - The 2020-21 Governor’s Budget includes 18 budget proposals related to labor and employment programs. This post provides a high-level overview of these proposals. Our office plans to evaluate several of these proposals more closely in the coming weeks.

Handout

Background on the Department of Developmental Services Rate Study

January 22, 2020 - Senate Budget Subcommittee No. 3 on Health and Human Services