ALRP GOOD MORNING, EVERYBODY AND
WELCOME TO OUR FIRST HEARING FOR
THE ASSEMBLY BUDGET COMMITTEE
FOR 2024. WE OFFICIALLY HAVE 144
DAYS BEFORE OUR CONSTITUTIONAL
DEADLINE TO ENACT A BUDGET AND
WE ARE EXCITED TO DIVE IN AND
GET TO WORK, AND I UNDERSTAND
THAT THE SENATE WILL BEGIN THEIR
BUDGET DELIBERATIONS TODAY AS
WELL. THIS WEEK, WE EXPECT TO
NOTICE OVER 60 HEARINGS THAT
WILL ALLOW US TO BEGIN THE
DETAILED WORK OF CRAFTING A
BUDGET THAT ADDRESSES THE
CHALLENGE FACING OUR STATE. AS
REFLECTED ON THE ASSEMBLY BUDGET
COMMITTEE WEBSITE. TODAY'S
HEARING WILL FOCUS ON THE
GOVERNOR'S JANUARY BUDGET
PROPOSAL. IN PARTICULAR. WE WILL
HEAR TESTIMONY TODAY FROM ERIKA
LEE, CHIEF DEPUTY FROM THE
DEPARTMENT OF FINANCE. GABRIEL
PETEK, THE LEGISLATIVE ANALYST,
AND CAROLINE SHU, THE CHIEF
DEPUTY LEGISLATIVE ANALYST, WILL
PROVIDE THEIR PERSPECTIVE AND
RECOMMENDATIONS, AND NICOLE
VASQUEZ, THE CHIEF DEPUTY,
CONSULT, DEPUTY CHIEF CONSULTANT
OF THE ASSEMBLY BUDGET COMMITTEE
, IS ALSO HERE TO HELP
FACILITATE THE ANSWERS AS
NEEDED. AFTER THEIR
PRESENTATIONS, MEMBERS OF THE
COMMITTEE WILL HAVE AN
OPPORTUNITY TO ASK QUESTIONS AND
PROVIDE COMMENTS AND WE WILL
THEN TAKE ANY PUBLIC COMMENT
FROM THOSE IN THE HEARING ROOM.
I DO WANT TO NOTE THAT TODAY'S
HEARING WILL ADJOURN NO LATER
THAN 12 NOON. HOWEVER THERE WILL
BE MANY MORE OPPORTUNITIES, AND
I WOULD ADD MORE IMPACTFUL
OPPORTUNITIES FOR PUBLIC COMMENT
AT OUR UPCOMING SUBCOMMITTEE
HEARINGS. WE WILL TAKE ROLE AS
SOON AS WE HAVE ENOUGH MEMBERS
HERE TO ESTABLISH A QUORUM. AND
IF YOU ARE A STAFF MEMBER
LISTENING TO THIS FOR A MEMBER
OF THE ASSEMBLY BUDGET
COMMITTEE, WE WOULD INVITE THEM
TO COME DOWN HERE AND JOIN US IN
THE HEARING ROOM. I SHOULD ALSO
NOTE THAT SPEAKER REVIS HAS MADE
TWO IMPORTANT CHANGES TO OUR
BUDGET COMMITTEE STRUCTURE THIS
YEAR. FIRST WE'RE EXCITED ABOUT
THE ADDITION OF OUR NEW
SUBCOMMITTEE TWO ON HUMAN
SERVICES, WHICH WILL NOW BE
SEPARATE FROM SUBCOMMITTEE ONE
ON HEALTH. THE SPLIT WILL ALLOW
US TO DIG DEEPER INTO THE
CRITICAL INVESTMENTS IN BOTH
AREAS, AND WE'RE GRATEFUL TO
HAVE TWO TALENTED PROFESSIONALS.
DR WEBBER AND DR JACKSON
CHAIRING BUDGET SUBCOMMITTEES,
NUMBER ONE AND TWO RESPECTIVELY.
SIMILARLY EXCITED ABOUT THE
SPEAKER'S DECISION TO FORM A NEW
BUDGET SUBCOMMITTEE NUMBER SEVEN
ON OVERSIGHT AND ACCOUNTABILITY
AS YOU'LL HEAR REPEATEDLY THIS
YEAR OUR DEMOCRATIC CAUCUS IS
COMMITTED TO GREATER OVERSIGHT,
AND WE'RE GRATEFUL TO HAVE
ASSEMBLYMEMBER'S VALENCIA
LEADING US IN THAT KEY ROLE. I
ALSO WANT TO THANK
ASSEMBLYMEMBER'S BENNETT
SOMEBODY MEMBER BENNETT FOR
RETURNING HIS CHAIR OF BUDGET
SUBCOMMITTEE FOR AND TO
OFFICIALLY WELCOME OUR NEW
SUBCOMMITTEE CHAIRS.
ASSEMBLYMEMBER'S ALVAREZ,
QUIRK-SILVA AND RAMOS. AND I
ALSO WANT TO WELCOME OUR NEW
COMMITTEE MEMBERS.
ASSEMBLYMEMBER'S FLORA ORTEGA,
WARD, WILSON AND ZABAR. WE HAVE
AN EXCELLENT GROUP OF
SUBCOMMITTEE CHAIRS AND
COMMITTEE MEMBERS AND I'M
CONFIDENT THAT WE WILL BE IN
GOOD HANDS WITH THEIR
LEADERSHIP. AS NOTED BOTH BY THE
GOVERNOR AND THE L A. OH WE WILL
NEED TO CONFRONT SEVERAL MAJOR
CHALLENGES IN CRAFTING THIS
YEAR'S BUDGET. THE FIRST IS A
MULTI BILLION DOLLAR REVENUE
SHORTFALL, THE PRECISE SCOPE OF
WHICH IS NOT YET CERTAIN.
REGARDLESS IT IS IMPORTANT FOR
THE LEGISLATURE, TO BE HONEST
WITH THE PUBLIC WITH ADVOCATES
AND WITH OURSELVES ABOUT THE
SCALE OF THE CHALLENGE WE ARE
FACING. THE SHORT FIRE IS REAL,
AND IT WILL REQUIRE TOUGH
CHOICES. THERE IS NO MAGIC WAND.
SO AS WE BEGIN OUR BUDGET
DELIBERATIONS. IT IS IMPORTANT
THAT EVERYONE ACKNOWLEDGES THIS
REALITY SO THAT WE CAN ALL
RECALIBRATE OUR EXPECTATIONS.
SECOND BEYOND THE CURRENT
SHORTFALL. IT IS CRITICAL THAT
FOLKS RECOGNIZE THAT BOTH THE
LAO AND THE DEPARTMENT OF
FINANCE ARE PROJECTING ONGOING
DEFICITS OF APPROXIMATELY $30
BILLION ANNUALLY. EVEN IF WE
WERE TO ACCEPT ALL OF THE
PROPOSED SOLUTIONS OUTLINED IN
THE GOVERNOR'S BUDGET. THIS
MEANS THAT EVEN AS WE SAW FOR
THE CHALLENGES CONFRONTING US
TODAY, WE MUST BE MINDFUL ABOUT
WHAT LIES AHEAD. OUR
RESPONSIBILITY TO THE PEOPLE OF
CALIFORNIA REQUIRES US TO THINK
BEYOND THIS YEAR. THIS ELECTION
CYCLE AND FOR MANY OF US ARE
TERM OF SERVICE IN THE
LEGISLATURE. AND FINALLY, IT IS
CRITICAL THAT WE RECOGNIZE THE
SIGNIFICANT ECONOMIC, FINANCIAL
AND POLITICAL UNCERTAINTY THAT
SURROUNDS US AT THIS DIFFICULT
MOMENT. THIS UNCERTAINTY IS
ITSELF A MAJOR MAJOR CHALLENGE
AND SHOULD NOT BE
UNDERESTIMATED. INDEED IN A FEW
MONTHS, WE MAY FIND OURSELVES IN
A MUCH BETTER SITUATION OR ONE
THAT IS SIGNIFICANTLY WORSE, AND
SO WE MUST BE PREPARED TO ADAPT
QUICKLY AS CIRCUMSTANCES CHANGE.
THE GOOD NEWS IS THAT WE HAVE A
NUMBER OF TOOLS AT OUR DISPOSAL
TO CONFRONT THESE INTERLOCKING
CHALLENGES. WE ARE FORTUNATE
THAT WISE PLANNING IN PREVIOUS
YEARS HAS PROVIDED US WITH
RESERVES AND OTHER AVENUES TO
ADDRESS THE SHORTFALL. STRATEGIC
RESPONSIBLE CHOICES WE CAN
PROTECT OUR MOST VULNERABLE
COMMUNITIES, PRESERVE PROGRESS
ON KEY GOALS AND LAY THE
GROUNDWORK FOR STABILITY AND
LONG TERM SUCCESS, ALL WHILE
REMAINING TRUE TO OUR CORE
VALUES. ONE ESSENTIAL ELEMENT TO
THE SUCCESS WILL BE ENHANCED
OVERSIGHT AND ACCOUNTABILITY. WE
WILL NEED TO LOOK EVEN MORE
CLOSELY AT OUR PROGRAMS AND
SERVICES TO UNDERSTAND WHAT IS
REALLY MOVING THE NEEDLE ON THE
ISSUES MOST IMPORTANT TO
CALIFORNIANS. I'VE HEARD
REPEATEDLY FROM MEMBERS OF THE
DEMOCRATIC CAUCUS ABOUT THE NEED
TO IMPROVE OUR OVERSIGHT OF
STATE SPENDING AND OVERSIGHT
REMAINS A TOP PRIORITY FOR
SPEAKER REVIS AND ME. TO THAT
END, STAKEHOLDERS WHO APPROACHED
THIS COMMITTEE SHOULD BE
PREPARED TO DO MORE THAN JUST
DESCRIBE THE RELEVANT PROBLEM OR
CHALLENGE THEY SEEK TO ADDRESS.
ON THE CONTRARY, THEY SHOULD BE
ABLE TO EXPLAIN WHY THEIR
PROPOSED SOLUTION IS THE MOST
EFFECTIVE AND WHY IT IS WORTHY
OF PUBLIC INVESTMENT. FINALLY AS
I'LL DISCUSS LATER IN GREATER
DETAIL. I HAVE CONCERNS ABOUT
SOME OF THE STRATEGIES PROPOSED
IN THE GOVERNOR'S JANUARY
BUDGET, PARTICULARLY CUTS THAT I
WORRY COULD UNDERMINE OUR
ABILITY TO MEANINGFULLY ADDRESS
CALIFORNIA'S HOUSING AND
HOMELESSNESS CRISIS, AS WELL AS
FUNDING FOR THE OFFICE OF
EMERGENCY SERVICES AND THE
NONPROFIT SECURITY GRANT PROGRAM
. BEFORE I TURN IT OVER TO
ASSEMBLYMEMBER'S FONG, I DID
WANT TO FLAG ONE ADDITIONAL
ITEM. IN PARTICULAR, ONE OF THE
ISSUES I'VE HEARD ABOUT
REPEATEDLY FROM MEMBERS ON BOTH
SIDES OF THE AISLE IS THE
PROPOSED WITHHOLDING OF FUNDING
FOR PREVIOUSLY AGREED UPON
LEGISLATIVE DISTRICT REQUESTS.
UNSURPRISINGLY CONVERSATIONS
AROUND THIS PROPOSAL HAVE
GENERATED ANXIETY ACROSS THE
STATE. INCLUDING MANY SMALL
NONPROFITS, WHICH ARE FOCUSED ON
UPLIFTING OUR MOST UNDERSERVED
COMMUNITIES. SO WHILE WE
APPRECIATE THE GOVERNOR'S
LEADERSHIP AND CAN CONSIDERING
VARIOUS SOLUTIONS TO OUR BUDGET
CHALLENGES, I'M CONFIDENT THAT
WITHHOLDING THIS FUNDING IS NOT
SOMETHING THAT THE LEGISLATURE
WOULD AGREE TO. AND I LOOK
FORWARD TO WORKING CLOSELY WITH
THE GOVERNOR AND OUR LEGISLATIVE
COLOR COLLEAGUES ON OTHER, MORE
APPROPRIATE SOLUTIONS. WITH THAT
I LOOK FORWARD TO THE
CONVERSATIONS AHEAD. I'M
GRATEFUL TO THE WITNESSES FROM
THE DEPARTMENT OF FINANCE AND
THE LAHU HAVE JOINED US TODAY
AND I'M PLEASED TO TURN OVER TO
OUR VICE CHAIR ASSEMBLYMEMBER'S
PHªN FOR HIS OPENING REMARKS.
THANK YOU. CHAIR. I JUST WANT TO
WELCOME THE NEW CHAIR. I KNOW
HOW HARD HE WORKS FOR HIS
CONSTITUENTS, AND I LOOK FORWARD
TO WORKING WITH HIM AND HIS
STAFF AS WE TACKLE. UM WHAT
COULD SIMPLY BE DESCRIBED AS A
FISCAL MESS. THIS IS QUITE THE
YEAR TO TAKE OVER WHETHER THE
DEFICIT IS $40 BILLION OR $68
BILLION. CALIFORNIA HAS A
MASSIVE DEFICIT AND WE HAVE OUR
WORK CUT OUT FOR US. THAT'S SUCH
A MASSIVE DEFICIT DEMANDS
PRUDENCE AND ACCOUNTABILITY.
UNFORTUNATELY IN MY OPINION, THE
GOVERNOR'S PROPOSAL DOES NOT
REIGN IN SPENDING ADEQUATELY.
AND IF WE DON'T ACT IMMEDIATELY,
THE FISCAL MASS GROWS LARGER AND
LARGER YEAR OVER YEAR AND AS
STATE SPENDING GROWS MORE AND
MORE OUT OF CONTROL. AND AS
SUSTAINABLE EVERYDAY
CALIFORNIANS WILL BEAR THE BRUNT
OF THE GOVERNOR'S INACTION. HE
WANTS TO SOLVE THE MANY PROBLEMS
PLACING THE STATE PLAGUING THE
STATE, BUT HE CANNOT DO IT WITH
UNCHECKED SPENDING SPENDING AND
DOESN'T DEFINE SUCCESS.
CALIFORNIANS ARE DEMANDING REAL
RESULTS, AND THAT'S WHY WE HAVE
TO DO MORE ACCOUNTABILITY. WE
HAVE TO DO MORE AUDITS LOOK
FORWARD TO THE SUBCOMMITTEE
HEARINGS SO THAT WE CAN GO INTO
SPECIFICS ABOUT WHAT IS BEING
PROPOSED WHEN IT COMES TO THIS
BUDGET. AND THAT'S WHY WE'RE
HERE. WE HAVE TO MAKE HARD
DECISIONS NOW AND EXERCISE
RESTRAINT REQUIRED TO RE
PRIORITIZE THE SPENDING OF
TAXPAYER DOLLARS. WE HAVE TO GET
BACK TO THE BASICS. WHEN I
TALKED TO CALIFORNIANS UP AND
DOWN THE STATE GAS PRICES ARE
STILL HIGH ROADS ARE STILL
CRUMBLING. RETAIL THEFT NEEDS TO
BE STOPPED. WE NEED TO INVEST IN
WATER INFRASTRUCTURE PREPARE
FOR, UM AS SIGNIFICANT RAIN OR
DROUGHT YEARS THAT ARE AHEAD OF
US. I HAVE A TRIBE IN MY
DISTRICT THAT STILL DOES NOT
HAVE CLEAN DRINKING WATER, AND
THIS IS A PERSONAL ISSUE FOR ME,
BUT I DON'T KNOW WHY OUR STATE
IS STILL SPENDING ON WASTEFUL
PROGRAMS LIKE HE MISMANAGED HIGH
SPEED RAIL, WHICH CONTINUES TO
LANGUISH IN THE CENTRAL VALLEY.
WE DON'T THESE ARE NOT NEW
PROBLEMS, AND I'M READY TO WORK
WITH ANYONE ON IN THE
LEGISLATURE AND EVEN THE
GOVERNOR TO GET OUR STATE BACK
ON TRACK. BUT WE HAVE TO GET
BACK TO THE BASICS AND WE HAVE
TO FOCUS ON THE FUNDAMENTALS. SO
THANK YOU, AND I LOOK FORWARD TO
THE BACK AND FORTH. THANK YOU
VERY MUCH, MR VICE CHAIR, AND I
KNOW THAT, YOU KNOW, I DON'T
ALWAYS AGREE ON EVERYTHING
POLITICALLY, BUT I APPRECIATE
YOUR STRAIGHTFORWARD APPROACH
AND LOOK FORWARD TO LOOK FORWARD
TO WORKING WITH YOU. AT THIS
POINT. I WANT TO JUST TAKE A
MOMENT TO ESTABLISH QUORUM. SO,
MADAM SECRETARY, IF YOU COULD
PLEASE, UH, ESTABLISHED DO THE
ROLL CALL. GABRIEL PRESENT.
VINCE FONG. ALVAREZ. BENNETT.
BONTA. CONNELLY. REALLY? A SILLY
FLORA. MIKE FONG HERE, JACKSON.
BLACKIE. LEE. MCCARTY MURATSUCHI
ORTEGA. JIM PATTERSON. JOE
PATTERSON. QUIRK-SILVA RAMOS.
VALENCIA. WALDRON. WARD. WEBER.
WILSON ZIPPER. HORMONES PRESENT.
ALRIGHT NOW THAT WE HAVE
ESTABLISHED A QUORUM THANK YOU
VERY MUCH. MADAM SECRETARY. WE
ARE NOW GOING TO TURN IT OVER TO
OUR PANELISTS. I WANT TO THANK
THEM ALL FOR JOINING US TODAY
AND WE'RE GOING TO GO AHEAD AND
START WITH ERIKA LEE, THE CHIEF
DEPUTY WITH THE DEPARTMENT OF
FINANCE. THANK YOU FOR BEING
WITH US. IT'S BEEN A WHILE. GOOD
MORNING, UM, CHAIR GABRIEL AND
VICE CHAIR FONG AND MEMBERS OF
THE BUDGET COMMITTEE ERIKA LEE
WITH THE DEPARTMENT OF FINANCE,
AND I'M HERE TO PROVIDE YOU WITH
AN OVERVIEW OF THE 24 GOVERNORS
BUDGET. UM TO BEGIN WITH, I JUST
WANT TO START. I WANT TO START
WITH THE FACT THAT THIS
GOVERNOR'S BUDGET WAS DEVELOPED
WITH THE BACKDROP OF SOME
EXTRAORDINARY EVENTS HAPPENING
PRIOR TO IT FIRST RECORD SURGE
IN REVENUES FROM 2019 20 THROUGH
2021 22. UM FOR EXAMPLE, THE BIG
THREE TAX REVENUES GREW BY A
RECORD 55% LARGELY PROPELLED BY
GAINS IN THE STOCK MARKET. UM
CAPITAL GAINS REALIZATIONS
INCREASED 11.6% OF PERSONAL
INCOME AND THIS IS THE HIGHEST
EVER MORE THAN DOUBLING THE 5%
HISTORIC AVERAGE. WHEN THE STATE
EXPERIENCES SUCH HIGHS. IT'S
EXPECTED THAT THERE WILL BE IT
WILL BE FOLLOWED BY A PERIOD OF
DECLINES IN REVENUE. AND THE BIG
QUESTION IS ALWAYS HOW MUCH AND
WHEN PROJECTING REVENUES IS NOT
AN EASY TASK. UM, AND IT WAS
MADE EVEN MORE CHALLENGING THIS
YEAR BY THE SECOND EXTRAORDINARY
EVENT, WHICH WAS THE TAX FILING.
PUSHED THE I. R S DECISION TO
DELAY TAX FILING FIRST TO
OCTOBER AND NOVEMBER 16TH SO
AGAIN. PROJECTING REVENUES IS A
DIFFICULT UH, SCIENCE SLASH ART
MADE EVEN MORE DIFFICULT BY THIS
EVENT. SO SUCH A LENGTHY DAY
DELAY IS UNPRECEDENTED CACHE
DATA WE USUALLY HAVE AT HAND AND
INCORPORATED IN THE MAY REVISION
AND THEN SUBSEQUENTLY IN THE
GOVERNOR'S BUDGET WAS
UNAVAILABLE THIS AT THAT TIME
HAVING THAT CASH DATA WOULD HAVE
INFORMED THE SIZE OF THE REVENUE
CORRECTION AGAIN THAT WE WERE
EXPECTING, BUT WE DIDN'T HAVE
THAT AT HAND. UM HOWEVER, THE
2023 BUDGET DID INCLUDE A
DOWNWARD REVISION IN REGARDS TO,
UM A DOWNWARD TREND IN REGARDS
TO REVENUE, BUT IT WASN'T UNTIL
TAX RECEIPTS WERE RECEIVED LATE
IN THE FALL THAT WE UNDERSTOOD
THE MAGNITUDE OF THE 23 BUDGET
PROTECTED THAT 42 BILLION OF, UM
THE PIT THE PERSONAL, UM, PIT
AND CORP TAXES WOULD BE PUSHED
TO LATER IN THE YEAR. AND WHAT
HAPPENED WAS THAT WE WERE SHORT
BY 25.7 BILLION. WHEN THAT TIME
CAME, AND WE NOW PROJECT GENERAL
FUND REVENUES TO BE ABOUT 44
BILLION LOWER THAN WAS ASSUMED
IN THE BUDGET ACT OVER THE
BUDGET WINDOW, WHICH IS THE
THREE YEARS PRIOR YEAR. THE
CURRENT YEAR WE'RE IN AND THEN
THE BUDGET YEAR UM THE
GOVERNOR'S BUDGET, HOWEVER, DOES
NOT ASSUME A RECESSION. UM WE
SEE THIS MORE AS A CORRECTION OR
QUOTE UNQUOTE A NORMALIZATION
BACK TO NORMAL REVENUE PATTERNS
THAT WERE SIMILAR TO PRE
PANDEMIC UM OR MORE IN LINE WITH
THE PROOF PANDEMIC YEARS. FOR
EXAMPLE, THE 2223 REVENUES 23%
HIGHER THAN WHAT WE WERE
EXPERIENCING BACK IN 1918 19, SO
WE CONTINUE TO PROTECT SLOW BUT
STEADY GROWTH. SO WITH CASH ADA
IN HAND, WE ARE NOT ESTIMATING
THE BUDGET SHORTFALL TO BE 37.9
BILLION, AND THIS INCLUDES A 3.4
BILLION UM, STATE FUND FOR
ECONOMIC UNCERTAINTY, AND THAT'S
BASICALLY OUR CHECKING ACCOUNT.
UM, FOR COSTS THAT COME UP THAT
ARE, UM YOU KNOW, BASICALLY
RISKS. UM, HAD THE FILING TO
DELAY NOT BEEN IN PLACE AGAIN.
MOST OF THE REVENUE DROP WOULD
HAVE BEEN REFLECTED IN LOWER
REVENUES AT THE TIME OF THE MAY
REVISION AND IN THE BUDGET ACT.
SO ESSENTIALLY A LARGE AMOUNT OF
THE CURRENT SHORTFALL THAT WE'RE
SEEING WOULD HAVE BEEN SOLVED
ALREADY. UM, HOWEVER, WE FIND
OURSELVES HERE AND WE MUST
CORRECT FOR IT NOW, SO OVERALL,
THE GOVERNOR'S BUDGET INCLUDES
EXPENDITURES OF $291.5 BILLION
IN TOTAL FUNDS. 208.7 BILLION OF
THAT IS GENERAL FUN. PROPOSED
TOTAL SPENDING IS ACTUALLY 19.3
BILLION LOWER, TOTAL AND 17.2
BILLION LOWER IN GENERAL FUND.
AND THE GOVERNOR'S BUDGET
COMPARED TO THE BUDGET ACT. UM
THE GOVERNOR'S BUDGET, MUCH LIKE
LAST YEAR PROPOSES A PACKAGE OF,
UM BALANCED SOLUTIONS TO ADDRESS
THIS BUDGET SHORTFALL. AND I
JUST WANT TO SAY THAT NONE OF
THE SOLUTIONS THAT WILL BE
TALKING ABOUT UM WERE, UH YOU
KNOW, DISCUSSED OR CHOSEN
LIGHTLY. UM THEY'RE ALL
DIFFICULT, BUT WE DO HAVE TO
BRIDGE THIS GAP AND I WILL SPEND
A LITTLE BIT OF TIME. UH
DISCUSSING AT A HIGH LEVEL. WHAT
THESE BUCKETS AND CATEGORIES ARE
THE FIRST IS. RESERVES THE
BUDGET PROPOSES 13 1.1 BILLION
IN RESERVE SOLUTIONS. UM, AND
JUST AS A REMINDER WE LEFT
RESERVES INTACT IN THIS CURRENT
BUDGET, SO WE KNEW THAT THERE
WERE RISKS ATLANTA HORIZON AND
WE WANTED TO HAVE THAT BUDGET
RESILIENCE SHOULD WE NEED IT?
AND NOW WE'RE PROPOSING TO USE
IT. 12 BILLION IS FROM THE RAINY
DAY FUND OR THE B S A WE ARE
PROPOSING 900 MILLION WITHDRAWAL
FROM THE SAFETY NET RESERVE. UM
AND ON THE OTHER SIDE OF THE
BUDGET. WE'RE ALSO PROPOSING TO
WITHDRAW 5.7 BILLION FROM THE
RAINY THOSE SCHOOLS RAINY DAY
FUND. UM AND IMPORTANT TO NOTE.
WE STILL HAVE 18.4 BILLION TOTAL
LEFT IN RESERVES AGAIN FOR MORE
BUDGET RESILIENCE SHOULD WE NEED
IT? NEXT TIME. THE NEXT BUCKET.
THE NEXT LARGEST BUCK BUCKET IS
REDUCTIONS. AND UM, OBVIOUSLY,
THERE ARE A LOT OF A LOT OF
THINGS IN HERE THAT I THINK WILL
BE DISCUSSED TODAY. UM, THIS
MAKES UP 8.5 BILLION OF OUR
SOLUTIONS. UM AND AS THE
GOVERNOR MENTIONED AT HIS BUDGET
BRIEFING A COUPLE OF WEEKS AGO,
WE'RE LOOKING FIRST TO THE
ADMINISTRATION FOR SOME SAVINGS.
IN ADDITION TO A BUDGET LETTER
THAT WE ISSUED IN DECEMBER TO
DIRECT ALL ENTITIES UNDER THE
GOVERNOR'S AUTHORITY TO, UM RAIN
IN EXPENDITURES. UM, THE
GOVERNOR'S BUDGET ALSO INCLUDES
A PROPOSAL TO SWEEP FUNDING
AVAILABLE FOR VACANT POSITIONS
IN A ONE TIME BASIS IN OUR
DEPARTMENTS, AND THAT IS ABOUT
760 MILLION IN TERMS OF A
SOLUTION. OTHER MEMBER OTHER
REDUCTIONS INCLUDE CLIMATE
PROGRAM, SO CUTS TO SOME OF OUR
CLIMATE PROGRAMS ABOUT 2.9
BILLION UM, WE HAVE EDUCATION
PROGRAM, UM, PRODUCTIONS ABOUT
1.6 BILLION THAT INCLUDES SCHOOL
FACILITIES, AID PROGRAMS, THE
STUDENT HOUSING REVOLVING LOAN
FUND PROGRAM, UCL INSTITUTE OF
IMMUNOLOGY AND IMMUNOTHERAPY AND
THE MIDDLE CLASS SCHOLARSHIP
2.0. WE HAVE ABOUT 1.2 BILLION
IN REDUCTIONS. THESE ARE
PROPOSED REDUCTIONS IN HOUSING,
UM, INCLUDING REGIONAL EARLY
ACTION PLANNING GROUNDS, MULTI
FAMILY HOUSING PROGRAM FOR
CLOSURE INTERVENTION, HOUSING
PRESERVATION PROGRAM INFILL
INFRASTRUCTURE PROGRAM. UM WE
ALSO HAVE ON THE TABLE. PROPOSED
WORKS REDUCTIONS, UM FOR A
FAMILY STABILIZATION PROGRAM,
EMPLOYMENT SERVICES INTENSIVE
CASE MANAGEMENT EXPANDED
SUBSIDIZED EMPLOYMENT. UM SOME,
ADDITIONALLY SOME PROGRAMS
WITHIN THE CHILD WELFARE
PROGRAM. OUR NEXT CATEGORY OF.
SOLUTIONS INCLUDES DELAYS AND
DEFERRALS. THIS IS ABOUT 7.2
BILLION, UM, AND JUST NOTE THAT
THESE ARE STILL COMMITMENTS THAT
WE PLAN ON MAKING, BUT THEY ARE
PUSHED TO LATER DATES. UM SOME
EXAMPLES OF DELAYS ARE IN
TRANSIT, THE TRANSIT AND
INTERCITY RAIL CAPITAL PROGRAM.
WE ARE PROPOSING DELAYING 1
BILLION OF THE 2 BILLION THAT IS
SET FOR BUDGET YEAR PUSHING OUT
1,000,000,002 BUDGET YEAR PLUS
ONE. THE CLEAN ENERGY
RELIABILITY INVESTMENT PLAN. WE
ARE PROPOSING DELAYING 400
MILLION THERE. UM IN THE HEALTH
AND HUMAN SERVICES PROGRAM AREA.
WE ARE PROPOSING, UM DDS SERVICE
PROVIDER RATE REFORM DELAY AND
ACTUALLY GOING BACK TO THE
ORIGINAL PLANNED TIMING IN 2526.
UM AS WELL AS A DELAY IN THE
BEHAVIORAL HEALTH BRIDGE
PROGRAM. IN ADDITION, WE HAVE
SOME DELAYS TO THE ECONOMIC
DEVELOPMENT PROGRAMS SUCH AS THE
CALIFORNIA JOBS FIRST FORMERLY
KNOWN AS SURF, UM, THE CITY OF
FRESNO FUNDING AS WELL, UM AND
THEN IN EDUCATION, WE HAVE A
DELAY FOR THE EDUCATION
INFRASTRUCTURE PROGRAM. UM OF
ABOUT 550 MILLION. UM SOME
NOTABLE DEFERRALS ARE THE UC AND
CSU COMPACT. SO WE DEFER FOR A
YEAR. UM, THE BUDGET YEAR
COMMITMENT FOR BOTH SYSTEMS FOR
THE èC. THAT'S ABOUT 228
MILLION PLUS 31 MILLION FOR THE
NON RESIDENT. UM, REVENUE OFFSET
AND FOR THE CSU. IT'S ABOUT 240
MILLION. UM THE IDEA HERE IS
THAT WE ARE DELAYING WITH THE
COMMITMENT TO PAY IN A YEAR THAT
5% BASED INCREASE AND ALLOW IT
THAT WHICH ALLOWS THE CSU AND
THE èC TO, UM FINANCE TO USE
INTERIM FINANCING TO, UM,
SUPPORT THEIR SPENDING IN THE
BUDGET YEAR. THE NEXT BUCKET IS
REVENUE AND BORROWING AND SOME
NOTABLE PROPOSALS HERE ARE AN
INCREASE TO THE TAX GENERAL FUND
OFFSET ABOUT 3.8 BILLION AND
CONFORMING TO THE TAX CUTS AND
JOBS ACT THAT OPERATING LOSS OR
N O. L LIMITATION. UM AND THAT'S
ABOUT 300 MILLION IN REVENUE. UM
AND THEN WE HAVE FUN SHIPS ABOUT
3.4 BILLION. THIS LAST CATEGORY,
UM INCLUDES, UH NOTABLY GENERAL
FUND SHIFTS TO THE GREENHOUSE
GAS REDUCTION FUND. UM SO MUCH
OF THE STORY OF CALIFORNIA'S
BUDGET SAYS WE'VE BEEN HEARING
OVER THE PAST FEW YEARS. UM,
THERE. IT'S REALLY BASED ON BOOM
AND BUST CYCLES, AND IT'S DUE TO
THE PROGRESSIVE NATURE OF OUR
TEXT STRUCTURE AND TO MITIGATE
THIS VOLATILITY, UM, WHICH WE
HAVE SEEN HIT EXTREME MEASURES
IN THE PAST FEW YEARS. VOTERS
PASSED PROP. TWO UM, PROPERTIES
THAT REQUIREMENTS THAT BUILD, UM
, RESERVES DURING OUR UPSWINGS
SO THAT WE CAN PREVENT DEEP CUTS
DURING OUR DOWN SWINGS. UM
HOWEVER, AS THE GOVERNOR
MENTIONED SEVERAL WEEKS AGO,
IT'S LIKELY TIME TO REVISIT AND
BOOST THESE RESERVE REQUIREMENTS
. SO WE HOPE TO CONTINUE HAVING
CONVERSATIONS WITH THE
LEGISLATURE AROUND POTENTIAL
CHANGES THAT WOULD ALLOW US TO
SAVE MORE FUNDS DURING THESE
UPSWINGS. UM, YOU'LL SEE THAT
YOU KNOW, ONE OF OUR LARGEST
SOLUTION IS ACTUALLY THE BUDGET
RESILIENCY THAT WAS CREATED IN
PART WITH THE RESERVES, THE
MANDATORY RESERVES REQUIRED BY
PROP. TWO SO FINALLY, AS ALWAYS,
THE GOVERNOR'S BUDGET IS THE
STARTING POINT FOR THE
CONVERSATION OF THIS BUDGET. UM
WE, UH ALL OF THESE PROPOSALS AS
MENTIONED, UM, ARE UP FOR
CONSIDERATION DISCUSSION WITH
THE LEGISLATURE AND WE LOOK
FORWARD TO ENGAGING WITH YOU IN
THE COMING WEEKS, PARTICULARLY
AS WE CONSIDER SOME OF THESE
ITEMS FOR EARLY ACTION. UM WE
BELIEVE IT IS OUR SHARED GOAL TO
HAVE A BALANCED APPROACH TO MEET
THE SHORTFALL. UM AS WELL AS TO
PROTECT THE PROGRESS THAT WE'VE
MADE AND A LOT OF PRIORITY AREAS
THAT AGAIN SHARED GOALS. UM AND
OF COURSE, TO MAINTAIN
SIGNIFICANT RESERVES FOR THOSE
DOWN SWINGS. THANK YOU. I'M VERY
HAPPY TO RESPOND TO QUESTIONS
AFTER ELIO. WONDERFUL THANK YOU
VERY MUCH, MR LEE. WE APPRECIATE
YOU BEING HERE AND WE ARE GOING
TO HEAR FROM OUR OTHER
PANELISTS. AND THEN WE'LL DO
QUESTIONS AND COMMENTS FOR
MEMBERS OF THE COMMITTEE. SO NOW
WE'RE HERE GOING TO HEAR FROM
OUR EXPERTS AT THE LEGISLATIVE
ANALYST'S OFFICE, AND SO ON A
WELCOME GABE PETEK AND CAROLINE
CHEW. THANK YOU FOR BEING WITH
US TODAY. THANK YOU VERY MUCH,
MR. CHAIR. GABRIEL AND VICE
CHAIR. FANG THANK YOU FOR HAVING
OUR OFFICE HERE TODAY AND
MEMBERS. WE LOOK FORWARD TO
WORKING ON THE BUDGET PROCESS
THAT YOU SKETCHED OUT THE DAYS
THAT WE FACE AHEAD AND AS WE
MEET THE CONSTITUTIONAL DEADLINE
OF ADOPTING A BUDGET BY JUNE,
15TH UH, SO BEFORE WE START
GOING THROUGH MY COMMENTS AND
SOME SOME OF OUR
CHARACTERIZATIONS OF THE
GOVERNOR'S BUDGET PROPOSAL, I
DID ALSO WANT TO START BY, UH,
JUST SLIGHTLY SETTING THE TABLE
WITH THREE SORT OF FRAMING
QUESTIONS. THEY ARE LISTED ON
THE FIRST PAGE OF YOUR HANDOUT,
WHICH HOPEFULLY YOU HAVE. THE
FIRST IS, UH, SIMILAR TO HOW MY
COLLEAGUE FROM FINANCE DID, BUT
YOU KNOW, WHY IS THE STATE
FACING A BUDGET PROBLEM AND I DO
THINK IT'S USEFUL TO GO BACK AND
REMEMBER THAT WHEN WE ADOPTED
THE STATE BUDGET FOR THE CURRENT
YEAR BACK IN JUNE, THE
DEPARTMENT OF FINANCE MULTIYEAR
ESTIMATES AT THAT TIME
ANTICIPATED A $14 BILLION
DEFICIT FOR THE UPCOMING BUDGET
YEAR, SO THAT WAS SORT OF BAKED
IN ALREADY? THAT WAS SORT OF OUR
STARTING POINT. WE'RE STARTING
OUT A BIT BEHIND. THEN THE
REVENUE EROSION THAT WE BEGAN
EXPERIENCING IN 2022 PERSISTED
THROUGHOUT ALL OF 2022 23 FISCAL
YEAR. AND AS A AH, CHIEF DEPUTY
LEE MENTIONED WE DIDN'T FIND OUT
ABOUT THE MAGNITUDE OF IT UNTIL
MUCH LATER THAN NORMAL. UM IN
THE END, OUR OFFICE DID REVISED
DOWN OUR REVENUE ESTIMATES BY 58
BILLION, WHICH IS ABOUT 15
BILLION MORE. THE DOWNWARD
REVISION, THEN WHAT FINANCE DID
THE BOTH OF OUR OFFICES WOULD
AGREE THAT, UH, THE PRIOR YEAR
THAT WE NOW KNOW ABOUT THERE WAS
A DECLINE OF ABOUT 26 BILLION IN
THAT FISCAL YEAR, SO THERE'S
AGREEMENT ON THAT BECAUSE IT
RELATES TO A PRIOR FISCAL YEAR.
