THE SENATE COMMITTEE ON THE
BUDGET AND FISCAL REVIEW WILL
NOW COME TO ORDER. THIS IS OUR
FIRST MEETING OF 2024. AND UH AS
MOST OF YOU HAVE PROBABLY
NOTICED THE GOVERNOR DID PRESENT
HIS JANUARY HIS PROPOSAL FOR THE
2024 BUDGET JUST A COUPLE WEEKS
AGO, AND, UM, THIS HEARING OUR
FIRST HEARING IS TO HEAR FROM
OUR DEPARTMENT OF FINANCE AND
LEO TO GIVE US AN OVERVIEW. OF
THAT PROPOSAL. AND TO ALLOW OUR
COMMITTEE MEMBERS TO ASK
QUESTIONS, JUST FIRST PUBLIC
AIRING IN EFFECT, AND THEN, OF
COURSE, TO HEAR FROM THE PUBLIC
NOW WE WILL NOT HAVE TELEPHONE
TESTIMONY. WE HAVE NOW STOPPED
THAT THE SENATE HAS SO IT WILL
ONLY BE THE IN PERSON. TESTIMONY
WE WILL DO THAT AFTER WE HAVE
HEARD FROM THE DEPARTMENT OF
FINANCE AND L A. AND AFTER OUR
MEMBERS HAVE ASKED QUESTIONS,
THEN WE WILL GO TO THAT PUBLIC
COMMENT. AND I WILL TALK ABOUT
THE CONTEXT FOR THAT ARE FORMAT
ONCE WE GET THERE, UM IN THE
MEANTIME, BEFORE WE HEAR FROM
ARE FOLKS FROM INFORMATIVE
FINANCE AND ELIO. I THINK AS WE
ARE ALL AWARE WE ARE IN A
DIFFERENT FINANCIAL AND REVENUE
SITUATION WE HAVE BEEN IN THE
LAST COUPLE OF YEARS. WELL,
ACTUALLY, IT'S DIFFERENT FOR
LAST YEAR, TOO, BUT WE WERE IN A
SITUATION THE STATE OF
CALIFORNIA. IS SUCH THAT WE HAVE
TO MAKE FORECASTS. AND IN THIS
CASE, WE HAD TO MAKE FORECASTS
PRIOR TO OUR REVENUE COMING IN
SINCE THE FEDS DELAYED THE TAX
FILINGS, SO WE DID NOT HAVE A
CLEAR PICTURE OF WHAT OUR
REVENUE WAS. AND YET WE MUST
ADOPT A BUDGET BASED ON THE
FORECASTS. THAT'S PART OF OUR
CONSTITUTIONAL RULES OF HAVING A
BALANCED BUDGET. SO THIS IS JUST
ONE OF THE, UH WE OBVIOUSLY TRY
TO DO OUR BEST THAT WE BEING THE
FORMER FINANCE THE LAO THE
COLLECTIVE THE ADMINISTRATION IN
DOING THOSE FORECASTS, BUT
THERE'S SO MANY FACTORS THAT CAN
AFFECT THEM. SO THE FORECAST HAD
WE HAD A FORECAST OR HAD WE HAD
REVENUES IN LAST YEAR. IN ENOUGH
TIME BEFORE WE ADOPTED THE
BUDGET WOULD HAVE ADOPTED A
DIFFERENT BUDGET. SO PART OF
WHAT WE'RE DEALING WITH NOW IS
THAT CIRCUMSTANCE AND THEN SOME
PROJECTIONS FOR FUTURE THAT ARE
DO NOT HAVE DON'T HAVE REVENUES
AT THE LEVELS THAT OF THE
SPENDING THAT WE WERE HOPING SO
WE'RE GOING TO HAVE TO MAKE
ADJUSTMENTS, AND THE GOVERNOR
HAS PUT OUT HIS PROPOSAL FOR HOW
WHAT ADJUSTMENTS AND HOW TO MAKE
THOSE ADJUSTMENTS AND OBVIOUSLY
THE LEGISLATURE. THAT'S WHAT
WERE THE PROCESS WE'RE
BEGINNING. TODAY IS OUR THE
SENATE'S VETTING OF THAT ARE
SUBCOMMITTEES WILL START
SOMETIME LATE FEBRUARY OR MARCH
TO GO INTO THE DETAILS. AND THEN
, OF COURSE, WE WILL SPEND THE
NEXT, UH, X MONTHS REALLY
GETTING INTO THE WEEDS THAT IT
AND GETTING IN THE BACK AND
FORTH. TO THE POINT WHERE WE ARE
READY AND ABLE TO ADOPT A BUDGET
JUNE 15TH AS OUR CONSTITUTIONAL
REQUIREMENT IS, SO THAT'S OUR
CIRCUMSTANCE, AND I WANT TO
START FIRST. LET ME LOOK AT MY
AGENDA. UM WE WILL START WITH
ERIC LEE FROM DEPARTMENT OF
FINANCE. BUT LET ME JUST TURN TO
MY VICE CHAIR. SENATOR NEAL. OH,
WOULD YOU LIKE TO MAKE ANY CAR
BEFORE I TURN OVER TO ERIC? ALEX
YES. THANK YOU VERY MUCH. IT IS
TRUE THAT FORECASTS ARE NEITHER
RIGHT NOR WRONG. UH BUT THEY CAN
BE EITHER MORE OR LESS RELIABLE.
AS A TOOL FOR ADOPTING THE
BUDGET. AND I TEND TO THINK THAT
THE PROPOSAL. OF A BUDGET
ADVISOR IS PROBABLY A LITTLE BIT
EASIER TO RELY UPON THAN THE
BUDGET WRITER. THERE'S A
DIFFERENCE IN APPROACH TOWARDS
THE TWO ISSUES, BUT I LOOK
FORWARD TO, UH, DEPARTMENT OF
FINANCE, EXPLAINING WHY THEY
BELIEVE THAT THE GOVERNOR'S
PROPOSAL IS A MORE RELIABLE
FORECAST AND IS THE ALEJO'S. ALL
RIGHT. AND BEFORE MISS LEE
BEFORE WE START WITH YOU TAKE
ROLE TO ESTABLISH A QUORUM. SO
SECRETARY SANDY, LET'S DO THE
RULE. SENATOR SKINNER HERE,
NEIL. OH HERE. BECKER FIERRO,
DOLLY, SO EGGMAN GROVE. LAIRD
MCGUIRE, MENJIVAR MEN, NEWMAN
BALL, BUT DIA. ROTH TO SMALLWOOD
QUIVERS. SO WE HAVE A QUORUM SO
WE MAY PROCEED, MISS LEE. GREAT
GOOD AFTERNOON CHAIR. SKINNER
VICE TURN YELLOW AND MEMBERS OF
THE BUDGET COMMITTEE ERIKA LEE
WITH THE DEPARTMENT OF FINANCE,
AND I'M HERE TO PRESENT TO YOU.
THE 24 GOVERNORS BUDGET. UM AND
I WOULD START BY SAYING A LOT OF
MY INTRO IS REALLY, UM SAID BY
CHAIR SKINNER IN REGARDS TO SOME
OF THE CIRCUMSTANCES THAT WE
WERE ENTERING INTO AS WE DEVELOP
THIS YEAR'S GOVERNOR'S BUDGET.
UM SEVERAL PRETTY EXTRAORDINARY
EVENTS OCCURRED PRIOR TO THIS,
THE FIRST BEING A SURGEON
REVENUES FROM 1920 THROUGH 2122
BIG THREE TAXES, PIT CORP AND
SALES TAX GROUP BY RECORD 55%
DURING THAT TIME PERIOD, AND
CAPITAL GAINS REALIZATIONS
INCREASED 11.6% OF PERSONAL
INCOME, AND THAT'S THE HIGHEST
EVER MORE THAN DOUBLING THE
HISTORIC AVERAGE OF 5. UM AND
GENERALLY WHEN THE STATE
EXPERIENCES SUCH UPWARD SWINGS,
WE EXPECT IT TO BE FOLLOWED BY A
PERIOD OF REVENUE DECLINES AND
THE QUESTION IS ALWAYS HOW MUCH
AND WHEN WOULD THOSE DECLINES
OCCUR? PROJECTING REVENUES, AS
STATED EARLIER IS DIFFICULT. AND
WE YOU'RE RIGHT. UM MR NEELA,
WE'RE ALWAYS WRONG. UM HOW LONG
ARE WE AS ALWAYS THE BIG
QUESTION, BUT THIS TASK WAS MADE
EVEN MORE DIFFICULT BECAUSE THE
IRS PUSHED THE TAX FILING DELAY
OR TAX. FILING DAY. 1ST OCTOBER
AND NOVEMBER AND SO INFORMATION
VITAL INFORMATION I WOULD SAY IN
REGARDS TO CASH A TAX RECEIPTS
THAT WE NORMALLY HAVE IN THE
SPRING TO HELP DEVELOP THE, UM
MAY REVISION THAT THEN CAN
INFORM THE BUDGET ACT. WE JUST
DIDN'T HAVE THAT INFORMATION
AVAILABLE AT THE TIME. SO WE DID
OUR BEST TO FORECAST WHAT WE
THOUGHT WOULD BE SHIFTED FROM
THE SPRING INTO THE FALL. AND
SUCH AN UNPRECEDENTED DELAY. UM
REALLY DID HAVE A SIZABLE IMPACT
ON THE TIME IN WHICH WE HAD, UM,
TO DEVELOP THIS BUDGET AS WELL.
SO THE 2023 BUDGET ACT DID
CAPTURE THE DOWNWARD TREND IN
REVENUES, BUT IT WASN'T UNTIL WE
HAD THE TAX RECEIPTS IN HAND.
LATER THIS THIS PAST FALL THAT
WE ACTUALLY UNDERSTOOD THE
MAGNITUDE IN THE 23 BUDGET. WE
PROJECTED ABOUT 42 BILLION OF
PIT AND CORP TAXES WOULD BE
SHIFTED TO THE FALL AND WE
ACTUALLY WERE 25.7 BILLION LOWER
THAN THAT, AND OVERALL, OUR
GENERAL FUND REVENUE IN THE
BUDGET WINDOW, WHICH IS THE
THREE YEARS PRIOR YEAR. WHERE
THE CURRENT YEAR THAT WERE IN
THE BUDGET YEAR THAT WE'RE
LOOKING TOWARD. UM WE ARE
PROJECTING 44 BILLION LOWER THAN
WHAT WAS ACTUALLY ASSUMED IN THE
GOVERNOR'S BUDGET. I'M SORRY IN
THE BUDGET ACT THE GOVERNOR'S
BUDGET, HOWEVER, DOES NOT ASSUME
A RECESSION. WE SEE THIS AS MORE
OF A CORRECTION OF REVENUES AND
ESSENTIALLY GOING BACK TO A
NORMALIZATION OF PRE PANDEMIC
AND IF YOU LOOK AT THE TREND, UM
2022 23 TAX RECEIPTS OR 23%
HIGHER THAN THEY WERE IN 1819
PRE PANDEMIC, SO WE'RE NOT FOR
THOSE TWO YEARS OF SPIKES. WE'RE
SETTLING GROWING IN TERMS OF OUR
REVENUE, SO THAT'S WHY WE CALL
IT A CORRECTION. SO WITH CASH
DATA IN HAND, WE ARE NOW
ESTIMATING THE BUDGET SHORTFALL
TO BE ABOUT 37.9 BILLION, WHICH
INCLUDES POSITIVE 3.4 BILLION
FOR A SAFETY THAT WHAT WE CALL
OUR STATE FUND FOR ECONOMIC
UNCERTAINTY. AND AS SURE SKINNER
MENTIONED HAD WE KNOWN THIS BACK
IN MAY, WE WOULD HAVE
INCORPORATED SOME OF THE
SHORTFALL THAT WE'RE NOW SEEING
THIS CORRECTION IN TERMS OF
REVENUE. BACK IN THE 23 BUDGET
ACT. HOWEVER WE ARE HERE WHERE
WE ARE NOW, AND WE DO HAVE TO
CORRECT FOR IT NOW. SO OVERALL,
THE GOVERNOR'S BUDGET INCLUDES
EXPENDITURES OF 291.5 BILLION IN
TOTAL FUNDS, OR ABOUT 208.7
BILLION GENERAL FUND. THIS
SPENDING IS ABOUT 20 BILLION
LOWER TOTAL, UM, ABOUT 17
BILLION LOWER GENERAL FUND. THEN
WHAT WAS IN THE BUDGET? THE
BUDGET ACT. AND SIMILAR TO LAST
YEAR. WE'RE PROPOSING A SUITE OF
PACKAGE OF BALANCED BUDGET
SOLUTIONS TO ADDRESS THE
SHORTFALL AND SIMILAR LAST YEAR.
I'LL GO THROUGH THESE CATEGORIES
. I WOULD JUST LIKE TO PREFACE
AND MAYBE THIS DOESN'T NEED TO
BE SAID, BUT NONE OF THESE
PROPOSALS THAT ARE BEFORE YOU
WERE EASY TO MAKE. THEY ARE
PROPOSALS AND WE UNDERSTAND THAT
THERE MIGHT MAY BE A DIFFERENCE
IN DIRECTION OR PRIORITIES FOR
THE LEGISLATURE AND FORWARD TO
HAVING THE CONVERSATION WITH YOU
ABOUT THOSE AND ALSO UNDERSTAND
AND WOULD LIKE TO HEAR
ALTERNATIVES FROM THE
LEGISLATURE. THE FIRST CATEGORY
OF SOLUTIONS IS THE LARGEST. IT
IS OUR RESERVES, SO THE BUDGET
PROPOSES 13.1 BILLION IN RESERVE
SOLUTIONS. AS YOU WILL RECALL.
WE HAVE NOT DIPPED INTO A
RESERVE. SO THE BUDGET ACT THAT
IS IN PLACE RIGHT NOW MAINTAINED
OUR BUDGET STABILIZATION,
MAINTAINED OUR SCHOOL RESERVE IN
THE HEALTH SAFETY NET. AND THIS
ALLOWED US TO MAINTAIN BUDGET
RESILIENCY. SHOULD WE NEED IT
NOW? AND SO NOW WE ARE PROPOSING
TO WITHDRAW FROM THOSE RESERVES
SPECIFICALLY ABOUT 1212 BILLION
FROM THE RAINY DAY FUND 900 FROM
THE SAFETY NET RESERVE AND THEN
ON THE PROP 98 SIDE OF THE
BUDGET. WE HAVE 5.7 BILLION FROM
THE SCHOOL'S RAINY DAY FUND THAT
WE ARE PROPOSING, UM TO WITHDRAW
. THAT STILL, HOWEVER, LEAVES US
WITH 18.4 BILLION IN TOTAL TOTAL
RESERVES THAT ARE LEFT FOR
CONTINUED BUDGET RESILIENCE. THE
SECOND SUITE OF SOLUTIONS IS OUR
REDUCTIONS, AND IT IS THE NEXT
LARGEST CATEGORY AT 8.5 BILLION.
AS A GOVERNMENT GOVERNOR
MENTIONED AT HIS BUDGET BRIEFING
A COUPLE WEEKS AGO. WE'RE
LOOKING FIRST TO THE
ADMINISTRATION FOR SOME OF THAT
SAVINGS, AND SO WE HAVE SENT OUT
DIRECTION TO DEPARTMENTS TO ONLY
CONTINUE WITH ESSENTIAL
FUNCTIONS IN TERMS OF
EXPENDITURES AND TO REALLY
REDUCE THOSE CURRENT YEAR
EXPENDITURES. IN ADDITION THAT
THE GOVERNOR'S BUDGET INCLUDES A
PROPOSAL THAT WOULD SWEEP
FUNDING FOR VACANT ANY VACANT
POSITION THAT OUR DEPARTMENT HAS
FOR ONE YEAR, AND THAT'S ABOUT
762 MILLION. AND IN SAVINGS
OTHER, UM SIGNIFICANT OR NOTABLE
REDUCTIONS WOULD BE 2.9 BILLION
IN REDUCTION CLIMATE PRODUCTIONS
IN CLIMATE 1.6 BILLION REDUCTION
IN EDUCATION PROGRAMS. 1.2
BILLION REDUCTIONS IN HOUSING.
WE ALSO HAVE SOME REDUCTIONS IN
COW WORKS PROGRAMS AS WELL AS
CHILD WELFARE PROGRAMS. THE NEXT
BUCKET IS DELAYS AND DEFERRALS.
WHICH TOTAL ABOUT 7 TO 7.2
BILLION. UM THESE ARE DELAYS.
THEY ARE NOT PROPOSED AS
REDUCTIONS AT THIS TIME THEY
WILL BE FUNDED. BUT IN FUTURE
YEARS, THE SOME NOTABLE DELAYS
ARE TO TRANSIT AND INTERCITY
RAIL CAPITAL PROGRAM. WE ARE
PROPOSING DELAYING OF
2,000,000,001 BILLION IN THE
BUDGET YEAR. ALLOW 1 BILLION TO
CONTINUE TO GO FORWARD BUT
MOVING 1 BILLION DOWN TO OUT
YEARS. CLEAN ENERGY RELIABILITY
INVESTMENT ALSO ABOUT 400
MILLION DELAYED UM, AND HEALTH
AND HUMAN SERVICES PROGRAM
PROGRAMS. WE ARE PROPOSING THE
DELAY OF FULL IMPLEMENTATION FOR
THE DDS SERVICE PROVIDER RATE
REFORM, UM, AS WELL AS DELAY IN
THE BEHAVIORAL HEALTH BRIDGE
PROGRAM. NOW THESE DELAYS ARE IN
THIS THIS BEHAVIORAL HEALTH
BRIDGE PROGRAM IN PARTICULAR, UM
, DELAYS ONLY A PORTION OF THE
FUNDING. THEY'RE STILL CONTINUED
FUNDING OF 484 IN CURRENT YEAR
AND 457 IN BUDGET YEAR. ON THE
ECONOMIC DEVELOPMENT FRONT. WE
HAVE CALIFORNIA JOBS. FIRST
DELAY OF 300 MILLION AND WE HAVE
A $515 MILLION DELAY IN
PRESCHOOL TK FULL KINDERGARTEN
FACILITIES GRANT PROGRAM ON THE
DEFERRAL SIDE, BOTH FOR THE U. C
AND THE C C. S YOU WERE
PROPOSING, DEFERRING FOR ONE
YEAR THE 2425 COMPACT, WHICH IS
A 5% BASE INCREASE TO BOTH
SYSTEMS. THAT'S ABOUT 228 FOR
YOU SEE, ALONG WITH THE 31
MILLION, WHICH IS THE
NONRESIDENT REVENUE OFFSET AND
THEN FOR THE CSU. THAT'S ABOUT
240 MILLION. THESE DEFERRALS ARE
BASICALLY PROMISES INTO THE
FUTURE THEN THIS ALLOWS IT
ALLOWS BOTH THE CSU AND THE èC
TO SEEK INTERIM FINANCING SO
THAT THEY CAN CONTINUE TO
SUPPORT THEIR OPERATIONS IN
BUDGET YEAR. NEXT WE HAVE
REVENUE AND BORROWING AT 5.7
BILLION. UM COUPLE OF THINGS TO
NOTE HERE IS THE INCREASE IN THE
TAX. GENERAL FLYNN OFFSET WE
HAVE IT 3.8 BILLION AND THEN WE
ARE CONFORMING. WE'RE PROPOSING
TO CONFORM TO THE TAX CUTS AND
JOBS ACT, THE FEDERAL ACT FOR
NET OPERATING LOSS LIMITATIONS.
THAT'S ABOUT 300 MILLION IN
REVENUE. AND THEN FINALLY, WE
HAVE FUND SHIFTS. THE MOST
NOTABLE BEING SHIFTS FROM THE
GENERAL FUND TO THE GREENHOUSE
GAS REDUCTION FUND, AND THAT
TOTALS THE FUND SHIPS IN TOTAL
TOTAL 3.4 BILLION. SO JUST IN
CONCLUSION, MUCH OF THE STORY OF
OUR BUDGETS ARE STATE BUDGETS
ARE BASED ON BOOM AND BUST AND
IT IS LARGELY DUE TO THE
PROGRAM. PROGRESSIVE NATURE OF
OUR TAX SYSTEM. UM AND WE HAVE
TRIED TO MITIGATE THAT
VOLATILITY, WHICH WE'VE SEEN HIT
EXTREMES IN THE IN THE PAST FEW
YEARS, AND VOTERS PASSED PROP.
TWO SO WE HAVE PROPOSITION TO
WHICH ASIDE RESERVE REQUIREMENTS
ANNUALLY AND THAT'S HELPED US TO
BUILD UP OUR RESERVES THAT WERE
NOW TAPPING INTO HOWEVER, AS THE
GOVERNOR NOTED AT HIS BUDGET
BRIEFING, IT'S LIKELY TIME TO
REVISIT AND BOOST THESE RESERVES
THESE RESERVE REQUIREMENTS AND
WE HOPE TO HAVE THAT
CONVERSATION WITH THE
LEGISLATURE TO LOOK AT OPTIONS
AND HOW WE CAN DO THAT SO THAT
WE CAN SAVE MORE MONEY DURING
UPSWINGS SO WE DON'T HAVE TO CUT
CORE PROGRAMS DURING THE DOWN
SWINGS. UM AND AS I STARTED OFF
EARLIER WITH US THAT THESE ARE
PROPOSALS THAT ARE IN THE
GOVERNOR'S BUDGET TO ATTEMPT TO
MEET THE 37.9 BILLION SHORTFALL,
UM AS ALWAYS, IT'S THE FIRST
PART OF THE CONVERSATION PRETTY
LENGTHY CONVERSATION THAT WE
HAVE WITH THE LEGISLATURE AND WE
DO LOOK FORWARD TO ENGAGING WITH
YOU ON, UM, COMING TO, UM SOME
SHARED AGREEMENT, PARTICULARLY
IN THE NEXT FEW WEEKS AS WE
THINK ABOUT SOME OF THE EARLY
ACTION THAT WE'RE PROPOSING, WE
BELIEVE IT'S OUR SHARED GOAL TO
DEVELOP A BUDGET THAT HAS A
BALANCED APPROACH TO MEETING
THESE THIS LARGE SHORTFALL AND
AT THE SAME TIME PROTECTS A LOT
OF THE PROGRESS THAT WE'VE MADE
IN PRIORITY AREAS AS WELL AS
SETS ASIDE. MORE RESERVES. SO
AGAIN, THANK YOU AND LOOK
FORWARD TO RESPONDING TO YOUR
QUESTIONS. GREAT THANK YOU, MISS
LEE FROM DEPARTMENT OF FINANCE
AND MEMBERS WILL WAIT UNTIL WE
HEAR FROM THE LA OH, BEFORE WE
ENTERTAIN OUR QUESTIONS, SO MR
PADDOCK WILL ALLOW YOU TO
PROCEED. WELL THANK YOU VERY
MUCH. MADAM CHAIR SKINNER AND MR
VICE CHAIR NILO FOR INCLUDING
OUR OFFICE AND TODAY'S HEARING
AND WHAT I WAS PLANNING TO DO
TODAY. IS PROVIDE SOME
ASSESSMENT AND HIGH LEVEL
COMMENTS ON CERTAIN ASPECTS
MAJOR ASPECTS OF THE GOVERNOR'S
PROPOSAL. HOPEFULLY YOU HAVE THE
HANDOUT FROM OUR OFFICE BEFORE
YOU, BUT WHAT I THOUGHT I WOULD
DO FIRST IS STARTING ON PAGE
ONE, JUST FOR SETTING THE TABLE
FOR THIS CONVERSATION. THERE ARE
THREE QUESTIONS THAT I THINK ARE
HELPFUL TO THINK ABOUT. THE
FIRST IS JUST LOOKING AT THIS
CURRENT MOMENT. WHY DOES THE
STATE FACE THIS BUDGET DEFICIT
PROBLEM? AND IT'S YOU KNOW, EASY
TO FORGET THAT WE WERE RECALL
THAT BACK WHEN WE ADOPTED THE
BUDGET FOR THE CURRENT YEAR BACK
IN JUNE, THE MULTI YEAR FISCAL
BUDGET ESTIMATES FROM THE
DEPARTMENT OF FINANCE SHOWED
THAT THERE WOULD BE A $14
BILLION DEFICIT IN THE COMING
BUDGET YEAR. SO WE'RE STARTING
OFF WITH THAT SORT OF DEFICIT
POSITION TO BEGIN WITH. AND THEN
AS BOTH THE CHAIR AND MY
COLLEAGUE HERE FROM FINANCES
MENTIONED, YOU KNOW, THE
REVENUES DID BEGIN TO
UNDERPERFORM THROUGHOUT 2022.
THERE WAS SOME REVENUE EROSION
AND IT PERSISTED THROUGHOUT ALL
OF 2223 THAT FISCAL YEAR.
EVENTUALLY REVENUES FELL BY 20%
THAT YEAR. WE HAD THE
COMPLICATION OF NOT KNOWING AT
THE TIME THE MAGNITUDE OF THE
DROP OFF IN REVENUE. AH AND WE
NOW KNOW LOOKING BACK AT IT THAT
REVENUES FELL ABOUT 26 BILLION,
OR ABOUT 26 BILLION OF THE
REVENUE DECLINE THAT WE'RE
TALKING ABOUT TODAY IS
ATTRIBUTABLE TO THAT PRIOR
FISCAL YEAR, OUR OFFICE IN
DECEMBER REDUCED OUR ESTIMATE OF
REVENUES FOR THE STATE FOR THE
BUDGET WINDOW BY 58 BILLION.
DEPARTMENT OF FINANCE REDUCED
THERE'S MORE RECENTLY BY 44
BILLION. UM SO THIS POINT IS,
THERE'S NOT REALLY DISAGREEMENT
ABOUT THE PRIOR YEAR DECLINE.
NOW. NOW WE KNOW WHERE WE DIFFER
, REALLY IS ON WHEN REVENUES
BEGIN TO RECOVER. WHEN WILL WE
SEE A REBOUND AFTER THIS
DOWNTURN? AND IF YOU LOOK AT
FINANCES REVENUE ESTIMATES WHAT
THEY'RE ASSUMING IS THAT IN THE
CURRENT FISCAL YEAR, GENERAL
FUND REVENUES WILL INCREASE BY
ABOUT 8. ARE REVENUE ESTIMATES
DO NOT SEE THAT HAPPENING. THEY
HAVE ANOTHER YEAR KIND OF
STAGNATION. AND THEN IN THE
SUBSEQUENT YEAR AFTER THAT, WE
WOULD BEGIN TO SEE REVENUE
GROWTH. OUR RATIONALE IS THAT
HISTORICALLY THAT IS NOT WHAT
HAS TENDED TO HAPPEN WHEN WE
HAVE A BIG DROP OFF IN REVENUES
IN CALIFORNIA. USUALLY THERE'S A
YEAR OR TWO OF FLATNESS IN THE
REVENUE TREND, AND THAT'S THAT'S
WHAT THAT ONE MAJOR REASON WE
THINK THIS THE SECOND IS JUST
LOOKING AT THE YEAR TODAY. CASH
COLLECTIONS YEAR TODAY, CASH
COLLECTIONS ARE UNDERPERFORMING
PRIOR ASSUMPTIONS, EVEN THE MOST
RECENT INFORMATION WE HAVE FOR
JANUARY IS UNDERPERFORMING. THE
GOVERNOR'S RECENT ESTIMATES AND
SO FAR THOSE CASH COLLECTIONS
ARE TELLING US THAT IT'S MORE
LIKELY WE THINK THAT THE
REVENUES WILL UNDERPERFORM. THE
ESTIMATES SHOWN IN THE
GOVERNOR'S BUDGET PROPOSAL. THE
SECOND QUESTION IS WELL HOW?
GIVEN THAT WE HAVE A PROBLEM.
HOW LIGHT HOW PREPARED IS THE
STATE FOR DEALING WITH THIS
BUDGET PROBLEM? HERE THERE'S A
YOU KNOW A LITTLE BETTER NEWS
BECAUSE WE DO GO INTO THIS ON
MUCH STRONGER FISCAL FOOTING
THAN WE DID SAY BEFORE THE GREAT
RECESSION, THE STATE HAS DONE A
VERY GOOD JOB OF BUILDING UP
LARGE BALANCES IN ITS BUDGET
RESERVE ACCOUNT. UH AND IN
ADDITION, WE HAVE VERY YOU KNOW,
HIGH LEVELS OF CASH THROUGHOUT
STATE GOVERNMENT, SO WE HAVE NO
LIQUIDITY CONSTRAINTS IN OUR
ABILITY TO FUND OUR
EXPENDITURES. AND AS YOU WILL
RECALL, THAT REALLY LED TO A
CRISIS ATMOSPHERE BACK IN THE
GREAT RECESSION TIME. IN
ADDITION, A LOT OF THE
ALLOCATIONS THAT WE MADE FROM
THE RECENT LARGE SURPLUSES IN
THE POST PANDEMIC YEARS WERE PUT
TO ONE TIME IN TEMPORARY
SPENDING PURPOSES. AND SO THAT
DOES GIVE THE STATE THE
FLEXIBILITY TO PULL BACK
PORTIONS OF THOSE ALLOCATIONS TO
FIND SAVINGS. GIVEN THIS THIS
DEFICIT WE FACE FINALLY, THE
FINAL QUESTION IS, WHAT IS THE
OUTLOOK FOR THE FUTURE YEARS?
AND HERE? BOTH OUR OFFICE AND
DEPARTMENT OF FINANCE IT ARE. WE
ARE BOTH FORECASTING OR
CURRENTLY PROJECTING THAT THE
STATE WILL CONTINUE TO FACE
BUDGET DEFICITS IN THE
SUBSEQUENT YEARS, SO IT'S NOT
JUST A ONE YEAR PROBLEM. IT'S
REALLY WE'RE TALKING IN THE
ORDER OF 30 BILLION PER YEAR
DEFICITS IN THE SUBSEQUENT
YEARS, THREE YEARS AFTER THE
UPCOMING BUDGET YEAR, SO IN
LIGHT OF THAT, WHAT YOU WOULD
HEAR FROM OUR OFFICE FOR ME AND
OUR OFFICE THROUGHOUT THE
UPCOMING BUDGET HEARINGS, I
THINK IS A SET OF
RECOMMENDATIONS KIND OF ORIENTED
AROUND DEVELOPING, UM THE
CHANGES THAT WOULD MITIGATE THE
FUTURE CHALLENGES WHILE AT THE
SAME TIME PRESERVING SOME OF THE
STATE'S BUDGET RESILIENCE AND
WILL HELP IT. HELP THE STATE,
YOU KNOW, NAVIGATE THESE
UNCERTAIN TIMES IN A BETTER WAY.
SO THAT'S KIND OF THE THEMATIC
COMMENT THAT I WANTED TO
PROVIDE. MOVING TO THE SECOND
PAGE. ON THIS ONE. REALLY JUST
TRYING TO SPEAK TO. WE'VE
RECEIVED A LOT OF QUESTIONS.
I'VE SEEN A LOT OF COVERAGE OF
THIS, YOU KNOW? THE DEPARTMENT
OF FINANCE IS CITED A $38
BILLION DEFICIT OUR OFFICE CITED
IS $68 BILLION DEFICIT, AND IT'S
UNDERSTANDABLE THAT THERE WOULD
BE ATTENTION TO WHAT EXPLAINS
THIS. THERE IS A LARGE
DISCREPANCY EVEN FOR A LARGE
STATE LIKE CALIFORNIA. THIS IS
$30 BILLION DIFFERENCE AND
WHAT'S CAUSING IT? UM, ARE AS
WE'VE UNPACKED THE GOVERNOR'S
PROPOSAL. WHAT WE THINK IS THAT
THE DEFICIT, THE DEFICIT THAT
THE GOVERNOR'S BUDGET REFERS TO
IS NOT SO FAR OFF FROM THE
NUMBER THAT WE ARE CITING. AND
IF YOU LOOK AT THIS FIGURE ON
THE PAGE HERE, WE'RE TRYING TO
RECONCILE THE TWO ESTIMATES.
STARTING AT THE FAR LEFT THE BAR
THERE IS THE GOVERNOR'S CITED
$38 BILLION BUDGET PROBLEM TO
IMMEDIATELY TO ITS RIGHT OR TWO
SMALLER BARS AND THOSE SOME TO
ABOUT 20 OR $21 BILLION, AND SO
IF YOU ADD THOSE TO THE 38
BILLION, THOSE ARE BRING US TO
58 BILLION. THAT'S OUR ESTIMATE
OF WHAT THE GOVERNOR'S BUDGET
ACTUALLY SOLVED. NOW THOSE TWO
SMALLER BARS, THOUGH IN THE
GOVERNOR'S BUDGET PROPOSAL
REPRESENT, UM, CHANGES TO THE
EXPENDITURE BASE ASSUMED CHANGES
IN THE SPENDING BASE OF THE
STATE. WE DO NOT ASSUME THAT
THOSE WILL JUST OCCUR BECAUSE
THEY WOULD NOT OCCUR JUST AS A
MATTER OF APPLYING CURRENT LAW,
THEY WILL REQUIRE THE
LEGISLATURE TO ACT AND VOTE ON
THESE TWO TO MAKE THIS HAPPEN.
