GOOD AFTERNOON, AND WELCOME TO
OUR SUB ASSEMBLY BUDGET
SUBCOMMITTEE FIVE. HEARING THIS
HEARING WILL COVER LOCAL
GOVERNMENT FINANCING AS WELL AS
NINE ISSUES UNDER FIVE VARIOUS
DEPARTMENTS. THE HEARING AGENDA
IS AVAILABLE ON OUR COMMUNITY
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 AFTER EACH PANEL, WE WILL
TAKE QUESTIONS FROM MEMBERS SO
I'M GOING TO SAY THAT AGAIN.
WE'LL TAKE QUESTIONS FROM
MEMBERS ON THAT ITEM RIGHT AFTER
AND THEN ACCEPT PUBLIC COMMENT
FOR THAT SPECIFIC ISSUE. IF
YOU'RE UNABLE TO ATTEND THIS
HEARING IN PERSON, YOU MAY
SUBMIT YOUR COMMENTS VIA EMAIL
TO ASM BUDGET AT ASMSA DOT GOV,
WITH THAT, WE ARE WE GOING TO DO
ROLL CALL? WE CAN WAIT TILL
WE'LL WAIT TILL WE, JUST TO LET
YOU KNOW, WE ONLY HAVE THREE
MEMBERS ON THIS COMMITTEE, AND
OUR, ASSEMBLY COLLEAGUE,
ASSEMBLY MEMBER JO PATTERSON,
HAS THREE COMMITTEES AT THE SAME
TIME. SO HE DOESN'T OFTEN GET TO
COME IN AND OUT. AND THEN WE
HAVE ASSEMBLY MEMBER CHRIS WARD,
WHO IS PRESENTING A BILL AND
WILL BE IN AND OUT AS WELL. AND
I WAS JUST COMPLETED A BILL IN
PRIVACY, WHICH IS WHY WE'RE
STARTING A LITTLE BIT LATE. SO
WITH THAT, WE'RE GOING TO GO
AHEAD AND BEGIN WITH OUR FIRST
ISSUE RELATED TO LOCAL
GOVERNMENT FINANCE THING, AND
OUR FIRST PANEL, WE WILL REVIEW
THE EDUCATION REVENUE
AUGMENTATION FUND, OR ERAF.
THANK YOU FOR JOINING US, AND,
WE WOULD. BEGIN. WE HAVE
PANELISTS ELLEN SHOPE FROM THE
DEPARTMENT OF FINANCE, CHRIS
HILL, DEPARTMENT OF FINANCE, AND
EDGAR CARBONE, CABRAL
LEGISLATIVE ANALYSIS OFFICE. AND
WE'RE GOING TO GO AHEAD AND,
WELCOME YOU AND ASK YOU TO MAKE
YOUR REMARKS. THANK YOU, MADAM
CHAIR, MEMBER PATTERSON, ALEX
SHOPE WITH THE DEPARTMENT OF
FINANCE, SO I'M GOING TO COVER
THE EXCESS ERAF ISSUE, SO
BEGINNING IN 1992, THE
EDUCATIONAL REVENUE AUGMENTATION
FUND ERAF, SHIFTED PROPERTY TAX
REVENUES FROM CITIES, COUNTIES
AND SPECIAL DISTRICTS TO K TO 14
SCHOOLS, SO ERAF IS DISTRIBUTED
WITHIN EACH COUNTY ON A PER
AVERAGE DAILY ATTENDANCE ADA
BASIS TO ALL NON BASIC AGED
SCHOOL DISTRICTS, WITH WITH THE
INTENT OF DIRECTING
PROPORTIONALLY MORE ERAF TOWARDS
DISTRICTS WITH LESS PROPERTY TAX
REVENUES ON A PER ADA BASIS, SO
COMMUNITY COLLEGES AND SPECIAL
EDUCATION LOCAL PLAN AREAS ALSO
RECEIVE AN ERAF ALLOCATION, ERAF
THAT CANNOT BE ABSORBED BY BASIC
AID SCHOOL DISTRICTS, WHICH ARE
STATUTORILY INELIGIBLE TO
RECEIVE ERAF, THIS IS TERMED
EXCESS ERAF AND RETURNED TO THE
LOCAL AGENCIES FROM WHICH IT WAS
GENERATED. SO CHARTER SCHOOLS
WERE ESTABLISHED IN THE STATE IN
1992, ALMOST CONCURRENTLY WITH
THE ERAF STATUTES, HOWEVER,
CHARTER SCHOOLS ARE NOT
EXPLICITLY IDENTIFIED WITHIN
EXISTING ERAF DISTRIBUTION
STATUTES. SO TO EXPLICITLY
ADDRESS CHARTER SCHOOLS AND
THEIR INTERACTION WITH EXISTING
ERAF DISTRIBUTION STATUTES, THE
GOVERNOR'S BUDGET PROPOSAL CAN
BE UNDERSTOOD AS HAVING THREE
MAIN COMPONENTS. SO THE FIRST,
IT CLARIFIES THE COUNTY
SUPERINTENDENTS OF SCHOOLS MUST
INCLUDE ADA FOR EACH CHARTER
SCHOOL THAT IS SPONSORED BY LEAS
WITHIN THE SCHOOL DISTRICT FOR
THE PURPOSE OF CALCULATING ERAF
ALLOCATIONS, BEGINNING 2425.
SECOND, IT REQUIRES THE COUNTY,
THE COUNTY AUDITOR TO ADJUST
ERAF ALLOCATIONS BASED ON THE
CALCULATION THAT INCLUDES
CHARTER SCHOOL ADA BEGINNING IN
2025, 26, AND THEN THIRD, IT
REQUIRES THE COUNTY AUDITOR TO
ENSURE COMPLIANCE WITH THE
INCLUSION OF CHARTER SCHOOL ADA
WITHIN THE ERAF CALCULATION.
BEFORE ALLOCATING FUNDS. ALSO,
BEGINNING IN 2526. SO AS NOTED
IN THE AGENDA, ADDITIONAL
DETAILS FOR THIS PROPOSAL ARE
STILL FORTHCOMING IN TRAILER
BILL LANGUAGE. OTHERWISE THAT
CONCLUDES MY REMARKS AND HAPPY
TO TAKE ANY QUESTIONS. CHRIS
HILL, DEPARTMENT OF FINANCE I'D
BE HAPPY TO ADDRESS THE, EXCESS
ERAF ISSUE IF THAT COMMITTEE
PLEASURE, SO ZAREFF, AS MY
COLLEAGUE MENTIONED, THE VEHICLE
LICENSE FEE WAS REDUCED FROM 2%
TO 0.6 5% IN 2003. AND AS A
CONSEQUENCE, THAT RESULTED IN
REVENUE LOSSES FOR CITIES AND
COUNTIES. SO THE AGREEMENT
REACHED IN THE LEGISLATION THAT
WAS ENACTED TO ADDRESS THAT SAYS
THAT THAT LOSS OF REVENUE SHALL
BE BACKFILLED FOR THE CITIES AND
COUNTIES BY GIVING THEM BACK THE
PROPERTY TAX MONEY THEY PUT INTO
THE EDUCATIONAL REVENUE
AUGMENTATION FUND, THE RAF'S AND
JUST TO GIVE A HIGHLY SIMPLISTIC
ILLUSTRATION OF THE SITUATION
WITH EXCESS CRF, LET'S PRETEND
WE HAVE A COUNTY THAT HAS $100
IN THE ERAF AND JUST BY
HAPPENSTANCE, $100 IS HOW MUCH
IS NEEDED TO BACKFILL THE
VEHICLE LICENSE FEE REVENUE LOSS
SO THAT $100 GOES BACK TO THE
CITIES AND THE COUNTIES. BUT
LET'S PRETEND THAT $25 OF THAT
$100 WAS IN THE ERAF BECAUSE IT
COULD NOT BE ABSORBED BY BASIC
AGED SCHOOLS, SO THAT $25 IS NOT
COUNT TOWARDS THE $100 VEHICLE
LICENSE FEE. BACKFILL SO
INSTEAD, THE COUNTY AUDITOR
CONTROLLER TAKES $25 FROM THE
NON-BASIC AGED SCHOOLS IN THE
COUNTY AND GIVES THAT TO THE
CITIES IN THE COUNTY WITH THE
NET RESULT BEING THEY GET $125
AND, ALSO IN TEST TWO AND TEST
THREE YEARS OF PROPOSITION 98
THAT RESULTS IN $25 COST TO THE
STATE TO BACKFILL THAT LOST
REVENUE, NOW, IF THERE ARE NOT
IF THERE ARE SO MANY BASIC AGED
SCHOOLS IN THE COUNTY THAT YOU
CAN'T TAKE THAT $25 FROM THEM
BECAUSE YOU CAN'T TAKE PROPERTY
TAX FROM BASIC AGED SCHOOLS AND
GIVE IT TO THE CITIES IN THE
COUNTY, THEN THERE IS AN
INSUFFICIENCY, AND THAT
INSUFFICIENCY IS THE ROOT OF THE
PROBLEM, THAT IS, THAT WE'RE
SEEKING TO THAT THAT LIES BEFORE
US TODAY. AND I WILL JUST NOTE
THAT THE ADMINISTRATION DID
PROPOSE TRAILER BILL TWO YEARS
AGO. I BELIEVE IT WAS TO ADDRESS
THIS ISSUE. AND ESSENTIALLY THAT
TRAILER BILL WOULD HAVE HELD
THAT $25. THEY WOULD HAVE STILL
GOTTEN THE $25. IT JUST WOULD
HAVE BEEN CAPPED IN FUTURE.
GROWTH WOULD NOT BE GROWN
ANYMORE. THEY WOULD HAVE BEEN
FULLY BACKFILLED FOR THEIR LOST
VEHICLE LICENSE FEE REVENUES.
THEY WOULD HAVE GOTTEN THAT
EXTRA MONEY, BUT THE GROWTH
WOULD HAVE BEEN CAPPED. AND THAT
PROPOSAL DID NOT, WAS NOT
SUPPORTED BY THE IMPACTED LOCAL
AGENCIES. THANK YOU. GOOD
AFTERNOON, MADAM CHAIR. MEMBERS
EDGAR CABRAL WITH THE
LEGISLATIVE ANALYST OFFICE. SO I
KNOW IN YOUR AGENDA THERE'S TWO
ISSUES THAT ARE SPECIFICALLY
REFERENCED, IN SUFFICIENT ERAF.
THERE IS NO SPECIFIC GOVERNOR'S
PROPOSAL, SO WE DON'T HAVE ANY
COMMENTS THERE IN TERMS OF THE
EXCESS ERAF AND THE AND THE
PROPOSED TRAILER BILL LANGUAGE
TO CHANGE THE CALCULATION TO
INCLUDE CHARTER SCHOOLS, WE DO
RECOMMEND ADOPTING THAT
PROPOSAL, JUST, STEPPING BACK A
LITTLE FOR CONTEXT, THE ORIGINAL
PURPOSE OF THESE ACCOUNTS WAS TO
INCREASE THE AMOUNT OF PROPERTY
TAX REVENUE THAT WOULD GO
TOWARDS SCHOOLS AND COMMUNITY
COLLEGES, AS IN A FEW COUNTIES,
SPECIFICALLY THOSE WITH VERY
HIGH LEVELS OF PROPERTY TAX
REVENUE PER CAPITA, A PORTION OF
THAT, ERAF REVENUE IS ACTUALLY
ALLOCATED BACK TO THE CITIES,
COUNTIES AND SPECIAL DISTRICTS.
AND THAT'S WHAT WE CALL EXCESS
ERAF, ONE KEY VARIABLE IN THE
CALCULATION IS THE TOTAL AMOUNT
OF STUDENTS IN EACH COUNTY, THE
TOTAL AMOUNT OF FUNDING THAT
STUDENTS IN EACH COUNTY GENERATE
FROM THE LOCAL CONTROL FUNDING
FORMULA, WHICH IS SCHOOL'S
PRIMARY FUNDING FORMULA. AND IN
GENERAL, THE MORE STUDENTS THAT
THERE ARE IN THE CALCULATION,
THE GREATER THE PROPORTION OF
ERAF REVENUE IS GOING TO GO TO
SCHOOLS VERSUS, GOING BACK TO
LOCAL GOVERNMENTS, UP UNTIL A
FEW YEARS AGO, MOST COUNTIES
WERE ADMINISTERING THESE
CALCULATIONS IN WAYS THAT FULLY
ACCOUNTED FOR STUDENTS ENROLLED
IN CHARTER SCHOOLS,
SUBSEQUENTLY, HOWEVER, THEY
ADOPTED A DIFFERENT METHODOLOGY
THAT ONLY PARTIALLY ACCOUNTS FOR
CHARTER SCHOOL STUDENTS. AND SO
THIS NEW APPROACH HAS RESULTED
IN LESS PROPERTY TAX REVENUE
OVERALL GOING TO SCHOOL
DISTRICTS, CHARTER SCHOOLS AND
COMMUNITY COLLEGES, AND MORE
REVENUE GOING TO OTHER LOCAL
GOVERNMENTS, THE TRAILER BILL
LANGUAGE HAS NOT BEEN RELEASED
YET, BUT WE UNDERSTAND THAT THE
INTENT IS SPECIFICALLY TO ENSURE
THAT COUNTIES ARE FULLY
ACCOUNTING FOR CHARTER SCHOOL
STUDENTS IN THE CALCULATION, AND
THAT'S WHY WE RECOMMEND
APPROVING IT. WE THINK THIS IS,
THIS REFLECTS THE ORIGINAL
INTENT OF THE STATUTE, THE LAW
AT ISSUE SPECIFICALLY REFERS TO
SCHOOL DISTRICTS ONLY. BUT WHEN
THIS LAW WAS PASSED IN THE EARLY
1990S, WE THINK IT WOULD HAVE
BEEN UNDERSTOOD THAT THAT THAT
WOULD INCLUDE CHARTER, CHARTER
SCHOOLS THAT ARE AUTHORIZED BY,
BY THOSE SCHOOL DISTRICTS, THE
OTHER THE OTHER BENEFIT OF
ADOPTING THE PROPOSAL IS THAT
THE GOVERNOR'S PROPOSAL COULD
ELIMINATE SOME ODD FISCAL
OUTCOMES UNDER THE CURRENT
METHODOLOGY. SO, RIGHT NOW, IF A
STUDENT LEAVES A SCHOOL DISTRICT
AND ATTENDS A CHARTER SCHOOL
INSTEAD, THAT ACTUALLY WOULD
RESULT IN LOWER AMOUNT OF
PROPERTY TAX REVENUE GOING TO
EDUCATION AND MORE GOING TO
LOCAL GOVERNMENTS. AND WE DON'T
THINK THAT WAS THE INITIAL
INTENT WHEN THE LEGISLATURE
ADOPTED THE PROPOSAL, SO THAT
THAT, COMPLETES MY COMMENTS. I'M
HAPPY TO ANSWER ANY QUESTIONS,
ANY OTHER COMMENTS. SO THE
SCENARIO HERE IS THAT IF YOU
HAVE A HIGHER ATTENDANCE IN
CHARTER SCHOOLS, AS THE COUNTY I
LIVE IN, ORANGE COUNTY, DOES
THIS IS TO TRY TO RECTIFY THE
SCHOOL, THE PUBLIC SCHOOL
FUNDING, IN RELATIONSHIP TO THE
STUDENT POPULATIONS, THAT YOU
HAVE. BUT THE LAST NOTE THAT YOU
YOU MADE WAS ON IF YOU HAVE A
PUBLIC SCHOOL STUDENT AND THEN
THEY MOVE TO A CHARTER SCHOOL,
WHEN IS THAT ACCOUNTING TAKING
PLACE? DOES IT TAKE PLACE WHEN
THEY MOVE, OR DOES IT TAKE PLACE
AT THE CALENDAR YEAR, THERE ARE
THE CALCULATIONS ARE BASED ON
AVERAGE DAILY ATTENDANCE. SO
IT'S SPECIFIC TO THE AMOUNT OF
ADA THAT'S THAT'S COMING TO
STUDENTS. ONE THING I WOULD JUST
NOTE IS THE THIS SPECIFIC ISSUE
OF EXCESS ERAF REALLY IS APPLIES
TO FIVE COUNTIES, THAT ARE
RELATIVELY HIGH PROPERTY TAXES.
COULD YOU NAME THOSE COUNTIES?
AND THEY ARE ALL IN THE BAY
AREA. SO IT'S THE THREE BIGGEST
IN TERMS OF REVENUE IS SAN
FRANCISCO, SAN MATEO AND SANTA
CLARA. OKAY, I BELIEVE SAN
FRANCISCO AND SANTA CLARA HAVE
THE HIGHEST OF THE AMOUNT, I
BELIEVE, NAPA AND MARIN ARE THE
OTHERS, THIS IS AGAIN, THIS IS
WHEN THERE ARE, WHEN THE AMOUNT
OF PROPERTY TAXES IS RELATIVELY
HIGH ON A PER CAPITA BASIS,
WHERE THIS ISSUE POPS UP FOR ALL
OF THE OTHER COUNTIES IN THE
STATE. THIS IS NOT AN ISSUE. AND
I'M SORRY, THEY ARE LISTED IN
THE NOTES ON PAGE. PAGE THREE,
WHEN WE'RE TALKING ABOUT WHICH
COUNTIES THESE ARE FOR, I AM
SURPRISED THAT ORANGE COUNTY IS
NOT LISTED IN THERE, BUT ALL
RIGHT, WITH THAT, WE'LL GO AHEAD
AND OPEN IT UP FOR PUBLIC
COMMENTS AND PUBLIC COMMENTS
WILL BE, ONE ONE MINUTE OR LESS.
MADAM CHAIR. TONY TRUJILLO, ON
BEHALF OF THE CALIFORNIA
TEACHERS ASSOCIATION HERE TODAY
REPRESENTING KATIE HARDIMAN,
WHO'S USUALLY OUR BUDGET,
LOBBYIST AND AS WELL AS, CSBA
CHRIS RIVAS, WHO NEITHER ONE
COULD BE HERE TODAY, BUT BOTH
ORGANIZATIONS ARE SUPPORTIVE OF
THE GOVERNOR'S INTENT TO INCLUDE
CHARTER SCHOOLS. AND WE URGE THE
COMMITTEE TO ADOPT THAT LANGUAGE
WHEN THE TIME IS APPROPRIATE.
THANK YOU. THANK YOU. GOOD
AFTERNOON, AUDREY RITECHECK FROM
CRUZ STRATEGIES ON BEHALF OF SAN
MATEO COUNTY. AND WE'RE HERE TO
REQUEST SUPPORT FOR ADDING THE
IN-LIEU VLF SHORTFALL FOR OUR
COUNTY. IT'S $70 MILLION THIS
YEAR, AND THAT'S A HUGE IMPACT
TO OUR BUDGET. AND ALSO OUR
CITIES, OUR LOCAL GOVERNMENTS
RELY ON THESE FUNDS TO DELIVER
CRITICAL SERVICES TO THEIR
RESIDENTS AND THEIR COSTS ARE
CONTINUING TO RISE. THE STATE
ENSURES THAT EVERY OTHER COUNTY
AND CITY IN CALIFORNIA RECEIVES
THEIR FULL VLF AMOUNT REGARDLESS
OF THE AMOUNT, SO SAN MATEO AND
ITS CITIES SHOULD NOT BE SINGLED
OUT TO SUFFER A LOSS OF
ESSENTIAL FUNDING BY DECLINING
TO REIMBURSE THE SHORTFALL, IT'S
A CORE FUNDING SOURCE FOR US AND
IT'S APPROXIMATELY 18% OF THE
COUNTY'S GENERAL FUND BUDGET.
AND FOR FROM SOME OF OUR CITIES
WHO ARE HERE TODAY, THAT'S AN
EVEN HIGHER NUMBER FOR THEIR
GENERAL FUND BUDGET, IT WOULD
ALSO BE CONTRARY TO THE 2004
BUDGET COMPROMISE IN WHICH THESE
PAYMENTS WERE GUARANTEED BY LAW.
SO WE RESPECTFULLY REQUEST THAT
THE $70 MILLION BE INCLUDED.
THANK YOU. THANK YOU. GOOD
AFTERNOON, MADAM CHAIR DAVID
CAMPOS, ON BEHALF OF THE COUNTY
OF SANTA CLARA. AND WE SUBMITTED
A LETTER OBJECTING TO WHAT WE
BELIEVE. RESPECTFULLY, Ã IS A
FALSE NARRATIVE THAT TRIES TO
PIT EXCESSIVE GRAVERT COUNTIES
AGAINST CHARTER SCHOOLS. THE
FACT IS THAT THE LAW HAS BEEN
VERY CLEAR IN THE ARGUMENTS THAT
HAVE BEEN MADE BY THE DEPARTMENT
OF FINANCE HAVE BEEN REJECTED BY
THE COURTS. EXCESS ERAF COUNTIES
ARE NOT AGAINST CHARTER SCHOOLS.
CHARTER SCHOOLS ARE LEGALLY
UNDER THE LAW, ARE NOT ALLOWED
TO GET EXCESS FUNDS. THERE IS A
DIFFERENT WAY TO FUND THEM, AND
WE HOPE THAT YOU CAN ADDRESS
THIS ISSUE, BECAUSE WHAT THE
IMPACT OF WHAT THE GOVERNOR IS,
IS PROPOSING IS CLOSE TO $40
MILLION IS TAKEN AWAY FROM
COUNTIES LIKE SANTA CLARA THAT
SERVE SOME OF THE MOST
VULNERABLE RESIDENTS OF OUR
COUNTY. THANK YOU VERY MUCH.
THANK YOU. THANK YOU, MADAM
CHAIR JEAN HURST ON BEHALF,
TODAY ON TWO ITEMS ON BEHALF OF
THE URBAN COUNTIES OF CALIFORNIA
, THE RURAL COUNTY
REPRESENTATIVES OF CALIFORNIA,
THE COUNTY BOARDS OF SUPERVISORS
OF ALPINE AND MONO COUNTY HERE
IN SUPPORT OF THE REQUEST FOR
FUNDING FOR THE INSUFFICIENT
AMOUNTS IN ALPINE, MONO AND SAN
MATEO. YOU'VE HEARD THE COMMENTS
OF MY COLLEAGUE FROM SAN MATEO,
BUT I JUST POINT OUT THAT
PARTICULARLY IN ALPINE AND MONO
COUNTIES, THESE ARE THESE ARE TO PROPOSITION
ONE, Ã FROM 2004. AND THAT
AGREEMENT THAT PROTECTED EXCESS
ERAF IN THAT TIME, OBVIOUSLY,
WE'RE OPEN TO ADDITIONAL
CONVERSATIONS. I THINK THIS HAS
BEEN A FRUSTRATING AND
CHALLENGING ISSUE FOR US ALL
OVER THE YEARS, BUT WE DO HAVE
SOME STRONG CONCERNS ABOUT THE
APPROACH THAT'S PROPOSED, EVEN
THOUGH LANGUAGE ISN'T YET
AVAILABLE. THANK YOU. THANK YOU.
GOOD AFTERNOON. CHAIR MARTIN
RADOSEVICH, REPRESENTING SANTA
CLARA VALLEY WATER DISTRICT AS
PROVIDES FLOOD PROTECTION AND
ENVIRONMENTAL STEWARDSHIP TO THE
2 MILLION RESIDENTS OF SANTA
CLARA COUNTY TO ALIGN OUR MY
COMMENTS WITH SANTA CLARA COUNTY
AS WELL, WE RECEIVE EXCESS ERAF
FUNDS TO FUND THESE CRUCIAL
SERVICES FOR OUR RESIDENTS, AND
ESPECIALLY IN THESE TOUGH BUDGET
TIMES, IT WOULD BE REALLY
DIFFICULT FOR OUR RESIDENTS. SO
THANK YOU. THANK YOU. GOOD
AFTERNOON, MADAM CHAIR. KAREN
LANG, ON BEHALF OF THE BOARDS OF
SUPERVISORS IN SAN FRANCISCO,
THE MAYOR OF SAN FRANCISCO AND
THE BOARD OF SUPERVISORS IN
MARIN AND NAPA COUNTY, AND
OPPOSITION TO THE EXCESS ERAF
PROPOSAL. THAT'S BEFORE YOU,
WHEN SAN FRANCISCO BECAME AN
EX-RAF COUNTY A COUPLE OF YEARS
AGO, THEY WENT THROUGH EXTENSIVE
VERIFICATION WITH BOTH THE
CONTROLLER'S OFFICE AND THE
DEPARTMENT OF FINANCE THAT THEY
HAD DONE THEIR CALCULATIONS
CORRECTLY. THOSE WERE UPHELD.
AND THEN THE LEGISLATURE
PROPOSED LANGUAGE. IT WAS
EVENTUALLY SENT TO THE
CONTROLLER'S OFFICE. THE
CONTROLLER'S OFFICE SIDED WITH
THE LOCAL GOVERNMENTS, WENT TO
COURT. THE COURT SIDED WITH THE
LOCAL GOVERNMENT. THIS IS NOT
CLARIFICATION. THIS IS
OVERTURNING CASE LAW. WE'RE
OPPOSED TO IT. SECONDLY IN SAN
FRANCISCO'S CASE, THEY HAVE A
CHARTER SCHOOL THAT HAS
ENROLLMENT FROM ALL OVER THE
STATE. SO IF THIS WERE TO PASS,
IT WOULD MEAN THAT SAN FRANCISCO
PROPERTY TAXPAYERS ARE FUNDING
THE PUBLIC EDUCATION OF CHILDREN
SITTING IN COUNTIES ALL OVER THE
STATE, WHICH IS A REDIRECTION OF
PROPOSITION ONE, A, WHICH IS A
VIOLATION OF THE CONSTITUTION.
AND IT WOULD PROBABLY BE
LITIGATED NEARLY IMMEDIATELY. SO
WE'D ASK FOR YOU TO REJECT IT.
THANK YOU. THANK YOU, MELISSA
SOHI, ON BEHALF OF THE CITIES OF
BELMONT, REDWOOD CITY, HILLSBORO
. AND THERE'S ONE MORE, Þ FOSTER
CITY, TO GIVE THE CITY
PERSPECTIVE, WE ECHO THE
COMMENTS MADE BY MY COLLEAGUE
FROM SAN MATEO COUNTY. BUT THESE
FUNDS ARE RELIED UPON FOR
ESSENTIAL FUNDING OF LOCAL
SERVICES. THE OPERATING REVENUES
OF THESE GENERAL FUND BUDGETS,
THEY'RE NOT LARGE FOR REDWOOD
CITY, IT'S A $3.3 MILLION LOSS.
THAT'S 20% OF THEIR FIREFIGHTERS
. FOR BELMONT, IT'S USED TO FUND
PUBLIC SAFETY, FIRE CRITICAL
INFRASTRUCTURE SUCH AS
STORMWATER DRAINAGE FOR FLOOD
PROTECTION FOR FOSTER CITY. IT'S
7.5% OF THEIR GENERAL FUND
OPERATING REVENUES. UNLIKE THE
STATE, THEY'RE FACING A
STRUCTURAL DEFICIT. SO THEY'RE
FACING REALLY SIGNIFICANT
DECISIONS TO BE MADE. AND IT
WOULD REALLY JEOPARDIZE VERY
VITAL COMMUNITY SERVICES. SO WE
ASK FOR THE LEGISLATURE TO
REINSTATE AND TO FUND THE VLF
SHORTFALL FOR THE CITIES THAT
ARE IN SAN MATEO COUNTY. AND
WE'D JUST LIKE TO NOTE THAT
THESE COMMUNITIES ARE ALSO
LEADERS IN SOLVING THE HOUSING
CRISIS IN CLIMATE RESILIENCY
PLANS AND IN PREPARING FOR
EMERGENCY RESPONSE AND DISASTER
PREPAREDNESS. AND SOME HIGH FIRE
HAZARD ZONES. AND WE WOULD LIKE
THEM TO BE ABLE TO USE THEIR
BUDGETS FOR THOSE SHARED
PRIORITIES. THANK YOU. THANK YOU
. GOOD AFTERNOON. GOOD AFTERNOON
. CAMI MARTIN, ON BEHALF OF THE
CITIES OF SOUTH SAN FRANCISCO
AND HALF MOON BAY, WE
RESPECTFULLY REQUEST THAT THE
IN-LIEU VEHICLE LICENSE FEE
SHORTFALL FOR SAN MATEO COUNTY
AND ITS CITIES BE INCLUDED IN
THIS YEAR'S STATE BUDGET. SOUTH
SAN FRANCISCO AND HALF MOON BAY
RELY ON THEIR SHARE OF THESE
FUNDS TO DELIVER CRITICAL
SERVICES TO THEIR RESIDENTS.