WHERE WE BEGIN TO DIFFER IS WHEN
THE REVENUE RECOVERY REALLY
BEGINS OR WHEN WE CAN EXPECT TO
SEE SOME REBOUNDED AND REVENUES.
AH THE FINANCES NUMBERS SHOW
THAT THEY'RE ANTICIPATING
GENERAL FUND REVENUES INCREASING
BY ABOUT 8% IN THE CURRENT
FISCAL YEAR. AND WE DON'T REALLY
SEE THE BASIS FOR THAT.
HISTORICALLY THAT'S NOT WHAT
HAPPENS HISTORICALLY, WHEN YOU
SEE A LARGE DECLINE IN REVENUES,
IT WILL PERSIST. THERE WILL BE
SOME STAGNATION FOR A YEAR OR
TWO THEREAFTER. AND IN ADDITION
TO JUST THAT HISTORICAL
EXPERIENCE, THAT IS NOT WHAT THE
CASH COLLECTIONS ARE TELLING US
SO FAR THIS FISCAL YEAR. SO FAR,
THE CASH COLLECTIONS ARE LINING
UP, UH, AND A LOWER TRAJECTORY
THAN WHAT FINANCE ESTIMATES. AND
SO WE, UH, THINK THAT'S JUST
SOMETHING TO BE AWARE OF AS WE
GO INITIATE THIS PROCESS.
SECONDLY ON HIS SOMEWHAT BETTER
NOTE, REALLY IS THAT YOU KNOW
THE QUESTION OF HOW PREPARED IS
THE STATE FOR A BUDGET PROBLEM,
AND THE GOOD NEWS HERE IS WE GO
INTO THIS SITUATION ON MUCH
BETTER FISCAL FOOTING THAN WE
DID THE LAST RECESSION. AH THE
STATE HAS HIGH RESERVE LEVELS
COMPARED TO HISTORICALLY AND
ALSO OUR CASH POSITION IS QUITE
STRONG. SO WE HAVE THE LIQUIDITY
TO FUND OUR EXPENDITURES. AND
YOU KNOW THERE ARE NO UH THERE'S
NO ANTICIPATION THAT THERE WOULD
BE A CASH CRISIS LIKE WE
EXPERIENCED IN THAT THAT PERIOD.
IN ADDITION, A LOT OF VERY HIGH
SHARE OF THE ALLOCATIONS MADE
WITH THOSE VERY LARGE SURPLUSES
IN PRIOR YEARS DID GO TO ONE
TIME AND TEMPORARY SPENDING
PURPOSES, SO THAT GIVES US MORE
FLEXIBILITY TO PULL BACK ON SOME
OF THOSE ALLOCATIONS WITHOUT
IMPACTING CORE GOVERNMENTAL
SERVICES, SO THAT'S ALSO GOOD.
THEN THE FINAL QUESTION I WANTED
TO ADDRESS BEFORE JUST GOING
THROUGH MY REMARKS BRIEFLY HERE
IS THAT, UH, YOU KNOW WHAT IS
THE OUTLOOK GOING FORWARD, AND I
THINK THE CHAIR ALREADY
ACKNOWLEDGED THAT, UH, WE HAVE
$30 BILLION ROUGHLY OF DEFICITS
SIMILAR TO WHAT FINANCES
ESTIMATING IN EACH OF THE
SUBSEQUENT THREE YEARS. AND SO
THE BUDGET CHALLENGES ARE NOT
JUST THE UPCOMING YEAR BUT THE
YEARS AHEAD. AND BECAUSE OF THAT
, OUR RECOMMENDATIONS THAT
YOU'LL HEAR ABOUT IN THIS
HEARING, BUT ALSO THROUGHOUT THE
THIS COMING, YOU KNOW, MONTHS.
IS THAT WE DEVELOPED OUR
THINKING WITH AN EYE TOWARDS
MITIGATING THOSE FUTURE
CHALLENGES. UH AND YOU KNOW,
REALLY TRYING TO MAKE IT EASIER
FOR THE LEGISLATURE IN THOSE
SUBSEQUENT YEARS TO NAVIGATE THE
UNCERTAINTY THAT LIES AHEAD.
OKAY SO MOVING TO PAGE 21 OF THE
ONE OF THE QUESTIONS THAT WE'VE
BEEN RECEIVING A LOT AND I'VE
BEEN SEEING A LOT ABOUT IS JUST
REALLY THIS DIFFERENCE BETWEEN
THE $38 BILLION DEFICIT THAT THE
ADMINISTRATION IS CITING AND, UH
, THE $68 BILLION DEFICIT THAT
WE HAVE CITED. SO YOU KNOW, EVEN
FOR CALIFORNIA $30 BILLION
DISCREPANCY IS NOTEWORTHY AND
WARRANTS SOME ATTENTION, SO I
WANTED TO JUST KIND OF WALK
THROUGH. ON THIS SLIDE VERY
QUICKLY RECONCILIATION, WHICH IS
WHAT THE FIGURE ON THIS PAGE
ATTEMPTS TO DO IF YOU START AT
THE FAR LEFT THE BAR THERE
REPRESENTS THE ADMINISTRATION
CITED $38 BILLION DEFICIT. NOW
THIS SHORTER TWO BARS TO ITS
RIGHT. OUR, UM. SOME CHANGES TO
THE EXPENDITURE BASE LINE THAT
THE ADMINISTRATION OCCURRED
ASSUMES WILL WILL HAPPEN. AND
THESE SOME TO ABOUT 20 $21
BILLION WORTH OF CHANGES TO THE
ESTATES EXPENDITURE BASE. THE
LARGEST OF THIS OF THESE IS A
REDUCED LEVEL OF FUNDING FOR K
THROUGH 14 EDUCATION UNDER
PROPOSITION 98. THERE'S SOME
SMALLER ONES AS WELL. BUT WHEN
YOU ADD THAT 20 TO 21 BILLION TO
THE 38 BILLION, THEN YOU GET TO
58 BILLION, WHICH IS OUR
ESTIMATE OF THE ACTUAL SIZE OF
THE DEFICIT THAT THE
ADMINISTRATION HAS SOLVED FOR.
SO WHEN YOU LOOK AT IT LIKE THAT
THE TWO DEFICITS 58 BILLION
VERSUS 68 BILLION OR NOT AS
DIFFERENT UM, THE REASON WE
DON'T THINK OF THESE SMALLER
BARS AS AS BASELINE CHANGES WE
THINK OF THESE AS POTENTIAL
SOLUTIONS IS BECAUSE OF THE
LEGISLATURE WILL HAVE TO VOTE
FOR THESE TO TAKE EFFECT. SO IN
THAT SENSE, THESE ARE POLICY
CHOICES. THESE ARE YOUR CHOICE,
WHETHER OR NOT TO ADOPT THESE
CHANGES ARE NOT JUST OCCURRING
AS A COURSE OF IMPLEMENTING THE
EXISTING LAW. AH, SO. THEN TO
THE PANEL ON THE RIGHT. WE TAKE
THE 58 BILLION, WHICH IS OUR
ESTIMATE OF THE ADMINISTRATION'S
ACTUAL DEFICIT PROBLEM THAT THEY
SOLVE FOR AND YOU LOWER THE
REVENUE ESTIMATES. AS I WAS
MENTIONING, WE HAVE A SIMILAR
LOWER REVENUE ESTIMATE THAN THE
ADMINISTRATION AND THEN SOME
OTHER SMALLER CHANGES. THAT
BRINGS US TO THE $68 BILLION
PROBLEM THAT WE'VE IDENTIFIED.
OKAY, SO. WITH THAT I CAN MOVE
TO THE THIRD PAGE AND HERE
BASICALLY, UH KIND OF PROVIDING
SOME CHARACTERIZATION OF THE
GOVERNOR'S PROPOSED SOLUTIONS
AND THEN OUR BRIEF ASSESSMENT OF
SOME OF THEM. SO TO BEGIN, YOU
CAN SEE THAT ALMOST HALF OF THE
TOTAL SOLUTIONS ARE SPENDING
RELATED CHANGES THAT HE'S
PROPOSING. UM THOSE SOME TO
ABOUT 26 BILLION NOT INCLUDING
THE CHANGE TO PROPOSITION 98
THAT I MENTIONED. THESE ARE THE
OTHER TYPES OF CHANGES, THEN
ABOUT 1313 BILLION OF USE OF
RESERVES, WHICH ACCOUNTS FOR
ABOUT 22% OF THE TOTAL SOLUTION,
AND THEN SOME SMALLER AMOUNTS IN
TERMS OF CASH, CASH SHIFTS AND
REVENUE INCREASES, MAKING UP THE
BALANCE. OUR ASSESSMENT OF THESE
IS THAT I'LL JUST START WITH
RESERVES. WE THINK IT'S
GENERALLY INAPPROPRIATE USE OF
RESERVES. UH YOU KNOW WHEN
FACING A LARGE DEFICIT USING
SOME AMOUNT OF RESERVES FOR YOU
KNOW, THEY REFER TO IT AS A
RAINY DAY FUND FOR A REASON, AND
RIGHT NOW, THE FISCAL SITUATION
CONSTITUTES A RAINY DAY AND SO
USING SOME OF THE RESERVES FOR
HELPING WITH SOLVING THE BUDGET
PROBLEM MAKES SENSE. WE ALSO
AGREE THAT RETAINING AH, YOU
KNOW, THERE WILL BE AFTER THE
GOVERNOR'S PROPOSAL. THERE WOULD
BE ABOUT 11.1 BILLION STILL IN
THE BUDGET STABILIZATION ACCOUNT
, WHICH WE REALLY THINK IS
PRUDENT. THE CHAIR MENTIONED THE
UNCERTAINTY AHEAD. WE REALLY
AGREE WITH THAT CAUTION ABOUT
THE UNCERTAINTY AND EVEN OUR
EXISTING OUTLOOK CALLS FOR, UM
MORE MORE CHALLENGES, SO IT
MAKES SENSE TO HAVE SOME
RESERVES STILL IN PLACE. UH THE
OTHER ONE I DID WANT TO TOUCH ON
HERE IS THIS PROPOSED REDUCTION
TO PROPOSITION 98? SO THIS THIS
PROPOSAL IS LACKING THE FULL
EXPLANATION. FRANKLY, UM THE, UH
THE PROPOSAL SEEMS TO REST ON AN
$8 BILLION REDUCTION TO THE
PRIOR YEAR FUNDING FOR
PROPOSITION 98. BUT THE BUDGET
DOCUMENTS ALSO REFER TO, UH,
MAKING SURE THAT THE LOCAL
EDUCATION AGENCIES ARE NOT
IMPACTED ADVERSELY. AND SO THAT
SUGGESTS TO US THAT THERE'S
FUNDING COMING FROM SOMEWHERE TO
OFFSET THAT $8 BILLION REDUCTION
TO PROPOSITION 98. BUT IT'S JUST
NOT EXPLAINED, UH, FULLY. OUR
STAFF HAS BEEN LOOKING INTO THIS
AND WILL CONTINUE TO DO SO. BUT
WE DO THINK THAT'S AN AREA THAT
WILL REQUIRE A MORE FULSOME
EXPLANATION IN THE COME IN TIME
HERE. AS FOR THE SPENDING
RELATED SOLUTIONS, THE 26
BILLION OF NON PROPOSITION 98
SPENDING REDUCTIONS THAT SALUTE
SPENDING SOLUTIONS RATHER, UM,
THESE INCLUDE REDUCTIONS DELAYS.
VERSIONS AND FUND SHIFTS THAT
SUMS TO 26 BILLION ABOUT 8
BILLION OF THESE UM ARE IN THE
FORM OF DELAYS SO WELL MANY OF
THE SPENDING RELATED SOLUTIONS
ARE WARRANTED AND MAKES SENSE.
SOME OF THEM POSE CHALLENGES.
GIVEN YOUR FISCAL OUTLOOK THAT
WE FACE 8 BILLION OF DELAYS OF
THAT 26 BILLION MEANS THAT WE
SAVE THAT AMOUNT OF EXPENDITURE
IN THE BUDGET YEAR. BUT OF
COURSE IMPLIES THAT WE WILL BE
SPENDING IT IN SUBSEQUENT YEARS,
SO GIVEN THAT WE FACE THESE OUT
YEAR BUDGET DEFICITS UH, YOU
KNOW, THE PROPOSAL WOULD TAKE 8
BILLION AND SPEND 5 BILLION IN
THE 2025 26 YEAR 2 BILLION IN
2026, 27 AND 1 BILLION IN 2728.
AND YOU KNOW, YOU MAY NEED TO
WIND UP THINKING OF THOSE AS
OUTRIGHT REDUCTIONS GIVEN OUR
FISCAL OUTLOOK RATHER THAN
DELAYS IF WE'RE GOING TO BE, UH,
YOU KNOW, UPFRONT ABOUT THE
CHALLENGE WE FACE. SO. THAT
LEAVES US WITH PAGE FOUR. THE
FINAL PAGE OF MY PREPARED
PORTION OF THE PRESENTATION. AND
HERE WHAT WE HAVE PRESENTED OUR
KIND OF A LIST OF PRINCIPLES FOR
THE LEGISLATURE TO KEEP IN MIND
WHICH IS TO YOU KNOW THINGS LIKE
PLANNING FOR THE POSSIBILITY OF
LOWER RESERVES. UM DEVELOPING A
PLAN. AS I MENTIONED THE AND
QUESTIONS WE HAVE ABOUT THE
PROPOSITION 98 REDUCTION. WE
THINK THE LEGISLATURE COULD
PROCEED WITH ITS OWN PLAN AROUND
THAT WE PUT FORWARD SOMETHING IN
OUR FISCAL OUTLOOK BACK IN
DECEMBER. UM YOU KNOW, AND
SEVERAL OF THEIR OF THOSE
PRINCIPLES. IN GENERAL
RECOMMENDATIONS ARE AIMED AT
MITIGATING THE PROBLEM THAT YOU
FACE IN FUTURE YEARS, BUT AT THE
SAME TIME PRESERVING SOME OF THE
STATE'S FISCAL RESILIENCE. WHERE
THE ADDITIONAL UNCERTAINTY THAT
REMAINS AND IS TO COME UM. YOU
KNOW, THERE MAY BE HUNDREDS OF
MILLIONS IN UNSPENT FUNDS, FOR
EXAMPLE, IN THE NATURAL
RESOURCES AND CLIMATE
INVESTMENTS THAT HAVE BEEN MADE
IN RECENT YEARS, WE DON'T HAVE
NECESSARILY ALL OF THE DETAIL.
AT THIS POINT. WE'RE STILL
UNPACKING THE PROPOSAL, BUT
THERE COULD BE THESE TYPES OF
ALLOCATIONS THAT YOU COULD
CONSIDER PULLING BACK THAT
HAVEN'T BEEN ENCUMBERED AT THIS
POINT, AND SO UM, YOU KNOW, THIS
WILL ALL BE A PART OF THE
PROCESS AS WE GO FORWARD, BUT
I'LL STOP THERE AND ALONG WITH
MY COLLEAGUE WILL BE HAPPY TO
RESPOND TO ANY QUESTIONS THAT
YOU MAY HAVE. ALL RIGHT. THANK
YOU VERY MUCH. YOU'VE CERTAINLY
GIVEN US A LOT TO THINK ABOUT.
SO WE APPRECIATE YOU AND, UH,
AND YOUR DEPUTY BEING HERE AT
THIS POINT, WE'RE GOING TO GO
AHEAD AND BRING IT BACK TO
MEMBERS OF THE COMMITTEE. THIS
IS AN OPPORTUNITY FOR FOLKS TO
SHARE THEIR THOUGHTS AND
OBSERVATIONS TO ASK QUESTIONS OF
OUR PANEL. I'M GOING TO GO AHEAD
AND I KNOW WE HAVE SOME OTHER
COMMITTEE MEMBERS THAT NEED TO
GO TO THE PLACE, SO I'M GOING TO
DEFER TILL THE VERY END WITH MY
QUESTIONS AND COMMENTS AND TURN
IT OVER TO, UH, TO OUR VICE
CHAIR TO BEGIN. SURE. THANK YOU,
MR CHAIR. I JUST WANT TO KIND OF
STAY LOW HIGH LEVEL BEFORE GOING
TO SPECIFICS, BUT, UM, TO THE TO
THE DEPARTMENT OF FINANCE. UM IT
IS MY UNDERSTANDING THAT AS OF
LAST WEEK, PERSONAL INCOME AND
CORPORATE TAXES WERE COMING IN
ALMOST 8 BILLION SHORT OF
ESTIMATES. CAN YOU SHED SOME
LIGHT ON ON THE JANUARY NUMBERS?
UM YEAH, I'LL JUST START AT A
HIGH LEVEL THAT, UM AND THEN I
THINK ONE OF MY COLLEAGUES WILL
JOIN ME. UM, BUT, YES, WE'VE
NOTICED ALSO THE REDUCTION IN
REVENUES COMING IN COMPARED TO
THE GOVERNOR'S BUDGET. UM I
WOULD JUST NOTE THAT IT IS STILL
EARLY, AND WE ARE REALLY
ANTICIPATING THE UPCOMING
MONTHS, PARTICULARLY OUR APRIL
TAX RECEIPTS. AND SO I WOULD SAY
WE ARE WATCHING THAT, UM UH,
WITH WITH SOME CONCERN, NOTICING
THAT, YOU KNOW, ALREADY THE
REVENUES ARE COMING IN SHORTER.
I'LL TURN IT OVER TO MY
COLLEAGUE. THANK YOU FOR THE
QUESTION. KOBE WHITE DEPARTMENT
OF FINANCE HAVEN'T HAVEN'T SEEN
$8 BILLION NUMBER, BUT WE DID.
ELLA OH, DID PUT OUT AN UPDATE
YESTERDAY AFTERNOON REFERENCING
ABOUT 33.8 BILLION, SO JANUARY
IS COMING A BIT WEAKER THAN
EXPECTED. UM AS MISS LEE, UH,
AND, UH, STATED WE IT IS EARLY
IN THE PROCESS. WE STILL HAVE
SIGNIFICANT AMOUNT OF CASH DATA
THAT WILL COME IN PRIOR TO MAY
REVISION. FOR EXAMPLE, OVER 40
BILLION IN PERSONAL INCOME TAX
PAYMENTS IN FEBRUARY THROUGH
MARCH OVER 13 MILLION REFUNDS,
THERE IS SIGNIFICANT VARIABILITY
IN MONTHLY RESULTS. AND UH AND
SO AND NOT TO MENTION ECONOMIC
DEVELOPMENTS AS WELL AS CHANGES
IN THE STOCK MARKET PRIOR PRIOR
TO THE MAY REVISION. SO I GUESS
THE FOLLOW UP. I MEAN, AND
PLEASE CORRECT ME. IF THE 8
BILLION IS OUT THE NUMBER IS
THERE. WHAT NUMBER DO YOU HAVE
IN TERMS OF THE ESTIMATES
COMPARED TO REALITY. SO JANUARY
IS STILL IS IT NOT OVER YET, SO
WE DON'T WE DON'T HAVE A
SPECIFIC NUMBER WILL BE
REPORTING IN MID FEBRUARY ON
RESULTS THROUGH JANUARY, THE L.
A REPORTED 3 BILLION IN
ESTIMATED PAYMENTS BASED ON
THEIR PROJECTIONS AND 800
MILLION WITHHOLDING FOR JANUARY
ALONE. IT DID NOT INCLUDE THE
OVERHEAD FOR WITHHOLDING IN
NOVEMBER AND DECEMBER. AND THAT
MAYBE I DON'T WANT TO PUT YOU ON
THE SPOT IN TERMS OF RESPONDING
TO THE LAO BUT IN TERMS OF HIS
ANALYSIS IN TERMS OF YOU'RE
ASSUMPTIONS ABOUT REVENUE COMING
BACK AND HISTORICALLY, REVENUES
BEING A LITTLE STAGNANT OVER
TIME, AND THEN MAYBE RISING
LATER IN THE FUTURE. DO YOU HAVE
A RESPONSE TO THAT? YEAH I WOULD
JUST SAY THAT OVER THE SIX YEARS
THAT WE'RE LOOKING AT THE BUDGET
WINDOW AND THE FOLLOWING THREE
YEARS. WE ARE VERY, VERY CLOSE
IN REGARDS TO AND THE DEPARTMENT
OF FINANCE IS REVENUE FORECASTS
ARE ONLY $2.5 BILLION DIFFERENT
AND THAT'S UH UM, PRETTY
SIGNIFICANT IN ITS INSIGNIFICANT
, UM, IN REGARDS TO THE TIMING.
THAT IS WHERE WE DIFFER. THE L
A. OH, DOES. UM UH OR I'LL SAY
FINANCE IS A LITTLE MORE
OPTIMISTIC IN THE BUDGET WINDOW,
WHEREAS, UM, THE ELIO IS LESS SO
AND MORE OPTIMISTIC. AND IN THE
THREE YEARS FOLLOWING AND JUST
TO BE CLEAR IF I'M READING THE
YOUR PROJECTIONS, THE EARLIEST
DEPARTMENT FINANCE PROJECTIONS I
HAVE. AND PLEASE CORRECT ME IF
I'M WRONG, BUT YOU HAVE, UM,
PROJECTED DEFICITS OF 36.5
BILLION IN 2526 30.2 BILLION IN
2627 AND 28.5 BILLION IN 2728.
IS THAT CORRECT? YEAH THAT'S
ABOUT CORRECT. OKAY SO YOU DO SO
IN YOUR ANALYSIS, YOU ARE
PROJECTING THOSE DEFICITS AND
THOSE AND THOSE BUDGET YEARS.
EVEN WITH THIS WITH WITH THE
PROPOSAL THAT YOU BEFORE WE DO
SEE OUT YOUR DEFICITS, AS NOTED
COMPARABLE TO THE L. A ABOUT 30
BILLION IN EACH OF THOSE YEARS.
UM I THINK JUST WOULD LIKE TO
NOTE THAT THERE ARE CONSEQUENCES
ARE CONSTITUTIONAL OBLIGATION IS
TO ENSURE THAT THE BUDGET YEAR
IS POSITIVE. THIS BUDGET DOES
THAT WE RECOGNIZE THAT THERE ARE
AT YOUR DEFICITS, UM, AND ALSO
RECOGNIZE THAT IT IS NOT UNUSUAL
TO HAVE OUT YOUR DEFICITS IN
SITUATIONS SIMILAR TO THE FISCAL
SITUATION. WHERE IN, UM ALSO
NOTE THAT WE WILL HAVE TO MAKE
UM TOUGH DECISIONS IN REGARDS TO
ONGOING CUTS, BECAUSE THAT'S
REALLY YOU KNOW, WE HAVE A LOT
OF ONE TIME. PROPOSALS ON THE
TABLE THAT WILL HELP WE HAVE
SOMEONE TIME DOLLARS IN THE OUT
YEARS, BUT, UM, THERE THERE MAY
NEED TO BE ONGOING CUTS IN
FUTURE YEARS. I THINK THAT'S
SOMETHING THAT, UM WE WILL BE
ASSESSING IN THE FUTURE MONTHS
AND DISCUSSING WITH THE
LEGISLATURE IN REGARDS TO HOW
TO, UM WHEN AND HOW TO HANDLE
THAT SITUATION. UH I GUESS I
WOULD LIKE TO ASK, UM, ELIO AND
THIS. I THINK THIS IS IMPORTANT
CONVERSATION FOR THE ENTIRE
COMMITTEE TO PARTICIPATE IN AND
YOU AND I HAVE HAD THIS
CONVERSATION ABOUT HOW
EVERYTHING IS KIND OF
INTERLINKED TOGETHER THAT IF WE
IF WE DON'T TAKE ACTIONS TODAY
OR IN THE NEAR FUTURE, IT DOES
AFFECT A LOT OF THESE BASELINES
MOVING OUT AND OF COURSE, WOULD
EITHER RESTRICT OR OR OR PREVENT
US FROM HAVING OPTIONS IN THE
FUTURE. CAN YOU CAN YOU KIND OF
EXPOUND ON THAT IN TERMS OF HOW
WE HAVE TO ACT NOW OR THE AND
HOW IT'S AND HOW IT IMPACTS
FUTURE YEARS. YES MR FONG. I
THINK THAT IS CORRECT. I DO
THINK THAT LIKE AS I MENTIONED
IN MY REMARKS THE THEME OF OUR
GUIDANCE TO THE LEGISLATURE THIS
YEAR WILL BE TO THINK ABOUT
THOSE OUT YOUR IMPLICATIONS OF
THE CHOICES YOU MAKE NOW. UH AND
JUST TO, UH, UNFORTUNATELY. ADD
TO THE CHALLENGE. YOU KNOW THE
$30 BILLION IN ANNUAL DEFICITS
IN THE FUTURE YEARS THAT WE ARE
FACING ARE UNLIKELY TO BE
RESOLVED JUST FROM NATURAL
REVENUE GROWTH. WE'VE ESTIMATED
THAT YOU WOULD REALLY NEED $50
BILLION OF REVENUE GROWTH TO
SOLVE THOSE DEFICITS ON THE
NATURAL AND THAT'S BECAUSE OF
THE PROPOSITION 98 EFFECT, OF
COURSE, BECAUSE ABOUT 40% OF OUR
REVENUE WOULD GO THERE. SO
THAT'S THE THAT'S THE CHALLENGE
THAT WE FACE IS SIGNIFICANT. UH
AND AS TO THE QUESTION ABOUT THE
CHOICES AND THE ONGOING EFFECTS
OF THOSE ONE, MAYBE I CAN BEST
ANSWER THIS WITH SOME
INFORMATION. UH IN THE RECENT
YEARS WHERE WE HAD A VERY LARGE
UH UH, SURPLUSES. AH WE HAVE ALL
ACKNOWLEDGED THAT THE MAJORITY
OF THE ALLOCATIONS MADE FROM
THOSE SURPLUSES WAS 21 TIME AND
TEMPORARY SPENDING ALLOCATIONS,
WHICH IS PRUDENT. IT DOES GIVE
US AN OPPORTUNITY TO PULL BACK
WITHOUT AFFECTING CORE PROGRAMS.
BUT EVEN A SMALL SHARE IN THE
SINGLE DIGIT PERCENTAGES OF THE
ONGOING. EXPANSIONS AND
AUGMENTATIONS ARE NOT IMMATERIAL
. SO IN THOSE SEVERAL YEARS
WHERE WE HAD THE LARGE SURPLUSES
, EVEN A FEW A FEW OF THE
AUGMENTATIONS THAT WE ADDED TO,
UH, WE HAVE ESTIMATED IN THIS,
UH, CURRENT YEAR ARE COSTING 13
BILLION AND WILL GROW TO 19
BILLION BY 2027 28. AND THAT
DOESN'T EVEN INCLUDE THE PROGRAM
GROWTH OR, UH, FOR INFLATIONARY
IMPACT. THAT'S REALLY JUST THE
COST OF IMPLEMENTING THESE
PROGRAMS AS AS ASSUMED AT THE
TIME OF THE UM, ENACTMENT OF
THOSE PROGRAMS. AND SO I MEAN,
IT JUST GIVES YOU A SENSE THAT
EVEN A SMALLER NEW, ONGOING
COMMITMENT WILL GROW IN TIME AND
ADD TO THE BUDGET EXPENDITURE
BASED SIGNIFICANTLY, EVEN SO.
APPRECIATE THAT. YOU YOU'VE
GIVEN US SOBERING INFORMATION,
AND I THINK IF THE MEMBERS HAVE
READ PREVIOUS REPORTS, YOU'VE
WARNED US ABOUT THAT ABOUT THE
NEED FOR NOT OVEREXTENDING. I
MEAN, YOU EVEN ACTUALLY TALKED
ABOUT TAKING INTO ACCOUNT THE
INTEREST RATES AND INFLATION IN
TERMS OF OUR, UM IN TERMS OF OUR
BUDGETING, WHICH I THINK IS AN
ASSUMPTION THAT WE ALSO HAVE TO
TAKE INTO ACCOUNT HERE IS THAT
WHAT IS BEING PROPOSED DOES NOT
ASSUME A RECESSION. AND IN AND
IN IF INFLATION AND INTEREST
RATES SCALE WORSE THAN WE ALSO
ARE GOING TO HAVE EVEN MORE
DIFFICULT CHALLENGES IN THE
FUTURE. IS THAT IS THAT CORRECT?
YEAH, THAT'S CORRECT. JUST REAL
AND A FEW MORE QUESTIONS, AND I
WANT TO LEAVE TIME FROM MY
COLLEAGUES, UH, IN READING THE
GOVERNMENT. ROGER PROPOSAL
DEPARTMENT FINANCE. THERE'S
ABOUT $37.9 BILLION OF, UM. OF
ACTION TO ADDRESS THIS, BUT IN
MY READING, THERE'S ONLY ABOUT
1.2 BILLION AND ACTUAL ONGOING
SPENDING REDUCTIONS. THE REST
COMES FROM TAPPING THE RAIN, A
FUND ONE TIME BORROWING FROM
SPECIAL FUNDS DEFERRALS AND SOME
OTHER COST SHIFTS. IS THAT
CORRECT? YEAH, THAT'S ABOUT
RIGHT. AND SO IF THE REVENUE
NUMBERS WERE TO, UM, CONTINUE TO
DETERIORATE, WOULD THERE BE
PROPOSED? UH IT WOULD THERE BE
MORE SPENDING REDUCTIONS
PROPOSED. AND AGAIN LOOKING VERY
CLOSELY AND TRACKING THE CASH
AND REVENUE. BUT YES, IF THIS
BUDGET DEFICIT GROWS, THEN WE
WILL HAVE TO CLOSE IT WITH
ADDITIONAL SOLUTIONS. AND THEN,
UH, ON THE M C O TAX. UH THE
GOVERNOR'S PROPOSED INCREASING
THAT THAT TAX BY 1.5 BILLION
WHAT HAS HAVE YOU RECEIVED ANY
INPUT FROM STAKEHOLDERS IN TERMS
OF THAT PROPOSAL. DID YOU CAN
SHARE? WE CONTINUE TO HAVE
CONVERSATIONS. UM I DON'T HAVE
ANY PARTICULAR FEEDBACK. AT THIS
POINT. I THINK I JUST WOULD NOTE
THAT THE STRUCTURE OF THE TAX IS
EXACTLY THE SAME AS WAS INCLUDED
IN THE BUDGET ACT. UM WE ARE, WE
WILL HAVE TO GO BACK TO THE
FEDERAL GOVERNMENT TO ASK FOR
THAT ADDITIONAL 1.5 BILLION. UM
THAT WILL ALLOW US TO OFFSET
GENERAL FUND COSTS. UM, BUT IN
TERMS OF FEEDBACK, STAKEHOLDER
FEEDBACK. WE CONTINUE TO HAVE
THOSE CONVERSATIONS WITH BOTH
STAKEHOLDERS AND THE LEGISLATURE
. MY LAST QUESTION AND THIS IS
SOMETHING THAT'S IMPORTANT. I
THINK TO A LOT OF LEGISLATORS.
UM AND I WOULD, UH I WOULD ARGUE
THAT THERE WERE PROBABLY OTHER
DECISIONS THAT CAN BE MADE.
BESIDES THIS ONE, WHICH WHICH I
THINK THE LEGISLATURE WOULD
OPPOSE, WHICH IS DELAYING THE
IMPLEMENTATION OF THE
DEVELOPMENTALLY TO SERVICES RATE
REFORM. THIS WAS SOMETHING THAT
MEMBERS INCLUDE MYSELF HAVE HAVE
ADVOCATED FOR THE RIGHT STUDY
AND THE RATE INCREASE, AND NOW
PROVIDERS WOULD HAVE TO WAIT
EVEN LONGER. WHAT'S THE
RATIONALE AND DELAYING THE
IMPLEMENTATION? IS THERE OTHER
OTHER OTHER DECISIONS OR OTHER
CUTS OR OTHER DELAYS THAT HAVE
INVADE INSTEAD OF THIS ONE?
AGAIN I WOULD JUST HIGHLIGHT
THAT NONE OF THESE PROPOSALS
WERE MADE LIGHTLY OR EASILY. UM
I THINK THAT THE DDS DELAY WAS
BASICALLY BRINGING IT BACK TO
THE ORIGINAL IMPLEMENTATION
DEADLINE. SO PUSHING OUT ONE
MORE YEAR. UM, UNDERSTAND THE
COMMENT ABOUT PROVIDERS AND
EXPECTATIONS, BUT, UM, WE PUT A
LOT OF THINGS ON THE TABLE, AND
THIS IS ONE THAT PROVIDED A
SIZABLE SOLUTION. OKAY UM, THANK
YOU FOR THE ANSWERS. THANK YOU
TO L A. OH, I WOULD. I WOULD, UH
, ENCOURAGED THE MEMBERS TO SIT
DOWN WITH MR PADDICK. IF YOU
HAVEN'T ALREADY, UM, HE IS A
WEALTH OF INFORMATION AND TAKE
HIS ADVICE AND HIS
RECOMMENDATIONS. SERIOUSLY.
THANK YOU. THANK YOU VERY MUCH,
MR FANG. WE HAVE A NUMBER OF
MEMBERS WHO HAVE INDICATED AN
INTEREST IN JOINING THE
CONVERSATION. SO WE'RE GOING TO
GO WITH DR WEBBER, DR JACKSON
AND THEN MR PATTERSON. WELL GOOD
MORNING, EVERYONE. AND THANK
YOU. THANK YOU. CHAIR FOR THIS
COMMITTEE HEARING AND THANK YOU
ALL SO MUCH FOR BEING HERE. UM.
MY QUESTIONS. MY INITIAL
QUESTIONS. I'M REALLY JUST GOING
TO FOCUS AROUND THE ISSUE OF
HEALTH. UM AND SUB ONE AND THE
FACT THAT, UM, YOU KNOW, HERE IN
CALIFORNIA WITH SOME OF THE
THINGS THAT HAD PREVIOUSLY BEEN
DONE. KIND OF MADE A STATEMENT
THAT YOU KNOW HEALTHCARE. WE
CONSIDER HEALTHCARE HUMAN, RIGHT
? AND WE HAVE EXPANDED ACCESS TO
HEALTH CARE TO ESSENTIALLY
ALMOST EVERYONE HERE IN THE
STATE OF CALIFORNIA. UM,
HOWEVER, FOR YEARS, THIS STATE
HAS IGNORED THE FACT THAT OUR
MEDICAL REIMBURSEMENT RATES ARE
DISMAL. AND BECAUSE OF THAT. WE
HAVE ISSUES WITH. THE ABILITY
FOR PATIENTS TO ACTUALLY ACCESS
THE PROVIDERS THAT WE HAVE NOW
SAID THAT THEY CAN SEE AND SO I
HAVE A SERIES OF QUESTIONS BASED
ON THE PROPOSALS FOR THE
GOVERNOR. UM THE FIRST KIND OF
REVOLVE AROUND THE ISSUE OF
PROPOSITION 56 AND ALSO THE EMC
ATTACKS. SO UM, DO THE
REDUCTIONS TO THE PROPOSITION 56
FUNDED STATE INCREASE APPLIED TO
ALL MEDICAL PHYSICIANS. OR JUST
THOSE THAT ARE GOING TO BE
RECEIVING THE BUMP. SLIGHT BUMP
BECAUSE OF THE ATTACKS.
INTRODUCTORY DEPARTMENT OF
FINANCE. UM SO PROPOSITION 56 IS
DECLINING REVENUE SOURCE. UM THE
PAST FEW BUDGETS GENERAL FUND
HAS SUPPORTED PROPOSITION 56,
GIVEN THAT EXPENDITURES HAVE
EXCEEDED THE REVENUE COMING IN.
TO ANSWER YOUR QUESTION. UM THE
GOVERNOR'S BUDGET PROPOSED
PROPOSALS TO DECREASE PHYSICIAN
SERVICES BY 77 MILLION, HOWEVER,
UM, GIVEN THE INCREASED WITH THE
MCO TAX PHYSICIANS WILL STILL
SEE AN INCREASE OF, UM OF A
PROVIDER RATE. BUT WE KNOW THAT
THAT EMC ATTACKS ONLY APPLIES TO
A CERTAIN GROUP OF PHYSICIANS.
YOUR PRIMARY CARE YOUR O B G Y
INCREMENTAL HEALTH QUESTION. IS
THIS REDUCTION IN THE
PROPOSITION 56 FUNDING? DOES
THIS APPLY TO ALL PHYSICIANS, OR
ONLY THOSE THAT ARE RECEIVING
THE SLIGHT BUMP IN THE EMC
ATTACKS? SO THE 23. UH, CODES
THAT. PHYSICIANS RECEIVE A PROP
56 INCREASE. UH, FOR AND
PROPOSITION. 56 IS STILL BEING,
UM, PHYSICIAN SERVICES IS STILL
RECEIVING A $465 MILLION
INCREASE WITHIN PROP 56 THOSE
THOSE OR A SUBSET OF WHAT IS
BEING RECEIVED IN THEMSELVES. SO
IT'S ONLY APPLIED TO THOSE WHO
ARE GETTING A BUMP IN THE
ATTACKS. SO THE GOVERNOR'S
BUDGET DECREASE INCREASES THE UM
PHYSICIAN SERVICES RATE BY 77
MILLION. IT MAINTAINS 465
MILLION. AND PHYSICIAN SERVICES
ARE STILL SEEING AN INCREASE.
