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2012

Other Budget Issues

This Web-based list provides comments by the Legislative Analyst’s Office (LAO) on budget issues being considered by the Legislature in 2012. Both budget-related findings and recommendations are included, but this is not intended to be a comprehensive tracking system of all budget items. The LAO will continue to publish various other written documents analyzing the state budget. The purpose of this list is to provide an efficient forum for our office to address more technical budget issues for which we may not have a formal write-up.

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2012 Recommendations

Last Updated Program Issue Finding or Recommendation More Detail?
8/1/2012 Revenues Frequently asked questions concerning Facebook and California's General Fund This item lists answers to frequently asked questions concerning Facebook's stock and California's General Fund budget for 2012-13. Detail
5/30/2012 California Community Colleges Block grant for K-14 mandated activities Adopt Governor's May proposal to eliminate roughly half of education mandates and create a block grant for remaining activities. Modify proposal so that (1) block grant activities are required only as a condition of accepting the grant and (2) different types of local educational agencies receive funding based on different per-student rates. Detail
5/30/2012 California Community Colleges May Revision Proposition 98 proposal Recommend the Legislature consider alternatives to the Governor's basic Proposition 98 budget plan and trigger plan (were his tax measure to fail). The alternatives are based on a reasonable approach to the creation and payment of maintenance factor obligations. In addition, the alternatives use a consistent "current-year" method for all applicable "rebenchings." Detail
5/30/2012 Student Aid Commission Governor's May Revision methodology to reduce Cal Grant award amounts Reject Governor's May Revision proposal to prorate Cal Grant amounts based on students' eligibility for federal Pell Grants. The Governor's proposal uses too crude a measure of financial need. Instead direct that an independent study be completed by January 2013 with recommendations for comprehensive reform of the state's financial aid programs, which may include differential award amounts. Detail
5/30/2012 Student Aid Commission Governor's May Revision proposal to restrict institutional eligibility for Cal Grants Adopt modified changes to institutional eligibility for Cal Grant programs that are less restrictive than Governor's May Revision proposal, which goes too far. A maximum cohort default rate of 20% (instead of 15%) and no graduation rate limit (instead of 30%) would provide $14 million in savings (instead of $24 million), assuming reduced awards for students at private institutions. Detail
5/30/2012 Proposition 98 May Revision Proposition 98 proposal Recommend the Legislature consider alternatives to the Governor's basic Proposition 98 budget plan and trigger plan (were his tax measure to fail). The alternatives are based on a reasonable approach to the creation and payment of maintenance factor obligations. In addition, the alternatives use a consistent "current-year" method for all applicable "rebenchings." Detail
5/30/2012 Education Mandates Block grant for K-14 mandated activities Adopt Governor's May proposal to eliminate roughly half of education mandates and create a block grant for remaining activities. Modify proposal so that (1) block grant activities are required only as a condition of accepting the grant and (2) different types of local educational agencies receive funding based on different per-student rates. Detail
5/30/2012 Kindergarten Transitional Kindergarten (TK) program Adopt Governor's January budget proposal to cancel initiation of new TK program, because program is costly and poorly designed. Modify Governor's proposed waiver policy to permit early entrance for underage students, but only to traditional kindergarten and only for children born shortly after date cutoff. Estimate would save $75 million (in contrast to Governor's May estimate of $92 million). Detail
5/30/2012 Preschool Reimbursement rates Adopt Governor's May proposal to rescind January proposal that would have cut standard reimbursement rate for preschool providers by 10 percent. Maintain current rates. Detail
5/30/2012 Finance and Flexibility K-12 funding restructuring Adopt Governor's budget proposal to begin allocating K-12 funding based on a weighted student formula. Adopt most May Revision modifications to January proposal, but include Targeted Instructional Improvement Grant and Home-to-School Transportation in new formula. Detail