THANK YOU. GOOD AFTERNOON. I'M
ERIC LARA, SPEAKING ON BEHALF OF
THE CALIFORNIA STATE ASSOCIATION
OF COUNTIES, REPRESENTING ALL 58
COUNTIES IN THE STATE. WE ECHO
THE CONCERNS SHARED BY SOME OF
OUR COUNTY PARTNERS IN THE URBAN
COUNTIES OF CALIFORNIA, AND
POINT OUT THAT THE PROPOSAL
REGARDING EXCESS ERAF WILL HAVE
SIGNIFICANT IMPACTS ON REVENUE
USED AT THE LOCAL LEVEL TO
SUPPORT CORE COMMUNITY SERVICES.
REGARDING INSUFFICIENT EUROPE,
WE URGE THE STATE TO HOLD
COUNTIES HARMLESS AND INCLUDE
THE BACKFILL FOR INSUFFICIENT
ERAF AMOUNTS FOR ALPINE, MONO
AND SAN MATEO COUNTIES. THANK
YOU. THANK YOU. GOOD AFTERNOON.
ON IOAKIMIDIS, ON BEHALF OF LOS
ANGELES UNIFIED SCHOOL DISTRICT,
WE STRONGLY SUPPORT THE
GOVERNOR'S PROPOSAL TO CLARIFY
THE ERAF CALCULATIONS TO INCLUDE
CHARTER SCHOOLS. THIS CHANGE
WILL CLARIFY WHAT WE BELIEVE IS
THE LEGISLATURE'S ORIGINAL
INTENT AND FREE UP FUNDING TO
HELP ADDRESS THE STATE'S ONGOING
BUDGET DEFICITS. THANK YOU.
THANK YOU. ALL RIGHT. SEEING NO
ONE ELSE, WE WILL THEN GO AHEAD
AND GO TO ITEM NUMBER TWO,
GOVERNMENT. THANK YOU. THANK
YOU. I WANT TO TALK TO YOU MORE
ABOUT THAT. I'D LOVE TO. YES
SORRY. WE WILL GO TO ITEM NUMBER
TWO, GOVERNMENT OPERATIONS
AGENCY. AND WE WILL BEGIN WITH
UPDATE ON THE STATE'S EFFORTS TO
EVALUATE AND DEPLOY, GENERATIVE
GENERATIVE ARTIFICIAL
INTELLIGENCE, INTELLIGENCE
TECHNOLOGY.
WE ARE ASKING THE ADMINISTRATION
TO PRESENT ON ITS RECENT EFFORTS
TO PILOT VARIOUS PROJECTS TO
PROCURE AI TECHNOLOGY FOR USE IN
GOVERNMENT SERVICES, AND I SEE
SOME FRIENDLY FACES FROM, MY
LAST ROLE ON CNC WITH THE MIDDLE
MILE, AND WE'D LIKE TO WELCOME
AGENCY SECRETARY TONG,
DEPARTMENT OF TECHNOLOGY
DIRECTOR, BAILEY CREMEANS AND
ALSO DATA AND INNOVATION
DIRECTOR MORENO AND DEPARTMENT
OF DGS. DIRECTOR. LASSO.
WELCOME. AND YOU ALL ARE WELCOME
TO MAKE YOUR REMARKS. ALL RIGHT.
WELL, GOOD AFTERNOON, CHAIR. AND
MEMBERS OF THE COMMITTEE, THANK
YOU FOR THE OPPORTUNITY FOR US
TO THE ENTIRE TEAM OF DIRECTORS
AND FROM TO BE HERE TO PROVIDE
YOU AN UPDATE OF THE
ADMINISTRATION'S APPROACH IN
IMPLEMENTING GENERATIVE AI. I
WAS ASKED TO PROVIDE AN OVERVIEW
. AND THEN ALSO I'LL BE JOINED
BY MY COLLEAGUE LATER ON ON THE
VARIOUS SECTIONS OF THE
PRESENTATION. BUT I HAVE TO SAY,
IN LOOKING AT THE AGENDA THAT
WAS RECENTLY OPPOSED, YOUR STAFF
DID AN OUTSTANDING JOB IN LAYING
OUT THE OVERVIEW OF THE
EXECUTIVE ORDER AS WELL AS
IMPLEMENTATION. SO WITH THAT
SAID, I WILL SAVE SOME TIME AND
TRY TO KEEP MY OPENING REMARKS
FAIRLY SHORT. AND, AND AS AS I
MENTIONED, THERE WAS A GREAT
AGENDA THAT WAS PUT OUT WITH
LOTS OF DETAIL. SO AGENCY UNDER
THE GOVERNOR'S EXECUTIVE ORDER
IS LEADING THE IMPLEMENTATION
EFFORTS IN PARTNERSHIP WITH
CALIFORNIA DEPARTMENT OF
TECHNOLOGY, CALIFORNIA
DEPARTMENT OF HUMAN RESOURCES,
DEPARTMENT OF GENERAL SERVICES,
OFFICE OF DATA INNOVATION, AND
THE STATE CYBERSECURITY
INTEGRATION CENTER. GO-BIZ AND
THE STATE'S LABOR AND WORKFORCE
DEVELOPMENT AGENCY. GOVERNMENT
OF NEWSOM IS COMMITTED TO
CONTINUING CALIFORNIA'S
LEADERSHIP IN THE EMERGING
TECHNOLOGY WORLD, AND THIS
EXECUTIVE ORDER IS ANOTHER
EXAMPLE OF THAT COMMITMENT. OUR
GOAL IS TO CAPTURE CHEN AI'S
BENEFITS TO BETTER SERVE THE
NEEDS OF OUR RESIDENTS, BUT ALSO
TO PROTECT AGAINST ITS POTENTIAL
HARM. WHILE IMPLEMENTING THIS
EXECUTIVE ORDER, ONE OF OUR
PRIMARY GOAL HAS BEEN TO STUDY
THE DEVELOPMENT, USE AND RISK OF
CHEN AI THROUGHOUT THE STATE
RIGHT SIZING THE IMPORTANCE OF
EVALUATING THIS TECHNOLOGY FROM
THE START ARE FIRST DELIVERABLE
WAS TO REPORT THAT WAS RELEASED
IN NOVEMBER ON THE BENEFIT AND
RISK OF CHEN AI FOLLOW RECENTLY
BY A REPORT THAT WAS PUBLISHED
ON MARCH 20TH ON GUIDELINES FOR
PROCUREMENT USE AND TRAINING, AS
WELL AS A TOOLKIT FOR
DEPARTMENT, WHICH DIRECTOR
MARINA WILL SPEAK TO IN A LITTLE
BIT. WHILE EVALUATING THE IMPACT
OF A CHEN AI WERE ALSO
DEVELOPING A DELIBERATE AND
RESPONSIVE PROCESS FOR THE
DEPLOYMENT OF THIS TECHNOLOGY
WITHIN THE STATE GOVERNMENT. BY
EVALUATING THE FEASIBILITY OF A
FEW PILOTS AND TO THAT
SPECIFICALLY TO DO IT IN A SAFE
MANNER, THE EO DIRECTS THE
DEPARTMENT OF TECHNOLOGY TO
CREATE A SECURE TESTING
ENVIRONMENT FOR ANY PILOTS KNOWN
AS THE SANDBOX, WHICH DIRECTOR
LIANA BAILEY KREMEN WILL GO INTO
MORE DETAILS, FOLLOWED BY
DIRECTOR LASSO, WHO IS LEADING
THE PROCUREMENT EFFORT FOR THESE
PILOTS. WERE GOING TO AN
OVERVIEW, A BRIEF OVERVIEW OF
EACH OF THESE PARTICULAR PILOTS.
THE PROCUREMENT MECHANISM ALSO
KNOWN AS REQUEST FOR INNOVATIVE
IDEA, RFI SQUARE, WAS
SPECIFICALLY CHOSEN BECAUSE OF
ITS BUILDING FLEXIBILITY THAT WE
COULD MODIFY AND ITERATE ON THE
PROCUREMENT APPROACH. AS WE
LEARN MORE ABOUT THIS. KNOWING
THAT NONE OF US ARE AN EXPERT IN
CHEN AI, WE DO NEED TO TREAT
THIS PROOF OF CONCEPT, OR WE
CALL IT A PILOT AS A LEARNING
PROCESS. BEFORE WE MAKE ANY
FURTHER OR LONGER TIME
COMMITMENT FOR THE STATE. THE EO
ALSO ESTABLISHED A FORMAL
PARTNERSHIP WITH UC BERKELEY AND
STANFORD HØI TO CONSIDER AND
EVALUATE THE IMPACT OF CHEN AI
ON CALIFORNIANS AND DISCUSS WHAT
EFFORT THE STATE SHOULD
UNDERTAKE TO ADVANCE ITS
LEADERSHIP IN THE INDUSTRY IN
THE IMPLEMENTATION OF ALL
EXECUTIVE ORDER DELIVERABLES. WE
ARE CARRYING OUT MULTIPLE LEVELS
OF ENGAGEMENT WITHIN THE STATE,
INCLUDING STATE SUBJECT MATTER
EXPERT, OUR LEGAL TEAM, OUR
PROGRAM TEAM, OUR PRIVACY AND
SECURITY TEAM. PARTICIPATE IN
COMMUNITY OF PRACTICE AS WELL AS
CHEN. AI LEADS FROM MORE THAN
100 DEPARTMENTS. IN ADDITION TO
THE TEAMS WE CONSULTED WITH
GOVERNMENTS, WE UNDERTAKE
EXTENSIVE EXTERNAL ENGAGEMENT AS
WELL AS SPEAKING WITH
APPROXIMATELY 70 SEPARATE
ENTITIES, OVER 140 UNIQUE
INDIVIDUALS FOR ACADEMIC CENTERS
, LOCAL AND FEDERAL OFFICIALS,
COMMUNITY BASED ORGANIZATIONS,
AS WELL AS THE STATE LABOR
LEADERS TO MAKE SURE THAT WE ARE
KEEPING OUR WORKFORCE AND OUR
COMMUNITY WE SERVE AT THE
FOREFRONT OF WHY ARE WE
EVALUATING SOLUTIONS? THE
EXECUTIVE ORDER IS SPECIFICALLY.
HE ALSO CALLS OUT TRAINING AND
SUPPORT TO THE STATE WORKFORCE
AS THE FIRST STEP TO PREPARE FOR
STATE WORKFORCE OF THIS CHEN AI
DIALOG AND ENGAGEMENT WILL GUIDE
THE DESIGN OF A TRAINING AND
MATERIALS, AND FOR THE GOAL OF A
DEVELOPING INDIVIDUALS AND
GAINING GENERAL EDUCATION, AS
WELL AS SPECIFIC EDUCATION IN
THE POTENTIAL LEGAL, LABOR AND
PRIVACY RISK. IDENTIFYING WHILE
ADDRESSING THIS TECHNOLOGY. BY
JULY 2024, TWO MORE DELIVERABLES
ARE COMING ONE, THE
ADMINISTRATION WILL DEVELOP THE
TRAINING FOR THE STATE WORKERS
IN CONJUNCTION WITH THE LABOR
AND PROVIDE FURTHER KNOWLEDGE OF
THE CHEN AI TOOLS. SECOND, THAT
THE EO ALSO REQUIRES GUIDELINES
FOR STATE AGENCY AND DEPARTMENTS
TO ANALYZE THE IMPACT OF
ADOPTING CHEN AI TOOLS MAY HAVE
ON THE VULNERABLE COMMUNITIES,
INCLUDING CRITERIAS TO EVALUATE
EQUITABLE OUTCOMES IN THE
DEVELOPMENT IMPLEMENTATION OF
CHEN AI IN CLOSING, I JUST
WANTED TO SAY THAT WE SINCERELY
APPRECIATE THE PARTNERSHIP AND
THE OVERSIGHT FROM THE
LEGISLATURE SINCE NOVEMBER OF
2023, THERE HAS BEEN AT LEAST 17
ENGAGEMENT WITH STAFF AND
MEMBERS IN BOTH HOUSES. AND I
KNOW WE ALWAYS DO MORE. AND WITH
THAT IN MIND, AS WE MOVE FORWARD
TO THIS ENGAGEMENT OF CHEN AI
INTO A PROOF OF CONCEPT OR PILOT
PHASE, WITH ONLY THE EXCEPTION
OF THE ACTUAL PROCUREMENT
NEGOTIATION, THE ADMINISTRATION
CONTINUED TO MAKE A PUBLICLY
AVAILABLE THE PROCUREMENT ITSELF
CONTRACT ONCE IT'S SIGNED, AND
ONCE WE BEGIN THE PILOT PHASE,
OUR INTENT IS TO ENGAGE OUR
LABOR, OUR EMPLOYEE, AS WELL AS
THE LEGISLATURE AS WE GO THROUGH
THIS JOURNEY TOGETHER. THANK
YOU. AND WITH THAT OVERVIEW, I'M
GOING TO HAND IT TO DIRECTOR
MARINO, WHO'S GOING TO GIVE YOU
A BRIEF OVERVIEW OF THE TWO
DELIVERABLES. THANK YOU.
SECRETARY TONG. GOOD AFTERNOON,
MADAM CHAIR AND COMMITTEE
MEMBERS, MY NAME IS JEFFREY
MARINO. I AM THE DIRECTOR OF THE
OFFICE OF DATA AND INNOVATION
AND IT'S MY PLEASURE TODAY TO
SHARE WITH YOU AN OVERVIEW OF
THE FIRST TWO DELIVERABLES OF
THE GENERATIVE AI EXECUTIVE
ORDER. THOSE ARE THE BENEFITS
AND RISKS OF GENERATIVE
ARTIFICIAL INTELLIGENCE REPORT,
AS WELL AS THE GUIDELINES FOR
PUBLIC SECTOR PROCUREMENT, USE
AND TRAINING. THE INITIAL REPORT
AND THE GUIDELINES ARE BOTH
EXCELLENT EXAMPLES OF THE
DELIBERATE, ITERATIVE APPROACH
WE ARE TAKING TO SHAPE THE
FUTURE OF ETHICAL, TRANSPARENT
AND TRUSTWORTHY AI IN CALIFORNIA
STATE GOVERNMENT. THE REPORT ON
THE POTENTIAL BENEFITS AND RISKS
OF USING CHEN AI IN STATE
GOVERNMENT WAS DELIVERED BY GOV
OPS AND OUR PARTNERS TO THE
GOVERNOR IN NOVEMBER OF 2023.
THE REPORT WAS A COLLECTIVE
EFFORT BETWEEN EXPERTS WITHIN
THE CALIFORNIA STATE GOVERNMENT,
INDUSTRY LEADERS, OUR ACADEMIC
PARTNERS AND COMMUNITY GROUPS
REPRESENTING MANY UNIQUE AND
DIVERSE POINTS OF VIEW FROM
ACROSS THE STATE. THE REPORT
BEGINS BY ANSWERING ONE
PRACTICAL QUESTION WHAT IS THE
DIFFERENCE BETWEEN REGULAR AI
AND GENERATIVE AI? CONVENTIONAL
AI, WHICH HAS BEEN USED FOR MANY
YEARS, NOW UNDERSTANDS PATTERNS
IN A DATA SET AND IS ABLE TO
PREDICT LIKELY OUTCOMES OR
ANTICIPATE AND RESPOND TO AN
INPUT BASED UPON A PREDEFINED
SET OF RULES. CHEN AI IS
NOTEWORTHY BECAUSE IT GENERATES
ENTIRELY NEW CONTENT THAT IS NOT
PRESENT IN THE UNDERLYING DATA
SET USED TO TRAIN THE MODEL.
THIS INNOVATION BRINGS WITH IT
MANY POTENTIAL BENEFITS. WITH
THIS TECHNOLOGY, WE CAN TAILOR
OUR SERVICES TO ADDRESS THE
UNIQUE NEEDS OF THE POPULATION
WE ARE SERVING, WHETHER THROUGH
ON THE FLY. TRANSLATION. REAL
TIME CLOSED CAPTIONING, AND
COUNTLESS OTHER USES THAT
PROMOTE DIVERSITY, EQUITY,
INCLUSION AND ACCESSIBILITY.
CHEN AI IS ALSO USHERING IN A
NEW ERA OF DATA DRIVEN DECISION
MAKING IN STATE GOVERNMENT. THE
ABILITY TO QUERY A DATABASE AND
PRODUCE AN ANALYTICAL INSIGHT IS
NOW AS SIMPLE AS KNOWING THE
RIGHT QUESTION TO ASK. OF
COURSE, WITH THESE BENEFITS COME
SOME RISKS. THE USE OF CHEN AI
CAN RESULT IN BIASED OUTPUTS
THAT AMPLIFY EXISTING SOCIETAL
BIASES, WHICH IS A CRITICAL
CONSIDERATION IN CASES THAT MAY
IMPACT THE DELIVERY OF PUBLIC
SERVICES. CHEN AI MAY CREATE
HARMFUL OR INAPPROPRIATE
MATERIALS SUCH AS DEEPFAKES, OR
CONVINCING RECOMMENDATIONS THAT
MAY LEAD TO TAKING DANGEROUS
ACTIONS. THESE ARE JUST A FEW
EXAMPLES FROM THE DETAILED
REPORT, WHICH LAYS OUT AN
EXTENSIVE LANDSCAPE OF THE
BENEFITS AND RISKS THAT COME
WITH USING CHEN AI IN THE PUBLIC
SECTOR. AS WITH MANY OF THE
DELIVERABLES, WE WILL CONTINUE
TO ITERATE AND IMPROVE UPON THE
REPORT AS WE LEARN MORE. AFTER
DEVELOPING THE BASELINE
UNDERSTANDING OF THE BENEFITS
AND RISKS OF CHEN AI, THE
COLLECTIVE TEAM DEVELOPED THE
DNI GUIDELINES FOR PUBLIC SECTOR
PROCUREMENT USES AND TRAINING,
WHICH WERE ISSUED JUST LAST
MONTH. THE GUIDELINES WERE
DEVELOPED BY THE DEPARTMENT OF
GENERAL SERVICES, THE CALIFORNIA
DEPARTMENT OF TECHNOLOGY, THE
CALIFORNIA DEPARTMENT OF HUMAN
RESOURCES AND THE CALIFORNIA
CYBERSECURITY INTEGRATION CENTER
TO PROVIDE BEST PRACTICES AND
PARAMETERS TO SAFELY AND
EFFECTIVELY USE CHEN AI. THE
GUIDELINES START FROM THE
CONTEXT OF TWO MAIN USE CASES OF
CHEN AI PROCUREMENT AND
INCIDENTAL PURCHASE, AND AN
INTENTIONAL PURCHASE. WE
ANTICIPATE THE MAJORITY OF
DEPARTMENTS, AT LEAST IN THE
NEAR TERME, ARE NOT ACTIVELY
SEEKING TO PROCURE A STANDALONE
CHEN AI TOOL. HOWEVER, MANY
TOOLS HAVE ALREADY BEGUN TO
INCLUDE CHEN AI ENABLED FEATURES
AND ENHANCEMENTS. WE DEFINE THE
PROCUREMENT OF THIS SORT AS AN
INCIDENTAL PURCHASE BEYOND
SYSTEM FEATURE UPGRADES. SOME
STATE ENTITIES MAY BE INTERESTED
IN PROCURING A STANDALONE TOOL.
THIS IS KNOWN AS AN INTENTIONAL
PURCHASE. THE GUIDELINES INCLUDE
A SEQUENCE OF STEPS THAT ADDRESS
EACH OF THESE SCENARIOS, WHICH
INCLUDE RESPONSIBILITIES SUCH AS
ESTABLISHING A GENII LEAD WITHIN
THE DEPARTMENT ALL THE WAY TO
CONDUCTING A DETAILED RISK
ASSESSMENT OF THE TOOL AND ITS
INTENDED USE. IN ADDITION TO THE
RISK ASSESSMENT PROCESS, WHICH
INCLUDES A CONSULTATION WITH K¾T
IN THE EVENT OF A MODERATE OR
HIGH RISK IMPLEMENTATION, THE
GUIDELINES ALSO PROVIDE A
ROADMAP FOR FUTURE GENII
TRAININGS AND ESTABLISH NEW
PROCUREMENT REQUIREMENTS SUCH AS
MANDATORY DISCLOSURE LANGUAGE TO
BE INCLUDED IN ALL
SOLICITATIONS, AS WELL AS A CHEN
AI DISCLOSURE AND FACT SHEET TO
BE SUBMITTED BY A VENDOR WITH
STATE STAFF IN MIND. ODI PLAYED
A LEADING ROLE IN DEVELOPING A
TOOLKIT THAT PRESENTS ALL OF
THIS INFORMATION INCLUDED IN THE
GUIDELINES IN A PLAIN LANGUAGE
AND USER FRIENDLY FORMAT.
THROUGH THIS HUMAN CENTERED
APPROACH TOWARD ISSUING
PROCUREMENT AND TECHNOLOGY
GUIDANCE, WE AIM TO EMPOWER THE
STATE WORKFORCE TO LEVERAGE THIS
TRANSFORMATIVE OF TECHNOLOGY TO
IMPROVE SERVICES FOR ALL
CALIFORNIANS. THANK YOU. AND
WITH THAT, I WILL HAND IT OVER
TO DIRECTOR BAILEY CRIMMINS OF
CDC. THANK YOU. DIRECTOR MARINO.
GOOD AFTERNOON, MADAM CHAIR.
GOOD TO SEE YOU TODAY. AND THANK
YOU FOR THE OPPORTUNITY TO SPEAK
WITH YOU TODAY ABOUT THE
GENERATIVE AI SANDBOX. I'M
LEANNA BAILEY CRIMMINS,
CALIFORNIA STATE CHIEF
INFORMATION OFFICER AND THE
DIRECTOR OF THE DEPARTMENT OF
TECHNOLOGY. ON BEHALF OF THE
ADMINISTRATION, K¾T PROUDLY
DELIVERS TIER THREE DATA CENTER
SERVICES TO BOTH STATE AND LOCAL
DEPARTMENTS AND HAS A
RESPONSIBILITY OF PROTECTING THE
STATE'S MOST VITAL DATA ASSETS.
AS WITH ANY EMERGING TECHNOLOGY.
DEPARTMENT OF TECHNOLOGY IS
ALWAYS LOOKING AT, YOU KNOW,
TESTING IT OUT. IF IT BE
BLOCKCHAIN, MACHINE LEARNING OR
VIRTUAL DISASTER RECOVERY OR IN
THIS CASE, GENERATIVE AI K¾T
STANDARD BUSINESS MODEL IS TO
WORK WITH DEPARTMENTS AND MANAGE
TEST ENVIRONMENTS, BUILD THEM
UP, STAND THEM UP, AND THEN
LEVERAGE OUR CGRTS 24 BY SEVEN,
SECURITY OPERATIONS CENTER AND
OUR TECHNOLOGY OPERATIONS FOR
PROOFS OF CONCEPTS, PILOTS AND
BUILDING PRODUCTION SYSTEMS OVER
THE PAST DECADE, THE STATE,
THANKS TO THE ADMINISTRATION AND
THE LEGISLATURE, HAS BENEFITED
FROM AS DIRECTOR, MARINO SAID,
TRADITIONAL ARTIFICIAL
INTELLIGENCE CHATBOTS, BUSINESS
INTELLIGENCE, PREDICTIVE
ANALYTICS, FOR EXAMPLE, CAL
FIRE'S ARTIFICIAL INTELLIGENCE
ALERT, A CALIFORNIA VÀ, WAS
RECOGNIZED BY TIME TO BE 2023
INVENTION OF THE YEAR WITHIN
FOUR MONTHS OF DEPLOYING
ARTIFICIAL INTELLIGENCE WITH
THEIR CAMERAS, ARTIFICIAL
INTELLIGENCE IS ABLE TO DETECT
77 WILDFIRES BEFORE ANY 911
CALLS CAME IN. THIS TYPE OF
TECHNOLOGY SAVES PRECIOUS LIVES
AND OUR NATURAL RESOURCES. IN
SUPPORT OF THE GOVERNOR'S
GENERATIVE AI EXECUTIVE ORDER,
K¾T WAS SPECIFICALLY REQUESTED
TO BUILD A SAFE PLACE TO TEST
GENDER VÌ, ALSO KNOWN AS OUR
SANDBOX. K¾T USES OUR EXISTING
CLOUD SERVICE PROVIDER CONTRACTS
, WHICH IS BEST IN INDUSTRY,
TECHNOLOGY, SECURITY STANDARDS
AND CONTROLS, AND ALLOWS FOR
OPTIMAL PROTECTION OF CALIFORNIA
STATE DATA. AS OF TODAY, THE
STATE HAS ISSUED FIVE PROOF OF
CONCEPTS OR REQUESTS FOR
INNOVATIVE IDEAS. AND DIRECTOR
LAWSON WILL GO INTO MORE DETAIL
ON THAT WHEN SHE, DURING HER
OPEN REMARKS. I TAKE CYBER
SECURITY SERIOUSLY AND
PROTECTING THE DATA IS OF MY
HIGHEST PRIORITY. PEOPLE FIRST
SECURITY ALWAYS THE DEPARTMENT
OF TECHNOLOGY SANDBOX IS
MONITORED 24 BY SEVEN BY THE
STATE'S TOP SECURITY EXPERTS,
AND IS ISOLATED FROM ANY OTHER
STATE SYSTEMS. THE FIVE
GENERATIVE AI PROOF OF CONCEPTS
WILL ONLY USE PUBLICLY AVAILABLE
DATA. WIDELY ACCESSIBLE AND
DISTRIBUTED TO CALIFORNIANS. IT
WILL NOT INTERACT WITH ANY EIGHT
OTHER STATE SYSTEM OR DATA. THIS
MEANS THAT PERSONAL AND
CONFIDENTIAL INFORMATION IS
PROHIBITED, EVEN THOUGH ONLY
PUBLICLY AVAILABLE DATA IS USED
DURING THE PROOF OF CONCEPT
PHASE, K¾T USED THE HIGHEST
LEVEL OF SECURITY, HIGHEST
WALLS, DEEPEST MOATS, AND SOME
OF THE THINGS THAT WE PUT FROM
SAFEGUARDS ARE FEDRAMP
CERTIFICATION. THIS IS THE
HIGHEST LEVEL OF FEDRAMP FOR DOD
AND ANY TYPE OF FEDERAL CLOUD
SERVICE PROVIDERS. WE USE THIS
ALSO WITHIN THE STATE. IT HAS
THE HIGHEST LEVEL OF COMPLIANCE,
HIGHEST LEVEL OF STATE DATA,
CONFIDENTIAL K¾T INTEGRITY, DATA
ENCRYPTION, AND DATA AT REST,
THE STATE ALSO WILL RETAIN
UNCONDITIONAL OWNERSHIP AND
CONTROL OF ALL OF ITS DATA AND
HAS ONGOING VISIBILITY ON HOW
THAT DATA IS STORED AND SECURED.
IF A VENDOR IS INTERESTED IN
PARTICIPATING, THEY MUST COMPLY
WITH THE STATE'S CLOUD SECURITY
GUIDE, WHICH REQUIRES ALL
VENDORS TO CLASSIFY AND
SEQUESTER AND PROTECT STATE DATA
CONTINUOUSLY AND MONITOR FOR ANY
POTENTIAL WARNING SIGNS OR
SECURITY OR PRIVACY INCIDENT.
THE FIVE PROOF OF CONCEPT CGRTS
THOSE WILL, FOR THE FOR THE FIVE
PROOF OF CONCEPTS. THE STATE
WILL NOT BE CREATING A LARGE
LANGUAGE MODEL. INSTEAD, THE
VENDOR WILL USE AN EXISTING
MODEL WHICH WILL BE USED IN
PROCESS MODE ONLY. THAT MEANS
THAT SAFEGUARDS WILL BE
VALIDATED AND TESTED BEFORE,
DURING AND AFTER THE MODEL.
