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April 27, 2010 - Recent legislation authorized the Department of General Services (DGS) to sell and then lease back 11 state-owned office properties. The sale-leaseback is designed to free up the state’s equity in the buildings to provide one-time revenue for addressing the state’s current budgetary shortfall. We estimate that the sale of buildings would result in one-time revenue to the state of between $600 million and $1.4 billion, but that annual leasing costs would eventually exceed ownership costs by approximately $200 million.
Over the lives of these buildings, we estimate the transaction would cost the state between $600 million and $1.5 billion. The Legislature will need to weigh how these costs compare to other alternatives for addressing the state’s budget shortfall. In our view, taking on long-term obligations—like the lease payments on these buildings—in exchange for one-time revenue to pay for current services is bad budgeting practice as it simply shifts costs to future years. Therefore, we encourage the Legislature to strongly consider other budget alternatives.
(Short video introducing this report)
April 22, 2010 - Presented to Senate Budget and Fiscal Review Subcommittee No. 1 on Education
April 21, 2010 - Presented at the Latina Action Day, April 21, 2010.
April 20, 2010 - Presented to: Assembly Committee on Aging and Long-Term Care
April 20, 2010 - Presented to Assembly Budget Subcommittee No. 2 On Education Finance
April 14, 2010 - The state's major climate change legislation—commonly referred to as "AB 32"—is approaching a crossroads in its implementation. The state's AB 32 activities, currently carried out mainly by the Air Resources Board (ARB) but also by eleven other state agencies, will be shifting from the development of plans and regulations to program implementation and enforcement. Legislative oversight of the overall size and components of the AB 32 program budget is very important, particularly given this upcoming shift in the program's focus. In this budget-focused brief, we provide details of the Governor's AB 32 budget proposal and ARB's plan to pay for most of the AB 32 program administrative activities from a new fee. We also offer recommendations to ensure that (1) sufficient resources are devoted to economic analysis of AB 32 measures and (2) future AB 32 expenditures and fees are justified and set at appropriate levels.
April 13, 2010 - Presented to Assembly Budget Subcommittee No. 2 On Education Finance
April 8, 2010 - Presented to Senate Budget Subcommittee No. 1 on Education
April 7, 2010 - Testimony of Higher Education Director, Steve Boilard, to the Joint Committee on the Master Plan for Higher Education.
April 7, 2010 - Presented to Senate Budget Subcommittee No. 1 on Education
April 6, 2010 - Presented to Assembly Budget Subcommittee No. 2 on Education Finance
March 26, 2010 - Health and social services (H&SS) expenditures account for about 29 percent of General Fund spending in California. As part of his plan to bring revenues and expenditures into balance, the Governor’s budget proposes major reductions and program eliminations in the area of H&SS. In this report we describe spending and program requirements as well as key considerations for evaluating budget solutions. We also identify strategies for achieving savings in a restricted environment.
This report and the companion piece The 2010-11 Budget: Health and Social Services Budget Primer provide a framework for policymakers as they make very difficult budget decisions in health and social services.
March 26, 2010 - Addresses the 2010-11 Budget through a Special Session brief, a summary of Social Services findings and recommendations, and the companion reports Health and Social Services Budget Primer and Health and Social Services—A Restricted Environment.
March 26, 2010 - Addresses the 2010-11 Budget through a Special Session brief, a summary of Health findings and recommendations, and the companion reports Health and Social Services Budget Primer and Health and Social Services—A Restricted Environment.
March 26, 2010 - In 2009-10, expenditures for health and social services programs in California are estimated to be about $25 billion or 29 percent of statewide General Fund spending. Spending on health and social services programs accounts for 36 percent of total spending when special funds, federal funds, and the General Fund are included. This primer provides an understanding of the overall health and social services expenditures, the workings of major health and social services programs, spending trends in major programs, and the major funding sources for health and social services programs.
This primer and the companion piece The 2010-11 Budget: Health and Social Services—A Restricted Environment provide a framework for policymakers as they make very difficult budget decisions in health and social services.