IN THAT SENSE, WE VIEW THEM AS
POLICY CHOICES, SO IT'S REALLY
YOUR DECISION TO MAKE THOSE
CHANGES, AND THAT'S WHY WE DON'T
INCLUDE THEM. SO THEN ONCE WE
HAVE THE $58 BILLION NUMBER, YOU
MOVE OVER TO THE NEXT PANEL, AND
HERE WE'RE JUST SHOWING THAT YOU
GET TO THE $68 BILLION PROBLEM
THAT WE ESTIMATE BECAUSE WE HAVE
LOWER REVENUE ESTIMATES. AND
THEN THERE'S SOME OTHER SMALLER
CHANGES. BUT YOU KNOW, THESE ARE
THE TWO MAJOR COMPONENTS OF
THESE, YOU KNOW DIFFERENT
ESTIMATES OF THE BUDGET PROBLEM.
MOVING ON TO PAGE THREE. I WAS
GOING TO PROVIDE OUR
CHARACTERIZATION OF THE MAJOR
BUCKETS IN WHICH THE GOVERNOR'S
PROPOSING SOLUTIONS AND THEN
BRIEFLY OUR ASSESSMENT OF A
COUPLE OF THEM COUPLE OF THE
MAJOR ONES. FIRST YOU CAN SEE
LOOKING AT THIS PIE CHART THAT
ALMOST HALF OF THE TOTAL
SOLUTIONS BEING PROPOSED ARE
SPENDING RELATED SOLUTIONS. THEY
SOME 2 26 BILLION. IN ADDITION,
THERE IS A REDUCTION TO
PROPOSITION 98. I'M NOT
INCLUDING THAT, BUT IF YOU DO
INCLUDE THE PROPOSITION 98
REDUCTION, YOU'RE WELL OVER HALF
OF THE SOLUTIONS BEING IN THE
CATEGORY OF SPENDING SIDE
ADJUSTMENTS. THEN THERE'S 13% OF
THE SOLUTION AS MY COLLEAGUE
FROM FINANCE MENTIONED 13% OF IT
. I'M SORRY. 22% OR 13 BILLION
IS FROM USE OF RESERVES. AND
THEN THERE ARE SOME SMALLER
ITEMS THAT MAKE UP THE BALANCE
COST SHIFTS AND REVENUE
INCREASES. UH, JUST TO PROVIDE
BRIEFLY AND OUR HIGH LEVEL
ASSESSMENT OF A FEW OF THESE,
YOU KNOW, WE THINK THAT THE USE
OF THE RESERVES IS APPROPRIATE
WHEN YOU'RE FACING A BUDGET
DEFICIT, A LARGE BUDGET DEFICIT
LIKE THIS, YOU KNOW, WE CALL IT
A RAINY DAY FUND. THERE'S
CERTAINLY A RAINY DAY WHEN YOU
LOOK AT THE FISCAL PICTURE AND
SO USING SOME OF THE RESERVES IN
THIS CIRCUMSTANCE MAKES SENSE.
AND WE ALSO THINK THAT THE
GOVERNOR'S PROPOSED USE OF ABOUT
HALF IS PRUDENT. HE MAINTAINS
ABOUT 11.1 BILLION IN THE BUDGET
STABILIZATION ACCOUNT, AND THAT
COULD BE VERY USEFUL GIVEN THE
UNCERTAINTY WE FACE AHEAD. AH, I
DID WANT TO MENTION ON THE
PROPOSITION 98 REDUCTION. SO IN
OUR YOU KNOW, AS WE'VE LOOKED AT
THIS PROPOSAL WITH WE FIND THAT
IT'S UNFORTUNATELY IT'S NOT A
COMPLETE PRESENTATION. IT'S NOT
FULLY EXPLAINED WHAT'S GOING ON
HERE AND SO WE STILL HAVE
QUESTIONS ON OUR STAFF IS
LOOKING INTO THIS AND CONTINUE
WILL WILL CONTINUE TO TRY TO BE
ABLE TO EXPLAIN IT. BUT IT DOES
SEEM TO REST ON AN $8 BILLION
REDUCTION TO THE PRIOR YEAR.
PROPOSITION 98 FUNDING LEVEL,
BUT IF YOU READ THE BUDGET
DOCUMENTS, THEY ALSO SAY THAT
THE LOCAL EDUCATION AGENCIES
WILL NOT BE ADVERSELY IMPACTED,
PARAPHRASING BUT THAT THEY WOULD
BE PROTECTED. AND SO IT'S
UNCLEAR TO US HOW THIS IS WHAT
THE MECHANISM IS TO EFFECTUATE
BOTH OF THESE OUTCOMES. AND SO
WE'RE HOPING TO GET MORE
INFORMATION ABOUT THAT. AND I
DID WANT TO JUST COMMENT, TOO,
ON THE SPENDING RELATED
SOLUTIONS, AS I MENTIONED,
THERE'S 26 BILLION OF THESE IN
IN TOTAL BY OUR ACCOUNT. THESE
INCLUDE THINGS LIKE JUST
OUTRIGHT REDUCTIONS. DELAYS
DIVERSIONS AND FUND SHIFTS. AND
WE THINK MANY OF THESE PROPOSALS
PROBABLY ARE YOU KNOW VERY MUCH
WORTHY OF CONSIDERATION, GIVEN
THE BUDGET CONDITION THAT WE
FACE, HOWEVER, SOME OF THEM ALSO
POSE CHALLENGES, FOR EXAMPLE. OF
THE 26 BILLION OF SOLUTIONS ON
THE SPENDING SIDE HERE. 8
BILLION OF THEM ARE IN THE FORM
OF DELAYS. AND SO THAT 8 BILLION
COMES, REDUCES OUR EXPENDITURES
IN THE COMING BUDGET YEAR, SO
THAT HELPS THE BUDGET PROBLEM.
BUT BY WHEN YOU SAY DELAY, IT
MEANS YOU'RE PUSHING THEM OUT
THOSE EXPENDITURES OUT TO FUTURE
YEARS AND SO 5 BILLION OF THAT 8
BILLION SHOWS UP AS AN
EXPENDITURE IN 2025 26 2 BILLION
IN 2026, 27 AND 1 BILLION IN
2728. GIVEN THAT WE ALREADY
FACED THESE 30 BILLION IN ANNUAL
DEFICITS AFTER THE BUDGET YEAR.
THIS PARTICULAR PROPOSAL. WHILE
IT HELPS IN THE BUDGET YEAR, IT
ACTUALLY EXACERBATES THE BUDGET
PROBLEM IN THOSE FUTURE YEARS,
SO THAT'S 11. CRITIQUE THAT WE
HAVE AND THAT YOU MAY EVEN NEED
TO CONSIDER SOME OF THESE
PROPOSALS THAT ARE CHARACTERIZED
AS DELAYS. THEY MIGHT ACTUALLY
WIND UP BEING CUTS IF THERE
AREN'T THE RESOURCES AVAILABLE
TO FUND THEM. FINALLY ON THE
LAST PAGE OF MY PRESENTATION. WE
HAVE A TEXT BOX HERE THAT I WILL
NOT READ THROUGH, BUT IT
PROVIDES SOME PRINCIPLES FOR THE
LEGISLATURE TO CONSIDER AND KEEP
IN MIND AS YOU CRAFT YOUR OWN
BUDGET, BUT IN GENERAL
RECOMMENDATION AIMS TO MITIGATE
THE PROBLEM IN FUTURE YEARS AND
PRESERVE THE STATE'S RESILIENCE.
THAT WILL HELP YOU WHETHER THE
UNCERTAINTY AHEAD IN PARTICULAR,
I WOULD JUST LEAVE WITH ONE
THOUGHT, WHICH IS TO TRY
CONSIDERING TO MAXIMIZE THE
REDUCTION OF THE ONE TIME
SPENDING THE MORE ONE TIME
SPENDING THAT CAN BE PULLED BACK
NOW, THE MORE OF YOUR RESILIENCE
TOOLS WILL REMAIN IN PLACE IN
FUTURE YEARS LIKE THE BUDGET
RESERVE. THE LESS OF THE YOU
KNOW, ONE TIME SPENDING THAT YOU
PULL BACK NOW, IN ORDER TO
BALANCE THE BOOKS, THE NUMBERS
NEED TO ADD UP. YOU KNOW THAT
IT'S A ZERO SUM PROPOSITION. AND
SO IF YOU DON'T DO THAT, THEN
YOU WILL WIND UP HAVING TO USE
MORE OF THE BUDGET RESERVE IN
THE CUT IN THE CURRENT BUDGET
PROCESS, WHICH WILL LEAVE YOU
WITH FEWER TOOLS IN SUBSEQUENT
YEARS. AND WHILE OUR CURRENT
ESTIMATES ARE, YOU KNOW ROUGHLY
30 BILLION PER YEAR DEFICITS
SIMILAR TO WHAT FINANCES
ESTIMATING WE ALL HOPE THAT
THEY'RE SMALLER THAN THAT. BUT
THEY COULD ALSO BE WORSE. THIS
IS JUST OUR BEST ESTIMATE AT
THIS TIME, AND EACH YEAR THAT WE
GO OUT INTO THE FORECAST.
THERE'S MORE UNCERTAINTY. AND SO
AH, THAT'S AH. JUST A PARTING
THOUGHT WITH THAT. I'LL STOP AND
BE HAPPY TO TAKE ANY QUESTIONS
YOU MAY HAVE. THANK YOU GREATLY
APPRECIATE IT. I'VE GOT A FEW
QUESTIONS I WANT TO START WITH,
BUT I HAVE A LITTLE LIST. I SEE
MR DALI. LET'S SEE. I'VE GOT
JUST TO LET YOU KNOW SO TODAVÍA
LAYER DOLLY. LET ME SEE WHO ELSE
RIGHT AWAY AND ONCE OKAY DEPENDS
OF OUR. I GOT YOU THIS GROVE. MR
NEEL. OH, ACTUALLY GO AFTER ME.
SO I WILL ADD MR NILO TO THE
BEGINNING OF THE LIST. AND THEN
OBVIOUSLY, ANYBODY ELSE CAN BE
ADDED TO LET THE OTHERS OK,
OKAY. ALL RIGHT, UM, GIVE ME
BATTERY GOT YOU NOW. OKAY ALL
RIGHT. OKAY SO LET ME JUST
QUICKLY, UM. I THINK MANY, MANY
ON THE ON MEMBERS AND PUBLIC ARE
INTERESTED IN THE IN. THIS IS A
QUESTION OF BOTH DEPARTMENT OF
FINANCE AND LEO'S OFFICE. IS
THAT WHAT ARE SOME OF THE
ECONOMIC CHANGES THAT DROVE
THESE FORECASTS IN TERMS OF OUR
REVENUES? UM. YOU KNOW,
OBVIOUSLY WE ARE ADOPTING
BUDGETS BASED ON FORECASTS, AND
SO AH, YOU KNOW, WE'RE LOOKING
BACK. WE'RE TRYING TO. OBVIOUSLY
I WOULD HAVE GUESSED BOTH
PARLIAMENT FINANCE AND ELIO
TRYING TO UNDERSTAND. OKAY HOW
CAN WE ADJUST OUR PROJECTIONS TO
BE MORE ACCURATE? SO WHAT WERE
SOME OF THE FACTORS THAT
AFFECTED IT THAT IF YOU COULD
GIVE US SOME INSIGHT ON AND THEN
AH! YEAH THAT'S THAT'S REALLY MY
CORE QUESTION, AND I HAVE ONE
OTHER GO AHEAD. OH I'M SO SORRY.
I'LL TURN THAT QUESTION OVER TO
MY COLLEAGUE WHO HAS SOME MORE
DETAIL ON THE OKAY. GREAT
CATERS. SO I THINK IF WE'RE
TALKING ABOUT THE NINO, THIS
MOST RECENT FORECAST THE
GOVERNOR'S BUDGET. I'M SORRY
KOBE WHITE DEPARTMENT OF FINANCE
. UM REALLY WHAT? WHAT WAS TO
REPEAT, MISLEADS COMMENTS FROM
EARLIER WHEN WE WERE TALKING
ABOUT THE DELAYED A TAX FILING
DEADLINES AND THEN THE CASH
RECEIPTS. RELATED TO THAT THAT
THAT INFORMATION BECAME KNOWN IN
OCTOBER AND NOVEMBER, AND THAT
GAVE US A PICTURE THAT WE DIDN'T
HAVE PRIOR OF WHAT OCCURRED
RELATED TO TAX YEAR 2022. AND SO
THAT WAS A SIGNIFICANT REVISION.
DOWNWARD WHAT? WHAT YOU CAN
SOMETIMES SEE WITH REVENUE
FORECASTS IS SO I MEAN, LIKE WAS
THE STATED EARLIER. WE'RE NOT
FORECASTING A RECESSION. THIS IS
A CORRECTION IN REVENUES. AND WE
THE ECONOMIC INDICATORS ARE
ACTUALLY LOOKING RELATIVELY
SOLID. WE'RE FORECASTING MOD IT
MODEST GROWTH. OUR REVENUE
STRUCTURE IS BUILT UPON AT TIMES
REVENUES REALIZED FROM THINGS
LIKE CAPITAL GAINS AND THINGS
LIKE THAT, AND IT IS NOT ALWAYS
CORRELATED WITH WITH THE ECONOMY
, SO WE MONITOR ALL THE ECONOMIC
INDICATORS. WE HAVE. SPECIFIC
ECONOMIC FORECASTS THAT GOES
INTO THE GOVERNOR'S BUDGET
FORECAST. BUT THIS DOWNWARD
REVISION WAS LARGELY DRIVEN BY
NON ECONOMIC FACTORS. AT LEAST
TWO SIGNIFICANT TO SIGNIFICANT
DEGREE. OKAY ALL RIGHT, ELLA.
OH, DID YOU WANT FROM OUR END
AND I WILL ASK MY COLLEAGUE WHO
MANAGES OUR ECONOMY AND TAX UNIT
, BUT IT DOES SEEM THAT SOME OF
THE CHANGES IN THE ECONOMY AH,
THAT WERE UNDERTAKEN,
PARTICULARLY BY THE FEDERAL
RESERVE TO RAISE INTEREST RATES.
OVER THE LAST COUPLE OF YEARS
HAD AN OUTSIZED EFFECT ON THE
LEVEL OF INVESTMENT ACTIVITY AND
IN FORMS OF INVESTMENT THAT ARE
VERY IMPORTANT TO CALIFORNIA'S
TAX REVENUES, THE TYPES OF
INVESTMENTS THAT LEAD TO
BUSINESS EXPANSIONS STARTUPS
INITIAL PUBLIC OFFERINGS IN
THESE VERY NARROW KIND OF PARTS
OF THE OVERALL ECONOMY. BUT THEY
REALLY HAVE AN OUTSIZED EFFECT
ON OUR REVENUE BASE, BUT WITH
THAT, I'LL TURN IT OVER TO
BRIAN. YEAH, I THINK GABE REALLY
SUMMARIZED IT WELL AND HELP.
YEAH, SORRY. GRANULAR WITH THE
LEGISLATIVE ANALYST'S OFFICE, UH
, I THINK GAVE SOMEWHERE IS IT
WELL, THAT YOU KNOW IF WE THINK
BACK OVER THE LAST FEW YEARS,
OBVIOUSLY, WE WENT THROUGH A
PERIOD OF HEIGHTENED INFLATION
AND CONCERNS THAT WERE RELATED
TO THAT AND IN RESPONSE TO THAT
THE FEDERAL RESERVE TOOK A
SERIES OF ACTIONS TO IN SOME
SENSE. KIND OF PUT THE BRAKES ON
ECONOMIC GROWTH AND EXPANSION
THAT WE WERE HAVING IN RESPONSE
TO CONCERNS ABOUT THE RISING
INFLATION, AND IT APPEARS THAT
THOSE ACTIONS OF THE FEDERAL
RESERVE HAD AN OUTSIZED IMPACT
ON CALIFORNIA'S ECONOMY. IN
PARTICULAR, SOME OF OUR KEY
SECTORS LIKE TECH THAT ARE
REALLY YOU KNOW, DRIVEN BY SOME
OF THAT KIND OF START UP
ACTIVITY AND LOTS OF THE
INVESTMENT THAT WAS DRIVEN BY
THE EXPANSION PERIOD DURING THE
DURING THE PANDEMIC, AND SO IN
SOME SENSE, WE'RE KIND OF SEEING
THE OPPOSITE SIDE OF THE COIN.
NOW WE SAW THE KIND OF
UNPRECEDENTED REVENUE GROWTH
EARLIER IN THE PANDEMIC. AND NOW
YOU KNOW, WE'RE KIND OF SEEING
THE FLIP SIDE OF THAT NOW WITH
THE KIND OF A PULLBACK IN TECH
AND IT PULLED BACK AND
INVESTMENT IN CALIFORNIA START
UPS AND BUSINESSES. AND SO
THAT'S THAT'S PART OF WHAT YOU
KNOW YOU'VE PROBABLY SEEN THE
NARRATIVE ON THE NATIONAL
ECONOMY. THERE'S BEEN A FAIR
AMOUNT OF CONCERN CALLS FOR
RECESSIONS IN THE NATIONAL
ECONOMY. A LOT OF THAT BEING
BECAUSE OF THE ACTIONS TAKEN BY
THE FULLER RESERVE. THERE'S BEEN
A LITTLE BIT OF A DECOUPLING
BETWEEN THE US ECONOMY IN
CALIFORNIA, WHERE THE U. S
ECONOMY AND ECONOMIC INDICATORS
THERE DO CONTINUE TO REMAIN
STRONG. THERE ISN'T MUCH SIGN OF
RECESSION IN CALIFORNIA. THERE'S
A LITTLE BIT MORE WORRYING SIGNS
WE'VE SEEN. OUR UNEMPLOYMENT
RATE HAS BEEN CONSISTENTLY GOING
UP FOR THE PAST YEAR. THE LAST
REPORT. IT JUST WENT OVER 5% AND
THAT'S THE FIRST TIME IT'S BEEN
THERE SINCE 2017 SETTING ASIDE
KIND OF THE TEMPORARY SPIKE WE
HAD EARLY IN THE PANDEMIC. UM WE
HAVE. WE'VE HAD SEVERAL QUARTERS
IN A ROW OF REAL PERSONAL INCOME
DECLINES. WE'VE SEEN TAXABLE
SALES FOLLOWING FOR SEVERAL
QUARTERS IN A ROW. AND SO WE'RE
SEEING SOMEWHAT MORE SIGNS OF
WEAKENING FOR CALIFORNIA'S
ECONOMY IN PARTICULAR, THAT IS A
LITTLE BIT OF A YOU KNOW A
DIFFERENT STORY THAN LOOKING AT
THE NARRATIVE ON THE NATIONAL
ECONOMY. AND A BIG PART OF THAT
STORY LIKELY IS THE IMPORTANCE
OF SECTORS LIKE TECH AND OTHER
INDUSTRIES THAT WERE
PARTICULARLY SENSITIVE TO SOME
OF THE ACTIONS OF THE FEDERAL
RESERVE. KIND OF LEADING TO SOME
, SOME OUTSIDE CONTRACTION FOR
CALIFORNIA. SO MY FOLLOW UP
QUESTION TO THAT IS WE HAVE
HEARD IN, UH, THE FED. YEAH THE
FED HAS INDICATED THAT THEY ARE
LIKELY TO LOWER INTEREST RATES.
WE DON'T KNOW HOW MUCH WE DON'T
KNOW HOW MANY TIMES THIS YEAR.
BUT AGAIN TO BOTH, IS IT. HOW
MUCH DO YOU THINK THAT THEY'RE
LOWERING OF INTEREST RATES MAY
ASSIST THAT YOU KNOW THAT PART
OF CALIFORNIA'S ECONOMY, WHICH
SEEMS UNIQUELY SENSITIVE TO
THAT. TO THOSE SIGNALS. YEAH I
MEAN, I THINK THAT, UM, TO THE
EXTENT THAT THE FELLOW RESERVE
DOES START TO REVERSE SOME OF
THE ACTIONS THEY HAVE TAKEN OVER
THE LAST 18 MONTHS OR SO THAT
THAT WOULD BE BENEFICIAL TO
CALIFORNIA ECONOMY, I THINK UM
RIGHT NOW, THAT'S IT'S A LITTLE
BIT. YOU KNOW, SPECULATIVE,
OBVIOUSLY, TO THE EXTENT THAT
THEY WILL DO THAT THIS YEAR. UM
AND IN LARGE PART, I THINK OUR
FORECAST IS TRYING TO JUST LOOK
AT THE INFORMATION THAT WE HAVE
IN FRONT OF US RIGHT NOW. SOME
OF THAT, YOU KNOW, SOME OF THAT
IS LOOKING AT, UM VARIOUS
INDICATORS AND FINANCIAL MARKETS
AND OTHER THINGS THAT ARE TRYING
TO GAUGE WHAT THE FUTURE ACTIONS
OF THE FED MIGHT BE. UM BUT WE
CAN ONLY YOU KNOW, KIND OF
BUILDING SO MUCH KIND OF
SPECULATION ON WHAT THE FED MAY
OR MAY NOT DO THIS YEAR. OKAY I
WOULD JUST ADD THAT AND I THINK
THIS IS MAYBE THE DIFFERENCE
BETWEEN THE DEPARTMENT OF
FINANCE AND THE LEGISLATIVE
ANALYST'S OFFICE WERE A LITTLE
BIT MORE POSITIVE, OPTIMISTIC
AND IN OUR OUTLOOK, AND I THINK
YOU KNOW, LOOKING AT STOCK. THE
STOCK MARKET MORE RECENTLY HAS
HIT HIGHS. WE HAVE CONSUMER IN
CONSUMER SENTIMENT HAS ALSO HIT
AN ALL TIME HIGH COMPARED TO
BACK AND GOING BACK TO 2021.
NONFARM PAYROLL GROWTH IS
INCREASING. IT HAS INCREASED
OVER 2023 REAL INCOME HAS GROWN
THREE QUARTERS OUT OF 2023. SO
WE'RE LOOKING AT UM DIFFERENT
INDICATORS ARE PERHAPS
INTERPRETING THEM A LITTLE BIT
DIFFERENT THAN THE AH, AND SO WE
ARE A LITTLE BIT MORE OPTIMISTIC
IN REGARDS TO THE NEAR TERM
REVENUE IMPACTS. I WOULD SAY
THAT OVER THE SIX YEARS WE'RE
LOOKING AT THE BUDGET WINDOW AS
WELL AS THREE YEARS AFTERWARDS.
OUR REVENUE DIFFERENCES ARE 2.5
BILLION. THAT'S BEEN A SKILL AND
SO I, YOU KNOW, I THINK SOME OF
THAT IS A TIME A TIMING THING.
MR PADDOCK. THANK YOU. I THINK,
UH, MISS LEE IS CORRECT. I THINK
OVER THE OVERALL PERIOD WE'RE
TALKING ABOUT OUR REVENUES ARE
REALLY VERY CLOSE. UM, WE REMAIN
. COMMITTED TO STANDING BEHIND
THE REVENUE FORECAST. WE HAVE
PRIMARILY BECAUSE THE INCREASE
IN THE STOCK MARKET THAT WE SAW
THROUGHOUT 2023. MOST OF THAT
WAS BUILT INTO OUR FORECAST OF
REVENUES. WE PUT OUT OUR
FORECAST IN DECEMBER. THERE WAS
SOME CONTINUE TO INCREASES
THEREAFTER. BUT MOST OF THE
INCREASE OCCURRED THROUGHOUT THE
EARLIER PART OF THE YEAR. AND WE
HAVE THAT BUILT INTO OUR
FORECAST THEIR MOST RECENT GAINS
THAT WE'VE SEEN IN THE STOCK
MARKET. WE MIGHT HAVE STARTED TO
SEE SOME UPTICK EVEN IN THE
JANUARY CASH COLLECTIONS, BUT WE
HAVEN'T IF ANYTHING, THOSE HAVE
BEEN DISAPPOINTING. AND WHAT
WE'VE NOTICED OVER TIME IS WHEN
WE LOOK AT THE RELATIONSHIP
BETWEEN STOCK MARKET PERFORMANCE
IN THE STATE TAX REVENUES WE
REALLY BENEFIT FROM IS WHEN THE
STOCK MARKET GOES UP HIGH AND
STAYS UP HIGH, SO THERE IS A
PERIOD OF SUSTAINED ELEVATION.
NOW ALTHOUGH WE'RE AT RECORD
HIGHS FOR REALLY KIND OF BACK TO
WHERE WE WERE IN 2021 LITTLE BIT
ABOVE. AND SO THAT'S SOMETHING
TO KEEP IN MIND. HOW LONG WILL
THIS INCREASE REMAIN? THE SECOND
POINT IS THAT IT'S NOT JUST THE
STOCK MARKET. WE ALSO REALLY
NEED TO SEE AN ACCOMPANIMENT OF
INCREASED INVESTMENT ACTIVITY IN
CALIFORNIA BUSINESSES,
EXPANSIONS, STARTUPS, IPOS THAT
I WAS TALKING ABOUT VENTURE
CAPITAL. ALL OF THOSE MEASURES
REMAIN SOMEWHAT DEPRESSED AT
THIS POINT, EVEN WITH THIS LAST
YEAR OF STOCK MARKET INCREASED,
WE HAVEN'T REALLY SEEN THAT COME
BACK. AND SO CERTAINLY WE DON'T
KNOW WHAT WILL HAPPEN. COME MAY
OR APRIL AND IT COULD BE VERY
WELL THAT YOU KNOW THERE COULD
BE HIGHER THAN WE THINK IN TERMS
OF REVENUES, BUT FOR RIGHT NOW,
WE THINK THE DATA ARE LINING UP
IN THE WAY THAT I'M TALKING
ABOUT. GREAT. I APPRECIATE. BOTH
PERSPECTIVES BY ALSO REALLY
APPRECIATE THE KIND OF STUDY ON
THE RECORD BECAUSE AROUND THAT
THERE THERE IS DIFFERENCES
BETWEEN DEPARTMENT OF FINANCES,
PROJECTIONS AND INTERPRETATIONS
AND LEO'S, AND YET THE
DIFFERENCES ARE NOT AS GREAT AS
WHAT WHAT HAS BEEN IN SOME OF
THE POPULAR DISCOURSE. LET'S SAY
SO. CLEARLY PART OF THE PURPOSE
OF MY QUESTIONS WERE TO HELP US
AS MEMBERS UNDERSTAND THAT, SO
WE'RE NOT JUST RESPONDING TO
HEADLINE BUT RATHER WE'RE REALLY
GETTING MORE INTO THE NUANCE OF
THE CIRCUMSTANCE THAT WE'RE
FACING SO THAT WE CAN TRY TO, UH
TO JUGGLE IT AS BEST WE CAN,
AND, UH GET TO THE POINT WHERE
WE HAVE A BUDGET THAT PUTS
CALIFORNIA IN THE BEST POSITION
POSSIBLE, WHICH I THINK
OBVIOUSLY IS WHAT THE
ADMINISTRATION SCHOOL ALSO WAS
IS, UM AND SO WE'RE YOU KNOW,
THIS IS THE BEGINNING OF OUR
PROCESS. SO I APPRECIATE BUT ALL
THE INPUTS YOU'VE GIVEN AND I
MAY HAVE OTHER QUESTIONS LATER,
BUT I'LL JUST GO STARTING ON THE
LIST RIGHT NOW, UM, LET'S GO TO
SENATOR PADILLA. THANK YOU VERY
MUCH, MADAM CHAIR. THANKS,
EVERYONE FOR YOUR WORK. A COUPLE
OF QUESTIONS FIRST, I'M GOING TO
BE A LITTLE MORE PROGRAMMATIC
ANALYTICAL PERSON, THE ENERGY
AND ZERO EMISSION PACKAGE A
COUPLE OF FRONTS THE STATE HAS
FOR A NUMBER OF CYCLES ON THE
IMPLEMENTATION PLANS NECESSARY
TO ACHIEVE OZONE REDUCTION GOALS
HAD FAIRLY CONSISTENT FUNDING IN
THE LAST FEW BUDGET CYCLES. UM
AND IN THE PROPOSAL FROM THE
ADMINISTRATION, THOSE FUNDS ARE
NOT IDENTIFIED GOING FORWARD.
SIMILARLY, WE'RE ALREADY BEHIND
REGIONAL GOALS ON SB 375 PROGRAM
FOR SUSTAINABLE PLANNING AND
COMMUNITIES PROGRAMS. WHAT IF
ANY ANALYSIS, PERHAPS, OR
COMMENT, ADDITIONAL COMMENT LAO
MIGHT HAVE WITH RESPECT TO THE
ABILITY TO COME INTO CONFORMITY
WITH EXISTING STANDARDS. JUST
FROM A SORT OF A POLICY IMPACT
STANDPOINT. THANK YOU, SENATOR.
I'M GOING TO ASK MY COLLEAGUE
ASSIST WITH THIS ONE. THANK YOU.
GOOD AFTERNOON. RACHEL OILERS
WITH THE AH, SO ACTUALLY, UM,
WITH REGARD TO THE ZERO EMISSION
FUNDING PACKAGE, THERE ARE SOME
PROPOSED DELAYS IN THAT PACKAGE
UNDER THE GOVERNOR'S PROPOSAL.
WE HAVEN'T CERTAINLY HAVEN'T HAD
TIME TO KIND OF TAKE A LOOK AT
WHAT THAT WOULD MEAN
PROGRAMMATICALLY. I THINK I
WOULD JUST HIGHLIGHT THAT IS ONE
OF THE AREAS THAT'S NOT REALLY
PROPOSED FOR REDUCTIONIST
COMPARED TO SOME OF THE OTHER
PACKAGES. IT IS MORE OF A DELAY
AND SHIFTING OF FUNDS SHIFTING
FROM THE GENERAL FUND TO THE
GREENHOUSE GAS REDUCTION FUND.
SO I THINK YOU KNOW ONE OF THE
CHOICES YOU ALL WILL HAVE TO
MAKE IS WEIGHING THAT VERSUS
OTHER PRIORITIES. THINKING ABOUT
TIMING. THE OTHER POINT I WOULD
HIGHLIGHT IS THIS IS AN AREA
WHERE THERE ACTUALLY HAS BEEN
QUITE A BIT OF FEDERAL FUNDING
AVAILABLE FROM RECENT FEDERAL
ACTION. SO IT'S NOT A 1 TO 1
MATCH. THE FEDERAL PROGRAMS ARE
DIFFERENT FROM THE STATE
PROGRAMS. SOME OF THEM ARE TAX
CREDITS, WHICH DON'T APPLY TO
EVERYBODY. PEOPLE HOUSEHOLDS WHO
DON'T FILE TAXES, BUT THERE IS
THIS IS AN AREA WHERE THERE IS
SOME ADDITIONAL FEDERAL FUNDING.
THAT MAY BE HELPFUL FOR YOU AS
YOU'RE THINKING ABOUT ALL OF
YOUR PRIORITIES AND WEIGHING
THINGS, BUT WE CERTAINLY HAVE
SET VERY AGGRESSIVE GOALS AROUND
ZERO EMISSION VEHICLES, SO
WHETHER WE CAN ACHIEVE THOSE
GOALS LIKELY WILL YOU KNOW,
REQUIRE ASSISTANCE FROM THE
STATE, PARTICULARLY FOR LOWER
INCOME HOUSEHOLDS. THAT MAY NOT
HAVE THE RESOURCES TO DO THAT
ADOPTION, BUT BUT IN THIS
PACKAGE, IT IS AN AREA WHERE THE
GOVERNOR AT LEAST HAS SUSTAINED
A LOT OF DEFENDING AT LEAST OVER
THE MULTI YEAR PERIOD. IN THE
OBVIOUS CONCERN IS OPPORTUNITY
COST HERE AND LOSING POTENTIAL
LEVERAGE, FEDERAL DOLLARS RIGHT
AND THE CONSISTENCY OF FUNDING
PROGRAMMATICALLY. BECAUSE
ACHIEVING A STAND AND AIR
QUALITY STANDARD IS SOMETHING
NOT SUBJECT TO THE CONCERNS THAT
WE'RE HERE TRYING TO ADDRESS
HERE AND SO IDENTIFYING WHAT
THOSE MIGHT LOOK LIKE.