USAGE. AS A VENDORS MODEL,
PROCESSES AND GENERATES CONTENT,
IT WILL NOT BE PERMITTED TO
STORE OR RETAIN IN ANY OF OUR
DATA INPUTS, INCLUDING
INTERACTIONS WITH THE MODEL AND
EVEN THE CREATED NEW INFORMATION
OR INTELLECTUAL PROPERTY. THIS
WILL BE THE OWNER OWNERSHIP OF
THE STATE. THE STATE MAINTAINS
CONTROL, AND ANY DATA THAT IS
STORED WILL BE DONE IN A STATE
MANAGED SANDBOX. THROUGHOUT THE
PROOF OF CONCEPT AND AFTER. AS
WITH ANY NEW EMERGING TECHNOLOGY
, THE RFI SQUARE PROCESS ALLOWS
US TO TEST DRIVE BEFORE ACTUALLY
BUYING THE CAR. IT ALLOWS US TO
ENGAGE WITH THE VENDOR COMMUNITY
AND SEE IF ANY POTENTIAL VIABLE
SOLUTIONS EXIST, AND THE INITIAL
CHEN VÌ PILOT VENDOR WILL ONLY
BE WILL ONLY CHARGE NO MORE THAN
A DOLLAR. THIS WILL ALLOW THE
VENDOR TO COMMUNITY TO SHOWCASE
THEIR TECHNOLOGY WHILE WHILE
PROVIDING THE STATE WITH
VALUABLE INSIGHT. NOW IN
ADDITION TO THE GENERAL AI
VENDOR STATE DEPARTMENTS WILL
INCUR A MONTHLY USAGE CHARGE
FROM THE CLOUD SERVICE
PROVIDERS. SO FOR SPECIFIC CLOUD
STORAGE OR COMPUTE DURING THE
PROOF OF CONCEPT, THIS IS WHAT
THEY DO TODAY. WHEN THEY MOVE
WORKLOADS TO THE CLOUD. IT'S
BUILT INTO THE CONTRACT. CDC
ESTIMATES THESE CHARGES TO BE
ABOUT UP TO $50,000 PER MONTH
PER PILOT, DEPENDING ON THE SIZE
AND COMPLEXITY OF EACH OF THOSE
DATA SETS. IT COULD BE ONE
TERABYTE, IT COULD BE FOUR
TERABYTES. IT REALLY DEPENDS ON
EACH OF THOSE PROOF OF CONCEPTS.
THE PARTICIPATING AGENCIES AND
DEPARTMENTS WILL PAY USING THEIR
EXISTING BUDGETARY FUNDS. I LOOK
FORWARD TO FURTHER ENGAGING WITH
THE LEGISLATURE TO DISCUSS THESE
KEY ASPECTS AND ADDITIONAL
EMERGING TECHNOLOGIES THAT ARE
RIGHT AROUND THE CORNER. THAT
COMPLETES MY OPENING REMARKS,
AND I'M HAPPY TO GO AHEAD AND
ANSWER ANY QUESTIONS BEFORE
TURNING IT OVER TO DIRECTOR
ANALYSIS. THANK YOU. GOOD
AFTERNOON, MADAM CHAIR, AND
MEMBERS OF THE COMMITTEE. MY
NAME IS ANNA LASSO, AND I'M THE
DIRECTOR OF THE DEPARTMENT OF
GENERAL SERVICES. AS SECRETARY
TONG HAS MENTIONED, AND MY TWO
COLLEAGUES, DIRECTORS OF ODI AND
K¾T, WE ARE ALL WORKING TOGETHER
TO SUPPORT THIS VERY INNOVATIVE
PROCESS. THE ROLE OF DGS IS TO
UPHOLD A VERY INNOVATIVE
PROCUREMENT PROCESS. THE REQUEST
FOR INNOVATIVE IDEAS, KNOWN AS
RFI TWO AND I WILL BRIEFLY
DESCRIBE THE PROBLEM OR PROBLEM
CHALLENGE US, CHALLENGE SETS
ACTUALLY THAT WE PUT OUT FOR
PROCUREMENT, CAL STATE CALTRANS.
THAT IS THE VULNERABLE ROAD
USER. VRU PROTECTION. IT THE
CHALLENGE BASED SOLUTION THERE
IS TO INVESTIGATE NEAR MISSES OF
INJURIES AND FATALITIES, TO
IDENTIFY RISKY AREAS ON OUR
ROADS. ANOTHER CAL STATE
CALTRANS, CHALLENGE BASED
SOLUTION IS TRAFFIC MANAGEMENT
TRAFFIC OPERATIONS. IT'S A
PROCESS AND INTERPRET THE
COMPLEX DATA TO IMPROVE TRAFFIC
PATTERN ANALYSIS. ADDRESS BOTTLE
NECKS, AND ENHANCE OVERALL
TRAFFIC MANAGEMENT. NEXT IS
ANOTHER CHALLENGE BASED QUESTION
FROM CDTFA TEAM PRODUCTIVITY TO
IMPROVE CALL CENTER OPERATIONS
TO REDUCE CALL TIMES, IMPROVE
CUSTOMER SERVICE, AND INCREASE
TAXPAYER COMPLIANCE. AND
FINALLY, THE LAST TWO ARE FROM
CAL HHS AGENCY LANGUAGE ACCESS.
ENSURE THAT CALIFORNIANS WITH
LIMITED ENGLISH PROFICIENT
PROFICIENCY HAVE TIMELY ACCESS
TO INFORMATION ABOUT PUBLIC
BENEFITS, AND CAN NAVIGATE
PUBLIC PROGRAMS WITH EASE
WITHOUT CONFUSION. AND THEN
FINALLY, FROM CDFW HEALTH CARE
FACILITY INSPECTIONS LEVERAGE
TOOLS TO EXPEDITIOUSLY DOCUMENT
THE FACTS OR FINDINGS SEEN BY A
SURVEYOR DURING HEALTH CARE
FACILITY INSPECTIONS TO DEVELOP
A CONCRETE SET OF OUTCOMES OR
CITATIONS THAT MATCH STATE AND
FEDERAL REQUIREMENTS. AND AS
DIRECTOR BAILEY CRIMMINS
MENTIONED, THIS PORTION OF THE
PROCUREMENT IN THE SANDBOX, THE
VENDORS WILL ONLY CHARGE $1.
ANYTHING OUTSIDE OF THAT. ONCE
WE ARE THROUGH THE PROOF OF
CONCEPT PHASE, THERE WILL BE A
PROPOSAL FOR A SCALED UP
CONTRACT, AND AT THAT POINT, I
DO WANT TO SAY THE LEGISLATURE
WILL WEIGH IN ON THE FUNDING
PROCESS. SO WE ARE REALLY IN A
PROOF OF CONCEPT, PHASE. WE ARE
LEARNING TOGETHER AND SOME OF
THE OUTCOMES. SO BEFORE I GET TO
THE OUTCOMES OF THIS
PROCUREMENT, I DO WANT TO
MENTION THAT THE STATE IS
CURRENTLY ENGAGED IN THE ACTIVE
PROCUREMENT. SO I KNOW THERE ARE
QUESTIONS ABOUT THESE CONTRACTS
TO MAINTAIN THE FAIR
COMPETITION. THE INFORMATION IS
LIMITED TO WHAT WAS PUBLICLY
SHARED IN THE SOLICITATION. BUT
ONCE THOSE CONTRACTS ARE SIGNED,
AS AS SECRETARY TONG MENTIONED,
WE WILL BE HAPPY TO SHARE THOSE.
OF COURSE, REDACTED INFORMATION
ON ANYTHING THAT HAS TO DO WITH
SECURITY. BUT WHILE WE'RE NOT
ABLE TO PROVIDE THAT INFORMATION
JUST YET, IT IS WHILE WE ARE IN
THIS ACTIVE PROCUREMENT, OUR
RESPECTIVE DEPARTMENTS ARE HERE
TO ANSWER QUESTIONS TO YOUR
STAFF AND CONTINUE THAT,
COLLABORATIVE FACE. SOME OF THE
PROOF OF CONCEPT OUTCOMES WE
HOPE TO GAIN ARE BEYOND THE
SPECIFIC OUTCOMES THAT EACH
DEPARTMENT IS ASSESSING. THE
FIVE CONCEPTS THAT I MENTIONED,
THE STATE MORE BROADLY WILL
EVALUATE THESE PROOF OF CONCEPTS
COLLECTIVELY AGAINST BUSINESS
AND END USER NEEDS TO ENSURE
HUMAN CENTERED APPROACH TO
FUTURE CHEN I USAGE, ASSOCIATED
COSTS, AND OVERALL GUIDANCE TO
STATE ENTITIES. THE PROOFS OF
CONCEPTS WILL INFORM HOW THE
STATE INTENDS TO ADDRESS CHEN VÌ
CONTRACT TERMS AND CONDITIONS
REQUIREMENTS FOR DATA WHEN USING
CHEN AI PROJECT PROCESSES.
TRAINING AND LONGER TERMS.
SANDBOX ENVIRONMENTS AND IT
INFRASTRUCTURE NEEDS ENERGY
USAGE ASSOCIATED WITH USING CHEN
AI AND SHORT AND LONG TERME
COSTS. SO THAT CONCLUDES MY
PRESENTATION. IF THERE ARE ANY
QUESTIONS, BE HAPPY TO ANSWER
THEM. THANK YOU, THANK YOU VERY
MUCH. WOULD YOU LIKE TO MAKE
SOME COMMENTS, BRIAN METZGER? NO
COMMENTS AT THIS TIME. NO
COMMENT, WELL, THANK YOU FOR
THOSE VERY INFORMATIVE,
INFORMATIVE PRESENTATIONS.
ÓRDENES. YES, THIS IS ALL KIND
OF THE NEW FRONTIER. WHEN WE
THINK ABOUT AI. FIRST, YOU KNOW,
IT'S JUST THE AI THAT'S BEEN
MOVING FORWARD KIND OF AT A
STEADY AND THEN IT'S JUST GONE.
LIKE I BET YOU IF I ASKED PEOPLE
TO RAISE THEIR HANDS, YOU CAN IF
YOU WANT. LIKE HOW MANY OF YOU
KNEW ABOUT AI EVEN TWO YEARS
AGO? AND NOW WE'RE TALKING ABOUT
GENERATIVE AI, THAT'S HOW FAST
IT'S MOVED. HOW MANY OF YOU WERE
INTERFACING? SEE, LIKE A FEW
HANDS. RIGHT. SO PEOPLE WHO ARE
WORKING WITH THIS, OF COURSE,
UNDERSTAND IT. BUT FOR THE
PUBLIC AND OF COURSE, STATE
WORKERS WHO HAVEN'T INTERFACED
WITH, THIS IT IS GOING TO BE
PRETTY DRAMATIC AS FAR AS HOW
THEY INTERFACE, AS YOU
MENTIONED, THE SAFEGUARDS, THE
SECURITY. BUT ONE OF THE THINGS
IS, AS THIS WAS AN EXECUTIVE
ORDER, FOR PILOT PROGRAMS, AND
IT WAS MENTIONED THAT THERE HAVE
BEEN ENGAGEMENTS WITH THE
LEGISLATIVE BODY, HOW DO YOU
SEE, THAT THE IF YOU WANT TO
SAY, THE LEGISLATURE BODY WILL
INTERFACE WITH THIS IN THE
FUTURE, OBVIOUSLY, IN BUDGET
DECISIONS, BUT DO YOU IF YOU'D
LIKE TO SPEAK TO THAT? YES. I'M
HAPPY TO TAKE THAT QUESTION,
CHAIR. SO AS WE MENTIONED THAT
WE ARE REALLY LOOKING FOR
ANYBODY WHO'S WILLING TO SPEND
THE TIME AND ENGAGE IN THIS. WE
WELCOME THEIR ALL OF THEIR INPUT
BECAUSE WE AS WE SAID, THIS IS
SUCH A FAST, RAPID, EVOLVING
TOPICS. AND, YOU KNOW, AND IT'S
VERY DIFFERENT THAN PERHAPS
POTENTIALLY SOME OF THE NEW
TECHNOLOGY THAT WAS INTRODUCED
FROM, YOU KNOW, EARLY ON. WITH
THAT SAID, HAVING A CHECKS AND
BALANCE APPROACH AND EVALUATING
IS SOMETHING THAT WE ARE VERY,
VERY WELCOME IN TERMS OF
LEGISLATURE'S ROLE, AS I
MENTIONED, WITH THE EXCEPTION OF
THE ACTUAL CONTRACT NEGOTIATION,
WE INTEND TO BE, YOU KNOW,
ENGAGE AS MUCH AS YOU LIKE WHEN
YOU'RE LOOKING AT, ESPECIALLY
THE EVALUATION OF THESE OUTPUT.
COMING OUT OF THE PROOF OF
CONCEPT IS THAT ACTUALLY HELPING
OUR BUSINESS TO BE BETTER? IS IT
CREATING NEW RISKS THAT WE ARE
NOT AWARE OF? IF SO, HOW DO WE
ADDRESS IT, AND THEN BEYOND THE
PROOF OF CONCEPT AS NEW IDEAS
COME UP TO DO, FOR EXAMPLE,
FURTHER PILOTING, YOU KNOW, WE
WANT TO MAKE SURE THE
LEGISLATURE IS AWARE OF THAT AND
WELCOME TO TAKE YOUR INPUT, AS
WELL AS SPECIFICALLY ON THE
SECURITY, THE PRIVACY, THE
MONITORING, THE COST, YOU KNOW,
TO BE IT'S A VERY PRACTICAL
SITUATION THAT WE'RE IN, GIVING
THE BUDGET SITUATION AS A
DIRECTOR, ARNOLD ALSO MENTIONED
WE'RE LOOKING FOR VARIOUS
OPPORTUNITY TO LEVERAGE THE
RESOURCE AVAILABLE, AND THAT IS
A GOOD GATE TO CHECK BEFORE ANY
OF THESE TECHNOLOGY CAN BE
SCALED UP. BECAUSE I KNOW RIGHT
BELOW US, PRIVACY IS HAPPENING
WITH THE FIELD ROOM, WITH, QUITE
A NUMBER OF BILLS RELATED TO AI.
I THINK THE MOST THAT WE'VE EVER
HAD, SOME VERY SIMILAR, BUT MANY
, SO THIS IS GOING TO CONTINUE
TO BE, A TOPIC THAT,
LEGISLATIVE, LEGISLATIVE
LEGISLATORS WANT TO BE ENGAGED
WITH. AND AS THE PILOTS HAVE
BEEN PUT FORWARD, I THINK IN THE
FUTURE, MAYBE WORKING GROUPS,
SOMETHING LIKE THAT, THINK CAN,
REALLY ENGAGE THE LEGISLATIVE
BODY. I MEAN, OBVIOUSLY, I'M
GETTING THIS REPORT HERE VERY
INFORMATIVE, BUT IT'S ONLY TWO
OF US. SO OTHERS, BUT WITH THAT,
ANY QUESTIONS? THANK YOU, MADAM
CHAIR, THANK YOU FOR THE
PRESENTATION. I WAS DOWN IN
PRIVACY ON ANOTHER AI RELATED
BILL. THERE'S A FEW MORE YET TO
DEBATE THIS AFTERNOON AND I
THINK, DEPARTMENTAL, DEPARTMENT
LEADS PROBABLY KNOW I HAD THE
PLEASURE OF AUTHORING ASSEMBLY
BILL 302 LAST YEAR, WHICH ASKED
OUR DEPARTMENT OF TECHNOLOGY TO
BE ABLE TO CREATE A UP TO DATE
INVENTORY OF ALL PROCUREMENTS
THAT ARE USING ADT WITH AI
DECISION MAKING, AS WELL, AND, I
WAS A VERY GRATEFUL THAT WE WERE
ABLE TO ACCOMMODATE A VERY
AGGRESSIVE TURNAROUND AND
TIMELINE OF JANUARY 1ST OF NEXT
YEAR, TO BE ABLE TO KIND OF GET
A AT LEAST A SNAPSHOT IN TIME OF
WHERE WE'RE AT. HOW MIGHT SOME
OF THE, HOW IS THAT GOING AND
HOW MIGHT SOME OF THE, OUTPUTS
OF THAT, THAT INVENTORY UPDATE,
INTERLACE, I GUESS, WITH, YOU
KNOW, THE DIRECTIONS THAT YOU'RE
WORKING ON UNDER THE EXECUTIVE
ORDER HERE. THANK YOU VERY MUCH.
MEMBER, WARD, SO ONE OF THE
THINGS AS WE WERE LOOKING AT THE
EXECUTIVE ORDER AND OBVIOUSLY AS
WE'RE LOOKING AT SOME OF THE
BILL, 302 WE DID DO A CURSORY
INVENTORY OF ARTIFICIAL
INTELLIGENCE AND GENERATIVE AI,
IN ORDER FOR US TO SEE IF THERE
WAS ANY HIGH RISK USAGE. SO WE
HAVE BEEN WORKING WITH EACH OF
THE DEPARTMENTS, AND THEN WE ARE
ESTABLISHING A BASELINE AND
ANYTHING THAT IS BEING
CONSIDERED OR NEW WILL BE ADDED.
BUT I KNOW WITH AB 302 IS
LOOKING AT AT HIGH RISK DECISION
MAKING. SO THAT ACTUALLY EVEN
GOES A LITTLE FARTHER THAN JUST
GENERATIVE AI. AND SO WE ARE
WORKING IN PARTNERSHIP WITH ALL
OF THE STATE AGENCIES TO MAKE
SURE THAT WE ARE BEING COMPLIANT
WITH THAT. WHERE DO YOU SEE,
GENERAL AI BEING USEFUL? I
GUESS, IN, IN THE WORK THAT WE
DO AS A STATE. GO AHEAD FIRST
AND I'LL JUMP IN, SO AS WE WERE
TALKING ABOUT ARTIFICIAL
INTELLIGENCE HAS IN ITSELF HAS
BEEN BEEN USED OVER THE LAST
DECADE. AND WHAT WE WERE
MENTIONING WAS CAL FIRE, IT WAS
ABLE TO DETECT WILDFIRES 77
TIMES FASTER. IT WAS 77 CALLS OR
77 FIRES BEFORE ANY 911 CALLS
CAME IN, MILES. THE CHATBOT AT
DMV IS ARTIFICIAL INTELLIGENCE.
CONTINUAL LEARNING AS WE'RE
LOOKING AT GENERATIVE AI, WE ARE
JUST AT THE CUSP. AS DIRECTOR
MERINO HAD TALKED ABOUT, THERE
ARE MANY BENEFITS THAT CAN BE
LOOKING AT TAKING LARGE VOLUMES
OF DATA. WE STILL IN THE STATE
LIVE BY SPREADSHEETS SOMETIMES,
AND SO HOW WE CAN PULL ALL SORTS
OF DATA, DATA SETS AND BE ABLE
TO MAKE GOOD DECISIONS, POLICY
DECISIONS, PROGRAM DECISIONS ON
BEHALF OF THE CONSTITUENTS. BUT
ONE OF THE THINGS THAT, YOU
KNOW, THE GOVERNOR LOOKED AT IS
NOT ONLY JUST THE BENEFITS, BUT
TO ENSURE THAT IT IT ALSO
BALANCES OUT THE SAFEGUARDS. AND
SO WHAT THE EXECUTIVE ORDERS
TOUTED ACROSS THE NATION IS EVEN
LOOKING AT VULNERABLE
COMMUNITIES, SEEING WHAT AS WE
LOOK AT THIS, MOST OF YOU KNOW,
I CHAIR THE MIDDLE MILE ADVISORY
COMMITTEE IN THE CALIFORNIA
BROADBAND COUNCIL. WE LOOK AT
DIGITAL DIVIDE. LAST WE WENT IS
THAT TECHNOLOGY BE A MEANS BY
AMPLIFYING OR CREATING MORE OF A
DIVIDE OUT THERE. AND SO WE HAVE
TO TAKE STEPS FORWARD. BUT WE
HAVE TO TAKE THEM CAUTIOUSLY.
AND THAT'S WHAT THE PUBLIC
THAT'S WHAT YOU THAT IS WHAT THE
ADMINISTRATION LOOKS TO US AS
LEADERS TO. WE CANNOT TAKE THAT
TRUST LIGHTLY, AND WE NEED TO DO
EVERYTHING RIGHT. SO THE PROOF
OF CONCEPTS REALLY IS THE
OPPORTUNITY TO TEST. THERE MAY
BE THINGS THAT COME OUT OF IT
AND SAY, THAT'S NOT WHAT
GENERATIVE AI WE SHOULD HAVE
USED IT FOR. MAYBE TRADITIONAL
WOULD HAVE BEEN A MORE
APPROPRIATE, BUT YOU HAVE TO
TEST DRIVE IT IN A SAFE
ENVIRONMENT IN ORDER TO
DETERMINE THAT. AND I KNOW
SECRETARY HAS SOME THOUGHTS
ABOUT THAT AS WELL. I WAS JUST
GOING TO GO INTO A LITTLE BIT
MORE SPECIFIC ON GIVE YOU TWO
SPECIFIC EXAMPLES. I'M WORRIED
ABOUT THE USE, AND I'LL BUILD ON
THE FIVE PROOF OF CONCEPT THAT
IS ALREADY ON THE STREET THAT
ARE BEING SOLICITED FOR
INNOVATIVE IDEA, SPECIFIC. AS AN
EXAMPLE OF THE TWO COMING OUT OF
CALTRAN WE ALL KNOW, AND THIS IS
ACTUALLY SOMETHING THAT WE'VE
BEEN TALKING FOR A WHILE, THAT
THERE'S TONS OF DATA AND VIDEO,
IMAGES AND GRAPHICS AND
INFORMATION, ALTHOUGH ALL
PUBLICLY AVAILABLE ALREADY. SO
NOTHING CONFIDENTIAL ABOUT THAT,
ABOUT WHAT IS CREATING THESE
TRAFFIC CONGESTIONS AND WHETHER
THESE TRAFFIC CONGESTION WAS
NATURALLY OCCURRING BECAUSE OF
CERTAIN TIME OF THE DAY, OR IS
IT DUE TO OTHER INCIDENT THAT
TOOK PLACE, WHETHER IT'S NATURAL
CROSS OR, YOU KNOW, ACCIDENT
HAPPEN ON THE ON THE ROADWAY.
BUT TYPICALLY WHAT WE'RE DEALING
WITH RIGHT NOW IS WE'RE AWARE OF
THE CONGESTION, BUT THERE'S NOT
A VERY ROBUST ROUTE TO SUGGEST
HOW PEOPLE CAN AVOID THIS
CONSTRUCTION OR WHAT ARE THE
ALTERNATIVE. AND SOMEBODY CAN
SAY, WELL, THIS IS WHAT WAYS
WOULD DO, YOU KNOW, GOOGLE MAP,
THEY CAN JUST TELL YOU A
DIFFERENT ROUTE. THAT'S CORRECT.
BUT ONCE YOU FIND OUT THE
PATTERN, YOU CAN DO A LOT MORE
PREEMPTIVE MEASURE TO EVEN
REDUCE OR MINIMIZE THE
LIKELIHOOD OF THOSE CONGESTION
FOR HAPPENING. IF THERE'S A
NATURAL PATTERN. SECOND OF ALL,
TYING THAT UP INTO A TRAFFIC
MANAGEMENT SYSTEM. IF YOU ARE
DIVERTING TRAFFIC TO LOCAL
STREET LAST THING YOU WANT IS
THE LOCAL SIGNAL, ARE NOT
COOPERATING. SO YOU CREATE
ANOTHER CONGESTION. AND THIS IS
THE TYPE OF SIMULATION IF YOU
WOULD IS WHAT WE'RE LOOKING AT.
THE GENERATIVE AI. IT COULD BE
MORE OF AN AI AS A MACHINE
LEARNING TO LOOK FOR SAY CAN WE
DO MORE SIMULATION? CAN WE DO
MORE OF A PREDICTIVE. AND THAT'S
JUST A SMALL EXAMPLE OF WHAT WE
USE. GENERATIVE AI ON THE STATE
USE MAY I ON THAT PARTICULAR
EXAMPLE BECAUSE IT'S A GREAT
EXAMPLE OF HOW IT CAN HELP NOT
ONLY THE CURRENT OPERATIONS BUT
LONG TERME. GOOD GOVERNANCE.
HAVING THAT INFORMATION UP FRONT
COULD HELP DEPARTMENTS
PRIORITIZE HOW THEY FUND PROJECT
IMPROVEMENTS ON THE ROAD, OR HOW
THEY LINE UP WHICH PUBLIC WORK
PROJECTS THEY HAVE TO PRIORITIZE
DUE TO, NON-OPERATIONAL, ISSUES.
PERHAPS THE ROADWAYS TOO NARROW
OR THE VOLUME OF TRAFFIC HAS
BECOME SO CONGESTED AT A CERTAIN
INTERSECTION THAT IT HAS TO BE
WIDENED, SO THE LONG TUM IMPACT
COULD BE A GOOD GUIDANCE ON HOW
TO SPEND OUR DOLLARS JUDICIOUSLY
. GOT IT. THANK YOU. ANY OTHER
LAST COMMENTS? SORRY. ANY OTHER
LAST COMMENTS. ALL RIGHT THEN
WE'RE GOING TO GO AHEAD AND OPEN
IT UP FOR PUBLIC COMMENT. AND I
THINK WHAT WE'RE GOING TO DO IS
SAY 30S JUST BECAUSE WE HAVE A
VERY LONG AGENDA AND WE WANT TO
START MOVING THROUGH THIS A
LITTLE BIT. BUT WE THANK YOU TO
OUR PRESENTERS. WELCOME HI. GOOD
AFTERNOON DANIEL. CHERYL ON
BEHALF OF SEIU LOCAL 1000, I
JUST WANTED TO THANK THE
PRESENTERS FOR THE THOUGHTFUL
DISCUSSION, DETAILED REPORTS AND
COMMENTS FROM STAFF IN
PARTICULAR AROUND IMPACTS ON
STATE WORKERS. WE REALLY
APPRECIATE THE CAUTIOUS
APPROACH, IN PARTICULAR AROUND
CDPH WITH THE HEALTH FACILITY
INSPECTION TOOL. AND JUST AGAIN,
APPRECIATE, GIVEN NOT JUST THIS
BUDGET LANDSCAPE, BUT THE
APPROACH AS FAR AS INPUT TO
WORKERS AND KNOWING THAT WE HAVE
PERSISTENTLY HIGH VACANCY RATES
WITH OUR HEALTH FACILITY
EVALUATOR NURSES, WE'RE REALLY
LOOKING TO, MULTIPLE
OPPORTUNITIES TO ENGAGE, WHETHER
THROUGH THE BUDGET PROCESS OR IN
BARGAINING. SO AGAIN, THANK YOU,
THANK YOU, THANK YOU. ALL RIGHT.
WE'RE GOING TO MOVE TO ISSUE
NUMBER THREE LANGUAGE ACCESS
PILOT PROGRAM. WE WILL WELCOME
OUR PANEL.
WE WILL BE INVITING GOV OPS THE
DEPARTMENT OF FINANCE AND LEO
FOR THIS PRESENTATION. AND
PLEASE INTRODUCE YOURSELF. HI,
MADAM CHAIR JUSTIN HOWARD DEPUTY
SECRETARY FOR FISCAL POLICY AND
ADMINISTRATION AT THE GOVERNMENT
OPERATIONS AGENCY, I'LL BE
SPEAKING ON BEHALF OF GOV OPS
TODAY. UNFORTUNATELY, MY
COLLEAGUE CANNOT ATTEND TODAY,
SO IT'LL JUST BE ME ALONG WITH
FINANCE. NATALIE GRISWOLD,
DEPARTMENT OF FINANCE OKAY.
BRIAN MUELLER FROM THE LAO
WELCOME. THANK YOU. SO I THINK
THE PROPOSAL BEFORE YOU IS
ESSENTIALLY A REVERSION OF
UNSPENT FUNDS THAT WAS ALLOCATED
TO GOV OPS A COUPLE OF YEARS AGO
FOR A LANGUAGE ACCESS PILOT
PROGRAM. THE GOVERNOR'S BUDGET
PROPOSED ENDING THE PROGRAM DUE
TO THE STATE'S FISCAL SITUATION.
BECAUSE THE PROCUREMENT PROCESS
THAT WE WERE RUNNING HAD NOT
FINALIZED, THIS FUNDING IS
AVAILABLE FOR SWEEPING FOR
PURPOSES OF GENERATING SAVINGS
TO THE STATE. ALL RIGHT, IF
WOULD YOU LIKE TO MAKE COMMENTS?
NATALIE GRISWOLD, DEPARTMENT OF
FINANCE NOTHING FURTHER TO ADD
AT THIS TIME, WE ALSO HAVE NO
COMMENTS AT THIS TIME. THANK
YOU. COMMENTS WE'RE GOING TO
KEEP THIS SIMPLE. I HAVE NO
COMMENTS. AND WITH THAT, WE
APPRECIATE YOU COMING. ANY
COMMENTS FROM THE PUBLIC? ON
THIS TOPIC, ANY PUBLIC COMMENTS.