AND ITS RATE WITH THE PROBLEM
WITH THE M C O PAYMENT WITH THEM
. COR RATE INCREASE. NOT ALL
PHYSICIANS ARE GETTING A BUMP
BASED ON THE EMC. OH, RIGHT,
RIGHT. SO MY QUESTION IS THIS
REDUCTION IN SUPPLEMENTAL
FUNDING? MY PROPOSITION, 56. IS
THAT GOING TO BE APPLIED TO ALL
PHYSICIANS THAT GET THESE
FUNDINGS OR ONLY THOSE THAT ARE
ALSO GANG A BUMP IN THE EMBASSY
ATTACKS. AND IF YOU DON'T HAVE
THE ANSWER, YOU CAN GET BACK TO
ME, ABSOLUTELY MY COLLEAGUE ON
THE M C. 07. LARA AYALA
DEPARTMENT OF FINANCE. ALL OF
THE CODES CURRENTLY THAT CAN BE
BILLED BY THE PHYSICIANS AND
PROPER 56. ALL OF THOSE ARE
RECEIVING CEO TAX RATE INCREASES
, SO IT IMPACTS THE SAME
PROVIDERS. OKAY, THANK YOU. UM
AND SO HOW MUCH LESS WOULD THESE
PHYSICIANS RECEIVED BECAUSE OF
THIS REDUCTION IN THE PROP 56
REVENUE AND THEN DECISION NOT TO
BACKFILL IT WITH GENERAL FUNDS.
SO THE GOVERNOR'S BUDGET
PROPOSES TO DECREASE PHYSICIAN
SERVICES BY 77.1 MILLION.
HOWEVER. PHYSICIAN SERVICES ARE
STILL RECEIVING AN INCREASE ON
NET OVERALL. WITH EMC Ó
INCREASE MUCH. THE DEPARTMENT OF
FINANCE THE INCREASE FOR THE
PHYSICIAN SERVICES IS
APPROXIMATELY 1.5 BILLION
SPECIFICALLY TO THOSE THAT
PHYSICIANS CAN BILL FOR. AND HOW
MUCH LESS WILL PHYSICIANS
RECEIVED DUE TO THE PROPOSED
SHIFT OF 3 BILLION IN THE TAX
REVENUE THAT WAS ORIGINALLY
SLATED TO GO TO THEM, BUT NOW
WE'RE THE GOVERNOR'S PROPOSING
FOR IT TO GO BACK INTO THE
GENERAL FUND. THE DEPARTMENT OF
FINANCE OR THE ADMINISTRATION
WAS REQUIRED PURSUANT TO A B 118
TO SUBMIT A PLAN BASED ON
SPECIFIC PROVIDERS FOR THE
BUDGET ACT AGREEMENT, AND THAT
IS STILL THERE'S NO DECREASE IN
THE RATE AMOUNTS, UM, THAT WERE
AGREED UPON AT BUDGET ACT. SO
THERE THE ONLY CHANGE THAT THE
GOVERNOR'S BUDGET PROPOSES IS
AND IT UPDATES THE PROJECTED
TIMING OF CLAIMS AND ACTUAL
IMPLEMENTATION OF THE RATE
INCREASES BECAUSE MOST OF THEM
WILL TAKE EFFECT JANUARY 1 2025,
SO IT PROVIDES THOSE UPDATES.
AND UM, THAT IS WHY THE
ADDITIONAL 3.1 BILLION IN THE
EXPECTED FUND BALANCES AT THE
END OF CURRENT YEAR AND BUDGET
YEAR ARE NOW BEING PROPOSED AS
SUPPORTING THE MEDICAL PROGRAM.
SO WHAT YOU'RE TELLING ME IS
THAT THERE WILL BE NO REDUCTION
TO THE M C O TAX. INCREASE FOR
PHYSICIAN SALARY AT ALL. THAT'S
CORRECT AS YOU'RE AS YOU'RE
AWARE OF THE ADMINISTRATION
COMMITTED TO ONGOING RATE
INCREASES, AND THOSE ARE STILL
BEING IMPLEMENTED, AS AGREED
UPON ON THE DAY AGREED UPON AND
ACCORDING TO THE CATEGORIES
PURSUANT TO THE BUDGET ACT, AND
SO THERE'S EXTRA 3 BILLION IS
COMING FROM WHERE IT'S COMING
FROM AT BUDGET ACT. THERE WAS NO
IT HADN'T BEEN, UM I GUESS LIKE
REFINED AND THEN IN THE TIMING
OF THE ACTUAL IMPLEMENTATION OF
THE RATE INCREASES AND NOW BASED
ON UH THE ADDITIONAL SHORTFALL
THAT WE'RE FACING AND UPDATES IN
WHEN IN PROJECTIONS NOW THAT
WE'VE THE ADMINISTRATION HAD
TIME TO UPDATE ACTUAL TIMING OF
PROJECT OF, UM, PAYMENTS WE ARE
USING PROPOSING TO USE THOSE
FUND BALANCES. BUT AGAIN, IT
DOESN'T CHANGE. THE ONLY THING
THAT THE GOVERNMENT'S BUDGET IS
PROPOSING TO CHANGE IS THE
BEHAVIOR HEALTH PEACE
IMPLEMENTATION THAT IS BEING
PROPOSED SIX MONTHS LATER, BUT
EVERYTHING ELSE IS BEING
IMPLEMENTED AS ACCORDING TO THE
BUDGET ACT AGREEMENT. INCLUDING
THE TIME FRAME WHERE THE
TIMEFRAME IS SHORTER. THE TIME
FRAME OF THE AMOUNT THAT THE M C
O TAX PAYMENTS WOULD BE OR THE
INCREASE WOULD BE AVAILABLE.
YOU'RE SAYING THAT SHORTER GIVEN
THE GOVERNOR'S BUDGET IS
PROPOSING THE USE OF THE BALANCE
THE 3.1 BILLION IN SUPPORTING
THE MEDICAL PROGRAM. WE ESTIMATE
THAT IT WILL REDUCE THE M C O
TAX FUNDED RATE INCREASES BY
ABOUT ONE YEAR. OKAY SO THERE
WILL BE A DECREASE BECAUSE THEY
WON'T BE GETTING IT AS LONG
TAXES. UM FOR HOW LONG? THE M C
O TAX CAN FUND IT? YES. OKAY SO
THERE IS THAT DECREASE? UM NOW
THERE WAS A REQUEST FOR EARLY
ACTION. UM AND I THINK SOMEONE
ELSE HAD MENTIONED THE FACT THAT
WE WOULD NEED TO GO TO THE
FEDERAL GOVERNMENT TO, UM,
REQUEST A BUMP IN RM CEO TAX. IS
THERE A SPECIFIC DEADLINE THAT
WE WOULD NEED TO REACH OUT TO
THE FEDERAL GOVERNMENT? ERIK LEE
WITH THE DEPARTMENT OF FINANCE
THE DEADLINE THAT WE HAVE IS,
UM, THE MIDDLE OF MARCH TO HAVE
APPROVAL FROM THE LEGISLATURE TO
GO BACK TO THE FEDS ON THAT, SO
YOU WOULD NEED THIS EARLY. THE
ACTION BY THE MIDDLE OF MARCH.
YES THAT'S RIGHT. AND I WOULD
JUST ADD THAT IN REGARDS TO YOUR
QUESTIONING AND TIMING. UM, THE
AS AS MY COLLEAGUE MENTIONED, WE
HAVE COMMITTED TO THOSE ONGOING
HIGHER RATES AND THE IDEA OF
USING THE 3.1 BILLION THAT WAS
SET IN THE OUT YEARS AND PULLING
IT FORWARD TO CREATE GENERAL
FLYNN OFFSET AND AS PART OF A
SOLUTION FOR, UM, THE BUDGET
YEAR. UM, THAT COMMITMENT
REMAINS, AND THE IDEA IS THAT
THERE WOULD BE A RENEWED ATTACKS
IN THE FUTURE, UM, POTENTIALLY
LOOKING AT OTHER FUND SOURCES,
BUT THE COMMITMENT REMAINS TO
MAINTAIN THOSE PROVIDER RATES.
I'M SURE YOU CAN SEE THE CONCERN
FROM THOSE WITHIN THE HEALTH
SPACE. THE FACT THAT, UM THIS
WAS SOMETHING THAT HAD BEEN
NEGOTIATED, UM, WITH THE ALREADY
UNDERSTANDING THAT WE DON'T PAY
OUR PROVIDERS ENOUGH, THAT'S THE
OUR MEDICAL PATIENTS, WHICH IS
ONE OF THE REASONS WHY IT IS SO
CHALLENGING WHERE PATIENTS TO
GET TO PROVIDERS, ESPECIALLY
WITHIN THE BEHAVIORAL HEALTHCARE
SPACE. UM AND SO NOW WE SEE
REDUCTIONS AND SHIFTS. UM, IT IS
A CONCERN. ANOTHER QUESTION
DEALS WITH WORKFORCE SO THE
GOVERNOR'S BUDGET PROPOSAL
PROPOSES TO DELAY SIGNIFICANT
INVESTMENTS IN HEALTH CARE
WORKFORCE PROGRAMS, PARTICULARLY
AND BEHAVIORAL HEALTH. UM HOW
ARE WE SUPPOSED TO EFFECTIVELY
ADDRESS OUR BEHAVIORAL HEALTH
ISSUES HERE IN THE STATE? WHEN
WE KNOW RIGHT NOW OUR WORKFORCE
IS INADEQUATE. AND YET WE'RE
PROPOSING TO NOT INCREASE IT,
BUT DECREASE OUR ABILITY TO
ADDRESS THOSE ISSUES. MATT
ENGELER DEPARTMENT OF FINANCE.
THANK YOU FOR THE QUESTION. UM
IN THE WORKFORCE SPACE, THE
STATE HAS COMMITTED
APPROXIMATELY A BILLION DOLLARS.
OF GENERAL FUND AND MENTAL
HEALTH SERVICES FUNDS OVER A
MULTIYEAR PACKAGE. AND
UNFORTUNATELY DUE TO THE BUDGET
SITUATION AND RESOURCE
AVAILABILITY AVAILABILITY IN
BOTH OF THOSE AREAS WE'VE HAD TO
PUSH SOME OF THE FUNDS THAT WERE
PREVIOUSLY PLANNED BACK IN THE
SCHEDULE. AND SO THAT'S WHAT
WE'VE PROPOSED IN THE BUDGET. UM
AND I WOULD NOTE THAT THESE
PROGRAMS, YOU KNOW, COMPLIMENT.
PASSED TO THE WORKFORCE, BUT BY
NO MEANS TO THESE PROVIDE, YOU
KNOW THE ENTIRE WORKFORCE. I
NEEDED FOR THESE VARIOUS AREAS.
SO FOR EXAMPLE, I MEAN THE
EDUCATION SYSTEM AND JUST THE
LABOR MARKET. YOU KNOW, HAS
OTHER MEANS FOR PROVIDING
WORKFORCE. WHICH WE ALREADY KNOW
IS INADEQUATE. UM. SO YOU KNOW,
I WILL JUST I KNOW THIS IS A
PROPOSAL. I KNOW THAT'S A LOT
AND I REALLY APPRECIATE UM, THE
GOVERNOR'S TEAM REALLY
APPRECIATE THE L A. OH AND I
KNOW THERE WILL BE A LOT MORE
DISCUSSIONS IN THE FUTURE. I
JUST WANT TO REMIND ALL OF US
AND WE TALKED ABOUT THIS, UM
WITHIN OUR OWN CAUCUS. THAT WHEN
WE ARE WHEN OUR BODIES ARE
STRESSED, RIGHT? UM OUR BODY HAS
THE ABILITY TO PRESERVE WHAT IS
MOST IMPORTANT AND THAT IS OUR
HEART. AND THAT IS OUR HEAD. A
LOT OF THE OTHER FUNCTIONS KIND
OF GO BY THE WAYSIDE BECAUSE OUR
BODY IS STRESSED. OUR STATE IS
GOING INTO THAT SITUATION AT
THIS POINT. AND WE HAVE TO
DETERMINE WHAT WE AS A STATE
DETERMINED IS MOST CRITICAL FOR
US TO BE ABLE TO SUSTAIN AND
GROW IN THE FUTURE. AND THAT IS
OFTEN THE HEALTH. AND THE
WELFARE OF THE RESIDENTS OF THIS
GREAT STATE. AND SO AS YOU'RE
LOOKING AT THINGS TO WEAR, THERE
SHOULD BE REDUCTIONS WHERE THERE
SHOULD BE CUTS, PERHAPS LOOKING
AT HEALTH AND AREAS OF HUMAN
SERVICES SHOULD NOT BE THE FIRST
AREAS. UM IN FACT, THOSE SHOULD
BE THE AREAS THAT HAVE THE LEAST
AMOUNT OF CUTS. BECAUSE THAT IS
REALLY WHAT TAKES CARE OF
EVERYONE THROUGHOUT THIS STATE.
AND SO I JUST REALLY ASK FOR
EVERYONE TO KIND OF KEEP THAT IN
MIND AS WE'RE LOOKING TO SEE
WHAT IS IT THAT WE CAN HOLD OFF
ON? WHAT IS IT THAT WE SHOULD
ACTUALLY CONTINUE TO SUPPORT AND
UPHOLD, AND IT IS REALLY
ENSURING THAT OUR RESIDENTS HAVE
THE ABILITY TO ACCESS HEALTHCARE
AND HEALTHCARE PROVIDERS. IT IS
THE ABILITY FOR OUR RESIDENTS TO
BE ABLE TO HAVE HOUSING AND
PROGRAMS THAT ARE ASSOCIATED
WITH THAT, AND GOOD EDUCATION.
UM AND THAT THERE ARE SOME OTHER
THINGS THAT WE FUND THAT ARE
IMPORTANT, BUT MAYBE NOT AS
IMPORTANT, UM OF MAKING SURE
THAT EVERYONE IS SAFE AND
EDUCATED AND HEALTHY IN THIS
STATE, SO THANK YOU FOR YOUR
WORK, AND I LOOK FORWARD TO US
CONTINUING. UH TO FIGURE OUT
WHAT WE CAN DO FOR OUR RESIDENTS
DURING THIS TIME. THANK YOU.
THANK YOU VERY MUCH, DOCTOR
WEBER AND, UH, APPRECIATE THAT
THAT DIAGNOSIS. I THINK IT'S
SPOT ON IN A LOT OF RESPECTS.
WE'RE NOW GOING TO GO TO DR
JACKSON. AND THEN AFTER THAT, MR
PATTERSON THANK YOU VERY MUCH,
MR CHAIR. YOU KNOW, IT'S A
TRAINED SOCIAL WORKER. I CAN'T
EXPRESS THE CRITICAL NEED. TO
LEARN FROM THE MISTAKES THAT THE
STATE AND BAIT DURING THE GREAT
RECESSION. UM AND THE LESSONS WE
MUST NOT FORGET DURING THE
PANDEMIC. AND THAT IS THE
IMPORTANT PRIORITY. THE
LEGISLATURE AND THE
MINISTRATIONS MUST COMMIT TO
WHICH IS TO ENSURE THE BUDGET
PROMOTES THE LONG TERM STABILITY
OF OUR POPULATION. THIS INCLUDES
THE PRESERVATION OF COW WORKS,
CAL FRESH S S I AND SSP
BENEFITS. NOW THERE'S NO DOUBT
THAT BIG AND HARD DECISIONS MUST
BE MADE. BUT THEY MUST ALSO BE
WISE. AND THIS BUDGET MUST
ENSURE THAT CUTS OR DELAYS THAT
ARE MADE WILL NOT CREATE
INSTABILITY AMONG OUR MOST
VULNERABLE POPULATIONS. WE MUST
KEEP OUR POPULATION OUT OF
CRISIS MODE AND FIND WAYS TO GET
MORE. OF OUR POPULATION OUT OF
CRISIS. BECAUSE WE KNOW THAT IT
ACTUALLY COSTS MORE IN THE LONG
TERM TO GET PEOPLE OUT OF CRISIS
THAN IT IS TO KEEP THEM STABLE.
AH SO THE MOST PRESSING QUESTION
UH, THAT I WILL BE ASKING, UM,
IS THERE ANY CUT DELAY OR
REVISION? PROMOTE THE LONG TERM
STABILITY OR INSTABILITY OF OUR
POPULATION. AH THAT'S WHY I'M
GRAVELY CONCERNED AND VEHEMENTLY
OPPOSED TO THE FOLLOWING
PROPOSED DECISIONS IN THE BUDGET
PROPOSAL. OF COURSE, UNLESS
THEY'VE BEEN PROVEN TO BE
INEFFECTIVE. OR WILL NOT RISK
THE STABILITY OF THE INTENDED
POPULATION. UM THE FIRST I WANT
TO TALK ABOUT ARE THE COW WORKS,
UM, PROPOSED ELIMINATIONS. OR
DELAYS. UM UH, SPECIFICALLY THE
ELIMINATION OF THE FAMILY THAT
STATE STABILIZATION SERVICES AH
SUBSIDIZED EMPLOYMENT PROGRAMS,
INTENSIVE CARE HOURS AND AN
ONGOING REDUCTION TO COUNTY
ADMINISTRATION. UH DEPARTMENT OF
FINANCE. DO YOU BELIEVE THAT
THIS WILL PROMOTE THE STABILITY
OR INSTABILITY OF OUR
POPULATION? THANK YOU, DR
JACKSON AND APPRECIATE YOUR
PERSPECTIVE AND WHERE YOU'RE
COMING FROM, UM, AS I STATED
BEFORE, NONE OF THESE CUTS. NONE
OF THESE REDUCTIONS, UM, WERE
MADE EASILY. UM, WE HAVE
PROPOSED PACKAGES TO THE
LEGISLATURE FOR CONSIDERATION.
UNDERSTAND UH, WHERE YOU'RE
COMING FROM ON THIS, UM, AND
AGAIN HAD TO SOLVE FOR $37.9
BILLION PROBLEM AND WE'RE
LOOKING UM AT ALL IN ALL AREAS,
UM IN IN REGARDS TO THIS
PARTICULAR CUT ALSO UNDERSTAND,
UM, THE INTENDED POPULATION AND
THE RECIPIENTS. UM AND WANT TO
CONTINUE TO WORK WITH YOU ON
ALTERNATIVES. IF THIS IS NOT
SOMETHING THAT THE LEGISLATURE
AGREES TO. UM SO THERE'S THIS
PROMOTE THE STABILITY OR
INSTABILITY OF OUR POPULATION. I
THINK THAT IS A BIT OF A TRICK
QUESTION. IT IS NOT SOMETHING
THAT WE WOULD WANT TO DO. NO, I
DON'T DO TRICK QUESTIONS. RIGHT.
THAT'S NOT MY HOW I ROLL. THE
QUESTION IS. DOES POPULATE,
THOUGH THE SERVICES NOW IT COULD
BE A NO. AND I'M OKAY WITH THAT.
UM AND WE'RE DIVING MORE EVEN
DEEPER INTO THE WHAT THESE
PROGRAMS DO. HOW EFFECTIVE THEY
ARE RIGHT. I'M TRYING TO GET A
SENSE FROM, UH, DEPARTMENT OF
FINANCE. ON WHETHER IT MEETS THE
TEST OF KEEPING OUR POPULATION
STABLE. OR WILL IT PROMOTE
INSTABILITY, WHICH WILL ACTUALLY
DRIVE UP COSTS IN THE LONG TERM?
AND IF YOU CAN'T ANSWER THAT, IS
THERE ANYONE ELSE THAT YOU HAVE
THAT MIGHT BE ABLE TO ANSWER
THAT. WELL, I DO BELIEVE THAT
THERE ARE PROPOSALS ON THE
TABLE. THAT WILL HAVE IMPACT
NEGATIVE IMPACT ON CALIFORNIANS.
AND THIS IS PART OF THE REASON
WHY THE GOVERNOR WANTS TO HAVE
DISCUSSIONS ON HAVING LARGER
RESERVES SO THAT WHEN WE HAVE
GOOD TIMES WE CAN SOCK AWAY THAT
THOSE DOLLARS TO ADDRESS ISSUES
JUST AS WE ARE ADDRESSING NOW
THAT WE DON'T CUT OUR CORE
SAFETY NET PROGRAMS.
UNFORTUNATELY WE HAVE HAD WE
HAVE A LARGE ENOUGH DEFICIT THAT
THERE ARE PROPOSALS ON THE
TABLE. THAT ARE NEGATIVELY
IMPACTING CALIFORNIANS AND WE,
UM, ARE TRYING TO MITIGATE
THOSE. AGAIN. IF THIS IS A
PROPOSAL THAT LEGISLATURES DOES
NOT AGREE WITH. WE ARE
INTERESTED IN IN FEEDBACK AND
INTERESTED IN ALTERNATIVES.
THANK YOU FOR THAT, UM, ALSO IN
THE CHILD WELFARE SPACE, WE HAVE
THE FAMILY URGENT RESPONSE
SYSTEM THAT WE HAVE CONCERNS
ABOUT. THE HOUSING SUPPLEMENTAL
FOR FOSTER YOUTH AND SUPERVISED
INDEPENDENT LIVING PROGRAM.
CHILD WELFARE SERVICES PUBLIC
HEALTH NURSING PROGRAM. UM AND
OTHERS. UM I WOULD ALSO NOTE
THAT EVEN THOUGH WE COMPLETELY
DEPLETE THE SAFETY NET RESERVE,
WHICH WAS INTENDED TO PROVIDE
MORE RESOURCES FOR PROGRAMS THAT
ARE EXPECTED TO EXPAND AND
ECONOMIC DOWNTURNS DUE TO THE
BASIC FOOD, SHELTER AND
HEALTHCARE SERVICES. UM,
OBVIOUSLY, EVEN THOUGH WE
COMPLETELY ELIMINATE THAT WE'RE
STILL MAKING CUTS TO THE SOCIAL
SAFETY NET PROGRAMS, AND SO I
WANT TO MAKE SURE THAT WE HAVE
CONTINUED DISCUSSION. UM, ABOUT
THAT. ALSO I'M ACTUALLY
CONCERNED ABOUT THE WITHDRAWING
OF FUNDS FROM THE IMMIGRATION
PROGRAMS. UM AND THAT IS A
COURSE JUST SAY AGAINST AS OUR
LOCAL GOVERNMENTS AND MANY OF
WHICH ALONG THE BORDER HAVE
DECLARED A HUMAN, UH,
HUMANITARIAN CRISIS. AS THEY'RE
FACING ISSUES LIKE HOMELESSNESS
AND OTHER THINGS. UM IT IS MY
FEAR THAT WITHOUT BEING ABLE TO
PROVIDE ADDITIONAL SERVICES FOR
THOSE, UH, IMMIGRANTS THAT ARE
CROSSING THE BORDER AND MANY OF
WHICH CALIFORNIA IS NOT THEIR
FINAL DESTINATION, MANY OF WHICH
ARE GOING OUTSIDE OF CALIFORNIA.
I THINK, UH, BY PRESERVING AS
MUCH OF THIS FUNDING AS POSSIBLE
IT WILL ALLEVIATE. LOCAL
GOVERNMENTS FROM BEARING THE
BRUNT THAT WE'RE SEEING. UM
ACROSS THIS NATION, AND I WOULD
ALSO LIKE TO ASSOCIATE UM MY
COMMENTS WITH THE BUDGET VICE
CHAIR IN TERMS OF THE DELAYS OF
THE DEVELOPMENTAL SERVICES. UM I
THINK THAT IF WE CAN FIND A WAY
TO HAVE WE CAN'T FULLY IMPLEMENT
THE NEXT PHASE, UM, FINDING WAYS
TO CONTINUE TO MAKE PROGRESS
BECAUSE AGAIN IF WE DON'T HAVE
THE WORKFORCE THAT WE NEED WE
CANNOT HAVE THE MCDONALD'S
PAYING MORE THAN THESE PEOPLE
WHO ARE DOING PROVIDING THIS
CRITICAL NEED. UM AND IF WE
DON'T HAVE THE WORKFORCE AND
THERE'S ANOTHER POPULATION THAT
CAN GO INTO CRISIS MODE. UM MY
LAST ONE IS ANGER IN TERMS,
QUESTIONS AND RETURNS OF THE
ANTI HATE FUNDS. HAVE THOSE ONES
BEEN COMPLETELY? UH, SPENT YET.
AH THIS IS SEPARATE FROM THE
SECURITY, RIGHT? UM I BELIEVE
MUCH OF THE FUNDING HAS BEEN
SPENT IN THE PRIOR YEAR. WE HAVE
SOME IN THE CURRENT YEAR THAT IS
LIKELY NOT ALL SPENT, BUT THAT
WAS OVER A MULTI THINK IT WAS
150 MILLION OVER THREE YEARS.
AND SO SOME OF THAT SOME OF
THOSE DOLLARS HAVE GONE OUT. I
DON'T BELIEVE ALL THOSE DOLLARS
HAVE GOT OUT. I CAN FOLLOW UP
WITH EXACTLY THAT NUMBER. I
APPRECIATE IT. UM SO AGAIN. I
JUST WANNA LOOK FORWARD TO
WORKING CLOSELY WITH MY
COLLEAGUES IN ADMINISTRATION
AGAIN. I THINK THERE'S SOME
WISER. UH CUTS THAT CAN BE MADE
NO DOUBT. WE HAVE TO MAKE SOME
CUTS. I'M ACTUALLY OF THE
OPINION. THAT WE NEED TO MAKE
THE DEEPEST CUTS NOW SO THAT WE
CAN BEGIN TO BE ON AN UPWARD
PROJECTION IN THE FUTURE. BUT I
THINK THAT OVERALL WE NEED TO
THERE'S STILL SOME TO BE QUITE
FRANKLY, I THINK THERE'S STILL
SOME SHINY STUFF IN THE BUDGET.
THAT MAY NOT BE ANY IN, UH,
OVERALL PRIORITY IN ORDER TO
KEEP OUR POPULATION STABLE. SO
THANK YOU VERY MUCH, MR CHAIR.
THANK YOU VERY MUCH. DOCTOR
JACKSON. WE'RE NOW GOING TO TURN
TO ASSEMBLYMEMBER'S PATTERSON.
THANK YOU, MR CHAIRMAN.
APPRECIATE UH, EARLIER IN YOUR
PRESENTATION, FINANCE DEPARTMENT
YOU REFERENCE TO THE DELAYS OF
THE $250 MILLION TO FRESNO,
CALIFORNIA. PRIOR TO BEING
ELECTED TO THE LEGISLATURE. I
WAS THE TWO TERM MAYOR OF THE
CITY OF FRESNO, AND FOR THE LAST
11 YEARS I HAVE BEEN
REPRESENTING FRESNO IN THAT
REGION HERE. NEEDLESS TO SAY,
THE $250 MILLION ANNOUNCEMENT
WAS RECEIVED WITH A GREAT DEAL
OF APPRECIATION AND JOY AND WAS
PART OF SIGNIFICANT AND SERIOUS
PLANNING THAT THE CURRENT
ADMINISTRATION HAS BEEN DOING IN
FRESNO. UM. WHEN THE
ANNOUNCEMENT OF THE DELAY, UH,
CAME OUT. I MEAN, IT WAS KIND OF
A KICK IN THE GUT TO US. FOR
OBVIOUS REASONS. UM BUT IN
DECIDING ON DELAY. WE ALSO IN
THIS HEARING HAVE NOW BEEN MADE
AWARE THAT IN THOSE OUT YEARS
WHERE THE $250 MILLION WAS
DELAYED. WE STILL ARE LOOKING AT
$30 BILLION DEFICITS. SO I NEED
TO ASK SHOULD THE CITY OF FRESNO
BEE CONTINUING TO PLAN AND COUNT
ON AND MANAGE A DELAY. OR HOW
SERIOUS IS IT? THAT THAT DELAY.
UH, WILL TURN IN TO SIMPLY A
CUT. THANK YOU, MR PATTERSON. UM
SO THIS PROPOSAL IS A DELAY AND
NOT A REDUCTION. IT IS OUR
INTENT TO CONTINUE TO FUND IT AT
50 MILLION IN THE CURRENT YEAR
AND MOVE OUT THE 100 MILLION
THAT WAS SCHEDULED FOR THIS YEAR
AND NEXT YEAR, TOO. LATER YEARS.
UM AND THAT IS THAT IS OUR
PROPOSAL. A DELAY, NOT A
REDUCTION, SO IT IS IN A
DIFFERENT CATEGORY. THE
LEGISLATIVE ANALYST. TALKED
ABOUT THE POSSIBILITY THAT THESE
DELAYS CAN TURN INTO CUTS. SO I
MEAN, ARE ARE WE SERIOUSLY? I
MEAN, THAT'S THE CONCERN. WE
HAVE. THAT IT DOESN'T SOUND LIKE
THE DEFICITS ARE GETTING MUCH
BETTER. AND SO WE'RE GOING TO BE
HERE IN THE YEAR THAT THAT 100
MILLION WAS DELAYED. HOW DOES SO
WHAT? WHAT I'M TRYING TO DO IS
TO IS TO UNDERSTAND WHAT I CAN
PICK BACK. TO THE MAYOR, FRESNO
AND TO THOSE THAT HAVE BEEN
PLANNING. UH IS IT WISE FOR US
TO CONSIDER THAT THIS MONEY IS
IN JEOPARDY? AND I DO THINK IT'S
A GOOD QUESTION. I THINK THAT WE
HAVE DISCUSSED OUT YOUR ISSUES.
I THINK THE PLAN AS IT IS
CURRENTLY IS A DELAY TO THIS
PARTICULAR PROPOSAL. THERE ARE
MANY OTHER DELAYS IN HERE, AND I
THINK WE HAVE TO CONSIDER
HOLISTICALLY THE FULL BUDGET. UM
AGAIN. THIS IS THIS IS
DEFINITELY THE PROPOSAL, AS IT
IS, IS CURRENTLY A DELAY. WE DO
NEED TO HAVE FURTHER DISCUSSIONS
AND ALL OF THE DELAYS IN REGARDS
TO OUT YEARS AND I THINK THAT IS
WHAT THE SPRING IS FOR, AND WE
LOOK FORWARD TO HAVING THOSE
CONVERSATIONS. OTHER CITIES.
THAT WE'RE ANTICIPATING LARGE
AMOUNTS OF STATE HELP. ARE THEY
ALSO IN A DELAY? UM THIS
PROPOSAL IS ONLY IMPACTING THE
CITY OF FRESNO. THAT IN FRESNO
WAS THAT LEADS ME TO THE
QUESTION. WHY CHOOSE FRESNO?
THIS PROPOSAL WAS ONLY FOR
FRESNO IN THE CURRENT BUDGET, SO
THERE WERE NO OTHER CITIES THAT
WERE RECEIVING SUCH SUCH A SUM.
AGAIN. I'M GONNA WANTED. ASK
MAYBE THE LEGISLATIVE ANALYST.
YEAH IT FEELS TO ME LIKE FRESNO
IS AGAIN. SORT OF BEING PICKED.
ON AND OVERLOOKED. WE APPRECIATE
THE FACT THAT IT WAS THE 250
MILLION WAS PUT FORWARD. BUT WE
FEEL LIKE IT'S BEEN PULLED BACK.
UH HUH. A DELAY OVER TIME IS AS
GOOD AS CUT UNTIL. THE DELAY IS
ACTUALLY IN THE NEXT FISCAL
YEAR. UH WE CAN COUNT ON IT. SO
I'M TRYING TO ASSESS UH AND LOOK
, THE CURRENT MAYOR AND I HAVE
BEEN A LONG TIME FRIENDS. HE WAS
MY POLICE CHIEF WHEN I WAS
MAYOR. I WEAR MAYORS HAT. FOR
FRESNO AS WELL HAVE BEEN THERE
30 YEARS. UM SO WHAT? I'M I'M
TRYING TO DETERMINE. THE
LIKELIHOOD. WITH $30 BILLION
DEFICITS IN THE NEXT THREE
FISCAL YEARS. THE LIKELIHOOD
THAT THIS DELAY WILL TURN INTO A
CUT. OR WILL THE DELAY BE WILL
DELAY IT THAT THAT FISCAL YEAR
WILL DELAY IT ANOTHER FISCAL, SO
REGULAR DELAY IS ESSENTIALLY A
CUT. SO WHAT? WHAT SHOULD OUR
ADMINISTRATION BE DOING. I MEAN,
DID. CAN I JUST ALSO REWIND A
LITTLE BIT? UM, THIS IS
INITIALLY THE PACKAGE WAS 300.
THE PROPOSAL OF THE ACTUAL OF
THE BUDGET ALLOCATION WAS 300
MILLION FOR THE LOCAL GOVERNMENT
SUSTAINABILITY FUND, AND THAT
WAS TWO YEARS AGO LAST YEAR. UM,
THE PROPOSAL WAS TO MOVE 250 OF
THAT 300 MILLION TO THE CITY OF
FRESNO. SO I WOULD JUST LIKE TO
HIGHLIGHT THE FACT THAT THE
GOVERNOR WAS VERY SUPPORTIVE OF
PROVIDING FUNDS TO THE CITY OF
FRESNO. IN UM ANTICIPATION OF
INFRASTRUCTURE PROJECTS
UNDERSTAND THAT WERE APPRECIATED
, BUT BUT THERE ARE ALSO JUST
THERE'S ADDITIONAL FUNDING THAT,
UM, IS THE, UM SURF JOBS. FIRST
THAT'S AVAILABLE. THERE'S OTHER
FUNDING IN THE BUDGET FOR THE
CITY OF FRESNO AND OTHER CITIES
SIMILAR WHO ARE EXPERIENCING, UM
OR GOING THROUGH PROJECT. AND
INFRASTRUCTURE DEVELOPMENT TO
YOUR POINT ON THE DELAY. OF
COURSE I'LL IT IS SOMETHING THAT
WILL HAVE TO BE CONSIDERED, UM I
JUST WANT TO HIGHLIGHT AGAIN. IT
IS CURRENTLY A DELAY ON THE
TABLE. PLEASE I'M TRYING TO
ASSESS GIVEN THE 30 BILLION IN
THE OUT YEARS. WE JUST HEARD
THAT THAT'S AN ACTUAL NUMBER.
WHAT THREE UPCOMING? BUDGET
CYCLES. THAT SOUNDS TO ME LIKE
WE'RE BEING SET UP FOR A CUT.
AND I THINK THAT IT'S IMPORTANT
FOR THE CITY OF FRESNO, THE
ADMINISTRATION AND OTHERS. TO
PLAN CAUTIOUSLY. BECAUSE THE
IT'S GETTING TURNED OFF. AND
THAT'S TROUBLING. MR PATTERSON,
UH, CERTAINLY UNDERSTAND WHERE
YOU'RE COMING FROM. I THINK ONE
THING I WOULD JUST REMIND YOU IS
WHAT THE CHAIR SAID AT THE
BEGINNING. THERE'S SO MUCH
UNCERTAINTY. THE EACH YEAR THAT
WE GO OUT THERE IS GREATER
UNCERTAINTY. IT GROWS SO THINGS
COULD BE BETTER. BUT THEY COULD
ALSO BE WORSE THAN WHAT WE'RE
PROJECTING CURRENTLY. AND
UNFORTUNATELY MY READ OF THIS IS
THAT YOU CANNOT BE GIVEN ANY
ASSURANCE FOR SURE ON THESE
DOORWAYS TO ME NOT TO SPEAK FOR
MY COLLEAGUE. I THINK YOU KNOW
BY PUTTING IT AS A DELAY INSTEAD
OF A REDUCTION IN ITS SIGNALS TO
ME THAT IT'S UH, IN THE
ADMINISTRATION HAS SOME, UM
ELEMENT OF PRIORITY RELATIVE TO
OTHER OTHER ITEMS, BUT IT WILL
BE UP TO THE LEGISLATURE IN THAT
YEAR WHETHER OR NOT TO FUND IT.
AND SO IT YOU KNOW, IS A
QUESTION AND CURRENTLY, THE
CURRENT ESTIMATES THAT THE
ADMINISTRATION AND OUR OFFICE
HAVE UH, IS NOT AFFORDABLE. WE
HAVE THE DEFICITS MEAN IT'S NOT
AFFORDABLE, SO IT'S A QUESTION
OF WHAT PRIORITIES ARE
MAINTAINED AND WHAT OTHER ITEMS
ARE EXCLUDED OR OTHER OPTIONS,
WHICH COULD INCLUDE OTHER
ACTIONS LIKE TAX INCREASES, OR,
UM, CUTS ELSEWHERE. WHERE
FURTHER DELAYS BUT YOU KNOW
THAT'S THE RANGE OF OPTIONS.
UNFORTUNATELY ALL HAVE, UH ALL
OF THESE OPTIONS HAVE DOWNSIDES
TO THEM FROM STAKEHOLDERS TO THE
ECONOMY. UH TO THE PROGRAMS AND
THE PEOPLE THAT ADMINISTER THEM.
