ASSEMBLY- BUDGET SUB COMMITTEE
OVER SIX JOINT INFORMATIONAL
HEARING WITH THE COMMITTEE ON
ACCOUNTABILITY AND
ADMINISTRATIVE REVIEW TODAY WE
ARE GOING TO BE DISCUSSING
STATE EXPENDITURES I JUST WANT
TO READ A COUPLE OF
INSTRUCTIONS FOR EVERYBODY
ESPECIALLY FOR THOSE FOLKS WHO
ARE HERE WE ARE HAVING A
PHYSICALLY DISTANT IN PERSON
HEARING. EVEN THOUGH THIS IS
THE LARGEST HEARING ROOM IN THE
CAPITOL WE CAN ONLY ACCOMMODATE
A FEW MEMBERS. WE ARE FOLLOWING
STRICT PHYSICAL DISTANCING
PROTOCOLS FOR THE PUBLIC TO
ENTER INTO LEAVE THE CAPITAL.
WE ASK THAT THIS PEOPLE ARE IN
THE HEARING ROOM THAT THE
RESPECTIVE PHYSICAL DISTANCING.
AS WELL INDEED DO NOT TOUCH THE
MICROPHONE. WELL ONE PUBLIC
COMMENT COMES EVERYBODY WILL
HAVE ONE MINUTE OF TESTIMONY
WE'RE NOT HAVING ANY VOTE STATE
THIS IS A- INFORMATIONAL.
HEARING FOR PUBLIC COMMENT WALL
CAN COME TO THE STATE CAPITAL
CAN ALSO COME TO A VARIETY OF.
MEETING ROOMS AROUND THE STATE
THOSE ARE IN THE AGENDA- AND IF
YOU WERE NOT ABLE TO ATTEND.
ANY OF THE MEETING ROOMS YOU
CAN ALSO SUBMIT YOUR TESTIMONY
IN WRITING. TO THE EMAIL BUDGET
SUB S. U. B. SIX THE NUMBER SIX
AT FE ES SAM DOT CA DOT GOV.
ALSO HAVE ANY TROUBLE
CONTACTING US FOR FINDING THE
HEARING ROOM. IN COLOR
COMMITTEE AT 916-319-2099 BOTH
THE SOME OF. GIVE A FEW BRIEF
OPENING REMARKS AND TURN OVER
TO MAD MADAM CHAIR AS WELL AS
WE KNOW THAT. ECONOMIC D. D.
KANEMI THAT WE X. ON THE LAST
IT NINE YEAR. WITH A HUGE
UPTICK IN THE ECONOMY HAS
SLOWLY COME TO AN END- WITH
GOING INTO A COMPLETE NINETEEN
APPEARS THAT WE ARE SLOWLY
MOVING INTO A RECESSION. GIVEN
THAT THE FISCAL SITUATION THE
STATE WILL BE CHANGING
SIGNIFICANTLY- THIS LAST YEAR
WAS THE FIRST DEFICIT YEAR THAT
WE'VE HAD IN QUITE A NUMBER OF
YEARS SINCE THE- GREAT
RECESSION. AND WHILE WE WERE
MAKING VERY VERY DIFFICULT
BUDGET DECISIONS A DEAD BIG THE
QUESTION AS TO WHERE THE STATE
DOES SPEND ITS MONEY. SO WE
WANT TO TAKE THIS TIME DURING
RECESS AS WE GET READY FOR NEXT
YEAR'S BUDGET. TO TAKE A LOOK
AT WHERE THE STATE EXPENDITURES
ARE GOING. WELL WHAT
INVESTMENTS WE HAVE MADE THE
WHITE HOUSE- WHAT HAS LAGGED IN
WHAT HAS GROWN AND I REALLY
APPRECIATE THE LEGISLATIVE
ANALYST'S OFFICE FOR PROVIDING
THIS VERY. VERY VERY HELPFUL
AND EXTRAORDINARILY USEFUL A
HANDOUT. AND AGAIN IT'S JUST
VERY CRITICAL FOR US TO
UNDERSTAND. THE FLEXIBILITY WE
DO HAVE IN THE GENERAL FUND AND
WHAT AREAS WE DON'T HAVE
FLEXIBILITY. TO REALLY DO
APPRECIATE. MY FELLOW TEACHER
TODAY MISTER NORTH WHO TO THE-
OF MINISTRY REVIEW CA WHO WAS
REALLY THE ONE WANTED TO HAVE
THE- I JUST WANT TO THANK HER
FOR. HER WILLINGNESS TO DO INTO
THIS IMPORTANT TOPIC AND I
THINK FOR OUR FOR US TO HAVE OF.
MEN. THANK YOU MISTER CHAIR. I
AS KNOW CAL. IS CAN FOR A
MOMENT OF INCOME TO. A
DEVASTATING PANDEMIC. A
PANDEMIC INDUSTRY. AS THE
ECONOMIC CRISIS THAT WE HAVE
FACED SINCE THE GREAT
DEPRESSION IN A MOMENT LIKE
THIS- THE SIMPLE TRUTH IS THAT
THERE ARE NO EASY ANSWERS-
EQUALLY THERE CAN BE NO SACRED
COWS- SO I THINK THIS HEARING.
IS AN OPPORTUNITY FOR US TO
TAKE A REALLY HARD LOOK AT
SPENDING ACROSS OUR STATE'S
DEPARTMENTS AGENCIES AND
PROGRAMS AND AT THE GOAL IS TO
IDENTIFY. OPPORTUNITIES FOR
SAVINGS OPPORTUNITIES FOR
EFFICIENCIES AND I THINK FOR
COMMITTEE MEMBERS TO REALLY
UNDERSTAND THE TRADE OFFS SO
THAT WE ARE ABLE TO MAKE THE
BEST DECISIONS FOR CALIFORNIA
AND- THE BEST DECISIONS FOR THE
CALIFORNIANS WHO. HAVE
ENTRUSTED US TO HELP NAVIGATE
THROUGH THIS TIME OF CRISIS TWO
THANK YOU TO ALL OF OUR
PANELISTS FOR JOINING US TODAY
AND- AFTER ALL OF THAT THE WORK
THAT SAID THAT YOU DID IN
PREPARATION FOR THIS HEARING.
AND THANK YOU MISTER CHAIR FOR
A FOR PUTTING THIS TOGETHER
WITH US GREAT THANK YOU THANK
YOU FOR. HOSTING US AS WELL ANY
OTHER COMMENTS FROM THE
MEMBERSHIP. BILL SEEING NONE
WE'RE GOING TO DON'T READ INTO
A WE HAVE. WAS FROM THE
LEGISLATIVE COUNCIL AS WELL TO
PERFORM WE WERE START MISS CARE
CHU. THANK YOU CHAIR MADAM AND
IN HOLLINGS WITH ALLEGED AND
OFFICE I'M I'M TO BE SPEAKING
TO YOU TODAY FROM A HANDOUT
THAT HOPEFULLY YOU ALREADY
HAVE- IN FRONT OF YOU AND FOR
THOSE OF YOU WHO ARE FOLLOWING
ALONG AT HOME- THAT YOU CAN
FIND A HAND OUT AT DILIO DOT CA
DOT GOV ON THE RIGHT SIDE OF
THE WEBSITE. SO MY PRESENTATION
TODAY IS GOING TO HAVE. FOUR
DIFFERENT PARTS AND BEFORE I
GET INTO THE MEAT OF THE
PRESENTATION I JUST WANT TO
GIVE YOU A BIT OF AN OVERVIEW.
ON THE VARIOUS TOPICS THAT ARE
GOING TO BE COVERING BECAUSE
THEY'RE GOING TO COVER QUITE A
LOT OF GROUND. SO THE FIRST- IN
THOSE FOUR AREAS THE FIRST ONE
IS GOING TO BE ABOUT TRENDS IN
THE STATE BUDGET AND IN
PARTICULAR LOOKING AT. HOW
STATE SPENDING HAS CHANGED OVER
TIME OVER THE LAST NUMBER OF
DECADES AND I'M KIND OF
FOCUSING IN. ON THE LAST DECADE
IN PARTICULAR. THE SECOND TOPIC
AREA IS GOING TO BE ABOUT HOW
STATE EXPENDITURES ARE
ORGANIZED SO. WHAT ARE THE
DIFFERENT FUNDS ASSOCIATED WITH
THE STATE BUDGET ONE OF THE
FUNCTIONS OF THOSE FUNDS- AND
HOW CAN WE THINK OF OUR
CATEGORIES OF STATE SPENDING.
THE FOURTH AREA WILL BE ABOUT
STATE OPERATIONS IN PARTICULAR
AND THIS IS THE COSTS THAT ARE
INCURRED BY THE STATE. IN ORDER
TO RUN SERVICES TO RICHER
PROVIDE SERVICES OR TO RUN
PROGRAMS. LET'S TALK ABOUT THAT
VERY BRIEFLY. AND THEN THE
FOURTH AREA WILL BE ABOUT
ADMINISTRATIVE COSTS IN
PARTICULAR. AND IN THE
ADMINISTRATIVE AREA I'LL TALK
ABOUT HEAD QUARTER COSTS AND
STATEWIDE GENERAL
ADMINISTRATIVE COSTS AND FEES
ARE. A VERY SMALL SUBSET OF
WHAT WE THINK OF AS STATE.
OPERATIONS COSTS. SO STARTING
WITH THE FOR PAGE. THIS IS
SHOWING ESSENTIALLY. THE STATE
BUDGET HAS COMPAREDTO THE
STATE ECONOMY. OVER TIME SINCE
THE NINETEEN FIFTIES AS YOU CAN
SEE FROM THE CHART AND
ESSENTIALLY T'S IT AS A SHARE
SO- IT FOR IN THE NINETEEN
FIFTIES THE STATE OF. THE STATE
BUDGET WAS ABOUT 4% OF THE
OVERALL STATE ECONOMY AND I'M
NOT ROSE OVER THE NEXT FEW
DECADES UNTIL THE LATE NINETEEN
SEVENTIES. TO BE ABOUT EIGHT
PERCENT. BUT SINCE THE EARLY
NINETEEN EIGHTIES TE STATE
BUDGET AS A SHARE OF THE
ECONOMY HAS REALLY REMAINED
FLAT IT'S OCELLATED. ABOUT
BETWEEN 7% AND EIGHT PERCENT.
IT TENDS TO RISE IN TIMES OF
ECONOMIC GROWTH AND THEN FALL A
BIT IN TIMES OF RECESSION- BUT
REALLY WHAT YOU CAN TAKE FROM
THIS GRAPHIC IS THAT THE STATE
ECONOMY. AND THE STATE BUDGET
HAVE GROWN BASICALLY AT THE
SAME PACE ARE VERY CLOSE TO THE
SAME PACE ON AVERAGE. OVER THE
LAST DECADE IN PARTICULAR ANY
BEEN OVER THE LAST FEW DECADES.
I'M NOT RATE OVER THE LAST
DECADE HAS BEEN ABOUT FIVE AND
A HALF PERCENT. SO TURNING THE
NEXT. THAT FIVE IN HALF PERCENT
IS AN AVERAGEACROSS ALL OF
STATE PROGRAMS. BUT THE POINT
OF THIS GRAPHIC IS TO SHOW HOW
ABOUT FIVE AND A HALF PERCENT
HAS REALLY VARIED BY PROGRAM
BECAUSE THERE IS QUITE A LOT OF
VARIATION. SO THE COMPLICATED
GRAPHIC ON A WALK THROUGH IT
SOMEWHAT SLOWLY. EACH OF THE
BUBBLES IN THIS GRAPHIC ARE
SHOWING YOU A DIFFERENT PROGRAM.
THE LARGEST ONE IS FOR K.
TWELVE EDUCATION. THE NEXT ONE
IS FOR MEDIC CAL THE STATE'S
HEALTH INSURANCE PROGRAM FOR
LOW INCOME CALIFORNIANS. AND
THEIR ORGANS FROM TO. THOSE BY.
BROUGHT AND- PER. ON AND NATURI.
AND ENVIRONMENTAL PROGRAMS.
CRIMINAL JUSTICE ETCETERA. FROM
RIGHT TO LEFT THE GRAPHIC IS
SHOWING YOU HOW QUICKLY OR HOW
SLOWLY. THAT PROGRAM HAS GROWN
OVER THE LAST TEN YEARS FROM
TWENTY ELEVEN TWELVE. TO TWENTY
TWENTY TWENTY ONE. ALL NOTED
SINCE TWENTY TWENTY TWENTY ONE
WAS SORT OF AN UNUSUAL BUDGET
YEAR THAT THOSE NUMBERS WOULD
LOOK A BIT DIFFERENT IF YOU
TEXT SAVE. NINETEEN TWENTY OR
IF YOU PICKED A DIFFERENT
ENDPOINTS. AND SIMILARLY THEY
WOULD LOOK DIFFERENT IF YOU
PENSION EARLIER YEAR- SINCE
TWENTY ELEVEN TWELVE A SORT OF
AT THE END OF. THE LAST YOU
KNOW AS THE STATE WAS SORT OF
PULLING OUT OF THE GREAT
RECESSION AND THE BUDGET WAS
CHANGING AT THAT TIME. BUT
HONESTLY WITH ONE OF THESE
GRAPHICS THE- NO MATTER WHAT
SELECTION YOU MAKE IN TERMS OF
WHERE YOU. YOU KNOW KIND OF
START AND END IS GONNA AFFECT.
WHERE THE BUBBLES ARE BUT THE
GENERAL TRENDS WILL ALWAYS YOU
KNOW WHERE IT WILL. GENERALLY
BE ABOUT STUDY. SO AS YOU CAN
SEE. I DO. RELATED HAVE GROWN.
MORE ALLOW ON OUR- WITH THE
REST OF THE PROGRAM'S. AND IN
PARTICULAR K. TWELVE EDUCATION
COMMUNITY COLLEGES ARE A BIT
BELOW OR RIGHT AROUND THE FIVE
AND A HALF PERCENT. WHEREAS
CHILD CARE AND PRESCHOOL AND
THE CALIFORNIA STATE
UNIVERSITY. A GROWING A BIT
FASTER THAN AVERAGE. JUSTICE
PROGRAMS CONVERSELY ON AVERAGE
HAVE GROWN LESS THAN. THAT
AVERAGE FIVE AND A HALF PERCENT
CLOSER TO THREE TO FOUR
PERCENT. AND THEN HUMAN
SERVICES PROGRAMS HAVE TENDED
TO GROW FASTER THAN AVERAGE
FASTER THAN FIVE AND A HALF
PERCENT IN PARTICULAR IN HOME
SUPPORTIVE SERVICES AND
DEVELOPMENTAL SERVICES WHICH
HAVE BROWN. ACTUALLY QUITE
QUICKLY COMPARED TO OTHER STATE
PROGRAMS. TURNING TO THE NEXT
PAGE I'M GONNA START TALKING
INTO THE SECOND SECTION OF THE
PRESENTATION WHICH IS ABOUT HOW
STATE EXPENDITURES ARE
ORGANIZED. AND I'M GONNA BEGIN
WITH AS A JUST AN OVERVIEW OF
HOW FUNDS ARE ORGANIZED IN THE
STATE BUDGET. SO THERE ARE
THREE TYPES. OF FUNDS IN THE
STATE BUDGET THE FIRST IS THE
GENERAL FUND. SECOND OR SPECIAL
FUNDS OF WHICH THERE ARE
HUNDREDS AND THEN THIRD IS
FEDERAL FUNDS. THE GENERAL FUND
IS THE STATE'S MAIN OPERATING
ACCOUNT IT IS THE FUNDED THAT
RECEIVES GENERAL PURPOSE
REVENUES LIKE PERSONAL INCOME
TAX SALES AND USE TAX REVENUES.