ALL RIGHT. SEEING NONE. THANK
YOU SO MUCH. WE APPRECIATE YOU
BEING HERE. ALL RIGHT. WE ARE
NOW MOVING TO ISSUE NUMBER FOUR
BUDGET CHANGE PROPOSALS.
DEPARTMENT OF TECHNOLOGY.
WELCOME BACK. AND IF YOU
INTRODUCE YOURSELVES AS YOU MAKE
YOUR COMMENTS. THANK YOU. GOOD
AFTERNOON, MADAM CHAIR. AND
MEMBERS, LIANA BAILEY CRIMMINS,
CALIFORNIA STATE CHIEF
INFORMATION OFFICER AND THE
DIRECTOR OF DEPARTMENT OF
TECHNOLOGY. THANK YOU FOR THE
OPPORTUNITY TODAY TO DISCUSS
THREE INTERNAL BUDGET PROPOSALS
SUBMITTED BY MY DEPARTMENT,
CALIFORNIA DEPARTMENT OF
TECHNOLOGY HAS APPROXIMATELY
1000 STAFF. WE ARE TASKED WITH
SECURING STATEWIDE INFORMATION
ASSETS, SERVING AS A CUSTODIAN
OF PUBLIC DATA AND OUR INNOVATOR
OF IT SERVICES AND SOLUTIONS. IN
ADDITION, WE OVERSEE TECHNOLOGY
POLICY DEVELOPMENT, ENSURE
EFFECTIVE IT PROJECT MANAGEMENT
PROCUREMENT THROUGH OUR CONTROL
AGENCY FUNCTIONS. THE THREE
INTERNAL BCP'S IN FRONT OF YOU
TODAY WILL GO THROUGH EACH OF
THEM, OF COURSE, INDIVIDUALLY.
THE GOAL OF THESE PROPOSALS IS
TO STRENGTHEN THE CYBERSECURITY
POSTURE AND TO ALSO OPTIMIZE OUR
DEPARTMENT'S ABILITY TO
EFFECTIVELY MINISTER OUR
STATUTORY AND MANDATED PROGRAMS.
I'M JOINED TODAY BY CHIEF
ADMINISTRATIVE OFFICER MILES
BURNETT, WHO WILL NOW PROVIDE A
BRIEF SUMMARY ON OUR PROPOSALS
AND CALL UP ANY OF THE EXECUTIVE
MEMBER LEADERSHIPS TODAY TO BE
READY TO ANSWER ANY AND ALL OF
YOUR QUESTIONS. MADAM CHAIR,
MEMBERS OF THE COMMITTEE. MY
NAME IS MILES BURNETT, CHIEF
ADMINISTRATIVE OFFICER FOR
CALIFORNIA DEPARTMENT OF
TECHNOLOGY. ISSUE WELL, FIRST
BCP, INFORMATION SECURITY
COMPLIANCE K¾T REQUESTS A ONE
TIME $250,000 GENERAL FUND
BUDGET AUGMENTATION AND FISCAL
YEAR 2425 TO REMEDIATE THE
DEPARTMENT'S SECURITY COMPLIANCE
DEFICIENCIES. ADDRESSING THESE
DEFICIENCIES WILL REDUCE CGRTS
RISK OF POTENTIAL
VULNERABILITIES REMAINING
UNDETECTED, AND UNREMEDIATED AND
IT WILL IMPROVE THE SECURITY
RISK POSTURE OF THE DEPARTMENT
AND MAINTAIN COMPLIANCE WITH THE
CALIFORNIA SECURE ROADMAP. K¾T
WILL USE EXTERNAL SECURITY
CONSULTANTS TO REDUCE THE
CURRENT BACKLOG OF INTERNAL
VULNERABILITIES. THESE
CONSULTANTS WILL DEVELOP AND
DOCUMENT AND, WHERE NEEDED,
EXECUTE THE MISSING PROCESSES
AND PROCEDURES. CONTRACTORS WILL
ALSO BE USED TO PERFORM
CONSISTENT OVERSIGHT OF
DEPARTMENTAL VULNERABILITY
REMEDIATION EFFORTS. AND WITH
THAT, WE ARE HERE TO TAKE ANY
QUESTIONS YOU MAY HAVE. IS THAT
ON ALL THREE OF THE ITEMS OR
JUST THE FIRST ONE? THAT IS JUST
THE FIRST ONE, MADAM CHAIR. ALL
RIGHT. DO YOU HAVE ANY COMMENTS
ON BRIAN METZGER? LÀ WE HAVE NO
CONCERNS WITH THE FIRST BCP
DEPARTMENT OF FINANCE.
DEPARTMENT OF FINANCE, NOTHING
TO ADD. THANK YOU. ALL RIGHT.
NOTHING TO ADD. YOU MOVE TO ITEM
NUMBER TWO, ITEM NUMBER TWO,
INTRUSION DETECTION AND
PREVENTION SYSTEM REPLACEMENT CT
REQUESTS 809,000IN GENERAL FUND
AND 2425 374,000 IN FISCAL YEAR
25, 26 AND 393,000 IN FISCAL
YEAR 26, 27, AND ONGOING TO
REPLACE DATA CENTER INTRUSION
DETECTION SYSTEMS AND INTRUSION
PREVENTION SYSTEMS. HARDWARE
THAT WILL BE REACHING ITS END OF
SUPPORTABLE LIFE. K¾T SUBMITTED
A BCP IN FISCAL YEAR 23, 24 TO
REPLACE END OF LIFE IDS IPS
INFRASTRUCTURE AND SUPPORT THE
PROTECTION REQUIREMENTS OF THE
CALIFORNIA GOVERNMENTAL
ENTERPRISE NETWORK. C CHEN.
HOWEVER, THESE PREVIOUSLY
APPROVED IDS IPS INFRASTRUCTURE
REPLACEMENT EFFORTS ONLY ENHANCE
THE IDS IPS INFRASTRUCTURE
SUPPORTING NORTH SOUTH
INSPECTION AND PROTECTION, WHICH
SPECIFICALLY PERTAINS TO
SECURING OR SECURITY MONITORING
PROTECTION THAT TAKES PLACE ON
THE OUTER EDGE WHERE ALL
DEPARTMENTS INTERCONNECT TO BOTH
C CHEN AND THE INTERNET AT LARGE
. THE IDS IPS DEVICES CURRENTLY
PROTECTING THE DATA CENTERS
MAINTAINED BY OTEC AND ALSO
REACHING THEIR END OF LIFE, ARE
NOW IN NEED TO BE REPLACED.
THESE THESE SPECIFIC IDS IPS
DEVICES MONITOR AND PROTECT THE
INTERNAL PERIMETERS BETWEEN THE
VARIOUS NETWORKS INSIDE BOTH OF
OTC'S RESPECTIVE DATA CENTERS.
THESE INCLUDE INTERNAL DATABASE
ZONES, CRUCIAL WEB SERVERS,
MAINFRAME AND OTHER MISSION
CRITICAL SERVICES THAT RESIDE
WITHIN BOTH OF CGRTS DATA
CENTERS. THESE IDS IPS DEVICES
PROVIDE VITAL EAST WEST
INSPECTION AND PROTECTION BY
PROVIDING SUPPORT AGAINST
POTENTIAL ATTACKS THAT MAY MOVE
LATERALLY BETWEEN THE INTERNAL
HOSTING ENVIRONMENTS. WITH THAT,
WE ARE HERE TO ANSWER ANY
QUESTIONS. THANK YOU. ANY
COMMENTS? BRIAN METZGER LÀ. WE
HAVE NO CONCERNS WITH THE SECOND
PROPOSAL. COURTNEY MASSON,
DEPARTMENT OF FINANCE NOTHING TO
ADD. THANK YOU. NO QUESTIONS. IF
YOU WANT TO MOVE TO ITEM NUMBER
THREE, ITEM NUMBER THREE,
STATEWIDE TECHNOLOGY SERVICES
K¾T REQUESTS THE INCLUSION OF
PROVISIONAL LANGUAGE TO ALLOW
THE CONVERSION OF UP TO 10
MILLION FROM THE TECHNOLOGY
SERVICES REVOLVING FUND TO THE
GENERAL FUND FOR FISCAL YEAR
2425 TO SUPPORT STATEWIDE
TECHNOLOGY SERVICES. K¾T IS
RESPONSIBLE FOR DEVELOPING,
IMPLEMENTING, AND MAINTAINING
SEVERAL STATEWIDE PROGRAMS AND
FUNCTIONS THAT DO NOT LEND
THEMSELVES TO A COST RECOVERY
MODEL BECAUSE THERE ARE NOT
SPECIFIC CUSTOMERS THAT CAN BE
BILLED FOR THE SERVICES PROVIDED
THREE OFFICES PROGRAMS TO
PERFORM STATEWIDE FUNCTIONS AT
K¾T ARE. STRATEGIC INITIATIVES,
DEVELOP AND IMPLEMENT STATEWIDE
IT AND DIGITAL STRATEGIES.
OFFICE OF DIGITAL SERVICES
STATEWIDE WEB HOSTING AND CLOUD
MODERNIZATION. OFFICE OF
ENTERPRISE ARCHITECTURE, THE
STATEWIDE ENTERPRISE
ARCHITECTURE PROGRAM, AND WITH
THAT, WE ARE HERE TO ANSWER ANY
QUESTIONS. BRIAN METZGER LÀ. WE
RECOMMEND THE LEGISLATURA REJECT
THE PROPOSED PROVISIONAL BUDGET
BILL LANGUAGE IN THIS BCP. THE
FISCAL PRESSURE FACING THE STATE
DOES NOT SUPPORT A POTENTIAL
REQUEST FROM CDC FOR ADDITIONAL
GENERAL FUND TO MITIGATE
INCREASES IN STATEWIDE
TECHNOLOGY SERVICE COSTS, THE
DEPARTMENT CAN CONTINUE TO
RECOVER THE COST OF THESE
SERVICES THROUGH ITS REVOLVING
FUND, AND FURTHERMORE, THE
DEPARTMENT CAN COMPLETE ITS
THREE YEAR RATE REASSESSMENT
PROCESS BY THE END OF THE NEXT
FISCAL YEAR AND PURSUANT TO
STATE LAW, REPORT BACK TO THE
LEGISLATURE ON HOW IT PLANS TO
PROVIDE THESE SERVICES IN A COST
EFFECTIVE, EFFICIENT AND
STRATEGIC MANNER. THANK YOU.
COURTNEY. THE DEPARTMENT OF
FINANCE, NOTHING TO ADD, BUT
HAPPY TO ANSWER ANY QUESTIONS.
THANK I THINK, I THINK GIVEN
SOME OF THE, POINTS RAISED HERE,
I WOULD LIKE TO SEE STAFF MAY
PERFORM A LITTLE MORE ANALYSIS
ON THIS AND GET IT BACK TO
COMMITTEE. THANK YOU, AND, IN
RELATIONSHIP TO YOUR COMMENT, IS
K¾T ON THE PATH TO BECOMING
SUSTAINABLE WITH ITS RATES? YES.
OKAY. SORRY, BRIAN METZGER, LÀ,
BASED ON THEIR LATEST RATE
REASSESSMENT REPORT, THAT WAS
JUST FILED, IT APPEARS THAT THE
FORECASTED REVENUES AND
EXPENDITURES FOR THE STATE DATA
CENTER, ARE TRENDING TOWARDS
BEING BALANCED IN 24, 25, IT
SHOWED THAT THERE WAS A 3.3
BILLION OR BILLION EXCUSE ME,
$3.3 MILLION, POSITIVE NET,
BETWEEN REVENUES AND
EXPENDITURES. SO IT APPEARS
THEY'RE ON TRACK TO GET THERE,
HOWEVER, THERE ARE A NUMBER OF
UNCERTAINTIES ABOUT CERTAIN
SERVICES THAT THEY MAY MAKE
MANDATORY, OR THAT MAY BE
REMOVED FROM THEIR CATALOG. SO
THERE ARE A NUMBER OF FACTORS
THAT CAN STILL MOVE, BUT RIGHT
NOW IT LOOKS LIKE THEY'RE
TRENDING TOWARDS A MORE
SUSTAINABLE BUSINESS MODEL. ALL
RIGHT. ANY LAST COMMENTS. ALL
RIGHT. WE WILL OPEN IT UP TO THE
PUBLIC. ANYBODY WOULD LIKE TO
SPEAK IN ON THIS ITEM. SEEING
NONE WE THANK YOU. AND I THINK
WE'LL BE SEEING YOU REMAIN UP
HERE. MIDDLE MILE. I LIKE MIDDLE
MILE. IT JUST IT'S A VERY
COMPLEX PROJECT. ALL RIGHT. WE
ARE GOING TO BE REVIEWING THE
ADMINISTRATION'S REQUEST FOR
$1.5 BILLION TO COMPLETE THE
ESTIMATED 10,005 10,500 MILES OF
MIDDLE MILE NETWORK. IF YOU'D
LIKE TO INTRODUCE YOURSELVES
AGAIN AND SPEAK TO THIS. GOOD
AFTERNOON, MADAM CHAIR, AND
MEMBERS, THANK YOU FOR THE
OPPORTUNITY TO SPEAK WITH YOU
TODAY ABOUT THE STATE'S MIDDLE
MILE BROADBAND INITIATIVE. I'M
LIANA BAILEY CRIMMINS, THE
CALIFORNIA STATE CHIEF
INFORMATION OFFICER AND THE
DEPARTMENT DIRECTOR OF THE
CALIFORNIA DEPARTMENT OF
TECHNOLOGY. CO-PRESENTING WITH
ME TODAY IS MR. MARK MONROE, THE
DEPUTY DIRECTOR OF THE MIDDLE
MILE BROADBAND INITIATIVE. IN
JULY 2021, THANKS TO THE
GOVERNOR, GAVIN NEWSOM AND THE
LEGISLATURE, SENATE BILL 156
CREATED AN OPEN ACCESS MIDDLE
MILE NETWORK, BRINGING EQUITABLE
HIGH SPEED BROADBAND SERVICES TO
ALL CALIFORNIANS. THE CALIFORNIA
DEPARTMENT OF TECHNOLOGY HAS A
VERY KEY RESPONSIBILITY WHEN IT
COMES TO THE DELIVERY OF
BROADBAND FOR ALL. WE OVERSEE
THE DEVELOPMENT AND OPERATION OF
THE CALIFORNIA OPEN ACCESS
MIDDLE MILE BROADBAND NETWORK OF
OVER 10,000 MILES, WHICH IS THE
LARGEST IN THE NATION. WE ARE
PLEASED TO REPORT SIGNIFICANT
ACCOMPLISHMENTS. YOU'RE GOING TO
HEAR MORE ABOUT THEM FROM MR.
MARK RAMO, MÀ. MARK MONROE, BUT
THIS INCLUDES THE SIGNING OF
CONTRACTS TO CONSTRUCT, LEASE
AND PURCHASE, WHICH IS
APPROXIMATELY 83% OF THE PLANNED
NETWORK MILEAGE IN PARTNERSHIP
WITH CALTRANS. WE'VE ALSO
CONTINUED TO LEAD THE WAY WHEN
IT COMES TO FEDERAL STATE
PARTNERSHIPS WITH ACTUALLY
REDUCING PERMITTING TIMELINES.
WE WERE RECOGNIZED BY THE
FEDERAL GOVERNMENT FOR OUR
ACCOMPLISHMENTS, AND THE
ADMINISTRATION OBVIOUSLY IS
COMMITTED TO BUILDING THE
COMPLETE 10,000 MILE NETWORK.
REGRETTABLY DUE TO SUPPLY AND
DEMAND AND SUPPLY CHAIN CHANGES
POST PANDEMIC CONSTRUCTION,
CONSTRUCTION COSTS INCREASED BY
40% PER MILE. OVER THE PAST TWO
YEARS, K¾T HAS IMPLEMENTED COST
CONTAINMENT STRATEGIES, WHICH
INCLUDE PRIVATE AND PUBLIC
PARTNERSHIPS, GOVERNMENT TO
GOVERNMENT, TRIBAL PARTNERSHIPS,
EACH WITH THE INTENTION TO
MAXIMIZE THE REACH TO URBAN AND
RURAL COMMUNITIES. YOUR
CONSTITUENTS THAT HAVE
HISTORICALLY NOT BEEN SERVED BY
THE BROADBAND INDUSTRY CGRTS
BUDGET REQUEST IS FOR $1.5
BILLION OVER TWO FISCAL YEARS TO
CONSTRUCT APPROXIMATELY 2200
MILES AND COMPLETE THE MIDDLE
MILE BROADBAND NETWORK BY
DECEMBER 2026. OUR COLLECTIVE
MISSION IS TO ADDRESS THE
DIGITAL DIVIDE AND SEE THAT THAT
NETWORK PROVIDES A VITAL
SERVICES TO CALIFORNIANS, WHICH
WE HAVE HEARD LOUD AND CLEAR OUR
PRIORITIES FOR ALL OF OUR
COMMUNITIES. YOUR CONSTITUENTS,
FROM URBAN CENTERS TO RURAL
COMMUNITIES. THAT CONCLUDES MY
OPENING REMARKS. AND, MR. MARK
MONROE WILL NOW PROVIDE
ADDITIONAL INFORMATION AND GO
OVER A SHORT PRESENTATION FOR
YOU. THANK YOU. GOOD AFTERNOON,
MADAM CHAIR AND MEMBER MEMBERS,
MARK MONROE, DEPUTY DIRECTOR FOR
THE MIDDLE MILE BROADBAND
INITIATIVE AT, K¾T. I'VE BEEN
ASKED TO PROVIDE A BRIEF UPDATE
ON THE PROGRESS OF THE MWBE
PROJECT AS IT RELATES TO CGRTS
BUDGET REQUEST, AS NOTED IN THE
AGENDA, A TOTAL OF $3.87 BILLION
HAS BEEN APPROPRIATED TO K¾T, TO
DEVELOP A 10,000 PLUS MILE
NETWORK OF MIDDLE MILE BROADBAND
INFRASTRUCTURE TO SERVE AS A
BACKBONE TO CONNECT THE STATE'S
UNSERVED COMMUNITIES, CURRENTLY,
ABOUT $2.4 BILLION OF THIS, IS A
FEDERAL SFDPH FUNDING FROM THE
AMERICAN RESCUE PLAN ACT, OR
ARPA, AND, WITH, WITH MOST OF
THE REMAINDER BEING GENERAL
FUND. THE FEDERAL FUNDS MUST BE
UNDER CONTRACT BY THE END OF
CALENDAR YEAR 2024, WITH
ASSOCIATED WORK COMPLETED BY THE
END OF CALENDAR YEAR 2026, PER
SB 156 K¾T WORKED WITH CPUC AND
ITS THIRD PARTY ADMINISTRATOR,
GOLDEN STATE NET, TO IDENTIFY
THE COMMUNITIES WITH UNSERVED
POPULATIONS THROUGHOUT THE STATE
AND MAPPED THE NETWORK TO REACH
THESE LOCATIONS WITH A RESILIENT
INDUSTRY STANDARD NETWORK. THIS
INITIAL MAP WAS PRESENTED IN MAY
OF 2022, AND K¾T HAD CALTRANS
IMMEDIATELY BEGAN
PRE-CONSTRUCTION ACTIVITIES,
SUCH AS PERMITTING THE DESIGN ON
ALL 10,000 MILES IN ORDER TO
MEET THE FEDERAL 2024 AND 2026
DEADLINES, CDC ALSO SIGNED A
CONTRACTS EARLY IN 2022 TO
PURCHASE FIBER AND ASSOCIATED
MATERIALS TO MITIGATE, FUTURE
SUPPLY CHAIN RISKS. THE STATE
ALSO WENT OUT TO BID FOR BOTH
CONSTRUCTION AND PARTNERSHIPS,
AT THE SAME TIME. THE DATE, TO
DATE OR THEY'RE, MORE THAN 6500
MILES OF PARTNERSHIPS FOR
LEASES, JOINT BUILDS AND
PURCHASES. PURCHASE AGREEMENTS
HAVE BEEN SIGNED, AS CDC HAS
SIGNED CONTRACTS FOR THESE
PARTNERSHIPS. IT HAD CALTRANS
IMMEDIATELY STOPPED THE
PRE-CONSTRUCTION WORK, THAT IS
NO LONGER NEEDED ON THESE
SEGMENTS. CURRENTLY, CDC
ANTICIPATES HAVING CALTRANS
CONSTRUCT THE, APPROXIMATELY
4000 REMAINING MILES OF THE
NETWORK, AND CALTRANS
ANTICIPATES FINALIZING ALL
PRE-CONSTRUCTION, ON THIS 4000
MILES BY THE END OF THE CALENDAR
YEAR. GIVEN THE SUCCESS IN
FINDING PARTNERS IN THE FIRST
RFI SQUARED SOLICITATION, CDC
WENT OUT TO, WENT OUT FOR
ANOTHER SOLICITATION FOR
ADDITIONAL PARTNERS AND IS
CURRENTLY EVALUATING MORE THAN
50 PROPOSALS THAT WERE RECEIVED,
I'M GOING TO BE BRIEFLY
REFERENCING THE HANDOUT THAT I
THINK, THAT YOU'VE BEEN
PROVIDED, FIRST, WE HAVE A
TIMELINE FOR THE PROJECT, IT
REFLECTS THE FACT THAT, FIRST OF
ALL, THE FEDERAL DEADLINES, I
REFERENCED OF 2024 AND 2026 FOR
HAVING LIQUIDATED THE CONTRACTS,
THE STEP WE'RE ALSO TAKING STEPS
TO ACCELERATE THE PROJECT. AND
YOU CAN SEE CDC IS AHEAD OF
SCHEDULE, DUE TO EARLY STATE AND
FEDERAL PERMITTING, PERMIT
STREAMLINING, MATERIALS
PURCHASES, AND THE SIMULTANEOUS
BID SOLICITATIONS FOR
CONSTRUCTION AND PARTNERSHIPS.
AND BECAUSE LEASES AND PURCHASES
USE EXISTING INFRASTRUCTURE,
THESE AGREEMENTS WILL ALLOW FOR
POTENTIAL EARLY ACTIVATION OF
SOME SEGMENTS OF THE NETWORK AS
EARLY AS 2025 AND 2026, AHEAD OF
THE FEDERAL DEADLINE ON THE
NEXT, NEXT PAGE, YOU CAN SEE
THE, SOME DETAILS ON THE
PARTNERSHIPS THE STATE IS USING
IN DEVELOPING THE NETWORK. THE
EARLY SOLICITATIONS, ALLOWED
CALTRANS TO SIGN MASTER
AGREEMENTS FOR CONSTRUCTION OF
APPROXIMATELY 1800 MILES OF THE
NETWORK, AND CALTRANS IS
CURRENTLY MOVING TO CONSTRUCTION
IN MORE THAN A DOZEN LOCATIONS
ACROSS THE STATE, ON A TOTAL OF
100. MORE THAN 160 MILES. AS
I'VE NOTED, THE RFI SQUARED
PARTNERSHIP SOLICITATIONS ALSO
ALLOWED K¾T TO SECURE TEN
PARTNERSHIPS FOR APPROXIMATELY
6500 MILES, INCLUDING, ALMOST
3500 MILES OF LEASES, 2600 MILES
OF JOINT BUILD PARTNERSHIPS, AND
435 MILES OF PURCHASES AND,
CONSTRUCTION ON THESE SEGMENTS
BEGAN THIS LAST DECEMBER, AND,
BY THE END OF THIS, BY THE END
OF LAST QUARTER, RATHER, THE
FIVE LOCATIONS WERE TOTALING 106
MILES, WERE UNDER CONSTRUCTION,
WITH ANOTHER 670 MILES STARTING,
THIS QUARTER. AND THE NEXT
HANDOUT, YOU CAN SEE THE,
REFLECTS THE CGRTS EXPENDITURE
OF FUNDING ON THE PROJECT, OF
THE 3.5 BILLION APPROPRIATED TO
CDC TO DATE, 2.9 BILLION IS
ALREADY UNDER CONTRACT FOR, FOR
THESE, PARTNERSHIPS AND
EQUIPMENT AND CALTRANS
CONSTRUCTION, AND THEN CDC IS
ISSUED WORK AUTHORIZATIONS FOR
CALTRANS TO START CONSTRUCTION
ON THE 160 MILES OF THE OF THE
TOTAL 1800, I HAD MENTIONED
EARLIER. ON THE NEXT PAGE, YOU
CAN SEE THAT, CDC IS REQUESTING
A $1.5 BILLION GENERAL FUND,
OVER TWO YEARS TO FUND
CONSTRUCTION, OR DEVELOPMENT OF
THE FINAL 2200 MILES OF THE
NETWORK. CDC CURRENT PLAN IS TO
CONTINUE MOVING TO CONSTRUCTION
AS SEGMENTS BECOME READY, PER
CALTRANS ROLLOUT SCHEDULE FOR
THE FULL 4000 MILES THIS
CALENDAR YEAR. AND AT THE SAME
TIME, CDC IS EVALUATING THE NEW
RFI SQUARED PARTNERSHIP
PROPOSALS FOR ADDITIONAL PUBLIC
PRIVATE PARTNERSHIPS, SINCE
THESE OPPORTUNITIES ARE OFTEN
FASTER AND REDUCE THE STATES,
EXPENSES BY SPLITTING THE COST
OF CONSTRUCTION. AND THEN
LASTLY, YOU CAN SEE A MAP THERE
OF THE FULL 10,000 MILES AND
OVERLAID ON THAT IS THE IN BLUE,
THERE ARE THE, THE FFA GRANT
APPLICATIONS THAT WERE SUBMITTED
TO THE PUBLIC UTILITIES
COMMISSION, WE MEET REGULARLY
WITH THE PUBLIC UTILITIES
COMMISSION TO, TO ENSURE THAT
WE'RE, WE UNDERSTAND WHERE
THEY'RE GOING AND THEY'RE,
THEY'RE WEBSITE SITES, OURS AND
OUR WEBSITE SITES THERE. SO
WE'RE VERY IN STEP WITH THEM.
AND WITH THAT, I'M HAPPY TO TAKE
ANY QUESTIONS YOU HAVE. I'D LIKE
TO HEAR FROM THE LAO AND THE
DOF. BRIAN METZGER. LAO, WE FIND
THAT THE PROPOSAL DERIVES FROM
AN APPROACH THAT WAS PRESENTED
BY THE DEPARTMENT IN JULY OF
LAST YEAR TO IMPLEMENT THE
MIDDLE MILE NETWORK IN TWO
PHASES. THE FIRST PHASE WOULD
HAVE IMPLEMENTED 8300 OF THE NOW
10,500 MILES OF MIDDLE MILE
NETWORK, USING THE $3.87 BILLION
THAT IS CURRENTLY OR PLANNED TO
BE APPROPRIATED. AND THE SECOND
PHASE WOULD HAVE IMPLEMENTED THE
REMAINING MILES USING ALTERNATE
FUNDING SOURCES SUCH AS DESIGN
EFFICIENCIES AND SAVINGS FROM
THE FIRST PHASE, AS WELL AS LAST
MILE PROJECT FUNDING FOR MIDDLE
MILE INFRASTRUCTURE THAT'S
DEEMED ESSENTIAL TO CONNECT. IN
RESPONSE TO NEGATIVE FEEDBACK
FROM SOME MEMBERS AND
STAKEHOLDERS, INCLUDING SOME
THAT WERE CONCERNED ABOUT
WHETHER THE MIDDLE MILE NETWORK
WOULD BE AVAILABLE FOR LAST MILE
PROJECTS, THE DEPARTMENT CHANGED
THAT APPROACH AND COMMITTED TO
PRESENTING THE PROPOSAL. THAT'S
NOW BEFORE THE LEGISLATURE,
SINCE LAST YEAR, HOWEVER, IT HAS
BECOME CLEAR THAT THE STATE IS
FACING A SERIOUS BUDGET PROBLEM.