SO UH, YOU KNOW, THERE'S NO EASY
ANSWER HERE, BUT I MEAN, THAT'S
THE WAY I WOULD READ IT IS THAT
THERE CANNOT REALLY BE AN
ABSOLUTE ASSURANCE PROVIDED TO
YOU. AT NIGHT. APPRECIATE THAT.
THE CANDOR IN THAT, UM AND I
THINK THAT GIVEN WHAT WE'RE
HEARING HERE TODAY THAT THERE
ARE OUT YOUR DEFICITS IN THE $30
BILLION RANGE. UM I GET
CONCERNED THAT THE LEG BECOMES
MORE DELAY MORE DELAY UNTIL IT
BECOMES A CUT, AND THAT WOULD BE
VERY TROUBLING. APPRECIATE. WE
APPRECIATE IT THAT CAME UH, AT A
GOOD TIME, AND WE WERE IN THE
MIDST OF HUGE PLANNING. IN
FRESNO. ME I PEOPLE NEED TO
UNDERSTAND FRESNO IS REALLY ON
THE GO. I MEAN, OUR AIRPORT IS
BOOMING. WE'RE IMPROVING IT. OUR
COMMUNITY COLLEGES ARE BUILDING
CAMPUSES IN AREAS THAT HAVE
NEEDED IT FOR A LONG PERIOD OF
TIME. ARZU IS BECOMING A
DESTINATION. THAT'S FRESNO,
CALIFORNIA, WHERE THE FIFTH
LARGEST CITY IN THE STATE OF
CALIFORNIA UM AND, UH I THINK
WE'RE 600,000. WE ARE ONE OF THE
FASTEST GROWING IN CALIFORNIA.
WE HAVE TO LOOK FORWARD. WE HAVE
TO LINE OUT RESOURCES AND THEN
WE HAVE TO BE ABLE TO COUNT ON
THOSE RESOURCES TO COME. SO I
APPRECIATE THE UNCERTAINTY, I
THINK THAT. I'LL BE HAVING
CONVERSATIONS WITH MR DYER. AND
WE'LL WE'LL, WE'LL SEE WHAT THE
CITY OF FRESNO NEEDS TO DO.
ANTICIPATING THE REAL POTENTIAL
THAT MAYBE THESE DELAYS WILL BE
EVEN BE FURTHER OUT. AND
POSSIBLY EVEN CUT. YES. IF THE
IF THE ECONOMY OF THE OF THE
STATE DOESN'T REBOUND, THE WAY
YOU'RE PROPOSING IT TO DO SO
UNCERTAINTY, UM THAT'S THAT'S A
HARD THING TO PLAN FOR. UM WE
APPRECIATE THAT IT'S THERE, BUT
WE FEEL LIKE IT'S TEETERING ON A
NOT JUST A DELAY, BUT OKAY?
THANK YOU VERY MUCH, MR
PATTERSON. WE ARE NOW GOING TO
GO TO ASSEMBLYMEMBER'S ALVAREZ
AND THEN MR MURATSUCHI. THANK
YOU, MR CHAIR. UM I ONLY HAVE
THREE QUESTIONS WHICH, UM, YOU
ALL MIGHT NOT BE PREPARED TO
ANSWER TODAY, BUT CERTAINLY WILL
BE ASKED AGAIN AT OUR COMMITTEE,
UM, IN THE GOVERNOR'S, UH,
DIRECTIVE TO THE DEPARTMENT'S
WAS THERE ALSO A DIRECTIVE TO
STOP EXECUTING ANY CONTRACTS
THAT HAVE NOT BEEN REALLY
ALREADY, UH UM, INITIATED WHERE
THERE WERE ANY STOPS TO THAT
EFFECT. THANK YOU, MR ALVAREZ.
UM THE BUDGET LETTER THAT WAS
SENT OUT WAS MORE SPECIFIC TO
OPERATIONS IN REGARDS TO STATE
SAVINGS. I THINK WHAT YOU'RE, UH
, ASKING ABOUT HER THE
PARTICULAR LOCAL REQUESTS UM,
THAT MR GABRIEL MENTIONED,
ACTUALLY REFERRING TO ANYTHING
THAT WAS BUDGETED, UM, WHERE
DEPARTMENTS RECEIVED.
AUGMENTATIONS TO INCREASE
PROGRAMMING TO INCREASE PROJECTS
. UM, AND THAT WOULD REQUIRE
MAYBE CONTRACTS WITH AGENCIES,
LOCAL AGENCIES, LOCAL DISTRICTS.
UM, NEW EXPENDITURES. SO NEW
EXPENDITURES IN. IN THIS YEAR IN
THE CURRENT YEAR. UM SO WE DO
HAVE SOME CURRENT YEAR. UH
SOLUTIONS. UM IT BY THAT MEANING
, UM, SOME PROPOSALS THAT WOULD
IMPACT CURRENT YEAR AND SO, TO
THE EXTENT THAT YOU'RE
SUGGESTING WE WERE HALTING
CONTRACTS THAT THAT WAS NOT A
DIRECTION. UM WE ARE. OBVIOUSLY
THERE'S THERE. THERE THERE ALIVE
DEPARTMENTS AND A LOT OF
PROGRAMS THAT ARE IMPACTED AND
WE CONTINUE TO HAVE
CONVERSATIONS WITH THOSE
DEPARTMENTS TO TRY TO HAVE MORE
DIRECTION AND COMMUNICATION. UM,
BUT THAT HAS NOT BEEN
COMMUNICATED. OKAY AND YES, I
WAS REFERRING TO A NEW
EXPENDITURE IS NOT, UM CURRENT
CURRENT, UH, CONTRACTS THAT
OBVIOUSLY WE DON'T WANT TO
VIOLATE THOSE CONTRACTS WANT TO
CONTINUE, BUT I THINK WE'LL ASK
MORE QUESTIONS ABOUT THAT. I'LL
REFER TO TWO SLIDES TO GRAPHICS
PREPARED BY THE LAO AND BOTH
TODAY'S PRESENTATION AND THE ONE
THAT WE RECEIVED. I BELIEVE
YESTERDAY. ONE IS ON THE K 14.
THE BAR GRAPH THAT HAS A
DISCREPANCY AND, UM THE ROUGHLY
$8 BILLION OF. UNIDENTIFIED
SOURCES OF REDUCTIONS. UH, IF
YOU'RE NOT PREPARED TODAY TO
DISCUSS WHAT THAT'S IN REFERENCE
TO DEFINITELY SUGGEST WE ARE
PREPARED TO HAVE THAT
CONVERSATION AT COMMITTEE.
BECAUSE IT DOESN'T SEEM LIKE
THERE'S AN EXPLANATION AS TO
WHAT THIS IS REFERRING TO. I'M
SORRY, IS THAT THE K 14? CORRECT
OKAY, UM AND, UH, I'LL GIVE A GO
AT IT, AND THEN I'LL TURN IT
OVER TO MY COLLEAGUE. IF I GET
ANYTHING WRONG, OR SHE HAS MORE
DETAILS, UM THE DIFFERENCE IS
REALLY IN THE APPROACH OF HOW WE
LOOK AT PROP. NINE DAY AND HOW
WE LOOK AT THE PRIOR, UM,
REVENUES AND SO WHAT WE ARE
PROPOSING IN THE GOVERNOR'S
BUDGET IS TO BRING DOWN THE TO
BASICALLY ALIGN PROP 98 WITH THE
NEW REVENUES. NOW THAT WE KNOW
WHAT THE REVENUES ARE, SO THE
REVENUES THAT WERE INCLUDED IN
THE BUDGET ACT ASSUMED A CERTAIN
NUMBER. AND THEN, OF COURSE,
PROP 98 GETS A SHARE OF THAT
BECAUSE REVENUES HAVE DECLINED
SO MUCH WE HAVE WE ARE PROPOSING
ADJUSTING THE PRIOR YEAR. UM
GUARANTEE. WHICH WE COUNTED
ABOUT AT 8 BILLION, AND THAT'S
PART OF THAT DIFFERENCE BECAUSE
THE LAO IS NOT DOING THAT. AND
WHAT WE ARE PROPOSING IS
PROVIDING UM, THOSE ARE
SUPPLEMENTAL PAYMENTS TO SCHOOL
SO THAT SCHOOLS DON'T LOSE OUT
ON, UM THE FUNDING. UM THE OTHER
ADDITIONAL CHANGE IS JUST IN THE
REVENUES SO BECAUSE WE
ANTICIPATED HIGHER REVENUES THAN
THE LEO AGAIN THAT SHARE OF THAT
REVENUE IS A PART OF THE
GUARANTEE. SO THAT IS THE
DIFFERENCE FROM THE THAT BAR IN
THE K 14 SECTION, AND THAT'S MY
UNDERSTANDING OF THE DIFFERENCE
BETWEEN THE L A AND FINANCE.
HAVE YOU HEARD CONCERNS FROM
EITHER LEGISLATIVE BUDGET STAFF
FOR THE L A O ON THE
CONSTITUTIONALITY OF THAT? AND
HAVE YOU DONE ANY ASSESSMENT OF
THAT? UM WELL, ALONG WITH THIS
IN, AS WAS STATED, THIS IS A
PROPOSAL SO WE WILL HAVE TRAILER
BILL THAT HAS MORE DETAIL ON
THAT. UM AND WE ARE CURRENTLY
HAVING DISCUSSIONS AND I DON'T
KNOW IF THERE'S ADDITIONAL I
DON'T KNOW IF THE L A OR FOR
STAFF WANTS TO MENTION ANYTHING
ABOUT THIS PARTICULAR ISSUE. AND
THE RESPONSE YOU JUST HEARD, OR
I DON'T KNOW IF IT'S SIMILAR TO
WHAT YOU'VE ALREADY HEARD. MR
ALVAREZ. IT'S SIMILAR TO WHAT
WE'VE ALREADY HEARD. BUT WE
STILL DON'T FULLY UNDERSTAND IT
BECAUSE UH, THE SUPPLEMENTAL
PAYMENTS TO MY I'M NOT SURE IF
THEY'RE COMING FROM THE NON
PROPOSITION 98 SIDE OF THE
BUDGET. WE HAVEN'T REALLY SCENE
WHERE THEY APPEAR IN THE
EXPENDITURE. UH EXPENDITURE
TABLES SHOWN TO US OR THE MULTI
YEAR PROJECTIONS SO UM I STILL
HAVE LEFT WITH THAT QUESTION.
THANK YOU. ANYTHING ON THAT
ERRAND. UM SO I WOULD JUST SAY
IF THE LAO HAS A PROBLEM
UNDERSTANDINGS PROPOSAL. I
GUARANTEE YOU PEOPLE SITTING UP
HERE HAVE A PROBLEM. ALSO
UNDERSTANDING SO THIS IS
CERTAINLY SOMETHING WE HAVE TO
SPEND SOME SIGNIFICANT TIME ON
IN COMMITTEE TO FURTHER
UNDERSTAND THE OTHER, UM
QUESTION I'D ASK. IT'S IN LINE
WITH WITH THE EXPENDITURES AND
HAVE IT. HAS THERE BEEN ANY
ANALYSIS DONE? THIS IS AGAIN NOT
FROM THE L. A S CHART ON THE
DELAYS. WE'VE TALKED ABOUT
DELAYS A LITTLE BIT ALREADY BUT
ON THE DELAYED PROGRAMS AND
WHETHER SOME OF THOSE DELAYED
PROGRAMS CAN JUST, UM WHAT THE
IMPACT OF THOSE DELAYED PROGRAMS
WOULD BE IF THEY JUST WERE
REDUCTIONS GOING FORWARD, AS
OPPOSED TO DELAYS. SO YOU'RE
PROPOSING RATHER THAN A DELAY
THAT THEY WOULD BE OUTRIGHT
REDUCTIONS HAVE YOU ANALYZED
WHAT WHICH ONE OF THOSE DELAYS
COULD BE REDUCTIONS AND WHAT
THOSE IMPACTS WOULD BE. UM AS WE
WERE DEVELOPING THE GOVERNOR'S
BUDGET, I THINK WE DID. UM AND
THAT'S WHY WE HAVE THE SEPARATE
CATEGORIES. UM HAVING MORE
ONGOING REDUCTIONS IS SOMETHING
THAT AGAIN, UM, LOOK FORWARD TO
HAVING THAT CONVERSATION WITH
LEGISLATURE IN REGARDS TO
ALTERNATIVES TO THE DELAYS AS AN
EXAMPLE. UM BUT YES, WE DID.
LOOK AT IMPACTS. OKAY I THINK WE
WILL ALSO FURTHER ANALYZE THAT
AT AT COMMITTEE. THANK YOU, AND
CERTAINLY WILL HAVE MORE
QUESTIONS. UM I WANT TO JUST
START OFF BY ACKNOWLEDGING OUR
SPEAKER AND THE CHAIR FOR THE
FOCUS OF THIS COMMITTEE AND
CERTAINLY THE DIRECTION THAT THE
SUBCOMMITTEES WILL BE TAKING ON
MAKING SURE THAT THE DOLLARS
THAT HAVE BEEN SPENT IN THE PAST
, UM, WERE SPENT IN A WAY THAT
PRIORITIZE THE NEEDS. I BELIEVE
THE ASSEMBLY HAS IN THE
LEGISLATURE AND IN WORKING
ACTUALLY, WITH THE GOVERNOR OF
THE LAST SEVERAL YEARS HAS
REALLY FOCUSED ON A FEW ITEMS
THAT ARE CONTINUING THIS BUDGET,
WHICH I THINK IS GOOD, BUT I
WANT TO HIGHLIGHT A FEW ITEMS
THAT WE HAVE TO BE VERY
CONSCIENTIOUS ABOUT IN THE
EDUCATION BUDGET, IN PARTICULAR,
PROTECTING CLASSROOM FUNDING IS
GOING TO BE A PRIORITY WHEN YOU
TO ENSURE THAT ANY REDUCTIONS DO
NOT IMPACT ANY OF THE SCHOOLS
SPENDING AND STUDENT SERVICES
AND INSTRUCTION IN PARTICULAR IN
IN OUR SCHOOLS, PREVENTING
SCHOOL LAYOFFS ALSO VERY
IMPORTANT. AND PROTECTING OTHER
TRANSFORMATIVE PRIORITIES THAT
AGAIN THE LEGISLATURE AND THE
ADMINISTRATION HAS UH, HAVE
AGREED TO IN THE PAST, INCLUDING
UNIVERSAL TK MEALS PROGRAMS
AFTER SCHOOL PROGRAMS. BUT ALL
OF THESE SHOULD BE FOCUSED. AND
IT WILL BE A VERY, VERY, UH,
CLEAR FOCUS OF OUR COMMITTEE ON
ACCOUNTABILITY FOCUSED ON
STUDENT OUTCOMES, MAKING SURE
THAT STUDENTS ARE RECEIVING THE
RETURN ON THAT INVESTMENT THAT
WE ARE MAKING THE GOVERNOR'S
BUDGET FRAMEWORK AGAIN MIRRORS A
LOT OF THESE PRIORITIES. HOWEVER
WE HAVE SOME CONCERNS. I'VE
ALREADY MENTIONED THE $8 BILLION
LACK OF UNDERSTANDING AS TO HOW
EXACTLY THAT PROPOSAL WILL WORK,
SO WE WILL BE SPENDING TIME ON
THAT. UM WE ALSO THE PROPOSAL
DOES NOT PROVIDE A 2% L CFF
BASED INCREASE, WHICH REALLY
COULD JEOPARDIZE LOCAL DISTRICTS
AND SCHOOLS BY POTENTIALLY
CREATING A LAYOFF SITUATIONS AS
SCHOOL DISTRICTS WERE NOT
ANTICIPATING ONLY A 0.78 BASE
INCREASE. FURTHER DELAYS THE
PREVIOUSLY ENACTED FACILITY
FUNDING FOR PRESCHOOL AND TK AS
WE ASKED SCHOOL DISTRICTS AND
SCHOOLS TO ENSURE THAT EVERY T K
ELIGIBLE KID HAS A SPOT. UM IF
YOU DON'T HAVE THE CLASSROOMS TO
DO SO THEY WILL NOT BE A SPOT
AVAILABLE FOR A LOT OF STUDENTS,
AND WE NEED TO FOCUS ON THAT.
AND IT CREATES NEW SPENDING THIS
BUDGET PROPOSAL AT THE EXPENSE
OF CLASSROOMS FOR SCHOOL BUSSES,
PARK PASSES AND OTHER STATES
SUPPORT SYSTEMS. UM I THINK IT'S
REALLY IMPORTANT THAT OUR LOCAL
LEADERS OR SCHOOL LEADERS OR
SCHOOL BOARDS ARE
SUPERINTENDENTS, EDUCATORS,
FAMILIES. THAT WE SHARE WITH
THEM EXACTLY WHERE WE STAND,
ENCOURAGED BY THE LANGUAGE
THAT'S BEEN SHARED IN THE
CONCERNS ARE INSURED BY A BUDGET
CHAIR AND OTHER SUB CHAIRS. BUT
I THINK, UH, WE DO OWE IT TO ALL
OF THESE FAMILIES AND SCHOOL
LEADERS TO FREEZE ONE TIME FUNDS
THAT SCHOOLS ARE NOT ALREADY
PLANNING TO USE AT THE LOCAL
LEVEL AND TO REJECT ANY NEW
PROPOSALS UNTIL WE KNOW THAT WE
CAN STILL STABILIZE OUR CURRENT
SHARED HISTORIC PRIORITIES THAT
WE'VE MADE. ON THE HIGHER
EDUCATION SIDE, THE SAME
APPROACH. I WOULD SAY THERE ARE
TWO ITEMS OF CONCERN FOR ME THAT
THE COMMITTEE WILL BE FOCUSING
ON AND THAT TWO ITEMS ARE
STUDENT HOUSING AND THE
SIGNIFICANCE THAT STUDENT
HOUSING HAS MET FOR MANY, MANY
STUDENTS OVER THE LAST SEVERAL
YEARS, AND THE SECOND WOULD BE
CALDERON REFORM. THERE IS ONE
BUDGET PROPOSAL THAT CAN
LITERALLY IMPACT. TENS OF
THOUSANDS OF STUDENTS AND THAT
IS IMPLEMENTING CAL GRANT REFORM
. THERE IS NOTHING ELSE IN THE
BUDGET, IN MY OPINION THAT I'VE
IDENTIFIED THAT WAS
SIGNIFICANTLY IMPROVED ACCESS TO
HIGHER EDUCATION. OUTSIDE OF
CALGARY REFORM, SO I BELIEVE IT
IS GOING TO BE VERY IMPORTANT
FOR US TO IDENTIFY WAYS TO ENACT
FURTHER ENACT CALDERON REFORM
AND WE WILL BE FOCUSING OUR
DISCUSSIONS AND HIGHER IT ON
THAT. UM, I DO WANT TO
ACKNOWLEDGE. èC NCSU FOR
INCREASING AGAIN ACCESS. THIS IS
THE THEME FOR THIS COMMITTEE ON
HIGHER EDUCATION. 10,000 FULL
TIME EQUIVALENT STUDENTS THAT
WERE ADDED BETWEEN THE TWO
SYSTEMS. NONRESIDENT ENROLLMENT,
WHICH MEANS MORE CALIFORNIANS.
NONRESIDENT ROMAN IS DOWN, WHICH
MEANS MORE CALIFORNIANS ARE
BEING ENROLLED, INDICATING THAT
THE CAP ON NONRESIDENT
ENROLLMENT IN THE FUNDING TO
REPLACE NONRESIDENTS AT THE
THREE CAMPUSES U. C L. A
BERKELEY AND SAN DIEGO IS
WORKING, AND SO THE PRIORITY
WILL CONTINUE TO BE ON BUILDING
ON THAT MOMENTUM TO ENSURE THAT
BOTH SEGMENTS CONTINUE TO ADD.
OPPORTUNITIES FOR MORE
CALIFORNIA STUDENTS. AND THE
OTHER THING IS THAT I'M
CONCERNED ABOUT, UM ESPECIALLY,
WE HEARD LAST NIGHT CSU AND THE
FACULTY ASSOCIATION. WE THANK
THEM FOR THEIR WORK TO REACH
TENTATIVE AGREEMENT AND, UM SO
THAT AGREEMENT IS CONTINGENT ON
US FUNDING OUR SEGMENTS AND SO
DELAYS IN FUNDING OF THOSE
SEGMENTS MEANS POTENTIAL IMPACTS
TO CERTAINLY TO STUDENTS BUT
ALSO TO THE MEN AND WOMEN WHO
ARE IN OUR WORKFORCE, WHO DO THE
JOB OF EDUCATING OUR STUDENTS IN
OUR CSU SYSTEM. SO BELIEVE I'VE
OUTLINED FOR YOU ALL THE
HIGHLIGHTS OF WHAT OUR COMMITTEE
WILL BE FOCUSING ON. IT IS
ENTIRELY FOCUSED ON UM WHAT WE
HAVE DONE THE SIGNIFICANT
PROGRESS WE'VE MADE MAINTAINING
THE PROGRESS WHERE IT MAKES
SENSE, UNDERSTANDING THAT THERE
ARE LIKELY GOING TO BE SOME
DIFFICULT CHOICES, MAKING THOSE
CHOICES BASED ON ACCOUNTABILITY
AND DATA. THAT INFORMED THOSE
DECISIONS THAT WE WILL MAKE ON
OUR HOPEFULLY IN OUR COMMITTEE.
THANK YOU, MR CHAIR. THANK YOU
VERY MUCH. MR ALVAREZ. I JUST
WANT TO DO A QUICK TIME CHECK
FOR THOSE WHO ARE NOT IN THE
ROOM AT THE BEGINNING. WE HAVE A
HARD CUT OFF OF NOON FOR THIS
HEARING, AND WE STILL HAVE A
NUMBER OF MEMBERS WHO WOULD LIKE
TO ASK QUESTIONS? UH AND, YOU
KNOW, HOPEFULLY WE'LL LEAVE A
LITTLE BIT OF TIME FOR PUBLIC
COMMENTS. SO WITH THIS, WE'RE
GOING TO TURN TO MR MURATSUCHI,
WHO I SUSPECT ALSO HAS SOME
THOUGHTS ABOUT EDUCATION, AND
THEN WE WILL GO TO
ASSEMBLYMEMBER'S QUIRK-SILVA AND
ASSEMBLYMEMBER'S BENNETT AFTER
THAT, THANK YOU. THANK YOU, MR
CHAIR, AND I WANT TO FOLLOW UP
ON OUR SUBCOMMITTEE CHAIR. MR
ALVAREZ ON OUR FOCUS ON 12.
SPECIFICALLY I, UM WANT TO
PREFACE MY COMMENTS. YOU KNOW, I
WAS ON A LOCAL SCHOOL BOARD
DURING THE GREAT RECESSION AND,
UH, YOU KNOW, UH, LIKE MANY
DISTRICTS THROUGHOUT THE STATE
OF CALIFORNIA, WE HAD TO, UH TO
LAY OFF TEACHERS AND CLASSIFIED
STAFF IN ORDER TO, UH TO DEAL
WITH THAT THE MASSIVE BUDGET,
STATE BUDGET DEFICITS UM, THAT
WE, UM, SUFFERED DURING THE
GREAT RECESSION, AND SO I YOU
KNOW, IT IS MY NUMBER ONE
PRIORITY TO AS THE SUBCOMMITTEE
CHAIR INDICATED TO PROTECT
CLASSROOM FUNDING. TO AVOID THE
TEACHER AND CLASSIFIED LAYOFFS.
BECAUSE I YOU KNOW, I DON'T
THINK I NEED TO SAY THAT YOU
KNOW THAT IS GOING TO AFFECT
EVERY SINGLE ONE OF, UH, THAT
DISTRICTS IN THE CALIFORNIA
LEGISLATURE. UM REPUBLICANS AND
DEMOCRATS. AND SO I I'M SURE
THAT K 12 FUNDING WILL CONTINUE
TO BE, UH, THE TOP PRIORITY FOR
THE LEGISLATURE AS WELL AS FOR
THE GOVERNOR. TO THAT END, UM
AND WANTED TO FOLLOW UP ON THE
LINE OF QUESTIONING. UH FROM A
CHAIR OVER AS THE $8 BILLION IN,
UH UM, REDUCTION IN THE PROP 98
OF FUNDING FOR AH, THE 2022 23
BUDGET YEAR AS WELL AS THE 2324
BUDGET YEARS. HOW IS THAT? NOT?
A BUDGET CUT. SO THAT $8 BILLION
IN PRIOR YEAR THAT ADJUSTMENT
THAT WE'RE PROPOSING TO MAKE. UM
THOSE THOSE DOLLARS HAVE GONE
OUT THE DOOR. THOSE DOLLARS ARE
AT THE LOCAL LEVEL AT THIS POINT
, AND SO OUR PROPOSAL IS TO
ACCRUE. A TOTAL OF 8 BILLION
OVER THE MULTI YEAR NOT TAKING
THOSE DOLLARS BACK. BUT
OCCURRING THEM TO AS
SUPPLEMENTAL PAYMENTS IN FUTURE
YEARS. UNDERSTAND THAT THERE IS
SOME CONFUSION AROUND THAT, AND
I HOPE THAT WITH OUR TRAILER
BILL LANGUAGE THAT IS
FORTHCOMING, THERE'LL BE MORE
CLARITY. UM, BUT THAT IS THE
OVERALL UM PROPOSAL AND I WOULD
SAY AND IN RESPONSE TO, UM I
BELIEVE EITHER THE ELIO OR
MEMBER QUESTION THAT IS ON THE
NUN. 98 SIDE. THOSE DOLLARS WILL
BE COMING FROM NOT FROM WITHIN
PROP 98. SO IN OTHER WORDS,
BECAUSE REVENUES ARE LOWER THAN
WE HAD PROJECTED WHEN WE PASSED
THE LAST BUDGET WE'RE GOING. TO
ESSENTIALLY, UH, BACKFILL.
FUTURE PAYMENTS TO COVER THE, UH
, REDUCTION IN THE PROP 98.
FINDING RIGHT AND I CALL THEM
SUPPLEMENTAL PAYMENTS IN THE
FUTURE. I DON'T KNOW IF IT HAS A
TERMINOLOGY, SO TO SPEAK. BUT
YES, AND THAT IS IN THE CONTEXT
OF THE BOTH DEPARTMENT OF
FINANCE AND THE LESS SET OF
ANALYSTS PROJECTING $30 BILLION
BUDGET DEFICITS OVER THE NEXT
THREE YEARS. THAT IS PART OF OUR
PROPOSAL, AS IN THE GOVERNOR'S
BUDGET, UNDERSTAND UNDERSTANDING
THAT WE HAVE TO ASSESS WHAT
THOSE OUT YEARS LOOK LIKE? YES,
ALL RIGHT. I MEAN, I AGAIN. I
THINK WHETHER YOU'RE A
REPUBLICAN OR A DEMOCRAT. I
THINK, UM WE. YOU KNOW, I ALWAYS
LEARNED THAT THAT WE SHOULD
ALWAYS UNDER PROMISE AND OVER,
DELIVER, UH AND ASSUME THE
WORST. AND BE ABLE TO DELIVER
THE BEST FOR CONSTITUENTS AND I
AND I HOPE THE DEPARTMENT OF
FINANCE WILL WELL, WE'LL KEEP
THAT IN CONSIDERATION. UM AS AS
AS WE MOVE FORWARD, UM MOVING ON
TO THE COST OF LIVING INCREASE.
I KNOW AGAIN AS A FORMER SCHOOL
BOARD MEMBER THAT WELL, A 0.76%
COST OF LIVING. UH, PROPOSAL. I
BELIEVE LAST YEAR'S INFLATION
RATE WAS ESTIMATED TO BE 3.4.
AND, UH AND OF COURSE, ALL OF
OUR DISTRICTS. NOT ONLY HAVE TO
DEAL WITH THE STEP IN COLUMN
INCREASES FOR THEIR THEIR
TEACHERS AND CLASSIFIED STAFF.
YOU KNOW, ON TOP OF ANY
NEGOTIATED AGREEMENTS, UM, THAT
THAT THEY'VE RECEIVED, UM
ENTERED INTO WITH THEIR EMPLOYEE
UNIONS. BOTTOM LINE IS A 0.76%
COST OF LIVING. UH PROPOSAL IS
WOEFULLY INADEQUATE AND IT WILL
LEAD TO THE ISSUANCE OF PINK
SLIPS IN OUR DISTRICTS UNLESS WE
TAKE ACTION. IS THE
ADMINISTRATION PROPOSING TO
BLOCK THE MARCH LAYOFF PINK SLIP
ISSUANCE REQUIREMENT. I THINK
THAT WE'RE INTERESTED IN TALKING
MORE WITH LEGISLATURE, UM, IN
THE NEAR TERM ON THAT. RIGHT?
AND LAST, BUT NOT LEAST, UM,
SCHOOL FACILITIES. WE ARE ALL
EXCITED TO ROLL OUT UNIVERSAL
TRANSITIONAL KINDERGARTEN BY
2526. AND YET. OH MANY, IF NOT
ALL OF OUR SCHOOL DISTRICTS ARE
SAYING THAT THEY DON'T HAVE THE
FACILITIES READY? TO ACCOMMODATE
. UM THIS, UH YOU KNOW OUR OUR
NEXT GREAT STEP IN IN EXPANDING
EARLY CHILDHOOD EDUCATION. UM
YOUR PROPOSAL IS, IS YOUR YOUR
PROPOSED THE BUDGET PROPOSAL WAS
IS PROPOSING TO DELAY $550
MILLION IN, UH, EARLY CHILDHOOD
EDUCATION FACILITIES. OH, THAT
IS A CONCERN. I WANT TO MAKE IT
CLEAR IS THE GOVERNOR'S BUDGET
PROPOSAL. RELYING ASSUMING ON
THE PASSAGE OF A SCHOOL BOND,
AND THEY NOVEMBER 2024 ELECTION.
IN ORDER TO MEET ADDRESS OUR
FACILITIES NEEDS. UM AS THE
GOVERNOR STATED AT THE BUDGET
BRIEFING, UM IN EARLY JANUARY,
UM YOU KNOW, WE ARE SUPPORTIVE
OF THAT FACILITIES BOND FOR MANY
REASONS, UM ONE OBVIOUSLY FISCAL
BECAUSE WE HAVE BEEN BACK TO THE
GENERAL FUND HAS BEEN
BACKFILLING FOR A COUPLE OF
YEARS NOW BECAUSE THOSE BONDS
HAVE BEEN DEPLETED. UM AND SO WE
DO LOOK TO A FUTURE FACILITIES
BOND TO HELP AUGMENT THE COSTS
TO THE STATE. AND THAT WOULD
INCLUDE, UM THIS PROGRAM AS
WELL. ALL RIGHT. LOOK FORWARD.
TO CONTINUE TO FLESH OUT. THEY
FOCUS ON THESE ISSUES IN OUR
UPCOMING SUBCOMMITTEE HEARINGS.
THANK YOU VERY MUCH. THANK YOU
VERY MUCH, MR MURATSUCHI. WE ARE
NOW GOING TO GO TO
ASSEMBLYMEMBER'S QUIRK-SILVA AND
THEN ASSEMBLYMEMBER'S BENNETT.
GOOD MORNING. UH, THIS IS MY
FIRST TIME ON BUDGET, EVEN
THOUGH THIS IS MY 10TH YEAR IN
THE CALIFORNIA STATE ASSEMBLY
AND CERTAINLY IS A CRITICAL TIME
IN THE STATE OF CALIFORNIA TO BE
PART OF THIS DISCUSSION, UH,
COMING FROM LOCAL GOVERNMENT AND
NOW, 10 YEARS AT THE ASSEMBLY,
BEING IN A BUDGET CRISIS IS THE
LEAST, UH, PART OF THE JOB THAT
ANY ELECTED OFFICIAL LIKES
BECAUSE YOU HAVE TO SCOUR. NOT
ONLY RECORDS YOU HAVE TO LOOK AT
PROGRAMS CRITICALLY, AND YOU
HAVE TO MAKE CUTS THAT ARE NOT
POPULAR. THAT MEANS SAID AS THE
NEW CHAIR OF BUDGET SUB FIVE,
WHICH WAS BUDGET SUB FOR STATE
ADMIN, VERY EXPANSIVE COMMITTEE
THAT HAS ON UNDER IT, NOT ONLY
STATE ADMINISTRATION BUT THINGS
LIKE VETERANS. CANNABIS GO BIZ,
UH, EVEN OUR FILM TAX CREDIT.
THERE WILL BE QUITE A BIT OF
SCOURING THAT I INTEND TO DO
THROUGH THAT COMMITTEE FOR NOT
ONLY OVERSIGHT. I'M A BIG
SUPPORTER OF HOUSING AS WE KNOW
IN CALIFORNIA AND WE ARE SEEING
PEOPLE LEAVE OUR STATE BECAUSE
OF THE AFFORDABILITY. SO
CERTAINLY LOOKING AT HOW DO WE
HOUSE CALIFORNIANS, BUT ALSO HOW
DO WE PREVENT HOMELESSNESS? WE
CONTINUE TO SEE PEOPLE ON THE
VERGE SO EVERY PROGRAM DOES NOT
LINE UP EQUAL. REALLY? WHEN WE
NEED TO MAKE CUTS, WE HAVE TO
LOOK AT THE MOST VULNERABLE
CALIFORNIANS AND THERE ARE
PROGRAMS WE HAVE IN OUR
CALIFORNIA STATE BUDGET ALL OF
OUR PROGRAMS, WHETHER IT'S
EDUCATION, WHETHER IT'S HIGHER
AD, WHETHER IT'S THE ART,
WHETHER IT'S HEALTH CARE, WHAT
ARE OUR MOST ESSENTIAL PROGRAMS?
WHAT DO WE NEED TO CONTINUE TO
DO BECAUSE THE DATA HAS SHOWN
ITS WORKING AND WHAT CAN WE LET
GO? FOLKS OUT THERE. I SEE QUITE
A BIT OF PEOPLE TUNED INTO THIS.
HERRING AND PEOPLE ARE ADVOCATES
FOR THEIR PROGRAMS, AND THEY ARE
ADVOCATES AND IT'S VERY HARD TO
LET GO OF SOMETHING, BUT THEY
DON'T ALL WORK. SO WHEN WE LOOK
AT SOME OF THE PROGRAMS THAT ARE
UNDER MY COMMITTEE, CERTAINLY
THERE ARE SIGNIFICANT CUTS UNDER
HOUSING AND HOMELESSNESS. AND
I'M GOING TO BE WANTING TO
UNDERSTAND HOW THOSE CUTS WERE
PROPOSED AND WHY OTHERS WEREN'T
AN EXAMPLE. ALL IS I BELIEVE WE
HAVE $350 MILLION IN AN
ENCAMPMENT PROGRAM. UH THE
INFORMATION THAT WE'RE SEEING IS
THAT THOSE ENCAMPMENT THERE IS
REMOVAL, BUT THEN WE DON'T KNOW
THE OUTCOME. WHERE DO THOSE
INDIVIDUALS GO? ARE WE REALLY
HOUSING THEM OR WE JUST MOVING
HIM, UH, OFF TO SOMEWHERE ELSE.
SO SOMEBODY ELSE OTHER
JURISDICTION CAN HAVE THAT
RESPONSIBILITY TO DEAL WITH IT.
I KNOW WE ALL BELIEVE IN
HOMEOWNERSHIP AS THE CALIFORNIA
DREAM. AND YET SOME OF THE EARLY
INDICATORS SHOW THAT THAT FIRST
ROLLOUT OF PEOPLE GETTING FIRST
TIME HOMEOWNERSHIP SUPPORT MANY
PEOPLE ACTUALLY WERE ON THEIR
WAY TO HOME OWNERSHIP WITHOUT
THAT PROGRAM, AND DID WE REALLY
IDENTIFY PEOPLE THAT REALLY
NEEDED IT? SO THAT'S THE LENS
THAT I'M GOING TO BE LOOKING
THROUGH AS A SUB CHAIR FOR SUB
CHAIR FIVE, WHICH IS WHAT IS
WORKING. WHAT'S IS NOT WORKING.
AND WHERE DO WE NEED TO MAKE
CUTS? BECAUSE I THINK WHAT WE
ALL KNOW HERE IS WE HAVE TO MAKE
CUTS. I'M ALSO GOING TO BE
LOOKING AT THE MOST IMPORTANT
ISSUES. FROM HEALTH CARE TO
HOUSING TO FOOD. THOSE ARE THE
BASIC NEEDS OF CALIFORNIANS, AND
WE ALREADY HAVE PEOPLE MOVING
INTO HOMELESSNESS AND WE HAVE TO
DO WHAT WE CAN TO PREVENT
HOMELESSNESS. SO THAT'S THE LENS
. I'M GOING TO BE LOOKING AT
SOME OF THESE QUESTIONS. I WILL
BE ASKING AND COMMITTEE SO I'M
NOT GOING TO ADDRESS THEM HERE.
I DO WANT TO PUT ON YOUR RADAR.
BROADBAND IS UNDER MY COMMITTEE
AND WE SEE $1.5 BILLION
INCREASE. INTO THAT BUDGET.
