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Proposition 98 Budget-Year Priorities

February 19, 2003 - The Governor's budget offers a reasonable set of solutions for addressing the 2003-04 budget situation. We highlight a number of areas, however, that are worthy of careful consideration and deliberation.


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2002-03 Mid-Year Revisions: Proposition 98

February 19, 2003 - Responding to Governor's mid-year budget proposal, the Legislature provided Proposition 98 funding $289 million higher than proposed by the Governor.


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Office of Criminal Justice Planning Shift

February 19, 2003 - Given the Office of Criminal Justice Planning's (OCJP's) poor performance in the administration of its programs, and the significant overlap of its mission and programs with those of other departments, we recommend that OCJP programs be shifted to other departments.


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Work Credits

February 19, 2003 - Inmates who are being processed in the reception centers or who are unassigned to a full-time work or education program due to a shortage of slots earn less than the maximum level of work credits. We recommend enactment of legislation allowing these inmates to earn day-for-day work credit instead of the one-day-for-two-days participation they currently earn thereby saving the state $70 million while reducing the sentence of approximately 29,000 inmates by only 27 days.


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Early Release of Elderly Inmates

February 19, 2003 - Elderly inmates are two to three times as costly to incarcerate in state prison as younger inmates. Yet, research shows they are less likely to reoffend and have greater success on parole. For these reasons, we recommend the Legislature adopt legislation requiring that nonviolent elderly inmates be released early to parole.


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Court Security Realignment

February 19, 2003 - The Governor's court security realignment proposal does not constitute a realignment of responsibilities and control over court security, rather, it is a funding source swap. Accordingly, we recommend that the Legislature exclude this component from the Governor's realignment proposal.


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Developmental Center Restructure

February 19, 2003 - Developmental centers (DC) population has declined significantly over the last forty years. We examine the DC system's population trends and cost-effectiveness, and provide the Legislature with options and recommendations related to future DC operations.


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Disease Management

February 19, 2003 - Poor management of treatment for persons with chronic diseases, such as asthma, diabetes, and heart disease, is driving up the state's costs for Medi-Cal. The implementation of a disease management program could eventually reduce state expenditures by as much as hundreds of millions of dollars annually.


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Consolidate Aging Programs

February 19, 2003 - In order to improve the operation of programs serving California's senior citizens, we recommend eliminating the Department of Aging and shifting its functions to the Department of Social Services. Consolidation should improve service delivery and result in administrative savings of $3.4 million.


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California Children's Services

February 19, 2003 - The state's programs to provide services for some of its most medically fragile children is missing opportunities to control increasing costs and preserve General Fund resources that could help address the state's fiscal problems. Potential General Fund savings would be at least $43 million.


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Fire Protection Fees

February 19, 2003 - We recommend enactment of legislation to fund one-half of the proposed General Fund budget for fire protection on state responsibility areas by imposing fees on property owners who benefit from these services. This would result in a savings of about $170 million to the General Fund.


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Coordinating State Agency Representation Before the Federal Energy Regulatory Commission (FERC)

February 19, 2003 - The current organization of the state's energy agencies, including the structure of the state's representation before FERC, should be evaluated after key decisions have been made that will dictate what the future structure of the state's electricity market will itself look like. For the interim, we recommend ways the Legislature can ensure coordination among the multiple agencies appearing before FERC.


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Oversight of Electricity Contract Settlement Funds

February 19, 2003 - The state has received cash and assets from settlements resulting from the renegotiation of energy contracts entered into by the state during the "energy crisis." Future settlements are also likely. We recommend that the Legislature hold hearings to consider uses for the settlement funds.


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Timber Harvest Fees

February 19, 2003 - $170 million savings if property owners who benefit from state fire protection services pay $6 per acre in order to offset one-half of the state's proposed General Fund costs to provide fire protection services largely to private landowners.


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Resource Assessments: Improving Effectiveness and Creating Savings

February 19, 2003 - A number of departments engage in resource assessment activities intended to determine the condition of natural resources in the state. We review several such activities and identify opportunities for funding shifts and program reductions, some of which will create savings. We also discuss opportunities to increase the value of the information collected.