GOOD MORNING.
GOOD MORNING EVERYONE WELCOME TO
SENATE BUDGET SUB COMMITTEE
NUMBER.
FOUR WE WANT TO STAB GOOD
MORNING SENATOR.
WE WANT ESTABLISH A QUORUM
PLEASE CALL THE ROLL SENATOR
AWESOME YES ENERGY NIELSEN.
SENATOR UMBERG [inaudible]
OKAY.
WE'RE GONNA TAKE UP ITEM NUMBER.
ONE ON THE VOTE ONLY CALENDAR
WHICH IS ON THE CONTINUED
IMPLEMENTATION AND
ADMINISTRATION OF CAL.
ABLE.
OF MY DO.
ANY MEMBERS WISH TO TAKE THIS
OFF THE VOTE ONLY CALENDAR.
OKAY GREAT HEARING NONE.
DOES THAT LA -- HAVE ANY
COMMENTS [inaudible]
NO.
DOES FINANCE SEVENTY COMMON
[inaudible]
OKAY.
IS THERE ANY PUBLIC COMMENT.
OKAY PLEASE CALL THE ROLL
SENATOR DRAWS OUT YES SENATOR
HANSON [inaudible]
SENATOR UMBERG.
OKAY THANK YOU.
OKAY NEXT ARE ARE.
QUESTION ITEMS THE FIRST
APARTMENT UP IS THE DEPARTMENT
OF ALCOHOL BEVERAGE CONTROL.
AND THAT'S ITEM NUMBER TWO WHICH
IS BUSINESS MODERNIZATION AND
RESPONSIBLE BEVERAGE SERVICE.
THE MORNING MORNING.
OKAY MR APPLE SMITH -- SOME
MEMBERS OF THE OBJECT ABOUT THIS
ON THE DIRECTOR OF THE
DEPARTMENT OF OKAY ALL BEVERAGE
CONTROL AND WITH ME IS MY CHIEF
MINISTRATION FINANCE OPERATIONS
AND MANY OTHER THINGS RANDY
NAMES -- I WANTED TO GIVE ARE
JUST A BRIEF INTRODUCTION OF HOW
WE GOT HERE FOR THESE TWO
PROPOSALS.
AND THEN I WILL DISCUSS THE
SPECIFICS OF THOSE PROPOSALS
BATTLE.
YES.
OKAY SO WE WERE OTHER
DEPARTMENTS FORMED IN NINETEEN
FIFTY FIVE BY CONSTITUTIONAL
AMENDMENT CHARGED WITH THE
REGULATION OF THE MANUFACTURE
DISTRIBUTION AND SALE OF ALCOHOL.
CURRENTLY WE HAVE NINETY TWO
THOUSAND LICENSEES IN THE STATE
TO DO ONE OF THOSE THREE THINGS
IN ESSENCE.
AND THEN WE HAVE ABOUT -- FOUR
HUNDRED AND FIFTY NINE EMPLOYEES
TWENTY FOUR OFFICES AROUND THE
STATE. 45% OF OUR EMPLOYEES ARE
ALL WARM PEACEFUL.
AND THE RESTAURANT GOING
LICENSING WORKING IN THE
NECESSARY WORK.
WE ARE COMMITTED TO PUBLIC
SAFETY -- WE ARE COMMITTED TO
PREVENTION AND WE'RE COMMITTED
TO ECONOMIC DEVELOPMENT WITH OUR
ALLIES THESE IN THE STATE WHO.
CURRENTLY ARE HAVE A LOT OF
BILLION DOLLAR INDUSTRY AND ALL
A LOT OF PEOPLE WHO WORK. FOR A
LIVING.
WE WORK CLOSELY WITH LOCAL
GOVERNMENTS WITH PREVENTION
GROUPS AND OTHER INDUSTRY
STAKEHOLDERS.
ARE WE HAVE GOOD RELATIONSHIPS
WITH THEM ALL.
OF OUR THE REASONABLE PROPOSALS
FOR YOU TODAY IS WE DO NOT HAVE.
THE STRUCTURAL INFRASTRUCTURE TO
ESSENTIALLY GIVE THEM THE
SERVICES THEY DESERVE.
AND JUST AS A COMMONSENSE
MEASURE OF THAT WE HAVE PRETTY
MUCH THE SAME NUMBER OF
EMPLOYEES WE HAD [inaudible]
NINETEEN FIFTY FIVE AS WE OUR
LIVE CHAT.
THANK YOU VERY MUCH.
SO ON THE ENFORCEMENT SIDE WE
JUST DON'T HAVE THE SAME
PRESENCE. FOR COVERAGE THAT WE
WANT TO ADD ON THE LICENSING
SIDE ARE ARE TIMELINESS SLIPPING.
WE DON'T PROVIDE OUR
STAKEHOLDERS WITH A SIX CUSTOMER
SERVICE THAT THEY DESERVE -- OUR
OUR STATE OUR LICENSEES WITH --
PALE HAIR ARE THESE THE SUPPORT
OUR BUDGET.
HAVE TOLD US FOR YEARS THAT THEY
WOULD SUPPORT HIGHER FEES IF WE
COULD GIVE THEM THE SERVICE
THAT WE TALK ABOUT.
I HAVE TALKED ABOUT OVER THE
YEARS I'M IN OVER THE CAP COURSE
THE LAST YEAR WE WORKED WITH THE
DEPARTMENT OF FINANCE WAS
SENSUALLY DEVISE A PROPOSAL. TO
SEE WHAT IS THE APARTMENT DOING
THAT DOESN'T NEED TO DO PERCENT
WHICH CHARGE.
WHAT IS IT NOT DOING ENOUGH OF
WHAT IS REALLY THE RIGHT SIDE?
AND THOSE ARE THE PROPOSAL WE
HAVE FOR YOU TODAY.
WE WERE LANCE WAS OUT
[inaudible]
THEY ARE.
PROPOSALS ARE REALLY INTEGRATED
SOLUTIONS -- THEY COME IN SORT
OF THREE AREAS AN I. T. -- IN
ENFORCEMENT IN A LICENSING BUT
REALLY.
ARE PROPOSALS REALLY WORK
TOGETHER.
BECAUSE WE'RE GONNA BE ABLE TO
CREATE A FISHING SEASON
LICENSING FOR THE CHANGES WERE
PROPOSING AND OR SPENT.
MISSION SEASON ENFORCEMENT WITH
THE CHANGES WERE IN A PROPOSAL
LICENSING.
I'M SO LET ME JUST KIND OF GO
OVER SOME SORT OF GLARING
WEAKNESSES IN THE DEPARTMENT OF
THESE PROPOSALS ARE DESIGNED --
TO ONE IS THAT WE HAVE
ABSOLUTELY NO ONLINE PRESENCE --
LICENSEES MEANING THAT WE CAN'T
PROCESS LICENSE APPLICATIONS
ELECTRONICALLY.
WE CANNOT ACCEPT PAYMENTS OF ANY
KIND ELECTRONICALLY.
OUR FOR THROUGH CREDIT CARDS SO
WE PROCESS ABOUT A HUNDRED AND
FIFTY THOUSAND CHECKS EVERY YEAR.
PHYSICAL PAPER CHECKS AND THAT'S
THE ONLY WAY WE CAN ACCEPT
PAYMENTS.
WE HAVE NO INTERNAL AUTOMATION
WHICH MEANS THAT WE JUST HAVE A
WHOLE BUNCH OF INEFFICIENCIES.
WHEN WE PROSECUTE A CASE -- ON
THE ADMINISTRATIVE LEVEL WHICH
IS WHICH IS.
WHICH IS A ESSENTIALLY
ADMINISTRATIVE HEARINGS AGAINST
LICENSEES.
WE HAVE A PAPER FILE THAT HAS TO
BE TRANSFERRED FROM ONE OFFICE
TO ANOTHER AROUND THE STATE --
WHEN WHEN ONE OF OUR LICENSEES
OF ARE DECISIONS INSTEAD OF
ELECTRONIC FILE THAT WE CAN SEND
OF THE DEALS BOARD WE HAVE TO
COPY EVERYTHING INTERFACE FILES
AND?
PART OF THE RECORD -- WE DON'T
HAVE THE ABILITY FOR AGENTS IN
THE FIELD TO LOOK UP A LICENSEE
AND WHAT ITS PRIVILEGES ARE WHAT
ITS RESTRICTIONS ARE -- THEY
ESSENTIALLY HAVE TO GO BACK TO
THE OFFICE AND LOOK IT UP BATES.
SO JUST MANY THINGS THAT WE
EXPECT IN A MODERN
ADMINISTRATIVE AGENCY LAW
ENFORCEMENT AGENCY WE'RE JUST
NOT ABLE [inaudible]
TO I'M.
IN TERMS OF OUR LICENSING WE WE
HAVE NO LICENSING DIVISION -- WE
STARTED BIFURCATING THE
DEPARTMENT SO THAT WE SEPARATED
THE FUNCTIONS OF KEYS OFFICERS
IN LICENSING PROFESSIONALS ABOUT
TWENTY YEARS AGO.
BUT WE REALLY NEVER GOT TO THE
POINT REBUILT THE STRUCTURE SO
WE DON'T HAVE ANY SYSTEMATIC
APPROACH FOR TRAINING OF OUR
PEOPLE IN THE SUBSTANTIVE AREAS
IN WHICH THEY WORK -- FOR FOR
PRODUCING POLICIES AND
GUIDELINES TO HELP THEM IN THEIR
WORK.
AND REALLY NOTHING TO ENSURE A
STATE LIKE CONSISTENCY OTHER
THAN THE SHEER TALENT AND GOOD
WILL OF OUR EMPLOYEES.
WHICH IS PRETTY FABULOUS BUT
IT'S REALLY NOT THE WAY TO BUILD
AN ORGANIZATION AND MAINTAIN IT.
ON THE ENFORCEMENT SIDE -- WE WE
IT'S JUST A SHEER SHEER NUMBERS
WE HAVE AGAIN THE SAME THE
PRETTY MUCH THE SAME NUMBER OF
ENFORCEMENT PEOPLE THAT WE HAD.
IN NINETEEN FIFTY FIVE BUT NOW
WE HAVE NINETY TWO THOUSAND
LICENSEES AS OPPOSED.
FORTY THOUSAND LOT MORE PEOPLE
ON THE STATE.
LOT MORE COMPLEXITY TO WHAT THEY
DO.
AS A RESULT THEY'RE NOT AS QUICK
IN INVESTIGATING LINKS.
THEY'RE NOT AS A THEY'RE NOT AS
SPOUSAL WITH BEING ABLE TO GO
OUT AND DO AND PREVENTED OF WORK
IN TERMS OF IN THE LICENSEES OF
OURS WERE NOT RUNNING BUSINESSES
IN THE WAY THEY SHOULD AND
TEACHING THEM HOW THEY CAN
ACTUALLY CORRECT.
THEM IS SOMETHING WE DO WE JUST
DON'T DO ENOUGH OF IT.
WE DON'T DO ENOUGH MINOR DECOY
ACTIONS WHICH ARE REALLY A
PRIMARY FOCUS TO ENSURE THEIR
LICENSEES ARE NOT TELLING -- ON
THE ON ANOTHER ISSUES WE ARE
ALSO -- GIVEN THE RESPONSIBILITY
FOR THE RESPONSIBLE BEVERAGE
SERVICE PROGRAM WHICH IS PART OF
THE PROPOSAL ARE YOU TODAY.
I'M AND WE REALLY DO NOT HAVE
THE INFRASTRUCTURE ON I. T.
BASIS TO BE ABLE.
TO DO THE THINGS ARE REQUIRED
UNDER THAT STATUTE -- IT'S ALSO
AN OPPORTUNITY FOR US THOUGH AS
OF SYSTEMS WERE PLANNING TO
BUILD.
WILL REALLY BE ONES THAT WE CAN
USE HAVE INTERFACES WITH THE
PUBLIC AND WITH OUR LICENSEES IN
A WAY THAT WE'RE NOT ABLE TO TO
NOW.
SO IF THAT IS TO CHALLENGE THE
MOMENT BUT IT'S ALSO A FAIRLY AN
OPPORTUNITY FOR A I'M PART OF
THE PROPOSAL.
IS IS THE IS THE DEAL WITH OUR
STRUCTURAL DEFICIT -- WE ARE
RUNNING WE HAD ABOUT WE HAD A
SURPLUS IN OUR BUDGET OF ABOUT
THIRTY TWO MILLION DOLLARS FIVE
YEARS AGO.
EVEN SLOWLY.
BENDING THAT DOWN AND TORE NOW
TO THE POINT WHERE JUST CHANGE
OUR SERVICES THEY ARE TODAY.
WE NEED ABOUT A 15% INCREASE.
IN WORKING WITH FINANCE ON THE
AT THE INCREASE -- WE DECIDED TO
MOVE TOWARDS A MODEL WERE
ACTUALLY CHARGING PEOPLE. FOR
THE COST OF WHAT IT TAKES TO
PROCESS AN APPLICATION WITH
RIGHT NOW WE DO NOT.
DO NOT ESSENTIALLY DO.
AND ON THE RENEWAL SIDE WHICH IS
ESSENTIALLY IS IS BONDS THAT PAY
FOR OUR FIRST ACTIVITIES.
WE ARE TRYING TO A LINE LIKE
PRIVILEGES OF LICENSEES WITH
EACH OTHER AND RIGHT NOW THEY'RE
THEY'RE QUITE DESPERATE.
SO BEYOND THAT 15% ARE MUCH OF
THE PROPOSAL'S BE SEATED BAY --
AND ESSENTIALLY -- IF IF IF OUR
MODERNIZATION PROJECT GOES
FORWARD AS WE LANDED PASSED
CLOSING IT TO YOU.
IT'S CAN LICENSEES ARE GOING TO
PAY ABOUT 10% MORE THAN THEY
OTHERWISE WOULD SO JUST AS A FEW
EXAMPLES.
IF YOU'RE A LARGE BEER
MANUFACTURING YOU'RE BUYING FOR
A LICENSE -- ARE PROPOSAL'S
MODERNIZATION WOULD HAVE A NINE
HUNDRED AND FIVE DOLLAR
APPLICATION FEE.
IF WE JUST DO NOTHING OTHER THAN
FIX OUR STRUCTURAL DEFICIT.
HE IS -- EIGHT HUNDRED AND
FIFTEEN DOLLARS. FOR A LARGE
GROCERY STORE THAT SELLS -- FULL
RANGE OF ALCOHOL PRODUCTS --
THEY WOULD PAY SIX HUNDRED
EIGHTY DOLLARS BETTER FOR ABLE
TO MODERNIZE THEY WOULD PAY AN
ADDITIONAL SEVENTY FIVE DOLLARS
OR SEVEN HUNDRED AND FIFTY FIVE
DOLLARS.
AND THIS IS A FINAL EXAMPLE --
THE RENEWAL OF BEEF OR AM OF
BEER AND WINE RESTAURANT.
WOULD BE FOUR HUNDRED AND THIRTY
DOLLARS AND OUR PROPOSALS IT
WOULD BE THREE HUNDRED EIGHTY
FIVE DOLLARS WE'RE JUST GONNA
FIX.
SO IT'S REALLY AGAIN 10% MORE TO
ACTUALLY MODERNIZE THE
DEPARTMENT AND THE WAY THAT OUR
LICENSEES OF ALL THOSE THIRD
WILLING.
TO I'M HAPPY ANSWER ANY
QUESTIONS OR I CAN.
GO THROUGH THE ISSUE ITEMS AT
THIS POINT.
AND THEN WE'LL GO.
TO SPECIFIC ISSUES.
HI KRISTIN WITH LEGISLATIVE
ANALYST'S OFFICE I CAN PROVIDE
SOME SPECIFIC COMMENTS WE GET
THE SPECIFIC PROPOSALS IF YOU'D
PREFER -- OR IF YOU WANT SOME
GENERAL COMMENTS AND BY THE WE
HAVE GENERAL COMMENTS AND THEN A
I THINK CLEARLY THE DEPARTMENT
HAS HAD SOME CHALLENGES IN THE
LAST FEW YEARS SO AS WAS
MENTIONED THESE PROPOSALS ARE
AIMED AT A THING THOSE -- ISSUES
THERE ARE PRETTY EXPENSIVE
ESPECIALLY THE THIS WELL THE
FIRST ONE WHICH YOU'LL HEAR
ABOUT IS AN I. T. PROPOSAL I'M
WHICH INCLUDES AM ADDING SOME
THIS SERVICE IS THE SECOND ONE
REALLY IS THIS.
COMBINATION OF ADDRESSING THIS
THIS DEFICIT THAT THE DEPARTMENT
HAS HAD FOR QUITE A NUMBER OF
YEARS I'M AND I THINK REGARDLESS
OF WHAT OTHER ACTIONS ARE TAKEN
SOMETHING HAS TO BE DONE TO
ADDRESS THAT DEFICIT BECAUSE
THEY'RE ACTUALLY.
PROJECTED TO HAVE A NEGATIVE
FUND ABOUT THIS YEAR SO --
PROBABLY SOME STEPS ARE NEEDED --
TO ADDRESS THAT ISSUE REGARDLESS
AND THEN SECONDARILY AS THEY
MENTIONED THEY PAIR THAT WITH
SOME -- SOME OTHER UP PRETTY --
BROUGHT BROAD OUT WIDE RANGING
CHANGES -- THROUGH A LOT OF
THEIR DIFFERENT SERVICE AREAS
AND FUNCTIONS -- TO TRY TO SORT
OF SHORE UP SOME OF THE AREAS
THAT THEY'VE HAD SOME CHALLENGES
OVER THE YEARS I'M SO HAPPY TO
PROVIDE SOME SPECIFIC COMMENTS
WHEN WE GET.
AT THAT POINT.
HI CLINT CALENDAR PARMA FINANCE
THAT YEAH JUST THE HIGHER LEVEL
COMMENTS THAT WE HAVE BEEN
WORKING HARD PROBABLY OF AN
EIGHTEEN MONTH PERIOD WITH THE
DEPARTMENT.
TO ADDRESS THE UNDERLYING
FUNDING SHORTFALL AND SORT OF
MODERNIZE THE DEPARTMENT AND
THERE'S A LOT OF DIFFERENT WAYS.
TO KILL THIS POTATO BUT WE KIND
OF THAT LANDED ON OUR YOU KNOW
WHAT WE THOUGHT.
WAS ARE WE ARE BEST ABLE TO DO
WITH THE DATA AVAILABLE AND SORT
OF BRING UP THE APPROPRIATE
LEVEL OF SERVICES [inaudible]
OKAY YES.
MADAM CHAIR I MEANT TO THE GREAT
LAKES YESTERDAY WITH THE
DIRECTOR AND WELL I GUESS I'D
HAVE TO SAY.
IMPRESSED AND IN THE SOMEWHAT
SURPRISED TO SEE AN AGENCY THAT
IS.
RUN SUCH A TIGHT SHIP FOR SO
LONG.
THE THE THIS IS THE YEAH.
MORE -- RESPONSIBLE IF YOU WOULD
GOVERNMENTAL AGENCY IS.
VERY RARE.
BUT THAT SAID IT BECAME PRETTY
CLEAR TO ME THAT THEY DO NEED
SOME HELP IN A PATHWAY.
TO STRENGTHEN THEMSELVES AND
THEN SOLIDIFY SO THAT'S MY
THIRTY THOUSAND FOOT VIEW AND
I'M VERY SYMPATHETIC TO
ASSISTING AND I'M GLAD THAT
THEY'VE BEEN WORKING WELL WITH
THE LA -- AND WITH FINANCE.
[inaudible]
THANK YOU.
THE NUMBER IN THE GENERAL.
OKAY ALRIGHT WELL WE SO ISSUE TO
BUSINESS MODERNIZATION
RESPONSIBLE BEVERAGE SERVICE YES.
THE PART IN SEEKS TO MODERNIZE
EXTERNAL INFORMATION TECHNOLOGY
SERVICES TO BETTER SERVE TO
BETTER SERVE THE PUBLIC AND ITS
INDUSTRY STAKEHOLDERS WE
INITIALLY HAD TO SET DISTINCT
PROPOSALS ONE FOR THEM FOR YOU
SERVICES AND ANOTHER FOR THE
RESPONSIBLE BEVERAGE SERVICE --
THIS PROPOSAL COMBINES THOSE AND
THE REASON WE DID THAT IS
BECAUSE THERE'S THERE'S
SIGNIFICANT FUNCTION FUNCTIONAL
AND ARCHITECTURAL OVERLAP IN THE
WAY THE IT SYSTEMS WOULD WORK --
WE THERE'S RESULT IN COST
SAVINGS AND THEN ALSO THERE'S
THERE'S LESS RISK IN PROCEEDING
IN THAT WAY IN OUR VIEW.
COM WE ARE SEEKING FIVE POINT.
AND TWO MILLION NINE HUNDRED AND
TO NINETY NINE HUNDRED AND
TWENTY TWO THOUSAND DOLLARS IN
NINETEEN NINETY TEAM NINETY
EXCUSE ME. TWENTY NINETEEN
TWENTY TWO FUND.
THE FIRST YEAR OF THE PROJECT --
WILL REQUEST THE REST OF THE
FUNNY NEXT YEAR ONCE THE PROJECT
PROCUREMENTS ARE FINALIZED AND
WE'RE BETTER ABLE -- WITH
GREATER CERTAINTY -- PROJECT THE
OUT YOUR COSTS.