AND THE LEGISLAURE CAN
ALLOCATE FUNDS IN THE GENERAL
FUND FOR ANY PUBLIC PURPOSE.
SPECIAL FUNDS CONVERSELY ARE
THOSE FUNDS THAT ARE CREATED
FOR SPECIFIC PURPOSES- AND THEY
RECEIVE DEDICATED REVENUE
SOURCES. THEN THE LEGISLATURE
HAS MUCH LESS FLEXIBILITY IN
ALLOCATING SPECIAL FUNDS
LEGISLATURE CAN REALLY ONLY
ALLOCATE SPECIAL FUND REVENUES
CHIU PURPOSES FOR WHICH THAT
FUND WAS CREATED. AN EXAMPLE.
HERE WOULD BE THE MOTOR VEHICLE
ACCOUNT. SO THIS IS A FUNDED
RECEIVES REVENUES FROM VEHICLE
REGISTRATION FEES LICENSE OUR
DRIVER'S LICENSE FEES AND THEN
THE FUND CAN ONLY BE SPENT ON
TRANSPORTATION RELATED-
PROGRAMS. AND THEN FINALLY
THERE FEDERAL FUNDS FEDERAL
FUNDS ARE USUALLY DEDICATED TO
SPECIFIC PROGRAMS ARE PURPOSES
THE FEDERAL GOVERNMENT WILL
PROVIDE THE STATE WITH FUNDING
TO RUN A CERTAIN PROGRAMMER AS
A MATCH ON TOP OF STATE FUNDING
FOR A PROGRAM AND OFTEN THIS
COMES WITH STRINGS ATTACHED
SUCH THAT THE FEDERAL
GOVERNMENT SAYS. THIS IS HOW
STATE HAS TO A THE PRO THIS HOW
THE STATE- IS REQUIRED TO
IMPLEMENT THE PROGRAM. THE NEXT
PAGE IS JUST A VISUAL
DESCRIPTION OF THE GENERAL
FUND. AND THE MANY MANY STILL
HOT THOUGH HUNDREDS OF OUR
SPECIAL FUNDS THAT THE STATE
HAS. SO AS YOU CAN SEE THE
LARGE PIE CHART IN THE MIDDLE
THAT'S THE GENERAL FUND AND
THEN EACH OF THE SMALL CIRCLES
AROUND THE SIDE ABOUT HARD
CHART ARE EACH OF THE
INDIVIDUAL SPECIAL FUNDS. THAT
THE STATE HAS ALTHOUGH ACTUALLY
SOME OF THE VERY SMALL SPECIAL
FUNDS OR EVEN EXCLUDED FROM
THIS CHART. THE GENERAL FUND AS
YOU YOU KNOW AS YOU CAN SEE IN
THIS IS THIS CHART IS. BY FAR
THE LARGEST IT'S A HUNDRED AND
FORTY SEVEN BILLION DOLLARS IN
TWENTY NINETEEN TWENTY. AND
EACH OF THE SPECIAL FUNDS
COLLECTIVELY. ARE ABOUT SIXTY
BILLION DOLLARS BUT
INDIVIDUALLY OR- SPECIAL FUNDS
TEND TO YOU KNOW EVEN AT THEIR
LARGEST BE ONLY A COUPLE
BILLION OR A FEW BILLION
DOLLARS. US SOME PROGRAMS ARE.
ESSENTIALLY ENTIRELY GENERAL
FUND FUNDED THAT'S MOSTLY
EDUCATION PROGRAMS FOR EXAMPLE.
AND SOME PROGRAMS LIKE
TRANSPORTATION PROGRAMS ARE
ALMOST ENTIRELY SPECIAL FUND
FUNDED WHEN IT COMES TO US
STATE FUNDS. AND THEN SOME
PROGRAMS ARE A MIX OF THE TWO
SO HEALTH PROGRAMS N
PARTICULAR TEND TO BE A MIX OF
GENERAL FUND FUNDED AND SPECIAL
FUNDS FUNDED. TURNING TO THE
NEXT PAGE. ON PAGE FIVE SO NOW
I'M GONNA TALK A BIT ABOUT HOW
STATE EXPENDITURES ARE
ORGANIZED AND THIS IS YOU KNOW
THE CATEGORIES BY WHICH THE
STATE SPENDS MONEY SO THERE ARE
THREE CATEGORIES HERE STATE
OPERATIONS LOCAL ASSISTANCE IN
CAPITAL OUTLAY OF THE THREE
STATE OPERATIONS AND LOCAL
ASSISTANCE ARE BY FAR THE
LARGEST IN THE ONES THAT WILL
FOCUS THE MOST ATTENTION ON IN
THIS PRESENTATION. STATE
OPERATIONS COSTS ARE THOSE
COSTS THAT ARE INCURRED
DIRECTLY BY THE STATE
GOVERNMENT. TO RUN A PROGRAM OR
DELIVER A SERVICE SO AN EXAMPLE
HERE WOULD BE CORRECTIONS. THE
STATE'S PRISONS ARE OWNED AND
OPERATED BY THE STATE MOST OF
THE EMPLOYEES I PRESENTS OUR
STATE EMPLOYEES. AND SO THE
VAST MAJORITY OF COSTS FOR
CORRECTIONS ARE CONSIDERED
STATE OPERATIONS COST. LOCAL
ASSISTANCE CONVERSELY ARE
AMOUNTS THAT ARE PROVIDED BY
THE STATE GOVERNMENT TO OTHER
ENTITIES FOR THOSE ENTITIES TO.
DELIVER SERVICES ARE RUN
PROGRAMS THOSE OTHER ENTITIES
ARE ARE MANY BUT THEY CAN BE
LOCAL GOVERNMENTS FOR EXAMPLE
OR OUT OF SCHOOL DISTRICTS ARE
HEALTH PLANS SO HE EXAMPLE HERE
WOULD BE K. TWELVE EDUCATION
THE VAST MAJORITY OF K. TWELVE
EDUCATION SPENDING IS LOCAL
ASSISTANCE. BECAUSE THE STATE
PROVIDES MONEY TO SCHOOL
DISTRICTS ARE TO COMMUNITY
COLLEGE DISTRICT FOR THOSE
ENTITIES TO DELIVER EDUCATIONAL
SERVICES TO STUDENTS THEY'RE
CAPITAL OUTLAY FINALLY IS THE
PURCHASE OF LAND OR- BUILDING
OF BUILDINGS THAT ARE ON STATE
LAND- FOR THE PURPOSES OF
PROVIDING SERVICES AND IT'S A
MUCH SMALLER AMOUNT AS YOU'LL
SEE IN THE NEXT. PAGE SO THE
NEXT PAGE PAGE SIX. PROVIDES AN
OVERVIEW OF OUR STATE COSTS FOR
THESE DIFFERENT CATEGORIES SO.
AND THE LITTLE INSERT AT THE
TOP OF THE GRAPHIC IS GOING TO
SHOW YOU HOW MUCH STATEMONEY
FOR SPECIAL FOUNDRESSES GENERAL
FUND IS SPENT ON LOCAL
ASSISTANCE STATE OPERATIONS AND
CAPITAL OUTLAY. AS YOU CAN SEE
BOTH FOR THIS BUT BOTH FOR THE
SPECIAL FUNDS AND FOR THE
ENERAL FUND MOST FUNDING IS
FOR LOCAL ASSISTANCE ABOUT
THREE QUARTERS OF GENERAL FUND
IS LOCAL ASSISTANCE AND OVER
HALF OF SPECIAL FINE MONEY IS
FOR LOCAL ASSISTANCE. AND THEN
THE REST OF THE GRAPHIC SHOWS
YOU WHY BY PROGRAM AREA SO AS
YOU CAN SEE HEALTH AND HUMAN
SERVICES AND EDUCATION K.
TWELVE EDUCATION ARE
OVERWHELMINGLY- LOCAL
ASSISTANCE PROGRAMS THESE ARE
PROGRAMS THAT THE STATE GIVES
MONEY TO OTHER ENTITIES TO RUN
THE PROGRAM. CONVERSELY I
ALREADY TALKED ABOUT
CORRECTIONS CORRECTIONS IS MORE
OF STATE OPERATIONS PROGRAM
BECAUSE PRISONS ARE RUN BY THE
STATE HIGHER EDUCATION IS A MIX
OF THE TWO THE REASON FOR THIS
IS A LITTLE BIT FUNNY BUT
ESSENTIALLY UNIVERSITIES CSU
AND UC ARE CONSIDERED STATE
AGENCIES. AND COMMUNITY COLLEGE
DISTRICTS ARE CONSIDERED LOCAL
ENTITIES AND SO IT'S ABOUT HALF
AND HALF OR ROUGHLY THERE. AND
TRANSPORTATION PROGRAMS. ARE
MOSTLY STATE OPERATIONS.
BECAUSE STATE APARTMENTS THAT
APART OF MOTOR. AND CALIFORNIA
OF TRANSPORTATION AGAIN. OUR
DEPARTMENTS THAT EMPLOYEE STATE
EMPLOYEES AND THEN THEY TO
THOSE EMPLOYEES DELIVER
SERVICES. FOR EXAMPLE THROUGH
THE DMV FIELD OFFICES. TURNING
TO THE NEXT PAGE THIS IS
SHOWING- ESSENTIALLY THE MIX OF
FINES AND FUNCTIONS BY
DIFFERENT AGENCIES AND BY
DIFFERENT DEPARTMENTS. SO
STARTING FROM THE BOTTOM TO THE
TOP THIS IS ORGANIZED BY TYPE
OF AGENCY SO HEALTH AND HUMAN
SERVICES FIRST AND THEN
EDUCATION TRANSPORTATION
ETCETERA. ON THE RIGHT SIDE OF
THE GRAPHIC WE'RE SHOWING YOU
THE SIZE OF THE PROGRAM BY
TOTAL FUNDS INCLUDING FEDERAL
FUNDS. AS YOU CAN SEE THE
HEALTH AND HUMAN SERVICES
AGENCY IS THE LARGEST WHEN YOU
INCLUDE FEDERAL FUNDS WITH A
LITTLE BIT OVER HALF OF TOTAL
FUNDS BEING FEDERAL FUNDS. IN
ABOUT A THIRD BEING GENERAL
FUND AND THEN THE REST A
SPECIAL FUNDS. SIMILARLY
EDUCATION WHICH IS SLIGHTLY
SMALLER IS NEARLY ALL GENERAL
FUND FUNDED WITH SOME FEDERAL
FUNDS AND TRANSPORTATION
PROGRAMS ARE NEARLY ALL SPECIAL
FUNDS FUNDED WITH SOME. GENERAL
FUND I'M SORRY WITH SOME
FEDERAL FUNDS BUT THE LEFT SIDE
OF THE GRAPHIC SHOWS YOU BY
DEPARTMENT HOW MUCH IS THAT
DEPARTMENT STATE OPERATIONS
VERSUS LOCAL ASSISTANCE. THE
SIZE OF THE BARS ARE NOT TO DO
NOT CORRESPOND TO THE SIZE OF
THE DEPARTMENT SO FOR EXAMPLE
THE DEPARTMENT OF HEALTH CARE
SERVICES IS MUCH LARGER. THAN
THE DEPARTMENT OF STATE
HOSPITALS BUT- THE BARS ARE
JUST SCALE TWO HUNDRED SO THAT
YOU CAN SEE THE PROPORTION NH
VERY EASILY. AND AS YOU CAN SEE
FOR EXAMPLE WITH THE DEPARTMENT
OF HEALTH CARE SERVICES WHICH
RUNS THE STATE'S MEDICAL
PROGRAM THIS IS OVERWHELMINGLY
LOCAL ASSISTANCE BECAUSE THIS
IS MONEY THAT DH CS GIVES TO.
HEALTH PLANS ARE DIRECTLY TO
HEALTH CARE PROVIDERS CHIU
CITIES AND LOCAL GOVERNMENTS-
IN ORDER TO. PAY FOR HEALTH
INSURANCE PREMIUMS OR TO PAY
DIRECTLY FOR HEALTH CARE
SERVICES. CONVERSELY THE
DEPARTMENT OF STATE HOSPITALS
IS OVERWHELMINGLY STATE
OPERATIONS AND THAT'S BECAUSE
THE STATE'S FIVE STATE
HOSPITALS ARE OPERATED BY THE
STATE MOST OF THE EMPLOYEES WHO
ARE EMPLOYED THERE ARE STATE
EMPLOYEES- AND THEY ARE AT THE
STATE IS ESSENTIALLY PROVIDING
THAT SERVICE DIRECTLY TO
INDIVIDUALS. OKAY SO TURNING TO
THE NEXT PAGE I'M GONNA TALK
JUST BRIEFLY ABOUT STATE
OPERATIONS THIS IS THE THIRD
SECTION OF THE PRESENTATION.
AND I WANTED TO FIRST ASSOCIATE
OPERATIONS AS I'VE ALREADY
MENTIONED. ARE THE AMOUNTS THAT
THE STATE PAYS JUST TO DELIVER
SERVICES DIRECTLY- THEY'RE NOT
ADMINISTRATIVE PROCESS TO GET
TO ADMINISTRATIVE COSTS IN THE
NEXT SECTION- AS YOU CAN SEE
FROM THE TOPOGRAPHIC STATE
OPERATIONS COSTS ARE FUNDED
ABOUT TWO THIRDS BY GENERAL
FUND AND ONE THIRD BY SPECIAL
FUNDS. AND THOSE COSTS ARE
DISTRIBUTED AROUND A VARIETY OF
DEPARTMENTS WE'VE TALKED ABOUT
CORRECTIONS AND REHABILITATION
ALREADY UNIVERSITIES WHICH ARE
ALL CONSIDERED STATE OPERATIONS
COSTS- DEBT SERVICES ALL STATE
OPERATIONS COSTS ON THE SPECIAL
FUNDS LIGHTED TENDS TO BE FOR
TRANSPORTATION AGING. AND THEN
FOR SOME ENVIRONMENTAL AND
NATURAL RESOURCE PROGRAMS. THE
BOTTOM OF THIS PAGE SHOWS. HOW
STATE OPERATION COSTS ARE SPENT
AS YOU CAN SEE THE MAJORITY OF
STATE OPERATION COSTS ARE SPENT
ON STATE EMPLOYEE COMPENSATION-
SALARIES AND THEN ALSO
BENEFITS. SO THE LARGE POT YOU
KNOW PIE SLICE ON THE RIGHT
SIDE OF THE GRAPHIC. IS STATE
EMPLOYEE SALARIES AND BENEFITS
INCLUDING PENSION CONTRIBUTIONS
THAT THE STATE MAKES. THE NEXT
SLICES HEALTH. OUR HEALTH
BENEFITS FOR STATE EMPLOYEES
THAN OTHER POST EMPLOYMENT
BENEFITS WHICH IS RETIREE
HEALTH MOSTLY. AND TEACHERS
PENSION BENEFITS OF THIS IS THE
AMOUNT THAT THE STATE PAYS. FOR
TEACHERS PENSIONS BUT SCHOOL
DISTRICTS ALSO PAY. AND THEN
THE REST OF SLICES. IN NOT
STATE OPERATE ARE FOR OTHER
COSTA COSTS FOR UNIVERSE. WHICH
ARE MAKE OF SALA AND ALL CROSS
AND THEN DEBT SIR. AND OTHER
AND OTHER IS GOING TO BE A LOT
OF LEASE COSTS A QUICK MEANT
IT'S OUR. SO TURNING TO THE
NEXT PAGE ON PAGE NINE.
