IS THIS YOURS? GOOD AFTERNOON.
WELCOME TO BUDGET SUB SIX. WE'RE
GONNA BE TACKLING TWO ISSUES
TODAY ONE DISCUSSING BUDGET
RESERVES AND THE OTHER IS GOING
TO BE DISCUSSING LANGUAGE ACCESS
. WE DO HAVE A PHONE NUMBER SO
PEOPLE CAN MAKE PUBLIC COMMENT
AT THE END OF EACH SEGMENT. ONE
IS THE COLIN NUMBER 8776928957.
THE ACCESS CODE IS 185. OH 1100.
YOU HAVE ANY ISSUES WITH THE
COLUMN NUMBER? PLEASE CALL OUR
ASSEMBLY BUDGET COMMITTEE OFFICE
AT 916. 3192019. WHILST BE
TAKING PUBLIC COMMENT HERE. UM
IN THE IN THE ROOM. LET ME ASK
OUR FIRST PANEL TO PLEASE STEP
FORWARD. THE FIRST ISSUE IS TO
DISCUSS RESERVES, UH, WE HAVE
MADE AS A STATE. INCREDIBLE
PROGRESS ON RESERVES REALLY DO
TOO, TOO. TWO MAJOR DECISIONS.
ONE IS, UM, YOU KNOW, JUST TO
SET THE PICTURE OF WHEN WHAT
THINGS WERE LIKE IN SACRAMENTO.
WHEN I FIRST GOT HERE IN
SEPTEMBER OF THE SORT OF
DECEMBER OF 2012. AT THAT POINT,
WE HAD A NEGATIVE $3.6 BILLION
FUND BALANCE. TODAY. WE HAVE $37
BILLION IN RESERVES. UM OVER
THAT 10 YEAR PERIOD. WHAT WE'VE
DONE OUR TWO MAIN THINGS. ONE IS
WE ASKED THE VOTERS TO CREATE A
RAINY DAY FUND AND WE ALSO ASKED
THE VOTERS TO INCREASE TAXES. SO
WE BROUGHT IN MORE REVENUE AND
WE WERE ABLE TO SAVE MORE
REVENUE, SO BECAUSE OF THAT, I
THINK WE ARE AT A HISTORIC HIGH
IN OUR RESERVES. I THINK THE
CRITICAL QUESTION AS WE ALWAYS
STRUGGLE IS WHAT IS THE ADEQUATE
AMOUNT OF RESERVES, AND I THINK
BOTH BUDGET STAFF AS WELL AS L O
TEAM. REALLY UH AND ASK THE
QUESTION OF WHAT'S THE TRADE OFF
BETWEEN SPENDING ON CERTAIN
THINGS LIKE EDUCATION? FIXING
ROADS DOING DEFERRED MAINTENANCE
VERSUS PUTTING MONEY INTO A BANK
ACCOUNT AND JUST COLLECTING
INTEREST IN SAVING THAT FOR A
RAINY DAY. SO TODAY WE WILL
START OFF WITH OUR PANELISTS.
YOU GOT UH, TWO PANELISTS. ONE
IS AN HOLLINGSHEAD FROM ELIO. SO
THANK YOU FOR COMING AND THEN
LISA MAYOR SINCE KEY FROM
DEPARTMENT OF FINANCE, AND WE'RE
GOING TO ASK THEM TO BEGIN TO
DISCUSS THE ISSUE AND THEN
OBVIOUSLY, UH, TAKING A PUBLIC
COMMENT AS WELL AS MEMBER
QUESTIONS. THANKS SO MUCH, MR
CHAIR AND HOLLINGSHEAD WITH THE
LEGISLATIVE ANALYST'S OFFICE.
I'M GOING TO BE SPEAKING TO YOU
TODAY ABOUT BUDGET RESERVES AND
OUR OFFICES, PERSPECTIVES ON
RESERVES HOW THEY HELP BOLSTER
STATE FISCAL HEALTH AND CAN HELP
THE STATE PREPARE FOR POTENTIAL
RECESSION. YOU SHOULD HAVE A
COPY OF HAND OUT IN FRONT OF YOU
THAT I BELIEVE THE SERGEANTS
WERE ABLE TO PASS OUT. MY
PRESENTATION WILL HAVE FOUR
PARTS. FIRST, I'LL TALK ABOUT
WHAT A BUDGET PROBLEM IS AND HOW
A BUDGET PROBLEM CAN ARISE. AND
I'LL DISCUSS HOW THE STATE
ADDRESSES A BUDGET PROBLEM.
THIRD I'LL SPEAK TO THIS
QUESTION OF HOW MUCH SHOULD THE
STATE SAVE? WHAT IS WHAT IS IT
APPROPRIATE LEVEL OF RESERVE,
GIVING SOME CONTEXT HISTORICALLY
, AND THEN, FINALLY I'LL GIVE
SOME COMMENTS AND OUR OFFICES
KEY TAKEAWAYS FROM FROM THE
PRESENTATION. SO TURNING TO THE
FIRST PAGE ON HOW BUDGET
PROBLEMS HAPPEN IN THE FIRST
PLACE. SO FIRST JUST
METHODOLOGICALLY. A BUDGET
PROBLEM IS WHAT HAPPENS WHEN
REVENUES FOR THE UPCOMING FISCAL
YEAR ARE EXPECTED TO BE LOWER
THAN OR NOT TO BE ABLE TO COVER
EXPENDITURES UNDER CURRENT LAW
AND EXPENDITURES UNDER CURRENT
LAWS, ESSENTIALLY WHAT THE STATE
HAS ALREADY COMMITTED TO IN PAST
BUDGETS, UM AND STATUTE AND OF
COURSE WITH THE VOTERS HAVE
COMMITTED THROUGH THE
CONSTITUTION. BUDGET PROBLEMS
MOST COMMONLY OCCUR AS A RESULT
OF A RECESSION, BUT RECESSIONS
DO NOT ALWAYS LEAD TO BUDGET
PROBLEMS AND BUDGET PROBLEMS DO
NOT ALWAYS COME FROM RECESSIONS.
SO TO ILLUSTRATE THIS POINT, I
HAVE A FIGURE HERE ON PAGE ONE.
SHOWING YOU TAX REVENUE LOSSES
FROM THREE OF THE MOST RECENT
FOR RECESSIONS, AND AS YOU CAN
SEE, THE COVID RECESSION IS NOT
PICTURED. IT'S JUST THE EARLY 19
NINETIES, THE .COM BUST AND THE
GREAT RECESSION AND THE REASON
THE COVID RECESSION ISN'T
PICTURED IS BECAUSE THAT
RECESSION WASN'T ULTIMATELY
ASSOCIATED WITH THE REVENUE
LOSS. EVEN THOUGH THE STATE
THOUGHT THAT THERE WAS GOING TO
BE ONE IN JUNE OF 2020
ULTIMATELY, REVENUES AND ENDED
UP GROWING. VERY SIGNIFICANTLY
OVER THE LAST FEW YEARS AND
DOUBLE DIGIT GROWTH OVER THE
LAST FEW YEARS. AND AS A RESULT
, THERE WAS NO BUDGET PROBLEM IN
THAT YEAR. SO YOU CAN SEE THAT
RECESSIONS EVEN THOUGH THAT ONE
HAD YOU KNOW, WAS ASSOCIATED
WITH SIGNIFICANT ON EMPLOYMENT.
WAS NOT NECESSARILY CORRELATED
WITH REVENUE LOSS. BUT IN OTHER
RECESSIONS IN RECENT HISTORY,
THAT HAS BEEN THE CASE, THERE
HAVE BEEN SIGNIFICANT REVENUE
LOSSES IN THE EARLY 19 NINETIES
. IT WAS ABOUT 35 BILLION IN THE
.COM BUST. IT WAS ABOUT 80
BILLION, AND THEN IN THE GREAT
RECESSION, IT WAS ABOUT 100
BILLION. UM THE FINAL POINT THAT
I WANTED TO MAKE ON THIS PAGE IS
THAT RECESSION RISK TODAY WE DO
SEE AS HEIGHTENED, UM WHETHER OR
NOT THE STATE IS ALREADY
OFFICIALLY IN A RECESSION OR
NOT, ACCORDING TO OFFICIAL
STATISTICS, UM, IS NOT
NECESSARILY THE IMPORTANT
FEATURE FOR THE STATE'S BUDGET
CONDITION. AS I JUST POINTED OUT
A RECESSION MAY OR MAY NOT BE
ASSOCIATED WITH REVENUE LOSSES.
BUT THE CONDITIONS THAT WE'RE
SEEING TODAY THE MACROECONOMIC
CONDITIONS GENERALLY HAVE BEEN
ASSOCIATED WITH THE COMING
RECESSION IN THE PAST. SO THAT
INCLUDES, FOR EXAMPLE, UM UH,
DECLINING CONSUMER SENTIMENT. UH
RISING MORTGAGE RATES, COUPLED
WITH DECLINES IN HOME SALES AND
THEN, OF COURSE, HIGHER
INFLATION, COUPLED WITH TIGHT
LABOR MARKETS, AND IN THE PAST,
WHEN WE'VE SEEN THESE ECONOMIC
FACTORS TOGETHER, SORT OF THE
CONFLUENCE OF THESE FACTORS. IT
HAS SIGNAL NOT JUST A RECESSION
, BUT A RECESSION ASSOCIATED
WITH REVENUE LOSSES. TURNING TO
THE NEXT PAGE. UM SO HERE I
WANTED TO TALK A LITTLE BIT
ABOUT HOW THE STATE ADDRESSES A
BUDGET PROBLEM. BECAUSE OF
COURSE, AND YOU KNOW, THE REASON
THAT WE'RE HERE TODAY IS TO TALK
ABOUT RESERVES AND OF COURSE,
RESERVES ARE KEY TOOL THAT THE
STATE HAS TO PREPARE FOR A
BUDGET PROBLEM, BUT IT'S NOT THE
ONLY TOOL AND YOU CAN THINK
ABOUT THE STATE'S PREPARATION
FOR A BUDGET PROBLEM AND KIND OF
TWO CATEGORIES. ONE IS ACTIONS
THAT THE STATE CAN TAKE BEFORE A
BUDGET PROBLEM EXISTS, AND THEN
THE SECOND OR ACTIONS THAT THE
STATE CAN TAKE WHILE THE BUDGET
PROBLEM IS ONGOING. AND SO, OF
COURSE, THE TOOLS TO PREPARE
FIRST AND FOREMOST, INCLUDE
RESERVES AND WE'LL TALK A BIT
MORE ABOUT THAT SUBSEQUENTLY.
SECOND, THE STATE CAN ALSO PAY
DOWN DEBT. AND THE REASON THAT
THIS ISN'T AN ADVANTAGE IS THAT
WON THE STATE PAYS DOWN DEBT,
ESSENTIALLY LOWERS THE SPENDING
BASE AND GIVES THE LEGISLATURE
MORE FLEXIBILITY FOR FUTURE
BUDGETS, UM, TO BE ABLE TO SPEND
ON DIFFERENT PURPOSES. THE STATE
HAS PAID DOWN PRETTY SIGNIFICANT
AMOUNTS OF DEATHS IN RECENT
YEARS, INCLUDING WHAT'S BEEN
REQUIRED UNDER THE RULES OF
PROPOSITION TWO, BUT THEN ALSO
BILLIONS OF DOLLARS IN
ADDITIONAL PAYMENTS, UM, ON AN
OPTIONAL BASIS TOWARDS THE
STATE'S RETIREMENT SYSTEMS
GENERAL FUND LOANS TO THE
SPECIAL SPECIAL FINALS. EXCUSE
ME TO THE GENERAL FUND AS WELL
AS, UM THE CONVERSION OF LEASE
REVENUE BONDS TO CASH, WHICH
GIVES THE STATE A BIT MORE
FLEXIBILITY IN THE FUTURE. THE C
CAN ALSO PLAN FOR MULTIYEAR
STRUCTURAL BALANCE. THIS IS A
POINT THAT SOUNDS A BIT ACADEMIC
, BUT IT ACTUALLY HAS REAL
POSITIVE CONSEQUENCES FOR THE
BUDGET. SO WHEN THE STATE IS
EXPECTING HOW MUCH REVENUE IT'S
GOING TO RECEIVE OVER THE COMING
YEARS. IF IT DOESN'T PLAN TO
SPEND ALL OF THAT REVENUE, THEN
THERE'S ESSENTIALLY A BIT OF A
CUSHION BETWEEN WHAT THE
EXPECTATION IS AND REALITY IF WE
HAVE REVENUES DECLINE, AND THAT
ALLOWS THE STATEJUST A LITTLE
BIT OF FLEXIBILITY TO RESPOND TO
A BUDGET PROBLEM, UM, THAT COULD
ARISE IN THE FUTURE. AND THEN,
FINALLY, OF COURSE, THE STATE
CAN SPEND ON A ONE TIME BASIS
INSTEAD OF AN ONGOING BASIS, AND
RECENT BUDGETS INDEED HAVE DONE
THIS, SO THE 22 23 BUDGET SPENDS
ABOUT 13.5 BILLION ON A ONE
TIME BASIS FOR 21 22 $22 BILLION
ON A ONE TIME OR TEMPORARY BASIS
FOR 22 23. THE ADVANTAGE OF THIS
IS THAT WHEN THE STATE REACHES
THAT FUTURE YEAR WHERE THE MONEY
IS EXPECTED TO EXPIRE, THAT'S
SPENDING THAT THAT TRIGGERS OFF
SPENDING THE DECLINES AND MAKES
THE BUDGET A LITTLE BIT EASIER
TO BALANCE IN THOSE FUTURE
YEARS. SO THEN, IF THE STATE
REACHES A RECESSION REACHES A
BUDGET PROBLEM, AND THERE IS
STILL AN OUTSTANDING DEFICIT
THAT THE STATE HAS TO ADDRESS
THAT THESE TOOLS HAVEN'T BEEN
SUFFICIENT. THERE ARE
ESSENTIALLY THREE CATEGORIES OF
ACTIONS THAT THE STATE CAN TAKE.
THE FIRST IS, OF COURSE, IT CAN
REDUCE SPENDING. THE SECOND IS
THAT IT CAN INCREASE REVENUES. I
DON'T THINK THESE NEED A LOT OF
EXPLANATION, BUT THEN THE THIRD
IS THAT IT CAN SHIFT COSTS. AND
THIS CAN LOOK A LOT LIKE
BORROWING. THERE'S INTERNAL
BORROWING THE STATE CAN DO FROM
SPECIAL FUNDS SAY TO THE GENERAL
FUND. THERE'S ALSO COST CHEFS
LIKE DEFERRALS THE STATE AS
DONE IN THE PASSWORDS SHIFTED
COSTS FROM JUNE TO JULY AND
ESSENTIALLY ACHIEVED ONE YEAR OF
SAVINGS. BUT THEN THE STATE
CARRIES THAT LIABILITY FORWARD
UNTIL IT'S REPAID. THE STATE
ACTUALLY RECENTLY. WELL A COUPLE
OF YEARS AGO REPAID, UM, SOME
DEFERRALS THAT WERE OUTSTANDING
FROM THE GREAT RECESSION.
TURNING TO THE NEXT PAGE. SO
TURNING TO THE MAIN, YOU KNOW,
MEAT OF THE PRESENTATION THIS
QUESTION OF HOW MUCH OF THE
STATE SAVE IN RESERVES.