5/30/2012 Child Care Restructuring child care system Adopt Governor's January proposal to consolidate child care programs and shift program administration to county welfare departments beginning in 2013-14. Adopt May Revision proposal to maintain child care funding as separate county block grant. Would streamline overly complex system. Detail
5/30/2012 Child Care Reimbursement rates Reject Governor's January proposal to reduce Title 5 child care provider rates by 10 percent. Also reject Governor's May proposal to reduce maximum voucher rates to the 40th percentile of 2005 market rates. Make needed reductions from menu of other options. Detail
5/30/2012 Child Care Budget reductions Adopt child care budget package based on legislative priorities and magnitude of savings sought. Detail
5/25/2012 Multiyear Budget Forecast Near-term challenges, but opportunity to reduce future deficits substantially We discuss our multiyear forecast of General Fund revenues and expenditures assuming adoption of the Governor's May Revision revenue and expenditure policies, including his proposed November tax initiative. Detail
5/24/2012 UC and CSU Retirement costs Recommend rejecting Governor's May proposals to not adjust UC and CSU's budgets for certain pension and retiree health and dental benefits costs. Recommend modifying proposed $52 million augmentation for UC to reflect its actual pension costs. Recommend approving technical change to separately track funding for CSU retiree health care costs. Detail
5/23/2012 Seismic Safety Commission Revised Seismic Safety Commission funding proposal We raise no objections with the Governor's revised budget proposal to provide permanent funding ($1.3 million in 2012-13) for the Seismic Safety Commission through a charge on insurance policy holders. Detail
5/22/2012 Department of Justice/Housing Bonds/Department of Fair Employment and Housing National mortgage settlement proceeds Modify Governor's proposal to use the full $411 million settlement to offset General Fund costs in the current and budget years, rather than reserving $118 million to offset costs in 2013-14. Detail
5/18/2012 Department of Corrections and Rehabilitation Governor's blueprint for CDCR reorganization Consider less costly alternatives to the Governor's May Revision proposal to reorganize the California Department of Corrections and Rehabilitation. We find that the state could meet its facility requirements and specified population cap targets at much lower General Fund costs than proposed by the administration, potenitally saving the state as much as a billion dollars over a seven year period. Detail
5/18/2012 MRMIB (Healthy Families Program) and DHCS (Medi-Cal) 2012-13 May Revise: Analysis of the Governor’s Proposed Changes to the Healthy Families Program Governor's proposed May Revision caseload and other adjustments are reasonable. Continue to recommend the early transition in 2012-13 of the subset of Healthy Families Program (HFP) enrollees who would be transitioned anyway to Medi-Cal in 2014 under federal health care reform. Recommend the broader issue of the future of HFP be referred to policy committee. Detail
5/18/2012 Vacant State Positions Proposal to eliminate 11,000 positions impossible for Legislature to evaluate quickly Reject, for now, the Governor's May Revision proposal to eliminate (1) normal salary savings and (2) about 11,000 "historically vacant" authorized positions. Suggest that the administration may wish to submit detailed proposals in the future justifying why positions should be eliminated and how this new process would work in future years. Detail
5/18/2012 State Employees No ideal way to achieve potentially necessary compensation reductions Given the severity of the state's budget shortfall, the Legislature will need to consider reductions in employee compensation. There are, however, no ideal ways to achieve such reductions. Detail
5/18/2012 Revenues Background information on LAO's May 2012 economic and revenue forecasts This item provides additional background information on the LAO's May 2012 economic and revenue forecasts, as discussed in our publication, The 2012-13 Budget: Overview of the May Revision. Detail
5/16/2012 Department of Developmental Services Preliminary LAO review of the Department of Developmental Services savings proposals Recommend the Legislature adopt the administration's proposals to achieve savings. However, for some specific proposals, our analysis indicates that it is uncertain whether the full savings would be achieved. Detail
5/15/2012 Revenues LAO commentary on Facebook IPO and state revenue forecasts This provides an update to the Legislature on the state's revenue situation, following the revision of revenue estimates by the Governor on May 14, 2012. Detail
5/7/2012 Finance and Flexibility K-12 funding restructuring and categorical flexibility Recommend the Legislature provide options that will help districts manage their budget uncertainty in 2012-13 as well as improve the overall K-12 funding system on a lasting basis. Detail