TRANSITIONING TO THEFOURTH
SECTION OF THIS PRESENTATION
WE'RE TALK A BIT ABOUT OVERHEAD
COSTS OR ADMINISTRATIVE COSTS
AND ADMINISTRATIVE COSTS YOU
CAN THINK OF IT AS A SMALL
SUBSET ESSENTIALLY OF STATE
OPERATIONS COSTS. THERE ARE TWO
TYPES OF ADMINISTRATIVE COSTS
THAT ARE RELEVANT HERE THE
FIRST IS FOR HEADQUARTERS OR
PROGRAM ADMINISTRATION- AND
THIS IS GOING TO BE THE COST OF
PROVIDING CENTRALIZED SERVICES
USUALLY AT A HEADQUARTERS IN
SACRAMENTO OR ELSEWHERE IN THE
STATE. WHICH DOES
ADMINISTRATION OF THE PROGRAM
POLICY OVERSIGHT THEY DEVELOP
THE BUDGET FOR THE PROGRAM
SUBMIT THAT BUDGET TO THE
DEPARTMENT OF FINANCE AND THE
LEGISLATURE- AND DO PROGRAM
EVALUATION TO ASK QUESTIONS
LIKE HOW WELL IS THIS PROGRAM
WORKING AND HOW CAN IT WORK
BETTER. THERE'S ALSO A NUMBER
OF COSTS THAT TEND TO BE
EMBEDDED IN A DEPARTMENTS- HEAD
QUARTER LINE THAT CAN BE SORT
OF. THAT OUR CENTRALIZED HOSPET
TEND TO HAVE DISTRIBUTED
BENEFITS SO FOR EXAMPLE
INFORMATION TECHNOLOGY PROJECTS.
CAN BE PUT IN THIS CATEGORY BUT
THEY MIGHT BE STILL RELATED TO
DIRECT SERVICE PROVISION FOR
PEOPLE SO THEY MIGHT STILL.
HAVE SOME KIND OF PUBLIC
INTERFACE- IT JUST REALLY
DEPENDS ON HOW THE COSTS ARE
CATEGORIZED. THE SECOND
CATEGORY ACROSS WHICH IS MUCH
SMALLER ARE STATEWIDE GENERAL
ADMINISTRATIVE COSTS. AND THESE
ARE COSTS THAT ARE PROVIDED BY
CENTRALIZED STATE AGENCIES LIKE
THE STATE COMPTROLLER'S OFFICE
OR THE STATE TREASURER.
ESSENTIALLY LET'S TAKE THE
EXAMPLE OF THE STATE
COMPTROLLER'S OFFICE THIS IS-
AMOUNTS THAT ARE OR I'M SORRY
ADMINISTRATIVE FUNCTIONS THAT
HAVE BEEN CENTRALIZED IN A
SINGLE ENTITY THAT ARE PROVIDED
ON BEHALF OF ALL DEPARTMENTS.
FROM THE EXAMPLE OF THE STATE
COMPTROLLER'S OFFICE THEY RUN
PAYROLL FOR ALL STATE
DEPARTMENTS THEY ISSUE THE
PAYCHECKS FOR ALL STATE
DEPARTMENTS AND THEN STATE
DEPARTMENTS WILL PAY FOR THAT
SERVICE THROUGH THEIR BUDGET-
AS YOU KNOW I TO SHARE
DEPENDING ON HOW MUCH OF THAT
SERVICE THEY'RE USING- THESE
COSTS TEND TO BE QUITE LOW LESS
THAN ONE PERCENT. OF THE STATE
DEPARTMENT'S BUDGET. SO TRYING
TO THE NAY PAGE. WE'RE JUST
HERE PROVIDING SOMETHING'S. OF
PLACES WHERE HEAD QUARTER COSTS
IN PARTICULAR. HAD INCREASED
FOR STATE DEPARTMENTS- OVER THE
LAST COUPLE OF YEARS AND WE
PICKED THE DEPARTMENTS THAT ARE
SHOWN HERE BECAUSE THEY- HAD
INCREASES THAT WERE LARGER IN
DOLLAR TERMS. AS YOU CAN SEE ON
THE CHART WE'VE GOT WE'RE
COMPARING TWENTY EIGHTEEN
NINETEEN- TOTAL ADMINISTRATIVE
HEADQUARTERED MINISTRY OF COSTS
TO TWENTY TWENTY TWENTY ONE.
FOR EACH OF THESE FOUR
DEPARTMENTS THE TWO ON THE LEFT
ARSED PRIMARILY SPECIAL FUND
FUNDED APARTMENTS IN THE TWO ON
THE RIGHT. ARE PRIMARILY
GENERAL FUND FUNDED DEPARTMENTS.
AND. AND THEN THE TOP OF THE
GRAPHIC SHOWS THE SHARE OF THAT
DEPARTMENT'S HEADQUARTERS
ACROSS AS A TOTAL OF THEIR
PROGRAM COSTS AND THESE NUMBERS
AREN'T NECESSARILY DIRECTLY-
COMPARABLE TO ONE ANOTHER YOU
KNOW FOR EXAMPLE DMB IS 10%
VERSUS DDS AS 1% AND THAT'S
BECAUSE DIFFERENT DEPARTMENTS
HAVE DIFFERENT PRACTICES WITH
REGARD TO WHAT THEY CATEGORIZE
AS HEAD QUARTER RELATED COSTS.
BUT AS YOU CAN SEE FROM THE TOP
OF THE- THE GRAPHIC GENERALLY
HIGH COURT ACROSS TEND TO BE A
SMALL SHARE OF THE PROGRAM'S
OVERALL COSTS. SO THE FINAL
PAGE OF THE HANDOUT- PROVIDE
JUST WALKS THROUGH SOME REASONS
WHY THESE COSTS HAVE INCREASED
AMONG THESE DEPARTMENTS IN
RECENT YEARS I'M ALL. YOU KNOW
KIND OF GO OVER ALL THESE
POINTS- ONE BY ONE SINCE THERE
ARE A LOT IN THERE ALREADY IN
YOUR HAND UP IT JUST WANTED TO
TOUCH ON A COUPLE OF THEMES
THAT ARE. TRUE ACROSS THESE
DEPARTMENTS AND SOME OTHERS IN
THE STATE. SO ONE OF THEM IS I.
T. PROJECTS I. T. PROJECTS- CAN
BE. THE COST OF WHICH CAN BE
BOOKED AT YOU KNOW THE HEAD
QUARTER LEVEL EVEN IF THAT I.
T. PROJECT IS. IS REALLY ABOUT
SERVICE DELIVERY SO ONE EXAMPLE
IS FOR THE DEPARTMENT OF STATE
HOSPITALS THEY'RE UNDERGOING AN
I. T. PROJECTS TO IMPROVE
ELECTRONIC HEALTH RECORD
SYSTEM. AND THAT WILL OBVIOUSLY
IMPROVE. YOU KNOW COULD COULD
HELP TO IMPROVE PATIENT CARE
BUT IT'S BOOKED AS I
HEADQUARTERED CROSSED. ANOTHER
EXAMPLE IS FOR THE DMV- THEY'RE
UNDERGOING SOME EFFORTS TO
IMPROVE THEIR WEBSITE. AND
IMPROVE CHATBOT IMPLEMENTATION
FOR THE PUBLIC TO BE ABLE TO-
COMMUNICATE WITH DMV EMPLOYEES.
AND THOSE ARE ALSO CONSIDERED
HEADQUARTERS COSTS OF THOSE ARE
ALL CONTRIBUTING TO THOSE
INCREASES IN COSTS. THE SECOND
GAME IS ABOUT HEADQUARTER
RELOCATION. A FEW OF THESE
APARTMENTS ARE RELOCATING THEIR
HEADQUARTERS FOR- RELATED
REASONS MOST OF THEM ARE
BECAUSE THE BUILDINGS THAT THE
HEADQUARTERS ARE CURRENTLY
HOUSED AND HAVE. HAD SOME
STRUCTURAL ISSUES OR SOME OTHER
KINDS OF HABITABILITY ISSUES
FOR EXAMPLE LEAKING PIPES
LEAKING WINDOWS- LEAKING
BALCONIES INTO- OFFICES BELOW.
AND THOSE PROBLEMS. I HAVE- AS
A RESULT- LED THE STATE TO
RELOCATE THERE AND PULL THOSE
EMPLOYEES TO OTHER LOCATIONS IN
SACRAMENTO- THOSE EFFORTS ARE
GENERALLY UNDER WAY AND SO. AND
IN SOME CASES ARE ALMOST
FINISHED OUT SO WITH THAT I'M
HAPPY TO TAKE AN QUESTIONS OR
TURN IT OVER TO. THANK YOU WE
DON'T AND WE DON'T HAVE ANY
ADDITIONAL TESTIMONY FROM OHIO.
GOT A FINANCE ANY FEEDBACK OR
COMMENT. I KNOW THANK YOU TO
THE L. A. O. FOR SUCH A NICE
DOCUMENTS- NO WE ARE JUST HERE
TO ANSWER ANY QUESTIONS THAT
YOU MAY HAVE. THANK YOU
RESEARCH. BY THE- I'VE- FIVE.
THANK YOU I GONNA TURN OVER TO
OUR OF MY SOLDIER DO YOU ANY
QUESTIONS. YES THANK YOU. I'M
OKAY SO GOING TO. THE YOUR
FIRST AID OR TALK ABOUT THAT
THE TREND IN THE STATE BUDGET.
THIS THAT THEY AND STATE
SPENDING BOTH IT FOR POINT FIVE
PER A YEAR THE LAST DECADE.
SUIT SO ARE STATE SPENDING HAS
AND BY 55% IN THE LAST DECADE
IS THAT. ACCURATE NO JUST FIVE
AND A HALF ANNUAL AVERAGE
GROWTH. SO FIVE FIVE POINT FIVE
PERCENT. I DON'T KNOW IF I
COULD DO THAT ARE YOU ASKING
FOR THE COMPOUND ANNUAL GROWTH.
YEAH I DON'T KNOW IF I CAN GET
I'M SORRY I CAN'T DO THAT. MATH
IN MY HEAD. WITH. ONE YEAH SO
IT'S AROUND SO IT'S AROUND A
FIFTY IT'S AROUND A 50% GROWTH
IN SPENDING. I'M AND I GUESS
WHAT I'M WHAT I'M TRYING TO
WRAP MY HEAD AROUND IS. TIED
INTO IF ALL THINGS WITH ALL
THINGS BEING EQUAL SO AND
OBVIOUSLY SOME OF THAT SPENDING
HAS BEEN DRIVEN BY AN INCREASE
IN SERVICES BUT- IF ALL THINGS
WERE EQUAL HOW MUCH WOULD WE
HAVE EXPECTED. ARE SPENDING TO
HAVE GROWN OVER THE COURSE OF
THE LAST TEN YEARS. LIKE IF WE
LOOK AT THE POPULATION GROWTH
AND AT THE RATE OF INFLATION.
YEAH ACTUALLY I. EXPECTED IT TO
BE. SURE IT'S NOT HERE- BUT
ACTUALLY IF YOU DO THIS GRAPH
JUST RELATIVE TO THE STATE'S
POPULATION AND INFLATION USING
THE CONSUMER PRICE INDEX THEN
YOU GOT A PRETTY SIMILAR RESULT
THAT- IN REAL TERMS THE STATE
SPENDING HAS BEEN ESSENTIALLY
FLAT OVER THE LAST FEW DECADES.
I'M OKAY. GIVE ME DOUBLE CHECK
THAT BECAUSE I THINK THAT THE
AVERAGE SO I AM PRETTY SURE THE
AVERAGE INFLATION RATE OVER THE
COURSE OF. THE LAST DECADE IS
LIKE ONE POINT 77% AND OUR
POPULATION GROWTH HAS BEEN
SOMETHING LIKE. JOINT 7% SO I
THINK THAT. IF SERVICES WERE
WERE HELD EQUAL I AM PRETTY
SURE THAT OUR STATE SPENDING
PER YEAR WOULD HAVE BEEN MORE
LIKE TWO POINT 4% GROWTH AS
OPPOSED TO FIVE POINT 5%
GROWTH. I DON'T HAVE SOMEBODY
LOOK AT THE U. S. CAN LIKE FACT
CHECK THOSE NUMBERS ARE ARE DO
THAT DO THAT QUICKLY I JUST
THINK WOULD BE USEFUL TO
UNDERSTAND KIND OF THE BASELINE
BECAUSE CLEARLY IF OUR STATE
SPENDING IS GROWING AT A RATE
THAT IS MUCH HIGHER THAN.
POPULATION AND INFLATION. WE
SHOULD BE SEEN IN A PRE. AND
REALLY MEANINGFUL INCREASE IN
SERVICES FOR. THAT ADDITIONAL
SPENDING AND MAYBE WE ARE BUT I
THINK IT JUST WOULD BE USEFUL
FOR ALL OF US HAVE A BASS LINE
ON WHAT WOULD EVEN HAVE BEEN IN
IN TERMS OF YOU KNOW TWENTY
TWENTY COMPARED TO TWENTY TO.
SURE YEAH I'M HAPPY TO- CHECK
ON THE NUMBERS FOR YOU I THINK
IT IT PARTLY DEPENDS ON WHEN
INFLATION INDEX YOU USE SO.
THEIR INFLATION INDEX THE
INDICES FOR EXAMPLE THERE
CALIFORNIA SPECIFIC VERSUS
NATIONAL THE NATIONAL ONES TEND
TO BE LOWER THAN THE CALIFORNIA
SPECIFIC. AND SO YEAH. OKAY GET
THAT WOULD JUST BE GREAT FOR ME
JUST KIND OF GROUND. LIKE WHAT
I'M COMPARING SUBJECTS I THINK.
