This Web-based list provides comments by the Legislative Analyst’s Office (LAO) on budget issues being considered by the Legislature in 2013. 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.
This list is designed so it can be filtered by policy area or budget item. Also, selected information from the list can be downloaded to an Excel spreadsheet.
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| Last Updated | Program | Issue | Finding or Recommendation | More Detail? |
|---|---|---|---|---|
| 9/30/2013 | Revenue | Update on strong California capital gains tax collections in September | This note provides an update on California revenue collections for the 2013-14 fiscal year, as of September 2013. (Updated: Sept. 30, 4:30 p.m.) | Detail |
| 7/1/2013 | Revenues | 2012-13 revenues on track to end above both Governor and LAO projections (Updated July 1) | This provides an update on June 2013 California personal income tax and corporation tax revenue collections. (Updated July 1, 5 p.m.) | Detail |
| 6/5/2013 | Revenues | May personal income taxes finish $550 million above Governor's projection | Provides update on May 2013 personal income tax collections. | Detail |
| 5/30/2013 | Revenues | May income tax collections, to date, are above Governor's projections | Provides update on California's May 2013 personal income tax collections. | Detail |
| 5/29/2013 | Department of Corrections and Rehabilitation | Maximizing federal funding for parolee mental health care | Adopt budget trailer bill legislation directing CDCR--in collaboration with DHCS--to (1) expand Medi-Cal application assistance to parolees receiving mental health treatment, (2) implement a process for claiming federal reimbursement for staff that is assisting inmates with Medi-Cal applications, and (3) take steps neccessary to claim federal reimbursement for parolee mental health treatment. | Detail |
| 5/29/2013 | Department of Corrections and Rehabilitation | Parole revocation positions | Reject the administration’s proposal to provide a one-time $8.3 million General Fund augmentation in 2013-14 for 60 positions for parole revocation activities because the administration has been unable to provide sufficient documentation to justify the positions on a workload basis. | Detail |
| 5/29/2013 | Department of Corrections and Rehabilitation | Drug interdiction program | Reduce the administration’s drug interdiction proposal from $6.6 million General Fund in 2013-14 ($18.5 million annually upon full implementation) to $3 million annually on a three-year limited-term basis to pilot test initiatives to reduce drug use in prisons. | Detail |
| 5/29/2013 | Department of Corrections and Rehabilitation | Augmentation for DOJ legal services | Reduce April Finance Letter request to augment CDCR for DOJ legal services from $11.5 million to $6.4 million on a one-year basis. Further require CDCR to report on what factors are driving its need for legal services and what steps it has or could take to better contain these costs. | Detail |
| 5/29/2013 | Department of Corrections and Rehabilitation | Strategic offender management system project | Withhold taking action on the proposed budget bill language until the Special Project Report currently under review by California Technology Agency is received. | Detail |
| 5/29/2013 | Department of Corrections and Rehabilitation | Long-term offenders in county jails | Withhold recommendation on May Revision proposal pending receipt of trailer bill. | Detail |
| 5/29/2013 | Department of Corrections and Rehabilitation | Formula for probation incentive grants | Reject Governor's May Revision proposal to change funding formula for probation performance incentive grant program. Modify and expand the existing funding formula to preserve the original intent of the program. Reduce amount allocated to counties through the grant from the $107 million (as proposed by the administration) to $75 million. | Detail |
| 5/24/2013 | Judiciary | Cash management trailer bill language | Modify administration's proposal to assist trial courts more easily manage cash under the recently enacted 1 percent reserves policy by (1) adding a sunset clause, (2) clarifying how funds in excess of the reserves limit will be distributed, and (3) expanding the list of costs to be exempted from counting against a court's reserves limit. | Detail |
| 5/20/2013 | Federal Sequestration | Recommend modifying proposed budget language on sequestration | Recommend modified version of proposed budget bill language for cuts pursuant to federal sequestration. | Detail |
| 5/20/2013 | State Controller | Recommend assessment of IT project in addition to reconciliation and legal efforts | Recommend that the Legislature require a thorough evaluation of the suspended 21st Century IT Project, in addition to the payroll reconciliation and legal efforts currently proposed. | Detail |
| 5/18/2013 | CalWORKs | Analysis of the Governor's CalWORKs Early Engagement Proposal | Adopt the Governor's proposal, with several modifications. | Detail |
| 5/18/2013 | Department of Health Care Services | Medi-Cal County Administrative Costs Associated With Implementing Federal Health Care Reform | Require the administration to report at budget hearings and provide more detailed information about the assumptions and methodology used to estimate federal health care reform's net effect on Medi-Cal county administrative costs. | Detail |
| 5/18/2013 | Department of Developmental Services | Sonoma Developmental Center Intermediate Care Facility Recertification | Recommend approval of funding for a contract for an independent consultative review expert to conduct an analysis and establish an action plan to bring Sonoma Developmental Center into compliance. Recommend the Legislature deny request for provisional budget bill language giving the Director of the Department of Finance authority to augment the department's budget by $10 million General Fund | Detail |
| 5/18/2013 | Department of Health Care Services | Coordinated Care Initiative (CCI) May Revision Update | Recommend adopting statutory changes to remove the following requirements for proceeding with CCI: (1) a six-month stable enrollment period; (2) shared federal savings; and (3) reference to specific level of ongoing savings. | Detail |
| 5/17/2013 | Department of Social Services (DSS) | Resource Family Approval Project: request for delayed implementation | Reject the Governor's proposal to further delay implementation of the Resource Family Approval Project, and direct development of an alternative funding plan to provide for implementation in 2013-14. | Detail |