OBVIOUSLY. KIND OF IMPORTANT
JUST TO FLAG ALSO IN DEALING
WITH HOUSING AND HOMELESSNESS.
IF I MIGHT, YOU KNOW, WE HAD AN
EXTENSIVE DIALOGUE IN THE LAST
CYCLE AND OVERSIGHT. ABOUT
PARTICULARLY ONE OF THE SORT OF
FLAGSHIP PROGRAMS AROUND THIS
ISSUE IN A CHAP AH, AND THE LACK
OF CLARITY THE LACK OF TIME FOR
EMPIRICAL DATA TO PRODUCE ITSELF
ABOUT MEASURING EFFECTIVENESS. A
LACK OF THE ABILITY OF LOCAL
IMPLEMENTING ENTITIES TO
COORDINATE AND LONG RANGE PLAN.
AH! WE HAVE SOME BASIC
COMMITMENTS MAINTAINED IN THE
CYCLE, BUT NO COMMITMENT TO
HAVING OTHER THAN HAVING A
DIALOGUE. AH, AROUND AROUND SIX.
AND APPRECIATE THAT AND
UNDERSTAND SORT OF THE DRIVERS
OF THAT, BUT I WOULD JUST FLAG
THAT ONE OF THE CRITIQUES THAT
WAS GLEANED FROM OVERSIGHT WITH
RESPECT TO PROGRAMS LIKE THIS
THAT WERE DEEMED EMPIRICALLY
AFFECTIVE, RIGHT? IN THE APP,
AREN'T WE EXACERBATING
POTENTIALLY THE VERY CRITIQUE
THAT WAS GLEANED FROM OVERSIGHT
CONVERSATIONS THAT ONE OF THE
CRITIQUES WAS THE INABILITY OF
IMPLEMENTER IS COUNTYWIDE LOCAL
NONPROFITS, OTHERS TO BE ABLE TO
ADEQUATELY LONG RANGE PLAN AND
COORDINATE HERE. WE HAVE A
SCENARIO EVEN THOUGH WE'RE
CONSTRAINED WHERE IT'S VERY
UNCLEAR. AS TO WHETHER OTHER
THAN A CONVERSATION THAT WE'VE
IDENTIFIED HARD MEANS TO
MAINTAIN CONSISTENCY AND
FUNDING. ARE WE CONCERNED AT ALL
ABOUT THE IMPACT? HERE ON SORT
OF LEAVING LOCAL IMPLEMENTED IN
LIMBO. OKAY? THANK YOU. I'M
GOING TO HAVE A COLLEAGUE ASSIST
WITH THIS ONE AS WELL. THANK
YOU. JENNY BELLA WITH THE
LEGISLATIVE ANALYST'S OFFICE. WE
ARE ALSO IN THE EARLY STAGES OF
LOOKING AT THE GOVERNOR'S BUDGET
AND LOOKING AT WHAT THIS MEANS
IN TERMS OF LIKE THE ONGOING
OVERSIGHT. WE ALSO WE HAVE BEEN
INVOLVED OVER THE YEARS AND KIND
OF THINKING ABOUT WHAT IS THE
LEGISLATURE'S PLAN FOR HOUSING
AND HOMELESSNESS. AND I THINK
THIS QUESTION YOU RAISE ABOUT
NEAR ONE TIME FUNDING VERSUS
ONGOING IS PART OF THAT DIALOGUE
SIMILAR TO THE CONVERSATION WE
JUST HAD. IT IS ONE AREA WHERE
THE HOMELESSNESS MONEY IS
LARGELY HELD TO THE PRIOR
AGREEMENT. THE AMOUNT THAT IS
DELAYED IS AN AMOUNT. IT IS OUR
UNDERSTANDING THAT WOULD NOT GO
OUT UNTIL THAT THAT FURTHER OUT
YEAR, SO IT GIVES US A LITTLE
BIT OF TIME TO THINK ABOUT WHAT
SOME OF THAT OVERSIGHT LANGUAGE
WOULD BE. BUT IT IS A GOOD
QUESTION AND ONE THAT IS ON OUR
MINDS, TOO. AS WE LOOK AT THE
GOVERNOR'S PROPOSAL, THANK YOU,
AND SIMILARLY, I WOULD APPLY THE
SAME KIND OF DYNAMIC WITH
RESPECT TO THE FACT THAT ARE UM,
BONDING CAPACITY FUNDS FOR
PRODUCTION PLANNING. IT'S ABOUT
TWO PLEADED AS NOTED IN THE
PROPOSAL AND IN THE ANALYSIS,
AND THERE IS A NET A NET. IN
FACT REDUCTION OVER THE LONG
TERM. AND I WOULD JUST, YOU
KNOW, SORT OF FLAG AND SORT OF
ASKED THE SAME. THE SAME DYNAMIC
WOULD APPLY THERE. THIS IS A
CRITICAL TIME. UH FOR THERE NOT
TO BE IN A QUESTION AND
CONSISTENCY, IN MY VIEW, WITH
RESPECT TO WHAT OUR CAPACITY IS
TO HELP FOLKS LEVERAGE FUNDING
ON THE PRODUCTION SIDE, WHICH IS
REALLY INTERESTING. AND THEN IF
I MIGHT JUST ON GENERAL
GOVERNMENT, ONE LAST SORT OF
QUESTION COMMENT. UM I KNOW THAT
AND THERE MAY EVEN BE INTERNAL
CONTROLS OR POLICIES AROUND THIS
AND MORE CONSTRAINTS, SCENARIOS
TO LOOK JUST PROGRAMMATICALLY
FIRST AND FOREMOST AND LOOK VERY
SHORT TERM EVEN WHEN WE'RE
PUTTING NUMBERS OUT OVER TWO OR
THREE CYCLES, BUT THERE'S
SOMETHING TO BE SAID IN THIS
MEMBERS VIEW ABOUT INVESTMENT,
STRATEGIC INVESTMENTS THAT HAVE
THE CAPACITY TO DEVELOP LONG
RANGE AND SUSTAINABLE SOURCES OF
REVENUE TO THE STATE AND TO THE
BENEFIT OF CERTAIN EMERGING
INDUSTRIES THAT WILL RELY ON
BOTH FOR THEIR OWN GOOD. AND FOR
THE GOOD OF THE STATE BUDGET. I
NOTE THAT WE ARE NOW DOWN TO
ABOUT HALF OF WHAT WE HAVE
TYPICALLY ALLOCATED AROUND CAL
COMPETES. THESE KINDS OF GRANT.
FUNDING PROGRAMS ARE IMPORTANT
TO SOME SUBSTANTIAL EMERGING
INDUSTRIES AND INVESTMENTS BEING
MADE IN THE STATE THAT HAD THE
POTENTIAL FOR A LONG ROOM, YOU
KNOW, LONG RANGE POSITIVE
REVENUE TO THE STATE AND TWO AS
IS THE PROGRAM IS DESIGNED TO DO
AND INCREASE INCREASE OUR
COMPETITIVE POSTURE. I MENTIONED
THIS BECAUSE THAT'S ADDRESSED IQ
OVERALL TREND. YOU KNOW, THE
EXAMPLE I MIGHT GIVE IS THE FACT
THAT THE STATE OF CALIFORNIA
CURRENTLY LITERALLY IS SITTING
ON TOP OF MORE THAN MORE THAN A
THIRD AS THE LATEST ANALYSIS HAS
PUT FORWARD OF THE GLOBAL
DEMAND. FOR LITHIUM. WHICH IS
IRRELEVANT. UH COMMODITY THERE,
SO I WOULD I WOULD JUST
CONCERNED ABOUT THE INCLINATION
TO BE LESS FOCUSED ON THE
ABILITY TO. OH SUPPORT
INVESTMENTS IN KEY EMERGING
INDUSTRIES THAT ARE GOING TO
HAVE AN OUTSIZED IMPACT ON THE
FUTURE BUDGET PICTURES,
POTENTIALLY IF WE ARE SUCCESSFUL
AND TIME IS A FACTOR HERE AND
EVERY CYCLE THAT WE DELAY OR PUT
THAT OFF, OR WE D EMPHASIZED
THAT IT ACTUALLY COULD
POTENTIALLY COME AT A REVENUE
COST. AND I JUST DON'T VIEW IT
AS PARTICULARLY STRATEGIC. BUT I
THOUGHT I WOULD OFFER THE
ABILITY TO COMMENT ON THAT AS
WELL. SENATOR PDO. I WOULD JUST
LIKE TO ADD THAT I'M GOING BACK
TO SOME OF YOUR COMMENTS AND
APPRECIATE THEM IN THE LAST FEW
YEARS AND IN THE SPACE OF BOTH
HOUSING AND HOMELESSNESS. WE
HAVE PROVIDED BILLIONS OF
GENERAL FUND DOLLARS TO LOCALS,
UM AND WITH THE IDEA THAT THERE
WOULD BE REGIONAL PLANNING AND
THAT WITH THE HOPE THAT THERE
WOULD BE MORE LOCAL DOLLARS,
ALSO INCLUDED IN THEIR PLANNING
AND IN REGARDS TO THE CERTAINTY
OF FUNDING, AND I WOULD ALSO SAY
ON THE KILL COMPETE, SAID WE
SHARE YOUR PERSPECTIVE AND WANT
TO SUPPORT THOSE EMERGING
INDUSTRIES AND COMPETES IS ONE
OF THE NEW ITEMS IN TERMS OF
DOLLARS IN THIS BUDGET, SO I
JUST WANTED TO HIGHLIGHT THAT AS
A PRIORITY FOR THIS
ADMINISTRATION AS WELL. I
APPRECIATE THAT VERY MUCH. THANK
YOU, MADAM CHAIR. THANK YOU AND
THE DEPARTMENT OF FINANCE FEEL
FREE TO, UH EVEN WHEN THE
QUESTION MAYBE, UH, DIRECTED
TOWARDS STELIO. IF YOU HAVE A
COMMENT, I WILL RECOGNIZE YOU
MAY ADD, OKAY? ALRIGHT SO LET US
TURN TO SENATOR LAIRD AND THEN
SENATOR DOLLY. THANK YOU VERY
MUCH, MADAM CHAIR. I AM
SOPHISTICATED DID MY KNOWLEDGE
ABOUT STATE BUDGET, BUT I'M
HAVING REAL TROUBLE
UNDERSTANDING TO PROPOSALS FOR
PROPOSITION 98 IN THE EDUCATION
PROPOSALS, AND THE BUDGET
PROPOSES TO SHIFT $8 BILLION
THAT WAS PAID TO SCHOOLS IN
2023. Tð REPAYMENT SCHEME IN
2026 2027 2028, AND THAT RAISES
QUESTIONS ABOUT BOTH ENDS OF
THAT. ABOUT BASICALLY, UM, THE 8
BILLION THAT WAS PAID, HOW THOSE
SAVINGS WERE REALIZED, OR HOW
THAT IS PAID FOR UNTIL THE
PAYMENT SCHEME KICKS INTO
REPAYMENT. AND THEN THE OTHER
HALF OF IT IS WHAT IS THE SCHEME
FOR REPAYMENT AND WHO PAYS
BECAUSE IT IS A KEY QUESTION
THAT OTHER PEOPLE HAVE HERE.
ABOUT WILL IT BE THE SCHOOLS
THAT OVER TIME IN THOSE THREE
YEARS OR FOUR YEARS PAID BACK
THE OVERPAYMENT OR WILL BE THE
REST OF THE BUDGET THAT
CONTRIBUTES THROUGH CHILDCARE OR
HEALTHCARE OR PUBLIC SAFETY OR
OTHER THINGS, SO TO START, IT'S
LIKE, LET'S ASK ABOUT THE 8
BILLION IN THE 2023 YEARS.
CLEARLY YOU HAVE HELP I DO, AND
I APPRECIATE THAT. I'LL START AT
A HIGH LEVEL. THEN I WILL TURN
IT OVER TO MY COLLEAGUE. THE
PROPOSAL IN THE GOVERNOR'S
BUDGET DOES BRING DOWN THE PRIOR
YEAR. GUARANTEE BY ABOUT $8
BILLION, RECOGNIZING THE
REDUCTION REDUCED REVENUES IN
THE PRIOR YEAR, AND SO WHEN WE
PROVIDED THE GUARANTEE IN THE
BUDGET ACT IT WAS BASED ON WHAT
WE THOUGHT THE REVENUES WOULD BE
CLEARLY, WE KNOW, KNOW WHAT THE
REVENUES WERE IN 2022. SO THAT
$8 BILLION COULD OTHERWISE JUST
BE PULLED BACK. BUT WE ARE
PROVIDING THOSE THOSE DOLLARS
HAVE ACTUALLY GONE OUT TO LOCAL
SCHOOL DISTRICTS, AND RATHER
THAN CALLING THEM BACK, WE'RE
PROVIDING THOSE FUNDS TO THE
LOCAL SCHOOLS TO SCHOOLS.
OCCURRING THEM TWO YEARS. AND SO
THAT IS SORT OF THE MECHANISM
FOR THAT. I WILL TURN IT OVER TO
MY COLLEAGUE FOR FURTHER
DETAILS. THANK YOU. BRITTANY
THOMPSON DEPARTMENT OF FINANCE.
SO WITH THIS PROPOSAL WILL BE
REDUCING THE EXPENDITURES FOR
THE LOCAL CONTROL FUNDING
FORMULA AND THE STUDENT CENTERED
FUNDING FORMULAS AND 2223. AND
THEN WE WOULD FUND THOSE COSTS
WITH 998 GENERAL FUND IN 25 26
29 30. SO FIVE YEARS. WELL, THEN
LET'S GO TO THE TWO QUESTIONS. I
ASKED, BECAUSE THE FIRST ONE IS
THAT $8 BILLION WENT OUT THE
DOOR. SO IS THAT CONSIDERED PAID
FOR OUT OF THE GENERAL FUND OR
OTHER PLACES OR IS THAT
ACCOUNTED TO BE PAID BACK? IN
THOSE OUT YEARS, EVEN THOUGH
THEY'RE SOMEHOW YOU HAVE TO CASH
BASIS COVER FOR THE BILLION THAT
WENT OUT THE DOOR. SO THOSE ARE
NON $98 SO NOT PART OF THE PROP
98. SO THAT'S I THINK THE 1ST
1ST QUESTION AND THAT THE SECOND
QUESTION IS NOT. THAT MIGHT HAVE
BEEN PART OF THE FIRST QUESTION.
BUT THAT'S NOT THE ANSWER. IT'S
IT IS BASICALLY IN 2023. IT WAS
BUDGETED. BUT IT WAS 8 BILLION
OVER AND SO WHEN IT WAS REDUCED
TO THE GUARANTEE BY $8 BILLION
IS THAT CONSIDERED A GENERAL
FUND PAYMENT THAT WAS MADE IN
2023 FOR THE 8 BILLION. THAT IS
NOT IN THE GUARANTEE. HOW WAS
THAT ACTUALLY PAID FOR IN THE
BUDGET HERE WITH THAT MONEY,
HAVING GONE OUT THE DOOR?
BRITTANY THOMPSON DEPARTMENT OF
FINANCE, SO WE ARE REDUCING THE
GUARANTEE TO THE MINIMUM LEVEL.
AND THEN IN THE OUT YEARS WE'RE
GOING TO USE NON PROPOSITION 98
GENERAL FUND TO COVER THOSE
COSTS AND LET ME TRY THE
QUESTION AGAIN BECAUSE I GET
THAT BUT YOU'RE MAKING IT SOUND
LIKE THE 8 BILLION DIDN'T GO OUT
THE DOOR AND PEOPLE DIDN'T SPEND
IT. IT WENT OUT THE DOOR AND IT
WAS SPENT. SO DID WE JUST COVER
THAT AS AN EXPENDITURE IN THE
BUDGET? AND THEN ON THE BOOKS.
IT IS OUT BACK IN RELATION TO
OUTSIDE OF PROP 98. HOW WAS IT
HANDLED IN 2023 WHEN THAT 8
BILLION ACTUALLY WENT OUT THE
DOOR? OR WE CLIMBING. IT WASN'T
SPENT AT ALL AND IT IS BEING
REPAID IN 2026. WHAT OF THOSE IS
IT? THERE IS NO REPAYMENT. THESE
ARE WHAT WE'RE GOING TO BE
CONSIDERED SUPPLEMENTAL PAYMENTS
IN THE FUTURE YEARS, SO WE ARE
NOT GOING TO BE TAKING THOSE
DOLLARS BACK FROM SCHOOLS AND
FROM STUDENTS. AND THEN WHAT
DOES IT MEAN THAT IT'S
SUPPLEMENTAL PAYMENTS? DOES THAT
MEAN THAT. WHAT IS THE
SUPPLEMENTAL PAYMENT? THEN? WHO
PAYS AND WHERE DOES IT GO? SO
THE PAYMENTS THAT MAKE UP THE
FUTURE SUPPLEMENTAL PAYMENTS DO
ADD UP TO THAT 8 BILLION, WHICH
IS THE DIFFERENCE BETWEEN THE
BRINGING DOWN THE PRIOR YEAR,
JUST BASICALLY ADJUSTING PRIOR
YEAR FOR REVENUES, AND SO I'M
JUST THIS IS REALLY CLEAR AS MUD
RIGHT NOW. I'M TRYING TO
UNDERSTAND CLEARLY. BECAUSE THE
8 BILLION WENT OUT THE DOOR. AND
YOU'RE TALKING ABOUT
SUPPLEMENTAL PAYMENTS ON THE
BOOKS TO MAKE GOOD D 8 BILLION
IN OUT YEARS THAT ARE THREE AND
FOUR AND FIVE YEARS FROM NOW,
BUT WHO PAYS IN THE OUT YEARS TO
WHO? WHAT? IT'S A SUPPLEMENTAL
PAYMENT FROM WHO? TO WHO?
BRITTANY THOMPSON DEPARTMENT OF
FINANCE. YOU COULD THINK OF IT
AS A CREW IN THE EXPENSE IN THE
OUT YEARS SO SINCE THE GUARANTEE
WAS REDUCED BY $8 BILLION,
INSTEAD OF TAKING THOSE FUNDS
BACK FROM THE ELIO ALIAS, WHO'S
PROBABLY ALREADY SPENT IT OR
BUDGETED FOR, WE'RE JUST GOING
TO TAKE THOSE EXPENSES AND
SPREAD THEM OUT OVER FIVE YEARS
IN THE OUT YEARS WITH
PROPOSITION NON PROPOSITION 98
GENERAL FUN. MEANING? THAT THE
REST OF THE GENERAL FUND PAYS
FOR THIS AND NOT THE SCHOOLS
WHEN IT'S ACCRUED IN THE OUT
YEARS. IS THAT WHAT YOU'RE
SAYING? THAT IS CORRECT. AND I
WOULD JUST SAY WE HAVE FIVE
MONTHS WE'RE GOING TO WANT TO
TALK ABOUT THAT. WE LOOK FORWARD
TO HAVING THIS CONVERSATION.
IT'S JUST THIS IS VERY, VERY
HARD TO UNDERSTAND, AND A LOT OF
THE BACKUP WAS NOT TOTALLY IN
THE BUDGET, ESPECIALLY ON THE
SUPPLEMENTAL PAYMENTS. AND HE IS
THE QUESTION IS IN THERE IS
ANOTHER QUESTION AND IN THE
CHAIR STARING AT ME, SO WHATEVER
HER LIMITS WHERE I'M EXCEEDING
IT, AND I THINK THAT THERE ARE
OTHER QUESTIONS RELATED, WHICH
IS DO WE JUST ACCEPT THAT ALL
THE 8 BILLION WENT OUT THE DOOR
OR THERE'S SOME THINGS THAT
HAVEN'T BEEN SPENT. THAT MIGHT
LOWER THIS IN THE OUT HERE THAT
WE SHOULD BE TALKING ABOUT. IF
THERE IS RESERVES THAT 5.7
BILLION ARE GOING TO PROP UP THE
EXISTING PROPOSITION, 98, AND
THEN THEY WILL NOT BE NO
RESERVES AT THE TIME OF THE
SUPPLEMENTAL PAYMENT, SO THERE'S
NOT EQUITY BETWEEN EDUCATION
MONEY IN THE GENERAL FUND. THOSE
ARE ALL REAL SUBSTANTIAL ISSUES
TO TALK ABOUT, AND IT'S THE
CHAIRS GETTING EDGY, BUT SHOULD
I? IS IT OKAY TO ASK THE LAO TO
COMMENT ON THIS? FINE THE L A.
OH, CAN COMMENT AND DON'T WORRY.
I'M NOT LIMITING THAT COMMENT,
BUT I WOULD ONLY ADD THAT OF
COURSE, UM AS THE SUB CHAIR,
SENATOR LARRY, YOU WILL HAVE A
GOOD AMOUNT OF TIME TO GET INTO
THE WEEDS ON THIS AND IT'S
APPROPRIATE TO ASK THE QUESTIONS
AND TO SET THE STAGE FOR THOSE
CONVERSATIONS IN SUBCOMMITTEE
BUT WILL TURN TO L. A COMMENT ON
THAT BECAUSE I DO NOT THINK
PEOPLE AND MANY IN THE EDUCATION
STAKEHOLDER COMMUNITY AS WELL AS
THOSE THAT MIGHT BE THE GIVERS
TO SUPPLEMENTAL PAYMENTS HAVE
UNDERSTOOD THIS AT ALL. SO IT IS
A VERY IMPORTANT EVEN THOUGH
WE'RE GOING TO DRILL DOWN IN THE
SUBCOMMITTEE THAT PEOPLE START
TO UNDERSTAND THE LIFE OF THE
LAND, SO THANK YOU. JUST ASK IF
THE LAO HAS ANYTHING THEY WISH
TO COMMENT ON ABOUT THIS. A
GROUP OF BROUGHT THE LEGISLATIVE
AND STUFF IS KEEP IT BRIEF, BUT
I THINK I THINK WE'VE CLARIFIED
THE SECOND. THIS IS NOT 98 COSTS
. I THINK THE ONE THING I WOULD
HIGHLIGHT THAT MAYBE HASN'T BEEN
REFERENCES BECAUSE OF THE CRUEL
WHAT THIS MEANS IS ESSENTIALLY
PUSHES $8 BILLION WORTH OF
SPENDING INTO THE OUT YEARS, SO
IT OTHERWISE IT WOULD HAVE BEEN
SOMETHING THAT WOULD HAVE NEEDED
NEEDED TO BE SOLVED WITHIN THE
BUDGET WINDOW. INSTEAD THAT
MEANS THAT WE ARE, IT'S A WAY OF
DELAYING THOSE COSTS INTO THE
OUT YEARS AND THEN AND THAT
WOULD BE BORN NUN IN EACH SIDE
OF THE BUDGET. SO WHEN YOU DO
THE OUT YEAR DEFICITS OR THE OUT
YEAR PROJECTIONS. YOU WILL BE
FACTORING IN $8 BILLION THAT IS
ALREADY BEEN EXPENDED IN 2023.
THAT'S RIGHT. OKAY, THANK YOU.
ALRIGHT WE WILL GO TO SENATOR
DOLLY, FOLLOWED BY SENATOR
MENJIVAR AND SENATOR GROVE.
THANK YOU, MADAM CHAIR AND
MEMBERS AS MY THIS IS MY FOURTH
YEAR ON BUDGET COMMITTEE AND I
AM NOT SEEING THIS MANY PEOPLE
IN OUR BUDGET COMMITTEE HEARINGS
UNTIL THE YEAR WHERE WE HAVE A
HUGE DEFICIT AND I'M ASSUMING
THEY'RE ALL TRYING TO FIGURE OUT
HOW THEY'RE GOING TO GET THEIR
SLICE OF THE PIE. BUT I WANTED I
HAVE ONE QUESTION, SO I MEAN I
JUST LOOKED UP WAS YESTERDAY
THAT THE STOCK MARKET HIT
38,000. SO THE REST OF AMERICA
IS SEEMS TO STATE IF YOU LOOK AT
MANY OF THE OTHER STATES WERE
DOING WELL, SO YOU TOUCHED A
LITTLE BIT ON WHY CALIFORNIA IS
WHERE WE'RE AT. AND I THINK THAT
IS REALLY WHAT THIS COMMITTEE
NEEDS TO BE LOOKING AT IS. WHY
IS YOU KNOW, YOU TALKED ABOUT
INTEREST RATES. YOU TALKED ABOUT
THOSE TYPE OF THINGS, BUT AT THE
END OF THE DAY THE TOP 1% OF
EARNERS IN CALIFORNIA PAY THE
HIGHEST AMOUNT OF TAXES AND
THEY'RE LEAVING. THERE WAS AN L.
A TIMES ARTICLE I THINK WAS
YESTERDAY OR THIS MORNING ABOUT
HOW MANY PEOPLE LEAVING
CALIFORNIA AND THAT'S BECAUSE AS
A BUSINESS OWNER MYSELF IT'S
VERY DIFFICULT TO DO BUSINESS
HERE WERE REGULATED AND TAXED
WERE SUED WHERE WE HAVE AIRCRAFT
CITY ISSUES. WE HAVE ALL KINDS
OF THINGS THAT CALIFORNIA DOES
DIFFERENT THAN OTHER STATES. AND
THE SAME TIME IT'S EASY TO DO
BUSINESS, IN OTHER WORDS,
ANOTHER PLACES AND THERE'S LESS
TAXES TO PAY THEIR SO WE ARE
SEEING EXCESS. SO COULD YOU.
COULD YOU TALK ABOUT THAT PART
OF IT? HAVE YOU DRILLED DOWN IN
THE PART OF NOT JUST WHY WE HAVE
A REVENUE PROBLEM? BUT WHY IS
THAT BECAUSE THE STOCK MARKET IS
DOING GREAT AND IN THE HISTORY
OF QUESTIONS, HISTORY THE 28
YEARS I'VE BEEN ELECTED AT THE
LOCAL LEVEL. AND AT THE STATE
LEVEL WHEN THE STOCK MARKET WAS
DOING WELL. CALIFORNIA WAS DOING
WELL. THIS IS THE FIRST TIME
THAT THE STOCK MARKET IS DOING
WELL IN CALIFORNIA IS NOT DOING
WELL. SO CAN YOU TALK ABOUT THAT
PART OF IT? SO WITH REGARD TO
THE STOCK MARKET DOING WELL, AND
REVENUE IS NOT DOING WELL THAT
IT'S EVERY EVERY SALE OF A STOCK
IS REFLECTIVE OF SOMEBODY THAT
HELD IT FOR A CERTAIN PERIOD OF
TIME. SOME OF 10 YEARS SOME OF
NINE YEARS, SOMETIMES SEVEN
YEARS, SOME OF ONE YEAR, SO WHEN
YOU'RE THINKING ABOUT THE STOCK
MARKET DOING WELL, YOU HAVE TO
THINK OF IT IN TERMS OF HOW LONG
HAS IT DONE WELL, AND WHAT THE
HOLDING PERIODS OF PEOPLE ARE.
HOW PEOPLE ARE NETTING AGAINST
LOSSES. HOW WHAT? YOU KNOW HOW
HOW PEOPLE ARE CHOOSING TO
REALIZE THOSE GAINS. AND AS YOU
MENTIONED, YOU KNOW, BECAUSE 1%
OF TAXPAYERS PAY 50% OF OUR
PERSONAL INCOME TAXES, WHICH
REPRESENTS THE BULK OF OUR
REVENUES, AND THAT THEY ARE THEY
HAVE HIGHLY VARIABLE INCOMES,
AND IT HAS NO NO, IT'S NOT
REALLY A STATEMENT ON THE
UNDERLYING ECONOMY THAT THAT
WAS. THOSE REVENUES ARE
VARIABLE. UM IF YOU GO BACK TO
2009, YOU CAN SEE THAT THE STOCK
MARKET DID INCREDIBLY WELL IN
2009, AND REVENUES DID VERY,
VERY POORLY BECAUSE WE WERE
STILL RECOVERING FROM A MUCH
HIGHER LEVEL IN THE STOCK MARKET
. UM SO I JUST, UH, JUST STOP
THERE. OKAY SO BASICALLY YOU'RE
SAYING IS THAT WE DON'T WE DON'T
USE THAT AS A MEASUREMENT. IS
THERE ANY OTHER MEASUREMENT THAT
WOULD TELL US I BELIEVE THAT
IT'S BECAUSE PEOPLE ARE LEAVING
THE STATE BUSINESSES ARE LEAVING
AND WE'VE SEEN HP HEWLETT
PACKARD ORACLE. THEY'RE LEAVING.
THEY'RE LEAVING. THOSE ARE
HIGHWAY JOURNEY COMPANIES THAT
THEIR TOP THEY RELOCATED AND
THEY'RE NOT HERE ANYMORE. AND
THEN WE'RE STARTING STARTING TO
CATCH UP WITH US. SO I THINK FOR
WE HAVE TO BE HONEST, WE HAVE TO
FIGURE OUT WHY. WHY IT IS WHERE
WE'RE AT. WE CAN PLAY THE GAME
OF BORROWING AND PUSHING AND IN
STEALING FROM FUTURE GENERATIONS
, WHICH WE'RE GOING TO DO, WE'RE
GOING TO USE OUR RESERVES. BUT
AT THE END OF THE DAY, WE'RE NOT
GOING TO GET OUT OF THIS ANYTIME
SOON, UNLESS WE FIGURE OUT HOW
TO KEEP BUSINESSES HERE, WHICH
PAY TAXES AND HIGH INCOME
WERNER'S THAT PAY TAXES. IF THEY
LEAVE, WE'RE GONNA BE HERE A
LONG TIME. SO I THINK THAT THERE
NEEDS TO BE SOME MORE FOCUS. ON
ON. ARE WE ACTUALLY LEAVING
THOSE? THERE'S A LOT OF ARTICLES
WRITTEN ABOUT IT, BUT THE
GOVERNOR DOESN'T TALK ABOUT IT.
AND YOU GUYS DON'T SEEM TO TALK
ABOUT THOSE REAL DETAILS THAT WE
NEED AS A LEGISLATURE TO KNOW.
BECAUSE WE CAN CHANGE THAT HERE.
WE CAN MAKE IT EASIER TO DO
BUSINESS IN CALIFORNIA IF WE
HAVE THE WILL TO DO IT. UM SO,
SENATOR DOLLY, UH, WE HAVE BEEN,
YOU KNOW, WE'VE THIS IS A
QUESTION THAT COMES UP A LOT,
AND IT'S SOMETHING IT IS DATA
THAT WE TRACK AND OVER TIME OVER
MANY YEARS. WHAT WE SAW FOR A
LONG TIME WAS THAT THE NET OUT
MIGRATION THAT WAS OCCURRING WAS
AMONG PEOPLE THAT HAD A HARDER
TIME AFFORDING TO LIVE IN
CALIFORNIA BECAUSE OF THE COST
OF LIVING THE COST OF HOUSING.
THAT STORY DID BEGIN TO CHANGE
AROUND 2020 2021. WHAT WE BEGAN
TO SEE IS THAT THERE WAS A NET
OUT MIGRATION ALSO AMONG THE
HIGHER INCOME TAXPAYERS AS WELL
TO YOUR POINT. AND WE DON'T KNOW
DEFINITIVELY AT THIS POINT WHAT
THE REASON IS THAT MAY HAVE
SOMETHING TO DO WITH THE
PANDEMIC, THE ABILITY TO WORK
REMOTELY. AH, BUT THAT 2021 IS
THE MOST RECENT YEAR THAT WE
HAVE IRS DATA ON THE MIGRATION
PATTERNS, AND IT'S ALSO THE HIGH
WATER MARK, SO IT MIGHT HAVE
EVEN BEEN HIGHER IN 2022. WE
DON'T KNOW YET WHAT I WILL SAY,
THOUGH, IS WE DO HAVE TO KEEP IT
IN PERSPECTIVE. I THINK AS THE
CHIEF DEPUTY FROM FINANCE
MENTIONED 2021 AND 2020 2020 21
WERE YEARS WHERE WE HAD
EXCEPTIONALLY STRONG REVENUE
GROWTH AT THE SAME TIME, SO EVEN
IF WE WERE EXPERIENCING THIS OUT
MIGRATION, IT'S UNCLEAR TO ME
HOW MUCH REVENUE THE STATE WAS
MISSING OUT ON AT THAT POINT,
AND I DON'T THINK THAT THE STORY
OF OUR SHORTFALL THAT WE'RE
FACING RIGHT NOW IS EXPLAINED
ENTIRELY BY OUT MIGRATION. IT
MIGHT BE ON THE MARGINS, ADDING
TO IT, BUT IT IS NOT THE WHOLE
OF THE EXPLANATION WHERE OUR
REVENUES WERE REVISED DOWN BY 58
BILLION. THAT IS NOT EXPLAINED,
JUST BY OUT MIGRATION AND IN MY
VIEW, BUT AGAIN, I DON'T THINK
THIS IS A CONCERN WE SHOULD
DISMISS. I THINK IT'S SOMETHING
WE SHOULD CONTINUE TO PAY CLOSE
ATTENTION TO AND IT'S NOT
SOMETHING WE SHOULD WRITE OFF,
BUT I THINK IT'S A COMPLICATED
STORY, AND IT'S DIFFERENT. YOU
KNOW, IT'S WE HAVE TO JUST KEEP
IT IN KIND OF A BALANCED
PERSPECTIVE ON BOTH SIDES OF IT.