AFTER WHAT I BELIEVE WAS A $7
MILLION INFUSION. UH IN THE LAST
HANDFUL YEARS, SO ONE OF MY
QUESTION IS GOING TO BE IS WHERE
IS THAT ACCESS WHO STILL DOESN'T
HAVE ACCESS SO FOR ALMOST $8
BILLION FUNDING. AUGMENTATION
ARE WE ACTUALLY GONNA GIVE
ACCESS TO THOSE WHO DON'T HAVE
ACCESS? THAT'S A CRITICAL
QUESTION I'M GOING TO HAVE UNDER
THAT AND AGAIN LOOKING UNDER
CANNABIS. WE KNOW THAT THERE
THAT THE GOVERNOR LOOKED AT
USING SOME FUNDS FROM THOSE
BUDGETS. WHY ISN'T THAT MONEY
BEEN ROLLED OUT? SO I HAVE A LOT
TO ASK. I LOOK FORWARD TO THESE
COMMITTEES, AND I KNOW THAT
WE'RE GOING TO HAVE TO MAKE
TOUGH DECISIONS. THANK YOU SO
MUCH. THANK YOU VERY MUCH, MR
CORK, ASSEMBLYMEMBER'S
QUIRK-SILVA, AND I JUST HAVE
REMINDED THE MEMBERS THAT WE
HAVE 61 SUBCOMMITTEE HEARINGS
THAT ARE GOING TO BE NOTICED.
THERE WILL BE PLENTY OF
OPPORTUNITIES TO REALLY DIVE
DEEP INTO THE DETAILS OF ALL
THESE ISSUES THAT ARE REALLY
IMPORTANT THAT ARE REALLY
IMPORTANT, BUT I DO WANT TO JUST
TRY TO MOVE US ALONG A LITTLE
BIT, SO WE HAVE SOME TIME FOR
PUBLIC COMMENT AT THIS HEARING,
SO I'M NOT GOING TO TURN IT OVER
TO ASSEMBLYMEMBER'S BENNETT
SPEAK AT MY HUBERT HUMPHREY
SPEED INSTEAD OF NORMAL SPEED.
UM THE BUT MY. MY FIRST QUESTION
IS JUST QUESTION FOR L A OH, AND
JUST WANT TO TRY TO UNDERSTAND
FROM AN OVERALL BUDGET REVENUE
STANDPOINT, THE STOCK MARKET DID
BETTER THAN WHAT EVERYBODY
EXPECTED LAST FALL. WHEN DO WE
ACTUALLY SEE THE CAPITAL GAINS
REVENUE INCREASE? I KNOW THIS IS
NOT A BIG SOLUTION TO ALL OF OUR
BROTHERS PROBLEMS, A TEMPORARY
INCREASE IN THE STOCK MARKET,
BUT UM, WHEN WOULD WE SEE THAT?
WOULD THAT BE AT THE APRIL 15TH
TAX RETURNS THAT COME IN, UM IN
THAT THEN WE WOULD FIND OUT HOW
MUCH OF THE INCREASE IN THE
STOCK MARKET ACTUALLY TURNED
INTO CAPITAL GAINS FOR
CALIFORNIA TAXPAYERS SOME OTHER
TIME WHEN WE GET GET THAT DATA,
THANK YOU. IT IS A GREAT
QUESTION. WE'VE BEEN WE, OF
COURSE, FOLLOW THE MARKETS
CLOSELY. BECAUSE OF THE REVENUE
CONNECTION. I WOULD JUST POINT
OUT THAT THE CONNECTION TO
CALIFORNIA'S REVENUES IS FAIRLY
COMPLICATED. WHEN WE DEVELOPED
OUR REVENUE ESTIMATES IN
DECEMBER. MUCH OF THE 2023
APPRECIATION IN THE STOCK MARKET
WAS FACTORED INTO OUR MODELS, SO
THERE HAS BEEN SOME CONTINUED
APPRECIATION IN THE MARKETS
THROUGHOUT DECEMBER. AH AND YOU
KNOW UNFORTUNATELY, IF WE WERE
GOING TO SEE A GREAT UPSIDE TO
THAT, WE THINK WE MIGHT HAVE
SEEN SOME OF IT APPEARING IN
JANUARY, WHICH WE DID NOT REALLY
SEE AS HAS BEEN DISCUSSED
ALREADY. THERE WAS NOT A STRONG
REBOUND IN JANUARY. THE NUMBERS
ACTUALLY CAME IN, UH, WE'RE
ESTIMATING THREE OR SO BILLION
BELOW WHAT WAS IN THE GOVERNOR'S
ESTIMATE. UM AND JUST KIND OF
FOR YOUR FRAMEWORK. WHEN WE
THINK ABOUT THE TRANSLATION OF
THE STOCK MARKET TO STATE TAX
REVENUES. THERE ARE A COUPLE OF
POINTS TO 12 IN PARTICULAR. ONE
IS THAT WE DO NEED TO SEE SOME
OF THE GAINS BE SUSTAINED OVER A
LONGER PERIOD OF TIME SO THE
MARKET CAN GO UP AND DOWN. SO IF
THE GAINS ARE SUSTAINED OVER A
LONGER PERIOD OF TIME, OF
COURSE, THAT'S BETTER FOR THE
CALIFORNIA REVENUES. UH YOU
KNOW, RIGHT NOW WE ARE AT RECORD
HIGHS, BUT THAT'S REALLY ONLY A
LITTLE BIT HIGHER THAN WHERE WE
WERE IN 2021, SO WE WOULD WANT
TO SEE MORE CONTINUED
APPRECIATION AND FOR IT TO BE
SUSTAINED. THE SECOND PART IS
THAT THE TYPE OF INVESTMENT THAT
WE WOULD LIKE TO SEE FOR
CALIFORNIA IS THE TYPE THAT
TRANSLATES TO INCREASED INVESTOR
APPETITE IN CALIFORNIA
BUSINESSES IN PARTICULAR, SO
BUSINESS EXPANSIONS, UH, STARTUP
ACTIVITY, INITIAL PUBLIC
OFFERINGS. AND ALTHOUGH THIS
RALLY THAT WE'VE SEEN IN THE
STOCK MARKET THROUGHOUT 2023 HAS
BEEN, YOU KNOW, OBVIOUSLY BETTER
THAN NOT. IT REALLY HAS NOT BEEN
ACCOMPANIED BY THAT TYPE OF
ACTIVITY, WHICH IS REALLY THE
THING THAT GIVES US A BOOST IN
OUR TAX. UH, FRIENDS. THANK YOU
VERY MUCH. I APPRECIATE THAT. UM
AND I OVERALL I APPRECIATE THAT.
THE UH YOU KNOW, IF YOU LOOK AT
THE CLIMATE CHANGE PACKAGE AND
EVERYTHING GOES INTO THAT ENERGY
TRANSPORTATION, ETCETERA THAT
WE'RE STILL AT 48 BILLION OF THE
54 BILLION THAT WE HAD IN THE
BUDGET IN 2021. 21 AND BUDGET 20
TO 2022. WHAT I AM CONCERNED
ABOUT THE OH, IS THAT THE CUTS
THAT ARE NECESSARY THAT HAVE TO
BE MADE FOR US TO GET THERE ARE
NOT EVENLY BALANCED, AND THEY'RE
PARTICULARLY NOT BALANCE IN THAT
. I BELIEVE THAT THE CUTS MUCH
MORE COME OUT OF THE LEGISLATIVE
PRIORITIES THAT THE LEGISLATURE
HAS ASKED FOR IN THE LAST COUPLE
OF YEARS. AND SO THAT'S A
CONCERN FOR ME. I JUST WANT TO
HIGHLIGHT A COUPLE OF EXAMPLES
OF THAT. BUDGET CUTS 57% OF THE
WATER RECYCLING PROGRAM. THAT'S
$452 MILLION. AND BY THE WAY,
JUST A QUICK DIGRESSION.
CERTAINLY UM THIS PROGRAM WOULD
PREFER THAT TO HAVE BEEN A DELAY
THAN A CUT AS WE HAD A LONG
CONVERSATION ABOUT YOU KNOW,
PEOPLE WOULD LIKE TO BE
PRIORITIZED WITH IT WITH THE
BENEFIT OF THE DELAY, BUT, UM,
WATER RECYCLING IS PROBABLY ONE
OF THE BEST LONG TERM DROUGHT
RESISTANCE. UM INVESTMENTS WE
CAN MAKE AND CERTAINLY AS WE'RE
GOING THROUGH CLIMATE CHANGE. IF
YOU WANT TO HAVE RELIANT, WE
NEED TO HAVE MORE RELIABILITY IN
OUR WATER SUPPLY. UM SO WATER
RECYCLING IS SOMETHING I THINK I
WANT TO MAKE SURE WE TAKE A GOOD
LOOK AT IN TERMS OF ARE THERE
OTHER THINGS IN THE BUDGET THAT
WE WOULD PROPOSE AS A
LEGISLATURE FOR CUTS INSTEAD,
THE SECOND THING I'D LIKE TO
CALL OUT AS THE ELIMINATING OF
THE COMMUNITY FOOD PROGRAM IN
THE CALIFORNIA NUTRITION
INCENTIVE PROGRAM. AND THAT
ALLOWS US TO RECEIVE FEDERAL
MATCHING MONEY SO THAT LOW
INCOME CALIFORNIANS CAN BUY
FRESH FRUITS AND VEGETABLES.
THINK IT'S AN EXTREMELY, UH
EFFICIENT PROGRAM. IT'S THEY'VE
THEY'VE COME UP WITH A GREAT WAY
TO ADMINISTER THIS PROGRAM. WAY
TO REALLY CONNECT WITH FAMILIES.
UM, AND SO I THINK IT'S ONE THAT
I WILL BE LOOKING FOR OTHER
OTHER CUTS TO SEE IF WE CAN
AVOID THE ELIMINATION OF THESE
TWO PROGRAMS. THIRD THING I'D
CALL OUT IS THAT THE DAM SAFETY
PROGRAM HAS BEEN CUT TO A PALTRY
$50 MILLION. AND WHEN YOU HAVE
THE STATE AUDITOR, SAYING THAT
THERE ARE 89 DAMS THAT HAVE
SIGNIFICANT OR ABOVE HAVE HAVE
HAZARD RATINGS. UM THAT'S A
CONCERN. THE COUPLE OTHER QUICK
POINTS TO MAKE AND THAT IS
DURING OUR SUB FOR MEETINGS WE
WILL BE ASKING WOULDN'T WANT TO
TRY TO BURDEN YOU WITH THIS, BUT
FOR US TO GET AN IDEA OF THERE
ARE SIGNIFICANT CUTS IN THE
CLIMATE CHANGE PACKAGE. WHAT IS
THE IMPACT OF THOSE CUTS ON OUR
ABILITY TO REACH THE GOALS THAT
WE'VE SET FOR OURSELVES AS A
STATE ARE 2030 GOALS, ETCETERA.
IT'S VERY EASY FOR US TO SET
GOALS AND THEN WE DON'T HAVE
VERY GOOD TRACKING IN TERMS OF
WHETHER OR ACTUALLY ON TRACK AND
IT WOULD BE. I THINK VERY
HELPFUL FOR US TO KNOW. HEY,
THESE CUTS ARE GOING TO MEAN
WE'RE NOT GOING TO GET HERE
UNTIL 2032 INSTEAD OF 2030. THAT
WOULD BE YOU KNOW THE GOALS FOR
CLIMATE REDUCTION. UM, AND THE
3030 INVESTMENTS THAT WE HAVE,
BUT FOR ALL OF OUR GOALS, SO
THAT WOULD BE A QUESTION THEY
WILL ASK. AND THEN WITH MY
COLLEAGUE RIGHT NEXT TO ME, UH,
DO IT WITH HOUSING. I JUST WANT
TO GET ON THE RADAR SCREEN, NOT
IN BUDGET SOME BEFORE, BUT I
THINK THAT THE REAP HOUSING
PROGRAM HAS SOME SIGNIFICANT
BENEFITS AND CERTAINLY IN THE IN
IN MY AREA IN VENTURA COUNTY.
THERE'S A LOT OF BENEFITS WITH
THAT RE PROGRAM. AND FINALLY, I
WOULD SAY, LIKE A NUMBER OF
OTHER CHAIRS HAVE SAID I WOULD.
WE WILL BE TRYING AS BEST WE CAN
IN OUR SUBCOMMITTEE. HEARINGS.
TO EVALUATE HOW WELL IS THE
MONEY BEING SPENT? WHERE IS THE
MONEY NOT BEING SPENT AS WELL.
AND WE CAN MOVE IT TO AREAS THAT
WE THINK HAVE BETTER PRIORITY,
AND THAT'S REALLY IMPORTANT
THING FOR ALL OF US TO DO. THANK
YOU VERY MUCH APPRECIATE IT.
THANK YOU VERY MUCH, MR BENNETT.
WE'RE NOT GOING TO GO TO
ASSEMBLYMEMBER'S OF BIRTH THAN
ASSEMBLYMEMBER'S ORTEGA
ASSEMBLYMEMBER'S EARLY AND
ASSEMBLYMEMBER'S BONTA. SO THOSE
ARE THE FOLKS THAT ARE UP NEXT
MEMBERS OF BIRTH. THANK YOU, MR
CHAIR, AND I'M GONNA TRY TO
ABBREVIATE MY COMMENTS AND SAY
THAT I WANT TO LINE MY COMMENTS
WITH THOSE OF DR JACKSON AND
QUIRK-SILVA ABOUT MAKING SURE
THAT WE'RE PRIORITIZING BASIC
NEEDS OF OUR VULNERABLE
COMMUNITIES. UM AS WELL AS UH
ASSEMBLYMEMBER'S ALVAREZ ABOUT
THE IMPORTANCE OF SOME OF THE
PRIORITIES HE MENTIONED ON ON
EDUCATION FUNDING. THE MAIN
REASON WHY I WANTED TO, UH TO,
UH, COMMENT WAS THAT I REALLY
ALONG THE LINES OF WHAT MR
BENNETT ASSEMBLYMEMBER'S.
BENNETT JUST SAID, UM, CONCERNED
ABOUT THE LEVEL OF THE CUTS OF
DELAYS RELATED TO THE CLIMATE
PROGRAMS. UM, THOSE ARE AMONG
THE LARGEST IN THE BUDGET. UM
AND I THINK THE QUESTION THAT I
WOULD HAVE TO ANSWER THIS TODAY.
BUT THE QUESTION THAT I HAVE
THAT I THINK NEEDS TO BE
ANSWERED IS THE EXTENT TO WHICH
SOME OF THESE CUTS WERE LOOKED
AT FROM THE LENS OF UH, WHAT DO
WE NEED TO DO TO MEET OUR
CLIMATE GOALS AND THE GOALS IN
THE SCOPING PLAN, AS OPPOSED TO
WHAT'S EASY TO CUT BECAUSE YOU
HAVE LARGE NUMBERS OR UH MORE
FISCAL ISSUES. AND SO I THINK
THE COMMENT THAT I HAVE IS THAT
I THINK IT'S REALLY IMPORTANT
THAT WE SORT OF TAKE A FRESH
LOOK. TO THE EXTENT THIS HASN'T
HAPPENED ALREADY AT HOW THE
BUDGET ALIGNS WITH THE SCOPING
PLANTS. I KNOW WHEN WE HAVE MORE
MONEY. IT'S OBVIOUSLY EASIER TOO
EASY OR TO PUT MONEY INTO THINGS
THAT ARE GOOD FOR CLIMATE BUT
MAY NOT BE PART THOSE CRUCIAL
THINGS THAT WE NEED TO MEET THE
CLIMATE GOALS, SO THAT'S ONE ONE
COMMENT SECOND, UM I'VE HAD
CONVERSATIONS WITH SUB CHAIR
QUIRK-SILVA, UM, ONE OF THE
THINGS THAT I WAS HOPING THAT
THIS COMMITTEE AND HER
SUBCOMMITTEE MIGHT DO IS REALLY
TAKE A FRESH LOOK AT SOME OF THE
PROGRAMS RELATED TO THE UNHAPPY
HOUSED MY PERSPECTIVE FROM LAST
YEAR AND LOOKING AT THE BUDGET
WAS THAT WE HAVEN'T MADE A
PRIORITY ENOUGH OF PREVENTING
HOMELESSNESS WHEN YOU LOOK AT
SORT OF THE COST OF HOMELESSNESS
, PREVENTION VERSUS INTERVENTION
ON THE OTHER SIDE, WHEN WE
ACTUALLY HAVE TO LOOK AT YOU
KNOW, CREATION OF SOCIAL
SERVICES, TEMPORARY HOUSING AND
PERMANENT HOUSING. IT IS MUCH,
MUCH LESS EXPENSIVE TO ACTUALLY,
UM. UM INTERVENE AT THE AT THE
YOU KNOW, AT THE OUTSET, AND YOU
KNOW THE CALIFORNIA COMMISSION
ON AGING AND YOU HAVE A WHOLE
BUNCH OF STUDIES FROM A BUNCH OF
, UH, AGENCIES THAT HAVE DONE
THAT HAVE RECOMMENDED THAT, UM,
THAT HOUSING SUBSIDIES BE A KEY
PART OF OUR OVERALL GOAL TO
SOLVE THE HOMELESSNESS CRISIS.
SO THAT'S SOMETHING THAT REALLY
DID NOT SEEM TO BE A PRIORITY IN
THE PRIOR BUDGETS, AND I'M
HOPING THAT EVEN THOUGH WE ARE
ACTUALLY HAVING TO LOOK AT, UM
UH, YOU KNOW, REDUCTION AND
POTENTIALLY IN RESOURCES THAT WE
CAN ACTUALLY LOOK AT SOME OF
THESE THINGS WITH A FRESH LOOK
AND LOOK AT HOW HOMELESSNESS
PREVENTION IS ONE OF THE
COMPONENTS OF THE THINGS THAT WE
LOOK AT. AND THEN FINALLY, UM
THE THIS WAS, I THINK ALONG THE
LINES OF WHAT ASSEMBLYMEMBER'S
BENNETT RAISED, UM YOU KNOW, I'M
HEARING FROM THE OUTSIDE FOLKS
ON THE OUTSIDE THAT, UM AND
PARTIALLY ADDRESSED SOME OF THIS
WITH YOU KNOW WHAT YOU'RE SEEING
IN JANUARY. THAT UH, YOU KNOW,
AND I THINK FOLKS ARE BEING
OPTIMISTIC ABOUT AND I KNOW WE
HAVE TO SORT OF PLAN FOR THE
WORST. AND I, UH YOU KNOW,
REALLY, UM, YOU KNOW, SUPPORTIVE
OF I THINK WHAT THE WHAT THIS
COMMITTEE IS DOING AND WHAT THE
GOVERNOR HAS DONE IN TERMS OF
LOOKING AT WHAT? YOU KNOW THE
BEST INFORMATION WE HAVE AT THE
TIME, BUT I'M WONDERING SORT OF
WHAT THE MARKERS ARE IN TERMS OF
WHEN YOU SORT OF UPDATE
PROJECTIONS. I MEAN, WHEN ARE
SORT OF THE KEY PERIODS OF TIME
WHERE YOU THINK THAT WE MAY HAVE
MORE INFORMATION TO SORT OF LOOK
AT WHETHER THERE IS, UH, EITHER
MORE REVENUE SORT OF COMING IN
THAT WE CAN ACTUALLY ENVISION
AND ANTICIPATE. BY THE TIME WE
HAVE TO ADOPT THE BUDGET OR LESS
REVENUE AND THEN HAVE TO DO SORT
OF DIFFERENT THINGS, SO I'M JUST
WONDERING WHERE IN THOSE WHEN
THOSE TIME MARKERS ARE ER AND
SORT OF WHAT YOU KNOW. WHEN YOU
WILL BE LOOKING AT THOSE
PROJECTIONS AGAIN. SURE AND AT A
HIGH LEVEL, UM, REVISIT MY
EARLIER REMARKS IN REGARDS TO
THE LACK OF INFORMATION WE HAD
BACK IN MAY WHEN, UM THE TAX
FILING DELAY WAS INITIALLY
IMPLEMENTED. WE GENERALLY HAVE
TAX RECEIPTS. UH THE BULK OF
THEM WHEN WE ARE DEVELOPING OUR
MAY REVISION FORECAST THAT IS
THEN INCORPORATED INTO THE
GOVERNOR'S BUDGET. UM AND WE
JUST DIDN'T HAVE THAT LAST YEAR.
SO GENERALLY SPEAKING, IT'S THAT
TIME OF YEAR AND I'LL DEFER TO
MY COLLEAGUE FOR MORE SPECIFICS,
BUT, UM EVEN WITH THE REVENUE
COMING IN OR NOT COMING AT THIS
POINT, I THINK WE ANTICIPATE, UM
LOOKING, UH, AND HAVING MORE
INFORMATION IN APRIL. KOBE WIDE
DEPARTMENT OF FINANCE. YES SO
WHEN WE REVISIT THE FORECASTS IN
IN APRIL IN PREPARATION, THEY
REVISION WILL HAVE A PRETTY
COMPLETE PICTURE OF TAX YEAR
2023 RECEIPTS, SO THOSE WERE
THOSE WILL BE DUE ON ON OR
AROUND APRIL, APRIL 15 AND AT
THAT POINT WE WOULD HAVE ALL THE
ALL THE PAYMENTS RELATED TO TAX
HERE OR MOST OF THE PAYMENTS
RELATED TO TAX YEAR 2023,
INCLUDING JANUARY'S RESULTS AND
ESTIMATED PAYMENTS, WHAT AND
REFUNDS THAT LED UP TO THAT
POINT WE WON'T HAVE PAYMENTS BY
EXTENSION FILERS THAT COME COME
LATER IN THE YEAR, BUT THEN WE
ALSO START TO GET A LOOK AT THE
TAX YEAR 2024 AS WELL. THE 1ST
APRIL ESTIMATED PAYMENT IS DUE
IN 2024. SO ALL OF THAT IT'S A
SIGNIFICANT AMOUNT OF CASH DATA
AND ALSO THE CORPORATIONS AS
WELL SO OVER 50 BILLION AND IN
PAYMENTS THAT ARE EXPECTED IN
FEBRUARY THROUGH THROUGH APRIL,
AND THAT WILL BE INCORPORATED
INTO OUR MAY REVISION
PROJECTIONS. AND FROM THE
LEGISLATIVE ANALYST'S OFFICE. AS
YOU ACKNOWLEDGED, WE'VE BEEN
DOING SOME MORE FREQUENT,
PERIODIC SHORTER UPDATES FROM
TIME TO TIME, BUT I'D LIKE TO
ASK MY COLLEAGUE TO WEIGH IN ON
JUST SOME OF THE MARKERS THAT
YOU'RE LOOKING FOR. YEAH AS GAY
MENTIONED WERE CONSISTENTLY
MONITORING BOTH THE CASH AND
ECONOMIC DATA AND WE DO PROVIDE
NOW KIND OF A MONTHLY UPDATE TO
OUR OUR OUR LOOK AT THE FORECAST
AS MY COLLEAGUE FROM THE
DEPARTMENT OF FINANCE MENTIONED
THERE ARE SOME SOME KEY KIND OF
POINTS IN TIME WHERE WE GET MORE
IMPORTANT DATA. APRIL IS A KEY
ONE WHEN WE GET THE WHEN WE GET
THE TAX COLLECTIONS UM, BUT WE
ARE, YOU KNOW, CONSTANTLY
MONITORING, YOU KNOW INFORMATION
ON THE STATE'S LABOR MARKETS ON
CONSUMER BEHAVIOR ON CORPORATE
PROFITS, UH, WHOLE HOST OF
ECONOMIC DATA THAT WERE, YOU
KNOW, LOOKING AT ON A MONTHLY
BASIS TO TRY TO GAUGE HOW THE
TRENDS ARE SHIFTING. ALL RIGHT.
THANK YOU VERY MUCH.
ASSEMBLYMEMBER'S OF BURR. WE ARE
NOW GOING TO GO TO
ASSEMBLYMEMBER'S ORTEGA THAN
ASSEMBLYMEMBER'S EARLY AND
ASSEMBLYMEMBER'S BONTA. THANK
YOU. CAN YOU HEAR ME? IS IT ON?
OKAY THANK YOU, EVERYONE FOR
BEING HERE AND YOU KNOW,
LISTENING TO EVERYONE. I JUST
WANT TO THANK ALL THE WORK THAT
YOU PUT INTO THIS. I KNOW IT'S A
DIFFICULT TIME AND AS A NEW
MEMBER, I UNDERSTAND THE
SITUATION THAT WE'RE IN AND
WE'RE GOING TO HAVE TO MAKE SOME
VERY DIFFICULT DECISIONS, BUT I
DO WANT TO ACKNOWLEDGE AND THANK
THE GOVERNOR FOR MAINTAINING THE
EXPANSION OF MEDICAL TO LOW
INCOME. CALIFORNIA AND SO
REGARDLESS OF IMMIGRATION STATUS
, MANY OF THESE, UH CALIFORNIANS
WERE DEEMED ESSENTIAL DURING THE
PANDEMIC, AND I'M GLAD TO SEE
THAT WE'VE LEARNED SOME LESSONS
AND CONTINUING TO PROVIDE, UH
FOR THEM AND MAKING SURE THAT
THEY HAVE ACCESS TO HEALTH CARE
IN THE LONG RUN. IT'S A COST.
IT'S A SAVER FOR THE STATE OF
CALIFORNIA. UM AND AGAIN, I JUST
WANNA, YOU KNOW, THERE'S A LOT A
LOT OF DARK THINGS A LOT OF
THINGS. WE'RE GOING TO HAVE TO
LOOK AT VERY CLOSELY HAVE A LOT
OF OTHER QUESTIONS, BUT I DIDN'T
WANT TO MAKE A NOTE OF THIS
SIGNIFICANT MAINTAINING OF
PROGRAM IN THE BUDGET. THANK YOU
VERY MUCH ASSEMBLYMEMBER'S WE'RE
NOT GOING TO GO TO
ASSEMBLYMEMBER'S EARLY. THANK
YOU, MR CHAIR. OF COURSE. I ALSO
WANT TO THANK THE L. A IN
DEPARTMENT FINANCE FOR YOUR WORK
ON THIS BUDGET IS NOT EASY. IT'S
A LOT OF TOUGH CHOICES. OF
COURSE YOU HAVE TO CONFRONT,
BUT, UM, SINCE WE'RE RUNNING
SHORT ON TIME, I'LL JUST RESERVE
IT TO COMMENTS. BUT I DO
QUESTION THE WISDOM AS MANY OF
MY COLLEAGUES HAVE MENTIONED THE
WISDOM OF WHY CERTAIN THINGS ARE
BEING CUT. FOR INSTANCE, IN THE
HOUSING SPACE ALONE, UM WE KNOW
RIGHT NOW THAT THE HOMELESS
ENCAMPMENT RESOLUTION PROGRAM IS
MAINTAINED MILLIONS HUNDREDS OF
MILLIONS OF DOLLARS. YEP THERE'S
ALREADY MIXED RESULTS, EVEN IN
MY OWN CITY OF SAN JOSE IN
DOWNTOWN SAN JOSE, MORE OF IT
USED OR MOVING PEOPLE AWAY
BEAUTIFICATION THAN GETTING
PEOPLE RE HOUSED, IN FACT, IN
DOWNTOWN JOSE 10% OF THE STATE
GRANTS THAT THEY APPLIED FOR WAS
USED JUST SIMPLY FOR PARK
BEAUTIFICATION. WHICH IS GOOD,
BUT PROBABLY NOT WHAT WE
INTENDED THE MONEY FOR THE
QUESTION WHY CERTAIN ITEMS ARE
BEING DELAYED OR CUTS WHEN OTHER
THINGS ARE BEING KEPT THERE,
EVEN THOUGH THEY DON'T PRODUCE
THE RESULTS THAT WE SAY WANT TO
AND KEEPING IN LINE WITH OUR
CAUCUSES. MIND WHAT WE WANT TO
DO IS I QUESTION WHY CERTAIN
THINGS ARE CUT IF THEY ARE
PRODUCING RESULTS THAT WE WANT
IF THEY ARE ACTUALLY YIELDING
THE OUTCOMES, EVERYONE IN MAYBE
IN ANOTHER TERMS, THE RETURN ON
INVESTMENT IS ACTUALLY VERY GOOD
. AND IN FACT, MANY OF THE
CITATION OF WHY THE ENCAMPMENT
CLEARANCE PROGRAM ISN'T WORKING
BECAUSE THERE AREN'T ENOUGH BEDS
OR SHELTERS OR IN LONG TERM
HOUSING FOR PEOPLE WHO ARE ON
HOUSED, AND SO I WORRY THAT IN
THE HOUSING BUDGET A LOT OF THE
MONEY THAT WE RELY ON TO BUILD
MORE HOUSING. ESPECIALLY THESE
ARE THINGS FOR THE NEAR FUTURE
OR BEING DECIMATED. THE MULTI
FAMILY HOUSING PROGRAM DECIMATED
THE FORECLOSURE INTERVENTION
HOUSING PRESERVATION PROGRAM
DECIMATED THE INFO
INFRASTRUCTURE. GRANT ALSO
ESTIMATED THE HOUSING NAVIGATORS
PROGRAM DECIMATED VETERAN
HOUSING AND HOMELESSNESS
PREVENTION PROGRAM. AND THEN, OF
COURSE, THAT'S NOT EVEN ADDING
IN THAT THERE'S NO NEW LOW
INCOME HOUSING TAX CREDIT MONEY,
SO ALL THE MONEY THAT WE ARE
FUTURE PROOFING AND TIME BUILD
MORE HOUSING. WHICH OF COURSE
WON'T BE DELIVERED IN ONE YEAR
IS BEING CUT. SO I WONDER WHY IF
OUR DESIRE EXPRESSED OUTCOME TO
SOLVE HOMELESSNESS AND THE
HOUSING CRISIS, WE'RE PULLING
BACK SO MUCH OUR INVESTMENT IN
HOUSING AND WHILE THE SAME TIME
JUST TO BE IN THIS BUDGET,
SUBCATEGORY THAT SIMPLY WERE
QUIRK-SILVA CHAIRS ö
ALSO WERE EX PROPOSING TO EXPAND
. THE GOBIES COMPETES GRANT,
WHICH IS GIVING $60 MILLION OF
NEW MONEY FOR $50 MILLION IN NEW
MONEY. TO CORPORATIONS. SO
SOMETHING THAT ALWAYS BAFFLES ME
IS THAT WHILE EVERYDAY WORKING
CLASS CALIFORNIANS AND MANY
YOUNG CALIFORNIANS WHO ARE
SADDLED WITH DEBT HIGH COST OF
LIVING AND HAVE TO PAY THE BILLS
EVERY YEAR. WE ARE GOING TO BE
THE ONES SHOULDERING ANY OF
THESE CUTS, THEY WILL BE PAYING.
YES, THEY ARE, OF COURSE, PAYING
THEIR DUE TAXES AND THEIR
BURDEN, BUT THEY WILL ALSO BE
THE ONE PAYING THE COST OF ANY
CUTS TO SERVICES AT THE SAME
TIME, AND SO IT'S ALMOST A
PARADOX OF THEY'RE PAYING INTO A
SYSTEM THAT DOESN'T INVEST IN
THEM. AT THE SAME TIME, THE MEGA
MEGA RICH OF CALIFORNIA WHERE
THEY'RE MORE BILLIONAIRES AND
MORE MEGA MILLIONAIRES IN
CALIFORNIA TODAY. THEN EVEN WHEN
WE STARTED THE PANDEMIC, THEY'RE
CONTINUING TO GET RICHER AND
RICHER. CONTINUE TO GET RICHER.
THEY'RE GOING ME AND ME GETTING
RICHARD LITTLE SLOWLY, BUT THEY
STILL ARE WHILE THERE IS A
INCOME DIVIDE OR WEALTH DIVIDE
THAT IS SO VAST AND I KNOW IN
THE BUDGET THERE IS A REVENUE
SOLUTIONS. IT'S ONLY $400
MILLION, WHICH IS JUST
CONFORMING US TO NET OPERATING
LOSS THAT MANY OTHER STATES ARE
FINALLY DOING. BUT I HOPE THE
ADMINISTRATION WILL PURSUE OTHER
REVENUE SIDE. SOLUTIONS BECAUSE
THE EXAMPLE I'M GIVING ABOUT
AVERAGE CALIFORNIANS IS THAT YES
, WE HAVE HIGH COSTS HIGH
BURDENS, BUT WE DON'T SAY FOR
FIVE YEARS WHEN THERE'S BUDGET
WHEN OUR OWN PERSONAL BUDGETS ON
CERTAIN WE'RE JUST GONNA STOP
EATING FOR FIVE YEARS. WE DON'T
DO THAT. WE SAY WE'RE GOING TO
FIGHT FOR BETTER WAGES. WE'RE
GONNA GET A BETTER JOB OR FIGHT
FOR BETTER CONDITIONS, AND
THAT'S WHAT MANY MANY
CALIFORNIA'S DOING AVERAGE
CALIFORNIA DOING. SO I THINK IT
IS VERY UNFAIR FOR THE STATE TO
NEVER LOOK AT REVENUE OPTIONS,
SO I HOPE THEY WILL LOOK AT
PERHAPS MAYBE A WEALTH TAX ON
BILLIONAIRES RESTORING THE
CORPORATE TAX RATE PRE TRUMP ERA
OR OTHER TAX BREAKS OR EVEN
OTHER THINGS WHERE WE'RE JUST
SHELLING OUT MONEY TO
CORPORATIONS AND RICH PEOPLE,
BECAUSE THOSE THINGS STILL EXIST
IN THIS BUDGET, SO AS MANY OF MY
COLLEAGUES TALK ABOUT PRESERVING
THE ESSENTIALS OF THIS BUDGET, I
HOPE YOU ALSO LOOK AT THE THINGS
THAT ARE SHINY AND NOT
ESSENTIAL, ESPECIALLY WE GIVE TO
THOSE WHO HAVE EVERYTHING
ALREADY. THANK YOU. THANK YOU SO
MUCH MEMORY LATELY WE'LL GO TO,
UH, ASSEMBLYMEMBER'S BONTA AND
THEN ASSEMBLYMEMBER'S ASTLEY.