IN 20 2425, AS WELL AS
SIGNIFICANT BUDGET DEFICITS IN
FUTURE FISCAL YEARS. THE
DEPARTMENT'S PROPOSAL FOR AN
ADDITIONAL 1.5 BILLION GENERAL
FUND FOR THE MIDDLE MILE NETWORK
IS NOT SUSTAINABLE. UNDER
CURRENT REVENUE AND EXPENDITURE
PROJECTIONS. FURTHERMORE, THE
PROPOSAL DOES NOT PROVIDE
CRITICAL INFORMATION FOR THE
LEGISLATURE TO OVERSEE THE
IMPLEMENTATION OF THE MIDDLE
MILE NETWORK. FOR EXAMPLE, THE
PROPOSAL WOULD FUND STAND ALONE
CONSTRUCTION PROJECTS, BUT DUE
TO ONGOING PRE-CONSTRUCTION
WORK, DOES NOT IDENTIFY WHERE
THOSE PROJECTS WOULD BE, HOW
MUCH OF EACH OF THEM WOULD COST,
AND WHAT ORDER THEY WOULD BE
CONSTRUCTED AND WHEN THEY WOULD
BE ACTIVATED. THIS INFORMATION
IS IMPORTANT FOR LEGISLATIVE
OVERSIGHT BECAUSE OF THE FIRST
COME, FIRST SERVED APPROACH THAT
K¾T EXPECTS TO TAKE WITH THESE
PROJECTS. THAT IS, PRIMARILY
FUNDING PROJECTS AS THEY
COMPLETE PRE-CONSTRUCTION, NOT
BASED ON THEIR AVAILABILITY FOR
APPROVED LAST MILE PROJECTS OR
OVERALL COHESION AND VIABILITY
OF THE NETWORK. OTHER CRITICAL
INFORMATION ABOUT THE NEED FOR
CALTRANS TO CONSTRUCT ALL OF
THESE MILES. ABOUT THE PROPOSED
LAST MILE PROJECTS THAT MIGHT
CONNECT TO THE MIDDLE MILE
NETWORK, AND ABOUT THE PLAN TO
MAINTAIN AND OPERATE THE NETWORK
GOING FORWARD, CAUTIONED AGAINST
MOVING FORWARD WITH ADDITIONAL
FUNDING IN THE ABSENCE OF SOME
LANGUAGE THAT REQUIRES THIS
INFORMATION BE PRESENTED TO THE
LEGISLATURE, OUR RECOMMENDATION
IS TO APPROVE THE 250 MILLION OF
GENERAL FUND THAT WAS ALREADY
PLANNED TO BE APPROPRIATED IN
2425. THAT'S PART OF THAT 3.87
BILLION, THAT WAS MENTIONED
EARLIER, BUT ALSO INCLUDE BUDGET
AND OR TRAILER BILL LANGUAGE
THAT REQUIRES DETAILED
INFORMATION ABOUT CURRENT AND
FUTURE PLANS FOR THIS NETWORK.
HOWEVER, WE ALSO RECOMMEND THE
LEGISLATURE REJECT THE
DEPARTMENT'S PROPOSAL FOR AN
ADDITIONAL 1.5 BILLION GENERAL
FUND, THE FISCAL PRESSURE FACING
THE STATE DOES NOT SUPPORT A
GENERAL FUND INVESTMENT OF THIS
MAGNITUDE, PARTICULARLY GIVEN
THERE ARE SIGNIFICANT NUMBER OF
MILES THAT CAN STILL BE
DELIVERED, AND THERE ARE
POSSIBLE ALTERNATE FUNDING
SOURCES THAT COULD BE EVALUATED,
POTENTIALLY AS A PART OF THAT
LANGUAGE. AND HAPPY TO ANSWER
ANY QUESTIONS. THANK YOU.
COURTNEY THE DEPARTMENT OF
FINANCE, WE JUST WANT TO
HIGHLIGHT THAT THIS PROPOSAL IS
ESSENTIAL TO THE CONSTRUCTION OF
THE MIDDLE MILE BROADBAND
NETWORK. AND IF NOT FULLY
FUNDED, DIFFICULT DECISIONS ARE
GOING TO BE NEED TO BE MADE ON
WHICH SECTIONS OF THE NETWORK
ARE NOT FUNDED OR CONSTRUCTED.
THIS IS A VERY ONE OF THE
TRICKIEST BUDGET ITEMS WE HAVE
AS AS ANYBODY HAS BEEN WATCHING
OUR BUDGET HEARINGS, WE ARE
MAKING OR BEING, ENCOURAGED TO
MAKE VERY DEEP CUTS UNDER FOR
EVERYTHING FROM FOSTER CARE TO
HOUSING PROGRAMS. RAIMES, PRETTY
MUCH EVERYTHING IS ON THE TABLE.
SO TO HAVE THE ADMINISTRATION
PUT FORWARD AN INCREASE OF, 1.5
BILLION IS A LITTLE BIT OF AN
OUTLIER. WHEN YOU LOOK AT THE
ENTIRE GOVERNOR'S BUDGET.
BECAUSE IF YOU'VE KIND OF,
PEERED THROUGH IT, YOU'LL SEE
THAT THERE'S ALMOST NO INCREASES
IN BUDGET, I UNDERSTAND THE IF
THIS ISN'T, THESE DOLLARS AREN'T
AWARDED THAT THERE. YOU KNOW,
THESE MILES WON'T BE COMPLETED.
SO COULD YOU RESTATE WHY THE,
THE 10,000 MILES, THAT ARE, KIND
OF THE GOAL OF THIS PROGRAM, SO
WE'RE SHORT ABOUT, WHAT, 2500
MILES AND THIS 1.5 WOULD, PAY
FOR THAT COMPLETION. BUT IN THE
END, EVEN JUST, SAY THAT THE
ADMINISTRATION DOES, GET THE
SUPPORT TO MOVE THIS 1.5
FORWARD. WILL WE, IN FACT, HAVE
BROADBAND ACCESS FOR ALL? SO,
YES, THE TO BE CLEAR, THE 1.5
BILLION IS, WOULD GET US THE
FINAL 2200 MILES OF THE NETWORK,
AND WHAT THAT DOES IS, AS
PROVIDED FOR IN SB 156, IT IT
LINKS UP THOSE COMMUNITIES THAT
ARE UNSERVED. AND SO RIGHT NOW
AND HISTORICALLY, YOU KNOW, THE
PUBLIC UTILITIES COMMISSION HAS
ADMINISTERED GRANTS TO PROVIDE
LAST MILE FUNDING TO PROJECTS.
BUT THE REAL CHALLENGE WAS THAT
THERE WASN'T REALLY A POINT IN
APPLYING IF THERE WAS NO MIDDLE
MILE TO CONNECT TO, UNLESS
YOU'RE PREPARED TO ALSO BUILD
OUR OWN SEPARATE MIDDLE MILE,
YOUR OWN SEPARATE MIDDLE MILE.
SO, THE FULL TEN, 10,000, THE
FUNDING FOR THE FULL 10,000 IS
NEEDED. SO THAT WE CAN CREATE
THAT FRAMEWORK BECAUSE GOING
FORWARD, NOT ONLY IS THE CPUC
REVIEWING, I THINK MORE THAN $4
BILLION IN APPLICATIONS FOR, FOR
FFA GRANTS, BUT THEY HAVE AN
ANNUAL ALLOCATION I THINK OF,
THE CASF GRANTS AND THE RANGE OF
150 MILLION THAT ALSO GO TO
THESE LAST MILE PROJECTS AS WELL
AS THE STATE WILL BE RECEIVING
$1.86 BILLION IN BEAD FUNDING,
AGAIN FOR MORE OF THESE LAST
MILE PROJECTS. SO THE STATE
REALLY NEEDS THIS FRAMEWORK SO
THAT ALL OF THOSE LAST MILE
PROJECTS CAN, CAN CONNECT TO THE
STATE'S, MIDDLE MILE. AND THAT
REALLY IS WHAT CLOSES IT. ONE
ONE OF THE ONE OF THE, THINGS TO
REMIND PEOPLE IS THAT THE MIDDLE
MILE IN AND OF ITSELF DOESN'T,
DOESN'T PROVIDE THAT CONNECTION
TO THE HOME. THOSE LAST MILE
CONNECTIONS AND THOSE THOSE
PROJECTS THAT ARE BEING FUNDED
BY THE PUBLIC UTILITIES
COMMISSION, THAT THAT'S REALLY
WHERE THAT CONNECTION IS
PROVIDED. BUT WITHOUT A MIDDLE
MILE TO CONNECT TO, IT DOESN'T
WORK, MADAM CHAIR, CAN I
ELABORATE A LITTLE, WHEN WE
THINK OF BROADBAND FOR ALL, IT
OBVIOUSLY ACCESSIBILITY IN THE
MIDDLE MILE IS A BIG PART OF
THAT LAST MILE. BUT AS AS YOU'RE
KEENLY AWARE AND AS OTHER
MEMBERS ARE AWARE, IT'S ONE OF
THE ELEMENTS OF BROADBAND FOR
ALL. IT'S NOT ONLY
ACCESSIBILITY, IT'S ALSO WORKING
WITH LAST MILE PROVIDERS TO
PROVIDE AFFORDABILITY, BECAUSE
SOME PEOPLE MAY HAVE BROADBAND
SITTING, BUT THEY CAN'T AFFORD
TO ACTUALLY UTILIZE IT OR TO
SIGN UP. THEY MAY HAVE TO CHOOSE
BETWEEN GROCERIES OR THEIR
BROADBAND BILL. AND THEN THERE'S
ALSO THE OPPORTUNITY TO MAKE
SURE, AS WE'RE STILL SEEING MANY
HOUSEHOLDS CANNOT AFFORD A
DEVICE, THEY'RE STILL USING
MOBILE PHONES IN ORDER TO. AND
THERE'S AN EQUITY ISSUE THERE
THAT THEY THAT'S THE ONLY WAY
THAT THEY'RE COMMUNICATING IS
VIA PHONE. THEY CAN'T ACTUALLY
AFFORD DEVICES. AND IF YOU'VE
EVER TRIED TO APPLY FOR A JOB ON
A PHONE OR TRY TO DO SOME OF
YOUR TELEHEALTH, IT'S VERY
DIFFICULT. AND IT'S ALSO DIGITAL
LITERACY, MAKING SURE THAT WHEN
PEOPLE DO HAVE THE DEVICES, THEY
HAVE THE CONNECTIVITY, AND IT'S
AFFORDABLE, THAT THEY KNOW HOW
TO LEVERAGE IT TO THE FULLEST
EXTENT. SO I JUST WANT TO MAKE
SURE WHEN WE TALK ABOUT
BROADBAND FOR ALL THIS IS A
PIVOTAL PART, BUT IT'S NOT THE
ONLY PART. I UNDERSTAND THAT AS
I SAT ON THE MIDDLE MILE, I
THINK SOME OF THE CONCERNS THAT
REMAIN IS WE CONTINUE TO TALK
ABOUT THE VULNERABLE COMMUNITIES
THAT WON'T BE SERVED. IN
ESSENCE, WITHOUT THIS ADDITIONAL
INVESTMENT. AND YET, PART OF I
THINK THE MANDATE WAS TO USE THE
MAPS, IN ORDER TO MAP OUT WHERE
THOSE MOST VULNERABLE
COMMUNITIES WERE. AND, AND I
WOULD HAVE HOPED BY NOW THOSE
WOULD HAVE BEEN THE FIRST
COMMUNITY SERVED, SO I DON'T
WANT TO HAVE A BIG DISCUSSION
ABOUT HOW THE MAPS WERE CHOSEN.
BUT I KNOW BEING ON THE
COMMITTEE, THOSE THOSE QUESTIONS
HAVE BEEN RAISED MANY TIMES.
ALSO, THE PARTNER WITH THE C PUC
, THERE HAS BEEN SOME VERY,
FRUSTRATING TIMES WHERE IT SEEMS
AS IF THEY'RE NOT MOVING FORWARD
IN A TIMELY MANNER IN ORDER TO,
MOVE FORWARD WITH SOME OF THESE
GRANTS THAT HAVE BEEN TALKED
ABOUT, AND SO WITH THAT, I
UNDERSTAND THE ADMINISTRATION'S
INTEREST IN COMPLETING, IF YOU
WANT TO SAY, A PROJECT, BUT I
STILL DO HAVE REMAINING
QUESTIONS. I MEAN, EVEN WHEN YOU
LOOK AT THE GOLDEN STATE NETWORK
AS A WHOLE, I KNOW WHEN I WAS ON
MIDDLE MILE, WE ASKED OR I ASKED
ABOUT HOW WAS THIS GOING TO BE
SUSTAINED IN THE FUTURE, WHAT
KIND OF WORKFORCE, IF WE'RE
ACTUALLY CALLING IT THE GOLDEN
STATE NETWORK, WE'RE DOING A LOT
OF CONTRACTING OUT. WILL THERE
BE STATE EMPLOYEES TO ACTUALLY
SUSTAIN IT IN THE FUTURE? SO I
THINK THERE'S STILL QUITE A FEW,
QUESTIONS, WE WILL CONTINUE TO
LOOK AT THIS ITEM, BUT BUT IN A
DIFFICULT BUDGET, AS YOU KNOW,
IT'S A REALLY DIFFICULT BECAUSE
YOU'RE RIGHT THAT PEOPLE HAVE TO
WEIGH, ON THE BROADBAND ACCESS.
THERE ARE A LOT OF THE PROVIDERS
OUT THERE THAT OFFER DIFFERENT
CARE PACKAGES. AND YET WE HAVE
FOUND THAT MANY PEOPLE DON'T
ACCESS THOSE, EVEN THOUGH THEY
ARE AVAILABLE BY SOME OF THE
PROVIDERS. SO SO, IT'S ALWAYS
THAT KIND OF CHICKEN AND EGG WHO
, SHOULD, BE WORKING TO HELP
CONNECT THEM. OBVIOUSLY, YOU
WOULD THINK IF THERE'S STUDENTS,
SCHOOL DISTRICTS AND SO FORTH
WOULD HAVE A ROLE IN THAT. BUT
WE DON'T ALWAYS SEE THOSE
CONNECTIONS MADE IN A WAY THAT
MAKES IT EASY FOR FAMILIES TO
SAY, ALL RIGHT, I HAVE A PACKAGE
THAT'S GOING TO WORK FOR MY
FAMILY. BUT WE SAW SOME HUGE
PITFALLS DURING THE PANDEMIC, OF
COURSE, WITH THE REMOTE WORKING.
AND THERE'S STILL QUITE A BIT OF
ISSUES WITH CONNECTIVITY. BUT IN
THE MOST VULNERABLE AREAS, THAT
WAS PART OF THE ISSUES THAT WE
WERE TALKING ABOUT, AND I THINK
THAT'S WHERE WE MIGHT HAVE
STUMBLED A LITTLE BIT BECAUSE WE
THINK OF EQUALITY ACROSS
CALIFORNIA. BUT THE PROBLEM IS
THERE ARE SOME PLACES THAT HAD
NO ACCESS. AND THEN THERE WERE
THE DONUT HOLE, HOLES WHERE
THERE WERE SOME ACCESS. AND MY
HOPE WAS WE WERE GOING TO GET TO
THE PLACES THAT HAD NO ACCESS
FIRST. AND THAT, BY THE WAY,
THAT PROVIDERS WEREN'T
INTERESTED IN TRYING TO GO
THROUGH. AND WE KNOW THEY'RE THE
MOST DIFFICULT PLACES GOING
THROUGH MOUNTAINS. IF YOU WANT
TO SAY, VERY RURAL AREAS, I KNOW
THAT YOU'RE VERY WELL
ACQUAINTED. ACQUAINTED WITH
ASSEMBLY MEMBER JIM WOOD AND
ASSEMBLY MEMBER, JIM PATTERSON,
WHO HAVE BEEN SAYING IN THE END
OF THIS PROJECT ARE THE PEOPLE
IN MY COMMUNITIES, THE MORE
RURAL CALIFORNIA'S UKIAH WAY UP
NORTH ARE THEY GOING TO HAVE
ACCESS? BUT I THINK WE TRIED TO
KIND OF DELIVER ACROSS THE STATE
OF CALIFORNIA, AND WE MAY VERY
WELL STILL BE IF THIS FUNDING
DOESN'T COME THROUGH WHERE WE
HAVEN'T CREATED THAT ACCESS. BUT
I UNDERSTAND AND, YOU KNOW, IT'S
A BIG PROJECT. YOU TRY TO MOVE
FORWARD, YOU TRY. YOU ESTIMATED
THE COST WITH PANDEMIC, WITH
OTHER DELAYS ON, PRODUCTS COMING
IN ALL OF THAT. IT I'M SURE HAS
ESCALATED THE PRICE, I JUST,
WOULD HOPE THAT IT WOULD HAVE
BEEN MORE SEAMLESS SO THAT WE
WOULDN'T BE ASKING FOR A BUDGET
INCREASE AT THIS POINT, AND IF
IT WAS IN A DIFFERENT YEAR, I
DON'T THINK THERE WOULD BE A LOT
OF DISCUSSION OTHER THAN WE HAVE
SUCH CRITICAL KIND OF, HUMAN
SERVICES THINGS THAT WE KNOW
UNDER THAT UMBRELLA THAT WE'RE
GOING TO HAVE TO BE, WEIGHING
BACK AND FORTH BETWEEN CALWORKS,
BETWEEN, ALL OF THESE HEALTH
CARE, THESE TYPE OF ISSUES. SO
IT CERTAINLY IS NOT A CRITICISM
OF THE DEPARTMENT OF TECHNOLOGY
MIDDLE MILE. IT'S JUST WHAT DO
YOU DO WITH LIMITED DOLLARS? BUT
WITH THAT, WE APPRECIATE ALL
THAT YOU HAVE DONE, AND WE WILL
CONTINUE TO STAY IN
CONVERSATION. ANY PUBLIC
COMMENTS ON THIS ITEM? MIDDLE
MILE.
HELLO. SARAH BRENNAN WITH
WHITMAN GROUP ON BEHALF OF NEXT
GEN POLICY. NEXT GEN POLICY
STRONGLY SUPPORTS THE $1.5
BILLION INVESTMENT FOR
COMPLETION OF THE MIDDLE MILE
BROADBAND INITIATIVE WITHOUT
APPROVING THE GOVERNOR'S
PROPOSED INVESTMENT. THAT WOULD
BE AKIN TO BUILDING HALF A
BRIDGE, AS THE STATE AIMS TO GET
ALL OF CALIFORNIA CONNECTED.
THANK YOU. HI EVERYONE. GEORGE
SAVAGE WITH OAKLAND UNDIVIDED. I
WAS HERE WITH 25 OTHER
ORGANIZATIONS LAST WEEK. WE WERE
ALL SUPPORTING THIS $1.5 BILLION
FOR MWBE. WE ALSO HAVE SIGN ONS
AS PART OF THE CALIFORNIA
ALLIANCE FOR DIGITAL EQUITY BY
OVER 85 ORGANIZATIONS. ALSO
SUPPORTING THIS, THIS IS
INVALUABLE INFRASTRUCTURE, WHICH
WILL CONNECT MILLIONS OF
CALIFORNIANS, FOSTER COMPETITION
AND IMPROVE AFFORDABILITY.
ASSEMBLY MEMBER QUIRK-SILVA. WE
DEFINITELY HEAR YOUR CONCERNS
AND SHARE SOME OF YOUR CONCERNS
THAT WE NEED TO ENSURE WE'RE
SERVING OUR LEAST CONNECTED
COMMUNITIES FIRST. SO THAT BEING
SAID, WE DO URGE THE LEGISLATURE
TO REQUIRE TRANSPARENCY FROM K¾T
BY REQUIRING THAT THEY PUBLISH A
CLEAR CRITERIA FOR SELECTING
SEGMENTS PRIOR TO ADDITIONAL
SEGMENTS BEING FUNDED. THANK
YOU. THANK YOU. HELLO, I'M
SHAYNA ENGLAND, I'M HERE WITH
THE CALIFORNIA COMMUNITY
FOUNDATION AND THE CALIFORNIA
ALLIANCE FOR DIGITAL EQUITY IN
STRONG SUPPORT OF THE GOVERNOR'S
$1.5 BILLION REQUEST. WE ALSO
AS, AS YOU WELL KNOW, SHARE YOUR
CONCERNS ABOUT HOW THESE MAPS
HAVE BEEN DEVELOPED, WHAT
COMMUNITIES WERE INITIALLY
SUPPOSED TO BE FIRST IN LINE AND
ARE NOW LAST IN LINE AND FOR AND
FIGHTING FOR DOLLARS AND ABOUT
THE TRANSPARENCY AND COMMUNITY
ENGAGEMENT AROUND HOW THIS
PROCESS HAS HAPPENED. SO WHILE
WE SHARE THOSE CONCERNS, WOULD
ABSOLUTELY SUPPORT ADDITIONAL
PROVISIONS AROUND TRANSPARENCY,
WE DO SUPPORT AND BELIEVE THIS
IS A VITAL ONE TIME, ONCE IN A
GENERATION INVESTMENT. THANK
YOU. GOOD AFTERNOON. AMANDA
BALDERRAMA WITH CAL BROADBAND,
WE AGREE WITH THE LÀ
RECOMMENDATION TO REJECT THE
PROPOSED ADDITIONAL 1.5 BILLION
FOR THE STATE'S MIDDLE MILE. TO
NOTE TO DATE, THE DEPARTMENT OF
TECHNOLOGY HAS NOT PRESENTED THE
LEGISLATURE WITH A BUSINESS PLAN
OR REVENUE MODEL TO DEMONSTRATE
SUCCESSFUL OPERATION AND
MAINTENANCE OF THE STATE. MIDDLE
MILE WITHOUT THE NEED FOR
ADDITIONAL GENERAL FUND MOVING
FORWARD. CONCERNING THE
CONDITION OF THE GENERAL FUND
THROUGHOUT THE BUDGET FORECASTED
WINDOW, CAL BROADBAND RECOMMENDS
THE LEGISLATURE TO, DELAY THE
UNSPENT FUNDS TO THE OUT YEAR
AND ADOPT THE BUDGET BILL
LANGUAGE REQUIRING DEPARTMENT OF
TECHNOLOGY TO PROVIDE THE
LEGISLATURE WITH A BUSINESS PLAN
FOR OPERATING, MAINTAINING AND
INNOVATING THE STATE'S MIDDLE
MILE INFRASTRUCTURE. THANK YOU.
GOOD AFTERNOON, MEMBERS. ERIKA
CERVANTES, ON BEHALF OF ALLIANCE
FOR BETTER COMMUNITY, WHERE WE
ARE ALSO PART OF THE DIGITAL
EQUITY LA COALITION, AS WELL AS
CALIFORNIA ALLIANCE FOR DIGITAL
EQUITY. WE ARE IN SUPPORT OF THE
1.5 BILLION AND WANT TO
REITERATE SOME OF THE POINTS
MENTIONED EARLIER AROUND
TRANSPARENCY AND ACCOUNTABILITY.
WE'RE REALLY HERE IN SUPPORT AND
IN RECOGNITION OF THE
COMMUNITIES THAT WERE LEFT OUT
IN THE PREVIOUS MAPS. SO WANT TO
UPLIFT THE NEED TO CONTINUE TO
SERVE OUR MOST UNDER-CONNECTED
AND UNCONNECTED COMMUNITIES.
THANK YOU. YOU CAN PULL THE MIC
UP AND THERE YOU GO. HELLO. GOOD
AFTERNOON, COUNCIL, MY NAME IS
JAVIER. I'M WITH ALLIANCE FOR
BETTER COMMUNITIES. I AM FROM
THE UNDERSERVED COMMUNITIES.
Y'ALL ARE TALKING ABOUT, AND I
AM FOR THE FULL SUPPORT OF THE
GOVERNOR'S LEGISLATION. WITH THE
FULL BUDGET INTACT. THANK YOU.
THANK YOU. HELLO, OSCAR MAGANA,
WITH EVERYONE ON ALSO IN STRONG
SUPPORT OF MWBE, ALSO HERE
REPRESENTING THOSE COMMUNITIES
THAT YOU'RE TALKING ABOUT. IT
DOESN'T MATTER WHERE THOSE
COMMUNITIES ARE, WHERE THEY'RE
WHETHER THEY'RE IN SOUTHERN
CALIFORNIA OR NORTHERN
CALIFORNIA OR RURAL AREAS.
EVERYONE NEEDS ACCESS TO THE
INTERNET AND EQUITABLE ACCESS TO
THE INTERNET AT THAT, STUDIES
SHOW THAT FOLKS ALSO WHO HAVE
THE DIGITAL SKILLS, FOUNDATIONAL
DIGITAL SKILLS TO BE COMPETITIVE
IN THE 21ST CENTURY ECONOMY ARE
GOING TO MAKE, ON AVERAGE,
$8,000 MORE A YEAR. THAT ALL
GOES BACK INTO OUR COMMUNITIES,
BUT IT'S NOT ENOUGH FOR US TO
TEACH DIGITAL SKILLS TO PEOPLE
IF THEY DON'T HAVE THE ACCESS.
SO PLEASE COMPLETE THE MIDDLE
MILE. THANK YOU, THANK YOU. AND,
ANY LAST COMMENTS? ALL RIGHT. I
WANT TO THANK YOU FOR
PRESENTING. ALL RIGHT. WE ARE
MOVING TO, ISSUE NUMBER SIX,
PRIVACY PROTECTION AGENCY.
I'M GOING TO GO AHEAD AND HAVE,
EACH PANELIST INTRODUCE
YOURSELF, AND THEN WE'LL GO
AHEAD AND BEGIN COMMENTS. GOOD
AFTERNOON, MADAM CHAIR. I'M
VAUGHN KITAMURA, DEPUTY DIRECTOR
OF ADMINISTRATION. CHAIR, MY
NAME IS MAUREEN MAHONEY. I'M THE
DEPUTY DIRECTOR OF POLICY AND
LEGISLATION AT THE PRIVACY
AGENCY. CHARLENE MANNING,
DEPARTMENT OF FINANCE. TAYLOR
MCCRAW, DEPARTMENT OF FINANCE.
BRIAN METZGER, LAUP. THANK YOU
AND WELCOME. AND YOU MAY GO
AHEAD AND BEGIN. I I WILL BE
PRESENTING THE BCP AND MAUREEN
MAHONEY WILL BE PRESENTING
RULEMAKING ACTIVITIES WITH
RESPECT TO AUTOMATED DECISION
MAKING AND RISK ASSESSMENTS. THE
CPA'S MISSION IS TO PROTECT THE
PRIVACY OF CALIFORNIANS. CAN YOU
MOVE THE MIC UP? JUST PULL IT UP
TO YOU A LITTLE BIT MORE. IS
THAT BETTER? YES THE CPA'S
MISSION IS TO PROTECT THE
PRIVACY OF CALIFORNIANS. WE ARE
TASKED WITH THE IMPLEMENTATION
AND ENFORCEMENT OF THE NATION'S
FIRST COMPREHENSIVE CONSUMER
PRIVACY LAW. THE CALIFORNIA
CONSUMER PRIVACY ACT. THE CCPA
IS AN INDEPENDENT AGENCY CREATED
AFTER CALIFORNIA VOTERS APPROVED
PROPOSITION 24. THE CALIFORNIA
PRIVACY RIGHTS ACT OF 2020,
WHICH AMENDS AND EXTENDS THE
CALIFORNIA PRIVACY ACT OF 2018.
THE AGENCY IS GOVERNED BY A FIVE
MEMBER BOARD WHO ARE EXPERTS IN
PRIVACY, TECHNOLOGY, AND
CONSUMER RIGHTS. THEY ARE
APPOINTED BY THE GOVERNOR, THE
LEGISLATURE, AND THE ATTORNEY
GENERAL. NOW MOVING ON TO OUR
BUDGET, KPA IS REQUESTING
$177,000 FROM THE GENERAL FUND
AND ONE POSITION IN FISCAL YEAR
24, 25 AND ONGOING. THIS IS
ASSOCIATED WITH THE COST OF
LIVING ADJUSTMENT OUTLINED IN
CIVIL CODE 1798.199.95 TO
IMPLEMENT AND ENFORCE THE
CALIFORNIA PRIVACY ACT OF 2018.
THE REQUEST ALSO INCLUDES BUDGET
BILL LANGUAGE OUTLINING THE
PROCESS FOR OPERATIONALIZING THE
COLA ADJUSTMENT. THE CALLER WILL
BE USED TO FIND A GRADUATE LEGAL
ASSISTANT IN OUR LEGAL DIVISION,
WHICH WILL PROVIDE ASSISTANCE
WITH A SIGNIFICANT AMOUNT OF THE
LEGAL DIVISION'S WORKLOAD,
INCLUDING REVIEWING AND
RESPONDING TO PUBLIC COMMENTS,
RESEARCHING LEGAL ISSUES
PERTAINING TO PRIVACY AND
TECHNOLOGY, AND ASSISTING WITH
DRAFTING TIME SENSITIVE
REGULATIONS. AND NOW I'LL PASS
OVER TO MAUREEN. THANK YOU.
