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February 21, 2007

Highlights of the 2007-08 Analysis

(Click here for a 20 minute video summary.)

Perspectives and Issues

Part I-State Fiscal Picture

Part II-Perspectives on the Economy and Demographics

Part III-Perspectives on State Revenues

Part IV-Perspectives on State Expenditures

Part V-Major Issues Facing the Legislature

Governor’s Tax Proposals Make Sense

K-12

Fiscal Outlook Has Implications for the Guarantee

Five-Year Forecast Shows Large Increases on the Horizon

Settlement Programs Could Be Improved

Higher Education

Recommend Smaller Student Fee Increases for Public Universities

Community Colleges Have Unused Enrollment Funding

Reported Faculty Salary “Gaps” Are Misleading

Standardize Approach for Funding Nursing Expansion

Health

Short-Term Savings in Proposition 36 Could Result in Long-Term Costs

Data Match Increases Veterans’ Access to Benefits and Reduces State Costs

Department of Public Health Reorganization Cost Neutrality Uncertain

Governor’s Health Care Reform Proposal Has Both Merit and Risks

Promoting Health Information Technology in California

Social Services

CalWORKs Sanction and Time Limit Proposals Not Necessary to Avoid Federal Penalties

Redirect SSI/SSP COLA Funds to CalWORKs

Enhancing In-Home Supportive Services (IHSS) Program Integrity

IHSS Wage Freeze

Child Support Pass-Through Options

Child Welfare Performance Has Improved, But State Still Faces Federal Penalties

Plan Upgrades Licensing Automation, but Delays Internet Access to Compliance of Information

Criminal Justice

Governor’s Prison Overcrowding Package More Balanced, But Too Big

The California Prison Receivership: An Update

Enhancing Public Safety by Increasing Parolee Employment

Juvenile Population Shift Warranted, But Construction Funding Not Justified

State Has Inadequately Maintained Its Investment in Prison Infrastructure

Courthouse Bond Proposal Deserves Close Scrutiny

An Update on the Implementation of Proposition 69

Transportation

Eliminate Arcane Spillover to Simplify Transportation Funding Structure

Governor’s Proposition 1B Proposals Circumvent Accountability

Slow Progress in Traffic Congestion Relief

Aging Highway System Requires More Maintenance and Rehabilitation

Time to Bite the Bullet for the Bullet Train

Real ID Regulations and Funding a Big Question

Resources

$2.3 Billion of Bond Expenditures: State Should Proceed Carefully

Implementation of AB 32 Heats Up, but Leaves Legislature in the Cold

Flood of New Flood Control Spending on the Horizon, But What Is Guiding It?

State Water Project Has Increasingly Important Role in Statewide Water Policy

Surface Water Supply Projects Need Funding Partners

Improvements Needed in Water Board’s Information Technology (IT) Activity

Science Still Out on State’s Regulation of Drinking Water Contaminants

San Joaquin River Restoration Lawsuit Settlement: Responsible Parties Should Pay First

Wildland Firefighting Expenditures Continue to Rise Significantly

Budget Fails to Address State Parks Maintenance Requirements

Telephone Ratepayer Relief on the Horizon

General Government

Guaranteeing Teacher Benefit Not Advisable

Cost-of-Living Increase for State Employees Appears Overbudgeted

Increasing Legislative Oversight of Employee Compensation

Delete Midyear Reduction Authority for More Honest Budgeting

Governor Proposes IT Changes

Capital Outlay

Effectively Implementing the November 2006 Bond Package

Governor Proposes Billions in Additional Borrowing

Local Government

Improving the Mandate Process

LAO Publications

To request publications call (916) 445-4656. 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.


Table of Contents for the 2007-08 Analysis of the Budget Bill
Table of Contents for the 2007-08 Perspectives and Issues
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