IN SOME CASES IT IT DOES MAKE
SENSE TO COMPARE. SPENDING
GROWTH. TO AT THE GROWTH OF OUR-
BUT IN IN MANY CASES THAT
ACTUALLY MAKES MORE SENSE LOOK
AT LIKE PUTS THE GROWTH THE
POPULATION- THAT THE GROWTH THE
SERVICES SO THAT WE CAN REALLY
WRAP OUR ARMS AROUND. WHERE ARE
WE GETTING VALUE FOR MONEY
RIGHT. I'M I HAVE A COUPLE OF
QUESTIONS BUT IF PEOPLE OTHER
PEOPLE OF JAPAN OKAY AND THEN
LET ME SEE ON AS- IT'S ARE YOU
MAY HAVE HAVE SPOKEN TO THIS
WHEN YOU'RE GOING THROUGH YOUR
PRESENTATION WHICH BY THE WAY I
THINK THIS IS. I JUST I THINK
THAT THE WAY THAT YOU'VE
PRESENTED THIS IS AWESOME LIKE
APPS WE LOVE THIS PRESENTATION
ON THE CHARTS I'M SICK THANK
YOU FOR THAT. I ON PEACH FOR
WHAT IS WHAT IS BUSINESS AND
LABOR. SHE TO THAT
TRANSPORTATION AND BUSINESS AND
LABOR. YES THIS IS A LOT OF OUR
WORKFORCE DEVELOPMENT PROGRAMS
AND I'M PROGRAMS. ARE USUALLY
FUNDED THROUGH PAYROLL FOR
EXAMPLE OR- CHARGES ON
EMPLOYERS AND THEN- THE SENATE
AND FEDERAL FUNDS AS WELL. OKAY
THANKS AND. I WOULD IT BE
POSSIBLE IF NOT RIGHT NOW AT
SOME POINT AS FOLLOW UP ON PAGE
EIGHT. I'M YOU'VE GOT CONSENT
INSISTED OPERATIONS BY AGENCY
AND THE OTHER IS A PRETTY BIG
CHUNK OF THAT. YES POSSIBLE FOR
US TO GET A BREAK DOWN OF THAT
IT TO GET A LITTLE MORE
GRANULARITY BEHIND NOT ONE. YES
ABSOLUTELY I DO WE DIDN'T DO IT
IN THIS GRAPHIC BECAUSE THE
SLICES WOULD JUST GET SO SMALL.
BUT I ABSOLUTELY HAVE TO DO
THAT. I'M AND THEN. AT THE AS
THE OTHER GRAPH COMPONENTS OF
STATE OPERATIONS COSTS WHAT IS
IN THE OTHER POST EMPLOYMENT
BENEFITS CHALK. THIS IS IT
NEARLY ALL OUR RETIREE HEALTH
BENEFITS FOR RETIRED STUDENT
HE'S. BUT THAT'S OKAY AND
THAT'S DIFFERENT. THEN. TO
PLACE ALIRIZA BENEFITS. YES AT
EMPLOYEE SALARIES AND BENEFITS
MOSTLY IT'S JUST SALARY COSTS
AND PENSION RELATED COSTS AND
THEN OPEB IS FOR- HEALTH-
RELATED COSTS FOR RETIREES OKAY
AND THEN REMIND ME WHAT IS WHAT
WAS THAT NUMBER FOR TWENTY I
WHICH THE TWENTY TWENTY TWENTY
ONE BUDGET AS ENACTED. FOR A
PAD YEAH IT'S ROUGHLY TWO POINT
FOUR BILLION DOLLARS I BELIEVE
BUT I MIGHT BE REMEMBER NOT
WRONG SO- LET ME GET BACK TO
YOU ON IT. OKAY THOSE ARE MY
QUESTIONS IN TERMS OF THIS
DOCUMENT. BUT FULLER QUESTIONS.
THE DOCTOR DOCTOR REBEL. SURE
FIRST OF ARE WITH YOU AND I
JUST APPRECIATE THE L. A. O.
BEING COMMON OBJECTIVE NOW FOR
US TO BE TO HAVE THE AND SO
REALLY WANT TO DO YOU A FEW OF
THE GRASS OF LIKE I'M GONNA
START ON PAGE TO SO YOU'RE
FOLLOWING ALONG AS WELL. AND
I'VE WANT TO LOOK THE EXTREMES
OF BOTH SIDES IF I CAN SO FIRST
I WOULD HIGHLIGHT THAT THE
STATE HAS BEEN SPENDING MORE
MONEY ON CALIFORNIA OR THAN ANY
OTHER PROGRAM IN THE LAST
DECADE AND HAS OUR STATE IS ON
FIRE I THINK IT'S IMPORTANT FOR
US TO RECOGNIZE THE INVESTMENTS
WE'VE MADE ADDRESSED THIS HEAD
ON. INTO AREAS LIKE THAT BUT I
WOULD ALSO LOOK TOWARDS THE
LEFT SIDE OF THAT GRAPH WHERE
WE NOTICED BOTH SS I SS P. AS
WELL AS CAL RECYCLED BEING
AREAS WE HAVE NOT FUNDED WELL
AND AS WE LOOK TOWARDS OUR
SOCIAL SAFETY NET TENTH THOSE
WHO ARE MOST VULNERABLE IT IS
THOSE WHO ARE ON A FIXED
INCOMES WILL NEED OUR SUPPORT
NOW AND I JUST WANT TO
HIGHLIGHT THEIR PLIGHT DURING
THIS RECESSION. BUT WE'VE
TALKED A LOT ABOUT CAL RECYCLE
HUNT THE RESPONSIBILITIES WERE
ALSO LOOKING FOR THEM TO TAKE
ON AND SO WOULD JUST REMEMBER
THAT OVER THE LAST DECADE AGAIN
THEY HAVE NOT BEEN AS WELL
FUNDED AS MANY OF THE OTHER
PROGRAMS IN OUR STATE I NOW
WOULD LIKE TO IF I CAN SPEND
THE BULK OF MY TIME WITH YOU ON
PAGE SEVEN JUST SO YOU'RE
FOLLOWING ALONG AGAIN. AND
REALLY TALK ABOUT THE PHONE MIX
AND FUNCTION BY AGENCY AND
DEPARTMENT AND I'M GOING TO
TALK TO ABOUT THREE. THE
DEPARTMENT OF PUBLIC HEALTH THE
JUDICIAL BRANCH AND THEN.
RESOURCES AND RECYCLING. SO
FIRST OF WE CAN TALK ABOUT
DEPARTMENT OF PUBLIC HEALTH WE
SEE THAT THERE ARE ROUGHLY
EQUALLY SPLIT ON FUNDING
BETWEEN LOCAL AND- STATE
OPERATIONS. AND I'M WONDERING
IF YOU COULD HELP TO ELABORATE
WHAT THE RESPONSIBILITIES ARE.
HOW DO YOU DETERMINE WHICH ARE
FUNDED BY LOCAL ASSISTANCE IN
WHICH OUR STATE OPERATIONS AND-
HAS THAT CHANGED OVER THE LAST
DECADE. THANK YOU I'M GONNA
TURN THIS OVER ACTUALLY TO MY
COLLEAGUE CAROLINE CHU WHO-
PROBABLY CAN PROVIDE YOU A BIT
MORE DETAIL THAN I CAN. GOOD
AFTERNOON CAROLINE SHE WITH
LEGISLATIVE ANALYST'S OFFICE I
CAN PRIVATE A BIT MORE INSIGHT
ON THE MY CALLING WAS A
COLLEAGUE MISS HOLLINGSHEAD
THOUGH WE ALSO CAN FOLLOW UP
WITH YOU DOCTOR ARAMBULA. I'M
AS YOU KNOW THE DEPARTMENT OF
PUBLIC HEALTH HAS GRANTS. OR IS
LARGELY GRANTS- FROM THE
FEDERAL GOVERNMENT OR SPECIAL
FUNDS FOR SPECIFIC PROGRAMS IN
SPECIFIC TYPES OF FOR HELP
PUBLIC HEALTH INTERVENTIONS-
LIKE FOR TOBACCO USE AND NOT
SORT OF THING AND THEN IT ALSO
HAS GRANTS THAT IT. PASSES DOWN
TO THE LOCAL LEVEL. I WE COULD
OF COURSE- PROVIDE YOU FURTHER
BREAK OUT BETWEEN THOSE
DIFFERENT CATEGORIES AND WHAT
SPECIFICALLY EACH OF THOSE
CATEGORIES IS ADDRESSING. AS TO
WHETHER OR NOT THERE HAS BEEN A
CHANGE OVER THE LAST DECADE IN
TERMS OF THE RELATIVE NEXT WE
HAVE TO LOOK BACK AT SOME
HISTORICAL OUT BUDGET
DOCUMENTS. ABOUT THAT AND BUT
THE PERHAPS A DIFFERENT FINANCE
HAS A LITTLE BIT OF- OR MIGHT
BE ABLE. TO OFFER A LITTLE MORE
DETAIL AT THIS TIME. FINANCES
UNABLE TO RUN HARDLY THREE
FIFTY FOR THE DEPARTMENT
FINANCE I'M GONNA TURN THIS
OVER TO MY COLLEAGUE AND JACKS.
OF ALL. THAT'S ALL PART OF
FINANCE- IN TERMS OF. THE SPLIT
BETWEEN THE LOCAL SYSTEMS AND-
STATE OPERATIONS FUNDING
EVERITT IS LARGELY DRIVEN BY
THE- REQUIREMENTS OF FEDERAL
GRANTS. FEDERAL GOVERNMENT
PROVIDES A LOT OF TV JUST
FUNDING NOT FUNDING IS A SPLIT
BETWEEN LOCAL ASSISTANCE WHICH
IS YOU KNOW FUNDING THAT GOES
OUT TO EITHER THE HEALTH
RESTRICTIONS COMMUNITY BASED
ORGANIZATIONS OR OTHER- DRUG
PROVIDERS IN COMMUNITIES. AND
THEN THERE'S A PORTION FOR THE
STATE TO EITHER ASSIST OR OR DO
A STATEWIDE PROGRAM IT'S REALLY
A CASE BY CASE BASIS BY BY
GRANT. IN ON THE SPECIAL SIDE.
THE KNOW THERE'S A SIGNIFICANT
RANGE OF USES I THINK THE PH
STANDS OUT OF ABOUT SIXTY
SPECIAL FUNDS RANGING FROM
TOBACCO DEPARTMENT HEALTH TO
AIDS DRUG ASSISTANCE SO IT
REALLY DEPENDS ON THE PROGRAM
IT'S THAT IT'S A VERY BROAD AND
DIVERSE POOL FUNDS AND- ISSUES
THAT THE DEPARTMENT PUBLIC
HEALTH MINISTERS. SELL OUT SOME
MORE THAN HAPPY TO WORK OUT
WITH THAT PROJECT WITH EUROSTAT
PROBE OR WHOMEVER. TO GET TO
THAT TO TELL YOU SEE. I'M SURE
MYSELF WOULD LOVE TO FOLLOW UP
IF I CAN TAKE IT A STEP FURTHER
AND TELL YOU SOME OF THE DETAIL
THAT I'M LOOKING FOR THOUGH-
I'LL HIGHLIGHT PROP FIFTY SIX
AS AN EXAMPLE- CURRENTLY THAT.
FUND IS- ABLE TO BE ALLOCATED
FOR OUR LOCALS TO BE ABLE TO
SPEND. I BELIEVE THERE NEEDS TO
BE BETTER ACCOUNTABILITY AND
OVERSIGHT OVER HOW THOSE FUNDS
ARE BEING SPENT- AT THE MOMENT
SOME OF THOSE FUNDS CAN GO
TOWARDS ACTIVITIES THAT OUR
SHERIFFS ARE. PERFORMING AND
BELIEVE THAT WE NEED TO MAKE
SURE THOSE FUNDS ARE DEDICATED
TOWARDS THOSE INTENDED PURPOSES
LIKE SMOKING CESSATION. OUR
GOAL HERE IS ACTUALLY TO GET
SCHOOL RESOURCE OFFICERS AND-
MORE PEOPLE OUT HELPING TO
EDUCATE OUR TEENS. AND JUST
WANT TO MAKE SURE WE'RE DOING
EVERYTHING AND HAVING THE
APPROPRIATE OVERSIGHT OVER
THESE PROGRAMS. SO WOULD LOVE
TO FOLLOW UP IF I CAN ON PUBLIC
HEALTH SPECIFICALLY LOOKING AT
MANY OF THE DEDICATED FUNDS. TO
MAKE SURE THEY'RE GOING TOWARDS
THEIR INTENDED PURPOSES. BUT
ALONG THOSE LINES I DO WANT TO
TALK ABOUT CRIMINAL JUSTICE IS
I BELIEVE A- LARGE PART OF OUR
COMMUNITY HAS REALLY WANTED TO
STAND UP AND SPEAK ABOUT THIS
ISSUE SO WOULD LIKE TO TAK
ABOUT THE JUDICIAL BRANCH OF. I
CAN WHICH WAS. JOINT ABOUT HALF
WAY DOWN THAT GRAPH. AND IF I'M
READING THIS CORRECTLY IT
APPEARS THAT THE JUDICIAL
BRANCH IS PREDOMINANTLY FUNDED
BY LOCAL ASSISTANCE. IN THE
FORM READING THE RIGHT
PARAGRAPH OF TWENTY ONE
BILLION. IT SEEMS THAT THREE
QUARTERS OF THAT TWENTY ONE
BILLION LOOKS TOWARDS. GOING
TOWARDS LOCAL ASSISTANCE I
WOULD READ THAT AS SAYING
SIXTEEN BILLIONGIVE OR TAKE.
IS WHAT WE ARE SENDING DOWN TO
OUR LOCALS AND SO I'D LIKE TO
ASK THAT FIRST QUESTION IF I
COULD TOWARDS THE L. A. O. WHAT
ARE THE LOCAL RESPONSIBILITIES
THAT WE ARE PASSING DOWN TO.
OUR JUDICIAL BRANCH. WHAT IS IT
THAT WE'RE FUNDING WITH THOSE
FUNDS. AND START WITH THAT.
YEAH THANK YOU DOCTOR REGULAR
WILL HAVE TO FOLLOW UP WITH YOU
FOR MORE DETAIL ON THIS PROGRAM
BECAUSE- WE HAVE ONLY A FEW
NUMBER OF STAFF HERE TODAY AND
NONE OF US KNOW THE JUDICIAL
BRANCH IN DETAIL- BUT I WILL
SAY THAT THE LOCAL ASSISTANCE
FUNDS ARE THOSE FUNDS THAT ARE-
FOR. COURT SYSTEMS THAT ARE
LOCALLY ADMINISTERED AND- I DO
APPRECIATE AND I'M HAPPY TO
FOLLOW UP I WOULD. HIGHLIGHT IF
I COULD- THE NATIONAL I'VE BEEN
PORING OVER A DOCUMENT THE L.
A. O. GAVE TO US THAT EVALUATED
THE DIFFERENCE BETWEEN FUNDING
OF OUR PUBLIC DEFENDERS AND OUR
DISTRICT ATTORNEYS I THINK
THAT'S AN IMPORTANT PART OF A
CONVERSATION WE WILL NEED TO
HAVE NEXT YEAR. ABOUT HOW WE
ENSURE THAT THE SCALES OF
JUSTICE ARE BALANCED IN OUR
EQUAL AND SO AS WE'RE HAVING
THESE CONVERSATIONS ABOUT WHAT
IS BEING FUNDED BY THE LOCALS
AND PAID FOR BY THE STATE. I
THINK IT'S IMPORTANT FOR US TO
WORK TOWARDS WHAT SHOULD BE
JUSTICE AND THE SCALES OF
JUSTICE I'M NO LAWYER BUT THEY
ARE SUPPOSED TO BE EQUAL AND%
THAT SHOULD MEAN YOU'RE HAVING
EQUAL RESOURCES TO BE ABLE TO
APPLY FOR THAT. SO WHAT I
APPRECIATE AN OPPORTUNITY TO
TALK ABOUT THAT REPORT FINALLY
IF I CANNOT JUST OPINE IF LIKE
CAN SAY THAT MUCH OF A HAS BEEN
MADE ABOUT OUR NEED AS THE
STATE'S TO FOCUS ON RECYCLING.