THERE'S ALSO A A TRAILER BILL
LANGUAGE THE CLARIFIES THE TO
AUTHORITY TO CHARGE FEES.
IN RELATION TO THE EXAMINATION
THAT'S PART OF THE RESPONSIBLE
BEVERAGE SERVICE PROGRAM.
CAN I JUST ASK YOU THIS ON I'M
SORRY SHOULD WAIT FOR YOU.
TO I'M THAT THAT'S IT I'M DONE
OKAY THANK YOU ON THE TWO POINT
NINE MILLION.
IS THAT FOR THE ACTUAL -- NEW
TECHNOLOGY.
THAT WILL BE.
NEEDED.
NOT JUST THE POSITIONS.
CORRECT RIGHT THE FIVE POINT
FIVE TO BREAK THAT DOWN JUST A
FIVE POINT FIVE POSITIONS THE
FOR THE FIRST YEAR -- AND THEN
IT'S IT'S FOR THE COSTS OF
ESSENTIALLY THE THE THE THE
MENTORS WHO BUILD IT AND FOR THE
SOFTWARE SYSTEMS THAT WALL ON
THAT WOULD BE PART OF IT.
OKAY OKAY.
THEN CAN YOU BREAK DOWN THE
RESPONSIBLE BEVERAGE SERVER.
THERE'S THERE'S THE TRAINING
PART AND THEN THERE'S THE
CERTIFICATION.
PART COULD YOU DESCRIBE THAT
SURE LOST SHORES SO SO WHAT ARE
THE FEES WE CURRENTLY HAVE FOUR
STAFF MEMBERS WHO WHEN THE LAW
WAS PASSED.
WE WERE CAUGHT IN THE SAID HE
RECEIVED THIS LAST YEAR'S BUDGET --
AND THEY ARE ESSENTIALLY
DEVELOPING ALL THE REGULATIONS --
AND THE AND THE AND THE
ESSENTIALLY THE STAFF SUPPORT
THIS CAN BE NEEDED TO DEAL WITH.
THE SUBSTANTIVE SIDE OF IT.
THIS MONEY IS NOW FOR
ESSENTIALLY BUILDING THE IT
INFRASTRUCTURE THAT WE NEED TO
ACTUALLY RUN THE PROGRAM.
I'M SO ONE OF THE THINGS
INDUSTRY TOLD US THEY WANTED
MORE THAN ANYTHING ELSE WAS THIS
FOR THIS TO BE AUTOMATED.
SO THAT THEY CAN KEEP TRACK OF
THE PEOPLE WHO ARE SERVERS AND
AUTHORIZED THE SERVERS.
BECAUSE THE PENALTIES ASSOCIATED
WITH NOT COMPLYING WITH THE LAW
ARE ON THE BUSINESSES THEMSELVES
NOT ON THE INDIVIDUAL SERVERS.
SO TO BUILD OUT WE NEEDED TO
REALLY BUILD AND AND AN
INTERFACE THAT WOULD ALLOW --
INTERACTION BETWEEN BUSINESS
OWNERS BETWEEN THE SERVERS ARE
ACTUALLY BEING CERTIFIED -- THAT
THE DEPARTMENT WOULD MAINTAIN --
WE ALSO DETERMINED THAT -- THAT
WE ARE NOT GOING TO BE A TRAINER
OURSELVES EVEN THOUGH THE STATUE
AUTHORIZES THAT.
BECAUSE WE DIDN'T THINK IT WAS
COST EFFECTIVE WE BELIEVE THAT
THE THAT THE PRIVATE SECTOR AND
ALSO A LOT OF ENTITIES TO
PROVIDE THIS TRAINING FOR FREE.
EITHER THROUGH COUNTIES OR
CITIES SOMETIMES EMPLOYERS
THEMSELVES THERE'S MANY INDUSTRY
GROUPS THAT THEY WOULD BE AT
POSITION TO ACTUALLY BUILD THE
BE THE TRAINERS AS OPPOSED TO US
BUILDING AT A JUNIOR COLLEGE FOR
MORE OR LESS OF THE ABC.
SO SO WE WE JUST WE WE ARE NOT
GONNA BE A TRAINER AND LESS WE
DISCOVER THAT IT'S NOT AS COST
EFFECTIVE AS IT APPEARS FOR THE
SERVERS UP TO TAKE IT.
AND ALSO IF -- THERE'S SOME SOME
UNDERSERVED COMMUNITIES IN TERMS
OF LANGUAGE BARRIERS OR OR FOR
ACCESS IF THEY'RE UNABLE TO
ACTUALLY GET THE TRAINING
THERE'S PROBLEMS WITH THAT.
THEN WE MIGHT BECOME TRAINERS TO
ACTUALLY GET THOSE COMMUNITIES.
I'M WE WE ALSO DETERMINE THE
WORKING WITH OUR STAKEHOLDERS
THAT WOULD BE MORE COST
EFFECTIVE AND GENERALLY TO THEIR
LIKING THAT WE ACTUALLY CONDUCT
THE EXAM OURSELVES.
AND THIS IS BECAUSE FOR THEM TO
ACTUALLY BE ABLE TO RUN.
THE SYSTEMS -- AND HAVE A OF OF
OF OF PROCTORED ALTHOUGH IT'S
VIRTUALLY PROCTORED EXAM VERY
EXPENSIVE VERY DIFFICULT IN A
LOT OF JUST DIDN'T WANT TO DO IT.
AND THOSE WOULD BE PRIMARILY THE
INDUSTRY GROUPS AND THE THE
GOVERNMENT.
GOVERNMENTS TO SOMEONE I
ACTUALLY PROVIDE THE TRAIN.
SO WE ARE GOING TO WE ARE GOING
TO BE THE EXAM.
PROVIDER OURSELVES ALTHOUGH MUCH
OF THIS WILL BE DONE THROUGH
OUTSIDE VENDORS LITTLE ONE THAT.
WE WILL BE MONITORING THOSE
EXAMS JUST TO ENSURE COMPLIANCE
WITH THE STATUTES AND THE
REQUIREMENTS.
OF THE ROLES OF THE ESTABLISH
OKAY SO A LITTLE BIT.
OKAY SO -- IF I AM A SERVER.
ALCOHOL SERVER RIGHT -- I NOW
HAVE TO HAVE.
DESCRIBE THE DIFFERENCE BETWEEN
WHERE I'M AT NOW.
WHAT PART OF ME NOW AND WHAT
WILL BE REQUIRED OF ME?
AND HOW DO I DO IT SO I WORKING.
AND THERE'S THESE NEW RULES
TRAINING OR CERTIFICATION HOW
NEW ARE THERE ARE THERE SOME.
IS THERE SOME CERTIFICATION
CURRENTLY REQUIRED WHO DOES IT I
GUESS I WANNA KNOW.
WHERE WE SAY TO ALL THESE
HUNDREDS OF THOUSANDS OF
BARTENDERS AND?
ALCOHOL SERVERS ALL OVER THE
PLACE.
IN THIS INDUSTRY WHAT DO WE SAY
TO THEM NOW.
YES SO PARTLY THAT MESSAGE WILL
WE WE ANTICIPATE WILL COME OUT
THROUGH WHATEVER PUBLIC.
AWARENESS CAMPAIGNS WERE ABLE TO
DO BUT ALSO THROUGH THE
EMPLOYERS THEMSELVES WILL BE
AWARE OF THIS -- REQUIREMENT
THAT THEY HAVE SERVERS THAT ARE
CERTIFIED.
SO IF I'M A SERVER WHO NEEDS TO
BE CERTIFIED IF I'M CURRENTLY
EMPLOYED WE THINK THE MOST
LIKELY SCENARIO IS THAT THE
EMPLOYERS THEMSELVES WILL HAVE
TO PAY FOR THE TIME AND THE FEES
ASSOCIATED WITH HAVING THAT
SERVER -- CERTIFIED AS JUST A
MATTER OF LABOR LAW -- BECAUSE
IT'S A REQUIRE IT'S A JOB. FOR
THOSE WHO ARE NOT EMPLOYED --
THEY WILL HAVE -- TO TAKE A
COURSE AND ACHIEVE THE
CERTIFICATION -- CELL -- THE WAY
THAT CAN BE DONE IS THROUGH IN
PERSON TRAINING OR IT CAN BE
DONE.
THEIR INTERNET TRAINING.
OKAY SO THEY WOULD FIND A A
TRAINER.
THEY WOULD SIGN UP THEY WOULD
TAKE THE COURSE AND THEN ONCE
THEY COMPLETED THE COURSE
SATISFACTORILY.
THEN THEY WOULD BE SENT TO OUR
WEB PORTAL WHICH ESSENTIALLY
WOULD ALLOW THEM TO TAKE THE
EXAM -- OURS THERE ARE CURRENTLY
NO REQUIREMENTS STATEWIDE. FOR
ANY SERVER TO BE CERTIFIED.
THERE ARE LOCAL THE HOWEVER
REQUIREMENTS. FOR SERVICE TO BE
CERTIFIED WHICH AGAIN ARE -- ARE
APPLIED TOWARDS THE BUSINESSES
SOME BUSINESSES ARE REQUIRED AS
PART OF THEIR SIEU PEAS OR THEIR
BUSINESS PERMITS ARE OUR THE
LOCAL JURISDICTION DOES IT.
ACTUALLY HAVE THEIR SERVERS
CERTIFIED AND AND ACTUALLY IN
SOME OF THOSE JURISDICTIONS IS
NOT JUST SERVERS IT'S ACTUALLY --
EMPLOYEES WHO SELL ALCOHOL OVER
THE COUNTER FOR CARRYING AWAY.
THIS BILL REALLY JUST DEALS WITH
PEOPLE WHO ARE WORKING IN
RESTAURANTS BARS AND CENTER FOR
SERVING FOR CONSUMPTION ON THE
PREMISES.
OKAY SO THEY WOULD GO IN THEY
WOULD TAKE A COURSE -- AND THEN
THEY WOULD BE CHECKED INTO OUR
OUR SYSTEM AND THEY WERE TAKEN
EXAM AND THEN THEY WOULD HAVE A
CERTIFICATION -- ONCE THEY
PASSED THE EXAM THAT'S PORTABLE
IT'S NOT SPECIFIC TO AN EMPLOYEE
AND OF COURSE A LOT OF PEOPLE IN
THIS INDUSTRY -- WORKING MORE
THAN ONE JOB AND SO LITTLE BUILD
CARRY THAT WITH THEM WHEREVER
THEY GO AND IT LASTS FOR THREE
YEARS WE'LL HAVE TO TAKE THE
EXAM AGAIN AFTER.
YEARS.
WE AND WE FOR M. AND AND JUST
JUST FOR THOSE WHO DO HAVE TO
PAY FOR IT THEMSELVES -- OUR
RESEARCH SHOWED THAT THE NATION
WIDE COST IS ABOUT SEVENTEEN
DOLLARS AND FIFTY CENTS.
INCLUDING TAKING THE EXAM.
THAT IN CALIFORNIA WE ESTIMATE --
IT MAY GO AS HIGH AS TWENTY FIVE
DOLLARS FOR SOME PEOPLE BUT
THERE SHOULD BE OPTIONS THAT ARE
TWENTY FIVE DOLLARS LAUGHS.
AND THAT'S FOR AN INTERNET BASED
COURSE.
AND THE AND THE COURSE IS MEANT
TO TEACH ON SO HE HEARS THE
SUBJECTS THAT THE COURSE TEACHES --
FIVE THE EFFECTS OF ALCOHOL ON
THE BODY.
THE EFFECTS OF ALCOHOL ON
SOCIETY.
INTERVENTION TECHNIQUES FOR
SERVERS TO IDENTIFY MINERS
PEOPLE WHO ARE OVER INTOXICATED.
GENERAL PUBLIC HEALTH AND
WELFARE CONCERNS IN THEIR
ESTABLISHMENT AND THEY THEY HAVE
A SITUATION WHERE VIOLENCE MAY
BREAK OUT ONE OF THESE BILLS TO
DO ABOUT IT.
AND THEN THE FOURTH AREA IS FOR
MANAGERS TO ESSENTIALLY
DEVELOPED IN IN IN ARMS SINCE
SYSTEMATIC.
POLICIES AND PROCEDURES IN TERMS
OF RUNNING AN ESTABLISHMENT ON
THAT THOSE VERY SAME TOPICS.
AND IN THE FIFTH CATEGORY IS ON
A CALIFORNIA LAW RELATING TO A
SERVICE.
AND WHAT'S THE TIME FRAME IN
WHICH YOU EXPECT.
ALL OF THIS TO BE UP AND RUNNING.
SURE AND AND THE THE SERVERS TO
ACTUALLY KNOW BY SUCH AND SUCH
DATE IT WILL BE REQUIRED TO DO
THAT RIGHT SO.
SO WITH THE DISPATCH IS PRETTY
CLEAR AND WE ARE ON COURSE TO
MEET ITS REQUIREMENTS WE WILL
HAVE WE'VE BEEN WORKING FOR THE
SO TO DEVELOP REGULATIONS IT'LL
CENTRALLY.
TELL -- PROVIDERS WHAT THEY HAVE
TO DO WHAT THE CURRICULUM IS HOW
ALL THE REQUIREMENTS WORK --
WE'VE HAD MANY MANY MEETINGS
OVER THE COURSE OF THESE NINE
MONTHS WITH PROVIDERS WITH
STAKEHOLDERS WITH LOCAL
GOVERNMENTS PREVENTION GROUPS
AND OTHERS.
AS OF JULY FIRST WE WILL BE
PUBLISHING A REGULATIONS TO GO
FOR THE FORMAL PROCESS WITH THE
OFFICE OF ADMINISTRATIVE
HEARINGS.
EXCUSE ME OFFICE OF MINISTER OF
LAW.
AND THEN -- WE SHOULD HAVE THOSE
REGULATIONS IN PLACE BY THE END
OF THIS CALENDAR YEAR.
AND THEN OVER THE COURSE OF THE
YEAR -- TWENTY TWENTY WE WILL
START -- SENSUALLY LICENSING ALL
THE PROVIDERS -- THAT OR THERE'S
ALSO A PROVISION FOR A FOR FOR
AN EIGHT FOR A SEPARATE AGENCY
TO TO TO LICENSE THEM THEMSELVES
WHICH IS A LITTLE COMPLEX BUT IN
ANY EVENT.
THE M. THE THE PROVIDER SHOULD
BE LICENSE OVER THE COURSE OF
TWENTY TWENTY AND WE'RE HOPING
THAT THEY'LL START -- PROVIDING
THEIR COURSES AT THAT TIME --
AND THEN BY JULY OF TWENTY
TWENTY ONE THERE.
PEOPLE SERVING ALCOHOL AND
FALLING IN THESE CATEGORIES NEED
TO BE CERTIFIED IT'S MORE REALLY
ABOUT TWO YEARS AWAY -- WE ARE
POLICY DEVELOPMENT ARE
REGULATORY DEVELOPMENT -- IS
GOING EXTREMELY WELL THE THE
NEXT CHALLENGE FOR US IS IS
REALLY THE I. T. COMPONENT THAT
SET FORTH AND ARE BUDGET ITEM
TODAY -- JUST SOME THINGS TO
SORT OF I THINK WATCH OUT FOR IT --
THAT THERE'S NOT ANY OPPORTUNITY
FOR SCAMS YOU KNOW TO TAKE
ADVANTAGE OF THE THE SERVERS
YOU'LL BE LOOKING TO GET A A
QUICK COURSE -- SOMETIMES AS TO
YOU NO CHARGE TRIPLE THE AMOUNT
YES THINGS LIKE THAT -- JUST
LOOK OUT FOR THAT I APPRECIATE
THAT AS A POTENTIAL
UNFORTUNATELY NEW INDUSTRY --
THAT OTHERS COULD TAKE ADVANTAGE
OF AND THEN OBVIOUSLY TO GET THE
WORD OUT.
AS MUCH AS POSSIBLE YES AND NO
PLAYERS WILL BE VERY INTERESTED
IN THAT.
BUT WE WANT TO MAKE SURE THE
SERVICE REALLY KNOW WHAT'S
COMING YEAH I AGREE -- YES
SENATOR.
NOW.
THE LICENSE.
THE EXAM ITSELF WILL BE
CONDUCTED BY SOME THIRD PARTY IS
THAT CORRECT.
IT'LL WHEN YOU'RE TAKING THE
EXAM YOU'LL THINK THE A. B. C.
IS ACTUALLY ADMINISTERING IT
BECAUSE YOU'RE GOING TO GO
THROUGH OUR INTERFACE AND WE'RE
GONNA TELL YOU WHETHER YOU'RE
PASSED OR FAILED.
BUT WE'RE GONNA HAVE AN OUTSIDE
VENDOR THAT IS ACTUALLY GOING TO
BE CONDUCTING THE EXAM WITH OUR
OVERSIGHT -- THERE'S GONNA BE
LOTS OF ESPECIALLY IN THE
BEGINNING WE THINK LOTS OF
QUESTIONS FROM PEOPLE THEY'RE
GONNA NEED THE INFRASTRUCTURE
ESPECIALLY IN THE BEGINNING TO
BE ABLE TO RUN ESSENTIALLY PHONE
BANKS AND OTHER BANKS.
REALLY NOT SOMETHING THAT WERE
SET UP TO DO I DON'T THINK I
WOULD BE A FISHING FOR US TO
ESTABLISH THAT SO THAT WAS PART
OF THE REASON WHY WE FELT AN
OUTSIDE VENDOR CONDUCTING THE
EXAMINATION WOULD BE IN THE ALL
ALL THE EXAMS WILL BE DONE.
ON THE INTERNET THEY WILL NOT
HAVE A PLACE.
THE EXAM TAKEN THAT IS CORRECT
OKAY.
YEAH I'M FAMILIAR WITH A LOT OF
THESE.
TO REGULATORY AGENCIES AND
THEY'VE BEEN A LOT OF
DIFFICULTIES RELATED TO EXAMS
THE NEW THEN WILL CONTROL THE
THE QUESTIONING QUESTIONS AS
WELL.
THAT'S CORRECT OKAY AND THEN
WHAT THEY DO JUST ADMINISTER.
AND YOU'VE TALKED ABOUT THEN THE
LICENSING THAT GOING TO BE A
SEPARATE ENTITY TO NOW THAT'S
BUT THAT'S DIRECTLY UNDER YOUR
JURISDICTION.
THAT'S CORRECT THEY THEY THEY
APPLY -- TO THEY EITHER APPLY TO
US TO BE LICENSE DIRECTLY OR THE
APPLIED TO THE STATUTE ALLOWS
FOR ACCREDITATION AGENCY. ONE
ACTUALLY COME WANTS TO COME
FORWARD AND ACTUALLY BE LICENSED
BY THE DEPARTMENT TO OUR CREDIT
THE EXAM.
HELLO IT'S A LITTLE OF AN
UNUSUAL STRUCTURE BUT EITHER WAY
THEY'RE GONNA HAVE TO EITHER
APPLY THE ACCREDITATION AGENCY
OR TO US TO BE AUTHORIZED TO
CONDUCT EXAMINATIONS.
MOST OF THESE HAVE ACCREDITATION
AGENCIES ACROSS THE COUNTRY AND
NOW I'M NOT SAYING AND IN TERMS
OF THE ABC BUT OTHER.
OTHER ENTITY TO THE NATIONAL
MEDITATION.
SO THERE IS AN AUTHORITY THAT
DOES THE ACCREDITATION AND THEN
A ARMS THE QUALITY AND THE
DEVICE MEETING THE STANDARDS
THAT'S CORRECT.
AND THEN ONE THING ALSO TALK
ABOUT IT IS THE I. T. IN THE
INTER CONNECTED VIDEO MEAN A
THERE'S BEEN SO MANY PROBLEMS.
WITH THIS SITE KEY AND AND
CALIFORNIA GOVERNMENT.
YOU WERE THE LEAST OF CONCERNS
THAT.
DO YOU HAVE GOOD CONFIDENCE THAT
THE VENDORS AND AND YOUR
CONNECTIVITY IT IS GOING TO BE
YEAH WELL MONITORED AND
FUNCTIONAL AND YES I THINK
THAT'S PRIMARILY BECAUSE WE ARE
NOT.
CREATING A A BRAND NEW LARGE
SYSTEM WHAT WE'RE REALLY MOSTLY
DOING IS BUILDING ON THE
LICENSING SYSTEM THAT WE ALREADY
HAVE.
RIGHT SO SO IT'S REALLY AN
INCREMENTAL.
THING AS OPPOSED TO WE'RE JUST
STARTING SOMETHING FROM SCRATCH
IT'S SUPPOSED TO TAKE CARE OF
EVERY SINGLE THING OF THE
DEPARTMENT DOES [inaudible]
THANK YOU. ONE MORE QUESTION THE
TRAINING -- YOU TALKED ABOUT ONE
OF THE ELEMENTS WAS -- SORT OF
GENERAL HEALTH AND WELFARE.
I ASSUME HOW TO HANDLE YOU
MENTIONED SOMETHING LIKE HOW TO
HANDLE SOMEONE HAD BEEN.
HAD TOO MUCH TO DRINK RIGHT.
DOES THAT.
ALSO INCLUDE.
HOW TO HANDLE SEXUAL HARASSMENT?
I THE SERVERS I DON'T KNOW.
YES I WILL FIND OUT PLEASE YEAH.
BECAUSE AT THAT.