UNFORTUNATELY THERE IS NOT, YOU
KNOW, ONE CONCRETE OR SPECIFIC
ANSWER. WE CAN GIVE TO THIS
QUESTION. IT'S REALLY ULTIMATELY
A LEGISLATIVE POLICY CHOICE AND
THE REASON THAT WE SAY THAT IS
BECAUSE IT INVOLVES TRADE OFFS,
AND IT INVOLVES SUBJECTIVE
JUDGMENTS, AND I CAN TALK A
LITTLE BIT ABOUT WHAT SOME OF
THOSE TRADE OFFS AND JUDGMENTS
ARE. SO THE FIRST AND THE MOST
IMPORTANT ONE PROBABLY. IS THAT
A DOLLAR OF RESERVES SAFE TODAY
IS ULTIMATELY A DOLLAR THAT THE
STATE CAN'T SPEND TODAY OR
RETURN TO TAXPAYERS, BUT IS
AVAILABLE FOR THE STATE TO SPEND
IN SOME FUTURE, SOME FUTURE DATE
. AND SO, OF COURSE, FAILING TO
SPEND THAT DOLLAR TODAY DOES
INVOLVE SOME LEVEL OF
OPPORTUNITY COST AND THE
LEGISLATURE'S PREFERENCE FOR
THOSE TWO THINGS RIGHT. THE
DOLLAR TODAY VERSUS THE DOLLAR
IN THE FUTURE WILL DICTATE
WHETHER IT WOULD PREFER TO SAVE
MONEY ON HOW MUCH MONEY TO SAVE
A SECOND IMPORTANT CONSIDERATION
IS THE TIMING, SIZE AND DURATION
OF THE NEXT RECESSION. NO ONE
CAN PREDICT WITH ANY KIND OF
ACCURACY. HOW BIG THE NEXT
RECESSION WILL BE. HOW LONG IT
WILL LAST. OUR OFFICE CERTAINLY
CAN'T AND WE RECOGNIZE THE
LEGISLATURE CAN'T EITHER, BUT
ULTIMATELY, THE QUESTION FOR THE
MEMBERS OF THE LEGISLATURE IS
WHAT KIND OF RECESSION DO YOU
WANT TO PREPARE FOR A LARGE
EXTENUATING ONE OR A MUCH
SMALLER ONE? AND PREPARING FOR A
LARGER RECESSION? WOULD OF
COURSE, MEAN SETTING ASIDE MORE
IN RESERVE? FINALLY AN IMPORTANT
TRADE OFF IS WHAT ACTIONS THE
LEGISLATURE IS WILLING TO TAKE
IN THE NEXT RECESSION IN ORDER
TO BALANCE THE BUDGET, SO IF THE
LEGISLATURE IS WILLING TO DO YOU
KNOW THOSE COST REDUCTIONS THAT
SPENDING REDUCTIONS, TAX REVENUE
INCREASES SHIFTS AND COSTS AS
HAD BEEN DONE IN PREVIOUS
RECESSIONS, THEN LESS RESERVES
ARE NEEDED. BUT CONVERSELY, IF
THE LEGISLATURE WANTED TO BE
ABLE TO PAY FOR THE FULL COST OF
THE DEFICITS ARE CLOSE TO THE
FULL COST OF THE DEFICITS WITH
RESERVES AND MUCH MORE THAN MUCH
MORE IN RESERVES WOULD BE
NECESSARY. WITH ALL OF THAT
CONTEXT, I WANT TO TALK A LITTLE
BIT ABOUT WHERE WE ARE
HISTORICALLY, UH OR WHERE WE ARE
TODAY VIS A VIS WHERE HOW WE
HAVE BEEN HISTORICALLY. SO THE
FIGURE ON PAGE THREE IS SHOWING
YOU RESERVES FROM THE EARLY 19
EIGHTIES. UNTIL TODAY, THE 22 23
ENACTED BUDGET. AND AS YOU CAN
SEE, RESERVES TODAY ARE REALLY
AT HISTORIC HIGHS COMPARED TO
THE EIGHTIES NINETIES AND TWO
THOUSANDS AND A DRAW YOUR
ATTENTION SPECIFICALLY TO THE
BLUE BARS, WHICH ARE THE ENACTED
LEVEL OF RESERVES OR THE PLANNED
LEVEL OF RESERVES. UM AND AS YOU
CAN SEE, YOU KNOW, THROUGHOUT
THE EIGHTIES NINETIES AND TWO
THOUSANDS, THE STATE REALLY HAD
VERY LOW LEVELS OF RESERVES, AND
IT WAS REALLY WITH THE PASSAGE
OF PROPOSITION TWO AND 2014 THAT
STATE RESERVES HAVE INCREASED.
AS A SHARE OF THE BUDGET,
HOWEVER. STATE RESERVES ARE NOT
AT THEIR ALL TIME HIGH. UM AS
YOU CAN SEE, THE 2019 20 LEVEL
WAS A LITTLE BIT HIGHER THAN IT
IS TODAY. AND I'M GOING TO TURN
TO THE NEXT PAGE TO EXPLAIN WHY
THAT IS. SO THIS GRAPHIC TO
UNDERSTAND THIS GRAPHIC. I NEED
TO EXPLAIN KIND OF THE TWO MAIN
DIFFERENT TYPES OF
CONSTITUTIONAL RESERVES THAT THE
STATE HAS ONE ON THE GENERAL
PURPOSE SIDE. THE RESERVES THAT
ARE AVAILABLE FOR ANY PURPOSE IS
THE BUDGET STABILIZATION ACCOUNT
, AND THIS IS THE STATE'S MAIN
RESERVE. IT'S THE ONE THAT'S
GOVERNED BY THE RULES OF
PROPOSITION TWO. ON IN ADDITION
TO THIS GENERAL PURPOSE ACCOUNT
, THE STATE HAS A SCHOOL RESERVE
CALLED THE PUBLIC SCHOOL SYSTEM
STABILIZATION ACCOUNT OR THE
PREP 98 RESERVE. AND THIS
RESERVE IS AVAILABLE ONLY FOR
SCHOOLS AND COMMUNITY COLLEGE
SPENDING. IT ALL ALSO GOVERNED
BY THE RULES OF PROPOSITION TWO,
SO IT'S ALSO CONSIDERED A
CONSTITUTIONAL RESERVE. WE THINK
OF THESE TWO RESERVES SEPARATELY
. AND THE REASON FOR THAT IS NOT
NECESSARILY BECAUSE ONE IS
GENERAL PURPOSE, AND ONE IS FOR
SCHOOLS, BUT RATHER THAN BECAUSE
THE SCHOOL RESERVE IS ONLY
AVAILABLE TO SUPPLEMENT AND NOT
SUPPLANT THE MINIMUM GUARANTEE,
SO IT CAN'T BE USED TO HELP THE
STATE MEET ITS CONSTITUTIONAL
REQUIREMENTS. IT CAN ONLY BE
USED ON TOP OF THOSE
CONSTITUTIONAL REQUIREMENTS. AND
THAT DISTINCTION IS IMPORTANT
BECAUSE WHILE IT ABSOLUTELY IS
IMPORTANT TO PROTECT SCHOOL
SPENDING IN A RECESSION, IT
WOULDN'T HELP THE STATE SOLVE
THE BUDGET PROBLEM IN A
RECESSION. SO AS YOU CAN SEE
FROM THE FIGURE GENERAL PURPOSE
RESERVES INCREASED BETWEEN 2014
15 AND 2019 20. THEY DECLINED IN
2020 21 WHEN THE STATE TOOK OUT
A $7.8 BILLION WITHDRAWAL IN
RESPONSE TO WHAT IT BELIEVED AT
THE TIME WAS A $54 BILLION
BUDGET PROBLEM AS A RESULT OF
THE COVID PANDEMIC, AND THEN
SINCE THEN, RESERVES HAVE BEEN
REBOUNDING. AND IN DOLLAR TERMS
. THEY ARE INDEED MUCH HIGHER
TODAY OR NOT MUCH HIGHER, BUT
THEY ARE HIGHER TODAY THAN THEY
WERE IN 2019 20, BUT IN
PERCENTAGE TERMS ARE STILL A BIT
BELOW THAT PRE PANDEMIC LEVEL.
AND THE REASON FOR THIS IS THAT
ESSENTIALLY REVENUE GROWTH HAS
OUTPACED GROWTH AND RESERVES. ON
THE OTHER HAND ON THE SCHOOL
RESERVE HAS BEEN GROWING OVER
THE LAST FEW YEARS, AND IT'S NOW
IT'S HISTORIC HIGH AND THAT IS
CONSISTENT WITH SIGNIFICANT
GROWTH IN THE MINIMUM GUARANTEE
THAT HAS HAPPENED OVER THE LAST
COUPLE OF YEARS. SO TURNING TO
THE LAST PAGE. I JUST WANTED TO
GIVE SOME BRIEF KIND OF
HIGHLIGHTS OF OUR TAKEAWAYS. THE
FIRST IS THAT WE DO THINK THAT
THE RECESSION RISK IS HEIGHTENED
NOT JUST FROM A TECHNICAL
PERSPECTIVE, BUT ALSO THAT
THERE'S A HEIGHTENED RISK OF A
BUDGET PROBLEM ASSOCIATED WITH A
RECESSION IN THE COMING COUPLE
OF YEARS, AND THEREFORE YOU KNOW
A CONVERSATION ABOUT RESERVES
AND THINKING ABOUT THE STATE'S
LEVEL OF PREPARATION FOR COMING
RECESSION MAKES A LOT OF SENSE.
WE NOTE THAT THE STATE IS MUCH
BETTER PREPARED FOR RECESSION
TODAY THAN IT WAS BEFORE THE
.COM BUST OR BEFORE THE GREAT
RECESSION. THIS IS NOT ONLY
BECAUSE OF RESERVES BUT ALSO
BECAUSE THE STATE HAS REPAID
BILLIONS OF DOLLARS IN DEBTS.
RECENT BUDGETS HAVE BEEN FOCUSED
ON ONE TIME RATHER THAN ONGOING
SPENDING, AND THE STATE HAS
UNDONE A LOT OF THE COST SHIPS
THAT WERE OUTSTANDING FROM THE
GREAT RECESSION. THAT SAID. UM
THE STATE BUDGET IS NOT QUITE AS
WELL PREPARED OR DOESN'T HAVE
QUITE AS MUCH IN RESERVES TODAY
AS A SHARE OF THE BUDGET AS IT
DID IN 2019 20. THAT'S DESPITE
REALLY HISTORIC REVENUE GROWTH
AND VERY SIGNIFICANT INCREASES
IN RESOURCES AVAILABLE OVER THE
LAST FEW YEARS. BUT THEN,
FINALLY, THAT THE OPTIMAL LEVEL
OF RESERVE IS REALLY ULTIMATELY
A POLICY CHOICE. AND IT DEPENDS
ON SUBJECTIVE TRADE OFFS RATHER
THAN ANALYSIS AND DATA HAPPY TO
TAKE ANY QUESTIONS. THANK YOU.
THANK YOU. WE'LL GO WITH
FINANCE. GOOD AFTERNOON, LISA
FOR THE DEPARTMENT OF FINANCE. I
DIDN'T HAVE ANYTHING TO ADD TO
ANNE'S PRESENTATION, BUT BE
HAPPY TO ANSWER QUESTIONS FOR
YOU. GREAT. THANK YOU. ANY
QUESTIONS FROM THE COMMITTEE? MR
FONG. JUST A FEW QUESTIONS. UH
APPRECIATE THE CHAIR CALLING
THIS, UH, THIS INFORMATION
HEARING YOU MENTIONED, UM, THE
ELIO THAT THE $7.8 BILLION
WITHDRAW. UM, CAN YOU YOU FLESH
OUT WHAT'S HAPPENED WITH THAT,
AS I MEAN, THAT WAS WITHDRAWN.
HAS THAT BEEN PAID BACK? UM SO
THERE WAS A $7.8 BILLION
WITHDRAWAL IN 2020 21. UM AND IN
THAT YEAR, THE STATE ALSO
SUSPENDED WHAT WAS CONSIDERED
THE REQUIRED DEPOSIT FOR THAT
YEAR IN 21, 22 22 23, THE STATE
HAS BEEN MAKING ITS
CONSTITUTIONALLY REQUIRED
DEPOSITS, BUT IT DID NOT
ESSENTIALLY GO BACK AND REVISIT
THAT ACTION. THAT ACTION STOOD
IN SUBSEQUENT BUDGETS. UM THAT
SAID THE AMOUNT OF MONEY THAT
HAS GONE BACK INTO THE RESERVES
TO THE SORT OF UM, REQUIRED
AMOUNT HAS PUSH THE RESERVE BACK
UP TO THE 10% OF GENERAL FUND
REVENUES LEVEL THAT TRIGGERS AN
INFRASTRUCTURE SPENDING
REQUIREMENT ESSENTIALLY, IS THE
MAXIMUM AMOUNT OF CONSTITUTIONAL
RESERVES THAT THAT, UH, THAT THE
B S A CAN HAVE SUGGEST TO
CLARIFY WE, THE BUDGETS HAVE PUT
HAVE HAVE GONE UP TO THE
CONSTITUTION CONSTITUTION
REQUIRED AMOUNT, BUT THAT'S 7.8
, UH, BILLION THAT WAS BORROWED
, HAS TECHNICALLY NOT BEEN
REPAID. RIGHT THE WITHDRAWAL HAS
NOT BEEN RESTORED. THE
LEGISLATURE COULD DO THAT WITH
OPTIONAL DEPOSITS. IT COULDN'T
NECESSARILY THERE. THERE WILL BE
NO MORE. AT THIS POINT, THE
LEGISLATURE CAN'T PUT ANY MORE
MONEY IN THE FUND ON A
CONSTITUTIONAL BASIS, BUT BUT
YOU'RE RIGHT. BUT FROM AN
OPTIONAL BASIS, THE LEGISLATURE
DID NOT RESTORE THAT ACTION. SO
THAT'S MY NEXT POINT. NOTHING
STOPS THE LEGISLATURE FROM
PUTTING MORE IN ON TOP OF THE
CONSTITUTIONAL REQUIREMENT.
THAT'S CORRECT LEGISLATIVE
DECISION THAT WE COULD DO.
THAT'S CORRECT. OKAY UM MY
SECOND QUESTION IS CERTAINLY
INFLATION IS IMPACTING EVERYBODY
. CERTAINLY IT IMPACTS THE STATE
BUDGET AS WELL. UH AND STATE
PROGRAMS. HOW DOES THE INFLATION
PROJECTIONS OR THE YOUR
ASSUMPTIONS IMPACT THE AMOUNT
THAT SHOULD BE IN RESERVES? IT'S
A GREAT QUESTION. UM SO IN
FUTURE BUDGETS, YOU KNOW WE IF
INFLATION IS CONTINUED TO BE
ELEVATED OVER THE COMING YEARS,
WE CERTAINLY EXPECT TO SEE
PROGRAM COSTS INCREASE EITHER
DIRECTLY AS A RESULT OF KIND OF
EXISTING ADMINISTRATIVE. UM UM,
AUTHORITY OR INDIRECTLY THROUGH
THE LEGISLATORS. LEGISLATIVE
DECISION MAKING, AS LEGISLATORS
SAYS UH, YOU KNOW, WE SEE THESE
PROGRAM COSTS ARE INCREASING,
AND WE NEED TO INCREASE COST
COMMENSURATELY. AND SO FROM THAT
PERSPECTIVE, YOU KNOW,
PARTICULARLY IF WE ENDED UP IN A
SITUATION WHERE THERE WAS
HEIGHTENED INFLATION, COUPLED
WITH AN ECONOMIC SLOWDOWN, IT
COULD INDICATE THAT MORE
RESERVES WOULD BE NEEDED JUST TO
MAINTAIN THE KIND OF CURRENT
SERVICE LEVEL THAT THE THAT THE
STATE ALREADY HAS. I THINK
THAT'S WHAT YOU KIND OF
HIGHLIGHTED IN THE PREVIOUS
REPORT THAT THE INFLATION WOULD
DOESN'T GO AS FAR AS SO, UM, SO
AS PROGRAM COSTS GO UP THE
AMOUNT OF MONEY THAT WE WOULD
HAVE TO PUT INTO PROGRAMS BUT
ALSO INCREASE AS WELL. UM SO
THEN FROM UH FROM AND AS YOU
INDICATED FROM A RESERVE SIDE,
THEN WE WOULD BE NOT ONLY JUST
PREPARING FOR A LARGER
RECESSION, WE'D ALSO BE
PREPARING FOR, UM, THE
INFLATIONARY IMPACT OF ON THE
ECONOMY. YEAH. I MEAN, IT DOES,
OF COURSE, DEPEND ON LIKE THE
SPECIFIC CONTOURS OF THE
RECESSION AND WHAT IT LOOKED
LIKE RIGHT? SO IF THE RECESSION
WAS COUPLED WITH A REDUCTION IN
INFLATION, AND THAT MIGHT NOT BE
THE CASE IF THE RECESSION WAS
COUPLED WITH HEIGHTENED
INFLATION, AND THAT COULD
CERTAINLY BE THE CASE. IT WOULD
ALSO DEPEND ON THE IMPACTS OF
INFLATION ON REVENUES AS WELL
RIGHT SO TO THE EXTENT THAT
INFLATION RESULTS IN HIGHER
WAGES AND UM, HIGHER REVENUES.
THEREFORE IT'S POSSIBLE THAT
THAT OFFSET SOME OF THAT, UM
SOME OF THE SORT OF NEGATIVE
IMPACT ON THE SPENDING SIDE. SO
UH, UNFORTUNATELY, I HAVE TO SAY
THE ANSWER DEPENDS. NAME IT. LET
ME ASK THE DEPARTMENT OF FINANCE
AND DO YOU FACTOR IN AN
INFLATION PROJECTION INTO YOUR
RESERVE? UM. PROJECTIONS OR OUR
RECOMMENDATIONS. RIGHT NOW WE'RE
LOOKING AT A 6 TO 9% INFLATION
DEPENDING ON WHAT YOU USE AS
YOUR ADJUSTER. YES SO IN THE
2022 BUDGET IN THE MULTI YEAR
PROJECTIONS, WE DID FACTOR INTO
INFLATION. WE DIDN'T FACTOR IN
INFLATION AMOUNT BUILT IN WHICH
REDUCED THE SFTU SO YES, WE DID
TAKE THAT INTO CONSIDERATION.
UNFORTUNATELY I DO NOT HAVE
THOSE AMOUNTS WITH YOU. BUT I
CAN GET THAT BACK. IF YOU'RE
WHAT DO YOU DO? YOU KNOW THE
INFLATION AMOUNT THAT YOU PUT
INTO IT. I APOLOGIZE. I DO NOT.
BUT I CAN GET THAT TO YOU. SEEMS
TO BE AN ODD ITEM THAT YOU DON'T
KNOW. BUT YES, IF YOU COULD
PROVIDE ME THEN FROM THE
INFORMATION, I MEAN, IS IT I
MEAN, I KNOW IN THE OUT YEARS.
