GOOD AFTERNOON AND
WELCOME TO OUR ASSEMBLY BUDGET
SUBCOMMITTEE FOR THE GOVERNOR'S
BUDGET MAY REVISION. THIS
HEARING IS TAKING PLACE IN ROOM
444. WE WILL BE ACCEPTING PUBLIC
COMMENT AT THE END OF THE
HEARING, BOTH IN THE HEARING
ROOM AND ON THE PHONE. THE PHONE
NUMBER NEAR THE PHONE NUMBER TO
CONNECT IS ON THE COMMITTEE
WEBSITE AND SHOULD BE DISPLACED
ON THE SCREEN. IF YOU'RE
WATCHING THIS HEARING ONLINE THE
PHONE NUMBER IS TOLL FREE 877
6928957 WITH THE PUBLIC ACCESS
CODE 1315444. IF YOU ENCOUNTER
ANY PROBLEMS, PLEASE CONTACT THE
ASSEMBLY BUDGET COMMITTEE AT
916319209 AND A STAFF MEMBER
WILL ASSIST YOU WE WOULD BE WE
ENCOURAGE THE PUBLIC TO PROVIDE
WRITTEN TESTIMONY BEFORE THE
HEARING. PLEASE SEND YOUR
WRITTEN TESTIMONY TO BUDGETS OF
FOUR AT A SM DOT CA.GOV. THIS IS
MUST SEE TV ON MAY REVISE AND I
WILL SAY IT IS HOT IN ROOM 444.
SO IF WHOEVER IS WATCHING KEN,
PUMP UP THE A C OR COME HELP US.
THAT WOULD BE REALLY GREAT.
WE'RE ALL GONNA FALL ASLEEP VERY
SOON. WITH THAT. ROLL CALL,
PLEASE. CHECK CAREER HERE.
ASSEMBLYMEMBER'S EARLY
ASSEMBLYMEMBER'S PATTERSON.
ASSEMBLYMEMBER'S RAVE
ASSEMBLYMEMBER'S WICKS. OKAY
LET'S BEGIN WITH THE MAJOR
PROPOSALS IN THE HOUSING
HOMELESSNESS AREA. LET'S UH
BEGIN. PLEASE COME UP. COME ON
DOWN. ESTARÁ TALENT AND CUARTO.
I TRIED TRY MY BEST WITH THE
ACCENT. PLEASE BEGIN WHEN YOU'RE
READY. THANK YOU. GOOD AFTERNOON
ANDREW MARCH, DEPARTMENT OF
FINANCE. UM SO I'LL PRESENT TO
YOU ON THE HOUSING PROPOSALS AND
MY COLLEAGUES WILL PRESENT ON
THE HOMELESSNESS PROPOSALS. UM
SO IN ADDITION TO THE $350
MILLION IN GENERAL FUND
SOLUTIONS PROPOSED IN THE
GOVERNOR'S BUDGET REVISION
PROPOSES A $345 MILLION REFERRAL
AND AT $17.5 MILLION REDUCTION
TO HELP ADDRESS THE $32 BILLION
BUDGET SHORTFALL. SPECIFICALLY
THE MIRROR VISION PROPOSES TO
REVERT $345 MILLION GENERAL FUND
OF THE $500 MILLION.01 TIME
GENERAL FUND ORIGINALLY
APPROPRIATED IN THE 2021 BUDGET
ACT. FOR THEIR FORECLOSURE
INTERVENTION AND HOUSING
PRESERVATION PROGRAM ALSO KNOWN
AS FIP, UH, INAPPROPRIATE THAT
$345 MILLION OVER THE NEXT FOUR
FISCAL YEARS, SO IT MAINTAINS
THE $500 MILLION FOR THE PROGRAM
JUST SPREADS OUT THAT FUNDING
OVER THE MULTI YEAR ADDITIONALLY
, UM THE MAYOR REVISION
PROPOSALS TO REVERT $17.5
MILLION OF $25 MILLION THAT WAS
ORIGINALLY APPROPRIATED IN THE
2000 BUDGET ACT FOR THE DOWNTOWN
REBOUND PROGRAM. ADDITIONALLY
THE MAYOR VISION PROPOSES TO RE
APPROPRIATE FUNDING PROVIDED FOR
THE EMERGENCY RENTAL ASSISTANCE
PROGRAM AND THE 2021 BUDGET ACT
. THIS WILL ALLOW THE DEPARTMENT
OF HOUSING AND COMMUNITY
DEVELOPMENT TO COMPLETE
ADMINISTRATIVE TASKS TO CLOSE
OUT THE PROGRAM. ADDITIONALLY
FOR THE CIVIL RIGHTS DEPARTMENT,
THE MAYOR VISION PROPOSES
$375,000 FEDERAL TRUST FUND
ANNUALLY FOR THREE YEARS FOR CRD
TO IMPLEMENT A FEDERAL GRANT. TO
EXPAND THE SERVICES OFFERED BY
THE CALIFORNIA VERSUS HATE
HOTLINE BY PARTNERING WITH
COMMUNITY BASED ORGANIZATIONS.
ADDITIONALLY THE MAYOR VISION
PROPOSES TRAILER BILL LANGUAGE
TO MAKE CLARIFYING CHANGES TO
THE COMMISSION ON THE STATE OF
HATE AT THE CIVIL RIGHTS
DEPARTMENT. THAT CONCLUDES THE
HOUSING PROPOSALS IN THE MIRROR
VISION. ALL RIGHT. TOÀN FROM
DEPARTMENT FINANCE. GOOD
AFTERNOON, MADAM CHAIR AND THE
MEMBER SINCE 2007 19 TO STAY
AHEAD INVESTED OVER $17 BILLION
TO ASSIST GLOBAL GOVERNMENT IN
ADDRESSING HOMELESSNESS, UM,
CONSISTENT WITH THE GOVERNOR
BUDGETS. THE MAIN REVISION
CONTINUE TO INCLUDE 3.7 BILLION
IN FUNDING FOR HOMELESSNESS
PROGRAM IN 2023 24. IN ADDITION
, THERE ARE ADMINISTRATION
CONTINUE TO BELIEVE IN THE
IMPORTANCE OF HOMELESS OUTCOME.
LINK ACCOUNTABILITY. THE
ADMINISTRATION BELIEVES A STREET
POWER FRAMEWORK SHOULD CONSIST
OF NUMBER ONE, CREATING
MECHANISM FOR LOCAL EFFORT TO
ADDRESS HOMELESSNESS. NUMBER TWO
INCREASING REGIONAL COORDINATION
ON HOMELESSNESS. SOLUTION UH AND
NUMBER THREE HOLDING LOCAL
GOVERNMENT ACCOUNTABLE FOR THE
RESPECTIVE ROLE IN ACHIEVING
OUTCOME THAT LEAD ON HOUSE AN
UNSHELTERED PERSON TO ACCESS
AFFORDABLE PERMANENT HOUSING AND
SERVICES. THE ADMINISTRATION IS
PREPARED TO WORK WITH THE
LEGISLATURE OVER THE COMING
WEEKS TO ON THAT SITUATION TO
ENACT HOMELESSNESS OUTCOME
ACCOUNTABILITY FRAMEWORK. WOULD
THAT BE AND SAY, OPEN TO ANY
QUESTIONS OR COMMENTS THAT THE
MEMBER MAY HAVE MORALES WITH THE
LEGISLATIVE ANALYST'S OFFICE. WE
HAVE COMMENTS REGARDING THE
REDUCTIONS THAT ARE SUBJECT TO A
TRIGGER RESTORATION FROM JANUARY
THAT ARE MAINTAINED IN THE
MIRROR VISION AS WELL AS THE NEW
PROPOSALS FOR THE DELAY. GIVEN
THE CONDITION OF THE STATE
BUDGET, WE DO NOT ANTICIPATE
THAT ANY OF THE FUNDING SUBJECT
TO RESTORATION BY TRIGGERS WOULD
BE ABLE TO BE BROUGHT BACK GIVEN
THE CONDITION OF THE BUDGET,
ADDITIONALLY, TO THE EXTENT THAT
THE BUDGET PROBLEM PERSISTS,
WHICH WE ANTICIPATE IS LIKELY
THE LEGISLATURE WILL HAVE TO
REVISIT ANY DELAYS IN FUTURE
YEARS AND YOU SPENDINGS ONCE
AGAIN. UM MOVING ON TO COMMENTS
REGARDING THE HOMELESSNESS,
ACCOUNTABILITY. TBL ONE MOMENT.
CAN YOU ALL HEAR IN THE BACK?
CAN YOU GUYS HERE? IT'S A LITTLE
LOW, OKAY, I CAN SPEAK A LITTLE
BIT MORE. REGARDING THE
HOMELESSNESS, ACCOUNTABILITY,
TBL. THERE ARE THE
ADMINISTRATION INDICATED THERE
WAS INTENT LANGUAGE BUT FORWARD
IN FEBRUARY OF 2023 THAT
INDICATED THE ADMINISTRATION'S
INTEREST IN ENHANCING
HOMELESSNESS ACCOUNTABILITY.
HOWEVER THERE WAS NO REVISED
LANGUAGE AS PART OF THE REVISION
TO IMPLEMENT THAT INTENT
LANGUAGE AND SO WE HAVE
SUBMITTED COMMENTS TO YOUR STAFF
INDICATES SOME QUESTIONS AND
LEGISLATURA MIGHT WANT TO ASK
THE ADMINISTRATION. AS THE WAY
TO MOVE FORWARD TO ENHANCE
ACCOUNTABILITY. GIVEN WHAT WE
UNDERSTAND ARE THE
ADMINISTRATION'S GOALS, GIVEN
THE INTENT AS WELL AS COMMENTS
AND SOME OF THE RECENT
LEGISLATIVE OVERSIGHT HEARINGS,
THOSE REALLY ALIGNED WITH THE
COMMENTS MADE JUST NOW BY THE
ADMINISTRATION, LARGELY ASKING
WHAT TYPE OF PROGRAMS WOULD BE
INCLUDED AS PART OF THIS
ENHANCED OVERSIGHT. AND WHAT ARE
THE FUND SOURCES? ARE WE GOING
BEYOND JUST HAP TO OTHER STATE,
FEDERAL AND POTENTIALLY LOCAL
FUNDS AS WELL? WHAT ARE THE
ROLES OF LOCAL GOVERNMENTS? SO
AS I MENTIONED, THOSE ARE WITH
YOUR STAFF, BUT GENERALLY WE
WOULD NOTE THAT THE STATE HAS
TAKEN STEPS IN RECENT YEARS
THROUGH THE HAPPY PROGRAM TO
ENHANCE OVERSIGHT ON AN
INCREMENTAL LEVEL YEAR AFTER
YEAR. MOST RECENTLY THE
IMPLEMENTATION OF LOCAL ACTION
PLANS AS PART OF THE THIRD ROUND
OF HALF HAS BEEN A MAJOR
UNDERTAKING AND SO EXTENDING
ENHANCED OVERSIGHT TO OTHER
OTHER PROGRAMS, INCLUDING
FEDERAL, LOCAL AND OTHER STATE
PROGRAMS, AS WELL AS REQUIRING
REGIONAL CAPITAL ABERRATION
WOULD BE A MAJOR EXPANSION OF
CURRENT PRACTICE. AND SO WE
WOULD JUST ASK THE LEGISLATURE
TO CONSIDER STEPS TO ENSURE
STATE AND LOCAL GOVERNMENTS ARE
SUCCESSFUL IN THAT PROCESS, AS
WE CONTINUE THAT EVOLUTION SO,
FOR EXAMPLE, THE LEGISLATURE
COULD CONSIDER PILOTING THIS
ENHANCED OVERSIGHT TO SELECT
COMMUNITIES WHERE THERE ARE THE
LARGEST NUMBER OF PEOPLE
EXPERIENCING HOMELESSNESS TO
ENSURE THAT THE STATE CAN
PROVIDE ADEQUATE GUIDANCE AND
INTENSIVE SUPPORT TO THOSE
COMMUNITIES, ENSURING THE STATE
IS LEVERAGING ITS RESOURCES MOST
EFFECTIVELY AND ALSO SUPPORTING
COMMUNITIES WHERE THERE ARE THE
LARGEST NUMBER OF PEOPLE IN
NEED. AND SO WITH THAT HAPPY TO
TAKE ANY QUESTIONS, THANK YOU.
THANK YOU. LET'S BEGIN WITH A
COUPLE OF QUESTIONS THAT I HAVE
ON THE FORECLOSURE INTERVENTION
PROGRAM. HOW MUCH MONEY HAS BEEN
EXPENDED SINCE 2021 WILL PUSHING
OUT THE FUNDING COST DELAYS WITH
THE IMPLEMENTATION OF THE
PROGRAM. YES ANDREW MARCH
DEPARTMENT OF FINANCE AS SO TO
DATE CLOSER TO THE MIC, PLEASE.
SO TO DATE, ONLY A SMALL PORTION
OF THE FUNDING HAS GONE OUT.
JUST USED FOR STAFF COSTS FOR
HCG IN ORDER TO IMPLEMENT THE
PROGRAM. UM, SINCE 2021. THERE'S
BEEN A FEW STATUTORY LANGUAGE
ADJUSTMENTS THAT WERE MADE TO
THE PROGRAM IN ORDER TO ENSURE
THAT EACH CD COULD IMPLEMENT THE
PROGRAM. UM ADDITIONALLY, THE
DELAY IN THE FUNDING, WE DON'T
ANTICIPATE THAT AT ALL IMPACT
THE PROGRAM AT ALL BECAUSE OF
HOW IT WAS DESIGNED TO THE
FUNDING WAS SUPPOSED IS SUPPOSED
TO GO OUT TO THE FUND MANAGER IN
UM TRANCHES OVER THE NEXT TWO
FISCAL YEARS ORIGINALLY, ANYWAYS
, SO THIS SPREADING OUT OVER THE
MULTI YEAR UM WE'LL KEEP IN LINE
WITH THAT SCHEDULE. OKAY AND THE
ACCOUNTABILITY TRAILER BILL
LANGUAGE DOES THE ADMINISTRATION
PLAN ON RELEASING ANY ADDITIONAL
LANGUAGE? CHRIS HILL FOR THE
DEPARTMENT OF FINANCE. THE
ADMINISTRATION IS LOOKING
FORWARD TO WORKING WITH THE
LEGISLATURE ON TRAILER BILL. SO
WE'RE VIEWING THAT AS SORT OF A
COLLABORATIVE PROCESS TO DEVELOP
THE TRAILER BILL. SO AT AT THIS
MOMENT, NOT QUITE YET, BUT
YOU'RE LOOKING FOR THAT'S
CORRECT, MANAGER. OKAY ANY
ADDITIONAL? YES, MISS WICKS.
THANK YOU, MADAM CHAIR. UM ON
THE AFFORDABLE HOUSING. UM
SITUATION. I KNOW THE LAST ROUND
OF OUR FLAGSHIP AFFORDABLE
HOUSING PRODUCTION PROGRAM, THE
MULTI FAMILY HOUSING PROGRAM AS
WE CALL MHP WAS OVERSUBSCRIBED
10 TO 1, AND THERE WERE 14,000
AFFORDABLE HOUSING UNITS THAT
ARE SHOVEL READY THAT DID NOT
GET FUNDED. THAT'S 14,000
FAMILIES THAT COULD HAVE A ROOF
OVER THEIR HEAD. WE'VE HAD SOME
HOLD OVER ALLOCATIONS FROM LAST
YEAR'S BUDGET THAT WILL CARRY US
THROUGH THIS YEAR. BUT I AM VERY
WORRIED, UM, AN ALARM THAT WILL
BE FORCED TO PULL BACK ON OUR
AFFORDABLE HOUSING PRODUCTION
FUNDING AFTER THAT, WHAT I THINK
IS PROBABLY THE WORST POSSIBLE
TIME GIVEN THE NEED IN THE STATE
FOR AFFORDABLE HOUSING. I KNOW
OUR BONDS FROM 2018 ARE NEARLY
SPENT. SO THE QUESTION I HAVE IS
, WHAT IS THE PLAN TO FUND
AFFORDABLE HOUSING BEYOND THIS
BUDGET YEAR? UM HAS THE
ADMINISTRATION CONSIDERED A NEW
BOND? UM, WHAT ARE OTHER
THOUGHTS THE ADMINISTRATION
MIGHT HAVE ON CONTINUING THE
NEED FOR AFFORDABLE HOUSING. AND
I KNOW WHEN YOU TALK TO FOLKS IN
THE SPACE, UM EVERYONE SAYS WE
NEED ONGOING FUNDING FOR
AFFORDABLE HOUSING, AND MANY OF
US HAVE WORKED ON THAT AND WILL
CONTINUE TO WORK ON THAT. BUT
JUST LOOKING FOR SOME DIRECTION
FROM THE MINISTRATIONS AROUND
WHAT YOU ALL THINK, ARE THE UM,
SOLUTIONS AS IT PERTAINS TO
FUNDING FOR AFFORDABLE HOUSING.
ONCE WE WERE OUT OF THESE FUNDS
YEAH, AS AS NOTED THE AFFORDABLE
HOUSING FUNDING THAT'S BEEN
APPROPRIATED FROM THE GENERAL
FUND IS EXPECTED TO BE YOU KNOW
, THERE IS NO ADDITIONAL FUNDING
INCLUDED BEYOND 23 24. HOWEVER
THERE ARE SEVERAL SOURCES OF
ONGOING FUNDING FOR AFFORDABLE
HOUSING, INCLUDING THE
AFFORDABLE HOUSING SUSTAINABLE
COMMUNITIES PROGRAM FUNDED BY G
R. F REVENUES. SP TWO FUNDING,
WHICH GOES TO LOCAL GOVERNMENTS
TO FUND HOUSING. THERE'S ALSO UM
ONGOING. UM UM STATE LOW INCOME
HOUSING, HOUSING TAX CREDITS, UM
ABOVE AND BEYOND THE $500
MILLION THAT WAS INCLUDED IN THE
BUDGET THE LAST FEW YEARS.
THERE'S AN ONGOING ALLOCATION
THERE BUT HAPPY TO CONTINUE
DISCUSSIONS ON ANY OTHER ONGOING
SOURCES OF FUNDING THAT COULD BE
PROVIDED FOR AFFORDABLE HOUSING
AND WITH THE IDEA OF A BOND FOR
AFFORDABLE HOUSING, BE SOMETHING
YOU WOULD CONSIDER A NEW BOND.
UM, IN REGARDS TO A BOND, SO
THERE HAVE BEEN DISCUSSIONS THAT
THE ADMINISTRATION HAS RELEASED
AS FAR AS PROVIDING, UM
ADDITIONAL, UH, BOND FOR
VETERANS HOUSING, SO THAT'S THE
ONLY BOND RIGHT NOW THAT WE'RE
ENTERTAINING FROM THE
ADMINISTRATION SIDE FOR
AFFORDABLE HOUSING, AND WOULD
YOU ENTERTAIN MORE FUNDING?