5/7/2012 Proposition 98 School district fiscal oversight and intervention Recommend state preserve existing fiscal oversight system and avoid actions that would diminish its ability to assess school district fiscal health, provide support for fiscally unhealthy school districts, and prevent the need for emergency loans. Detail
5/2/2012 Commission on State Mandates Newly Identified Mandate: Crime Statistics Reports for the Department of Justice (DOJ) Modify Governor's proposed trailer bill language that would delete sections of the law related to various criminal justice reporting requirements in order to eliminate some newly identified mandates. Instead, we recommend various changes that would repeal only the most expensive requirements while maintaining other provisions that are less costly and linked to the receipt of federal funds. Detail
5/1/2012 Revenues Income taxes reportedly over $2 billion below administration's estimate for April This is an update on 2011-12 year-to-date state personal income tax and corporation tax collections. Detail
5/1/2012 California Unemployment Insurance Appeals Board (CUIAB) Restructuring of Second-Level Appeals Modify the Governor's proposal to restructure second-level appeals by maintaining the current board structure while reducing Board membership from seven to five and modifying Board member qualifications, for annual savings of $430,000 ($215,000 in BY). Also, eliminate four vacant positions within the CUIAB in recognition of declining workload, for annual savings of $710,000 ($354,000 in BY). Detail
4/26/2012 Charter Schools Cash management options for charter schools Recommend adopting Governor’s proposals to allow COEs to loan to charter schools and allow charter schools to issue tax and revenue anticipation notes. Recommend authorizing, but not requiring, loans from county treasurer to charter schools. Detail
4/25/2012 Charter schools Funding determination process for nonclassroom-based charter schools Reject Governor’s proposal to eliminate the nonclassroom-based charter school funding determination process. Doing so would remove important fiscal oversight—potentially resulting in nonclassroom-based charter schools reducing spending on instruction-related activities. Moreover, it would increase state costs by $20 million--providing more funding for certain schools without a clear rationale. Detail
4/25/2012 Revenues California revenues on track to be over $2 billion under administration target for April This is an update on 2011-12 year-to-date state personal income tax and corporation tax collections. Detail
4/19/2012 High-Speed Rail Authority Funding for high-speed rail Reject Governor's funding request for $5.9 billion for construction in the Central Valley. Continue some minimal funding to preserve future options. Alternatively, should the Legislature choose to move forward, we recommend a series of steps to increase the chance that the project is successfully completed. Approve $812 million request for investments in existing rail services. Detail
4/18/2012 Department of Corrections and Rehabilitation Funding for Clark v. California compliance monitoring and training Reduce the Governor’s proposed augmentation by $1.8 million and 12 positions because the department could use existing unfilled positions to conduct Clark compliance reviews. Detail
4/17/2012 Department of Corrections and Rehabilitation Personnel Specialist staffing ratios Reduce CDCRs funding for Personnel Specialists I (PSI) and Personnel Specialist Supervisors (PSS) by $13.1 million in the budget year. This adjustment would provide CDCR with PSI positions on a 300 to 1 ratio and PSS positions on a 5 to 1 ratio, both of which are more consistent with other large state departments. Detail
4/16/2012 Department of Justice Legal services funding adjustment Approve Governor's January proposal to augment DOJ's budget by $600,000 from the Indian Gaming Special Distribution Fund. Delay by one year the proposed $1.9 million increase in DOJ's General Fund appropriation for legal services, allowing the Legal Services Revolving Fund to continue to absorb these costs as a one-time budget solution. Detail
4/16/2012 Department of Justice Division of Law Enforcement Approve Governor's January budget proposal for partial restoration of the Division of Law Enforcement. Shift the existing $2 million General Fund appropriation for the Special Investigations Team to the Legal Services Revolving Fund. Detail
4/13/2012 Judiciary Ongoing reductions to the judicial branch budget and proposed increase of civil fees Reject the Governor's January budget proposal for budget bill language providing full authority to Judicial Council to allocate $350 million in reductions to branch. Adopt specific actions to acheive ongoing savings, including the approval of the Governor's proposed increase of civil fees. Require the judicial branch to submit a report on potential operational efficiencies. Detail
