OKAY. GOOD AFTERNOON, AND
WELCOME TO OUR SUMMER ASSEMBLY
BUDGET SUBCOMMITTEE FIVE HEARING
TODAY. IN ADDITION TO VARIOUS
STATE DEPARTMENTS, THIS HEARING
WILL COVER STATE EMPLOYEE
COMPENSATION, PENSIONS, AND
RETIREMENT. BUT THE HEARING
AGENDA IS AVAILABLE ON OUR
COMMITTEE WEBSITE, AND PHYSICAL
COPIES ARE AVAILABLE OUTSIDE OF
THE HEARING ROOM. A FEW
HOUSEKEEPING NOTES. THIS IS AN
IN-PERSON HEARING WITH ALL
PANELISTS TESTIFYING IN PERSON.
WE WILL TAKE QUESTIONS FROM
MEMBERS OF THE OF THIS
SUBCOMMITTEE AFTER EACH PANEL.
THEN MOVE TO PUBLIC COMMENT. ALL
PUBLIC COMMENTS WILL BE TAKEN IN
PERSON AT THE END OF THIS
HEARING. IF YOU IF YOU ARE
UNABLE TO ATTEND THIS HEARING IN
PERSON, YOU MAY SUBMIT YOUR
COMMENTS VIA EMAIL TO ASSEMBLY
BUDGET AT A-SMGCS DOT GOV. WITH
THAT, WE ARE GOING TO BEGIN AS A
SUBCOMMITTEE AND WE WILL TAKE
ROLL AFTER WE GET OTHER
PARTICIPANTS. AND JUST SO YOU
KNOW, WE HAVE NOT ONLY MYSELF
BUT OUR OTHER MEMBERS HAVE,
HEARINGS, AT THE SAME TIME, I'M
ON HIGHER ED. I KNOW ASSEMBLY
MEMBER WARD HAS PRIVACY AND MR.
PATTERSON HAS ANOTHER COMMITTEE
AT THIS TIME. SO WE ARE GOING
BACK AND FORTH. ALL RIGHT. OUR
ISSUE, OUR FIRST ISSUE IS
SECRETARY OF STATE BUDGET CHANGE
PROPOSALS, WE'D LIKE TO WELCOME
YOU UP.
FIRST, A PERSONAL NOTE. I WOULD
LIKE TO YOU TO SEND MY REGARDS
TO SECRETARY OF STATE. DOCTOR
SHIRLEY WEBER. I HAD THE
PRIVILEGE OF, NOT ONLY SERVING
WITH HER, BUT HER BEING MY
SEATMATE. AND, IT WAS A IMMENSE
HONOR. WITH THAT, LET'S START
WITH OUR FIRST BUDGET ISSUES
RELATED TO THE OFFICE OF
SECRETARY OF STATE. WE WILL
REVIEW FOUR PROPOSALS, TWO
RELATED TO INFORMATION
TECHNOLOGY AND TWO RELATED TO,
FEDERAL FUNDING, AND YOU MAY GO
AHEAD AND PRESENT. THANK YOU.
GOOD AFTERNOON. COMMITTEE CHAIR
AND MEMBERS. MY NAME IS KRISTEN
DAGGER, BUDGET OFFICER FOR THE
SECRETARY OF STATE. ON BEHALF OF
SECRETARY WEBER, THANK YOU FOR
THE OPPORTUNITY TO PRESENT THE
PROPOSALS BEFORE YOU TODAY. IN
ADDITION TO OTHER WORKLOAD
BASELINE ADJUSTMENTS, THE
SECRETARY OF STATE'S 20 2425
BUDGET INCLUDES FUNDING FOR THE
FOLLOWING PRIORITIES. ONE TIME
FUNDING OF 16.774 MILLION.
GENERAL FUND TO SUPPORT THE
CONTINUATION OF THE REPLACEMENT
SYSTEMS PROJECT. ALSO REFERRED
TO AS CARS. PROJECT. ONE TIME
FUNDING OF 4.018 MILLION FOR THE
CONTINUATION OF THE NOTARY
AUTOMATION PROGRAM REPLACEMENT
PROJECT, ALSO KNOWN AS NAP 2.0.
DO YOU WANT TO MOVE YOUR
MICROPHONE JUST A LITTLE CLOSER
TO YOU? YOU CAN PULL IT UP
THERE. THERE YOU GO, THIS
PROJECT IS SUPPORTED BY THE
SECRETARY OF STATE'S BUSINESS
FEES FUND. AND LASTLY, WE HAVE
THE ANNUAL HELP AMERICA VOTE
ACT, OR HAVA PROPOSALS. ONE TIME
EXPENDITURE AUTHORITY IN THE
AMOUNT OF 15.009 MILLION TO
CONTINUE IMPLEMENTATION OF THE
STATEWIDE MANDATES OF HAVA AND
ONE TIME EXPENDITURE AUTHORITY
OF 11.3 MILLION TO SUPPORT
CALIFORNIA STATEWIDE VOTER
REGISTRATION DATABASE VOTE COUNT
WITH ME TODAY ARE PROGRAM AND
PROJECT EXPERTS TO ANSWER ANY
QUESTIONS YOU MAY HAVE. ALL
RIGHT, IF YOU WANT TO INTRODUCE
YOURSELF. SO IT'D BE GREAT.
CHARLES LASALLE, DEPARTMENT OF
FINANCE. NO ADDITIONAL COMMENT
AT THIS TIME. OKAY NICK
SCHROEDER WITH THE LA, WE HAVE
NO COMMENTS, JESSE RAMIEN WITH
THE DEPARTMENT OF FINANCE.
NOTHING FURTHER TO ADD. ALL
RIGHT, WITH, I HAVE A FEW
QUESTIONS, WHAT IS THE TIMELINE
TO GET THE NEW CAL ACCESS SYSTEM
ONLINE AND OPERATIONAL? I KNOW
IT'S BEEN ONGOING, AND YOU'RE
NOT THE ONLY DEPARTMENT. WE HAVE
A LOT OF TECHNOLOGY PROGRAMS.
RAIMES KIND OF. MIDWAY. THANK
YOU. TO ANSWER YOUR QUESTIONS
ABOUT THE CARS PROJECT I HAVE
WITH ME. JOHN HAINLINE, THE
ASSISTANT PROJECT DIRECTOR FOR
THE CARS PROGRAM, AND TRISTAN
CORMIER FROM IT. HELLO MY NAME
IS JOHN HAINLINE. I'M THE
ASSISTANT PROJECT DIRECTOR FOR
THE CARS PROJECT, AND IN ANSWER
TO YOUR QUESTION, CURRENTLY
WE'RE EVALUATING THE VENDOR
BIDS. WE ANTICIPATE HAVING THE
VENDOR PRIME VENDOR ON BOARD BY
SUMMER 2024. AND AT THIS TIME,
WE DON'T KNOW WHEN THE SYSTEM
WILL BE IMPLEMENTED, BECAUSE
WE'LL KNOW THAT WHEN THE BID IS
SELECTED AND WE ANNOUNCE THE
VENDOR BID. BUT OUR ESTIMATE IS
THAT IT WOULD BE 27 MONTHS OF
DEVELOPMENT IMPLEMENTATION WORK.
THAT'S OUR ESTIMATE AT THIS
POINT. CAN YOU GIVE A LITTLE
JUST BACKGROUND ON WHAT YOUR
HOPE THAT CAL ACCESS SYSTEM WILL
DO COMPARED TO IN THE PAST, ONCE
IT'S FULLY OPERATIONAL? WELL,
IT'S DESIGNED TO REPLACE THE
LEGACY CAL ACCESS SYSTEM, WHICH
COLLECTS INFORMATION FROM, YOU
KNOW, CAMPAIGN CAMPAIGN FILERS
AND DISCLOSURE LOBBYING
DISCLOSURE. SO IT WILL
COMPLETELY REPLACE THAT SYSTEM
WITH A MORE DATA DRIVEN, USER,
USER FRIENDLY INTERFACE SYSTEM
THAT THAT ALLOWS FOR SCALABLE
K¾T AND FUTURE PROOFS. IT SO
THAT WE DON'T HAVE OUTDATED,
OUTMODED, YOU KNOW, TECHNOLOGY.