COMES IN AND AND USUALLY WHEN
THEIR SEXUAL HARASSMENT SINCE
IT'S CONSIDERED SOMETHING THAT.
OF THE SERVERS ARE JUST REQUIRED
TO TOLERATE -- THE VERSES.
HOW TO HANDLE IT?
AND HOW TO HANDLE IT IN A WAY
THAT YOU'RE NOT GOING TO BECOME
RESPONSIBLE. FOUR PLEASE WRITE
TO ARRESTORS ACTIONS SO.
SHAPE THE S..
AND THEN I WOULD ALSO I KNOW
THAT THERE ARE -- TRAINING
PROGRAMS THAT EXIST OUT THERE
ALREADY ON THIS SO I SO YOU'RE
GONNA.
SOMEHOW CONNECT WITH THOSE
TRAINING PROGRAM WE RAN HAVE AN
WE HAVE MET WITH MANY OF THEM TO
TALK ABOUT WHAT CURRICULUM
SHOULD LOOK LIKE WHAT -- WHAT
THEY NEED TO SENSUALLY BUILD
OPERATE AND RUN A PROGRAM
THAT'LL MAKE SENSE UNDER A LAW
WE WE OURSELVES ACTUALLY DO
OPERATE A TRAINING PROGRAM?
WHICH IS A FULL A FULL DAY OF
TRAINING.
FOR IN THIS AREA -- BUT IT'S IN
PERSON AND IT'S REALLY NOT A
COST EFFECTIVE WAY FOR MOST
PEOPLE -- TO PRESENT WE PLAN TO
CONTINUE THAT TRUE TRAINING
PROGRAM BUT WE'RE GOING TO FOCUS
ACTUALLY ON LIQUOR STORES --
CHANGE THE FOCUS BECAUSE RIGHT
NOW SORT OF ALL SERVICE.
WHERE IS THERE'S THIS TRAIN
DOESN'T REQUIRE LIQUOR STORES TO
BE TRANSFER OF WE CAN ACTUALLY
REALLY MORE FOCUS ON THE
CHALLENGES OF THAT OUR TRAFFIC
READ?
IT'S A BIT ALL BE A BETTER USE
OF OUR TIME AND MONEY.
OKAY MAYBE COMMUNITY COLLEGES.
IT ALSO OFFER.
OF THESE COURSES THAT IS THAT IS
POSSIBLE YEAH.
OKAY GREAT -- AND THE FEES --
THAT THEY WOULD HAVE TO PAY THE
SERVERS WOULD HAVE TO PAY.
IS THERE -- SPECIFIC I DON'T
KNOW THAT THERE'S A A SPECIFIC.
CAP ON THE AMOUNT OVER A CERTAIN
PERIOD OF TIME.
I DO WE HANDLE THAT.
THIRD THERE'S NOT A SPECIFIC.
MENTION OUR PROPOSAL -- THERE
THERE'S THE BILL ITSELF HAD
LANGUAGE THAT ESSENTIALLY
LIMITED AS TO FIFTEEN DOLLARS
FOR BUT THAT WAS REALLY IF WE
ARE GOING TO BE SPECIFICALLY FOR
A TRAINING COURSE WE PERFORM BE
PROVIDING.
I'M RIGHT NOW OUR BEST ESTIMATE
IS THAT THE THE COST OF THE EXAM
OUR COSTS THE EXAM IS AROUND
THREE DOLLARS -- BUT I KNOW
THERE IS A DISCUSSION OF A CAP --
WHICH OBVIOUSLY ROLLING OUT A
CONVERSATION ABOUT THAT MAKE
SENSE OF THE COMMITTEE.
I WOULD URGE SOME VERSION OF A
CAPSULE THAT.
WE CAN SAY HOW LONG AGO OKAY
YEAH I'D DIE AND I WOULD ONLY
POINT OUT THAT THE ARE --
PROPOSAL DOES LIMIT BECAUSE IT
SAYS IT'S THE FEES MAY BE
CHARGED NECESSARY TO COVER
REASONABLE COST FOR
ADMINISTERING THE PROGRAM
AUTHORIZED BY THIS ARTICLE SO
WHILE IT'S NOT SPECIFIED DOLLAR
AMOUNT.
IT WOULDN'T BE SOME KIND OF
LARGE AMOUNTS TO SORT OF FIND
OTHER ACTIVITIES WITHIN THE
DEPARTMENT SO IT'S SORT OF
LIMITED ONLY TO THE SCOPE OF
THIS EXISTING PROGRAM.
SO IT'S NOT A SPECIFIC DOLLAR
AMOUNT IT'S IT IS RESTRICTED TO
THE PROGRAM COST.
OKAY ANYTHING ELSE THE FINANCE
WANTS.
TO I JUST A COUPLE QUICK
COMMENTS AND WHEN MY
RECOMMENDATION SO -- A
RECOMMENDATION AND RELATES TO
YOU THROUGH THIS -- I. T.
PLANNING PROCESS AND IT'S
CONSISTENT WITH OTHER
RECOMMENDATIONS WE'VE MADE
ACROSS -- GOVERNMENT -- SO
ESSENTIALLY THIS PROJECT IS
MIDWAY THROUGH THE PROJECT
APPROVAL LIFECYCLE PROCESS WHICH
IS THIS NEW PROCESS IMPLEMENTED
A COUPLE OF YEARS AGO -- FOR
PLANNING AND UNDERTAKING I. T.
PROJECT.
AND AND SO BECAUSE IT'S KIND OF
MIDWAY THROUGH ITS ITS COMPLETED
I THINK STAGE TO YOU OF THAT A
MULTI STAGE PROCESS THE
LEGISLATURE DOESN'T YET HAVE I
TOTALLY COMPLETE AND FULL
PICTURE OF WHAT THE COST OF THIS
PROJECT WILL LIKELY BE -- AS THE
DEPARTMENT.
TO CONTINUE DOWN THAT PROCESS
AND RECEIVE SOLICITATIONS FOR
EXAMPLE -- IT'LL HAVE A MORE
REFINED ESTIMATE AS TO WORK
MEETINGS AND BUDGET BILL
LANGUAGE AS I SAID WHICH IS
CONSISTENT WITH WHAT WE'VE
RECOMMENDED IN OTHER AREAS.
AND THAT WOULD MAKE THE FUNDING
CONTINGENT ON AND I NOTICE TO
THE LEGISLATURE -- REGARDING
THIRD COMPLETING THAT PROCESS
AND AND WHAT THE ULTIMATE COSTS
ARE SO GIVE THE LEGISLATURE WE
THINK A LITTLE BIT MORE
OVERSIGHT.
ON IN THIS IMPORTANT AREA AND
AND GIVEN THE CHALLENGES WE'VE
HAD A NINETY PROJECT THAT'S VERY
HELPFUL.
AND THE SECOND THIN I JUST
WANTED TO NOTE IS -- AS WAS
MENTIONED I THINK MULTIPLE TIMES
THIS PROJECT REALLY HAS TWO
COMPONENTS THERE'S THE ESERVICES
COMPONENT AND THERE'S
RESPONSIBLE BEVERAGE COMPONENT --
WITH REGARD TO THE RESPONSIBLE
BEVERAGE COMPONENT -- THIS IS IS --
THIS IN TOTAL THIS PIECE WILL --
WILL SIGNIFICANTLY ADD TO THE
TOTAL COST OF IMPLEMENTING THAT
PROJECT SO THAT PRIDE BASICALLY
THE REQUIREMENT THAT THESE FOLKS
UNDERGO THAT TRAINING -- WAS
PASSED BY THE LEGISLATURE BUT
WHEN THAT HAPPENS THAT ESTIMATE
ACOSTA SUBSTANTIALLY LOWER SO
THAT'S JUST AN IN THE
LEGISLATURE MIGHT WANT TO WE
WANT TO FLAG FOR THE LEGISLATURE
JUST. TO MAKE SURE THAT THAT
DOES SOMETHING THAT BOOKS ARE
COMFORTABLE WITH [inaudible]
YES.
REALLY MANNING DEPARTMENT OF
FINANCE -- SO THE DEPARTMENT OF
FINANCE ASSESSES EACH PROJECT ON
A CASE BY CASE BASIS.
DESERVE TO DETERMINE IF BUDGET
BILL LANGUAGE IS NECESSARY WHEN
FUNDING.
IS CONSIDERED WHILE PROJECT IS
STILL IN THE PROJECT PRO LIFE
CYCLE -- PROCESS.
AND THE INTENT OF THE POWER
PROCESS IS THAT PROJECTS DO
THEIR DILLON.
DILIGENCE DURING THE PLANNING --
PROCESS AND THAT -- THE COST AND
SCHEDULE APPROVED DURING STAGE
TWO ARE FAIRLY ACCURATE --
POLICY IN THE STATE AND
INFORMATION MANAGEMENT MANUAL
ESTABLISH A THRESHOLD DURING
STAGE FOR THAT ARE PROJECTS NOT
MOVE FORWARD IF COST.
ARE NOT WITHIN 20% OR FIVE
MILLION WHICHEVER IS LESS OF THE
STAGE TO ESTIMATES.
SO IN THIS CASE DO THE WORK
COMPLETED BY ABC DURING THE
MARKET RESEARCH AND PLANNING
PHASES.
THE DEMONSTRATION FOR ABOUT ONE
YEAR FUNDING WAS APPROPRIATE.
AND BASED ON ABC'S RESEARCH ON
CURRENT TRENDS IN THE RBS
TRAINING MARKET WITHOUT THAT
SPENT FROM THE STAGE TO
DOCUMENTATION ARE REASONABLE.
AND AS OUR INTENSE ONLY FROM THE
FIRST YEAR OF THE PROJECT. TO
AVOID POTENTIAL DELAYS.
AND ONCE A. B. C. COMPLETE STAGE
FOR IN THE FALL OF TWENTY
NINETEEN ABC CAN REQUEST FUNDING
FOR SUBSEQUENT YEARS.
THE THE ANNUAL BUDGET PROCESS.
AND FURTHER THE LEGISLATURE
WOULD RECEIVE NOTIFICATION OF
FINAL COSTS WHEN THE PROJECT WAS
APPROVED AND CONTINUE TO RECEIVE
UPDATES.
HE IS -- MONTHLY LEGISLATIVE
MEETING.
JUST ONE MORE QUESTION ON THE ON
THE FUNDING IN THE FEES SO YOU
CAN INCREASE THE LICENSING
[inaudible]
PLEASE [inaudible]
CORRECT [inaudible]
AND BECAUSE OF THE NEW PROGRAM
THE SERVERS.
YOU KNOW THOSE THOSE THE RBS
PROGRAM THERE.
CREASON FEES TO PAY FOR THAT
PROJECT THE PROJECT IS SOLELY
FUNDED BY FEES.
PAID TO THE EXAM AND THEN PAID
THROUGH LICENSING I'M THE
PROVIDERS THEMSELVES BUT IT
WOULDN'T BE.
ALCOHOL LICENSEES THEMSELVES ARE
NOT COMPARE HIGHER FEE TO THE
DEPARTMENT. TO PAY FOR THE RBS
PROGRAM NO I'M SAYING THE
SERVERS THEMSELVES CRACKED ARE
PAYING THE FEE.
OR THEIR EMPLOYERS.
BUT THEY'RE BUILT THEIR
ULTIMATELY RESPONSIBLE BECAUSE
THEY'RE THEY'RE THE ONES HAVE TO
BE CERTIFIED YES OKAY --
VICTORIES IN THE THE LICENSING
[inaudible]
IS THAT.
YOU'RE PROJECTING WHAT THESE
LICENSING FEE INCREASES THAT
THAT WILL BE ENOUGH TO COVER.
THE NEW -- THE NEW ONES YES THE
OLD BOX THE ORGAN IT'S NOT NEW
YOU'VE BEEN HAVING THAT
PROXIMALLY EIGHT NINE TEN
MILLION DOLLARS A YEAR.
RIGHT AND SO THAT'S GOING TO
COVER THAT.
CORRECT SO SO THAT WE FORWARD I
GUESS WERE WERE THE AMOUNT OF
MONEY THAT YOU'RE REQUESTING IS
[inaudible]
FOR STAFFING.
NEW YOU KNOW AN INCREASE IN
STAFFING.
SO I'M TRYING TO FIGURE OUT IS
IT.
THE LICENSING FEES IT'S GOING TO
COVER IT OR IS IT.
FUNDING FROM OUR GENERAL FUND NO
NO NO NO GENERAL FUND.
ALL THIS ALL SPECIAL FUNDS ALL
AND IN THIS OF THIS IS THIS IS
MOSTLY IN THIS THE NEXT ITEM
WHICH I CAN CHECK TO NARAL OR
AND THEN I'LL ANSWER WAS I
PROMISE YOU AND GO AHEAD -- IN
ISSUE NUMBER THREE IN YOUR
AGENDA THAT'S OUR PROGRAM
PERFORMANCE IMPROVEMENT
INITIATIVE -- THIS IS A MULTI
YEAR PLAN TO STRENGTHENS
APARTMENT. FOR YOUR PLAN.
AND PROVE OUR SERVICE TO THE
PUBLIC YOUR STAKEHOLDERS THE
PROPOSAL REQUEST THIRTY FOUR
POSITIONS AND FIVE MILLION TWO
HUNDRED FORTY NINE THOUSAND
DOLLARS IN THE FIRST YEAR --
FROM THE ALCOHOL CONTROL
BEVERAGE FUND WHICH IS AGAIN A
LICENSING FEE FUND -- INCREASING
TO A TOTAL OF FIFTY ONE
POSITIONS AND SEVEN MILLION FOUR
HUNDRED AND SIXTY NINE THOUSAND
DOLLARS AND TWENTY TWO TWENTY
THREE I'M THERE'S A TRAILER BILL --
THAT ESSENTIALLY -- CONTAINS THE
FEE INCREASES IT ALSO -- ALIGNS
THE FEES AND THE WAY I WAS
DESCRIBING TO TRY TO HAVE
APPLICATION FEES COVER THE COSTS
THE ABC'S COST ACTUALLY
PROCESSING APPLICATION.
AND THE RENEWAL FEES TO COVER
THE COSTS OF ENFORCEMENT AND
COMPLIANCE.
NO ANSWER QUESTIONS.
SO THE YES THE END OF THE FEES
WERE PROPOSING THE TRAILER BILL
COVER -- ARE STRUCTURAL DEFICIT
IT'S IT'S DOUBTS ABOUT 15%.
INCREASE OF ARE THESE NOW AND
THEN THE MODERNIZATION PORTION
OF IT IS -- AN ADDITIONAL 14% OF
WATER THESE ARE BASED ON RIGHT
NOW.
OKAY IT THEN.
THAT SEEN IN IN OVER THE COURSE
OF THE NEXT -- FOR YEARS THE
BUDGET MODEL RELIES ON CP I
INCREASES.
WHICH WE CURRENTLY HAVE -- THE
AUTHORITY WILL IMPOSE -- BUT THE
BUDGET MODEL ITSELF DOES RELY
UPON THE CPI INCREASE GOING
FORWARD.
SO WE WOULD AT THAT POINT MOVING
FORWARD THESE FOUR YEARS
ESSENTIALLY GROW OUR OUR
STAFFING AND OUR PROGRAMS UP IS
FOR PROPOSING.
AND AND ESSENTIALLY HAVE A
PREDICTABLE FEE STRUCTURE --
THAT WOULD NOT RELY ON ANY
INCREASES OTHER THAN WHAT IS
PROVIDED BY CPI.
THE BILL WOULD BE CPI INCREASE
BREAST IN THE FUTURE CORRECT.
IN THE FEES.
YES AND WE'VE BEEN DOING WE'VE
HAD CPI INCREASES AUTHORITIES
SINCE ABOUT -- TWO THOUSAND TO
THREE AND THIS IS JUST.
TION OF THOSE ALTHOUGH OUR
INTENT IS TO DO IT ON A YEARLY
PROJECT BASIS [inaudible]
OKAY [inaudible]
ANYMORE [inaudible]
COMMENTS.
NOT MUCH ADDITIONAL TO ADD WE
HAVE A REYES SPECIFIC CONCERNS
IT BUT AS WE WOULD NOTE THIS IS
A PRETTY FAR REACHING --
PROPOSAL THAT INVOLVES BOTH FEE
INCREASES AS WELL AS A NUMBER OF
CHANGES THROUGHOUT THE
DEPARTMENT SO CERTAINLY THEIR
NUMBER POLICY CONSIDERATIONS --
AND ALSO CERTAINLY THIS IS
SOMETHING THAT LEGISLATURE GONNA
WATCH WHENI WATCH -- IN THE
COMING YEARS -- TO TO ENSURE
THAT THE DEPARTMENT IS ABLE TO
FULLY IMPLEMENT THIS AND GET ALL
THE BENEFITS THAT ARE PROMISE
FROM THIS PROPOSAL -- AND JUST
ONE FINAL WE WE WE TOUCHED ON
THIS BUT IF NOT SAID.
OF QUICKLY -- I RAISE A CONCERN
ABOUTTHE ARREST OF MINORS WITH
REGARDS TO THE ALCOHOL.
POSITION UP WHILE I THINK IT'S
GOOD IN THE SENSE OF ENFORCEMENT
IS ALWAYS IMPORTANT AND I KNOW
YOU'RE REALLY.
IT'S REALLY MORE FOR YOU AS WELL
AS FOR THE THE GENERAL PUBLIC --
BUT MAYBE THERE IS YOU COULD
JUST EITHER NOW OR IN THE FUTURE
TELL US ABOUT -- DETERRING.
YOU KNOW.
THIS KIND OF WAITING FOR THEM.
TO ALL BLOOM ARRESTING THEM OR
YOU KNOW REFERRING THEM BECAUSE
IT IS CRIMINAL RIGHT IT IS A
CRIMINAL JOINT IS HANDLE.
IT YOU KNOW I DON'T WANNA DEFEND
KIDS WHO GO AROUND DRINKING BUT
ON THE OTHER HAND I ALSO DON'T
WANT IT TO BECOME.
THIS IS THE BEGINNING OF THE
PIPELINE TO SURE RESORTS TO SO
SO THE THE THAN THE MINERS
RECITING IT'S FOR PURCHASING
ALCOHOL IS FOR BEING IN
POSSESSION IT'S FOR FAKE ID'S
OUT THE VAST MAJORITY OF THE OF
THE CITATIONS RE ISSUE.
THERE WE ISSUED THEM AS
MISDEMEANORS THAT'S WHAT OUR
CODE SAYS BUT BUT BUT THEY'RE
INVARIABLY PRESS PLAYED DOWN TO
INFRACTIONS THAT REQUIRE THEM
EITHER BY A FINE OR ENGAGE IN
SOME SORT OF COMMUNITY SERVICE
SO.
YOU KNOW WE HOPE FOR THE VAST
MAJORITY OF THEM THEY LEARN A
LESSON -- BUT YOU KNOW THAT THAT
SIDE OF SUBJECT FROM OBVIOUSLY
FAR BROADER THAN THIS HEARING
TODAY -- BUT WE DO DO A LOT WE
WORK WITH PREVENTION GROUPS -- I
WE WORK WITH FRIDAY NIGHT LIVE
MAD SAD -- THE RECORDING ARTISTS
AND ATHLETES CONSTRUCT DRIVING I
SAID I'M ACTUALLY THE CO CHAIR
THAT WE REALLY BILL RELIEF AND
PREVENTION WE DO ALL THE THINGS
WE CAN.
OUR MOST POWERFUL TOOLS AND
PREVENTION ARE REALLY TO TO
EDUCATE OUR LICENSEES TO HAVE
THEM.
ALCOHOL AWAY FROM KIDS AND HOW
THEY CAN AVOID SELLING TO THEM
EITHER -- THROUGH COMPLIANCE
PROGRAMS ARE HOW TO SPOT OF
THOSE SPORTS.
I MEAN I'M I'M A REMAINING VERY
FRUSTRATING PROBLEMS SIGN
COURSES.
KIDS GET A LOT OUT ON IT'S NOT
FROM THE LIQUOR STORE.
OKAY.
THING ELSE RIGHT WILL -- PUBLIC
COMMENTS.
SENATOR OZ OF CENTER OVER THANK
YOU FOR THE OPPORTUNITY TO SPEAK
TODAY I'M DR GERM COOLER I'M THE
ADMINISTRATOR FOR THE CALIFORNIA
FRIDAY NIGHT LIVE PARTNERSHIP --
WE'VE BEEN ENGAGING YOUNG PEOPLE
IN MAKING THEIR COMMUNITIES
BETTER PLACES TO LIVE SINCE.
NINETEEN EIGHTY FOUR HAVE VERY
STRONG PROGRAMS IN BOTH OF YOUR
AREAS.
I'VE HAD THE PLEASURE OF WORKING
WITH THE EXECUTIVE OFFICES OF
ABC SENSE -- THE EARLY NINETIES
AND THIS IS THE FIRST ONE THAT
HAS TRULY BEEN SERIOUS ABOUT
COMMUNITY ENGAGEMENT AND
ENGAGING IN PREVENTION -- THE
ABILITY TO MEET WITH THEM IN
PERSON QUARTERLY.
THE WILLINGNESS FOR THEM TO COME
AND PARTICIPATE IN OUR EVENTS
LOCALLY ALL OF WHICH MAKE THE
RELATIONSHIP MUCH STRONGER. TO
YOUR POINTOF CRIMINALIZING
YOUTH ALCOHOL BEHAVIOR -- WE TO
DON'T WANT TO SEE YOUTH DRINKING
BUT AT THE SAME TIME EVERY TIME
A YOUTH IS INVOLVED IN AN
ALCOHOL INCIDENT.