4/13/2012 Commission on Teacher Credentialing (CTC) CTC's $5 million 2012-13 operating shortfall Adopt Governor’s proposals to: increase credentialing and tests fees on an ongoing basis, permanently eliminate 17 positions, and achieve one-time technology-related savings. Additionally, recommend authorizing a small budget-year transfer and directing CTC to explore options for achieving greater efficiencies and instituting fees for accreditation services. Detail
4/11/2012 Child Nutrition Nutrition subsidies for children not attending public K-12 schools Limit state funding for meal subsidies to students attending public K-12 schools. Adopt Governor's proposal to save $10.4 million non-Proposition 98, and also apply to school district-run child care programs to save an additional $2.5 million Proposition 98. Detail
3/28/2012 Department of Corrections and Rehabilitation Small management yards Reject Governor's January request for $60,000 in general obligation bond funds for the development of preliminary plans and working drawings for 50 small managment yards at California Correctional Institution. The project will have significant General Fund costs for construction without clear offsetting benefits, and new gang management policies may reduce the long-term need for these facilities. Detail
3/15/2012 Department of Transportation Project initiation documents (PIDs). Reject Governor’s January budget proposal to provide Caltrans with additional funding and positions for the development of PIDs and enact budget trailer legislation requiring Caltrans to use streamlined PIDs. Detail
3/13/2012 In-Home Supportive Services (IHSS) IHSS Budget Update Provides an overview of the implementation status of the major changes to the IHSS program between 2009-10 and 2011-12 to achieve General Fund savings. Provides comments on the Governor's 2012-13 proposal to eliminate domestic and related care services for most IHSS recipients who live with another person. Finally, provides alternatives to the Governor's proposal to achieve General Fund savings Detail
3/12/2012 American Indian Education Centers Oversight of centers Recommend the Legislature remove the centers from the categorical flexibility provision enacted in February 2009. Reinstating as a standalone catgorical program would allow for much stronger program accountability. Detail
3/12/2012 Non-Proposition 98 Programs Eliminating non-Proposition 98 funding for select education programs Recommend approving the Governor's proposal to reduce non-Proposition 98 General Fund support for select education programs by a total $19.4 million given the state's fiscal shortfall. Detail
3/9/2012 Early Mental Health Initiative (EMHI) Program elimination Adopt Governor's January budget proposal to eliminate program given school districts can use funding flexibility to provide early mental health services if they are a local priority. Detail
3/9/2012 Department of Conservation Proposal for 18 Positions in Division of Oil, Gas, and Geothermal Resources Reject Governor’s proposal for 18 additional positions in the Division of Oil, Gas, and Geothermal Resources because of lack of workload justification, the existance of existing vacant positions, and the need to evaluate a planned "roadmap" that may change the workload responsibilities for the division. Detail
3/7/2012 Department of Alcoholic Beverage Control Funding to upgrade Department of Alcoholic Beverage Control (ABC) radio system Reduce Governor's January budget proposal by $122,000 for the purchase of new hand-held and vehicle-mounted radios. The ABC has a persistent high vacancy rate and so 190 units of each type of radio should sufficiently equip all peace officer staff. Detail
3/7/2012 Department of Boating and Waterways Public and private marina loan programs Eliminate the public and private marina loan programs operated by the Department of Boating and Waterways (DBW) and reduce Governor’s January budget request by $13.8 million from the Harbors and Watercraft Revolving Fund. Detail
3/7/2012 Department of Transportation Cost increases for intercity Amtrak passenger rail services Withhold recommendation on the Governor's January budget proposal to fund increased operating costs pending a revised budget change proposal. It is our understanding, according to the Department of Transportation, that the anticipated cost increase for state-supported Amtrak intercity passenger rail routes will no longer be taking effect in the budget year.
3/7/2012 Department of Transportation Legal services for the High-Speed Rail Authority Approve the Governor's January budget proposal for 8 limited-term positions at the Department of Transportation for legal services for the High-Speed Rail Authority (HSRA). Ensure that the level of funding and positions approved conforms with actions taken on HSRA's budget.