SO RIGHT NOW, A PUBLIC INTEREST
AND PUBLIC MEMBER CAN GO ON AND
SEE SOME INFORMATION, AS FAR AS
CONTRIBUTIONS AND THINGS LIKE
THAT. BUT THIS WOULD, UPDATE
THAT AND MAKE IT THE GIVE EVEN
MORE INFORMATION. YEAH. THAT'S
OUR PLAN. I MEAN, THERE'S
DIFFERENT GROUPS OF
STAKEHOLDERS. THERE'S, THERE'S
THE FILERS AND THEN THERE'S THE
ONES WHO THE DATA CONSUMERS. SO
IN TERMS OF DATA CONSUMERS, IT
WILL ALLOW FOR, YOU KNOW, BETTER
SEARCH CAPABILITY AND, A LOT
MORE SORT OF FUNCTIONALITY THAN
WE HAVE NOW. THANK YOU. AND
AGAIN, YOU CAN STAY UP BECAUSE
YOU I'M NOT SURE WHO WILL ANSWER
THE QUESTION, DOES THE SECRETARY
OF STATE HAVE THE RESOURCES IT
NEEDS FOR THE UPCOMING NOVEMBER,
ELECTION? WITH THE BCP THAT WE
HAVE RECEIVED IN THE PAST, WE
ARE ONBOARDING SOME STAFF TO
HAVE THE RESOURCES. YES. AND
WHEN WE TALK ABOUT RESOURCES,
CAN YOU GIVE US AN EXAMPLES OF
SOME OF THE THINGS THAT YOU DO
DO WITH THE RESOURCES YOU HAVE
OR ARE PLANNING FOR NOVEMBER? WE
DO, WE GO AND LOOK AT THE, THE
VOTE CENTERS AND MAKE SURE THAT
THEY ARE IN ALIGNMENT WITH WHAT
THEY'RE SUPPOSED TO BE DOING AS
VOTE CENTERS. WE HAVE FOLKS THAT
STAFF THE HELP DESK CALL LINES
TO HELP VOTERS FIGURE OUT WHERE
THEY'RE SUPPOSED TO GO TO VOTE
OR HOW TO VOTE. YOU KNOW,
WHETHER THEY'RE GOING TO DO IT
ONLINE OR, I MEAN, I'M THROUGH
THE MAIL OR IN PERSON.
PROCESSING THE BALLOTS ONCE THEY
I MEAN, THE COUNTS ONCE THEY
COME IN. AND THEN LAST QUESTION
ON THE VOTE CENTERS HAVE YOU,
ARE YOU TRACKING DATA THAT SHOWS
THE USAGE OF THOSE COMPARED?
BECAUSE, OF COURSE, NOW WE HAVE
MAIL IN BALLOTS, BUT PEOPLE CAN
CHOOSE TO GO TO VOTE CENTERS,
WHAT IS YOUR FEEDBACK ON HOW
THOSE ARE OPERATING? AND PEOPLE,
HOW THEY'RE ENGAGING WITH VOTE
CENTERS? IF I MAY, I'D LIKE TO
DEFER TO NIKISHA. DO YOU HAVE
ANY INFORMATION ON THE VOTE
CENTERS? NO, I DON'T HAVE THAT
WITH ME. I'M SORRY. THAT'S ALL
RIGHT, IF YOU CAN JUST REPORT
BACK TO US. DO WE HAVE ANY OTHER
QUESTIONS, FROM, LAO OR
DEPARTMENT OF FINANCE? NO. ALL
RIGHT, WELL, THANK YOU FOR YOUR
PRESENTATION, THÀNH. THANK YOU.
THANK YOU. NEXT, WE HAVE FAIR
POLITICAL PRACTICE COMMISSION
BUDGET CHANGE PROPOSAL, IF YOU
WOULD LIKE TO JOIN US. WELCOME.
FAIR POLITICAL PRACTICES
COMMISSION, ALL ELECTEDS
FAVORITE AGENCY. ALL RIGHT. WE
HAVE ONE BUDGET CHANGE PROPOSAL.
RELATED TO THE FPPC. FPPC. LET'S
GO AHEAD AND BEGIN, AND PLEASE
INTRODUCE YOURSELF. OKAY, GOOD
AFTERNOON EVERYONE. MY NAME IS
DEJUAN, ACTING CHIEF OF ADMIN AT
FPPC. SO ON BEHALF OF PPC, WE
WOULD LIKE TO, PRESENT AT THE
LOCAL ETHICS TRAINING CCP TO YOU
THIS AFTERNOON. EXISTING LAW
REQUIRES EACH LOCAL AGENCY
OFFICIAL TO RECEIVE ETHICS
TRAINING EVERY TWO YEARS, WHICH
INCLUDES TRAINING ON THEIR
ETHICS DUTY UNDER THE POLITICAL
REFORM ACT OF 1974 AND ALL OTHER
ETHNIC PRINCIPLES AND LAWS SINCE
2006. FPPC HAS MAINTAINED AN
ONLINE LOCAL ETHICS TRAINING
COURSE THAT IS AVAILABLE TO ALL
LOCAL OFFICIALS, FREE OF CHARGE.
THE COMMISSION CREATED HAS
MAINTAINED THE ETHICS TRAINING
COURSE USING ONLY EXISTING
RESOURCES, AND OVER TIME THIS
HAS BECOME UNFORTUNATELY UNSAFE.
BEALL. THE CURRENT ETHICS
TRAINING SYSTEM IS OVER 18 YEARS
OLD. AMONG OTHER ISSUES, THE
SYSTEM WAS NOT BUILT TO
ACCOMMODATE THE GROWING NUMBER
OF USERS AND ALSO CANNOT BE
UPDATED TO MEET CURRENT SECURITY
STANDARDS DUE TO ITS AGE. THE
TRAINING COURSE COURSE IS HIGHLY
BENEFICIAL RESOURCE FOR LOCAL
AGENCY IS HEAVILY RELIED ON AND
USED BY LOCAL OFFICIALS, WITH
88,900 USERS COMPLETING THE
COURSE SINCE 2010 AND OVER
16,000 USERS IN 2023 ALONE. WITH
THE PASSAGE OF AB 2215 8 IN
2022, ABOUT 2000 ADDITIONAL
AGENCY AND SEVERAL THOUSAND
ADDITIONAL AGENCY OFFICIALS WILL
BECOME SUBJECT TO THIS TRAINING
REQUIREMENT STARTING IN 2025,
WHICH IS AT PPC. EXPECT WILL
RESULT IN INCREASED USAGE OF THE
TRAINING COURSE. SO THIS BUDGET
PROPOSAL WILL ADD ONE IT
INFORMATION SPECIALIST POSITION
AND WILL PROVIDE FUNDS FOR
LEARNING MANAGEMENT SYSTEMS,
WHICH WILL ENABLE PPC TO
CONTINUE TO OFFER THIS VALUABLE
AND WIDELY USED PROGRAM FOR
LOCAL AGENCY OFFICIALS. AND
THAT'S ALL. AND WE'RE HAPPY TO
ANSWER ALL THE QUESTIONS YOU
HAVE. ALL RIGHT. BEFORE WE DO
THAT, WE'LL GO AHEAD AND TAKE A
ROLL. ASSEMBLYMEMBERS
QUIRK-SILVA HERE. ASSEMBLYMEMBER
WARD HERE. ASSEMBLYMEMBER
PATTERSON. YES. ALL RIGHT. WE
HAVE A QUORUM AND, YOU JUST
MENTIONED THAT THERE WILL BE,
NOW THOUSANDS OF, INDIVIDUALS
THAT WILL NEED TO TAKE THIS
TRAINING. FPC TRAINING, IS THAT
PROVIDED ONLINE OR HOW ARE THOSE
TRAININGS GOING TO TAKE PLACE?
SO THE TRAINING, THE ETHICS
TRAINING SYSTEM RIGHT NOW, IT'S
POSTED ON THE WEBSITE FPC
WEBSITE. SO WE EXPECTED THERE
ARE 2000 NEW AGENCY AND
THOUSANDS AGENCY, OFFICIALS WILL
SUBJECT TO THE TRAINING. SO THEY
WILL ALL UTILIZE THE ONLINE
TRAINING SYSTEM. OKAY ALL RIGHT,
AND. WITH THESE NEW FUNDS THEN
ARE YOU, CONFIDENT THAT, YOU
WILL BE ABLE TO MEET THE
DEADLINES THAT ARE NOTED, AND
ACCOMMODATE THE NEW INFLUX OF
INDIVIDUALS THAT WILL NEED TO
TAKE THESE TRAININGS? YES WE ARE
COMFORTABLE THAT BCP WILL
PROVIDE SUFFICIENT FUNDS TO
SUPPORT CONTINUED SUPPORT. LOCAL
ETHIC TRAINING SYSTEM. ALL
RIGHT. ANY QUESTIONS? ANY
COMMENTS OR QUESTIONS. ALL RIGHT
. THANK YOU VERY MUCH. THANK YOU
. ALL RIGHT. NEXT WE HAVE
DEPARTMENT OF VETERANS AFFAIRS
BUDGET CHANGE PROPOSALS. AND
WE'D LIKE TO WELCOME YOU UP.