WELL, I KNOW IN THE OUT YOURS IS
IN THE BILLIONS OF DOLLARS
RANGE. I DO NOT REMEMBER WHAT
THE BUDGET YEAR AMOUNT WAS. AND
OKAY. IF YOU COULD PROVIDE ME
THAT, THAT THAT THAT RATE AND
AMOUNT THAT WOULD BE, UM, THAT
WOULD BE GREAT IN TERMS OF BACK
TO THE ELIO IN TERMS OF LIKE
WHAT SHOULD BE CAUGHT OR WHAT OR
HOW WE HOW WE ADDRESS, UM,
POTENTIAL IMPACT OF RECESSION. I
MEAN, THAT'S CERTAINLY ASSUMES
WE UNDERSTAND. UM YOU KNOW, THE
REVENUE SIDE AND HOW THAT GROWS
VERSUS THE EXPENDITURE SIDE. UM. HAVE YOU DONE AN ANALYSIS IN
TERMS OF WHAT THE ONGOING
SPENDING HAD? IT WILL BE GOING
OUT AND IN TERMS OF WHAT HAS
BEEN DONE IN THE MOST RECENT
BUDGET UM YES. THE MOST RECENT
BUDGET ALLOCATED ABOUT $2.9
BILLION TO ONGOING SPENDING IN
22 23. IT RISES TO ABOUT $7.6
BILLION BY 25 26 THEN IN TERMS
OF THE REVENUE PROJECTIONS. HOW
HOW DO YOU? HOW DOES THAT FACTOR
IN? TOGETHER. UM WELL, YOU KNOW
THE WAY THAT WE USUALLY LOOK AT
THESE THINGS AS WE LOOK AT KIND
OF OUR REVENUE PROJECTIONS AND
ARE SPENDING PROJECTIONS
HOLISTICALLY AND THEN WE PUT THE
TWO TOGETHER AND WE SAY, WELL,
WHAT IS THE BUDGET BOTTOM LINES
CONDITION OVER THE COMING FISCAL
YEARS. WE DO THAT UNDER, YOU
KNOW, MAIN ECONOMIC SCENARIO,
AND THEN SOMETIMES WE ALSO LOOK
AT ALTERNATIVE ECONOMIC
SCENARIOS. UM AND WE DO THAT,
BASICALLY AT TWO POINTS IN TIME
IN NOVEMBER AND IN MAY AND THEN
IN BETWEEN, THOSE WERE KIND OF
LOOKING AT EACH THING IN
ISOLATION, SO IT'S SORT OF
DIFFICULT TO GIVE YOU SITTING
HERE IN AUGUST, SORT OF
DIFFICULT TO GIVE YOU LIKE A
BUDGET BOTTOM LINE PROJECTION
WITHOUT HAVING YOU KNOW THAT
MOST RECENT FORECAST SO IF I
COULD JUST GO, AND MAYBE THIS IS
MORE OF A QUESTION THE
DEPARTMENT OF FINANCE, BUT IF I
IF I WERE TO LOOK AT MULTI YEAR
FORECAST THAT THAT WAS PROVIDED,
AND WHAT ARE THE ECONOMIC
ASSUMPTIONS IN THIS FORECAST? I
BELIEVE YOU HAVE THE DEPARTMENT
OF FINANCE DEPARTMENT FINDING.
MAYBE THAT'S A QUESTION WOULD
PROVIDE THE I'LL ALSO HAVE TO
GET BACK TO YOU ON THOSE. I
DIDN'T BRING THE ECONOMIC
FACTORS THAT WE'RE IN. BUT UM, I
BELIEVE THEY ARE POSTED ON OUR
PUBLIC WEBSITE. OKAY IF YOU
COULD PROVIDE THAT THAT'D BE
IMPORTANT. I MEAN, CERTAINLY ANY
MODEL OR ANY FORECAST IS ONLY AS
GOOD AS THE ASSUMPTIONS THAT GO
INTO IT AND SO UNDERSTANDING, UM
THE OUT YEARS MAY MAY OR MAY NOT
BE MORE INACCURATE BECAUSE WE'RE
JUST WE'RE JUST BASIC. WE'RE
JUST TRYING TO. WE'RE MAKING A
LOT OF ASSUMPTIONS AND PROBABLY
AS WE WERE IN AS WE'RE CLOSER TO
THE CURRENT BUDGET YEAR, AND
CERTAINLY WE HAVE MORE REAL
DATA. UM YOU KNOW FROM A FROM A
WE? WE ALL KNOW THE VOLATILITY
OF OUR REVENUES. AND UM, YOU
KNOW, IN THE IN THE CURRENT
ECONOMIC SITUATION THAT WE'RE IN
, I MEAN, WHAT WOULD YOUR
RECOMMENDATION BE? IN TERMS OF A
LEVEL OF RESERVE. YEAH SO I WILL
HAVE TO SAY WE SPECIFICALLY DO
AVOID GIVING A SPECIFIC
RECOMMENDATION ON OVER WHATEVER
RESERVE LEVEL SHOULD BE GIVEN.
YOU KNOW, THE SUBJECTIVE
JUDGMENTS AND, UM, TRADE OFFS
THAT I DESCRIBED EARLIER. USE
OKAY, STIPULATING THAT I MEAN,
YOU CERTAINLY HAVE HIGHLIGHTED
THE WHAT? THE QUESTION OF WHAT?
TYPE OF RECESSION ARE WE TRYING
TO PREPARE FOR SO AND YOU GUYS
PROBABLY OPERATE MORE IN RANGES
, SO IF THERE WERE A VERY SEVERE
RECEPTION THEN ARE WE PREPARED
FOR THAT WITH THEIR CURRENT
RESERVES VERSUS IF IT WERE A
MINOR ONE? RIGHT? YEAH, I SEE.
IT'S I'M SORRY. IT IS VERY
DIFFICULT TO ANSWER,
PARTICULARLY BECAUSE AT THIS
POINT UM YOU KNOW, WE ARE AS I
MENTIONED BEFORE, KIND OF IN
BETWEEN FORECASTS, RIGHT? WE
HAVE WHAT'S BEEN A FEW MONTHS
SINCE WE DID OUR LAST FORECAST,
AND IT'S A COUPLE OF MONTHS
BEFORE WE'LL DO OUR NEXT ONE.
AND IN THOSE THAT'S WHEN WE TEND
TO GIVE MORE OF THOSE
ASSESSMENTS OF YOU KNOW WHAT
LEVEL OF RECESSION THAT ARE WE
PREPARED FOR, UM, IN PAST, YOU
KNOW, IN PAST OUTLOOKS, WE HAVE
FOUND THAT THE STATE IS PREPARED
FOR A MODERATE RECESSION. UM AND
YOU KNOW, I WOULD EXPECT THAT TO
BE CONSISTENT WITH THE PICTURE
TODAY. GIVEN THAT YOU KNOW, THE
RESERVE LEVEL IS CONSISTENT WITH
WHAT IT HAS BEEN IN THE PAST.
GIVEN THOSE FINDINGS, UM, BUT
THAT SAID, YOU KNOW, IT IS
REALLY DIFFICULT TO ANSWER AT
THIS POINT. IF, UM. LET ME JUST
ASK THIS QUESTION THEN, AND THIS
IS NOT TO GO OFF ON A TANGENT,
BUT THE CELL HAS NOT BEEN
BROUGHT UP THIS JUST
APPROPRIATIONS LIMIT. HOW DOES
HOW DOES THAT DISCUSSION OR THAT
POLICY ISSUE AFFECT THE RESERVE.
UM DISCUSSION. YES SO OUR OFFICE
DOES SEE THE CELL. UM CONSTRAINT
AS BEING AN ADDITIONAL REASON
FOR THE LEGISLATURE TO CONSIDER
PUTTING ASIDE MORE MONEY IN
RESERVES. UM AND THE REASON FOR
THAT IS BECAUSE ESSENTIALLY WHAT
WE HAVE FOUND THROUGH OUR
ANALYSIS THAT THE STATE
SITUATION COULD BE IS THAT IT
FACES BOTH A DOWNSIDE RISK IN
TERMS OF RECESSION WHERE
RECESSION WOULD LEAD TO A BUDGET
PROBLEM IN THE WAYS THAT I
DESCRIBED IN THIS PRESENTATION.
BUT ALSO A QUOTE UNQUOTE UPSIDE
RISK IN THAT IF REVENUES
CONTINUE TO GROW AS QUICKLY AS
THEY HAVE BEEN, OR EVEN NOT
NECESSARILY AS QUICKLY BUT
CONTINUE TO GROW FASTER THAN THE
LIMIT ITSELF IS GROWING, AND THE
STATE WILL ALSO FACE BUDGET
CONSTRAINTS BECAUSE IT HAS TO
DEVOTE AND INCREASING SHARE OF
ITS RESOURCES AVAILABLE TO
MEETING THE CELL REQUIREMENTS.
AND THAT THAT COULD ALSO LEAD TO
A BUDGET PROBLEM. SORT OF,
PARADOXICALLY. UM SO WE HAVE
SAID IN RECENT ANALYSES THAT WE
THINK THAT THAT ALSO, YOU KNOW
SHOULD BE A CONSIDERATION FOR
THE LEGISLATURE AS IT'S THINKING
ABOUT ITS RESERVE LEVEL. SO IF I
WERE DISCIPLINE FI IT THAN IF,
IF THE SALLE IMPLICATIONS WOULD
WOULD TEND TO LEAD TO A LARGER
RESERVE 222. TO CREATE SOME TYPE
OF SAFETY NET IN CASE IN CASE OF
PROGRAM NEEDED TO BE, UM ENHANCE
OR MAINTAINED. YES THAT'S RIGHT
, SO LAYING OUT THE DIFFERENT
SCENARIOS IF WE WANTED TO
PREPARE FOR MORE SEVERE
RECESSION, CERTAINLY THE
RESERVES WOULD HAVE THE LARGER
IF WOULD SELL IMPLICATIONS TO
RESERVE WOULD TEND TO LEAD TO A
TO A CONCLUSION THAT THE
RESERVES WOULD HAVE TO BE LARGER
. AND IF INFLATION WERE TO BE
PERSISTENT OVER A LONGER PERIOD
TIME THAT WOULD IMPACT THE
OPERATIONS OF STATE PROGRAMS. TO
MAINTAIN THAT WE WOULD PROBABLY
WANT TO HAVE A LARGER RESERVE.
THAT'S RIGHT. BUT ASSUMING THAT
THE LEGISLATURE DOESN'T WANT TO
TAKE OTHER ACTIONS IN THE
PRESENCE OF A BUDGET PROBLEM IN
ORDER TO ADDRESS IT, RIGHT,
OTHER ACTIONS BESIDES RESERVE SO
REDUCING SPENDING, OF COURSE,
INCREASING REVENUES OR SHIFTING
COSTS. THOSE ARE ALSO AVAILABLE
OPTIONS TO LEGISLATURE. SURE
HOLDING EVERYTHING CONSTANT.
YEAH THAT THAT WOULD BE THE THAT
WOULD BE INAPPROPRIATE RESPONSE
. IF WE WERE TO DO THAT, YES,
OKAY. I THINK THAT'S ALL THE
QUESTIONS I HAVE MR CHAIR. DR
MPA. THANK YOU, MR CHAIR. I'LL
START IF I CAN BY THANKING THE
LEADERSHIP THAT THIS CHAIR HAS
PROVIDED, AS WELL AS THE
ASSEMBLY AND SENATE AND HELPING
TO GET US TO A POINT AS A STATE
THAT WE HAVE THE RESERVES THAT
WE DO. I WOULD LIKE TO DIG IN A
LITTLE BIT ONTO THE SAFETY NET
RESERVE IF I MAY. UM YOU STATED
EARLIER DURING YOUR PRESENTATION
THAT THE OPTIMAL LEVEL OF THE
RESERVE IS ULTIMATELY A
LEGISLATIVE POLICY DECISION, BUT
WAS HOPING YOU COULD SPEAK TO
RATIO YOUR GRAPH ON PAGE FOUR
LOOKS AT THE PERCENTAGE OF THE
PUBLIC SCHOOL SYSTEM
STABILIZATION ACCOUNT AS WELL AS
A PROP TO AS A PERCENTAGE OF UM
, THE SPENDING THAT WE DO, BUT
WE DON'T SEE THAT DRAWN OUT FOR
SAFETY NET RESERVE AND WAS
HOPING THAT YOU COULD COMMENT ON
WHAT WOULD BE AN APPROPRIATE
RATIO OR HOW WE SHOULD BE
THINKING AND MAKING SURE THAT
THIS RESERVE WAS SUFFICIENT TO
MEET POTENTIAL DOWNTURN. YEAH,
ABSOLUTELY. UM, SO THIS GRAPHIC
. I DID NOT HIGHLIGHT IT IN MY,
UM WHEN I WAS TALKING ABOUT IT,
BECAUSE IT IS RELATIVELY SMALL
COMPARED TO THE BSA, BUT IT DOES
ACTUALLY INCLUDE THE SAFETY NET
IN GENERAL PURPOSE RESERVES AND
THE REASON THAT WE INCLUDED IN
GENERAL PURPOSE RESERVES, AS
OPPOSED TO THE SCHOOL RESERVE IS
BECAUSE IT IS AVAILABLE TO
SUPPLANT AND NOT SUPPLEMENT, UM
, SPENDING ON COW WORKS AND
MEDICAL EVEN THOUGH WE DO
UNDERSTAND THAT THAT'S NOT
NECESSARILY THE INTENTION. IN
TERMS OF THINKING ABOUT AN
APPROPRIATE LEVEL FOR THAT
RESERVE, OR, YOU KNOW SOME OF
THE CONSIDERATIONS THAT THE
LEGISLATURE MIGHT THINK ABOUT,
AS IT'S SETTING A RESERVE LEVEL
FOR THE SAFETY NET RESERVE. YOU
KNOW, TO THE EXTENT THAT THAT
RESERVE IS BEING SET ASIDE FOR
THOSE PROGRAMS SPECIFICALLY
BECAUSE THOSE PROGRAMS HAVE
CASELOAD THAT WOULD INCREASE IN
A RECESSION RIGHT TO UNDERSTAND
TO OUR UNDERSTANDING. THAT'S THE
PURPOSE OF IT. THEN A DIFFERENT
THEN, UM, YOU KNOW, ONE WAY OF
THINKING ABOUT THE APPROPRIATE
LEVEL OF THE RESERVE IS HOW MUCH
HAS CASELOAD INCREASED IN PAST
RECESSIONS FOR THESE PROGRAMS?
WHAT DOES THAT MEANT FOR PROGRAM
COSTS? AND THEN YOU KNOW, AGAIN,
THINKING ABOUT WHAT SIZE OF A
RECESSION THE LEGISLATURE WOULD
WANT TO PREPARE FOR WHAT IS THE
YOU KNOW, KIND OF RECESSION THAT
THE LEGISLATURE WOULD WANT TO
TARGET AS IT CONSIDERS THE SIZE.
UNFORTUNATELY DON'T HAVE THE
NUMBERS IN FRONT OF ME, BUT WE
HAVE DONE A SIMILAR. WE HAVE
DONE AN ANALYSIS LIKE THAT FOR
THE COW WORKS PROGRAM. I WOULD
LOVE TO FOLLOW UP OFF LINE IF I
CAN TO UNDERSTAND DUE TO THE
PARADOXICAL NATURE THAT WHEN WE
HAVE AN ECONOMIC DOWNTURN, WE
TEND TO NEED OUR SAFETY NET MORE
, BUT I'D LIKE TO UNDERSTAND
WHAT AN APPROPRIATE RATIO WOULD
BE SO THAT WE CAN BEST PREPARE
FOR A POTENTIAL DOWNTURN. THANK
YOU, MR CHAIR. THANK YOU.
DOCTOR. MBA OTHER OTHER
QUESTIONS COMMITTEE. I DID HAVE
A COUPLE QUESTIONS. SO ON PAGE
FOUR, JUST GOING BACK TO THE
SAME CHART DR. RENDER WAS
REFERRING TO YOU HAVE THE
PERCENTAGES. CAN YOU GIVE ME THE
GROSS NUMBERS? GOING FROM, YOU
KNOW 18 19 ON FORWARD JUST SO I
WOULD HAVE TO GET BACK TO YOU ON
THOSE NUMBERS. I'M SORRY. I
DON'T HAVE THEM OFF THE TOP OF
MY HEAD. YOU DON'T HAVE THE
NUMBERS FOR THE AMOUNT OF
RESERVES FOR RESERVE HEARING.
I'M SORRY. I DON'T CAN WE OKAY.
HOW MANY STUFF DO WE HAVE ONLINE
? CAN WE GET THAT RIGHT NOW,
MISS CHU? CAROLYN CHUTE FROM
LEGISLATIVE ANALYST'S OFFICE. WE
DO OT HAVE OUR STUFF ON, UH, ON
THE WEBEX TODAY, BUT WE
CERTAINLY CAN CAN SEND YOU THE
NUMBERS TODAY. WELL, I THINK I
JUST WANT TO UNDERSTAND, UM
BECAUSE I THINK IT'S OKAY TO
HAVE. PERCENTAGE BUT I THINK IT
IS IMPORTANT TO REMEMBER THAT
THE CONTEXT OF THE RESERVES
BECAUSE IN THE CONTEXT OF THE
RESERVES AS WE AS WE
APPROPRIATED THE 2020 21 BUDGET
. OUR ASSUMPTION, AS YOU HAD
MENTIONED WAS THAT WE'RE GOING
TO SEE REVENUES DROPPED THAT DID
NOT OCCUR REVIEWS. WENT UP AND
SO OBVIOUSLY AS A PERCENTAGE
OVER THE NEXT TWO YEARS THE
RESERVE AMOUNT WOULD OBVIOUSLY
BE A SMALLER PERCENTAGE. AND AS
YOU HAD MENTIONED REVENUES WENT
UP SIGNIFICANTLY OVER THAT TIME.
I THINK IT IS IMPORTANT TO
REMEMBER THAT UM IN TERMS OF I
KNOW THAT WE'VE ENDED UP
CREATING YOU KNOW, A NUMBER OF
DIFFERENT RESERVE ACCOUNTS. IS
THERE. IS THERE ANY PRO OR CON
TO HAVING MORE RESERVE ACCOUNTS
OR FEWER PRESERVE ACCOUNTS. UM.
FROM AN ACCOUNTING PERSPECTIVE.
THERE REALLY ISN'T A PRO OR CON.