SOMEWHERE ALONG THE LINES AN
ADULT WAS INVOLVED.
SO MOST OF THE TIME IT'S AT
THEIR HOMES WHERE THEY FIND THE
ALCOHOL.
BUT AT THE SAME TIME TRAINING
MERCHANTS IS INCREDIBLY
IMPORTANT. TO OUR YOUNG PEOPLE
ARE INVOLVED IN PROGRAMS LOCALLY
TO DO EDUCATION AND WITH ABC.
A. RESPONSIBLE ALCOHOL MERCHANT
WARD.
SO OUR YOUNG PEOPLE WILL GO OUT
AND DO SURVEYS OF THEIR
COMMUNITY.
TAKE A LOOK AT THE NUMBER OF
ALCOHOL OUTLETS IN THEIR AREA.
AND EDUCATE THOSE MERCHANTS
ABOUT THE APPROPRIATE WAY TO
SELL OUT.
COMMUNITY AND MAKE SURE IT ISN'T
SOLD TO MINORS.
SO THEY WILL INVITE THEM TO SIGN
A MERCHANT PLEDGE WHICH IS IN
ADDITION TO THE LICENSE THAT
THEY HAVE.
WHICH CLEARLY STATES IN THEIR
COMMUNITY THAT THEY'RE GOING TO
BE A GOOD PARTNER. TWO BILLION
DOLLARS IN MAKING SURE THAT THE
AVAILABILITY OF ALCOHOL IS
RESTRICTED.
AND IT'S FLOW TO THEM.
WE ALSO FIND THAT MANY OF THE
YOUTH WHO ARE THEN CITED FOR A
MINOR IN POSSESSION.
WELL ALSO THAT HAVE TO GO
THROUGH AN EDUCATIONAL PROGRAM
IN THE LOCAL COMMUNITY.
AND THEN MAY CONNECT BACK TO OUR
FRIDAY NIGHT LIVE PROGRAM TO BE
INVOLVED IN A PEER GROUP THAT IS
POSITIVE.
AND ENGAGING AND GOOD ACTIVITIES
SO WE STRONGLY SUPPORT THE
EFFORTS AND APPRECIATE THE
PARTNERSHIP THAT WE HAVE.
WITH A. B. C. AS WE TAKE A LOOK
AT SUPPORTING YOUNG PEOPLE AND
MAKING GOOD DECISIONS.
SO HAPPY TO ANSWER ANY QUESTIONS
ABOUT OUR PROGRAM AND ITS
SUPPORT OF EFFORTS LOCALLY.
GREAT THANK YOU VERY MUCH THANK
YOU THANK YOU FOR YOUR WORK
[inaudible]
OKAY -- A HOLE IN THE SIDE OF
OPEN SO I APPRECIATE THANK YOU
VERY MUCH OF FUTURE FOR ALL YOU
DOING THEM FOR ALL YOU'RE GOING
TO DO.
SO
[inaudible]
THAT CLIP.
HE SAID IT WAS YOUR FAULT.
OKAY WOULD HAVE NEXT YEAR.
THERE'S ONLY ONE RIGHT
[inaudible]
YEAH.
YES -- THIS IS WILL BE
[inaudible]
THE OKAY -- JUST.
WE WILL GET IT IN SOMEWHERE
BECAUSE I ALSO WANT TO JUMP.
TO I WILL DO THAT OKAY -- ISSUE
NUMBER FOUR THIS IS THE CAL
STIRS SUPPLEMENTAL PENSION
PAYMENT [inaudible]
THE MORNING.
I CAN MORNING MADAM CHAIR GABBY
SAN TOWARD PART IN FINANCE -- SO
AS PART OF THE TWENTY NINETEEN
TWENTY GOVERNOR'S BUDGET -- IT
IS PROPOSED.
TO MAKE PAYMENTS IN ADDITION TO
WHAT STATUTORY REQUIRED TO BUY
DOWN THE UNFUNDED PENSION
LIABILITY FOR CAL STEARNS -- SO
THERE'S TWO PIECES THE FIRST
PIECE IS TO BUY DOWN THE
UNFUNDED LIABILITY THAT'S
ATTRIBUTED TO THE STATE OF FOR
THE CL STIRS DEFINED BENEFIT
PROGRAM -- WE'RE PROPOSING A TWO
POINT NINE BILLION DOLLAR
PAYMENT OVER FISCAL YEARS
201-923-2020 -- TWO TWENTY THREE
IT IS ESTIMATED THAT THESE
PAYMENTS WILL RESULT IN A
SAVINGS OF SEVEN POINT FOUR
BILLION DOLLARS OVER THE NEXT
THIRTY YEARS.
AS BUT SEE I HAVE WE JUST WANTED
TO IN RESPONSE TO ADD SOME
COMMENTS THAT WERE MADE IN THE
AGENDA ITEM -- THERE WAS
DISCUSSION ABOUT SORT OF THE
PROBABILITY OF WHEN THE SAVINGS
WE GET ACHIEVED -- WON THE NOTE
THAT THERE IS AN 82% PROBABILITY
THAT THE SAVINGS WILL BE
ACHIEVED WITHIN THE NEXT THREE
DECADES -- I SHOULD CAVEAT THAT
THERE IS AN EXISTING FUNDING
PLAN FOR CAL STIRS I'M AT
FOURTEEN SIXTY NINE WAS PASSED
IN TWENTY FOURTEEN I JUST SORT
OF RESTRUCTURED THE FUNDING --
BETWEEN THE RESPONSIBLE PARTIES
WHICH ARE THE STATE A SCHOOL
DISTRICTS ARE EMPLOYERS AND THE
MEMBERS OF CAL STIRS.
UP -- TO ELIMINATE THE UNFUNDED
LIABILITY FOR THE TV PROGRAM I
BY -- TWENTY FORTY SIX SO THERE
IS THAT THERE IS A EIGHTY TWO
PERCEPTIBLE DELAY THAT WE WILL
ACHIEVE SAVINGS WITHIN THAT TIME
PERIOD HOWEVER THERE IS A CHANCE
THAT.
THE SAVINGS WILL BE REALIZED
AFTER WE WANT TO EMPHASIZE THAT --
THEY'RE ALWAYS BE SAVINGS
REALIZED AS A RESULT OF THIS
PAYMENT -- IT'S JUST THERE'S NOT
COMPLETE CERTAINTY THAT WILL
REALIZE THAT WITH AND THAT SORT
OF TIME PERIOD.
AT THE NEXT PIECE IS A A
PROPOSED THREE BILLION DOLLARS
RIGHT I SHOULD BACKTRACK BUT THE
TWO POINT NINE BILLION DOLLAR
PAYMENT IS BEING PROPOSED
THROUGH.
AVAILABLE PROPOSITION TO DEBT
REPAYMENT FUNDING.
AB AND I'VE ALTERNATIVELY THERE
IS A PROPOSED THREE BILLION
DOLLAR GENERAL FUND PAYMENT --
TOWARDS THE CASTERS FIND BENEFIT
PROGRAM I BEHALF OF A SCHOOL
DISTRICTS -- OF THE ENTIRE
PAYMENT TWO POINT THREE BILLION
DOLLARS WILL BE PAID AS AN
ACTUAL SUPPLEMENT PENSION
PAYMENT ON TOP OF WHAT.
ARE REQUIRED BY SCHOOL DISTRICTS --
THE REMAINING SEVEN HUNDRED
MILLION WE'RE PROPOSING TO BE
PAID US THE AS A PLANNING
PAYMENT THAT IN THAT.
I BUDGET YOU'RE IN BUT YOU'RE
PLUS -- ONE TO REPLACE WHAT THEY
WOULD BE AND PAYING OTHER WHITES
WERE BY THE SCHOOL TRICKS
DISTRICTS SOME RELIEF.
AND THIS IS ESTIMATED TO RESULT
IN A 1% DECREASE AND
CONTRIBUTIONS FOR THOSE TWO
YEARS -- OVERALL WE ARE
EXPECTING THAT SAVINGS TO THE
SCHOOL DISTRICTS AS A RESULT
RESULT OF THIS PAYMENT WILL BE
SIX POINT NINE BILLION DOLLARS --
AND THEN FOR FOR BOTH OF THESE
PAYMENTS WE WANT TO NOTE THAT
THE WAY THAT THE TRAILER BILL
LANGUAGE TO AUTHORIZE IT IS
STRUCTURED -- ALLOWS FINANCE
SORT OF FLEXIBILITY TO DETERMINE
BY AND THAT THE TRANCERS BE
AFFECTION WAITED BUT THIS IS --
THIS PAYMENT WILL BE ATTRIBUTED
TO A TWENTY NINTH TWENTY
EIGHTEEN NINETEEN GENERAL FUND
AVAILABLE FUNDING [inaudible]
OKAY -- THANK YOU MADAM CHAIR
AND MEMBERS I'M SO YOU SHOULD
ALSO HAVE A HAND OUT IN FRONT OF
YOU -- WHICH WILL COVER ACTUALLY
THE THE FOLLOWING THREE ITEMS IN
YOUR AGENDA ISSUE FOUR FIVE AND
SIX I AM SO.
PAGE ONE IS JUST GONNA CONCERNS
THIS ISSUE THAT YOU HAVE IN
FRONT OF YOU.
THE NUMBER IS -- DO YOU HAVE
ALREADY DID A GREAT JOB OF
PROVIDING A SUMMARY OF THE
PROPOSAL BUT OUR NUMBERS ARE
SLIGHTLY DIFFERENT JUST BECAUSE
WE HAVE A DIFFERENT TAKE ON HOW --
THIS PROPOSAL WOULD WORK SO ANY
KIND OF GIVE YOU A LITTLE BIT OF
BACKGROUND. THREE PAYMENTS
RELATED TO HOLLISTER IS -- BY
THE STATE.
THE FIRST IS A ONE POINT ONE
BILLION DOLLAR PAYMENT IN TWENTY
NINETEEN TWENTY TO PAY DOWN THE
STATE'S SHARE OF THE UNFUNDED
LIABILITY AS DEPARTMENT FINANCE
ARE DENOTED THE UNFUNDED
LIABILITY OF CASTERS.
IS SHARED UNDER STATE LAW -- BY
BOTH THE STATE AND ALSO
DISTRICTS AND MEMBERS.
ARE THERE IS AN ADDITIONAL TWO
POINT THREE BILLION DOLLAR
PAYMENT THAT THE STATE WOULD
MAKE ON BEHALF OF THE DISTRICTS
CHAIR OF THE UNFUNDED LIABILITY.
AND THAT IN ADDITION TO THAT A
SEVEN HUNDRED MILLION DOLLAR
PAYMENT OVER THE NEXT TWO YEARS
THAT'S SEVEN HUNDRED MILLION
DOLLAR PAYMENT WOULD NOT COVER
THE UNFUNDED LIABILITY IT WOULD
BE INSTEAD OF WHAT DISTRICTS
WOULD HAVE SPENT OTHERWISE ON
THEIR PENSION PAYMENTS -- BUT
YOU KNOW DEPARTMENT FINANCE
ALREADY NOTED IT BUT I'LL JUST
REITERATE.
THAT.
BY CONTRAST TO THE DISTRICTS
PAYMENT WHICH HAS AN OVER 99%
CHANCE OF ACHIEVING SAVINGS OVER
THE NEXT FEW DECADES THE PAYMENT
ON BEHALF OF THE STATE'S SHARE
OF THE UNFUNDED LIABILITY HAS
ABOUT AN 80% CHANCE OF ACHIEVING
SAVINGS.
OVER THE NEXT TWO DECADES OR A
20% CHANCE OF NOT ACHIEVING
SAVINGS.
OVER THE NEXT TWO DECADES -- AND
THEN FINALLY JUST ON THE
DISTRICTS RATE RELIEF WE WOULD
NOTE THAT YOU KNOW PROPOSITION
NINETY EIGHT FUNDING.
COULD DECLINE IN THE COMING
YEARS IF THE STATE FACES A
RECESSION AND WHILE SCHOOL
DISTRICTS MAY FACE SOME
FINANCIAL PRESSURES TODAY THEY
MAY FACE EVEN MORE FINANCIAL
PRESSURES IN THE FUTURE.
AND SO IT MAY MAKE SENSE TO SET
ASIDE SOME FUNDING FOR RATE
RELIEF FOR A TIME WHEN
PROPOSITION NINETY EIGHT FUNDING
HAS DECLINED.
OKAY ANY RESPONSE -- MY LET'S GO
AT I GUESS IT SO. FOR THE OUR
PROPOSAL TO MAKE THE SEVEN
HUNDRED MILLION DOLLAR PAYMENTS
OVER TWO YEARS FOR THIS UPCOMING
BUT TO HEAR ABOUT YOUR PLUS ONE
THAT WAS IN RESPONSE TO A SCHOOL
DISTRICTS ARE PRESSED REQUEST
FOR RELIEF NOW -- I WOULD ALSO
NOTE THAT OF THE FURTHER OUT WE
DELAY THESE PAYMENTS THE LESS OF
AN EFFECT THAT WILL BE MAKE WILL
BE MAKING ON IT BECAUSE IT'S
CONTRIBUTIONS ARE BASED ON
BASICALLY PAYROLL AND I HEAR ALL
GROWS THE BE LESS OF AN EFFECT --
BUT SAME DOLLAR AMOUNT TO BE
DEDICATED ON BEHALF OF THE
SCHOOL DISTRICTS.
I DO THOUGH THINK THOUGH THERE
IS.
THAT ISSUE OF AS EXPECTED
THERE'S GOING TO BE LESS FUNDING.
BY -- SOMEWHERE SOMEHOW
EVERYBODY SAYING -- THE
ECONOMY'S GONNA.
SLOW DOWN OR WE JUST GONNA HAVE
LESS FUNDING AND THEN IT'S
REALLY GOOD TO BE A BIGGER
CRISIS.
WITH THE DISTRICTS SO QUESTION
IS AND WITH THE WITH THE
GOVERNOR'S VISION OF LOOKING
AHEAD HOW DO YOU PREPARE -- I DO
THINK THERE IS A A VERY VERY
STRONG ARGUMENT TO BE MADE ABOUT.
HOLDING HOLDING OFF ON GIVING
THAT.
IN ORDER TO GIVE IT SET IT ASIDE
AND GIVE IT WHEN IT'S MORE.
I THINK MORE DRAMATICALLY NEEDED --
SO I THINK THERE'S A REALLY
LEGITIMATE POINT TO BE MADE.
YES A GOOD MORNING A DAVID LARA
FROM THE HOUSE NO NO WORRIES OUR
DOORS HAVE WAS HERE MOST IT AS
ANY QUESTIONS YOU MAY HAVE.
VOTE IN THIS REGION ALLEY WE DID
A VERY GOOD JOB OF EXPLAINING
THE PROPOSAL IT WOULD HELP.
LOWER OUR EXISTING UNFUNDED
LIABILITY WHICH IS CURRENTLY
ESTIMATED AT ABOUT A HUNDRED AND
SEVEN BILLION.
SAID WITH THE THE PAYMENT
SCHEDULE NEXT YUBA LOWERED BY
ABOUT THREE POINT FOUR BILLION.
AND THAT THE ADMINISTRATION IS
PROPOSING A NUMBER ONE POINT
EIGHT BILLION SO OVERALL IT
WOULD LOWER ABOUT BY FIVE POINT
TWO BILLION.
AND PROVIDE BOTH SHORT TERM AND
LONG TERM RATES RELIEF AND JUST
WHAT ALSO SAID IF WE AGREE WITH
THE STATEMENT ABOUT THE STATE
PROPOSED PAYMENTS.
DUE TO THE STRUCTURE OF OUR
FUNDING PLAN WHAT WE HAVE BEEN
TELLING EVERYONE IS -- FOR
EXAMPLE FOR THE STATE EVEN IF WE
WERE TO RECEIVE ADDITIONAL FUND
WE DON'T EXPECT SAVINGS TO
MATERIALIZE FOR THE STATE UNTIL
FISCAL YEAR.
TWENTY TWO TWENTY THREE THIS IS
WHY THERE HAS BEEN SOME
DISCUSSION ABOUT THE UNCERTAINTY
OF THE SAVINGS THE SAVINGS WILL
OCCUR THERE'S A GUARANTEE TO
WILL OCCUR WHAT IS UNCERTAIN AS
TO TIMING.
WITH RESPECT TO THE STATE.
SO WITH THIS I WOULD BE HAPPY.
ANY QUESTIONS YOU MAY HAVE ON
CAL STORES AT A PROPOSAL FOR ALL
THIS.
THANK YOU MADAM CHAIR THIS WHOLE
DISCUSSION IS IS FRIGHTENING AND
DEPRESSING BUT OF GLAD THAT
WE'RE AT LEAST DRESSING IN SOME
PART.
MAYBE YOU COULD EXPLAIN -- ALEJO
HOW IT IS THAT THERE'S A 20%
CHANCE THAT THERE'S NOT GOING TO
BE ANY SAVINGS AND IN QUITE
UNDERSTAND THAT.
WELL I WILL -- I'LL DEFER TO CAL
STARS -- FOR A MORE DETAILED
EXPLANATION -- BUT IT'S NOT A
20% CHANCE OF NO SAVINGS AT ALL
220% CHANCE OF NO SAVINGS BEFORE --
TWENTY FORTY SIX AND THAT THERE
WOULD BE SAVINGS AFTER THAT
POINT BUT OF COURSE THAT'S IN A
FEW DECADES FROM NOW SO LET ME
ALL DIFFERENT TO JUST ALL OF
TRIED TO GIVE YOU A A SHORT THEN
THE BRIEF EXPLANATION BUT WHEN
YOU LOOK AT WHEN YOU TRY TO FUND.
A PENSION FUND.
A PENSION PLAN ONE OF THE KEY
ELEMENT IS AND YOU OFTEN HEAR
ABOUT IT THIS YOU HEAR ABOUT
CALPERS AND CAL STIRS EXPECT
EARNS 7% LONG TERM. ONE OF THE
SO WHEN WE FUN.
AS YOU KNOW YOU PROBABLY ALL
HAVE MONEY INVESTED IN FOR ONE
CASE.
HAS BEEN MARKETS THE INVESTMENT
RETURNS ON NOT ALWAYS 7%.
IN FACT I DON'T THINK WE'VE EVER
OWN SEVEN WE ARE IN MORE OR LESS
AND WHAT WE NORMALLY DO AS PART
OF THE FUNDING IS.
IF LET'S SAY YOU EARN LESS THAN.
SEVEN YOU DID NOT MEET YOUR
EXPECTATIONS.
IF YOU WANT TO STAY ON TRACK
WITH YOUR FUNDING.
DO YOU NEED TO HAVE A MECHANISM
TO MAKE UP THAT SHORTFALL IF YOU
WANTED TO MECHANISM WE NOW HAVE
A CAL STIRS.
THROUGH THE COST WAS FUNDING
PLAN IS WE ARE ABLE TO ADJUST
CONTRIBUTION RATES AND IN THESE
CASES WE WOULD MEAN WE WOULD
NORMALLY ASK THE STATE. TO
CONTRIBUTE MORE TO MAKE UP THE
DIFFERENCE AS PART OF A FUNDING
PLAN.
THERE WERE SOME -- SOME RULES
WERE PUT INTO PLACE FOR OUR
BOARD CAN ONLY INCREASED THE
STATE CONTRIBUTION RATE BY HALF
A PERCENT PER YEAR.
OF IT HAS SOME ADVANTAGES
BECAUSE IT PROVIDES MORE BUDGET
STABILITY TO THE STATE ONE OF
THE DISADVANTAGES IF THERE IS A
NEED TO INCREASE THE RATE BY 2%.
IT WILL TAKE US FOR YEARS BEFORE
WE DO IT.
SO WHEN YOU LOOK AT THIS THERE
COULD BE A SITUATION IF WE WERE
TO GO WITH WERE LOW PERIOD OF
INVESTMENT RETURNS WHERE.
THE MONEY GIVEN BY THE STATE WE
MAY NOT BE ABLE.
TO ACTUALLY A PROVIDER RATE
RELIEF TO THE STATE BECAUSE OF
THIS ADDITIONAL MONEY FOR MAYBE
LET'S SEE TEN OR TWENTY YEARS.
IT'S ALSO THAT THE REASON WHY
DOT THIS 20% PROBABILITY WAS
DERIVED FROM A MODEL THAT WE
HAVE A CAL STIRS THAT SIMULATES
POTENTIAL FUTURE OF THE
INVESTMENT A WORLD.
SO THERE IS A LET'S SAY LIKE
SOMETIME WE OFTEN TELL OUR BOARD
THAT THERE'S ACTUALLY 25% CHANCE
THAT WE MAY ARMED EIGHT FIVE
POINT 5% FOR THE NEXT THIRTY
YEARS.
SAID THIS SCENARIO WHERE TO
MATERIALIZE.
IT WOULD LEAD TO A SITUATION
WHERE OUR BOARD WOULD BE
REQUIRED A WOULD BE ASKED TO
INCREASE THE STATE CONTRIBUTION
RATE EVERY SINGLE YEAR FOR THE
NEXT THIRTY YEARS.
AND THIS ADDITIONAL CON THESE
ADDITIONAL FUNDS WOULD NEVER.