LET'S SEE. COME WITH ME. HI.
GOOD AFTERNOON, THANK YOU VERY
MUCH. MY NAME IS BETH MUSZYNSKI,
AND I'M ASSISTANT DEPUTY
SECRETARY OF VETERANS HOMES AT
THE CALIFORNIA DEPARTMENT OF
VETERANS AFFAIRS. I HAVE OTHERS
WITH ME, BOTH HERE AND IN THE
SEATS BEHIND ME TO, ANSWER
QUESTIONS AS, AS AND PROVIDE
DETAILS AS YOU'D LIKE, I CAN
PROVIDE A BRIEF OVERVIEW OF THE
FOUR VCPUS THAT CALVERT HAS
BEFORE YOU, IF THAT'S WHAT YOU'D
LIKE ME TO DO. YES. OKAY. THANK
YOU. THERE ARE FOUR THAT WE HAVE
HERE IN FRONT OF YOU TODAY. AND
THANK YOU SO MUCH FOR YOUR TIME,
ONE OF THEM IS FOR OUR C SAVE
PROGRAM, WHICH IS WITHIN OUR VET
SERVICES DIVISION, AND IT IS
REQUESTING THE DEPARTMENT IS
REQUESTING $265,000 IN FEDERAL
TRUST FUND BEGINNING IN THE 2425
FISCAL YEAR. IT'S TO ADDRESS
INCREASED WORKLOAD WITHIN THE
PROGRAM. AND IT'S A TITLE 38
PROGRAM. AND IT IS ESSENTIALLY
TO UPGRADE TO POSITIONS WITHIN
THE PROGRAM, SECOND, THE
DEPARTMENT IS REQUESTING
$902,000 GENERAL FUND MONEY AND
$284,000 FOR, FOR, THE 2425
FISCAL YEAR. AND IT'S BROKEN OUT
BETWEEN SOME DIFFERENT
FUNCTIONS, WITH REGARD TO
IMPLEMENTATION, THE FINAL
IMPLEMENTATION OF OUR, NEW
ELECTRONIC HEALTH RECORD IN THE
VETERANS HOMES, AND THEN ALSO A
PORTION OF THE FUNDING FOR
MAINTENANCE AND OPERATIONS, AND
THEN AN ADDITIONAL $415,000 IN
THE NEXT FISCAL YEAR FOR
MAINTENANCE AND OPERATIONS OF
THE NEW ELECTRONIC HEALTH RECORD
SYSTEM, AT THE VETERANS HOMES IN
AT CALVERT HEADQUARTERS. THIRD
AND FOURTH ARE TWO BC FOR THE
VETERANS HOMES DIVISION, WHICH
IS A DIVISION THAT MY COLLEAGUE
AND I ARE HERE ON BEHALF OF. AND
THE FIRST ONE IS FOR OUR BARSTOW
VETERANS HOME. IT'S ACTUALLY A
REDUCTION IN, IT ALIGNS WITH OUR
MASTER PLANNING EFFORTS TO, OVER
TIME, REDUCE THE DOMICILIARY
PROGRAM, WHICH IS THE
INDEPENDENT LIVING PROGRAM AT
THAT HOME. AND SO THIS IS A
REDUCTION OF $265,000 OF GENERAL
FUND FUNDING IN THE NEXT FISCAL
YEAR. AND A REDUCTION OF 30
BUDGETED DOMICILIARY BEDS AND
TWO POSITIONS. FINALLY, THE
DEPARTMENT IS REQUESTING FOR THE
NEW SKILLED NURSING BEALL
SKILLED NURSING FACILITY
BUILDING IN THE YOUNTVILLE
VETERANS HOME, AN ADDITIONAL
5.38 9,000,040.2 POSITIONS IN
THE NEXT FISCAL YEAR, AND THEN
12.12, 9 MILLION AND 108
POSITIONS ANNUALLY THEREAFTER TO
SUPPORT THE STAFFING NEEDS OF
THAT NEW BUILDING, THANK YOU SO
MUCH FOR YOUR TIME AND
CONSIDERATION OF THESE REQUESTS.
AND I AND MY COLLEAGUES ARE
HAPPY TO ANSWER ANY QUESTIONS
THAT YOU HAVE. ALL RIGHT. I'LL
LET YOU GO AHEAD AND START. I
JUST WANTED TO HIGHLIGHT AND
THANK YOU FOR YOUR COMMITMENT TO
INCREASING SKILLED NURSING
FACILITY CAPACITY. THAT'S
SOMETHING WE DESPERATELY NEED,
ESPECIALLY FOR THOSE THAT
QUALIFY IN THESE FACILITIES
ACROSS THE STATE, BUT GENERALLY
ACROSS OUR STATE. IT'S SOMETHING
I'M HEARING A LOT MORE, AS AS
PEOPLE ARE WATCHING THEIR
PARENTS BECOME, TO A POSITION OF
NEED, FOR THESE ACROSS OUR
COMMUNITY. SO EVEN DESPITE A
VERY DIFFICULT BUDGET YEAR, IT'S
SOMETHING I VERY STRONGLY
SUPPORT. AND I APPRECIATE YOUR
COMMITMENT. THANK YOU. I
APPRECIATE THAT. I DO HAVE A
QUESTION ON, THE SKILLED
NURSING. HOW MANY BEDS, WILL YOU
HAVE ONCE THIS IS COMPLETELY
BUILT OUT, AND BRETT LAPPE WITH
THE HOMES DIVISION. CALVERT,
WITH THE NEW SKILLED NURSING
FACILITY WILL HAVE 240 BEDS
SPLIT BETWEEN REGULAR SKILLED
NURSING AND MEMORY CARE. AND
THEN, WHAT IS THE PROCESS FOR A
VETERAN IN CALIFORNIA TO GAIN
ADMITTANCE OR ACCESS TO LIVING
THERE? OKAY. DO YOU WANT ME TO
SPEAK? OKAY, SURE. HAPPY TO.
THEY'RE OKAY. I'LL TALK ABOUT
THE REQUIREMENTS AND THEN, AND
WHERE THEY CAN BE FOUND. AND
THEN ALSO A LITTLE BIT ABOUT THE
PROCESS, ELIGIBILITY, IS FOUND
WITHIN STATUTE, MILITARY AND
VETERANS CODE. AND THEN ALSO
WITH, WITHIN OUR REGULATIONS IS
THE FOR CALVERT, THE OFFICIAL
REGULATIONS FOR CALVERT. AND
THERE ARE A NUMBER OF
ELIGIBILITY REQUIREMENTS THAT
ARE MORE BROADLY LAID OUT IN
STATUTE TO INCLUDE, THE FEDERAL
VA, DEEMING THEM APPROPRIATE FOR
LONG TIME CARE BY, BY THE, BY
THE DEPARTMENT. AND SO WE HAVE
THAT COORDINATION WITH THEM AS
WELL AS THE OTHER ELIGIBILITY
REQUIREMENTS. AND THEN IN MORE
DETAIL, SOME ADDITIONAL
REQUIREMENTS ARE SPELLED OUT IN
REGULATION FOR INCLUDING FOR
PRIORITIZATION FOR PEOPLE WITH
CERTAIN CHARACTERISTICS OR
CERTAIN ACCOMPLISHMENTS DURING
THEIR SERVICE, OR CERTAIN NEEDS.