OUTSIDE OF JUST THAT REALLY
IMPORTANT CONSTITUENCY. BUT FOR
FOLKS MORE BROADLY, WE DON'T
HAVE A PROPOSAL AT THIS TIME FOR
ANYTHING AFFORDABLE HOUSING
BONDS. OKAY ON THE HOMELESSNESS
FRONT. I KNOW. THE GOVERNOR'S
JANUARY BUDGET MAINTAINS ONE
BILLION FUNDING FOR HAP. AND HE
SAID THAT HE WANTS TO CREATE
MORE ACCOUNTABILITY AROUND THOSE
DOLLARS. SO THE QUESTION I HAVE
AROUND THAT IS WHAT IS THE
UNIVERSE OF PROGRAMS THAT YOU
ALL WANT TO COVER WITH YOUR
ACCOUNTABILITY PROPOSAL? UM, IS
IT HALF ONLY OR IS THERE A
BROADER LIST OF HOMELESSNESS
PROGRAMS, INCLUDING THE
ENCAMPMENT, RESOLUTION, GRANTS
AND CDSS PROGRAMS OR CALAIS?
MORE OTHERS? CHRIS HILL FOR
FINANCE ADMINISTRATION IS
INTERESTED IN LOOKING AT A BROAD
NET COVERING A WHOLE HOST OF
PROGRAMS. THERE'S A WHOLE HOST
OF PROGRAMS OUT THERE IN THE
BEHAVIORAL CERTAIN, UM,
BEHAVIORAL HEALTH REALM. THERE'S
PROGRAMS EXISTING PROGRAMS LIKE
HAP AND CAMPAÑA RESOLUTION
GRANTS, AND THERE ARE A HOST OF
OTHER PROGRAMS IN THE HEALTH AND
HUMAN SERVICES WORLD AND WE'RE
INTERESTED IN LOOKING AT WAYS TO
TRY AND ENCOMPASS ALL THOSE
PROGRAMS AND AN ACCOUNTABILITY
FRAMEWORK. OKAY? AND I KNOW ON
THE MAY REVISE, SAYS THAT THE
ADMIN WANTS TO WORK ON
ACCOUNTABILITY WITH THE
LEGISLATURE. UM BUT ONE POLICY
THAT IS SUGGESTED IS THAT ONLY
CITIES AND COUNTIES WITH
COMPLAINT, HOUSING ELEMENTS
SHOULD BE ABLE TO GET THE
HOMELESSNESS FUNDS. UM WHAT ARE
THE IMPLICATIONS OF REQUIRING
CITIES AND COUNTIES TO HAVE
COMPLIANT HOUSING ELEMENT TO GET
HAVE FUNDS? HOW MANY CITIES AND
COUNTIES ARE CURRENTLY OUT OF
COMPLIANCE? ACCORDING TO DATA
THAT WE JUST FOUND FROM THE
HOUSING COMMUNITY DEVELOPMENT
DEPARTMENT TODAY. 233 OUT OF 539
JURISDICTIONS OR 43% ARE NOT IN
COMPLIANCE. AND THAT IS A
PROBLEM AND OKAY, IT'S POSSIBLE
WE WOULDN'T HAVE THE SAME SCOPE
OF HOMELESSNESS. PROBLEM THAT WE
HAVE MORE LOCALITIES WERE IN
COMPLIANCE BECAUSE THEN WE'D
HAVE MORE AFFORDABLE HOUSING, SO
I THINK IT'S JUST A TRICKLE DOWN
EFFECT OF THAT, AND WE HAVE TO
FIND A WAY I THINK, AND WE'RE
LOOKING FORWARD TO WORKING WITH
THE LEGISLATURE ON THIS, TOO. Tð
ENSURE THAT LOCALS HOLD UP THEIR
END OF THE BARGAIN AND ARE
INCENTIVIZED TO DO SO THAT THEY
HAVE THE TOOLS THEY NEED TO DO
SO. SO WE KIND OF VIEWING INTO
THE COLLABORATIVE PROCESS TO
ENCOURAGE THEM TO HOLD UP THEIR
END OF THE BARGAIN AND DO WHAT
THEY NEED TO DO AND WITH THE
STATE TRYING TO HELP LEAD THE
WAY FOR THEM AND OKAY? WELL,
COUNT ME AS A PARTNER IN TRYING
TO GET OUR LOCAL MUNICIPALITIES
TO ENSURE THAT THEY'RE DOING
WHAT THEY NEED TO DO A V R
AFFORDABLE HOUSING GOALS IN ALL
OF OUR COMMUNITIES NEEDED AND
JUST A LAST QUESTION. UM, THE
MAY REVISE, ALSO PROPOSED TO
CONTINUE FUNDING FOR THE
ENCAMPMENT RESOLUTION PROGRAM AT
$400 MILLION. WHAT OUTCOMES ARE
WE SEEING FROM THE E R P UM,
WE'D HAVE TO CHECK WITH THE
INTERAGENCY COUNCIL AND
HOMELESSNESS AND GET BACK TO YOU
ON THAT. OKAY, WE'LL DO THAT.
OKAY. APPRECIATE IT. THANK YOU.
UM, CAN WE GET SOME A TIMELINE
AS TO WHEN YOU MIGHT BE ABLE TO
GET US SOME OF THAT INFORMATION?
UM REGARDING, UM, ENCAMPMENTS.
WE HOPE TO HAVE THAT WITHIN A
DAY OR TWO. IT SHOULDN'T TAKE
TOO LONG TO GET DONE. THANK YOU
. ARE THERE ANY ADDITIONAL
COMMENTS OR QUESTIONS? OKAY? AH
SEEING NONE. WE'RE GOING TO GO
ON TO THE NEXT ISSUE, AND JUST
AS A NOTE EACH ISSUE 1.5 NOT ON
THE AGENDA, BUT LISTED IN THE
LETTERS AND LIKE THE DEPARTMENT
OF FINANCE TO PROVIDE AN
OVERVIEW OF THE FRANCHISE TAX
BOARD, BCP THE MIDDLE CLASS TAX
REBATE, UH, REVERSION OR
PROVISIONS. AND THE OFFICE OF
TAX APPEALS TRAILER BILL
LANGUAGE. CERTAINLY CRYSTAL
DEPARTMENT OF FINANCE CONCERNING
FRANCHISE TAX BOARD, THE
ADMINISTRATION IS PROPOSING TO
PROVIDE $2.7 MILLION GENERAL FUN
. UM CAN YOU SPEAK A LITTLE
CLOSER TO THE MICHAELS? THANK
YOU. THE ADMINISTRATION'S
PROPOSING TWO POINT MILLION $2.7
MILLION GENERAL FUND 19 NEW
POSITIONS IN THE UPGRADE OF 95
EXISTING POSITIONS. FOR
FRANCHISE TAX BOARD'S CUSTOMER
SERVICE UNIT. THIS IS MAINLY FOR
THEIR TAX PRACTITIONER HOTLINE
ABOUT 65% OF, UM TAX FILERS USE
A TAX PREPARER, AND IT'S VERY
IMPORTANT THAT FRANCHISE KEEP UP
WITH THE CALL VOLUMES ON FROM
THESE INDIVIDUALS, THE TAX
PREPARERS SO THEY CAN PROVIDE,
UM PEOPLE CAN GET THEIR REFUNDS
AND HAVE THEIR PAYMENTS PROCESS
TIMELY. AND THE CALL VOLUMES
GONE UP INCREMENTALLY. UM, IT'S
GONNA SIGNIFICANTLY ACTUALLY,
AND THESE RESOURCES WILL HELP
FRANCHISE TO KEEP UP WITH THOSE
CALL VOLUMES AND ALSO TO ADDRESS
SOME TURNOVER BECAUSE THE
TURNOVER IS VERY HIGH FOR THESE
POSITIONS, AND SO WE'RE LOOKING
TO UPGRADE 95 WITH THEM TO
HIGHER CLASSIFICATION TO
ENCOURAGE PEOPLE TO REMAIN IN
THESE POSITIONS BECAUSE IT TAKES
A LONG TIME TO TRAIN THEM UP TO
THREE YEARS. AND SO WE DON'T
WANT TO LOSE THEM. CONCERNING
THE MIDDLE CLASS TAX. UM REFUND
MIDDLE CLASS TAX RELIEF. THERE
WAS A $9.5 BILLION APPROPRIATION
FOR THAT PROGRAM, AND WE'RE
PROPOSING TO REVERT $200 MILLION
IN SAVINGS THAT REPRESENTS ABOUT
2% OF THE TOTAL APPROPRIATION,
AND THIS ISN'T STEMMING FROM
PEOPLE NOT GETTING THEIR
REFUNDS. IT'S JUST STEMMING FROM
THE FACT THAT, UM WE AIRED ON
THE SIDE OF CAUTION BY PROVIDING
A BIT MORE FUNDING FOR THE
SAFETY CUSHION TO ENSURE
EVERYBODY GOT WHAT THEY WERE
ENTITLED TO, AND THESE FUNDS ARE
NOT NEEDED FOR PROPOSING TO
REVERT THEM IN THE CURRENT YEAR.
AND ALSO THERE IS A PROPOSAL
VERSION OF $18 MILLION IN
ASSOCIATED STATE OPERATIONS
COSTS BEFORE THAT WORKLOAD. AND
FINALLY FOR THE OFFICE OF TAX
APPEALS. THE ADMINISTRATION IS
PROPOSING TRAILER BUILT TO
PROVIDE A PARTIAL EXEMPTION FROM
THE, UM THE REGULATORY PROCESS
UNDER THE OFFICE ADMINISTRATIVE
LAW. WHEN O. T. A WAS FIRST
CREATED, THEY HAD A BLANKET
EXEMPTION FROM THE REGULATORY
PROCESS TO ALLOW THEM TO START
UP. AND WE'RE PROPOSING TO
SUBJECT THEM TO THE SAME
REQUIREMENTS AS EVERY OTHER
STATE DEPARTMENT WITH ONE
EXCEPTION, AND THIS WILL ENSURE
THAT ANY TAX ANY ANY DECISIONS
ANY PRECEDENTIAL DECISIONS
ISSUED BY OT, A TAX APPEALS
PANELS TEXTS HEARING PANELS ARE
NOT SUBJECT TO OL REVIEW BECAUSE
WHEN THE BOARD OF EQUALIZATION
WAS HEARING TAX APPEALS PRIOR TO
2017 UM, THE OPPOSITE MINISTRY
OF LAW DETERMINE THAT ANY
PRECEDENTIAL RULINGS ISSUED BY B
O E CONSTITUTED AN UNDERGROUND
REGULATION AND WE WANT TO
PREVENT FROM FALLING INTO THAT
SAME TRAP. SO THIS IS JUST, UM,
AGAIN TO ENSURE PRESIDENTIAL
COURT TAX APPEAL. DECISIONS MADE
BY OT, ARE NOT SUBJECT TO OL
REVIEW. THANK YOU. ANY COMMENTS
FROM ELIO? ANY QUESTIONS FROM
THE MEMBERS. OKAY SEEING NONE.
THANK YOU VERY MUCH. WE'RE GOING
TO GO ON TO ISSUE NUMBER TWO
OFFICE OF BUSINESS AND ECONOMIC
DEVELOPMENT. MOVING ON TO THE
MAJOR PROPOSALS BY KOBE'S PLEASE
MAKE YOUR WAY UP.
SO HOT IN HERE YOU MY EYES STILL
HOT. RIGHT? YES, PLEASE. THANK
YOU. PLEASE BEGIN WHEN YOU'RE
READY. THANK YOU. GOOD
AFTERNOON. GOOD AFTERNOON CHAIR
AND MEMBERS OF THE COMMITTEE.
I'M CHARLIE LASALLE WITH THE
DEPARTMENT OF FINANCE. I'M HERE
TODAY TO DEPRIVE A BRIEF
OVERVIEW. OF THE MAY REVISION
PROPOSALS. AIR CONDITIONING JUST
TURNED ON. THAT'S GREAT NEWS.
NICE BRIEF OVERVIEW FOR THE MAY
REVISION PROPOSALS FOR THE
GOVERNOR'S OFFICE OF BUSINESS.
BUSINESS AND ECONOMIC
DEVELOPMENT. I'LL START WITH THE
CITY OF FRESNO PUBLIC
INFRASTRUCTURE PLAN. THE 2022
BUDGET ACT ESTABLISHED THE LOCAL
GOVERNMENT'S BUDGET
SUSTAINABILITY FUND PROGRAM AND
INCLUDED $300 MILLION TO BE
SPENT OVER THREE YEARS STARTING
IN 23 24 TO SUPPORT THIS PROGRAM
. SPECIFICALLY, THESE GRANTS
WILL PROVIDE UH, SHORT TERM
SUPPORT FOR COUNTIES WITH HIGH
UNEMPLOYMENT AND HIGH POVERTY
WHO ARE PURSUING ECONOMIC AND
WORKFORCE DIVERSIFICATION
PROJECTS. RE RECOGNITION,
RECOGNIZING THE OPPORTUNITY COST
PURSUING SUCH PROJECTS OTHERWISE
IMPOSE ON THEIR LIMITED
RESOURCES. THE MAY REVISION
PROPOSES TO MAINTAIN $50 MILLION
FOR THE LOCAL GOVERNMENT BUDGETS
SUSTAINABILITY FUND TO ASSIST
ELIGIBLE COUNTIES. IN NEED WITH
STARTUP FUNDING AND CAPACITY
BUILDING. THEY CAN USE THESE
RESOURCES TO DEVELOP PROJECTS.
THE MAYOR REVISION ALSO PROPOSES
TO REALLOCATE $250 MILLION TO
SUPPORT THE CITY OF FRESNO'S
PUBLIC INFRASTRUCTURE PLAN TO
INVEST IN THE DOWNTOWN AREA.
THIS PLAN INCLUDES FUNDING
PROJECTS. THAT IMPROVED WALK
ABILITY, GREEN DEVELOPMENT OF
GREEN SPACE AND WATER
INFRASTRUCTURE, AMONG OTHER
AREAS. NEXT IS THE SMALL
AGRICULTURAL BUSINESS RELIEF
GRANTS. GÓMEZ REQUEST $25
MILLION.01 TIME GENERAL FUND TO
EXPAND THE SCOPE OF THE CURRENT
CALIFORNIA SMALL AGRICULTURAL
BUSINESS DROUGHT RELIEF GRANT
PROGRAM TO PROVIDE DIRECT
ASSISTANCE TO ELIGIBLE
AGRICULTURAL RELATED BUSINESSES
THAT HAVE BEEN AFFECTED BY THE
RECENT STORMS. THIS PROGRAM IS
IMPLEMENTED BY CAL O S B A AND
COORDINATION WITH THE DEPARTMENT
OF FOOD AND AGRICULTURE. I'LL
MOVE ON TO THE OUTSMART DISASTER
PROGRAM. GÓMEZ REQUEST
$350,000.01 TIME REIMBURSEMENT
AUTHORITY TO ALLOW CAL O S B A.
IF ORANJE ACADEMY FOR ECONOMIC
DEVELOPMENT THIS PROGRAM IS A
STATEWIDE AWARENESS CAMPAIGN
FOCUSED ON PROVIDING CALIFORNIA
BUSINESSES AND STATE UH, SORRY.
UH THIS IS A PROGRAM STATEWIDE
AWARENESS CAMPAIGN FOCUSED ON
PROVIDING CALIFORNIA BUSINESSES
AND COMMUNITIES WITH THE
RESOURCES THEY NEED TO
ADEQUATELY PREPARE FOR AND
RECOVER FROM ALL TYPES OF
DISASTERS AND BUSINESS
INTERRUPTIONS. UH UM LASTLY IS
THE STATE SMALL BUSINESS CREDIT
INITIATIVE TECHNICAL ASSISTANCE
PROGRAM. GÓMEZ REQUESTS 25.3
MILLION FEDERAL FUND AUTHORITY
TO BE SPENT OVER FIVE YEARS FOR
THE OFFICE OF THE SMALL BUSINESS
ADVOCATE TO PROVIDE TECHNICAL
ASSISTANCE TO SMALL BUSINESSES,
INCLUDING SMALL BUSINESSES OWNED
BY SOCIALLY AND ECONOMICALLY
DISADVANTAGED INDIVIDUALS AND
APPLYING FOR THE STATE SMALL
BUSINESS CREDIT INITIATIVE
CAPITAL PROGRAMS. THE FUNDS WILL
BE USED TO PROVIDE GRANTS TO
FEDERAL TECHNICAL ASSISTANCE
PARTNERS AND FUND FOR UH, AND
FUND FOR POSITIONS FOR OUTREACH
ENGAGEMENT. PROGRAM MANAGEMENT
DATA REPORTING, MONITORING AND
EVALUATIONS. THE SSB CI
TECHNICAL ASSISTANCE PROGRAM
WILL COMPLEMENT THE EXISTING
TECHNICAL ASSISTANCE PROGRAMS
ADMINISTERED BY CAL O S P A.
WITH THAT I'M AVAILABLE IN THE
DEPARTMENT IS AVAILABLE TO
ANSWER ANY QUESTIONS YOU MAY
HAVE. ELIO. YES ON THE ON THE
FIRST ITEM OF THE REDIRECTION OF
THE LOCAL GOVERNMENT
SUSTAINABILITY FUND. UH, DOLLARS
TO THE FRESNO PUBLIC
INFRASTRUCTURE PLAN. WE DON'T
VIEW THIS REDIRECTION IS
CONSISTENT WITH THE WITH THE
INTENDED OBJECTIVES OF THE LOCAL
GOVERNMENT SUSTAINABILITY FUND.
UH AND THEREFORE THIS
REDIRECTION ESSENTIALLY
CONSTITUTES A NEW SPENDING
PROPOSAL. UH WHICH WE THINK
GIVEN THE CURRENT THE STATE'S
BUDGET CONDITION IN THE BUDGET
PROBLEM MORE FACING DOES NOT
WARRANT APPROVAL AT THIS TIME.
SO WE RECOMMEND REJECTING THAT
REDIRECTION. AH AH! AH AND
FURTHER THE ADMINISTRATION'S
PROPOSAL, UH, SUGGESTS THAT
THEIR MAIN NO LONGER BE A CLEAR
AND IMMEDIATE NEED FOR THE 300
MILLION ALLOCATED TO THE LOCAL
GOVERNMENT SUSTAINABILITY FUND
AND THEREFORE SUGGEST
CONSIDERING REDIRECTING THESE
FUNDS TO THE GENERAL FUND AS A
POTENTIAL BUDGET SOLUTION. THANK
YOU. I WILL START WITH A COUPLE
OF QUESTIONS FOR THE LOCAL
GOVERNMENT SUSTAINABILITY FUND
PROGRAM IS THE 50 MILLION ENOUGH
FUNDS TO IMPLEMENT THE PROGRAM
AS ENVISIONED LAST YEAR. UM
LAUREN GREENWOOD, UH, DEPUTY
DIRECTOR OF LEGISLATION FOR
GÓMEZ, UH, THERE WERE, UM WITH
THE LOCAL GOVERNMENT
SUSTAINABILITY FUND. IT WAS
50,000,050 MILLION ALLOCATED FOR
THIS BUDGET YEAR. AND SO THIS
WAS WHAT THE DEPARTMENT WAS
GETTING READY TO IMPLEMENT ITS.
THE PROGRAM IS NOT LAUNCHED BUT
TAUGHT AT THE DEPARTMENT HAS
BEEN IN CONVERSATIONS WITH
IMPACTED. COUNTIES SUCH AS
CURRENT FRESNO IMPERIAL TILLERY
AND AGAIN THE 50 MILLION IS WHAT
WAS EXPECTED FOR THIS YEAR.
