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Handout

The 2020-21 Budget: Climate Change Proposals

February 18, 2020 - Presented to: Senate Budget and Fiscal Review Committee Hon. Holly J. Mitchell, Chair

Report

The 2020-21 Budget: The Governor’s Cannabis‑Related Proposals

February 14, 2020 - The Governor’s 2020-21 budget includes various cannabis-related proposals, including both budget trailer legislation and budget change proposals from multiple departments. In this report, we (1) provide some background on cannabis regulation and taxation in California; (2) describe the Governor’s proposals; and (3) provide recommendations on these proposals for legislative consideration.

Report

The 2020-21 Budget: Analysis of the Medi-Cal Budget

February 14, 2020 - In this report, we provide high‑level background on the Medi‑Cal program and an overview of the major drivers of year‑over‑year spending changes in the Governor’s budget. We also discuss the administration’s recent submittal (late January 2020) of a modified managed care organization (MCO) tax proposal. We then provide analysis and recommendations on a series of key issues: (1) Recently proposed draft federal regulations referred to as the “Medicaid Fiscal Accountability Regulation;” (2) proposals related to the Medi‑Cal pharmacy services benefit; (3) the Governor’s proposal to expand comprehensive Medi‑Cal coverage to otherwise eligible seniors regardless of immigration status; (4) proposed changes to rate‑setting for skilled nursing facilities; (5) issues related to county administration of eligibility and enrollment functions in Medi‑Cal; and (6) the Governor’s proposal to end dental managed care in the current two pilot counties and instead provide dental care as a fee‑for‑service benefit statewide. We conclude this report with a summary of our recommendations.

Corrected 2/20/20: Corrected to remove Alameda County from the list counties participating in the Coordinated Care Initiative.

Handout

Calbright College and Online Instruction at the California Community Colleges

February 13, 2020 - Presented to Senate Education Committee and Senate Budget Subcommittee No. 1

Handout

California’s Homelessness Challenges in Context

February 13, 2020 - Presented to Assembly Budget Subcommittee No. 6: Budget Process, Oversight, and Program Evaluation

Report

The 2020-21 Budget: Climate Change Proposals

February 13, 2020 - This report assesses the Governor’s major 2020-21 budget proposals related to climate change. The four proposals we evaluate are the Governor's (1) cap-and-trade expenditure plan ($965 million), (2) expanded climate adaptation research and technical assistance activities ($25 million), (3) new Climate Catalyst loan fund ($250 million), and (4) climate bond ($4.75 billion).

Report

The 2020-21 Budget: Governor’s Proposal to Transfer the Seismic Safety Commission

February 12, 2020 - Various state departments are involved in seismic safety. In particular, the Alfred E. Alquist Seismic Safety Commission (SSC) is an independent entity under the Business, Consumer Services, and Housing (BCSH) Agency. The Governor proposes budget trailer legislation that would make various changes related to the SSC, including reorganizing it into a unit within OES and reducing the number of commissioners from 20 to 15. We find that the Governor’s proposal presents important trade‑offs for the Legislature to consider.

Report

The 2020-21 Budget: Department of General Services

February 12, 2020 - In this analysis, we assess the Governor’s 2020‑21 budget proposals for the Department of General Services (DGS). Specifically, we review and make recommendations regarding the Governor’s proposals for (1) additional staff for Contracted Fiscal Services (CFS) workload, including the establishment of a new strike team to assist departments performing accounting activities with the Financial Information System for California (FI$Cal); (2) renovating the Resources, Bateson, and Unruh buildings, and (3) funding elevator and fire system‑related deferred maintenance projects.

Perspective

Taking Stock of California’s Recession Readiness

February 12, 2020 - In this installment of Fiscal Perspectives, Legislative Analyst Gabriel Petek discusses why, even with high budget reserve balances, it is prudent for the Legislature to continue assessing and strengthening the state’s fiscal capacity. The post also discusses how maintaining an operating surplus in the state’s multiyear budget plan can supplement reserves as an instrument of fiscal resilience. Petek makes the case that there is a particularly strong argument for doing so in the context of a mature economic expansion.

Report

The 2020-21 Budget: Analysis of the Department of State Hospitals Budget

February 11, 2020 - The Governor’s budget proposes $2.3 billion for the Department of State Hospitals (DSH) in 2020‑21—an increase of $232 million (11 percent) from the revised 2019‑20 level. In this report, we assess three specific DSH proposals and offer recommendations for legislative consideration.

Handout

Initiative Statute: Restricts Parole for Non-Violent Offenders. Authorizes Felony Sentences for Certain Offenses Currently Treated Only as Misdemeanors

February 11, 2020 - Presented to: Senate Public Safety Committee Hon. Nancy Skinner, Chair and Assembly Public Safety Committee Hon. Reginald B. Jones-Sawyer, Sr., Chair

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.