3/7/2012 California Specialized Training Institute (CSTI) Relocation of the California Specialized Training Institute (CSTI) Withhold action on Governor's January budget proposal to relocate CSTI and transfer some training responsibility to local authorities. Direct CalEMA to report at budget hearings on (1) a detailed implementation plan, (2) an estimate of the costs of relocating CSTI, and (3) all conditions local authorities would be required to meet in order to provide the training. Detail
3/6/2012 Employment Development Department Unemployment Insurance Fund Insolvency Adopt a comprehensive long-term solvency plan that potentially incorporates the Governor's proposals to establish an employer surcharge to cover future interest payments on the federal loan to the Unemployment Insurance (UI) fund and increase monetary eligibility requirements for UI benefits. Detail
3/5/2012 Local Government Financing Amador and Mono Counties Triple Flip/ VLF Swap Backfill Consider Governor's January budget proposal for $4.4 million for Amador and Mono Counties in the context of overall state-local finance and develop a plan that is financially viable for the state and counties over the long term. Detail
3/5/2012 Department of Industrial Relations Expansion of State Labor Enforcement Activities Postpone consideration of the three proposals by the Governor to create a total of 21 new positions, for a total cost of $4.5 million ($2.2 million from the Labor Enforcement and Compliance Fund), within the Department of Industrial Relations, Division of Labor Standards Enforcement until the issue of reauthorization of the Labor Enforcement and Compliance Fund has been resolved. Detail
3/5/2012 Department of Consumer Affairs Bureaus, Programs, Divisions BreEZe information technology project funding Approve $8.4 million for continued funding of the BreEZe project and to fund credit card processing fees. Modify budget bill language to provide legislative oversight. Detail
3/2/2012 Control Section 4.21 Health Care Premium Savings Hold item open until after May Revision when the CalPERS 2013 health premium negotiations and collective bargaining for four bargaining units may be closer to completion. Detail
3/2/2012 Department of Mental Health The 2012-13 Budget: Oversight and Accountability at State Hospitals Recommend Office of State Audits and Evaluations (OSAE) conduct an audit of the state hospitals to ensure the problems outlined by OSAE in 2008-09 and by the department's self audit in 2010-11 are addressed. We recommend the audit include a detailed look at vacancies, personnel, and patient aggression. This audit should begin in January of 2013. Detail
3/2/2012 Department of Developmental Services The 2012-13 Budget: Developmental Services Budget Update Provides an overview of the measures taken by the Legislature between 2009-10 and 2011-12 to achieve General Fund savings in the Department of Developmental Services programs. Savings were achieved through a variety of measures, including increased federal financial participation, use of First Five Commission funds, and a reduction in Developmental Center and Regional Center budgets. Detail
3/2/2012 Department of Parks and Recreation Strategies to address some of the funding challenges of the state park system Adopt strategies to help maintain the park system, such as transferring the ownership of some state parks to local governments, eliminating the use of peace officers for certain park tasks, allowing private companies to operate some state parks, and increasing park user fees and concession opportunities. Detail
3/2/2012 Department of Parks and Recreation Continuous appropriation of $15.3 million from State Parks Recreation Fund Reject the Governor's proposal to continuously appropriate $15.3 million from the State Parks Recreation Fund because it would limit the Legislature's authority and not result in the stated goal of incentivizing districts to generate revenue. Detail
3/1/2012 Aids Drug Assistance Program, Department of Public Health Governor Proposes to Increase Share of Cost for Aids Drug Assistance Program Enrollees Recommend approval of the Governor’s proposal to impose cost sharing on certain AIDS Drug Assistance Program (ADAP) enrollees due to the state’s fiscal condition. Offer an alternative that would impose a lower level of cost sharing on ADAP enrollees but achieve less General Fund savings. Detail
3/1/2012 Department of Developmental Services LAO analysis of Governor's 2012-13 budget proposal for the Department of Developmental Services. Recommend the Legislature approve the Governor's proposals to achieve $200 million in General Fund savings through "trigger cuts," and $14.4 million General Fund through Developmental Center staffing level adjustments. Recommend the Legislature seek additional savings through an extension of the 4.25 percent payment reduction and through implementing means testing and other measures. Detail
3/1/2012 Department of Mental Health Elimination of funding for Caregiver Resource Centers Recommend the budget subcommittees refer the Caregiver Resource Centers (CRCs) funding elimination issue to the policy committee before any action is taken to eliminate CRC funding. The role of the CRCs in California should be evaluated within the broad framework of the array of available community-based services. Detail
2/24/2012 Office of the Inspector General Reorganization of the Office of the Inspector General Adjust Governor's January budget proposal to reduce funding for OIG because the administration’s proposal to remove positions from OIG reduces the associated funding based on the minimum salary step, rather than the mid step salary. Accordingly, we recommend a further reduction of $496,000 in the current year and $665,000 in the budget year. Detail
2/24/2012 Department of Motor Vehicles Vehicle registration fees Modify the Governor's proposal to reduce registration fees to incentivize the use of less costly transactions and not signficantly change the overall level of the Motor Vehicle Account revenues. Detail
2/24/2012 Department of Motor Vehicles Centralized customer management and appointment system Approve the Governor's proposal for the centralized customer flow management system. Detail
2/24/2012 Department of Motor Vehicles Expansion of automated knowledge testing system statewide Approve automated knowledge testing expansion. We also recommend that the Legislature direct the department to report at budget hearings on the assumptions used to determine staff savings related to the expansion of automated knowledge testing. Detail