| 5/17/2013 | CalSTRS | Need to determine contractual parameters for "financially sound" funding plan | Recommend that Legislature ask CalSTRS board directly what a funding plan would have to look like--in its view and that of its actuaries--to fulfill the contractual commitment provided to teachers for a financially sound pension plan. | Detail |
| 5/7/2013 | CalHR | Increased cost for state IT project: Examination and Certification Online System (ECOS) | Require California Technology Agency (CTA) and the Department of Human Resources (CalHR) to jointly submit quarterly reports to the Legislature on the project's progress. These reports should specify (1) whether CTA or CalHR anticipate making or have made any change to the project's scope, schedule, or budget and (2) whether they are experiencing any significant problems with the project. | Detail |
| 5/3/2013 | Revenues | FTB preliminary April income tax tally confirms prior estimates | This is a description of the preliminary April tally of personal and corporate income tax collections from the Franchise Tax Board. | Detail |
| 5/2/2013 | Department of Managed Health Care | Request for positions related to the federal Patient Protection and Affordable Care Act | Approve the administration's April finance letter request for eight permanent positions in the Help Center, Division of Financial Oversight, and Office of Technology and Innovation. Approve the request for six Division of Licensing positions as two-year limited term positions—instead of permanent positions—because the degree to which this workload will be ongoing is still unclear at this time. | Detail |
| 5/1/2013 | Revenues | Corporation taxes ended April around $200 million above year-to-date projections (preliminary) | This is an update on April corporation tax collections. | Detail |
| 4/30/2013 | Revenues | Preliminary April personal income tax collections of $13.02 billion (all funds) | This page provided updates during April 2013 concerning California personal income tax collections. | Detail |
| 4/17/2013 | Teacher/Administrator Issues | The Administrator Training Program (ATP) and the California Subject Matter Projects (CSMP). | Recommend Legislature adopt Governor’s January proposal to shift $1.3 million in Title II funds from ATP to CSMP. Additionally, recommend Legislature adopt budget bill language requiring the University of California to submit a CSMP budget plan to the Legislature and administration by November 1, 2013. | Detail |
| 4/15/2013 | CalPERS | Pension board faces difficult decision concerning its actuarial policies. | Provides information concerning the CalPERS board's consideration of new actuarial policies that could increase further the pension contributions of many public employers beginning in 2014-15. | Detail |
| 4/11/2013 | Department of Social Services | Governor's proposal to suspend Interagency Child Abuse and Neglect Reporting (ICAN) mandate | Reject Governor's proposal to suspend the ICAN mandate and establish a workgroup to develop alternatives for the Legislature to consider that would: (1) reduce future reimbursable costs under the mandate and (2) consider alternative reimbursement methods for funding the mandated activities. | Detail |
| 4/8/2013 | CalWORKs | CalWORKs Background and Recent History | Our presentation to Senate Budget Subcommittee No. 3 on CalWORKs background and recent history can be found in our March 21, 2013 handout through the link provided below. | Detail |
| 4/8/2013 | In-Home Supportive Services (IHSS) | Analysis of settlement agreement reached by the state and plaintiffs for two IHSS lawsuits | We recommend that the Legislature give serious consideration to effectuating the general thrust of the settlement agreement, as it appears to be a reasonable compromise between the state's and the plaintiffs' interests. However, because of the lack of specificity provided in the settlement for an assessment on home care services, we withhold our recommendation on this aspect of the settlement. | Detail |
| 4/4/2013 | Department of Public Health | Governor's proposal to suspend tuberculosis (TB) control mandate | Reject the Governor's proposal to suspend the TB control mandate in 2013-14, and consider modifying existing state funding for TB control to address mandate costs. | Detail |
| 4/4/2013 | Commission on State Mandates | Seek New Decision on Open Meeting Act Mandate | Direct the administration to file a request with the Commission on State Mandates to adopt a new decision on the Open Meeting Act mandate in light of the passage of Proposition 30. | Detail |
| 4/2/2013 | Department of Motor Vehicles | Information Technology Modernization (ITM) Project | We raise a number of issues for legislative consideration regarding the terminated ITM Project. | Detail |
| 4/1/2013 | Commission on State Mandates | Governor's proposal to suspend Interagency Child Abuse and Neglect Reporting (ICAN) mandate | Reject Governor's proposal to suspend the ICAN mandate and establish a workgroup to develop alternatives for the Legislature to consider that would: (1) reduce future reimbursable costs under the mandate and (2) consider alternative reimbursement methods for funding the mandated activities. | Detail |
| 3/22/2013 | Commission on State Mandates | Newly Identified Mandate: Domestic Violence Background Checks | Eliminate future state costs for the Domestic Violence Background Checks mandate program by amending statute to eliminate all the elements of state law that have been found to be a state-reimbursable mandate, as they are unnecessary to achieve the Legislature’s objective of ensuring that judges have pertinent information regarding defendants’ criminal histories. | Detail |
| 3/21/2013 | K-12 Education Mandates | Graduation Requirements (GR) and Behavioral Intervention Plans (BIP) mandates. | Recommend rejecting the Governor’s January proposal to increase the K-12 mandates block grant by $100 million and add GR and BIP mandates to the block grant. For GR mandate, could consider strengthening offset language by linking to future funding increases under the Governor's proposed K-12 funding formula. Recommend adopting the Governor's proposal to modify BIP requirements. | Detail |
| 3/21/2013 | UC, CSU and Hastings | Debt restructuring. | Recommend rejecting the Governor’s proposal to allow the universities to restructure the state’s lease-revenue debt associated with university projects. | Detail |