THE ADVANTAGES CAN BE IN TERMS
OF HELPING THE LEGISLATURE THINK
ABOUT DIFFERENT TYPES OF RISKS
THAT IT WOULD WANT TO BE
PREPARED FOR, UM AND THEN, UH,
PREPARING FOR EACH OF THOSE
SEPARATELY IN CASE THOSE RISKS
WERE TO HAPPEN SIMULTANEOUSLY.
SO AN EXAMPLE WE OFTEN GET, FOR
EXAMPLE, IS THE SPECIAL FUND FOR
ECONOMIC UNCERTAINTIES. ALTHOUGH
IT IS, OF COURSE, A GENERAL
PURPOSE RESERVE IT WOULD BE
AVAILABLE FOR THE STATE IN ANY
CASE. IT IS OFTEN WHAT THE STATE
USES IN A DISASTER TO DRAW DOWN
THE CASH THAT'S NECESSARY TO
COVER THE COSTS OF FATE,
SPENDING AND A DISASTER. AND IF
A DISASTER WERE TO OCCUR
SIMULTANEOUSLY WITH OUR
RECESSION, THEN IT MIGHT BE
PRUDENT, AND IT MIGHT BE HELPFUL
, HELPFUL AS THE LEGISLATURE
CONSIDERS, YOU KNOW THE RIGHT
LEVEL OF RESERVE TO SAY HERE IS
WHAT WE INTEND TO BE THE AMOUNT
THAT'S COVERED FOR THE DISASTER.
AND THEN HERE IS THE AMOUNT THAT
WE INTEND TO BE COVERED FOR A
RECESSION. FROM AN ACCOUNTING
PERSPECTIVE. YOU COULD PUT THOSE
TWO TOGETHER. UM AND YOU KNOW
FROM THE BUDGET, THE BUDGET
WOULDN'T SORT OF SEE A
DIFFERENCE BETWEEN THEM, BUT IT
CAN BE HELPFUL FOR DECISION
MAKING. GREAT. THANK YOU. I
KNOW. OUR VICE CHAIR. ASKED
ABOUT THE CAP AT I FORGET
WHETHER HE WAS REFERRING TO
SPECIFICALLY THE RAINY DAY FUND
IS THERE IS THERE A CAP ON THE
RIGHT DAY FRONT? YES THE RAINY
DAY FUND HAS A CAP ON THE
CONSTITUTIONAL DEPOSITS THAT CAN
BE MADE INTO IT, AND THAT IS 10%
OF GENERAL FUND REVENUES AND
TRANSFERS, BUT THERE IS NO CAP
ON THE OPTIONAL AMOUNTS THAT CAN
BE PUT INTO THE B S A PERFECT
AND, UM.
I THINK THAT IS. I HAVE ONE MORE
QUESTION, BUT I CAN'T RECALL
WHAT IT IS RIGHT NOW. UM ANY
OTHER QUESTIONS FROM THE
COMMITTEE OF NOT LOOKING AT
MISTAKE. CRAZY QUESTION. LET'S
DO A WORK. WORST CASE SCENARIO,
BUT WE'RE GETTING A MAJOR
RECESSION. WE DO HAVE A MAJOR
CATASTROPHE. WE ALREADY GOT
WILDFIRES. LET'S TALK EARTHQUAKE
. HOW LONG WILL THIS RESERVE
MONEY'S LAST? UM WELL, YOU KNOW,
IT'S DIFFICULT TO TALK ABOUT
HYPOTHETICAL FUTURE RECESSIONS,
BUT I CAN TRY YOUR ATTENTION TO
THE GREAT RECESSION AND THE
NUMBERS FROM THE GREAT RECESSION
. UM, ON PAGE ONE. AND FROM THAT
RECESSION THE STATE SAW, YOU
KNOW BUDGET PROBLEMS IN THE TENS
OF BILLIONS OF DOLLARS A YEAR,
UM, AND CUMULATIVELY WERE ABOUT
$100 BILLION A YEAR OVER
ESSENTIALLY THE FOUR YEAR PERIOD
, ALTHOUGH THE STATE DID
CONTINUE TO HAVE BUDGET PROBLEMS
, EVEN AFTER THE RECESSION WAS
OVER. UM AND FROM A RISK, YOU
KNOW, DISASTER. IT'S OFTEN THE
STATE COSTS ASSOCIATED WITH
DISASTERS OR CLOSER TO THE LOW
BILLIONS OF DOLLARS. ALTHOUGH,
OF COURSE WITH THE COVID
EMERGENCY, UM THE STATE
STEAKHOUSE WERE SIGNIFICANTLY
HIGHER, ALTHOUGH THE FEDERAL
GOVERNMENT DID ALSO REIMBURSE
THE STATE FOR SIGNIFICANT
AMOUNTS OF ITS STATE COSTS. YOU
HAVE TO TURN YOUR MIC ON.
INSTEAD OF TURNED IT ON. THERE
WE GO. UM WE DIDN'T PAY BACK TO
$7.8 BILLION. IS THERE OTHER
MONEY THAT'S BEEN BARRED. I KNOW
WE BORROWED, UH, UNEMPLOYMENT
INSURANCE FUNDS FROM THE FEDERAL
GOVERNMENT HAS DONE ANY OF THAT
MONEY BEEN PAID BACK. AND
THERE'S YOUR OTHER RESERVES THAT
WE HAVE OT PAID BACK TO OTHER
FUNDS THAT WE BORROWED FROM.
SURE SO WITH REGARD TO THE
UNEMPLOYMENT INSURANCE TRUST
FUND THE WAY THAT THAT IS PAID
BACK IS OVER TIME WITH A TAXES
ON EMPLOYERS. EMPLOYERS ARE THE
ONES WHO PAY INTO THE FUND FOR
THEM EMPLOYEES TO RECEIVE THE
BENEFITS, UM, WHEN THEY BECOME
UNEMPLOYED, AND SO OVER A PERIOD
OF MANY YEARS THAT THE TRUST
FUND WILL BE REPLANTED, THE LOAN
FROM THE FEDERAL GOVERNMENT WILL
BE REPAID THROUGH THOSE TAXES
AND THE TRUST FUND WILL BE
REPLENISHED. THE STATE PAYS THE
INTEREST ON THE FEDERAL
GOVERNMENT LOAN, WHICH IS A FEW
$100 MILLION A YEAR DEPENDING ON
INTEREST RATES. UM BUT I WILL
LET MY COLLEAGUE RESPOND TO YOUR
QUESTION ABOUT SPECIAL FUND
LOANS. OH I'M SORRY. I'M SORRY.
WOULD YOU MIND REPEATING THE
SECOND PART OF YOUR QUESTION?
JUST PRETTY MUCH UNEMPLOYMENT.
WE CAN PAY DOWN THAT FUND SOME
MONEY THAT WE BORROWED SO WE
DON'T HAVE TO PAY $200 MILLION
IN INTEREST EVERY YEAR AND HELP
OUT OUR BUSINESS OWNERS TO MAKE
IT MORE VIABLE TO STAY IN
BUSINESS IN CALIFORNIA. WE CAN
USE THAT MONEY FOR THAT. UH THE
STATE COULD OPT TO PAY WITH
GENERALFUND RESOURCES. PART OF
THE FEDERAL GOVERNMENT LOAN. YES
OPTED NOT TO PAY ANY OF THAT
MONEY DOWN, SO WE'LL PUT THE
BURDEN BACK ON THE BUSINESS
OWNERS TO MAKE SURE THAT THEY
PAY IT ALL BACK WITHOUT HELPING
THEM OUT. THE BUDGET TOOK IT
MADE DIFFERENT DECISIONS. YES.
THANK YOU. I'M JUST GONNA
CLARIFY MISTRESS, MISS COMMENTS.
SO THE FOR THE BUDGET DECISION
THAT WE MADE WAS TO NOT UH, PAY
INTO THE FUND BECAUSE WE STILL
HAVE TIME BEFORE THE TAXES GET
TRIGGERED. WELL HE DID CONCLUDE
IN THE BUDGET WAS WE PUT WE SET
ASIDE MONEY FOR GRANTS OR ANY
BUSINESS THAT WAS GOING TO GET
IN INCREASES. SO NO BUSINESS. I
THINK THE NEXT I BELIEVE IS THE
NEXT TWO YEARS. IF THEY WERE
GOING TO GET AN INCREASE, THEY
WILL GET A GRANT TO COVER THAT
INCREASES SO THEY WILL HE HELD
HARMLESS FOR ANY INCREASE IN
UNEMPLOYMENT COSTS. AND THEY
HAVE TO APPLY FOR THAT GRANT TO
GET THAT MONEY. BUT IF WE PAY
DOWN THE MONEY TO THE FEDERAL
GOVERNMENT, I'M TRYING TO GET
TWO OR $300 MILLION JUST IN
INTEREST CHARGES TO THE STATE.
EVERYBODY SEEMS TO BE OKAY WITH
BUT IF WE PAY DOWN THAT MONEY,
WE WOULDN'T HAVE TO PAY ALL THAT
INTEREST PAYMENT. YEAH, I THINK
WHAT WE DECIDED TO DO IS WE
WANTED TO PUT SOME OF THAT MONEY
PUT PEOPLE TO WORK SO THAT THEY
WOULDN'T BECOME UNEMPLOYED. AND
THEN OBVIOUSLY WHEN THAT BILL
COMES FORWARD AS IT COMES
FORWARD, THAT WE WANTED TO PAY
THOSE BILLS AS WE GO. MR. JUST
11 QUESTION. OR MAYBE, UH,
DEPENDING ON THE ANSWER, I GUESS
IT MAY LEAD TO OTHER QUESTIONS.
BUT IN THE DEPARTMENT OF FINANCE
IN LOOKING AT YOUR MULTI YEAR
FORECAST, IF I'M LOOKING AT THE
VERY LAST, UM UH, UM. LINE. UM
THERE. IS IT CORRECT TO IF I'M
READING THIS IN THE 2024 25
BUDGET YEAR THAT YOU'RE
PROJECTING OR YOUR DEPARTMENT
FINANCES, PROJECTING A DEFICIT
OF 708. UH MILLION DOLLARS. SO
YEAH. IN THE MULTI YEAR FORECAST
YOU'RE LOOKING AT, UM THE SFTU
OF 700 MILLION DEFICIT. IS THAT
WOULD EIGHT YES, YES. SO JUST
JUST TO NOTE THAT THAT IS THE
SFTU, BUT IT'S BUT IF YOU LOOK
AT YOUR ACTUAL OPERATING DEFICIT
, YOU REMOVE ALL OF THE ONE TIME
EXPENDITURES THAT ARE BUILT INTO
THOSE MULTI YEAR YOU'RE ACTUALLY
AT A POSITIVE AND I BELIEVE THAT
MIGHT BE THE LAST LINE ON THE
MULTI YEAR THAT YOU'RE LOOKING
AT. THERE'S. THE SO I THERE'S
THE OPERATING AS I HAVE THE
OPERATING DEFICIT TO BE 708
MILLION IN 24 25. BUT THAT'S
OPERATING SURPLUS DEFICIT,
EXCLUDING THE ONE TIME
EXPANSIONS, EXCLUDING THE ONE
TIME RIGHT, OKAY. IS THAT RIGHT
? THAT'S THAT IS THAT DRUG
DOCUMENTS CORRECT THAT ARE YOU
SAYING THAT THAT'S NOT RIGHT? NO
IT IS DEFINITELY. YES YES. I
JUST HAVE NOT LOOKED AT IT. I
APOLOGIZE FOR AWHILE. OKAY YOUR
DOCUMENT IS GONNA MAKE SURE
ABSOLUTELY ABSOLUTELY. IF
THERE'S A WHAT LEADS US TO THAT
CONCLUSION, HOW DO WE HOW DO WE
GET TO THAT POINT BECAUSE THEN
THE VERY NEXT YEAR IN 25 26.
WE'RE NOW IN A SURPLUS OF 1.9
BILLION SO HOW DOES THAT HAPPEN
? HOW DO YOU HOW DO WE GO FROM?
33 BILLION SURPLUS 17 BILLION
SURPLUS 15.9 BILLION SURPLUS IN. GOING THE NEXT THREE YEARS
THAN A $708 MILLION DEFICIT AND
THEN BACK UP TO A $1.9 BILLION
SURPLUS. WELL THERE'S A MULTI,
THERE'S MULTIPLE FACTORS AND YOU
KNOW VARIOUS THINGS BUILT INTO
THOSE OUT YOUR BUDGETS, AND A
LOT OF IT IS ONE TIME AND SOME
ONGOING EXPENDITURES THAT SO DO
YOU ASSUME A RECESSION IN THIS
IN THIS IN THIS MULTI YEAR,
ASSUME HIGHER INFLATION AND WE
ASSUME A LOT OF OUT YOUR ONE
TIME SPENDING, UM TO BUILD, SO
YOU KNOW, THE MONEY IS NOT IN
THE RESERVE AND THEN THERE'S
SEVERAL RESERVE DEPOSITS IN THE
OUT YEARS AS WELL. OKAY LARGE
RESERVE DEPOSIT. OKAY, SO THESE
ARE THE ASSUMPTIONS THAT I'M
TRYING TO GET OUT. SO YOU'RE
ASSUMING INFLATION CONSUMING
TRANSFERS, BUT YOU DON'T ASSUME
A RECESSION. NOT NOT AT THE TIME
THAT WE WERE DOING OUR ECONOMIC
FORECAST AND A LOT OF THESE
FACTORS WERE DONE IN NOVEMBER
DECEMBER AND WE HAVE NOT YET
UPDATED THOSE FACTORS, WHICH
WON'T BE DONE TILL GOVERNOR'S
BUDGET. SO THIS PLAN, YOU'RE
RIGHT DOES NOT ASSUME A
RECESSION. SO THEN WHEN WILL
YOUR NEXT WHEN WILL YOUR NEXT
MULTIYEAR BUDGET JANUARY
JANUARY? OKAY? AND SO THIS COULD
ALL CHANGE IT ANYWAY.
ABSOLUTELY. THANK YOU. JUST A
QUICK FOLLOW UP QUESTIONS. SO,
UM. HOW DO I RESERVE DEPOSITS
INTERACT WITH THE STATE
APPROPRIATIONS LIMIT? RESERVE
DEPOSITS UNDER THE CONSTITUTION
ARE CONSIDERED APPROPRIATION
SUBJECT TO THE LIMIT, MEANING
THAT THEY COUNT TOWARD THE
WHAT ACTUALLY HAPPENED. THEY
DON'T COUNT LIKE WE'RE SAVING IT
AND WE'RE ACTUALLY NOT SPENDING
IT. THEY ACTUALLY ARE ACTING AS
IF THEY SPEND IT. SO THEN THE
STATE APPROPRIATIONS LIMIT.
ACTUALLY. HAMPERS OUR ABILITY TO
SAFE. IT ACTUALLY DOESN'T LOOK
AT THE SAVINGS LOOKS LIKE LIKE
WE'RE SPENDING LIKE LIKE AS IF
WE'RE BI NÓ. BUILDING A
BUILDING OR FIXING ROADS.
ACTUALLY. WELL NOT. YEAH NO, NOT
THOSE THINGS, BUT, YES, OTHER
KINDS OF SPENDING IT ON
CHILDCARE EXPENSES OR HEALTHCARE
EXPENSES OR HUMAN SERVICES.
SORRY. YES, THAT'S RIGHT, OR
EVEN EDUCATION. YES. OKAY. THANK
YOU. NEITHER. GREAT. THANK YOU
VERY MUCH. APPRECIATE IT. UH ARE
WE AREWE TALKING TAKEN? OKAY
GREAT. WE'RE GONNA WAIT TO DO
PUBLIC COMMENT AFTER THE SECOND
PANEL. SO NOW WE HAVE OUR SECOND
PANEL ON LANGUAGE ACCESS ASKED
THE PANELISTS TO COME FORWARD,
PLEASE UM THIS PANEL WAS
ORIGINALLY UP PLANNED FOR
EARLIER IN THE YEAR. UH WE HAVE
VERY MUCH THE MOST DIVERSE
POPULATION IN THE ENTIRE COUNTRY
. WE HAVE THE HIGHEST PERCENTAGE
OF ENGLISH LANGUAGE, NON ENGLISH
LANGUAGE SPEAKERS IN THE ENTIRE
COUNTRY HERE IN CALIFORNIA, AND
I THINK AS A STATE WE HAVEN'T
DONE REALLY OUR BEST JOB TO
FULLY. SERVE THEM OR REALLY DO
OUR BEST. I THINK ONE AGENCY,
WHICH HAS DONE A PRETTY GOOD JOB
IS. TESTS OR BOOKLETS IN
MULTIPLE LANGUAGES AND NOT JUST
YOUR TYPICAL TOP FIVE OR 10
LANGUAGES, BUT REALLY, UH,
ALMOST EVERY LANGUAGE IN
CALIFORNIA SPOKE UNDER THE SUN.
IF I GO INTO A BANK, OR IF I
NEED TO GET HEALTH CARE, I CAN
SPEAK IN MY NATIVE LANGUAGE. BUT
IF I WANT TO GET A STATE SERVICE
UH, IF I WANT TO CALL E D D. I
DON'T KNOW THAT I CAN GET THAT
SERVICE. SO I THINK THIS IS A
VERY CRITICAL ISSUE TO MAKE SURE
THAT WE ARE PROPERLY SERVING ALL
THE PEOPLE IN OUR STATE. WE NOW
HAVE SET UP IN THE BUDGET.