I APPRECIATE THAT, AND I JUST
WANT TO CLOSE WITH THIS. IT'S
COMPLICATED TO RUN A BUSINESS IN
CALIFORNIA REALLY HARD. AND I DO
IT PERSONALLY MYSELF. AND IF WE
DON'T AS A LEGISLATURE FIGURE
OUT HOW TO KEEP THE TAXPAYING
BUSINESSES IN CALIFORNIA. I
MEAN, I KNOW THAT SOME OF US ARE
GOING TO BE TURNED OUT, AND SOME
OF US ARE JUST GOING ON TO
WHATEVER THE GOVERNOR IS NOT
GOING TO BE HERE THAT MUCH
LONGER, BUT AT THE END OF THE
DAY, THE PEOPLE THAT LOVE
CALIFORNIA WANT TO STAY HERE.
THIS IS THIS IS GOING TO HURT IF
WE DON'T FIX THE FUNDAMENTAL
PROBLEMS OF BEING ABLE TO DO A
BUSINESS IN CALIFORNIA, AND YET
WE CAN TALK ABOUT SAVING THE
WORLD IN THE CLIMATE. WE CAN
TALK ABOUT THE BEST EDUCATION.
BUT AT THE END OF THE DAY, WE
DON'T HAVE THAT REVENUE. WE
CAN'T ACCOMPLISH ANY OF THOSE
THINGS. I JUST WANT TO GO ON
RECORD, SAYING WE HAVE TO
ADDRESS THE ISSUE OF KEEPING
CALIFORNIANS BUSINESSES IN
CALIFORNIA OR WE'RE GOING TO.
WE'RE GOING TO BE HERE A LONG
TIME IN CALIFORNIA GOING TO
SUFFER, AND IT'S NOT EASY TO GET
THEM BACK ONCE THEY LEAVE. SO
THANK YOU. AND I'D LIKE TO HAVE
SOME DATA ON WHO'S LEAVING AND
WHO'S COMING BECAUSE I THINK THE
PEOPLE THAT ARE PAYING THE BILL
OR LEAVING AND PEOPLE ARE COMING
OR A DRAIN ON US MORE THAN THEY
ARE HELPING THE ECONOMY. THANK
YOU. THANK YOU. WE OBVIOUSLY
MEMBERS CAN ALWAYS REQUEST MAKE
SUCH DATA REQUEST TO OUR
DIFFERENT PARTNERS AND BUT WILL
NOW GO TO SENATOR MENJIVAR.
THANK YOU, MADAM. CHAIR 15
QUESTIONS. I GOT TO PICK MY FAIR
ONE'S, RIGHT. YEP OKAY. I'D LIKE
TO START OFF WITH, UM AND THE
SAFETY NET RESERVE. I KNOW THE
INTENTION OF THAT WAS TO PROTECT
COWARDS. CASE INCREASES IN
MEDICAL CASE INCREASES, GIVEN
THE CUTS TO SEVERAL COWARD
PROGRAMS, IN FACT, THE
ELIMINATION OF THREE COWARD
PROGRAM CAN WE JUSTIFY HOW WE'RE
DEPLETING THE ENTIRE SAFETY NET
RESERVE? WHILE STILL ELIMINATING
SOME COWARD PROGRAMS. THANK YOU,
SENATOR MENJIVAR. UM YEAH, I
WOULD START WITH SAYING THAT
THIS IS THE SECOND YEAR OF OVER
$30 BILLION BUDGET PROBLEM AND A
LOT OF AND AS I STATED AT THE
VERY BEGINNING, NONE OF THESE
PROPOSALS WERE EASY TO COME BY.
UM AND THEY ARE JUST PROPOSALS.
WE ARE INTERESTED IN HEARING
ALTERNATIVES TO THEM IN REGARDS
TO THE SAFETY NET AND WITHDRAWAL
FROM THE HEALTH SAFETY NET. UM
UH, I THINK THE INTENT WAS TO
REDUCE CUTS FURTHER CUTS DEEPER
CUTS TO THE CORE SAFETY. NET
HEALTH SAFETY NET PROGRAMS. UM
AND EVEN SO, THERE'S THERE WAS
STILL A BIG SHORTFALL TO BRIDGE
DO WE ANTICIPATE GIVEN FUTURE
OUTLOOKS? HAVING $0 IN OUR
SAFETY NET RESERVES, HOW WE'RE
GOING TO BE ABLE TO ADDRESS EVEN
MORE CUTS IN THE UPCOMING YEARS?
RIGHT AND THAT IS WHY I BELIEVE
WE HAVE MADE THE DECISION TO
LEAVE 18 8. THERE IS 18.4
BILLION LEFT IN TOTAL RESERVES
TO HELP BUILD SOME OF THAT
RESILIENCY. AND AS I MENTIONED
EARLIER TO THE GOVERNOR'S
INTERESTED IN PROP TO REFORM AND
LOOKING AT WAYS WHERE WE CAN
SUCK AWAY MORE MONEY IN RESERVES
DURING THE GOOD TIMES, SO THAT
WHEN WE HIT HARD TIMES WE DON'T
HAVE TO MAKE THOSE HARD
DECISIONS BECAUSE WE HAVE THOSE
RESERVES. SO WOULD YOU SAY THE
900 MILLION THAT WAS DRAWN DOWN
DIRECTLY WENT INTO HUMAN
SERVICES PROGRAMS. UM I WOULD
SAY THAT THERE WERE A LOT MORE
CUTS THAT COULD HAVE BEEN MADE
THAT WERE SPARED AND SO AGAIN.
PROPOSAL ON THE TABLE, RIGHT?
WE'D LIKE TO CONTINUE TO HAVE
THOSE CONVERSATIONS WITH YOU
DURING SUBCOMMITTEES AND
THROUGHOUT THE SPRING TO SEE
WHAT OTHER ALTERNATIVES THE
LEGISLATURE HAS IN MIND TO
BRIDGE THAT SHORTFALL. AND IN
SOME THREE WE HAD HERE WAS JUST
TALKING TO MY COLLEAGUE OVER
HERE. I MEAN, SOME THREE. WE HAD
SOME MAJOR WINS REALLY
PHENOMENAL ONES REALLY EXCITED
ABOUT IT. I LOVE THOSE WINDS ARE
BEING PROPOSED TO BE CALLED BACK
. UM AND THERE ARE MOST
VULNERABLE POPULATION. I'M
THINKING ABOUT OUR FOSTER
POPULATION AND INDIVIDUALS WITH
DEVELOPMENTAL DISABILITIES IN
THE FOSTER WORLD. THE FIRST
PROGRAM, WHICH IS THE FAMILY
URGENT RESPONSE SYSTEM. STARTED
ABOUT THREE YEARS AGO. IT'S A 24
HOUR SERVICE MOBILE SERVICE TO
FOSTER KIDS AND THEIR CARETAKERS
. WHENEVER THEY NEED HELP. YOU
CAN CALL THIS NUMBER AGAINST
SERVICES. UM I THINK THEY'VE
HELPED ABOUT 4000 FAMILIES AT
ANY GIVEN TIME, AND IT'S BEEN
PROPOSED TO BE CUT. STUDIES SHOW
ONE IN THREE FOSTER KIDS END UP
IN HOMELESSNESS. OTHER STUDIES
SHOW ONE IN FIVE FOSTER KIDS
WILL END UP PERFORMANCES. ARE
THE WAY IT'S REALLY HIGH NUMBER.
WITH THAT BEING PROPOSED TO BE
CUT AND ADDITIONALLY THERE UH
THE SUBSIDIES FOR THEIR SUPER
SUPERVISED INDEPENDENT LIVING
PLACEMENTS ALSO BEING CUT? I
FEEL LIKE WE'RE REALLY CREATING
THIS BROKEN DOWN A BIGGER,
BROKEN DOWN AND ALLOWING MORE OF
OUR FOSTER YOUTH TO FIND TO
HOMELESSNESS IF WE'RE PROPOSING
CUTS THAT PREVENT THEM FROM
FALLING INTO HOMELESSNESS. WE
KNOW THERE'S A HOUSING CRISIS
HOMELESSNESS CRISIS AGAIN WITH
THIS PROPOSED CUT. I KNOW IT'S
ALL DIFFICULT. WHY IN THE AREAS
THAT WE KNOW THAT OUR
PREVENTATIVE THAT WOULD SAVE US
MONEY DOWN THE LINE. I THINK
WHEN WE WERE RECOGNIZING THE
SIZE OF THE SHORTFALL, WE HAD TO
PUT EVERYTHING ON THE TABLE AND
ATTEMPTED TO LOOK ACROSS. UM
PROGRAMS AND PRIORITIES AND WHAT
YOU HAVE IN FRONT OF YOU IS OUR
FIRST PASS AT THIS AGAIN.
CONTINUED CONVERSATION IS
IMPORTANT SO THAT WE CAN REACH
OUR SHARED GOALS IN OUR PARTY'S
THROUGH THIS BUDGET DESPITE THE
SHORTFALL. JUST WE STILL HAVE
FUNDING AND THEY'RE UNDER THE
CHILDREN'S YOUTH BEHAVIOR HEALTH
INITIATIVE INTENDED FOR YOUTH
UNDER 25 IS POSSIBILITY TO USE
SOME OF THAT FUNDING FOR FUN.
SOME OF THESE FOSTER YOUTH
PROGRAMS THERE HAVE BEEN
PROPOSED TO BE CUT AGAIN. THIS
IS GOOD CONVERSATION. YEAH TWO
MORE QUESTIONS AND THEN MOVE ON.
BIG TOPIC JUST LIKE THE PROBLEM.
98 CONVERSATION VERY CONVOLUTED.
ALSO, EMC ATTACKS UM HUGE
DISCUSSIONS LAST YEAR. THERE'S
SOME REMAINING FUND FROM THAT
THAT HAS BEEN HASN'T BEEN
ALLOCATED. WE'RE DRAWING DOWN
$1.5 BILLION. ADDITIONALLY I
KNOW A LOT OF THAT IS GOING TO
BE TO BALANCE THE BUDGET, AND
THE ADMINISTRATION PROPOSED SOME
OF THAT FUND TO ADDRESS AND
IMPROVE EQUITY. DO WE HAVE ANY
PLANTS DETAILED PLANS ON WHAT
THAT LOOKS LIKE. AND THEN CAN
THAT ADDRESSING IMPROVING
EQUITY? INCLUDE ADDITIONAL
INVESTMENTS, ANOTHER PROVIDER
TYPES, I'LL TURN THAT QUESTION
TO MY COLLEAGUE AND THE EQUITY
ISSUE. THE DEPARTMENT OF FINANCE
. THE DEPARTMENT OF HEALTH CARE
SERVICES HAS RELEASED A POLICY
PAPER FOR THE M C O TEXT
TARGETED RATE INCREASES, AND IT
SPECIFICALLY ADDRESSES THE
EQUITY ADJUSTMENTS THAT ARE
PROPOSED TO BE PROVIDED AS PART
OF THAT. OKAY IS THAT AVAILABLE?
YES, WE CAN HAVE THAT SHARED
WITH YOUR STUFF. FOR THIS YEAR,
RIGHT? NOT FOR UPCOMING YEARS
BEGIN JANUARY 1 2025 COMING
YEARS. UM OKAY, ONE MORE. UM
IT'S A LOT OF QUESTIONS. YOU GOT
YOUR KIDS FOSTER ELDER
POPULATION. GONNA MAKE SURE WE
PROTECT THEM ALL. SO LET'S LAST
YEAR, THE ADMINISTRATION
PROPOSED DELAYS IN WORKFORCE
DEVELOPMENT IN THE HEALTHCARE
FIELD. IT'S BEEN PROPOSED, AND
WE CAUGHT IT BACK AND IT
INCLUDED IN THE FINAL BUDGET
LAST YEAR, IT'S BEING CALLED
PROPOSED TO BE CALLED BACK AGAIN
. COWEN CARE COURT BEING
IMPLEMENTED. THESE ARE BIG, HUGE
PROGRAMS THAT ARE CALLING FOR
HEALTHCARE WORKERS MENTAL HEALTH
BEHAVIORAL WORKERS AT EVERY
SINGLE CORNER. HOW DO WE THEN?
UPLIFT THESE PROGRAMS ENSURE
THAT THEY'RE SUCCESSFUL. IF
WE'RE NOT INVESTING IN THE
WORKFORCE THAT IS NEEDED
SPECIFIC SPECIFICALLY THESE
TOPICS THESE EXPERTISE INTO
THESE PROGRAMS. THANK YOU, MATT
AGLER DEPARTMENT OF FINANCE.
THANK YOU FOR THE QUESTION. THE
STATE IS COMMITTED TO, YOU KNOW,
APPROXIMATELY A BILLION DOLLARS.
GENERAL FUND AND MENTAL HEALTH
SERVICES FUNDS OVER MULTI
MULTIPLE YEARS. FOR WORKFORCE IN
THE HK AREA. OF THE BUDGET. UM.
WE HAVE HAD SOME RESOURCE
AVAILABILITY ISSUES, BOTH WITH
THE GENERAL FUND AND WITH THE
MENTAL HEALTH SERVICES FUND. AND
SO WE'RE STILL COMMITTED TO
PROVIDING THE SERVICES BUT DUE
TO THE BUDGET SITUATION WE'RE
HAVING TO ALLOCATE THE FUNDS IN
LATER YEARS. THAT'S WHAT'S
PROPOSED, BUT I WOULD FLAG ALSO
THAT IN THE NURSING AREA THAT MY
UNDERSTANDING IS THAT THE
COMMUNITY COLLEGES BUDGET HAS
YEAH, THE 60 MILLION ANNUALLY
FOR FIVE YEARS. YOU SAID 1
BILLION? YEAH 1 BILLION OVER.
MULTI YOUR PACKAGE DIRECTED JUST
TO WORK FORCE. YES. OVER FIVE
YEARS. YEAH THIS THIS GOES BACK
TO 2022. IT WAS A MULTIYEAR
PACKAGE AND THEN WE STILL HAVE A
BILLION LEFT. YEAH. ANYWAY. OKAY
MORE TO COME SUB THREE. THANK
YOU. YES AND MEMBERS. OBVIOUSLY
WE APPRECIATE THE QUESTIONS. WE
DON'T WANT TO LIMIT THEM.
HOWEVER A LOT OF THE DETAIL WE
EXPECT TO GET INTO IN YOUR
SUBCOMMITTEE. SO IF THERE'S
AGAIN IT'S YOU MAY ASK THE
QUESTIONS, BUT SOME HIGH LEVEL
ONES MIGHT BE APPROPRIATE IN
THIS HEARING, SINCE A LOT OF THE
MORE SPECIFIC DETAIL WILL GET
INTO IN OUR SUBCOMMITTEES. BUT
LET ME GO TO SENATOR GROVE,
FOLLOWED BY SENATOR NEAL OH,
FOLLOWED BY SENATOR SARTO AND
THEN BECKER. AND THEN THERE WAS.
OH, THANK YOU, MADAM CHAIR. I'M
JUST GOING TO MAKE A FEW FOLLOW
UP COMMENTS AND HAVE QUESTIONS
ON SOME THINGS. MY COLLEAGUE
JUST TALKED ABOUT THE BUDGET,
SAID THREE ISSUES. LAST YEAR.
THERE WERE A LOT OF PROMISES
MADE AND PROMISES ARE PULLED
BACK, AND THERE WERE DEALS MADE.
WE MADE A COMMITMENT. THE
LEGISLATURE AND THE GOVERNOR AND
WE CAME TO AGREEMENTS AND WE ALL
AGREED ON THAT, AND WE VOTED ON
THIS AND THEN RENEGE ON THE
PROMISES THAT WERE MADE TO
THESE. THESE GROUPS OR
INDIVIDUALS, INCLUDING ONLY THE
THREE COVERAGES THAT SHE
MENTIONED ON HER 15 QUESTIONS
THAT SHE HAD TO COVER. UM AND
THE SAME WITH THE TAX AND OUR
HOSPITALS AND THOSE LOAN
PROGRAMS TO SAVE OUR HOSPITALS.
I HAVE A CHART HERE WITH ALL OF
OUR FINANCIALLY DISTRESSED
HOSPITALS. NOT EVERYBODY IN THIS
ROOM OR IN THE STATE IS GOING TO
BUY AN ELECTRIC VEHICLE. AS A
MATTER OF FACT, THE ELECTRIC
VEHICLE PRODUCTIONS OF THE CELL
IS THERE SO SUCH A LOW DEMAND
THAT FORD AND OTHER COMPANIES
ARE STOPPING THEM PRODUCING, BUT
WE'RE ON THIS FAST TRACK TO ZERO
EMISSIONS, NOT EVERYBODY IS
GOING TO BUY AN ELECTRIC VEHICLE
THAT EVERYBODY IN THIS STATE AT
ONE TIME OR ANOTHER GOING TO
NEED A HOSPITAL. AND I CAN TELL
YOU THAT THE LIST ON THIS ON
BOTH PAGES OF THIS DOCUMENT
SHOWS THAT JUST FINANCIALLY
DISTRESSED HOSPITALS IN THE
COMMITMENT THAT WE MADE SO THAT
THEY WOULD HAVE SURVIVABILITY
PREDOMINANTLY IN LOW
SOCIOECONOMIC DISADVANTAGED
COMMUNITIES BECAUSE THEY
RECEIVED THE HIGHEST MEDICAL
PAYMENTS FROM THE STATE AND
AGAIN IF YOU'RE IN THE MEDICAL
BUSINESS IF YOU THERE IS NO
REASON THERE. YOU'RE NEVER GOING
TO SURVIVE BECAUSE IF YOU SPEND
A DOLLAR GET REIMBURSED ROUGHLY
70 CENTS. AND THAT'S A
COMPROMISE OF PLANS AND, YOU
KNOW, TAXES AND ALL THE
COMBINATION OF MECHANISMS TO GET
TO THAT DOLLAR, BUT IT'S A
PATHWAY TO BANKRUPTCY. WE HEARD
HIT THAT THE HARD WAY WHEN
MADEIRA CLOSED AND PUT PRESSURE
ON FRESNO AND TULARE HOSPITAL IN
RIDGECREST RIGHT NOW, THAT IS
THAT HAS CLOSED LABOR AND
DELIVERY. DON'T HAVE YOUR BABY
FOR AN HOUR AND A HALF BECAUSE
THAT'S THE NEXT CLOSEST
HOSPITAL. HAVE WE, A DELTA
HOSPITAL WHO HAS 1700 BEDS AND
THEY HAVE A BRIDGE LOAN THAT WAS
PASSED AND 21 AND 22 DUE AND
PAYABLE THIS IN TWO WEEKS. ONE
WEEK, FEBRUARY 1ST RIGHT, AND
THEY HAVE TO PAY. THEY DON'T
HAVE THE MONEY TO COVER PAYROLL
AND ALL THIS OTHER STUFF, BUT
THEY'RE GONNA HAVE TO PAY BACK A
LOAN THAT WAS GIVEN TO THEM TO
SURVIVE FOR A COUPLE OF YEARS.
AND THEN THE DEALS THAT WERE
MADE LAST YEAR, WITH THE TAX
PULLING DOWN FEDERAL DOLLARS.
AND IS IT MY, IT'S MY
UNDERSTANDING THAT $2 BILLION
ADDITIONAL MONEY THAT WAS GOING
TO COME DOWN FROM THE FEDS FOR
THE KOTEX THAT WE ALL AGREED ON.
THERE WAS GOING TO FIND THESE
PROVIDERS AND HOSPITALS. YOU
GUYS ARE PULLING BACK. UM FIRST,
THE PROPOSAL IS ACTUALLY
INCREASING THE EMC ATTACKS BY
1.5 BILLION AND NOT PLAYING IT
DOWN. I'M NOT QUITE SURE WHERE
THE 2 BILLION IS COMING FROM. WE
DO HAVE. THERE WAS 3.1 BILLION
IN THE OUT YEARS. THAT WAS, UM
ESSENTIALLY NOT CATEGORIZED. NOT
TO ME NOT ALLOCATED. WE ARE
PROPOSING BRINGING THAT THROUGH
0.1 BILLION FORWARD INTO THE
CURRENT YEAR AND BUDGET YEAR TO
HELP SOLVE FOR SOME OF THE
SHORTFALL. BUT WE'RE ACTUALLY
NEEDING TO GO TO OUR PROPOSALS
TO GO TO THE FEDERAL GOVERNMENT
TO ASK FOR AN ADDITIONAL 1.5
BILLION, SO WE WOULD HAVE
ACTUALLY OVER $20 BILLION TAX
THAT WOULD HELP BOTH GENERAL AND
OFFSET AND OUR MEDICAL PROVIDERS
, SO THE STRUCTURE OF THE CEO
DEAL REMAINS INTACT. IT'S THE
IT'S THE SAME, UM AND SO THAT'S.
THAT'S OUR THAT'S NOT REALLY A
TRUE STATEMENT. THE STRUCTURE OF
THE TAX REMAINS THE SAME. AS FAR
AS THE STRUCTURE GOES THAT
YOU'RE GOING TO PULL DOLLARS
DOWN FROM THE FEDERAL
GOVERNMENT, BUT YOU'RE TAKING
THE MONEY FROM THE PROVIDERS IN
THE HOSPITALS THAT ARE PROVIDING
SERVICES TO ALL OF CALIFORNIANS
AND WITH THE LOW MEDICAL
REIMBURSEMENT RATES ARE POOREST
PEOPLE IN OUR COMMUNITY ARE
GOING TO BE ABSENT HOSPITALS AND
SO UM, THE ONLY REASON THAT THIS
LEGISLATURE AND THE GOVERNOR
RESPONDED TO THIS HOSPITAL
CATASTROPHE IS BECAUSE WE LOST
THE HOSPITAL YET. HAZEL HAWKINS,
DELTA, YOU'VE GOT ALMOST
EVERYBODY ON THIS DIOCESE SME
JARED PHELPS JOHN FREMONT HEALTH
CARE CENTER DISTRICT. THAT'S
ALVARADO! GIL. I'M LOOKING AT
ALL THESE EL CENTRO REGIONAL
MEDICAL CENTER MEMBERS SITTING
ON THIS DIOCESE. THESE HOSPITALS
ARE ALL IN CATASTROPHIC TROUBLE.
WE MADE A DEAL LAST YEAR UNDER
THE STRUCTURE OF THE ATTACKS
THAT THEY WOULD GET MONEY AND
THE PROVIDERS WOULD GET
RESOURCES AND THAT WE COULD TAKE
AN OFFSET SOME OF THE LOW COST
OF MEDICAL REIMBURSEMENTS. AND
NOW YOU ARE RENEGING ON THAT
DEAL. WHAT ARE THESE HOSPITALS
ARE STILL DEMANDING. THEY HAVE
SEISMIC 30 MILLION HERE. YP 30
MILLION. YOU'RE GONNA BE OUT OF
BUSINESS. YOU DON'T HAVE THE
MONEY TO PAY FOR SEISMIC. WHY
LET'S TAKE SB BY 25 5 25 HELP ME
OUT HERE. 25 THE INCREASE ON THE
HEALTH CARE PAYMENTS SO THEY
DON'T HAVE THE MONEY, BUT
THEY'VE GOT TO PAY THAT. AND
WHAT'S INTERESTING TO ME? IS
THAT THE YOU GOT THE GOVERNOR'S
OFFICE IS GOING TO NOT PAY THAT
BASED ON THE INFORMATION IN THIS
BUDGET TO THE STATE WORKERS.
WHERE'S THE POCKET ATTORNEY WHEN
YOU NEED ONE TO GO FOR TO FIGHT
FOR THE STATE WORKERS WHO WERE
WHO THE LAW SAYS YOU HAVE TO PAY
THESE WAGES. AND NOW ALL OF A
SUDDEN THE BUDGETS LIKE OH, WE
CAN'T AFFORD THAT. SO WE'RE NOT
PAYING THOSE WAGES IN THE
PRIVATE BUSINESS SECTOR AND
DISTRICT HOSPITALS. WE DON'T WE
DON'T HAVE THAT OPTION. IF THE
LAWS ALLOWANCES, YOU HAVE TO PAY
THIS WAGE AS A MINIMUM WAGE. YOU
HAVE TO PAY THAT WAGE AND
EVERYTHING ASSOCIATED WITH IT.
SO FOR YOU FOR THAT TO HAPPEN, I
THINK IS AND I FOUND OUT AFTER
RESEARCHING THIS THAT YOU'RE NOT
HELD TO THE SAME PAKISTAN DIRGES
OF THE SAME LABOR LAW STANDARDS
THAT THE PRIVATE BUSINESS
ENTERPRISES IS HELD TO, AND
THAT'S WHY YOU HAVE THE ABILITY
TO JUST SAY I KNOW IT'S THE LAW,
BUT WE'RE NOT GOING TO DO IT.
THERE'S ANOTHER PIECE IN HERE
YOU'RE GOING TO DELAY IS THAT
I'M GOING TO ASK IF THIS IS
TRUE. IS IT TRUE THAT YOU'RE
GOING TO DELAY PAYMENT TO STATE
EMPLOYEES BY 2.5 WEEKS AND ONLY
PAY THEM IN JULY VERSUS JUNE, SO
YOU CAN CARRY THOSE PAYMENTS
OVER? TO THE NEXT YEAR. I MEAN,
IN THE REAL WORLD IF WE DON'T
PAY OUR EMPLOYEES ON TIME,
THERE'S A LAWSUIT AND THERE'S
PENALTIES FOR NON PAYMENT OF
WAGES. HOW COME YOU DON'T COMPLY
WITH THAT? AND HOW ARE YOU
EXEMPT FROM THAT? AND WHY ARE
YOU DOING THAT? SO THERE ARE A
LOT OF QUESTIONS THERE. I WILL
TRY TO RESPOND TO THEM AS I
RECALL THEM. THE FIRST ONE BEING
THE I THINK YOU'RE TALKING ABOUT
THE JUNE TO 2 JULY REFERRAL,
WHICH IS MOVING ONE THE STATE
EMPLOYEE PAYMENT FROM ONE DAY TO
THE NEXT AND IT IS THERE WILL BE
NO LOSS OF CHECK WITHIN THAT,
UM, THAT THAT TIME IT IS MOVING
JUST BY ONE DAY, AND SO
EMPLOYEES WILL BE PAID. UM, NEXT
DAY. AFTER PAYDAY. THEY WILL BE
PAID. YES WHICH IN THE REAL
WORLD IS A DELAY OF PAYMENT AND
WE COULD CENTER GROWTH AHEAD.
YES AM I KNOW IRRITATED, BUT
THAT'S OKAY AND JUST WANT TO
REMIND MEMBERS HAVE NOT ADOPTED
THIS BUDGET PROPOSAL, SO IT IS
PERFECTLY LEGIT TO ASK QUESTIONS
ABOUT. YOU KNOW THIS, UM. WHY
WHY THE GOVERNOR'S PROPOSING
EXTRA WIDE, BUT CERTAINLY JUST
REMIND YOU THIS IS A PROPOSAL.
THIS IS NOT YET ADOPTED. BUDGET
DEPARTMENT FINANCE. GO AHEAD.
YES AND TO YOUR OTHER QUESTION
ABOUT TAKING MONEY FROM
HOSPITALS THAT'S NOT ACCURATE.
IT'S NOT AN ACCURATE DESCRIPTION
OF OUR PROPOSAL AT ALL. AND WE
WILL WE HAVE CONTINUED. WE HAVE
COMMITTED TO INCREASE RATES TO
PROVIDERS, WHICH WE WILL
CONTINUE TO PAY. UM WHAT THIS
PROPOSAL DOES IT AGAIN. IT IS A
PROPOSAL IS TO TAKE MONIES THAT
WERE SITTING IN AN ACCOUNT IN
THE OUT YEARS MOVE IT FORWARD TO
HELP OUR BUDGET. PROBLEM AND TO
HELP US SUSTAIN WHAT WE CAN TO
PAY FORWARD TO PAY THESE RATES
GOING FORWARD. UM, IT DOES PUT
PRESSURE ON THE GENERAL FUND AND
IN THE BACK OF THIS EMC ATTACKS,
BUT THE HOPE IS ALWAYS THAT WE
WOULD GET ANOTHER TAX WOULD BE
RENEWED AND PAID OUT IN THAT IN
THAT YEAR, BUT WE ARE NOT TAKING
ANY FUNDS FROM HOSPITALS. OKAY
THANK YOU FOR CLARIFYING THAT,
AND I WANT TO ECHO WHAT MY
COLLEAGUE FROM, BIEBER SAID. I
DON'T THINK PEOPLE IN THIS STATE
REALIZED THAT PEOPLE YOU KNOW
THAT MAKE DECISIONS ABOUT THIS
REALIZE THAT EVERY SINGLE DOLLAR
THAT THE STATE GENERATES COMES
FROM A BUSINESS IN SOME FORM OR
ANOTHER. AND I KNOW I HAVEN'T
PLEASE AND PEOPLE WHO PAY TAXES,
TOO, EVEN IF STATE EMPLOYEE BUT
THE BOTTOM LINE IS THAT SOME
BUSINESS STARTED UP A BUSINESS
AND CREATIVE BUSINESS TAX AND
PROPERTY TAX AND SALES, TAX AND
PAYROLL TAXES FOR THEIR
EMPLOYEES, WHICH CAME TO THE
STATE WHICH PAID YOUR WAGES,
WHICH YOU PAY TAXES ON, BUT IT
ORIGINATED FROM A BUSINESS. FOR
THE 12TH YEAR IN A ROW.
CALIFORNIA HAS BEEN THE HIGHEST
LITIGATED STATE IN THE NATION
FOR THE 12TH YEAR IN A ROW. MORE
PEOPLE IN THE 1% HAVE LEFT THE
STATE MY COLLEAGUE REFERENCE TO
800,000 PEOPLE THAT HAVE LEFT
THE STATE I IN MY OWN DISTRICT
SIT ACROSS THE TABLE FROM
SOMEBODY WITH LUNCH HAS BEEN
HERE HIS ENTIRE LIFE AND HIS
PARENTS HAVE BEEN YEARS ENTIRE,
VERY WEALTHY INDIVIDUAL. WYOMING
DRIVER'S LICENSE ACROSS TO ME.
HE PAID $8 MILLION IN TAXES TO
THE STATE OF CALIFORNIA, WHICH
HE NO LONGER PAYS. NOW THAT MAY
NOT SEEM LIKE A LOT OF MONEY TO
YOU GUYS, BUT I DON'T PROBABLY
IT WOULD TAKE EVERYBODY IN THIS
ROOM. BASED ON WAGES TO MAKE UP
THAT DIFFERENCE FOR THAT ONE
INDIVIDUAL LEAVING WE ARE NOT
TAKING CARE OF THE PEOPLE YOU,
SIR MENTIONED WE HAVE A LOW
BUSINESS EXPANSION BUSINESS
STARTUPS. ALL THIS STUFF IS VERY
DIFFICULT TO START A BUSINESS.
IT'S VERY DIFFICULT TO KEEP A
BUSINESS AND IT'S VERY DIFFICULT
TO COMPLY WITH THE LABOR CODE IN
THIS INDUSTRY AND THE
CONTINUATION OF LAWSUITS. PAGA
REFORM. WE'VE BEEN FIGHTING FOR
THAT BECAUSE THAT'S JUST A
MODERN DAY EXTORTION CAPACITY
FOR ATTORNEYS TO FILE LAWSUITS
AGAINST BUSINESSES AND CREATING
ADDITIONAL SEX. THE UM THE E D D
OVERDRAFT JUST GOING TO SEND A
BILL. YOU KNOW, AT THE END,
YOU'RE JUST GOING TO SEND A
BILL. I'M JUST TRYING TO SEE
SENATOR GROWTH, BUT I HAVE TO
CONSCIOUS OF THE FACT THAT WE
HAVE MANY PEOPLE HERE IN THE
PUBLIC WHO WANT TO COMMENT, SO
WE HAVE AND I'M GOING TO TAKE
WHAT YOU ARE THAT YOUR REMOTE
FINISHED COMMENTED VERSION WILL
I'LL FINISH WITH ONE SENTENCE.