CHAIR. I'M MAUREEN MAHONEY WITH
THE PRIVACY AGENCY. THE
COMMITTEE SUGGESTED THAT I
PROVIDE AN UPDATE ON THE
AGENCY'S RULEMAKING WORK. SO WE
ARE PREPARING TO ISSUE
REGULATIONS RELATED TO AUTOMATED
DECISION MAKING, TECHNOLOGY AND
RISK ASSESSMENTS PURSUANT TO THE
CALIFORNIA CONSUMER PRIVACY ACT.
THE CCPA, SPECIFICALLY REQUIRES
THE AGENCY TO ISSUE REGULATIONS
TO REQUIRE BUSINESSES WHOSE
PROCESSING OF PERSONAL
INFORMATION PRESENTS A
SIGNIFICANT RISK TO CONSUMERS
PRIVACY OR SECURITY TO SUBMIT
RISK ASSESSMENTS TO OUR AGENCY
ON A REGULAR BASIS. THE CCPA
ALSO REQUIRES US TO ISSUE
REGULATIONS GOVERNING ACCESS AND
OPT OUT RIGHTS WITH RESPECT TO
BUSINESSES USE OF AUTOMATED
DECISION MAKING TECHNOLOGY.
WE'RE CURRENTLY IN THE PRE
RULEMAKING PERIOD. WE'VE
RELEASED DRAFT REGULATIONS, WILL
BE NEXT UNDERTAKING A STATEWIDE
INFORMATIONAL TOUR IN MAY
FEATURING IN-PERSON MEETINGS,
THE GOALS OF WHICH ARE TO
EDUCATE A BROADER PORTION OF THE
PUBLIC ABOUT THE DRAFT FRAMEWORK
AND TO ENCOURAGE ENGAGEMENT IN
OUR RULEMAKING PROCESS. YES, SO
WE EXPECT FORMAL RULEMAKING TO
BEGIN THIS SUMMER AND THE
REGULATIONS TO BE WRAPPED UP IN
2025. THANK YOU. AND WE LOOK
FORWARD TO ANSWERING YOUR
QUESTIONS. THANK YOU. ANY
COMMENTS OR QUESTIONS? TAYLOR
MCCRAW, DEPARTMENT OF FINANCE.
WE HAVE NO COMMENTS AT THIS TIME
. BRIAN METZGER, LÀ. WE HAVE NO
CONCERNS WITH THIS PROPOSAL. AND
ASSEMBLY MEMBER QUIRK-SILVA NO
COMMENTS OR QUESTIONS. THANK YOU
FOR YOUR PRESENTATION. DO WE
HAVE ANY PUBLIC COMMENTS ON THIS
ITEM? PUBLIC COMMENTS SEEING
NONE. THANK YOU FOR YOUR
PRESENTATION. THANK YOU.
WELCOME. WELCOME. DEPARTMENT OF
GENERAL SERVICES. WE HAVE
SEVERAL OF YOU, SO IF YOU'LL
KEEP YOUR COMMENTS PRETTY,
SHORT, THAT WOULD BE GREAT. IT'S
OUR SEVENTH ISSUE. BUDGET CHANGE
PROPOSALS UNDER THE DEPARTMENT
OF GENERAL SERVICES. AND IF
YOU'D LIKE TO INTRODUCE YOURSELF
AS YOU PRESENT. THANK YOU.
WONDERFUL. THANK YOU. GOOD
AFTERNOON. MADAM CHAIR. AND
MEMBERS OF THE COMMITTEE. THANK
YOU. FIRST OF ALL, FOR PROVIDING
ME THE OPPORTUNITY TO ADDRESS
THE ASSEMBLY BUDGET HEARING
TODAY. MY NAME IS ANNA LAZO. I'M
THE DIRECTOR OF THE DEPARTMENT
OF GENERAL SERVICES. DGS HAS
WORKED CLOSELY WITH GOV OPS
AGENCY, THE DEPARTMENT OF
FINANCE AND THE GOVERNOR'S
OFFICE TO BALANCE PRIORITY
SERVICES AND TAKE A THOUGHTFUL,
SUSTAINABLE APPROACH TO RECENT
FLUCTUATIONS IN STATE REVENUES.
DGS IS IN ACCORD WITH THE
ADMINISTRATION'S COMMITMENT TO
MAINTAIN INVESTMENTS IN SAFETY,
CLIMATE CHANGE AND
SUSTAINABILITY WHILE MAXIMIZING
THE EFFICIENCY AND USE OF
EXISTING STATE RESOURCES.
ACCORDINGLY, DGS BUDGET REQUESTS
INCLUDE SEVERAL PROPOSALS
CONSISTENT WITH THESE VALUES. I
WOULD LIKE TO NOW INTRODUCE
HEATHER CARLSON, DGS CHIEF
FINANCIAL OFFICER AND THANK YOU
AGAIN FOR LETTING ME INTRODUCE
HER. THANK YOU. GOOD AFTERNOON,
MADAM CHAIR. MEMBERS. HEATHER
CARLSON, CHIEF FINANCIAL OFFICER
WITH THE DEPARTMENT OF GENERAL
SERVICES. THE AGENDA HAS A DOES
A GOOD JOB OF LAYING OUT THE
BUDGET PROPOSALS FOR YOU FOR
DEPARTMENT OF GENERAL SERVICES.
WE HAVE SIX BUDGET CHANGE
PROPOSALS AND ONE SUGGESTED
PROPOSAL TRAILER BILL. I'M JUST
GOING TO GIVE A QUICK SUMMARY,
THE FIRST PROPOSAL BEFORE YOU IS
FOR $4.2 MILLION FROM SERVICE
REVOLVING FUND AND 36 POSITIONS
TO MANAGE, OPERATE AND MAINTAIN
THE NEWLY RENOVATED GREGSON
BUILDING. I'M SORRY, GREGORY
BATESON BUILDING CAN YOU WHAT IS
THE GREG GREGORY BATESON
BUILDING, IT IS THE IT'S THE
NAME OF A NEW A RENOVATED. I DO
HAVE SOMEBODY IN THE AUDIENCE.
I'M FAIRLY NEW. THAT'S OKAY.
THAT'S ALL RIGHT. OKAY SO. SO,
RANDY KATZ, DEPARTMENT OF
FINANCE, THE GREGORY BATESON
BUILDING WAS COMPLETED IN THE
1970S. IT WAS, TRADITIONALLY WAS
THE HOME OF THE OF, DEPARTMENT
OF STATE HOSPITALS, DEPARTMENT
OF DDS, THEN THE NEW CLIFFORD
ALLENBY BUILDING AS, THEY'VE
RELOCATED THERE AND THE BATES
AND WILL BE REPURPOSED FOR OTHER
DEPARTMENTS AND CONSOLIDATIONS.
THANK YOU AGAIN. HEATHER CARLSON
DEPARTMENT OF GENERAL SERVICES,
THE SECOND PROPOSAL BEFORE YOU
IS FOR $2.5 MILLION IN THE
BUDGET YEAR, 2.6 MILLION IN
FISCAL YEAR 20 2526 THROUGH
2930, AND THEN $886,000 ONGOING
FROM THE MOTOR VEHICLE PARKING
FACILITIES MONEY ACCOUNT, THIS
IS THIS REQUEST IS TO, PAY FOR
THE STATEWIDE INCREASES
ASSOCIATED WITH OPERATIONAL
MAINTENANCE AND REPAIR COSTS ON
STATE OWNED PARKING FACILITIES.
THE REQUEST WILL ENSURE THAT
FIRE LIFE AND SAFETY,
CONSTRUCTION IMPROVEMENTS TO
STATE PARKING FACILITIES ARE
COMPLETED AND PREVENT A BACKLOG
OF SCHEDULE PREVENTATIVE
MAINTENANCE AND AVOID MORE
EXPENSIVE DEFERRED MAINTENANCE
PROJECTS. THE THIRD PROPOSAL IN
THE AGENDA IS A REQUEST FOR 1.2
MILLION FROM THE SERVICE
REVOLVING FUND FOR THREE YEARS
TO FUND INCREASED VEHICLE
MAINTENANCE AND REPAIR EXPENSES
FOR THE FLEET AT THE STATE FLEET
, AT THE VEHICLE LEASING
PROGRAM, MAINTENANCE AND REPAIR
COSTS HAVE INCREASED BY 20%
SINCE THE 2122 FISCAL YEAR, AND
WE DGS LEASES APPROXIMATELY 4600
VEHICLES TO OVER 77 DEPARTMENTS
STATEWIDE. THE INABILITY TO
MAINTAIN THESE CURRENT SERVICE
LEVELS COULD LEAD TO BREAKDOWN
OF VEHICLES POSING SAFETY RISKS.
THE FOURTH PROPOSAL BEFORE YOU
IS A REQUEST OF 1.8 MILLION IN
BUDGET YEAR AND $1.6 MILLION
ONGOING FROM VARIOUS DGS FUNDS,
AS WELL AS 14 POSITIONS TO
ENSURE INCREASING TECHNOLOGY
BUSINESS NEEDS ARE MET AND
IMPLEMENT THE NEXT PHASE OF THE
GOVERNOR'S CAL SECURE INITIATIVE
. THE FIFTH PROPOSAL BEFORE YOU
IS A REQUEST OF $4 MILLION FROM
THE SERVICE REVOLVING FUND TO
SUPPORT THE INCREASED COSTS AND
REQUIRED PAPER AND COMMODITIES
USED BY THE OFFICE OF STATE
PUBLISHING. OVER THE LAST THREE
YEARS, WE'VE SEEN A 40% INCREASE
IN THE COST OF RAW MATERIALS AND
PAPER COMMODITIES. THE INCREASE
DOES NOT APPEAR TO BE SHORT
LIVED, SO WE'RE ASKING FOR AN
ONGOING AUGMENTATION. THE FINAL
PROPOSAL, BUDGET CHANGE PROPOSAL
BEFORE YOU IS A REQUEST FOR AN
ONGOING $599,000 IN THE SERVICE
REVOLVING FUND AND 66,000 FROM
VARIOUS DGS FUNDS AND FOUR
PERMANENT POSITIONS TO SUPPORT
INCREASED SUSTAINABILITY
CONTRACTS AND ANALYTICAL
SERVICES TO BETTER, BETTER
RESPOND TO STATEWIDE
SUSTAINABILITY DIRECTIVES. THE
OFFICE OF SUSTAINABILITY HAS
SEEN A SIGNIFICANT INCREASE IN
THEIR WORKLOAD OVER THE LAST FEW
YEARS, MOST NOTABLY, SINCE 2019,
OUR CLEAN ENERGY UNIT HAS
EXPERIENCED A DOUBLING OF THE
PROJECT WORKLOAD AND IS
EXPERIENCED IN DELAYS IN
PROJECTS. ABSENT APPROVAL OF THE
REQUEST, WE FEEL THAT
SUSTAINABILITY PROJECTS EFFORTS
WILL BE FURTHER DELAYED. THE
LAST PROPOSAL THAT IS BEFORE YOU
FOR DGS IS A CHANGE. IT'S A
TRAILER BILL CHANGE IT IS TO
REMOVE A SUNSET CLAUSE FROM
EXISTING STATUTE THAT AUTHORIZES
THE USE OF TRADITIONAL DESIGN
BILL. CONTRACTING MEASURES FOR
PUBLIC WORKS PROJECTS. DGS HAS
BEEN AUTHORIZED AND UTILIZING
THIS DESIGN BUILD FOR ITS
LARGEST PROJECT SINCE THE 1990S,
AND HAS UTILIZED THIS DELIVERY
METHOD FOR APPROXIMATELY $5
BILLION IN PROJECTS SINCE ITS
INITIAL AUTHORIZATION. THESE
PROJECTS HAVE A FAR BETTER TRACK
RECORD WITH RESPECT TO SCHEDULE
AND BUDGET, AND DESIGN BID THAN
DESIGN, DESIGN, BID, BUILD AND
DGS HAS NEVER HAD A CLAIM OR
LABOR ISSUE WITH ANY OF ITS
DESIGN BUILD PROJECTS SINCE THE
MOST RECENT EXAMPLE OF THIS
PROCESS IS THE MAY LI OFFICE
COMPLEX, THE LARGEST PROJECT DGS
HAS EVER UNDERTAKEN, WHICH WAS
COMPLETED AHEAD OF SCHEDULE AND
SIGNIFICANTLY UNDER BUDGET. THE
PROPOSED TRAILER BILL WILL
ENSURE THAT THE DELIVERY METHOD
CAN CONTINUE TO BE UTILIZED FOR
NOT ONLY NEW PROJECTS, BUT
CURRENTLY EXISTING PROJECTS,
WITH THAT, THERE ARE SOME
SUBJECT MATTER EXPERTS IN IN
ATTENDANCE WITH ME TODAY. IF
THERE'S ANY SPECIFIC PRO PRO
QUESTIONS ON ANY OF THE SPECIFIC
PROPOSALS, THANK YOU VERY MUCH.
THANK YOU, QUESTIONS OR COMMENTS
FROM DOV AND LAL. NATALIE
GRISWALD, DEPARTMENT OF FINANCE.
NOTHING TO ADD AT THIS TIME.
THANK YOU. THANK YOU, MADAM
CHAIR. JARED SIPPEL WITH THE
LAO. WE JUST HAVE COMMENTS ON
ONE OF THE PROPOSALS, THE $4
MILLION AND ONGOING SERVICE
REVOLVING FUND FOR THE OFFICE OF
STATE PUBLISHING MATERIAL
PURCHASE AUTHORITY, WE'RE
RECOMMENDING APPROVING THIS FOR
TWO YEARS, AS OPPOSED TO ONGOING
AS PROPOSED BY THE GOVERNOR, WE
FIND THAT THE ONGOING NEED FOR
ADDITIONAL RESOURCES IS
UNCERTAIN, BECAUSE IT'S UNCLEAR
HOW LONG THE CURRENT PAPER
SUPPLY ISSUES WILL LAST,
RELATEDLY, WE THINK IT COULD
ALSO MAKE SENSE FOR THE
LEGISLATURE TO CONSIDER
SIMILARLY MODIFYING ONGOING
FUNDING THAT WAS PROVIDED IN
LAST YEAR'S BUDGET, FOR A NEW
WAREHOUSE LEASE TO STORE
ADDITIONAL PAPER AND RELATED
MATERIALS. AS THE OFFICE OF
STATE PUBLISHING WILL BE
REEVALUATING THE NEED FOR THIS
WAREHOUSE IN TWO YEARS. THUS,
THE TIMING WOULD ALIGN SUCH
THAT, THE DEPARTMENT COULD MORE
HOLISTICALLY REASSESS THE
ONGOING NEED FOR BOTH PURCHASING
AND STORING AN INCREASED SUPPLY
OF PAPER AND RELATED MATERIALS,
AND SUBMIT A REQUEST FOR ONGOING
RESOURCES AT THAT TIME. THANK
YOU. THANK YOU. ANY OTHER
COMMENTS? COMMENTS. I THINK THAT
COVERS IT ALL. OKAY. THANK YOU.
WE APPRECIATE YOU BEING HERE.
ANY COMMENTS FROM THE PUBLIC?
ALL RIGHT. ISSUE NUMBER EIGHT,
EMERGENCY SLEEPING CABINS, WHICH
, WOULD BE ALSO CALLED TINY
CABINS OR HOMES AS, EMERGENCY
SLEEPING CABIN CABINS, IF YOU
WOULD LIKE TO INTRODUCE YOURSELF
AND. ABSOLUTELY. JASON KENNEY,
CHIEF DEPUTY DIRECTOR FOR THE
DEPARTMENT OF GENERAL SERVICES.
AND THANK YOU FOR THE
OPPORTUNITY TO PRESENT ON THE
I'LL CALL THEM TINY HOMES,
INITIATIVE, THEY ARE THEY ARE
TECHNICALLY CALLED EMERGENCY
SLEEPING CABINS. THIS IS BY WAY
OF BACKGROUND BECAUSE THEY COME
IN A VARIETY OF TYPES AND
CONFIGURATIONS, AND THEY ARE
INTENDED TO BE USED ON AN
EMERGENCY BASIS, IMPORTANTLY, SO
THAT VARIOUS ASPECTS OF THE
CALIFORNIA BUILDING CODE CAN BE
WAIVED IN ORDER TO LEGALLY
INSTALL AND OCCUPY THESE CABINS,
A JURISDICTION HAS TO ISSUE A
SHELTER. CRISIS DECLARATION.
PURSUANT TO EXISTING STATUTE AND
RECOGNIZING THE SERIOUSNESS OF
THE OF THE MOMENT AND THE
UNHOUSED CRISIS IN CALIFORNIA,
THIS ADMINISTRATION CHOSE TO
PARTNER WITH FOUR LOCAL
JURISDICTIONS WHO WERE NOT ONLY
WILLING HAD THOSE SHELTER CRISIS
DECLARATIONS ISSUED, AND WERE
SERIOUS ABOUT HOUSING THE
UNHOUSED IN THEIR COMMUNITY.
DGS, GIVEN OUR EXPERTISE IN REAL
ESTATE, WAS CHARGED WITH HELPING
THESE JURISDICTIONS THROUGH THIS
ONE TIME PROGRAM, WE WERE
ALLOCATED $80 MILLION FROM THE
BEHAVIORAL HEALTH CONTINUUM
INFRASTRUCTURE PROGRAM, OR BE
CHIP. AND WE BEGAN PARTNERING
WITH THESE FOUR JURISDICTIONS,
SPECIFICALLY THE CITY OF LOS
ANGELES, THE CITY OF SAN JOSE,
SAN DIEGO COUNTY, AND THE CITY
AND COUNTY OF SACRAMENTO. IN
TERMS OF WHERE THE EFFORT SITS
AND THE STEPS TAKEN TO DATE,
IMMEDIATELY UPON THE
ANNOUNCEMENT OF THE INITIATIVE,
WE BEGAN, TO SOLICIT AND ISSUE A
SLATE OF CONTRACTS FOR THE
PURCHASE OF THE TINY HOMES
THEMSELVES. WE ISSUED SIX
DIFFERENT CONTRACT THESE
CONTRACTS, ALLOW FOR DOZENS OF
DIFFERENT TYPES OF TINY HOMES OR
SLEEPING CABINS OF A VARIETY OF
CONFIGURATIONS TO BE PURCHASED,
THEY ARE AVAILABLE NOT JUST FOR
THIS EFFORT, BUT THEY EXIST
BEYOND IT. SO ALL JURISDICTIONS
IN CALIFORNIA CAN USE THEM, IN
DOING THIS, WE'VE ENSURED THAT
THE CABIN SPECIFICATIONS MEET
EXISTING BUILDING CODE
REQUIREMENTS AND LAWS IN
CALIFORNIA. SOME DID NOT, AND
BECAUSE THEY'VE BEEN
COMPETITIVELY BID, THIS GREATLY
SHORTENS THE TIME TO IMPLEMENT
THAT. JURISDICTIONS FACE IN
THEIR DELIVERY OF SLEEPING CABIN
VILLAGES OR TINY HOME VILLAGES
STATEWIDE, IN ADDITION TO DOING
THAT, WE ALSO HAVE PARTNERED
WITH THOSE FOUR JURISDICTIONS. I
MENTIONED IN THEIR
IDENTIFICATION OF LOCALLY OWNED
PROPERTY TO INSTALL CABINS. THIS
WAS A SIGNIFICANT EFFORT, WITH
SITES HAVING TO BE VETTED,
ESPECIALLY FOR UTILITIES, TO
MINIMIZE COST IMPACTS, AND THIS
WAS CONCURRENT TO EFFORTS TO
IDENTIFY THE WHAT THAT WOULD BE
PLACED ON THE SITES. AS YOU
CAN'T MERELY INSTALL THE CABINS
BY THEMSELVES, THEY REQUIRE, BY
LAW, RESTROOMS, TREATMENT
SPACES, SHOWERS, ETC,
UNFORTUNATELY, SELECTING SITES
DID NECESSITATE MULTIPLE ROUNDS
OF SITE IDENTIFICATION. THÀNH.
BUT HAPPY TO REPORT THAT, WHILE
IN THE END MOST IF NOT ALL OF
THE SITES ARE NOT ACTUALLY GOING
TO END UP BEING OWNED BY LOCAL
PARTNERS, THEY'LL BE LEASED,
WHICH IS REQUIRED. NEGOTIATIONS
WITH PROPERTY OWNERS. THE LEASES
THEMSELVES, IN SOME CASES
FEDERAL APPROVALS. BUT THE GOOD
NEWS IS, IS THAT WHILE ONE
JURISDICTION IS FINALIZING THE
LAST FEW OF THEIR EXACT SITES,
ALL OTHER LOCATIONS HAVE BEEN
SELECTED, VETTED, AS SITES HAVE
BEEN FIRMED UP, THE PROGRAM
CONCEPTS HAVE BEEN HAVE BEEN
FURTHERED. OUR LOCAL PARTNERS
HAVE IDENTIFIED AND APPROVED
THEIR FUNDING SOURCES FOR THEIR
PORTION OF THE COSTS. AND AT
PRESENT, EACH JURISDICTION HAS
EITHER SECURED OR COMMITTED
THEIR COST SHARE, IN TERMS OF
IMPLEMENTATION, WE'VE AGREED TO
UNDERTAKE ONE SITE OURSELVES IN
PARTNERSHIP WITH SACRAMENTO. SO
175 BEDS OUT OF THEIR ALLOCATION
. THÀNH, WE ARE INSTALLING FOR
THEM. CONSTRUCTION IS UNDERWAY
WITH UNDERGROUND UTILITY WORK
BEGINNING THIS WEEK FOR ALL
OTHER JURISDICTIONS. WE ARE
PROVIDING FUNDING BASED ON A PRO
RATA SHARE OF THE $80 MILLION
AND THEIR CABIN ALLOCATION VIA
GRANT AGREEMENTS, ALL OF THE
JURISDICTIONS HAVE THEIR LOCAL
PUBLIC WORKS AND ENGINEERING
DEPARTMENTS BEGINNING DETAILED
SITE DESIGNS THAT ARE REQUIRED,
AND WE ARE, FINALIZING THOSE
GRANT AGREEMENTS AT PRESENT. BUT
WITH THAT, I'M HAPPY TO ANSWER
ANY QUESTIONS YOU MIGHT HAVE.
THANK YOU. JARED SIPPEL WITH THE
LÀ. NO COMMENTS TO ADD. THANK
YOU. OH, COMMENTS. NATALIE
GRISWOLD, DEPARTMENT OF FINANCE
NOTHING TO ADD AT THIS TIME. SO
MÐI MEMBER CHRIS WARD. WELL,
FIRST, I'M KIND OF EXCITED ABOUT
THIS, IT'S A LONG TIME IN
COMING, WHAT? I'M INTERESTED IS
WHEN YOU DEFINE, TINY HOMES OR
AS EMERGENCY BEDS. SO WHAT WOULD
THAT LOOK LIKE? IS THIS AN
INDIVIDUAL THAT MIGHT USE THIS
ON A TEMPORARY BASIS FOR A VERY
SHORT AMOUNT OF TIME, LIKE A
WEEK OR TWO? OR IS THIS MORE FOR
OF THE TINY HOME MODEL WHERE
WE'VE SEEN IN OTHER COMMUNITIES
WHERE THEY ACTUALLY STAY FOR
QUITE A LONG TIME, OR HAS THAT
BEEN DEFINED? YEAH, IT WILL
DEPEND A LITTLE BIT ON EACH OF
THE JURISDICTIONS. HOWEVER I
WILL SAY THAT WE'VE ALL AGREED
TO DO THIS WITH A HOUSING FIRST
PRINCIPLE, SO THE GOAL IS TO NOT
ONLY HELP FOLKS TRANSITION FROM
ENCAMPMENTS AROUND THE STREET,
BUT FROM THE TINY HOMES
THEMSELVES INTO MORE PERMANENT
HOUSING, BECAUSE OF THE FUNDING
SOURCE AS WELL, WE'VE ALL AGREED
THAT THERE WOULD BE OFFERS OF A
VARIETY OF BEHAVIORAL HEALTH
TREATMENT OPTIONS AS WELL, BOTH
ON SITE AND OFF SITE, AND SO THE
GOAL WOULD NOT BE, YOU KNOW,
LIKE, YOU KNOW, A 30 DAY STAY,
THE GOAL WOULD BE LONGER TIME
DURATION WHERE NECESSARY, BUT
SHORT AS NEEDED FOR FOLKS TO BE
TREATED AND TO BE ABLE TO GET
INTO A MORE PERMANENT HOUSING
SOLUTIONS. AND YOU MENTIONED $80
MILLION FOR HOW MANY IN TOTAL?
1200 BEDS. AND SO DOING THE MATH
, HOW MUCH IS THAT ON THE
AVERAGE, THE ALLOCATION WE HAVE
TRANSLATES INTO ABOUT 66.7
THOUSAND PER UNIT. THE AVERAGE
COST OF INSTALL. WITH EVERYTHING
THAT GOES ALONG WITH MAKING A
FUNCTIONAL VILLAGE, IS CLOSER TO
100 AND 120,000, DEPENDING ON
THE SITE AND THE MATCHING PART
COMES FROM THE COUNTY THAT IS
TAKING THESE UNITS IN. YES, YES,
YES. AND THE AMOUNT IS DEPENDENT
ON KIND OF THEIR THEIR DESIGN.
EACH JURISDICTION HAS DIFFERENT
OPERATING REQUIREMENTS, SO FOR
EXAMPLE, SAN JOSE, LIKES TO DO,
MORE INTEGRATED CLUSTERS WITH EN
SUITE RESTROOMS AS OPPOSED TO,
STANDALONE VILLAGE, CABINS WITH,
CONCENTRATIONS OF RESTROOM AND
HYGIENE UNITS. SO DIFFERENT
PROGRAM, DIFFERENT COSTS,
DIFFERENT UTILITY ISSUES. SO
THEY'RE ALL GOING TO LOOK A
LITTLE DIFFERENT. AND SAN DIEGO
IS ONE OF THE LOCATIONS FOR
THIS. DO YOU, HAVE ANY COMMENTS
ABOUT THOSE OR JUST, YOU KNOW,
AGAIN, THANK YOU FOR THE
INITIATIVE, TRYING TO THINK
ABOUT, YOU KNOW, ALL SOLUTIONS
THAT CAN BE ABLE TO HELP US
ADDRESS HOMELESSNESS IN OUR
COMMUNITIES, WHAT ARE YOU
SEEING? YOU KNOW, IT'S
FRUSTRATING AS A REPRESENTATIVE,
AN ANNOUNCEMENT, YOU KNOW,
THAT'S MORE THAN A YEAR AGO. AND
HERE WE ARE. WE'RE STILL
THINKING THROUGH THE MECHANICS
OF SITING, IT SOUNDS LIKE THE
FUNDING HAS WORKED OUT AS THEY
ARE ON BOTH SIDES. STATE AND
LOCAL. BUT THE SITING OF IT, THE
SITE PREPARATION, IT'S, IT'S, TO
ACT WITH EMERGENCY, IS NOT
SOMETHING THAT I CAN CONFIDENTLY
TAKE BACK TO MY COMMUNITY RIGHT
NOW. SO WHAT ARE YOU SEEING AS
SOME OF THE EXPERIENCES THAT
HAVE, SORT OF TEASED OUT SOME OF
THE BARRIERS AND OBSTACLES THAT
YOU'VE ENCOUNTERED, SO THAT AS
WE'RE THINKING ABOUT OTHER
SOLUTIONS THAT WE'RE TRYING TO,
FUND AND SCALE UP IN OUR
COMMUNITIES, THAT WE'RE NOT
RUNNING INTO THOSE SAME
OBSTACLES TIME AND TIME AGAIN.
YEAH. SO FOR I'LL ANSWER THAT IN
TWO TRANCHES. SO THE FIRST ONE
AND, THE I THINK THERE'S IT WAS
A KIND OF A PERFECT STORM OF, OF
FUNDING AND INTENT AND, BUT NOT
NECESSARILY MATCHED WITH SITES
THAT WERE AT THE READY, AND SO
THE AMOUNT OF TIME IT TOOK TO
IDENTIFY AND THEN VET SOME OF
THOSE SITES, I WON'T I WON'T PUT
ANY JURISDICTION ON BLAST. BUT,
YOU KNOW, ONE SITE CROSSED TWO
DIFFERENT SANITATION DISTRICTS.