THROUGH A PILOT PROGRAM TO DO
LANGUAGE ACCESS. SO WE'RE VERY
EXCITED ABOUT COPS BEING HERE
TODAY. TO REALLY, UM UH, WALK US
THROUGH WHAT? THEY'RE WHAT
THEY'RE THINKING AND REALLY HOPE
TO SET UP AN OPPORTUNITY TO
COLLABORATE. THIS HAS BEEN AN
ONGOING ISSUE OR THE LEGISLATURE
. WE VERY MUCH THANK ANTOSH
SERUM SANTANA FOR BEING HERE
FROM CHINESE FOR AFFIRMATIVE
ACTION AND ALSO MR. UH JUSTIN
HOWARD FROM DEVOPS AND AS WELL
AS SCOTT MORGEN FROM OPR. SO
WITH THAT. PLEASE BEGIN. GOOD
AFTERNOON, MR CHAIR AND MEMBERS
OF THE COMMITTEE. SANTOS SERUM.
SANTANA REPRESENTING CHINESE FOR
AFFIRMATIVE ACTION, WE ARE A
COMMUNITY BASED CIVIL RIGHTS
ORGANIZATION AND SINCE OUR
INCEPTION OVER 50 YEARS AGO, OUR
WORK HAS FOCUSED ON LANGUAGE
ACCESS BOTH AT THE STATE AND AT
THE LOCAL LEVELS. WE APPRECIATE
THE OPPORTUNITY TO COME BEFORE
YOU TODAY AND SHARE OUR THOUGHTS
AND OUR INSIGHTS WILL BE
FOCUSING. I'LL BE FOCUSING MY
COMMENTS, MAINLY ON THE
CHALLENGES OF LANGUAGE ACCESS
WOULD HAVE BEEN THE GAPS IN OUR
STATE AND ALSO RESPOND TO SOME
OF THE THINKING AROUND POTENTIAL
CENTRALIZATION OF THOSE
SERVICES. SO THERE IS A
PATCHWORK OF FEDERAL AND STATE
LAWS TO PROVIDE LANGUAGE ACCESS
TO CALIFORNIA RESIDENTS WHO ARE
NOT PROFICIENT IN ENGLISH, AND
UNFORTUNATELY, THESE STATE LAWS
ARE POORLY UNDERSTOOD BY OUR
STATE GOVERNMENT, OUR STATE
DEPARTMENTS AND AGENCIES AND THE
EMPLOYEES WHO HAVE TO IMPLEMENT
THEM. THIS IS RESULTED IN
SIGNIFICANT GAPS IN LANGUAGE
ACCESS, AND IT HAS ULTIMATELY
CULTIVATED IN LANGUAGE ACCESS
BEING A LOW PRIORITY FOR STATE
GOVERNMENT. ONE OF THE WITH THIS
PATCHWORK APPROACH. WHAT HAS
HAPPENED IS IN OUR STATE IS
AGENCIES AND DEPARTMENTS DEFAULT
TO DYMALLY. AND I THINK STAFF
HAS DONE A GOOD JOB IN THE
AGENDA OUTLINING THE LIMITATIONS
OF DYMALLY, SO I WON'T GO INTO
THAT. BUT THE ONE THING I WILL
ADD, IS THAT DYMALLY SETS FORTH
A STANDARD THAT IS LOWER. THAN
WHAT WE HAVE IN STATE LAWS AND
FEDERAL OBLIGATIONS, AND THAT
CAUSES MUCH CONFUSION IN IN OUR
STATE AGENCIES AND IN OUR
DEPARTMENTS. THE CURRENT
MECHANISM WE HAVE FOR PRODUCING
LANGUAGE ACCESS IN OUR IN OUR
STATE DOES NOT TAKE INTO THE
NEEDS THE SMALL LINGUISTIC
COMMUNITIES OR GROUPS THAT HAVE
A LOW LITERACY, UH, RATES. SO,
FOR EXAMPLE, THE CITY OF LONG
BEACH. THE CITY OF LONG BEACH
HAS THE OLDEST AND THE LARGEST
CAMBODIAN POPULATION IN THE US,
AND THAT AMOUNTS TO ABOUT 20,000
PEOPLE. THE D. M V. DESPITE THE
CHAIR'S COMMENT, THE DMV DOES
NOT PROVIDE IN LANGUAGE SERVICES
TO THIS POPULATION, RENDERING
THIS COMMUNITY WITHOUT DRIVER'S
LICENSE OR A VALID I D THINGS
YOU NEED TO REGISTER YOUR KIDS
FOR SCHOOL TO GET TO WORK, SO
THERE'S ANOTHER EXAMPLE OF THE
PATCHWORK APPROACH THAT WE HAVE
IN CALIFORNIA. OTHER CALIFORNIA
LANGUAGE ACCESS LAWS TREAT
LANGUAGE ACCESS MANDATES
DIFFERENTLY ACROSS VARIOUS
VARIOUS SECTORS. SO, FOR EXAMPLE
, UM, THE STATE EMERGENCY RENTAL
ASSISTANCE PROGRAM. THEY
TRANSLATE DOCUMENTS IN FIVE
LANGUAGES. E G D TRANSLATE
DOCUMENTS IN 15 LANGUAGES AND
MEDICAL TRANSLATES DOCUMENTS IN
18 LANGUAGES. THESE ARE ALL
CRITICAL SERVICES BUT WITH
VARYING STANDARDS, WHICH CREATES
EVEN FURTHER CONFUSION AND ONE
OTHER ISSUE THAT HAS COME UP
WITH OUR ADVOCATES THAT WE SEE
THE LANGUAGE ACCESS ADVOCATES IS
A CONFUSION IN STATE GOVERNMENT
AROUND, UM, TRANSLATION, WHICH
IS WRITTEN AND INTERPRETATION,
WHICH IS VERBAL. AND WHAT
HAPPENS IS THESE REQUIREMENTS
GET CONFLATED. WHICH FURTHER UH
CLOSES MEANINGFUL ACCESS FOR THE
COMMUNITIES WHO REALLY NEED
THEM. I UNDERSTAND THAT THERE
ARE POTENTIAL POLICY EFFORTS
AFOOT TO CENTRALIZE THE
PROVISION OF LANGUAGE ACCESS TO
HAVE THOSE RESPONSIBILITIES BE
HOUSED IN ONE CENTRAL AGENCY,
AND WE AT C A. ALONG WITH
LANGUAGE, ASKS US ADVOCATES
ACROSS THE STATE BELIEVE THAT
THERE SHOULD BE BOTH A
CENTRALIZED AGENCY WITH THOSE
RESPONSIBILITIES. AND THOSE
RESPONSIBILITIES ALSO DIFFUSED
WIDELY AND OTHER STATE AGENCIES
AND DEPARTMENTS. SO HAVING A
CENTRAL AGENCY FOR LANGUAGE
ACCESS SHOULD NOT CANCEL OR VOID
. OTHER STATE AGENCIES. UM
HAVING A STAFF A UNIT TO ENSURE
IMPLEMENTATION. AND COMPLIANCE
WITH LANGUAGE ACCESS FOR THE
PRACTICES OF THEIR SPECIFIC
AGENCY. AND FINALLY, I JUST I
WANT I'LL END WITH THAT. UM YOU
KNOW, I THINK THERE SEEMS TO BE
A FUNDAMENTAL MISUNDERSTANDING
OF WHAT LANGUAGE ACCESS IS IN IN
INSTINCT, GOVERNMENT AND. I WILL
BOIL IT DOWN TO THREE THINGS.
LANGUAGE ACCESS IS A CIVIL
RIGHTS OBLIGATION THAT EXISTS
UNDER STATE LAW AND FEDERAL LAW
. AND WHILE AGENCIES MAY WANT TO
CONTRACT THAT OUT TO THIRD PARTY
VENDORS, THAT OBLIGATION FOLLOWS
IT. SECOND. LANGUAGE ACCESS IS
ABOUT CUSTOMER SERVICE AND STATE
AGENCIES AND GOVERNMENTS REALLY
NEED TO DEPLOY A CUSTOMER
FRIENDLY CUSTOMER SERVICE
ORIENTATION TO THIS PROVISION OF
SERVICE. AND THIRD. LANGUAGE
ACCESS IS A MECHANISM. IT IS A
PROCESS FOR US TO ENSURE THAT
ARE CALIFORNIA RESIDENTS ARE
ENGAGING CIVICALLY. UH TAKING
PART IN GOVERNMENT SERVICES, AND
THAT PROCESS SHOULD LIVE AND
BREATHE AS WE HAVE NEW REFUGEES
, COMMUNITIES COMING IN AS WE
HAVE DIFFERENT LANGUAGE CHANGING
, AND SO IT SHOULD BE REFLECTIVE
OF THE STATE OF CALIFORNIA AND
WHERE WE ARE. THANK YOU SO MUCH
FOR YOUR TIME. THANK YOU VERY
MUCH. I THINK THAT'S AN
EXCELLENT SUMMARY. AND I THINK,
UH, IF I JUST SORT OF DO IT TAKE
AWAY I THINK WHAT YOU'RE SAYING
IS THAT WHILE THERE IS
TRANSLATION GOING ON THAT THERE
ISN'T ALWAYS COMMUNICATION GOING
ON. AND SO WHILE SOMEONE UM AND
AGAIN, I THINK WHAT YOU TALK
ABOUT IS YOU'RE ASSUMING. A
CERTAIN LITERACY LEVEL AS WELL
THAT OFTEN TIMES PEOPLE MAY NOT
BE ABLE TO EVEN READ THESE VERY
COMPLEX DOCUMENTS. THEY HAVE TO
REALLY UNDERSTAND THEM AND GET
THE SERVICE OR THAT TRANSLATION
IN THEIR OWN LANGUAGE, WHICH IS
REALLY NOT BEING PROVIDED SO
WITH THAT. LET'S LET'S GO TO
GIVE APPS AND THEN HAD TO OPR
AND THEN WE'LL TAKE QUESTIONS.
THANK YOU. GOOD CHANCE. THANK
YOU, MR CHAIR AND FELL.
COMMITTEE MEMBERS. MY NAME IS
JUSTIN HOWARD. I'M THE DEPUTY
SECRETARY FOR FISCAL POLICY AND
ADMINISTRATION AT THE GOVERNMENT
OPERATIONS AGENCY. UM AND I
APPRECIATE THE INVITE TODAY TO
COME AND TALK A LITTLE BIT ABOUT
SOME OF THE EFFORTS THAT ARE
CURRENTLY UNDERWAY IN OUR AGENCY
RELATED TO THIS TOPIC. I'M GONNA
START WITH A LITTLE BIT OF
BACKGROUND IN TERMS OF WHAT GOVE
APPS AGENCY AGENCY'S MISSION IS
AND HOW THAT RELATES TO THIS
SUBJECT. THE MISSION OF GONZAGA
BOXES TO IMPROVE GOVERNMENT
OPERATIONS WITHIN STATE
DEPARTMENT SO THAT THEY CAN
BETTER SERVE THE PEOPLE OF
CALIFORNIA. WE DO THIS THROUGH
OUR UNIQUE ROLE IN STATE
GOVERNMENT, WHERE WE OVERSEE
THREE OF THE FOUR MAJOR CONTROL
AGENCIES AND STATE GOVERNMENT
AND THOSE AGENCIES INCLUDE THE
DEPARTMENT OF GENERAL SERVICES,
THE DEPARTMENT OF HUMAN
RESOURCES AND THE DEPARTMENT OF
TECHNOLOGY. ON TOP OF THAT. WE
ALSO SEE THREE SMALLER, OVERSEE
THREE SMALLER ENTITIES, THE
STATE PERSONNEL BOARD OFFICE
ADMINISTRATIVE LAW AND THE
OFFICE OF DIGITAL OFFICE OF DATA
AND INNOVATION THAT ALSO IMPACT
GOVERNMENT OPERATIONS IN
SIGNIFICANT WAYS. ALL SIX OF
THESE DEPARTMENTS UNDERGO BOPS.
SET GUIDELINES AND OR PROVIDE
SPECIFIC DIRECTION THAT ALL
STATE DEPARTMENTS ARE REQUIRED
TO FOLLOW AS PART OF THEIR DAILY
OPERATIONS. THIS INCLUDES
SIGNIFICANT OPERATIONAL AREAS
SUCH AS PROCUREMENT, INFORMATION
TECHNOLOGY AND HUMAN RESOURCES.
GIVEN OUR MISSION IN AUTHORITY
ROUTINELY WORKS CLOSELY WITH OUR
CONTROL AGENCY DEPARTMENTS TO
IMPLEMENT MEANINGFUL CHANGES TO
STATE OPERATIONS. SIGNIFICANT
FOCUS WITHIN STATE OPERATIONS IN
THE LAST FEW YEARS HAS BEEN
CENTERED AROUND DIVERSITY,
EQUITY, INCLUSION AND
ACCESSIBILITY, WHICH INHERENTLY
INCLUDES LANGUAGE ACTION
LANGUAGE ACCESS, THE SUBJECT OF
TODAY'S AGENDA ITEM. UTILIZING
LESSONS LEARNED FROM GAVE APPS
TIME OVERSEEING THE CENSUS OR
LANGUAGE ACCESS WAS A CRITICAL
COMPONENT OF THE STATE'S
OUTREACH PLANS. IS WORKING WITH
OUR CONTROL AGENCY DEPARTMENTS
ON HOW BEST TO INCLUDE AND
IMPROVE OUR D E I. A EFFORTS,
INCLUDING LANGUAGE ACCESS
THROUGHOUT STATE OPERATIONS.
WHILE THERE ARE MULTIPLE EFFORTS
UNDERWAY IN THIS AREA, FOUR OF
OUR CURRENT AREAS OF FOCUS
WITHIN THE OFFICE OF THE
SECRETARY INCLUDE THE FOLLOWING
ONE ESTABLISHING DIVERSITY,
EQUITY, INCLUSION AND
ACCESSIBILITY LEADERSHIP THROUGH
THE ESTABLISHMENT OF A CHIEF
EQUITY OFFICER. SECOND
EVALUATING VARIOUS STATE
DEPARTMENT'S OPERATIONS THROUGH
A UNIT USER CENTERED AND DATA
DRIVEN LENS. THIRD CONDUCTING A
LINGUIST, ACCESS PILOT AS YOU
THE CHAIR PREVIOUSLY MENTIONED
RELATED TO PUBLIC HEARINGS AND
THEN FOURTH, ASSESSING CURRENT
LANGUAGE ACCESS EFFORTS THAT ARE
LED BY THE DEPARTMENT OF HUMAN
RESOURCES.AS IT RELATES TO THE
EQUITY OFFICER TO HELP WITH OUR
D E I A EFFORTS RECOGNIZE THAT
SPECIFIC SPECIALIZED LEADERSHIP
WAS NEEDED TO PROVIDE THE
SUPPORT STATE DEPARTMENTS ON
THIS CRITICAL SUBJECT AREA AS
PART OF LAST YEAR'S BUDGET AND
THIS YEAR'S BUDGET, THE
LEGISLATURE GRACEFULLY PROVIDED
THE FUNDING AND ULTIMATELY
AUTHORITY FOR GEARBOX TO HIRE
FOR THE FIRST TIME, A CHIEF
EQUITY OFFICER WHO WILL LEAD OUR
AGENCY'S EFFORTS SURROUNDING
THIS AREA. AGAIN WHICH INCLUDES
LANGUAGE ACCESS. THE POSITION OF
THE CHIEF EQUITY OFFICER WILL
PROVIDE LEADERSHIP IN
CONSULTATION TO ALL STATE
DEPARTMENTS, WITH A PRIMARY
FOCUS ON THOSE DEPARTMENTS THAT
HAVE A DIRECT IMPACT ON STATE
OPERATIONS, PROCUREMENT,
INFORMATION TECHNOLOGY AND HUMAN
RESOURCES CHIEF ACCORDING
OFFICER WILL BE RESPONSIBLE FOR
SETTING AND IMPLEMENTING AN
OVERARCHING VISION OF DIVERSITY
, EQUITY INCLUSION OR THE STATE
AS AN EMPLOYER. THAT WORKS TO
ELIMINATE ELIMINATE SYSTEMIC
ORGANIZATIONAL. MARGINALIZATION
AND PROMOTES INCLUSION PRACTICES
THAT WILL BE EVIDENCE THROUGH
OUR STRUCTURES, CUSTOMS AND
LEADERSHIP. WE EXPECT THE PUBLIC
ANNOUNCEMENT REGARDING THE
HIRING OF THIS INDIVIDUAL VERY,
VERY SOON. ADDITIONALLY, AS PART
OF THIS YEAR'S BUDGET, THE
LEGISLATURE HAS ALSO PROVED
APPROVED A NEW FUNDING MODEL FOR
THE OFFICE OF DATA AND
INNOVATION WILL PLAY A CRUCIAL
ROLE IN OUR EFFORTS TO EVALUATE
STATE OPERA OPERATIONS THROUGH A
USER CENTERED AND DATA DRIVEN
VIEW. ODAI'S MISSION IS TO HELP
THE STATE DELIVER BETTER
SERVICES TO THE PEOPLE OF
CALIFORNIA. TO DO THIS. WE
CREATED THE DATA AND INNOVATION
FUND, WHICH PROVIDES FOR
COLLABORATION BETWEEN
DEPARTMENTS AND THE OFFICE OF
DATA AND THAT AN INNOVATION WITH
THE GOAL OF HELPING STATE
DEPARTMENTS TO UNDERSTAND AND
SOLVE THEIR BUSINESS PROBLEMS.