WE HAVE TO DO SOMETHING ABOUT
THE BUSINESS CLIMATE OR REVENUE
IS GOING TO KEEP DECLINING AND
YOU'RE GOING TO HAVE TO KEEP
BORROWING FROM FUTURE YEARS IN
FUTURE YEARS. THOSE DOLLARS ARE
NOT GOING TO BE THERE TO ROOT
CAUSE ANALYSIS. FIND OUT WHAT'S
GOING ON, AND YOU GUYS REALLY
KNOW WHAT'S GOING IN ON ALL THIS
SHIFTING AND THE QUEEN OF SPIN.
YOU ARE THE QUEEN OF SPIN, AND I
THINK WE JUST NEED TO REALLY
ADDRESS THE FACTS AND MAKE SURE
THAT WE GET A GOOD BUDGET THIS
YEAR. AND STOP BORROWING FROM
OUR FUTURE YEARS. THANK YOU,
MADAM CHAIR FOR LETTING ME GO ON
A RANT. WELCOME AND THAT, OF
COURSE, THE COMMENT, NOT A
QUESTION, AND I JUST WOULD POINT
OUT THAT THE LAST TIME THERE WAS
THAT PAYROLL SWITCH WHEN WE WERE
HAVING IN THE RECESSION. SERIOUS
DEFICITS WAS UNDER GOVERNOR
SCHWARZENEGGER. BUT LET US GO
NOW TO SENATOR NEELA, THEN YES,
THAT'S RIGHT. THANK YOU, MADAM
CHAIR. I'VE GOT A COUPLE OF
QUESTIONS AND A COUPLE OF
COMMENTS. TRY TO MAKE IT AS
QUICKLY AS I CAN. BUT THIS IS
REALLY IMPORTANT STUFF BECAUSE A
LOT OF THESE QUESTIONS ARE BEING
POSED BECAUSE OF CONCERNS ABOUT
THE GOVERNOR'S PROPOSAL AND THE
STRUCTURE. HIS PROPOSAL, BUT ONE
SPECIFIC QUESTION WITH REGARD TO
THE NET OPERATING LOSS.
CARRYOVER PROPOSAL IS THAT IN
ANY WAY INTENDED TO BE
RETROACTIVE, OR WILL IT BE
EFFECTIVE IN THE BUDGET YEAR,
MEANING 2324 AND BEYOND. CALL ME
WHITE DEPARTMENT OF FINANCE.
THANK YOU FOR THE QUESTION. IT'S
NOT. IT'S NOT RETROACTIVE IN ANY
WAY IT'S EFFECTIVE FOR TAXABLE
YEARS. BEGINNING ON OR AFTER
JANUARY, 1 2024 SO IT WILL BE
EFFECTIVE FOR SO WHEN
CORPORATION FILES THEIR TAX
RETURN FOR 2024 OR LATER.
ANIMALS THAT THEY HAD EARNED OR
ANY ANIMALS THEY HAD UNDER THE
PAST, THEY WILL ONLY BE ABLE TO
USE UP TO THEY CAN USE ALL THEIR
ANIMALS, BUT ONLY UP TO 80% OF
THEIR TAXABLE INCOME SO THEY
CAN'T FULLY OFFSET BUT THEY'RE
ABLE TO USE 4/5. WHAT A DEAL. SO
UM, ANOTHER QUESTION WITH REGARD
TO DELAY OR DELAYS AND DEFERRALS
AND DEFERRALS. BEING
CHARACTERIZED AS MORE CERTAIN,
WHICH MEANS THAT THE DELAYS ARE
LESS CERTAIN. UM, BUT THE
GOVERNOR SAID THE DEFERRALS,
PARTICULARLY WITH REGARD TO UC
AND CSU, THEY CAN BORROW AGAINST
THAT. I WOULD SUGGEST TO MY
FRIENDS IN THOSE INSTITUTIONS
THAT THEY WOULD BE FOOLISH TO
BORROW AGAINST THAT. BUT GIVEN
THE PROJECTION OF CONTINUED
DEFICITS UP TO A CUMULATIVE 90
BILLION THROUGH THREE MORE
BUDGET YEARS OUT, POSSIBLY ARE
YOU GOING TO MEET THESE DELAYS
AND DEFERRALS IN SUBSEQUENT
YEARS WHEN WE'RE ALREADY BEHIND
THE EIGHT BALL? YES AND THANK
YOU FOR THE QUESTION AND THE
DISTINCTION. I THINK IN IN THIS
BUDGET, WE DO HAVE CATEGORIES OR
BUCKETS. AS I SAID, IN SOME OF
THOSE ARE THE RESERVES AND SOME
ARE REDUCTIONS AND SOME ARE
DELAYS AND REFERRALS. WE
ACKNOWLEDGE THAT THERE ARE
OPERATING DEFICITS IN THE OUT
YEARS. CONSTITUTIONALLY WE MUST
SOLVE FOR THIS YEAR AND WE HAVE
DONE THAT THROUGH THIS BUDGET.
WE NEED TO CONTINUE TO ASSESS
WHAT THOSE OUT YEARS ARE GOING
TO LOOK LIKE WHAT'S GOING TO
TAKE TO BRING THOSE DOWN? UM WE
HAVE ONE TIME A LOT OF ONE TIME
SOLUTION. SO BREAK TAKE PUTTING
ON THE TABLE, YOU KNOW, CUTS
THAT WERE ONE TIME VERSUS
ONGOING. WE HAVE SOMEONE GOING
AS WELL. BUT TO REALLY GET AT
THE HEART OF THE OUT YEARS. IT
WOULD REQUIRE, UM PRODUCTIONS TO
ONGOING PROGRAMS PERMANENT,
POSSIBLY TO SOME OF OUR CORE
PROGRAMS. AND SO I THINK WE'RE
MINDFUL OF THAT, AND WE WANT TO
HAVE DISCUSSIONS THE LEGISLATURE
AS WE GO FORWARD ON THAT TO
ADDRESS YOUR ISSUE, JUST NOT
JUST DELAYS, BUT NOT THE FULL
BUDGET AND ALL OF OUR PROGRAMS.
I THINK THEY LEO ALSO WANT TO
REST GO AHEAD AND SENATOR NILO
REGARDING YOUR QUESTION. YOU
MENTIONED THE NET OPERATING LOSS
PROPOSAL IN WHICH THE
ADMINISTRATION DESCRIBES AS
CONFORMITY TO THE FEDERAL LAW.
THAT'S TRUE TO AN EXTENT. BUT
ONE THING WE DO POINT OUT IS
THAT UNDER THE FEDERAL LAW,
THOSE NET OPERATING LOSSES THAT
ACCRUE BEGAN AFTER 2017 ARE
ELIGIBLE FOR THIS, BUT THE
ADMINISTRATION'S PROPOSAL IS TO
ENCOMPASS ALL THE NET OPERATING
LOSSES FROM YEARS BEFORE 2017.
SO IN THAT SENSE IT IS NOT
CONFORMING STRICTLY WITH FEDERAL
LAW. SECONDLY I THINK YOU RAISED
IN A VERY IMPORTANT QUESTION
ABOUT THE DELAY OF THESE
PAYMENTS TO THE CSU AND USC. USC
èC PARDON ME. THAT IS A
TERRIBLE STATE. THAT WAS A THAT
WAS A FAIR AND I AM, UH, DID NOT
EVEN ATTEND THE SCHOOL. SO UM
WHAT YOU KNOW, I THINK IF WE'RE
FACED WITH A BUDGET DEFICIT THIS
YEAR, SUCH THAT WE NEED TO DELAY
500 MILLION IN THESE PAYMENTS TO
A FUTURE YEAR. THAT THE PROPOSAL
REALLY IMPLIES THAT THEN WE
WOULD BE PAYING A BILLION
DOLLARS IN THE SUBSEQUENT YEAR
TO CSU AND UC FRUIT TO MAKE UP
BOTH. AND GIVEN THAT THE
FORECASTS INDICATE 37 $36
BILLION DEFICIT IN THAT YEAR. I
THINK IT'S A VERY IMPORTANT
QUESTION IS THE TYPE OF QUESTION
TO THE LEGISLATURE SHOULD BE
THINKING ABOUT AS YOU GO THROUGH
THESE DELIBERATIONS. YEAH. THANK
YOU. AND I'M TRYING TO TAKE
OTHER THAN THE SPECIFIC NOEL NET
OPERATING LOSS QUESTION, SORT OF
A HIGHER VIEW, AND BY THE WAY,
THAT IS A VERY SMALL SOLUTION IN
THE CONTEXT OF THE BUDGET. BUT
TO INDIVIDUAL BUSINESSES. IT'S
HUGE. THEY HAVE LOST MONEY. AND
THEY'RE TRYING TO RECAPTURE THAT
BY NOT OVER PAYING TAXES WHEN
THEY DO START MAKING MONEY TO A
BUSINESS. THAT IS A HUGE DEAL. I
CAN'T OVEREMPHASIZE THAT. BUT
AGAIN, IT'S TROUBLING THE WITH
REGARD TO DELAYS AND DEFERRALS.
WE JUST WE ARE JUST DELAYING AND
DIFFERING PROBLEMS INTO THE NEXT
YEAR, AND I THINK WE KNOW THAT.
AND UM A LOT OF THE QUESTIONS.
WELL, FIRST OF ALL, I WANT TO
MAKE A QUICK COMMENT ABOUT THE
CHANGING NATURE OF THE IN AND
OUT MIGRATION THAT MR PROTECT
WAS TALKING ABOUT WITH SENATOR
DOLLY THAT IS A VERY TROUBLESOME
TREND. AND I THINK WHAT MR
PROTECT SAID, WAS THAT WE CAN'T
TELL IF IT'S A PERMANENT TREND,
BUT IT HAS CHANGED IN THE LAST
FEW YEARS FROM WHAT IT WAS
BEFORE WE WERE TRAINED, TRADING
TRADING IN AND OUT MIGRATION AT
ROUGHLY THE SAME DEMOGRAPHICS
AND INCOME LEVELS, ETCETERA, BUT
NOW IT'S DIFFERENT. WE'RE HAVING
PEOPLE WITH LOWER INCOMES COMING
INTO THE STATE AND HIGHER
INCOMES, LEAVING THE STATE AND
JUST THINK A LITTLE BIT ABOUT IF
THAT IS A TREND, THE IMPACT
THAT'S GOING TO HAVE CERTAINLY
ON REVENUES. BUT THE ECONOMY OF
THE STATES AS A WHOLE, AND
THEREFORE THE QUALITY OF LIFE OF
EVERYBODY IN THE STATE OF
CALIFORNIA BEYOND THE BUDGET
TROUBLES THAT WE COULD
POTENTIALLY HAVE, SO WE REALLY
NEED TO KEEP A CLOSE EYE ON
THAT. AND YEAH, A MACRO QUESTION
ABOUT THE APPROACH TO THE BUDGET
. UM AS MR PROTECT, POINTED OUT
THE APPLES AND APPLES.
COMPARISON OF THE DEFICIT IS
REALLY 58 TO 68, WHICH IS NOT A
HUGE DIFFERENCE, AND THE
GOVERNOR'S PROPOSAL GETS THE 38
BY VIRTUE OF BASELINE
ASSUMPTIONS ON THE BUDGET, BUT
THOSE BASELINE ASSUMPTIONS AS I
THINK MR PROTECT POINTED OUT,
HAVE TO BE BUDGET ACTIONS IN AND
OF THEMSELVES. AND SO I'M
WONDERING. THIS JUST CONFUSED
THE ISSUE AS WELL AS THE
HANDLING OF THE PROPOSITION 98,
A GUARANTEE FROM THE CLOSED
BUDGET YEAR, THE LAO RECOMMENDED
THAT THAT BE COVERED BY DRAWING
ON RESERVE, SO ESSENTIALLY, IT
IS PAID EXPECTED TO BE PAID BACK
, BUT NO YOU DON'T HAVE TO,
BECAUSE WE'LL APPLY THE RESERVES
TO IT. THAT'S PRETTY SIMPLE AND
EASY TO UNDERSTAND. WITH MR
LAIRD'S SENATOR LAIRD'S
QUESTIONS. IT'S OBVIOUS THAT
IT'S VERY CONFUSING AND YOU HAD
A DIFFICULT TIME EVEN ANSWERING
THE QUESTION AND TO HAVE A
COMPLETELY DIFFERENT APPROACH
FOR THE BUDGET, WHICH IS FURTHER
CONFUSION. WHY. I ACTUALLY THINK
THAT WE HAVE APPROACHED THIS
BUDGET LIKE WE HAVE APPROACHED
OTHER GOVERNORS BUDGETS AND WHAT
THAT IS, IS WE PROPOSE CHANGES
TO CURRENT LAW, AND WE PROVIDE
THE TRAILER BILL THAT DOES THAT.
THAT'S THE MECHANISM BY WHICH
THAT HAPPENS. AND SO PERHAPS
SOME OF THIS CONFUSION CAN BE
SETTLED WHEN WE GO OVER THE
TRAILER BALL. JUST SAY THAT
GENERALLY, BUT PARTICULARLY FOR
THIS PROP 98 PROPOSAL, WHICH I
ACTUALLY THINK IS SIMPLE BUT
CLEARLY CLEARLY THERE ARE
QUESTIONS. UM SO YES, IN IN
GENERAL, WHAT WE DO IS WE
BASELINE, WE THAT THE DEPARTMENT
OF FINANCE HAS MORE INFORMATION
THAN THE LAO BY VIRTUE OF US
BEING PART OF ADMINISTRATION AND
WE KNOW OUR DEPARTMENTS SO WE DO
BASELINE. WE DO BASELINE
ADJUSTMENTS. WE KNOW WHAT THEIR
SAVINGS WE SO WE GENERALLY
BASELINE THOSE ARE THE NUMBER
LET'S SAY ON THE EXPENDITURE
SIDE BECAUSE WE KNOW THAT, UM
AND WE HAVE INCLUDED THE PROP 98
ON THAT SIDE BECAUSE WE'RE ALSO
PROPOSING LEGISLATION TO MAKE
THAT CHANGE. ALL OF THESE
PROPOSALS REQUIRE LEGISLATIVE
ACTION, AND I THINK IT'S GREAT
TO HAVE THIS DISCUSSION BECAUSE
IT DOES. UM HIGHLIGHT THE THINGS
THAT WE ARE PROPOSING, AND AGAIN
. THEY ARE PROPOSALS. WE LOOK
FORWARD TO HEARING ALTERNATIVES.
IF THIS PROPOSAL IS TOO
CONFUSING, OR THIS PROPOSAL
DOESN'T MEET THE PRIORITIES OF
THE LEGISLATURE, WE JUST WE NEED
TO FIND OTHER ALTERNATIVES TO
MEET THIS BUDGET SHORTFALL. THEY
ARE CONFUSING, AND I THINK THAT
COULD HAVE BEEN PREDICTED AHEAD
OF TIME, BUT I'VE BEEN INVOLVED
WITH. ABOUT A DOZEN PUBLIC
BUDGETS IN MY CAREER AS AN
ELECTED OFFICIAL, LOCAL AND
STATE AND OVER THAT TIME I'VE
SEEN LOTS OF MANEUVERS FOR
CHALLENGED BUDGETS. THE TRIDENT
PROVED TRUE APPROACH TO JUST
ASSUME MORE REVENUES, WHICH I
THINK WE DID LAST SPRING, AND I
THINK THE GOVERNOR IS PROPOSING
AGAIN. AND THE, UM SIGNIFICANT
USE OF DELAYS, DEFERRALS FUND
SHIFTS AND FUND BORROWINGS.
THERE ARE SOME AH. REDUCTIONS IN
EXPENDITURES, AND THAT SHOWS
PRIORITIES BY THE WAY THIS
BUDGET PRIORITIZES BENEFITS TO
NON CITIZENS. OVER AH, BENEFITS
TO CITIZENS WHO ARE SUFFERING
FROM A DEVELOPMENTAL
DISABILITIES, AS WELL AS AS
SENATOR GROVE WAS QUESTIONING
LACK OF ADEQUATE HELP TO
HOSPITALS IN THE STATE THAT ARE
PARTICULARLY CHALLENGED AND IN
RURAL AREAS AND I JUST HAVE TO
SAY THAT OF THE DOZEN BUDGETS
THAT I'VE BEEN INVOLVED WITH IN
THE PUBLIC SECTOR. UM THIS ONE
IS PROBABLY THE MOST ILLUSORY IN
MY OPINION. AND I JUST HAVE TO
QUESTION THE TRUTH. HONESTY OF
THE APPROACH. IT'S NOT A
QUESTION I WAS GOING TO SAY
WE'LL TAKE THAT AS A COMMENT.
AND UH, WE WILL, UM, MOVE ON TO
SENATOR SEYARTO AND I STILL HAVE
SENATOR DURAZO, SENATOR BECKER
AND SENATOR OKO BOG AND AGAIN
MEMBERS. WE DO WANT TO HEAR FROM
THE PUBLIC, SO PROCEED. THANK
YOU VERY MUCH AND KEEPING IN
MIND. EVERYTHING PEOPLE HAVE
TALKED ABOUT UP. THERE ARE
CONCERNS OF ALL OF OURS. PEOPLE
HAVE EXPRESSED A LOT OF THINGS
THAT WE'RE ALL CONCERNED ABOUT
ON THE REVENUE SIDE. WHAT'S OUR
PLAN FOR INCREASING OUR REVENUE
BECAUSE THAT'S GOING TO HAVE TO
HAPPEN. BUT AT THE SAME TIME, IF
YOU LOOK AT WHERE WE'RE TAXING
WE'RE TAXING THE VERY BUSINESSES
THAT WE'RE TRYING TO KEEP HERE.
IT LOOKS LIKE WE HAVE CLOSE TO A
BILLION DOLLARS IN INCREASED
TAXES, LANDING ON THE SHOULDERS
OF OUR BUSINESSES, AND IN
ADDITION TO OUR LABOR COSTS AND
THINGS LIKE THAT, AND IF THAT'S
WHERE A LOT OF OUR REVENUE
SHORTFALL CAME FROM THERE IS A
REASON FOR THAT. IF WE'RE GOING
TO MAKE IT EVEN MORE EXPENSIVE
FOR THEM TO BE HERE. HOW ARE WE
GOING TO? WHERE ELSE ARE WE
GONNA GET REVENUE FROM? YEAH I
WOULD. I WOULD JUST POINT OUT
THAT OUR REVENUE, UM PROPOSALS
AND THERE ARE SEVERAL, BUT THE
LARGEST BEING THE WELL
CONFORMITY OR PART OF THE
FEDERAL GOVERNMENT ARE SMALL IN
REGARDS TO THE TOTAL. UM
SOLUTION THAT WERE THE TOTAL
37.9 BILLION. WE ARE PULLING
BACK ONE TIME FUNDS. WE ARE
PROPOSING SOME REDUCTIONS THAT
ARE ONGOING AND AGAIN WE HAVE
DEFERRED DEFERRALS, SHIP FUND
SHIFTS AND TAKING TAKING
ADVANTAGE OF SOME OF THAT CASH
THAT WE HAVE IN SPECIAL FUNDS
AND BORROWING. SO IT IS WHAT WE
WOULD CALL IT A BROAD BASED, AND
, UM, UM YEAH, APPROACH TO
DEALING WITH THIS PROBLEM, SO IT
DOES INCLUDE SOME REVENUES, BUT
REVENUES OUTSIDE OF THE TEXT,
WHICH IS THE LARGE 13.8 BILLION.
WE ARE NOT PROPOSING LARGE
REVENUE PROPOSALS, AND WITHOUT
THAT WE ARE MOVING EXPENDITURES
INTO FUTURE YEARS. THAT WE DON'T
ANTICIPATE BEING ABLE TO COVER
WITH REVENUES, SO WE'RE GOING TO
BE HAVING THE SAME CONVERSATION
NEXT YEAR. PEOPLE WHO WE HAVE
NOW TOLD HEY, IT'S JUST THE
DELAY. IT'S NOT A CUT. IT'S A
DELAY. THEY'RE GOING TO BE BACK
HERE WONDERING WHERE THEIR
DELAYED MONEY IS, AND WE'RE
GOING TO HAVE TO TELL HIM THAT
DOESN'T EXIST. WE'RE GOING TO
DELAY IT ANOTHER YEAR AND
LOOKING AT OUR PICTURE. IT LOOKS
LIKE AND TELL ME IF I'M WRONG
THAT OUR DEFICIT IS GETTING
LARGER AND LARGER RIGHT THROUGH
2728. CLOSE TO $90 BILLION. IT'S
ACTUALLY 30 BILLION IN EACH OF
THIS YEAR'S $90 BILLION
EVENTUALLY, SO WE HAVE TO GET
HONEST WITH THE PUBLIC. AH WE
PROMISED THEM A LOT OF THINGS,
AND NOW WE DON'T HAVE THE MONEY
TO PAY FOR IT. AND SO WE DO HAVE
TO CLAW BACK SOME THINGS. UM ONE
OF THE THINGS WE SHOULDN'T BE
CLAWING BACK ON IS OUR
DISABILITY. THAT'S $650 MILLION.
AND THAT IS THAT THE LAST
PAYMENT THAT WE HAVE PROMISED
THEM OVER A FEW YEARS? PART OF
THEIR DISABILITY PACKAGE. SO
THAT BECAUSE IF THAT'S IF THIS
IS THE LAST ONE, AND THEY'VE
ALREADY PROGRAMMED THIS MONEY,
WHAT ARE THEY GONNA DO? SENATOR
CHRIS O'NEILL DEPARTMENT OF
FINANCE IS THAT REGARDING THE
DEPARTMENT OF DEVELOPMENTAL
DISABILITIES, YOU JUST CORRECT.
UM SO UP TO THIS UP THROUGH THIS
FISCAL YEAR. PROVIDERS THAT ARE
INCLUDED IN THE RATE MODELS THAT
ARE BEING REFORMED, HAVE SEEN AN
INCREASE OF THEIR RATES
EQUIVALENT TO 50% OF THE
INCREASE THAT THEY WOULD
EVENTUALLY SEE. THE GOVERNOR'S
BUDGET PROPOSES THE FINAL
ADJUSTMENT FOR THIS RIGHT REFORM
TO BE TO TAKE EFFECT JULY 1ST
2025, WHICH WAS THE ORIGINAL
TIMELINE WAS, WHICH WAS THE
ORIGINAL TIMELINE IN WHICH, UM,
WHEN THE BUDGET PICTURE IS
DIFFERENT, WE HAD HOPED WE THE
BUDGET HAD ACCELERATED TO JULY
1ST 2024. BUT, UM IT IS THAT THE
OUTSTANDING ADJUSTMENT IS THE
FINAL ADJUSTMENT IN THIS REFORM
IMPLEMENTATION. OKAY SO MR THAT
KIND OF EXPENDITURE SIDE IS A
PRIORITY THAT I THINK I'VE HEARD
A LOT OF PEOPLE EXPRESS THAT WE
NEED TO ADDRESS WE HAVE $500
MILLION GOING TO ELECTRIC BUSSES
RIGHT NOW. WE'RE STRUGGLING.
TALK TO THE INDUSTRY. WE ARE
STRUGGLING TRYING TO MAKE THAT
WORK. AND THIS IS THE PERFECT
OPPORTUNITY WE HAVE IS A STATE
JUST TAKE A STEP BACK. TAKE CARE
OF SOME OF THESE PRIORITIES LIKE
OUR FOSTER YOUTH AND ARE
DISABLED PEOPLE AND ALLOW THE
TECHNOLOGY AND THE STUFF THAT WE
NEED TO GET ON THE GROUND TO BE
ABLE TO SUPPORT THE LOFTY GOALS
OF THE CLIMATE CHANGE STUFF. WE
DON'T NEED $500 MILLION SPENT ON
ELECTRIC SCHOOL BUSSES. WE
ALREADY HAVE SCHOOL BUSSES. WHAT
WE NEED IS THEIR LAST PAYMENT TO
BE MADE ON TIME SO THAT THEY CAN
DO THE JOB THAT WE ASKED THEM TO
DO. AND SO THAT'S I THINK
SOMETHING ELSE THAT WE REALLY
NEED TO PAY ATTENTION TO LAST
THING BECAUSE EVERYTHING ELSE
BEEN COVERED. THIS HASN'T UH,
$700,000,750 MILLION THAT WAS
PROMISED IN LOCAL SPENDING. IN
OTHER WORDS, THESE ARE DISTRICT
ASKS THAT PEOPLE HAD AND THESE
DISTRICT ASK THE WORD FOR PUBLIC
SAFETY INFRASTRUCTURE,
THEREFORE, ROAD INFRASTRUCTURE.
THINGS THAT PEOPLE NEEDED THE
LAST BIT OF FUNDING IN ORDER TO
ACCOMPLISH. AND WE'RE BASICALLY
SAYING THE $750 MILLION IS BEING
CUT AND ANYTHING THAT GOT PAID
GOT PAID, AND EVERYTHING ELSE IS
ON THE CHOPPING BLOCK. WE NEED
THAT LIST OF WHO IS ON THE
CHOPPING BLOCK BECAUSE THOSE ARE
AGAIN SOME OF THESE AGENCIES
HAVE BEEN PREPARING TO BE ABLE
TO DO THIS, AND NOW WE'RE
PULLING THE RUG OUT FROM UNDER
HIM. IT'S GOING TO COST HIM
TWICE AS MUCH TO BE ABLE TO FIX
WHAT THEY NEED TO FIX. SO ARE WE
GOING TO GET THAT LIST? I
APPRECIATE THE QUESTION, AND I
JUST WANTED TO SAY THAT THE
ACTUAL PROPOSAL IS FOR 350
MILLION OF THAT TOTAL BUCKET.
THE REASON IT IS 350 MILLION IS
BECAUSE WE ARE PROPOSING. WE
DON'T KNOW ALL THE FUNDS THAT
HAVE GONE OUT. SO FAR, THERE
WERE OVER 600 LOCAL RIGHT FRONT
AND ACROSS SPREAD ACROSS
MULTIPLE DEPARTMENTS AND
AGENCIES. AND AT THIS POINT WE
DON'T HAVE A CONSOLIDATED LIST
YET AND WE DON'T KNOW WHAT THE
ACTUAL MONIES ARE LEFT. AND SO
THAT WAS AN ASSUMPTION. THAT WE
MADE AGAIN. A PROPOSAL? NO
THERE'S BEEN A LOT OF DISCUSSION
AROUND THIS, AND THEN WE WILL
CONTINUE TO HAVE THAT
DISCUSSION. GREAT AND THAT NEEDS
TO HAVE A AGAIN. WE NEED
PRIORITIES. FIRE STATIONS IN
FINISHING UP AN INFRASTRUCTURE
PROJECT AS MUCH, PROBABLY MUCH
MORE IMPORTANT THAN YOU KNOW,
SOME OF THE OTHER PROJECTS THAT
AROUND ON THOSE LISTS, AND SO IF
WE HAVE TO CUT WE NEED TO MAKE
PRIORITIES BASED ON NEED AND
WHAT'S BEST FOR THE PUBLIC, NOT
NECESSARILY ON POLITICS, AND
THAT'S WHAT I'M CONCERNED ABOUT.
SO THANK YOU SO MUCH A LOT OF
WORK GONE INTO THIS AND I
APPRECIATE IT. WE WILL GO TO THE
NEXT ON MY LIST. LIST AND,
OBVIOUSLY, MEMBERS. THIS IS OUR
FIRST DISCUSSION IN THIS WE WILL
HAVE ALL OF THE BUDGET
SUBCOMMITTEES AND OUR FULL
COMMITTEE HEARINGS TO GET. UH,
YOU KNOW, IT'S WE'RE GOING TO BE
. AS HAS BEEN THEY
ADMINISTRATION HAS PUT FORWARD
PROPOSAL. WE KNOW THERE HAS TO
BE TRADE OFFS. WE KNOW THERE HAS
TO BE. WE HAVE A DEFICIT, SO
WE'RE GOING TO HAVE TO ADOPT A
BUDGET THAT ADDRESSES THAT. AND
SO WE'RE GOING TO HAVE LOTS OF
TIME TO GET INTO DISCUSSION OF
ALL THE TRADE OFFS, SO IF WE
COULD STAY RELATIVELY HIGH LEVEL
NOW, THAT WOULD BE GREAT. AND WE
HAVE SENATOR DURAZO, SENATOR
BECKER AND SENATOR OCHOA BUG. SO
. FOR SO, OKAY, SO, SENATOR
BECKER, GO AHEAD. GREAT THANK
YOU JUST KIND OF ONE OR TWO HIGH
LEVEL COMMENTS AND A COUPLE ON
ON CLIMATE. UM JUST ONE FOR L A.
I THINK WE MET THE PAST. YOU
KNOW, YOU'VE INDICATED TO ME
THAT THAT REVENUE IS REALLY TIED
TO THE STOCK MARKET. SO UM, WITH
STOCK MARKETS A RECORD HIGH, AND
ARE YOU CONCERNED THAT YOU'RE
PROJECTING FLAT REVENUES. UM
GOING FORWARD. SO SENATOR BECKER
. THE REVENUE FORECAST THAT WE
HAVE INCORPORATE LIKE I WAS
SAYING EARLIER, MUCH OF THE
APPRECIATION OF THE MARKET
THROUGHOUT 2023 CALENDAR YEAR.
AND WE DO YOU KNOW IF THE GAINS
THAT WE HAVE SEEN RECENTLY WHERE
TO PERSIST AND REMAIN HIGH. IT
COULD BE SOME UPSIDE FOR US IN
APRIL AND THEN LIKE I SAID, ALSO
TYPICALLY BENEFIT THE MOST WHEN
THERE IS A THE ACCOMPANYING
INVESTMENT ACTIVITY IN
CALIFORNIA BUSINESSES. I DON'T
KNOW IF MY COLLEAGUE WOULD WANT
TO SUPPLEMENT ANY OF THOSE
POINTS. I THINK, UH, WOULD AGREE
GENERALLY WITH THE POINT THAT
WHEN STOCK PRICES GO UP, IT'S
BENEFICIAL FOR THE FOR THE
STATE'S BUDGET. NO NO ARGUMENT
THERE. I MEAN, I THINK THE
RELATIONSHIP IS SOMEWHAT COMPLEX
, IN PART BECAUSE IN THE PAST
WHEN WE LOOK BACK, AND WE SEE
THAT THE STOCK MARKET IS DOING
WELL IN THE STATE BUDGET IS ALSO
DOING WELL AT THE SAME TIME.
PART OF THAT IS A DIRECT STORY
THAT IT'S A CAPITAL GAIN STORY.
PEOPLE ARE SELLING STOCKS AT
HIGHER PRICES. THEY'RE PAYING
TAXES ON THOSE SOME OF IT IS OUR
BIG PART OF IT IS WHAT GAME
MENTIONED SORT OF AN INDIRECT
STORY THAT YOU HAVE MORE INITIAL
PUBLIC OFFERING ACTIVITY MORE
INVESTMENT INTEREST IN
CALIFORNIA BUSINESSES, AND THAT
LEADS TO MORE HIGH INCOME JOBS
BEING CREATED MORE BONUSES BEING
PAID. UM AND SO WHAT WE'RE
SEEING RIGHT NOW IS A RALLY IN
THE STOCK MARKET. THAT IT, UH TO
THIS POINT HASN'T BEEN
ACCOMPANIED BY THAT SECOND PART
THAT THE INITIAL PUBLIC OFFERING
ACTIVITY THAT WE SAW AT RECORD
HIGHS IN 2021 REALLY HASN'T
BOUNCED BACK AND SIMILARLY SORT
OF THE REALLY HIGH KIND OF
VENTURE CAPITAL INTEREST IN THE
STATE IN 2021 HASN'T RETURNED
EITHER, AND SO IT'S DEFINITELY A
POSITIVE DEVELOPMENT FOR THE
STATE THAT THE STOCK MARKET HAS
HAS RALLIED IN RECENT MONTHS AND
AS GAY MENTIONED IF IT STAYS UP
THERE THAT DOES PROVIDE A LOT OF
UPSIDE FOR, YOU KNOW, PROBABLY
PARTICULARLY 2425. YOU KNOW THAT
BEING SAID, UH WE DID SEE, YOU
KNOW THE STOCK STOCK PRICES DID
GO UP QUITE A BIT AND CALENDAR
YEAR 23. AND EVEN WITH THAT, UM,
THE CURRENT READ THAT WE'RE
GETTING ON JANUARY INCOME TAX
COLLECTIONS, WHICH IS KIND OF
THE FIRST DATA POINT WE WOULD
GET THAT WOULD SHOW ANY SORT OF
POTENTIAL POSITIVE BENEFIT FROM
THAT FROM THE STOCK PAYMENTS, IT
WOULD BE PEOPLE PAYING QUARTERLY
ESTIMATED PAYMENTS ON THOSE
CAPITAL GAINS FROM 23 THOSE
JANUARY SIMILAR PAYMENTS HAVE
BEEN RELATIVELY WEAK AND SO MM.