BE ABLE TO PROVIDE IMMEDIATE
SAVINGS TO THE STATE THEY WOULD
ALWAYS MATERIALS IN SAVINGS OVER
TIME BUT FOR THIS ANALYSIS.
SAVINGS WERE MEASURED THROUGHOUT
THE LIFE MCALISTER'S FUNDING
PLAN WHICH IS TWO THOUSAND AND
FORTY SIX SO IT'S SORT OF
DIRECTLY RELATED TO INVESTMENT
PERFORMANCE OF THE COUNSELORS
FUNDS OF IT'S IT'S A IT'S A VERY.
SIMPLE MIND THE ACT THE VARIABLE
IS THE RATE OF RETURN CORRECT
YOU IF YOU DON'T HIT THE
EXPECTED RATE OF RETURN.
THEN YOU YOU WON'T HIT YOUR
EXPECTATIONS OBVIOUSLY AND THAT
THERE'S A 20% CHANCE THAT YOU
WON'T HIT THAT BEFORE TWENTY
FORTY SIX IS THAT.
ACCURATE.
NO I THINK IT'S MORE THERE'S A
20% CHANCE THAT DIFFER RETURNS A
LOW ENOUGH IT MAY NOT ALLOW THE
STATE TO VISIT TO TO THE PENNY
SAME SO IT WILL HAVE TO BE MORE
LIKE YOU TALK ABOUT SOMETHING
THE 5% RANGE THEN IT WOULD.
NOT ALLOWED TO STATE TO READ TO
TO BASICALLY YEAH.
IT'S A VERY COMPLICATED FUNDING
PLAN WE HAVE SO THE TO CREATE
SOME [inaudible]
OKAY [inaudible]
OKAY.
I THINK WE'RE GOOD.
WELL.
WITH.
NIXON'S CALPERS.
OKAY NO CALPERS [inaudible]
GOOD MORNING.
THANK YOU AGAIN MADAM CHAIR --
SO THAT THIS WAS PART OF THAT
THE TWENTY NINETEEN TWENTY
GOVERNOR'S BUDGET.
UP THE WE HAVE PROPOSED A THREE
BILLION DOLLAR GENERAL FUND
LITTLE PENSION PAYMENT TO
CALPERS -- IN EIGHTEEN NINETEEN
OF THE PROPOSAL WE WILL BE AB
DEDICATING V. AND THE PAYMENT.
TO HELP OUR STATE PLANS BASED ON
THE SHARE OF EACH PLANS.
GENERAL FUND CONTRIBUTIONS THAT
ARE FUNDED I TYPICALLY -- IT'S
ESTIMATED THAT THESE -- THIS
PAYMENT WILL RESULT IN A SAVINGS
OF SEVEN POINT TWO BILLION
DOLLARS OVER THE NEXT THREE
DECADES.
I'M WHICH WILL BRING DOWN THE
CONTRIBUTION RIGHT TO PROVIDE
SOME RELIEF TO STATE DEPARTMENT --
FOR BIRD PENSION CONTRIBUTIONS.
OF I ALSO WANTED.
TO RESPOND TO SOME COMMON ALSO
MADE AND AND THE AGENDA.
OF THEIR THERE WAS A DISCUSSION
ABOUT -- SORT OF THE EQUITY OF
THE GENERAL FUND IS SUPPOSED TO
MAKE THE PAYMENT BUT WOULDN'T BE
SAVINGS BECAUSE THERE ARE MANY
OTHER FUNDS THAT.
THE PAY INTO THESE FIVE STATE
PLANS -- WHAT WE TRIED TO DO
WITH A PROPOSAL SO SORT OF
RECONCILE -- MAKING SURE THAT
THE JONATHAN DOES RECEIVE SOME
OF THE BENEFIT THAT IT PERTAINS
BUT ALSO NOT PROVIDING OR NOT I
HAVE PUTTING TOO MUCH PRESSURE
ON OTHER FUNDS -- RELATED TO THE
PROPOSAL -- STIFFER REFERENCE A
DEFECT IN THE AGENDA ITEM WE DID --
PREVIOUSLY MAKE A SIX BILLION
DOLLAR OF THE MODEL PENSION
PAYMENT TO CALPERS I'M IN.
TWENTY SEVENTEEN EIGHTEEN I'M
THIS PYMENT WAS MADE THROUGH A
LOAN THAT WAS TAKEN OUT FROMTHE
SURPLUS MONEY INVESTMENT FUND
WHICH HOUSES -- EXCESS CASH
RESERVES OF FOR ALL STATE
DEPARTMENT OR STATE FUNDS -- SO
SO THIS AT THE WAY THAT WE
STRUCTURED THE SIX BILLION
DOLLAR PAYMENT A COUPLE YOUR
LETTER LAST YEAR -- IT WAS TO BE
DEDICATED TOWARDS THAT THE COST
OF A DECISION THAT WAS MADE BY
THE CALPERS BOARD A COUPLE OF
YEARS AGO TO REDUCE THEIR SOON
RATED IT MUST RETURN -- BY
REDUCING THAT SEEM GREAT RETURN
THERE'S A GAP NOW OF OF FUNDING
THAT CAN BE PROVIDED TO THE TO
AT PENSIONS WHICH AND HAS TO BE
FILLED BY EMPLOYERS SUCH AS THE
ALL WITH THE STATE DEPARTMENT'S --
SO THE WAY THAT THE INDUSTRY
CAME IT WAS STRUCTURED.
IT ALLOWED AND IT RESULTED IN
SAVINGS THAT BANDS THAT WERE
LARGER OVER A SHORT PERIOD TIME
FOR WHICH THE TIME THAT ALL
FUNDS WERE EXPECTED TO REPAY THE
LOAN THAT FUNDED IT --
ALTERNATIVELY -- THIS PROPOSED
PAYMENT IT'S IT'S BEING PAID TO
PROVIDE DOLLARS IS BEING PAID
OVER A LONGER PERIOD OF TIME SO
WILL BE MORE IN SAVINGS BUT YOU
WON'T SEE AS MANY SAVINGS OR
BOARD SORT OF THE NEXT TEN YEARS
WHICH IS -- OVER THE TIME PERIOD
THAT WE WOULD PROBABLY AFFECTS
WITH ALONE -- SO JUST WANT TO
NOTE THAT WE ARE DECISION TO NOT
INTRODUCE ALONE COMPONENT TO
HAVE OTHER FUNDS REPAY FOR THEIR
SHARE THE BENEFIT THAT THE
GENERAL FUND IS MAKING -- IS
BECAUSE WE SEE A TO A PORTION
AND PROPORTIONATELY LOWER
BENEFIT OVER THIS HYPOTHETICAL
LOAN REPAYMENT TERM THAT WOULD
PROVIDE LEAP RELIEF TO THEM AS
THE REPAYING THE LOAN -- OKAY SO
THE SECOND PAGE OF YOUR HAND OUT
PROVIDES OUR COMMENTS ON THIS
PROPOSAL -- JUST TO KIND OF
REITERATE A LITTLE A LITTLE BIT
OF THE BACKGROUND TO MAKE SURE
WE'RE ON THE SAME PAGE SO THE
ADMINISTRATION IS PROPOSING A
THREE BILLION DOLLAR PAYMENT --
USING GENERAL FUND FUNDING AND
DISTRIBUTING DISTRIBUTING IT
AMONG -- FOUR OF THE FIVE PLANS
WITHIN CALPERS SO CALPERS IS NOT
JUST ONE PLAN IT'S IT'S
DIFFERENT DEPENDING ON DON'T YOU
KNOW DIFFERENT KINDS --
CLASSIFICATIONS OF STATE
EMPLOYEES OF FOR EXAMPLE PEACE
OFFICERS AND FIREFIGHTERS HAVE
ONE PLAN WITHIN CALPERS.
HIGHWAY PATROL OFFICERS HAVE A
DIFFERENT PLAN.
I'M SO THE FIVE BILLION THAT'S
RIGHT THE THREE BILLION DOLLAR
CONTRIBUTION WOULD BE
DISTRIBUTED AS THE TABLE SHOWS
IN THE FIRST COLUMN AND IT WOULD
BE DISTRIBUTED TO THOSE PLANS
THAT RECEIVE GENERAL FUND
PAYMENT OF FOUR OF THE FIVE
EXCLUDING HIGHWAY PATROL.
THE NET SAVINGS THAT WOULD BE
REALIZED AS A RESULT OF THIS
PLAN ARE IN THE FINAL COLUMN OF
THE TABLE AND SO YOU CAN SEE
THAT THE SIX POINT THREE BILLION
DOLLARS WOULD IN SAVINGS WOULD
BE DISTRIBUTED AMONG.
FOUR OF THOSE PLANS.
THE GENERAL FUND WOULD RECEIVE
ABOUT THREE BILLION DOLLARS OF
THE SIX POINT THREE BILLION
DOLLARS IN SAVINGS AND THEN
OTHER FUNDS INCLUDING FEDERAL
FUNDS FOR EXAMPLE AND SPECIAL
FUNDS.
WOULD RECEIVE THE REMAINING
THREE POINT THREE BILLION
DOLLARS IN SAVINGS.
BUT NOTABLY THE BECAUSE HIGHWAY
PATOL IS EXCLUDED FROM THE PLAN
BECAUSE IT DOES NOT RECEIVE ANY
GENERAL FUND PAYMENTS THAT'S WHY
IT'S EXCLUDED FROM THE PLAN --
THE MAJOR FUND THAT PAYS HIGHWAY
PATROL OUT PENSION COSTS IS THE
MOTOR VEHICLE COUNT ONE OF THE
TWO MAJOR FUNDS IT PAYS IT.
AND SO MOTOR VEHICLE ACCOUNT AS
A RESULT -- ACHIEVES LESS
SAVINGS THAN IT WOULD UNDER AN
ALTERNATIVE WHERE HIGHWAY PATROL
WERE INCLUDED IN THE PLAN.
SO THE BOTTOM OF THE PAGE
PROVIDES OUR ASSESSMENT -- WE
NOTE THAT YOU KNOW IN CONTRAST
TO THE DISCUSSION WE JUST HAD
ABOUT CAL STARS WERE RE SAID
THERE WAS ONLY AN 80% CHANCE OF
ACHIEVING SAVINGS OVER THE NEXT
TWO DECADES.
THIS CALPERS PLAN HAS OVER 99%
CHANCE OF ACHIEVING SAVINGS OVER
THE NEXT FEW DECADES.
IMPORTANT TO NOTE AND THEREFORE
YOU KNOW IT -- IS AT AND YOU
KNOW A AND A SIGNIFICANT BENEFIT
OF THIS PROPOSAL.
THE MAIN REASON FOR THAT.
YEAH THE MAIN REASON FOR THAT
HAS TO DO WITH THE RATE SETTING
AUTHORITY -- BETWEEN THE TWO
SYSTEMS -- SO WALL CALPERS.
CITING AUTHORITY AND IF IT
EXPERIENCES AND INVESTMENT
LOSSES WE'RE JUST TALKING ABOUT
WITH CAL STAR IS A CAN ADJUST
THE RATES CORRESPONDINGLY AND
MAKE UP FOR THAT LOSS -- CAL
STARS DOES NOT HAVE THAT FULL
LATITUDE -- UNDER STATE LAW.
BUT ON ANYTHING.
SO IF IT.
GOES BELOW AS WAS MENTIONED
EARLIER BELOW THE SEVEN YASSER
BECAUSE BELOW THE SEVEN THEN ALL
I CAN.
SAY.
WELL ARE THE ULTIMATE SAVINGS --
WE HAVE AN ESTIMATE OF SIX POINT
THREE ULTIMATELY IT WILL BE
BASED ON WHAT THE FUND ACTUALLY
OR INSULT.
THAT IS A VARIABLE AS TO HOW
MUCH YOU WILL SAVE BUT UNLIKE
THE CASTER SITUATION IT'S
VIRTUALLY GUARANTEE THAT THERE
WILL BE SAVINGS.
OF JUST DEPENDING ON HOW GOOD
THE RETURNS ARE.
AGAIN IT'S BECAUSE OF THAT
ABILITY. TWO CAN MAKE UP A LOT
AS A MAKE UP FOR THEM YEAR AFTER
YEAR BY YEAR.
WE WE S. OF CALPERS IS NOT HAVE
THE RESTRICTIONS THAT MR LAMBRO
TALK ABOUT WHERE YOU CAN ONLY
INCREASE THE RATE BY HALF
PERCENT PER YEAR.
IF WE NEED TO WE INCREASE THE
RATES AND THE SO YEAH WE FORWARD
SETTING AUTHORITY AND THAT IS
WHY -- ONCE THE MONEY IS IN THE
PLAN THE ADDITIONAL EARNINGS
THEY GENERATE WHATEVER THEY ARE
WILL BE A SAVINGS [inaudible]
SENATORS.
IS THERE ANYTHING THAT YOU IT.
MORE THAT YOU WOULD LIKE TO SAY.
I DON'T THINK SO NO OKAY.
I JUST SPOKE I'M SORRY COULD YOU
CLARIFY.
OF THE CAL -- I WANT TO ASK
ABOUT THE CLASSIFIED EMPLOYEES.
YES RIGHT I'M SORRY COULD JUMP
BACK SURE YEAH.
I JUST AT A HIGH LEVEL SO WE IT
AND WE ARE PROPOSING AT A
PAYMENT TOWARDS.
THE CASTER SYSTEM NOT THE
CALPERS SCHOOL CLASSIFY PLAN I
WANT TO NOTE THAT THE UNFUNDED
LIABILITY FOR IF THE CLASS I
SCHOOL PLAN THAT CALPERS IS --
IS MUCH SMALLER THAN UNFUNDED
LIABILITY FOR CAL STIRS SO THE
ART OUR INTENTION IS TO SORT OF
DEDICATE THE PAYMENT TOWARDS THE
BIGGER UNFUNDED LIABILITY.
AND WE WANT TO NOTE THAT THIS
WOULD ALSO MAKE WHISKEY WOULD BE
IMPACTING SCHOOL EMPLOYERS
REGARDLESS OF WHETHER GOES TO
THE CALPERS SCHOOL PLAN OR
THROUGH CAL STIRS.
ALL RIGHT.
WELL THANK YOU VERY MUCH
[inaudible]
ISSUE.
SIX WORLD TRAILER BILL LANGUAGE
AND CALPERS [inaudible]
FIFTY FOUR YES.
CAMPAIGN.
YEAH.
GOOD AFTERNOON.
I'M PATRICK CAMPING WITH THE
DEPARTMENT OF FINANCE -- MAN
CHAIR MEMBERS OF THE COMMITTEE --
THE PROPOSAL FOR YOU INCLUDES.
THE PROPOSAL FOR YOU INCLUDES
CURRENT YEAR FUNDING TO PAY OFF
TWO OF THE STATE'S LONG STANDING
DEBTS -- WHICH ARE THE JUNE TO
JULY PAYROLL DEFERRAL AND THE
CALPERS FOURTH QUARTER DEFERRAL --
LITTLE BIT OF BACKGROUND BACK
DURING THE RECESSION -- THE
STATE NEEDED SOME MONEY SO IT
LOOKED AT THE LAST TWO BILLS
THAT HAD TO PAY FOR THE FISCAL
YEAR WHICH WAS.
JUNE PAYROLL AND THIS -- FOURTH
QUARTER.
AMEN TO CALPERS AND THEY PUNTED
THOSE THE NEXT FISCAL YEAR SO --
DURING THE SESSION IS A MONEY
THE ONLY PAID ELEVEN MONTHS OF
PAYROLL AND ONLY PAID. THREE
QUARTERS OF THIS PAYMENT THIS IS.
KIND OF OFF THE BOOKS THIS IS
TRANSPARENT FOR DEPARTMENTS
STATE EMPLOYEES STILL GOT PAID --
CALPERS STILL GOT THEIR FUNDING
PAYMENT SO.
USER REALLY BUDGET GIMMICKS --
THAT HAVE BEEN AROUND FOR A
LITTLE WHILE -- SO -- THE
PROPOSAL INCLUDES NINE HUNDRED
AND SEVENTY THREE BILLION
DOLLARS OF GENERAL FUND. NINE
SORRY NINE HUNDRED SEVENTY THREE
MILLION.
MILES IN THE NINE HUNDRED
SEVENTY THREE MILLION OF GENERAL
FUND. SEVEN HUNDRED AND SEVEN
MILLION OF GENERAL FUND FOR
THESE -- CALPERS DEFERRAL -- THE
REASON WE WANT TO THE MAIN
REASON WE WANT TO PAY THIS OFF
OTHER THAN.
JUST BEING GOOD THIS CALL POLICY
IS -- DUE TO SOME FUNDING CHEST
THAT OCCURRED MOVING -- THREE
HUNDRED MILLION DOLLARS FROM
GENERAL FUND PAYROLL TO OTHER
FUNDS.
IS THIS RESULTS AND THE STUFF
FOR THE JUNE JULY PAYROLL TO FOR
ALL BEING. THREE HUNDRED MILLION
DOLLARS CHEAPER THIS YEAR.
SO BARRING ANY OTHER.
FUNDING SHIFT OF THIS MAGNITUDE
WHICH WE DON'T FORESEE HAPPENING.
THIS IS.
AS CHEAP AS THIS IS GOING TO GET
THIS YEAR IT'S IT'S ON SALE
RIGHT NOW BASICALLY [inaudible]
SO -- IS THE PHONE IN THE
PROPOSAL BEFORE YOU I CAN ANSWER
ANY QUESTIONS THAT YOU HAVE --
RELATED TO EITHER OF THESE DEBTS.
AS TO THE FINAL PAGE OF YOUR
HAND OUT PROVIDES OUR COMMENTS
ON THESE TWO DEFERRALS -- AT THE
TOP OF THE PAGE I AM SHOWING A
SUMMARY OF ALL OF THE
OUTSTANDING TO FOR ALSO THE CAN
STATE HOUSE AND ESSENTIALLY THIS
IS BECAUSE WE LAID OUT ANALYSIS
RECENTLY WORRISOME OF COMPARED.
THE DEFERRALS THAT THE
ADMINISTRATION PROPOSES I'M
DOING AGAINST SOME OF THE OTHER
TO FOR ALL OF THE STATE ALREADY
HAS A THAT THE STATE ARE STILL
HAS -- ON THE BOOKS SO BUT I
WILL ALSO ADD THAT THE STATE HAD
BILLIONS OF DOLLARS OF DEFERRALS
RELATED TO EDUCATION PREVIOUSLY
THAT HAVE ALL BEEN -- TOTALLY
REPAID SO THE STATE HAS ALSO
MADE IMPORTANT PROGRESS IN THIS
AREA -- SINCE THE LAST RECESSION
THE THREE REMAINING CATEGORIES
OF PEARLS THAT ARE STILL
OUTSTANDING ARE THE PENSION AND
PAYROLL DEFERRALS AS THE
ADMINISTRATION HAS PROPOSED
REPAYING BUT THEN ALSO A SET OF
DEFERRALS.
RELATED TO THE MEDIC HEALTH
PROGRAM -- AND THE WAY THAT BOTH
THE PROGRAM IS BUDGET AND ALSO
HOW -- COSTS ARE PAID WITHIN
THAT PROGRAM.
SO -- OUR ASSESSMENT OF THE
GOVERNOR'S PROPOSAL FOUND --
THAT WE EVALUATED THE PROPOSAL
ESSENTIALLY ON THREE DIFFERENT
CRITERIA. TO WHAT EXTENT DOES IT
IMPROVE THE STATE'S FISCAL
POSITION TO WHAT EXTENT DOES IT
IMPROVE SORT OF TRANSPARENCY AND
STATE BUDGETING PRACTICES.
AND THEN TO WHAT EXTENT IS IT
REDUCE ADVERSE CONSEQUENCES ON
OTHER ENTITIES.
SO I'M DOING THESE TWO DEFERRALS
OF THE ADMINISTRATION PROPOSES
WOULD IMPROVE THE STATE'S --
FISCAL POSITION BECAUSE
ESSENTIALLY BY UNDOING THESE
DEFERRALS TODAY IT GIVES THE
STATE THE OPTION TO DO THEM
AGAIN IN THE FUTURE WHICH HAS
SOMETHING LIKE A BENEFIT SIMILAR
TO RESERVES.
IT ALSO MODERATELY IMPROVES THE
STATE'S FISCAL POSITION I'M
SORRY OP FINANCIAL TRANSPARENCY
AND BUDGETING PRACTICES.
BECAUSE IT BRINGS OUR ACCOUNTING
DOCUMENTS INTO ALIGNMENT WITH
BUDGETARY DOCUMENTS.
BUT IT DOESN'T HAVE ANY EFFECT
ON OTHER ENTITIES -- THAT'S
BECAUSE STATE EMPLOYEES ARE
STILL PAID RIGHT ON TIME ARE THE
PAYROLL DEFERRALS REALLY JUST AN
ACCOUNTING ACTION.
AND WITH RESPECT TO THE PENSION
TO FOR ALL CALPERS HAS INDICATED
THAT THERE REALLY IN DIFFERENT
BETWEEN RECEIVING THEIR PAYMENT
YOU KNOW IF AT THE END OF JUNE
VERSES IN A FEW DAYS LATER AT
THE BEGINNING OF JULY.
SO WE LOOKED INTO THESE OTHER
DEFERRALS AND ASKED YOU KNOW DO
THEY USE PERFORMED BETTER
AGAINST THESE.