| 3/21/2013 | UC, CSU, and Hastings | Combining capital and support budgets. | Recommend rejecting the Governor's 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 |
| 3/21/2013 | Charter Schools | Various changes to FGP and and Charter School Revolving Loan Fund. | Adopt Governor’s January proposal to shift administration of FGP and RLF from the California Department of Education to the California School Finance Authority. Adopt Governor’s proposal to expand FGP eligibility to nonclassroom-based schools but consider alternative funding approach. Modify Governor’s FGP allocation proposal by establishing a statutory schedule for release of funds. | Detail |
| 3/21/2013 | UC, CSU and Hastings | Retirement costs. | Recommend adopting the Governor’s proposal to limit future adjustments for CSU’s retirement costs. Recommend designating $67 million of UC’s proposed base budget augmentation for retirement costs. Recommend increasing Hastings’ proposed base budget augmentation from $392,000 to $455,000 and designating the full amount for retirement costs. | Detail |
| 3/21/2013 | K-14 Education Mandates | Mandates Governor proposes to suspend. | Recommend conforming with local government approach for four mandates (Absentee Ballots, Brendon Maguire Act, California Public Records Act, and Sex Offenders: Discolure by Law Enforcement Officers). Recommend adopting Governor's proposal to suspend Mandate Reimbursement Process. Recommend rejecting Governor's proposal to suspend Open Meetings/Brown Act Reform. | Detail |
| 3/21/2013 | K-12 Education Mandates | Pupil Suspensions/Expulsions mandate. | Recommend adding new Pupil Suspensions/Expulsions mandate to the K-12 mandates block grant. | Detail |
| 3/21/2013 | Teacher credentialing | Fees for accrediting teacher preparation institutions and programs. | Consider whether accreditation activities need to be restarted in 2013-14. If restarted, establish fees to recover the full cost of accreditation activities. | Detail |
| 3/19/2013 | Charter Schools | Funding determination process for nonclassroom-based charter schools. | Reject the Governor’s January proposal to limit the funding determination process to the first and third years of a charter school’s operation. Recommend the Legislature instead retain the funding determination process but make several modifications to it. | Detail |
| 3/19/2013 | Charter Schools | Various changes to charter school petitions and oversight. | Adopt the Governor’s January proposals to (1) allow petitions for countywide charter schools to provide that individual sites are tracked as separate schools for reporting and accountability purposes and (2) provide the State Board of Education additional authority to delegate charter school oversight. | Detail |
| 3/18/2013 | Independent Study and Technology-Based Instruction | Rules for K-12 independent study (IS) and technology-based instruction. | Adopt Governor’s January proposal to remove various IS requirements but modify to: (1) require students enrolled in an asynchronous course to be part of an IS program, (2) explicitly link funding rates to achieving student learning outcomes, (3) require measures of satisfactory educational progress be aligned with the state content standards, and (4) implement the proposal more gradually. | Detail |
| 3/15/2013 | Triple Flip | Administration’s trailer bill proposal related to future “triple flip” unwinding mechanism | Discusses the proposed trailer bill language that aims to ensure local governments receive the full amount of reduced sales and use taxes related to the triple flip | Detail |
| 3/15/2013 | School Facilities | Rules regarding surplus school property. | Adopt Governor’s January proposal to continue requiring school districts to offer surplus property first to charter schools but include certain requirements relating to the subsequent sale or lease of such property. Reject Governor’s proposal to extend rules reducing the consequences when districts use proceeds from the sale of surplus property purchased with local funds for nonfacility purposes. | Detail |
| 3/15/2013 | UC, CSU, and CCC | Caps on state-subsidized units at public colleges and universities. | Modify Governor’s January proposal to exclude certain types of credits earned and provide additional guidance regarding waivers. Provide no special treatment for double majors. Allow two-year implementation lag. | Detail |
| 3/15/2013 | UC and CSU | Extended tuition freeze at public universities. | Reject Governor’s January budget proposal for an extended tuition freeze at the universities. Adopt share-of-cost fee policy instead. | Detail |
| 3/15/2013 | UC and CSU | Enrollment targets for public universities. | Set enrollment targets for all three segments to ensure that improvements in student outcomes do not come at the expense of existing student access. | Detail |
| 3/15/2013 | UC, CSU, and CCC | Governor's higher education technology initiatives. | Reject Governor's January proposals to (1) earmark $10 million each for UC and CSU and up to $16.9 million for CCC to develop new online courses and (2) purchase a CCC learning management system. Achieve similar policy objectives using primarily existing resources. Withhold recommendation on Governor's January proposal to expand credit-by-examination opportunities pending further information. | Detail |
| 3/15/2013 | CCC | Funding reform. | Reject Governor's January proposal to fund CCC based on course completions. Consider an alternative funding approach that balances student access with student success. | Detail |
| 3/15/2013 | CCC | Board of Governors Fee Waiver Program (BOG). | Recommend approving Governor's January proposals to (1) require students to complete a federal financial aid application to obtain a BOG fee waiver and (2) count dependent students' income for purposes of determining eligibility for the BOG fee waiver. | Detail |
| 3/15/2013 | CCC | Capital outlay project at Solano Community College. | Approve Governor's January proposal to provide $1.2 million in general-obligation bond funding for theater-renovation project at Solano Community College. | Detail |
| 3/15/2013 | CCC | CCC mandates | Reject Governor’s proposal to retain “Community College Construction” in mandate block grant. Recommend eliminating the four specific mandated content areas as districts likely would continue to include such information in their capital outlay plans. | Detail |
| 3/15/2013 | Adult Education | Adult education reform. | Recommend the Legislature reject virtually all of the Governor's January proposals. Adopt an alternative package of recommendations for improving the state's adult education system. | Detail |