THANK YOU. HOW IS THE BUSINESS
RELIEF GRANTS SIZED AND IS THERE
NOT POSSIBILITY THAT THE PROGRAM
MIGHT BE OVERSUBSCRIBED? UM
LAUREN GREENWOOD, UH, DEPUTY
DIRECTOR OF LEGISLATION FOR
GÓMEZ MAY CLARIFY, DO YOU MEAN
THE DROUGHT RELIEF GRANT PROGRAM
OR THE FLOOD RELIEF GRANT
PROGRAM? THE FLOOD RELIEF. UH
FOR THE FLOOD RELIEF PROGRAM. UM
WE DO HAVE LANGUAGE IN THERE FOR
THE GRANTS TO BE DEDICATED ON
THREE TIERS AND DEPENDENT ON THE
REVENUE SIZE. UM AND WE DID WANT
TO KEEP THIS. WE HAVEN'T WE WANT
TO CONTINUE WORKING WITH THE
LEGISLATURE AND STAKEHOLDERS, UH
, TO DETERMINE WHAT KINDS OF
REVENUES WOULD BE APPROPRIATE
FOR THESE TYPES OF FLOOD
IMPACTED BUSINESSES, SO THAT IS
NOT CLARIFIED IN THE LANGUAGE
YET. SO I'M SORRY. WHAT WAS THE
NUMBER OF THE FLOOD RELIEF GRANT
AGAIN? WE HAVE $25 MILLION
ALLOCATED FOR THIS PROGRAM. SO
GIVEN THE SEVERITY OF THE
FLOODS, DO YOU THINK THAT 25
MILLION MIGHT BE ENOUGH THAT IT
MIGHT NOT BE OVERSUBSCRIBED? I'M
A YOUNG WORTH DEPARTMENT OF
FINANCE. I THINK AT THIS TIME
IT'S HARD TO KNOW. I MEAN, WE
KNOW THAT THE IMPACT STATEWIDE
OR PRETTY SEVERE, BUT I THINK
IT'S HARD TO KNOW EXACTLY HOW
MANY BUSINESSES WOULD BE
ELIGIBLE OR WOULD BE APPLYING.
AND SO THOSE ARE THINGS THAT WE
WANT TO KEEP WORKING WITH
STAKEHOLDERS ON, UM TO GET A
BETTER SENSE OF, YOU KNOW, AND
WE DON'T EVEN LIKE RIGHT IN THE
TRAILER BILL ITSELF DOESN'T
QUITE HAVE REVENUE IMPACTS, AND,
UH WELL NOT IMPACT BUT TEARS
SIMILAR TO WHAT WE DID FOR THE
DROUGHT PROGRAM, SO WE JUST WANT
TO CONTINUE WORKING WITH
STAKEHOLDERS TO KIND OF FURTHER
REFINE THE REVENUE TIERS AND SEE
KIND OF IMPACTS ACROSS THE
STATE. THANK YOU. ANY COMMENTS
OR QUESTIONS? YES MAJORITY
LEADER. THANK YOU, MADAM CHAIR,
THE STATE SMALL BUSINESS CREDIT
INITIATIVE. UH UNIT GO BUSINESS
REQUESTING AN INCREASE OF 25.3
MILLION. IN ONE TIME FUNDING TO
BE SPENT OVER FIVE YEARS FOR THE
CALIFORNIA OFFICE AT THE SMALL
BUSINESS ADVOCATE TO PROVIDE
TECHNICAL ASSISTANCE TO SMALL
BUSINESSES, INCLUDING BUSINESSES
OWNED BY SOCIALLY AND
ECONOMICALLY DISADVANTAGED
INDIVIDUALS APPLYING FOR STATE
SMALL BUSINESS CREDIT INITIATIVE
CAPITAL PROGRAMS. MY QUESTION IS
, HOW DOES GO BIZ PLAN TO
CONDUCT OUTREACH? TO OFFER THIS
TECHNICAL ASSISTANCE AND AS A
FOLLOW UP HAS GÓMEZ OFFERED
TECHNICAL ASSISTANCE FOR THESE
PURPOSES IN THE PAST. UM. LAUREN
GREENWOOD, WITH GÓMEZ. UH WE
UNFORTUNATELY, DON'T HAVE A
CALLUS BUT A REPRESENTATIVE HERE
TODAY, BUT I WILL TAKE THOSE
QUESTIONS AND GET BACK TO YOUR
OFFICE. WONDERFUL. THANK YOU.
THANK YOU. I THINK IF YOU CAN
GET BACK TO THE COMMITTEE
CONSULTANT SO THAT WE ALL CAN
GET THE RESPONSE THAT BE GREAT.
THANK YOU. IF THERE ARE NO
ADDITIONAL COMMENTS OR QUESTIONS
, WE'RE GOING TO GO ON TO ISSUE
NUMBER THREE OFFICE OF PLANNING
AND RESEARCH, MOVING ON TO THE
MAJOR PROPOSALS FOR OFFICE AND
PLANNING AND RESEARCH. PLEASE
COME FORWARD. PLEASE BEGIN WHEN
YOU'RE READY. THANK YOU. GOOD
AFTERNOON CHAIR MEMBERS OF THE
COMMITTEE KEVIN CLARK WITH THE
DEPARTMENT OF FINANCE WILL BE
PRESENTING ON TWO OF O P. R. S
MAY REVISION PROPOSALS AND HAPPY
TO ANSWER ANY QUESTIONS OF THE
OTHER PROPOSALS AS WELL. FIRST
THE MAYOR. REVISION INCLUDES 5.3
MILLION GENERAL FUND AND 15
POSITIONS ON GOING TO ESTABLISH
AN INFORMATION TECHNOLOGY UNIT
WITHIN THE OFFICE OF PLANNING
AND RESEARCH. THIS PROPOSAL WILL
SUPPORT INTERNAL DEPARTMENTAL
OVERSIGHT AND ADMINISTRATION OF
I T NEEDS. SECOND THE MAIN
REVISION INCLUDES A REDUCTION OF
TWO MILLION GENERAL FUNDS AND 10
POSITIONS IN 23 24. THAT'S THE
BUDGET YEAR. DECREASED TO
DECREASING THE 1.5 MILLION IN
2026 27, ONGOING TO ADDRESS
DECLINING GENERAL FUND REVENUES
AS WELL AS BEGIN THE PROCESS OF
TRANSITIONING OPR TWO OR MORE
TRADITIONAL DEPARTMENTS WITHIN
STATE CIVIL SERVICE. WE'RE HAPPY
TO ANSWER ANY QUESTIONS YOU MAY
HAVE ABOUT ANY OF THE M R
PROPOSALS MADE A REVISION
PROPOSALS. WE'RE ALSO JOINED BY
SCOTT MORGAN AND SAHAR NAS MUSES
THAT FROM THE OPR TO ANSWER
PROGRAMMATIC QUESTIONS, THANKS.
HELLO THANK YOU, MADAM CHAIR
RACHEL SAILORS WITH THE L A. OH,
WE'RE STILL LOOKING INTO THESE
PROPOSALS AND HOPE TO HAVE
SPECIFIC RECOMMENDATIONS TO
LATER THIS WEEK. SOME OF THE
QUESTIONS WERE LOOKING AT
REGARDING THE I T OFFICE. IT
DOES SEEM THAT THERE ARE SOME
NEEDS ADDED OPR AND KIND OF FROM
A SECURITY PERSPECTIVE. IT MAY
MAKE SENSE TO ADOPT AT LEAST
PART OF THE PROPOSAL, BUT WE'RE
LOOKING AT THE OVERALL SCOPE AND
ESPECIALLY GIVEN THE GENERAL
FUND CONDITION WHETHER ALL OF
THOSE RESOURCES ARE NEEDED NOW.
UM AND THEN REGARDING THE
PROPOSAL TO REDUCE THE STAFF AND
GENERATE SAVINGS, GENERAL FUND
SAVINGS, OBVIOUSLY THAT THAT'S
SOMETHING WE'RE LOOKING FOR, BUT
WE WANT TO BE SURE THAT THAT
WON'T PUT SOME OF THE
LEGISLATORS, LEGISLATIVE
PRIORITIES AND LEGISLATIVE
ACTIVITIES IN JEOPARDY BECAUSE
SOME OF THE PROPOSALS IN JANUARY
THAT ARE NOW BEING CALLED BACK
IN THIS PROPOSAL WERE TO
IMPLEMENT LEGISLATION THAT YOU
ALL PASSED RECENTLY. THANK YOU.
HOW WILL THE NEW CIVIL SERVICE
SECTION YOU'RE REQUESTING AT OPR
DIFFER FROM THE OTHER PARTS OF
THE OFFICE. SO THE OFFICE IS FOR
YOU. INTRODUCE YOURSELF AND BE
CLOSER TO THE MICHAEL, CAN YOU
PLEASE PUT YOUR QUESTION? HOW
ARE THE NEW CIVIL SERVICE
SECTION? YOU ARE REQUESTING IT.
OPR DIFFER FROM OTHER SECTIONS
OF THE OFFICE. THIS IS SARAH
KNOWS MY CHIEF DEPUTY DIRECTOR
OF PLANNING AND POLICY AT THE
GOVERNMENT OFFICE OF PLANNING
AND RESEARCH CURRENTLY OVER
OFFICE IS ONLY EXEMPT POSITIONS.
WE DON'T HAVE ANY CIVIL SERVICE
AND THIS WILL BE THE BEGINNING
OF THE TRANS FROM THE OFFICE TO
THE CIVIL SERVICE. BE THE FIRST
PLATE. SORRY CAN YOU ARTICULATE
HOW YOU DETERMINE THE STAFFING
LEVEL FOR THE NEW INFORMATION
TECHNOLOGY UNIT? CERTAINLY SCOTT
MORGAN WITH THE GOVERNOR'S
OFFICE PLANNING RESEARCH, SO
WE'VE BEEN GOING THROUGH THIS
PROCESS FOR MANY MONTHS NOW,
WITH THE DEPARTMENT OF
TECHNOLOGY TO LOOK AT OTHER
SIMILAR SIZE THE AGENCIES AND
DETERMINE YOU KNOW THAT THE I T
UNITS THAT THEY HAD. THAT HAD
SIMILAR BUSINESS LINES. WE'VE
ALSO BEEN WORKING HARD WITH THE
GOVERNOR'S OFFICE TO IDENTIFY
THE DIFFERENT WORK STREAMS THAT
THEY CURRENTLY MANAGED FOR US,
AND WHAT THAT WOULD LOOK LIKE
FROM A TRANSITION TO OUR OFFICE
. OBVIOUSLY THERE'S BEEN A LOT
OF GROWTH GROWTH AT OPR, UM AS A
AS A POINT OF REFERENCE
DEPARTMENT TECHNOLOGIES OF RISK
ORIGINAL. ESTIMATE WAS A TEAM OF
27 PEOPLE. UM SO WE HAVE REDUCED
THAT QUITE A BIT ONE
ACKNOWLEDGING THE BUDGET
REQUIREMENTS, BUT ALSO AS A
FIRST ATTEMPT TO GET AN I T UNIT
SET UP SO WE FEEL THIS IS THE
BARE BONES THAT WE NEED RIGHT
NOW TO MAKE THIS HAPPEN, UH, AND
TO TRANSITION TO A FULL
INDEPENDENT SYSTEM FROM THE
GOVERNOR'S OFFICE. THANK YOU ANY
ADDITIONAL COMMENTS OR QUESTIONS
? MAJORITY LEADER? THANK YOU,
MADAM CHAIR ON THE YOUTH CORPS
PROGRAM. I KNOW IN THE MAY
REVISE PROPOSALS PROVISIONAL
LANGUAGE TO PROVIDE A SET ASIDE
FOR TRIBAL COMMUNITIES.
PRIORITIZE UNDOCUMENTED YOUTH
FOR PARTICIPATION PARTICIPATION
IN THE YOUTH WORKFORCE
DEVELOPMENT PROGRAM ADMINISTERED
BY CALIFORNIA VOLUNTEERS. I JUST
WANT TO COMMENT THAT I DO
APPRECIATE THIS LANGUAGE THAT'S
BEING PROPOSED TO ADD THESE TWO
GROUPS, UH, TO PARTICIPATE IN
THE YOUTH CORPS PROGRAM. ON THE
TRANSITION TO THE STATE CIVIL
SERVICE POSITION. UM MY QUESTION
IS. WHAT WHAT SPECIFICALLY IS A
PLAN TO TRANSITION THE POSITIONS
TO STATE CIVIL SERVICE POSITIONS
. AND WHEN DOES OPR EXPECT THE
TRANSITION TO BE COMPLETED? SO
CURRENTLY THIS WILL BE THE
BEGINNING. WE ARE WORKING
CLOSELY WITH CALLIE CHAR TO
UNDERSTAND THIS SCOPE THAT WE
NEED TO GO THROUGH TO MAKE SURE
THAT WE ARE HAVING A SMOOTH
TRANSITION TO THE CIVIL SERVICE.
THIS WILL BE THE FIRST POSITIONS
WILL FIRST START WITH THE
POSITIONS THAT ARE VACANT AND
THEN GRADUALLY COVERED THE
POSITIONS THAT ARE FILLED
CURRENTLY WITH THE CIVIL SERVICE
POSITION. BUT IT WILL BE IN
CLOSE COORDINATION WITH THE
COLLECTOR. AND YOUR HIRING A
CONSULTANT TO THE STORE. I'M
SORRY AND HIRING A CONSULTANT TO
SUPPORT US TO WONDERFUL. THANK
YOU. I THOUGHT YOU SAID YOU'RE
HIDING THE CONSULTANT. OH I
THOUGHT I HEARD THAT TOO. IF
THERE ARE NO ADDITIONAL COMMENTS
OR QUESTIONS, WE'RE GOING TO
MOVE ON TO ISSUE NUMBER FOUR.
THE DEPARTMENT OF JUSTICE THANK
YOU VERY MUCH VERY MUCH.
PLEASE BEGIN WHEN YOU'RE READY.
GOOD AFTERNOON, MADAM CHAIR
MEMBERS OF THE COMMITTEE. MY
NAME IS ASHLEY HARP, CALIFORNIA
DEPARTMENT OF JUSTICE. THE
GOVERNOR'S 23 24 MAY REVISE
BUDGET INCLUDES FOUR PROPOSALS
FOR THE DEPARTMENT OF JUSTICE,
WHICH AIMED TO SUPPORT THE
DEPARTMENT'S CRITICAL PUBLIC
SAFETY, WORKLOADS AND BUSINESS
NEEDS, INCLUDING ONE TECHNICAL
ADJUSTMENT AND ONE LOAN TO THE
GENERAL FUND FROM THE
DEPARTMENT'S LITIGATION DEPOSIT
FUND. UM I'LL START WITH THE
FIRST PROPOSAL THE D N A. I D
FUND EXPENDITURE. UM TECHNICAL
ADJUSTMENT. THE GOVERNORS MAY
REVISE BUDGET PROPOSES 7.3
MILLION DNA. I'D FUND AUTHORITY
IN 23 24, ONGOING TO SUPPORT
FACILITIES, MAINTENANCE AND LAB
EQUIPMENT REPLACEMENTS AS
INTENDED IN THE GOVERNOR'S
JANUARY BUDGET. THIS IS A
TECHNICAL ADJUSTMENT TO
AUTHORIZE SPENDING AUTHORITY,
WHICH WAS, UH, MIS KEYED IN THE
JANUARY PROPOSAL. THE JANUARY
PROPOSAL ALSO INCLUDED 10
MILLION REINSTATEMENT OF DNA.
I'D SPENDING AUTHORITY, UM, AND
WAS INTENDED TO INCLUDE THIS 7.3
MILLION FOR THE FACILITY
MAINTENANCE AND LAB EQUIPMENT.
THE SECOND PROPOSAL IS THE
FIREARMS IT SYSTEMS
MODERNIZATION PROJECT. THE
GOVERNOR'S MAY REVISE. BUDGET
INCLUDES 1.1 MILLION DEALERS.
RECORD OF SALES, SPECIAL ACCOUNT
AUTHORITY AND SIX POSITIONS IN
23 24 ON GOING TO CONTINUE THE
PROJECT. APPROVAL LIFECYCLE
PROCESS FOR THIS CRITICAL PUBLIC
SAFETY I T PROJECT THE RESOURCES
WILL SUPPORT SUBJECT MATTER.
EXPERTS IN THE BUREAU OF
FIREARMS WHO WILL COLLABORATE
AND SUPPORT THE PROGRAMS. THE
PROJECTS, PLANNING
IMPLEMENTATION AND ONGOING
MAINTENANCE EFFORTS. THIS
REQUEST IS IN ADDITION TO AN
APRIL ONE PROPOSAL, WHICH
INCLUDED 6.4 MILLION DEALERS,
RECORD OF SALE ACCOUNT AND 1.5
MILLION ONGOING TO SUPPORT THE
IT REQUIREMENTS OF THE PROJECT.
THE THIRD PROPOSAL IS FOR E
DISCOVERY STORAGE AND REVIEW
PLATFORM AUGMENTATION. THE
BUDGET PROPOSES 1.9 MILLION IN
23 24, INCREASING TO FOUR
MILLION IN 26 27 ONGOING TO
PROVIDE THE NECESSARY RESOURCES
TO RESPOND TO AND ADDRESS THE
DEPARTMENT'S GROWING DIGITAL E
DISCOVERY AND DIGITAL CASEWORK
STORAGE NEEDS, WHICH IS
INCREASED SIGNIFICANTLY AS A
RESULT OF THE PANDEMIC, WHICH
EXPEDITED THE SHIFT FROM HARD
COPY TO ELECTRONIC PROCESSES.
YEAH, AND THE FOURTH ITEM IS THE
LITIGATION DEPOSIT FUND ALONE.