THE WATER LINE WAS EITHER YOU'RE
HAVING TO DRILL THROUGH
SOMEBODY'S BACKYARD, OR YOU'RE
HAVING TO GO AND REPLACE A
DECENT PORTION OF A CITY STREET.
AND SO THOSE SORTS OF THINGS,
YOU KNOW, DO YOU DO THAT SITE?
DO YOU PICK A DIFFERENT SITE,
YOU KNOW, WHAT ARE THOSE COST
BENEFITS? SOME OF THOSE THINGS
TOOK TIME, ESPECIALLY WITH, YOU
KNOW, LIMITED FUND SOURCES, THE
OTHER PIECE IS, YES,
CONSTRUCTION IN GENERAL. THERE
ARE STILL SOME CRITICAL PIECES
OF INFRASTRUCTURE THAT HAVE
EGREGIOUS, DELIVERY TIME FRAMES.
WE HAVE PAID A SIGNIFICANT
PREMIUM TO ON THE SITE THAT
WE'RE WE'RE DEVELOPING TO
EXPEDITE THE ELECTRICAL ASPECT
OF THINGS, WE'VE SOURCED THE
TRANSFORMERS FROM THOSE SITES,
12 OR 13 DIFFERENT
SUBCONTRACTORS. THE QUOTES WERE
60 TO 80 WEEKS TO GET THOSE
PIECES IN, IT'S A IT'S NOT A
QUICK THING. UNFORTUNATELY.
DEPENDING ON WHERE THE UTILITIES
ARE AT AND WHAT NEEDS TO BE DONE
ON A SITE ITSELF, THESE VILLAGES
ARE ALSO, I THINK, MORE
COMPLICATED THAN MOST WOULD
IMAGINE. I THINK THE IMAGE OF
THEM ARE ESSENTIALLY, YOU KNOW,
THE TINY HOMES KIND OF, YOU
KNOW, SLAP DOWN ON A FOUNDATION,
BUT ONE OF THE SITES THAT THAT
WE'RE WORKING ON HAD SOME SOIL
ISSUES. SO THE ENTIRETY OF THE
SITE HAD TO BE SCRAPED, LIME
TREATED, THEY HAD THERE'S A
FEDERAL STORMWATER REQUIREMENT
THAT THE SITE WAS WAS WELL
SUITED FOR ON THE EAST SIDE AND
HAD NOTHING ON THE WEST SIDE. AS
BUILTS DIDN'T, INDICATE THAT
THERE WAS A GAS LINE THAT RAN
THROUGH THE SITE AT ONE POINT IN
TIME. AND SO THERE'S A LOT THAT
WE HAD TO OVERCOME, KIND OF ON A
JURISDICTION BY JURISDICTION
BASIS, TO BE HONEST. YEAH. IT'S
FRUSTRATING FOR YOU AS IT IS FOR
US, WHAT? AND THIS WAS LIMITED
TO STATE PARCELS. NO, NO, NO, IT
WAS, ABSOLUTELY, WE LOOKED AT
OUR LOCAL JURISDICTIONAL
PARTNERS TO, TO BRING SITES TO
THE TABLE. OKAY, SOME OF THEM
DID SUGGEST STATE SITES, THE IN
IN IN SAN DIEGO. ABSOLUTELY,
ROAD BEING BEING A CALTRANS
SITE, IN SOME CASES, OTHER
JURISDICTIONS ALSO PROPOSE
CALTRANS SITES. THEY FELL OUT
FOR SOME OF THE REASONS I
MENTIONED, AND THEN IN OTHER
PLACES, LIKE IN SACRAMENTO AND
SAN JOSE, THEY HAVE THEY FOUND
EITHER PRIVATELY OWNED OR QUASI
GOVERNMENTALLY OWNED SITES AND
NEGOTIATED LEASES. SO SAN JOSE,
FOR EXAMPLE, IT'S THE SANTA
CLARA VALLEY TRANSPORTATION
AGENCY. THEY'RE WORKING WITH.
GREAT. OKAY. WELL, THANK YOU FOR
THE WORK ON THIS. I THINK IT,
HOPEFULLY WE'LL HAVE HAVE WORKED
THROUGH SOME OF THE OBSTACLES
THAT THEY'VE ENCOUNTERED, LOOK
FORWARD TO SEEING THOSE, IN USE,
THIS YEAR. THANKS TO THANK YOU.
THANK YOU. AND THAT
CLARIFICATION REALLY HELPS ON
WHY THIS TOOK LONGER THAN I'M
SURE YOU HOPED FOR. SURE. ALL
RIGHT. ANY PUBLIC COMMENTS ON
THIS ITEM? ALL RIGHT. WE ARE
MOVING THROUGH THIS. WE ARE ON
ISSUE NUMBER NINE. UPDATE ON
STATE EMPLOYEE TELEWORK POLICIES
.
ALL RIGHT. WELCOME, EVERYBODY.
PLEASE INTRODUCE YOURSELF AS YOU
MAKE YOUR COMMENTS. THANK YOU.
WELCOME. THANK YOU. GOOD
AFTERNOON. GOOD AFTERNOON, MADAM
CHAIR, AND MEMBERS, CATHERINE
MINNICK, DEPUTY DIRECTOR OF
ADMINISTRATION FOR THE
DEPARTMENT OF GENERAL SERVICES,
AS A BACKGROUND TO THE TELEWORK
PROGRAM, IT WAS ESTABLISHED
PURSUANT TO GOVERNMENT CODE
SECTIONS 14200314203. EXISTING
LAW PRIOR TO THE PANDEMIC
REQUIRED EVERY STATE DEPARTMENT
TO INCORPORATE TELECOMMUTING AS
A WORK OPTION. THE DEPARTMENT OF
GENERAL SERVICES PUBLISHED THE
CURRENT STATEWIDE TELEWORK
POLICY AND THE STATE
ADMINISTRATIVE MANUAL, SECTION
0181, IN OCTOBER OF 2021. THIS
POLICY REPLACED THE 2010 DGS
MODEL AND ESTABLISHED A NEW
MODEL TELEWORK POLICY FOR
DEPARTMENTS TO USE FOR THEIR
REGULAR BUSINESS OPERATIONS,
IRRESPECTIVE OF THE EMERGENCY
TELEWORK THAT OCCURRED DURING
THE PANDEMIC. THE POLICY APPLIES
TO ALL STATE OF CALIFORNIA
AGENCIES, DEPARTMENTS, BOARDS,
COMMISSIONS AND OFFICES AS I
WILL REFER TO AS DEPARTMENTS,
THE STATEWIDE POLICY DOES NOT
PRESCRIBE A SPECIFIC MINIMUM
NUMBER OF IN-PERSON OR TELEWORK
DAYS, NOR WHAT POSITIONS ARE
ELIGIBLE DEPARTMENTS MADE. THIS
MAKES THIS MAKE EXCUSE ME, MAKE
THIS DETERMINATION, THE UPDATE
ON THE TELEWORK AND RETURN TO
OFFICE POLICIES INITIALLY, THE
GOAL OF THE EMERGENCY REMOTE
WORK POLICIES WAS TO KEEP
EMPLOYEES SAFE FROM THE COVID 19
VIRUS AND REDUCE ITS SPREAD.
ALTHOUGH AT THE TIME THE
ADJUSTMENT WAS NOT EASY,
DEPARTMENT'S TRANSITION TO A
MODEL THAT FOLLOWED EXISTING
STAY AT HOME PROTOCOLS AS COVID
19 RESTRICTIONS WERE LIFTED,
STATE DEPARTMENTS BEGAN
ASSESSING A BALANCE OF REMOTE
WORK AND IN-PERSON WORK, WHICH
LAID THE FOUNDATION FOR A FUTURE
WORKFORCE AND WORKPLACE. THE
STATEWIDE TELEWORK POLICY,
ISSUED IN OCTOBER OF 2021,
PROVIDED AN UPDATED FRAMEWORK
FOR DEPARTMENTS TO DEVELOP THEIR
OWN TELEWORK PROGRAMS FOLLOWING
ON THE PANDEMICS EMERGENCY,
TELEWORK. GIVEN THE STATE'S
WORKFORCE AND THE CITIZENS THEY
SERVE, ARE INCREDIBLY DIVERSE,
THE STATEWIDE POLICY PROVIDES
FLEXIBILITY FOR DEPARTMENTS TO
SUSTAIN A HYBRID WORK MODEL AND
MEET THE NEEDS OPERATIONS, AND
NECESSARY SERVICES TO THEIR
CLIENTS. WHILE NOURISHING A
HYBRID HUMAN CENTRIC WORKFORCE.
IN OCTOBER OF 2022, IT WAS
ANNOUNCED THAT THE COVID 19
STATE OF EMERGENCY PROCLAMATION
WOULD END ON FEBRUARY 28TH,
2023, WHICH PROVIDED AN
OPPORTUNITY FOR DEPARTMENTS TO
REASSESS THEIR TELEWORK PROGRAMS
. TAKING INTO CONSIDERATION THE
BENEFITS OF TELEWORK, THEY
LEARNED FROM THE PANDEMIC
OPERATIONS, THE IMPACT TO THEIR
FUTURE, EQUITABLE WORKPLACE
CULTURE AND THE NEED TO SUPPORT
EMPLOYEE DEVELOPMENT AND
ENGAGEMENT. THE EXISTING
STATEWIDE POLICY ON TELEWORK
REQUIRES DEPARTMENT MANAGEMENT
TO ANNUALLY REVIEW TELEWORK
AGREEMENTS TO ENSURE THE
AGREEMENT CONTINUES TO MEET THE
BUSINESS NEEDS, AND ENDEAVOR TO
PROVIDE 30 DAYS NOTICE TO THE
EMPLOYEE IN THE EVENT. IN THE
EVENT OF A REVISION OR
TERMINATION OF TELEWORK.
AGREEMENT OUT OF THE STATE
WORKFORCE. THE STATEWIDE
TELEWORK POLICY DOES NOT COVER
ALL STATE EMPLOYEES. FOR EXAMPLE
, THE CALIFORNIA STATE
UNIVERSITY AND UNIVERSITY OF
CALIFORNIA EMPLOYEES ARE
EXCLUDED BY STATUTE. AS OF
JANUARY 2020, FOUR. OF THOSE
THAT ARE SUBJECT TO THE POLICY,
APPROXIMATELY HALF ARE ELIGIBLE
TO TELEWORK BASED ON THEIR WORK
FUNCTIONS. AS OF JANUARY 2024,
BASED ON THE DATA FROM REPORTING
DEPARTMENT, 93% OF TELEWORK
ELIGIBLE EMPLOYEES TELEWORK IN
SOME CAPACITY, 33% TELEWORK FIVE
DAYS A WEEK. ON AVERAGE, 53% OF
TELEWORK ELIGIBLE EMPLOYEES COME
INTO THE OFFICE TWO OR MORE DAYS
ON AVERAGE EACH WEEK. THE
TELEWORK DASHBOARD WAS
ORIGINALLY PUBLISHED DATA IN
2022 AS A CASE STUDY. GIVEN THE
RAPID PACE THE STATE WORKFORCE
ENTERED A PRIMARILY REMOTE
ENVIRONMENT DUE TO THE STAY AT
HOME ORDERS AS APPROVED BY THE
LEGISLATURE. THE FUNDING FOR THE
DGS TELEWORK UNIT EXPIRES JUNE
30TH, 2024. THE DASHBOARD WAS
ALWAYS INTENDED TO END AND
FOLLOWED A NATURAL WINDING DOWN
AS DEPARTMENTS TRANSITIONED FROM
THE COVID 19 RESPONSE TO A
RESILIENT FUTURE. THE DASHBOARD
DISPLAYED DATA THROUGH CALENDAR
YEAR 2023 AND HAS SUNSET.
HOWEVER THE DATA REMAINS
AVAILABLE ON THE CALIFORNIA OPEN
GOV PORTAL, SUBJECT TO DGS
EXISTING RECORD RETENTION
POLICIES. I TURN IT OVER TO PAUL
STARKEY TO SPEAK ABOUT THE
STIPEND. THANK YOU. GOOD
AFTERNOON, MADAM CHAIR, AND
MEMBERS, THERE'S TWO PARTS TO
OUR PRESENTATION, SO I'M GOING
TO TAKE THE EASY PART, WHICH IS
LABOR RELATIONS. AND I'M GOING
TO DEFER TO THE DEPARTMENT OF
FINANCE TO GIVE AN OVERVIEW OF
THE GOVERNOR'S BUDGET AND THE
TELEWORK STIPEND. GOOD
AFTERNOON, MADAM CHAIR, AND
MEMBERS OF THE COMMITTEE, RYAN
WEINBERG WITH THE DEPARTMENT OF
FINANCE. THE GOVERNOR'S BUDGET
PROPOSES TO ELIMINATE THE
MONTHLY TELEWORK STIPEND OFFERED
TO STATE EMPLOYEES UNDER THEIR
EXISTING CONTRACTS WITHIN 17 OF
THE STATE'S 21 BARGAINING UNITS.
THE GOVERNOR'S BUDGET ALSO
INCLUDES 51.2 MILLION IN
EXPECTED SAVINGS IN 20 2425, OF
WHICH 25.6, OR HALF, IS GENERAL
FUND. IN EXPECTED SAVINGS
ASSOCIATED WITH ELIMINATING THE
TELEWORK STIPEND, THE STATE HAS
NOTICED THE RELEVANT UNIONS HAVE
ITS INTENT TO BARGAIN OVER THE
ELIMINATION OF THE TELEWORK
STIPEND, AND WE'RE HAPPY TO
ANSWER ANY QUESTIONS YOU MAY
HAVE ON THIS PROPOSAL. THANK
YOU. AND MR. WEINBERG STOLE MY
THUNDER. IN FACT, IN TERMS OF
LABOR RELATIONS, WHEN THE
GOVERNOR'S BUDGET CAME OUT, IT
WAS INSTRUCTED US TO NOTIFY THE
UNIONS AND TO DISCUSS THE
ELIMINATION, WHICH WE HAVE
NOTIFIED ALL THE IMPACTED UNIONS
, WOULD YOU LIKE TO SPEAK ABOUT
THAT, DEPARTMENT, NICK SCHROEDER
WITH THE LAO, THE AGENDA LAYS
OUT OUR COMMENTS AND DETAIL. SO
I WON'T GO INTO, MUCH DETAIL,
BUT I'LL GIVE A VERY HIGH LEVEL
SUMMARY OF OUR THOUGHTS IS
RELATED TO THE STIPEND
ELIMINATION, WE THINK THAT,
ELIMINATING THE TELEWORK STIPEND
EITHER THROUGH COLLECTIVE
BARGAINING OR IF IT HAS TO BE
IMPOSED BECAUSE IT CAN'T BE
ACHIEVED AT THE BARGAINING
TABLE, LIKELY WOULD RESULT IN
EROSION, BOTH TO LABOR RELATIONS
AND ALSO TO THE $26 MILLION
GENERAL FUND SAVINGS THAT,
THEY'RE ASSUMING. THANK YOU.
DEPARTMENT QUESTIONS. THANK YOU
FOR THIS PRESENTATION, CERTAINLY
AWARE OF SOME OF THE
CONVERSATION. IT'S, IT'S, GINNED
UP RECENTLY AND I GUESS WAS YOUR
POINT, TO THE LAO THAT, JUST THE
ACT OF NEEDING TO GO THROUGH,
NEGOTIATIONS OR WOULD EAT INTO
THAT SAVINGS SUBSTANTIALLY. JUST
JUST. SURE. SO ON THE ON THE
SAVINGS FRONT, WE THINK THAT,
YOU KNOW, WE'VE WE'VE BEEN
INVOLVED IN THE COLLECTIVE
BARGAINING PROCESS FOR ABOUT TWO
DECADES NOW. AND AS OBSERVERS OF
THAT PROCESS, WE'VE SEEN THAT
WHEN THERE ARE CONCESSIONS AT
THE BARGAINING TABLE SUCH AS
THIS, THERE'S USUALLY SOME SORT
OF TRADE OFF. AND THAT TRADE OFF
WOULD WOULD ERODE THE SAVINGS TO
SOME DEGREE. IT MIGHT NOT BE
COMPLETELY ERODED, BUT IT WOULD
BE ERODED TO WHAT IS ASSUMED. SO
I'M WONDERING, AS WE HAD, YOU
KNOW, NECESSARILY TRANSITIONED
TO TELEWORK. AND THEN WE HAVE
BEEN ADAPTING TO THE, THE
EXPERIENCE THAT THAT WORKERS
HAVE HAD RECENTLY ON THE
FLEXIBILITY THAT THEY GET TO
ENJOY. CERTAINLY MONITORING
PERFORMANCE AND MAKING SURE THAT
THE WORK IS GETTING DONE, BUT,
YOU KNOW, STARTING TO KIND OF
REFLECT ON WHAT THAT MEANS FOR
THE FUTURE OF THE WORKPLACE,
BOTH IN THE PUBLIC SECTOR. I
KNOW PRIVATE COMPANIES HAVE
BEEN, YOU KNOW, WRESTLING WITH
THIS AS WELL, WE CERTAINLY ARE.
WE ARE PROBABLY ENJOYING SOME
SAVINGS AS WELL, TOO, IN THE
FORM OF ENERGY CONSUMPTION
POTENTIAL, RENT OR THE ABILITY
TO CONSOLIDATE WORKSPACE THAT,
YOU KNOW, WE DON'T NEED AT THE
SAME LEVEL THROUGHOUT THE COURSE
OF A WEEKS, PERIOD, AND SO HAS
THAT ANALYSIS BEEN DONE, SAY,
OVER THE LAST YEAR IS WE'RE OUT
OF THE PANDEMIC. BUT NOW KIND OF
IN THIS NEW TIME FRAME WHERE
TELEWORK STILL EXISTS, WE ARE
POTENTIALLY REALIZING SOME
SAVINGS. HAVE YOU HAVE YOU
LOOKED TO SEE WHAT THE STATE IS
SAVING FROM, TODAY'S
EXPERIENCES? JASON DO YOU WANT
TO SPEAK? JASON KENNEY WILL
SPEAK REGARDING THIS SPACE.
THANK YOU. YEAH. SO, FOR
EXAMPLE, ON THE LEASING SIDE,
SINCE THE ONSET OF, WE'LL JUST
CALL IT MORE MASS TELEWORK,
WE'VE BEEN ABLE TO GIVE UP ABOUT
13% OF THE STATE'S OVERALL LEASE
FOOTPRINT, WHICH IS ABOUT
2,000,000FT², 1.9. THAT
TRANSLATES INTO A SAVINGS OF
ABOUT 58.5 MILLION ANNUALLY, ONE
OF THE NICE THINGS ABOUT A TWO
DAY A WEEK MINIMUM AS WELL IS
THAT THAT'S ACTUALLY KIND OF A
SWEET SPOT IN TERMS OF STILL
BEING ABLE TO SHRINK OR
CONSOLIDATE OR REDUCE
FOOTPRINTS, AND SO WE WOULDN'T
EXPECT, YOU KNOW, SAVINGS TO, TO
CHANGE OR GROW AWAY BECAUSE OF
THIS. THANK YOU. THANK YOU FOR
THAT, AND I'M SURE, YOU KNOW, AS
THIS, MIGHT MAY CONTINUE FOR,
FOR, MORE PERMANENT OR AT LEAST,
INTO THE NEAR FUTURE AS, AS, THE
ABILITY TO HAVE, YOU KNOW, I
AGREE, LIKE HAVING SOME
IN-OFFICE, COLLABORATION IS A
HEALTHY AND ESSENTIAL FOR, FOR,
FOR A GOOD, TEAM DYNAMIC WORK,
BUT THE ABILITY FOR BOTH THE
WORKER TO BENEFIT FROM NOT
HAVING A COMMUTE TO BE ABLE TO
RECAPTURE THAT LOST TIME, FOR
THEIR OWN QUALITY OF LIFE, YOU
KNOW, WE'RE SEEING SOME SIGNS
THAT THAT COULD INCREASE
PRODUCTIVITY AS WELL. AND
HAPPINESS, WITH WHAT, THEY ARE
ENJOYING AS A BENEFIT THROUGH
THEIR JOB AND, KNOWING THAT, WE
WERE INSTILLING THIS BENEFIT,
THE STIPEND TO BE ABLE TO HELP
FAMILIES, SUPPORT, ENHANCED
INFRASTRUCTURE, THE BROADBAND
THAT THEY WOULD NEED TO BE ABLE
TO DO THEIR JOB. YOU KNOW,
CERTAINLY THE RIGHT THING TO DO.
AND NOW THAT THAT COMES WITH A
PRICE TAG, WE'RE NOTICING A
SAVINGS OVER HERE, FOR A BENEFIT
OVER, OVER OVER THERE, I THINK,
YOU KNOW, WE'RE STILL WE'RE
STILL WINNING. ACTUALLY, BOTH
PARTIES ARE WINNING. THE WORKERS
AND THE STATE, SO I WOULD STUDY
THIS A LITTLE BIT MORE, MORE
CAREFULLY. AND I'M SURE YOU'RE
HAVING THOSE CONVERSATIONS.
WE'RE ABOUT TO EXPEND FUNDS
JUST, ENTERTAINING. EXCUSE ME,
THE, AND GOING INTO NEGOTIATIONS
OVER THIS ISSUE, BUT I WOULD I
WOULD BE VERY, THOUGHTFUL ABOUT,
APPRECIATING THE BENEFITS THAT
WE'VE ENJOYED OVER, SAY, THE
LAST YEAR AND WHETHER OR NOT
THIS IS A SENSIBLE, PROPOSAL,
GIVEN THE SAVINGS THAT WE'VE
ENJOYED TO. I WOULD JUST ADD,
IT'S WHEN YOU TALK ABOUT HOW
MUCH THE STATE IS PAYING FOR THE
STIPEND, BUT THEN HOW MUCH THE
STATE IS SAVING, FOR THE LEASING
OF OFFICE SPACE. IT'S PRETTY
CLOSE. I DO THINK, AGAIN, THE,
INDIVIDUALS THAT ARE ABLE TO
WORK FROM HOME AND ENJOY THAT,
THEY'RE DEFINITELY ARE BENEFITS
FOR FAMILY OUT EVERYTHING THAT
WAS JUST MENTIONED AND EVEN IN
CLIMATE AS FAR AS PEOPLE NOT
COMMUTING AND SO FORTH, THAT
BEING SAID, HOW DID THE
ADMINISTRATION IDENTIFY TWO DAYS
AS THE RETURN TO OFFICE
STANDARD? BECAUSE THIS WEEK, IF
I'M NOT WRONG, DIDN'T HE JUST
BRING DOWN AN EXECUTIVE ORDER
THAT SAID, OUR STATE EMPLOYEES
WILL RETURN TO WORK AT LEAST TWO
DAYS A WEEK? CATHERINE DGS, IN
ACCORDANCE WITH THE DIRECTION
PROVIDED ON APRIL 10TH, 2020,
FOR A MANDATED MINIMUM OF TWO
DAYS IN PERSON, BRINGS A
BALANCED APPROACH TO ENHANCE
COLLABORATION, COHESION,
COMMUNICATION AND BETTER
OPPORTUNITIES FOR MENTORSHIP,
PARTICULARLY FOR WORKERS NEWER
TO THE WORKFORCE, AND IMPROVE
SUPERVISION AND ACCOUNTABILITY.
BALANCED WITH BRINGING BENEFITS
AND INCREASED FLEXIBILITY THAT
TELEWORK PROVIDES THROUGH A
HYBRID APPROACH. DO YOU HAVE ANY
COMMENTS ON THAT? ANY OTHER
COMMENTS, WELL, WITH WITH, THIS
ITEM, PARTICULARLY AS WAS NOTED,
THIS IS, GOING TO BE MOVING
THROUGH THE COLLECTIVE
BARGAINING PROCESS AND, WE JUST
I WOULD JUST, ENCOURAGE, URGE,
THE ANALYZE OF THE BENEFITS OF
WORKING FROM HOME, EVEN THREE
DAYS A WEEK IN THIS MODEL THAT I
KNOW A LOT OF PEOPLE REALLY,
SUPPORT IT, AND ESPECIALLY THE
YOUNGER GENERATION SEEMS TO
REALLY, DO WELL WITH THIS MODEL.
AND WE'VE SEEN IT IN OUR OWN
OFFICES. AND SO FORTH, AND THAT
I THINK WE CAN GET TO A FAIR
PLACE. AND PARENTS, OF COURSE,
ALL OF THOSE, ALL OF THOSE,
THINGS REALLY DO ADD TO THAT.
LIKE YOU MENTIONED, THE
HAPPINESS INDEX AND MORE AND
MORE PEOPLE WANT TO BE ABLE TO
GET HOME BEFORE IT GETS DARK.
ALL YOU KNOW, WANT TO BE ABLE TO
TAKE A WALK BEFORE WORK IF THEY
CAN AND SO FORTH, WITH THAT, ANY
OTHER QUESTIONS OR REMARKS, ANY,
PUBLIC COMMENTS? YES. SORRY,
SORRY. ALL RIGHT. GOOD AFTERNOON
AGAIN. DANIEL SHERRELL, WITH
SEIU LOCAL 1000. I JUST WANTED
TO THANK, MADAM CHAIR
QUIRK-SILVA AND ASSEMBLY MEMBER
WARD FOR THE THOUGHTFUL
DISCUSSION, AGAIN, WE THINK THAT
THIS, PROPOSED ACTION THROUGH
THE BUDGET PROCESS IS MISGUIDED.
WE BARGAINED IN GOOD FAITH. OUR
MEMBERS BARGAINED IN GOOD FAITH
TO ESTABLISH THIS TELEWORK
STIPEND AS A SIDE LETTER IN
2022. THEN CONTINUED TO BARGAIN
IN GOOD FAITH TO MOVE THAT THAT
STIPEND INTO OUR MAIN MOU, WHICH
INCLUDES NINE OF THE IMPACTED
BARGAINING UNITS. AND WE KNOW
TELEWORK CONTINUES TO WORK. AND
WE REALLY APPRECIATE AGAIN THE
DISCUSSION. BUT, RESPECTFULLY
ASK THIS COMMITTEE AND THE
LEGISLATURE TO REJECT THIS
PROPOSAL THROUGH THE BUDGET
PROCESS. THANK YOU. THANK YOU,
WITH THAT, THANK YOU ALL FOR
BEING HERE FOR YOUR COMMENTS.
APPRECIATE IT. AND THAT WILL
MOVE US TO OUR LAST ISSUE.
CALIFORNIA ARTS COUNCIL. AND
THIS ISSUE, WE WILL REVIEW GRANT
FUNDING PROGRAMS FOR THE ARTS
COUNCIL AND REQUEST FOR A
TRAILER BILL RELATED TO THE
YOUTH POET LAUREATE POSITION.
YOU GOT TO HEAR ABOUT ALL OF THE
BUDGET ITEMS UNDER THIS
COMMITTEE HERE. SO INFORMATIVE.