2/24/2012 Department of Motor Vehicles Consolidation of the Palmdale and Lancaster field offices Adopt the Governor's proposals of $760,000 to plan for the consolidation of the Palmdale and Lancaster field offices. Detail
2/24/2012 Department of Motor Vehicles Relocation San Francisco investigations office Approve the Governor's proposal of $873,000 to relocate the San Francisco investigations office. Detail
2/24/2012 Department of Motor Vehicles Relocation of various field offices Approve $2 million in funding for planning activities to relocate the Escondido, Newhall, Santa Maria, and Reedley field offices and require the Department of Motor Vehicles to enter into lease agreemetns for the Newhall, Santa Maria, and Reedley facilities. Detail
2/24/2012 Department of Motor Vehicles Consolidated Commercial Driver License (CDL) center in Northern California Approve funding of $20,000 to establish the consolidated CDL in Northern California. Detail
2/24/2012 Department of Motor Vehicles Working drawings for the Grass Valley field office Adopt the Governor's proposal of $562,000 to fund working drawings for the Grass Valley replacement facility. Detail
2/24/2012 Department of Corrections and Rehabilitation Refocusing CDCR after the 2011 realignment. Recommends a number of actions designed to ensure compliance with the federal court order to reduce prison overcrowding, as well as better align CDCR’s facilities, health care system, and rehabilitation programs with the state inmate and parole populations remaining following the 2011 realignment. Detail
2/23/2012 Delta Stewardship Council Unallocated federal reimbursement authority Reduce Governor’s January budget request for federal reimbursement authority by $2.9 million. The Council has not received federal approval or identified a use for these funds. Approving the request would limit the Legislature's authority to approve funding for specific expenditures. This $2.9 million makes up 14 percent of the expenditure authority proposed for the Council in 2012-13.
2/23/2012 Department of Fish and Game Funding to implement Dungeness crab trap limit and tag program Reduce Governor’s January budget request by $138,000 for the purchase of crab trap tags. The earliest that these tags will be needed is November 2013; as a result, this funding is not needed in the current fiscal year. Detail
2/23/2012 Oil Spill Prevention and Response 16 permanent positions to implement a fuel loading and unloading monitoring program Modify Governor’s January budget request for 16 permanent positions at a cost of $2.9 million from the Oil Spill and Prevention and Administrative Fund and instead approve the positions on a three-year limited-term basis to align the position authority with the expiration of the fee increase and monitoring requirements. Detail
2/23/2012 Student Aid Commission Longer-term financial aid reforms Consider longer-term reforms to state aid programs, including (1) instituting more consistent, comprehensive approach to aid across segments; (2) differentiating award amounts based on specific student needs ; (3) developing rational policy for award levels at different types of institutins; (4) setting limit on awards for lower-division studies; and (5) decentralizing Cal Grant delivery. Detail
2/22/2012 Department of Social Services (DSS) CalWORKs Budget Reductions Adopt CalWORKs budget package based on legislative priorities and magnitude of savings sought. Options include: reducing cash grants, shortening adult time limit, eliminating Cal-Learn, eliminating higher work-exempt cash grants, reducing county single allocation funding, reducing the earned income disregard, increasing severity of sanctions, and decreasing cash grants after long periods of aid. Detail
2/22/2012 Department of Social Services (DSS) Work Incentive Nutritional Supplement (WINS) Modify the Governor's proposal to expand WINS that would increase ongoing annual costs by $53 million. The modified proposal, which save as much as $100 million annually relative to the Governor, would reduce the WINS and WINS Plus monthly benefit to $10 and require application for WINS and WINS Plus as a condition of eligibility for CalFresh and subsidized child care. Detail
2/22/2012 Department of Social Services (DSS) Redesign of the CalWORKs Administrative Structure Reject the Governor's proposal divide CalWORKs into two subprograms and create a Child Maintenance program. Instead, evaluate the Governor's proposals to reduce cash assistance and tighten eligibility and work requirements within the context of the current CalWORKs administrative structure. Detail
2/22/2012 Medi-Cal The 2012-13 Budget: Integrating Care for Seniors and Persons With Disabilities Recommend the Legislature proceed with a currently authorized four-county demonstration to integrate medical care and long-term supports and services for seniors and persons with disabilities (SPDs) enrolled in Medi-Cal and Medicare, but reject the Governor's proposal to expand the demonstration statewide at this time. Recommend additional measures to help the state better integrate care for SPDs. Detail
2/22/2012 MRMIB (Healthy Families Program) and DHCS (Medi-Cal) The 2012-13 Budget: Analysis of the Governor's Healthy Families Program Proposal Recommend the early transition in 2012-13 of the subset of Healthy Families Program (HFP) enrollees who would be transitioned anyway to Medi-Cal in 2014 under federal health care reform. Recommend the broader issue of the future of HFP be referred to policy committee Detail
2/22/2012 Crosscutting Update on 2011 realignment of adult offenders Make several changes to promote the long-term success of the 2011 realignment of adult offenders. These are (1) creating a reserve fund for revenue growth, (2) designing an allocation formula to be responsive to future changes, (3) rejecting a budget request for additonal funding for county planning, and (4) utilizing a new state board to assist counties with their realignment responsibilities. Detail
2/21/2012 Department of Transportation Staffing to administer federal transportation programs Withhold recommendation on the Governor's January budget proposal to provide the Department of Transportation with $2 million in federal funds and an extension of 25 limited-term positions for the administration of various federal transportation programs, pending future actions by Congress regarding these programs that are scheduled to expire on March 31, 2012.