THE MAY REVISION INCLUDES A $400
MILLION BUDGETARY LOAN FROM THE
LITIGATION DEPOSIT FUND TO THE
GENERAL FUND IN 23 24 TO ASSIST
IN CLOSING THE PROJECTED
STATEWIDE BUDGETARY SHORTFALL
AND TO ENSURE THE SUBMISSION OF
A BALANCED BUDGET PLAN. THIS
PROPOSAL ALSO INCLUDES STATUTORY
CHANGES TO AUTHORIZE THIS
BUDGETARY LOAN. FROM IDLE
RESOURCES NOT REQUIRED FOR
CURRENTLY PROJECTED OPERATIONAL
OR PROGRAMMATIC PURPOSES. THAT
IS ALL. THANK YOU, ELIO. IN
ITALY WITH THE LEGISLATIVE
ANALYST'S OFFICE. WE HAVE
COMMENTS ON TWO OUT OF THE FOUR
PROPOSALS AND SO WE'RE FIRST
GOING TO START WITH THE FIREARMS
INFORMATION TECHNOLOGY PROJECT,
ALSO KNOWN AS IT'S, UM SO FOR
BOTH THE APRIL AND MAY PROPOSALS
COMBINED TOGETHER, THIS
RECOMMENDATION APPLIES, WHICH IS
WE RECOMMEND THAT THE
LEGISLATURE PROVIDE THE FUNDING
NECESSARY JUST TO COMPLETE THE
ALTERNATIVES ANALYSIS STAGE,
WHICH IS STAGE TWO OF THE PAL
PROCESS AS WELL AS TO MAINTAIN
BASELINE PROJECT COSTS PENDING
LEGISLATIVE APPROVAL OF THAT
ALTERNATIVE. ANALYSIS. UM
ACCORDING TO DOJ IN
CONVERSATIONS WITH THEM. THAT
ANALYSIS IS ESTIMATED TO BE
SUBMITTED FOR CALIFORNIA
DEPARTMENT OF TECHNOLOGY REVIEW
, EITHER AT THE END OF 2023 OR
THE BEGINNING OF 2024 SO WITHIN
THE BUDGET YEAR. AND SO, FOR
EXAMPLE, IT COULD BE REASONABLE
TO PROVIDE THEM FOR THE
REQUESTED FUNDING IN 2023 24,
BUT NOT THE ONGOING FUNDING. AND
SO THIS IS REALLY IMPORTANT
BECAUSE THE PROJECT MAY HAVE
SIGNIFICANTLY CHANGED OVER TIME
AND THE LEGISLATURE'S LAST
MEANINGFUL REVIEW OF THE PROJECT
WAS IN JUNE OF 2020 WHEN STAGE
ONE WAS COMPLETED. AND SO IT'S
ALSO TO IN IN OUR REVIEW,
PREMATURE TO PROVIDE, UM,
ONGOING RESOURCES FOR THIS
BEFORE THE LEGISLATURE HAS HAD A
CHANCE TO REVIEW THE
ALTERNATIVES ANALYSIS BECAUSE
THIS IS A VERY COMPLEX AND
POTENTIALLY LARGE PROJECT. ALSO
IN LIGHT OF THE BUDGET SITUATION
, THE LEGISLATURE MIGHT HAVE
PARTICULAR THOUGHTS ON HOW THE
PROJECT SHOULD PROCEED AND BE
FUNDED AND SO THAT WOULD IMPACT
THE LEVEL OF ONGOING RESOURCES
NEEDED. THE SECOND ITEM THAT WE
HAVE COMMENTS ON IS RELATED TO
THE LOAN FROM THE LITIGATION
DEPOSIT FUND. WE RECOMMEND THE
LEGISLATURE ADOPTED LANGUAGE
REQUIRING THE DEPARTMENT OF
FINANCE AND DOJ, UM TO SUBMIT A
REPORT TO JAIL. BC 30 DAYS
BEFORE THE LOAN IS MADE,
REPORTING ON THE LIST OF CASES
FOR WHICH LITIGATION PROCEEDS
WOULD THEN BE USED TO MAKE THE
LOAN. UM AND THEN WE WOULD ALSO
RECOMMEND KEY INFORMATION BE
SUBMITTED ALONG WITH THAT, SUCH
AS WHEN THE PROCEEDS WERE
RECEIVED THE STATE'S SPECIAL
FUNDS THAT WOULD HAVE OTHERWISE
BEEN ELIGIBLE TO RECEIVE THOSE
FUNDS AS WELL AS ANY
RESTRICTIONS ON THE USE OF THE
FUNDING, AND THAT'S GOING TO BE
REALLY IMPORTANT WHEN THE LOAN
IS REPAID TO MAKE SURE THAT THE
STATE COMPLIES WITH ANY
SETTLEMENT AGREEMENTS OR COURT
JUDGMENTS FOR THE USE OF THOSE
FUNDS. HAPPY TO ANSWER ANY
QUESTIONS. THANK YOU. THANK YOU
. I HAVE A SERIES OF QUESTIONS,
BUT I'M GONNA ASK IT IN A BLOCK
AND THEN MAYBE WE CAN BREAK IT
UP. SO WHAT IS THE TOTAL AMOUNT
OF SPECIAL FUND TO THE GENERAL
FUND LOANS INCLUDED IN THE MAY
REVISION. AND WHAT ARE THE
REPAYMENT TERMS? THAT COULD BE
ONE BLOCK? WHAT IS THE CURRENT
FUND BALANCE OF THE LITIGATION
DEPOSIT FUND? AND WILL THERE BE
ANY IMPACT ON DOJ RELATED
WORKLOAD THAT IS FUNDED BY THIS
FUND? I WILL HAND IT OVER TO
KEVIN CLARK IN KEVIN CLARK,
CHAIRMAN OF FINANCE FOR THE
FIRST QUESTION. I HAVE TO GET
BACK TO ON THE EXACT AMOUNT. I
DON'T HAVE THAT IN FRONT OF ME
AT THE MOMENT. AND CAN YOU
PLEASE? UH, STATE SECOND
QUESTION AGAIN. WELL. THE SECOND
QUESTION IS ACTUALLY RELATED TO
THE FIRST. SO IF THERE'S A WAY
THAT YOUR COLLEAGUES CAN GET YOU
THAT WHAT IS THE TOTAL? SO WHAT
IS THE TOTAL AMOUNT OF THE
SPECIAL FUNDS TO THE GENERAL
FUND LOANS INCLUDED IN THE MAY
REVISION. AND WHAT ARE THE
REPAYMENT TERMS? SO I THINK WE
MAY NEED THE FIRST ONE FOR YOU
TO ANSWER THE SECOND. YEAH KEVIN
CLARK BERMAN FOUND SO FOR ALL
SPECIAL FUNDING GENERAL FUND
LOANS. I HAVE TO GET BACK TO YOU
ON THAT. IT'S BEYOND JUST
DEPARTMENT OF JUSTICE. AND WHAT
IS THE CURRENT FUND BALANCE OF
THE LITIGATION FUND DEPOSIT
FUND? AND WILL THERE BE ANY
IMPACT TO ANY DOJ RELATED
WORKLOAD THAT IS FUNDED BY THIS
FUND? MADAM CHAIR, THE CURRENT
LDF BALANCE. IT'S APPROXIMATELY
1.2 BILLION AS OF MARCH 31ST AND
REGARDING WHETHER THE LOAN WOULD
AFFECT ANY DOJ OPERATIONS. UM
WE'RE CONTINUING TO REVIEW THE
PROPOSAL. UM AND WE'RE
COLLABORATING WITH DEPARTMENT OF
FINANCE TO IDENTIFY THAT. OKAY
WHAT IS YOUR TIMELINE TO
IDENTIFY THAT WITH THE
DEPARTMENT OF FINANCE? WE'RE
ACTIVELY WORKING ON IT RIGHT NOW
IN HOPES OF HAVING SOME FEEDBACK
FOR DEPARTMENT OF FINANCE THIS
WEEK. OKAY SO WE JUST HAVE A
COUPLE OF THINGS TO FOLLOW UP ON
THIS THEN BEFORE WE ARE ABLE TO
MOVE FORWARD. SO THE 1ST 1ST AND
2ND QUESTION AND THEN LASTLY,
THE IMPACT TO DOJ. THANK YOU.
THERE AREN'T ANY ADDITIONAL
COMMENTS OR QUESTIONS, OKAY,
SEE, AND THEN WE'RE GOING TO
HOLD THIS ITEM OPEN FOR THE
MOMENT. THANK YOU. WE'RE DOING
REALLY GREAT ON TIME, FOLKS
ISSUE NUMBER FIVE LABOR AND
WORKFORCE DEVELOPMENT. PLEASE
COME ON DOWN. MHM. THE HEAT
HELPS, OKAY.
OKAY PLEASE BEGIN WHEN YOU'RE
READY. THANK YOU. THANK YOU.
CHAIR PATRICK TOPPING DEPARTMENT
OF FINANCE HERE TO GIVE AN
OVERVIEW OF THE MAYOR VISION
PROPOSALS FOR LABOR. IN ADDITION
TO SOME TECHNICAL ADJUSTMENTS
FOR YOU NEED BENEFIT AUTHORITY
AND OTHER FEDERAL FUNDS. UM THE
MAYOR MISSION PROPOSALS SEVERAL
MAJOR REVISIONS TO THE JANUARY'S
GOVERNOR'S BUDGET PROPOSAL. UM
CHIEF AMONG THEM THE RESTORATION
OF THE WOMEN IN CONSTRUCTION
UNIT FUNDING AT THE DEPARTMENT
OF INDUSTRIAL RELATIONS THAT WAS
PREVIOUSLY PROPOSED TO BE PAUSED
IN 2023 24 2024 25. UM AND
CONCLUDES ONGOING SPECIAL FUND
RESOURCES FOR KALA SHOULD
IMPLEMENT THE RECENTLY PASSED
GAS PRICE GOUGING BILL FROM THE
FIRST EXTRAORDINARY SESSION. 5.3
MILLION IN FEDERAL AUTHORITY TO
ALLOW THE CALIFORNIA WORKFORCE
DEVELOPMENT BOARD TO EXPAND THE
PRISON TO EMPLOYMENT INITIATIVES
STATE PROGRAM INTO FEDERAL
PRISONS IN CALIFORNIA USING A
FEDERAL GRANT, UM ONGOING
RESOURCES TO IMPLEMENT A DIRECT
DEPOSIT OPTION FOR THE INDIAN
EASE BENEFIT PROGRAMS AND A $306
MILLION.01 TIME LOAN FROM THE
UNEMPLOYMENT COMPENSATION
DISABILITY FUNDS IN THE GENERAL
FUND TO PAY ANY UPDATED
UNEMPLOYMENT INSURANCE INTEREST
PAYMENT. THE BUDGET PILL. THE
BUDGET ALSO INCLUDES TECHNICAL
TRAILER BILL LANGUAGE TO CLEAN
UP THE COMMUNITY ECONOMIC
RESILIENCE FUND STATUTE, SUCH AS
REMOVING REFERENCES TO FEDERAL
REPORTING REQUIREMENTS THAT ARE
NO LONGER RELEVANT. LEO CHAZZ
ALAMO WITH THE LEGISLATIVE
ANALYST'S OFFICE. UM WE HAVE
SOME BRIEF COMMENTS ON THE FINAL
ITEM THAT MY COUNTERPART FROM
THE DEPARTMENT OF FINANCE
MENTIONED, WHICH IS THE SPECIAL
FUND LOAN FROM THE STATES
DISABILITY INSURANCE FUND TO THE
STATE. YOU I TRUST FUND FOR THE
PURPOSES OF MAKING THE STATE'S
INTEREST PAYMENT ON THE
OUTSTANDING FEDERAL UI LOANS, SO
SORT OF TWO HIGH LEVEL COMMENTS
AND THEN TO SPECIFIC COMMENTS
ABOUT THIS PROPOSAL THAT THE
HIGH LEVEL COMMENTS TO SORT OF
SITUATE THIS SPECIAL FUND LOAN
ARE FIRST AND FOREMOST THAT THIS
IS ONE OF SEVERAL, AS WAS JUST
DISCUSSED IN THE LAST ITEM OF
SPECIAL FUND LOANS IDENTIFIED IN
THE MAY REVISION. UM THAT ALLOW
THE ADMINISTRATION TO MAINTAIN
DISCRETIONARY SPENDING LEVELS.
UM THAT WERE PROPOSED AS PART OF
THE GOVERNOR'S BUDGET, AND THEY
MAY REVISION. WE THINK THOSE
SPECIAL FUND LOANS TOTAL ABOUT
$2,000,002 BILLION ACROSS THE
MAJOR REVISION ACROSS ALL OF THE
SPECIAL FUND LOANS, SO THIS IS
JUST 300 MILLION OF IT. UM THE
SECOND SORT OF HIGH LEVEL
CONTEXT. POINT TO MAKE IS THAT
THE INTEREST PAYMENT THAT THE
STATE IS SCHEDULED TO MAKE ON
THE FEDERAL YOU I TRUST FUND
LOANS IS NOW A NEW AND PERMANENT
FEATURE OF THE STATE'S BUDGET.
UM, THE STATE CURRENTLY OWES $17
BILLION TO REPAY THE TRUST ONE
LOANS. WE WILL BE MAKING
INTEREST PAYMENTS AS A STATE FOR
MANY YEARS. CUSTOMARILY THE
STATE HAS MADE THOSE INTEREST
PAYMENTS FROM THE STATE'S
GENERAL FUND. UM THOUGH, AT THE
BEGINNING OF THE GREAT RECESSION
, WE MADE THE FIRST YEARS
PAYMENT IN A SIMILAR MECHANISM
BY BORROWING FROM THE S D I
FUND, UM TO MAKE THAT FIRST
INTEREST PAYMENT, SO THOSE ARE
THE GLOBAL CONTEXT SETTING AND
THEN SPECIFICALLY ABOUT THIS
PROPOSAL IN ITS OF ITSELF, UM,
THE STATE'S DISABILITY INSURANCE
FUND. COLLECTS. EMPLOYEE
CONTRIBUTIONS AND PAYS OUT
BENEFITS FOR DISABILITY
INSURANCE AS WELL AS PAID FAMILY
LEAVE IT COLLECTS ABOUT $10
BILLION ANNUALLY, SO THERE'S
$300 MILLION LOAN IS A
RELATIVELY SMALL PORTION OF THE
ANNUAL CONTRIBUTIONS THAT
EMPLOYEES MAKE INTO THE FUND. UM
THE MAY REVISION PROPOSES TO
INCLUDE FORTHCOMING TRAILER BILL
LANGUAGE THAT WOULD PREVENT THE
PAYROLL TAX RATE THAT IN
EMPLOYEES PAY FOR THE S D I
PROGRAM FROM GOING UP IN
RESPONSE TO THIS LOAN, BUT
TECHNICALLY, WE'RE NOT CERTAIN
HOW THAT WOULD WORK. IN ESSENCE,
THERE ARE NO TWO WAYS ABOUT IT.
UM BECAUSE THE SD I FUND IS THE
PAYROLL TAX RATE IS STRUCTURED
EACH YEAR BASED ON A FORMULA IN
STATE LAW THAT SETS THE RATE TO
GENERATE ENOUGH MONEY TO PAY OUT
BENEFITS AND TO ALSO SET ASIDE A
SMALL RESERVE AMOUNT. SO IN
FUTURE YEARS BY REDIRECTING A
PORTION OF THE S D I FUND TO PAY
THE INTEREST RATE. UM THE FIRST
INTEREST PAYMENT ON THE UI FUND.
UM ULTIMATELY, EITHER THE
PAYROLL TAX RATE WILL NEED TO BE
INCREASED TO REPLENISH THOSE
FUNDS OR THE RESERVE REQUIREMENT
. THE AMOUNT OF MONEY THAT'S IN
THE S D I FUND SET ASIDE WILL
HAVE TO BE LOWERED, SO ONE OF
THOSE TWO OUTCOMES WILL OCCUR AS
A RESULT OF THE SPECIAL FUND
LOAN BEING PROPOSED AS PART OF
THE MAY REVISION AND THE LAST
COMMENT. I'LL MAKE SPECIFIC
ABOUT THIS PROPOSAL HAS TO DO
WITH THE RECENT PASSAGE OF SB
951. WHICH INCREASED THE WAGE
REPLACEMENT RATES FOR THE
STATE'S DISABILITY INSURANCE
PROGRAM AND PAID FAMILY LEAVE AS
WELL AS REMOVE THE TAXABLE WAGE
CEILING FOR THE PROGRAM, SP 951
WILL GO INTO EFFECT THE FIRST
STAGE JANUARY 1ST OF 2024 IN THE
SECOND STAGE A YEAR LATER, AND I
BRING THIS UP NOW BECAUSE THE
IMPLEMENTATION OF SP 95 951 AS A
MAJOR OVERHAUL FOR THE STATE'S
SDI PROGRAM. MUDDIES THE WATERS
. UM REGARDING THAT THE FISCAL
POSITION OF THE SD I FUND AND SO
IT'S NOT ENTIRELY CLEAR HOW THIS
RELATIVELY SMALL SPECIAL FUND
LOAN MIGHT AFFECT THE BALANCE
AND SORT OF THE FISCAL POSITION
OF THE SD I FUND IN THE COMING
YEARS. THE ADMINISTRATION'S
MULTI YEAR REPAYMENT PLAN FOR
THE SPECIAL FUND LOANS DOES NOT
INCLUDE A REPAYMENT TARGET DATE
FOR THIS PARTICULAR LOAN. UM SO
WITHOUT KNOWING FOR CERTAIN WHEN
THE ADMINISTRATION PLANS TO
REPAY THE LOAN. IT'S NOT CLEAR
HOW THE LOAN SHIFT IN THIS
RESPECT MIGHT AFFECT THE FISCAL
POSITION OF THE STATE'S
DISABILITY INSURANCE FUND. THANK
YOU. THANK YOU FOR THAT, JUST
MAKING SOME NOTES HERE. BELIEVE
SB 951 WAS A SENATOR HANNAH BETH
JACKSON. DEROSA. I'M SORRY,
DORIS. OH, BILL. UM OKAY. THANK
YOU. JUST A COUPLE OF QUESTIONS
. WHY WAS THE DISABILITY FUND
CHOSEN AS AN ALTERNATIVE SOURCE
OF FUNDING TO PAY THE INTEREST
OF THE UI FEDERAL LOAN? THANK
YOU. CHAIR, PATRICK TOPPING
DEPARTMENT OF FINANCE AGAIN, UM,
DOESN'T TOOTH AND THE IPHONE FOR
THIS PERSON IS LARGELY BASED ON
PRECEDENT AS CHAZ MENTIONED, UM
, THIS WAS USED IN THE EARLY
YEARS FOLLOWING THE GREAT
RECESSION. THE 2011 AND 2012
BUDGET X, BOTH INCLUDED, UM
LOANS IN EXCESS OF $300 MILLION
, RESPECTIVELY, FROM THE DEFUND
TO THE GENERAL FUNDAMENTALS,
LOAN INTEREST PAYMENTS AND THEN
THEY WERE SUBSEQUENTLY REPAID IN
2017. UM YEAH. HOW WILL THE
TRAILER BILL LANGUAGE WORK? HERE
SO I'M ASKING THE BUDGET BILL
LANGUAGES OUT AND IS INCLUDED IN
THE SPRING FINANCE LETTERS THAT
WERE SUBMITTED TO THE
LEGISLATURE. SO THE PROPOSAL
INCLUDES PROVISIONAL LANGUAGE TO
AVOID THE LOAN FROM HAVING AN
IMPACT ON THE DISABILITY
INSURANCE CONTRIBUTION RATES,
CHIEFLY BY ALLOWING THE LOAN, UM
ALLOWING ANY NEED TO CONSIDER
THE LOAN AS CASH IN THE BANK
SORT OF AN ASSET WITHIN WHEN
DETERMINING THE FUND BALANCE FOR
THE CURRENT OR IN THE FUTURE
YEARS. CONTRIBUTION RATES. AND
SO, UM IT ALLOWS THEM TO SORT OF
CONTINUE THAT AS AN ASSET ON THE
BALANCE SHEET OF THE FUND.
DEPARTMENT OF FINANCE AND THE
EVENT, AND THERE ARE CASH FLOW
ISSUES THAT MIGHT ARISE CAN
ACCELERATE THE REPAYMENT DATE
CURRENTLY SCHEDULED FOR 2027,
BUT IN THE EVENT THAT IT NEEDS
TO BE SOONER, THAT IS AN OPTION
THAT IS EASILY EXERCISED. THANK
YOU. AND WHAT IS THE CURRENT
ESTIMATED SURPLUS IN THE FUND?
YES SO THE CURRENT CURRENTLY WE
PROJECT THE FUND BALANCE TO BE
$3 MILLION AT THE END OF
CALENDAR YEAR. 2023 4 POINT
$7,000,000,003 BILLION AT THE
END OF 2023 4.7 MILLION AT THE
END OF 2024 4.7 MILLION BILLION
BILLION. THANK YOU ANY
ADDITIONAL COMMENTS OR
QUESTIONS? OKAY SEEING NONE.