| 3/15/2013 | Cal Grants | TANF and SLOF adjustments for Cal Grant program. | Conform TANF funding amount for Cal Grants with decisions on CalWORKs. Increase SLOF support by $25 million over Governor’s proposal. In both cases, these funds directly offset General Fund expenditures for Cal Grants and have no programmatic effect. | Detail |
| 3/15/2013 | Cal Grants | Cal Grant funding. | Recommend adopting Governor’s January budget proposal to increase total Cal Grant funding by $61 million in 2012-13 and an additional $100 million in 2013-14. The proposed increases are needed to fully fund Cal Grants under current state law. | Detail |
| 3/15/2013 | CSU | Collective bargaining for CSU employee health care premiums. | Either (1) adopt the Governor’s January proposal to apply the same minimum employer health care contribution rate to CSU as currently applied to most other the state agencies or (2) remove the standard for CSU from statute altogether, thereby treating CSU similar to UC and Hastings. | Detail |
| 3/15/2013 | UC, CSU, CCC, and Hastings | Unallocated base increases for public colleges and universities. | Reject the Governor’s January approach to base increases. Fund obligations (including debt service, employee pension costs, and deferral pay downs) as a first priority. If more funding is provided, link with specific expectations. | Detail |
| 3/13/2013 | CSM | Reject Governor's proposal to suspend elections mandates | Reject Governor’s January budget proposal to suspend all elections mandates because doing so would put elections uniformity at risk. Instead, we recommend that the Legislature (1) fund the elections mandates at a cost of about $60 million in 2013 14 and (2) direct the administration to work with counties to explore alternative funding mechanisms for election mandates. | Detail |
| 3/13/2013 | CalWORKs | Review of CalWORKs Changes in the 2012-13 Budget | Our presentation to Assembly Budget Subcommitte No. 1 on changes in the CalWORKs program included in the 2012-13 budget can be found in our March 13, 2013 handout through the link provided below. | Detail |
| 3/13/2013 | K-12 Funding | New funding formula. | Recommend Legislature adopt modified version of Governor’s January proposal to restructure funding formulas for school districts, charter schools, and county offices of education. | Detail |
| 3/13/2013 | Special Education | Special education funding formula and categorical programs. | Recommend Legislature adopt modified version of Governor’s January proposal to revise the AB 602 funding formula and consolidate several special education categorical grants. | Detail |
| 3/13/2013 | Tax Agencies | Administration's trailer bill proposal related to attorney's fee awards | Discusses administration's trailer bill proposal concerning awards of attorney's fees and litigation costs to certain successful litigants in tax and fee refund cases. | Detail |
| 3/13/2013 | Child care and preschool | Governor’s January budget adjustments. | Recommend Legislature (1) wait until May Revision to finalize CalWORKs child care caseload estimates based on updated data, (2) reject minor proposed reductions for non-CalWORKs child care and State Preschool programs, and (3) fund additional preschool slots. | Detail |
| 3/12/2013 | Crosscutting | Overview of Employment Development Department and Agricultural Labor Relations Board Programs | Our presentation to Assembly Budget Subcommittee No. 4 on the programs within the Employment Development Department and the Agricultural Labor Relations Board can be found in our March 12, 2013 handout at the link provided below. | Detail |
| 3/8/2013 | California Military Department (CMD) | Budget for State Active Duty (SAD) employees | Reduce CMD's budget in 2013-14 by $600,000 in General Fund and $700,000 in federal funds to reflect the middle salary range of State Active Duty employees, consistent with CMD's actual expenditures and the practice in most state departments. | Detail |
| 3/6/2013 | California Technology Agency | Recommend pause on troubled payroll IT project and assessment of state IT oversight | Recommend that the Legislature require a thorough evaluation of the suspended 21st Century IT Project, a cost-benefit analysis of future alternatives, and an assessment of the state’s IT project oversight and risk management efforts. | Detail |
| 3/6/2013 | State Controller’s Office | Recommend pause on troubled payroll IT project and assessment of state IT oversight | Recommend that the Legislature require a thorough evaluation of the suspended 21st Century IT Project, a cost-benefit analysis of future alternatives, and an assessment of the state’s IT project oversight and risk management efforts. | Detail |
| 3/6/2013 | Department of Industrial Relations | Workers' compensation reform: return-to-work program | Recommend that the Legislature clarify its intent for funding the return-to-work (RTW) program created in Chapter 363, Statutes of 2012 (SB 863, De León). | Detail |
| 3/1/2013 | Department of Insurance | Positions to implement the California Health Benefit Exchange | Reconsider request during the May Revise, rather than at this time. There will likely be more information on both the number carriers under CDI's authority and the level of funding from the Exchange to CDI for these activities. | Detail |
| 3/1/2013 | Department of Insurance | Actuary reviews of health insurance rate filings | Provide $1.2 million to extend nine limited-term positions related to actuary reviews of health insurance rate filings for another two years, rather than make the positions permanent as proposed by the Governor. The number of actuary reviews may change after 2013-14 and it is possible that federal funds may be available to support some of the workload. | Detail |
| 3/1/2013 | Commission on State Mandates | Newly Identified Mandate: Identity Theft Reports and Investigations | Reject Governor's January budget proposal to suspend a mandate that local law enforcement agencies take police reports and begin investigations when a person reports suspected identity theft. Instead, we recommend that the law make these activities optional, consistent with the authority local law enforcement has related to other alleged criminal violations. | Detail |