2/21/2012 Cap-and-Trade Program Use of cap-and-trade auction revenues Maximize use of cap-and-trade auction revenues to offset General Fund costs of existing programs that mitigate greenhouse gas emissions and direct administration to provide a list by April 1, 2012 of current programs whose spending could be offset by auction revenues. Reject Governor's proposal to allocate auction revenues to specific programs following 30-day notification to the Legislature. Detail
2/15/2012 Division of Juvenile Justice (DJJ) Juvenile justice realignment Approve the Governor's proposal to complete the realignment of juvenile justice to counties, as well as adopt additional changes designed to achieve a smooth transition and better fiscal and programmatic outcomes. Detail
2/10/2012 Preschool Various To view all preschool-related items, please select the "Child Care" policy area from the drop-down menu above.
2/10/2012 Student Aid Commission Decentralize Cal Grant delivery Recommend the Legislature enact legislation to decentralize Cal Grants. We offer several specific recommendations to improve student-centered delivery of state financial aid at the campus level; reduce duplication of functions between campuses, system offices, and the state; and improve both the effectiveness and efficiency of the state's financial aid enterprise. Detail
2/10/2012 Student Aid Commission Financial aid General Fund (GF) savings options Modify financial aid programs to better target resources and create GF savings. Options include increasing GF offset from SLOF ($32 million), eliminating non-need-based fee waivers ($30 million), limiting competitive awards to stipends only ($30 million), adjusting eligibility criteria (variable), raising minimum GPA ($21 million), reducing award amounts (variable), and modifying CCC fee waivers Detail
2/10/2012 UC, CSU, and CCC Trigger reductions Consider alternatives to Governor's proposed trigger cuts of $200 million for UC, $200 million for CSU, and $292 million for CCC. Alternatives include allocating cuts differently or building budget that does not assume voter approval of additional revenues. Detail
2/10/2012 UC, CSU, and CCC Flexibility provisions Reject Governor's January proposal to eliminate enrollment targets for the three segments. Recommend Legislature reject Governor's proposal to eliminate all earmarks for UC and CSU budgets, and instead consider modifying or eliminating earmarks on a case-by-case basis. Recommend modified approach to the Governor's proposal to expand CCC categorical flexibility. Detail
2/10/2012 UC, CSU, and CCC New funding compact Reject Governor's January proposal to commit the state to annual General Fund augmentations for the three segments, regardless of actual costs they face or the state's fiscal condition. Recommend working with Governor to pursue meaningful accountability for higher education. Detail
2/10/2012 UC and CSU Debt service costs Recommend rejecting the Governor's January proposal to (1) shift funding for general obligation debt service into the universities' base budgets and (2) remove restrictions on funding for lease-revenue debt service. Detail
2/10/2012 California Community Colleges Contracting out for noninstructional services Recommend the Legislature ease restrictions on contracting out for noninstructional services. Detail
2/10/2012 California Community Colleges Prioritizing course enrollment Recommend the Legislature (1) adopt statewide registration priorities that maximize access for CCC's most-focused students under the Master Plan; (2) establish a 100-unit cap on the number of taxpayer-subsidized credits a CCC student may accumulate, for savings of up to $175 million in 2012-13; and (3) eliminate state funding for repetition of physical education and other recreational classes. Detail
2/10/2012 California Community Colleges Funding and flexibility for credit basic-skills instruction Recommend the Legislature reduce the funding rate for credit basic-skills instruction to the same rate provided for noncredit basic skills, for state savings of about $120 million in 2012-13. Provide more flexibility by permitting colleges to (1) hire basic-skills instructors possessing a bachelor's degree or higher, as well as to (2) contract out basic-skills instruction to a third party. Detail
2/10/2012 California Community Colleges Intercollegiate athletics Eliminate state funding for CCC intercollegiate athletics, for savings of about $55 million in 2012-13. Detail