THANK YOU SO MUCH CHAIR. I WANT
TO APPRECIATE THE D O. F AND
ELIO FOR PUTTING TOGETHER THIS
ANALYSIS. MY COMMENTS ARE
LARGELY GOING TO ALIGN WITH, UH
ASSEMBLYMEMBER'S JACKSON AND
ASSEMBLY MEMBER, DR WEBBER ON
ISSUES RELATED TO HEALTH. ONE
ISSUE THAT IS CONTINUES TO
PERPLEX ME IS AH, HOW WE FACTOR
IN OPPORTUNITY COSTS ASSOCIATED
WITH SOME OF THE CUTS THAT WE
SUGGEST, PARTICULARLY AS IT
RELATES TO OUR WORKFORCE. UM WE
HAVE IN THIS BUDGET PROPOSAL
INDICATED A DELAY OF $189.4
MILLION FOR MENTAL HEALTH
SERVICES. UM A DELAY OF $140.1
MILLION FOR NURSING AND SOCIAL
WORK INITIATIVES. WHEN WE KNOW
WE HAVE REALLY UNDER INVESTED IN
THE INFRASTRUCTURE, THE
WORKFORCE PIPELINE
INFRASTRUCTURE. RELATED TO THAT
WE NEED IN ORDER TO BE ABLE TO
SUPPORT MANY OF THE BEHAVIORAL
HEALTH AND MENTAL HEALTH
PROGRAMS THAT WE'VE OUTLINED. SO
IT SEEMS TO ME LIKE WE SHOULD
ACTUALLY BE TAKING THIS TIME TO
INVEST IN THOSE PROGRAMS THAT
ARE GOING TO PROVIDE WORKFORCE
IN THE HEALTHCARE SPACE FOR US
ALONG WITH ENSURING THAT WE ARE
INCREASING THE REIMBURSEMENT
RATES FOR MEDICAL. I'M ALSO
WANTING TO MAKE SURE THAT WE
LIVE TRUE TO OUR COMMITMENT IN
SP 525 TO RECOGNIZE AND SUPPORT
OUR HEALTHCARE WORKERS WITH A
LIVING WAGE. I LOOK FORWARD TO
WORKING WITH THE ADMINISTRATION
TO IMPLEMENT THE LAW THAT WE
REALLY WORKED HARD TO, UH, BRING
TO A VICTORY IN THE LAST LATEST
CYCLE FOR HEALTHCARE WORKERS AND
OUR HEROES WHO ARE FRONTLINE
WORKERS, AND I THINK IT WOULD BE
AN INCREDIBLY UH, MOVE IN
BACKWARDS IF WE ACTUALLY DON'T
INVEST IN THE ENTIRETY OF OUR
HEALTHCARE WORKFORCE, BECAUSE WE
NEED PEOPLE, NURSES, SOCIAL
WORKERS BEHAVIOR HEALTH
SPECIALISTS TO BE ABLE TO
PROVIDE THE HEALTH CARE THAT WE
KNOW THAT WE ARE COMMUNITY
DESERVES. I ALSO WANT TO JUST
POINT OUT THAT, UH, LARGELY,
WHAT WE TALK ABOUT IS SPENDING
AND CUTTING SPENDING AND
CUTTING. RARELY DO WE ACTUALLY
TALK ABOUT RECOGNIZING COST
EFFICIENCIES? I JUST WANTED TO
OUTLINE ONE PARTICULAR PROGRAM
THAT I'VE BEEN ABLE TO DO A
LITTLE BIT OF A DEEPER DIVE IN
AROUND SKILLED NURSING
FACILITIES. SKILLED NURSING
FACILITIES. ONE OPERATOR CAN
ACTUALLY HAVE TO DEAL WITH AND
NEGOTIATE OVER 25 DIFFERENT
AGENCIES IN, UH, IN THE
REGULATORY FRAMEWORK TO BE ABLE
TO ENGAGE IN THEIR BUSINESS 25
DIFFERENT AGENCIES THAT STATE
MONEY TAXPAYER MONEY THAT WE'RE
SPENDING TOO REGULAR TO REGULATE
ONE OPERATOR WHICH CERTAINLY IS
NEEDED, BUT HOW ARE WE
RECOGNIZING THAT IN ENSURING
THAT OUR AGENCIES AND THE
FUNDING THAT WE'RE SPENDING TO
THEM IS NOT ACTUALLY TAKING OVER
OUR ABILITY TO PROVIDE QUALITY
HEALTH CARE, UM AT THE AT THE
LOCAL LEVEL, MUCH IN THE SAME
WAY THAT ARE MY COLLEAGUES
TALKED ABOUT MAKING SURE THAT
WE'RE NOT MAKING CUTS TOO CLOSE
TO THE CLASSROOM. I DON'T THINK
THAT WE SHOULD BE MAKING CUTS
TOO CLOSE TO THE PATIENT AND THE
AND THE PERSON THAT DESERVES
CARE. I WANTED TO MOVE OVER NEXT
TO IT. SHE RELATED TO BROADBAND
THAT MY COLLEAGUE
ASSEMBLYMEMBER'S QUIRK-SILVA
RAISED. I'M VERY THANKFUL THE
ADMINISTRATION IS GOING TO
COMMIT TO PROVIDING BROADBAND TO
THE NEEDIEST AND MOST
UNDERSERVED PARTS OF CALIFORNIA
BY PRIORITIZING THE LAST OF
MIDDLE MILE FUNDING. IT IS AN
AGREEMENT AND A COMMITMENT THAT
BUT THE ADMINISTRATION HAS MADE
THAT I'M VERY SUPPORTIVE OF I AM
CONCERNED, HOWEVER, OF THE
BROADBAND LOSS RESERVE FUND
BEING REDUCED AND WANT TO AT
SOME POINT CERTAINLY THAT
COMMITTEE UNDERSTAND HOW WE ARE
GOING TO ADDRESS THE CHALLENGES
OF REDUCING THAT THAT
INFRASTRUCTURE A LOT OF THE
FUNDING THAT WE ARE ABLE TO HAVE
RIGHT NOW. WITHIN THE BROADBAND
SPACES US IN OUR ABILITY TO
LEVERAGE FEDERAL FUNDING. WHICH
SPEAKS TO THE INCREASE IN
FUNDING THAT, UH, MY COLLEAGUE
SPOKE TO, BUT IT IS ABSOLUTELY
CRITICAL THAT CALIFORNIA DOES
ITS FAIR SHARE AND ENSURES THAT
WERE, UM, NOT CONTINUING TO
ISOLATE URBAN ENDS AND. AND
RURAL COMMUNITIES UNDERSERVED
AND UNSERVED COMMUNITIES IN SO
DOING SO, I'M HOPEFUL THAT WE
WILL CONTINUE TO LIVE TRUE TO
OUR COMMITMENT RELATED TO THE
MIDDLE MILE. THE NEXT WANTED TO
TURN MY COMMENTS OVER TO, UH,
OUR WAS THANKFUL TO BE ABLE TO
CHAIR BUDGETS OF FIVE LAST YEAR
AND SO STILL VERY MUCH, OR I
GUESS NOW. I DON'T KNOW THE
NUMBERS ANYMORE. SIX AH RELATED,
BUT I DID PUBLIC SAFETY, BUT I
DID WANT TO JUST POINT OUT THAT
WE HAVE A GREAT OPPORTUNITY.
STILL, UH, WE SAW IN TODAY. CAL
MATTERS ARTICLE THAT WE'VE SEEN
A DRAMATIC INCREASE IN INMATES
SPENDING THROUGH THE WE ARE
EXPERIENCING THIS INCREDIBLE
DEFICIT. WE KNOW THROUGH THIS
ARTICLE AND THROUGH THE RESEARCH
AND THE WORK THAT WE DID LAST
YEAR IN THE BUDGET SUBCOMMITTEE
THAT THE COST OF IMPRISONING ONE
PERSON HAS REACHED A RECORD
HIGH, UH, 132,860 ANNUALLY, AND
THIS IS A SIGNIFICANT JUMP OVER
90% IN THE PAST DECADE. SAME
ARTICLE ALSO TALKS ABOUT THE
FACT THAT IT'S TWICE AS
EXPENSIVE. AH TO AS THE ANNUAL
UNDERGRADUATE TUITION OF $66,640
IN THE U. S. C. IN OUR
UNIVERSITY SYSTEM, AND IT'S AND
THAT'S THE MOST COSTLY PRIVATE
UNIVERSITY. SO I NEED TO MAKE
SURE THAT WE'RE FOCUSING ON WHAT
IS DRIVING THOSE COSTS. IT'S
CERTAINLY ISN'T INVESTMENT IN
REHABILITATION AND RE ENTRY
BECAUSE WE KNOW THAT WE'RE
SPENDING LESS THAN 5% OF OUR
BUDGET ON REHABILITATION REENTRY
IN OUR IN OUR CDCR FUNDS, UH AND
WE KNOW THAT WE HAVE SEVERAL
FAILING FACILITIES AND WE ARE
INVESTING ESSENTIALLY IN
BUILDINGS AND NOT PEOPLE. AGAIN
LET'S MAKE SURE THAT WE'RE
SPENDING OUR MONEY WISELY AROUND
THE THINGS THAT WE KNOW IT WILL
ACTUALLY LEAD TO, UH, LOWER
RECIDIVISM RATES, GREATER PUBLIC
SAFETY AND THAT IS AN AREA WHERE
IT WOULD BE INCREDIBLY UM.
DISINGENUOUS OF US AS A BODY IF
WE DON'T ACTUALLY SAY THAT WE'RE
PRIORITIZING PEOPLE WHEN WE'RE
SPENDING SO MUCH OF OUR MONEY ON
FAILING FACILITIES INSTEAD OF
ENSURING THAT WE'RE TAKING CARE
OF EVERYBODY IN WHEREVER THEY
ARE TO ENSURE THAT WE HAVE GOOD
NEIGHBORS COMING BACK TO US. AND
FINALLY I WANTED TO JUST FOCUS
IN A LITTLE BIT, AND THIS IS A
I'LL END WITH A QUESTION THAT I
HOPE WE HAVE AN OPPORTUNITY TO
END RESPOND TO IF NOT IN THIS
COMMITTEE IN OTHERS. I'M VERY
THANKFUL IN THE SPACE OF EARLY
CHILDCARE. THAT WE'VE MADE
CONTINUE TO OFFER A PRIOR YEAR
COMMITMENTS OF 146,000 NEW
CHILDCARE SLOTS WITH A GOAL FROM
THE 2122 BUDGET ACT TO SERVE
200,000 NEW CHILDREN BY 2026 TO
2027. HOWEVER I WANT TO MAKE
SURE THAT WE ARE COMMITTED TO
MAINTAINING THE FORMULARY THAT
WOULD ALLOW US TO ENSURE THAT WE
ARE PROVIDING THE TOTAL COST OF
CARE. WE CANNOT ENTER INTO ANY
KIND OF BAIT AND SWITCH WHERE
WE'RE SAYING THAT WE'RE
CONTINUING TO PROVIDE THE NUMBER
OF CHILDCARE SLOTS THAT WE NEED
IN ORDER TO BE ABLE TO PROMOTE
OUR ECONOMY, QUITE FRANKLY, AS
WELL AS EDUCATING AND SUPPORTING
OUR YOUNG PEOPLE. UH, BUT WE
CAN'T DO THAT ON THE BACKS OF
OUR WORKERS AND OUR PROVIDERS.
AND IT WOULD BE DISINGENUOUS
OFFICE AGAIN IF WE ARE NOT
ACTUALLY ENSURING THAT WE ARE
MOVING TOWARDS TOTAL COST OF
CARE. SO ON THAT ONE, I KNOW
THAT WE ARE OUT OF TIME. IT WAS
THE ONE BIG QUESTION THAT I
WANTED TO MAKE SURE, UH, FROM
THE PANELISTS THAT WE ARE MAKING
SURE TO LIVE TRUE TO OUR
COMMITMENT AND MAKING IN IN OUR
IN OUR FORMULARY, SO I KNOW THAT
WE DON'T HAVE TIME FOR THAT
QUESTION. I WILL ASK IT AGAIN.
IN A DIFFERENT COMMITTEE. WITH
THAT. THANK YOU VERY MUCH. THANK
YOU VERY MUCH FOR SOMEBODY WANT
TO. I JUST WANT TO TAKE A MOMENT
TO ACKNOWLEDGE ASSEMBLYMEMBER'S
MCCARTY, WHO HAS VERY GENEROUSLY
AGREED TO, UH, SHARE HIS
COMMENTS AT A LATER DATE, BUT
WE'RE GRATEFUL TO HAVE HIM ON
THE COMMITTEE AND LOOK FORWARD
TO HIS WISDOM AND EXPERIENCE
THAT I KNOW THAT HE WILL SHARE
WITH ALL OF US. UM I KNOW THAT
SOME MEMBERS ARE GOING TO HAVE
TO START LEAVING, UH, THE VICE
CHAIR AND I ARE GOING TO STICK
AROUND A LITTLE BIT AFTER 12 SO
THAT WE CAN HAVE SOME PUBLIC
COMMENT AND HAVE OPPORTUNITIES
FOR THAT. WITH THAT WE'RE GOING
TO GO TO ASSEMBLYMEMBER'S SALIH,
WE'LL GO TO MR RAMOS, MR FONG,
AND THEN WE'LL HAVE
OPPORTUNITIES FOR THE COMMENT.
THANK YOU, MR CHAIR. I WILL BE
EFFICIENT GIVEN OUR TIME
CONSTRAINTS, THE GOVERNOR HAS
TOUTED HIS EXPANDED EFFORTS TO
COMBAT ORGANIZED RETAIL THEFT AS
PART OF HIS REAL PUBLIC SAFETY
PLAN, INCLUDING NEW EXPENDITURES
IN THE PROPOSED 2425 BUDGET FOR
LOCAL LAW ENFORCEMENT AND STATE
RESOURCES. HE ALSO MADE A VERY
PUBLIC ANNOUNCEMENT ON JANUARY.
9TH OF 2024 TITLE GOVERNOR
NEWSOM CALLS FOR LEGISLATION
CRACKING DOWN ON PROPERTY CRIME
I DO COMMEND THAT HE
SPECIFICALLY SAID HE'S CALLING
FOR NEW LEGISLATION TO EXPAND
CRIMINAL PENALTIES FOR THOSE
PROFITING ON RETAIL THEFT AND
AUTO BURGLARIES. AND HE
SPECIFICALLY CALLED FOR
INCREASING FELONY PENALTIES AND
PRISON TIME. MY QUESTION TO THE
GOVERNOR'S OFFICE IS CONSIDERING
THAT THE PRISONS ARE OVER
CAPACITY ARE CURRENTLY 117% OF
DESIGN CAPACITY DOES THE BUDGET
CREATE ANY NEW CAPACITY TO
DESCEND THESE CRIMINALS TO
PRISON. WHERE ARE THEY GOING TO
GO? UM I THINK THAT QUESTION IS
TWO FOLD AND OBVIOUSLY LOOKING
AT PUBLIC SAFETY ON THE ONE END,
AND THEN I THINK YOUR QUESTION
ABOUT THE RESULTS. WHAT? WHAT
HAPPENS ON ON THE BACK END? UM
AND I WILL TURN MY COMMENTS OVER
. TO COLLEAGUES IN REGARDS TO
CAPACITY. UM BUT WE DO HAVE THE
GOVERNOR IS COMMITTED TO
CRACKING DOWN ON, UM, RETAIL
THEFT. UM HE'S INVESTED IN
CERTAIN PROGRAMS OVER THE YEARS
TO HELP LOCALS AND SUPPORT
LOCALS IN DOING THAT, UM, BUT I
WILL TURN OVER. MY COLLEAGUE
LYNN. WHEN ISHIMOTO DEPARTMENT
OF FINANCE SIDE THERE'S NO
ADDITIONAL CAPACITY INCLUDED,
AND IN FACT, WE'RE WORKING TO
CLOSE PRESIDENTS EVEN THOUGH WE
ARE OVER 100% THE DEPARTMENT IS
ALLOWED TO GO UP TO 137.5% OF
DESIGN CAPACITY. OKAY SO DESPITE
CALLING FOR AN INCREASE IN
PENALTIES, THE BUDGET STILL
PROJECTS THE CLOSURE OF TWO
PRISONS. I UNDERSTAND CAL CITY
PRISON AND CHECK A WALLA VALLEY
PRISON. IS THAT CORRECT? YES
THAT'S CORRECT. SO THERE'S NO
PLANS TO ADD CAPACITY. UM AND
THEN I JUST WANT TO MAKE SURE
YOU GUYS ARE AWARE I TALKED TO
MY COUNTY SHERIFF'S ALL THE
TIME. MY COUNTY SHERIFF ALL THE
TIME. UM ALL THESE PROPOSALS WE
HAVE TO INCREASE PENALTIES AND
MISDEMEANORS. MY SHERIFF TELLS
ME HE ONLY HAS 4000 BEDS AT THE
COUNTY LEVEL. EVERY SINGLE BED
IS OCCUPIED BY SOMEONE WHO'S
COMMITTED A CRIME AGAINST
ANOTHER PERSON ASSAULT. BATTERY.
RAPE. IT DOES NOT HAVE ANY
CAPACITY FOR PROPERTY CRIMES. SO
MY CONCERN IS WHILE WE'RE
CALLING FOR ADDITIONAL
PUNISHMENT, THERE'S NOWHERE FOR
THESE CRIMINALS TO GO. AND SO,
UM I JUST REALLY WANT TO MAKE
SURE WE HONE IN AND FOCUS ON
THAT BECAUSE JUST GIVING SOMEONE
A CONVICTION DOESN'T PROVIDE
SUFFICIENT DETERRENCE OR
PUNISHMENT. I'LL MOVE ON TO
ACCESS TO HEALTH CARE, BECAUSE I
THINK THERE'S A REALLY, REALLY
CRITICAL ISSUE. UM I'M SURE
YOU'RE AWARE COMBINED MEDICARE
AND MEDICAL PAYS ONLY 75 CENTS
FOR EVERY DOLLAR COST OF CARE
FOR PATIENTS. 52% OF CALIFORNIA
HOSPITALS LOSE MONEY EVERY
SINGLE DAY. THEY OPERATE. ONE
OUT OF FIVE OF OUR HOSPITALS IS
AT RISK OF CLOSURE. THEY'RE
GOING TO GO BANKRUPT. SO MY
QUESTION IS, AND I THINK YOU'VE
YOU'VE SORT OF ANSWERED IT.
DESPITE THE, UH INSOLVENCY OR
PROJECTED INSOLVENCY OF OUR
HEALTH CARE SYSTEM. THE GOVERNOR
INTENDS TO FUND 3.4 BILLION TO
PROVIDE HEALTH CARE FOR ILLEGAL
IMMIGRANTS. IS THAT CORRECT?
INCLUDED IN THE BUDGET AND
MAINTAINED IN THE BUDGET IS THE
EXPANSION OF MEDICAL TO ALL
POPULATIONS. CONCERN IS I MEAN,
I'D LOVE TO PROVIDE HEALTH CARE
TO EVERYONE. WE JUST CAN'T
AFFORD IT. IS THERE ANY LIMIT TO
HOW MANY PEOPLE CAN SIGN UP FOR
THIS NEW PROGRAM? IT'S AN
ENTITLEMENT. SO IF A MILLION
PEOPLE CROSS THE BORDER TOMORROW
AND COME SIGN UP FOR MEDICAL CAN
THEY DO THAT? UM WE HAVE
FORECASTED THE NUMBER THE
CASELOAD ESSENTIALLY EVERY YEAR
AND WE DO THAT, UM AND WE WILL
CONTINUE TO DO THAT. I'M GOING
FORWARD IN REGARDS TO
ELIGIBILITY. UM I DON'T BELIEVE
THERE IS ANY REQUIREMENT OR LACK
OF REQUIREMENT THAT THAT'S MY
CONCERN IS THERE'S NO LIMITS,
AND IT'S GOING TO CREATE AN
INCENTIVE. WE HAD 300,000 PEOPLE
CROSS THE BORDER ILLEGALLY LAST
MONTH IN DECEMBER, UM THAT'S
ONLY GETTING WORSE. IT'S NOT
GETTING BETTER. AND IF ALL THOSE
PEOPLE DECIDE TO COME TO
CALIFORNIA AND SIGN UP FOR
MEDIC, AL, IT'S GOING TO
BANKRUPT THE SYSTEM. AND MORE
IMPORTANTLY, I HEAR FROM MY
CONSTITUENTS WHO HAVE MEDICAL.
THEY CAN'T GET DOCTOR'S
APPOINTMENTS. THEY'RE HAVING A
HARD TIME GETTING PROCEDURES ARE
SEEING SPECIALISTS THAT THEY
NEED AND UH, MY QUESTION TO THE
GOVERNOR'S OFFICES IS ADDING
700,000 NEW PATIENTS INTO
MEDICAL GOING TO HELP THE
SYSTEM. I'M SORRY. I MISSPOKE
BEFORE IN REGARDS TO THERE'S
OBVIOUSLY INCOME ELIGIBILITY
REQUIREMENTS FROM AN ACCOUNT SO
I WOULD I WOULD POINT TO THAT.
UM THIS GOVERNMENT THIS GOVERNOR
, THIS LEGISLATURE HAS BEEN
COMMITTED TO EXPANDING MEDICAL
AND I THINK WE NEED TO CONTINUE
HAVING THOSE DISCUSSIONS ABOUT
COSTS AND HOW COSTS ARE BEING
DRIVEN UP. UM GOING FORWARD,
OBVIOUSLY, AS WELL AS WE HAVE
DISCUSSED, UM, THE OUT YEARS
THAT THIS IS THIS IS A PROGRAM
THAT, UM WE NEED TO CONTINUE TO
SUPPORT. UM AND FIGURE OUT HOW
WE'RE GONNA DO THAT. CAN YOU
LOOK CALIFORNIANS IN THE EYE AND
TELL THEM THAT ADDING 700,000
ILLEGAL IMMIGRANTS UNDER MEDICAL
IS GOING TO IMPROVE THEIR ACCESS
TO HEALTHCARE? THE CITIZENS, THE
PEOPLE PAYING TAXES. IS IT GOING
TO APPROVE THEIR ACCESS TO
HEALTHCARE? UM AGAIN, THIS BODY
HAS COMMITTED TO THE MEDICAL
EXPANSION AND WE REFER TO HAVING
MORE CONVERSATIONS. THANK YOU.
ALL RIGHT. THANK YOU. WE'RE NOT
GOING TO GO TO MR RAMOS. THANK
YOU. THANK YOU, MR CHAIR. AND
THANK YOU FOR ALL YOUR HARD WORK
OF WORKING ON THIS BUDGET. WE
KNOW THERE'S SOME, UM, DIFFERENT
DISCUSSIONS. TOUGH DISCUSSIONS
THAT'S GOING TO COME OUR WAY AND
WE WERE OPEN TO THAT
COMMUNICATION AND MOVING
FORWARD. SO THANK YOU FOR ALL
THE WORK THAT YOU'VE DONE. AND
AS THE REPRESENTATIVE OF
CALIFORNIA'S FIRST PEOPLE, UM,
HERE IN THE STATE OF CALIFORNIA,
WE KNOW THE ISSUE OF PEOPLE IN
THIS AREA AND I THINK THAT WE
HAVE TO BE OPEN IN THE STATE OF
CALIFORNIA TO START TO ADDRESS
ALL THE ISSUES THAT ARE THERE
ONE OF THE AREAS THAT WE'RE
GONNA BE FOCUSING ON AS A SUB
CHAIR OF PUBLIC SAFETY. IS
CONTINUING TO BRING ATTENTION
AND RESOURCES TO THE MISSING AND
MURDERED NATIVE AMERICAN WOMEN,
NATIVE AMERICAN PERSONS HERE IN
THE STATE OF CALIFORNIA, WHERE
CALIFORNIA IS STILL IS MOVING IN
THE WRONG DIRECTION AS NUMBER
FIVE OF ALL STATES NOT
INVESTIGATING ARE BRINGING
REMEDY TO THOSE AREAS. WE ALSO
ARE GOING TO LOOK AT VICTIMS
SERVICES. WE KNOW THAT THERE'S
POTENTIALLY SOME CUTS THAT WILL
BE THERE, SO WE'RE OPEN TO START
DISCUSSION OR FIND OUT IF
THERE'S ANY REMEDIES TO THAT. UM
BUT ALSO WITH RETAIL THEFT
WITHIN THE 2022 BUDGET ACT, 37
370 MILLION, UM, WAS ALLOCATED
FOR THAT. AND OUR LAW
ENFORCEMENT PARTNERS JUST
RECEIVED JUST RECENTLY. 240
MILLION OF THOSE RESOURCES THIS
PAST FALL. OUR HEARINGS WILL
FOCUS. WE HAVE A HEARING THAT
WILL FOCUS CLOSELY ON HOW THAT
FUNDING IS PLANNED AND HOW IT'S
BEING USED TO FULFILL ITS INTENT
AND PURPOSES. SO THIS IS JUST A
PREVIEW OF WHAT IT IS THAT SUB
SIX WILL BE MOVING FORWARD IN
AND GETTING INTO DIALOGUE DEEPER
IN. I ALSO INTEND TO FOCUS ON
YOUTH. OUR YOUTH WHO ARE AT RISK
OF FALLING INTO THE JUSTICE
SYSTEM. TOO OFTEN, THE RESOURCES
ARE FOCUSED AT THE END OF THE
RESULT, RATHER THAN ALSO LOOKING
AT PREVENTION, UM AHEAD OF TIME
WITHIN OUR YOUTH COMPONENTS THAT
ARE THERE. WE ALSO WANT TO LOOK
AT THE FISCAL CLIMATE WHERE
DECISIONS MAY IMPACT THE MOST
VULNERABLE CALIFORNIANS. I
INTEND TO FOCUS OUR
RESPONSIBILITY, OVERSIGHT OF
STATE SPENDING AND PUSHING FOR
ACCOUNTABILITY, GREATER
EFFICIENCY AND IMPROVED OUTCOMES
AGAIN. I LOOK FORWARD TO WORKING
WITH THE OPEN DIALOGUE AND OPEN
COMMUNICATION TO ADDRESS THESE
AND OTHER ISSUES FACING THE
STATE OF CALIFORNIA. THANK YOU
VERY MUCH. MR RAMOS. APPRECIATE
THAT WILL GO LAST, CERTAINLY NOT
LEAST TO REMEMBER WHO IS KNOWN
FOR HIS PATIENTS AND ALSO HIS
KINDNESS. THANK YOU VERY MUCH.
REMEMBER FONG, THANK YOU SO
MUCH. MR CHAIRMAN AND MEMBERS
AND GOOD AFTERNOON, EVERYONE.
THANK YOU SO MUCH FOR WORKING
EFFORTS ON THE BUDGET. WE KNOW
IT'S BEEN CHALLENGING BUDGET
TIME, BUT I REALLY APPRECIATE
ALL THE COMMENTS OF MY
COLLEAGUES UNTIL EVERYONE HERE.
IN ADDITION TO ACCESS FOR HIGHER
EDUCATION, WE KNOW THAT QUALITY
EDUCATION SO CRITICAL TO THE
FUTURE SUCCESS OF CALIFORNIA.
NOT ONLY DID DO WE NEED MORE
GRADUATES AT FOUR YEAR DEGREES.
WE ALSO NEED WERE GRADUATES WITH
TECHNICAL SKILLS TO HELP FILL
THE STAFF SHORTAGES ACROSS
MULTIPLE INDUSTRIES AND SECTORS
AND I'M GRATEFUL TO SEE THE
GOVERNOR'S PROPOSAL FOR $60
MILLION.06 SPEND NURSING
PROGRAMS IN OUR COMMUNITY
COLLEGES. BUT ALSO AREAS OF
CONCERN AND I'D LIKE TO BRING UP
AT THIS TIME AS WELL. YOU HEARD
FROM MR ALVAREZ OR SOME MY
COLLEAGUES. THE HOUSING IS
CRITICAL AND STUDENT HOUSING. AS
A FORMER TRUSTEE FOR THE LOS
ANGELES COMMUNITY COLLEGE
DISTRICT, A CITY SHOWED THAT ONE
OUT OF FIVE STUDENTS EXPERIENCE
HOMELESSNESS OR HOUSING AND
SECURITY IN THE PRIOR YEAR, AND
STUDENT HOUSING AND HOUSING IS
SO CRITICAL FOR HELPING OUR
STUDENTS SUCCEED. AND SO I URGE
ALLOCATION OF FUNDING HELP
KICKSTART THE STUDENT. HOUSING
REVOLVING LOAN FAN, AND THAT'S
SOMETHING THAT, UM, WHEN THEY
CONTINUE TO ADVOCATE FOR AND TO
BRING UP SECONDLY, IN TERMS OF
CALDERON REFORM WITH MY
COLLEAGUES AND MANY FOLKS HERE
WITH THE PROGRAM REFORM AND THE
COMMITTEE'S HARD WORK AND
EFFORTS ON THIS PROGRAM REFORM
CAN TRANSFORM AND HELP EXPAND
ACCESS TO OVER 130,000 STUDENTS,
PARTICULARLY IN OUR COMMUNITY
COLLEGES, AND THIS IS SOMETHING
THAT I THINK I DON'T WANT TO
LOSE THE MOMENTUM ON IN TERMS OF
CALDERON REFORM AND TO EXPAND
ACCESS THERE, AND SO THIS IS
SOMETHING I WANNA, UH AMPLIFY
AND TO BRING UP AS WELL AS TO
NEVER EARLY WHO'S THAT MOMENTUM
TO EXPAND ACCESS FOR OUR
STUDENTS HERE IN CALIFORNIA? AND
REALLY LOOK FORWARD TO FUTURE
DISCUSSIONS WITH OUR COMMITTEES
AND MY COLLEAGUES AND THANK YOU
SO MUCH AGAIN. IT'S A CHAIR FOR
THE OPPORTUNITY, AND I LOOK
FORWARD TO WORKING WITH YOU AND
COLLEAGUES GOING FORWARD. THANK
YOU. THANK YOU VERY MUCH.
ASSEMBLYMEMBER'S APPRECIATE THAT
. I'M JUST GONNA BE EXTREMELY
BRIEF IN MY COMMENTS, AND I LOOK
FORWARD TO CONTINUING
OPPORTUNITIES TO HAVE
CONVERSATIONS BOTH WITH OUR
PANELISTS. BUT MORE IMPORTANTLY
AMONG THE MEMBERS OF THE
COMMITTEE HERE AS WE LOOK TO
CRAFT A BUDGET THAT WE CAN WORK
ON AND WORK ON IN CONNECTION
WITH OUR COLLEAGUES IN THE
SENATE, AND ALSO WITH OUR
PARTNERS IN THE GOVERNOR'S
OFFICE, AS I DID MENTION VERY
BRIEFLY. I AM CONCERNED ABOUT
SOME OF THE THEIR REDUCTIONS TO
MONEY FOR HOUSING AND
HOMELESSNESS, AND PARTICULARLY
AS I THINK ASSEMBLYMEMBER'S
ZABAR POINTED OUT THINGS THAT
ARE GOING TOWARDS HOMELESSNESS
PREVENTION RIGHT AND BOTH THE
MORAL IMPERATIVE OF INVESTING IN
THAT AND KEEPING FOLKS HOUSE BUT
ALSO THE ECONOMIC BENEFITS THAT
WE CAN REAP AND MORE MORE, I
THINK, UH, INTERVENTIONS THERE
THAT MIGHT COST A LITTLE ON THE
FRONT END, BUT SAVE US A LOT OF
MONEY ON THE BACK END, SO I'M
LOOKING FORWARD TO CONVERSATIONS
ABOUT HOW WE CAN EVALUATE THE
PROGRAMS IN THE HOUSING AND
HOMELESSNESS SPACE. HOW WE CAN
DETERMINE WHAT'S REALLY MOVING
THE NEEDLE FOR CALIFORNIANS. WE
KNOW THIS IS A TOP PRIORITY FOR
COMMUNITIES UP AND DOWN THE
STATE OF CALIFORNIA AND THAT
THIS IS SOMETHING THAT WE NEED
TO LOOK AT. AND YOU'VE HEARD
ABOUT, I THINK FOR MYSELF, BUT
ALSO FROM A LOT OF OUR MEMBERS
ABOUT THE INTEREST IN
EFFICIENCY, ACCOUNTABILITY,
MAKING SURE THAT WE ARE GETTING
R O I FROM OUR INVESTMENT, SO
THAT'S AN AREA THAT I CERTAINLY
WANT TO DIG IN ON WITH THE
ADMINISTRATION AND ALSO WITH
FOLKS HERE ON THIS COMMITTEE,
AND I KNOW THAT EVEN IN SOME OF
THE INITIAL CONVERSATIONS WE'VE
HAD AS AN ASSEMBLY DEMOCRATIC
CAUCUS. THERE'S A LOT OF CONCERN
ABOUT THAT. UH AND FOLKS WANT TO
DIG IN THERE AS WELL. THE SAME
THING I DID JUST WANT TO MENTION
IS I APPRECIATE, UM, THE
BEGINNINGS OF A CONVERSATION
ABOUT HOW WE'RE BEING MORE
STABILITY AND CERTAINTY TO OUR
BUDGET PROCESS. I APPRECIATED
WHAT THE GOVERNOR SAID ABOUT
LOOKING AT POTENTIAL REFORMS TO
PROPOSITION TO. I THINK THAT'S A
REALLY IMPORTANT CONVERSATION TO
PUT OUR STATE ON A LONG TERM
PATH TO SUCCESS. AND SO I WANT
JUST WANTED TO KNOW THAT THERE
ARE I'VE HEARD THAT ALSO FROM
MEMBERS OF THE OF THE OF THE
ASSEMBLY, AND SO I THINK THERE
ARE PARTNERS IN THE LEGISLATURE
THAT ARE INTERESTED IN THAT
CONVERSATION THAT WANT TO BE
PART OF IT. UM, AND THAT WE CAN
WORK TOGETHER ON THAT BECAUSE
THAT IS A VERY IMPORTANT EVEN
EVEN AS WE'RE IN THIS MOMENT
WHERE WE NEED TO FOCUS ON THE
SHORT TERM AND ON, UH, YOU KNOW,
ADDRESSING THE SHORTFALL WE HAVE
IN FRONT OF US ADDRESSING THESE
$30 BILLION PROJECTED DEFICITS
THAT WE HAVE IN THE NEXT COUPLE
OF YEARS. ALSO STARTING THAT
CONVERSATION ABOUT HOW DO WE SET
OURSELVES UP FOR LONG TERM
SUCCESS IN TERMS OF MORE
CERTAINTY? UM, IN OUR BUDGET
PROCESS. AND THEN I THINK, AS WE
SAW HERE WITH WITH
ASSEMBLYMEMBER'S PATTERSON, IT'S
A MOMENT AND THIS IS FOR
EVERYBODY FOR THE MEMBERS AND
FOR EVERYBODY TO THINK ABOUT.
IT'S A MOMENT OF RECALIBRATION
OF EXPECTATIONS. AND I THINK
FOLKS NEED TO, UM, REALLY START
TO GRAPPLE WITH, UH, AGAIN. WE
HAVE A SIGNIFICANT SHORTFALL. WE
DON'T KNOW WHAT THE EXTENT OF
THAT SHORTFALL IS. BUT THERE'S
REALLY, UM YOU KNOW, A LOT OF
UNCERTAINTY BAKED IN THERE AS
WELL ABOUT HOW MUCH WORSE THIS
COULD POTENTIALLY GET, AND I
THINK IT'S IMPORTANT THAT WE'RE
ALL OF US ARE HONEST WITH
OURSELVES ABOUT THE MAGNITUDE OF
THE CHALLENGE THAT WE'RE FACING,
AND I APPRECIATE THE COMMENTS
ABOUT ACTING PRUDENTLY ACTING
THOUGHTFULLY THINKING ABOUT HOW
WE ADDRESS THE CHALLENGES WE
HAVE NOW, BUT ALSO KNOWING THAT
THOSE CHALLENGES EVEN IF WE
IMPLEMENTED ALL OF THE PROPOSED
SOLUTIONS IN THE GOVERNOR'S
BUDGET. WHICH ARE CERTAINLY
THINGS THAT WILL DISCUSS AND
TALK ABOUT AND LEARN MORE ABOUT.
THERE'S MORE WORK TO BE DONE
ABOUT THE YEARS AHEAD, AND I'M
GLAD THAT EVERYBODY IS MINDFUL
ABOUT THAT, AND THAT WE CAN HAVE
A CONVERSATION ABOUT WHERE WE GO
FROM HERE. SO UM, LOOKING
FORWARD. THERE'S A LOT OF THINGS
THAT MY COLLEAGUE SAID ABOUT
HIGHER ED AND, YOU KNOW,
PROTECTING OUR MOST VULNERABLE
AND HEALTH AND HUMAN SERVICES
AND OTHER THINGS THAT ARE VERY
EAGER TO DIVE INTO. BUT GIVEN
THE TIMING, I DO WANT TO GIVE US
THE OPPORTUNITY TO GO TO PUBLIC
COMMENT. NOW AS I MENTIONED,
THERE'S A LOT OF, UM I KNOW
THERE'S A LOT OF FOLKS WHO ARE
EAGER TO SHARE OPINIONS WITH US.
UNFORTUNATELY MANY OF OUR
MEMBERS HAVE TO BE OUR
ELSEWHERE. BUT AT LEAST MR FONG
AND I ARE WILLING TO STAY FOR A
WHILE TO HEAR THAT PUBLIC
COMMENT, BUT AGAIN JUST WANT TO
REMIND FOLKS WE'RE GOING TO
NOTICE 61 SUBCOMMITTEE HEARINGS.
YOU'RE GONNA HAVE QUITE A FEW
OPPORTUNITIES TO MAKE YOUR VOICE
HEARD TO BE PART OF THE PROCESS
AND REALLY, TO BE PART OF THE
PROCESS WHERE YOUR PARTICULAR
ISSUE IS BEING DISCUSSED,
DEBATED A VALUE ATED AND
EXAMINED, SO WE'RE GOING TO TRY
TO LIMIT FOLKS AT THIS TO ONE
MINUTE. IF YOU CAN SAY IT EVEN
MORE BRIEFLY THAN THAT, THAT
WOULD BE APPRECIATED. BUT BEFORE
WE DO GO TO PUBLIC COMMENT
FIRST, LET ME THANK ALL OF OUR
PANELISTS TODAY FROM THE
DEPARTMENT OF FINANCE FROM THE
LEGISLATIVE ANALYST'S OFFICE. WE
APPRECIATE YOU COMING HERE
ANSWERING THESE QUESTIONS. BEING
PART OF THE CONVERSATION, YOUR
PATIENTS AND EXPERTISE AND ALSO
WANT TO ACKNOWLEDGE ARE COLOR
COORDINATED ASSEMBLY BUDGET
COMMITTEE STAFF FOR ALL OF THEIR
HARD WORK. WE APPRECIATE ALL OF
YOU AND THANK YOU TO THE
SERGEANTS AND EVERYBODY ELSE WHO
HAS MADE THIS HEARING POSSIBLE.