BUT I SEE A PREDOMINANCE OF THE
RESOURCE RECYCLING AND RECOVERY
TO BE PUMPED TO BE FUNDED BY
OUR LOCALS AND WAS HOPING YOU
COULD SPEAK AGAIN ABOUT THE
RESPONSIBILITIES FOR THE LOCALS
AND WHERE THE- FUNDING IS- AND-
HOW THEY HELP TO- US TO SOLVE
THIS PROBLEM AS A STATE YES.
THANK YOU DOCTOR EMILY JUST ONE
CLEAR. THE LOCAL ASSISTANCE
HERE IS ACTUALLY MONEY THAT THE
STATE IS GIVING TO LOCAL
ENTITIES TO RUN THE PROGRAM NOT
MONEY THAT THE STATE IS
RECEIVING FROM LOCALS- WE DON'T
HAVE. LOCAL GOVERNMENT FUNDING
ON THIS CHART BUT IF IT WOULD
BE HELPFUL HAPPY TO TRY TO- GET
THOSE NUMBERS AS WELL. I DO
APPRECIATE IN AGAIN JUST LIKE I
STARTED HAVE ALWAYS. FELT THAT
THE ALEJO'S DONE A GREAT JOB
FOR THOSE OF US WITHIN THE
LEGISLATURE- I WILL LEND MY
COMMENTS TODAY I SAW THE CSU ON
THERE AND I SEE OUR CHAIR OF
HIGHER EDUCATION IS- A SUB TWO
IS HERE AS WELL- THERE WAS A
RECENT HIGHER THAT THE STATE OF
CALIFORNIA MADE AND I WOULD
JUST LIKE TO APPRECIATE AND
ACKNOWLEDGE WE HAVE THE FIRST
NATIVE CALIFORNIAN. AND MEXICAN
AMERICAN CHANCELLOR OF RCS USE
THE. LARGEST PUBLIC UNIVERSITY
AND OUR NATION AND I'M QUITE
PROUD THAT CASH IS NOW THAT
CHANCELLOR AND WHAT ONE WITH
KNOWLEDGE ALL OF THOSE WHO ARE
ON THE BOARD AS WELL AS- THE
ADMINISTRATION FOR MAKING THAT
HIGHER IT'S A BIG STEP FORWARD
FOR OUR STATE. THANK YOU MISTER
CHAIR. YEAH LET ME JUST
REITERATE I THINK WHAT YOU JUST
SAID THAT DR GRANT I THINK DR.
CASTRO WAS AMAZING ARE I THINK
HE'S THE RIGHT PERSON AT THE
RIGHT TIME AND I THINK YOUR
FOR. YOUR LOSS IS THE STATE'S
GAME AND- I UNDERSTAND NO
FRESNO STATE TO START TO SEE
HIM GO BUT- THE SYSTEM IS GONNA
BE BETTER FOR AND HE'S A- HE'S
BEEN AMAZING ADMINISTRATOR-
AND- HE'S GONNA DO A PHENOMENAL
JOB SO JUST WANT TO REITERATE
THAT. MR FONG. WITH I THANK YOU
MISTER CHAIR. I WANT SOME OF MY
QUESTIONS IN TERMS OF- I GUESS
THE BUDGET A RELATIONSHIP WITH
THEECONOMY- CERTAINLY OUR OUR
BUDGET HEALTH IS TIED TO OUR
ECONOMIC HEALTH SO ARE THERE
ANY PROJECTIONS OR INITIAL
PROJECTIONS RIGHT NOW IN TERMS
OF WHAT OUR GENERAL FUND WILL
LOOK LIKE- NEXT YEAR- CERTAINLY
WE ARE IN A IN IN A AND NO
THROWS A VERY DEEP RECESSION.
AND LOOKING INTO THE NEXT TAX
YEAR WITH MANY CALIFORNIANS WHO
HAVEN'T WORKED FOR NINE MONTHS
AND BUSINESSES WHO ARE
STRUGGLING TO REOPEN- WHAT DOES
KIND OF OUR GENERAL FUND
OUTLOOK LOOK LIKE. YEAH AND SO
OUR OFFICE IS ACTUALLY
CURRENTLY JUST STARTING OUR
NOVEMBER FISCAL OUTLOOK PROCESS
WHICH- IS THE ANNUAL REPORT
THAT WE PROVIDE TO THE
LEGISLATURE IN NOVEMBER OF EACH
YAR- GIVING AN OVERVIEW FOR
THE BUDGETS CONDITION OUR OUR
VIEW OF THE BUDGETS CONDITION
FOR THE UPCOMING YEAR TWENTY
ONE TWENTY TWO- AND THEN THE
MULTI YEAR. SO I DON'T HAVE
ANY- RESULTS FROM THAT REPORT
YET TO SHARE WITH YOU ALTHOUGH
OF COURSE AND WE WILL SHARE
THOSE RESULTS WITH THE
LEGISLATURE IN WITH YOU- THAT
WHEN THAT REPORT IS RELEASED
BUT I CAN ALSO SAY THAT. YOU
KNOW JUST LOOKING AT THE TAX
REVENUE COLLECTIONS TO DATE FOR
THE CURRENT YEAR. OUR REVENUE
COLLECTIONS THROUGH THE END OF
MARCH OR AHEAD OF PROJECTIONS
IN THE BUDGET AX BY ABOUT SIX
BILLION DOLLARS IN SEPTEMBER
WELL WE ONLY HAVE PRELIMINARY
DATA SO FAR- IT IS LOOKING ALSO
LIKE IT'S GOING TO BE SIMILARLY
STRONG AND AHEAD OF PROJECTIONS
WITHHOLDING FOR EXAMPLE HAS
REMAINED PRETTY STRONG IN
TWENTY TWENTY SURPRISINGLY
PERHAPS- COMPARED TO TWENTY
NINETEEN. AND SO WHILE
CERTAINLY THE STATE COULD FACE
ANOTHER BUDGET PROBLEM IN
TWENTY ONE TWENTY TWO IT'S ALSO
POSSIBLE THAT THE STATE EITHER
WON'T HAVE ANYWHERE NEAR AS
LARGE OF A BUDGET PROBLEM AT
TWENTY ONE TWENTY TWO THAT IT
HAD IN THIS YEAR. OR THAT IT
MIGHT EVEN NOT HAVE A BUDGET
PROBLEM IN TWENTY ONE TWENTY
TWO SO THAT'LL BE AN IMPORTANT-
QUESTION AN ASSESSMENT THAT WE
WILL BE HAPPY TO PROVIDE MORE
INFORMATION ON ONCE WE FINISH
THAT NOVEMBER OUTLOOK. I WOULD
I GUESS I APPRECIATE YOUR
OPTIMISM BUT D. I DON'T DO YOU
HONESTLY BELIEVE THAT WE WILL
BUDGET SITUATION NEXT YEAR. NO
NOT AT ALL- WE VERY WELL COULD
SEE A BUDGET PROBLEM NEXT YEAR
IT WAS JUST IT MEANT MERELY I
WAS TRYING TO SAY THAT IT'S NOT
A CERTAINTY THAT WE WILL SEE A
BUDGET PROBLEM NEXT YEAR OR
THAT IF WE DO SEE ABOUT YOUR
PROBLEM. THERE IS IT YOU KNOW
OKAY OKAY SHE GOT VERY GOOD
CHANCE THAT IT WON'T BE AS BAD
AS THE IS THIS HUGE FIFTY FOUR
HISTORICAL BIT FIFTY FOUR
BILLION HISTORIC BUDGET PROBLEM
THAT WE HAD IN TWENTY ONE
TWENTY TWO. SURE IT'S ARE AT
ALL RELATIVE I MEAN HOPEFULLY
IT'S- NOT AS BAD AS FIFTY FOUR
BILLION BUT- IF IT'S- THIRTY
EIGHT BILLION THAT'S STILL
PRETTY. A DIFFICULT- BUT- IN
TERMS OF- BUT YOU DO
ACKNOWLEDGE THE FACT THAT.
THERE IS A NEED I GUESS TO
FOCUS ON. GROWING THE ECONOMY.
AND TO ADDRESS. A LOT OF OUR
BUDGET BUDGETARY CONCERNS.
THAT'S TRUE YEAH I THINK WHAT
OUR OFFICE WOULD SAY IN TERMS
OF THE ROLE OF THE STATE
GOVERNMENT IS THAT THE MOST
EFFECTIVE WAY FOR THE STATE
GOVERNMENT TO IMPROVE THE
ECONOMIC OUTLOOK FOR THE STATE
IS REALLY IN- CONTROLLING THE
VIRUS AND ALLOWING THE STATE
ECONOMY TO RE OPEN IN THAT
AVENUE BECAUSE THE STATE
CONSTITUTION PREVENTS THE STATE
FROM DEFICIT SPENDING SIMILAR
TO HOW THE FEDERAL GOVERNMENT
CAN DO SO IT'S PRETTY DIFFICULT
FOR THE STATE TO DO WHAT YOU
THINK OF THIS CLASSIC STIMULUS
SPENDING. BUT RATHER THAT THE
STATE'S STRENGTHS ARE REALLY
AND YOU KNOW IN THE PUBLIC
HEALTH DEMAND BUT THEN ALSO IN
MITIGATING VIA FAX THE ECONOMIC
EFFECTS OF THE PANDEMIC IN THE
ENSUING RECESSION FOR SPECIFIC
INDIVIDUALS FOR BUSINESSES IN A
TARGETED WAY. THE L. A. O. HAVE
ANY. PERSPECTIVE IN TERMS OF
HOW THE STATE. COULD PROVIDE
MORE CERTAINTY I GUESS TO
BUSINESSES I MEAN CERTAINLY. WE
ALL UNDERSTAND THAT WE NEED TO
GET. WE HAVE A PUBLIC HEALTH
CHALLENGE AND WE NEED TO GET
CODED UNDER CONTROL BUT- HOW DO
YOU. I HAVE MY I GUESS MY
QUESTION IS WE HAVE TO DO BOTH
AT THE SAME TIME KOBE DOES
EXIST IN OUR SOCIETY. AND AT
THE SAME TIME WE'RE TRYING TO
BALANCE PUBLIC HEALTH WITH. THE
REALITY OF JUST THE REAL WORLD.
SELL EACH IS A DO YOU HAVE ANY
SUGGESTIONS IN TERMS OF HOW DO
YOU PROVIDE CERTAINTY FOR
BUSINESSES AND INDUSTRIES
TRYING TO RE OPEN. YEAH I MEAN
I AGAIN I THINK OUR PERSPECTIVE
IS THAT THE STATE CAN PROVIDE
TARGETED ASSISTANCE OR PLACES
WHERE THE STATE CAN COMPLEMENT
EFFORTS THAT ARE ONGOING BY THE
FEDERAL GOVERNMENT IN THESE
AREAS SO FOR EXAMPLE IN THE
MOST RECENT BUDGET THERE WAS
THE HIRING TAX CREDIT THE
PROVIDED A THOUSAND DOLLARS PER
INDIVIDUAL HIRED- YEAH- AT IN A
CERTAIN TIME FRAME THERE'S ALSO
SMALL BUSINESS LOANS THAT WERE
AUTHORIZED BY THE GOVERNOR.
THAT WERE INTENDED TO TARGET
BUSINESSES THAT WERE NOT
ELIGIBLE FOR THE PAYCHECK
PROTECTION PROGRAM THE FEDERAL
PROGRAM- AND THESE KINDS OF
EFFORTS ARE EXAMPLES OF PLACES
WHERE THE STATE CAN PERHAPS
COMPLEMENT THE FEDERAL EFFORT
BUT CERTAINLY CAN. UNDERTAKE
THE SAME KIND OF FINANCIAL
PRESENCE THAT THE FEDERAL
GOVERNMENT CAN. OKAY IN IN
TERMS OF- IN TERMS OF YOUR
CHARTS AND- AND THE SPENDING
EXPENDITURES THAT YOU
HIGHLIGHTED. ARE THERE ANY
TRENDS THAT CONCERNED THE L. A.
L. OR THEIR TRENDS THAT WE
SHOULD BE FOCUSED ON. ARE THERE
TARGETED REDUCTIONS THAT YOU
WOULD SUGGEST OR THEIR
EXPENDITURES THAT. THAT WE AS A
STATE SHOULD NOT BE MAKING OR
TO RE EVALUATE. YOU KNOW.
OBVIOUSLY THAT'S A VERY
SWEEPING QUESTIONING CAN REALLY
DEPEND ON THE INDIVIDUAL
PROGRAM I AM. I THINK THAT IT'S
REALLY IT'S A CASE BY CASE
BASIS AND OUR OFFICE IS ALWAYS
HAPPY TO WORK WITH THE
LEGISLATURE AND HOW KIND OF
HELP THINK ABOUT WHAT IS THE
MISSION OF EACH DEPARTMENT IS
THAT DEPARTMENT MISSION REALLY
WHAT THE LEGISLATURE WANTS TO
GET OUT OF IT- IS THE PROGRAM
FUNDING LEVEL FOR THAT MISSION
APPROPRIATE. AND YOU KNOW THOSE
ARE CERTAINLY QUESTIONS THAT WE
ASK EVERY YEAR AS PART OF OUR
ANNUAL BUDGET PROCESS AND WILL
CONTINUE TO ASK- I DON'T HAVE
ANY YOU KNOW SPECIFIC EXAMPLES
OFF THE TOP OF MY HEAD BUT ALSO
HAPPY TO FOLLOW UP WITH YOU IF.
YOU'RE LOOKING FOR MORE
INFORMATION ON SPECIFIC PROGRAM
I MEAN I'LL UNDERSTATEMENT ME
AYE AYE THERE'S NO SECRET THAT
I HAVE BY MY ISSUES WITH THAT
HIGH SPEED RAIL SYSTEM AND THE
L. A. O. AS PREVIOUSLY NOTED.
THAT THE STATE SHOULD PROBABLY
NOT MOVE FORWARD OR OR IF THE
STATE DOES MOVE FORWARD WITH
ENTERING INTO LIKE A THIRTY
YEAR MAINTENANCE CONTRACT. THAT
THAT LOCKS IN- AS HE NEVER MET
SPENDING MOVING FORWARD. SO I
MEAN SOMETHING LIKE THAT I
GUESS WOULD BE HOW WAS THAT
REFLECTED IN YOUR CHARTS. YEAH
SO HIGH SPEED RAIL IS A
COMBINATION FUNDED. IS
COMBINATION FUNDED WITH FEDERAL
FUNDS AND THEN MAINLY
GREENHOUSE GAS REDUCTION FUND-
CERTAINLY THEIR ISSUES YOU KNOW
WITHIN THE GREENHOUSE GAS
REDUCTION FUND YOU CAN ALLOCATE
THOSE FINDINGS TO DIFFERENT
AMOUNTS HIGH SPEED RAIL IS ONE
OF THEM. I'M SO TO THE EXTENT
THAT THE STATE THOUGH PULLED
BACK MONEY FOR HIGH SPEED RAIL
ASSOCIATED WITH GREENHOUSE GAS
REDUCTION FUND THAT WOULDN'T
NECESSARILY ADDRESS THE BUDGET
PROBLEM WHICH IS A GENERAL FUND
PROBLEM- ALSO. YOU KNOW SORT OF
A NOTE OF CAUTION ON THAT IS
THAT THE- FEDERAL FUNDING
PROVIDED TO DATE IS ABOUT THREE
POINT FIVE BILLION DOLLARS. AND
IF THE STATE YOU KNOW- TOOK
SPECIFIC ACTIONS AROUND HIGH
SPEED RAIL THAT JEOPARDIZE.