AND THEN THE PROCESS WE HAVE OUR
APPLICATION ONLINE, OR IT CAN BE
PRINTED AND MAILED IN, WHICHEVER
PEOPLE PREFER, BUT IT'S
AVAILABLE TO THEM AND THEY APPLY
TO A PARTICULAR HOME, THAT CAN
BE MOVED TO ANOTHER HOME IF THEY
WISH TO CHANGE THEIR MIND. WE
HAVE A DIRECTOR OF ADMISSIONS
WHO WORKS ALL THE TIME WITH
FAMILIES. AND THEN, OF COURSE,
OUR ADMISSIONS STAFF IN THE
OFFICES. BUT WE DO HAVE AN
ONLINE APPLICATION THAT THEY
SUBMIT IT. AND THEN THERE IS A
WHOLE PROCESS THAT THE HOMES
CARRY OUT, AND IT INVOLVES,
COLLECTING MEDICAL RECORD
INFORMATION THAT WE CAN USE TO
DETERMINE THE APPROPRIATE LEVEL
OF CARE AND APPROPRIATE
PROGRAMING, IT INVOLVES DOING AN
ON SITE ASSESSMENT TAUGHT BY A
NURSE OR A PHYSICIAN. ONCE IT
GETS CLOSER TO TIME FOR THEM TO
MOVE IN, AND THAT THAT'S SORT OF
AN EVALUATION AND JUST
COLLABORATIVE EFFORT WITH THE
APPLICANT OR THEIR FAMILY, I
HOPE THAT ANSWERS YOUR QUESTION.
IF I'M OFF POINT, JUST. OKAY.
THAT'S GREAT. COULD YOU GET US,
KIND OF A COPY OF HOW TO
NAVIGATE. OH, SURE. BECAUSE WE
ALL I KNOW ALL OF US HAVE
CONSTITUENTS THAT COME TO US,
AND SOMETIMES IT'S WE WANT TO BE
ABLE TO GET TO INFORMATION. YES,
MA'AM. AND THEN GOING BACK TO,
THE BARSTOW VETERANS HOME,
OBVIOUSLY, THIS IS A LITTLE BIT
OF AN OUTLIER WHERE YOU'RE
ASKING FOR A REDUCTION BECAUSE
YOU'LL BE REDUCING BEDS BY 30
BEDS. WHY IS THAT? DO YOU WANT
TO SPEAK? I'LL TAKE THAT, THE,
THE 2020 MASTER PLAN FOR THE
VETERANS HOMES IN CALIFORNIA
IDENTIFIED WIDE, AREAS WHERE WE
CAN SPECIFICALLY THE AREAS OF
LEVELS OF CARE. WE WANT TO MAKE
SURE THAT THE LEVELS OF CARE OF
EACH HOME ALIGN WITH AND MEET
THE NEED FOR THE COMMUNITIES IN
WHICH THEY THEY SERVE. AND SO,
IN OUR STUDY FOR THE 2020, IN
THE 2020 MASTER PLAN, WE FOUND
THAT THE DOMICILIARY LEVEL OF
CARE IN BARSTOW WAS ONE THAT WAS
QUITE UNDERUTILIZED AND SO IN
THE MASTER PLAN, WE SUGGESTED
THAT WE, THROUGH ATTRITION,
CLOSE THE DOMICILIARY PROGRAM,
AND OPEN UP A RESIDENTIAL CARE
FACILITY FOR THE ELDERLY BECAUSE
THERE'S MORE DEMAND FOR THAT
LEVEL OF CARE THEN ALSO
INCREASING THEIR SKILLED NURSING
BEDS BY 20. SO IT WAS PART OF
THAT WHOLE 2020 MASTER PLAN AND
TRYING TO MAKE SURE THAT WE
RIGHTSIZE OUR HOMES FOR THE
COMMUNITY NEED. SO BY CLOSING
THESE 30 BEDS, THAT DOESN'T
NECESSARILY MEAN THEY'LL JUST BE
VACANT BEDS. YOU'LL BE USING
THEM FOR SOMETHING ELSE. IS THAT
WHAT YOU'RE SAYING? WELL, THERE
WILL BE THERE WILL BE A
TRANSITION. THÀNH ONCE THE
DOMICILIARY BED, THE NUMBER OF
FOLKS IN THE DOMICILIARY REACHED
A CERTAIN NUMBER, THEN WE'LL
START THAT TRANSITION THROUGH
THE RESIDENTIAL CARE FACILITY
FOR THE ELDERLY. I THINK WE'RE
KIND OF IN THAT PROCESS RIGHT
NOW. AND SO THERE WILL BE
UTILIZATION OF SOME OF THOSE
VACANT BEDS, BUT EVENTUALLY
THERE WILL BE SOME DOMICILIARY
BUILDINGS THAT WILL CLOSE. AND I
KNOW THE LOCATION ALSO CAN BE A
BARRIER JUST DEPENDING ON WHERE
PEOPLE WANT TO BE. BUT MAYBE A
RED FLAG. ON LOOKING AT
OPPORTUNITIES TO USE THOSE BEDS.
AND I KNOW THERE'S A LOT OF
FEDERAL LAWS AND STATE LAWS AND
COUNTY ALL OF THOSE, BUT I WOULD
JUST HATE TO SEE BEDS THAT COULD
BE USED FOR SOMEBODY WHEN WE
HAVE SUCH AN ISSUE WITH VETERANS
WHO ARE HOMELESS AND SO FORTH.
CERTAINLY WE ARE. WE'RE
CERTAINLY EXPLORING
OPPORTUNITIES WHERE WE CAN
BETTER SERVE THE VETERAN
COMMUNITY IN THAT AREA. WITH
THAT VACANT BUILDING. ANY
QUESTIONS, DOV OR LEO? ALL
RIGHT. WELL, THANK YOU SO MUCH.
WE APPRECIATE IT. THANK YOU.
HAVE YOU ALREADY ARE YOU GOING
TO GO BACK TO YOUR. OKAY. OKAY,
I'LL JUST STAY. ALL RIGHT. NEXT
WE HAVE DEPARTMENT OF HUMAN
RESOURCES, WE WILL REVIEW TWO
BUDGET CHANGE PROPOSALS AND A
REQUEST FOR TRAILER BILL
LANGUAGE. WELCOME AND PLEASE
INTRODUCE YOURSELF. GOOD
AFTERNOON, CHAIR AND MEMBERS. MY
NAME IS MONICA ERICKSON, CHIEF
DEPUTY DIRECTOR OF DEPARTMENT OF
HUMAN RESOURCES, KELLY CHÁVEZ.
FISCAL YEAR 20 2324 BUDGET IS
135 MILLION AND 453 POSITIONS.
WE ARE REQUESTING TWO POSITIONS
IN THIS BUDGET AND IF APPROVED,
WOULD BRING US TO 454 POSITIONS
IN 2425. THIS INCLUDES 15
POSITIONS AND AN INCREASE OF $32
MILLION APPROVED BY THE 2324
BUDGET ACT. AND I'LL GO AHEAD
AND GO OVER THE BUDGET CHANGE
PROPOSALS. THE FIRST BUDGET
CHANGE PROPOSAL IS WORKLOAD FOR
THE PSYCHOLOGICAL SCREENING
PROGRAM. WE ARE REQUESTING TO
TRANSITION TO LIMITED TIME
POSITIONS, TO PERMANENT AND
433,000 IN REIMBURSEMENT
AUTHORITY AND ONGOING TO ADDRESS
STAFFING ISSUES IN THE
PSYCHOLOGICAL SCREENING PROGRAM.
WITH THESE RESOURCES, THE
DIVISION WILL BE ABLE TO CONDUCT
TIMELY PRE-EMPLOYMENT
PSYCHOLOGICAL ASSESSMENTS FOR
LAW ENFORCEMENT CANDIDATES, FOR
STATE AGENCIES, THIS REQUEST
WILL CONTINUE TO SUPPORT CHP IN
ITS ONGOING RECRUITMENT AND
HIRING EFFORTS TO ADDRESS ITS
CRITICAL SHORTAGE OF PEACE
OFFICERS. CHP HAS HISTORICALLY
HELD FOUR ACADEMIES PER YEAR,
WITH 90 TO 100 CANDIDATES IN
EACH, BUT AS OF 2023, CHP IS NOW
HOLDING SIX ACADEMIES PER YEAR,
WITH THE GOAL OF 150 TO 160
CANDIDATES IN EACH, SHALL I
CONTINUE TO THE NEXT BUDGET
PROPOSAL OR DO YOU HAVE ANY
QUESTIONS, JUST ON THAT PROPOSAL
AS FAR AS THE ADDITIONAL
ACADEMIES, ARE YOU FINDING IT
HARDER TO RECRUIT JUST FROM THE
BEGINNING OF THE PROCESS? I
MEAN, I KNOW ONCE YOU GET INTO
THE PROCESS, YOU NEED TO DO THE
PSYCHOLOGICAL AND ALL THE OTHER
PARTS. BUT JUST AS FAR AS PEOPLE
COMING INTO THE PROFESSION AND
BEING INTERESTED, WHAT ARE YOU
SEEING IN THAT? WELL LET ME.