| 3/1/2013 | Office of Systems Integration (OSI) | OSI performing project management for CalHEERS project | Approve Governor’s request to increase OSI’s reimbursement authority by $115.4 million to perform project management services for the Cal Healthcare Eligibility, Enrollment and Retention System project. OSI has indicated it will share its “lessons learned” document upon completion of project which will provide insight into how to make IT project management processes more efficient and successful. | Detail |
| 2/28/2013 | County Welfare Automation | County Welfare Automation Budget Proposals | Our analysis and recommendations regarding two county welfare automation projects--Case Management, Information and Payrolling System (CMIPS) II and Child Welfare System-New System (CWS-NS)--can be found in our February 27, 2013 budget analysis publication, using the link provided below. | Detail |
| 2/28/2013 | In-Home Supportive Services | In-Home Supportive Services Budget Assessment | Our analysis and recommendations regarding the In-Home Supportive Services budget can be found in our February 27, 2013 budget analysis publication, using the link provided below. | Detail |
| 2/28/2013 | CalWORKs | CalWORKs Budget Assessment | Our analysis and recommendations regarding the CalWORKs budget can be found in our February 27, 2013 budget analysis publication, using the link provided below. | Detail |
| 2/28/2013 | Department of Public Health | Department of Public Health Budget Assessment | Our analysis and recommendations regarding the Department of Public Health budget can be found in our February 27, 2013 budget analysis publication, using the link provided below. | Detail |
| 2/28/2013 | Department of State Hospitals | Department of State Hospitals Budget Assessment | Our analysis and recommendations regarding the Department of State Hospitals budget can be found in our February 27, 2013 budget analysis publication, using the link provided below. | Detail |
| 2/28/2013 | Department of Developmental Services (DDS) | DDS Budget Assessment and Oversight of the Developmental Centers | Our analysis and recommendations regarding the DDS budget, including our recommendation that an independent Office of the Inspector General be created to oversee the Developmental Centers, can be found in our February 27, 2013 budget analysis publication, using the link provided below. | Detail |
| 2/28/2013 | Department of Alcohol and Drug Programs | Department of Alcohol and Drug Programs Elimination | Our analysis and recommendations regarding the Governor's proposed elimination of the Department of Alcohol and Drug Programs and the transfer of its programs and functions to other departments can be found in our February 27, 2013 budget analysis publication, using the link provided below. | Detail |
| 2/28/2013 | Crosscutting | Healthy Families Program Transition | Our analysis and recommendations regarding the transition of the Healthy Families Program enrollees to Medi-Cal can be found in our February 27, 2013 budget analysis publication, using the link provided below. | Detail |
| 2/28/2013 | Crosscutting | Overview of Health and Human Services Budget | Background information and a summary of the Governor's budget proposal for health and human services can be found in our February 27, 2013 budget analysis publication, using the link provided below. | Detail |
| 2/28/2013 | Department of Health Care Services (DHCS) | Medi-Cal Budget Assessment and DHCS Staffing Requests | Our analysis and recommendations regarding the Medi-Cal budget and DHCS staffing requests can be found in our February 27, 2013 budget analysis publication, using the link provided below. | Detail |
| 2/28/2013 | Department of Industrial Relations | Compliance Monitoring Unit (CMU) funding | Adopt the Governor's proposal to redirect $431,000 General Fund to the CMU, but reject the additional $2 million General Fund redirection proposed. We have no policy issues with the proposed $5 million loan from the Targeted Inspection and Consultation Fund. We offer alternatives to the administration's statutory proposal for a long-term funding plan for CMU given fiscal and policy concerns. | Detail |
| 2/28/2013 | Crosscutting | Coordinated Care Initiative (CCI) Update | Lack of federal approval raises questions about CCI implementation. Recommend Legislature (1) clarify legal status of CCI to go forward, (2) require administration to address how CCI would proceed without stable enrollment, (3) address in a report plan readiness for dual eligibles who opt out, and (4) consider authorizing CCI to test greater integration of In-Home Supportive Services. | Detail |
| 2/26/2013 | Revenues | Accrual method raises forecasting accuracy, Proposition 98, historical budget data concerns | Recommend that Legislature reject administration's proposed revenue accrual trailer bill, adopt temporary budget bill language concerning accruals, and direct administration to develop a simpler, logical revenue accrual method for future fiscal years. | Detail |
| 2/25/2013 | Employee Compensation | Budget reflects scheduled benefit increases. | Hold item open until after the May Revision when the 2014 health premium negotiations and the collective bargaining for 19 bargaining units may be closer to completion. | Detail |
| 2/25/2013 | Department of Transportation | Active Transportation Program | Modify the Governor's January budget proposal to consolidate four existing programs at Caltrans into a new program focused on active transportation. Specifically, require the new program to fund larger projects and exclude non-active transportation projects. Also have the California Transportation Commission report on the level of resources it will need to administer the new program. | Detail |
| 2/25/2013 | Department of Transportation | Proposition 1B capital outlay appropriations | Require Caltrans to revise its request for Proposition 1B appropriations in the spring to account for prior appropriations that will be available for projects in 2013-14. | Detail |
| 2/25/2013 | Department of Transportation | Project Initiation Documents (PIDs) | Modify Governor's budget proposal to provide a net increase of $9 million and 19 positions for the PID program. Specifically, (1) reduce the proposal by $2.9 million and 21 positions to more accurately account for savings from using more streamlined PIDs and (2) require Caltrans to report at budget hearings on its management of the program and the amount that will be reimbursed by local agencies. | Detail |