THE DATA WE HAVE AT THIS MOMENT
IS NOT YET INDICATING TO US THAT
THAT STOCK MARKET RALLY IS
SHOWING A LOT OF BENEFIT. YET.
YEAH ACTUALLY, I'M AGREEING WITH
YOU. I MEAN, AS REPRESENTING
SILICON VALLEY. IT'S JUST I
THINK UNDERSCORES THIS POINT.
I'VE TRIED TO MAKE TO MAYBE THE
LAST FEW YEARS THAT HOW
DEPENDENT WE ARE REALLY ON THOSE
THAT THAT KIND OF IPO ACTIVITY.
I THINK WE PROBABLY
UNDERESTIMATE THE IMPACT OF THIS
PACKS, WHICH WAS LIKE A LIMITED
PHENOMENON WE REALLY SAW FOR A
YEAR OR TWO WHERE EVERYTHING WAS
MARKED TO MARKET. I MEAN, ANY
INVESTMENT ACTIVITY AND STARTUPS
THAT TAKES 5 TO 10 YEARS TO
REALIZE, BUT THIS PACKS.
EVERYTHING WAS MARKED TO MARKET
IMMEDIATELY, AND THAT PHENOMENON
IS GONE. RIGHT? SO WE'VE WE'VE
KIND OF I THINK WE'VE
UNDERESTIMATED THAT IMPACT, BUT,
UM, CERTAINLY THE PO MARKET
COULD COME BACK AS YOU SAY, WITH
HIGHER WITH HIGHER YOU KNOW,
WITH A HIGHER STOCK MARKET, BUT
WE ARE I THINK SHORTLY DEPENDENT
ON THAT. SO UM, YOU KNOW, JUST
SAY LESS HIGH LEVEL COMMENT
REPRESENTING MY DISTRICT PAYS
ROUGHLY 15% OF INCOME TAXES AND,
UM. YOU KNOW, WE HAVE SEEN SOME
PEOPLE LEAVE FOR SURE. UM BUT
I'M HOPING I THINK THAT OUR WORK
HERE AS WELL AS OUR WORK ON
HOMELESSNESS, PUBLIC SAFETY,
WILDFIRE THINGS THAT WE'VE
ACTUALLY THAT WERE. I THINK THEY
HAVE A REAL STRATEGY ON WILL
WILL WILL HELP HELP STEM THAT A
COUPLE OF SPECIFIC COMMENTS ON
CLIMATE I WANT TO THANK THE
GOVERNOR FOR REMOVING THE STATE
SUBSIDIES FOR FOSSIL FUNERAL
COMPANIES THAT, UM, THERE WAS
SOMETHING THAT 13 MEMBERS I HAD
CALLED FOR, AND WE THINK THAT
ADDITIONAL ADDITIONAL SAVINGS
OVER $20 MILLION IN THIS BUDGET
ALONE WILL BE HELPFUL. I DID
WANNA ASK ABOUT CLEAN ENERGY
RELIABILITY. THERE WERE THIS
BUDGET REALLY? UM KIND OF GUTS A
LOT OF THOSE PROGRAMS AND I
THINK SOME OF THAT THE 55
MILLION FOR THE STRATEGIC
RELIABILITY RESERVE. UM YOU KNOW
, MAKE SENSE. AND AGAIN. WE'LL
GET INTO THIS SUBSIDY IN OUR
SUBCOMMITTEE. BUT UM, THERE WAS
A LOT OF INVESTMENTS THAT WERE
TIED TO THE DIABLO CANYON
EXTENSION DEAL. AND IT FEELS, UM
, UNFAIR TO GO BACK ON THAT THAT
PROMISE, PARTICULARLY SEEING
THESE OTC PLANTS. BEING EXTENDED
. SO WE'RE TALKING ABOUT THE 15
MILLION FOR DEBA, THE 56.9 FOR
LONG DURATION STORAGE
200,000,004 ORVILLE PUMP STORAGE
PROJECTS. SO WHY IS THE STATE
CUTTING THESE PROGRAMS AND
WEREN'T SURE ABOUT WHAT THE
HYDROPOWER PROJECTS ARE?
HYDROPOWER ENERGY SOURCE WILL BE
THIS YEAR WHEN THERE'S ALREADY A
TIGHT RESOURCE ADEQUACY YEAR.
THANK YOU, MR SENATOR BECKER
JUST AT A HIGH LEVEL AND I KEEP
KEEP IT. I'LL START THERE. UM SO
GENERAL FUND RESOURCES IN THE
PAST. A LOT OF THE ONE TIME
FUNDING DID GO TO CLIMATE. SO
JUST GENERALLY SPEAKING, YOU
WILL SEE SOME HIGHER REDUCTIONS
AND SOME HIGHER DELAYS BECAUSE
OF THAT, AS AS A RESULT OF THE
AMOUNT OF THE ONE TIME FUNDING
THAT WENT TO RESOURCES. AND IN
REGARDS TO CLEAN ENERGY.
GENERALLY, I THINK WE LOOKED AT
LOTS OF PROPOSALS AND ATTEMPTED
TO PUT ON THE TABLE, THE THINGS
THAT MADE SENSE IT IS CLEAR THAT
WE HAVE DIFFERENT OPINIONS OF
WHAT THAT IS, AND I THINK WE
WOULD LIKE TO CONTINUE TO HAVE
THAT CONVERSATION. IF NOT THIS,
THEN WHAT ELSE? OKAY WELL, LOOK
FORWARD TO HAVING THAT
CONVERSATION IN OUR SUBCOMMITTEE
, THE CLEANERS, YOU RELIABILITY,
JUST RAISING THOSE CONCERNS. UM
I'LL JUST LISTEN TO ONE OF THE
QUESTIONS. CERTAINLY CONCERNED
ABOUT THE COASTAL RESILIENCY FOR
SURE THAT MANY OF MY COLLEAGUES
SHARE, UM, GIVEN THAT WE MAY
RETURN TO THE HEMISPHERIC RIVERS
THAT WE SAW LAST YEAR. UM JUST
SPECIFICALLY LAST QUESTION,
ADMINISTRATION SAID. THAT WE
EXPECTED 10 BILLION IN FEDERAL
FUNDING RELATED TO CLIMATE AT
ONE POINT I THINK THAT WAS THE
NUMBER THAT I SAW WITH IRA AND I
J MONEY. UM WHAT? I'M JUST
WONDERING WHAT SPECIFICALLY DO
YOU HAVE ON THE WHAT FUNDS MIGHT
OFFSET THE PROPOSED CUTS IN
DEFERRALS AND THE CLIMATE
PACKAGE. AND HOW ARE YOU? HOW
ARE WE THINKING ABOUT THAT? HOW
SPECIFICALLY, UM ARE WE ABLE TO
KNOW? PLOT SOME OF THOSE
REVENUES? CAN WE GET YOU THAT
LIST? THAT 10 MILLION? I DON'T
HAVE THAT HANDY. OKAY ALSO WOULD
WANT TO SAY THAT AGAIN. SOME.
SOME OF THE DECISIONS WE MADE
WERE BASED ON WHAT COULD BE
BACKFILLED POTENTIALLY OR
SUPPLEMENTED BY OTHER FUNDING,
SPECIFICALLY FEDERAL FUNDING IN
PARTICULAR. EARLY IN SPACE OF
INFRASTRUCTURE ENERGY, AND AS IT
RELATES TO THE IRA AND I, D A,
SO WE'LL FOLLOW UP WITH YOUR
STAFF AND GET YOU THAT LIFT.
WILL FALL UPON THAT AND JUST
BLASTING THE FLAG IS JUST THE
EQUITY BUILDING. DECARBONIZATION
UM, BIG CUT 203 BILLION MILLION
AND WE KNOW THE GOVERNOR HAS A
TARGET OF 6 MILLION HEAT PUMPS
BY 2030 SO JUST RAISING THE FLAG
IN THAT AS WELL. I THINK THAT'S
SOMETHING THAT WE NEED TO COME
BACK TO YOU. THANK YOU FOR THESE
ANSWERS. THANK YOU. SO THE CHAIR
HAS CAST FATE TO THE WIND AND
LEFT ME IN CHARGE. SENATOR
DURAZO. THANK YOU. THANK YOU, MR
CHAIR. JUST BEING A IT'S VERY
BROAD. BUT I REMEMBER LAST YEAR,
BRINGING SOMETHING UP LIKE THIS.
WE NEED YOUR INFORMATION, AND I
APPRECIATE ALL THE WORK THAT THE
ADMINISTRATION DEPARTMENT OF
FINANCE AND OUR LÀ PUT INTO.
THIS IS AS WELL AS YOU'RE GIVING
US GUIDANCE. YOU ARE GIVING US
INFORMATION THAT WE NEED TO BE
ABLE TO MAKE DECISIONS ABOUT
WHAT NEEDS TO BE DEFERRED IF AT
ALL. WHAT DOESN'T WHAT? ALL
THESE REALLY, REALLY IMPORTANT
DECISIONS THAT DETERMINES WHAT
CHOICES WE HAVE AVAILABLE TO US.
AND SOME OF MY COLLEAGUES SORT
OF MADE REFERENCE TO THIS
ALREADY, BUT I'D LIKE TO HEAR
WHEN YOU DO THESE ANALYSIS TO
TELL US MORE ABOUT NOT JUST THE
STOCK MARKET. BUT WHAT ABOUT
REGULAR WORKING PEOPLE? WHERE
THEY AT IN THIS ECONOMY. HOW DO
THEY CONTRIBUTE TO THE WELL
BEING OF OUR OF OUR BUDGET? UM,
JUST AS AN EXAMPLE IT WAS
BROUGHT UP. AN INCREASE IN THE
MINIMUM WAGE OF A HEALTHCARE
WORKER, RIGHT? UM ALMOST HALF OF
THOSE WORKERS. OR ON A PUBLIC
SAFETY NET PROGRAM. SO THERE ARE
MEDICAL CAL FRESH CALL WORKS OF
FEDERAL INCOME TAX CREDIT. I
MEAN, HOW DO WE, YOU KNOW? HOW
DO WE PREFER TO USE SPEND OUR
MONEY, OUR REVENUE? WE SPEND IT
ON THE SAFETY NET OR DO WE HELP
PEOPLE EARN THE LIVING SO THAT
THEY DON'T HAVE TO RELY ON THE
SAFETY NET AND THE GOVERNMENT
DOESN'T HAVE TO FIGURE OUT HOW
DO WE FUND ALL THESE HUMAN
RESOURCES AND NOT HAVE TO PICK
BETWEEN ONE VULNERABLE GROUP AND
ANOTHER VULNERABLE GROUP 11
GROUP OF POOR PEOPLE. SO I THINK
THAT'S REALLY IMPORTANT PART OF
THE INFORMATION THAT YOU KNOW,
I'D LIKE TO HEAR WHEN YOU GIVE
US THIS THIS ANALYSIS. UM WE
HAVE CHOICES IN FRONT OF US. BUT
IF IT'S LIMITED IN TERMS OF THE
INFORMATION THEN I FEEL LIKE
THERE'S A GAP. THERE'S A HOLE
THERE IN THAT INFORMATION, SO
YOU MAY NOT HAVE A RESPONSE TO
THAT RIGHT NOW, BUT I THINK IT'S
IMPORTANT FOR US TO HAVE A
COMPLETE PICTURE OF THE ECONOMY
OF CALIFORNIA, NOT A PARTIAL
ONE. THAT'S JUST THE STOCK
MARKET. UM AND FINALLY, I JUST I
JUST WANT TO THANK YOU ALL VERY
MUCH. THIS IS THIS IS HARD. IT'S
HARD FOR YOU, BUT WE NEED YOU TO
GIVE US THE BEST, MOST ACCURATE
INFORMATION SO THAT WE CAN MAKE
HELP TO MAKE THESE DECISIONS.
YEAH. AND THE CHAIR RETURNS. I
DON'T SEE SENATOR. OH KOBACH
HERE. WAS THERE ANYONE ELSE ON
THE COMMITTEE WHO HAD NOT YET
ASKED QUESTIONS WHO WANTED TO
OKAY, WELL, UM. I THINK WE ARE
GOING TO GO TO PUBLIC COMMENT
AND PERHAPS SENATOR JOE BUG
RETURNS. WE CAN HAVE HER ASK
QUESTIONS. UM. BEFORE WE WELL,
I'LL WAIT. I'LL JUST SEND HER A
TEXT. OKAY. WELL, I CAN
INTERRUPT. ALRIGHT, SO.
OBVIOUSLY THERE'S MANY OF YOU
WHO WANT TO ADDRESS US. WE
APPRECIATE THAT, UM, I WOULD ASK
PLEASE FOR YOU TO BE AS BRIEF AS
POSSIBLE, AND I WILL START
PUTTING TIME LIMITS ON VERY
QUICKLY IF THAT, IF THAT IS NOT
THE CASE, SO, UM, LET'S PROCEED.
AND GO AHEAD YOUR YOUR NAME AND
YOUR IF YOU REPRESENT AN
ORGANIZATION, AND MY NAME IS
WEDNESDAY, POPE AND I'M WITH
JOHN BURTON ADVOCATES FOR YOUTH.
I AM HERE TO ASK THE SENATE
BUDGET COMMITTEE TO PROTECT
FOSTER YOUTH IN THE STATE BUDGET
BY MAINTAINING FUNDING FOR THIS
$13.7 MILLION HOUSING,
NAVIGATION AND MAINTENANCE
PROGRAM. THE $18.8 MILLION
SUPERVISED INDEPENDENT LIVING
PROBE PLACEMENT HOUSING
SUPPLEMENT. AND THE $30 MILLION
FAMILY. URGENT RESPONSE SYSTEM
EACH PROPOSED FOR ELIMINATION IN
THE ADMINISTRATION'S JANUARY
BUDGET. PLEASE STAND BY
CALIFORNIA'S FOSTER YOUTH. THANK
YOU LIKE SHE DID PRETTY GOOD.
HELLO MY NAME IS CODY VAN
FELDON. I AM WITH JOHN BURTON
ADVOCATES FOR YOUTH. I AM HERE
TO ASK THE SENATE BUDGET
COMMITTEE TO PROTECT FOSTER
YOUTH. IN THE STATE BUDGET BY
MAINTAINING FUNDING FOR THE 13
POINT. YOU'RE GOING TO REPEAT
EXACTLY WHAT SHE SAID. WHY DON'T
YOU JUST SAY AND I WANT TO
PROTECT THE FUNDING THAT THE
FIRST SPEAKER DESCRIBED YES,
PLEASE PROTECT FOSTERS LIKE
MYSELF. THANK YOU. I WOULD LIKE
TO ADD ON AND PLEASE PROTECT
FOSTER YOUTH AS A TWO LAST
SPEAKERS SPOKEN. THANK YOU. JON
JENSEN. I'M WITH MAKE IT HAPPEN
FOR YELLOW COUNTY. WE'RE A
NONPROFIT AND I DID. OH, THE
PREVIOUS THREE SPEAKERS. THANK
YOU. CHÁVEZ CEREAL. IN
SACRAMENTO, INDOCUMENTADOS IS
YESTERDAY'S NEWS OF A HANDOVER
IS IN CONSTRUCTION. OFFICIAL
PERSON IN DOCUMENTARY
DISCRIMINATION OPPRESSION.
BENEFICIAL VARLA LADY RED
FAMILIAR. TESCO'S AS IF HE'S
ILLICIT ORTEZ BèC BABIES
DOCUMENTARY IS IN DHAKA EQUALS.
SITUATION ASADO PORTRAYS
DISCRIMINATORY NEIGHBORS
UNIVERSITY THAT SO YES,
SUPPORTED THEM FAMILIAR.
PASSARELLA GRACIAS. TRANSLATE AS
BRIEF AS I CAN FOR HER. SHE'S AN
UNDOCUMENTED WORKERS. SHE WORKS
IN CONSTRUCTION SHE HAS BEEN
LIVING IN SACRAMENTO. FOR 19
YEARS. SHE HAS THREE KIDS WERE
HERE ADVOCATING FOR SAFETY NET
FOR ALL AND LIKE SHE MENTIONED
IN HER WORKPLACE. THERE'S LARGE
DISCRIMINATION ON TOP OF THE
FACT THAT AS BEING UNDOCUMENTED
WORKER SHE HAS NO SECURITY NET,
WHICH IS WHY WE'RE HERE
ADVOCATING FOR THEM. THANK YOU.
THANK YOU. GOOD AFTERNOON. MY
NAME IS CRISTINA HECHT AND I'M
PART OF THE POLICY TEAM AT èC
NP NUTRITION POLICY INSTITUTE IS
FUNDED BY THE BUDGET TO EVALUATE
OUR SCHOOL MEALS FOR ALL PROGRAM
. I WANT TO TELL YOU THAT THE
PROGRAM IS WORKING, ANALYZING
THE DATA RESPONSES FROM HUNDREDS
OF PARENTS, STUDENTS AND FOOD
SERVICE DIRECTORS ACROSS OUR
STATE. HAS BEEN TRULY
HEARTWARMING. THERE'S SO MUCH
ENTHUSIASM FOR AN APPRECIATION
OF MEALS FOR ALL AND ALSO
RECOGNITION OF SOME CHALLENGES.
SOME TOP LEVEL FINDINGS. MALE
PARTICIPATION IS RISING SO MORE
CHILDREN ARE BENEFITING FROM
HEALTHY MEALS AND WITHOUT THE
STIGMA THEY USED TO FEEL WHEN
MEALS WERE FOR POOR KIDS. I WANT
TO REMIND YOU THAT FOR THE
AVERAGE CHILD, THE FOOD THEY GET
AT SCHOOL IS HEALTHIER THAN WHAT
THEY EAT THE REST OF THE TIME.
THE MAJORITY OF FAMILIES REPORT
THAT KNOWING THEIR KIDS CAN EAT
TWO HEALTHY MEALS AT SCHOOL EACH
DAY REDUCES FAMILY STRESS AND
STRETCHES FAMILY BUDGETS FOR
OTHER NECESSITIES. AS FOR
STUDENTS, ALMOST ALL ENDORSED
SCHOOL MEALS FOR ALL WITH
GREATER PARTICIPATION IN RECENT
INCREASED FOOD AND LABOR COSTS.
MORE FUNDING IS REQUIRED SIMPLY
TO KEEP PACE. THANK YOU. GOOD
AFTERNOON MEMBERS OF HUGO AND
SELL IT ON BEHALF OF THE SALTON
SEA AUTHORITY. WE ARE JOINT
POWERS AUTHORITY CONSISTING OF
THE COACHELLA VALLEY WATER
DISTRICT, THE IMPERIAL LEGATION
DISTRICT, THE COUNTY OF
RIVERSIDE, THE COUNTY OF
IMPERIAL AND THE TOURS. MARTINEZ
DESERT KAWEAH, A NATIVE PEOPLE
THAT HAVE INHABITED THE SALTON
SEA REGION FOR THOUSANDS OF
YEARS. WE ARE GRATEFUL FOR THE
GOVERNOR'S PROPOSED INVESTMENTS
IN THE SALTON SEA THAT WILL HELP
SCALE UP IMPLEMENTATION OF THE
SALTON SEA MANAGEMENT PLAN. BUT
ALSO ADDRESS THE IMPORTANCE OF
OPERATING AND MAINTAINING
PROJECTS AS THEY ARE COMPLETED.
UH EXPENSES ARE EXPECTED TO BE
OVER $60 MILLION HAVE COMPLETION
OF THE 10 YEAR. PLANS WILL BE
APPRECIATE THE GOVERNOR MAKING
AN INITIAL INVESTMENT IN THAT
AREA. THE GOVERNOR'S PROPOSAL
ALSO INCLUDES A $3 MILLION
CONTRIBUTION THAT WILL HELP
FINANCE THE STATE SHARE OF THE
U. S ARMY CORPS OF ENGINEERS.
SALTON SEA IMPERIAL STREAMS OF
FEASIBILITY STUDY. PROJECTS
IDENTIFIED UNDER THAT STUDY WILL
BE ELIGIBLE FOR UP TO 65%
FEDERAL FUNDING, SO THIS COULD
ULTIMATELY RESULT IN A COST
SAVINGS TO YOU ON BEHALF OF THE
CALIFORNIA LINES FOR DIGITAL
EQUITY AND EXTREME CALIFORNIA.
WE SUPPORT THE GOVERNOR'S
INVESTMENTS IN BROADBAND,
SPECIFICALLY, THE PROPOSAL TO
FULLY FUND THE MIDDLE MILE AND
PROPOSALS AROUND THE LAST MILE
GRANTS. THANK YOU. THANK YOU.
BUT AFTERNOON MEMBERS MARTHA
ZARAGOZA DÍAS, REPRESENTING THE
MEMBERS OF THE CALIFORNIA MUSIC
EDUCATORS ASSOCIATION, WHO ARE
CLASSROOM MUSIC, EDUCATORS WITH
EXTENSIVE EXPERIENCE AND A
SINGLE SUBJECT CREDENTIAL TO
PROVIDE MUSIC INSTRUCTION TO
STUDENTS, BOTH AT THE ELEMENTARY
AND SECONDARY LEVEL. CMA IS VERY
CONCERNED ABOUT A K THROUGH 12
BUDGET PROPOSAL TO CREATE A C T
E TEACHER EDUCATION
AUTHORIZATION. TO TEACH THE ARTS
AT THE ELEMENTARY LEVEL.
HISTORICALLY TEACHERS WITH CTE
CREDENTIALS HAVE TAUGHT IN GRADE
SEVEN THROUGH TO SEVENTH THROUGH
12TH GRADE, EMPHASIZING CAREER
TRAINING DOES NOT PROVIDE
REQUIREMENTS FOR PEDAGOGICAL
INSTRUCTION TO TEACH NOR TO
ASSESS ELEMENTARY AGE STUDENTS.
ALTERNATIVE PATHWAYS TO
CREDENTIAL ALREADY EXIST. MEA
BELIEVES THAT ELEMENTARY
STUDENTS DESERVE A HIGHLY
QUALIFIED EDUCATOR IN THE ARTS,
PROVIDING AGE APPROPRIATE
INSTRUCTION LOOKS FORWARD TO
WORKING WITH YOU AND OTHERS ON
THIS ISSUE. THANK YOU. BUT
AFTERNOON JULIA 40 FOOD IN FROM
THE CHILDCARE, LAWCENTER SENIOR
PROJECT MANAGER AND EVALUATOR,
OUR ORGANIZATION IS ALSO A
MEMBER OF THE COALITION STATE
BUDGET IS THE MOST IMPORTANT
LEGISLATION FOR CREATING AN
EQUITABLE SOCIETY AND A
SUSTAINABLE CALIFORNIA WHERE
BLACK AND BROWN FAMILIES HAVE
THE CHILD CARE THEY NEED AND
CHILDCARE PROVIDERS ARE FAIRLY
COMPENSATED. FOR THEIR HARD WORK
AND DEDICATION TO OUR CHILDREN.
THE CHILDCARE. LAWCENTER
STRONGLY URGES THE SENATE TO
INCLUDE FUNDING TO IMPLEMENT THE
NEW COST BASED FORMULA TO PAY
PROVIDERS BASED ON THE TRUE COST
OF ENRICHING CARE AND TO
INCREASE THE NUMBER OF NEW
AFFORDABLE CHILD CARE SPACES
ABOVE THE 446,000 SPACES. THIS
ESTATE HAS ALREADY ALLOCATED.
THIS IS ESPECIALLY SINCE NO NEW
SPACES WERE ALLOCATED LAST YEAR,
AND THOUSANDS OF ELIGIBLE
FAMILIES ARE ON THE WAITING
LIST. VOICES OF CALIFORNIA ALSO
ALIGNED WITH THEIR COMMENTS.
THANK YOU. AFTERNOON MY NAME IS
MARTIN BORK. I'M THE EXECUTIVE
DIRECTOR OF THE ECOLOGY CENTER
OVERSEA MARKET MATCH THE
STATEWIDE SAFETY NET PROGRAM
THAT MATCHES CAL FRESH SHOPPERS
DOLLARS FOR FRESH FRUITS AND
VEGETABLES AT FARMERS MARKETS IS
FUNDED BY THE CALIFORNIA
NUTRITION INCENTIVE PROGRAM. I'M
HERE ON BEHALF OF THE MILLIONS
OF CAL FRESH SHOPPERS, THOUSANDS
OF FAMILY FARMERS AND DOZENS OF
GRASSROOTS COMMUNITY
ORGANIZATIONS. INVOLVED IN
MARKET MANAGED TO SEEK YOUR
STRONG SUPPORT FOR SEEING IT.
LAST YEAR. $35 MILLION WERE
ALLOCATED TO SUPPORT THIS
PROGRAM, AND THIS YEAR THE
GOVERNOR HAS PROPOSED TO CUT
THAT FUNDING HELPS PREVENT DIET
RELATED ILLNESS THAT DIPS
PROPORTIONATELY IMPACTS LOW
INCOME CALIFORNIANS, IT DRIVES
DOWN MILLIONS IN FEDERAL
MATCHING FUNDS. IT HAS A 3 TO 1
ECONOMIC MULTIPLIER EFFECT THAT
INJECTS MONEY DIRECTLY INTO
CALIFORNIA'S RURAL COMMUNITIES.
TAKING HUNDREDS OF MILLIONS OF
FRESH FRUITS AND VEGETABLES AND
VEGETABLES AND VEGETABLES OUT OF
THE MOUTHS OF LOW INCOME
CHILDREN IS NOT ACCEPTABLE.
PLEASE REINSTATE THE $35 MILLION
APPROVED FOR SENATE LAST YEAR.
THANK YOU. MY NAME IS MINI FORM
AND ALSO WITH THE ECOLOGY
CENTER, AND I WANT A SECOND
MARTIN. BORK'S COMMENTS ALSO
WOULD NOTE THAT THE CALIFORNIA
NUTRITION INCENTIVE PROGRAM
BRINGS IN MILLIONS OF DOLLARS
FEDERAL FEDERAL DOLLARS INTO THE
STATE OF CALIFORNIA AND BETWEEN
2017 AND TODAY IT BROUGHT IN $30
MILLION. SO THIS IS UNIQUE IN
THAT IT ALSO BRINGS IN MATCHING
FUNDS. THANK YOU. GOOD AFTERNOON
, MADAM CHAIR AND VICE CHAIR AND
MEMBERS FROM FRASER,
REPRESENTING THE ARC OF
CALIFORNIA 22 CHAPTERS AND ALSO
UNITED CEREBRAL PALSY. THERE 12
CHAPTERS IN CALIFORNIA. THE ARC
HAS BEEN AN ADVOCATE FOR THE
SPECIAL NEEDS COMMUNITY FOR 74
YEARS IN CALIFORNIA. AND WE'RE
HERE TODAY TO TELL YOU AND ASK
YOU ABOUT THE DEFERRAL THAT THE
GOVERNOR HAS PROPOSED IN THE DDS
SYSTEM IS GOING TO BE
CATASTROPHIC TO THE INDUSTRY.
HISTORICALLY THROUGH THE FUNDING
OF THE AGENCIES IN THE
POPULATION, THE POPULATION HAS
ALWAYS BEEN THE FIRST TO CUT.
THE LAST TO GET REINSTALLED. SO
WHAT WE'VE HAD HERE IN 2015 WAS
THE LEGISLATURE COMMISSIONED A
GREAT STUDY TO SEE WHERE WE WERE
AND WHERE WE NEEDED TO BE THAT
TOOK OVER SIX YEARS TO GET
IMPLEMENTED, AND THEN A PROMISE
WAS MADE TO PHASE IT IN OVER A
PERIOD OF TIME. NOW THAT
PROMISES BEING BROKEN. THE
DEFERRAL IS A, UM KIND OF A
RENEGING ON A PROMISE THAT OUR
PROVIDERS WHO ARE BUSINESSES IN
CALIFORNIA, PROVIDING LIFELINE
SERVICES TO THIS COMMUNITY.
WE'LL HAVE TO CUT BACK ON THE
PROMISES THAT THEY MADE THEIR
EMPLOYEES ALSO ONE OF THE OTHER
FACETS OF THIS IS HOW WE HAVE
MOVED. THE GOALPOST ON THIS
POPULATION IS THE MINIMUM WAGE
THAT WE HAVE GIVEN TO THE FAST
FOOD WORKERS AND THE HEALTH CARE
INDUSTRY, WHICH CREATES A
COMPETITIVE, UM, UNCOMPETITIVE
FACTOR FOR US TO BE ABLE TO HAVE
OUR WORKFORCE FOR RETENTION AND
ALSO EQUITY AND PAY. AND SO
THEY'RE GOING TO MAKE AN EXODUS
TO THESE OTHER PAY CENTERS TO BE
ABLE TO WORK. I'M JUST ASKING
THAT PROMISES MADE THAT PROMISE
TO BE KEPT FOR THE INDUSTRY TO
GO FORWARD BECAUSE THE RATES
STUDY WASN'T UM THE PANACEA. IT
GOT MOVED US TO A PLACE WHERE
DIALOG COULD CONTINUE TO GO AND
MAKE SURE THAT WE CAN HAVE AN
ONGOING CONVERSATION BECAUSE IT
DID NOT INCLUDE INFLATIONARY
COSTS, GROWTH AND POPULATION.
ALL THESE FACTORS ARE ANOTHER
IMPACT TO RAISE THAT ARE BEING
PAID TO THESE PROVIDERS. I HOPE
THAT WE HAVE A CONVERSATION OF
MAKING SURE THAT THIS PROMISES
KEPT BUT ALSO AN ONGOING, UM,
CONVERSATION ON HOW WE CAN
BETTER THE QUALITY OF SERVICE
FOR THE DEVELOPMENTALLY DISABLED
IN CALIFORNIA. THANK YOU. THANK
YOU. GOOD AFTERNOON. MY NAME IS
TRACY OLSON AND THE CHIEF PUBLIC
DEFENDER OF YOLO COUNTY. I'M
HERE TODAY TO REPRESENT THE
CALIFORNIA PUBLIC DEFENDERS
ASSOCIATIONS, SOME CIVIL RIGHTS
ORGANIZATIONS AND CONSTITUENTS.
AND I'M HERE SPECIFICALLY TO ASK
YOU TO CONSIDER RESTORING YEAR
THREE. THE PUBLIC DEFENDER PILOT
PROGRAM GRANTS IT'S $40 MILLION,
AND IT'S SOMETHING THAT THE
COUNTIES HAD PLANNED ON
RECEIVING MARCH 2ND OF 2024 AND
ABOUT SIX WEEKS ONE OF THE
REASONS I THINK THAT IT MAKES
SENSE TO RESTORE IT, AND IT'S
MOST RELEVANT TO WHAT WE'RE
TALKING ABOUT TODAY IS ACTUALLY
SAVES THE STATE MONEY. OH COUNTY
JUST AS ONE EXAMPLE WE RECEIVED
IN YEARS ONE AND 2 $568,000 OUR
RETURN ON INVESTMENT TO THE
STATUS $5.5 MILLION, AND THAT'S
CALCULATED BY IT REPRESENTS
REDUCED INCARCERATION COSTS IN
ITS CALCULATED USING A MARGINAL
COST RATE WAS CALCULATED BY THE
SEA, A CEO'S OFFICE. IT'S REALLY
MONEY IN YOUR POCKET. AND IT'S
SOMETHING THAT IS REPLICABLE,
AND IT HAS BEEN REPLICATED IN
ALL THE OTHER COUNTIES. SO IF
YOU TAKE YOLO COUNTY AND THEN
YOU IMAGINE ALL THE OTHER ONES
THAT I HAVEN'T MENTIONED TO YOU
TODAY. IT'S AN INCREDIBLE RETURN
ON INVESTMENT FOR YOU. SO UM,
THAT'S ALL I HAVE TO SAY TODAY.
THANK YOU IS, YOU KNOW IS THAT
DAVIS GOOD AFTERNOON. SENATORS.
