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LAO Report

Report

Improving Academic Success For Economically Disadvantaged Students

January 6, 2009 - California’s economically disadvantaged (ED) students are failing to meet federal and state academic standards and generally perform below their non-economically disadvantaged peers. This trend appears in all grade levels, with nearly two-thirds of second grade ED students and nearly three-fourths of eighth grade ED students performing at low levels. Given these shortcomings, we believe the state needs to be both more strategic and more flexible in its approach to supporting ED students. Specifically, we recommend: redefining the conversation to focus on the barriers impeding academic success; simplifying the system for all involved; refining funding formulas to reflect the pervasiveness and severity of students’ academic challenges; strengthening overall accountability by measuring year-to-year growth in student achievement; and, identifying and facilitating the sharing of best practices.


Report

Taxpayer Use and Administration of the Revised 540 2EZ Tax Form

January 5, 2009 - This report was prepared pursuant to Chapter 844, Statutes of 2004 (SB 1534, Johnson) which expands the income eligibility criteria for use of the 540 2EZ tax form in filing resident personal income taxes (PITs). The measure also requires the Legislative Analyst’s Office to study the impact of the law change.


Report

Advancing Transportation Projects To Stimulate the Economy: An Alternative Approach

December 10, 2008 - As part of his 2008–09 special session package, the Governor proposed to speed up construction of $822 million in planned state transportation projects. We believe that the concept of accelerating transportation projects has merit. We offer an alternative approach that we believe would provide greater benefits with a similar amount of funding. Specifically, we recommend the use of revenue bonds backed by future gas tax revenues to accelerate 122 highway rehabilitation projects. These projects would be ready for construction in 2008–09, 2009–10, and 2010–11, but are not scheduled for construction until later years, due to limited funding. Our bond proposal would require voter approval. Accordingly, we recommend the Legislature place a measure on the next ballot to seek voter approval to issue $800 million in gas tax revenue bonds to fund these projects.


Report

Overview of the 2008 Special Session Proposals

November 10, 2008 - We concur with the administration’s assessment that the state’s struggling economy signals a major reduction in expected revenues. Combined with rising state expenses, we project that the state will need $27.8 billion in budget solutions over the next 20 months. The state’s revenue collapse is so dramatic and the underlying economic factors are so weak that we forecast huge budget shortfalls through 2013‑14 absent corrective action. From 2010‑11 through 2013‑14, we project annual shortfalls that are consistently in the range of $22 billion.


Report

California’s Water: An LAO Primer

October 20, 2008 - California’s water delivery system is facing a series of challenges due in part to a combination of increasingly variable weather conditions, legal requirements, and system operation and conveyance constraints. These challenges affect water availability, reliability, and delivery. Recent public and private efforts have sought ways to address these challenges. These measures include proposals to increase water through groundwater storage, surface storage, infrastructure changes, and system operation improvements, among others. This report provides, through a “quick reference” document relying heavily on charts to present information, a snapshot of water in California, including: (1) An Overview of California’s Water Governance; (2) Water Supply, Source, and Delivery; (3) How Do We Finance Water Projects? (4) What Drives the Cost of Water?, and (5) Issues for Legislative Consideration


Report

Investment Income and the Insurance Gross Premiums Tax

July 24, 2008 - Submitted Pursuant to Chapter 868, Statutes of 2004 (AB 263, Oropeza)


Report

Back to Basics: Improving College Readiness of Community College Students

June 16, 2008 - Most students who enter California Community Colleges (CCC) lack sufficient reading, writing, and mathematics skills to undertake college–level work. Thus, one of the CCC system’s core missions is to provide precollegiate “basic skills” instruction to these students. In this report, we find that a large percentage of students do not overcome their basic skills deficiencies during their time at CCC. We identify a number of state policies that we believe stand in the way of student success, and recommend several structural and systemwide changes designed to help increase preparedness and achievement among community college students.