WE'RE GOING TO HOLD THIS ITEM
OPEN FOR THE MOMENT. THANK YOU
VERY MUCH. WE'RE GOING TO MOVE
ON TO ISSUE NUMBER SIX ON
CONSUMER PROTECTIONS.
LAST ONE AT THE PANEL BUYS
LUNCH. I THINK SO. PLEASE BEGIN
WHEN YOU'RE READY. THANK YOU.
MADAM CHAIR, A KOBE WHITE
DEPARTMENT OF FINANCE. I'M JUST
GOING TO BE STARTING OFF, GIVING
A BROAD OVERVIEW ON THE UPDATE
ON CANNABIS TAX REVENUES OVERALL
, SO THEY MAY REVISION REVISED
THE REVENUE FORECAST FOR
CANNABIS EXCISE TAX REVENUE DOWN
RELATIVELY SUBSTANTIALLY FROM
642 MILLION TO 448 485 MILLION
IN FISCAL YEAR 22 23, DOWN FROM
715 MILLION TO 496 MILLION IN
FISCAL YEAR 23 24 SO THE MAIN
DRIVER BEHIND THIS REVISION
DOWNWARD IS REALLY THE FIRST TWO
QUARTERS OF DATA OF TAX DATA FOR
FISCAL YEAR 22 23 THAT CAME IN
AT 243 MILLION. IT WAS
SUBSTANTIALLY BELOW THE
PROJECTIONS OR THE EXPECTATIONS
THAT WE HAD AT AT GOVERNOR'S
BUDGET, UM GOING FORWARD.
THERE'S A SIGNIFICANT
UNCERTAINTY WITH THE FORECAST.
WE HAVE, UM YOU KNOW, WHENEVER
YOU'RE FORECASTING YOU HAD
CANNABIS TAX REVENUES INCREASING
SUBSTANTIALLY BEFORE AND DURING
THE PANDEMIC, AND THEN WE'VE HAD
A SUBSTANTIAL CORRECTION, OR
PERHAPS A BETTER
CHARACTERIZATIONS OF
NORMALIZATION. AND SO THE BASIC
ASSUMPTION BEHIND THE FORECAST
IS SIMPLY THAT WE'RE ASSUMING
THE REVENUES STABILIZED AT THE
LOWER LEVELS THAT WE SAW IN THE
FIRST HALF OF 22 23 GROW FROM
THAT POINT, ROUGHLY IN LINE WITH
THE ECONOMY. AND UH, THE ANDREW
HOME DEPARTMENT OF FINANCE. I'LL
BE PROVIDING ADDITIONAL
INFORMATION ON THE CANNABIS TAX
ALLOCATION. THREE. PROPOSITION
64 SPECIFIES THE ALLOCATION OF
RESOURCES IN THE CANNABIS TAX
FUND, WHICH ARE CONTINUOUSLY
APPROPRIATED. EXPENDITURES ARE
PRIORITIZED FOR REGULATORY AND
ADMINISTRATIVE WORKLOAD
NECESSARY TO IMPLEMENT,
ADMINISTER AND ENFORCE THE
CANNABIS ACT, FOLLOWED BY
RESEARCH AND ACTIVITIES RELATED
TO LEGALIZATION OF CANNABIS AND
THE PAST EFFECTS OF ITS
CRIMINALIZATION. ONCE THESE
PRIORITIES HAVE BEEN MET, THE
REMAINING FUNDS ARE DIRECTED TO
WHAT IS KNOWN AS ALLOCATION
THREE PROGRAMS, WHICH INCLUDE
YOUTH EDUCATION, PREVENTION,
EARLY INTERVENTION AND TREATMENT
, ENVIRONMENTAL PROTECTION AND
PUBLIC SAFETY RELATED
ACTIVITIES. MAYBE 1 95 REQUIRES
THAT THESE ALLOCATION THROUGH
PROGRAMS ARE FUNDED AT A
BASELINE OF APPROXIMATELY 670
MILLION TO THE EXTENT AVAILABLE
AND INCLUDED 150 MILLION GENERAL
FUND APPROPRIATION TO BACKFIELD
REVENUES TO HELP MEET THAT
BASELINE. A REVISION ESTIMATES
567.4 MILLION WILL BE AVAILABLE
FOR ALLOCATION. 3 23 24, WHICH
INCLUDES 150 MILLION GENERAL
FUND TO BACKFILL, THE ESTIMATED
DECLINE IN REVENUES. THESE
FIGURES REFLECT A TOTAL DECREASE
OF 102.2 MILLION COMPARED TO THE
GOVERNOR'S BUDGET ESTIMATES.
ALLOCATION THREE PROVIDES
FUNDING TO THREE AREAS. 60% OF
ALLOCATION THROUGH FINDING IS
DISPERSED FOR THE EDUCATION
PREVENTION AND TREATMENT OF
YOUTH, SUBSTANCE USE DISORDERS
AND SCHOOL RETENTION. MAY
REVISION ESTIMATES 340.4 MILLION
IS AVAILABLE FOR 23 24 20% OF
ALLOCATION. THREE FINDING IS
DISPERSED FOR THE CLEAN UP
REMEDIATION AND ENFORCEMENT OF
ENVIRONMENTAL IMPACTS. CREATED
BY ILLEGAL CANNABIS CULTIVATION
MADE REVISION ESTIMATES 113.5
AVAILABLE IN 23 24. THE
REMAINING 20% OF ALLOCATION.
THREE FUNDING IS DISPERSED FOR
PUBLIC SAFETY RELATED ACTIVITIES
. UM MAJOR REVISION ESTIMATES.
113.5 MILLION IS AVAILABLE FOR
23 24. AND ALSO BE, UM.
PRESENTING ON THE CALIFORNIA
PRIVACY PROTECTION AGENCIES. M.
OUR PROPOSAL LET'S GO THROUGH
ALL OF THEM. AND THEN WE'LL, UM,
HELIO, THAT'S OKAY. QUESTIONS.
LIKE CALIFORNIA PRIVACY
PROTECTION AGENCY IS TASKED WITH
THE IMPLEMENTATION AND
ENFORCEMENT OF THE NATION'S
FIRST COMPREHENSIVE CONSUMER
PRIVACY LAW. THAT CALIFORNIA
CONSUMER PRIVACY ACT KNOWN AS
THE CCP, A, WHICH IS AMENDED BY
PROPOSITION 24, THE CALIFORNIA
PRIVACY RIGHTS ACT, THE CCP A
GIVES CALIFORNIA CONSUMERS
IMPORTANT PROTECTIONS SUCH AS
THE RIGHT TO ACCESS, DELETE,
CORRECT AND STOP THE SALE AND
SHARING OF THEIR PERSONAL
INFORMATION, AMONG OTHER
PROTECTIONS. AND APPLIES TO
BUSINESSES ABOVE A CERTAIN
THRESHOLD. THE AGENCY IS
REQUESTING 1.8 MILLION GENERAL
FUND AND SEVEN POSITIONS IN 23,
24 1.2 MILLION AND 24 25 ONGOING
COMMUNITY OF COST OF LIVING
ADJUSTMENTS, AS PROVIDED IN
PROPOSITION 24 TO IMPLEMENT AND
ENFORCE THE CCP, A THE AGENCY'S
ENFORCEMENT AUTHORITY COMMENCES
JULY 2023. THE AGENCY WILL
REQUIRE EXPERT STAFF WHO CAN
UNDERSTAND, INTERPRET AND
RESPOND TO COMPLEX DATA USE
PRACTICES. FIVE OF THE SEVEN
POSITIONS BEING REQUESTED ARE
WITHIN THE AGENCY'S ENFORCEMENT
DIVISION TO MEET ITS STATUTORY
OBLIGATIONS OF ENFORCEMENT. THE
OTHER TWO POSITIONS ARE WITHIN
THE AGENCY'S AUDIT DIVISION TO
DEVELOP AND APPLY PRIVACY
COMPLIANCE AUDIT PROCEDURES. AND
WE'LL WORK CLOSELY WITH
ENFORCEMENT DIVISION AND
BUSINESSES TO ADDRESS
DEFICIENCIES. LASTLY THE
PROPOSAL INCLUDES A REQUEST TO
INCREASE THE AGENCY'S BUDGET FOR
ONGOING COMMUNITY OF COST OF
LIVING ADJUSTMENT FOR FISCAL
YEARS. 2021 22 22 23 23 24. THIS
WILL RESULT IN A ONE TIME CALL
IT TRUE UP TO FUND A PUBLIC
OUTREACH AND EDUCATION CAMPAIGN
, FOCUSING ON SMALL TO MEDIUM
SIZED BUSINESSES. AND TO PROMOTE
PUBLIC AWARENESS OF THE RISK
RESPONSIBILITIES AND RIGHTS
RELATED TO THE PROCESSING OF
PERSONAL INFORMATION. THE
ONGOING AUGMENTATION WILL FUND
THE SEVEN POSITIONS WHICH ARE
NECESSARY FOR THE AGENCY TO
FULFILL ITS MISSION TO PROTECT
CALIFORNIA CONSUMERS. ASCENCIO
DEPARTMENT OF FINANCE. THE LAST
ISSUE IS A TECHNICAL ADJUSTMENT
FOR THE DEPARTMENT OF CONSUMER
AFFAIRS, AND THEY'RE REQUESTING
A NET ZERO ADJUSTMENT TO MOVE AN
INDIRECT DISTRIBUTED COSTS IN
THE DEPARTMENT'S INTERNAL PRO
RATA AND THIS IS MOVING $7000
FROM THE PHYSICAL THERAPY BOARD
TO THE ACUPUNCTURE BOARD. THANK
YOU. THANK YOU. LEO PLEASE. SETH
KIRSTEN WITH THE L A. OH WE HAVE
A COUPLE OF COMMENTS ON CANNABIS
TAX REVENUES. UM THE
ADMINISTRATION'S. CANNABIS TAX
REVENUE ESTIMATE FOR 22 23 IS
NEARLY IDENTICAL TO AN ESTIMATE
THAT WE PUBLISHED A COUPLE OF
MONTHS AGO SHORTLY AFTER THE
DEPARTMENT OF TAX AND FEE
ADMINISTRATION PUBLISHED THEIR
MOST RECENT QUARTERLY TAX
REVENUE ESTIMATES. UM AND SO, IN
THAT SENSE, WE HAVE NO NO
DISAGREEMENTS THERE. UM ARE SO
TYPICALLY THE DEPARTMENT OF TAX
AND FEE ADMINISTRATION PUBLISHES
THEIR NEXT QUARTERLY REVENUE
UPDATE IN LATE MAY, AND WE
EXPECT TO UPDATE OUR REVENUE
FORECAST AT THAT TIME. ONE MORE
ONE MORE TIME BEFORE BEFORE THE
LEGISLATURE NEEDS TO, UH,
FINALIZE THE BUDGET. UM AND
THERE ARE OTHER COMMENT IS THAT
THE. ADMINISTRATION'S CANNABIS
TAX REVENUE ALLOCATIONS. ASSUME
UH, $150 MILLION DISBURSEMENT
FROM THE CONTROLLER IN, UH TO
SUPPORT. UH 2023 24 SPENDING. SO
JUST TO RECAP A B 1 95 PASSED
LAST YEAR. APPROPRIATED THIS
$150 MILLION GENERAL FUND AND
SET IT ASIDE TO BE SPLIT BETWEEN
TWO POSSIBLE DISBURSEMENT DATES
ONE IN 23 24, ANOTHER IN 24 25.
SO THE UNDER THE ADMINISTRATIONS
PROJECTED ALLOCATIONS, THE
ENTIRE 150 MILLION AMOUNT WOULD
BE USED IN 23 24. SO THEN SUBS
AS AS THE ADMINISTRATION NOTED
THERE ALREADY ANTICIPATING THAT
FUNDING WILL FALL SHORT OF THE
BASELINE TARGET IN 23 24, THEN
UNDER THEIR PROJECTIONS,
CONSIDERING THAT THE 100 ENTIRE
150 MILLION, UM BACKFILL WOULD
BE USED UP IN 23 24, THEN
FUNDING SUBSEQUENTLY WOULD
DECLINE YET AGAIN IN 24 25 EVEN
LOWER THAN THEN THE 23 24
LEVELS. THAT CONCLUDES OUR
COMMENTS. THANK YOU. THANK YOU
VERY MUCH ARE THE CANNABIS TAX
REVENUES ANTICIPATED TO
STABILIZE OR TREND DOWN? KOBE
WHITE KOBE WHITE DEPARTMENT OF
FINANCE, SO AT THIS JUNCTURE, WE
EXPECT THEM TO STABILIZE WHAT WE
SAW DURING THE PANDEMIC AS WE
SAW WHOLESALE PRICES REALLY
INCREASE FROM AND DEMAND DEMAND
DRIVEN. WE SAW SOME OVERSUPPLY
IN THE CULTIVATION MARKET. AND
WE, UH WE HAVE SOME EVIDENCE
THAT THOSE THINGS HAVE
STABILIZED. AND SO THE
ASSUMPTION IN THE EARLY 2023 I
SHOULD SAY SO. IT WAS REALLY
2022. WERE YOU SAW THIS HAPPEN
AND SO GOING FORWARD. THAT IS
THE ASSUMPTION THAT PRICES
STABILIZE, UH, CONSISTENT WITH
WHAT WE'VE SEEN IN EARLY 2023
THAT WE WOULD HAVE MODEST GROWTH
FROM HERE IN LINE WITH THE
ECONOMY. CANNABIS CONSUMPTION
INCREASED DURING COVID. THANKS
WHAT ARE THE ODDS? ELIO AND THE
RESPONSE? AH SETH CHRISTINE ELIO
IN OUR FEBRUARY PROJECTIONS, WE
ACTUALLY ANTICIPATED A SOMEWHAT
, UM LARGER YEAR OVER YEAR
GROWTH IN, UH THAN THE
ADMINISTRATION. WELL, WE'LL SEE
WHAT WHAT AH! AH IF OUR LATER
NUMBERS ARE SIMILAR, BUT WE
AGREE WE DO NOT. I MEAN, AS, AS
THE ADMINISTRATION NOTED EARLIER
. THIS REVENUE SOURCES IS
TREMENDOUSLY UNCERTAIN, BUT OUR
BEST ESTIMATE MOST RECENTLY WAS
SOME SOME GROWTH IN IN THE NEXT
YEAR. THANK YOU VERY MUCH ANY
ADDITIONAL COMMENTS OR
QUESTIONS? YES MAJORITY LEADER.
WE DO KNOW THAT THERE IS
LEGISLATION BEING PROPOSED BY
OUR COLLEAGUE ASSEMBLYMEMBER'S
RUBIO. Tð. TO BRING EVERYBODY
INTO THE LEGAL FOLD SO THAT WE
CAN THEN ACTUALLY COLLECT THE
TAXES. WOULD YOU ANTICIPATE THAT
SHOULD THAT LEGISLATION PASSED
THAT THAT WOULD MAKE A CHANGE IN
THE TAX REVENUE GROWTH. KNOWING
THAT WE ARE NOW REQUIRING THAT,
UM, I THINK UNDER THE
LEGISLATION, THE. THERE ARE SO
MANY ILLEGAL, UM GROWERS AND.
WE'RE NOT TO BE. WE'RE NOT ABLE
TO COLLECT THE TAXES THAT WE
WOULD HAVE ANTICIPATED. SHOULD
THE LEGISLATION PASSED? DO YOU
ANTICIPATE A CHANGE AS A RESULT
OF THAT? SETH KIRSTEIN, LAO WE
HAVEN'T HAD A CHANCE TO TAKE
TAKE A CLOSE. LOOK AT THAT, BILL
. CERTAINLY ANY ANY, UH,
SUBSTANTIALLY SUCCESSFUL EFFORT
TO AH, AH, BRAIN MOVE SOME, UH
ACTIVITY AND CONSUMPTION FROM
THE ILLICIT MARKET INTO THE
LEGAL MARKET WOULD WOULD, OF
COURSE, HAVE A POSITIVE EFFECT
ON REVENUES. AND BUT BUT WE
HAVEN'T HAD A CHANCE TO AH, TO
REALLY DIG INTO THAT LEGISLATION
TO DEVELOP SORT OF A VIEWPOINT
ON IT ON THE MAGNITUDE OF THAT
EFFECT. THANK YOU. THANK YOU. UH
THERE ARE NO ADDITIONAL COMMENTS
OR QUESTIONS. WE'RE GOING TO
LEAVE THIS ITEM OPEN FOR THE
MOMENT. THANK YOU VERY MUCH.
WE'RE GOING TO MOVE ON TO
GENERAL GOVERNMENT ISSUE SEVEN,
STARTING WITH A PRESENTATION
FROM THE STATE CONTROLLER'S
OFFICE.
PLEASE BEGIN WHEN YOU'RE READY.
UM JIM DOYLE DEPARTMENT OF
FINANCE. AND I HAVE TWO REQUESTS
FROM THE COMPTROLLER'S OFFICE.
FIRST ONE IS THE CALIFORNIA
STATE PAYROLL SYSTEM. AH PROJECT
REQUEST, WHICH IS BREAK IT DOWN
INTO LIKE NEW MONEY AND OLD
MONEY. I MEAN, THEY WANT ALMOST
$50 MILLION GENERAL FUND IN THE
BUDGET YEAR. AND TWO THIRDS OF
THAT IS CONDITIONAL UPON THE
PROJECT RECEIVING APPROVAL FROM
THE CALIFORNIA DEPARTMENT OF
TECHNOLOGY FOR THEIR STAGE FOUR
PAL PROCESS SUBMISSION. THAT'S
THE 28 POINT. AH! 393 MILLION
FOR DART, UH, DEPARTMENT. AGENCY
READINESS. TEAMS. AND SO. WE'RE
USING THE SAME CONDITION THAT
WAS IN THE BUDGET LAST YEAR FOR
THE FUNDING THAT WAS
APPROPRIATED IN THE 2022 BUDGET
ACT FOR THE SYSTEM INTEGRATOR
CONTRACT. IT'S UM. IT'S ANOTHER
PART OF THE REQUEST THE OLD
MONEY PART OF THE REQUEST. WE'RE
REQUESTING RE APPROPRIATION OF
THAT FUNDING. SO IT'S THE SAME
CONDITION THAT WAS PUT IN PLACE
LAST YEAR. FOR THIS SYSTEM
INTEGRATOR FUNDING THAT THE
PROJECT HAS TO REALLY GET SOME
TRACTION. AND BY THAT, I MEAN IT
HAS TO PASS STAGE FOR THE POWER
PROCESS. AND BECOME AN APPROVED
PROJECT AND THEN IT CAN HAVE
ACCESS TO THE FUNDING FOR THE
SYSTEM INTEGRATOR CONTRACT AND
ALSO FUNDING FOR THE DEPARTMENT
AGENCY READINESS TEAMS. BESIDES
THAT, THERE'S SOME FUNDING IN
THEREFORE, AND CELERY CONTRACTS,
EXTERNAL CONSULTING CONTRACTS.