YES. WELCOME PLEASE INTRODUCE
YOURSELF AS YOU MAKE YOUR
COMMENTS. THANK YOU SO MUCH,
MADAM CHAIR. MEMBERS YEAH, MY
NAME IS DANIELLE BRAZELL AND I
GET TO BE THE NEWLY APPOINTED
EXECUTIVE DIRECTOR OF THE
CALIFORNIA ARTS COUNCIL. I'D
LIKE TO THANK YOU FOR INVITING
OUR TEAM TO PRESENT ON THE
AGENCY'S FUNDING PROGRAM AND OUR
COMMITMENT TO ENSURING THAT OUR
RESOURCES ARE DISTRIBUTED
EQUITABLY AND EFFECTIVELY. I'M
JOINED BY MY COLLEAGUE AYANNA
TIBERI, DEPUTY DIRECTOR TO MY
RIGHT. AND TOGETHER WE LOOK
FORWARD TO UPLIFTING THE WORK OF
THE COUNCIL AND OUR SHARED
COMMITMENT TO ADVANCING THE
MISSION OF THE AGENCY. MY THANKS
AND APPRECIATION TO OUR
DEPARTMENT OF FINANCE
COLLEAGUES, CHARLES CHARLES
LASALLE AND JESSE ROMINE, THANK
YOU FOR BEING WITH US, YOUR
SUPPORT AND GUIDANCE CONTINUES
TO BE INVALUABLE. ESTABLISHED BY
THE STATE OF CALIFORNIA IN 1976,
THE CALIFORNIA ARTS COUNCIL IS A
STATE AGENCY WITH THE MISSION OF
STRENGTHENING ARTS, CULTURE AND
CREATIVITY FOR AS THE TOOLS FOR
CREATIVE EXPRESSION AND THE
TOOLS TO CULTIVATE A BETTER
CALIFORNIA FOR ALL. IN FACT, WE
ARE THE ONLY PUBLIC ARTS GRANT
PROVIDER, AS A CALIFORNIA STATE
AGENCY WITH FUNDING THAT'S
ACCESSIBLE TO ALL 58 COUNTIES
AND AS A STATE AGENCY, WE
SUPPORT LOCAL ARTS,
INFRASTRUCTURE AND PROGRAMS
STATEWIDE THROUGH GRANTS,
PROGRAMS AND SERVICES. AS WE
ACHIEVE OUR MISSION THROUGH THE
SUPPORT AND PARTNERSHIPS OF THE
GOVERNOR AND THE CALIFORNIA
LEGISLATURE, CALIFORNIA ARTISTS,
NONPROFITS, LOCAL ARTS AGENCIES,
THEY ARE OUR TRIPLE BOTTOM LINE
CATALYTIC PARTNERS, AND THEY
ENSURE THE CÁC IS ABLE TO SERVE
COMMUNITIES THROUGHOUT THE
STATE. AND I WANT YOU JUST TO
THINK A LITTLE BIT ABOUT ABOUT
THE CALIFORNIA ARTS COUNCIL IN
TERMS OF PROVIDING A WEB OF
SUPPORT AND IN SOME WAYS, WE CAN
GO VERY BROAD WITH THAT NETTING,
BECAUSE SOME CITIES AND
COMMUNITIES HAVE A LOT OF
CULTURAL INFRASTRUCTURE AND
OTHER COMMUNITIES DO NOT. AND SO
WE WORK IN A DYNAMIC, MULTITUDE
OF WAYS TO BE ABLE TO PROVIDE
THAT NETTING TO ENSURE THAT WE
REACH ALL OF CALIFORNIANS. AND I
WANT TO RECOGNIZE THE FISCAL
CHALLENGES FACING THE STATE'S
BUDGET THIS YEAR, THE CAC AND
ITS LEADERSHIP ARE INCREDIBLY
GRATEFUL TO GOVERNOR NEWSOM FOR
RECOGNIZING THE VALUE
PROPOSITION OF THE CALIFORNIA
ARTS COUNCIL BY PROVIDING LEVEL
FUNDING FOR FISCAL YEAR 2425.
AND AGAIN, FOR CONTEXT, THE
CALIFORNIA ARTS AND CULTURAL
SECTOR IS INCREDIBLY LARGE. IT'S
DIVERSE. IT IS BUSINESSES, ITS
WORKFORCE, AND IT'S A
SIGNIFICANT CONTRIBUTOR TO OUR
STATE'S ECONOMY AND OUR IDENTITY
. TÊ WE'RE HOME TO OVER 11,563
NONPROFIT ARTS AND CULTURAL
ORGANIZATIONS AND OUR CREATIVE
SECTOR ACCOUNTS FOR 18.67
BILLION IN ASSETS AND 15.4% OF
CALIFORNIANS TOTAL EMPLOYMENT.
AND I THINK YOU CAN THINK ABOUT
THE NONPROFIT. ARTS AND CULTURAL
SECTOR AS THE WORKFORCE
DEVELOPMENT PROGRAM FOR THE
CREATIVE ECONOMY. AND LIKE EVERY
ASPECT OF OUR SOCIETY, THE ARTS
SECTOR WAS DEEPLY IMPACTED BY
THE GLOBAL PANDEMIC. WE WERE THE
FIRST TO SHUT DOWN, AND WE WERE
THE LAST TO REOPEN, BUT WE NEVER
STOPPED WORKING. WE NEVER
STOPPED WORKING BECAUSE OUR ARTS
AND CULTURAL WORKERS AND
COMMUNITIES DEAL WITH THE
EMOTIONAL IMPACT AND THE
PHYSICAL IMPACT CAUSED BY THE
PANDEMIC, AND TO MITIGATE THAT
IMPACT, THE CALIFORNIA ARTS
COUNCIL DID RECEIVE AN INFUSION
OF RESOURCES FOR THE CALIFORNIA
CREATIVE CORE AND THE CULTURAL
DISTRICTS. THESE PROGRAMS
REPRESENT EXCITING AND DYNAMIC
NEW WAYS OF WORKING WITH LOCAL
PARTNERS AND ONE EXAMPLE THAT MY
COLLEAGUES AND I WERE JUST
TALKING ABOUT, BECAUSE WE'RE
GETTING SOME DATA FROM THIS THAT
I WANT TO JUST SHARE WITH YOU IN
ONE OF OUR CREATIVE CORE
PARTNERS IN KERN COUNTY, THEY
WERE AWARDED $4 MILLION, TO HIRE
ARTISTS TO DO WORK IN THE
COMMUNITY. AROUND THREE CRITICAL
ISSUES PUBLIC HEALTH,
ENVIRONMENT AND CIVIC
ENGAGEMENT. AND THEY,
DISTRIBUTED THOSE RESOURCES AND
THOSE OPPORTUNITIES, WHICH
CREATED OVER 652 JOBS IN OVER 14
OTHER CENTRAL VALLEY COMMUNITIES
AND COUNTIES. AND SO, I THINK
THE WAY IN WHICH WE'RE SEEING
OUR, POTENTIAL OF WORKING NOT
ONLY AS A DIRECT PUBLIC GRANT
MAKER, BUT WORKING WITH,
ADMINISTRATING ORGANIZATIONS TO
BE ABLE TO PROVIDE NEW RESOURCES
AND NEW WAYS AS THEM BEING
INTERMEDIARIES SO THEY CAN DRILL
DOWN INTO DEEPER, PROVIDE DEEPER
RESOURCES, AT THE COMMUNITY
LEVEL, I HAVE A LOT MORE I'D
LIKE TO SHARE WITH YOU, BUT I
THINK THAT I'D LIKE TO HOLD AND
JUST TAKE A MOMENT TO SAY THANK
YOU FOR YOUR INTEREST, TO REMIND
YOU AND EVERYBODY IN THIS ROOM
THAT THE CALIFORNIA ARTS COUNCIL
IS ABSOLUTELY ROOTED IN A FIERCE
COMMITMENT TO SERVING EVERY
COMMUNITY IN A WAY THAT MAKES
SENSE. WE ARE A CATALYTIC AGENCY
AND PARTNERSHIPS IN THE FIELD
WITH OTHER STATE AGENCIES ARE
ABSOLUTELY CRITICAL TO OUR WORK,
INCLUDING THE CALIFORNIA
DEPARTMENT OF CORRECTIONS AND
REHABILITATION AND STATE PARKS.
WE BELIEVE THERE'S ROOM TO GROW
AND WE LOOK FORWARD TO WORKING
WITH YOU AND THE GOVERNOR'S
OFFICE AND OUR PARTNERS TO DO
JUST THAT IN THE YEARS TO COME.
THANK YOU. THANK WELCOME. THANK
YOU SO MUCH. AYANNA BERRY,
DEPUTY DIRECTOR. DO YOU HAVE
COMMENTS AS WELL? NO OKAY, DO
YOU HAVE ANY COMMENTS? WELL, LET
ME ASK COMMENTS HERE, JARED
SEMPLE WITH THE LA. NO COMMENTS
AT THIS TIME. THANK YOU. CHARLES
LA SOL DEPARTMENT OF FINANCE. NO
ADDITIONAL COMMENTS AT THIS TIME
, I HAD A FEW QUESTIONS FOR,
YOUR GRANT FUNDING FOR 2024.
WHAT WOULD THAT BE UNDER THE
GOVERNOR'S BUDGET, THE GOVERNOR
PROPOSED LEVEL FUNDING FOR OUR
AGENCY, AND I WANT TO QUICKLY
MOVE TO MY. WHICH WOULD PUT US.
RIGHT. SO OUR AGENCY IS 26
MILLION. THE DIRECT FUNDING FROM
THE STATE IS ABOUT 23 MILLION.
AND, I KNOW ONE OF THE THINGS WE
TALKED ABOUT BEFORE WE HAD THIS
IN-PERSON MEETING WAS ONE OF MY,
KIND OF FOCUSES ON HOW DO WE
MAKE SURE OR DO YOU MAKE SURE I
SHOULD SAY THAT UNDERSERVED AND,
VULNERABLE COMMUNITIES THAT
DON'T HAVE GRANT WRITERS THAT
DON'T HAVE, MAYBE THE SUPPORT
SOME OF THE CITIES THAT HAVE
MORE OF AN ARTS INFRASTRUCTURE
ARE ABLE TO RECEIVE THESE GRANTS
. YES. AND DO YOU KEEP DATA ON,
THOSE GRANTS BY REGION, BY,
TYPES OF COMMUNITIES AND SO
FORTH? IT'S A FANTASTIC QUESTION
. AND WHAT WE DID IS WE TOOK A
LOOK OF OUR, OUR, OUR GRANTS
THAT WE CURRENTLY HAVE ARE 2023
GRANT CYCLE, OVER HALF OF OUR
GRANTEES, WHICH WE HAVE A LITTLE
OVER 800 GRANTEES, HAVE A TOTAL
REVENUE OF JUST $250,000. WHAT
THAT TELLS US IS THAT THAT'S AN
INDICATOR THAT WE ARE REACHING
SMALL ARTS ORGANIZATIONS WITH
DIRECT FUNDING. ANOTHER WAY IN
WHICH WE'RE REACHING
ORGANIZATIONS THAT ARE EVEN
OPERATING LESS THAN THAT IS BY
WORKING WITH PARTNER
ORGANIZATIONS WHO MAY NOT HAVE
THE ABILITY TO APPLY. THEY JUST
DON'T HAVE THE CAPACITY TO
ACTUALLY APPLY FOR STATE FUNDING
. AND SO THESE ARE TWO STRATEGIC
WAYS IN WHICH WE'RE DOING THAT.
ANOTHER WAY IS THAT WE REALLY GO
THROUGH A GREAT DEAL OF
COMMITMENT AND EFFORT TO ENSURE
THAT OUR APPLICATION PROCESSES
ARE ACCESSIBLE, BOTH IN TERMS OF
MULTI LANGUAGES AND IN TERMS OF
BEING ABLE TO ACCESS THE
APPLICATION, IN OTHER WAYS. SO
THOSE ARE TWO WAYS. AND THEN WE
HAVE A VAST NETWORK OF NONPROFIT
PARTNERS THROUGHOUT THE STATE
AND OUR STATE AND LOCAL PARTNERS
WHERE WE HAVE WE WORK WITH OVER
54 OF OUR 58 COUNTIES THAT ARE
SHARING INFORMATION ABOUT OUR
GRANT PROPOSALS AND OUR GRANT
APPLICATION DEADLINES. AND THEN
WE DO A TREMENDOUS AMOUNT OF
WEBINARS, TECHNICAL ASSISTANCE,
AND OFFICE HOURS TO ENSURE THAT
PEOPLE CAN HAVE ACCESS TO OUR
FUNDING. WOULD YOU PLEASE, IF I
CAN ADD, DEPUTY DIRECTOR FOR THE
CAC, I WANTED TO JUST ALSO ADD
THAT THE ONE ENTRANCE POINT TO
THE GRANT TO THE GRANTS ARE
THROUGH OUR GRANTS MANAGEMENT
SYSTEM. SO IT'S AN ONLINE GRANTS
MANAGEMENT GRANTS? ELECTRONIC
APPLICATION PORTAL. AND THAT
ALREADY, YOU KNOW, PROVIDES SOME
BARRIERS FOR SOME COMMUNITIES.
AS I HEARD YOU WERE TALKING
ABOUT CABLE, YOU KNOW, AND
HAVING ACCESSIBILITY THROUGH
THAT. THAT PORTAL. SO WHAT WE'VE
BEEN DOING IS LOOKING AT WHERE
WE'RE NOT SEEING APPLICATIONS.
WE'RE DOING SOME GEOSPATIAL
MAPPING. WE HAVE A NEW
RESEARCHER ON BOARD TO LOOK AT
THOSE WHERE WE'RE NOT SEEING ANY
APPLICATIONS THROUGHOUT THE
STATE OR IN THE STATE, AND, AND,
OR THOSE THAT APPLY. THEY
STARTED THE APPLICATION BUT
DIDN'T FINISH THE APPLICATION.
SO WE'RE USING THOSE DATA TO
HELP US DETERMINE WHERE IN
CALIFORNIA WE NEED TO DO MORE
OUTREACH, AND MAYBE EVEN GOING
OUT AND WORKING WITH OUR
PARTNERS AT THE LIBRARIES TO GET
INTO THE COMMUNITIES AND HELP
THEM UNDERSTAND HOW TO APPLY AND
BE SUCCESSFUL. IN ADDITION, IN
OUR ADJUDICATION PROCESS, WE ARE
LOOKING AT NOT EMPHASIZING THE
MATERIALS AND THE WAYS THAT THE
GRANTS ARE WRITTEN. BUT WHAT'S
THE CONTENT OF THE GRANT? SO
WE'RE EDUCATING THE PANELISTS TO
MAKE SURE THAT THEY DON'T HAVE
ANY IMPLICIT BIAS WHEN THEY'RE
LOOKING AT THE APPLICATIONS. AND
I THINK THAT'S ALSO HELPING. AND
THEN DO YOU ALSO KEEP, DATA ON I
MEAN, BECAUSE ARTS ENCOMPASSES
SO MUCH, IT COULD BE, DANCE OR
PHOTOGRAPHY OR THEATER OR ALL,
YOU KNOW, JUST ARTS, PAINTING
THROUGH DISCIPLINES. YES. YOU
KEEP TRACK OF, NOT ONLY HOW MANY
GRANTS ARE GOING INTO THOSE
DISCIPLINES, BUT LIKE YOU
MENTIONED, THE CORRECTIONS, HOW
MANY GRANTS ARE GOING INTO
CORRECTIONS? NONPROFITS SMALLER
THEATERS, LARGER THEATERS? YES,
WHAT ABOUT MULTIPLE GRANTS, TO
EITHER THE SAME ORGANIZATIONS
OVER CUMULATIVE YEARS. HOW DOES
YOU KEEP TRACK OF THAT ONE?
SURE. AGAIN, I THINK THERE ARE,
WE DON'T HAVE CURRENTLY
RESTRICTIONS THAT LIMIT
ORGANIZATIONS, IN APPLYING FOR
OR WE'RE STARTING WE ARE SEEING
MORE RESTRICTIONS THAT THE
COUNCIL WE DON'T MAKE THOSE
POLICIES, BUT OUR COUNCIL IS
STARTING TO LOOK AT, FLOORS AND
CEILINGS FOR SOME OF THE GRANT
PROGRAMS. SO THAT AN
ORGANIZATION CAN'T, WITH A LARGE
BUDGET, CAN'T, TAKE ON MORE
GRANT OR MULTIPLE GRANTS AND
THEN NOT HAVE ENOUGH FUNDS FOR
OTHERS TO GET GRANTED. SO WE ARE
LOOKING AT THE COUNCIL IS
LOOKING AT THOSE AND THEY HAVE
IMPLEMENTED SOME OF THOSE FLOORS
AND CEILINGS. AND I WOULD LIKE
TO ADD THE DATA THAT WE PROVIDED
THROUGH DOF. YOU'LL SEE THAT
SOME ORGANIZATIONS ARE GETTING
MORE RESOURCES, AND WHEN YOU SEE
THAT THEY ARE LIKELY
ADMINISTRATING ORGANIZATIONS WHO
ARE ACTUALLY PARTNERING WITH US
TO DRILL DOWN EVEN DEEPER. SO
ONE WAY IN WHICH YOU CAN
UNDERSTAND THAT IS BY LOOKING AT
THE, ARTIST FELLOWSHIPS, WHERE
WE PROVIDE DIRECT RESOURCES FOR
ESTABLISHED AND EMERGING ARTISTS
, AND THOSE OR THOSE
ADMINISTRATING ORGANIZATIONS ARE
DOING THE WORK OF THE CALIFORNIA
ARTS COUNCIL IN MAKING SURE THAT
THEY DO THE ADJUDICATION FOR
THOSE, DIRECT ACT RESOURCES TO
ARTISTS. AND THAT MODEL, IF I
CAN ADD THAT MODEL, ACTUALLY,
DEDUPLICATES THE WORK WITH THAT
WE HAVE TO DO AT THE AGENCY SO
WE CAN DO MORE OUTREACH TO THOSE
COMMUNITIES THAT ARE
UNDER-RESOURCED OR UNDERSERVED.
SO I THINK THAT MODEL SHOWS THAT
WE HAVE A COMMITMENT TO BEING
LEAN AND MEAN IN A SENSE, AND
REALLY TAKING THE STAFF WORK TO
TAKING IT OUT INTO THE COMMUNITY
TO HELP THOSE APPLICANTS OR
THOSE COMMUNITIES THAT AREN'T.
WE'RE NOT SEEING IN APPLICATIONS
. ALL RIGHT. AND I'M NOT
NECESSARILY OPPOSED TO AN ORG,
AN ORGANIZATION GETTING MORE
THAN ONE GRANT. I JUST, YOU
KNOW, WITH LIMITED FOLK GRANTS,
YOU WANT TO SEE AS MANY, ARTS
ORGANIZATIONS HAVE SOME
OPPORTUNITY. Kò, BUT THANK YOU.
THIS CLARIFIES FOR ME SOME OF
THE THINGS THAT YOU ARE DOING,
ANY LAST QUESTIONS? ANY LAST
QUESTIONS, WE APPRECIATE YOU
BEING HERE. WE KNOW YOU SPENT
YOUR WHOLE TIME FINDING OUT
ABOUT ALL KINDS OF DIFFERENT
THINGS WE'RE DOING IN THE STATE
HERE, ANYBODY FROM THE PUBLIC
LIKE TO SPEAK BEFORE WE DO THAT,
WE NEED TO TAKE ROLL.
ASSEMBLYMEMBER QUIRK-SILVA HERE.
ASSEMBLY MEMBER PATTERSON,
ASSEMBLY MEMBER. WARD HERE. ANY
COMMENTS FROM THE PUBLIC,
PLEASE? COME ON UP. THERE'S A
FRIEND OF OURS FROM THE ARTS
COUNCIL OF ORANGE COUNTY. GOOD
AFTERNOON, MADAM CHAIR. MEMBERS
OF THE COMMITTEE, I'M RICHARD
STEIN, PRESIDENT AND CEO OF ARTS
, ORANGE COUNTY. WE'RE THE
COUNTYWIDE NONPROFIT ARTS
COUNCIL AND OFFICIAL STATE LOCAL
PARTNER FOR THE COUNTY OF ORANGE
, DESIGNATED BY OUR BOARD OF
SUPERVISORS. AND AS YOU HEARD,
THE STATE LOCAL PARTNERS IS AN
IMPORTANT PROGRAM AT THE
CALIFORNIA ARTS COUNCIL. WE'RE
PROUD TO SERVE THE DISTRICT OF
AND BE REPRESENTED BY ASSEMBLY
MEMBER QUICKSILVER. QUICKSILVER
AND I'M HERE TO URGE YOUR
SUPPORT FOR FUNDING THE CAC AT
OR ABOVE ITS CURRENT LEVEL,
WHICH IS LESS THAN IT WAS FUNDED
AT 20 YEARS AGO. CALIFORNIA'S
INNOVATION ECONOMY DEPENDS ON
THE PIPELINE OF CREATIVITY THAT
THE ARTS IN OUR STATE PROVIDE. I
JUST WOULD ALSO LIKE TO SAY THAT
WE WERE AN ADMINISTERING
ORGANIZATION FOR THE INDIVIDUAL
ARTISTS PROGRAM FOR ORANGE, SAN
DIEGO, SAN BERNARDINO, RIVERSIDE
AND IMPERIAL COUNTIES THIS PAST
YEAR, THIS, REDUCED THE
ADMINISTRATIVE BURDEN ON
CALIFORNIA ARTS COUNCIL. IT
INCREASED THE NUMBER OF ARTISTS
RECEIVING THIS, THESE
FELLOWSHIPS IN OUR REGION
BECAUSE WE KNOW OUR REGION
INTIMATELY. AND WE WORKED WITH
OUR FELLOW COUNTY ARTS COUNCILS
IN THOSE OTHER COUNTIES. SO, LET
ME JUST BOTTOM LINE TELL YOU,
YOU'RE GETTING MORE BANG FOR THE
BUCK OUT OF THIS AGENCY THAN
PROBABLY ANY OTHER STATE AGENCY.
SO THANK YOU FOR YOUR SUPPORT,
AND I HOPE YOU KEEP SUPPORTING
IT. THANK YOU. HEY, FOLKS, MADAM
CHAIR, MEMBER JASON SCHMELTZER,
I HERE, ON BEHALF OF THE
CALIFORNIA ARTS ADVOCATES, WANT
TO SUPPORT EVERYTHING RICK JUST
SAID. OBVIOUSLY, BUT A FEW MORE
THINGS, CAA IS A LOBBYING
ORGANIZATION REPRESENTING
THOUSANDS OF NONPROFIT ARTS
ORGANIZATIONS IN CALIFORNIA AND
CLOSE TO 850,000 WORKERS. THE
CAC DOES AN AMAZING JOB WITH
VERY LIMITED RESOURCES. AS RICK
JUST POINTED OUT. I WANT TO
SPEAK TO THAT IN A FEW DIFFERENT
WAYS THAT WERE REFERENCED IN THE
ANALYSIS, IF I COULD. SO THERE'S
OBVIOUSLY A MASSIVE DEMAND FOR
FUNDS THROUGH THE CAC, ROUGHLY
54% OF THE FOLKS WHO SOUGHT
GRANTS LAST YEAR WERE NOT
AWARDED GRANTS BECAUSE OF
SCARCITY OF RESOURCES, NOT
BECAUSE OF WHAT THE ORGANIZATION
IS DOING, PUBLIC FUNDING IS A
CRITICAL ASPECT OF FUNDING FOR
THE ARTS, AND THAT'S BECAUSE,
EQUITABLE ACCESS ISN'T REALLY
POSSIBLE WITH ONLY PRIVATE
FUNDING. THE BULK OF THAT
PRIVATE FUNDING GOES TO URBAN
AFFLUENT AREAS. IT DOES NOT FLOW
TO BIPOC COMMUNITIES, AND IT
DOES NOT FLOW TO RURAL AREAS.
BUT THE CAC GRANTS ARE
SUBSTANTIALLY MORE EQUITABLY
DISTRIBUTED, IN THE LAST FUNDING
CYCLE, ROUGHLY 30% OF THE FUNDS
WENT TO BIPOC CENTERED
ORGANIZATIONS, WHERE ONLY 18% OF
THOSE, OF ALL ARTS ORGANIZATIONS
ARE BIPOC CENTERED, AND 11% OF
FUNDS WENT TO RURAL AREAS WHEN
ONLY 9% OF ALL THE ARTS
NONPROFITS ARE IN RURAL AREAS.
SO WE THINK THAT THERE ARE SORT
OF MEETING THE CHALLENGE THAT'S
IN FRONT OF THEM. AND WE SUPPORT
THE ORGANIZATIONS. THÀNH
WHOLEHEARTEDLY. THANK YOU VERY
MUCH. THANK YOU. GOOD AFTERNOON.
MY NAME IS BOB LAYMAN. I'M THE
VICE CHAIR OF THE SAN DIEGO
COUNTY ARTS AND CULTURE
COMMISSION AND THE EXECUTIVE
DIRECTOR OF THE SAN DIEGO MUSEUM
COUNCIL, WHICH REPRESENTS OVER
81 MUSEUMS IN SAN DIEGO COUNTY,
AT A MINIMUM, WE URGE YOU TO
KEEP THE FUNDING AS IT IS FOR
CALIFORNIA ARTS COUNCIL. BUT
JUST WANT TO SAY THAT, ONE
EXAMPLE IN SAN DIEGO WITH THE
MUSEUM COUNCIL IS, KIDS FREE SAN
DIEGO THAT WE DO THAT REACHES
TENS OF THOUSANDS OF FAMILIES
AND MAKES THE MUSEUMS
ACCESSIBLE, ESPECIALLY IN
UNDERSERVED NEIGHBORHOODS LIKE
SAN DIEGO'S PROMISE ZONE. 12% OF
THE PARTICIPANTS ARE FROM THAT
ZONE, WHICH ONLY REPRESENTS 5%
OF THE POPULATION. SO IT REALLY
HAS IMPACTFUL THE FUNDING THAT
WE GET FROM THE CALIFORNIA ARTS
COUNCIL DIRECTLY AFFECTS WHERE
WE'RE ABLE TO, GO AFTER THOSE
TYPES OF NEIGHBORHOODS AND THOSE
GROUPS, BECAUSE THE GRANTS
DIRECT US TO DO THAT. THEY AND
IT'S A IT'S A GOOD THING TO DO
AND IT AND IT FORCES US TO DO
THAT, WHICH IS THE RIGHT THING
TO DO, THANK YOU, THANK YOU, ANY
LAST COMMENTS? WELL, WE
APPRECIATE YOU SHOWCASING WHAT
YOU DO. AND WE KNOW THAT, SADLY,
TOO OFTEN THE ARTS ARE ONE OF
THE FIRST THINGS TO BE CUT. SO
WE'RE HAPPY TO SEE THAT THAT'S
NOT ON THE AGENDA. WE. OH,
SORRY. WE HAVE ONE MORE PERSON.
YES THANK YOU, MADAM CHAIR,
MARCUS DETWEILER WITH THE
CALIFORNIA SPECIAL DISTRICTS
ASSOCIATION HERE, SPEAKING WITH
REGARD TO ISSUE NUMBER ONE
RELATED TO CHARTER SCHOOLS AND
THE CALCULATION OF ERAF, I WOULD
LIKE TO ALIGN OUR COMMENTS WITH
PREVIOUS SPEAKERS, INCLUDING
THOSE FROM THE COUNTY OF SANTA
CLARA, THE URBAN COUNTIES OF
CALIFORNIA AND THE RURAL COUNTY
REPRESENTATIVES OF CALIFORNIA
AND SIMILARLY URGE THIS
COMMITTEE TO REJECT THE
ADMINISTRATION'S PROPOSAL AT THE
APPROPRIATE JUNCTURE. THANK YOU.
THANK YOU. HELLO. SARAH BRENNAN
WITH WHITMAN GROUP, REPRESENTING
NEXT GEN CALIFORNIA, ONE OF THE
MEMBER ORGANIZATIONS IN THE
CALIFORNIA RACIAL EQUITY
COALITION. WE RESPECTFULLY
REQUEST THE 2024 2025 BUDGET,
ALLOCATE 5 MILLION IN ONGOING
FUNDING TO PROVIDE NECESSARY
RESOURCES TO FULLY IMPLEMENT THE
FUNCTIONS OF THE RACIAL EQUITY
COMMISSION CREATED BY THE
GOVERNOR'S EXECUTIVE ORDER. LAST
YEAR'S BUDGET ALLOCATED $1.4
MILLION TO THE CALIFORNIA RACIAL
EQUITY COMMISSION OPERATIONS PER
YEAR FOR THREE YEARS. WE'RE
CONCERNED THAT THIS DOES NOT
WILL NOT BE SUFFICIENT IN GIVING
THE COMMISSION THE
INFRASTRUCTURE IT NEEDS TO
EFFECTIVELY ADVANCE ITS GOALS
THROUGHOUT THE STATE. THE
COALITION UNDERSTANDS THE STATE
OF CALIFORNIA'S BUDGET, THIS
YEAR'S BUDGET. HOWEVER, THE
COMMISSION MUST HAVE FINANCIAL
RESOURCES TO FILL ITS TO FULFILL
ITS DUTIES AND DEVELOP A RACIAL
EQUITY FRAMEWORK FOR THE STATE.
THANK YOU. THANK YOU. APPRECIATE
THOSE COMMENTS, COMMENTS. SO
FROM, TELEWORK TO ARTS TO
BROADBAND TO MIDDLE MILE, WE
HAVE SOME MAJOR ISSUES TO
GRAPPLE WITH IN THIS VERY SLIM
BUDGET, BUT WE ALWAYS APPRECIATE
YOUR TESTIMONIES AND THANK YOU
FOR BEING HERE. THANK YOU. THANK
YOU, MADAM CHAIR