February 19, 2003

Highlights of the: 2003-04 Analysis and Perspectives & Issues

State Fiscal Picture

The Budget Outlook

Economic and Revenue Outlook

The Governor's Tax Proposal

Realigning Some Programs Make Sense

Program Highlights

K-12 Education

Proposition 98—Education Credit Card Maxed Out

K-12 Categorical Program Reform

Alternative Spending Plan

State and Federal Accountability Programs

Child Care "Realignment" Merits Consideration

Higher Education

Fee Increases Planned for All Public Colleges and Universities

Enrollment Growth Funding Does Not Match State Needs

Expansion of Financial Aid Should Serve All Students

Health Services

State Should Restructure Developmental Center System

Missed Opportunities for Savings in California Children's Services

Disease Management Could Reduce Medi-Cal Costs

Determining Who Is Eligible for Medi-Cal: Options for Savings

State Should Assess Shift to Veterans Administration (VA) Benefits

Social Services

Grant Reductions and COLA Suspensions Save $1.6 Billion

CalWORKs Grants Overbudgeted by $350 Million

California Fails Federal Foster Care Review

State Should Consolidate Aging Programs


Elderly Inmates Two to Three Times More Expensive, Yet Less Risky

Work Credits Earn Inmates Early Release

State Should Shift OCJP Programs to Other Departments

State Could Close Three Youth Authority Institutions

Capital Outlay

Funding Higher Education Capital Outlay

California State University (CSU)—Plans at Brawley Site Unclear

Proposed "Death Row" Facility at San Quentin


General Fund Relief Means Traffic Congestion

Truck Weight Fee Numbers Do Not Add Up

Extensive Project Rescheduling Diminishes Value of STIP

Proposals to Save Motor Vehicle Account May Not Be Enough

Costs for CHP Staff Continue to Soar

Loose Connection Between New Telephone Surcharge and
Protective Services

Hard to Get "On Board" With Consolidation Plan for High-Speed Rail Authority


Governor's Fee Proposals Can Go Further

  1. Fire Protection—$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. (Analysis, page B-88.)
  2. Timber Harvest Plan (THP) Review—$22.1 million savings by having timber operators fully cover the costs incurred by state agencies in their review and enforcement of THPs. (Analysis, page B-60.)
  3. Water Rights—$7.2 million savings by increasing fees on applicants for new water rights and establishing an ongoing fee on all water rights holders, since they are direct beneficiaries of the State Water Resources Control Board's water rights program. (Analysis, page B-123.)
  4. Dam Safety—$5.4 million savings by increasing existing fees on dam owners regulated by the Department of Water Resources' dam safety program, since they are direct beneficiaries of the department's activities that ensure the safe operation of dams. (Analysis, page B-106.)
  5. Air Quality "Stationary Source" RegulationAdditional $4.4 million savings beyond the Governor's fee proposal by having fees replace a portion of the General Fund support remaining in the Air Resources Board's stationary source program for activities related to air quality permitting. (Analysis, page B-111.)

Large Amount of Bond Expenditures in Need of Legislative Oversight

Eliminate Funding for Unspecified State Park Acquisitions

Governor Reduces Pesticide Risk Assessment Effectiveness

Legislative Oversight Needed of Electricity Settlement Funds

Future of State's FERC Representation Depends on State's Energy Agency Organization

Environmental Protection Indicators—Good Idea, But Legislature Should Be a Player

General Government

Incurring Debt for Retirement Costs Is Ill-Advised

Risky Assumption of $1.5 Billion, but Existing Gaming Revenue Can Help Budget Shortfall

Effectiveness of Film Subsidies and Trade Offices in Doubt

Better Choices Than Deferring Mandates



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