| 2/22/2013 | California Highway Patrol (CHP) | Replacement of CHP area offices | Withhold recommendation on the Governor’s January budget proposal to provide $1.5 million from the Motor Vehicle Account to CHP for advanced planning to replace five area offices that will be financed with the direct capital outlay procurement method. The CHP should first identify which five area offices will be replaced and why those facilities are most in need of replacement. | Detail |
| 2/22/2013 | High-Speed Rail Authority | Project management oversight services | Approve funding for external professional services, but reject budget bill language that would allow the High Speed Rail Authority to administratively establish an unspecified number of additional permanent positions. This language would not allow for appropriate legislative oversight of the establishment of new permanent state positions. | Detail |
| 2/22/2013 | High-Speed Rail Authority | Financial consulting services | Reduce funding for financial services by $1.25 million in Proposition 1A bond funds because some of the identified tasks would be more appropriate for, and less costly if performed by, existing state staff. | Detail |
| 2/21/2013 | Medi-Cal, State-Local Finance | Examining the State and County Roles in the Optional Medi-Cal Expansion | Adopt a state-based approach to the optional Medi-Cal expansion authorized under the federal Patient Protection and Affordable Care Act (ACA). Redirect a portion of the funding currently allocated to counties under 1991 realignment for indigent health to reflect the shift in responsibility for providing health care coverage to certain medically indigent adults from counties to the state. | Detail |
| 2/21/2013 | California Public Utilities Commission (CPUC) | CPUC's external auditing functions | Request the Joint Legislative Audit Committee to direct the Bureau of State Audits to conduct an audit of CPUC's processes for auditing accounts of entities that it regulates for regulatory and tax purposes, specifically utility balancing accounts. | Detail |
| 2/21/2013 | Energy and Resources Conservation and Development Commission | Electric Program Investment Charge (EPIC) | Absent legislative authorization of EPIC, reject Governor's January budget proposal to provide $192 million and 58.5 positions to implement the EPIC program. | Detail |
| 2/21/2013 | DGS | Reject proposed State parking garage repairs | Reject the Governor's January proposal for $1.1 million in special repairs to the Sacramento State Garage. | Detail |
| 2/21/2013 | DGS | Make two Certified Access Specialist positions limited term. Maintain oversight of program. | Alter the Governor's January proposal for five permanent positions at the Division of the State Architect by making two of the positions limited-term. Maintain oversight of the Certified Access Specialist program to ensure program outcomes meet legislative goals. | Detail |
| 2/21/2013 | Air Resources Board | Cap-and-trade auction revenues | Reflect legislative priorities for cap-and-trade auction revenues in budget. Given that such revenue must be used to mitigate greenhouse gas emissions, seek Legislative Counsel advice and consider any potential legal risks. | Detail |
| 2/21/2013 | California Public Utilities Commission | High-speed rail safety standards | Reject Governor's January budget proposal to provide $300,000 (Public Transportation Account) for three permanent positions to develop new safety standards for high-speed rail. The requested funding is premature as there is no plan to operate a high-speed train service in California before 2021. | Detail |
| 2/21/2013 | DGS | Reject building rental rate increase for ADA repairs and deferred maintenance | Reject Governor's January budget proposal for a temporary, across-the-board $0.10 rental rate increase for the state's office buildings because it is an inappropriate way to fund special repairs across multiple facilities. | Detail |
| 2/21/2013 | Commission on State Mandates | Explore Alternatives to Mandate Reimbursement Process Mandate | Direct the administration to work with local governments to explore alternative methods of reimbursing local governments for the cost of filing for mandate claims, with the objective of reducing costs and restoring reimbursement to local governments. | Detail |
| 2/21/2013 | Commission on State Mandates | Amend California Public Records Act Mandate | Amend the California Public Records Act to recast provisions determined to be a reimbursable mandate as best practices. Require each local government annually to comply with best practices or announce at its first regularly scheduled public meeting that the local government will not meet the best practices. | Detail |
| 2/21/2013 | Commission on State Mandates | Modify Local Agency Ethics Mandate | Eliminate future costs related to the local agency ethics mandate by modifying state law to make payment of compensation or expense reimbursement to local elected officials optional for all local governments. | Detail |
| 2/21/2013 | Department of General Services | Support High-Speed Rail Authority with property acquisition. | Modify this request to provide the additional positions and reimbursement authority on a two-year limited-term basis, rather than on a permanent basis. | Detail |
| 2/20/2013 | Office of Environmental Health Hazard Assessment | Provides five positions and $649,000 for the identification of disadvantaged communities | Seek guidance from Legislative Counsel on the appropriateness of the proposed fund source because there may be some legal concerns with using cap-and-trade revenue for this purpose. | Detail |
| 2/20/2013 | State Conservancies | No proposal | Due to diminishing availability of bond funds for conservancies, recommend directing the Natural Resources Agency to prepare a report by January 1, 2014 that evaluates the advantages, disadvantages, and cost implications of various options for reorganizing of the state’s 10 conservancies. | Detail |
| 2/20/2013 | Timber Harvest Regulation | Increase timber harvest program regulation by 49.3 limited-term positions and $6.8 million. | Approve request for funding from the Timber Regulation and Forest Restoration Fund for two limited-term positions for Natural Resource Agency and approve 47.3 of the requested positions on a permanent basis because workload associated with the program is consistent and ongoing. Permanent positions will also attract a stronger candidate pool. | Detail |
| 2/20/2013 | Department of Forestry and Fire Protection | Civil cost recovery program | Approve position authority, but withhold funding until legislationis passed to enable the use of the State Responsibility Area Fire Fund for this activity. If additional legislation is not passed, recommend using General Fund to support these positions. | Detail |