CRITERIA FOR EVALUATION AND WHAT
WE FOUND IS THAT UNLIKE THE TO
THE PENSION A PENSION PAYROLL TO
FOR ALL THE DON'T HAVE THESE
ADVERSE CONSEQUENCES.
BUT THERE IS ONE SET OF
DEFERRALS WITHIN THE MEDICAL
PROGRAM THAT IS HAVING SOME
LIMITED ADVERSE CONSEQUENCES FOR
PROVIDERS.
SPECIFICALLY RURAL HOSPITALS IN
PARTICULAR -- AND PROVIDERS A
FAMILY PLANNING SERVICES WHERE
IS -- AS A RESULT OF THE DELAYED
PAYMENTS THEY CAN FACE SOME CASH
FLOW ISSUES I DON'T WANT TO
OVERSTATE HOW SIGNIFICANT THIS
IS BUT IT IT IT IT DOES HAVING
SOME LIMITED MET -- ADVERSE
EFFECTS.
SO WE HAVE A RECOMMENDED
ALTERNATIVE WHICH WOULD BE -- TO
NOT USE THE ONE POINT SEVEN
BILLION DOLLARS TO UNDO.
THE CALPERS -- DEFERRAL AND THE
PAYROLL TO FOR ALL.
AND TO INSTEAD ON DO THESE
SPECIFIC DEFERRALS IN THE
MEDICAL PROGRAM THAT ARE HAVING
THESE ADVERSE CONSEQUENCES THAT
WOULD COST ABOUT THREE HUNDRED
MILLION.
AND USE THE REMAINING FUNDS TO
BUILD MORE RESERVES BUILDING
MORE RESERVES -- WOULD BE.
WHAT DID SHE OF JUST A LITTLE
BIT MORE AND THAT GENERAL FUND
SAVINGS ON AN ONGOING BASIS THAN
ON DOING THESE DEFERRALS -- IT
WOULD BE LESS ADMINISTRATIVELY
COMPLEX TO IMPLEMENT THAN ON
DOING DEFERRALS AND THEN RE
DOING THEM AGAIN THE FUTURE AND
OF COURSE AS I ALREADY MENTIONED
THIS HAS THE ADDED ADVANTAGE OF
REDUCING THOSE ADVERSE
CONSEQUENCES FOR SOME MEDICAL
PROVIDERS.
YES SORRY I DON'T I DON'T HAVE
THE HAND OUT BUT JUST A COUPLE
THINGS I WANT TO SPEAK -- TO I
DON'T [inaudible]
THANK YOU [inaudible]
NO [inaudible]
ANDERSON THANK -- YES SO.
S. SPEAKING TO THE
ADMINISTRATIVE -- SAYS WITH ON
DOING SOME OF THESE DEFERRALS --
I CAN'T SPEAK TO THE AND DOING
THE MEDI CAL THE FOR ALL I DON'T.
THAT'S A I GET TO PLAY THERE I
GUESS.
BUT WHAT I DO WANT TO SAY SOME
ONE DAY -- BUT I DO WANT TO
SPEAK -- TO THE ADMINISTRATIVE
EASE OF ON DOING THESE DEFERRALS
THAT I DO KNOW ABOUT -- I'M
DOING THESE BECAUSE THEY'RE KIND
OF OFF THE BOOKS AND THE WAY
THEY'RE ADMINISTERED.
THERE ARE SIMPLE IS JUST.
NOT WE JUST DON'T DO THEM.
IT'S DONE THE WORKLOAD GOES WAY
THAT THAT GOES AWAY.
THIS IS PRETTY MUCH AS
ADMINISTRATIVELY SPEAKING THIS
IS ALMOST AS EASY AS IT GETS ITS
WORST.
AND THAT'S PART OF WHY WE WE
LOOK AT THESE TO FOR ALL THIS IS
KIND OF LOW HANGING.
FOR RIGHT NOW FOR US AS FAR AS
PAYING OFF DEBTS -- THE LA --
DATES IN THE RIGHT OUT IN THE
RIGHT UP TALK A LITTLE BIT ABOUT
HOW THE MACCALLUM WANT -- THAT
MIGHT BE A LITTLE BIT MORE
ADMINISTRATIVELY DIFFICULT TO
UNWIND AGAIN I DON'T WANT.
TO SPEAK TO THAT -- SO THAT'S
ONE THING WITH THIS ONE AND THEN
WE KEEP TALKING ABOUT.
SAVINGS WITH THESE DEFERRALS BUT
THE WAY THE PENSION TO FOR A
WORKS AND THE JUNE TO JULY
PAYROLL THE FOR THE FOR A WORKS
IS.
IT.
I DON'T KNOW THAT WE REALLY WANT
TO LOOK AT THIS AS SAVINGS SO AS
AS PAYROLL INCREASES YES YOU ARE
DIFFERENT MORE -- GENERAL FUND
DOLLARS EVERY YEAR.
BUT THAT DEFERRAL IS REALLY JUST
THE DAT GROWING IT'S NOT.
TRUE WE DON'T LOOK AT IT IS TRUE
SAVINGS SO THAT'S JUST SOMETHING.
ONE THROUGHOUT THE EARNED
[inaudible]
OKAY [inaudible]
YOU UNDERSTAND.
OF NOTE THEN ACTUALLY.
THE SERVER RUNS THAT THAT'S KIND
OF MY POINT.
IS THE IF YOU TO TALK ABOUT THIS
IF YOU TRY TO COME TO SOME SO
YOU HAVE I SEE HEAD SHAKING.
YEAH AFFIRMATIVE AND I'M I THINK.
OUR PARTNERS OF THE LA -- WE'VE.
BEEN WORKING ON THIS AND YOU
KNOW IT'S IT'S YOUR PRAGUE HAVE
ON HOW.
WE WANT.
TO WHAT YOU WANT TO PAY OFF AND
HOW YOU WANT TO SPEND THIS THE
THE THE THE MAIN THING THAT I
THINK WE WANT TO COMMUNICATE.
WITH THESE DEFERRALS AGAIN
THEY'VE KIND OF CROSS OVER TO
MEDIC OUR AND I DON'T GO.
BUT THE MAIN THING WITH THESE
AND ONE OF THE REASONS WHY
THERE'S SOME APPETITE FOR THIS
RIGHT NOW IS -- I I I WANT TO
REITERATE THAT.
THAT THIS IS THREE HUNDRED
MILLION DOLLARS CHEAPER THIS
YEAR.
IT WILL NEVER IT WILL NOT BE
THIS CHEAP AGAIN.
I WAS A CHEAP I MEAN WE'RE
TALKING THE LESS EXPENSIVE THEM
BUT ANY ES IN YOUR AND YOUR
RESPONSE THAT IS.
IT'S NOT MY INTENTION TO
OVERSTATE OUR DIFFERENCES HERE I
THINK -- YOU KNOW AS WE'VE SAID
SORT OF AND BROADER BIGGER
PICTURE REPORTS WE AGREE WITH
THE GOVERNOR'S APPROACH THIS
YEAR TO ADDRESS -- SO THE
STATE'S OUTSTANDING DEBTS AND
LIABILITIES USING A SIGNIFICANT
PORTION OF THE SURPLUS AND SO.
REALLY WE'RE JUST PRESENTING
SOME ALTERNATIVES FOR
LEGISLATIVE CONSIDERATION THAT
MIGHT MAKE A LITTLE BIT MORE
FISCAL SENSE -- BUT I IT'S NOT
MY INTENTION TO OVERSEE THE
DIFFERENCES BECAUSE WE DO
GENERALLY HAVE YOU KNOW A
POSITIVE OUTLOOK ON THE
GOVERNOR'S APPROACH.
THIS IS JUST FOR ME.
YOU GUYS BOTH SEEM EXTREMELY
SMART.
THE THESE THE I AM HAVING A HARD
TIME SORT OF TELLING THE
DIFFERENCE -- AND AND I AND I
APPRECIATE YOU GIVE US A HAND
OUT WITH ADVANTAGES IN THE
ALTERNATE RECOMMENDATION I JUST.
IT IS A POLICY MATTER ACT.
MAYBE JUST CAN'T UNDERSTAND IT
AND SO MAYBE IF IT'S BROKEN DOWN
FURTHER.
JERRY I WILL BE ABLE TO SO WE
HAVE TO MAKE A DECISION.
JUST JUST HARD FOR ME TO SEE IT
MENTIONED DISADVANTAGES.
HELLO MY COLLEAGUES LIKE BUT YES
SO -- SPEAKING TO THESE ALL HAVE
TO THINK WE'RE HOLDING THIS WE
WILL ALSO OPEN SO WE I DON'T
HAVE TO DO IT AS WE SIT HERE --
I DON'T KNOW IF IT WOULD BE
HELPFUL BUT I CAN TALK TO SOME
OF OUR MEDI CAL FOLKS AND SEE
KIND OF WHAT THEIR WAY IN IS ON
THE LA US PROPOSAL AND SEE --
ADMIN I THINK OUR MAIN CONCERN
WITH IT IS HOW ADMINISTRATIVELY
IT WOULD WORK TO UNWIND THAT.
DEFERRAL COMPARED TO THE THIS --
BUT I CAN GET SOME MORE
INFORMATION TO YOU I'M NOT A
PROBABLY I DON'T SPEAK FOR THEM
BUT ALL.
I'LL SEE WHAT KIND OF THAT
SOMEBODY KNOWS MORE ABOUT IT
THAN I DO. FOR THE CHAIR OR
MAYBE THERE'S SOME IS IT MORE
COMPLICATED TO DO SOME HYBRID.
OF THIS.
SOMETHING THAT WOULD ADDRESS --
THE MEDICAL PROVIDERS THE ISSUES
AT THAT THEY'RE FACING.
UP I'M JUST.
AGAIN WITHOUT KNOWING THE
TECHNICALITIES BUT IT SEEMS TO
ME.
THE IF WE CAN BE HELPFUL. TO
THOSE MEDI CAL OF PROVIDERS
THAT'S A GOOD THING TO DO -- NOT
JUST [inaudible]
OKAY [inaudible]
THE JUST THE SAVINGS PART OF IT
BUT ACTUALLY DO SOME GOOD
BECAUSE MEDICAL PROVIDERS IN THE
ISSUES OF THE PROBLEMS THEY FACE
ARE ALWAYS COMING UP IN ONE WAY
OR ANOTHER.
IT SEEMS TO ME.
IT'S NICE TO HEAR THAT THERE IS
A WAY. TO ADDRESS SOME OF THEIR
CONCERNS.
THROUGH THIS PROCESS AND I'M
GLAD TO SEE THAT WE COULD
ACTUALLY.
MAKE THESE KINDS OF CONNECTIONS
SO.
MAYBE IT MAKES IT MORE
COMPLICATED BUT IF IT DOES THAT
ANOTHER GOOD.
OR PEOPLE IN THE STATE AND
DIGITAL LOOK AT CHECK OKAY.
YES. TO MAKE LIFE MORE
COMPLICATED.
IT'S A SECURE FOR RIGHT YES.
ALRIGHT WELL THANK YOU THANK YOU
VERY VERY MUCH THANK YOU BRIDGET.
YES LET'S -- THIS.
YEAH I CERTAINLY I CERTAINLY
[inaudible]
OKAY THE OKAY GOING TO ISSUE.
EIGHT THE AGRICULTURAL LABOR
RELATIONS BOARD
[inaudible]
GOOD AFTERNOON.
CHIEF ADMINISTRATIVE OFFICER FOR
THE AGRICULTURAL LABOR RELATIONS
BOARD OKAY.
THANK YOU -- FOR HAVING THE
OPPORTUNITY TO PRESENT THIS
PROPOSAL TO YOU TODAY YOUR STAFF
IS DONE AND THE JOB AND
SUMMARIZING THE PROPOSAL.
SO I'LL KEEP MY COMMENTS BRIEF.
THIS THE PROPOSAL BEFORE YOU --
REQUEST ON GOING FUNDING FOR TWO
AND ONE HALF POSITIONS MAKING
PERMANENT AN ATTORNEY.
FOR AND ONE AND A HALF HEARING
OFFICERS WHICH ARE JUDGES.
THESE POSITIONS WERE ORIGINALLY
ESTABLISHED AS LIMITED TERM AND
THEN TWENTY FIFTEEN TWENTY
SIXTEEN BUDGET.
AIR TO THE ESTABLISHMENT OF
THESE POSITIONS IN TE FIFTEEN
SIXTEEN BUDGET ACT.
IT WAS TAKING APPROXIMATELY TWO
HUNDRED TO SIX HUNDRED DAIS TO
HAVE A HEARING TO SCHEDULE A
HEARING.
WITH THESE ADDITIONAL POSITIONS
WHICH ONLY EQUATES TO A TOTAL OF
THREE STAFF.
WE'VE BEEN CONSISTENT WITH THE
INITIAL HEARING BEING SCHEDULED
WITHIN SIXTY TO NINETY DAYS AND
ENSURES THAT WE HAVE CONTINUITY
IN OUR CASE LITIGATION
SCHEDULING OF HEARINGS AS SOON
AS POSSIBLE ALLOWS THE PARTIES
TO BE ABLE TO PRESENT THEIR
CASES.
RECEIVE A DETERMINATION AND ANY
REMEDIES TIMELY.
AND EFFICIENTLY.
AND IT ALL IN SUPPORT OF THE
AGRICULTURAL LABOR RELATIONS ACT.
I LOOK FOR TO ANSWERING YOUR
QUESTIONS.
OKAY WE HAVE THE LA -- GOOD
AFTERNOON TEHAMA DEALER WE HAVE
NO COMMENTS ON THE PROPOSAL OKAY --
WELL -- QUICK QUESTION -- THE
THE THE ATTORNEY POSITION WHAT
DOES THAT ATTORNEY ADVISE THE
BOARD ADVISE APPLICANTS HOW TELL
ME WITH THE ATTORNEY WOULD DO.
SURE THE ATTORNEY FOR HAS
MULTIPLE FUNCTIONS IN THIS
ORGANIZATION HE IS AT THAT
POSITION IS SHE HERE SHE IS --
THE POSITIONS AT THAT POSITION
ADVISES THE BOARD ON GENERAL
CASE STRATEGY IN LITIGATION THE
POSITION ALSO OVERSEES THE THREE
SENIOR BOARD COUNCILS WHO -- SO%
HE'S LIKE THAT THAT THAT
POSITION IT'S FILLED CURRENTLY
WITH THAT THAT WITH THE
GENTLEMAN -- THAT POSITION IT IS
ALSO THE LEAD ATTORNEY TO ENSURE
TRAINING AND EDUCATION OF THE
SENIOR BOARD COUNCILS TO ENSURE.
THAT THAT POSITION IS NOT AN
ADVOCATE IT'S AN ADVISER TO THE
IT'S AN ADVISER I SEE OKAY THE
VISOR AND IT ALSO -- CONDUCTS
OUR CASE LITIGATION IT HE HE
THAT POSITION WILL GO BEFORE THE
APPELLATE COURTS -- ALL THE WAY
UP TO THE CALIFORNIA STATE
SUPREME COURT AND IN DOES
TESTIMONY.
IN TRIES CASES.
OKAY NOW I'M CONFUSED SO THAT
THE ATTORNEY ADVISES THE BOARD
AND THEN DEFENDS THE BOARD'S
DECISION IS THAT.
YES YES THAT IS CORRECT THE
DEFENSE THE BOARD'S DECISION ALL
UP TO INCLUDING THE SUPREME
COURT THAT IS CORRECT.
OKAY THANK YOU YOU'RE WELCOME.
OKAY YES IT WAS.
QUITE A REDUCTION IN YOUR NUMBER
OF DAYS WITH LIMITED PERSON OUT
AND BACKUP COMPLEMENT YOU.
BUT THE HUBBY ACHIEVED THAT WITH
SUCH FEW RESOURCES. TWO HUNDRED
SIX HUNDRED THAT RANGE.
YOU'VE COME DOWN QUITE A WAYS
THERE'S A MULTIPLE FACTORS THAT
HAVE REDUCED DOES THE SCHEDULING
OF THE HEARINGS ONE IS HAVING
FULL STAFF OF THREE POSITIONS.
THE OTHER THING IS IS WITH THE
ADDITIONAL STAFFING WE'VE BEEN
ABLE TO ESTABLISH AS PRE HEARING
SETTLEMENT CONFERENCES AND CASE
SETTLEMENT CONFERENCES WHICH
ALLOWS THE HEARING TO BE MORE
EFFECTIVE WHEN WE ACTUALLY
CONDUCT THOSE HEARINGS.
AND HOW MAY REGIONAL OFFICES
YEAH.
TWO THREE REGIONAL OFFICES WE
HAVE TO REGIONAL OFFICES AND
THREE SUBREGIONAL FOR A TOTAL OF
FIVE OFFICES.
THANK YOU YOU'RE WELCOME --
ALONG THOSE LINES I I ALSO IT'S
VERY NOTICEABLE AND
COMPLEMENTARY FOR YOU TO REDUCE
IT.
OUT WITH THE WITH THE STAFF.
IS THERE.
WITH THE ADDITIONAL STAFF IS --
CAM THE OF WHERE YOU'RE AT NOW
629-0 DAY TIME FRAME.
THAT'S NOT GOING TO BE REDUCED
FURTHER WITH THE ADDITIONAL
STUFF.
NOW IT WILL NOT BE REDUCE
FURTHER IN THE REASON FOR THAT
IS THEIR SPECIFIC SPECIFIED TIME
LINES THROUGH THE PROCESS WHERE --
THERE'S SPECIFIC FILINGS THAT
HAVE TO OCCUR AND THERE'S A TIME
LINE FOR THAT FILING -- SO THAT
IS AT THE SIXTY TO NINETY DAYS
IS.
THE BEST CASE SCENARIO WITH ALL
THOSE TIME LINES THAT ARE IN
EFFECT ALREADY.
SO YOU DON'T NEED MORE STAFF IN
TO REDUCE IT.
FROM THE SIXTY TO NINETY DAYS.
TIME PERIOD I THINK THEN THE
STAFFING OF THE THREE PER HAVING
THREE PERMANENT STAFF WOULD
ALLOW THAT THEY CAN.
THE PROCESS TO GO AS IDENTIFIED
IN THE ACT ALARY APPLIQUE YES HE
COULDN'T DO IT ANY FASTER I
DON'T BELIEVE SO THE WITH MORE
STUFF I WOULD HAVE TO GO BACK
AND DOUBLE CHECK THAT -- BUT I
BELIEVE WITH THE TIME LINES THAT
ARE ESTABLISHED -- ON THE
APPEALS AND THEN THEY HAVE A THE
OF OPTION.
TWO AT DO MOTIONS -- THAT THAT
CLOSE IS THAT WE CAN GET IS THE
SIXTY TO NINETY OKAY WELL I WANT
TO AFFECT MY DECISION BUT IF IT
IF YOU COULD GET BACK TO ME AND
LET ME KNOW.
ABSOLUTELY [inaudible]
YES SENATE.
WHAT'S BEEN YOUR PRESSURE OVER
THE YEAR WITH THE U. L. PEAS AND
AND THE ELECTIONS HAVE YOU HAD A
LOT OF UP TAKEN.
UNDER LABOR PRACTICE CHARGES
THAT YOU HAD TO DO TO CREATE AN
INDOOR.
ELECTIONS THAT YOU'VE THAT
CONDUCT.
AND WE HAVE HAD ONE OR TWO
ELECTIONS OVER THE LAST COUPLE
OF YEARS -- AND THAT THE WORK
LOAD THAT IS ON THE GENERAL
COUNSEL SITE -- THE BOARD SIDE
WHICH IS THE JUDGES -- JUST
HERE'S ANY THE DISPUTES THAT
COME FROM THOSE ELECTIONS.
ON OUR APP TAKE HAS BEEN WITH
THE CHARGES THAT WE'VE RECEIVED --
THE GENERAL COUNSEL SIDE OF THE
HOUSE WHO RECEIVE SOCIAL CHARGES --
HAS HAD CONSISTENT AND MANAGER
OF STAFFING OVER THE LAST THREE
YEARS AND WITH THAT DAVE -- AND
LAID A FISSION CEASE TO GET
THOSE INVESTIGATIONS DONE.
TIMELY I'M AND WE ARE CURRENTLY
OUR THREE YEAR AVERAGE --
RECEIVING COMPLAINTS IS ABOUT A
HUNDRED ELEVEN IN AS OF FEBRUARY
WE WERE AT SEVENTY ALREADY OF
RECEIPTS FOR THIS YEAR.
GOOD THANK YOU UNDER ELEVEN PER
YEAR IS THAT THE THREE YEAR
AVERAGE THE THREE YEAR EVERY YES
AND THOSE ARE ON CHARGES THAT
ARE RECEIVED.
WHEN YOU'RE READY UP TO A
HUNDRED ELEVEN WE WERE AT SIXTY
NINE AS A FEBRUARY TWENTY FIFTH?
OKAY WELL THANK YOU FOR YOUR
WORK YOU'RE WELCOME -- NEED IN
THE SHADE [inaudible]
YEAH.
WHAT ELSE PUBLIC COMMENT PLEASE
[inaudible]
OKAY [inaudible]
HEARING.
OBSERVERS QUICKLY TOLD THE
DEPARTMENT OF FINANCE THANK YOU
MADAM CHAIR AND COMMITTEE
MEMBERS -- WE SUPPORT THE
GOVERNOR'S BUDGET PROPOSAL AND
WOULD ALSO NOTE THAT THERE WAS --
REPORT SUBMITTED TO THE
LEGISLATURE.
