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February 2005

Highlights of the 2005-06 Analysis

K-12 Education

Proposition 98—Governor Proposes $2.9 Billion Increase

State Teachers' Retirement System (STRS) Proposal Lacks Benefits

Some School Districts Face Difficult Fiscal Conditions

Proposition 49—Recommend Repeal

Higher Education

Governor Proposes to Put Universities' Budgets on "Autopilot"

Enrollment Growth Funding Should Be Based on Anticipated Demand

Budget Should Account for New Fee Revenue

Health Services

Summary of Health Program Savings and Revenues

Part "D" Stands for "Deficit": How the Medicare Drug Benefit Affects Medi-Cal

Medi-Cal Redesign Sound in Principle But Needs Further Development

Hospital Financing Plan Could Begin to Right Ailing System

Towards a More Systematic Rate-Setting Model for Regional Centers

Proposition 63 Language Requires Clarification

Proposition 99: Too Many Programs, Too Few Dollars

Accessing Federal Funds for Prenatal Services

Antiobesity Initiative Should Itself Be Slimmed Down

Evaluating the Administration's California Rx Proposal

Social Services

Substantial Progress in Reducing Social Worker Caseloads

Reducing the Earned Income Disregard

Social Services Reductions Represent Substantial Ongoing Budget Solution

Child Care Reforms Merit Serious Consideration

Social Services Programs Overbudgeted by $180 Million

Other LAO Saving Recommendations

Corrections

CDC Disciplinary Confinement Practices Need Improvement

Court Requires Further Improvements in Inmate Health Care

State Could Save More on Foreign Prisoner Transfers

Ward Population Continues to Decline, More Closures Proposed

Proposition 69 (DNA) Request Overbudgeted

Up to $65 Million in General Fund Savings Identified

Assessing the Governor's Reorganization Proposals

Capital Outlay

Administration Did Not Submit Statewide Infrastructure Plan

Bond Funds Are Not Sufficient to Complete All Higher Education Projects

TRANSPORTATION

Misleading Caltrans' Budget Display Weakens Legislative Oversight

More Thorough Diagnosis of "Chief's Disease" Needed

DMV Needs to Avoid Delays in Evaluating Unsafe Drivers

Transportation Funding Instability Continues

Toll Bridge Seismic Retrofit: Hard Decisions Before the Legislature

RESOURCES

Should the State Issue Debt to Finance Flood Lawsuit Settlement?

Reorganization of Energy-Related Agencies Raises Issues

Recycling Goals Could Be Met More Effectively and Efficiently

Significant Amounts of Pesticide Fees Not Being Collected

Fire Protection Budget: Details Lacking, Oversight Difficult

Water Policy Issues Facing the State

General Government

State Needs Unified Strategic Approach to Homeland Security

Governor's Data Center Consolidation Proposal Would Foreclose Legislative Oversight

Doubling the Size of the Gambling Commission Not Justified

Federal Deadline for Voter Database Approaching

Addressing Public Pension Benefits and Cost Concerns

Lowering the State’s Costs for Prescription Drugs

Acknowledgments

The Legislative Analyst's Office (LAO) is a nonpartisan office which provides fiscal and policy information and advice to the Legislature.

LAO Publications

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This report and others, as well as an E-mail subscription service, are available on the LAO's Internet site at www.lao.ca.gov. The LAO is located at 925 L Street, Suite 1000, Sacramento, CA 95814.


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