Summary of LAO Findings and Recommendations on the 2011-12 Budget

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Budget Issue
LAO Finding Or

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See Detail  Child Welfare Services and Foster Care Additional Child Welfare Realignment Issues In addressing the implementation of 2011 realignment, the Legislature may want to consider the following issues specific to child welfare: (1) prior state-county sharing ratios, (2) anticipated future program costs, and (3) base funding. 8-18-11
See Detail  AB 3632 mental health services Realignment of funding and services Adopt Governor's May Revision proposal to repeal the AB 3632 mandate and shift funding and responsibility to schools in 2011-12. 5-24-11
See Detail  County Welfare Automation Proposed Los Angeles Welfare Automation Suspension Pause, rather than suspend indefinitely, the LEADER Replacement System (LRS). This is one of three county-led consortia that make up the statewide automated welfare system (SAWS) and is nearing the end of its useful life. Given federal concerns, we believe the Legislature should pause this project pending the development of a longer-term comprehensive strategy for SAWS. 5-23-11
See Detail  Department of Social Services (DSS) Adoption Assistance Program Rate Increase Consider redirecting $6.6 million ($2.8 million General Fund) from the Adoption Assistance Program (AAP) to Child Welfare Services (CWS). In addition to funding a court-imposed 31 percent Foster Care home rate increase, the May Revision proposes a similar discretionary grant increase for prospective AAP cases. We believe the issue of parity between AAP grants and Foster Care home rates should go through the policy committee process. Temporarily redirecting funds preserves legislative control. 5-20-11
See Detail  Employment Development Department Use of federal incentive funds for implementation of Alternative Base Period Consider using federal American Recovery and Reinvestment Act (ARRA) incentive funds to offset General Fund costs at the Employment Development Department. By setting aside additional ARRA funds, the Legislature could offset EDD General Fund costs of about $30 million in 2011-12 followed by annual General Fund savings of about $23 million through 2014-15. 5-20-11
See Detail  California Children and Families First Commission Redirection of Proposition 10 funds Adopt the Governor’s January 2011-12 budget proposal to place a measure before voters in a June 2011 special election to allow the use of Proposition 10 funds for children on Medi-Cal, reducing state General Fund costs by $1 billion in the budget year and $215 million in 2012-13. The Legislature could go beyond the Governor’s proposal by increasing the amount to be redirected from Proposition 10. 1-28-11
See Detail  California Department of Aging Elimination of the Multipurpose Senior Services Program (MSSP) Reject elimination and instead reduce the MSSP program by $5 million General Fund. (The Governor's proposed elimination of MSSP is estimated to save $19.9 million General Fund.) Direct the Departments of Aging and Health Care Services to begin negotiating with the federal government to reduce the operational costs of the MSSP program to allow local sites to manage the reduction while maximizing the number of recipients served. 1-28-11
Community Care Licensing CDSS BCP#51--Recently Enacted Legislation Reject Governor’s January 2011-12 budget proposal for authority to establish 0.8 positions in the budget year and 1.5 positions in 2012-13 to implement Assembly Bill 2084, which requires licensing program analysts to inspect beverages served at child day care facilities. We believe these activities can be absorbed in the current work flow. We have no issues with the remaining portion of this proposal which is related to different legislation. 1-28-11
See Detail  Department of Social Services (DSS) Child Welfare Realignment The Governor's proposal to realign the child welfare system to counties and shift $1.6 billion in tax revenue in lieu of General Fund has merit, but the Legislature will have to address some significant fiscal and policy issues in developing a realignment plan. 1-28-11
See Detail  Department of Social Services (DSS) Approach to the 2011-12 CalWORKs budget The Governor's budget proposes a series of CalWORKs solutions which total about $1.5 General Fund. The Legislature faces a difficult balancing act between maintaining program goals and obtaining significant savings. In an available handout, we assess the impacts of the Governor's proposals and present alternatives. 1-28-11
See Detail  SSI/SSP Reduce monthly grants for SSI/SSP individuals to the federal minimum. Adopt the Governor's proposal to reduce grants to the federal minimum. This would result in General Fund savings of $15 million in 2010-11 and $182 million in 2011-12. 1-28-11