THAT FUTURE THAT FEDERAL
FUNDING BECAUSE OF CHANGES TO
THE AGREEMENT THAT THE STATE
HAS MADE WITH THE FEDERAL
GOVERNMENT. THERE'S CHANCES
THAT THAT MONEY WOULD NEED TO
BE REPAIRED SO OBVIOUSLY THIS
IS A VERY DELICATE ISSUE AND
IT'S NOT MY- A PARTICULAR
PROGRAM AREA WE'VE NOW
EXHAUSTED MY KNOWLEDGE OF HIGH
SPEED RAIL- BUT- YOU KNOW WHAT.
FOR FURTHER QUESTIONS HAPPY TO
REFER YOU TO THE STAFF WITHIN
OUR OFFICE AND I MEAN TO PUT
YOU ON THE SPOT I JUST IT'S ONE
OF TOSE. THOSE GUYS. AGREE
JUST EXAMPLES OF STATE
EXPENDITURES THAT I THINK AND
WE THE LEGISLATURE. ARE
GRAPPLING WITH. I DO LOVE I DO
APPRECIATE. YOUR THE
INFORMATION YOU PROVIDED.
CERTAINLY MY PERSONAL VIEW IS
THAT. YOU KNOW. WE IN A WORLD
OF OBVIOUSLY GIVEN A KIND OF A
FALSE CHOICE THAT WE GOING TO
DO THIS OR THAT WE GOTTA DO
YOU. PUBLIC HEALTH ARE WE GOING
TO PROTECT THE ECONOMY BY I
THINK WE ARE CHALLENGED TO HAVE
TO DO BOTH. AND SO. FROM MY
PERSPECTIVE AS WE'RE DEALING
WITH THE WITH THE BUDGET AND
HOW WE'RE GOING TO MAKE
IMPORTANT INVESTMENTS. I THINK
WE DO HAVE TO TRY TO FIGURE OUT
A WAY TO- SAFELY- REOPEN THE
ECONOMY WILL CONTROLLING COVE
IT AND THAT MEANS THAT WE GOT
TO GIVE BUSINESSES CERTAINTY. I
DO BELIEVE THAT WE PROBABLY
NEED TO FREEZE TAXES AND FEES
WHERE THEY ARE AND GIVE SMALL
BUSINESSES THE CHANCE- TO
RECOVER. AND I THINK MOVING
FORWARD I DO BELIEVE THAT OUR
BUDGET. WILL DECISIONS ARE
GOING TO BE VERY DIRE. AND
DIFFICULT NEXT YEAR AND SO WE
NEED TO BEGIN HAVE TOUGH. THANK
PROCESS WITHOUT A- THE CHAIR
FOR PUTTING THE COMMITTEE
HEARING TO. BECAUSE I THINK
THIS IS THE BEGINNING OF A VERY
IMPORTANT CONVERSATION THANK
YOU. THANK YOU MISPERTON I
THANK YOU JUST WHAT FIRST OF
ALL THIS IS VERY HELPFUL FOR
THE OVERALL BUDGET DISCUSSION
BECAUSE WHETHER IT'S OUR
HUNDRED AND TWENTY LAWMAKERS
AND EIGHTY IN THE ASSEMBLY OUR
CONSTITUENTS YOU KNOW THEY'RE
ALWAYS ASKING WHY CAN'T WE CUT
TAXES OR PUT MORE MONEY TO OUR
SCHOOLS OUR MONEY FROM HIGH
SPEED RAIL TO USE YOU SEE AND
SO I THINK THIS IS A REALITY AS
FAR AS WHERE THE MONEY GOES
AND- WHERE IT'S WORKED WITH THE
TRENDS ARE AND WHAT THE
OPPORTUNITIES ARE SO- IT. I
JUST HAVE A COUPLE MAYBE. NEW
WANTS QUESTIONS IN AB ONE BIG
BIG PICTURE. SO ONE THING IS I
KNOW THAT MR ARAMBULA MENTIONED
HIGHER EDUCATION WE DO LOVE OUR
NEW. A CSU LEADER I KNOW WE'RE
GOING TO HEAR FROM THE UC
BECAUSE ON THIS CHART IT SAYS
THAT THE LAST DECADE. THE CSU.
GROWTH HAS BEEN ABOUT WHAT IT
LOOKS LIKE ABOUT 8% AND THEN
CSU. IS ABOUT FIVE AND WE
USUALLY RY TO KEEP THEM.
ROUGHLY EQUAL YOU KNOW IT'S
KIND OF LIKE TWO SIBLINGS
FIGHTING FOR GIFTS AT THE
HOLIDAYS AND WANTS WANT PARITY.
SO WHAT CAN YOU. EXPLAIN THE
DIFFERENCE HERE WHAT CAN YOU DO
TO EXPLAIN THIS. YEAH THERE
WERE THERE WERE A FEW YEARS
WHERE- BUDGET AUGMENTATIONS FOR
UC AND CSU WERE PROVIDED. AT
THE SAME DOLLAR LEVEL BUT THAT
ACTUALLY REPRESENTED DIFFERENT
PERCENTAGE LEVELS OF EACH OF
THE EACH OF THEIR BUDGET SO NOW
YOU SEE IN CSU'S TOTAL BUDGETS
ARE ACTUALLY ROUGHLY THE SAME
THEY'RE VERY CLOSE TO ONE
ANOTHER BUT- A FEW YEARS AGO
THAT WAS NOT THE CASE AND SO
THE DOLLAR TERMS ESSENTIALLY
HAD CSU CATCH UP TO YOU SEE. IN
TERMS OF THEIR TOTAL BUDGET BUT
IN PERCENTAGE TERMS IT WAS
FASTER FOR CSU AND UC. OKAY AND
THEN IF YOU LOOK AT THAT WHERE
WE SPEND THE MAJORITY OF
GENERAL FUND MONEY. IT'S
CERTAINLY EDUCATION SO- PRODUCT
SO THE PROP AND HATE SCHOOL
EXPENDITURES UC AND CSU AND
HEALTH CARE. SO IF YOU LOOK AT
WHERE THAT THE ANNUAL GROWTH
THE ON THE KAHNEMAN PAGE TO OF
COURSE. SO THE OUTLINED AS FAR
AS HEAVY SPENDING THE LAST
DECADE. THIRD THERE NOT A LOT
OF. ONE BIG DOLLAR AMOUNT
BUDGET AREAS THANK THE HIGHER
AT THE K. TWELVE IS. IT LOOKS
LIKE. AND IT LOOKS LIKE ABOUT
4% AND THEN IS IT WE LOOK AT
MEDIKAL. IS THAT THIS IS THAT
THE TOTAL. OR JUST THE STATE
PORTION. THIS IS JUST STATE
MONEY SO GENERAL FUND AND
SPECIAL ONES RIGHT IF YOU
INCLUDED FEDERAL FUNDS MEDICAL
WOULD BE GROWING MUCH FASTER SO
FOR MEDICARE HOW THAT'S REALLY
NOT THAT. A YOU KNOW A POLICY
CHOICE THAT'S THAT'S CASELOAD
RIGHT THAT'S RESPONDING TO
WHAT'S HAPPENING IN FOR HELP
NEEDS ACROSS CALIFORNIA AND-
HILL. THE RURAL IRVINE CENTRAL
VALLEY THE BAY AREA LA ALL OVER
CALIFORNIA. THAT AS WELL AS
JUST POPULATION GROWTH RIGHT.
YEAH THE MAJOR DRIVERS OF-
MEDICAL SPENDING R. ONE CHANGES
IN POLICY SO OF COURSE WITH THE
AFFORDABLE CARE ACT AND THEN
THAT. OPTIONAL EXPANSION THAT
WAS REALLY A BIG DRIVER OF TO
MEDIKAL GENERAL FUND GROWTH
OVER TIME FOR AS THE STATE
MATCH FOR TOTAL FUNDING WENT
DOWN IN THE PARKS RIGHT THIS
SHOULD STATE MATCH WENT UP AND
FEDERAL FUNDING ATCH WENT DOWN
FOR THE OPTIONAL EXPANSION
POPULATION- AND THEN THE SECOND
BIG CATEGORIES OF COST AS YOU
POINT OUT OUR CASELOAD
UTILIZATION AND PRICES AND IN
PARTICULAR PRICES CAN BE- A
PRETTY DRIVING. COST FACTOR AS
FOR EXAMPLE PHARMACEUTICAL
COSTS HAVE GONE UP. YEAH AND
THEN- WHEN YOU LOOK AT. THE
OPPORTUNITIES POTENTIALLY TO
MAKE OTHER EXPENDITURES IF WE
HADN'T DIFFERENCE IF YOU LOOK
AT. BUCKETS AND POTS OF
RESOURCES WHERE WOULD YOU GO
FIND. THOSE AND AGAIN I MEAN I
KNOW THE ANSWER BUT HE COULD
JUST REMIND US IS LIKE IF YOU
WANTED TO. YOU KNOW IT CUT
TAXES OR YOU KNOW FOCUS ON
RESPONDING TO TWO COVETED FOR
RENT RELIEF FOR PROGRAMS FOR
MALL BUSINESSES RIGHT NOW SO
WHAT PARTS OF THE BUDGET WOULD
YOU TAKE FROM TO DO THAT. OKAY
SO I THINK WHAT YOU'RE ASKING
IS WHERE DOES THE LEGISLATURE
HAVE FLEXIBILITY TO MAKE
REDUCTIONS BECAUSE THE
LEGISLATURE ALWAYS HAS TO PASS
A BALANCED BUDGET SO ANY TIME
YOU KNOW ONE SPENDING INCREASE
SPENDING IS INCREASED OR
REVENUES ARE REDUCED- THAT IS
SORT OF BY DEFINITION GOING TO
HAVE TO MEAN THAT THE BUDGET
HAS TO MAKE REDUCTIONS IN
ANOTHER PLACE EITHER REVENUE
INCREASE IN ANOTHER PLACE OR
EXPENDITURE REDUCTION AND OTHER
PLACES- THE LEGISLATURE IS
QUITE CNSTRAINED IN MAKING
REDUCTIONS IN CERTAIN AREAS OF
THE BUDGET FOR EXAMPLE AROUND
THE PROPOSITION NINETY EIGHT. I
REQUIREMENTS WHICH ARE
CONSTITUTIONAL THE LEGISLATURE
CAN ONLY SUSPEND THOSE WITH A
TWO THIRDS VOTE AND HEALTH AND
HUMAN SERVICES PROGRAMS TO
THERE'S NOT A LOT OF
FLEXIBILITY BECAUSE A LOT OF
THOSE PROGRAMS TEND TO BE
FEDERAL AND STATE JOINT. FUNDED
PROGRAMS IN THE FEDERAL
GOVERNMENT REALLY HAS A LOTOF
REQUIREMENTS AROUND THE STATE
FOR- HOW IT CAN MAKE REDUCTIONS
SO THE PLACES WHERE THE STATE
TENDS TO HAVE MORE FLEXIBILITY
ARE IN THE UNIVERSITIES
EMPLOYEE COMPENSATION AND FOR
THE COURT SYSTEM. YEAH AND THE
REALLY THE ONLY TWO POTS WHERE
THERE'S- A LOT OF MONEY OR THE
UNIVERSITY SYSTEM WITH GENERAL
FUND. THANK I'M AN EMPLOYEE.
WITH THE YOU KNOW STATES
DOLLARS YES AND THOSE ARE
NEGOTIATED CONTRACTS WE HAVE TO
FUND RIGHT. THAT'S CORRECT. AT
I DO WANT TO ASK ABOUT THE- THE
DEBTS DEBT SERVICE IT IT SEEMS
THAT. IT'S LIKE WHAT 3% OF THE
GENERAL FUND. ANNUAL DEBT
SERVICE- WHAT IS IT IT'S 3%
GROWTH OVER THE LAST TEN YEARS
I'M NOT SURE WHAT WHAT IS IT OF
THE GENERAL FUND ABOUT IT I'M
SORRY I DON'T KNOW THAT OFF THE
TOP OF MY HEAD CHRISTIAN IS IT
LIKE. FIVE THE DEBT SERVICE IT
WE ALWAYS SAY WE WANT TO KEEP
IT AT A CERTAIN LEVEL WHEN WE
THINK ABOUT PUTTING MORE BONDS
ON THE BALLOT LIKE THE STENCIL
BONNER THE EDUCATION BOND. SO I
GUESS THE QUESTION IS THAT
THERE'S BEEN. IDEAS ABOUT HOW
WE COULD HAVE IT INFRASTRUCTURE
BOND TO. FURTHER STIMULATE THE
STATE ECONOMY TO LOOK AT. YOU
KNOW- INFRASTRUCTURE PROJECTS
ORDERS OR WORK FORCE- WHERE ARE
WE AT AS FAR AS THE OVERALL.
PORTION OF OUR STATE BUDGET
THAT GOES TO DEBT SERVICE FOR.
GEO BONDING AND WHETHER OR NOT
THAT'S THE APPROPRIATE LEVEL
WHETHER THAT WERE AT- A LOAN
OUT RIGHT NOW SO CONSIDER IT.
OTHER BOND MEASURES IN THE
FUTURE ANOTHER IS AT LEAST ONE
OF THE BALLOT RIGHT NOW AND I
THINK. ANOTHER IDEA TO PUT AN
AD BOND BACK ON THE BALLOT.
AFTER IT FAILED IN THE PRIMARY.
YEAH I'M SORRY I DON'T I WISH I
HAD THOSE NUMBERS OFF THE TOP
OF MY HEAD OR IN FRONT OF ME I
DON'T BUT- I MIGHT ASK IF THE
DEPARTMENT OF FINANCE KNOWS.
OKAY AND THEN LASTLY AS FAR AS
THE- YEAH. IS THE US HAVE A
HAVE AN ANSWER FOR THAT. HE
LEADS THE RESIDENTS GET A
DEPARTMENT FINANCE I ALSO DO
NOT HAVE THAT INFORMATION WITH
ME. I KNOW IT'S SOMETHING WE
TALK ON A REGULAR BASIS I'M
SURE. SOME OF THE POP UP IN A
FEW SECONDS BUT LET ME JUST
FLIP TO IT TO ANOTHER AS FAR AS
THAT THE HEALTH BENEFITS FOR
RETIREES THAT'S ALWAYS BROUGHT
UP A LOT AS FAR AS- STATE
OBLIGATIONS AND- YOU KNOW-
LIABILITIES FOUR. FOUR HEAT.