| 2/20/2013 | Department of Forestry and Fire Protection | Fire prevention and implementation of Chapter 311 | Withhold until proposed trailer bill is passed to enable the use of the State Responsibility Area Fire Fund for some positions, and additional information from CalFire is available. | Detail |
| 2/20/2013 | Department of Parks and Recreation | $1 million in funding for the maintenance of the Goat Canyon Sediment Basins | Withhold funding until DPR provides evidence that other fund sources cannot be used for this purpose, since the State Park Recreation Fund is the primary funding source for park operations. | Detail |
| 2/20/2013 | Wildlife Conservation Board and State Coastal Conservancy | Proposition 117 funding | Withhold until May Revision. Environmental bond funds may be available to meet Proposition 117 funding requirements instead of $21 million General Fund as proposed in the Governor's budget. | Detail |
| 2/20/2013 | Department of Pesticide Regulation | Increased funding of $788,000 and five positions for the evaluation of registered pesticides | Approve four positions and the related funding of $683,000. Reject one position and the related funding of $105,105 associated with enforcement because the department was unable to demonstrate increased workload for enforcement activities. | Detail |
| 2/20/2013 | Department of Water Resources | Integrated Regional Water Management (IRWM) Program | Deny $472.5 million from Proposition 84 for grant awards. Funding is not needed in the budget year because awards will not be made until 2014-15. | Detail |
| 2/20/2013 | Natural Resources Agency and Department of Water Resources (DWR) | Management of Bond Funds for Resources and Environmental Protection | Direct Natural Resources Agency and DWR to report at budget hearings on slow bond fund spending. Hold oversight hearings to identify possible legislative actions to accelerate flood control and Integrated Regional Water Management program spending. Evaluate all reappropriation requests in budget hearings. | Detail |
| 2/20/2013 | Department of Parks and Recreation and Department of Fish and Wildlife (DFW) | Mussel Infestation Prevention Program | Approve DFW position on a half-year basis at a cost of $75,000 from Harbor and Watercraft Revolving Fund because the position will not be needed until the grant applications are reviewed in late 2013-14. | Detail |
| 2/20/2013 | Department of Water Resources | Lake Perris Dam Remediation | Deny $11.3 million in funding from Proposition 84 because DWR has not fully analyzed alternatives. Direct DWR to report on estimated cost (including state cost) of alternatives to the proposed remediation, including a recreation-only facility, a smaller-capacity lake, and decommissioning the dam. | Detail |
| 2/19/2013 | Department of Corrections and Rehabilitation | Receiver's new medical staffing methodology | The Receiver's office should report at budget hearings on the implementation of its new staffing methodology, including the specific items required in the 2012-13 Budget Act. | Detail |
| 2/19/2013 | Department of Corrections and Rehabilitation | Extension of nursing positions for medication distribution | Withhold action on the administration’s proposal to make the 211 nursing positions for medication distribution permanent until the Receiver has reported on the staffing methodology he is currently in the process of implementing, as well as how expected declines in workload will affect the number of positions needed in the future. | Detail |
| 2/19/2013 | Judiciary | Transfer of $200 million in court construction funds to the General Fund | Approve Governor's January proposal to transfer $200 million from the Immediate and Critical Needs Account to the General Fund because of the fiscal benefit it provides the state. Require the branch to report in budget hearings on how project delays will be prioritized and whether the need or scope of current projects have changed due to trial court operational changes. | Detail |
| 2/19/2013 | Judiciary | Long Beach Courthouse lease payment | Approve Governor's January proposal to use Immediate and Critical Need Account (ICNA) funds for Long Beach Courthouse service payments--$34.8 million in 2013-14 and $54.2 million in 2014-15--as it benefits the General Fund on an ongoing basis and is a permissible use of ICNA funds. | Detail |
| 2/19/2013 | Department of Justice Bureau of Gambling Control | Reorganization of gambling oversight | Approve Governor's January proposal to increase the Department of Justice budget by $4.8 million from two special funds to reflect transfer of gambling oversight responsiblities from the California Gambling Control Commission. The proposal is consistent with and necessary to implement the reorganization plan enacted in 2012-13. | Detail |
| 2/19/2013 | California Gambling Control Commission | Reorganization of gambling oversight | Approve Governor's January proposal to decrease the California Gambling Control Commission budget by $5.4 million from two special funds to reflect the transfer of gambling oversight responsiblity to the Department of Justice Bureau of Gambling Control. The proposal is consistent with and necessary to implement the reorganization plan enacted in 2012-13. | Detail |
| 2/19/2013 | Judiciary | Trial court reserves policy | Withold action until administration has provided statutory language outlining proposals to assist trial courts manage their budgetary allocations under the new trial court reserves policy enacted in 2012-13. | Detail |
| 2/19/2013 | Judiciary | Implementation of prior-year trial court reductions and proposed efficiencies and fee increases | Approve Governor's proposed administrative efficiencies and user fee increases, as they provide trial courts with ongoing fiscal relief. Request that court stakeholders identify additional efficiencies at budget hearings. Require the branch to report on how trial courts plan to implement ongoing budget reductions and what impacts any operational changes may have on public access to courts. | Detail |
| 2/19/2013 | Department of Corrections and Rehabilitation | Governor's response to the three-judge panel prison overcrowding ruling | If the federal courts ultimately require the state to reduce the prison population to meet an existing or modified prison cap, something that may not occur for some months, craft population reduction measures consistent with legislative priorities. | Detail |