Report

A New System of Support For Low–Performing Schools

June 10, 2008 - California currently operates two systems designed to turn around low–performing schools—one for state purposes and one for federal purposes. The two systems are uncoordinated and often duplicative, in addition to being poorly structured. We recommend replacing the two systems with an integrated system that serves both state and federal purposes. Under the new system, the state would support district reform efforts. Districts would receive different levels of support depending on the severity of their underlying performance problem and be given short–term funding linked to specific short–term district reform activities. By virtue of being integrated and district–centered, the new system would cost substantially less than the existing system and could be supported entirely with federal funding.


Report

Highlights of the 2008-09 Analysis and Perspectives and Issues

February 20, 2008 - This document summarizes the major findings in the 2008-09 Analysis of the Budget Bill and Perspectives and Issues.


Report

Reforming Inmate Education to Improve Public Safety: From Cellblocks to Classrooms

February 12, 2008 - Executive Summary
According to national research, academic and vocational programs can significantly reduce the likelihood that offenders will commit new offenses and return to prison. Despite these findings, the state offers these programs to only a relatively small segment of the inmate population. Moreover, the inmate education programs that do exist suffer from a number of problems that limit their effectiveness at reducing recidivism. To improve prison education programs and public safety, we recommend several structural reforms to increase the performance, outcomes, and accountability of the existing inmate education programs, as well as ways to expand their capacity at a low cost to the state.


Report

Correctional Officer Pay, Benefits, and Labor Relations

February 7, 2008 - The administration proposes a 5 percent raise for correctional officers and legislation to allow it to impose a labor settlement on the officers’ union, the California Correctional Peace Officers Association (CCPOA). We find that the officers’ compensation levels are sufficient to allow the prisons to meet personnel needs at the present time, but we generally agree with other administration proposals to increase management control in prisons. We note that the dysfunctional relationship between the administration and CCPOA makes it more difficult to address the many issues facing the state’s prison and personnel management systems.


Report

Restoring the Salton Sea

January 24, 2008 - First, we recommend the Legislature set explicit policy priorities in statute for addressing environmental problems at the Sea. We consider protection of air quality and preservation of wildlife habitat to be the highest priorities. Second, we recommend the Legislature adopt a comprehensive plan at the outset of the restoration process. Finally, we recommend the Legislature consider funding interim measures to address priority issues such as air quality or wildlife habitat in the near term.


Report

Redefining Student Data Access Policy

January 17, 2008 - Existing state and federal laws will limit the ability of California to use the state’s new longitudinal student data system once it is completed in 2010. To ensure the full benefits of the new system can be achieved, we recommend the state adopt a new data access policy, expanding the capacity of instructors and policy makers to use student data to improve instruction while preserving student privacy protections.


Report

Tax Expenditure Reviews

November 16, 2007 - Tax expenditure programs (TEPs) are features of the tax code—including credits, deductions, exclusions, and exemptions—that enable a targeted set of taxpayers to reduce their taxes relative to what they would pay under a “basic” tax-law structure. The state’s TEPs number in the hundreds and are valued in the tens of billions of dollars annually, and are used mostly to encourage certain types of behavior or provide financial assistance to taxpayers. This report provides information on newly enacted TEPs and reviews selected existing TEPs as to their effectiveness and efficiency. One of these is the mortgage interest deduction, valued at about $5 billion yearly. This program is found to be an inefficient means of promoting home ownership, and options are offered for improving it, including capping the deduction amount or replacing it with a targeted tax credit.


Report

Improving the Appraisal Function in Resources Land Acquisitions

October 18, 2007 - With the billions of dollars of state funds spent in recent years or available for expenditure (from existing bond funds) for land acquisitions for resource conservation purposes, it is important that the purchase price of these acquisitions be supported by a sound appraisal process. However, our review found that the quality and objectivity of state resource-related appraisals are impeded by both a lack of comprehensive standards and insufficient independence of the appraisal function from the land-acquiring agencies. We also found that limits on the public disclosure of appraisal-related information make public and legislative oversight of resource acquisitions difficult. In this report, we make several recommendations to improve the appraisal function for resource acquisitions, ultimately to protect taxpayers from being overcharged in these transactions.