MICHELLE, DO YOU WANT TO COME ON
UP? I'LL HAVE MICHELLE VILLADOS,
WHO'S THE PROGRAM EXPERT, TALK A
LITTLE BIT ABOUT THAT. HI, I'M
MICHELLE VALADEZ WITH KELLY CHA,
AS I UNDERSTAND IT, YOU WERE
ASKING IF WE'RE FINDING IT
DIFFICULT TO RECRUIT INTO THESE
POSITIONS FOR THE PSYCHOLOGISTS,
THERE ARE SOME CHALLENGES. REYES
IT, UNLIKE OTHER PSYCHOLOGICAL
PSYCHOLOGISTS, POSITIONS WITHIN
THE STATE OF CALIFORNIA ARE
POSITIONS REQUIRE A MINIMUM OF
FIVE YEARS OF PROFESSIONAL
WORKING EXPERIENCE, WITH THREE
YEARS BEING POST-DOCTORATE. SO
WE DO HAVE A LITTLE BIT OF A
CHALLENGE WITH RECRUITING. WE'RE
OFTEN RECRUITING PSYCHOLOGISTS
WHO DO NOT HAVE THE SPECIFIC
EXPERIENCE AND THEN TRAINING
THEM TO, TO DO THIS SPECIFIC
WORK. THAT'S ACTUALLY, I WAS
ACTUALLY THINKING ABOUT MORE OF
RECRUITING THE RECRUITS TO COME
IN, BUT TALK ABOUT THE
PROFESSION OF BEING, RECRUITING
THE PSYCHOLOGIST. IT'S A VERY
SPECIFIED FIELD. SO I CAN SEE
WHY YOU WOULD HAVE EITHER TO
TRAIN OAN OR ENCOURAGE PEOPLE
TO GET INTO IT, BECAUSE IT'S NOT
PROBABLY A PART OF PSYCHOLOGY
THAT PEOPLE THINK. I THINK I
THINK THERE'S SOME INCREASED
INTEREST OVER THE PAST FEW
YEARS. BUT YOU'RE RIGHT, IT IS
NOT A VERY IT'S A VERY NICHE
AREA OF PSYCHOLOGY. AND WHAT
ABOUT THE RECRUITS THEMSELVES
GOING INTO FOR CHP AND THE OTHER
HIRING AGENCIES? EVERYONE IS
EXPERIENCING SIGNIFICANT
DIFFICULTY WITH RECRUITMENT
RIGHT NOW. AND THAT'S NOT JUST
HERE IN CALIFORNIA. THAT'S
ACROSS THE UNITED STATES, I
UNDERSTAND CHP IN PARTICULAR IS
EXPANDING TO RECRUIT ACROSS THE
US, SIMPLY BECAUSE THE
RECRUITMENT PROCESS HAS BECOME
MORE CHALLENGING THAN IT WAS
PREVIOUSLY. VÆ DO YOU ATTRIBUTE
THAT TO ANY SPECIFIC? I THINK
CERTAINLY THE FOCUS ON LAW
ENFORCEMENT, IS PERCEIVED AS
CONTRIBUTING TO THIS. THERE'S
ALSO A HIGH ATTRITION RATE,
AMONG THOSE WHO HAVE PEACE
OFFICERS WHO ARE OUT, I'M GOING
TO SAY WORKING ON THE STREET
VERSUS DOING, FOR INSTANCE,
INVESTIGATIONS, THERE'S A LOT OF
PUBLIC SCRUTINY. AND I THINK
THAT THAT'S CONTRIBUTING TO BOTH
THE LOSS OF PEACE OFFICERS AND
THE LOSS OF INTEREST IN BECOMING
A PEACE OFFICER. MAKES SENSE.
ALL RIGHT. THANK YOU. IF YOU
WANT TO CONTINUE. SURE. THANK
YOU VERY MUCH, THE NEXT BUDGET
CHANGE PROPOSAL IS OUR
TECHNOLOGY MODERNIZATION THÀNH
SECURITY. THIS PROPOSAL REQUESTS
350,000 ONGOING TO INCREASE
SECURITY MEASURES DUE TO THE
SENSITIVE AND CONFIDENTIAL DATA
THAT CAL AIR SYSTEMS COLLECT.
THIS FUNDING WILL ENHANCE
SECURITY FOR PUBLIC AND EXTERNAL
FACING SYSTEMS, SUCH AS OUR CAL
CAREERS AND OUR ECOSYSTEM. BY
ADDING A TWO FACTOR
AUTHENTICATION FEATURE AND
SUBSCRIPTION AND LICENSING
FUNDING FOR A SERVICE THAT WILL
BE USED TO TRACK AND ARCHIVE
SECURITY LOGS. THIS REQUEST WILL
ALIGN WITH THE DIRECTION FROM
THE CALIFORNIA DEPARTMENT OF
TECHNOLOGY TO ESTABLISH SECURITY
CONTROLS AGAINST THREAT ACTORS
THAT MAY COMPROMISE DIGITAL
IDENTITIES TO CARRY OUT VARIOUS
MALICIOUS ACTIVITIES. ALL RIGHT.
ANY QUESTIONS, DEPARTMENT OF
FINANCE NATALIE GRISWOLD,
DEPARTMENT OF FINANCE. NOTHING
TO ADD AT THIS TIME. LÀ. OH. ALL
RIGHT. THANK YOU VERY MUCH FOR
YOUR PRESENTATION. THANK YOU THE MONTHLY PAYROLL
CYCLE TO A BIWEEKLY PAYROLL
CYCLE. AND WE IMPLEMENT CSPS,
I'LL BE HAPPY TO ANSWER ANY
ADDITIONAL QUESTIONS YOU MIGHT
HAVE. ANY OTHER QUESTIONS? I
WOULD EXPECT THAT, PEOPLE WHO
ARE GETTING PAID BI WEEKLY WOULD
PROBABLY LIKE THAT, BUT. ALL
RIGHT. THANK YOU. THANK YOU, NO
OTHER QUESTIONS. OKAY. THANK YOU
SO MUCH FIRST, THE GOVERNOR'S BUDGET
INCLUDES BUDGET AND TRAILER BILL
LANGUAGE AUTHORIZING THE
DEFERRAL OF ONE OF THE PAYROLL
COSTS FROM FISCAL YEAR 20 2425
TO THE 20 2526 FISCAL YEAR. THIS
LANGUAGE WILL ALLOW THE STATE TO
ACCRUE ITS PAYROLL COSTS FOR THE SAID 32 3.2 BILLION, OF
WHICH 1.6 BILLION IS ESTIMATED
TO BE GENERAL FUND. OKAY. SO BY
DOING THIS, IT WOULD BE A 1.6
BILLION TO
, PRACTICE AND THAT, YOU KNOW,
THE ACCOUNTING MANEUVER, THOUGH,
DESPITE ITS SHORTFALLS, WE THINK
THAT THE BUDGETARY BENEFIT
OUTWEIGH THOSE TRADE OFFS. AND
SO WE RECOMMEND THAT THE
LEGISLATURE APPROVE THE LANGUAGE
. ALL RIGHT, DEPARTMENT OF
FINANCE, WE'LL
INCLUDES 1.5 BILLION IN
ESTIMATED ONE TIME SAVINGS IN
FISCAL YEAR 2024 ASSOCIATED WITH
IMPLEMENTATION OF THIS PROPOSED
BUDGET SOLUTION. WE WOULD LIKE
TO NOTE, AS NOTED ON YOUR AGENDA
, THAT THIS PROPOSAL DOES NOT
INCLUDE THE AUTHORIZATION FOR
THE DEPARTMENT OF FINANCE TO
ADJUST OR ELIMINATE POSITION
AUTHORITY FOR ANY DEPARTMENTS
BASED ON THE CURRENT VACANCY
LEVELS, AND THAT ANY PROPOSED
REDUCTIONS TO DEPARTMENT BUDGETS
BASED ON THE VACANCY LEVELS
WITHIN FISCAL YEAR 20 2425 IS
BEING PROPOSED ON A TEMPORARY
BASIS US IN A FUTURE
BUDGET YEAR? COULD LUNCH, I
GUESS, FOR MOVING THIS $1.6
BILLION INTO NEXT FISCAL YEAR?