2/10/2012 California Community Colleges Board of Governors (BOG) fee waiver program Recommend the Legislature: (1) adopt satisfactory academic progress requirements for the program; (2) require colleges to count dependent students' income for purposes of determining eligibility for a waiver; and (3) require students to apply for a waiver using the federal financial aid application. Detail
2/10/2012 California Community Colleges 50 percent law Give districts more ability to hire faculty who provide direct support services to students by including expenditures on counselors and librarians as part of instructional costs. Alternatively, suspend the law. Detail
2/10/2012 California Community Colleges Full-time faculty targets (75/25 law) Suspend requirements on the number of full-time faculty that districts must employ. Detail
2/10/2012 California Community Colleges Categorical program flexibility Modify Governor's January budget proposal to consolidate virtually all funding for community college categorical programs into one general purpose "flex item" by restricting use of the funds only for existing categorical-program purposes, or, alternatively, creating two block grants (for student support and faculty support). Detail
2/10/2012 Preschool, General Child Care (GCC) Overall funding levels Shift $400 million from non-Proposition 98 funded GCC program into Proposition 98 to accurately reflect the existing California State Preschool Program. Detail
2/10/2012 Preschool Prioritization for slots Consider prioritizing slots for income-eligible children affected by the proposed change in kindergarten start date in 2012-13. Detail
2/10/2012 Preschool Income eligibility ceilings Reject Governor's January budget proposal to lower income eligibility thresholds from 70 percent of the state median income (SMI) to 200 percent of the federal poverty level (about 62 percent of SMI) and eliminate associated slots, for savings of $24 million. If reductions are needed, eliminate preschool slots, as enrollment priority already is reserved for the lowest income applicants. Detail
2/10/2012 Proposition 98 Back-up budget plan Build contingency plan. If plan assumes midyear cuts, be deliberate in both setting the magnitude of the cuts and specifying the allocation of the cuts. Alternatively, if plan assumes midyear augmentations, use funds to retire existing obligations (such as paying down deferrals). Detail
2/10/2012 Proposition 98 Multiyear plan to reduce education obligations Use Governor's January plan as a starting point. To increase likelihood plan is consistently implemented, consider extending the payment period, spreading out payments more evenly, designating settle-up funds be used for mandates or deferrals, and redirecting Quality Education Investment Act program savings to other obligations (with first call to retire Emergency Repair Program obligations). Detail
2/10/2012 Proposition 98 Flexibility options Provide school districts with one-time options to help them respond to potential trigger cuts. Effective July 1, could remove additional categorical and mandate requirements (beyond current-law requirements), allow for a shorter school year, increase or suspend maximum statutory class sizes, and authorize a special post-election layoff window. Detail
2/10/2012 Proposition 98 Payment deferrals Adopt Governor's January proposal to retire some existing K-14 payment deferrals rather than provide K-14 program augmentations if the state has additional Proposition 98 resources to spend in 2012-13. Detail
2/10/2012 Proposition 98 Counting K-14 debt service payments to Proposition 98 minimum guarantee We have serious policy concerns with the Governor's January debt service proposal, given the size of annual debt service payments is significantly more volatile than annual changes in the Proposition 98 minimum guarantee. Detail
2/10/2012 Proposition 98 Rebenchings of Proposition 98 minimum guarantee Adopt Governor's January proposal to eliminate the rebenching for the "gas tax swap." For other rebenchings, recommend consistent year-to-year approach. Detail
2/9/2012 Department of Corrections and Rehabilitation Additional funding for inmate pharmaceuticals Reduce the proposed General Fund augmentation by $20 million to an augmentation of $39.9 million in 2012-13 and $31.2 million in 2013-14 to account for additional efficiencies we believe could be achieved from better inventory management and reduced use of non-formulary drugs. Approve this augmentation for two years only so that the need for ongoing funding in future years can be reevaluated. Detail