ESPECIALLY LOCAL GOVERNMENT BUT
ALSO FOR STATE TO EVERYBODY IN
THE FUTURE- DO WE ANTICIPATE
THAT TO REMAIN. RELATIVELY
STEADY OR IS THAT. GOING O BE
INCREASED OVER THE IN THE OUT
YEARS. I MULTI YEAR PROJECTIONS
HAVE SHOWN RETIREE HEALTH
BENEFITS CONTINUING TO GROWING
COST WITH- JUST GENERAL RISES
IN HEALTH CARE COSTS AND SINCE
YOU KNOW HEALTHCARE COSTS ARE
RISING- ARE COSTS TO PROVIDE
BENEFITS FOR HOW RETIREE HEALTH
IS ALSO RISING ANOTHER THING TO
NOTE ABOUT RETIREE HEALTH IS
THAT THE STATE- BEGAN I'VE
FOUGHT BEGAN A PLAN TO PRE FUND
RETIREE HEALTH BENEFITS IN THE
TWENTY FIFTEEN SIXTEEN BUDGET.
THROUGH THE BARGAINING- PROCESS
OUR COLLECTIVE BARGAINING AND
SO STATE COSTS- FOR PRE FUNDING
OF RETIREE HEALTH HAVE ALSO
INCREASED IN RECENT YEARS
ALTHOUGH I THINK YOU KNOW THE
WAY TO THINK ABOUT THAT MIGHT
BE THAT THE STATE IS SETTING
ASIDE MORE MONEY TODAY- IN
ORDER TO PAY FOR THOSE COSTS IN
THE FUTURE AND IDEALLY. TO PAY
MUCH LESS IN THE FUTURE THAN IT
WOULD HAVE OTHERWISE HAD IT NOT
SET ASIDE THAT MONEY TODAY SURE
SO SPEAKING OF RETIREE HEALTH
THAT THERE THERE THERE ARE A
LOT OF THINGS WE WANT TO DO IN
THE STATE BUDGET. DR RAMBLE AS
SUBCOMMITTEE IN MIND THERE'S
LESS THERE ARE LINES FOR HOURS
AND WE COULD SPEND OUR BUDGETS
TWO TIMES OVER ON OUR WISH LIST
AND WE JUST DON'T DON'T HAVE
THE RESOURCES AND SO YOU KNOW
WHAT DO YOU DO YOU YOU YOU CUT
SPENDING OR YOU INCREASED TAX
REVENUE OR YOU HOPE THE ECONOMY
GROWS AND MAYBE A COMBINATION.
ONE THING THAT THAT POPS UP
EVERY NOW AND THEN IS THIS
ISSUE WITH- EMPLOYEE EMPLOYEE
HEALTHCARE RETIREES. AND THERE
IS THERE PROPOSALS THAT I'VE
HEARD OF BUT WHEN I WAS A LOCAL
GOVERNMENT TO AS FAR AS OUR
AREN'T STATE EMPLOYEES ARE
GOVERNMENT EMPLOYEES THAT
AREN'T NECESSARILY SWITCHING TO
MEDICARE- WHEN THEY'RE- WHEN
THEY ARE DONE AGE ELIGIBLE WHEN
CORRECT. THE TWO LOOK AT I CAN.
SIX SIXTY. AND SO I HAVE
THOUGHT A THAT A FAR AS TEAM
THAT WE COULD DO IN STATE LAW
TO BASICALLY- YOU KNOW HAVE
MORE OF OUR HAVE OUR IN OUR
INDIVIDUALS GO TO MEDICARE WE
ARE WE LEAVING MONEY ON THE
TABLE AND PAYING FOR HEALTH
CARE WITH STATE DOLLARS WHICH
WE COULD BE DRAWING DOWN
FEDERAL DOLLARS AND HAVING
THOSE INDIVIDUALS GOING ON
MEDICARE EVEN IF WE HAVE TO BUY
YOU KNOW LIKE THAT. COULD LEAD
TO THAT ADVANTAGE MEDICARE
ADVANTAGE THE PLAN B. TO
WHATEVER TO GET THEM TO THE
SAME LEVEL WERE THAT. AND THEN
WE COULD USE THOSE FOR OTHER
PRIORITIES IN THE STATE BUDGET.
YEAH LET ME TURN IT OVER TO MY
COLLEAGUE CAROLINE CHU WHO CAN
TALK ABOUT THIS A LITTLE BIT
MORE. GEN CAROLINE. OKAY YES
SO- YOU ARE YOU ARE CORRECT
THAT WHEN- RETIRED. US STATE
RETIREES I TURN SIXTY FIVE THAT
THERE ARE. OVERHEAD BENEFIT
CONVERTS ESSENTIALLY TO BE A
WRAPAROUND BENEFIT FOR
MEDICARE. SO THERE THE- MONEY
THAT THE CITY WOULD OTHERWISE
BE USING TO PAY FOR THEIR
HEALTH CARE PREMIUMS- THROUGH
LIKE A KAISER OR OTHER TYPE OF.
HEALTH INSURERS- GOES TOWARDS.
FOR THE DIFFERENT COMPONENTS OF
MEDICARE COVERAGE FOR THEIR
PART A PART B. PART. C. AND D.
IT'S OTHER UP. YEAH SO IS THERE
AFTER EVERY BEEN A REAL
PROPOSAL AS FAR AS SHIFTING
ANYTHING TO. HAVING MORE
INDIVIDUALS. GO TO MEDICARE AND
NOT HAVING THAT STATE BENEFIT.
THEY THEY DO HAVE TO SHIFT TO
MEDICARE COVERAGE YES THEY HAVE
TO SHIFT TO MEDICARE COVERAGE
OF SIXTY FIVE WHAT THE STATE
CONTINUES TO PAY FOR OUR THEIR
MEDICARE PREMIUMS- THE STATE AS
FAR AS MY KNOWLEDGE GOES HAS
NOT HAD DELIBERATIONS ON
WHETHER OR NOT TO- SHIFT SHE
WHERE- RETIREES PAY FOR THOSE
PREMIUMS OUT OF POCKET. AND THE
BENEFIT IS THAT CURRENTLY EXIST
IS WHERE THE STATE RETIREE
HEALTH BENEFIT HE IS FOR THOSE
PREMIUMS SO THE BULK OF THE- SO
THE BULK OF THE MONEY. THAT WE
WOULD PAY FOR INDIVIDUALS AND
JUST OTHER PREMIUM FOR MEDICARE
IS IF THE RETIRED SO I'M I'M
LOOKING HERE AT MY- COLLEAGUE
MY STATE WORKER FORMER STATE
WORKER MR LACKEY WAS A FORMER
CHP OFFICERS AT THE CHP OFFICER
RETIRES AT. FIFTY OR FIFTY
FIVE. BETWEEN GETS THOSE YEARS
BETWEEN THAT CAN SIXTY FIVE.
THAT WE'RE PAYING FOR AND THEN
WHEN THEY TURN SIXTY FIVE IS
THE PREMIUM. FOR MEDICARE. THAT
WE PAY FOR EVERYBODY. AND
THAT'S A THAT'S A BARGAIN IT'S
A NEGOTIATED BENEFIT THAT'S
THAT'S THAN THEIR- IN THE
CONTRACT FOR WHAT'S- ELIGIBLE
FOR EMPLOYEES. THAT IS THE THAT
IS THE BENEFIT THAT THEY ARE IT
IS NOT BARGAINS NECESSARILY
THOUGH IT CAN BE BUT IT IS THE
BENEFIT THAT THEY ARE RECEIVE
WHEN THEY START EMPLOYMENT WITH
THE STATE YES SO FOR ALL
RETIREES TECH WORKERS AT SIXTY
FIVE WE PAY THE- MEDICARE
PREMIUM FOR THEM. IF THEY ARE
ELIGIBLE FOR MEDICARE THEY THE
STATE PAYS THE PREMIUMS. OKAY
QUESTION YES OKAY THANK YOU FOR
THAT SO I MAY I MAY HAVE SOME
FOLLOW UP OFFLINE ABOUT THAT
BECAUSE WE STILL CONTINUE TO
GET ALL OF US UP HERE ENQUIRIES
ABOUT THERE IS THE SOLUTION WE
COULD DO X. Y. Z. THAT WE'RE
NOT THINKING ABOUT WHEN IT
COMES TO RETIREE HEALTH AND
MEDICARE SO THANK YOU HAPPY TO
FOLLOW UP WITH YOU YOU. MISTER
MCCARTY- CHRISTIAN GRIFFITH
WITH ASSEMBLY BUDGET THE- TED
SERVICES ABOUT EIGHT BILLION
DOLLARS A YEAR AND IT'S OF
ROUGHLY FIVE POINT 8% OF STATE
GENERAL FUND REVENUE YEAH IT IS
THAT A TRADITIONAL- AMOUNT- IS
THAT RELATIVELY HIGH. OR LOW.
SO IT IS- IT HAS BEEN GOING
DOWN IT WENT UP THIS LAST YEAR
BECAUSE THE ACTUAL REVENUE
NUMBER WENT DOWN SO THE NUMBER
OF IT'S STILL EIGHT BILLION BY
THE END OF. THE NOMINATOR WENT
DOWN BECAUSE YOU HAVE LESS
REVENUE BECAUSE OF THE
RECESSION BUT YOU. SENSUALLY IT
IS BEEN SLOWLY GOING DOWN AS
WE'VE- CEASED ISSUING. BONDS
AND SO THE CONTROLLER HAS AYE
THE TREASURER HAS A REPORT ON
DEBT AFFORDABILITY THAT THE
TRICK PHOTOGRAPHER YOU'RE THE
SORT OF. DENOTES THIS IN
BETWEEN THERE ARE IMPROVE
CREDIT RATING AND FILL THE
CESSATION OF ART BOND ISSUANCES
WERE SPENDING LESS THAN WE DID
BEFORE. YEAH OKAY. THANK YOU
ARE. QUESTIONS FOR THE MEMBERS
THE COMMITTEE. THE NUMBERS ARE
NOT THE- HI GUESTS PLEASE YEAH
VENTURE I'M ACTUALLY PICKING UP
ON MR FONG AS INCREASE
REGARDING OUR OUTLOOK IT
DEPARTMENT OF FINANCE DO YOU
HAVE AN UPDATED OUTLOOK. BASED
ON WHAT WE'VE SEEN COMING IN
AND ACTUALS OVER THE COURSE OF
THE LAST COUPLE OF MONTHS.
DEPARTMENT HUNTLEY'S RESENTED
THEIR PART OF FINANCE SO WE AT
THE L. A. UNNOTICED HAVEN'T
SEEN AN INCREASE IN THE CASH
RECEIPTS- YOUR TODAY. HOWEVER
IT'S REALLY IMPORTANT TO
RECOGNIZE CASH RECEIPTS DON'T
ALWAYS EQUATE TO INCREASED
REVENUES WHEN WE BUILD THE
STATE BUDGET- ADDITIONALLY-
ALSO AT THE L. AND THEN CHEN.
YOU KNOW TO BALANCE THIS BUDGET
WE HAD TO DO FIFTY FOUR BILLION
DOLLARS AND SOLUTIONS SO TO THE
EXTENT THERE IS A- UPTICK IN
REVENUE IT MIGHT. JUST REDUCE
SOME OF THOSE SOLUTIONS THAT
HAVE ALREADY BEEN- TAKEN- SO WE
DO NOT HAVE AN UPDATED BUT WE
DO THOSE AT TWO DIFFERENT
POINTS IN TIME THE NEXT ONE IS
COMING UP IN THE GOVERNOR'S
BUDGET- AND JANUARY TENTH SO
WE'RE CURRENTLY WORKING ON ALL
THOSE DETAILS CASH- DETAILS
REVENUES. AND INCREASED
EXPENDITURES AS A RESULT OF
COVERT NINETEEN AND ALSO THE
STATE FIRE SO I'M JAN TEN WE
WILL BE PRODUCING A
STRUCTURALLY. BALANCED STATE
BUDGET. OKAY AND AS YOU AS YOU
MENTIONED TO SOLVE OUR FIFTY
FOUR BILLION DOLLAR BUDGET
PROBLEM THERE ARE A NUMBER OF
DIFFERENT SOLUTIONS THAT. THAT
WE HAD DEPLOYED. AND SAID
NEARLY A FIFTH OF. THE OVERALL
BUDGET SOLUTIONS. CAME FROM CAN
BE CHANGES HOWEVER BASELINE
ASSUMPTIONS AND SUCH AS CAL
WORKS CASELOAD REDUCTIONS- AB
ONE REMEMBER BEING THE SUBJECT
OF A LOT A LOT OF CONVERSATION-
ARE WE SEEN THOSE ACTUALS
TRACK. IN LINE WITH OUR
ASSUMPTIONS ARE ARE WE
REALIZING THOSE GAINS. I DO NOT
HAVE THAT INFORMATION AND I
DON'T KNOW THAT I ANYONE. WITH
ME RIGHT NOW THAT CAN GIVE
THAT'S WE CAN CERTAINLY. HI
CAROLYN CHU FROM LEDGE AND ALL
OFFICE AND- OFFER SOME INSIGHT
INTO THIS THUS FAR- THE
CASELOADS IN BOTH CAL WORKS AND
MEDICAL HAVE TRACKED. HELLO
BUDGET ACT ESTIMATES- NOW
THAT'S NOT TO SAY THAT WE WON'T
SEE FUTURE INCREASES IN THE
NEXT FEW MONTHS- AS BOTH OUR
OFFICE AND I THINK THE
DEPARTMENT OF FINANCE- WE WERE
WITHOUT PRECEDENT IN TRYING TO
ESTIMATE WHEN WE MIGHT SEE
INCREASES IN CASELOAD FROM THE
SIGNIFICANT LEVELS OF
UNEMPLOYMENT THAT WE- US SOCCER
IN THE SPRING. OKAY GREAT THANK
YOU. AND THEN JUST ONE LAST
QUESTION A PICKING UP AND IT
MIGHT BE THAT WE NEED TO SAY
THIS FOR FOLLOW UP AS WELL BUT
I'M PICKING UP ON AT THAT THE
QUESTIONS AROUND HIGH SPEED
RAIL- SO HOW HOW MUCH ARE WE
GOING TO BE SPENDING ON HIGH
HIGH SPEED RAIL THIS BUDGET
YEAR. I'M SORRY I DON'T I DON'T
KNOW THAT OFF THE TOP OF MY
HEAD. OKAY MAYBE MAYBE
DEPARTMENT OF FINANCE HOUSES. I
DO NOT HAVE THAT INFORMATION AS
WELL. ONE MOMENT I DO THINK WE
HAVE SOMEONE WHO CAN HELP YOU A
COLLEAGUE OF MINE. ONE OF OUR
FINANCE- WE ARE. ALL THE FUNDS
ARE BEING SPENT TO HIGH SPEED
RAIL PEOPLE HAVE BEEN-
APPROPRIATED IN PAST YEARS- SO-
IN TERMS OF THE INDIVIDUAL
EXPENDITURES THIS YEAR ARE WE
CAN GET BACK TO YOU WITH THAT-
BUT- YEAH THERE'S NOTHING BEEN
NO NO A LARGE CORPORATIONS FOR
HIGH SPEED RAIL THE CURRENT
BUDGET. KAY ALL RIGHT YEAH IT
WOULD BE GREAT IF YOU COULD PUT
THAT ON A FOLLOW UP LIST I
WOULD BE INTERESTED TO SEE THAT.