CI HELPS. FIND THE WHY BEHIND
THE CHALLENGES DEPARTMENTS ARE
FACING OD. I ALSO HELPED TO
IMPROVE DEPARTMENTS CUSTOMER
EXPERIENCE AND HELPS DEPARTMENTS
TO LEARN MORE ABOUT THE USERS OF
THEIR SERVICES AND WHAT THEY
NEED TO BE SUCCESSFUL. OD EYES
WORK INHERENTLY INCLUDES
IDENTIFYING THE BEST WAYS OR
DEPARTMENTS TO COMMUNICATE THEIR
SERVICES TO CALIFORNIANS TO THE
CALIFORNIANS THEY SERVED,
INCLUDING IN A WAY THAT IS EASY
TO ACCESS AND CULTURALLY AND
LINGUISTICALLY APPROPRIATE. THE
THIRD AREA, AS PREVIOUSLY
MENTIONED, IS THE LANGUAGE
ACCESS PILOT. IN ADDITION TO OD
EYES EFFORTS AS PART OF THIS
YEAR'S BUDGET, THE LEGISLATURE
PROVIDED $5 MILLION IN ONE TIME
FUNDING TO GOVERNMENTS TO
CONDUCT A LANGUAGE ACCESS PILOT
PROGRAM. THE GOAL OF THE PILOT S
STATED IN THE BUDGET ACT IS TO
INCREASE PARTICIPATION OF NON
ENGLISH OR LIMITED ENGLISH
SPEAKERS IN CALIFORNIA'S PUBLIC
HEARINGS AND MEETINGS. THE PILOT
IS REQUIRED TO DETERMINE THE
FEASIBILITY AND SCALABILITY OF
VARIOUS METHODS AND TECHNOLOGIES
TO ACCOMPLISH TRANSLATION OR
INTERPRETATION OF PUBLIC
HEARINGS AND MEETINGS IN VARIOUS
LANGUAGE FOR NON ENGLISH AND
LIMITED ENGLISH AUDIENCE
MEMBERS, TRANSLATION OR
INTERPRETATION. UH OF PUBLIC
COMMENT PROVIDED IN LANGUAGES
OTHER THAN ENGLISH TRANSLATION
OF PUBLIC HEARING AGENDAS,
TRANSCRIPTS AND VIDEO RECORDINGS
. USE OF CULTURALLY COMPETENT
TRANSLATION AND INTERPRETATION
METHODS THAT MAY INCLUDE
CULTURAL BACKGROUND SOURCE OF
LANGUAGE, AWARENESS AND
SENSITIVITY. NONVERBAL AND
CONTEXTUAL HUGHES AND REAL TIME
COMMUNICATION WITH AN
INTERPRETER TO DELIVER EFFECTIVE
COMMUNICATION. FROM THE SOURCE
OF THE LANGUAGE TO THE TARGET
AUDIENCE. THIS IS AMONG MANY
OTHER REQUIREMENTS AS PART OF
THIS LANGUAGE ACCESS PILOT
BEGINNING JANUARY 1ST OF 2023
BEFORE JANUARY, 1ST OF 2026 IS
REQUIRED TO PROVIDE INITIAL
FINDINGS AND IMPLEMENTATION
UPDATES TO THE LEGISLATURE
DURING THE ANNUAL BUDGET
PROCESS. INCLUDING METHODS AND
TECHNOLOGY RECOMMENDATIONS AND
SCALABILITY OPTIONS THAT COULD
LEAD TO THE EXPANSIONOF THE
PILOT PROGRAM ON A BROADER
BASIS. THE BOXES IN THE VERY
EARLY STAGES OF THIS PLANNING
EFFORT, AND WE HOPE TO HAVE MORE
INFORMATION AND THE HEARINGS
EARLY NEXT YEAR. FINALLY KELLY
CHAR. THE DEPARTMENT OF HER
HUMAN RESOURCES HAS A
SIGNIFICANT CURRENT ROLE IN
STATE GOVERNMENT RELATED TO
LANGUAGE ACCESS AS REQUIRED
UNDER THE DIE MOLLY TORY
BILINGUAL SERVICES ACT AS
BACKGROUND. THIS ACT BECAME LAW
IN 1973 TO ENSURE THAT
INDIVIDUALS SEEKING STATE
GOVERNMENT SERVICES WHOSE
PRIMARY LANGUAGE IS NOT ENGLISH
, ARE NOT PRECLUDED FROM
RECEIVING. STATE OF CALIFORNIA
SERVICES BECAUSE OF LANGUAGE
BARRIERS. ELECTORAL LHR IS ROLE
WITHIN THIS LAW IS TO INFORM
DEPARTMENTS. OF THEIR
OBLIGATIONS UNDER THE DAY, MOLLY
AUDITORY BILINGUAL SERVICES ACT
AND TO REVIEW AND REPORT ON
INFORMATION THAT THEY SUBMIT LHR
ALSO PROVIDES TRAINING AND
TECHNICAL SUPPORT TO AGENCIES
SURVEY IMPLEMENTATION PLAN THAT
IDENTIFIES PUBLIC CONTACTS AND
RESOURCES THAT ARE AVAILABLE.
AGENCIES ARE REQUIRED TO CONDUCT
A BIANNUAL LANGUAGE SURVEY OF
EACH OF THEIR LOCAL OFFICES THAT
SERVES THE PUBLIC. AND TO REPORT
TO COLLECT CHAR THE NUMBER OF
BILINGUAL POISE IN PUBLIC
CONTACT POSITIONS, INCLUDING THE
LANGUAGE IN WHICH THEY ARE
CERTIFIED THE NUMBER OF
BILINGUAL STAFF THAT ARE NEEDED
AND THE NUMBER AND PERCENTAGE OF
LIMITED ENGLISH PROFICIENT
CLIENTS SERVED BY THE AGENCY.
EACH AGENCY MUST COMPLETE AND
SUBMIT A LANGUAGE SURVEY EVERY
EVEN NUMBERED YEAR. BY OCTOBER
1ST UNLESS IT PETITIONS FOR AND
IS GRANTED AN EXEMPTION. SO THE
NEXT ONE SHOULD BE. SUBMITTED
THIS OCTOBER. IF AN AGENCY
PARTICIPATES IN THE SURVEY AND
FINDS THAT MEETS THE 5% SENT 5%
THRESHOLD, IT MUST IDENTIFY HOW
IT IS COMPLYING WITH THE ACT. IF
THE AGENCY IS FOUND TO HAVE
POSITION OR WRITTEN DOCUMENT
DEFICIENCIES AND MUST SUBMIT AN
IMPLEMENTATION PLAN. UM. BY
OCTOBER. 1ST OF THE FOLLOWING
ODD NUMBERED YEAR TO CORRECT THE
DEFICIENCY. IT'S IMPORTANT TO
NOTE THAT THE SERVICE PROVISION
THRESHOLD REQUIRED BY THE TIME
ONLY EDITORIALLY BY BILINGUAL
SERVICES ACT REQUIRES THAT
MATERIALS EXPLAINING SERVICES IN
ENGLISH BE TRANSLATED INTO
LANGUAGES, SPOKEN BY A
SUBSTANTIAL NUMBER OF THE
LIMITED ENGLISH PROFICIENT SERVE
POPULATIONS. SUBSTANTIAL IS
CURRENTLY DEFINED AS 5% OF THE
POPULATION SERVED BY ANY LOCAL
OFFICE OR FACILITY OF AN AGENCY
ON A PERSON TO PERSON PUBLIC
CONTACTS AND LOCAL OFFICE.
DESPITE CURRENT STATE EFFORTS,
THE PANDEMIC HAS RECENTLY
HIGHLIGHTED ACCESS SIGNIFICANT
ACCESS AND EQUITY ISSUES,
ESPECIALLY SURROUNDING DIGITAL
ACCESS, AND THE NEED TO IMPROVE
ACCESS FOR LIMITED ENGLISH
PROFICIENT PERSONS TO VITAL
GOVERNMENT INFORMATION SERVICES.
TELL HR ARE CURRENTLY LOOKING
INTO AREAS TO HELP ADDRESS WITH
THE PANDEMIC HAS HELPED US
UNCOVER RELATED TO ACCESS AND
EQUITY ISSUES ON THIS SUBJECT
MATTER. AND WITH THAT, I'M HAPPY
TO ANSWER QUESTIONS AT THE END
OF THE PRESENTATIONS. THANK YOU
FOR THE NEXT SPEAKER. THANK YOU
CHARTING AND THE REST OF THE
COMMITTEE MEMBERS FOR HAVING ME
HERE. MY NAME IS SCOTT MORGAN.
I'M WITH THE GOVERNOR'S OFFICE
OF, UH, PLANNING AND RESEARCH. I
SERVE AS THE CHIEF DEPUTY
DIRECTOR THERE. I'M HERE TODAY
TO PROVIDE SOME HIGH LEVEL. UM
BACKGROUND AND INFORMATION ON
THE NEW OFFICE OF COMMUNITY
PARTNERSHIP AND STRATEGIC
COMMUNICATION. FIRST, I'D LIKE
TO THANK THE LEGISLATURE AND THE
GOVERNOR FOR CREATING THE NEW
OFFICE AND THE GOVERNMENT CODE
AND FUNDING IT THROUGH THIS
YEAR'S BUDGET, ONE OF THE MAIN
PREMISES OF THE NEW OFFICES TO
FORMALIZE AN INFRASTRUCTURE THAT
EMPOWERS LOCAL TRUSTED
MESSENGERS. SOME OF THE INITIAL
FUNDING AIMS TO SELECT AND
FUNDING NETWORK OF COMMUNITY
BASED ORGANIZATIONS. FAITH BASED
GROUPS, ETHNIC MEDIA AND OTHER
LOCAL TRUSTED MESSENGERS TO GET
THE WORD OUT ON A LIMITED NUMBER
OF HIGH PRIORITY STATE OUTREACH
EFFORTS. AS YOU KNOW, THE
DIVERSITY OF CALIFORNIA
DEMOGRAPHICS PROVIDES AN
OPPORTUNITY FOR US TO THINK
ABOUT HOW WE ENSURE LANGUAGE AND
COMMUNICATION ACCESS BE
LINGUISTICALLY AND CULTURALLY
APPROPRIATE. TO ACHIEVE
EQUITABLE OUTREACH. THE OFFICE
WILL FOCUS EFFORTS ON REACHING
PEOPLE WHERE THEY ARE AND IN THE
LANGUAGE THEY ARE COMFORTABLE
UTILIZING THE OFFICE WILL ALSO
LEVERAGE RESOURCES FROM THE
COVID 19 VAX 58 CAMPAIGN
COMPLEMENT THIS WORK AND INVEST
RESOURCES. TO REACH INDIVIDUALS
WITHIN GEOGRAPHIC AREAS THAT ARE
AMONG THE LEAST VACCINATED. UH
THE OFFICE WILL ALSO UTILIZE
WHAT WAS LEARNED FROM THE CENSUS
2020 COMPLETE COUNT EDUCATION
AND COMMUNITY OUTREACH EFFORTS,
PRIMARILY THAT LANGUAGE
COMMUNICATION ACCESS IS MORE
THAN JUST TRANSLATING DIRECTLY
FROM ENGLISH. THERE IS NO ONE
SIZE FITS ALL ON HOW WE APPROACH
THIS WORK. BIâU TILLY BY
UTILIZING COMMUNITY BASED
ORGANIZATIONS, FAITH BASED AND
ETHNIC MEDIA AND OTHER LOCALLY
TRUSTED MESSENGERS THAT ARE
FAMILIAR WITH THE LOCAL
POPULATIONS. CULTURAL AND
LINGUISTIC DEMOGRAPHICS. NEW
OFFICE LOOKS TO ENSURE WE ARE
MEETING BOTH THE NEEDS OF THE
COMMUNITY MEMBERS AND ENSURING
EQUITABLE ACCESS TO INFORMATION.
THIS WILL TAKE INTO ACCOUNT
UNIQUE CULTURAL NUANCES AND
DYNAMICS THAT HELP INFORMATION
RESONATE WITH DIFFERENT
AUDIENCES ACROSS THE STATE.
UTILIZING HUMAN CENTERED DESIGN
, THE OFFICE WILL AIM TO BEST
MEET PRIORITY POPULATION NEEDS.
BUILD MATERIALS, TOOLS AND
COLLATERAL INFORMATION AROUND
THE MOST APPROPRIATE LANGUAGE.
TO GET OUR MESSAGES OUT TO THE
COMMUNITIES. I'M HAPPY TO ANSWER
ANY QUESTIONS YOU MAY HAVE AND
BLENDED THERE. THANK YOU. THANK
YOU GOING TO THE COMMITTEE
QUESTIONS. MR CARILLO. THANK
YOU, MR CHAIR AND THANK YOU TO
THE PRESENTERS ON THIS VERY
IMPORTANT TOPIC. YOU KNOW WHEN,
UM THE LAST AND A HALF YEARS, I
THINK HAVE TAUGHT US A LOT ABOUT
THE SAFETY NET, UH IN
CALIFORNIA. SPECIFICALLY TO
VULNERABLE COMMUNITIES WHO MAY
NOT HAVE ACCESS TO TECHNOLOGY TO
SMART PHONES TO THE INTERNET.
THOSE THAT ARE NOT, UM READY TO
REALLY. TAKE ADVANTAGE OF ALL OF
THE OPPORTUNITIES THAT WE HAVE
ALSO PUT IN PLACE ALL OF THE
SAFETY ADDITIONAL SAFETY NET
OPPORTUNITIES THAT WE HAVE PUT
IN PLACE TO ENSURE THAT THOSE
VERY COMMUNITIES HAVE ACCESS TO
RESOURCES AMID COVID AND AMID
COVID ECONOMIC RECOVERY EFFORTS.
THERE HAVE BEEN SEVERAL SET FOR
HEARINGS THAT I HAVE CHAIRED.
WHERE I HAVE PERSONALLY HAD TO
TRANSLATE. FOR INDIVIDUALS
CALLING IN IN THE SPANISH
LANGUAGE AND, YOU KNOW, I'M VERY
FORTUNATE TO BE ABLE TO BE
BILINGUAL. AND I THINK MY
PARENTS FOR FORCING ME TO SPEAK
SPANISH AT HOME IN ENGLISH AND
AT SCHOOL, WHICH HAS SERVED ME
WELL. UM IN MY ADULT LIFE, AND
CERTAINLY IN THIS IN THIS
POSITION. BUT I ALSO YOU KNOW, I
FEEL FOR ALL THE COMMUNITIES
THAT DON'T HAVE ACCESS RIGHT AND
LANGUAGE AND CULTURAL COMPETENCY
IS SUCH AN IMPORTANT PART OF THE
WORK THAT WE DO IN GOVERNMENT.
SPANISH IS THE YOU KNOW, THE
SECOND MOST SPOKEN LANGUAGE IN
THE COUNTRY AND AROUND THE
WORLD, IF NOT THE FIRST LANGUAGE
HERE IN CALIFORNIA NOW, IN FACT,
THE CALIFORNIA CONSTITUTION IS
ORIGINALLY IN SPANISH. AND SO
IT'S INTERESTING THAT WE HAVE
THIS CONVERSATION ABOUT HOW DO
WE REQUEST ACCESS? HOW DO WE PUT
IN MORE FUNDING? HOW DO WE
CREATE SYSTEMS AND TECHNOLOGY
THAT WORKS FOR THE PEOPLE OF THE
STATE? YOU KNOW I IT'S AND
THAT'S ONLY JUST SPANISH. I
CAN'T EVEN IMAGINE EVERY OTHER
LANGUAGE ACROSS THE STATE OF
CALIFORNIA AND INDIVIDUALS
ACROSS THE STATE THAT HAVE BEEN
LEFT BEHIND. BECAUSE OF LANGUAGE
ACCESS AND MR CHAIR. YOU'VE DONE
AN INCREDIBLE JOB WITH DMV THAT
YOU WORKED ON FOR MANY YEARS TO
ENSURE THAT AT LEAST GMBH AGENCY
THAT IS MOVING FORWARD AND
PROVIDING ADDITIONAL RESOURCES
AND IN A VARIETY OF DIFFERENT
LANGUAGES. BUT WE HAVE TO DO
SOMETHING DIFFERENT AND WHETHER
IT'S THE PILOT PROGRAM, WHETHER
IT'S ADDITIONAL RESOURCES,
WHETHER IT'S ACTUALLY HOW WE
HIRE STATE STAFF. AS WELL AND
STATE EMPLOYEES TO BE ABLE TO
HAVE THE CULTURAL AND LANGUAGE
COMPETENCY THAT IS REQUIRED. FOR
US TO MEET THE NEEDS OF THE
PEOPLE OF THE STATE IS REALLY
THE DIRECTION THAT WE SHOULD BE
GOING. WE TALK A LOT ABOUT
EQUITY. WE PUT A LOT OF
POTENTIAL GOALS IN MIND. BUT THE
ACTUAL STEPS ON HOW TO GET
THERE. ARE INCREDIBLY DIFFICULT
AT TIMES AND SO AND EVEN IN
HEARINGS WHEN I ASKED
DEPARTMENTS WELL, WHAT DO YOU
NEED? WHAT DO YOU NEED TO ENSURE
THAT WE ARE ABLE TO MEET THE
VERY GOALS THAT WE'RE SITTING IN
PLACE? IT'S OFTEN DIFFICULT TO
GET THAT RESPONSE BACK. AND YOU
KNOW THE NUMBER ONE THING FOR ME
IS YOU NEED STAFF. YOU NEED
QUALIFIED INDIVIDUALS THAT ARE
COMMITTED TO PUBLIC SERVICE AND
THE WORK THAT IS REQUIRED ACROSS
MULTIPLE AGENCIES. CDD BEING THE
NUMBER ONE ISSUE. I THINK THAT
WE TALK ABOUT ENSURING THAT THE
E D D CALL LOG TIME THAT THE
DEPARTMENT THAT THE STAFF ALL
HAVE THE TRAINING NECESSARY. TO
ENSURE THAT THERE IS LANGUAGE
AND CULTURAL CONFIDENCE
COMPETENCY WHILE TRYING TO HELP
PEOPLE OUT, WILL ALSO
UNDERSTANDING THAT INDIVIDUALS
THAT HAVE BEEN WAITING IN A
QUEUE FOR HOURS RIGHT AS WE HAVE
SEEN. IN THE LAST TWO YEARS OF
COVID. THAT. THERE IS AN
UNDERSTANDING THAT THEY MAY BE
ON HOLD FOR HOURS, IF NOT DAYS,
BECAUSE THEY DON'T HAVE ACCESS
TO A SMARTPHONE. BECAUSE THEY
DON'T HAVE ACCESS TO TECHNOLOGY
AND TO THE INTERNET. AND TO KNOW
IN MY COMMUNITY, AND WE HAD
THOUSANDS AND THOUSANDS ACROSS
THE STATE. BACKLOG. UH ON E D. D
ITSELF. A MAJOR PORTION OF THAT
WAS BECAUSE FOLKS JUST DIDN'T,
UM, HAVE THE TECHNOLOGY TO BE
ABLE TO TAKE A PHOTO ON THEIR
PHONE AND SUBMIT OR DO THE
DOUBLE VERIFICATION NEEDED, AND
SO THEY WERE ON THE PHONE RIGHT
? AND THEY WANT SUPPORT, AND
THEY NEED HELP. AND IT IS OUR
JOB. TO ENSURE THAT GOVERNMENT
MAKES IT EASY. GOVERNMENT
SHOULDN'T BE MAKING IT HARDER
SHOULD BE MAKE THEY SHOULD BE.