MY NAME IS BRIAN SANCHEZ, A
COMMUNITY ORGANIZER FROM THE
INLAND EMPIRE WITH THE SAFETY
NET BRA COALITION, SPEAKING IN
SUPPORT OF SB 2 TO 7 AK SAFETY
NET FOR ALL UNDOCUMENTED WORKERS
ARE CURRENTLY EXCLUDED FROM
RECEIVING UNEMPLOYMENT BENEFITS,
EVEN THOUGH THEY PAY BILLIONS
INTO LOCAL AND STATE TAXES AND
TAXES ON THEIR WAGES, PAY
MILLIONS INTO THE STATES ON
UNEMPLOYMENT INSURANCE PROGRAM.
OF WHICH THEY HAVE NO ACCESS TO
ASK YOU TO. PLEASE INCLUDE
SAFETY NET FOR ALL IN THE STATE
BUDGET AND PROTECT CALIFORNIA'S
UNDOCUMENTED WORKERS. THANK YOU.
OKAY? THAT AFTERNOON. CHAIR
SKINNER AND MEMBERS APPRECIATE
YOU ALL HANGING BACK AND HEARING
COMMENT FROM ASSAM. MY NAME'S
CHETAN STEVENS, A SENIOR STAFF
ATTORNEY WITH PUBLIC ADVOCATES.
UM AND THIS TIGHT BUDGET YEAR,
WE APPRECIATE THE GOVERNOR'S AND
THE LEGISLATURE IS ONGOING
COMMITMENT TO FUNDING AFFORDABLE
STUDENT HOUSING. FOR LOW INCOME
STUDENTS THROUGH THE HIGHER
EDUCATION STUDENT HOUSING GRANT
PROGRAM, INCLUDING FINDING A
STATE REVENUE BONDS SOLUTION TO
ENSURE HOUSING FOR LOW INCOME
COMMUNITY COLLEGE STUDENTS.
HOWEVER IN LIGHT OF RECENT
REPORTS SHOWING AN INCREASE IN
STUDENT HOMELESSNESS AND HOUSING
INSECURITY WERE CONCERNED. ABOUT
THE PROPOSAL TO PULL BACK
ADDITIONAL FUNDING FOR STUDENT
HOUSING, SO WE LOOK FORWARD TO
WORKING WITH THE LEGISLATURE TO
FIND A SOLUTION TO ENSURE THAT
HOUSING COSTS DO NOT CONTINUE TO
BE A BARRIER FOR LOW INCOME
STUDENTS ACHIEVING THEIR HIGHER
EDUCATION GOALS. THANK YOU.
THANK YOU. GOOD AFTERNOON
SHARING MEMBERS. MY NAME IS
SAVANNAH JORGENSEN AND I
REPRESENT CALIFORNIA INTERFAITH
POWER AND LIGHT. THE LUTHERAN
OFFICE OF PUBLIC POLICY
CALIFORNIA AND THE HUNDREDS OF
FAITH COMMUNITIES AROUND THE
STATE THAT WE SERVE. I'M CALLING
ON THE LEGISLATURE TO RESTORE
CALIFORNIA'S CLEAN AIR SAFETY
NET COMMUNITIES SUFFERING DAILY
FROM SOME OF THE WORST AIR
POLLUTION IN THE COUNTRY SHOULD
NOT BE ON THE BUDGETARY CHOPPING
BLOCK. WE HOPE YOU'LL DO THE
RIGHT THING AND FIGHT FOR OUR
RIGHT TO BRIEFLY AN ERROR AND
LIVE IN A SAFE CLIMATE. THANK
YOU. SUSANNA AND IF IN WITH
CHILDREN NOW AND WE URGE THE
LEGISLATURE TO REJECT ALL CUTS
TO FOSTER YOUTH AND THE
GOVERNOR'S BUDGET, INCLUDING
INCLUDING CUTS TO PREVENTION
PROGRAMS, HOUSING PROGRAMS FOR
CURRENT AND FORMER FOSTER YOUTH
AND SUPPORT PROGRAMS SUCH AS THE
FAMILY URGENT RESPONSE SYSTEM,
WHICH CAN REACH ANY YOUNG PERSON
OR FAMILY IN CALIFORNIA WITHIN
ONE HOUR TO HELP RESOLVE
DISPUTES AND FAMILY HOMES OR TO
HELP YOUNG PEOPLE SETTLE INTO
THOSE HOMES. IT'S A CRITICAL
PROGRAM, AND WE JUST URGE YOU TO
PROTECT THESE YOUTH. WE CHOSE TO
REMOVE THEM FROM THEIR HOMES.
YOU'RE NOW LEGALLY RESPONSIBLE
FOR TAKING CARE OF THEM, SO WE
ASK YOU TO PRIORITIZE THEM.
MADAM CHAIR MEMBERS OF THE
COMMITTEE, TERRY MCHALE, WITH
AARON REID AND ASSOCIATES JUST
LIKE TO THANK THE GOVERNOR AND
THE LEGISLATURE FOR ADDRESSING
THE ONEROUS WORK HOURS THAT CAL
FIRE UH, THE ONLY FIRE
DEPARTMENT THAT WORKS 72 HOURS A
WEEK, AS OPPOSED TO 56 THAT THE
OTHER FIRE DEPARTMENTS WORK IS
APPRECIATED. AND WE LOOK FORWARD
TO WORKING WITH YOU. THANK YOU.
MADAM CHAIR AND MEMBERS BRENDAN
TO ACT ON BEHALF OF THE
CALIFORNIA AIR POLLUTION CONTROL
OFFICERS ASSOCIATION,
REPRESENTING THE EXECUTIVE
OFFICERS FROM ALL 35 LOCAL AIR
DISTRICTS, GIVEN THE SIGNIFICANT
BUDGET DEFICIT THIS YEAR, WE
ASKED FOR YOUR CONTINUING
PRIORITIZATION OF FUNDING
PROGRAMS THAT COST EFFECTIVELY
ADDRESS OUR AIR QUALITY, PUBLIC
HEALTH AND CLIMATE CHALLENGES TO
AIR DISTRICT ADMINISTERED
PROGRAMS. THE A B 617 COMMUNITY
AIR PROTECTION PROGRAM AND THE
FARMER PROGRAM ARE HIGHLY COST
EFFECTIVE AT REDUCING BOTH CRY.
SYRIA HEALTH POLLUTANTS AND
GREENHOUSE GASSES. AND WE
APPRECIATE, UH, PAST AND
PROPOSED FUNDING AND
PRIORITIZING THESE INVESTMENTS
IN THESE PROGRAMS WILL MAKE
SCARCE RESOURCES GO FURTHER.
COMMUNITY AIR PROTECTION
PROGRAMS PROPOSED TO BE REDUCED
FROM 300 TO 250 MILLION. WE ASK
THAT YOU RESTORE THAT TO 300
MILLION PROGRAMS ALREADY
UNDERFUNDED, AND THE FARMER
PROGRAM WAS CUT TWO BY 50% TO 75
MILLION. LAST YEAR, AND WE ASKED
THE RESTORED TO THE PREVIOUS
YEAR'S LEVEL OF 150 WILL BE
PROVIDING MORE SUBSTITUTE
COMMENTS IN SUBCOMMITTEE. THANK
YOU VERY MUCH. HEY I'M RAYMOND
MEIER. I WORK AS A COOK AT MERCY
, MCMAHON TERESA LOCAL RESIDENT
CARE FACILITY. I WANT TO THANK
ALL OUR LEGISLATORS AND THE
GOVERNOR FOR PASSING SB 5 TO 5
THAT RAISES THE MINIMUM WAGE FOR
ALL HEALTHCARE WORKERS. UM YOU
GUYS HEARD US AND TOLD AND WHEN
WE TOLD YOU GUYS THAT WE HAVE
SHORT STAFFING, IT'S A CRITICAL
THING THAT WE'RE DOING HERE
AFTER YOU KNOW, AFTER THE
PANDEMIC AND EVERYTHING WE'RE
STILL HERE. AND WE'RE STILL
TRYING TO GET BETTER AND HAVE
MORE STAFFING. MY JOB. AH! MY
HEALTHCARE JOB IS NOT MY ONLY
JOB I WORK. LEFT ON THE SIDE TO
BE ABLE TO AFFORD. MY BELT'S FOR
MY FAMILY. SO I AM NOT THE ONLY
ONE HEALTHCARE WORKER IS DOING
THIS. I KNOW MANY PEOPLE IN OUR
ESPECIALLY IN MY FACILITY ARE UM
THE HIGHER PAY MEANS THAT I
COULD, YOU KNOW, DO LESS OF THE
EXTRA WORK AND FOCUS ON MY
FAMILY. GET REST FOR MYSELF AND
BE BETTER AT MY JOB AT WORK. WE
END UP BEING THEIR FAMILY THERE.
THEY'RE EVERYTHING. DURING
DURING THEIR LAST MOMENTS OF HER
LIFE, AS WELL AS ALL HEALTHCARE
WORKERS. WE HAVE THOSE
ADDITIONAL RESPONSIBILITIES AND
I JUST WANT TO ACKNOWLEDGE AND
THANK YOU GUYS FOR CONTINUING TO
DO THAT TO HEAR US AND REPRESENT
US. THANK YOU. GOOD AFTERNOON.
MY NAME IS STACY M. EKG TECH
WITH DIGNITY. HEALTH I'M ALSO
WANTED TO EXPRESS MY
APPRECIATION TO THE LEGISLATORS
IN THE GOVERNOR FOR PASSING SP 5
TO 5 LAST YEAR. ALSO IN
RECOGNITION TO THE SHORT
STAFFING CRISIS, WHERE THE
HOSPITAL AND CLINICS THAT EFFECT
THE PATIENT CARE AND WORKERS AND
THEN YOU GUYS TOOK ACTION TO
HELP RESOLVE THE PROBLEM FOR US
IN MY CLINIC. WE ARE STILL
HAVING ISSUES WITH SHORT
STAFFING, EMPLOYMENT, RETENTION
AND EVERYTHING, AND A LOT OF
THAT HAS TO DO WITH THE WAGES.
SO UM, WITH THAT IDEA, I WANT TO
SAY THANK YOU FOR THAT. AND I
HOPE THAT THE GOVERNOR DOES PAST
THIS AND THAT YOU GUYS DO PUT
THIS INTO THE BUDGET AND THE
REASON THAT WE DON'T HAVE ENOUGH
STAFFING IS THE LOW PAY AND
THERE AS MICHAEL WERNER SAID, A
LOT OF US WORK SECOND JOBS TO
SUPPLEMENT OUR INCOME TO BE ABLE
TO MAKE ENDS MEET WITH THE
HEALTHCARE MINIMUM WAGE LAW.
THAT SIMPLE MEASURES, SAYING
THAT WE REALLY DO MATTER, EVEN
AFTER THE PANDEMIC, AND
COMPANIES LIKE KAISER STANFORD
HEALTHCARE AND FRANCIS HAVE
ALREADY SET THE MINIMUM WAGE
CARE FOR THE EMPLOYEES. SO WHEN
IT GOES INTO LAW TO AFFECT OVER
THE SUMMER, IT WILL MAKE A BIG
DIFFERENCE FOR HEALTHCARE
WORKERS, IMPROVING THEIR
STAFFING AND FACILITIES IN THE
LIVES OF THOSE WHO MATTER ON THE
FRONT LINE. THANK YOU. WHEN I
STARTED MY NUMBER ONE CASTRO
BENGAL AMERICALIFORNIA FIELD
TANGO NEWS, CLARO, OKAY,
INCLUDING INCLUSION AND LAY IS
GOING TO SEE IT. GRACIAS. AND
I'M GOING TO TRANSLATING THAT.
UM HI. GOOD AFTERNOON. I AM A
FARM WORKER, AND I'VE BEEN
WORKING HERE FOR OVER 31 YEARS
AND CONTRIBUTING TO TAXES
SUPPORT SP 2 TO 7 SAFETY NET FOR
ALL AND I ASKED ÁP ADDED TO THE
BUDGET PROPOSAL. THANK YOU. DID
THAT. VICTORIA PORCELAIN LEADERS
CAMPUS IN BENGAL ESTÁ MEMENTO.
COMPANIAS COMPANEROS BEING
KILLED, SENOR GOBERNADOR. ALMOST
MUST HAVE ALMOST CALLED ME LAST
PERSONA PUESTO. NO TAX SYSTEM
BEING IN SANTO MODERN CLINTON
ALSO DROPPED. STATES CANNOT
SUPPORT BUT I CAN ALSO WENT
ALMOST ALMOST ANYTHING ELSE.
I'LL DO MY BEST TO TRANSLATE
QUICKLY. SO HER NAME IS
VICTORIA. SHE'S A FARM WORKER.
SHE'S ALSO AN UNDOCUMENTED
PERSON, AND SHE WAS BRINGING UP
THE POINTS THAT AS ESSENTIAL
WORKERS THAT THEY WERE DURING
COVID AND OTHER TIMES LIKE THEY
MOVE THE FOOD FROM THE FARMS AND
FROM THE LAND ONTO PEOPLE'S
PLATES AND ONTO THEIR TABLES.
SHE FEELS THAT IT'S UNFAIR THAT
THEY'VE BEEN EXCLUDED FROM AND
IF IT'S AND RESOURCES AND HELP,
AND SO THIS BILL, SAFETY NET FOR
ALL IS FOR UNEMPLOYMENT BENEFITS
, SHE SAYS, THAT SHE, UM I
REALLY WANT YOU GUYS TO SUPPORT.
THANK YOU. UM IF I COULD ASK,
SINCE THESE ARE ME TO IN EFFECT
AH, THAT WE POLICE HAVE FOLKS
JUST SAY THEY ARE ALSO IN
SUPPORT OF THAT VERSUS THE. ALL
THE WINNERS STARTED SENORES.
THEY WILL SEND YOU SEE IS TO BE
THOSE PAINTINGS, DEITY. PORKY IN
REAL NUMBERS. WITH THE OFFICIAL
PARAMILITARY DÍAS TRABAJO WILL
BE IN THOSE HIS DOES HE YES,
FAMILIARS. GRACIAS. TO SUMMARIZE
I SUPPORT SB 2 TO 7 SAFETY NET
FOR ALL. HE'S A CONSTRUCTION
WORKER, AND THIS BILL WOULD HELP
AND SUPPORT MANY UNDOCUMENTED
PEOPLE. GOOD AFTERNOON CHAIR.
SKINNER AND MEMBERS PROVIDE
BETTER CHARGING HERE WITH THE
CALIFORNIA ALLIANCE OF CHILD AND
FAMILY SERVICES, REPRESENTING
167 DIFFERENT COMMUNITY BASED
ORGANIZATIONS THAT SERVE PUBLIC
BEHAVIOR, HEALTH AND CHILD
WELFARE POPULATIONS. I JUST
WANTED TO SHARE THAT WE ARE ALSO
DEEPLY CONCERNED WITH THE
PROPOSED CUTS TO FOSTER KIDS,
INCLUDING THE FAMILY URGENT
RESPONSE SYSTEM, AS WELL AS THE
SUPERVISED INDEPENDENT LIVING
PROGRAM HOUSING SUPPLEMENT. WE
ALSO LOOK FORWARD TO LEARNING
MORE AND ENGAGING ON THE MUCH
NEEDED FOSTER CARE RATE REFORM
PROPOSAL TO ENSURE THAT YOUTH
CAREGIVERS FOSTER FAMILY
AGENCIES. SHORT TERM RESIDENTIAL
THERAPEUTIC PROGRAMS ARE
SUSTAINABLY FUNDED. WE ARE ALSO
CONCERNED BY THE DELAYS IN
BEHAVIORAL HEALTH, WORKFORCE AND
INFRASTRUCTURE FUNDING, GIVEN
THE CURRENT YOUTH BEHAVIORAL
HEALTH CRISIS. THANK YOU. SEND
OUR IS WHEN I STARTED THIS
BRUSSELS MINGLED IN ONTARIO,
CALIFORNIA THAT GRACIAS. HIS
NAME IS GUILLERMO. HE'S FROM
ONTARIO, CALIFORNIA AND HE
SUPPORTS SB 2 TO 7 SAFETY NET
FOR ALL. I'M GONNA START.
YESTERDAY CAME UP. THIS IS LUCIA
AGUILAR FROM SAN BERNARDINO. UM
AND SHE SUPPORTS SB T TO SEVEN.
SAFETY NET FOR ALL. DANICA ROAD
ARM ON BEHALF OF DEBT FREE
JUSTICE CALIFORNIA WANT TO THINK
THAT SENATE FOR ALL OF YOUR HARD
WORK TO SUPPORT CALIFORNIA'S
MOST VULNERABLE FOLKS, INCLUDING
MANY HERE TODAY PROBABLY
COULDN'T AFFORD TO TAKE THE DAY
OFF TO BE HERE. I WANT TO
PARTICULARLY THANK SENATOR
SKINNER FOR ALL OF YOUR HARD
WORK TO ELIMINATE CRIMINAL FINES
AND FEES AND UPLIFT A COMMENT
MADE BY THE SENATOR IN A LETTER
DEPARTMENT OF FINANCE LAST YEAR
ABOUT THE CONTINUAL ANNUAL
ADJUSTMENTS THAT ARE NEEDED TO
THE BUDGET FOR OUR RELIANCE ON
CRIMINAL FINES AND FEES, WHICH
CONTINUE TO BE UNCOLLECTIBLE. SO
INSTEAD OF THAT, WE CAN JUST
ELIMINATE THEM. PUT GENERAL FUND
DOLLARS. THAT ALREADY END UP
THERE THERE IN THE BEGINNING AND
NOT CONTINUE TO WASTE MONEY ON
TRYING TO COLLECT UNCOLLECTIBLE
DEBT ALSO WANT TO HIGHLIGHT THAT
THIS YEAR WE REQUESTING THE
ELIMINATION OF TWO FEES RELATED
TO DRUG DIVERSION AND DRUG
TREATMENT TO HELP ADDRESS THE
STATE'S FENTANYL CRISIS. THANKS.
WHEN I STARTED SENIORITIS
MINGLED IN SAN FRANCISCO IN
NUMBERS WITH MELMASON WORKERS
UNITED EVEN LUCKY IN COLORADO,
WHICH IS JUST THANK YOU, SIR. HI
MY NAME IS BETTY AND FROM SAN
FRANCISCO, CALIFORNIA I'M HERE
TO SUPPORT SAFETY NET FOR OUR SB
2 TO 7 AND SHE'S FILLIED WITH
TWO. I DO JUST WANT TO CLARIFY
THAT BILL DOES NOT BEFORE US. SO
I THINK WHAT YOU'RE THE REAL ASK
IS THAT THERE BE AN
APPROPRIATION FOR IT. BUT THAT
BILL IS NOT BEFORE US AND IT IS
NOT A BUDGET BILL. SO AH! I JUST
WANT TO MAKE THAT CLARIFICATION.
GOOD AFTERNOON, MADAM CHAIR AND
MEMBERS ROSS BUCKLEY ON BEHALF
OF THE SOUTH COAST AIR QUALITY
MANAGEMENT DISTRICT. WE GREATLY
APPRECIATE THE A B 617 FUNDING
THAT IS PROVIDED IN THE
GOVERNOR'S BUDGET FOR AIRDRIE
SIX FOR IMPLEMENTATION INCENTIVE
DOLLARS. UH WE REQUEST THE
CONTINUED PRIORITIZATION OF THIS
PROGRAM AND FUNDS AS EARLY AS
PROVES THAT CONFIRMED THAT THIS
IS A HIGHLY COST EFFECTIVE USE
FOR ADDRESSING AIR QUALITY
PUBLIC HEALTH AND CLIMATE
CHALLENGES. MAYBE 617 PROGRAMS
SEVERELY UNDERFUNDED AS
COMMUNITY HAVE CONTINUED TO GROW
. WE DON'T WE LACK THE NECESSARY
RESOURCES TO EVEN SUPPORT THOSE
EXISTING COMMUNITIES IN THE
SOUTH COAST REGION ALONE. WE
HAVE ABOUT TWO THIRDS OF THE
COMMUNITIES AND WE CAN'T INCLUDE
ADDITIONAL COMMUNITIES DUE TO
LACK OF RESOURCES TO HELP
ADDRESS THIS VERY STRICTLY ASKED
THE ABBEY SEQUENCES FUNDING BE
RESTORED TO LAST YEAR'S LEVELS.
THIS WILL HELP THE ACTUAL
PROGRAM COSTS AND TO COST
EFFECTIVELY REDUCED EMISSIONS
THAT HELP MEET FEDERAL AIR
QUALITY STANDARDS AND PROTECT
HEALTH OF DISADVANTAGED
COMMUNITIES. THANKS. BYE BYE
BYE. I'M GONNA START WITH
CAROLINA MARTINEZ, CAMPO
GOVERNADOR. HI MY NAME IS
ANGELINA. I AM A FARM WORKER I
AM FROM FROM MADERA, CALIFORNIA
AND, UH, PLEASE SUPPORT SAFETY
NET FOR ALL. THANK YOU. WHEN I
STARTED MY NUMBERS, MOTHER.
APPLYING THE STUDY'S GOVERNADOR
SIMPLE, HEALTHY. NO. SOMEONE
MUST HAVE GRACIAS. I AM FROM
MADERA, CALIFORNIA AND I SUPPORT
SAFETY NET FOR ALL AND HE HAS
BEEN WORKING HERE FOR OVER 20
YEARS. BECKY SILVA WITH THE
CALIFORNIA ASSOCIATION OF FOOD,
BANKS AND FOOD INSECURITY IS
STILL AT RECORD LEVELS. QUARTER
OF ALL CALIFORNIA HOUSEHOLDS ARE
IMPACTED TODAY. THANK YOU FOR
YOUR TREMENDOUS LEADERSHIP,
SENATOR SKINNER AND SENATOR
MENJIVAR IN SECURING HISTORIC
AND NATION LEADING INVESTMENTS
IN SCHOOL MEALS IN CAL THRASH
AND WE LOOK FORWARD TO
SUPPORTING CONTINUED WORK IN
THESE AREAS IN THE BUDGET. WE DO
HAVE CONCERNS ABOUT THE PROPOSED
COMPLETE WITHDRAWAL OF THE
SAFETY NET RESERVE AND ALL
PROPOSED CUTS TO THE COW WORKS
AND THE FAMILY STABILIZATION
PROGRAM. THANK YOU FOR ALL YOUR
WORK TO PRIORITIZE LOW INCOME
CALIFORNIANS IN THE BUDGET
DISCUSSIONS AHEAD. THANK YOU.
GOOD AFTERNOON, REBECA GONZALEZ
WITH WESTERN CENTER ON LAW AND
POVERTY. WE APPRECIATE THAT THE
GOVERNOR'S BUDGET ON PAST
COMMITMENTS, INCLUDING EXPANSION
OF MEDICAL TO ALL INCOME
ELIGIBLE ADULTS, REGARDLESS OF
IMMIGRATION STATUS, AND THAT
THERE ARE NO COW WORKS IN SSC
GRANT CUTS. HOWEVER WE ARE
CONCERNED THAT WHENEVER THERE
ARE BUDGET DEFICITS, THE STATE
LOOKS TO BALANCE THE BUDGET BY
TARGETING PROGRAMS THAT SERVE
THE LOWEST INCOME CALIFORNIANS
RATHER THAN LOOKING AT REVENUE
SOLUTIONS. WE HAVE ALSO OPPOSED
EMPTYING THE SAFETY NET RESERVE,
COUPLED WITH PERMANENT CUTS TO
COW WORKS, THIS ACTS AS A DOUBLE
CUT THE DESTABILIZES OUR MOST
VULNERABLE FAMILIES. WE SUPPORT
THE STATE APPLYING FOR THE
FEDERAL 10 IF PILOT AND URGED
THE LEGISLATURE TO ENSURE THE
PILOTS ARE SUCCESSFUL. BY
INCLUDING KEY REIMAGINED REFORMS
TO CENTER FAMILIES. WE ALSO
OPPOSE CUTS TO LEGAL SERVICES
FOR IMMIGRANTS, FOSTER YOUTH AND
HOUSING. FINALLY WE URGE
IMPLEMENTATION OF SHERIFF COSTS,
REFORM AND MEDICAL CONTINUOUS
ELIGIBILITY FOR CHILDREN. LOW
INCOME FAMILIES ARE LEAST LIKELY
TO WEATHER, ECONOMIC DOWNTURNS
AND, MOST OFTEN THE SLOWEST TO
RECOVER. PROTECTING AND
STRENGTHENING OUR SAFETY NET IS
CRITICAL. THANK YOU. HI GOOD
AFTERNOON, CAROL GONZALEZ ON
BEHALF OF LONG BEACH COMMUNITY
COLLEGE DISTRICT AND THE SPANISH
ORGANIZED FOR POLITICAL EQUALITY
AND PART OF THE TELEGRAM REFORM
COALITION HERE TO SHARE THAT WE
STRONGLY SUPPORT THE CAL GRANT
REFORM ACT AND ITS
TRANSFORMATIVE IMPACT ON LOW
INCOME AND BY PARKS STUDENTS TO
MAKE COLLEGE A REALITY. WE
REALLY URGE YOU ON THE LARGEST
OF THE LEGISLATURE TO PRIORITIZE
THE IMPLEMENTATION OF THE CAL
GRANT REFORM. THIS YEAR IN ORDER
TO SIMPLIFY THE PROGRAM AND
SUPPORT OUR STUDENTS. WE KNOW
IT'S A TOUGH CHALLENGE, BUT WE
REALLY ENCOURAGE YOU TO PUSH FOR
IT. THANK YOU. MHM CHAIR MEMBERS
NICK ROMANO WITH THE SOUTHERN
CALIFORNIA ASSOCIATION OF
GOVERNMENTS. WE URGE YOU TO
REJECT THE CUTS TO THE REAPER
PROGRAMS. $300 MILLION FOR OVER
100 REAL, VERY REAL PROJECTS IN
OUR DISTRICTS ACROSS OUR STREET.
OUR STATE LOOK FORWARD TO
WORKING WITH YOU. AND I CALLED
THE NUMBER HALF OF CAL START A
GLOBAL NONPROFIT DEDICATED TO
ACCELERATING CLEAN
TRANSPORTATION. WE CAN CONTINUE
TO APPRECIATE THE GOVERNOR'S
COMMITMENT TO CALIFORNIA'S OF
GOALS AND IN PARTICULAR, WE'RE
GRATEFUL TO SEE THAT FUNDING
PRESERVE MISSION SCHOOL BUS
BUSSES ARE PRESERVED. THAT BEING
SAID, GOING FORWARD. WE LOOK
FORWARD TO WORKING WITH THE
LEGISLATURE AND THE
ADMINISTRATION TO ENSURE THAT
THE PROPOSED DELAYS DON'T
IMPACT. ADOPTION INFRASTRUCTURE
DEVELOPMENT AND OPPORTUNITIES
FOR CLEAN MOBILITY OPTIONS FOR
COMMUNITIES THAT NEED IT THE
MOST. THANKS THANK YOU. CHAIR
REMEMBERS. MY NAME IS KYLE
COOPER ON BEHALF OF THE E V
CHARGING ASSOCIATION, ALSO KNOWN
AS APPRECIATES THE GOVERNOR'S
LEADERSHIP TO MAINTAIN HIS $10
BILLION OF PACKAGE COMMITMENTS.
THE ASSOCIATION LOOKS FORWARD TO
WORKING WITH THE LEGISLATURE AND
THE ADMINISTRATION TO ENSURE
THAT CRITICAL INFRASTRUCTURE
DEVELOPMENT PROGRAMS CAN
CONTINUE TO BE SUCCESSFUL.
DESPITE THE CHALLENGES POSED BY
THE BUDGET DEFICIT. THANK YOU.
HIÆN CORK WITH CHILDREN'S LAW
CENTER OF CALIFORNIA. WE
REPRESENT THE YOUTH IN FOSTER
CARE IN LOS ANGELES, SACRAMENTO
AND PLASTER COUNTY WHEN THESE
CHILDREN WERE REMOVED FROM THEIR
FAMILIES, CALIFORNIA PROMISED TO
KEEP THEM SAFE AND TAKE CARE OF
THEM WERE ASKING CALIFORNIA TO
FULFILL THAT PROMISE BY
MAINTAINING THE BUDGET FOR THE
SUB SUPPLEMENTS, SO THEY HAVE
PLACEMENTS, THEIR HOUSING
MAINTENANCE, NAVIGATION
MAINTENANCE PROGRAMS SO THEY
DON'T EXIT FOSTER CARE TO
HOMELESSNESS AND THE FURS SO
THAT THOSE WHO ARE TRAINED TO
DEAL WITH FOSTER CARE
SPECIFICALLY HELPED THEM WHEN
THEY ARE EXPERIENCING CRISIS.
THANK YOU. GOOD AFTERNOON.
EILEEN CUBAN SKI WITH THE COUNTY
WELFARE DIRECTORS ASSOCIATION.
WE APPRECIATE THAT YOU'VE GOT
SOME DIFFICULT CHOICES BEFORE
YOU AND HEALTH AND HUMAN
SERVICES PROGRAMS WERE LARGELY
UNTOUCHED IN THE BUDGET, BUT WE
WERE REALLY DISAPPOINTED TO SEE
SOME SIGNIFICANT CUTS TO COW
WORKS AND CHILD WELFARE SYSTEM.
SPECIFICALLY WE OPPOSE THE $300
MILLION IN ONGOING PROGRAM
ELIMINATIONS IN THE CALVERT'S
PROGRAM, AS WELL AS THE
ELIMINATION OF THE FAMILY URGENT
RESPONSE SYSTEM. THE SUPPLEMENTS
AT THE HOUSING SUPPLEMENT FOR
OLDER FOSTER YOUTH AND
TRANSITIONAL HOUSING SUPPORTS
FOR THOSE YOUTH AS WELL. WE
REALLY URGE YOU TO OBJECT TO
THOSE CUTS AND THANK YOU,
SENATOR MENJIVAR FOR RAISING
THOSE ISSUES IN THIS HEARING.
HELLO ALEXA. I'M LINDA'S MARTIN,
NOW WITH PAUL IN AMERICA, A
NONPROFIT ORGANIZATION WITH THE
MISSION TO ACCELERATE THE
TRANSITION TO ELECTRIC VEHICLES.
WE URGED THE LEGISLATURE TO
RESTORE AND PROTECT CALIFORNIA'S
CLEAN AIR SAFETY NET RIGHT NOW.
TAILPIPE POLLUTION IS THE
LARGEST CONTRIBUTOR TO THE
STATES, AIR POLLUTION PROBLEM
AND PUSHING FUNDING PROMISES FOR
POLLUTION. VEHICLES POLLUTION
FREE VEHICLES. EXCUSE ME AND
INFRASTRUCTURE. YEARS DOWN THE
ROAD DOESN'T BENEFIT THE
COMMUNITIES THAT NEED CLEANER
AIR NOW. AS A REPRESENTATIVE FOR
EVERY DRIVERS ACROSS THE SEA IN
THE V DRIVER MYSELF. I'VE
EXPERIENCED FIRSTHAND HOW EVIE S
CAN NOT ONLY TRANSFORMED THE
EXPERIENCE BUT ALSO THE ENTIRE
VEHICLE EXPERIENCE THROUGH IT
REDUCED FUEL AND MAINTENANCE
COSTS. CLEANER AIR AND FREEDOM
FROM VOLATILE GAS PRICES. WE
UNDERSTAND THAT YOU HAVE TOUGH
DECISIONS HAD AND WE URGE YOU TO
DO THE RIGHT THING FOR
CALIFORNIA'S COMMUNITIES AND
RESTORE THIS CRITICAL CLEAN
TRANSPORTATION FUNDING. THANK
YOU VERY MUCH. GOOD AFTERNOON,
MADAM CHAIR AND VICE CHAIR OF MY
NAME IS TONY ANDERSON AND I'M
WITH THE ASSOCIATION, THE
REGIONAL CENTER AGENCIES AND WE
STAND FIRM AND STRONG AGAINST
THE. THE DELAY IN THE RATE STUDY
IN THE IN THE RATES FOR OUR
COMMUNITY PROVIDERS THAT SUPPORT
PEOPLE WITH DEVELOPMENTAL
DISABILITIES. THIS DELAY IS
ACTUALLY RESULTS IN A CUT OF
OVER A BILLION DOLLARS TO OUR
COMMUNITY PROVIDERS AND THAT
THOSE FUNDS, OF COURSE GO
TOWARDS FUNDING. THE COSTS ARE
SUPPORTING THE DIRECT SUPPORT
PROFESSIONALS WHO ARE DIRECTLY
CONNECTED TO PEOPLE WITH
DISABILITIES AND ASSURE THAT
THEIR LIVES ARE INTEGRATED AND
ARE PERSON CENTERED. AND RUN BY
THEM. AND SO THIS WILL THIS WILL
PUSH PUSH US BACK, THE OTHER.