AND. SOME MIGHTY POSITIONS FOR
THE COMPTROLLER'S OFFICE. AND
SOME TRAINER POSITIONS FOR THE
COMPTROLLER'S OFFICE. BUT THE
VAST MAJORITY OF THE REQUEST IS
CONDITIONAL UPON THE PROJECT,
GETTING TRACTION AND GETTING
THROUGH THE POWER PROCESS. STAGE
FOUR. AT WHICH TIME THEY'LL HAVE
, YOU KNOW AN APPROVED PROJECT
AND CAN MOVE FORWARD. AND THEN
THE OTHER. THE OTHER PROPOSAL IS
MODIFICATION. WHAT WE SUBMITTED
IN THE GOVERNOR'S BUDGET, WHICH
IS A RENEWAL OF THE IDEA. MESS
CONTRACT. UM AT THE TIME. THE
GOVERNOR'S BUDGET PROPOSAL WAS
ESTIMATED AT FIVE YEAR TERM OF
THE CONTRACT. 10% INCREASE IN
THE COST THAT STANDARD RENEWAL
PRACTICES BUT AS IT TURNED OUT
AS A RESULT OF FINAL
NEGOTIATIONS WITH THE VENDOR,
THEY'RE ONLY OFFERING THREE YEAR
AND IT'S AN EXTRA ABOUT $2.5
MILLION A YEAR. SO THE TOTAL
COST HAS GONE DOWN A LITTLE BIT,
BUT THEY'RE ONLY COMMITTING TO
THREE YEARS TO SUPPORT THE
SYSTEM FOR THREE YEARS, AND THE
STATE REALLY DOESN'T HAVE ANY
CHOICE. I MEAN, THESE ARE
MISSION CRITICAL SYSTEMS.
THERE'S SOME OF THEM ARE
SUPPOSED TO TRANSITION TO FISCAL
OR TO THE PAYROLL PROJECT. AND
UNTIL THOSE. CAPABILITIES ARE
DEVELOPED. THE STATE'S GONNA BE
DEPENDENT ON THIS IDEA. MESS
PLATFORM SO WE REALLY DON'T HAVE
ANY CHOICE BUT TO YOU KNOW, PAY
PAY WHATEVER THE VENDORS ASKING,
IT SEEMS, UH TO CONTINUE WITH
THIS PLATFORM. SO THOSE ARE THE
TWO, UH, REQUEST FROM THE
COMPTROLLER'S OFFICE. HAPPY TO
TAKE ANY QUESTIONS. HELLO NICK
SCHROEDER WITH THE LAO. UM THE
CSP S PROPOSAL IS FOR BOTH S CEO
AND CALLIE CHART AND A COLLEAGUE
OF MINE WILL ADDRESS THAT WHEN
CALLIE CHARGES UP HERE AT THE
NEXT PANEL, SO OTHER THAN THAT,
WE DON'T HAVE ANY COMMENTS ON
THIS. THERE ARE NO COMMENTS OR
QUESTIONS THAT WE'RE GONNA MOVE
ON TO EXPOSITION PARK. THANK
YOU.
GOOD AFTERNOON, MIKE MCGINNIS
WITH THE DEPARTMENT OF FINANCE.
THERE ARE SIX PROPOSALS INCLUDED
IN THE MAY REVISION. THERE ARE
SIX PROPOSALS INCLUDED IN THE
MAY REVISION FOR EXPOSITION
PARK. THE FIRST IS THE PARK WIDE
SURVEILLANCE SYSTEM.
SUPPLEMENTAL APPROPRIATION. THIS
PROPOSAL REQUESTS AN ADDITIONAL
600,000 FROM THE EXPOSITION PARK
IMPROVEMENT FUND FOR THE PARK
WIDE SURVEILLANCE SYSTEM
PROJECT. THE DEPARTMENT OF
GENERAL SERVICES HAS NEARLY
COMPLETED THE PRELIMINARY PLANS
PHASE OF THE PROJECT AND HAS
IDENTIFIED THAT THERE IS A
SIGNIFICANT AMOUNT OF ADDITIONAL
REAL ESTATE DUE DILIGENCE WORK
THAT NEEDS TO BE DONE RESULTING
IN THIS REQUEST. THE SECOND
PROPOSAL IS THE SOUTHEAST
UNDERGROUND PARKING STRUCTURE.
THIS PROPOSAL INCLUDES 14
MILLION FROM THE PUBLIC BUILDING
CONSTRUCTION FUND TO START THE
NEW SOUTHEAST UNDERGROUND
PARKING STRUCTURE PROJECT. THIS
PROJECT WILL PROVIDE AN
ADDITIONAL 1500 UNDERGROUND
PARKING SPOTS, SERVICE LEVEL
GREEN SPACE AND EVENT SPACE.
THIS PROJECT WILL PREPARE
EXPOSITION PARK FOR THE UPCOMING
OLYMPICS. WORLD CUP AND OTHER
LARGE EVENTS IN THE PARK AND
WILL PROVIDE LONG TERM REVENUE
GENERATION FOR THE EXPOSITION
PARK IMPROVEMENT FUND. NEXT IS
THE OPERATIONAL START UP FOR THE
CALIFORNIA SCIENCE CENTER FACE
THREE PROPOSAL. THIS PROPOSAL
INCLUDES THREE POSITIONS AND 1.4
MILLION EXPOSITION PARK
IMPROVEMENT FUND IS THE FIRST
STEP TOWARDS STAFFING THE
CALIFORNIA SCIENCE CENTER PHASE
THREE PROJECT, WHICH IS A NEW
200,000 SQUARE FOOT FACILITY,
EXPECTED TO OPEN TO THE PUBLIC
IN SPRING OF 2025. THEN THERE
ARE THE PART PARTNERSHIPS AND
OPERATIONS PROPOSAL AND THE
ADMINISTRATION SUPERVISOR
PROPOSAL FOR THE OFFICE OF
EXPOSITION PARK MANAGEMENT.
THESE POSITIONS WILL SUPPORT
ADDITIONAL REVENUE GENERATION
AND COMMUNITY OUTREACH IN
SUPPORT OF EXPOSITION PARK. AND
LAST THERE IS THE PEACE OFFICERS
EXPOSITION PARK RE APPROPRIATION
PROPOSAL. THIS PROPOSAL RE
APPROPRIATE FUNDING FROM 2020
2022 BUDGET TO PROVIDE TRAINING
FOR THE MUSEUM SECURITY OFFICERS
WITH AN EXPOSITION PARK TO MEET
, UH, PEACE OFFICER STANDARDS
AND TRAINING CERTIFICATION
REQUIREMENTS. THANK YOU, RACHEL
SAILORS WITH THE L A. OH WE'RE
LOOKING IN PARTICULAR AT THE
UNDERGROUND PARKING STRUCTURE
PROPOSAL A LITTLE BIT MORE
CLOSELY. SOME OF THE QUESTIONS
WE'RE LOOKING AT US WHAT FUNDING
SOURCES BEING PROPOSED FOR DEBT
SERVICE AND IS THAT THE
APPROPRIATE SOURCE AND ALSO THE
URGENCY OF THAT PROJECT, SO WE
EXPECT TO HAVE SPECIFIC
RECOMMENDATIONS TO LATER THIS
WEEK. MY QUESTIONS ARE ALSO
RELATED TO THE SOUTHEAST
UNDERGROUND PARKING STRUCTURE,
SARAH PARTICULAR REASON WHY THE
PROPOSAL WAS SUBMITTED DURING
THE MAY REVISE, AND NOT DURING
EARLIER DISCUSSIONS. SO THIS
PROPOSAL WAS INFORMED BY A STUDY
WHICH IDENTIFIED THE MOST
EFFECTIVE WAY TO ADD THIS
ADDITIONAL PARKING WITHIN
EXPOSITION PARK WHILE MEETING
THE EXISTING LEGAL REQUIREMENTS
OF VARIOUS LEASES WITHIN THE
PARK AND PROVIDING FOR THE
MAXIMUM AMOUNT OF GREEN SPACE ON
THE SURFACE LEVEL. WHEN WAS THAT
STUDY RELEASED? THE STUDY WAS
COMPLETED ONLY JUST RECENTLY. I
DON'T KNOW THAT HAS ACTUALLY
BEEN RELEASED, BUT WE CAN
CERTAINLY LOOK TO PROVIDE IT TO
YOUR STAFF. OKAY THANK YOU. AND
AT THIS TIME, WHAT IS THE BEST
PROJECTION FOR THE TOTAL COST?
SHOULD THE PARK INSTRUCTION
PROJECT MOVE FORWARD, SO THE
TOTAL COST.
APPROXIMATELY 380 MILLION. AND
THAT WOULD BE A PUBLIC BUILDING
CONSTRUCTION FUND THAT I'M SORRY
FROM THE PUBLIC BUILDING
CONSTRUCTION FUNDS AT LEAST
REVENUE BOND FINANCING. THANK
YOU AGAIN, MADAM CHAIR. ONE OF
THE IMPORTANT QUESTIONS IS WHAT
WILL BE PAYING THE DEBT SERVICE
ON THAT LEASE REVENUE BONDS, SO
THANK YOU. ANY ADDITIONAL
COMMENTS OR QUESTIONS. AH SEEING
NONE. YOU SAY YOU HAVE TWO
MEMBERS OF THE DIOCESE HERE WHO
ARE TROJANS. LOOKING TO SEE WHAT
ALL OF THAT'S GOING TO
POTENTIALLY LOOK LIKE FOR THE
LARGER COMMUNITY AROUND THE
STUDENTS, THE COMMUNITY, YOU
KNOW, AND IT'S REALLY
INTERESTING. I THINK I JUST JUST
A COMMENT. WE'RE DOING A LOT OF
WORK. AROUND LEGISLATION RELATED
TO PARKING AND HOUSING, AND IT'S
INTERESTING THAT WE'RE ALSO
LOOKING AT MORE PARKING AS WE
REDUCE PARKING AND OTHER AREAS.
WE'RE LOOKING AT MORE PARKING AT
EXPOSITION PARK. BUT THERE'S
SUCH A AN INCREDIBLE
OPPORTUNITY, I THINK FOR TOURISM
AND TO BRING IN FOLKS INTO INTO
THAT PARTICULAR COMMUNITY AND
REALLY EXCITED ALSO, NOW THAT
WE'RE POST COVID TO SEE SO MANY
STUDENTS RETURN TO THE MUSEUMS,
AND NOW THAT THE SHUTTLE IS
GOING TO BE FACING UPWARD. I WAS
JUST THERE. AND IT'S ONE OF THE
LAST EVENTS THAT THE MAYAN
EXHIBIT AT THE CALIFORNIA
SCIENCE MUSEUM. INCREDIBLE IF
YOU HAPPEN TO BE THERE, GO CHECK
IT OUT BECAUSE THEY HAVE SOME
REALLY BEAUTIFUL PIECES FROM, UH
THE MAYAN COMMUNITY VISITING FOR
THE FIRST TIME AT EXPOSITION
PARK AT THE CALIFORNIA SCIENCE
MUSEUM. THANK YOU. WE'RE GOING
TO LEAVE THIS ITEM OPEN FOR THE
MOMENT. LET'S MOVE ON TO THE
SECRETARY OF STATE AND VETERANS
AFFAIRS.
PLEASE BEGIN WHEN YOU'RE READY.
THANK YOU. GOOD AFTERNOON CHAIRS
AND MEMBERS OF THE COMMITTEE.
I'M CHARLIE LASALLE WITH THE
DEPARTMENT OF FINANCE. I'LL
PROVIDE A BRIEF OVERVIEW OF THE
SECRETARY OF STATE PROPOSALS. WE
WERE ASKED TO MENTION AND THEN
HEADED TO MY COLLEAGUES TO
PROVIDE A BRIEF OVERVIEW OF THE
DEPARTMENT OF VETERANS PER
AFFAIRS PROPOSALS. THE SECRETARY
OF STATE'S STAFFING RESOURCES AS
WELL START UM, THE SECRETARY OF
STATE REQUESTS 1.377 MILLION
GENERAL FUND AND 1.3 TO 4
BUSINESS FEES FUND ONGOING TO
SUPPORT OPERATIONS. AT THE
SECRETARY OF STATE, SPECIFICALLY
THE POLITICAL REFORM. THE
INFORMATION TECHNOLOGY, THE
MANAGERIAL SERVICE DIVISIONS AND
THE STATE ARCHIVES PROGRAM HAVE
EXPERIENCED INCREASED AND MORE
COMPLEX WORKLOAD OVER THE LAST
SEVERAL YEARS, RESULTING IN
INCREASED ONGOING COSTS. THE
TOTAL REQUEST IS $2.7 MILLION.
NEXT I'LL GO ONTO THE CAL ACCESS
REPLACEMENT PROJECT THAT COULD
THE SECRETARY OF THE STATE
REQUESTS SIX POINT 923 GENERAL
FUND ONE TIME TO SUPPORT THE CAL
ACCESS REPLACEMENT PROJECT. THIS
BRINGS THE TOTAL AMOUNT
AVAILABLE FOR THIS PROJECT IN 23
24 TO 12.310 MILLION FUND. THIS
FUNDING SUPPORTS 33 EXISTING
POSITIONS, CONTRACT SERVICES,
TECHNOLOGY COSTS AND PROJECT
PLANNING AND EXECUTION
ACTIVITIES. I'LL TURN OVER TO MY
COLLEAGUES TO DISCUSS THE
CALVERT PROPOSALS. GOOD
AFTERNOON CHAIR. CARILLO MEMBERS
OF THE SUBCOMMITTEE IS CHARLIE
MENTIONED. I'M ANTHONY FRIENDS
WITH DEPARTMENT OF FINANCE, AND
I WILL PROVIDE A BRIEF OVERVIEW
OF THE CALIFORNIA DEPARTMENT OF
VETERANS AFFAIRS. THREE BUDGET
CHANGE PROPOSALS FOR THE 2023 24
MAY REVISION. THE FIRST BCP
TITLED INCREASED SUPPORT FOR
NURSING OPERATIONS. REQUEST $25
MILLION ONGOING GENERAL FUND TO
PROVIDE CONTINUITY FOR THE
DEPARTMENT'S CRITICAL NURSING
DUTIES. OVERALL THE GOAL OF THE
BCPS TO INCREASE RETENTION AND
HOPEFULLY, RECRUITMENT OF
PERMANENT REGISTERED NURSE
LICENSED VOCATIONAL NURSE AND
CERTIFIED NURSING ASSISTANT
POSITIONS ACROSS THE VETERANS
HOMES. THE SECOND BCP TITLED
YACHT BILL. FIRE SERVICE
CONTRACT REQUEST $535,000
GENERAL FUND IN 23 24 $800,000
IN 24 25 ONGOING TO FIND AN
INCREASE IN COST FOR FIRE
PREVENTION SERVICES AT THE
YONVILLE HOME. THESE ADDITIONAL
RESOURCES WILL HELP AVOID
NEGATIVE IMPACTS TO THE HOMES
OPERATIONS SINCE THE HOME CANNOT
ABSORB THESE INCREASED COSTS ON
AN ONGOING BASIS. AND THE THIRD
BCP TITLED HEADQUARTERS BUILDING
ELECTRICAL MAINTENANCE REQUEST.
$21,950,000.12 GENERAL FUNDS TO
UPGRADE THE DEPARTMENT'S
OUTDATED ELECTRICAL
INFRASTRUCTURE AND ITS DOWNTOWN
SACRAMENTO HEADQUARTERS BUILDING
WITH THE SYSTEM BEING SO OLD
REPLACEMENT PARTS ARE
UNAVAILABLE AND VAST MAJORITY OF
THE ELECTRONIC ELECTRICAL PANELS
EXCUSE ME ARE OVER CAPACITY.
THIS PRESENTS A SERIOUS FIRE,
LIFE AND SAFETY ISSUE FOR THE
STAFF WORKING THERE AND ANY
ELECTRICAL OUTAGE AT THE HQ
BUILDING ALSO AFFECTS THE EIGHT
VETERANS, HOMES AND SERVICES TO
VETERANS ACROSS THEMSELVES
ACROSS THE STATE. SO WITH THAT
I'M AVAILABLE FOR QUESTIONS, AND
WE ALSO HAVE CALVET
REPRESENTATIVES HERE IN CASE
THERE ARE ANY DETAILED PROGRAM
QUESTIONS. THANK YOU, LEO. NICK
SCHROEDER WITH THE L A. OH WE
HAVE NO COMMENTS ON THE
SECRETARY OF STATE'S PROPOSALS,
BUT ON THE NURSE STAFFING
OPERATIONS OF THE VETERANS HOMES
WE HAVE SOME OUTSTANDING
QUESTIONS BOTH TO THE
MINISTRATIONS AS WELL AS TO THE
UNION S C I U LOCAL 1000, AS THE
ADMINISTRATION INDICATED THE
PROPOSAL IS INTENDED PRIMARILY
TO ADDRESS RECRUITMENT AND
RETENTION ISSUES AMONG NURSING
STAFF AT THE HOMES. UM AND
CONSIDERING THE ADMINISTRATION
IS CURRENTLY NEGOTIATING NEW M O
U. S WITH UM, MOST OF THE STATES
BARGAINING UNITS, INCLUDING
THOSE REPRESENTED BY S E I U UM
WE THINK THAT IT MIGHT BE
PREMATURE FOR THE ADMINISTRATION
TO THINK THAT CANNOT RESOLVE
RECRUITMENT RETENTION ISSUES AT
THE BARGAINING TABLE. BUT AGAIN,
WE STILL HAVE OUTSTANDING
QUESTIONS, SO WE'RE STILL
LOOKING INTO IT. UM ONE POSSIBLE
OPTION COULD BE IF THESE FUNDS
ARE NECESSARY TO UM, CREATE SOME
SORT OF TRANSITION TO IMPLEMENT
SOMETHING THAT WERE ADOPTED AT
THE BARGAINING TABLE. THERE
COULD BE A ONE YEAR LIMIT TERM
APPROVAL OF THIS FUNDING RATHER
THAN BEING AN ONGOING $25
MILLION APPROPRIATION. UM OR IF
THE PROBLEM OF RECRUITMENT
RETENTION BE ADDRESSED DIRECTLY
AT THE BARGAINING TABLE THAN UM
, THE REQUEST COULD BE DENIED
OUTRIGHT. THANK YOU FOR THAT, UM
SOME SOME FOLLOW UP QUESTIONS ON
THE VETERANS AFFAIRS PROPOSALS.
CAN YOU CLARIFY HOW THE 25
MILLION FOR NURSE OVER TIME WILL
BE USED? UM, AND IN ADDITION IS
THIS TO SUPPORT STATE POSITIONS
OR THIRD PARTY STAFFING
CONTRACTS? OF COURSE, SO THE $25
MILLION WAS DEVELOPED FROM TWO
DIFFERENT SOURCES. UM NUMBER
ONE, UH, OVERTIME COSTS FOR THE
PAST TWO CALENDAR YEARS, WHICH
HAVE BEEN ROUGHLY $22 MILLION.
