February 20, 2008

Highlights of the 2008-09 Analysis

Outlook on Economy and Revenues

Assessment of Governor’s Budget

LAO’s Alternative Budget Approach

More Balanced and Targeted Approach

Revenue Solutions

Proposition 98

Higher Education


Social Services

Criminal Justice

Parole Realignment


General Government

Key Differences Between the Governor’s Budget and LAO Alternative

Other Findings and Recommendations


Reform K–14 Funding System

Higher Education

Legislative Oversight of Campus Growth and Mitigation Costs


Pay–for–Performance Improves Patient Outcomes and Reduces Medi–Cal Costs

Funding for Over 30 Public Health Programs Is Fragmented and Inflexible

Failure to Promulgate Regulations Leads to State Laws Not Being Enforced

Social Services

Alternative Approaches to Reducing Child Welfare Services (CWS) Costs

Rethinking the Future of Child Welfare Automation

Alternatives to the 10 Percent Foster Care Rate Reduction

Alternative Approach to Increasing Work Participation in CalWORKs

Tying State Participation in In–Home Supportive Services (IHSS) Wages to the Quality of the Workforce

Alternatives to the Governor’s IHSS Hour Reduction

Criminal Justice

Implementing AB 900’s Infill Bed Plan: Progress and Concerns


Highway Rehabilitation and Maintenance Requires More Funds

Proposition 1B Projects at Risk of Being Delayed

Restructuring of Transit Funding Will Likely Delay Projects

Public Transportation Account (PTA) Requires Loan to Stay Solvent

Hike in Vehicle Registration Fee to Fix Motor Vehicle Account (MVA)


Governor’s AB 32 Funding Plan: Not Responsive to Legislative Direction

State’s Hydrogen–Powered Vehicle Program: Little Progress, but Still Plenty of Fuel to Go Forward

CALFED Budget Needs Better Focus, Better Funding Plan, Better Targeted Science

Recommend Hearings on the “State” of the State’s Water Supply

Flood Management Activities Should Be Funded by Beneficiaries

Water Quality Programs Should Be Funded by Polluters

Landowners in Wildland Areas Should Pay for Their Fire Protection, Rather Than Insurance Policyholders Statewide

State Timber Harvest Plan Review and Enforcement Costs Should Be Paid By Timber Operators

Increased State Park User Fees Can Prevent Park Closures and Address Maintenance Shortfall

General Government

Increase Legislative Oversight and Reduce Debt Financing of FI$Cal

LAO Publications

To request publications call (916) 445-4656. This report and others, as well as an E-mail subscription service , are available on the LAO's Internet site at www.lao.ca.gov. The LAO is located at 925 L Street, Suite 1000, Sacramento, CA 95814.

Table of Contents for the 2008-09 Analysis of the Budget Bill
Table of Contents for the 2008-09 Perspectives and Issues
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