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Health and Social Services Caseload Enrollment Cap Flawed

February 18, 2004 - The Governor's budget plan proposes to establish limits on enrollments ("caps") for certain specified health and social services programs. We recommend that the Legislature consider the Governor's enrollment cap proposal on a case-by-case basis, weighing the potential fiscal benefits of capping each identified health and social services program against the complexities and issues relating to the creation of caseload caps. Based upon such an analysis, we recommend that nine be rejected, propose one be approved with some modifications, and make no recommendation regarding one cap proposal.


Report

Governor’s Child Care Reform Proposal: An Assessment

February 18, 2004 - The Governor's budget proposes a number of significant reforms to California's subsidized child care system. These proposals effectively prioritize limited child care resources. However, the Governor's proposals lack important policy, implementation, and administrative details that would help the Legislature weigh state savings against reducing child care services for a significant number of lower-income families. We evaluate the proposals' effect on children, families, and the state budget, and present some alternative approaches.


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Improving The State’s Medi-Cal Antifraud Program

February 18, 2004 - During the past four years, the Legislature has approved significant increases in resources to combat fraud in the Medi-Cal Program. While these actions have resulted in increased savings and allowed the state to avoid some additional program costs, fraud remains a major concern in the Medi-Cal program. In this analysis, we explain the structure of the Department of Health Services' (DHS) antifraud program and how it compares to national models of fraud control in fee-for-service Medicare and Medicaid. We identify areas in which the DHS could be more effective in combating Medi-Cal fraud and offer recommendations as to how DHS could better manage and structure its antifraud efforts. We also review the Governor's 2004-05 budget proposals for expansion of antifraud efforts and recommend changes. Reduce Item 4260-001-0001 by $2,354,000.


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Corrections Overtime Expenditures

February 18, 2004 - Despite recent oversight and administrative efforts by the Legislature and the Department of Corrections (CDC), the department's overtime expenditures are expected to remain over $230 million in the current year. In this analysis, we provide background information on this issue, then an update on the current status of overtime, and finally recommendations for controlling departmental overtime.


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Elimination of Inspector General Not Justified

February 18, 2004 - The Governor has recently indicated that he plan's to withdraw the administration's budget proposal to eliminate the Office of the Inspector General. We think that eliminating the office would result in reduced oversight of California's correctional system. We recommend retaining the office, and offer suggestions for strengthening it.


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Evaluating The Status of Parole Reforms

February 18, 2004 - The 2003-04 Budget Act required the Department of Corrections to implement a number of parole reforms designed to reduce parolee recidivism, and save money. We find that the department is experiencing implementation delays which will reduce the savings from these reforms. To achieve greater savings, we recommend that the Legislature consider further expansion of programs designed to prevent returns to prison.


Report

California Teleconnect Fund: An Assessment

February 18, 2004 - The Governor's budget proposes a significant reduction in expenditures for the California Teleconnect Fund (CTF) program, which provides discounts on telephone service and other advanced telecommunication services that provide access to the Internet (such as digital subscriber line [commonly referred to as DSL] services) to schools, libraries, and qualifying hospitals and community-based organizations. While we have concerns regarding the operation of the current program, we find this underfunding to be contrary to legislative direction. To address this, we recommend the California Public Utilities Commission report at budget hearings on the projected funding requirements of the program in the budget year. Furthermore, if the CTF program requires additional funding in 2004-05, we identify options for the Legislature to consider to provide additional funding for the program.


Report

State Park Services: Potential for Increased Private Sector Partnership

February 18, 2004 - We find other park jurisdictions contract with the private sector for the delivery of types of services not contracted out by the Department of Parks and Recreation. We recommend a pilot program to further explore the pros and cons, as well as the costs and benefits, of expanding these public-private partnering activities in state parks.


Report

Governor’s Resources Bond Expenditure Proposal

February 18, 2004 - The Governor has deferred the submittal of most of his resources bond expenditure proposals to later in the spring, leaving major gaps in programs traditionally funded from bond funds. We provide a framework to assist the Legislature in evaluating the forthcoming bond proposals; this includes ensuring that the Governor’s proposals reflect legislative priorities for bond funding.


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California Power Authority: Where Now?

February 18, 2004 - The budget proposes eliminating the California Consumer Power and Conservation Financing Authority (CPA). Although CPA has been unable to fulfill its core mission to finance new power plants, this has largely been due to market conditions. Given significant uncertainties regarding the adequacy of the state’s energy supply to meet future demand, we think retaining some of CPA’s functions (either within or outside CPA) has merit


Report

Timber Harvest Fee Proposal Should Go Further

February 18, 2004 - The budget proposes to impose a new fee on timber owners to partially cover the costs incurred by the California Department of Forestry and Fire Protection (CDFFP) in its review and enforcement of timber harvest plans (THPs) beginning in the current year. While this is a step in the right direction, we recommend the enactment of fee legislation that would go further by fully funding the costs of CDFFP and all other state agencies with THP review responsibilities.


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State’s Approach to Flood Management Should Be More Strategic

February 18, 2004 - Development in and around floodplains has contributed to increased losses due to floods, but the state’s efforts to improve floodplain management have been reduced significantly in recent years. We recommend reducing the state’s share of funding for certain flood control projects to better reflect the local benefit from these projects. This would create future savings that could be used to make more strategic flood management investments and benefit the General Fund.


Report

CALFED Bay-Delta Program: At A Funding Crossroads

February 18, 2004 - The CALFED Bay-Delta Program—with a projected $6 billion funding gap—is at a funding crossroads. To date, the state has been the biggest funding contributor by far to the program, with federal and local governments and water users lagging in their support. We recommend a funding framework for CALFED that applies the beneficiary pays principle, including a fee on water users that take water from the Bay-Delta system.


Report

Transportation Needs Stable Long-Term Funding

February 18, 2004 - State transportation funding has not kept pace with increasing travel for various reasons, including the fund transfers noted above. Stabilizing transportation funding would increase the efficiency of transportation expenditures. We recommend the Legislature (1) ask voters to repeal Proposition 42, (2) replace the lost transportation revenue with an increase in the gas tax, and (3) index the gas tax to prevent future erosion of transportation revenues relative to travel demand.


Report

Governor’s Transportation Proposal

February 18, 2004 - In both the mid-year cuts submitted in November 2003 and in the 2004-05 Governor's Budget, the administration has proposed to use a number of transportation funds to provide about $2 billion in one-time General Fund aid over the current and budget years. This includes suspending in 2004-05 the transfer of $1.1 billion derived from the sales tax on gasoline to the Transportation Investment Fund.