WE SHOULD BE MAKING IT EASIER TO
ACCESS SOMETHING SUCH AS A
SAFETY NET. UM THAT IS SUPPOSED
TO BE IN PLACE FOR THIS
PARTICULAR REASON. AND SO WE'VE
WE'VE LEARNED A LOT. AUDITS IN
THE PAST. YOU KNOW, HAVE STATED
THAT DEPARTMENT LIKE E D D
CERTAINLY NEEDED TO BE UPGRADED
MANY YEARS AGO. AND SO WE'RE
TRYING TO PATCH A ROOF DURING
THE STORM. AND THERE COMES A
POINT WHERE WE JUST NEED TO
REPLACE THE ROOF. UM AND THAT'S
SOMETHING I THINK THAT WE'RE
TRYING TO MANAGE AND DEAL WITH
WHILE AT THE SAME TIME TRYING TO
REALLY CREATE OPPORTUNITIES FOR
US TO HAVE THE RIGHT TYPE OF
STAFF AND RESOURCES TO ACTUALLY
MOVE A CRITICAL AGENDA FORWARD.
THAT REALLY AND TRULY IS ABOUT
EQUITY AND LANGUAGE AND CULTURAL
ACCESS AND COMPETENCY. SO I
THINK YOU KNOW WHEN WE AS WE
MOVE FORWARD NEXT YEAR, AND MORE
HEARINGS, UM AND MORE
TRANSPARENCY AND ACCOUNTABILITY.
I THINK WE'RE ALL INTERESTED IN
KNOWING WHAT THOSE REPORTS ARE
GOING TO LOOK LIKE, RIGHT AND
ENSURING THAT THESE PILOT
PROGRAMS UM HAVE THE SUPPORT
NECESSARY TO AT THE END OF THE
DAY HELP PEOPLE AND SO THAT
THOSE ARE MY COMMENTS, MR CHAIR,
AND I THINK AS WE PUT AN IMMENSE
AMOUNT OF INVESTMENT UM, IN
THESE PROJECTS. WE ALSO WANT TO
SEE RESULTS. AND IF THINGS
AREN'T WORKING, WE WANT TO KNOW
WHY. AND HOW CAN WE FIX THEM?
THANK YOU. MR FORRESTER. I THINK
HE WAS SURE IF I COULD IF I
COULD BUILD UPON THE COMMENTS
THAT MY COLLEAGUE FROM L, A HAS
MADE IN TERMS OF THE PILOT
PROJECT, AND SHE INDICATED THAT
THE GOALS I MEAN WHAT METRICS
ARE THE YOU HAVE, OR DOES THAT
YOU PUT IN PLACE TO MEASURE
WHETHER WE ARE ACHIEVING THE
GOALS AND THE MILESTONES THAT
ARE THAT YOU'RE SEEKING. FOR THE
QUESTION. SORRY. SORRY THANK YOU
FOR THE QUESTION AGAIN. JUSTIN
HOWARD AT GOVERNMENT OPERATIONS
AGENCY, SO GIVEN THAT WE'RE IN
THE EARLY STAGES, WE HAVEN'T
FORMALIZE WHAT THE METRICS THAT
WE'RE GOING TO BE TRACKING ARE
BUT WE ARE GOING TO BE ENGAGING
THE OFFICE OF DATA AND
INNOVATION WHO HAVE A LOT OF
GOOD IDEAS SURROUNDING WHICH
DATA THAT WE MAY OR MAY NOT NEED
TO COLLECT IN THIS AREA THAT
COULD POTENTIALLY HELP US TO
IDENTIFY WHETHER OR NOT THE
PILOT IS SUCCESSFUL. GIVEN THE
ACTIONS THAT WE PUT INTO PLACE
DURING THE PILOT PROCESS, SO WE
DO HAVE THE CHIEF DATA OFFICER
OF THE STATE OF CALIFORNIA WHO
WILL BE INVOLVED IN HELPING TO
IDENTIFY THE DATA THAT WE SHOULD
BE COLLECTING ALONG THE WAY SO
THAT WE ARE GETTING INFORMATION
THAT YOU NEED AS PART OF YOUR
EVALUATION OF THE PILOT THAT
WILL BE RUNNING. IF I COULD ASK
SANTOSH THE QUESTION, THEN IF WE
WERE TO MEASURE SUCCESS IS IT?
IS IT? THE A NUMBER OF
INDIVIDUALS WHO ARE WHO ARE
BILINGUAL IN MULTIPLE LANGUAGES
, IS IT? UM NUMBER OF FORMS THAT
ARE TRANSLATED THE NUMBER OF
LANGUAGES? UM IS IT UM, WEB
ACCESS? I MEAN OR IS PROBABLY
ALL OF THE ABOVE. BUT HOW DO I
HOW DO I EVALUATE WHETHER PILOTS
WORKING OR NOT. WELL, I'M A KEEP
MY COMMENTS TO THE LARGER UM,
WHAT IS SUCCESS LOOK LIKE IN
LANGUAGE ACCESS. I KNOW THE
PILOT PROJECT HAS JUST STARTED
AND THERE ARE MANY UNKNOWNS, BUT
I THINK YOU KNOW I THINK
ASSEMBLYWOMAN CARILLO SAID IT
BEST. UM IT'S REALLY BETTER TO
REPLACE THE ROOF AND TO CONTINUE
TO PATCH AND WHEN WE LOOK AT
SOME OF THESE OBLIGATIONS THAT
WE HAVE AT THE FEDERAL LEVEL
TITLE SIX OF THE CIVIL RIGHTS
ACT AND WE LOOK AT WE OWE. UH
AND WE EVEN LOOK AT OUR OWN
STATE GOVERNMENT LAWS. 1 11 35,
WHICH IS OUR VERSION OF TITLE
SIX, RIGHT? WHAT YOU SEE THERE?
ISN'T IT A COMMITMENT TO THE
INDIVIDUAL TO PROVIDE LANGUAGE
ACCESS NOT TO HIT A CERTAIN
TRIGGER. NOT TO BE, UM, A NUMBER
OR A CERTAIN SPECIFIC POPULATION
BEING SERVED. IN FACT, WHEN YOU
LOOK AT THE REGULATIONS AT THE
FEDERAL LEVEL ON THESE, UM
OBLIGATIONS, THEY TALK ABOUT
THAT THIS FORMULAIC APPROACH TO
LANGUAGE ACCESS ACTUALLY
IMPINGES ON MEANINGFUL ACCESS.
SO THAT'S WHAT I WOULD SAY THERE
REALLY HAS TO BE MEANINGFUL
ACCESS THAT ISN'T BASED ON THESE
TRIGGERS AND NUMBERS. AND ALL OF
THESE THINGS, THEY'RE ACTUALLY
DON'T MEET SMALL LINGUISTIC
GROUPS THAT ACTUALLY DON'T MEET
THE CHANGING DEMOGRAPHICS OF
CALIFORNIA. UM I THINK IN THE
PILOT PROJECT IF I WOULD SAY
SOME THINGS THAT THE OVER
RELIANCE ON TECHNOLOGY IS NOT
GOING TO HELP. WE HAVE TURNED TO
TECHNOLOGY AS OUR GOD, AND IT IS
A FALSE GOD FOR MANY OF OUR
COMMUNITIES. UM SO LIVE.
INTERPRETATION ON THE PHONE. WE
KNOW OUR COMMUNITIES USE THE
PHONE. WE KNOW THE, UM THE
INDIGENOUS COMMUNITIES USE THE
PHONE TO GET SERVICES AND TO
REALLY BE THINKING ABOUT THAT
HOW TO PROVIDE THAT KIND OF
SERVICES FOR COMMUNITIES IN THE
PILOT PROJECT AS WELL. I MEAN, I
THINK I LEFT MY PARENTS AS IN
THE MENU AND YOU WHEN YOU WERE
SPEAKING, BUT UM AND SO I
CERTAINLY APPRECIATE THAT. LET
ME ASK THE QUESTION IN A
DIFFERENT WAY. ARE THERE ANY
DEPARTMENTS RIGHT NOW THAT DO A
GOOD JOB. THAT THAT THAT WE
COULD BUILD UPON OR AS AS MY
COLLEAGUE SAYS, IS IT JUST WE
GOT TO START FROM? START FROM
SCRATCH. I THINK WE'VE DONE A
GOOD JOB WITH EDDIE D. BUT
THAT'S BECAUSE THE LANGUAGE
ACCESS ADVOCATES CAME TOGETHER
AND SPENT A YEAR IN THE
ATTORNEYS CAME TOGETHER AND
SPENT A YEAR TO REALLY PUSH THAT
AGENCY TO DO THINGS THAT IT HAD
NOT BEEN DOING AND THERE WAS AN
AGREEMENT AND A LAWSUIT AND ALL
OF THESE THINGS THAT REALLY
BROUGHT THEM UP TO COMPLIANCE,
AND SEVERAL MANY HEARINGS, RIGHT
? AND UM, SO I THINK THAT IS A
GOOD EXAMPLE. AND IT IS A HIGH
STANDARD THAT THE STATE OF
CALIFORNIA SHOULD SHOOT FOR.
OKAY THANK YOU. I APPRECIATE
THAT. IF I CAN ASK FOR THE FOR
THE PILOT I MEAN, WHAT
DEPARTMENT IS ON THE LIST OF OR
IS THERE? ARE THEY YOUR
EVALUATING? I'M SURE RIGHT NOW.
BUT IS THERE A SHORT LIST OF
DEPARTMENTS THAT YOU'RE THAT
YOU'RE LOOKING AT TWO TO KIND OF
EXECUTE THIS PILOT? THANK YOU.
SO WE'RE REACHING OUT TO OUR OUR
FELLOW AGENCIES, AS WELL AS
LOOKING WITHIN OUR OWN AGENCY TO
IDENTIFY WHICH, LIKE BOARDS AND
COMMISSIONS THAT HOLD PUBLIC
HEARINGS, GIVEN THAT THE PILOT
IS SUPPOSED TO BE RELATED TO
PUBLIC HEARINGS THAT WOULD WORK
BEST FOR THE PILOT, SO WE WANT
TO TRY TO GET A ORGANIZATION
THAT'S ONE GOING TO BE, UM THAT
BASICALLY BUYS INTO THE WORK
THAT WE'RE DOING BECAUSE, YOU
KNOW, YOU GET THAT BY IN, YOU'RE
GONNA BE MORE SUCCESSFUL AT THE
END OF THE DAY AND THEN TWO IS
ALSO DIVERSE ENOUGH TO WHERE
THEY SERVE A PRETTY WIDE GROUP
OF INDIVIDUALS SO THAT WE'RE NOT
JUST UNFORTUNATELY, LEAVING OUT
ANY ISSUES THAT MIGHT POP UP
BECAUSE WE WANT TO IDENTIFY THE
BARRIERS AND OTHER THINGS SO
THAT WE CAN HOPE, HOPEFULLY
CORRECT THEM AND PUT IN PLACE
RECOMMENDATIONS AND BEST
PRACTICES. FOR OTHER DEPARTMENTS
TO ULTIMATELY UTILIZED DOWN,
SURE, BUT THE GOAL IS FOR ALL
AGENCIES TO BUY IN, RIGHT, IT'S
NOT CORRECT. THAT'S NOT JUST
PICK ONE AGENCY THAT IS WILLING
TO DO IT THE CASE THAT WE DO
MORE THAN ONE I JUST DON'T KNOW
YET BECAUSE WE HAVEN'T GOTTEN
THAT FAR. AND SO WE COULD BE
DOING MULTIPLE BOARDS OR
COMMISSIONS THROUGHOUT STATE
GOVERNMENT. IT JUST DEPENDS.
THANK YOU AND TO THE OFFICE OF
COMMUNITY PARTNERSHIPS AND
STRATEGIC COMMUNICATIONS. IT'S
THE 65 MILLION. THAT IS, AS DOES
BEING ALLOCATED TO THESE
COMMUNITY PARTNERS. IS THERE A
LIST THAT YOU'RE GOING TO
PROVIDE A WHERE THOSE FUNDS GO
TO WHICH ORGANIZATIONS AND WHAT
THEY'VE DONE? YEAH, WELL, WE'LL
BE TRACKING ALL THE FUNDING
GOING GOING OUT TO THE DIFFERENT
COMMUNITY BASED ORGANIZATIONS
THROUGH AND PARTLY THAT WILL
JUST BE THROUGH THE PROCUREMENT
PROCESS AND HAVING ATTRACT THOSE
ONES ANYWAYS, BUT YES, WE CAN
PROVIDE THAT IF YOU COULD
PROVIDE ME WITH WITH WITH THE
LIST OF ORGANIZATIONS AND GROUPS
THAT YOU'RE FUNDING I APPRECIATE
THAT WOULD BE GREAT. CURRENTLY
WE'RE NOT FINDING ANY WE CAN
MOVE FORWARD COMING FORWARD. WE
CAN CERTAINLY DO THAT WAY.
CERTAINLY APPRECIATE IT. THANK
YOU. THANKS I APPRECIATE, UM,
JUST TO FOLLOW UP ON BOTH OTHER
COMMENTS. I TOTALLY AGREE WITH
YOU FINDING AN AGENCY THAT'S
BROUGHT IN. SO I TOTALLY AGREE
THAT WE HAVE TO FIND AN AGENCY
THAT'S WILLING TO DO IT. HAVING
SAID THAT? I THINK WE DO NEED TO
HAVE SOME FOCUS ON THE AGENCIES
THAT SERVE THE MOST CUSTOMERS.
OBVIOUSLY. FOR US AS LEGISLATORS
. E D D D M V COME TO MIND
BECAUSE THOSE ARE THE CALLS THAT
WE GET SMART CONSTITUENTS WHO
WHO NEED HELP WITH THOSE
AGENCIES, BUT ALSO UM UH, MR UM
SANTANA ALSO ALSO MENTIONED
MEDICAL CAL FRESH. HOW WORKS.
OBVIOUSLY, THESE POPULATIONS ARE
SMALLER. BUT AGAIN WHEN YOU HAVE
YOUR POPULATIONS THAT REALLY
NEED OUR HELP THE MOST I THINK
WE'RE DOING THEM A DISSERVICE IF
WE REALLY DON'T DO EVERYTHING WE
CAN TO SERVE THEM. SO I REALLY
WOULD LEAST PUT THOSE AGENCIES
AT THE TOP. OF THE LISTS. I
THINK IT IS IMPORTANT NOT NOT SO
MUCH. I THINK IT'S IMPORTANT TO
HAVE METRICS. I THINK IT'S
IMPORTANT TO RECOGNIZE WHERE WE
WANT TO GO. AND WHERE WE WHERE
WE NEED TO GO AS A AS A STATE
WHEN WE HAVE OVER 40% OF OUR
POPULATION, SPEAKING A LANGUAGE
OTHER THAN ENGLISH AT HOME, I
THINK I'M LOOKING AT THE THREE
OF US, AND WE'RE ALL NODDING OUR
HEADS THAT THIS IS HOW HOW WE
GREW UP WHERE WE SPEAK LANGUAGES
OTHER THAN ENGLISH AT HOME. IT'S
NOT NOT UNCOMMON, AND SO, UM AND
I THINK IT IS VERY, VERY
IMPORTANT IF I MIGHT JUST ADD TO
YOUR COMMENT SECRETARY TONG AND
SECRETARY OF AGENCY OBVIOUSLY
THIS IS A VERY PASSIONATE ISSUE
FOR HER AS WELL. SHE GREW UP AS
ENGLISH LANGUAGE AND CAME
THROUGH STATE GOVERNMENT TO
WHERE SHE IS NOW SO I THINK SHE
WHOLEHEARTEDLY AGREES WITH THE
COMMENTS. YOU JUST ABSOLUTELY.
WE KNOW SECRETARY TALKING VERY
WELL WITH OF THOSE COMMENTS.