SO WITH THAT THANK YOU AND WE
WILL TURN IT OVER TO PUBLIC
COMMENT. RIGHT THANK YOU. CHAIR
GABRIEL MICHAEL PIMENTEL HERE ON
BEHALF OF THE CALIFORNIA TRANSIT
ASSOCIATION. I JUST WANNA
ACKNOWLEDGE LAST YEAR YOU ALL AS
THE LEGISLATURE WORKING WITH THE
ADMINISTRATION PROVIDED $5.1
BILLION FOR PUBLIC TRANSIT
AGENCIES WERE HUGELY APPRECIATED
THAT THE GOVERNOR'S BUDGET
MAINTAINS THAT FUNDING AND WOULD
ENCOURAGE THE LEGISLATURE AS YOU
DEVELOP THE BUDGET TO KEEP THAT
FUNDING INTACT. IT'S CRITICAL
FOR COMMUNITIES. FOR WRITERS
AND, OF COURSE FOR PUBLIC
TRANSIT AGENCIES ARE DELIVERING
THE SERVICES. FINALLY I'LL
MENTION THAT ON BEHALF OF THE
AMERICAN HEART ASSOCIATION, THE
HEART ASSOCIATION REQUEST THAT
YOU KEEP THE $35 MILLION OF
CONTINUED SUPPORT FOR THE
CALIFORNIA NUTRITION IN SENATE
PROGRAM IN C D. FAS OFFICE OF
FARM TO FORK, MR BENNETT GAVE
VOICE TO THE IMPORTANCE OF THOSE
DOLLARS. I WANT TO UPLIFT THAT
IN THE CONVERSATION TODAY. THANK
YOU. THANK YOU. GOOD AFTERNOON,
MR CHAIR AND MEMBERS ALCHEMY
GRAHAM WITH THE CALIFORNIA CITY
TRANSPORTATION INITIATIVE
REPRESENTING CALIFORNIA'S
LARGEST DEPARTMENTS OF
TRANSPORTATION AND PUBLIC WORKS
DEPARTMENTS. I JUST LIKE TO
UPLIFT OUR SUPPORT FOR
MAINTAINING FUNDING LEVELS FOR
THE ACTIVE TRANSPORTATION
PROGRAM AT THE LEVELS INCLUDED
IN THE FISCAL YEAR 2023 AND 2024
BUDGET. WHILE WE FULLY
UNDERSTAND THE GRAVITY OF THE
CURRENT BUDGET OUTLOOK,
INVESTMENTS IN THE ARE ESSENTIAL
TO CONTINUING TO ALLOW ALLOWS
ALLOWING CITIES EXCUSE ME TO
DELIVER ON THE STATE'S CLIMATE
MOBILITY, PUBLIC HEALTH AND
EQUITY OBJECTIVES WERE TO THE
COMMITTEE TO SUPPORT MAINTAINING
FUNDING FOR THE 80 P. THANK YOU.
THANK YOU VERY MUCH. GOOD
AFTERNOON MEMBERS. ORAZIO
GONZALEZ, ON BEHALF OF THE
SALTON SEA AUTHORITY WERE JOINT
POWERS AUTHORITY, CONSISTING OF
THE IMPERIAL IRRIGATION DISTRICT
, THE COACHELLA VALLEY WATER
DISTRICT, THE COUNTY OF IMPERIAL
, THE COUNTY OF RIVERSIDE AND
THE TOURIST MARTINEZ DESERT,
KAWEAH, NATIVE PEOPLE THAT HAVE
INHABITED THE SALTON SEA REGION
FOR THOUSANDS OF YEARS. WE ARE
THANKFUL FOR THE GOVERNOR'S
PROPOSED INVESTMENT IN THE
SALTON SEA RESOURCES THAT WILL
HELP SKILL UP IMPLEMENTATION OF
PROJECTS UNDER THE SALTON SEA
MANAGEMENT PROGRAM, AS WELL AS
BEGIN TO ADDRESS THE IMPORTANCE
OF OPERATING AND MAINTAINING
PROJECTS ONCE THEY ARE
COMPLETED. THERE'S ALSO A $3
MILLION INVESTMENT. THAT IS THE
FIRST, UH CONTRIBUTION FROM THE
STATE TO INITIATING THE FEDERAL
U. S. ARMY CORPS IMPERIAL STREAM
SALTON SEA STUDY PROJECTS
IDENTIFIED BY THAT STUDY WILL BE
ELIGIBLE FOR UP TO 65% FEDERAL
FUNDING. SO WHAT IS A
SIGNIFICANT OPPORTUNITY FOR THE
STATE AND ULTIMATELY A COST
SAVINGS ON BEHALF OF THE
CALIFORNIA ALLIANCE FOR DIGITAL
EQUITY AND NEXT THING?
CALIFORNIA WE ARE IN STRONG
SUPPORT OF THE GOVERNOR'S
PROPOSAL TO FULLY FUND THE
MIDDLE MILE BROADBAND INITIATIVE
AS WELL AS THE LAST MILE GRANTS.
THANK YOU. THANK YOU VERY MUCH.
HELLO MY NAME IS LAURA DE KHN.
STATE DIRECTOR FOR ENVIRONMENT,
CALIFORNIA THANK YOU, CHAIR AND
MEMBERS. UM AND WE'RE ALSO PART
OF THE CHARGE AHEAD CALIFORNIA
INITIATIVE AND WORKING WITH THE
INVEST IN CLEAN AIR CAMPAIGN,
AND THAT'S THE THING WE'RE MOST
CONCERNED ABOUT. WITH THE
GOVERNOR'S PROPOSED BUDGET IS
THE SIGNIFICANT CUTS TO THE
CLEAN AIR, CLEAN TRANSPORTATION
PROGRAMS. BY DELAYING THOSE
PROGRAMS WERE REALLY CONCERNED
THAT THAT DOES AMOUNT TO A CUT.
AND WE NEED TO STAND UP FOR
CLEAN. AIR CALIFORNIA HAS THE
WORST AIR POLLUTION IN THE WHOLE
COUNTRY AND BY CUTTING THESE
INVESTMENTS, WE'RE GOING TO SEE
WORSE AIR POLLUTION, AND THAT'S
GOING TO MEAN MORE PEOPLE
AFFECTED BY THAT PROBLEM. IT'S
GOING TO COST US MORE BECAUSE IT
WILL MEAN HIGHER HEALTH COSTS
AND HIGHER. CLIMATE DISASTER
COSTS. BUT THEN ALSO, UM IT'S
GONNA MEAN WORSE COST FOR THE
PEOPLE WHO ARE BURDENED WITH
THAT POLLUTION. SO WE JUST URGE
YOU TO LOOK FOR SOLUTIONS FROM
CUTTING SUBSIDIES TO OIL
COMPANIES AS WELL AS REDIRECTING
FUNDING FROM HIGHWAY EXPANSIONS.
THANK YOU. THANK YOU VERY MUCH.
I SMACKED THE SEGMENT NEXT IN
CALIFORNIA. COME COMMENTING A
COUPLE OF TIMES, BUT I'LL BE
QUICK. FIRST WE URGE YOU TO FUND
THE IMPLEMENTATION OF SB 253 AND
SP 261 TO BRING THE RESOURCES OF
THE PRIVATE SECTOR TO BEAR AND
CLIMATE EFFORTS AT YOUR
NEGLIGIBLE COST TAXPAYERS. WE
ALSO URGE YOU TO REJECT THE
PROPOSED CUT TO THE ACTIVE
TRANSPORTATION PROGRAM, WHICH
CAN BE FUNDED OUT OF WELL
FUNDED, FLEXIBLE TRANSPORTATION
FUNDING SOURCES. ADDITIONALLY WE
ASKED TO RETAIN THE FUNDING FOR
THE PUBLIC DEFENSE PILOT PROGRAM
, WHICH IS THE ONLY STATEWIDE
FUNDING SOURCE SPECIFICALLY FOR
INDIGENOUS DEFENSE. AND FINALLY
AS PART OF THE CALDERON REFORM
COALITION FOR THE NAME WE ARE IN
STRONG SUPPORT OF CALDERON
REFORM AND LOOK FORWARD TO
WORKING WITH THE LEGISLATURE AND
THE ADMINISTRATION ON THIS
CRITICAL EDUCATION WORK AS WELL
AS WORKING ON THE CURRENT
EDUCATION MASTER PLAN. THANK
YOU. THANK YOU VERY MUCH. THANK
YOU, CHAIR AND MEMBERS OF THE
COMMITTEE AMARANTO SILVA WITH
THEIR INVOICES, CALIFORNIA OR
MEMBER OR COMMON. IT'S ALIGNED
WITH THE COALITION AND THE
CHILDCARE. LAWCENTER WE ASK YOU
TO REMOVE THE CURRENT PATH ON
CHILDCARE IS LAD EXPANSION TO
MEET THE GOVERNOR'S PROMISE OF
2100 SLOTS BY 2026 2027. THERE
54,000 SLOTS LEFT TO FULFILL
THIS PROMISE. AND EVERY YEAR
THAT IT GETS EXTENDED. THERE ARE
REAL BABIES AND YOUNG CHILDREN
COMMIS OUT THIS BUSINESS
STARTING LIFE. THEY DON'T GET AN
OVERDUE. ALSO WE NEED TO PROVIDE
A GROWING FINANCIAL SUPPORT TO
ATTRACT AND RETAIN EARLY
EDUCATORS. WE ALSO ALIGN
OURSELVES WITH THE SAFETY NET
FOR COLLISION TO CREATE
INCLUSION FOR IMMIGRANTS LEFT
OUT OF THE SAFETY NET PROGRAMS
SUCH AS OUR WORKERS EXCLUDED
FROM UNEMPLOYMENT SERVICES.
LASTLY WE ONLINE OURSELVES WITH
AN CHILD, PROBABLY CALIFORNIA
AND ASK YOU TO RECHECK ANY CUTS
TO THE CAR WORKS. FAMILY
ESTABLISHED ASIAN PROGRAMS SO
FAMILIES, ESPECIALLY THOSE WHO
ARE EXPERIENCING DOMESTIC
VIOLENCE, HAVE ACCESS TO
CRITICAL HOUSING, MENTAL HEALTH
AND SAFETY NET SERVICES THAT
THEY NEED TO STAY ALIVE. THANK
YOU. THANK YOU VERY MUCH. HI MY
NAME IS EDWARD FLORES. I'M AN
ASSOCIATE PROFESSOR OF SOCIOLOGY
AND FACULTY DIRECTOR OF THE U. C
MERCED COMMUNITY AND LABOR
CENTER HERE TO SHARE SOME
RESEARCH RELEVANT AS SENATE BILL
2 TO 7 UNEMPLOYMENT BENEFITS ARE
EXCLUDED WORKERS. LAST YEAR WE
RELEASED A FACT SHEET WORKER
RELIEF. THEY INDICATED THERE'S
ROUGHLY 1.1 MILLION UNDOCUMENTED
WORKERS IN CALIFORNIA.
CALIFORNIA EMPLOYERS ANNUALLY
CONTRIBUTE OVER $300 MILLION TO
THE UI SYSTEM. THE AVERAGE
WEEKLY BENEFIT FOR CALIFORNIA
UNDOCUMENTED IMMIGRANT WOULD BE
$300 PER WEEK IF THEY WERE
ELIGIBLE FOR UI. AND THAT STATE
FUNDED UNEMPLOYMENT BENEFITS
SYSTEM THAT PROVIDES 20 WEEKS OF
UNEMPLOYMENT BENEFITS AT A LEVEL
OF $300 PER WEEK WOULD PROVIDE
AN ECONOMIC SAFETY NETS SIMILAR
TO YOU I FOR THE ENTIRE LENGTH
OF UNEMPLOYMENT FOR MOST 57% OF
CALIFORNIA UNDOCUMENTED WORKERS
IN THE COURSE OF A YEAR, THE
BENEFITS OF SUCH A SYSTEM $193
MILLION WOULD BE LESS THAN THE
302 MILLION. THAT CALIFORNIA
EMPLOYERS ALREADY CONTRIBUTE TO
THE SYSTEM ON BEHALF OF
UNDOCUMENTED IMMIGRANTS. THANK
YOU. THANK YOU. GOOD AFTERNOON.
JULIA FORTE, FUDAN FROM THE
CHILDCARE. LAWCENTER SENIOR
PROJECT MANAGER AND EVALUATOR
WERE ALSO A MEMBER ORGANIZATION
OF THE COALITION. THE STATE
BUDGET IS THE MOST IMPORTANT
LEGISLATION FOR CREATING AN
EQUITABLE SOCIETY AND A
SUSTAINABLE CALIFORNIA WHERE
BLACK AND BROWN FAMILIES HAVE
THE CHILD CARE THEY NEED AND
CHILDCARE PROVIDERS ARE FAIRLY
COMPENSATED FOR THEIR HARD WORK
AND DEDICATION TO OUR CHILDREN.
THE CHILDCARE. LAWCENTER
STRONGLY URGES THE ASSEMBLY TO
INCLUDE FUNDING TO IMPLEMENT THE
NEW COST BASED FORMULA TO PAY
PROVIDERS BASED ON THE TRUE COST
OF ENRICHING CARE AND TO
INCREASE THE NUMBER OF NEW,
AFFORDABLE CHILD CARE SPACES
OVER THE CURRENT 146,000 SPACES
THAT HAS STATE IS ALREADY
ALLOCATED. ESPECIALLY SINCE NO
SPACES WERE ALLOCATED LAST YEAR
AND THOUSANDS OF FAMILIES
ELIGIBLE FAMILIES ARE STILL
WAITING FOR CARE. THANK YOU,
CHAIR. THANK YOU VERY MUCH. GOOD
AFTERNOON. KENDRA HARRIS,
GOVERNMENT AFFAIRS MANAGER WITH
THE CLIMATE CENTER. UM I JUST
WANT TO THANK THE COMMITTEE FOR
THE HEARING TODAY, AND THERE'S
SOME MEMBERS WHO COMMENTED ON
THE PROPOSED CUTS, THE CLIMATE
BUDGET OR CONCERN WITH THOSE
CAUSE, ESPECIALLY WHEN THERE'S A
NUMBER OF UH, TAX BREAKS AND OIL
EXPENDITURES STILL ON THE TABLE.
THE GOVERNOR MADE SOME PROPOSED
CUTS, BUT WE'D LIKE TO SEE ALL
TAX BREAKS LEMONADE THAT WOULD
GIVE US A MILLIONS DOLLARS TO
STATE BUDGET. UM AND THANK YOU
FOR YOUR SUPPORT. THANK YOU.
GOOD AFTERNOON, MR CHAIR AND
VICE CHAIR AND KATIE VAN DINES
WITH HEALTH ACCESS CALIFORNIA,
THE STATEWIDE HEALTHCARE
CONSUMER ADVOCACY COALITION. WE
APPRECIATE THAT. DESPITE THAT
DEFICIT, THE GOVERNOR'S PROPOSED
BUDGET KEEP CONTINUES KEY
INVESTMENTS IN HEALTH CARE,
INCLUDING IN MEDICAL, WITH
IMPROVEMENTS IN RATES, ACCESS
BENEFITS, QUALITY EQUITY,
ACCOUNTABILITY AND ELIGIBILITY,
ESPECIALLY KEEPING MEDICAL
AVAILABLE FOR ALL INCOME
ELIGIBLE INDIVIDUALS, REGARDLESS
OF AGE OR IMMIGRATION STATUS.
THE FURTHER THIS EFFORT TOWARDS
HEALTH FOR ALL WE WILL SEEK THIS
YEAR TO ALLOW ALL INCLUDING
THOSE BARRED BY IMMIGRATION
STATUS TO PURCHASE HEALTH PLANS
AND COVERED CALIFORNIA WITH OUR
OWN DOLLARS, AND TO DO THIS WILL
BE ADVOCATING FOR A MODEST
REQUEST FOR STARTER STARTUP
COSTS FROM COVER. CALIFORNIA
AFFORDABILITY RESERVE TO CREATE
A MERE MARKETPLACE IN PARALLEL
WITH MAYBE FOUR. WE'RE ALSO
HARDENED TO SEE IT IN THE
GOVERNOR'S BUDGET, MAKE NO
CHANGES TO THE PLAN INCREASED
AFFORDABILITY ASSISTANT BUT FOR
CHOLERA, CALIFORNIA PLANS THAT
THE LEGISLATURE SECURITY LAST
YEAR YOU LOOK FORWARD TO WORKING
WITH THE CHAIR AND COMMITTEE
MEMBERS TO PROTECT THESE KEY
HEALTH INVESTMENTS IN THE COMING
YEAR. THANK YOU. THANK YOU. GOOD
AFTERNOON. GOOD AFTERNOON,
MARTHA. ZERO GOES IDEAS AND I AM
REPRESENTING THE CALIFORNIA
MUSIC EDUCATORS ASSOCIATION,
WHOSE MEMBERS ARE CLASSROOM
MUSIC EDUCATORS WITH EXTENSIVE
EXPERIENCE AND SINGLE SUBJECT
CREDENTIAL TO PROVIDE MUSIC
INSTRUCTION TO STUDENTS AT BOTH
THE SECONDARY AND ELEMENTARY
LEVELS. SEE MEA IS VERY
CONCERNED ABOUT A K THROUGH 12
BUDGET PROPOSAL TO CREATE A C T
E TEACHER AUTHORIZATION TO TEACH
THE ARTS AT THE ELEMENTARY LEVEL
. HISTORICALLY TEACHERS WITH CTE
CREDENTIALS HAVE TAUGHT AND
GRADES SEVEN THROUGH 12,
EMPHASIZING CAREER TRAINING. CTE
DOES NOT PROVIDE REQUIREMENTS
FOR PEDAGOGICAL INSTRUCTION. TO
TEACH NOR TO ASSESS ELEMENTARY
AGE STUDENTS ALTERNATIVE PATHS
TO CREDENTIALING ALREADY EXIST.
CMI A BELIEVES THAT ELEMENTARY
STUDENTS DESERVE A HIGHLY
QUALIFIED EDUCATOR IN THE ARTS,
PROVIDING AGE APPROPRIATE
INSTRUCTION. UM, A LOOKS FORWARD
TO WORKING WITH YOU ON THIS
ISSUE AS WELL AS WITH OTHERS.
THANK YOU VERY MUCH. MR
CHAIRMAN, MEMBERS BRENDAN TO IT
ON BEHALF OF THE CALIFORNIA AIR
POLLUTION CONTROL OFFICERS
ASSOCIATION, REPRESENTING THE
EXECUTIVE OFFICERS FROM ALL 35
LOCAL AIR DISTRICTS, GIVEN THE
SIGNIFICANT BUDGET DEFICIT THIS
YEAR, WE ASK FOR YOUR CONTINUING
PRIORITIZATION OF FUNDING FOR
PROGRAMS THAT COST EFFECTIVELY
ADDRESS, AIR QUALITY, PUBLIC
HEALTH AND CLIMATE CHALLENGES,
ALL AT THE SAME TIME. TO AIR
DISTRICT ADMINISTERED PROGRAMS,
THE A B 617 COMMUNITY AIR
PROTECTION PROGRAM AND THE
FARMER PROGRAM ARE HIGHLY COST
EFFECTIVE AT REDUCING BOTH
CRITERIA, HEALTH POLLUTANTS AND
GREENHOUSE GASSES. WE APPRECIATE
PAST AND PROPOSED FUNDING
PRIORITIZING INVESTMENTS IN
THESE PROGRAMS WILL MAKE SCARCE
RESOURCES GO FURTHER. AND WE
APPRECIATE. THE COMMUNITY OF
PROTECTION PROGRAM IS PROPOSED
TO RE REDUCED FROM 300 MILLION
TO 250 MILLION AND WE ASK THAT
YOU WERE START FUNDING TO 300
MILLION. ALSO THE FARMER PROGRAM
IS PROPOSED TO BE ZEROED OUT.
UM, IT WAS ALREADY REDUCED 50%
TO 75 MILLION IN LAST YEAR'S
ADOPTED BUDGET, AND WE ASK YOU
RESTORED 150. THANK YOU VERY
MUCH. GOOD AFTERNOON, NICOLE
WORLD N N ON BEHALF OF THE
CHILDREN'S PARTNERSHIP. WE'RE
VERY APPRECIATIVE THAT THE
ADMINISTRATION HAS PUT FORTH A
BUDGET PROTECTING CHILDREN'S AND
FAMILY'S ISSUES. UH IN ADDITION
TO HIS PROPOSALS, THE CHILDREN'S
PARTNERSHIP URGES THE
LEGISLATURE TO GREEN LIGHT. THE
IMMEDIATE IMPLEMENTATION OF
CONTINUOUS MEDICAL COVERAGE FOR
YOUNG CHILDREN AGES 0 TO 5. AS
WELL AS INCREASED REIMBURSEMENT
RATES FOR COMMUNITY HEALTH
WORKERS AND MEDICAL ON BEHALF OF
ORANGE COUNTY AND SAN BERNARDINO
COUNTY. I URGE YOU TO REJECT THE
PROPOSED CLAWBACK OF $40 MILLION
FOR THE PUBLIC DEFENDER PILOT
PROGRAM. FUNDING IS SCHEDULED
FOR DISBURSEMENT IN MARCH, AND
HUNDREDS OF CASES ARE CURRENTLY
IN PROCESS FOR INDIGENT DEFENSE.
GETTING THE FUNDING WILL DELAY
ACCESS TO THOSE VULNERABLE
POPULATIONS FOR JUSTICE. AND
THEN, FINALLY, A COUPLE MORE ON
BEHALF OF SAN BERNARDINO COUNTY,
OPPOSING THE ELIMINATION OF THE
30 MILLION IN THE FAMILY URGENT
RESPONSE SYSTEM. 18.8 MILLION
FOR THE SUPERVISED INDEPENDENT
LIVING. THANK YOU. THANK YOU
VERY MUCH. GOOD AFTERNOON, LINDA
WAY WITH WESTERN CENTER ON LAW
AND POVERTY. WE APPRECIATE THAT
THE GOVERNOR'S BUDGET PAST
COMMITMENTS, INCLUDING EXPANSION
OF MEDICAL TO ALL REGARDLESS,
ALL INCOME ELIGIBLE ADULTS,
REGARDLESS OF IMMIGRATION STATUS
, AND THAT THERE ARE NO COW
WORKS AND S S GRANT CUTS.
HOWEVER, WE ARE CONCERNED THAT
WHENEVER THERE ARE BUDGET
DEFICIT, THE STATE LOOKS TO
BALANCE THE BUDGET BY TARGETING
PROGRAMS. THAT SERVED THE LOWEST
INCOME CALIFORNIANS RATHER THAN
LOOKING AT REVEL IN NEW
SOLUTIONS THAT ASSEMBLYMEMBER'S
EARLY HIGHLIGHTED. WE OPPOSE
EMPTYING THE SAFETY NET RESERVE,
COUPLED WITH PERMANENT CUTS TO
COW WORKS, THIS ACTS AS A DOUBLE
CUT THAT DESTABILIZES OUR MOST
VULNERABLE FAMILIES. WE SUPPORT
THE STATE APPLYING FOR THE
FEDERAL 10 OF PILOT AND URGED
THE LEGISLATURE TO ENSURE THE
PILOTS ARE SUCCESSFUL, INCLUDING
KEY REIMAGINED FORMS REFORMS TO
CENTER FAMILIES. WE ALSO OPPOSE
CUTS TO LEGAL SERVICES FOR
IMMIGRANTS, FOSTER YOUTH. AND
HOUSING. FINALLY WE URGE TIMELY
IMPLEMENTATION OF SHERIFF COST
REFORM AND MEDICAL CONTINUOUS
ELIGIBILITY FOR CHILDREN. THANK
YOU. THANK YOU. HELLO TERRY AND
VICE CHAIR GENIE WARD WALLER ON
BEHALF OF CAL BIKE AND TRANSFORM
. I WANT TO EXPRESS OPPOSITION
TO THE PROPOSED CUT OF 200
MILLION TO THE ACTIVE
TRANSPORTATION PROGRAM. IT'S THE
MOST EFFECTIVE TRANSPORTATION
PROGRAM IN TERMS OF ADDRESSING
THE CLIMATE AND ALSO
OVERWHELMINGLY BENEFITS.
DISADVANTAGED COMMUNITIES. WE
RECOMMEND YOU LOOK AT
BACKFILLING FROM THE STATE
HIGHWAY ACCOUNT, REDUCING
FREEWAY EXPANSION FUNDING TO
MAKE THE ADB HALL I'M ALSO ON
BEHALF OF TRANSFORM. I WANT TO
EXPRESS OPPOSITION TO CUTTING
THE REGIONAL EARLY ACTION
PROGRAM OR REAP. THANK YOU.
THANK YOU. YOU REMEMBER NICK
BROWN ON BEHALF OF THE SOUTHERN
CALIFORNIA ASSOCIATION OF
GOVERNMENTS. WE URGE YOU TO
PROTECT THE $300 MILLION
PROPOSED TO BE CUT TO THE RE
PROGRAM THE PROGRAM HAS PROVIDED
OVER 100 PROJECTS ACROSS THE
SOUTHERN CALIFORNIA REGION.
THERE ARE VERY REAL, UM AND
READY TO GO TODAY. SO WE HOPE TO
WORK WITH YOU ALL THIS YEAR TO
PROTECT THAT FUNDING. THANK YOU
SO MUCH. THANK YOU SEE, THAT'S
GREAT. YOU CAN DO IT IN 15
SECONDS. EVERYBODY HONORABLE
CHAIR NICCOLO DI LUCA HERE TO
OFFER GRATITUDE ON BEHALF OF THE
CITIES OF GARDENA, SAN PABLO,
SOUTH SAN FRANCISCO, APPRECIATE
YOUR COMMENTS ABOUT PROTECTING
LAST YEAR'S INVESTMENTS IN
DISTRICT SPENDING REQUESTS. WE
HAVEN'T GOTTEN THOSE FUNDING
THAT FUNDING YET. SO THANK YOU
AND THEN ON BEHALF OF THE CITY
OF OAKLAND, VERY GRATEFUL FOR
THE ONGOING HALF FUNNY OVER THE
PAST YEARS, LOOKING FORWARD TO
PARTNER WITH ALL OF YOU TO MAKE
SURE TO HELP GET THAT FUNDING
GOING FORWARD. SO THANK YOU.
WONDERFUL. THANK YOU. GOOD
MORNING, MR CHAIR MEMBERS, ROSS
BUCKLEY ON BEHALF OF THE SOUTH
COAST OF HER QUALITY MANAGEMENT
DISTRICT. WE VERY MUCH
APPRECIATE THE FUNDING,
INCLUDING THE GOVERNOR'S BUDGET
FOR THE A B 617 PROGRAM. FOR AIR
DISTRICT IMPLEMENTATION
INCENTIVES, ESPECIALLY GIVEN THE
BUDGET SHORTFALL. WE REQUEST THE
CONTINUES TO PARTITION OF THE A
B 617 FUNDING, WHICH LÀ HAS, UH,
HAS A COMMITTEE AS IT SAID. THAT
IS, UH, VERY EFFECTIVE IN
ADDRESSING AIR QUALITY PUBLIC
HEALTH AND CLIMATE CHALLENGES.
MAYBE 619 PROGRAM IS SEVERELY
UNDERFUNDED. UM TO HELP ADDRESS
THIS RECENTLY ASKED THE PROGRAM
FUNDING YOUR STORED TO LAST
YEAR'S LEVELS TO HELP ADDRESS
PROGRAM COSTS AND PROVIDE A COST
EFFECTIVE WAY OF REDUCING
EMISSIONS TO MEET FEDERAL AIR
QUALITY STANDARDS. THANK YOU.
THANK YOU VERY MUCH, AND I JUST
WANT TO DO A TIME CHECK WE ONLY
HAVE ABOUT 10 MORE MINUTES LEFT,
SO I KNOW THE FOLKS IN LINE
BEHIND YOU WOULD APPRECIATE IF
EVERYBODY CAN JUST DO THEIR BEST
TO MAKE THEIR POINTS AS QUICKLY
AS POSSIBLE REMINDER. THEY'RE
GOING TO BE 61 MORE HEARINGS
COMING UP WHERE YOU HAVE AN
OPPORTUNITY TO REALLY MAKE YOUR
VOICE HEARD IN A ROBUST WAY.
THANK YOU, CHARLES. TRY TO BE
VERY BRIEF. MY NAME IS MICHAEL
JORDAN WITH THE COMMUNITY
ALLIANCE WITH FAMILY FARMERS WE
LIKE TO THANK AND ECO CHAIR.
BENNETT'S COMMENTS RELATED TO
THE CALIFORNIA NUTRITION CENTER
PROGRAM IN THE COMMUNITY FOOD
HUB PROGRAM. WE BELIEVE THOSE
PROGRAMS SHOULD NOT BE CUT AND
ELIMINATED THERE AT CDFA. WE
ALSO WOULD URGE THE RETENTION OF
THE CALIFORNIA UNDERSERVED SMALL
PRODUCER PROGRAM AND AN
EXPANSION OF ELIGIBILITY TO
FLOOD IMPACTS OF SMALL FAMILY
FARMERS. ON BEHALF OF CLIMATE
RESOLVE. WE WOULD ECHO CLIMATE
CENTERS, COMMENTS RELATED TO OIL
AND GAS TAX EXPENDITURES TO
PRESERVE THE CLIMATE BUDGET. THE
CLIMATE CANNOT WAIT FOR BETTER
FISCAL CONDITIONS AND THEN
FINALLY, PROTECTION OF THE
EXTREME HEAT AND COMMUNITY
RESILIENCE PROGRAM AT OPR. THANK
YOU. THANK YOU VERY MUCH. HELLO
LESLIE CALDWELL, HOUSTON FOR THE
CALIFORNIA PUBLIC DEFENDERS
ASSOCIATION, AND WE RETIRED
CHIEF DEFENDER FOR THE SOLANO
COUNTY PUBLIC DEFENDER AND I
HAVE 40 YEARS OF EXPERIENCE IN
INDIGENT CRIMINAL DEFENSE,
PUBLIC FUNDING PUBLIC DEFENDER
FUNDING IS ESSENTIAL TO
IMPLEMENT CRIMINAL JUSTICE
REFORMS. PILOT INDIGENT DEFENSE
FUNDING HAS SAVED MILLIONS OF
DOLLARS FOR THE STATE. WELL
KEEPING CALIFORNIANS SAFE AND
WILL CONTINUE TO DO SO. CUTTING
THESE FUNDS IS PENNY WISE AND
POUND FOOLISH. WE WANT TO THANK
ASSEMBLYMEMBER'S BONTA FOR HER
CONTINUED LEADERSHIP FOR
EFFECTIVE REHABILITATION
SERVICES, INCLUDING REENTRY
SUPPORT AND WORKFORCE
DEVELOPMENT AND HIGHLIGHTING THE
INCREASING INCARCERATION COSTS.
THANK YOU. THANK YOU FOR YOUR
COMMENTS AND FOR YOUR SERVICE TO
THE STATE AND THEIR JOHNDROE
BINGER WITH THE STEINBERG
INSTITUTE. WE WERE HEARTENED TO
SEE ONLY LIMITED PROPOSED DELAYS
IN BEHAVIORAL HEALTH FUNDING,
NOTING, HOWEVER, WE DO BELIEVE
THAT BRIDGE HOUSING B CHIP AND
WORKFORCE DOLLARS WOULD HAVE A
MORE TIMELY IMPACT IF THEY WENT
OUT ON TIME, SINCE THOSE DOLLARS
WILL TAKE YEARS TO HAVE AN
IMPACT. WE'RE ALSO CONCERNED
ABOUT THE PROPOSED $7.8 MILLION
CUT TO THE BOARD OF STATE
COMMUNITY. CORRECTIONS COUNTY
DATA COLLECTION ON THE
IMPLEMENTATION OF PUBLIC SAFETY
REALIGNMENT. THIS DATA IS
ESSENTIAL TO ENSURING WERE
RAINED UP. WE'RE USING
REALIGNMENT DOLLARS IS INTENDED
TO REDUCE RECIDIVISM, AND
WITHOUT THAT DATA, WE RISK
INVESTING IN PROGRAMS THAT DO
MORE HARM THAN GOOD. THANKS FOR
YOUR WORK ON THESE ISSUES. THANK
YOU. GOOD AFTERNOON TO GABRIEL.
AND BY STEFAN, THIS IS MEGAN
CLEVELAND WITH THE NATURE
CONSERVANCY DESPITE RECORD
BREAKING STATE BUDGETS,
CALIFORNIA'S INVESTMENTS IN
NATURAL RESOURCES AND NATURE
BASED CLIMATE SOLUTIONS HAVE NOT
KEPT WITH PACE AND SCALE OF THE
NEED. HISTORICALLY THE STATE
BUDGET FOR NATURAL RESOURCES HAS
WAVERED AROUND 5% OF THE STATE'S
BUDGET, AND THIS YEAR WITH THE
CAT WITH THE GOVERNOR'S 2024
2025 BUDGET PROPOSAL, THAT
FUNDING IS REDUCED TO ABOUT 3%
OF THE STATE BUDGET. AS THE
ASSEMBLY CRAFTS THEIR BUDGET
PROPOSAL. WE ENCOURAGE YOU TO
RESTORE CRITICAL INVESTMENTS IN
NATURE BASED CLIMATE SOLUTIONS
AND BIODIVERSITY CONSERVATION,
PARTICULARLY ADVOCATE FOR THE
RESTORATION OF FUNDING FOR THE
COASTAL PROTECTION PROGRAM
PRODUCT. PACKAGE, WHICH SOUGHT.
LOT OF CUTS AND SLASH FUNDING TO
THE STATES ALSO CONSERVANCY AND
THE OCEAN PROTECTION COUNCIL.
DUDAR SEA LEVEL RISE AND THEN
FINALLY, I JUST WANT TO AS
CALIFORNIA FACES A SIZABLE
BUDGET DEFICIT FOR THE SECOND
YEAR IN A ROW. WE WANT TO URGE
THE LEGISLATURE TO TAKE STRONG
ACTION TO LEAD ON A CLIMATE
BUDGET THAT WOULD PROVIDE
CRITICAL INVESTMENTS. THANK YOU
VERY MUCH. GOOD AFTERNOON CHAIR
AND MR VICE CHAIR. MELISSA, COZY
WITH CRIME FOR SURVIVORS FOR
SAFETY AND JUSTICE WERE A
NETWORK OF OVER 50,000 CRIMES
FOREVER STATEWIDE. WE JUST URGE
LEGISLATURE TO REJECT THE
GOVERNOR'S PROPOSAL TO DELAY
FUNDING FOR THE FLEXIBLE CASH
ASSISTANCE PROGRAM AS IT
PROVIDES MUCH SUPPORT FOR
SURVIVORS AND THE FAMILIES. WE
ALSO ASKED THE LEGISLATURE TO
ADOPT A PLAN TO CLOSE MY
PRESENCE. THANK YOU. THANK YOU.
GOOD AFTERNOON CHAIR AND
MEMBERS. MY NAME IS ED LITTLE
WITH CALIFORNIA'S FOR SAFETY AND
JUSTICE. YOU STRONGLY ENCOURAGE
THE LEGISLATOR TO REJECT THE
GOVERNOR'S PROPOSAL TO DELAY
FUNDING FOR FLEXIBLE CASTERS
SYSTEMS FOR SURVIVORS OF CRIME
GRANT PROGRAM. WE ALSO RIGHT
ADVOCATING FOR FURTHER PRISON
CLOSURES. LAST YEAR. THE L. A
ANALYSIS SHOWED THE STATE COULD
CLOSE AN ADDITIONAL FIVE PRISONS
BY 2027 SAVING THE STATE AROUND
$1 BILLION. WE ALSO THANK
ASSEMBLYMEMBER'S BONTA FOR
HIGHLIGHTING THE COST OF PRISONS
IS IMPORTANT THAT THE STATE
COMMIT TO THESE CLOSURES NOW AND
REINVEST SAVINGS AND CRIME
PREVENTION, REENTRY AND HEALING
RESOURCES. LASTLY WE ARE
ADVOCATING FOR THE LEGISLATOR
LEGISLATURE SHOULD REJECT THE
PROPOSAL. DEPOSIT FUNDING FOR
THE ADULT REENTRY, GRANT. THANK
YOU. THANK YOU. GOOD AFTERNOON,
JOHAN CARDONA'S WITH CALIFORNIA
PANASONIC HEALTH NETWORK. UH,
THIS PIPE REVENUE SHORTFALLS
SEEPING COMMENCED THE GOVERNOR
FOR PRESERVING THE MEDICAL
EXPANSION FOR UNDOCUMENTED
ADULTS. THE REMOVAL OF THE
MEDICAL ASSET LIMIT TEST AND
CONTINUING ESSENTIAL INVESTMENTS
, AWARDS, BEHAVIORAL HEALTH AND
ORAL HEALTH. HOWEVER WE REMAIN
DISAPPOINTED BY THE FAILURE TO
INCLUDE REIMBURSEMENT INCREASES
FOR COMMUNITY HEALTH WORKERS,
TORAHS AND HELP REPRESENTATIVES.
WE BELIEVE COMMUNITY HEALTH
WORKERS ARE IN ESSENTIAL
RESEARCH FOR UNDERSERVED
COMMUNITIES AND COMMUNITIES OF
COLOR. ARCHED THE LEGISLATURE
AND THE GOVERNOR TO WORK
TOGETHER TO SUPPORT A BASE RATE
INCREASE FOR COMMUNITY HEALTH
WORKERS TO AT LEAST 87.5% OF THE
MEDICAL MEDICAL RATE. AND I, AND
WE SLEEP AND LOOKS FORWARD TO
SECURING YOUR SUPPORT ON THIS
EFFORT. THANK YOU. MELANIE
MERRILEES ON BEHALF OF THE
GREENLINING INSTITUTE. WE ARE
REQUESTING IMPLEMENTATION
FUNDING FOR SP 253. IT WAS A
GLOBALLY ACCLAIMED, UM, CLIMATE
STANDARD THAT WAS SET BY THIS
BODY AND THE ADMINISTRATION LAST
YEAR. WE ALSO GOING TO BE
ADVOCATING VERY HEAVILY TO
ENSURE THAT THERE'S NO DELAYS.
THIS IMPLEMENTATION. THANK YOU.
