LAO 2001-02 Budget Perspectives and Issues: Issue-By-Issue TOC
Analysis of the 2001-02 Budget Bill
Perspectives and Issues Outline
Overview
of the Governor's Budget
How
the Budget Allocates Uncommitted Resources
Total
Spending by Program Area
Main
Features of the Governor's Proposal
K-12
Education
Higher
Education
Energy
Set-Aside
One-Time
Spending
The
Budget's Economic and Revenue Outlook
The
LAO's Outlook for the Budget
Our
"Bottom Line"
Key
Assumptions
The
Outlook Beyond the Budget Year
Budget
Faces Large Challenges and Uncertainties
Legislative
Considerations
The
Economic Outlook
Recent
Developments
U.S.
Economy Has Slowed Abruptly
What
Happened?
California
Escaped a Slowdown in 2000
However,
2001 Will Be a Much Tougher Year
The
Budget's Economic Outlook in Brief
The
LAO's Economic Outlook
National
Forecast
California
Forecast
Power
Crisis Is Key "Wild Card" in Outlook
Several
Other Factors Pressuring State's Economy
Construction
Activity to Hold Up Reasonably Well
Longer-Term
Outlook Remains Positive
Comparisons
of Recent Economic Forecasts
California's
Demographic Outlook
State
Population Greater Than 35 Million
California's
Population Characteristics
Overall
Budgetary Implications
Total
State Revenues
Revenue
Performance Over Time
The
Budget's General Fund Revenue Outlook
Recent
and Proposed Tax Relief
The
LAO's General Fund Revenue Outlook
Key
Factors Affecting the LAO's Forecast
The
LAO's Forecast For Major Revenue Sources
Personal
Income Tax
The
PIT Share of Total Revenues Has Increased Substantially
Sales
and Use Tax
Sales
and Use Tax Rates
Taxable
Sales Soared In 1999 and 2000 . . .
.
. . But Will Slow Sharply In 2001 Before Rebounding
Bank
and Corporation Tax
Recent
Profit Growth Has Been Erratic
Earnings
To Dip In 2001
Outlook
for Other General Fund Revenue Sources
The
Budget Forecast for Special Funds Revenues
An Overview
of State Expenditures
Proposed
Total Spending in 2000-01 and 2001-02
General
Fund Spending
Special
Funds Spending
Spending
From Federal Funds and Bond Proceeds
Federal
Funds
Spending
of Bond Proceeds
State
Appropriations Limit
State
Spending—An Historical Overview
Spending
by Program Area
Total
State Spending
Relative
Growth in the Budget Year
Key
General Fund Spending Developments
Major
Expenditure Proposals In the 2001-02 Budget
Education
Proposal—K-12
Proposal—Higher
Education
Issues
for Legislative Consideration
Energy-Related
Proposals
Recent
Legislative Actions
Capital
Outlay
Proposal
Issues
for Legislative Consideration
Health
Services
Proposal
Issues
for Legislative Consideration
Criminal
Justice and Judiciary
Proposal
Issues
for Legislative Consideration
Transportation
Proposal
Issues
for Legislative Consideration
Resources
Proposal
Issues
for Legislative Consideration
Employee
Compensation
Proposal
Issues
for Legislative Consideration
Realignment
Revisited: An Evaluation of the 1991 Experiment In State-County Relations
Introduction
Background
Realignment
Principles
Program
Transfers
Cost-Sharing
Ratio Changes
Increased
County Shares
Reduced
County Share
Realignment
Revenues
Revenue
Sources
Jurisdictions
Affected
Allocation
of Revenues
Transfer
Provisions
"Poison
Pill" Provisions
Evaluating
Realignment
Mental
Health Programs
Pre-Realignment
Concerns
Results
of Mental Health Realignment
What
Mental Health Realignment Has Not Changed
Social
Services Programs
Major
Programs Affected
Changes
in Cost-Sharing Ratios Intended to Control Costs
Early
Statutory Changes Negated Realignment’s Cost Control Incentives
AFDC:
Welfare Reform Changes Overshadow Realignment
Health
Programs
Lack
of Data Makes Evaluation Difficult
Flexibility
Could Be Enhanced
Crosscutting
Realignment Issues
Fiscal
Incentives Could Be Improved
Revenue
Stream Has Been Stable, But Lacks a Reserve
Funding
Allocations Have Favored Social Services
Inequities
in Allocations Remain
Transfer
Provisions Provide Opportunity for Local Preferences
Concerns
Regarding Administration of Allocations
Recommendations
for Improving Realignment
Improve
Fiscal Incentive Structure Of Growth Allocations
Improve
Administration of Fund Allocations
Other
Recommendations
Considering
Realignment as a Model for Future Program Decisions
Conclusion
Academic
Preparation for Higher Education
Introduction
Defining
"Prepared" and "Unprepared" Students
Unpreparedness
Is Persistent and Pervasive
Unpreparedness
Rate Has Increased Significantly at CSU
Unpreparedness
Has Remained Relatively Constant at UC
Assessing
Student Preparedness
Assess
Preparation For College-Level Studies Earlier
Precollegiate
Education in California'sColleges and Universities
Community
Colleges Offer Noncredit and Credit Precollegiate Courses
The
CSU Offers Several Types of Precollegiate Services
The
UC Also Offers A Variety of Precollegiate Services
Improving
Accountability in Precollegiate Education
Segments
Should Assess and Report on The Preparedness of All Entering Students
Segments
Should Assess and Report on The Effectiveness of Their Precollegiate
Services
Funding
Precollegiate Courses
State
Should Offer Only One Precollegiate Funding Rate
Conclusion
"E-Government"
in California
What
Is "E-Government" and How Does it Work?
How
Does an E-Government Service Work?
What
Are the Potential Benefits of E-Government?
What
Is the State Doing With Respect to E-Government?
The
Administration's Approach
State's
Current E-Government Systems
How
Do California's E-Government Efforts Compare?
Concerns
With the Administration's Current Approach
What
Qualities Should the Legislature Look for In a Good E-Government
Proposal?
What
Are the Future Issues?
Conclusion
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