| 2/19/2013 | Department of Corrections and Rehabilitation | DeWitt Annex staffing | Reduce the budget for the DeWitt Annex in Stockton by 3.8 positions and $408,000 in the budget year to recognize the savings created by building a single electrified fence around the DeWitt Annex and the California Health Care Facility. | Detail |
| 2/19/2013 | Department of Corrections and Rehabilitation | Mule Creek State Prison staircase | Withhold action and direct CDCR to report at budget hearings on why the project to replace a ladder at Mule Creek State Prison with a staircase cannot be completed in a more timely fashion and for less than the proposed cost of $600,000. | Detail |
| 2/19/2013 | Department of Corrections and Rehabilitation | Adult prison and parole population funding adjustments | Withhold until May Revision. Technical adjustments may be necessary at that time. Direct CDCR to adjust its budget to correctly reflect the number of High Risk Sex Offender (HRSO) treatment slots that will be available in 2012-13. Direct CDCR to report at budget hearings on sex offender treatment being provided to non-HRSOs and separately budget funding for these offenders. | Detail |
| 2/19/2013 | Department of Corrections and Rehabilitation | AB 900 General Fund appropriation for infrastructure improvements | Revert the $110 million remaining in the AB 900 General Fund appropriation to subject CDCR infrastructure improvements to the normal capital outlay approval process. | Detail |
| 2/19/2013 | Division of Juvenile Justice | Juvenile population adjustments | Withhold action on the Governor’s juvenile facilities population request until the May Revision. Technical adjustments may be necessary at that time based on actual population trends. Budget should also fully incorporate reductions in non-staff expenditures directly resulting from the decreasing ward population. | Detail |
| 2/19/2013 | Board of State and Community Corrections | Law enforcement grants to cities | Reject the Governor’s January budget proposal to augment the police grants program by $7.5 million due to lack of justification. Approve the proposed change to provisional language which would clarify that all cities, including those that contract for police services, are eligible to receive a share of the grant funds. | Detail |
| 2/19/2013 | Board of State and Community Corrections | Update on jail construction funding program | Overview of recent programs to provide lease-revenue funding to counties to construct and renovate county jails. Recent bills provide total of $1.7 billion for these programs and could result in construction of about 14,700 new jail beds. | Detail |
| 2/19/2013 | Board of State and Community Corrections (BSCC) | Technical assistance and data collection | Direct BSCC to report to the Legislature on its plans to fulfill its legislative missions related to technical assistance and data collection. Approve Governor's January budget proposal for nine additional positions. Direct BSCC to convene a working group to identify a data collection system that is as comprehensive, uniform, and accessible as is reasonable. | Detail |
| 2/15/2013 | Department of Industrial Relations | Regulatory assessments and related proposals | Reauthorize Occupational Safety and Health Fund (OSHF) and Labor Enforcement and Compliance Fund (LECF) assessments and repeal the high hazard assessment that is deposited in the Targeted Inspection and Consultation Fund (TICF). Reduce OSHF by $9 million and increase TICF by like amount. Contingent on related legislative actions, reduce OSHF authority by $350,000 and four positions. | Detail |
| 2/15/2013 | Employment Development Department | Increase reimbursements and add provisional language for Employment Training Panel | Recommend approving the increase in reimbursements for the Employment Training Panel (ETP) but rejecting the provisional language. This language would give the administration authority to increase ETP's reimbursement budget by up to $3 million without legislative review. Control section 28.5 already allows for midyear reimbursement augmentations and includes a legislative review process. | |
| 2/15/2013 | Department of Industrial Relations | Child performer service permits: staffing augmentation | Modify the administration's request for eight permanent positions and $701,000 by approving the request on a two-year limited-term basis. This is a new program and the permit processing workload is largely unknown. Limited-term approval of this request would require the administration to justify the appropriate ongoing staffing level for this program in a future budget proposal. | |
| 2/14/2013 | Office of Technology Services (OTech) | Office of Technology Services (OTech) Spending Authority for Capacity Growth | Approval of the Governor’s proposal to increase OTech spending authority by $32.1 million to increase capacity to address customer service demand. (Four separate proposals totaling $32.1 million) | Detail |
| 2/14/2013 | Department of Technology | Department of Technology Prior-Year Adjustments | Approve the Governor’s technical budgeting proposal to adjust the Department of Technology’s spending authority to align previously approved budget actions with actual or better estimated expenditures. | Detail |
| 2/13/2013 | Local Government Financing | Insufficient ERAF | Consider limiting local government reimbursement for vehicle license fee (VLF) swap and triple flip funding shortfalls to actual sales tax and VLF revenue losses. Additionally, consider creating a locally administered mechanism to compensate local governments for VLF swap and triple flip funding shortfalls. | Detail |
| 2/11/2013 | Revenues | "Big Three" state taxes finish January $4.95 billion above administration projections | Provides update concerning January personal income, corporate income, and sales and use tax collections. | Detail |
| 2/8/2013 | Department of Corrections and Rehabilitation | Obtaining federal funds for inmate medical care | Hold budget hearings to identify and resolve any remaining obstacles preventing the Receiver from securing memoranda of understanding with counties to enroll inmates in their Low-Income Health Plans and require the Department of Health Care Services to report on its efforts to address problems that are preventing certain claims for federal reimbursement from being successfully processed. | Detail |
| 2/6/2013 | Revenues | January income tax revenues $5 billion above administration's projection (Updated) | Provides update concerning January 2013 income tax collections. | Detail |