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Reject Freeze for County Administration of Health and Human Services Programs

February 23, 2006 - The Governor proposes to freeze future state participation in county administrative costs for health and social services programs at the 2005-06 level, adjusted for caseload, but not inflation. We recommend rejecting the Governor’s proposal because it would restrict legislative flexibility to adjust funding and services levels.


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Increased Inspections Alone Will Not Ensure Safety In Residential and Child Care Facilities

February 23, 2006 - We review the Governor's licensing and certification initiative and conclude that the proposal does not address significant gaps in the enforcement process.


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California Failing To Meet Child Welfare Performance Goals

February 23, 2006 - As of January 2006, California is failing all seven outcome federal required child welfare outcome measures. Unless California improves its performance by the fall of 2006, the state faces $59 million in federal penalties. We review the Governor's child welfare proposals and recommend redirecting $15 million into flexible grants for counties to implement their existing improvement plans.


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Strategies to Meet Federal Work Participation Rates

February 23, 2006 - The federal Deficit Reduction Act of 2005 significantly raises the required work participation rates for California’s low-income families in the CalWORKs program. Failure to meet these higher participation rates would result in annual federal penalties which begin in 2008-09 at $173 million We present a range of strategies for meeting this challenge including: increasing participation among existing recipients, bringing former recipients who are employed back into the participation calculation, and establishing separate programs for those who may face substantial barriers to work.


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Budget Proposal Understates Mandate Costs

February 23, 2006 - The Governor’s Budget includes $242 million under the Commission on State Mandates’ budget item to: pay noneducation mandate claims in 2006-07, begin to retire the backlog of unpaid mandate claims, and provide a $50 million “set aside” to transform two mental health mandates into a categorical program. We find that the administration’s proposal does not provide sufficient resources to carry out its plan for 2006-07 and that the state likely will face a current-year mandate deficiency of about $140 million. We also review the way mandate information was provided in the administration's 2006-07 budget documents and make recommendations for improvement.


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Prison Telemedicine Expansion Would Save State Money, Improve Health Care and Public Safety

February 23, 2006 - The California Department of Corrections and Rehabilitation’s telemedicine program allows the department to deliver health care services to inmates without transporting them to outside medical facilities. Our review finds that opportunities exist for the department to significantly expand its use of telemedicine, thereby improving public safety and reducing the cost of providing inmate health care. We recommend legislation be enacted that requires the department to take steps to expand the use of telemedicine in prisons, which would potentially reduce transportation and medical guarding costs by several million dollars.


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Custody Assistants Would Save State Money and Improve Operations

February 23, 2006 - Some county jails utilize non-peace officer personnel (“custody assistants”) for custody-related tasks that do not require direct control of inmates. Instead of using such “custody assistants,” state prisons rely on correctional officers for all custody-related work. The creation and use of a custody assistant classification in state prisons would reduce state costs and improve efficiency, while reducing staff vacancies in state prisons.


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Recidivism Reduction Proposal Requires Modification

February 23, 2006 - The Governor’s budget includes funds to develop and expand a number of prison inmate and parole programs designed to reduce recidivism. While some aspects of this proposal have merit, many aspects lack important staffing and implementation details, and it is questionable that the department will be able to successfully implement so many programs at one time. We identify steps that the state should take to improve programming in state prisons, and recommend a reduction of approximately $28 million pending receipt and review of additional information.


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Automatic Spending for the Entire Judicial Branch is Not Justified

February 23, 2006 - The Governor’s budget proposes to expand the use of formula-based budgeting to the entire Judicial Branch. However, the proposal lacks a clear policy rationale and would likely lead to over budgeting of the courts. We recommend rejection of this proposal.


Report

Some Practical Steps to Increase Children’s Enrollment in Health Coverage

February 23, 2006 - The budget plan includes a package of proposals to encourage the enrollment of uninsured children in state health coverage. Some of the proposals are reasonable, but we recommend others be rejected or modified because they are overbudgeted or are likely to be ineffective.


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Reform of Licensing and Certification of Health and Social Services Providers

February 23, 2006 - The administration is proposing changes to the way the state conducts licensing and certification of providers of certain health and social services. We concur in some proposals, recommend others be reduced to correct overbudgeted staffing and funding, and propose further changes to improve the way these functions are carried out.


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Proposition 36 at a Crossroads

February 23, 2006 - Proposition 36 provided annual appropriations from the General Fund through 2005-06 to implement a voter-approved initiative requiring drug treatment instead of incarceration in prison or jail for certain nonviolent drug possession offenders. The guaranteed appropriations for Proposition 36 are expiring, giving the Legislature discretion now to determine the level of funding for this measure. We comment on how the funding level should be set and proposals for making policy changes in the Proposition 36 law.


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Medi-Cal’s Bitter Pill: High Payments to Pharmacies

February 23, 2006 - Medi-Cal’s lack of accurate information about the prices of prescription drugs means that the program is reimbursing pharmacies much more than appears to be reasonable. We recommend legislation to ensure that reimbursement for drugs is set at more appropriate levels.


Report

Long-Term Care Caseload and Cost Trends

February 23, 2006 - An increasing portion of long-term care spending is for community-based services rather than institutional care. We examine the “cost-drivers” behind the growth in these costs and recommend that administration budget requests for long-term care projects be modified.


Report

Hospital Waiver Increasing State General Fund Costs

February 23, 2006 - A new federal hospital financing waiver is estimated to result in a net increase in Medi-Cal costs of $39 million over its first two years. We recommend that the waiver instead be implemented in a manner that avoids these costs and generates significant state savings.