THAT THAT ARE WE ARE WE HAVING
13 PAY PERIODS THEN OR WOULD WE
IN THAT IN THAT FISCAL YEAR.
YEAH. SO THE WAY IT WORKS IS
ESSENTIALLY IT'S A ONE TIME
SAVING SOLUTION FOR THE BUDGET.
UNDERSTAND AND WE'LL CARRY ON,
GOING FORWARD WOULD BE STILL 12,
PAY PERIODS EACH YEAR. BUT TO
UNDO IT, WE WOULD HAVE TO PAY A
13TH PAY PERIOD. AND SO AT SOME
FUTURE DATE WHEN THE LEGISLATURE
MAKES THE DECISION TO ENSURE THAT, SORT OF
ESSENTIAL POSITIONS OR ONGOING,
YOU KNOW, POSITIONS NECESSARY
FOR ONGOING WORK, THAT THEY
MIGHT BE VACANT TODAY, BUT WE'RE
ASSUMING OR WE WOULD NEED
CRITICAL FUNCTIONS DONE, I GUESS
IS THIS A BROAD SWEEP OF ALL OR
MOST VACANT POSITIONS OR OR HOW
HOW HOW MUCH HAVE YOU REALLY
GOTTEN INTO A DETAILED ANALYSIS
ABOUT THE NECESSITY FOR, FOR,
VACATING THESE VACANT, THESE
VACANT POSITIONS, HI. I CAN
ANSWER THAT, SO THE
ADMINISTRATION'S CURRENT
PROPOSAL DOES, WE DO BELIEVE
THAT WE ARE ABLE TO ACHIEVE
THOSE SAVINGS IF IMPLEMENTED IN
THE FALL. WE WOULD LIKE TO NOTE
THAT THE PROPOSED SOLUTION WILL
INVOLVE WORKING WITH DEPARTMENTS
TO IDENTIFY POSITIONS THAT MAY
BE NEEDED TO CONTINUE HIRING TO
MEET REGULATORY REQUIREMENTS OR
PUBLIC SAFETY STAFFING LEVELS AS
REQUIRED BY VARIOUS SETTLEMENTS
OR ANY OTHER PUBLIC SAFETY
CONCERNS WHERE THIS PROPOSAL
WOULD POTENTIALLY IMPACT CURRENT
OPERATING LEVELS OR NECESSARY
OPERATING LEVELS. SO THE GOAL OF
THIS IS TO IMPLEMENT KIND OF
CAPTURING THE SAVINGS THAT 20
2425. WE'RE PROPOSING TO CAPTURE
THE SAVINGS BASED ON THE VACANCY
DATES PROVIDED CLOSER TO THE
START OF THE FISCAL YEAR. SO
ONCE WE KNOW WHAT VACANCIES
DEPARTMENTS HAVE AT THE TIME,
THEN IT WILL BE DETERMINED WHAT
VACANT, WHAT SAVINGS ARE
ACHIEVABLE. BUT AGAIN, I ARE YOU
JUST VERY BROADLY TRYING TO
RECAPTURE ALL OF THOSE VACANCY
SAVINGS BASED ON THE INFORMATION
THAT'S PROVIDED TODAY? OR HAVE
YOU REALLY GONE THROUGH AND
DETERMINED THE NECESSITY, I
GUESS, FOR THOSE POSITIONS FOR
THE COMING FISCAL YEAR, THE
DEPARTMENT OF FINANCE IS
CONTINUING TO WORK ON THE
IMPLEMENTATION OF THIS DRILL AND
WORKING WITH DEPARTMENTS TO
IDENTIFY WHAT IS FEASIBLE, AS I
MENTIONED, BASED ON A EFFORTS
THUS FAR, WE BELIEVE THAT THE
AMOUNT THAT WE'VE INCLUDED IN
THE GOVERNOR'S BUDGET IS
ACHIEVABLE WITH THOSE WITH THOSE
THOUGHTS IN MIND, BUT THE FINAL
IMPLEMENTATION OF THIS SOLUTION
WILL BE DEPENDENT ON, WORKING
WITH DEPARTMENTS IN THE FALL TO
INCLUDE IN THE UPCOMING
GOVERNOR'S BUDGET. OKAY, AND HOW
DO YOU HAD MEANINGFUL
CONVERSATIONS WITH ANY
COLLECTIVE BARGAINING UNITS, WE
HAVE NOT HAD CONVERSATIONS WITH
COLLECTIVE BARGAINING UNITS ON
THIS TOPIC. HOWEVER, WE NOTE
THAT THIS PROPOSAL DOES NOT
INVOLVE PROPOSING A HIRING
FREEZE FOR DEPARTMENTS OR LAYING
OFF ANY CURRENT EMPLOYEES. IT IS
ONLY PROPOSING TO RECAPTURE
SAVINGS TEMPORARILY FOR A
POSITION AUTHORITY THAT IS NOT
BEING UTILIZED BY DEPARTMENTS.
DEPARTMENTS WILL RETAIN THEIR
EXISTING POSITION AUTHORITY AND
WILL BE ABLE TO CONTINUE HIRING
WITH THAT, WITH ANY VACANCIES
THAT ARE CURRENTLY AVAILABLE OR
WE'RE NOT PROPOSING TO SWEEP
100% OF THE FUNDING RELATED TO
POSITIONS, THEY WOULD STILL BE
ABLE TO FILL SOME EXTENT OF
THOSE POSITIONS. WE ARE ASKING
THEM TO FOCUS ON FILLING THE
MORE CRITICAL NEEDS WITH THE
FUNDING THAT THEY HAVE. OKAY.
THANK YOU. I THINK IT WOULD BE
HELPFUL. I JUST WANT TO I'LL
FLAG THIS ISSUE, I GUESS, TO SEE
HOW THINGS EVOLVE, MAYBE
ESPECIALLY AFTER THE MAY REVISE.
I THINK IT'D BE HELPFUL TO
UNDERSTAND ON A, YOU KNOW,
DEPARTMENT LEVEL OR AGENCY LEVEL
ANALYSIS, YOU KNOW, HOW MANY
POSITIONS ARE WE TALKING ABOUT?
AND IMPORTANTLY FOR ME, WHAT
MIGHT THAT, TRANSLATE INTO IN
THE FORM OF OPERATIONAL IMPACTS,
FOR THE GOALS THAT WE'RE TRYING
TO ACHIEVE THROUGH, THROUGH
THESE DEPARTMENTS. NOTED. THANK
YOU. THANK YOU. AND MY QUESTIONS
, ARE IN LINE WITH, ASSEMBLY
MEMBER, MY CONCERN IS THAT ALL
THE DEPARTMENTS ARE NOT EQUAL IN
SENSE OF THEIR NEEDS. SO YOU MAY
HAVE ONE DEPARTMENT THAT'S MUCH
SMALLER. SO, NOT BACKFILLING
SOME OF THOSE POSITIONS CAN HAVE
A MUCH BIGGER IMPACT THAN MAYBE
A DEPARTMENT THAT'S TRIPLE THE
SIZE. SO IF THERE'S ANY WAY
BEFORE WE REALLY GET INTO THE
WEEDS HERE, IN MAY TO GET SOME
KIND OF NUMBERS THAT MIGHT SAY
HOW LARGE THE DEPARTMENT IS AND
HOW MANY POSITIONS WE'RE LOOKING
TO, IN ESSENCE, TO PUT ON HOLD,
BEFORE HIRING, BECAUSE THE OTHER
ISSUE THAT I'VE HEARD SEVERAL
TIMES, NOT NECESSARILY HERE
TODAY, BUT IN OTHER HEARINGS, IS
THE RECRUITING, LONG TERME
TRYING TO GET PEOPLE BACK ON
BOARD. I KNOW WE HEARD THAT IN I
THINK WORKER'S COMP THAT ONE OF
THE ISSUES THERE WAS THEY
COULDN'T HIRE PEOPLE TO DO THESE
INVESTIGATIONS. SO THEN IF WE
ARE ACTUALLY, GOING TO NOT
BACKFILL THOSE POSITIONS, YOU'RE
GOING TO PROLONG SOME OF THOSE
SITUATIONS. SO JUST IF WE CAN
GET A LITTLE BIT MORE
INFORMATION ON THAT, I THINK
THAT WOULD BE HELPFUL. BUT I DO
HEAR YOU ON THE BARGAINING THAT
WAS AN EXCELLENT QUESTION. IS,
IT'S GOOD TO KNOW THAT IT'S NOT
GOING TO AFFECT THAT, ALL RIGHT.