FIND IN JANUARY OF THIS YEAR IN
ACCORDANCE WITH US SOME
SUPPLEMENTAL REPORTING LANGUAGE
THAT WAS REQUIRED IN THE TWO
THOUSAND SEVENTEEN EIGHTEEN
BUDGET.
WE BELIEVE THAT THE REPORT
DEMONSTRATES THAT THE THERE HAS
BEEN AN INCREASE IN WORKLOAD
OVER THE LAST SEVERAL YEARS THAT
CONSTITUTES NEED THESE POSITIONS
TO BE MADE PERMANENT AN ON GOING
[inaudible]
THANK YOU [inaudible]
OKAY -- OKAY.
OF HEARING NO NUMBER PUBLIC
COMMENT.
THEN WE CALL THE ROLL -- I'M
SORRY MOTION.
OKAY.
CALL THE ROLL PLEASE.
CENTER ALSO HI TENER NIELSEN.
CENTER I'M BURKE.
THANK YOU VERY MUCH THANK YOU
FOR ALL YOUR WORK CAPTION
[inaudible]
RIGHT -- OKAY THANK YOU -- WE
HAVE ONE MORE ISSUE SHE'S. OH
SORRY [inaudible] SEVEN ISSUE
[inaudible] NINE OKAY SO YEAH
ISSUE SEVEN IS REGARDING NON
INDUSTRIAL -- DISABILITY
INSURANCE -- WITH THE CALIFORNIA
DEPARTMENT OF HUMAN RESOURCES
[inaudible]
GOOD AFTERNOON.
TRUMAN AROUSAL CENTER NIELSEN
I'M BRIAN -- DEL WITH THE THE
ASSISTANT DEPUTY SECRETARY OF
LEGISLATION FOR THE GOVERNMENT
OPERATIONS AGENCY THAT KELLY
CHARTS A PART OF THE PROPOSAL
WOULD CLARIFY THE PROCESS FOR
THE FAMILY.
LEAVE PROGRAM THAT KALINJAR WILL
LAUNCH JULY FIRST OF THIS YEAR.
IT WILL PROVIDE UP TO SIX WEEKS.
OF LEAVE FOR A CERTAIN EXCLUDED
EMPLOYEES.
THE CURRENT ENHANCE INDUSTRIAL
OR NON INDUSTRIAL DISABILITY
INSURANCE.
IS A WAGE CONTINUATION PROGRAM
THAT IS PAID BY THE STATE.
IT ONLY COVERS EMPLOYEES
THEMSELVES THAT ARE DISABLED AND
UNABLE. TO WORK DUE TO A NON
WORK RELATED INJURY OR MEDICAL
CONDITION.
THIS IS AVAILABLE TO EXCLUDED
EMPLOYEES THAT USE THE ANNUAL
LEAVE PROGRAM.
EXCLUDING PLEASE GENERALLY ARE
THOSE ARE NOT REPRESENTED BY A
UNION.
BEGINNING JULY FIRST OF THIS
YEAR FAMILY CARE LEAD BENEFITS.
WILL BE AVAILABLE TO ALLOW THESE
X. EXCLUDED EMPLOYEES.
THAT ARE ON THE ENHANCE ND I TO
ALSO TAKE.
HEY TIME OFF TO CARE FOR
SERIOUSLY ILL FAMILY MEMBER OR A
BOND WITH THE CHILD.
THIS NEW BENEFIT CAN BE CLAIMED
FOR A MAXIMUM OF OF SIX WEEKS OR
FORTY DAYS -- WITHIN A TWELVE
MONTH PERIOD.
THE EMPLOYEE RECEIVES THE
BENEFIT OF 50% OF THEIR SALARY
AND THEY ALSO HAVE THE OPTION OF
AUGMENTING THAT WITH THEIR OWN.
LEAVE TIME SO THAT THEY CAN
RECEIVE A FULL SALARY.
A PROPOSED LANGUAGE WILL PROVIDE
CLARITY AND REDUCE CONFUSION FOR
STATE ENTITIES WHEN
ADMINISTERING THIS THIS NEW
PROGRAM. FOR A AYE EXCLUDED
EMPLOYEES SO THANK YOU AND I'M
AVAILABLE TO ANSWER ANY
QUESTIONS THAT YOU MAY HAVE.
COMMENTS.
HELLO.
NO -- I'M SORRY COULD YOU
EXPLAIN AGAIN THERE ARE CERTAIN.
OF THE CERTAIN BARGAINING UNITS
IN NON BARGAINING UNIT SOMEHOW.
ONE PLAN SOME HAVE THE OTHER
PLAN RIGHT YES THEY ARE YOU
TRYING TO WHAT IS IT YOUR YOUR
GOAL IS TO TRY.
TO GET ANNUAL LEAVE. FOR SOME
PORTION SO IT'S FOUR EXCLUDED
THEIR EMPLOYEES THOSE WHO AREN'T
REPRESENTED BY UNION.
GIVE THEM A FAMILY SORT OF
MANAGEMENT MANAGING PROVIDERS
MANAGERS OKAY TYPES OF EMPLOYEES
OKAY -- AND WOULD PROVIDE THEM
UP TO SIX WEEKS OF FAMILY CARE
LEAVE OKAY SO THAT IF.
THEY WANT TO BOND WITH THE CHILD --
GRANDPARENT GETS SICK A SPOUSE --
PARENT.
OR SIBLING THEY WOULD BE ABLE TO
TAKE UP TO SIX WEEKS AND THE
STATE WOULD SUPPLEMENT -- THERE
THERE'S WILL NOT DOCTOR SALLY
BUT SUPPLEMENT THEIR LEAVE BY
PAYING 50% OF THEIR SALARY.
AND THEN THE EMPLOYER THEN IF
THEY HAVE LEAVE HOURS ON THE
BOOKS THEY WOULD BE ABLE TO
OFFSET THE OTHER 50% IF IF THEY
CHOOSE TO SO THAT DURING THIS
PERIOD OF TIME THEY WOULD
RECEIVE A FULL SALARY.
THAT'S THAT'S THE GOAL
[inaudible]
SO -- SO THE A IN THE EYE RIGHT.
THOSE BENEFITS ARE NOT.
BEING EXPANDED FOR THE RANK AND
FILE.
BARGAINING UNITS THAT IS CORRECT
AND I'M SORRY AND TRYING TO
COURSES SO WHY WOULD THEY NOT BE
INCLUDED [inaudible]
THE THE ENHANCE ND I IS
SPECIFICALLY FOR EXCLUDED
EMPLOYEES -- THE RANK AND FILE --
THOSE OPTIONS OF WHAT TYPE OF
LEAVE BENEFITS THEY WOULD HAVE
AND DIFFERENT PROGRAMS ARE
BARGAIN FOR AT THE BARGAINING
TABLE.
SO THIS IS FOR THOSE WHO DON'T
HAVE A UNION AND AREN'T
BUT IT'S IT'S ENHANCING THERE'S
WHAT DO YOU DO LEAVING IT UP
[inaudible]
TO BARGAINING.
THAT THAT THAT IS CORRECT SO
THAT'S HOUSE -- THE SEIU ONE
THOUSAND BARGAINING UNITS HAVE
ANOTHER OPTION THE SD I WHICH IS
VERY SIMILAR TO THE ENHANCE IN
THE EYE.
BUT THAT WAS BARGAINED AND
NEGOTIATED [inaudible]
OKAY.
SAYS BUT SOMEHOW.
THE THE RIGHT DEVELOPER THOSE
BARGAINING UNITS ARE NOT GONNA
BE ABLE TO GET.
THE SAME LEVEL.
I THANK BENEFITS THIS WOULD ONLY
APPLY TO THE EXCLUDED CORRECT.
ANY CHANGE IN THE RANK AND FILE
AGAIN WOULD BE NEGOTIATED
THROUGH THE PARKING.
YOU COULDN'T DO IT NOW WITHOUT
BARGAINING -- I MERRY HOLTZMAN
DEPARTMENT OF FINANCE I AM SO
SIMILAR TO WHAT BRIAN WAS SAYING
AS THE A YOU HAD NEGOTIATED WITH
THE ADMINISTRATION TO INCLUDE
STI AND THEIR CONTRACT. TO HAVE --
THEM.
PAID FAMILY LEAVE FOR THEIR
EMPLOYEES SO.
I'M OTHER BARGAINING UNITS IF
THEY WANTED TO SEE YOU PURSUE
SUCH BENEFITS FOR IT THEY'RE
REPRESENTED MEMBERS THEY CAN
NEGOTIATE WITH THE
ADMINISTRATION FOR THOSE
BENEFITS.
YES SIR YES AND WHAT'S THE TREND
NOW IN THE COOLING OF ANNUAL
LEAVE WE'VE LONG HAD PROBLEMS
WITH THAT THE EMPLOYEES JUST.
THESE.
CREDIBLE NUMBERS OF ANNUAL LEAVE
THAT'S AN EXCELLENT QUESTION I
DON'T HAVE THOSE NUMBERS I WOULD --
I BELIEVE THE DEPARTMENT FINANCE
RETALIATES ARE WOULD BE ABLE TO
GET BACK TO YOU WITH THE LET'S
HAVE SOMEBODY GET BACK TO US ON
THAT THAT'S AN IMPORTANT.
POINT -- WHICH IT'S A HARD THING
TO DISCIPLINE AND IT'S AN EASY
THING TO ABUSING THE CREW A LOT
OF AN AND OBLIGATE.
TO AT THE END OF THE TEN YEAR IN
SERVICE OF AN INDIVIDUAL TO HAVE
THIS BASS.
TO CHECK COMING TO THEM SO LET'S
LET'S TAKE A LOOK THAT IS WORTHY
OF DISCUSSION [inaudible]
COURSE.
AND THEN YOU WOULD AT THE SAME
TIME -- EXPLAINED WHAT THE
ACTUAL POLICY.
IS YES IN INCLUDING A POLICY
NUMBERS BECAUSE THAT DOESN'T
TELL YOU EVERYTHING.
COURSE WE HAD.
OKAY -- WE'RE LEAVING THIS OPEN
ANNA ANYMORE BUT PUBLIC COMMENT.
NO.
RIGHT THANK YOU VERY MUCH
[inaudible]
GOING [inaudible]
TO ISSUE.
NINE THE CALIFORNIA WORKFORCE
DEVELOPMENT BOARD.
HI GOOD AFTERNOON GOOD AFTERNOON.
I TOO MANY CALIFORNIA WORK FOR
SILVERMAN BOARD I THANK YOU
MADAM CHAIR MEMBERS FOR THIS
OPPORTUNITY.
THE ONE TO SPEND A COUPLE OF
SECONDS TALKING ABOUT -- A. B.
ELEVEN ELEVEN WHAT IT AIMS TO DO --
AND THE STATE WORKFORCE
DEVELOPMENT BOARD'S ROLE IN THAT.
AB ELEVEN ELEVEN REMOVING
BARRIERS TO EMPLOYMENT IS A
UNIQUE GANT PROGRAM FOR SERVING
PEOPLE SIGNIFICANT -- EMPLOYMENT
BARRIERS.
THE BILL REQUIRES PARTNERSHIPS
AMONG.
LOCAL WORK FOR SOME OF AND CAN
YOU BASS ORGANIZATIONS.
ME INTENT IS THE CAN IS TO
CONNECT SMALLER A MISSION DRIVEN
CBO'S THEIR EXPERTISE.
AND THEIR TARGET POPULATIONS
MOST IMPORTANTLY. TO THE
MAINSTREAM OF THE WORK FOR
SYSTEM WHICH TENDS.
TO OF IT'S A HARSH WORD BUT LOCK
COMMITTEE BASS ORGANIZATIONS
ESPECIALLY THE SMALLER ONES OUT
OF ACCESS TO PUBLIC DOLLARS.
SUCCESSFUL APPLICATIONS FOR
THESE DOLLARS WILL REQUIRE THAT
APPLICANTS CLEARLY DESCRIBED THE
ROLES RESPONSIBILITIES OF THE
CBO'S IN THE APPLICATION.
OF THE BUDGET ALSO MUST REFLECT.
HOW DOLLARS ARE GONNA BE
ALLOCATED AMONG THE PARTNERS DOT
SO THAT WE'RE CLEAR HOW MUCH THE
CBO'S WILL BE ALLOCATED TO DO
THE WORK -- THAT THEY PROPOSED
TO DO.
I THAT'S IMPORTANT FOR US
BECAUSE THEN WE CAN MAKE SURE --
THAT ARE MONITORING PROCESS IS
ENSURING THAT THE CBO'S ARE
GETTING THE ADEQUATE RESOURCES --
THAT THEY NEED TO DO THE WORK
THAT THEY NEED TO DO -- AB
ELEVEN ELEVEN ADDRESSES AT LEAST
TWO GAPS IN THE WORKFORCE SYSTEM
IN THE TRADITIONAL WAR FOR
SYSTEM.
THE FIRST IS ADEQUATE FLEXIBLE
RESOURCES FOR EMPLOYMENT
SUPPORTS THINGS LIKE -- TRAUMA
INFORMED CARE INCOME SUPPORTS --
LIKE STATEMENT FOR WORKERS THEY
HAVE MONEY IN THEIR POCKETS
WHETHER GOING THROUGH EMPLOYMENT
SERVICES.
A CHILD CARE PRE APPRENTICESHIP
TRAINING -- THAT WE'VE DONE --
FOR YEARS WITH THE STATE
BUILDING CONSTRUCTION TRADES
COUNCILS LOCAL BUILDING TRADES
COUNCILS -- I AND OTHER KINDS OF
OF SERVICES THAT'S JUST TO NAME
A FEW.
THE REALITY IS THE MOST POOR
PEOPLE WORK.
I AND IN ORDER TO HAVE THE WHERE
WITH ALL -- TO PARTICIPATE IN A
TRADITIONAL WORK FIRST PROGRAM --
YOU HAVE TO HAVE THE ABILITY TO
GO -- TO TO LEAVE YOUR CURRENT
JOB TO SOME EXTENT. TO ATTEND
CLASSES IT TOOK ME COLLEGE YOU
OR THE KINDS OF SERVICES
PROVIDED BY WORKFORCE
DEVELOPMENT BOARD'S.
WITHOUT THAT OF PEOPLE TEND TO
GET LOCKED IN.
DEAD END LOW WAGE JOBS AND OUR
INTENT HERE IS TO HELP LIFT
PEOPLE OUT TO A POINT WHERE THEY
CAN ACCESS THE BROADER MORE
TRADITIONAL WORK FOR SYSTEM --
AND GO TO CLASSES YOU COMMITTEE
CALEDON GET QUALITY TRAINING
WILL GO TO A PARTNERSHIP PROGRAM
THROUGH A PRE APPRENTICESHIP AND
BECOME -- A MEMBER OF THE MIDDLE
CLASS VERY SOON -- THE SECOND
PART AND THIS IS WHY THE B. C.
P..
I REQUEST IS SO IMPORTANT.
IS THE ABILITY OF COMMITTEE BASS
ORGANIZATIONS TO DRAW.
SUCH A SHORT TERM BUT LONG TERM.
US SUPPORT FROM THE MAINSTREAM
WORK FOR SYSTEM BECAUSE SMALL
MISSION DRIVEN ECONOMIC JUSTICE
ORGANIZATIONS FOR EXAMPLE.
OUT REALLY STRUGGLE TO ACCESS
DOLLARS TO COMMITTEE COLLEGES
AND WORK FOR SPORTS -- SO JUST
LIKE DISADVANTAGED POPULATIONS
NEED BROAD SUPPORT GENEROUS
SUPPORTS.
THE CBO'S THAT WE PLAN TO WORK
WITH THAT THAT OUR INTENT THE
INTENT OF THE OF A BILL OF
ELEVEN ARE GONNA NEED THAT KIND
OF HANDS ON SUPPORT FROM US FROM
THE STATE WORKFORCE BOARD.
SO.
THE CALIFORNIA -- WORKFORCE
DEVELOPMENT JUST LITTLE BIT
ABOUT OUR OUR APPROACH TO GRANT
MAKING THE CALIFORNIA WORKFORCE
DEVELOPMENT BOARD.
OVER THE LAST SEVEN YEARS -- HAS
DEVELOPED THE MODEL THAT WE
THINK REALLY WORKS IT'S PRETTY
UNORTHODOX.
I THINK THE TRADITIONAL WAY OF
GRANT MAKING ESPECIALLY FROM
GOVERNMENT IS TO PUT MONEY OUT.
I CALL IT UP PAY AND PRAY -- YOU
PUT THE MONEY UP GRANTEES I DO
THE WORK THEY SAID THEY WERE
GONNA DO WHEN THEY REPORT TO YOU
AT SOME POINT -- THAT THEY DID
THE WORK THEY SAID THEY WERE
GONNA DO AND THEY SPEND THE
MONEY DOWN TO ZERO IT'S A
SUCCESS.
IN OUR MODEL WE DO A LOT OF HAND
HOLDING SO WE ALLOW GRANTEES.
TO MAKE MISTAKES -- ANALYZE
ALONG THE WAY AND ASSESS THEIR
THEIR PROGRESS IN THE PROGRAM TO
MEETING THEIR OUTCOMES THAT
THEY'VE SAID THEY WERE GONNA
MEET -- WE ALLOW THEM TO KIND OF
REASSESSING CHANGE COURSE IF
NEED BE -- BUT IT'S THROUGH THIS
REAL A CLOSE CONNECTION TO THE
GRANTEES THAT WE PROVIDE THIS
KIND OF HAND HOLDING THAT ALLOWS
THAT -- THAT TO TAKE PLACE --
BUT OUT OF THIS PROCESS ALSO
COMES A LOT OF INNOVATION A LOT
OF INTERESTING SUCCESSES OF FOR
THE CLIENTS THAT ARE TARGETED.
THAT WE WOULD OTHERWISE WOULD
HAVE SEEN WITH THE KIND OF THAT
PAY IN PRE MODEL -- WE ARE.
OR ASKING FOR THIS REDIRECTION
OF FUNDS FROM FIFTEEN MILLION
DOLLARS -- UNDERSTANDING THE
FIFTEEN MILLION IS NOT A LOT OF
A LOT OF MONEY.
I TO GET IT THE NEED.
THAT CALIFORNIA.
THE CALIFORNIA IS IN ITS
COMPLEXITY AND IT'S AND IT'S AND
ITS SIZE -- OUR INTENTION IS TO
USE THOSE DOLLARS THOUGH SMALL --
TO CHANGE THE WAY.
DOLLARS ATTHE LOCAL LEVEL LEVEL
OUR EXPANDED -- FOR ESPECIALES
POPULATIONS THE THE BROADER
SYSTEM IS BETTER SIX BILLION
DOLLAR INVESTMENT EVERY YEAR SO
WERE TAKEN A LITTLE BIT OF MONEY
WHAT KIND OF FROM THE MARGINS
ARE TRYING TO CHANGE THE
DIRECTION OF A BIG WORK FOR
SYSTEM.
IN WAYS THAT PROVIDE PEOPLE WHO
MOST NEED THE SERVICES BUT SEEM
TO BE LOCKED OUT -- GET ACCESS
TO SERVICES AND THEN THE BEST
JOBS -- THE BEST JOB POSSIBLE.
WHAT WE'RE PROPOSING IS NOT
ADMINISTRATIVE WORK?
WHAT WE'RE PROPOSING IS PROGRAM
WORK -- AND THAT'S THE PART OF
THE UNORTHODOX APPROACH TO THIS
IS THE STATE WORKFORCE
DEVELOPMENT BOARD STAFF -- IN
ITS WORK.
VERY CLOSELY WITH THE GRANTEES
IN THIS KIND OF HAND HOLDING
THAT INCLUDES COMMUNITY OF
PRACTICE -- WHICH IS BRINGING
GRANTEES TOGETHER UNDER THE SAME
PROGRAM ON A REGULAR BASIS TO
SHARE WITH EACH OTHER WHAT'S
WORKING WHAT'S NOT WORKING WE'VE
DONE THIS -- IN ALL OVER GRANT
PROGRAMS AFTER OVER THE LAST
SEVEN YEARS AND SEEMS TO IT BUT
DOESN'T SEEM TO REALLY WORKS
WE'VE BEEN PUTTING VERY GOOD
NUMBERS ON THE BOARD.
US WE WANT TO CONTINUE THIS WORK.
THAT WE FEEL THAT OF ELEVEN
ELEVEN IN THE FUNDING OF THAT
WAY THAT THAT GOES WITH IT WAS
PUT AT THE STATE WORKFORCE-DEVELOPMENT BOARD BECAUSE OF THE
MODEL WE'VE BEEN ABLE -- TO
ESTABLISH OF THE LAST SEVEN
YEARS -- BUT WITHOUT THIS
RESOURCE TO DO IT.
WE CAN'T -- WE CAN ACHIEVE THE
KINDS OF SUCCESSES WE HAVE WITH
OUR PREVIOUS WORK.
THANK YOU VERY MUCH THANK YOU.
DO YOU HAVE ANY [inaudible]
COMMENTS.
HI MARK JIMENEZ DEPARTMENT OF
FINANCE -- AS THE TITLE OF THE
PROGRAM SUGGESTS THE AIM OF THE
PROPOSED THE AIM OF THE PROGRAM
IS TO BREAK DOWN BARRIERS TO
EMPLOYMENT -- FOR SOME OF THE
HEART.