SO $11 MILLION COMES FROM
OVERTIME COSTS. AND THEN THE
REMAINING $14 MILLION COMES FROM
A B 1 79, WHICH WAS BUDGET BILL
JR FOR THE 2022 BUDGET ACT, AND
THAT INCLUDED $14 MILLION.01
TIME PER CALVET TO FUND REGISTRY
COSTS. UM AND I WILL SAY THAT
EVEN THOUGH THERE ARE THOSE TWO
AMOUNTS THAT JUST REPRESENTS THE
UNIVERSE OF NURSING COST
OPERATIONS FOR THE HOMES, BUT
THE PLAN IS TO ALLOCATE THE
ENTIRE 25 MILLION TO THE
DEPARTMENT'S MAIN HEADQUARTERS
BUDGET AND THEN ALLOCATE FUNDING
WHETHER IT'S REGISTRY OR
OVERTIME TO INDIVIDUAL HOMES
BASED ON THEIR NEED, BECAUSE, AS
YOU KNOW, THE HOME IS VERY IN
SIZE. AND NEED DO YOU HAVE A
BREAKDOWN AS TO THAT, OVER TIME
BEING TO ACTUAL STATE POSITIONS
OR TO THIRD PARTY CONTRACTS?
RELATED TO THE OVERTIME. I WOULD
HAVE TO DEFER TO THE APARTMENT
ON THAT, BUT WE CAN DEFINITELY
PROVIDE SOME INFORMATION RELATED
TO OVERTIME COSTS AS IT APPLIES
AT LEAST TWO, UM, PERMANENT
STATE POSITIONS, OKAY? I THINK
THAT BE GOOD FOR US TO HAVE A
BETTER HANDLE ON. HOW DOES THIS
RELATE TO THE SEARCH STAFFING
FUNDING THE LEGISLATURE APPROVED
LAST YEAR? EXCUSE ME, THAT IS
THE SAME SURGE STAFFING AT THE
$14 MILLION FROM 81 79 71. MAYBE
WANTS TO ANYONE. 1 79 EXCUSE ME.
I'M SORRY. ONCE ONLY NINE. ANY
ADDITIONAL COMMENTS OR
QUESTIONS. I ALSO WANT TO JUST
COMMENT ON THE KILL ACCESS
REPLACEMENT PROJECT SECRETARY
WEBER TESTIFIED IN PERSON AND
APPRECIATE HER TAKING THE TIME
TO COME TO BUDGETS OF FOUR LAST
MONTH ON THE IMPORTANCE OF THIS
PROJECT, AND SO JUST APPRECIATE
AND MOVING ALONG IN THE PROCESS
. THANK YOU FOR THAT. WE'RE
GOING TO HOLD THIS ITEM OPEN FOR
THE MOMENT. THANK YOU VERY MUCH.
AND WE ARE MOVING ON TO EXCUSE
ME. ISSUE NUMBER EIGHT. WE ARE
DOING INCREDIBLE. YAY HIGH FIVE
TO EVERYONE OUR LAST ISSUE. FOR
THE SECOND TO LAST ISSUE. ALMOST
THERE AND THEN GOT BROUGHT BACK
PUBLIC COMMENT. PLEASE BEGIN
WHEN YOU'RE READY. THANK YOU.
GOVERNMENT OPERATIONS. WE'RE
ASKING OUR PRESENTERS TO COVER
THE DEPARTMENT OF TECHNOLOGY,
KELLY CHARGE GENERAL SERVICES
AND THE PUBLIC EMPLOYMENT PUBLIC
EMPLOYMENT RELATIONS BOARD ON
THIS BRIEF PRESENTATION. THANK
YOU. PLEASE BEGIN. GOOD
AFTERNOON, COURTNEY MASSENGILL
DEPARTMENT OF FINANCE. THE MAY
REVISION PROPOSES SEVERAL
BUDGETARY CHANGES FOR GOVERNMENT
OPERATIONS. THE FIRST IS WHICH
OF WHICH IS FOR THE CALIFORNIA
DEPARTMENT OF TECHNOLOGY. WHICH
HAS FOUR BUDGETARY CHANGES. THE
FIRST OF THESE CHANGES INCLUDE
700,000 GENERAL FUND AND
PLANNING RESOURCES FOR THE
OFFICE OF INFORMATION SECURITY
TO BEGIN DEVELOPING A UNIFIED
INTEGRATED RISK MANAGEMENT
SYSTEM. THE SYSTEM WILL SAYS
SECURITY RISKS ACROSS THE STATE
AND AUTOMATE COMPLIANCE,
SUBMISSION AND TRACKING IN A
MORE EFFICIENT MANNER. THE
SECOND INCLUDES 2.2 MILLION
GENERAL FUND TO SUPPORT CTS ON
BOARDING TO THE FINANCIAL
INFORMATION SYSTEM OF
CALIFORNIA. WHILE THE DEPARTMENT
OF FISCAL PROVIDES RESOURCES FOR
BUSINESS ENGINEERING AND OTHER
WORKLOAD WHEN ONBOARDING NEW
DEPARTMENTS, ANY GAPS UNRESOLVED
BY PHYSICAL WILL BE ADDRESSED BY
CDT. THEY WILL UTILIZE
CONTRACTORS TO RESOLVE ANY
RAINING REMAINING GAPS IN ORDER
TO SUCCESSFULLY COMPLETE THEIR
TRANSITION TO THE FISCAL SYSTEM.
NEXT THE STATE DIGITAL EQUITY
GRANT RE APPROPRIATION IS A
TECHNICAL ADJUSTMENT, WHICH
PROVIDES CDT THE TIME TO
ENCUMBER THE FULL GRAND
ALLOTMENT AND MAXIMIZE THE USE
OF FEDERAL FUNDING. LASTLY THE
NEW FEDERAL EXPENDITURE ITEM
PROVIDES C D T WITH THE
AUTHORITY TO RECEIVE AND EXPEND
FEDERAL GRANTS. CDT DOES NOT
CURRENTLY HAVE A FEDERAL
EXPENDITURE ITEM IN THE BUDGET
AND A NEW ONE IS NECESSARY FOR
THE USE OF FEDERAL GRANTS. THIS
IS A TECHNICAL EDITION THAT
REQUIRES CDT TO SUBMIT A SECTION
28 REQUEST FOLLOWING
NOTIFICATION OF A GRAND AWARD TO
AUGMENT THE ITEM. GOOD
AFTERNOON, MADAM CHAIR MEMBERS
DANIELLE BRENDAN WITH THE
DEPARTMENT OF FINANCE. I'LL BE
PRESENTING ON THE CALI JAR
PROPOSALS FOR WHICH THERE ARE
TWO. THE FIRST ONE IS 2.9,
ROUGHLY 2.9 MILLION GENERAL FUND
AND NINE PERMANENT POSITIONS IN
23 24 1.8 MILLION GENERAL FUND
IN 24 25 2 MILLION GENERAL FUND
IN 25 26 ONGOING TO SUPPORT THE
CONTINUATION OF THE CALIFORNIA
STATE PAYROLL SYSTEM. PROJECT.
C. S. P S. NINE POSITIONS WILL
SUPPORT THE CSP S PROJECT
IMPLEMENTATION IN THE AREAS OF
LABOR RELATION DATA MANAGEMENT
AND CONVERSION, HUMAN RESOURCES
TRAINING, CLASSIFICATION AND PAY
, MARKETING AND OUTREACH AND WEB
DEVELOPMENT. OPERATIONAL
RESOURCES WILL SUPPORT CLOUD
DATA TRANSFER SERVICES. REPORT
DEVELOPMENTAL SERVICES FOR
APPROPRIATE DATA MANAGEMENT AND
REQUIRE UPDATES AND EXPANSION TO
KELLY CHARLES LEARNING
MANAGEMENT SYSTEM TO TRAIN THE
STATE'S EMPLOYEES OVER ALL THESE
RESOURCES FOR LHR WILL SUPPORT
IMPLEMENTATION OF THE STATE'S
NEW PAYROLL SYSTEM. THE NEXT
PROPOSAL IS A RE APPROPRIATION
OF ONE POINT ROUGHLY 1.7 MILLION
FOR THE LEGAL, ACCOUNTING AND
WORK MANAGEMENT SYSTEM APPROVED
IN THE 2022 BUDGET ACT. NEXT
I'LL GO OVER THE PROPOSALS FOR
THE DEPARTMENT OF GENERAL
SERVICES. DGS IS REQUESTING ONE
ROUGHLY ONE MILLION GENERAL FUND
IN 23 24 600,000 GENERAL FUND IN
24 25 25 26 FOR THE LEGACY
PROJECT BILLING PLATFORM. THE
PROJECT IS ESSENTIAL TO DGS.
THIS CRITICAL BUSINESS FUNCTIONS
, PROVIDING RESOURCES FOR
CONTRACTING HUMAN RESOURCES FOR
SMALL STATE DEPARTMENTS AND
AGENCIES THAT DO NOT HAVE THE
NEED THAT DO NOT HAVE THE NEEDS
OF RESOURCES TO SUPPORT THEIR
OWN INTERNAL HR SHOP. A REVISION
ALSO INCLUDES A NET ZERO FUNDING
REALIGNMENT AMONG THREE SPECIAL
FUNDS FOR SEVERAL POSITIONS
WITHIN DGS. THIS PROPOSAL MOVES
SEVERAL POSITIONS OUT OF THE
OFFICE OF RISK AND INSURANCE
MANAGEMENT AND INTO OTHER
DIVISIONS WITHIN DGS TO PROMOTE
OPERATIONAL EFFICIENCIES. THE
LAST THREE ITEMS FOR DGS, OR
TECHNICAL ITEMS. TO OUR TO
EXTEND THE CONFERENCE STATE ONE
OF THE THREE POINT MILLION 3.9
MILLION GENERAL FUND APPROPRIATE
IN THE 2022 BUDGET ACT TO
ADDRESS CRITICAL ROOF AND
BUILDING EXTERIOR PAIR NEEDS AT
THE RONALD M. GEORGE STATE
OFFICE COMPLEX IN SAN FRANCISCO.
THE SECOND IS PROPOSED TRAILER
BILL LANGUAGE TO EXTEND THE
ENCUMBRANCE STATE FOR THE STEM
TEACHER RECRUITMENT GRANT
PROGRAM FROM THE 2021 BUDGET ACT
. SO REMAINING FUNDS ARE
AVAILABLE THROUGH THE 23 24
FISCAL YEAR. FINALLY, THE MAY
REVISION ALSO INCLUDES
113,000,910. IN REVERSION FOR
DEFERRED MAINTENANCE IN WATER
CONSERVATION GRANT PROGRAMS.
THESE WERE VERSIONS WERE
PREVIOUSLY INCLUDED IN CONTROL
SECTION 4.6 OF THE GOVERNOR'S
BUDGET TO ADDRESS THE GENERAL
FUND SHORTFALL. THIS IS A
TECHNICAL ADJUSTMENT TO ALLOCATE
THE REVERSION. KOURTNEY AND THE
LAST DEPARTMENT IN GOVERNMENT
OPERATIONS AS THE PUBLIC
EMPLOYMENT RELATIONS BOARD. THE
MAY REVISION INCLUDES 22,000
GENERAL FUND TO SUPPORT THE
UPGRADE OF ONE ADMINISTRATIVE
LAW JUDGE TO A SUPERVISING
ADMINISTRATIVE LAW JUDGE THAT
WILL ASSIST AND RESTRUCTURING
THEIR ADMINISTRATIVE LAW
DIVISION. UPGRADING THIS
POSITION WILL WILL ALLOW PERP TO
REALIGN THE DIVISION AND PROVIDE
BETTER MENTORSHIP FOR NEW
ADMINISTRATIVE LAW JUDGES. AND
THAT'S THE CONCLUDES SORRY.
THANK YOU. THANK YOU, LEO. BRIAN
METZGER. L A. OH WE RAISED NO
CONCERNS WITH THE DEPARTMENT OF
TECHNOLOGIES PROPOSALS. WE WOULD
, HOWEVER, MENTIONED THAT WE ARE
STILL EVALUATING THE UM S CEO
AND TELL HR REQUESTS FOR FUNDING
FOR THE STATE PAYROLL SYSTEM
WERE PRIMARILY FOCUSED ON TWO
ISSUES. ONE IS THE OPPORTUNITY
FOR THE LEGISLATURE TO ONCE IT
RECEIVES THE FINAL PROJECT PLAN
FOR THE STATE PAYROLL SYSTEM. TO
BE ABLE TO REVIEW IT AND MAKE
SURE THAT IT MAKES SENSE AND
THAT IT'S FEASIBLE OVER THE
MULTI YEAR PERIOD. THE
PRELIMINARY COST ESTIMATE FOR
THIS PROJECT IS NEARLY A BILLION
DOLLARS, AND IT'S EXPECTED TO BE
DEVELOPED AND IMPLEMENTED OVER
FIVE YEARS, SO WE WANT TO MAKE
SURE THAT THE LEGISLATURE
MAINTAINS ITS OVERSIGHT OVER
THIS PROJECT, AND THE SECOND
ISSUE WE ARE FOCUSED ON IS THE
UM, PROPOSED CHANGE MANAGEMENT
FUNDING THAT'S INCLUDED IN THE
PROPOSAL. IT'S ABOUT $28 MILLION
THAT WOULD BE CENTRALIZED WITH
THE STATE COMPTROLLER'S OFFICE
AND ALLOCATED TO INDIVIDUAL
DEPARTMENTS. WE WANT TO MAKE
SURE THAT THAT METHODOLOGY MAKES
SENSE AND THAT THIS IS THE BEST
WAY FORWARD FOR HELPING
DEPARTMENTS TO USE THE NEW
PAYROLL SYSTEM. THANK YOU. THANK
YOU ANY COMMENTS OR QUESTIONS?
I'M SORRY. GO AHEAD TRUE
SODERBERGH LEGISLATIVE ANALYST'S
OFFICE. WE JUST HAVE COMMENTS ON
ONE OF THE DGS PROPOSALS RELATED
TO THE HUMAN RESOURCES AND
PROJECT BILL IS BILLING LEGACY
PLATFORM REPLACEMENT AS YOU'RE
AWARE DGS CHARGES CLIENT
AGENCIES FOR CENTRALIZED HUMAN
RESOURCES SERVICES, AND THOSE
FEES ARE INTENDED TO COVER THE
FULL COST OF THE SERVICES. AND
THOSE FEES ARE DEPOSITED IN THE
SERVICE REVOLVING FUND. WE FEEL
THAT THE COST OF THIS PROJECT
SHOULD BE PAID FOR FROM THE
SERVICE REVOLVING FUND. AND WE
WOULD NOTE THAT THAT WOULD
REDUCE THE GENERAL FUND IMPACT
OF THE PROPOSAL. HAPPY TO TAKE
ANY QUESTIONS ON THAT. THANK YOU
COMMENTS QUESTIONS, SAYING NONE
WERE GOING TO LEAVE THIS ITEM
OPEN FOR THE MOMENT. I DON'T
HAVE ANY COMMENTS OR QUESTIONS
EITHER. THANK YOU VERY MUCH.
THANK YOU. WE'RE GOING TO MOVE
ON TO OUR LAST ISSUE. ISSUE NINE
COMPENSATION AND RETIREMENT.
BEGIN WHEN YOU'RE READY. THANK
YOU. GOOD AFTERNOON, MADAM CHAIR
MEMBERS OF THE COMMITTEE. MY
NAME IS RYAN WEINBERG WITH THE
DEPARTMENT OF FINANCE, AND WE'LL
START OFF WITH A QUICK
PRESENTATION ON THE
ADMINISTRATION TO UPDATE TO
EMPLOYEE COMPENSATION FUNDING
THROUGH OUT OF 9800. UM THE ITEM
90 AND ITEM 9800 AND UNDER THE
MALE VISION INCREASED BY
APPROXIMATELY 22 MILLION UNDER
THE MAY HAVE A VISION. THIS IS
LARGELY DUE TO INCREASES IN
UPDATED ESTIMATES AND UPDATED
HEALTH AND DENTAL RATES THAT
HAVE INCREASED COST IN OTHER
FUNDS. THE GENERAL FUND
COMPONENT ACTUALLY DECREASED OF
9800 IN MAY HAVE A VISION AS
WELL AS A CHANGE IN THE TOP FOUR
COMPETITION OF HEALTH PLANS.
ALRIGHT ASTON 10 OF US
DEPARTMENT OF FINANCE MOVING ON
TO THE CALIFORNIA PUBLIC
EMPLOYEES RETIREMENT SYSTEM. THE
MAYOR VISION INCLUDES 8.5
BILLION FOR THE STATUTORY, THE
REQUIRED ANNUAL STATE
CONTRIBUTIONS TO HELPERS OF THIS
AMOUNT. 4.7 BILLION IS GENERAL
FUND AND INCLUDES 744 MILLION
GENERAL FUND FOR THE CALIFORNIA
STATE UNIVERSITY RETIREMENT
COSTS. THIS IS A NET DECREASE OF
1.7 MILLION OR 48.5 MILLION
GENERAL FUND DECREASED SINCE THE
GOVERNOR'S BUDGET AND AS THE
RESULT OF ADJUSTMENTS TO
RETIREMENT RATES, WHICH WERE
APPROVED BY THE CALPERS BOARD OF
ADMINISTRATION IN APRIL. THE
BUDGET ALSO REFLECTS 2.3 BILLION
IN CONSTITUTIONALLY REQUIRED
PROPOSITION TO DEBT REPAYMENT
FUNDING. AN INCREASE OF 482
MILLION FROM THE GOVERNOR'S
BUDGET. THIS AMOUNT WAS ADDED TO
THE CALPERS SUPPLEMENTAL PENSION
PAYMENT, RESULTING IN A PROPOSED
ONE POINT 7,000,000,001 TIME. TO
FURTHER REDUCE THIS STATE COVERS
UNFUNDED LIABILITY. ONCE AGAIN
RYAN WEINBERG DEPARTMENT OF
FINANCE PRESENT. THE UPDATED TO
TAKE CONTRIBUTIONS FOR COSTUMES,
WHICH IS PERCEIVED TEACHERS
RETIREMENT SYSTEM. THE STATE'S
CONTRIBUTIONS FOR THE BUDGET
YEAR, 23 24 INCREASED BY
APPROXIMATELY EIGHT MILLION.
THIS IS A RESULT OF UPDATED
CREDIBLE COMPENSATION PROVIDED
BY CASTELLS. THE STATE
CONTRIBUTIONS ARE BASED ON
ACTUAL CREDIBLE COMPENSATION
FROM TWO YEARS PRIOR, SO, IN
THIS CASE, THERE WILL BE 2021 22
THAT IS BEING USED FOR 23 24.
THIS IS RELATIVELY MINOR
INCREASE, GIVEN THE OVERALL
SCOPE OF CULTURAL CONTRIBUTIONS,
WHICH IS 3.9 BILLION. UM I
PROJECTED IT IN THE GOVERNOR'S
BUDGET, THE COST OF HIS BOY DID
NOT ELECT TO INCREASE THE
STATE'S CONTRIBUTION RATE IN
BUDGET YEAR AND AS A RESULT, THE
ONLY CHANGES RELATED TO THIS
CREDIBLE COMP UPDATE AND FOR THE
ASTON 10 AFAS DEPARTMENT OF
FINANCE FOR THE JUDGES
RETIREMENT SYSTEM. MAY REVISION
INCLUDES 592 POINT 9,000,300
592.0.2 MILLION GENERAL FUND FOR
THE JUDGES RETIREMENT SYSTEM,
INCLUSIVE OF JAIRUS. ONE AND
GENEROUS TO THIS IS AN INCREASE
OF 2.2 MILLION GENERAL FUND FOR
THE JUSTICE RETIREMENT SYSTEM.