IT'S LIKE SO I GUESS I WOULD
JUST GO BACK TO, UM MR UM
SANTANA, AND JUST ASK, UH, CAN
YOU TALK ABOUT WHAT YOU SEE AS
SOME OF THE BIGGEST HURDLES
RIGHT NOW WITHIN STATE
GOVERNMENT AS WELL AS WHAT ARE
SOME OF THE BIGGEST CHALLENGES
TO SCALABILITY? BECAUSE IS, UM
YOU KNOW, LIKE YOU LIKE YOU
SAID. THERE ARE DIFFERENT PLACES
WHERE WE'VE WE'VE DONE OKAY. BUT
WHAT? WHAT ARE SOME OF THE WHAT
ARE SOME OF THE HURDLES? HMM.
THAT'S A REALLY BIG QUESTION.
AND, UM I WOULD ASK THAT I GET
BACK TO YOU ABOUT THAT BECAUSE
WE ARE WORKING WITH LANGUAGE
ACCESS ADVOCATES ACROSS THE
STATE WHO DO VARIOUS THINGS AND
MEET WITH VARIOUS POPULATIONS,
SO WE'RE HAPPY TO PROVIDE YOUR
STAFF WITH THAT INFORMATION.
ABSOLUTELY AND I THINK IT JUST
AS YOU THINK ABOUT SCALABILITY
BECAUSE I THINK WHAT'S KEY IS WE
WANT TO HAVE SOLUTIONS. THAT WE
CAN IMPLEMENT THAT WE CAN
IMPLEMENT. UM, YOU KNOW, WITHIN
REASON DOESN'T HAVE TO BE
OVERNIGHT BUT WITHIN REASON
GOING BACK TO OUR CHAIRS COMING
FROM L A, UM YOU KNOW, WE ASK IF
WE'RE ASKING EMPLOYEES IN THE
STATE TO DO SOMETHING THEY
SHOULD REALLY BE COMPENSATED
FOR. THIS IS A SKILL. THIS IS
NOT SOMETHING THAT'S JUST
ADDITIVE OR THAT WE SHOULD BE
PAYING FOR. THIS SHOULD REALLY
BE. PART OF OUR HUMAN RESOURCES
THAT SHOULD BE PART OF OUR JOB
CALLS THAT SHOULD BE REALLY UM,
YOU KNOW, THERE SHOULD BE
TESTING ALL THAT ALL THOSE SORT
OF ITEMS. TO REALLY ENSURE THAT,
UM, THIS IS THIS IS A SKILL THAT
YOU KNOW, REQUIRES COMPENSATION.
HAVING SAID THAT. I THINK WE
ALSO DON'T NEED TO GO TO
OVERKILL. WHERE? I DON'T THINK
YOU NEED A SPANISH PROFESSOR TO
BE DOING TRANSLATION FOR THE
GENERAL PUBLIC. HMM. I DON'T
KNOW THAT. UH YOU KNOW, YOU NEED
TO HAVE SOMEONE WHO IS
COMPLETELY CAN READ AND WRITE IN
THE LANGUAGE JUST TO BE ABLE TO
TRANSLATE. SO I THINK I THINK
IT'S REALLY UNDERSTANDING THAT
WE HAVE A DIVERSE STATE. I'M
SURE WE HAVE A DIVERSE AND I
KNOW WE HAVE A DIVERSE
WORKFORCE. AND LET'S TRY TO TAKE
ADVANTAGE OF THAT, UM AND REALLY
SORT OF TRYING TO EMPOWER THEM
TO GET THEM COMFORTABLE WITH.
PROVIDING THIS. THIS SERVICE BUT
ALSO MAKING SURE THAT WE'RE
PROPERLY RECOGNIZING THEM AND
ALSO COMPOSING THEM. I MEAN,
THAT WAS TALKING TO OUR CHIEF
CONSULTANT AND HE REMINDED ME I
THINK OF ONE OF OUR SUB FOUR
HEARINGS WERE OUR CHAIR HAD TO,
UM, CHAIR AND THEN TRANSLATED
THE SAME TIME. AND SO EVEN IN
OUR OWN HEARINGS, WE HAVE OUR
CHALLENGES IN THE LEGISLATURE.
RIGHT? SO WE'RE NOT SAYING THAT
WE'RE PERFECT AS WELL. I KNOW.
IN MY HOMETOWN OF SAN FRANCISCO,
THERE'S A LOT MORE TRANSLATION
SERVICES PROVIDED IN PUBLIC
COMMENT IN OUR IN OUR CITY HALL
IN OUR CITY AGENCIES THAT I SEE
HERE AT THE STATE. I THINK
THAT'S AND EVEN THERE IN OUR
CITY. IT'S NOT. IT'S NOT ENOUGH
. IT'S NOT. IT'S NOT ADEQUATE.
IT'S NOT ACCURATE. THAT'S NOT
ADEQUATE AND ACCURATE. IT'S NOT
ADEQUATE. IT'S NOT ENOUGH, AND
WE STILL NEED TO. DEFINITELY DO
MORE. SO UM, WE REALLY
APPRECIATE YOU COMING FORWARD.
WE REALLY WANT TO WORK WITH YOU
. WE HAVE THE SAME PHILOSOPHY. I
THINK WE COULD. WE ALL KNOW
WHERE THE PROBLEMS ARE, AND WE
COULD CRITIQUE IT TO DEATH. WHAT
WE WANT TO DO IS REALLY BE ABLE
TO TAKE YOUR PILOT. SEE THE
SOLUTIONS. FIGURE OUT HOW WE CAN
GET MORE AGENCIES TO BUY INTO
THE SOLUTIONS AND REALLY GROW
THIS THROUGHOUT THE STATE. I
KNOW OUR WORKFORCE IS A PRETTY
GOOD REFLECTION OF WHAT OUR
STATE LOOKS LIKE. AND I IMAGINE
IF YOU START LOOKING AT WHAT
THEIR LANGUAGE SKILLS ARE, I
THINK WE'RE GOING TO GET A
PRETTY GOOD REFLECTION THERE AS
WELL. I THINK IT'S REALLY ABOUT
LIKE, HOW DO WE HOW DO WE I
THINK THOSE THINK THOSE TWO
ITEMS UP NOT SEEING ANY OTHER
COMMENTS FROM MY LEGISLATIVE
COLLEAGUES WILL GO TO WELL,
THANK THE PANELISTS. THANK YOU
VERY MUCH, AND GO TO ANY PUBLIC
COMMENT ANY PUBLIC COMMENT ON
THIS ITEM IN THE ROOM? OKAY SEE
NO PROBLEM COMING IN THE ROOM.
ANY PUBLIC COMMENT ON THE PHONE
LINE? OPERATOR, ARE YOU THERE?
YES, THANK YOU. AND LADIES AND
GENTLEMEN, IF YOU WISH TO
PROVIDE COMMENT, YOU MAY PRESS
ONE AND THEN ZERO AT THIS TIME.
AND OUR FIRST COMMENT COMES FROM
LINE 3 90. YOUR LINE IS OPEN.
PLEASE GO AHEAD. GOOD AFTERNOON
WIND AWAY WITH WESTERN CENTER
ONLINE POVERTY REGARDING ISSUE
ONE. IT'S GREAT THAT THE STATE
HAS ROBUST RESERVES AND WOULD
NOTE THAT THE CURRENT BUDGET DID
NOT INCREASE THE SAFETY NET
RESERVE CONSIDERING THE
LEGISLATURE'S LEADERSHIP AND
INVESTMENT IN COW WORKS AND
MEDICAL, IT IS APPROPRIATE TO
MAINTAIN THOSE PRIORITIES BY
INCREASING THE SAFETY NET
RESERVE. RELATED TO ISSUE TWO.
WE APPRECIATE THE FOCUS ON
LANGUAGE ACCESS, WHILE THE
DYMALLY ALATORRE ACT IS
IMPORTANT, IT'S BEEN NEARLY 50
YEARS SINCE IT WAS ENACTED AND
HAS LIMITATIONS. AS THE ANALYSIS
NOTES. WE ALIGN OUR COMMENTS
WITH CHINESE FOR AFFIRMATIVE
ACTION AND RECOMMEND LOOKING
BEYOND THE ACT'S MANDATES AND
TAKING STOCK OF ALL EXISTING
LANGUAGE ACCESS LAWS, INCLUDING
FEDERAL AND STATE. ANTI
DISCRIMINATION LAWS AND REQUIRE
AT A MINIMUM OF STATE AND LOCAL
AGENCIES AND THEIR CONTRACTORS
FOLLOW THESE LAWS AND PROVIDE
MANDATED SERVICES. THANK YOU.
THANK YOU. NEXT SPEAKER 3 84.
THANK YOU. THANK YOU. MY NAME IS
MARTY, A MOTO FAMILY MEMBER OF
AN ADULT WITH DEVELOPMENT
DISABILITIES. ALSO CITY CAN TELL
APPOINTED DISABILITY COMMUNITY
ACTION NETWORK JUST WANT TO
THANK MR TING AND THE COMMITTEE
MEMBERS FOR DOING THIS TEARING,
UM, GOING TO FOCUS IN ON ITEM
NUMBER TWO ON LANGUAGE, ACCESS
AND REALLY APPRECIATE THE
DIRECTION THAT MR KING US TERROR
OUR PROTEIN THIS AND ALSO WANT
TO THANK THE PANEL, ESPECIALLY
KAREEM. UH SANTANA, FOR YOU KNOW
, RAISING THE ISSUES THAT ARE
REALLY CRITICAL TO OUR
COMMUNITIES. I HOPE THAT THE
SUBCOMMITTEE WILL LOOK AT UM AND
HOW THIS IMPACTS PEOPLE WITH
DISABILITIES, DEVELOPMENTAL
DISABILITIES. ALSO PEOPLE, UM IN
THE DEAF COMMUNITY AND WOULD
URGE THE SUBCOMMITTEE TO MAKE
SURE THAT HOW AMERICAN SIGN
LANGUAGE PEOPLE WHO NEEDED A SL
WOULD FIT INTO THIS AND URGE THE
SUBCOMMITTEE NORTH FOR THE
DEPARTMENT TO WORK WITH THE
DEVELOPMENT DEPARTMENT OF
DEVELOPMENT OF SERVICES REGIONAL
STANDARDS. DEPARTMENT OF AGING
DEPARTMENT OF SOCIAL SERVICES
DONE ON ON HELPING TO EXPAND
THIS EFFORT. THANKS AGAIN. THANK
YOU. EXCELLENT POINTS. THANK
YOU. LINE 3 88. YOUR LINE IS
OPEN. PLEASE GO AHEAD. GOOD
AFTERNOON. ASSEMBLYMEMBER'S MY
NAME IS BASICALLY I AM WITH
ASIAN AMERICANS. ADVANCING
JUSTICE CALIFORNIA IS A
PARTNERSHIP BETWEEN
ADVANCINGJUSTICE, SOUTHERN
CALIFORNIA AND ADVANCINGJUSTICE
ASIAN LAW CAUCUS SPACE IN SAN
FRANCISCO. THANK YOU SO MUCH FOR
YOUR COMMITMENT TO EXAMINE AND
ADDRESS CURRENT LANGUAGE ACCESS
CHALLENGES IN GOVERNMENTAL
SERVICES. STUDIES HAVE SHOWN
THAT 77% OF ASIAN AMERICANS
SPOKEN LANGUAGE OTHER THAN
ENGLISH AT HOME. AND ASIAN
AMERICANS HAVE THE HIGHEST RATES
OF LIMITED ENGLISH PROFESSIONS
PROFICIENCY AT A RATE OF 35%
PEOPLE ARE LIMITED ENGLISH
PROFICIENCY OFTEN HAVE LIMITED
ACCESS TO ALREADY HEALTHCARE, UM
, SUCH AS A SIGNIFICANT BARRIER
TO APPLY FOR MEDICAL. UM JUST
RECENTLY, MY ORGANIZATION
INVITED A NON ENGLISH SPEAKING
WITNESS TO TESTIFY IN A POLICY
RELATED TO ENGAGING POLITICALLY
TESTIFYING A POLICY COMMITTEE
HEARING ON THE PHONE.
UNFORTUNATELY NEITHER PEOPLE IN
THE COMMITTEE ROOM OR THE PHONE
OPERATOR LATER SPOKE WITH
WITNESSES. LANGUAGE UM NO IN
LANGUAGE INSTRUCTIONS WERE
PROVIDED. UM SO EVENTUALLY SHE
MISSED THE OPPORTUNITY TO
TESTIFY EVEN THOUGH SHE WAS ON
THE PHONE THE WHOLE TIME. UM WE
ALSO HAVE ANOTHER ANECDOTAL
START STORY EXPERIENCE THAT OUR
PROGRAM ATTORNEYS HAVE HAD CASES
WHERE THEY'RE EATING CLIENTS,
MISSING CRITICAL DEADLINES
BECAUSE NOTICES WERE SENT TO OUR
CLIENTS IN ENGLISH. UM AND THEY
WRITE AND READ. UM, ME AN, UH,
BURMESE ARE TOTALLY STEPPED IN
AND WROTE BACK TO EDDIE TO
EXPLAIN THE SITUATION EVENTUALLY
GOT HER CASE WE OPEN IN TERMS OF
ADDRESSING LANGUAGE. THE
CHALLENGES. I WOULD LOVE TO
HIGHLIGHT THE IMPORTANCE OF FOR
THE STATE TO AVOID USING ANY
DIGITAL TRANSLATION TOOLS SUCH
AS GOOGLE TRANSLATE AND THAT THE
STATE SHOULD SET A CLEAR STANCE
STANDARDS ON INTERPRETATION
SERVICES. SUCH AS PROVIDING A
MINIMUM APPROVED BANK OF
INTERPRETERS AND TRANSLATORS ARE
PROVED TO CONTRACT WITH THE
STATE. WE SHOULD ALSO RAISE THE
FLOOR AND LANGUAGE ACCESS
COMPLIANCE ACROSS STATE AGENCIES
RATHER THAN HAVING TO PUSH FOR
COMPLIANCE AGENCY BY AGENCY AND
LASTLY PROVIDES AGENCIES WITH
RESOURCES TO COME INTO
COMPLIANCE, INCLUDING BEST
PRACTICES POLICY. PROTOCOL
PROTOCOLS AND TRAINING. THANK
YOU SO MUCH FOR YOUR TIME AND
AGAIN, YOUR COMMITMENT TO
ADDRESS LANGUAGE FACT LESS
CHALLENGES IN THE STATES. THANK
YOU. MINE 3 91 AIRLINE IS OPEN.
PLEASE GO AHEAD. GOOD AFTERNOON
. MY NAME IS DANIEL CHERYL AND
THE LEGISLATIVE ADVOCATE WITH S
E I U LOCAL 1000 WANTED TO THINK
THE CHAIR AND MEMBERS FOR THE
DYNAMIC CONVERSATION ON LANGUAGE
ACCESS THIS AFTERNOON AND REALLY
THINK ASSEMBLYMEMBER'S CARILLO
IN REGARDS TO THE COMMENT ABOUT
PROPER STAFFING AT KEY AGENCIES
SUCH AS E, D, D AND D. M V. UM
ESPECIALLY IN THE CONTEXT OF
HEIGHTENED RECESSION. WE UM
FOLLOWING THIS CLOSELY AND FOR
OUR MEMBERS WHO PARTICULARLY E D
D WORKED LONG HOURS DURING THE
PAST RECESSION, UM, AND HAVE AS
A POINT OF THE PANELISTS PENSION
BECOME A PLACE OF EXEMPLARY
LANGUAGE ACCESS. WE REALLY
APPRECIATE THE CONVERSATION
TODAY. AND LOOK FORWARD TO
SEEING A FUTURE ACTIONS THROUGH
THE BUDGET AND OTHER LEGISLATIVE
AVENUES. THANK YOU. 93 93. YOUR
LINE IS OPEN. PLEASE GO AHEAD.
HI GOOD AFTERNOON.
ASSEMBLYMEMBER'S MY NAME IS
OLIVIA YANG, EXECUTIVE DIRECTOR
OF THE CALIFORNIA COMMISSION ON
ASIAN AND PACIFIC UNDER AMERICAN
AFFAIRS. WE ARE CALLING IN
SUPPORT OF CALIFORNIA WORKING TO
EXPAND LANGUAGE, ACCESS AND
JUSTICE TO MEET THE NEEDS OF
CALIFORNIANS WITH LIMITED
ENGLISH. WE ASK FOR YOUR
CONTINUED SUPPORT TO ENSURE THAT
SMALLER LANGUAGE GROUPS,
INCLUDING SMALLER ASIAN AMERICAN
LANGUAGE, FOOD PACIFIC ISLANDER
LANGUAGE GROUP AND ALSO
INDIGENOUS LANGUAGE GROUPS ARE
PRIORITIZE TO ENSURE THAT ALL OF
OUR COMMUNITIES HAVE PASTORS TO
THE BASIC CARE SERVICES AND
RESOURCES THAT THEY THANK YOU SO
MUCH FOR YOUR TIME. MIND. 3 92.
YOUR LINE IS OPEN. PLEASE GO
AHEAD. LINE 3 93. OKAY I'M SORRY
. UH IT LOOKS LIKE WE LOST OUR
LAST PERSON IN Q AND WE HAVE NO
FURTHER COMMENTS IN CUBA AT THIS
TIME. OKAY, THANK YOU. JUST
FOREVER. WHOEVER MAY HAVE BEEN
LOST, THEY CAN FEEL FREE TO
SUBMIT COMMENTS IN WRITING TO
OUR BUDGET SUB SIX COMMITTEE.
THANK YOU SO MUCH. WE WILL
ADJOURN THIS HEARING. THANK YOU.