THE MOST VULNERABLE AND HARDEST
HARDEST TO REACH JOB SOURCES
PROVIDED IN THIS PROPOSAL --
WILL ALLOW THE BOARD TO WORK
CLOSELY WITH ON THE AT THE THE
GRANTEES -- AND IMPROVE THE
PROBABILITY OF SUCCESS -- FOR UP
TO SIXTY FUNDED PROJECTS IN THE
BOARD OPERATES A PRETTY SMALL
LEANING STAFF OF OF AND SO THE
STAFF RESOURCES ARE NECESSARY TO
ACHIEVE QUALITY OUTCOMES.
FOR THESE HARD TO SERVE --
POPULATIONS.
LYNDA DOT SEMI.
THANK YOU I'M HAS ALMOST THE
ALEJO OUT WE HAVE NO SPECIFIC
RECOMMENDATIONS ON THIS PROPOSAL
BUT AS AS STAFF INCLUDED IN THE
AGENDA VERY CLEARLY.
THE QUESTION BEFORE THE
SUBCOMMITTEE IS SORT OF HOW TO
RECONCILE THE LEGISLATURE'S
EXPECTATIONS ABOUT ADMIN AND
PROGRAM COSTS AT THE STATE LEVEL
THAT.
WERE HELD LAST YEAR -- WHEN THE
INITIAL FUNDING WAS PER ARE
APPROVED AND AND WITH WITH THE
PROPOSAL THAT THE ADMINISTRATION
IS PUT FORTH THIS YEAR ON THAT'S
A QUESTION? FOR FOR YOU AND FOR
THE LEGISLATURE LARGE TO
INTERACT WITH THE THE BOARD ON
OVER THE NEXT SEVERAL WEEKS AND
FOR THAT REASON WE CAN --
ABSOLUTELY WITH THE
RECOMMENDATION THIS TIME TO HOLD
THE ITEM OPEN.
HOLD IT UP RIGHT.
CAN YOU BE MORE SPECIFIC I'M
SORRY WITH THAT IN TERMS OF THAT
THE PERCENTAGE TO THAT GOES TO
ADMINISTRATION IS THAT THE ISSUE
IT'S I DON'T WANT. TO DO. TO PUT
WORDS IN MISTER RAINEY'S AND
TESTIMONY -- I THINK WHEN THE
PROPOSAL WAS INITIALLY RECEIVED
BY THE LEGISLATURE AND INCLUDING
BY OUR OFFICE -- THE INITIAL
REACTION WAS THAT IT SEEMED AS
THOUGH THERE WAS A A LARGER THAN.
A TYPICAL -- SHARE THE PROPOSAL
FOR FOR ADMINISTRATIVE COSTS ON
THE BOARD AND MISTER RANEY HAVE
HELPED OUR OFFICE AND STAFF
UNDERSTAND THAT SOME OF THOSE
AND WHAT WE BELIEVE WE'RE
ADMINISTRATIVE COSTS AT FIRST.
OUR MORE IN A SENSE PROGRAM
COSTS -- SO WE'RE SORT OF
INVOLVING IN AND CONTINUING TO
TO BETTER UNDERSTAND THE OPPOSE
WHAT THE TIME -- REGARDING
SPECIFIC PERCENTAGES I BELIEVE
THE PROPOSAL AT SOMETHING TO
AROUND 22% -- FORCE WITH ADMIN
AND PROGRAM COSTS THAT WOULD BE
HIGHER THAN WE SEE IN A
TRADITIONAL GRANTMAKING PROGRAM
THAT'S OPERATED BY OTHER STATE
ENTITIES.
BUT AS MR RAINEY'S MENTIONED
IT'S NOT.
LEASES ARE UNDERSTANDING.
NOT.
INCLUSIVE OF ONLY ADMINISTRATIVE
OVERHEAD COSTS BUT ALSO SOME
ADDITIONAL PROGRAM COSTS WORKING
WITH CBO ISN'T.
IN THE REGIONALS REPORTS.
GOOD.
OKAY.
MADAM CHAIR DAN ROUNDS POLICY
DIRECTOR FOR THE STATE BOARD.
THE STAFFING -- THAT'S PROPOSED
IN THIS BCP IS CONSISTENT WITH
THE STAFFING REQUEST THAT WE
NOTIFY THE LEGISLATURE.
WITH WHEN THE BILL WAS MOVING
THROUGH THE PROCESS DURING THE
NORMAL APPROPRIATIONS PROCESS.
THIS WAS FUNDED A LITTLE BIT
DIFFERENTLY -- IN THAT THE
PROGRAM WAS PUT ON PAPER AND
THEN THE MONEY WAS ADDED IN THE
FOLLOWING BUDGET YEAR SO THERE
WAS NO LEGISLATIVE BCP
INTRODUCED.
BUT OUR STAFFING LEVELS
REQUESTED IN THE B. C. P. ARE
CONSISTENT WITH THE ANALYSIS OF
NEED FOR STAFFING THAT WAS
PROVIDED TO APPROPRIATIONS THE
YEAR BEFORE -- YOU KNOW I DON'T
WANT TO GET THEM TO MAKE THIS.
TOO LONG -- CAN YOU GIVE ME AN
IDEA OF ARE YOU LOOKING AND WHEN
YOU SAY YOU WANT TO GET TO SORT
OF OF THE GROUPS THAT.
YOU KNOW MAY HAVE BEEN.
EXCLUDED OR ARE NOT INCLUDED AS
MUCH AS THEY SHOULD.
ARE YOU DOING THAT YOU.
INDUSTRIES AND SO WHO WORKS IN
THOSE INDUSTRIES ACTUAL HOW ARE
YOU [inaudible]
SORT OF YEAH EXCELLENT NINETEEN
THAT.
WE'RE WE'RE DOING BOTH WHERE
WE'RE MAKING SURE WE'VE GOT A
GEOGRAPHIC DISTRIBUTION AS
EQUITABLE ACROSS THE STATE SO
ALL THE MONEY DOESN'T GO -- TO
ONE PART OF THE STATE -- BUT IT
SHOULD BE IN ACCORDANCE WITH
POPULATION DENSITY IN NEED.
IT'S A GREAT POINT ABOUT
INDUSTRY CONNECTION.
EXAMPLE IS THAT -- THE THE
HOSPITAL HOSPITALITY TRAINING
ACADEMY IN LOS ANGELES THAT I
KNOW YOU'RE VERY FAMILIAR WITH --
H. TA.
WE'VE BEEN WORKING WITH -- UNITE
HERE ELEVEN IN THE HOTEL
PROPERTIES DOWN TOWN FOR MANY
YEARS TO TO DEVELOP THEIR
CAPACITY AND HELP THEM.
DO INNOVATIVE WORK THERE IN THAT
SECTOR. ELEVEN ELEVEN AND OTHER
WORK THAT WE'VE DONE.
WILL FUND -- BRIDGES FROM --
DISADVANTAGED POPULATIONS WITH
REAL HEAVY SUPPORTS -- ON THAT
FRONT END. TO GOOD JOBS IN IN
HOSPITALITY FOR EXAMPLE SO
THERE'S AN ALIGNMENT IN A
PARTNERSHIP BETWEEN.
THE LABOR MANAGEMENT PARTNERSHIP
AND THE COMMUNITIES
ORGANIZATIONS THAT ARE WORKING
WITH COMMUNITIES ARE IN REMOVING
VERY SIMPLE I MEAN THOSE
COMMUNITIES SO WE'RE WORK WITH
THIS.
THIS FUNDING WERE INTENDING TO
PLAY THAT OUT ACROSS THE STATE --
BECAUSE THE AT THE END OF THE
DAY.
WHAT WE WANT TO DO IS TO CHIEF
EQUITY -- BUT YOU CAN ACHIEVE
EQUITY UNLESS YOU HAVE A
CONNECTION DIRECTLY TO A REALLY
GOOD JOB SOME PLUMBING SERVICES
ALONG JUST ARE GOING TO CUT IT
ESPECIALLY FOR PEOPLE HAVE LOTS
OF BARRIERS TO EMPLOYMENT.
THAT'S RIGHT WELL THAT WAS
ALWAYS MY EXPERIENCES THERE WAS
A LOT OF SO CALLED THE TRAINING
PROGRAM YEAH BUT THEN YOU'D BE
LEFT OUT THERE.
WITH NOTHING AFTER YOU WERE
TRAINED -- AND THAT DIDN'T HELP
EITHER RIGHT -- THERE HAD TO BE
THIS WHICH IS WHAT REQIRED.
EMPLOYERS TO BE INVOLVED TO MAKE
SURE THAT THERE WAS SOMETHING
WAITING FOR THEM WHEN THEY
FINISH THEIR AND I SEE TOO MANY
TRAINING PROGRAMS ARE
DISCONNECTED.
FROM YOU KNOW A REAL -- A REAL
SERIOUS EFFORT AT GETTING THEM
INTO A JOB -- AND ALSO MEMBER
HAVING HEARD FROM THE THE
ACADEMY IS OUT REACH ONE OF
THOSE OUT WHICH I THINK WAS TO
THE TRANS COMMUNITY HERE.
RIGHT -- TOO YOU KNOW.
MAKE THEM FEEL A PART OF THAT
THEY WERE WELCOME. ONE THAT THEY
WERE TRAINED BUT THEY ALSO IT'S
PART OF WEALTHY WELCOMING THEM
INTO AN INDUSTRY THAT THEY
OTHERWISE MIGHT HAVE FELT --
THEY WOULDN'T HAVE AN
OPPORTUNITY TO GET WORK.
THAT THAT THAT'S MY OTHER --
BUMPER STICKER SENATOR IS -- NO
MORE TRAINING PRAY -- TRAINING
PRAISED PAYNE PLAY UP WHATEVER I
DID [inaudible]
BECAUSE GREATER.
THE THE OLD APPROACHES YOU GIVE
PEOPLE MINIMUM LEVEL OF
EMPLOYMENT SERVICES AND THEN YOU
SET HIM OFF INTO LABOR MARKETS
IF IN FOR THEMSELVES AND IF
THEY'RE NOT SUCCESSFUL.
THEY JUST COME RIGHT BACK IN THE
DOOR SEE WHAT YOU DO IS YOU
CREATE THIS TURN -- COMING THIS
LIST LOW WAGE LABOR MARKET TURN --
FOR PEOPLE WHO MOST NEED
SERVICES TO GET PAST THAT OUT OF
THE DEAD END JOBS -- THIS WAR
APPROACH.
AND WE BUILT THIS INDOOR HIRING
TRAINING PARTNERSHIP WORK ACROSS
THE STATE IS TO FOCUS WAS ON THE
EQUITY IN THE JAW AND THE
QUALITY JOBS THE ACCESS TO
QUALITY JOBS SO.
WE'RE MOVING THE WORK FOR SYSTEM
THAT HAS BEEN.
PRETTY -- CONNECTED TO THAT
TRAINING PRE MODEL -- IN MOVING
IT TOWARD THIS CONNECTION AS YOU
DESCRIBED BRIDGES TO GOOD JOBS
BY BRINGING EMPLOYERS.
AND LABOR MANAGING PARTNERSHIPS
IN ORGANIZED LABOR TO THE TABLE
WITH COMMITTEE BASS
ORGANIZATIONS TO TYPE
PARTNERSHIPS -- IN THE WORK THAT
WE DO THE STATE BOARD IS.
A TINY HAND HOLDING TO DEVELOP
THOSE PARTNERSHIPS AS
INTERMEDIARY SAID THAT ACTUALLY
MAKE THOSE BRIDGES POSSIBLE.
SO WE DO A LOT OF WORK ON THE
GROUND WE DON'T LEAVE IT UP TO
OTHERS.
THIS IS REALLY INTERESTING AND
FUN CHAIR I JUST WANT TO
COMPLIMENT THEM IN MY EXPERIENCE
WATCHING THIS FOR QUITE A FEW
YEARS THIS THIS.
CHANGE IF YOU WILL POSITION OR
THEIR CURRENT POSITION -- I
THINK IS NOW.
OF GETTING THEM TO THE FUTURE
AND GETTING MORE INDIVIDUALS
WHERE THEY DON'T COME.
RECYCLE BACK AND OR JUST BAILOUT
THEY GET TIRED OF IT AND I THINK
YOU MAKING SOME GOOD PROGRESS
THANK YOU [inaudible]
OKAY.
NO MORE ALL RIGHT THANK YOU VERY
VERY MUCH FOR YOUR WORK
APPRECIATE IT.
AND I THINK -- PUBLIC COMMENT
[inaudible]
STATE.
IT'S NOT ON THIS ITEM IS
ACTUALLY ON CAL STIRS PREVIOUS
ITEMS IT DIDN'T HAVE.
NUMBER CHANGE YOU WANT US TO
WAIT UNTIL THE END NO THIS IS
THE END OKAY.
BUT BUT THERE'S NO MORE ON THIS
PARTICULAR NO PUBLIC COMMENT ON
THIS PARTICULAR -- ITEM OKAY
THANK YOU VERY MUCH FOR MUCH
OKAY NOW WE CAN HAVE.
GOOD AFTERNOON THANK YOU VERY
MUCH AT CENTER JENNIFER BAKER
WITH THE CALIFORNIA TEACHERS
ASSOCIATION WANTED TO ACTUALLY
COMMENT ON THE GOVERNOR'S
PROPOSAL REGARDING CAL STIRS CTA
VERY MUCH SUPPORTS AND
APPRECIATE THE GOVERNOR'S
LEADERSHIP -- TO PROVIDE A
MECHANISM -- TO PULLED HELP TO
PAY DOWN THE LONG TERM UNFUNDED
LIABILITY FOR CAL STIRS AS WELL
AS TO HAVE A CREATIVE SOLUTION.
FOR PROVIDING DISTRICTS SOME
RATE RELIEF WE UNFORTUNATELY
DON'T REALLY.
AGREE WITH THE LA L..
ON ON THEIR ANALYSIS ON THIS
ITEM AS FAR AS WAITING. TO
PROVIDE DISTRICTS WITH THAT
SEVEN HUNDRED MILLION DOLLARS
FISCAL RELIEF NOW OUR SCHOOL
DISTRICTS HAVE NEVER RECOVERED
FROM THE GREAT RECESSION WE LOST
OVER SIXTY FIVE BILLION DOLLARS
THAT WE NEVER GOT BACK AND
THAT'S ONE OF THE REASONS WHY A
LOT OF OUR SCHOOLS ARE.
STRUGGLING PROVIDING THOSE
RESOURCES NOW ARE GOING TO HAVE
DISTRICTS THAT HAVE THAT I
SIGNIFICANT IMMEDIATE NEEDS ONE
EXAMPLE WOULD BE PARADISE
UNIFIED PARADISES PAIN ABOUT
TRIPLE WHAT THEY HAVE BEEN
PAYING.
FOR TRANSPORTATION FUNDING SO
PROVIDING THIS KIND OF RELIEF
COULD GIVE AN OPTION FOR
PARADISE TO HAVE SOME RELIEF
COULD ALSO PROVIDE ADDITIONAL
OPTIONS FOR REALLY FOR SCHOOL
DISTRICTS IF THEY WANT TO HELP.
TO COMPLEMENT THE A SIGNIFICANT
FUNDS THAT THEY'RE HAVING TO USE
TO PAY FOR SPECIAL ED WHICH IS
NOT BEING ADEQUATELY FUNDED AT
NIGHT THERE THE STATE OR THE
FEDERAL LEVEL.
EVEN THOUGH THE LOCAL CONTROL
FUNDING FORMULA IS FULLY FUNDED
IT IN NO WAY MEANS THAT SCHOOL
DISTRICTS HAVE.
ADEQUATE FUNDING AND THAT'S ONE
OF THE REASONS WHY WE'RE VERY
APPRECIATIVE OF THIS PROPOSAL
THIS PROPOSAL IS TRYING TO
RECOGNIZE THAT ITEM IN TRYING TO
HELP SCHOOL DISTRICTS WHILE ALSO
TRYING TO MAKE SURE THAT WE
STRENGTH IN THE LONG TERM
VIABILITY OF CAL STIRS AS THE
MAIN RETIREMENT OPTION. FOR OUR
SCHOOL TEACHERS IT TOOK TEN
YEARS TO PUT A. B. FOURTEEN
SIXTY NINE TOGETHER AND I DO
WANT TO PROVIDE A LITTLE BIT OF
CONTEXT BECAUSE SENATE FUNDED --
THE STATE ACTUALLY HAD AN OVER
ONE DAY ARE OVER A DECADE
PENSION HOLIDAY TO CAL STIRRERS --
IN DEBT SO YOU OFTEN HEARD ABOUT
DIFFERENT FUNNY RATES FOR
DIFFERENT PENSION SYSTEMS BUT
WHEN IT CAME TO CAL STIRS THE
STATE HAD A VERY GOOD DEAL.
AND THE RATES FOR CAL STIRS WERE
VERY STABLE FOR BOTH SCHOOL
EMPLOYERS AS WELL AS OUR MEMBERS
AS WELL AS OUR SCHOOL TEACHER IN
COMMUNITY COLLEGE MEMBERS AS
WELL SO.
IT TOOK A SIGNIFICANT TIME TO
PUT AB FOURTEEN SIXTY NINE
TOGETHER AS CHRIS SALEM IN THE
SEAT CHAU FOR CAL STIRS PUTS IT.
YOU'RE NOT ON A SPEED BOAT THIS
IS A CRUISE SHIP IT TAKES A LONG
TIME TO TURN IT SO IT IS GOING
TO TAKE A LONG TIME TO FIND IT
FULLY BUT THIS IS THE MAIN
RETIREMENT INCOME SO ANYTHING
THAT YOU CAN DO SIT SUPPORT
TEACHERS.
WE GREATLY APPRECIATE IT THANK
YOU THANK YOU BROUGH KNOWLEDGE.
ONE WAY BACK YES YES.
A GOOD AFTERNOON KYLE HIGHLAND
ON BEHALF OF THE CAL STARS
FUNDING COALITION -- WHICH IS AN
ASSOCIATION THAT REPRESENTS OVER
A HUNDRED FIFTY SCHOOL DISTRICTS
AND COUNTY OFFICE OF EDUCATION.
I'LL KEEP MY COMMENTS BRIEF I
HAD THE SERGEANT PASS OUT ARE A
SUPPORT LETTER FOR ISSUE NUMBER
FOUR ON THE AGENDA WHICH IS THE
THREE BILLION DOLLAR -- PROPOSAL
BY THE GOVERNOR IT FOR THE TO
INVESTOR BILLION DOLLARS INTO
THE EMPLOYER SHARE THE CAL STIRS
UNFUNDED LIABILITY -- WE BELIEVE
IT'S A PRUDENT USE OF RESOURCES --
AS I MY COLLEAGUE FROM CTA ALSO
MENTIONED -- IT'S A IT'S IT'S A
HAS BROUGHT EDUCATIONAL SUPPORT
ACROSS THE EDUCATIONAL COMMUNITY --
WE LOOK FORWARD TO WORKING WITH
THE SUBCOMMITTEE TO SEE THAT THE
THIS IS A PROPOSAL GETS INTO THE
FINAL BUDGET THANK YOU.
THANK YOU.
HI I'M JODY DAY BERRY CHAIR
FUNDING PUBLIC EDUCATION FOR CTA
AND ALSO OF TEACHER UP IN SOUTH
LAKE TAHOE TWENTY THREE YEAR
VETERAN.
I CONCUR WITH -- BOTH OF THE
PREVIOUS TESTIMONIES -- AND I'D
LIKE TO JUST SHARE THAT MY LOCAL
CONTINUES TO STRUGGLE YEAR IN
AND YEAR OUT BECAUSE OF THE
UNFUNDED LIABILITIES.
WE HAVE DIFFICULTY ATTRACTING
AND RETAINING TEACHERS
ESPECIALLY IN THE AREAS OF
SPECIAL EDUCATION AND TWO WAY
IMMERSION PROGRAMS WE'RE LOOKING
AT MAKING SIGNIFICANT CUTS AGAIN.
EVEN THOUGH WE HAVE THE LOCAL
CONTROL FUNDING FORMULA WITH THE
UNFUNDED LIABILITY WE HAVE TO
TAKE.
A VERY GOOD LOOK AT OUR PROGRAMS
AND MAKE CUTS TO INTERVENTION
PROGRAMS BECAUSE WE JUST DO NOT
HAVE THE ACCESS IN OUR STATE IN
OUR LOCAL BUDGETS. TO BE ABLE TO
OFFSET THAT UNFUNDED LIABILITY
SO OF SOMEONE WHO'S SEEN IT FOR
TWENTY THREE YEARS -- AND WORKED
WITH MY DISTRICT VERY CLOSELY TO
ENSURE WE HAVE THE BEST QUALITY
PROGRAMS.
IT BECOMES HARDER AND HARDER TO
PROVIDE THOSE RESOURCES -- AND A
BIG PART OF IT IS BECAUSE OF THE
CAL STIRS UNFUNDED LIABILITY
THANK YOU THANK YOU VERY MUCH
[inaudible]
OKAY [inaudible]
THAT'S IT.
THAT'S IT MEETINGS OVER
ADJOURNED THANK YOU SENATOR
THANK YOU VERY MUCH.
THANK YOU TO EVERYBODY THANK YOU
SERGEANTS.
THANK YOU ARAMBULA