OR JRS, UM, AND REFLECTS THE
APPROVED GENEROUS TO
CONTRIBUTION RATE OF 23.58% FOR
23 24. THERE'S AN INCREASE FROM
THE 23.23% RATE FROM THE PRIOR
YEAR. DUE PRIMARILY TO THE
AMORTIZATION OF INVESTMENT
LOSSES OF 21 22. AND WITH THAT,
WE'LL TAKE ANY QUESTIONS. THANK
YOU, LEO. NO. JOINT TO SAY NO
ADDITIONAL SURE. NEXT SCHROEDER
L A. WE DON'T HAVE ANY COMMENTS
ON THESE ISSUES. GREAT. THANK
YOU. DOES THE ADMINISTRATION
HAVE A TIMELINE ON WHEN IT DOES
ANTICIPATE CONCLUDING COLLECTIVE
BARGAINING NEGOTIATIONS?
DEPARTMENT OF FINANCE, THE
ADMINISTRATION IS ENDEAVORING TO
COMPLETE ITS OPEN NEGOTIATIONS
WITH TABLES FIT A BARGAINING
UNIT THAT HAVE CONTRACTS THAT
HAVE EXPIRED OR WILL EXPIRE
OPRAH OUT OF THE END OF THIS
FISCAL YEAR PRIOR TO ENACTMENT
OF THE BUDGET ACT. HOWEVER WE
CANNOT COMMENT ON THE STATUS OF
ONGOING NEGOTIATIONS WITH OPEN
TABLES AND KEPT PROVIDING, UM,
EITHER CONTENT SORT OF THE
UPDATE ON THOSE NEGOTIATIONS.
UNDERSTOOD THANK YOU. WE'RE
GONNA HOLD THIS ITEM OPEN. THANK
YOU VERY MUCH, AND I MOVE ON TO
PUBLIC COMMENT. WE WILL BE
ACCEPTING PUBLIC COMMENT IN THE
HEARING ROOM AND ON THE PHONE
THE PHONE NUMBER TO CONNECT US
ON THE COMMITTEE WEBSITE AND
SHOULD ALSO BE ON THE SCREEN. IF
YOU ARE WATCHING OVER THE
INTERNET, THE PHONE NUMBER IS
TOLL FREE 8776928957 WITH THE
PUBLIC ACCESS CODE 1315444. IS
THERE ANY PUBLIC COMMENT IN THE
ROOM? AFTERNOON CAROLINE
CIRINCIONE ON BEHALF OF THE
LEAGUE OF CALIFORNIA CITIES, CAL
CITIES IS REQUESTING THREE
BILLION IN ANNUAL APPROPRIATION
IN THE 2023 BUDGET ACT TO
PREVENT AND REDUCE HOMELESSNESS
AND BOOST THE SUPPLY OF
AFFORDABLE HOUSING. WE REALLY
APPRECIATE SOME OF THE SHORT
TERM INVESTMENTS THAT HAVE MADE
HAVE BEEN MADE IN RECENT YEARS
TO ADDRESS THIS CRISIS, BUT WE
FEEL THAT THE CALIFORNIA IS
FACING REALLY AN UNPRECEDENTED
AFFORDABLE HOUSING AND
HOMELESSNESS CRISIS AND WERE
DISAPPOINTED THAT THIS BUDGET
DID NOT INCLUDE AN ONGOING
SOURCE FOR LOCAL GOVERNMENTS. UM
INSTEAD, THE BUDGET DELAYS UM,
OUR CALLS FOR CUTS AND IN THE
AMOUNT OF 712,000,002 KEY
HOUSING PROGRAMS AND ONGOING
INVESTMENT FROM THE STATE WOULD
REALLY SPUR MUCH NEEDED HOUSING
PRODUCTION AND ENSURE THAT
THOUSANDS OF CALIFORNIANS
EXPERIENCING HOMELESSNESS GET
THE SUPPORT WE NEED. WE
UNDERSTAND THAT THE DEFICIT CAN
CREATE HARD DECISIONS ABOUT
LOCAL GOVERNMENTS, HOMELESS
SERVICE PROVIDERS, HOUSING
ADVOCATES AND BUSINESS LEADERS
AGREE THAT ONGOING FUNDING IS A
KEY PART OF THE SOLUTION TO
ENSURING THAT THE STATES AND TO
THE HOMELESSNESS CRISIS UM, WITH
REGARDS TO ACCOUNTABILITY AT
CITIES ARE ACCOUNTABLE FOR THE
MONEY THEY RECEIVE FROM THE
STATE FOR ALL PROGRAMS,
INCLUDING ANYTHING RELATED TO
HOUSING AND HOMELESSNESS. WE
LOOK FORWARD TO WORKING WITH THE
LEGISLATURE ON SEVERAL
ACCOUNTABILITY RELATED MEASURES
THIS YEAR. THANK YOU SO MUCH.
SEE YOU KNOW ADDITIONAL PUBLIC
COMMENT IN THE HEARING ROOM.
OPERATOR, PLEASE BEGIN. WITH
THOSE ON THE PHONE LINE. THANK
YOU FOR PUBLIC COMMENT. YOU MAY
PRESS ONE AND THEN ZERO. WE WERE
GOING TO LINE 20. YOUR LINE IS
OPEN. GOOD AFTERNOON, MADAM
FRIEND, MEMBERS NICOLE HERMAN ON
BEHALF OF ORANGE COUNTY AND
SIMPLE MEDINA COUNTY, SPEAKING
TO ISSUE ONE STRONGLY SUPPORT
THE FUNDING CONTAINED IN THE
GOVERNOR'S BUDGET PROPOSAL, AND
THEY RE VISION FOR HOMELESS
HOUSING ASSISTANCE AND
PREVENTION GRANTS, AS WELL AS
THE SENATE PROPOSAL TO PROVIDE
ONGOING FUND A. WE HAVE
EFFECTIVELY USED STATE FUNDING
FOR A RANGE OF SUCCESSFUL
PROJECTS, HOWEVER MUCH WORK
REMAINS TO ADDRESS OUR INCREASE
IN POPULATION OF HOMELESS
INDIVIDUALS. DESPITE THE
SIGNIFICANT ONE TIME AND THAT'S
FINE, STABLE, ONGOING FUNDING
THAT ALLOWS FOR FLEXIBILITY TO
MEET THE COMPLEX NEEDS OF
VULNERABLE POPULATIONS IS
CRUCIAL TO OUR SUCCESS. WE
SUPPORT EFFORTS THAT ENCOURAGE
COLLABORATION AND ACCOUNTABILITY
. HOWEVER WE ARE CONCERNED THAT
SENDING LEADS TO APPROVED
HOUSING ELEMENTS FOR HINDER
EFFORTS RATHER THAN INCENTIVIZED
PARTNERSHIPS BETWEEN THE STATE
COUNTIES, CITIES AND WE ASK THAT
THE LEGISLATURE EARLY CHECK THE
GOVERNOR'S PROPOSAL LINKING
APPROVED HOUSING ELEMENTS TO
FUNDING AND ENCOURAGE
CONSIDERATION OF ALTERNATIVE
ACCOUNTABILITY. METHODS OF
SENDING ROLLS OUT AND BEGINS TO
IMPACT THE HOMELESS POPULATION
IN THE LONG TERM. THANK YOU.
THANK YOU NEXT WEEK GOAL LINE,
23. YOUR LINE IS OPEN. MY NAME
IS RUTH SILVER. TOBIN I'M THE
DIRECTOR OF THE SANTA CLARA
COUNTY WAGE STUFF. COALITION AND
POLICY COMMITTEE, CO CHAIR OF
THE CALIFORNIA COALITION FOR
WORKER POWER. CCW P. C C. WP
STRONGLY URGES THIS COMMITTEE TO
RESTORE THE SECOND YEAR OF THE
WALK FUNDING. I PARTICIPATED IN
THE WOPS SINCE ITS INCEPTION. HE
STEPPED FORWARD FOUNDATION IN
NORTHERN CALIFORNIA AND HELP
CREATE THE WOP OUTREACH MATERIAL
AS A RESULT OF OUR WORK WITH
SEAWATER BEEN ABLE TO INCREASE
OUR CAPACITY, AND NOW PERHAPS
SPANISH SPEAKING MANDARIN,
SPEAKING TO COLLEGE SPEAKING AND
VIETNAMESE SPEAKING STAFF THAT
PROVIDE CULTURALLY COMPETENT AND
LINGUISTICALLY COMPETENT
OUTREACH AND EDUCATION ON COVID
AND WORKERS, RIGHT, WE ALONE
HAVE REACHED 22,000 WORKERS AS
WE MOVE INTO THE COVID RECOVERY.
HE SAYS IT IS MORE IMPORTANT
THAN EVER TO CONTINUE TO FUND
WORKER OUTREACH THROUGH THE
WALK. THANK YOU. THANK YOU. NEXT
WE GO TO LINE 21 YEAR LINE IS
OPEN. YES GOOD EVENING, MADAM
SHARON COMMITTEE MEMBERS, AMY
JENKINS ON BEHALF OF THE
CALIFORNIA CANNABIS INDUSTRY
ASSOCIATION, SPEAKING
SPECIFICALLY TO ISSUE SIX
CANNABIS OF THE PASSAGE OF HB,
1, 95 AND 2022, WHICH WAS THE
BUDGET TRAILER BILL ON CANNABIS
WAS THE CULMINATION OF MANY
YEARS OF WORK TO ADVANCE
MEANINGFUL TAX REFORM FOR THE
LEGAL CANNABIS INDUSTRY. 81 95
ALSO INCLUDED SOME MEANINGFUL
TAX CERTAINTY FOR AT LEAST THREE
YEARS FOLLOWING ITS ENACTMENTS
WITH THE GOVERNORS MAY REVISE,
CURRENTLY ESTIMATING 102.2
MILLION SHORTFALL IN CANNABIS
TAX REVENUE. IT IS IMPERATIVE
THAT WE PRESERVE THE 2022
AGREEMENT STRUCK BETWEEN THE
INDUSTRY AND THE LEGISLATURE AND
AVOID ANY CONSIDERATION OF TAX
INCREASES ON THE LEGAL INDUSTRY.
AND WHILE WE APPRECIATE THE
COMMENTS MADE BY THE DEPARTMENT
OF FINANCE, WE WOULD ARGUE THAT
DRAMATICALLY DECREASED TAX
REVENUE IS REALLY A SYMPTOM OF A
BROADER CHALLENGES EXPERIENCED
BY THE INDUSTRY, WHICH INCLUDES
THE ILLICIT MARKET, HIGH
REGULATORY BARRIERS AND A LACK
OF RETAIL ACCESS. SO WE DO LOOK
FORWARD TO WORKING WITH THIS
COMMITTEE AND THE LEGISLATURE ON
CRAFTING SENSIBLE SOLUTIONS THAT
PRESERVES THE LEGAL INDUSTRY.
AND I THANK YOU FOR YOUR TIME
THIS EVENING. THANK YOU. NEXT
OVERLINE 18. YOUR LINE IS OPEN.
HEY MADAM CHAIR AND MEMBERS IS
POLYESTER SCHEIDER INTO IT
SMELLS AND LAYING ON BEHALF OF
THE COUNTIES OF FRESNO, KERN,
MERCED, TILLERY AND HUMBLE
REGARDING THE LOCAL GOVERNMENT
SUSTAINABILITY FUND. LAST YEAR.
YOU VOTED FOR GOOD PUBLIC
POLICY, AND YOU ESTABLISH THIS
FUND. THE POINT OF THE FUND, AS
STATED BY THE NEWSOME
ADMINISTRATION WAS TO HELP LOCAL
ENTITIES PURSUE ECONOMIC
DIVERSIFICATION. IN PROJECTS
THAT WOULD PROVIDE THEM. THERE
ISN'T A CLEAR AND APPARENT NEED
FOR THIS. THAT'S WRONG. THERE IS
. IT WAS ANTICIPATED. THE
COUNTIES AS DIVERSE AS IMPERIAL
AND HUMBLE WOULD BE ELIGIBLE.
HILLARY KERN MERCED AND YES,
FRESNO COUNTY. WOULD ALSO BE
ELIGIBLE. THESE ARE THE COUNTIES
. THAT PROVIDER WILL SOON
PROVIDE MASSIVE AMOUNTS OF
ALTERNATIVE ENERGY. TO HELP THE
STATE ACHIEVED ITS CLIMATE
GOALS. THESE ARE THE SAME
COUNTIES WHOSE LOCAL ECONOMIES
DON'T NECESSARILY REAP THE
BENEFITS OF CALIFORNIA'S
TRANSITION TO CARBON. TO LIFT
ALL BOATS. IN CALIFORNIA DURING
THE TRANSITION OF CARBON
NEUTRALITY. WE URGE THE
SUBCOMMITTEE AND MADAM CHAIR I
WANT TO THANK YOU AND YOUR STAFF
FOR WHAT YOU DID LAST YEAR. WE
URGE THE SUBCOMMITTEE TO KEEP
FAITH WITH THE COUNTIES THAT
HAVE BEEN WAITING FOR THIS
LIFELINE. TO MAINTAIN THE
SUSTAINABILITY FUND AS DESIGNED
AND APPROVED BY THE LEGISLATURE
LAST JUNE. AND PROVIDE FUNDING
AS WAS OUTLINED IN LAST YEAR'S
STATE BUDGET AGREEMENT. THANK
YOU. THANK YOU. NEXT TO THE
LINE. 22 YEAR LINE IS OPEN.
HELLO. CAN YOU HEAR ME? PLEASE
GO AHEAD. MY NAME IS ERNESTO
HIDALGO, AND I'M THE POLICY
DIRECTOR OF THE L. A WORKERS
INTER NETWORK MEMBER OF THE
CALIFORNIA COALITION FOR WORKER
POWER. TWP STRONGLY URGES THIS
COMMITTEE TO RESTORE THE SECOND
YEAR OF FUNDING AS A RESULT OF
OUR COALITION MEMBERS WORK MADE
POSSIBLE BY THE WALK. WE HAVE
BEEN ABLE TO INCREASE OUR
CAPACITY WITH MULTILINGUAL STAFF
AND OUTREACH AND MORE THAN 46
LANGUAGES TO PROVIDE CULTURALLY
COMPETENT AND LINGUISTICALLY
COMPETENT OUTREACH AND EDUCATION
ON COVID AND WORKERS' RIGHTS.
THE USE OF TRUSTED MESSENGERS
AND MADE POSSIBLE BY THE PROGRAM
CANNOT BE OVERSTATED IN THE WOK
AS A WHOLE TO 2022. THERE HAVE
BEEN MORE THAN 1.9 MILLION
INTERACTIVE CONVERSATIONS WITH
WORKERS IN 46 LANGUAGES AS WE
MOVE INTO THE COVID RECOVERY
PHASE IN A DOWNWARD ECONOMY THAT
HURTS NO WAGE WORKERS, THE MOST
IT IS MORE IMPORTANT THAN EVER.
TO CONTINUE TO FUND WORKER
OUTREACH AND RENAMED THE PROGRAM
TO THE CALIFORNIA WORKPLACE
OUTREACH PROGRAM. THANK YOU.
THANK YOU. THAT'S COOL LINE, 28
IS OPEN. HELLO MY NAME IS
DANIELLE ALVARENGA CALLING ON
BEHALF OF THE 180 ORGANIZATIONS
WHO ARE PART OF THE SAFETY NET
FOR OUR COALITION. I'M CALLING
TO THINK CHAIR CARILLO
CHAMPIONING UNEMPLOYMENT
BENEFITS FOR EXCLUDED IMMIGRANT
WORKERS AND TO STRONGLY URGED
THE ASSEMBLY TO ADOPT THIS 356
MILLION REQUESTS FOR
UNEMPLOYMENT BENEFITS FOR
UNDOCUMENTED WORKERS IN THEIR
BUDGET PRIORITIES THIS YEAR,
EVEN SHORT TERM JOB LOSSES CAN
BE CATASTROPHIC FOR CALIFORNIA
WORKERS AND NO WORKER SHOULD BE
EXCLUDED. DEAD LAST YEAR. THE
GOVERNOR SAID THAT UNEMPLOYMENT
BENEFITS FOR EXCLUDED WORKERS
SHOULD BE CONSIDERED AND
ACCOUNTED FOR AS PART OF THE
ANNUAL BUDGET PROCESS. BUT THIS
YEAR HE DIDN'T INCLUDE IT IN HIS
BUDGET PROPOSAL, NOR MAY REVISE
THIS IS WE KNOW THAT THIS IS
IMPORTANT FOR BOTH WORKERS AND
EMPLOYERS. UNEMPLOYMENT BENEFITS
ARE THE MOST EFFECTIVE ECONOMIC
STABILIZER FOR OUR ECONOMY AND
ARE ALSO WAYS TO KEEP WORKERS IN
THEIR COMMUNITY AND FAMILIES
FROM FALLING INTO PART OF
POVERTY. SMALL ONE TIME RELIEF
IS NOT ENOUGH AND NOT
SUSTAINABLE. WE MUST SET UP THE
SYSTEM NOW. HOW TO PREPARE TO
PREPARE STATE BETTER FOR AN
UNCERTAIN FUTURE FOR CLIMATE AND
ECONOMY. THIS IS WHAT
COMMUNITIES NEED AND HAVE ASKED
FOR, AND I URGENTLY ASSEMBLY TO
PRIORITIZE THIS FOR A MORE
EQUITABLE AND RESILIENT
CALIFORNIA. THANK YOU VERY MUCH
FOR YOUR TIME. THANK YOU. NEXT
LINE, 29. YOUR LINE IS OPEN. HI
GOOD EVENING. MY NAME IS NATASHA
CASTRO AND I'M WITH THE
CALIFORNIA WORKING FAMILY
COALITION, WHERE A STATEWIDE
ALLIANCE OF COMMUNITY
ORGANIZATIONS AND ADVOCATES
FOCUSED ON EXPANDING ACCESS TO
PAID FAMILY LEAVE. I'M CALLING
IN TO EXPRESS THEIR CONCERNS
WITH ISSUE THREE, WHICH IS THE
PROPOSAL TO TAKE MONEY FROM THE
DISABILITY INSURANCE FUND TO PAY
FOR INTEREST ON THE UNEMPLOYMENT
INSURANCE LOAN BALANCE
DISABILITY INSURANCE.
UNEMPLOYMENT INSURANCE IS 100%
FUNDED OUT OF WORKERS'
PAYCHECKS. THESE FUNDS SHOULD BE
USED TO PAY WORKERS BENEFITS AND
TO IMPROVE ACCESS TO THE, UM THE
EYE NPFL AND ADDRESS BARRIERS.
LOW WAGE WORKERS FACED IN
OBTAINING THESE BENEFITS. AND
THE STATE SHOULD NOT TAKE
WORKERS MONEY AND USE IT TO
COVER AN EMPLOYER FUNDED
PROGRAM. THANK YOU FOR YOUR
TIME. THANK YOU, MADAM CHAIR. WE
HAVE NO FURTHER PUBLIC COMMENT
AND QUÊ. THANK YOU, OPERATOR.
MUCH APPRECIATED. I WANT TO
THANK ALL OF OUR PANELISTS TODAY
, AS WELL AS OUR BUDGET STAFF
AND ALL THE MEMBERS THAT
PARTICIPATED TODAY. THANK YOU
FOR PARTICIPATING IN OUR BUDGETS
OF FOUR MAY REVISE HEARING THIS
HEARING IS NOW ADJOURNED. THANK
YOU