WE WILL MOVE TO THE NEXT PART,
WHICH IS OUR DEBT PAYMENTS. AND,
PLEASE INTRODUCE YOURSELF. NOEL
DEPARTMENT OF FINANCE, THE 20
2425 GOVERNOR'S BUDGET INCLUDES
6.9 BILLION, OF WHICH IS 3.5
BILLION GENERAL FUND FOR THE
STATE'S REQUIRED CALPERS PENSION
PAYMENT. AND THAT IS INCLUSIVE
OF CSU. ADDITIONALLY PROPOSITION
TWO REQUIRES DEBT REPAYMENTS
EVERY YEAR UNTIL 2030, AND SO
THE GOVERNOR'S BUDGET INCLUDES
AN 885,000,001 TIME SUPPLEMENTAL
PENSION PAYMENT, UNDER PROP TWO
TOWARDS CALPERS STATE PENSION
PLANS. AND THE LAST PIECE IS THE
GOVERNOR'S BUDGET PROPOSES TO
APPLY A PRIOR SUPPLEMENTAL
PENSION. PAYMENT IN A MANNER
THAT WILL REDUCE REQUIRED
EMPLOYER CONTRIBUTIONS FOR THE
BUDGET YEAR, FOR CONTEXT, AT THE
2023 BUDGET ACT INCLUDED A 1.7
BILLION PROPOSITION TWO
SUPPLEMENTAL PENSION PAYMENT.
THIS HAS ALREADY BEEN
TRANSFERRED TO CALPERS. HOWEVER
IT HAS NOT YET BEEN APPLIED TO
THE DEBT ON CALPERS STATE PLANS
OR FACTORED INTO THE REQUIRED
CONTRIBUTIONS. SO UNDER THIS
PROPOSAL, THE STATE WOULD DIRECT
CALPERS TO APPLY THAT PRIOR
SUPPLEMENTAL PENSION PAYMENT TO
REDUCE REQUIRED EMPLOYER
CONTRIBUTIONS IN 2425. WE
ESTIMATE THAT THIS WILL SAVE 1.7
BILLION IN BUDGET YEAR, WHICH IS
1.3 GENERAL FUND BILLION GENERAL
FUND. ALL RIGHT. THANK YOU, I
SEE IF YOU HAVE ANY QUESTIONS.
YES, I WAS GOING TO JUST SAY
THAT. CAN WE HEAR FROM THE LAO,
SURE, NICK SCHROEDER AGAIN OF
THE LAO, WE DON'T RAISE CONCERNS
WITH THEIR PROPOSED USE OF THE
2425 PROPOSITION TWO PAYMENT,
BUT WE DO RAISE CONCERNS ABOUT
THE USE OF THE 23, 24, DEBT
PAYMENT IN PARTICULAR. WE THINK
THAT THE PROPOSAL, WHICH WOULD
REDUCE AS, AS FINANCE SAID,
WOULD REDUCE THE BUDGET YEAR
CONTRIBUTION TO CALPERS. WE
THINK THAT THAT WOULD BE A
PLANTATION INSTEAD OF A
SUPPLEMENTATION OF THE STATE'S
PENSION BENEFIT OR PENSION
CONTRIBUTIONS AND WOULD
THEREFORE BE, IN VIOLATION OF
THE PROP TWO. SO WE THINK THAT
IT APPEARS UNCONSTITUTIONAL, BY
THAT STANDARD. AND WE DO PROPOSE
SOME ALTERNATIVES THAT COULD
POTENTIALLY, HAVE GREATER
LIKELIHOOD OF BEING
CONSTITUTIONAL AND HAVE SIMILAR
FINANCIAL BENEFIT. AND WHAT'S
THE DEPARTMENT'S RESPONSE, BASED
ON, WHAT WE KNOW AT THE TIME, WE
WOULD NEED ADDITIONAL DETAILS TO
FULLY EVALUATE, WE DO, AS WE
UNDERSTAND THE ALTERNATIVE, WE
DON'T BELIEVE IT WOULD BE A
SIMILAR MAGNITUDE OF SAVINGS, WE
ESTIMATE IF, IT WOULD BE ABOUT
885 INSTEAD OF 1.3 BILLION.
GENERAL FUND. OKAY, OBVIOUSLY
IT'S A BIG NUMBER THAT WE'RE
TALKING ABOUT THAT WE WANT TO
GET RIGHT, OR HAVE TO DEAL WITH,
PRETTY SIGNIFICANT, ISSUE DOWN
THE ROAD. MADAM CHAIR, I DON'T
KNOW IF IT'S APPROPRIATE THAT WE
MAYBE REQUEST LEGISLATIVE
COUNSEL GET BACK TO COMMITTEE AS
WELL ON THEIR OPINION AND JUST
SORT OF TAKE, YOU KNOW,
INFORMATION FROM ALL OF THESE,
VERY PROFESSIONAL OPINIONS, INTO
CONSIDERATION AS WE'RE TRYING TO
MAKE A DECISION ABOUT THIS
ISSUE. YES, I AGREE, AND THAT'S,
YOU YOU SAID 830, AS WE
UNDERSTAND THE ALTERNATIVE, IT
WOULD BE TO TAKE THE 885 MILLION
CURRENTLY PROPOSED AS A
SUPPLEMENTAL PAYMENT TO CALPERS
AND INSTEAD DIRECT IT TO
CALSTRS. AND THAT WOULD BE THE
LEVEL OF SAVINGS. ALL RIGHT. NO,
I DEFINITELY THINK WE NEED MORE
INFORMATION. AND, AN ANALYSIS ON
THIS, ANY OTHER COMMENTS? ALL
RIGHT. THANK. YOU WANT TO GO
AHEAD IN, REPORT OUT ON THE
CALSTRS, CHAIR, IF I MAY ADD, WE
ACTUALLY BELIEVE THAT THERE
WOULD BE MORE THAN 885 MILLION
AVAILABLE FOR 2425. AND WHAT IS
THAT NUMBER, I THINK, WE HAVE
THE ANALYSIS THAT IT WOULD BE
ABOUT A BILLION ON THE CALSTRS
SIDE. AND ABOUT 100 MILLION ON
THE CALPERS SIDE. SO POTENTIALLY
1.1 BILLION. DO YOU WANT TO
INTRODUCE YOURSELF? OH, I'M
SORRY, ANNE HOLLINGSHEAD FROM
THE LEGISLATIVE ANALYST'S
OFFICE. OKAY SO THERE'S A BIG A
SUBSTANTIAL DISCREPANCY IN
NUMBERS. SO I THINK THAT NEEDS
TO DEFINITELY BE VETTED AND, GET
A LITTLE BIT MORE LEGAL ANALYSIS
. THANK YOU. ALL RIGHT. SO THEN
WE'LL MOVE TO THE CALSTRS. THANK
YOU. SO ON OUR FINAL ISSUE FOR
THE DAY IS THE CALSTRS
CALIFORNIA STATE TEACHERS
RETIREMENT SYSTEM. FOR THIS
ISSUE, WE ARE REQUESTING. THE
PANEL TO COVER THE CALSTRS,
STATE STATUTORY REQUIRED
CONTRIBUTIONS AND TO BUDGET
CHANGE PROPOSALS. WELCOME THANK
YOU. GOOD AFTERNOON, CHAIR,
MADAM CHAIR, AND MEMBERS OF THE
SUBCOMMITTEE. MY NAME IS JULIE
UNDERWOOD. I AM THE CHIEF
FINANCIAL OFFICER FOR THE
CALIFORNIA STATE TEACHERS
RETIREMENT SYSTEM. NOW, THE
FUNDING FOR THE TWO BUDGET
CHANGE PROPOSALS THAT ARE BEFORE
YOU TODAY HAVE BEEN APPROVED BY
THE TEACHERS RETIREMENT BOARD
AND WILL BE FUNDED THROUGH THE
TEACHERS RETIREMENT FUND. NOW,
OVERALL, BOTH PROPOSALS ADVANCE
OUR STRATEGIC PLAN GOALS AND
OBJECTIVES AS WELL AS SUPPORT
OUR CONTINUED OPERATIONS,
ENSURING THAT WE CONTINUE TO
MEET OUR MISSION TO OUR MEMBERS,
WHICH IS TO SECURE THE FINANCIAL
FUTURE AND SUSTAIN THE TRUST OF
CALIFORNIA'S EDUCATORS. NOW
REGARDING THE OPERATIONAL
SUPPORT, VCP, THE 1.9 MILLION IS