THANK YOU. HELLO MR CHAIR AND
VICE CHAIR. ANDREW SHANE FROM
END CHILD POVERTY, CALIFORNIA TO
BE BRIEFLY ALIGNED WITH THE
WESTERN CENTER ONLINE POVERTY'S
COMMENTS. I WOULD JUST HIGHLIGHT
THAT AND CALL WORKS. WE THINK
CHAIR JACKSON FIRST COMMENTS AND
THE ACKNOWLEDGEMENT BY
DEPARTMENT OF FINANCE THAT THESE
CUTS WILL BE PAINFUL. WE'RE
TALKING ABOUT 650,000 OF THE
STATE'S POOREST CHILDREN IN
HOUSEHOLDS THAT ARE 90% MOMS OF
COLOR, AND IN FACT, THIS WILL
UNDERMINE THE STATE'S APPROACH
TO THE PILOTS, WHICH WILL TEST
REAL ALTERNATIVE OUTCOMES IN
FAMILY STABILITY, WELL BEING AN
EMPLOYMENT YET AT THE SAME TIME
CUTTING FAMILY STABILIZATION.
SHIN AND SUBSIDIZED EMPLOYMENT.
SO WE KNOW WE NEED TO LOOK AT
THIS PROGRAM. THANK YOU. I WORK
WITH CHILDREN'S LAW CENTER OF
CALIFORNIA. WE REPRESENT THE
CHILDREN IN FOSTER CARE IN LOS
ANGELES PLAZA IN SACRAMENTO
COUNTY'S WHEN THESE CHILDREN
WERE REMOVED FROM THEIR FAMILIES
, CALIFORNIA PROMISED TO KEEP
THEM SOUTH AND TAKE CARE OF THEM
WERE ASKING CALIFORNIA TO
FULFILL THAT PROMISE. BY
MAINTAINING THE 18.8 MILLION
FUNDING FOR THE SILK SUPPLEMENT
TO ENSURE YOUTH HAVE PLACEMENTS,
13.7 HOUSING, NAVIGATION AND
MAINTENANCE PROGRAM TO ENSURE
YOUTH DO NOT EXIT FOSTER CARE TO
HOMELESSNESS. 30 MILLION FOR THE
FAMILY URGENT RESPONSE SYSTEM TO
ENSURE PEOPLE TRAINED ADDRESS
UNIQUE TRAUMA OF FOSTER CARE.
RESPOND WHEN THESE CHILDREN, UH
ARE IN CRISIS SO THAT CHILDREN
AND FAMILIES ARE HELPED NOT HURT
BY THE INTERVENTION. NOT ONLY IS
BETTER FOR CHILDREN AND FAMILY,
BUT RESULTS IN LONG TERM
SAVINGS. THANKS FOR YOUR
CONCERN. THANK YOU VERY MUCH,
AND I JUST WANT TO REMIND FOLKS
WERE REALLY, UM TIGHT ON TIME
HERE. WE AS FOR THOSE THAT MAYBE
WEREN'T IN THE HEARING ROOM
EARLIER WE'RE GOING TO HAVE
WE'RE GOING TO NOTICE TODAY 61
ADDITIONAL HEARINGS, SO THERE'S
GOING TO BE A LOT OF
OPPORTUNITIES DURING THE PROCESS
TO COMMENT. WE ARE VERY EAGER TO
HEAR WHAT YOUR FEEDBACK ON ALL
OF THIS FROM THE PUBLIC AS WE
ALWAYS ARE, BUT THERE'S GOING TO
BE A LOT OF OPPORTUNITIES AS WE
MOVE FORWARD, DISCUSSING OUR
BUDGET PROCESS TO REALLY COMMENT
AND DIVE INTO ALL OF THESE
ISSUES IN A VERY ROBUST HUESO
DON'T FEEL LIKE YOU HAVE TO
COMMENT TODAY. THERE WILL BE A
LOT OF OPPORTUNITIES GOING
FORWARD TO DISCUSS THE
PARTICULAR ISSUES. THE OTHER
THING THAT I WOULD OFFER TO
FOLKS IS THAT YOU CAN SUBMIT
WRITTEN COMMENTS AS ALWAYS, VIA
THE ASSEMBLY BED BUDGET
COMMITTEE WEBSITE. SO IF YOU
HAVE A PREPARED STATEMENT THAT
YOU'RE READY TO READ IF YOU WANT
TO JUST PUT THAT IN THE EMAIL
AND SEND IT OVER TO US, I
PROMISE THAT WE WILL TAKE A LOOK
AT IT. I JUST WANT TO BE MINDFUL
OF THE TIME SINCE WE'RE ALREADY
ABOUT 25 MINUTES OVER WHEN THE
HEARING WAS SUPPOSED TO END, AND
SO WITH THAT WE'RE GOING TO TRY
TO GO NOW TO EVEN SHORTER PUBLIC
COMMENT IF WE CAN SARAH, ALSO IN
WITH ENVIRONMENTAL DEFENSE FUND.
WE JUST WANT TO EXPRESS CONCERN
WITH THE DELAYS THAT WE SEE IN
CLEAN AIR AND TRANSPORTATION
PROGRAMS AS WELL AS THE CUTS TO
THE EQUITABLE BUILDING
DECARBONIZATION PROGRAM. WE WANT
TO EMPHASIZE THE NEED FOR
INVESTMENT IN FOREST RESILIENCE,
MANAGEMENT AND WORKFORCE
DEVELOPMENT TO PREVENT
CATASTROPHIC WILDFIRE.
ADDITIONALLY WE'RE INTERESTED IN
SEEING INVESTMENT IN SUCCESSFUL
PROGRAMS LIKE THE MULTI BENEFIT
LAND REPURPOSING PROGRAM. AND WE
HOPE TO SEE CARD RECEIVED THE
RESOURCES NECESSARY TO IMPLEMENT
TO SB 253 IN 261, SETTING THE
STATE UP FOR CONTINUED
LEADERSHIP AND WE LOOK FORWARD
TO COLLABORATING WITH THE
LEGISLATURE AND GOVERNOR ON
THIS. THANK YOU. GOOD AFTERNOON
CHAIR AND MEMBERS WERE WINDY
WITH THE CALIFORNIA LIONS OF
CHILD AND FAMILY SERVICES. IN
THE LIGHT OF TIME, I WOULD WIND
MY COMMENTS WITH THE CHILDREN'S
LAW CENTER AND, UM, YOU KNOW
CONCERNS OVER THE PROPOSED CUTS
THE FOSTER CARE SYSTEM. THANK
YOU. THANK YOU APPRECIATE IT. A
J. JOHNSON CALIFORNIA COMPETES,
ECHOING COMMENTS AROUND CAL
GRANT REFORM, AFFORDABLE STUDENT
HOUSING IN THE BOND SOLUTION IN
THE BUDGET, AND I'LL ECHO
CHILDREN'S LAWCENTER COMMENTS
AROUND FOSTER YOUTH HOUSING.
PERFECT. THANK YOU. SAVANNAH
JORGENSEN ON BEHALF OF THE
CALIFORNIA INTERFAITH POWER IN
LIGHT AND LUTHERAN OFFICE OF
PUBLIC POLICY, ASKING FOR
RESTORE TO THE CLEAN AIR
PROGRAMS. THANK YOU. THANK YOU.
GOOD AFTERNOON, MR CHAIR MALIK
BIN WITH UW AFSCME LOCAL 3930,
REPRESENTING OVER 170,000 HOME
CARE AND CHILDCARE PROVIDERS
ACROSS THE STATE APPRECIATE THE
ADMINISTRATION'S MAINTAIN
INVESTMENT IN THE EXCESS SPACE,
INCLUDING THE EXPANSION OF
MEDICAL INCLUSIVE OF EXCESS
COSTS, BUT ALSO LOOK FORWARD TO
WORKING WITH YOU ALL ON
EXTENDING THE CURRENT 10% OVER
THREE YEARS TOOL FOR STATE
PARTICIPATION IN LOCALLY
NEGOTIATED WAGE INCREASES AND
THE S S CAREER PATHWAYS PROGRAM
AND THE CHILD CARE SPACE. WE
ACKNOWLEDGE THE FUNDING IN HIS
BUDGET FOR PROVISIONS IN OUR
CHILDCARE CONTRACT FROM LAST
SUMMER. HOWEVER WE RESPECTFULLY
URGED THE ADMINISTRATION TO MEET
IMMEDIATELY IMPLEMENT RATE
REFORM AND WORK TOWARDS
FULFILLING THE GOAL OF 200,000
SLOTS FOR SUBSIDIZED CHILDCARE
WENT OVER ITS 1.2 MILLION. THANK
YOU. THANK YOU VERY MUCH. MR
CHAIR MEMBERS. TIFFANY WINE WITH
THE CDU CALIFORNIA ECHO THE
COMMENTS ON EARLY EDUCATION ON
EARLY ACTION RELATED TO
HEALTHCARE MINIMUM WAGE,
GRATEFUL FOR THEIR ONGOING
PUBLIC HEALTH COMMITMENTS. UM,
REGARDING THE BEHAVIORAL HEALTH.
WE APPRECIATE MAINTAINING THE
FUNDS, BUT THE DELAYS OF THE
INFRASTRUCTURE MAY SLOW THE
PROGRESS DISAPPOINTED IN THE
DELAYS RELATED TO THE I. D D
FUNDING OPPOSED THE PROPOSED
CUTS FOR COW WORKS AND CHILD
WELFARE. ESPECIALLY FOR FURS AND
L, A COUNTY CWS PUBLIC HEALTH
NURSES. UM COME. WE APPRECIATE
THE COMMITMENT FOR FUNDING FOR
METHODOLOGY FOR CHILDCARE, BUT
IT DOESN'T MATCH THE PACE THE
STATUS GOING. WE APPRECIATE THE
EFFORTS TO CLOSE THE FUNDING GAP
IN SCHOOLS, BUT WE URGE
CONSIDERATION FOR LAYOFFS AND
PROTECTIONS AND WE LIKE TO SEE
SOME FORMAL GUARANTEES AROUND
HIGH HIGHER EDUCATION COMPACT
AND FINALLY REGARDING STATE
EMPLOYEES WERE CONCERNED WITH
THE PROPOSALS IMPACTING
VACANCIES AND TELE WORK. THANK
YOU. THANK YOU VERY MUCH. GOOD
AFTERNOON, MR CHAIR MEMBERS VERY
DIRTY NEW WITH A CALIFORNIA
DISABILITY SERVICES ASSOCIATION
HERE, TOO, STRONGLY OPPOSED THE
GOVERNOR'S PROPOSAL TO DELAY
IMPLEMENTATION OF THE
DEVELOPMENTAL DISABILITY SERVICE
PROVIDERS RATE REFORM. IT'S
GONNA HAVE A TREMENDOUS IMPACT
ACCESS TO SERVICES. THANK YOU.
THANK YOU. MR CHAIR, MR VICE
CHAIR ANDREAS RAMIREZ ON BEHALF
OF ALL HOME GRATEFUL FOR THE
ADMINISTRATION FOR MAINTAINING
AROUND FIVE HALF DOLLARS. LOOK
FORWARD TO WORKING WITH THE
ADMINISTRATION LEGISLATURE TO
FIND FUNDING FOR AROUND SIX AND
THE 1.2 BILLION CUT FOR HOUSING
PROGRAMS ON BEHALF OF NUMBER OF
CITIES, INCLUDING HAYWARD,
FREMONT, PLEASANT IN MORRO BAY
AND MENDOTA. APPRECIATE YOUR
COMMITMENT, MR CHAIR TO, UH
MAINTAINING AND KEEPING THE
DOLLARS FOR DISTRICT PRIORITIES.
THANK YOU. JUSTIN GARRETT,
CALIFORNIA STATE ASSOCIATION OF
COUNTIES. UM ONE OF OUR PRIMARY
AIMS DURING THIS BUDGET
SITUATION WILL BE TO ADVOCATE TO
PRESERVE THOSE SAFETY NET
SERVICES THAT ARE VULNERABLE
RESIDENTS RELY ON AND SO WHY WE
ARE APPRECIATIVE FOR PROPOSAL
AND PRESERVE SOME KEY RECENT
INVESTMENTS SUCH AS BEHAVIOR,
HEALTH AND PUBLIC HEALTH. WE DO
WANT TO HIGHLIGHT INITIAL
CONCERNS WITH NO NEWER, ONGOING
FUNDING FOR THE HAT PROGRAM,
WHICH WILL MAKE IT MORE
DIFFICULT TO ADDRESS THE
HOMELESSNESS CRISIS. CUTS TO COW
WORKS AND FOSTER CARE THAT WILL
MAKE IT MORE DIFFICULT TO
PROVIDE SUPPORTS VULNERABLE
RESIDENTS AND CUTS TO
IMPLEMENTATION OF SB 1383
IMPLEMENTATION FOR DIVERTING
ORGANIC THANK YOU VERY MUCH.
BECKY SILVA WITH THE CALIFORNIA
ASSOCIATION OF FOOD, BANKS AND
FOOD INSECURITY IS STILL AT
RECORD LEVELS. THE HORRIBLE
IMAGES FROM NEWS STORIES IN THE
EARLY DAYS OF THE PANDEMIC THAT
I'M SURE IS SEARED IN ALL OF OUR
MEMORIES, LINES OF CARS
STRETCHING FOR MILES OUTSIDE
FOOD BANKS. THAT IS THE LEVEL OF
SERVICE THAT FOOD BANKS ARE
STILL PROVIDING. TODAY WE'RE
GRATEFUL FOR THE GOVERNOR'S
PROPOSAL STILL CONTINUE
INVESTING IN CALIFORNIA'S
LANDMARK SCHOOL MEALS FOR ALL
AND THE NATIONAL COW WORKS PILOT
OPPORTUNITY. HOWEVER WE DO HAVE
CONCERNS ABOUT THE COMPLETE
WITHDRAWAL VERY MUCH PRESENT
QUÊ. SORRY. THANK YOU. GOOD
AFTERNOON LYNN BERKELEY, BASKIN
BEND THE ARC, A JEWISH ANTI HATE
AND JUSTICE ORGANIZATION. WE'RE
ASKING THE LEGISLATURE TO REJECT
THE GOVERNOR'S PROPOSED CUTS TO
THE PUBLIC DEFENSE PILOT
PROGRAM. KEEP IN MIND THAT IF
THIS CUT REMAINS, WE ARE
UNDERMINING THE WORK THAT HAS
BEEN DONE FOR YEARS TO INCREASE
PUBLIC SAFETY, RESTORATIVE
EFFORTS THAT WILL CHANGE THE
TRAJECTORY OF PEOPLE'S LIVES AND
CYCLES OF HARM. RESTORE THESE
DOLLARS. THAT EVIDENCE PROVES
POSITIVE, LONG TERM PUBLIC
SAFETY OUTCOMES. THANK YOU TO
DARPA NEXT. SOFIA AFRICA WITH
THE COALITION FOR CLEAN AIR. WE
REQUEST THE LEGISLATURE TO
RECONSIDER CUTS, PROPOSED ZERO
MISSION AND TRANSPORTATION
BUDGETS, GIVEN THE IMPORTANCE OF
THESE PROGRAMS IN COMBATING
CLIMATE CHANGE AND AIR POLLUTION
, THESE CLIMATE TRANSPORTATION
PROGRAMS ARE NOT JUST NICE
HALVES, RATHER THEIR VITAL PART
OF THE AIR SAFETY NET IN THE
SMOGGIEST STATE OF THE COUNTRY.
IT'S ESTIMATED THAT 7500 DEATHS
CAN BE ATTRIBUTED TO YOUR
POLLUTION EACH YEAR IN
CALIFORNIA. THE FRIEND AS THE
LATE FUNDING THE PROPOSED
BUDGET, ESSENTIALLY ZERO FUNDS
ZERO CLEAN VEHICLE PROGRAMS FOR
THE UPCOMING BUDGET YEAR. THIS
MEANS COMMUNITIES WILL CONTINUE
TO BE VULNERABLE. THANK YOU VERY
MUCH. NATASHA MINSTER. SMART
JUSTICE CALIFORNIA CLOSED
PRISONS FUND VICTIM SERVICES
FUND PUBLIC DEFENSE. THANK YOU.
PERFECT. THAT'S HOW IT'S DONE.
THANK YOU, NATASHA. EILEEN CUBAN
SKI WITH THE COUNTY WELFARE
DIRECTORS ASSOCIATION HERE TO
EXPRESS OPPOSITION TO, UH,
PROGRAM CUTS AND ELIMINATIONS
THAT ARE GOING TO IMPACT THE
MOST VULNERABLE OF CALIFORNIA'S
FAMILIES AND CHILDREN, INCLUDING
$300 MILLION IN ONGOING CUTS TO
COW WORKS AND SIGNIFICANT CUTS
TO SERVICES FOR FOSTER YOUTH.
THANK YOU. THANK YOU. GOOD
MORNING, GRACIELA CASTILLO
KRINGS HERE ON BEHALF OF
CALIFORNIA HOUSING CONSORTIUM
AND ENTERPRISE COMMUNITY
PARTNERS, REALLY HOPING THAT THE
LEGISLATURE WILL WORK WITH THE
HOUSING ADVOCATES TO RESOURCE.
SOME OF THE CUTS OF THE ARE
BEING PROPOSED ON SOME OF THE
CORE HOUSING PROGRAMS, INCLUDING
LOOKING AT HOUSING BOND TO HELP
WITH THE DEFICIT. THANK YOU. WE
LOOK FORWARD TO DOING THAT.
THANK YOU. HELLO MY NAME IS
ALICIA IS IF I'M HERE,
MODERNIZED TECHNICIAN FOR
SENIORS. GATEWAY SAN DIEGO WHERE
I HAVE WORKED FOR NINE YEARS. I
HAVE TO SAY THANK YOU TO THE
LEGISLATORS AND THE GOVERNOR FOR
PASSING SB 525 LAST YEAR, WHICH
THAT ANU MINIMUM WAGE FOR
HEALTHCARE WORKERS IN CALIFORNIA
. WE NEED ALL HEALTHCARE WORKERS
TO HAVE A MINIMUM PAY THAT HELPS
AN END SHORT STAFFING AND LET US
TAKE CARE OF OUR FAMILIES. THANK
YOU. THANK YOU. SUSANNA KNIFFEN,
WITH CHILDREN NOW ASKING THE
LEGISLATURE TO RE JACK CUTS TO
CHILDREN AND YOUTH IN FOSTER
CARE. THESE CUTS INCLUDE
PREVENTION FOR YOUNG CHILDREN,
HOUSING FOR OLDER CHILDREN, AS
WELL AS THE FIRST PROGRAM, WHICH
ALLOWS CHILDREN TO STAY IN
FAMILY HOMES AND AVOID
CONGREGATE CARE AND LAW
ENFORCEMENT ENGAGEMENT. WE
REMOVE THEM FROM THEIR FAMILIES.
IT'S NOW YOUR JOB TO PROTECT
THEM. SO PLEASE DO SO. THANK
YOU. MY NAME IS JUST AN ARTIST
AND PARENT VOICES CALIFORNIA AND
DELEGATE THIS SAFE EARNING FOR
ALL AND I HEAR SUPPORT. IT'S A
BIT TO 27 AND ASKED YOU, UM
SPOUSE THAT CHILDCARE THANK YOU.
THANK YOU. THE NUMBER IS MARITA
DELEON. PAUSA. INCLUDING
TRANSLATE THAT VERY QUICK SHOES.
MAURICIO DE LEON. SHE'S ONE OF
OUR MEMBERS FOR PARENT VOICES.
CALIFORNIA ALSO DELEGATE FOR THE
SAFETY NET FOR ALL AND SHE'S
ASKING YOU YOUR SUPPORT FOR HIS
SPEECH TO SEVEN AND ALSO TO
IMPOSE THE PAST FOR THOSE LET'S
AND TRY. DOCTOR. THANK YOU.
THANK YOU. AND DREAM OF RISK ON
BEHALF OF THE CALIFORNIA
IMMIGRANT POLICY CENTER. WE
THINK THE GOVERNOR FOR
MAINTAINING OUR STATE'S
COMMITMENT TO IMPLEMENTING
HEALTH FOR ALL AS WELL AS
EXPANDING CALIFORNIA'S FOOD
ASSISTANCE PROGRAM TO IMMIGRANTS
OVER 55. WE RESPECTFULLY URGE
THE LEGISLATURE AND GOVERNOR TO
PRIORITIZE FUNDING FOR FOOD FOR
ALL AGES SPANNING TO COVER
CALIFORNIA FOR IMMIGRANT
REGARDLESS OF STATUS, FUNDING
AND CREATING A STATEWIDE EX GOOD
WORKERS FUND AND PRESERVING THE
FULL $75 MILLION INVESTMENT FOR
CRITICAL IMMIGRATION, LEGAL
SERVICES. THANK YOU. THANK YOU.
GOOD AFTERNOON. BELLA HOLMAN
BURSTS REPRESENTING THE HOUSING
NAVIGATION MAINTENANCE PROGRAM
THAT GIVES SUPPORTIVE SERVICES
FOR OVER 1300 AGED OUT FOSTER
YOUTH. WE GIVE THEM HOPE ON A
DAILY BASIS AS YOU SEE HERE.
PLEASE SUPPORT IT. THANK YOU SO
MUCH. KAREN ROMERO WITH A SPEAR
IN IT. A STATEWIDE NONPROFIT
ORGANIZATIONS SERVING FOSTER
YOUTH AND FAMILIES IN CRISIS.
WE'RE ASKING THAT YOU, UM
MAINTAIN FUNDING FOR THE HOUSING
, NAVIGATION AND MAINTENANCE
PROGRAM, THE SUPERVISED
INDEPENDENT LIVING PROGRAM,
HOUSING SUPPLEMENT AND THE
FAMILY URGENT RESPONSE SYSTEM.
THANK YOU. THANK YOU. WHEN I
START WITH THE NUMBERS MARTIN
SAN FRANCISCO, CALIFORNIA
LAGARDE ALREADY ECEVIT THOSE
THOSE CITY GRACIAS. MARTHA RADIO
FROM SAN FRANCISCO'S AND SUPPORT
OF SB 2 TO 7 WITH THE SAFETY NET
FOR ALL THANK YOU. LOVE
WITNESSED ARE THESE HISTORY?
HANDLE EVEN GONDOLA. ALI NICE
OBEY. THOSE WENT TO SEE A TREE
IS PART OF CONDO. IS A MARIA.
PRETTY NATURALLY GASEOUS. THAT'S
IT. HIS NAME MADE US ROMANI IS
COMING FROM PALMDALE, CALIFORNIA
ALLYSON SUPPORT OF THE SAFETY
NET FOR ALL THAT SOMETHING THAT
HE MENTIONED IT. IT IS THAT HE'S
BEEN HERE 30 YEARS CONTRIBUTING
TO CALIFORNIA, SO IF YOU CAN
SUPPORT THE SPT 270 WILL BE
GREAT. THANK YOU. THANK YOU.
THANK YOU FOR TRANSLATING.
HONORABLE CHAIR AND MEMBERS
SAMMY SHEIKH WITH WILDCAT
CONSULTING REPRESENTING
CALIFORNIA COMMUNITY LAND TRUST
NETWORK, SPEAKING IN FAVOR OF
THE FORECLOSURE INTERVENTION,
HOUSING PRESERVATION PROGRAM AND
YOUR ONGOING INVESTMENT IN THIS
IMPORTANT HOUSING, JUSTICE
STRATEGY. THANK YOU. AMY HIÆN
SHAIKH, ALSO SPEAKING IN SUPPORT
OF THE FORECLOSURE INTERVENTION,
HOUSING PRESERVATION PROGRAM.
THANK YOU. PERFECT. THANK YOU.
WEDNESDAY POPE WITH JOHN BURTON
ADVOCATES FOR YOUTH. I'M HERE TO
ASK THE ASSEMBLY STATE BUDGET
COMMITTEE TO PROTECT FORMER
FOSTER YOUTH AND FOSTER YOUTH
WHEN THE STATE BUDGET BY
MAINTAINING FUNDING FOR THE
HOUSING NAVIGATION AND
MAINTENANCE PROGRAM, THE
SUPERVISED INDEPENDENT LIVING
HOUSING SUPPLEMENT AND THE
FAMILY URGENT RESPONSE SYSTEM.
PLEASE SUPPORT CALIFORNIA'S
FASTER YOU. THANK YOU. THANK
YOU. MY NAME IS BRITTANY WALKER.
I'M THE EXECUTIVE DIRECTOR OF
BUTTERFLIES HAVENS. SILK FUNDING
HAS HELPED US PROVIDE HOUSING
FOR FORMER FOSTER YOUTH, WHILE
WE ALSO OFFER SUPPORTIVE
SERVICES, WHICH IS A CRITICAL
TOUCHPOINTS WHO EMPOWERING OUR
YOUNG PEOPLE TO REALIZE THEIR
UNLIMITED POTENTIAL AND CREATE
CREATE A LIFETIME INDEPENDENCE
AND STABILITY, OFTEN FOR THE
FIRST TIME IN THEIR LIVES. I AM
HERE TO ASK THE BUDGET COMMITTEE
TO PROTECT OUR FOSTER YOUTH IN
THE STATE BUDGET SO THAT WE CAN
PREVENT THE HOMELESS RATE
AMONGST THIS POPULATION. BY
MAINTAINING FUNDING FOR THE
HOUSING, NAVIGATION AND
MAINTENANCE PROGRAM, THE SILK
HOUSING SUPPLEMENT IN THE FAMILY
URGENT RESPONSE SYSTEM, ALL OF
WHICH ARE PROPOSED FOR
ELIMINATION IN THE
ADMINISTRATION. JANUARY BUDGET,
PLEASE STAND BY CALIFORNIA'S
FOSTER YOU THANK YOU. THANK YOU.
JETSON. I'M WITH A NONPROFIT
CALLED MAKE IT HAPPEN FOR YELLOW
COUNTY. WE PROVIDE FURNISHINGS
AND HOUSEHOLD ITEMS FOR
TRANSITION. H FOSTER YOUTH. I'M
HERE TO STRONGLY PLEA BEG FOR
YOU TO CONTINUE TO SUPPORT THE
SILKS, UM, THE FURS AND THE
HOUSING NAVIGATION MAINTENANCE
PROGRAM FOR FOSTER YOU. THANK
YOU. THANK YOU. ASSEMBLYMEMBER'S
FRASER. IT'S ALWAYS A PLEASURE.
THANK YOU, MR CHAIRMAN, MR. VICE
CHAIR. GOOD TO SEE YOU AGAIN.
I'M HERE REPRESENTING THE ARC OF
CALIFORNIA UNITED CEREBRAL PALSY
, CALIFORNIA ON BEHALF OF THE
DEVELOPMENTALLY DISABLED IN
CALIFORNIA, AND WE ARE STRICTLY
OPPOSED TO THE DEFERRAL OF THE
BDS RATE STUDY IMPLEMENTATION
THE CATASTROPHIC OCCURRENCE THAT
WILL HAPPEN IF THAT IS DONE TO
THE SERVICE PROVIDERS IN
CALIFORNIA, WHICH ARE ALREADY
HAVING LONG WAITING LIST. GO
HARD TIME GETTING EMPLOYEES.
THIS IS AN IMPERATIVE FUNDING
MECHANISM THAT NEEDS TO OCCUR.
LOOK FORWARD TO YOUR SUPPORT.
YOU GUYS HAVE ALWAYS BEEN VERY
SUPPORTIVE OF THE LEGISLATURE OF
THE DEVELOPMENTAL DISABLED IN
CALIFORNIA, AND WE LOOK TO
CONTINUE THAT DIALOGUE. THANK
YOU SO MUCH APPRECIATE YOUR
PASSIONATE ADVOCACY ON THIS
TOPIC. GOOD AFTERNOON, KIM STONE
OF STONE ADVOCACY ON BEHALF OF
PERSEPHONE IN SUPPORT OF THE
LEGISLATURE FUNDING CALIFORNIA
AIR RESOURCES BOARD FOR
IMPLEMENTATION OF SB 253 WIENER
SP 261 STERN REGARDING CARBON
ACCOUNTING. CALIFORNIA CAN JOIN
JAPAN, THE EU, THE UK,
SWITZERLAND AND OTHERS BECOMING
LEADERS AND HAVING THIS
IMPORTANT INFORMATION AVAILABLE
NOT JUST TO INVESTORS, BUT TO
POLICYMAKERS AND THE REST OF US.
THANK YOU. THANK YOU. MELISSA
ROMERO, CALIFORNIA ENVIRONMENTAL
VOTERS HERE TO VOICE THAT WE ARE
STRONGLY OPPOSED TO THE CUTS AND
DELAYS IN THE CLIMATE BUDGET AND
URGED THE LEGISLATURE TO WORK
WITH THE ENVIRONMENTAL COMMUNITY
TO MAINTAIN THOSE INVESTMENTS
AND ALSO TO SUPPORT THE PASSAGE
OF A CLIMATE BOND ALSO WANT TO
MENTION THE IMPORTANCE OF
FUNDING THE IMPLEMENTATION OF SP
253 AND SB 261 CLIMATE CORPORATE
ACCOUNTABILITY ACT IN THE
CLIMATE FINANCE DISCLOSURE ACT,
BOTH INCREDIBLY IMPORTANT LAWS
THAT NEED TO BE IMPLEMENTED.
THANK YOU. THANK YOU AND
APPRECIATE YOUR ADVOCACY. ELAINE
APIARY ON BEHALF OF SERIES. I
JUST WANT TO ECHO THE COMMENTS
OF THE TWO SPEAKERS BEFORE ME
REGARDING SP, 253 AND 261 AND
SAY THAT COMPANIES COVERED UNDER
THESE LAWS ARE PREPARED TO
COMPLY RIGHT NOW. THANK YOU.
THANK YOU. ABIGAIL SMITH ON
BEHALF OF EAST BAY REGIONAL PARK
DISTRICT, MID PENINSULA.
REGIONAL OPEN SPACE DISTRICTS,
SAVE THE REDWOODS LEAKS AND
PROVIDE FUNDING THE LAND TRUST
OF SANTA CRUZ COUNTY ALL
STRONGLY OPPOSED TO THE PROPOSED
CUTS TO THE COASTAL RESILIENCE,
FUNDING AND THE GOVERNOR'S
PROPOSAL AS WELL AS THE CUTS TO
WILDFIRE FUNDING. CLIMATE CHANGE
DOESN'T HALL IN A TIGHT BUDGET
YEAR, IT WILL ONLY GET MORE
EXPENSIVE. THE LONGER WE WAIT,
THANK YOU. HELLO KARINA PARADES
WITH THE HIGHER EDUCATION TEAM
AT PUBLIC ADVOCATES HERE TO ECHO
AND UPLIFT THE SUPPORT FOR CAL
GRANT REFORM AND AFFORDABLE
STUDENT HOUSING. THANK YOU SO
MUCH FOR YOUR PATIENCE. AND FOR
YOUR TIME. THANK YOU. HELLO
INA'S ROSE SALAS WITH PUBLIC
ADVOCATES ON BEHALF OF THE K 12
EDUCATION TEAM. WE'RE THANKFUL
FOR THE GOVERNOR'S COMMITMENT TO
MAINTAIN THE RECENT
TRANSFORMATIVE INVESTMENTS IN
EDUCATION, INCLUDING COMMUNITY
SCHOOLS, UNIVERSAL TK AND THE
EQUITY MULTIPLIER AMONG OTHERS,
AND PLEASE ABOUT EFFORTS IN THE
BUDGET TO STREAMLINE THE
EDUCATOR PREPARED PREPARATION
PROCESS BY ELIMINATING THE BASIC
SKILLS REQUIREMENT. THANK YOU.
THANK YOU. GOOD AFTERNOON.
REBECCA MARCUS, REPRESENTING
LEADING AGE AND ALSO A PROUD GEN
XER WITH MY PAPER NOTES, AND WE
ENCOURAGE THE LEGISLATURE TO DO
EVERYTHING IN ITS POWER TO
MITIGATE THE CUTS TO HOUSING AND
HOMELESSNESS. IN PARTICULAR, WE
ARE CONCERNED ABOUT THE
MULTIFAMILY HOUSING PROGRAM IN
THE NFL INFRASTRUCTURE GRANT
PROGRAM, UM AS WELL AS THE $500
MILLION CUT TO THE 4% LOW INCOME
TAX CREDIT PROGRAM OVER AT THE
TREASURER'S OFFICE. AND UM, WE
ALSO ASK THAT YOU WOULD REJECT
THE DELAYS IN FUNDING FOR THE
PROGRAM. THANK YOU. THANK YOU.
HELLO UM SAM WILKINSON WITH THE
CALI EITC COALITION, THINKING
THE GOVERNOR FOR HIS PROPOSAL TO
PROTECT OUR STATE'S INVESTMENT
IN LOW INCOME, REFUNDABLE TAX
CREDITS AND URGE THE GOVERNOR'S
ADMINISTRATION AS WELL AS THE
LEGISLATURE TO MAINTAIN 20
MILLION IN FUNDING FOR FREE TAX
PREPARATION ASSISTANCE. THANK
YOU. THANK YOU. GOOD AFTERNOON,
MR CHAIR AND MEMBERS MIKE, A
DOCTOR OFF ON BEHALF OF A C L U
CALIFORNIA ACTION HERE TO URGE
YOU TO REJECT THE GOVERNOR'S
PROPOSED CUT TO THE PUBLIC
DEFENSE PILOT PROGRAM. THE EU IS
DEEPLY COMMITTED TO ENSURING
THAT THE GUARANTEES OF THE SIXTH
AMENDMENT ARE UPHELD AND THAT
ALL CALIFORNIANS ARE AFFORDED
THE EFFECTIVE ASSISTANCE OF
COUNSEL WHEN THEY ARE HAULED
INTO COURT IN OUR STATE. CUTTING
THIS FUNDING WILL DEPLETE AND
ALREADY DEPLETED SYSTEM AND WE
URGE YOU TO REJECT THIS. THANK
YOU. THANK YOU. GOOD AFTERNOON,
MR CHAIR AND VICE CHAIR. MY NAME
IS TONY ANDERSON AND I'M FROM
THE ASSOCIATION OF REGIONAL
CENTER AGENCIES. WE STAND
STRONGLY IN OPPOSITION TO THE
DELAY IN THE PROVIDER RATE,
WHICH REPRESENTS A ESSENTIALLY
$1 BILLION CUT TO THE PROVIDERS.
THAT MONEY GOES TO THE DEVELOPED
THE DIRECT SUPPORT PROFESSIONALS
WHO MAKE COMMUNITY LIVING
POSSIBLE SO WE'RE STANDING
STRONG AGAINST THAT. ALSO
FINALLY, THE MASTER PLAN. WE UH
WE WANT TO MAKE SURE WE HAVE A
COMMITMENT TO THE ENTITLEMENT.
THANK YOU VERY MUCH. HMM. VICTOR
LIRA WITH FABIANA HEALTHCARE. WE
SERVE THOUSANDS OF DISABLED
CALIFORNIA'S THROUGHOUT THE
STATE. WE ALSO URGE YOU TO
RECONSIDER THE DELAY OF THE RATE
IMPLEMENTATION FOR DDS. THANK
YOU. THANK YOU. ALEXIA MONDAY'S
MARCH NOW WITH PLUG IN AMERICA,
THANK YOU SO MUCH FOR YOUR TIME.
TODAY WE URGE YOU TO RESTORE
FUNDING FOR CALIFORNIA'S CLEANER
SAFETY NET IN THE FORM OF THE
CLEAN TRANSPORTATION PROGRAM.
FUNDING. THANK YOU VERY MUCH.
THANK YOU. TERRY MCHALE WITH
AARON READING ASSOCIATES
REPRESENTING CAL FIRE THANK YOU
VERY MUCH FOR THE LESS ONEROUS
PHASING INTO THE 66 HOUR WORK
WEEK. THANK YOU. THANK YOU, MR
CHAIR, MR VICE CHAIR. WE'D LIKE
TO THANK THE GOVERNOR FOR
INCLUSION AND OF THE REDUCTION
IN THE WORK WEEK FOR CAL FIRE
FIREFIGHTERS AND LOOK FORWARD TO
WORKING WITH YOU ON IMPROVING
THEIR HEALTH AND SAFETY. THANK
YOU. EXCELLENT. THANK YOU. GOOD
AFTERNOON, ALEJANDRO SOLIS ON
BEHALF OF COMMUTATION BECAUSE
WE'D LIKE TO THANK THE GOVERNOR
FOR THE INCLUSION OF SWANSEA
RESTORATION FUNDING AND ALSO
HIGHLIGHT AND ENCOURAGE THIS
BODY TO, UH CONTINUE TO
PRIORITIZE AND PROTECT. MAYBE
617 COMMUNITY AIR PROTECTION
PROGRAM FUNDING AS WELL. THANK
YOU. THANK YOU VERY MUCH. WITH
THAT. WE HAVE CONCLUDED PUBLIC
COMMENT. I WANT TO AGAIN THANK
OUR VERY TALENTED AND
HARDWORKING STAFF. WHEN I THANK
ALL OF THE FOLKS FROM THE L. A
OH, AND DEPARTMENT OF FINANCE
WHO JOINED US TODAY WE ARE OFF
ON A GREAT ADVENTURE AS WE TRY
TO PUT TOGETHER THE STATE BUDGET
OVER THE NEXT 147 DAYS.
APPRECIATE THIS LOOK FORWARD TO
CONTINUING THE CONVERSATION IN
THIS HEARING IS ADJOURNED.