JUST TO CLARIFY I THINK. THIS
YEAR IN PARTICULAR THERE WAS
SIGNIFICANTLY LESS SPENDING FOR
HIGH SPEED RAIL BECAUSE IT'S A-
IT'S A- CONTINUED APPROPRIATION
OUT OF THE GREENHOUSE GAS
REDUCTION FUND AND OBVIOUSLY
THIS YEAR'S GREENHOUSE DR GRANT
GREENHOUSE GAS REDUCTION FROM
WAS BECAUSE MUCH LOWER THAN
PAST YEARS. SO THIS YEAR WE
ANTICIPATED SIX SIGNIFICANTLY
LESS- FOR HIGH SPEED RAIL IN
OTHER YEARS. I'M DISCONNECTED%
PUBLIC FINANCE CAN YOU CAN YOU
GIVE ME THE ROUGH. CUMULATIVE
NUMBER OF DODD REVENUES ARE
ABOVE PROJECTIONS SINCE JULY
ONE. TO DATE SHE RICHEST
ROUGHLY HOW WE ARE WE TALKING
LIKE A FEW MILLION DOLLARS
WE'RE TALKING I BILLION DOLLARS
WHAT WE TALK ABOUT. AND SO
ROUGHLY ON CASH RECEIPTS- THE
TODAY I HAVE THAT WAS RELEASED
ON UR FINANCE NOW MY BELIEVE
IS FOUR POINT EIGHT. BILLION
DOLLARS ABOVE WHERE WE HAD
PROJECTED FOR THE- FIRST TWO
MONTHS. THANK YOU AND IT'S
GOING BACK TO THE DEPARTMENT OF
FINANCE I REALLY APPRECIATE
THAT CHART ON PAGE TWO FOR ALL
THE MEMBERS I WOULD ENCOURAGE
THEM TO LOOK AT ON THE INTERNET
JUST BECAUSE IT'S SO MUCH
BETTER IN COLOR IT'S EASIER TO
READ- AND ESPECIALLY SINCE IT'S
GETTING HARDER FOR ME TO READ
THINGS IT'S THIS IS GREAT. BUT
BUT JUST LOOKING AT THE CHART
IT SEEMS MANY OF THESE ITEMS.
ARE ITEMS THAT WE CAN IN SOME
WAYS DON'T HAVE COMPLETE
CONTROL OVER OBVIOUSLY MET
MEDICARE WAS A VERY BIG. BUBBLE
AND HEALTH CARE COSTS- WHILE
WE'RE TRYING TO MANAGE THEM.
ARE ALSO WHAT HEALTHCARE COSTS
ARE HIGH- DDS AND I HSS ARE
REFLECTION OF THE GROWING.
POPULATIONS THAT WE'VE SEEN IN
THOSE IN THOSE SOME COMMUTING
SAYS THAT IT'S NOT IT'S A FAIR
ACCURATE STATEMENT REGARDING
THOSE THREE HOURS. SCUMBAG TO
MISS HOLLINGSHEAD YEAH- SO YES
FOR IHS US AND DDS WE'VE SEEN
INCREASES PRIMARILY DRIVEN
THROUGH CASELOAD FOR EXAMPLE
FOR DEVELOPMENTAL SERVICES THIS
IS BECAUSE THERE BEEN INCREASES
AND THEIR RATES OF INDIVIDUALS
DIAGNOSED WITH AUTISM I AM ALSO
DDS COSTS HAVE INCREASED IN
RECENT YEARS BECAUSE OF A SHIFT
AWAY FROM INSTITUTIONALIZATION
AND THROUGH AND TO INDIVIDUAL
IT- TAILOR TREATMENT- AND CARE
AND SO- THAT'S A BIG REASON FOR
D. S. AND THEN I JUST US AGAIN.
ARE GROWING SENIOR POPULATION
SO CHANGING DEMOGRAPHICS OF THE
STATE. DR RIBBONS AS WELL
BECAUSE HE HEARS IT EVERY WEEK
BUT- YOU KNOW WE COULD WE COULD
CUT HI HSS- BUT THEN THAT
POPULATION WE HAVE TO GO FIGURE
OUT HOW TO SERVE THE POPULATION
EITHER IN NURSING HOMES OR
OTHER CHRONIC CARE FACILITIES
THAT ARE SIGNIFICANTLY MORE
EXPENSIVE THAN IN HOME. SUPPORT
SERVICES. THAT ACTOR YEAH BUT I
ALSO ADD THE BECAUSE I JUST IS
A JOINT FEDERAL STATE PROGRAM
THE STATE ACTUALLY HAS QUITE A
LOT OF- LIMITATIONS ON HOW THEY
CAN CUT IHS US IN VARIOUS WAYS.
THANK YOU. AND THEN- THE
CALTRANS NUMBER. LOOKS ON-
LARGER. BUT A BIZARRE PRIMARILY
DUE TO THE INCREASE REVENUE
FROM THE GAS TAX AND IT'S THE
INCREASING CAPITAL COSTS WERE
FINALLY FIXING ROADS THAT WE
HAVE A FIX FOR DECADES. THAT'S
RIGHT IF YOU LOOK AT THE GRAPH
ON PAGE. SO FOR ME TO GET IT
THE ONE WITH OUR LOCAL. PAGE
THANK YOU SEVEN SEVEN SIX YEAH
THE ONE THAT SAYS MOST A CASA
FOR LOCAL ASSISTANCE AND YOU
SEE TRANSPORTATION AT THE
BOTTOM THERE THOSE THAT
INCREASE AND IN CAPITAL OUTLAY
THAT YOU SEE OVER THE LAST FEW
YEARS WHICH IS DRIVING THE
INCREASE IN THE ANNUAL AVERAGE
GROWTH FOR OUR TRANSPORTATION
PROGRAMS. IS ON SB ONE REVENUES
THAT ARE BEING USED FOR CAPITAL
OUTLAY PROJECTS BRIAN ALSO
MONEY FOR LOCALS WHICH ALSO
GOES TO CAPITOL. RIGHT OF
COURSE THAT THE BLUE RIDGE TO
K. TO IT JUST IT JUST A LEVEL.
INTENDED LOOKING AT I DON'T
KNOW DOCTOR AND THE TALKED
ABOUT EARLIER CARACAL FIRE
RIGHT OBVIOUSLY TO NUMB THAT IS.
ON TO CEMEX OUT OF OUR CONTROL
TO THAT'S EXPENDITURES AS BEING
DRIVEN FROM ALL THE WILDFIRES
THAT'S GOING ON. YEAH AND THEN
THERE'S ALSO- OTHER AB. YOU
KNOW FOR EXAMPLE FIRE RECENTLY.
OR IS UNDERGOING AN INITIATIVE
TO REPLACE ITS HELICOPTER FLEET
SO THERE'S I'M ALSO COSTS
ASSOCIATED WITH. SO I GUESS IN
THE AREAS WHERE WE COULD MAKE A
DIFFERENCE AND HAVE SOME LEVEL
OF SIGNIFICANCE I GUESS WE
COULD DECIDE TO- CUT CSU OR TO
SPEND LESS ON CSU AS WELL AS- A
CHILD CARE AND PRESCHOOL THAT
THAT'S WHERE IT SEEMS LIKE WE
HAVE. SIGNIFICANT AMOUNT OF
DISCRETION THAT AREN'T JUST SHE-
FEDERAL PROGRAMS OR SORT OF
ENTITLEMENT PROGRAMS. YEAH
PROGRAMS ARE THE LEGISLATURE
HAS MORE FLEXIBILITY TO MAKE
REDUCTIONS ARE UNIVERSITIES AS
YOU NOTED CSU UC- EMPLOYEE%
COMPENSATION WHICH IS REALLY
ARE YOU KNOW IN IN. QUITE ALL
OF THESE- CIRCLES BUT YOU KNOW
SIR DISTRIBUTED ACROSS THE
BUDGET AND THEN IN THE COURT
SYSTEM. KIND IN IN THAT
OBVIOUSLY LOT LONG TERM I KNOW
THAT OUR OUR COMMITTEE HAS BEEN
LOOKING AT I'M TRYING TO FIND
LONG TERM SAVINGS WITHIN CDC
ARE OBVIOUSLY THEY'VE BEEN
GROWING AT A LOWER RATE THAN
AVERAGE BUT IT'S STILL A FAIRLY
LARGE BUBBLE AND WE HOPE WITH
THE GOVERNOR'S ANNOUNCEMENT TO
CLOSE ONE PERSON THAT THAT
SENSE- CRITICS AWAY SURE WHERE
WE'RE GOING TO START TO REALIZE
SOME SOME COST SAVINGS FROM.
THAT PRISON AS WELL AS THE
PRISON FROM NEXT YEAR HI IF
ANYTHING ELSE THAT WERE IN
TERMS OF AREAS WHERE WE HAVE.
SOME LEVEL OF FLEXIBLE DELIVERY.
WELL YOU KNOW I MEAN I DON'T
DON'T WANT TO OVERSTATE THE
LEVEL OF INFLEXIBILITY THAT THE
LEGISLATURE HAS CERTAINLY THERE
ARE OPTIONS- FOR EXAMPLE IN THE
PROP NINETY EIGHT AREA WHICH IS
THE LARGEST SINGLE GENERAL FUND
FUNDED PROGRAM- BUT THE
LEGISLATURE CANNOT CHANGE THE
ALLOCATION TO SCHOOLSAND
COMMUNITY COLLEGES- WITH A TWO
THIRDS VOTE SO THE FORMULA IS
CONSTITUTIONALLY DRIVING BUT
THE LEGISLATURE CAN SHE CAN
CHANGE THE ALLOCATION OF TE
TWO THIRDS VOTE SO. I DON'T I
DON'T WANT TO SAY THAT THE
LEGISLATURE HAS ITS HANDS TIED
IN EVERY SINGLE ONE OF THESE
AREAS EXCEPT FOR THOSE FEW
HANDFUL BUT OFTEN OBVIOUSLY
THOSE ARE GOING TO INVOLVED
ACCUSED NUMBER OF TRADE OFFS
AND ALSO- IN SOME CASES LIKE
WITH PROP NINETY EIGHT WOULD
INVOLVE MORE THAN A MAJORITY
VOTE. THANK YOU NOT I THINK
IT'S IMPORTANT- CLARIFICATION
BY THINK IT IS IMPORTANT FLAT
HEAD PUSHING YOU SETTING THE-
SINCE THE SAYS SAYS SAYS ADDING
THE WAY THE FIELD WOULD LOOK IN
ORDER TO MAKE THOSE CHANGES SO.
AGREED COOL GREAT AGAIN THANK.
YEAH I'LL BEGIN JUST THANK YOU
SO MUCH FOR THE YOU KNOW YOUR
YOUR GREAT WORK THIS IS YOU
KNOW ONE OF THEM- BEST
PRESENTATIONS I'VE SEEN ON THE
STATE BUDGET I THINK THE BUDGET
I OFTENTIMES IS. MYSTIFYING NOT
ONLY LEGISLATORS BUT ALSO OUR
BECAUSE I THINK THIS HELPS
CREATE A NICE GRAPH THAT'S
EASILY UNDERSTANDABLE- EASILY
DIGESTIBLE BUT ALSO AS POLICY
MAKE POLICY MAKERS HELP US
FOCUS ON ON CERTAIN ITEMS
BECAUSE I THINK IT IS IMPORTANT
THAT YOU KNOW WE OBVIOUSLY
FOCUS ON THE RIGHT TYPES OF
ITEMS ARE AFTER DOING THE
BUDGET BECAUSE- ON SOME OF
THESE TRADE OFFS ARE FAIRLY
SMALL. THIS WEEK WE FOCUSING ON
ITEMS THAT ARE ARE SMALL AND
REALLY WOULDN'T. MAKE A
SIGNIFICANT IMPACT ON OUR
ABILITY TO BALANCE BUDGET AT
THE SAME TIME I HAVE A LARGE
LOT NUMBER OF LARGER ITEMS
WHICH WE I THINK IN OUR MINDS
KNOW EXISTS BUT IT'S ACTUALLY
VERY HELPFUL TO HAVE A FRAME
THIS WAY- SO THANK YOU SO MUCH
FOR THIS- DISCRETE PRESENTATION.
OF MR FONG. I JUST JUST ENSURE
THAT THE THAT THE CHAIR HAS
SAID AND FOR SAID TO. THE
LEGISLATIVE LEDGES AS
APPROPRIATED FIVE POINT FIVE
BILLION. OF THE TOTAL NINE
POINT NINE BILLS NINE POINT
NINE FIVE BILLIONFROM PENSION
WHEN THEY FOR HIGH SPEED RAIL.
AND THEN THERE'S FOUR BILLION
THAT'S BEEN SPENT AND THEN IN
BALANCE IS TWO POINT TWO FOUR
BILLION. SO JUST SO THAT- THAT
INFORMATION OUT THERE AND IT
JUST THE WILL QUICK QUESTION
FOR- THE BABY BOOMER FINANCE OR
THE LIST OF ANNA'S OFFICE.
THERE WAS A DISCUSSION ON- GAS
TAX REVENUE SB ONE. HAS THERE
BEEN ANY ANALYSIS DONE THE
IMPACT ON THE ON SB ONE OR GAS
TAX FUNDS- WITH THE RECENT
EXECUTIVE ORDER TO MOVE TO-
ALECTRA VEHICLES BY TWENTY
THIRTY FIVE AND THE IMPACT ON-
REVENUE THE- AND- WILL. BE A
THEY DON'T PAY GAS. IF YOU BUY
LIKE A CAR. HELLO SEQUELS
PARDON THE FINANCE- YOU KNOW
BIG THE SP ONE INCLUDED THE
MECHANISM BY ADDING A- A ZERO
EMISSION VEHICLE FEE OF IT GOES
INTO EFFECT THIS YEAR AND- WELL
THAT CURRENTLY AFFECTS A SMALL
NUMBER OF CARS- THE THOUGHT
PROCESS ON THAT IS TO HAVE A
MECHANISM AND AS THE FLEET-
OVERTIME IS REPLACED-
INEVITABLY WITH ELECTRIC CARS.
THAT THAT- THAT FEE WILL THEN
START TO A REPLACE- THE AMOUNT
OF REVENUE THAT WE USE FOR
GASOLINE AND CERTAINLY AS WE
MOVE FORWARD AND AS THE TRENDS-
START TO PUT SORT OF PLAY OUT
WE'RE WE'RE GONNA HAVE TO MAKE
ADJUSTMENTS AND LOOKING TO SEE
YOU KNOW- WHAT WE NEED TO DO IN
THE FUTURE AS MOVE FORWARD THAT.
I THANK YOU FOR. GREAT THANK
YOU. ANY OTHER COMMENTS FROM
THE COMMITTEE. OKAY NOT NOT
SEEING ANY ANY COMMENTS FROM
THE PUBLIC. IN THE- MEMBERS OF
THE PUBLIC WANT TO MAKE ANY
PUBLIC COMMENT. OKAY SEEING
NONE. LET ME JUST THINK L. A.
O. DEPARTMENT OF FINANCE REALLY
APPRECIATE YOU JOINING US AND-
GIVING US YOUR INSIGHT ON THIS
VERY IMPORTANT HEARING AS WE-
GO INTO NEXT YEAR'S BUDGET-
WITH- YES SIR MY UNCERTAINTY
BUT I THINK THIS IS REALLY. I
THINK VERY HELL OF THAT THIS IS
VERY HELPFUL INFORMATION TO. A
PREPARES FOR DELIBERATIONS SO
THANK YOU VERY MUCH- WITH THAT
WE WILL ADJOURN.