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Condition of Transportation Funds

February 20, 2002 - We recommend adoption of budget bill language (a) limiting the transfer from the State Highway Account (SHA) to the Traffic Congestion Relief Fund (TCRF) and (b) providing increased flexibility for transferring TCRF money to the General Fund. We believe the budget overestimates current-year and budget-year expenditures from the TCRF and that capital outlay expenditures in the SHA are overestimated.


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The Vehicle License Fee and The 2002-03 Budget

February 20, 2002 - We provide a history of the VLF tax reductions and an explanation of the distribution of the revenues. We also answer many common questions regarding the VLF—including information about the insufficient moneys provision in current law.


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Welfare-to-Work Participation in the CalWORKs Program

February 20, 2002 - Only 26 percent of single-parent cases in federal fiscal year 2000 were participating in CalWORKs in accordance with state law. We believe that increasing participation is an important long-term focus for the Legislature.


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Reorganizing California's Energy-Related Activities

February 20, 2002 - A multiplicity of agencies, and evidence of certain duplicative activities and other problems, suggests that it is time for the state to "stand back" and assess how its various energy-related entities are organized and interacting with one another.


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Using Borrowing to Help Address the Budget Problem

February 20, 2002 - We discuss the Governor's different types of budget balancing borrowing ($4.8 billion) and the factors that should be focused on by the Legislature in evaluating these proposals and other types of borrowing options.


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Funding the State Water Resources Control Board's Core Regulatory Program

February 20, 2002 - The budget proposes to create General Fund savings by shifting some General Fund support for the State Water Resources Control Board's core regulatory program to fees. We discuss the Governor's proposal, make recommendations for fee legislation, and provide an assessment of the board's funding requirements over the longer term.


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Addressing the Obligations Resulting From the Department of Parks and Recreation's Land Acquisitions

February 20, 2002 - Recently, the Department of Parks and Recreation has significantly increased its land acquisitions without addressing associated future development and operating costs. We provide options for funding development and operation, and make recommendations to reduce the likelihood that future acquisitions will result in unfunded obligations.


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Funding for Fire Protection

February 20, 2002 - We raise concerns with the Governor's proposal to (1) eliminate the General Fund support for emergency fire suppression, (2) reduce General Fund expenditures for "day-to-day" firefighting activities by increasing reimbursements, and (3) eliminate an existing legislative notification requirement. We also offer options for the Legislature to consider for funding fire protection services.


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Accountability and Low-Performing Schools

February 20, 2002 - We discuss the state's school accountability system, with emphasis on aspects of the system concerned with improving performance at so-called "low-performing" schools. We also discuss challenges posed for the state's accountability efforts by recent changes in federal Elementary and Secondary Education Act (ESEA) reauthorization.


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Instructional, Library, and Science Materials

February 20, 2002 - We recommend that the Legislature (1) redirect $625 million requested for the "Instructional Materials Realignment Initiative" to our recommended Academic Improvement Block Grant and (2) deny requested advance appropriations totaling $1.95 billion for fiscal years 2003-04 through 2006-07.


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Reforming Categorical Program Funding

February 20, 2002 - We recommend that the Legislature consolidate 51 K-12 programs into five categorical block grants, because greater local flexibility should lead to increased efficiency and effectiveness in meeting specified educational needs.


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Discretionary Funds

February 20, 2002 - We recommend that, to the extent funds are available, the Legislature provide budget-year funding to continue revenue limit equalization ($42 million) and a reduced Public Employees' Retirement System (PERS) offset to revenue limits ($36 million) because these programs (1) provide general purpose funds to local education agencies (LEAs) and (2) meet important legislative priorities.


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Teacher Support and Development

February 20, 2002 - We recommend the Legislature consolidate 18 existing programs and create a new formula-based block grant to increase local flexibility and effectiveness is supporting teacher development. The block grant would provide a total of $722 million of Proposition 98 funds that school districts could use for teacher support and professional development activities.


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Proposition 98 Mandates

February 20, 2002 - We discuss the implications of the proposal in the Governor's Budget to delay reimbursement of the $66.7 million budget-year appropriation for the School Bus Safety II mandate and suspend six other education mandates.


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Public Employees' Retirement System Deferral

February 20, 2002 - The Legislature's action regarding the budget's proposal to defer employer contributions to the Public Employees' Retirement System (PERS) has important implications for the Legislature's efforts to craft a K-14 education budget.