PERMANENT FUNDING TO ESTABLISH
12 AUTHORIZED POSITIONS AND
THOSE POSITIONS WILL ASSIST US
IN MAINTAINING CONTINUING
BUSINESS OPERATIONS, AS WELL AS
TO ASSIST US IN ACHIEVING SOME
STRATEGIC PLAN PRIORITIES AND
INITIATIVES. NOW, IT IS WORTH
NOTING HERE THAT CALSTRS HAS
LIMITED OUR RESOURCE REQUESTS
THIS YEAR, AND WE ARE NOT
REQUESTING ANY ADDITIONAL
OPERATING EXPENDITURES, AND
THAT'S IN SUPPORT OF THE STATE'S
MANDATE OR THE STATE'S DIRECTIVE
TO MITIGATE COSTS. NOW FOR THE
PENSION SOLUTION, VCP, THE 205.8
MILLION IS ONE TIME FUNDING TO
COMPLETE THE MODERNIZATION OF
CALSTRS BENEFIT ADMINISTRATION
SYSTEM. NOW, THAT SYSTEM IS
SCHEDULED TO GO LIVE IN THE FALL
OF 2025, AND THE FUNDING ALSO
SUPPORTS ADDITIONAL
STABILIZATION AND MAINTENANCE
AND OPERATIONS ACTIVITIES
THROUGH JUNE 30TH, 2027. NOW, I
SHOULD ALSO NOTE HERE THAT THIS
AMOUNT ALSO INCLUDES ALL
INTERNAL RESOURCES, AS WELL AS
ALL EXTERNAL COSTS FOR ALL OF
THESE ACTIVITIES THROUGH THAT
JUNE 30TH, 2027 DATE. NOW OUR
NEW SYSTEM WILL SUPPORT CALSTRS
GROWING MEMBERSHIP OF OVER 1
MILLION MEMBERS AND WILL ALSO
PAY OUT OVER $18.5 BILLION A
YEAR IN PAYMENTS TO NEARLY
330,000 RETIREES AND
BENEFICIARIES. SO WITH THAT, THE
DETAILS FOR THE AMOUNTS ARE
INCLUDED IN THE BCC BEFORE YOU
TODAY, AND I'M HAPPY TO ANSWER
ANY QUESTIONS YOU MAY HAVE. I
DID HAVE A QUESTION, BUT YOU
ANSWERED IT IN YOUR TESTIMONY ON
THE BCP, BUT I WILL JUST MAKE A
COMMENT GENERALLY OF WHAT THE
HEARINGS THAT WE'VE HAD, UNDER
THE TECHNOLOGY UMBRELLA, THERE
IS A HUGE AMOUNT OF MONEY GOING
INTO UPDATING ALL OF THESE
TECHNOLOGY SYSTEMS, FROM AD TO,
CALSTRS. AND IT'S QUITE AN
INVESTMENT, AND THEY'RE
OBVIOUSLY NEEDED. WE'VE SEEN,
SOME OF THE BREAKDOWNS WITH OLD
SYSTEMS, YET THEY'RE VERY
COSTLY. AND IT'S VERY DIFFICULT
IN A TOUGH BUDGET SYSTEM OR
SITUATION. THÀNH TO MAKE A
U-TURN ON THEM WHEN WE WANT TO
SEE THEM, WHETHER IT'S FISCAL
OTHERS, WE WANT TO SEE THESE
SYSTEMS, IS SAFE AND SOUND.
SO. THANK YOU, WE DON'T HAVE ANY
OTHER MEMBERS UP HERE, BUT DO WE
HAVE ANY COMMENTS FROM, DODD OR
LÀ? OH, RYAN WEINBERG,
DEPARTMENT OF FINANCE. WE HAVE
NOTHING TO ADD ON THIS ITEM. AND
THEN AFTER YOU, YOU KNOW, IF YOU
HAVE ANY QUESTIONS ON THIS ITEM
AFTERWARDS, I CAN GIVE A
PRESENTATION ON THE STATE. STATE
CONTRIBUTIONS TO CALSTRS FOR THE
UPCOMING FISCAL YEAR. THANK YOU,
ANGELA SHORT WITH THE
LEGISLATIVE ANALYST'S OFFICE. WE
HAVE NO CONCERNS WITH THE TO BE
PRESENTED. ALL RIGHT, WITH THAT,
THANK YOU FOR YOUR TESTIMONY.
THANK YOU, THIS CONCLUDES OUR
PRESENTATION. AND NOW WE WILL BE
ACCEPTING PUBLIC COMMENT. DO WE
NEED TO DO A STATE CONTRIBUTION
STILL? OKAY. ALL RIGHT. WELL
YEAH. GO AHEAD. OKAY. SORRY
ABOUT THAT, RYAN, ONCE AGAIN, MY
NAME IS RYAN WEINBERG WITH THE
DEPARTMENT OF FINANCE. THE
GOVERNOR'S BUDGET INCLUDES 4.24
BILLION IN ESTIMATED GENERAL
FUND CONTRIBUTIONS TO CALSTRS IN
20 2425. THIS AMOUNT, WHICH WILL
BE FINALIZED AT THE MAY VÀ
VISION BASED ON UPDATED
CREDITABLE COMPENSATION DATA.
COMPENSATION DATA THAT'S BEEN
REPORTED TO CALSTRS, IS EXPECTED
TO INCREASE THE STATE'S
CONTRIBUTION LEVELS FROM THE
PREVIOUS FISCAL YEAR BY 300
MILLION, BASED ON EXPECTED
GROWTH IN CREDITABLE
COMPENSATION FOR CALSTRS
MEMBERS. THE CALSTRS BOARD HAS
NOT ELECTED TO INCREASE THE
STATE'S CONTRIBUTION RATE FOR,
CALISTOGA IN THE UPCOMING FISCAL
YEAR, AND THE STATE IS CURRENTLY
PROJECTED TO FULLY ELIMINATE ITS
SHARE OF UNFUNDED LIABILITY FOR
THE STATE'S DEFINED BENEFIT
PROGRAM. WELL BEFORE 2046, WHICH
IS THE TARGET DATE OUTLINED IN
THE STATE'S FUNDING PLAN AS
PASSED BY THE LEGISLATURE. CAN
YOU RESTATE THAT DATE TO, THAT
YOU JUST SAID THE LAST DATE FOR
THE UNFUNDED 46 IS THE IS THE
TARGET DATE OUTLINED IN THE
CALISTOGA FUNDING PLAN FOR WHEN
THE FUNDING PLAN WOULD END? IF
THE STATE HAS NOT PAID OFF ITS
UNFUNDED LIABILITY BY THAT
POINT. SO THAT'S THE TARGET DATE
FOR US TO PAY IT OFF. ALL RIGHT.
WE WANT TO STAY ON TRACK. THANK
YOU. SORRY FOR THAT, ALL RIGHT,
I THINK THAT, THAT IS THE END OF
OUR PRESENTATION. IF WE HAVE
ANYBODY WHO WOULD LIKE TO SPEAK
PUBLICLY, PLEASE COME UP. YOU'RE
ALSO QUIET TODAY. ALL RIGHT,
WELL, THEN THAT WILL END OUR
HEARING. WE APPRECIATE YOU BEING
HERE. THANK YOU SO MUCH. GOOD.
HOW ABOUT YOU?
SAY HI. GOOD. ANYWAYS ON THE.
BUT WOULD IT. WOULD I THINK IT
WOULD. GOOD. POINT SIX. THE ONLY
THING. THE ONLY THING I KNOW IS
HOW OFTEN IS THE PORTANTINO.
OKAY. ALL RIGHT. DO YOU HAVE A
GREAT REST OF YOUR DAY? OKAY,
GREAT. NOW, UNFUNDED LIABILITY.
SO EACH ONE. BUT I JUST WONDERED
IF THERE WERE, LIKE, MODELS THAT
SHOWED, LIKE THE REDIRECTION OF
THIS ONE POINT WOULD STILL INTO
2026 IS STILL ACHIEVABLE. SO THE
BECAUSE THE WAY THAT IT'S THE
WAY IT GOES IS BASICALLY LIKE TO
PAY FOR THE MONSTERS FOR THE
ALREADY THE ACTUAL. AND SO I
GUESS IS IT BECAUSE THERE'S NO
STIRS, THERE'S NO ADDITIONAL
STORAGE TRÊN IT