THE THING I WOULDN'T WANT TO
MENTION QUICKLY IS THAT THE
MASTER PLAN FOR DEVELOPMENTAL
DISABILITIES IS QUITE EXCITING.
WE'RE LOOKING FORWARD TO THAT
PROCESS, BUT WAS SOMETHING THAT
LARGE? WE WANT TO MAKE SURE THAT
THERE IS A FIRM COMMITMENT FROM
THE STATE. TO SUPPORT THE
CALIFORNIA ATLANTA MANAK AND THE
ENTITLEMENT TO SERVICES AND
SUPPORTS FOR PEOPLE WITH
DISABILITIES AND THEIR FAMILIES.
THAT'S A PROMISE THAT WAS MADE
AND WE WANT TO MAKE SURE THAT
THAT WE SET THIS IN MOTION WITH
THAT COMMITMENT. THANK YOU. GOOD
AFTERNOON. MY NAME IS MERCEDES
PARKER. AND WITH CALIFORNIA
YOUTH CONNECTION. WE'VE BEEN
UPLIFTING THE VOICES AND YOUNG
PEOPLE WHO HAVE BEEN IN FOSTER
CARE FOR OVER 35 YEARS NOW I'M
GOING TO ECHO THE SENTIMENT
SHARED BY OTHER FOSTERING
ADVOCATES IN THIS ROOM AND URGE
YOU ALL TO REJECT ANY CUTS TO
SOAP HOUSING, NAVIGATION AND
MAINTENANCE PROGRAM AS WELL AS
FAMILY URGENT RESPONSE SYSTEM.
THESE ARE CRITICAL LIFELINES FOR
YOUTH AND PREVENT YOU FROM
EXPERIENCING HOMELESSNESS AS
THEY'RE EXITING FOSTER CARE. AND
I ALSO WANT TO THANK SENATOR
MITCH OF ART FOR THE OPTIONS
THAT YOU HAVE LIFTED TODAY.
THANK YOU. SOFIA AFRICA WITH THE
COALITION FOR CLEAN AIR WOULD
LIKE TO REQUEST THE LEGISLATURE
TO RECONSIDER CUTS TO THE
TRANSPORTATION AND ZERO MISSION
BUDGETS AS THE THOSE PROGRAMS
ARE IMPORTANT TO ADDRESSING BOTH
CLIMATE CHANGE AND AIR POLLUTION
, CLIMATE TRENDS. CLEAN
TRANSPORTATION PROGRAMS ARE NOT
JUST THE MUST HAVE NICE TO HAVE
RATHER THEIR VITAL PART OF THE
AIR SAFETY NET IN THE SMOGGY
STATE OF THE COUNTRY. IT IS
ESTIMATED THAT ABOUT 7500
CALIFORNIANS STAGE HERE FROM
PREMATURE DEATH DUE TO AIR
POLLUTION, AND EVEN THOUGH IT'S
FRAMED AS A DELAY IN FUNDING THE
PROPOSED BUDGET ESSENTIALLY ZERO
FUNDS THAT CLEAN VEHICLE
PROGRAMS, THERE IS NO GUARANTEE
THAT THE FUTURE GOVERNOR WILL
UPHOLD THE PROMISE FOR STORED OF
FUNDING. WHICH IS WHY WE ASK
THAT THESE PROGRAMS ARE BE
BACKFILLED BY OTHER FUNDING
SOURCES SUCH AS THE STATE
HIGHWAY TRANSPORTATION S¼
HIGHWAY CAMP. THANK YOU FOR YOUR
CONSIDERATION. YEAH. GOOD
AFTERNOON, ABIGAIL ALVAREZ WITH
THE CALIFORNIA ASSOCIATION FOR
ADULT DAY SERVICES. WE URGE YOUR
SUPPORT OF OUR REQUEST TO
INCREASE THE SEA BASS MEDICAL
REIMBURSEMENT RATE IN PLACE A
TWO YEAR MORATORIUM ON LICENSING
FEES. THANK YOU. GOOD AFTERNOON,
MADAM CHAIR AND MEMBERS. MY NAME
IS ESTELLA GONZALEZ PATTERN AND
THE ASSOCIATE DIRECTOR OF STATE
EXTERNAL AFFAIRS FOR THE NATURE
CONSERVANCY. DESPITE RECORD
BREAKING STATE BUDGETS,
CALIFORNIA'S INVESTMENT IN
NATURAL RESOURCES AND NATURE
BASED CLIMATE SOLUTIONS HAS NOT
MATCHED THE PACE AND SCALE OF
THE NEED HISTORICALLY LESS THAN
5% OF THE STATE BUDGET HAS BEEN
DEDICATED TO NATURAL RESOURCES.
THE GOVERNOR'S 2024 25 BUDGET
PROPOSAL WOULD REDUCE STATE
SPENDING FOR NATURAL RESOURCES
TO LESS THAN 3% 3% OF THE STATE
BUDGET DUE TO THE PROPOSED CUTS.
TO THIS AREA. WE PARTICULARLY
ADVOCATE FOR RESTORING FUNDING
TO THE COASTAL PROTECTION
PACKAGE. AS REFERENCED BY
SENATOR BECKER. WE HAVE REAL
CONCERNS ABOUT THE PROPOSED CUTS
AND SLASHING OF FUNDING TO THE
STATE HOSTILE CONSERVANCY AND
THE OCEAN PROTECTION COUNCIL TO
ADDRESS SEA LEVEL RISE AND
INCREASED CLOSE PROTECTION AND
OCEAN RESILIENCE AS CALIFORNIA
FACES A SIZABLE BUDGET DEFICIT.
WE URGE THE LEGISLATURE TO
PROVIDE STRONG LEADERSHIP TO
ADVANCE A ROBUST CLIMATE BOND
THAT WILL PROVIDE MUCH NEEDED
FUNDING FOR NATURE BASED CLIMATE
SOLUTIONS. THANK YOU. HI
KIMBERLY SANCHEZ WITH ELECTION
CALIFORNIA HERE TO COMMENT ON A
COUPLE OF ITEMS FIRST WE ARE DUE
TO FUND THE IMPLEMENTATION OF SB
253 AND SP 261 TO BRING THE
RESOURCES OF THE PRIVATE SECTOR
TO BEAR ON CLIMATE EFFORTS AT
NEAR NEGLIGIBLE COST TO
TAXPAYERS. WE ALSO URGE YOU TO
REJECT THE PROPOSED CUT TO THE
ACTIVE TRANSPORTATION PROGRAM,
WHICH CAN BE FUNDED OUT OF WELL
FUNDED, FLEXIBLE TRANSPORTATION
FUNDING SOURCES. ADDITIONALLY WE
ASKED TO RETAIN THE FUNDING TO
THE PUBLIC DEFENSE PILOT
PROGRAM, WHICH IS THE ONLY
STATEWIDE FUNDING SOURCES
SPECIFICALLY FOR INDIGENT
DEFENSE. FINALLY AS PART OF THE
CALGARY REFORM COALITION, WE ARE
IN STRONG SUPPORT OF CALGARY
REFORM AND LOOK FORWARD TO
WORKING WITH THE LEGISLATURE AND
THE ADMINISTRATION ON THIS
CRITICAL EDUCATION, EQUITY WORK
AS WELL AS WORKING ON THE CAREER
EDUCATION MASTER PLAN. THANK
YOU. WE WOULD HAVE STARTED THIS
NUMBER. SANTOS PANTY BENGAL, THE
SAN FRANCISCO CALIFORNIA
HISTORIA CASE, BUT DISAGREED
THAT CARES MORE IMPORTANT
ENTREPRENEURS OTRAS SCOTCH IN
MARYLAND. THIS IS ROCKET AND
MORTAR IMMIGRANTS IMPORTANT CASE
. GOOD AFTERNOON. MY NAME IS
SANTOS. I'M FROM SAN FRANCISCO.
UM AND I AM HERE TO REQUEST THAT
FUNDS BE ALLOCATED TO FINANCE
SAFETY NET FOR ALL. HI I'M SAM
WILKINSON WITH THE CALI EITC
COALITION IN GRACE AND IN CHILD
POVERTY IN CALIFORNIA. WE'RE IN
STRONG SUPPORT OF THE SAFETY NET
FOR ALL BUDGET FUNDING. WE'D
LIKE TO ECHO THE WESTERN
CENTERS. COMMENTS ON COW WORKS.
UM WE'RE ALSO VERY SUPPORTIVE OF
THE GOVERNOR'S PROPOSAL TO
MAINTAIN INVESTMENTS IN OUR
STATE'S LOW INCOME, REFUNDABLE
TAX CREDITS, AND WE URGE YOUR
SUPPORT OF MAINTAINING 20
MILLION AND FREE TAX PREPARATION
ASSISTANCE, EDUCATION AND
OUTREACH FUNDING. THANK YOU SO
MUCH. GOOD AFTERNOON CHAIR AND
MEMBERS IN ESCROW. SALAS ON
BEHALF OF THE K 12 EDUCATION
EQUITY TEAM AT PUBLIC ADVOCATES.
WE'RE THANKFUL FOR THE
GOVERNOR'S COMMITMENT TO
MAINTAIN THE RECENT
TRANSFORMATIVE INVESTMENTS IN
EDUCATION, INCLUDING COMMUNITY
SCHOOLS, UNIVERSAL TK AND THE
EQUITY MULTIPLIER, AMONG OTHERS,
AND PLEASED ABOUT EFFORTS IN THE
BUDGET TO STREAMLINE THE
EDUCATOR PREPARATION PROCESS BY
ELIMINATING THE BASIC SKILLS
REQUIREMENT. THANK YOU. BUENOS
TARDES HAS LURED PEOPLE IN SAN
FRANCISCO PORTRAYING THANOS
INDOCUMENTADOS. ESTÁ, UM
TRABAJADORES. SO MARILYN EAH.
YEMEN AIRWAYS BETTER ALLOW OR
OTHER RECIPIENT MR OF THE
RITUALS EXCLUSION. ESTÁ, JACKIE,
BUT I GUESS YOU SAID MONO, SO
YOU KNOW PERSONA KATRINA
DERECHOS. PHOTOS THAT I TOOK A
GENERAL THIS QUENTIN. THEN MR
CHECK IS EASTERNMOST. RAMOS.
CONSENSUS GRACIAS. JUST ABOUT
HER QUICKLY. SHE'S IN HOME CARE
WORKER. SHE'S FROM SAN FRANCISCO
. SHE'S ALSO AN UNDOCUMENTED
WORKER. I KNOW YOU GUYS HAVE
MENTIONED THAT YOU KNOW THE
METERS, BUT I JUST WANT TO
QUICKLY TAKE TO THE POINT ABOUT
US. BEING HERE IS JUST REPRESENT
THE WORKERS AS BEING
UNDOCUMENTED. WE KNOW THAT THIS
IS NOT LIKE THE SP 2 TO 7 IS NOT
THE BILL THAT YOU KNOW YOU GUYS
ARE LOOKING AT, AND IT'S ALSO ON
THE BUDGET, BUT IT'S IMPORTANT,
JUST JUST REPRESENTING THE
UNDOCUMENTED WORKERS AND HOW
IT'S IMPORTANT. I COMPLETELY
APPRECIATE IT AND I APOLOGIES
FOR BUT IT'S NOT IT'S NOT REALLY
REMAIN PER SE, SO I'M GOING TO
ALLOW IT TO CONTINUE, BUT AND I
DO NOT WANT TO CUT PEOPLE OFF.
HOWEVER, WE'RE GOING TO HAVE TO
BE BECAUSE IT'S YEAH, WE JUST
THANK YOU. THANK YOU. HELLO
EVERYONE. MY NAME IS LORENA. I
LIVE IN HARDWARE AND I AM HERE
TO SUPPORT SAFETY NET FOR ALL.
THANK YOU SO MUCH. WHEN I
STARTED K¾T BE INCLUDED. THE
AIRPORT AND FONDOS PHOTOS N N
INITIATIVE VOICE SENSUALIST.
SALVADOR X CAR WATCH EROS
COMPANEROS MEDIOS. MEDICARE ON
SABBATH MERA AS THE MEETING
NUMBER YOU'RE MISSING QUESTIONS
RESPONSIBLE. RESPONSIBLE. BEAR.
CONFIDENCE. HE TRAVELS. OUTSIDE
CERVANTES. IN THE HILLS. NOT
TODAY. RESIDENTS MEETING YEARS
AGO. CUENTA GRACIAS. HI MY NAME
IS LOUISE MCGEEHAN. I'M HERE IN
SUPPORT OF SAFETY NET FOR ALL
FOR THE FUNDING OF SAFETY NET
FOR ALL. THANK YOU. NOBODY SAYS
PASADENA ESCALA ORGANIZATION,
INDIA'S NATIONAL DAY LABOR IS TO
THE ICE TO KEEP IT UP TO STATUS
BUT PROCESSION PROPOSITION IS
HERE TO REALIZE THE PROFESSION
HE CAN STAND THE. BUT BENEFICIAL
THAT THE SAME PLAYER IMPOSE THE
PLAYER. BUT ALMOST GAVE UP AND
AMIA IS TOO MUCH OF THE JUST
TSUKASA IS THE UNIT. THIS IS THE
WAY IN THE SOLOMON MINISTER LADY
IS GRACIAS, SALAS. HI ALSO
FAMILY. HI MY NAME IS TESSA. AND
I'M ALSO HERE IN SUPPORT OF
SAFETY NET FOR ALL. THANK YOU.
ALL RIGHT. THANK YOU AND I WE'RE
NOT GOING TO TAKE ANY MORE LONG
TESTIMONY FROM ANY OTHER
SUPPORTERS OF SAFETY NET PURELY
SUPPORT SAFETY NET FUNDING AT
THIS POINT OR I WILL CUT YOU
OFF. GO AHEAD. GOOD AFTERNOON.
HONORABLE CHAIR AND MEMBERS. MY
NAME IS SAMMY SHEIKH WITH WILD
CARE CONSULTING REPRESENTING THE
CALIFORNIA COMMUNITY LAND TRUST
NETWORK, SPEAKING IN FAVOR OF
THE FORECLOSURE INTERVENTION
HOUSING PRESERVATION PROGRAM AND
THEIR ONGOING INVESTMENT IN THIS
IMPORTANT HOUSING JUSTICE
STRATEGY. HONORABLE CHAIRMAN
MEMBERS AMY HIÆN SHAIKH, ALSO IN
SUPPORT OF THE FORECLOSURE
INTERVENTION, HOUSING
PRESERVATION PROGRAM. THANK YOU
SO MUCH. MADAM CHAIR AND MEMBERS
MICHAEL PIMENTEL HERE ON BEHALF
OF THE CALIFORNIA TRANSIT
ASSOCIATION, JUST WANTS STARTED
BY ACKNOWLEDGING THAT LAST YEAR
TOOK THE DECISIVE ACTION TO SAVE
PUBLIC TRANSIT IN OUR STATE THAT
WAS MADE POSSIBLE WITH $5.1
BILLION FROM THE STATE GIVEN TO
OUR TRANSIT INTERCITY RAIL
CAPITAL PROGRAM WERE HARD TO SEE
THE GOVERNOR'S BUDGET PRESERVES
THAT FUNDING EVEN THOUGH IT DOES
MAKE SOME CHANGES TO THE TIME
SCHEDULE FOR THE RELEASE OF THE
FUNDS. I WOULD SIMPLY ASK HIS
LEGISLATURE IS CONSIDERING THE
BUDGET THAT YOU CARRY FORWARD ON
THAT COMMITMENT TO PROVIDE THE
5.1 BILLION TO CALIFORNIA
AGENCIES IMPACT EVERY REGION OF
THE CITY. EVERY ONE OF YOUR
DISTRICTS, MAKING SURE THE
SERVICES CAN STAY ONLINE. THE
MAJOR CAPITAL PROJECTS CAN MOVE
FORWARD AND ON A SEPARATE NOTE,
I DIDN'T WANT TO NOTE THAT FOR
THE AMERICAN HEART ASSOCIATION.
DO YOU WANT TO VOICE OUR SUPPORT
FOR THE CONTINUED APPROPRIATION
OF $35 MILLION IN PREVIOUSLY
APPROVED DOLLARS FOR THE
CALIFORNIA NUTRITION INCENTIVE
PROGRAM AT CDF TO THAT PROGRAM
IS INSTRUMENTAL AND DRAWING DOWN
FEDERAL DOLLARS IN CRITICAL FOR
MAKING SURE THAT PROGRAMS LIKE
STATEWIDE MARKET MATCH NUTRITION
INCENTIVE PROGRAM CAN CONTINUE
TO DELIVER ON ITS BENEFITS.
THANK YOU. MADAM CHAIR AND
MEMBERS ALCHEMY GRAHAM WITH THE
CALIFORNIA CITY TRANSPORTATION
INITIATIVE REPRESENTING
CALIFORNIA'S EIGHT LARGEST
DEPARTMENTS OF TRANSPORTATION,
AND PUBLIC WORKS DEPARTMENTS
JUST WANT TO ECHO SOME FORMER
COMMENTS THAT WERE MADE ON THE
ACTIVE TRANSPORTATION PROGRAM
AND MAINTAINING THE FUNDING THAT
WAS PREVIOUSLY AWARDED. EXCUSE
ME PREVIOUSLY APPLIED IN FISCAL
YEAR 2022 2023 24. WHILE WE
FULLY UNDERSTAND THE GRAVITY OF
THE CURRENT BUDGET OUTLOOK
INVESTMENTS IN THE ESSENTIAL IN
SUPPORTING CITIES, ACTIVE
TRANSPORTATION PROJECTS AND
ENABLING THEM TO DELIVER ON THE
STATE'S CLIMATE MOBILITY, PUBLIC
HEALTH AND EQUITY OBJECTIVES AND
FOR THAT REASON, WE URGED THE
COMMITTEE TO CONSIDER SUPPORTING
MAINTAINING FUNDING FOR THE
ACTIVE TRANSPORTATION PROGRAM.
THANK YOU. GOOD AFTERNOON CHAIR
MEMBERS. MY NAME IS KENDRA
HARRIS GOVERNMENT AFFAIRS WITH
CLIMATE CENTER. I WANT TO THANK
YOU FOR TODAY'S HEARING. I KNOW
THIS IS A TOUGH BUDGET YEAR.
WE'RE LOOKING AT A NUMBER OF
CUTS, BUT I WANT THIS COMMITTEE
AND THE LEGISLATURE TO CONSIDER
ELIMINATING ALL OIL AND GAS
SUBSIDIES AND TAX BREAKS BEFORE
MAKING ADDITIONAL CUTS. A
CLIMATE PACKAGE. THANK YOU.
HELLO GOOD AFTERNOON. MY NAME IS
IRENE DEBARY. CæA. AND I'M
DIRECTOR POLICY FOR LEE THAT IS
CAMPESINA TO STATEWIDE NETWORK
OF WOMEN, FARMWORKER LEADERS.
AND WE HAVE THE MISSION TO
ENSURE THE RIGHTS OF FARM
WORKERS AND THEIR FAMILIES. WE
ARE PART OF A COALITION WHICH IS
MADE UP OF 150 ORGANIZATIONS
THAT HAVE STEPPED UP TO FILL
GAPS RELATED TO FOOD INSECURITY,
RENTAL ASSISTANCE AND SEVERE
WAGE LOSS. A ROLE THAT SHOULD
TYPICALLY FALL UNDER OUR
GOVERNMENT. WE ARE A COALITION
LED BY IMPACTED WORKERS THAT ARE
EXCLUDED FROM RECEIVING
UNEMPLOYMENT BENEFITS. THESE
WORKERS ARE ESSENTIAL TO THE
ECONOMY, AND ALTHOUGH THEY ARE
LABELED IMMIGRANTS, MANY HAVE
RESIDED AND SERVED THIS COUNTRY
FOR OVER 25 YEARS WITH THEIR
LABOR. THIS IS A MEETING WITHOUT
ANY ECONOMIC SAFETY NET DURING
OFF SEASONS. YOU CAN ADD YOUR ME
TOO, TOO. CAN WE CUT OFF THE
MIKE? SORRY, THAT'S A ME TOO.
THANK YOU KNOW WHAT WE SHOULD?
ALL RIGHT. I WILL. GOOD
AFTERNOON. JOHN BRABENDER WITH
THE STEINBERG INSTITUTE JUST
WANTED TO SAY THAT WE'RE
HEARTENED BY THE LIMITED NUMBER
OF PROPOSED DELAYS AND
BEHAVIORAL HEALTH FUNDING. WE DO
HAVE CONCERNS AROUND BRIDGE
HOUSING, B CHIP AND WORKFORCE
DOLLARS, ESPECIALLY BECAUSE WE
THINK THERE'S DOLLARS GOING OUT
ON TIME. WE'LL HAVE A MORE
TIMELY IMPACT ON OUR EXISTING
WORKFORCE CRISIS. WE'RE ALSO
CONCERNED ABOUT THE $7.8 MILLION
REDUCTION IN THE BOARD OF STATE
AND COMMUNITY CORRECTIONS DATA
COLLECTION. ON PUBLIC SAFETY
REALIGNMENT DOLLARS. WE THINK
THAT THIS DATA IS ESSENTIAL FOR
MAKING SURE THAT THOSE DOLLARS
ARE BEING SPENT ON PROGRAMS THAT
HAVE MORE BENEFIT THAN HARM, AND
WE JUST WANTED TO THANK THE
COMMITTEE FOR YOUR
CONSIDERATIONS OF BEHAVIORAL
ISSUES. THANKS. THANK YOU, MADAM
CHAIR MEMBERS, MEGAN SUPERS ON
BEHALF OF THE CALIFORNIA
PROFESSIONAL FIREFIGHTERS AND I
WOULD JUST LIKE TO EXPRESS OUR
SUPPORT FOR THE GOVERNOR'S
PROPOSAL TO IMPLEMENT THE
REDUCTION IN WORK WEEK FOR OUR
CAL FIRE FIREFIGHTERS. THIS WAS
AN ISSUE THAT WAS BARGAINED
BETWEEN THE LOCAL AND THE
ADMINISTRATION REALLY IMPORTANT
TO IMPROVE THE WORKING
CONDITIONS AND LIVES OF OUR
FIREFIGHTERS OUT THERE ON BEHALF
OF THE STATE ON THE FRONT LINES
AND WOULD URGE YOUR SUPPORT FOR
FULL IMPLEMENTATION. THANK YOU.
KIMBERLY ROSENBERG WITH SERVICE
EMPLOYEES INTERNATIONAL UNION ON
BEHALF OF OUR 700,000 MEMBERS,
WE ARE HEARTENED BY SOME THINGS
BUT CONCERNED BY A NUMBER OF THE
CUTS TO SOCIAL NEED SOCIAL
SERVICES AND SAFETY NET PROGRAMS
. NOT JUST BECAUSE I HAVE TO
CHANGE THE OPENER TO MY REMARKS
AND NUMBERS OF FOLKS WE
REPRESENT, BUT IN PARTICULAR
BECAUSE WE HAVE WORKED PROGRESS
REALLY HARD IN CALIFORNIA TO
CREATE CRUCIAL SAFETY NET
SERVICES, AND WE KNOW THAT BY
CUTTING WORKERS FIRST IT TAKES A
LONGER TIME TO REBUILD THAT
WE'VE WORKED FOR OVER A DECADE
TO REBUILD THAT. COST A LOT MORE
. SO WE URGE CONTINUED
PARTNERSHIP AND COMMITMENT AS WE
WORK TOGETHER. TO REBUILD AROUND
SOCIAL SERVICES, PUBLIC HEALTH,
BEHAVIORAL HEALTH AND CONTINUE
TO IMPROVE ON CHILDCARE IN K
THROUGH 12. THANK YOU. GOOD
AFTERNOON SHARING MEMBERS. CHRIS
LEE HERE ON BEHALF OF THE
SACRAMENTO AREA COUNCIL OF
GOVERNMENTS, URGING YOU TO
REJECT THE $300 MILLION
REDUCTION TO THE REGIONAL EARLY.
I'M SORRY REGIONAL EARLY. OH, MY
GOSH, IF THE REAP 2.0 PROGRAM,
I'M SORRY IT'S BEEN A LONG DAY
PLANNING IS IN THE TITLE OF THE
PROGRAM, BUT IN THE SACRAMENTO
REGION, IT'S GOING TOWARDS
CAPITAL PROJECTS THAT WILL
UNLOCK AN ESTIMATED 8000 UNITS
OF CLIMATE FRIENDLY HOUSING OR
TO REJECT THAT REDUCTION AND
LOOK FORWARD TO WORKING WITH THE
COMMITTEE. GOOD AFTERNOON CHAIR
MEMBERS JANICE SOMALI WITH THE
AMERICAN FEDERATION OF STATE
COUNTY MUNICIPAL EMPLOYEES
WANTED TO ECHO THE COMMENTS MADE
BY MY COUNTERPART AT CTU, BUT
ALSO WANTED TO EMPHASIZE THAT WE
ARE STILL PAYING THE PRICE FROM
THE CUTS MADE DURING THE GREAT
RECESSION, WHICH HAVE CONTINUED
TO CAUSE PROBLEMS WITH RETENTION
AND RECRUITMENT OF THE PUBLIC
PUBLIC SECTOR JOBS. AND THIS IS
WHY WE OPPOSE THE SWEEPING OF
VACANCIES IN THE STATE WORKFORCE
, AND WE ARE ALSO ASSESSING THE
IMPACTS OF THE DELAY AND T C T.
C I R P FUNDING ON TRANSIT
OPERATIONS AND HOW IT WILL
AFFECT THE TRANSIT WORKFORCE. WE
CAN'T IGNORE THE FACT THAT AT
SOME POINT WE ARE GOING TO
RECOVER. HOPEFULLY FROM THIS BAD
BUDGET CYCLE AND WE'RE GOING TO
NEED THE HELP OF THE PUBLIC
SECTOR WORKFORCE WHO PERFORMED
THE VITAL SERVICES THAT ARE
NEEDED FOR OUR STATE AND OUR
COMMUNITIES. WE LOOK FORWARD TO
WORKING WITH ALL OF YOU AND
FINDING WAYS TO MITIGATE THE
IMPACTS TO OUR PUBLIC SECTOR
WORKFORCE. THANK YOU. GOOD
AFTERNOON, MADAM CHAIR AND
MEMBERS, MALIK BEYNON WITH
UNITED DOMESTIC WORKERS ASKED ME
LOCAL 3930 VERY MUCH APPRECIATE
THE ADMINISTRATION'S MAINTAIN
INVESTMENT IN THE ACCESS PROGRAM
, ESPECIALLY THE PROVIDER BACKUP
SYSTEM AND THE EXPANSION OF
MEDICAL INCLUSIVE OF EXCESS COST
VERY MUCH LOOK FORWARD TO
WORKING WITH YOU ALL ON
EXTENDING ITS CURRENT 10% STATE
PARTICIPATION CAP ON LOCALLY
NEGOTIATED WAGE INCREASES, AS
WELL AS BUILDING UPON THE
CURRENT CAREER PATHWAYS PROGRAM
FOR PROVIDERS. THANK YOU. GOOD
AFTERNOON CHAIR AND MEMBERS. MY
NAME IS SAM GREENLEE AND THE
EXECUTIVE DIRECTOR OF ALCHEMIST
COMMUNITY DEVELOPMENT
CORPORATION, A NONPROFIT SERVING
THE SACRAMENTO REGION. I'M HERE
TO SPEAK FOR THE STATEWIDE
MARKET MATCH PROGRAM THAT IS
FUNDED BY THE CALIFORNIA
NUTRITION INCENTIVE PROGRAM,
KNOWN AS CETA. ORGANIZATION AND
MINISTERS MARKET MATCHES EIGHT
FARMERS MARKETS HERE IN
SACRAMENTO COUNTY IN 2023. WE
FACILITATE ALMOST $1.5 MILLION
IN MARKET MATCHING CAL FRESH
COMBINED AT THESE EIGHT MARKETS.
THIS NUMBER REPRESENTS YEARS OF
GRASSROOTS NONPROFIT WORK
LOCALLY AND ACROSS CALIFORNIA,
BUILDING AN EFFECTIVE SAFETY NET
FOR CALIFORNIA SMALL FARMS AND
LOW INCOME FAMILIES. THE
PROPOSED $33 MILLION IN CUTS TOO
SOON IT WOULD UNDERCUT THIS
WORK. KILL THIS PROGRAM AND
LEAVE NO POSSIBILITY OF A FUTURE
RETURN. IT WOULD LEAVE THOUSANDS
OF FAMILIES WITHOUT FRESH FRUITS
AND VEGETABLES AND ACCELERATE
THE LOSS OF CALIFORNIA SMALL AND
MID SIZED FARMS. I ASK YOU TO
REJECT THE PROPOSAL OF KATSINA
AND REINSTATE ALL 35 MILLION
THAT WAS ORIGINALLY APPROVED IN
THE BUDGET LAST YEAR. THANK YOU.
GOOD AFTERNOON. I'M ERIC LAWYER
SPEAKING ON BEHALF OF THE
CALIFORNIA STATE ASSOCIATION OF
COUNTIES AND REPRESENTING ALL 58
COUNTIES IN THE STATE. WE
APPRECIATE THAT THIS BUDGET
PROPOSAL PRESERVES SOME RECENT
INVESTMENTS IN BEHAVIORAL HEALTH
AND PUBLIC HEALTH. HOWEVER
SEVERAL FUNDING PROPOSALS WOULD
DIMINISH THE CORE SERVICES, THE
COUNTY'S PROVIDE. SPECIFICALLY
WE'RE CONCERNED ABOUT THE LACK
OF NEW HAP FUNDING, WHICH IS
VITAL TO ADDRESSING AND MAKING
SUSTAINED PROGRESS IN ADDRESSING
HOMELESSNESS CRISIS. WE HAVE
CONCERNS ABOUT THE CUTS TO COW
WORKS AND FOSTER CARE SERVICES
AND SPECIFICALLY HAVE CONCERNS
ABOUT THE CUTS TO SUPPORT FOR
LOCAL JURISDICTIONS AND
IMPLEMENTING SP 1383. WHICH IS
NECESSARY TO DIVERT ORGANIC
WASTE FROM LANDFILLS THAT WILL
SLOW THE STATE'S EFFORTS TO
REDUCE METHANE EMISSIONS. WE
LOOK FORWARD TO WORKING WITH YOU
ALL AND ADDRESSING THIS BUDGET
PROBLEM, AND I THANK YOU FOR
YOUR TIME TODAY. GOOD AFTERNOON
CHAIR AND MEMBERS AMARA EAGER ON
BEHALF OF SERIES. WE THINK THE
LEGISLATURE FOR YOUR LEADERSHIP
LAST YEAR WITH THE PASSAGE OF
CALIFORNIA'S LANDMARK CLIMATE
DISCLOSURE LAWS, SB 253 AND 261.
WE EMPHASIZE FULLY FUNDING THESE
TWO BILLS IN THE FINAL BUDGET IN
ORDER TO HAVE TIMELY
IMPLEMENTATION. THESE POLICIES
WERE SUPPORTED BY OVER 30 MAJOR
BUSINESSES, INCLUDING SALESFORCE
, MICROSOFT, APPLE, GOOGLE AND
MORE. MANY OF THESE COMPANIES
FEEL PREPARED TO COMPLY WITH
BOTH LAWS AS WRITTEN, AND WE
THEREFORE URGE THE LEGISLATURE
TO WORK WITH THE GOVERNOR'S
OFFICE TO MAKE SURE THIS FUNDING
IS SECURED. THANK YOU. GOOD
AFTERNOON CHAIR AND MEMBERS.
NICHOLAS MAZZOTTI ON BEHALF OF
EAST BAY REGIONAL PARKS
DISTRICT, MID PENINSULA REGIONAL
OPEN SPACE DISTRICT SIMPLE
VIOLENCE FUND SAVE THE REDWOODS
LEAGUE AND LANCE WEST OF SANTA
CRUZ COUNTY, EXPRESSING CONCERN
OVER THE GOVERNOR'S PROPOSED
CUTS TO COASTAL RESILIENCE AND
WILDFIRE FUNDING. CLIMATE CHANGE
DOES NOT STOP FOR A BAD BUNCH OF
YEAR. THANK YOU VERY MUCH.
EVENING MADAM CHAIR AND MEMBERS.
I'M KATIE VAN DOWNS WITH HEALTH
ACCESS CALIFORNIA, THE STATEWIDE
HEALTHCARE CONSUMER ADVOCACY
COALITION. WE APPRECIATE THAT,
DESPITE THE DEFICIT, THE
GOVERNOR'S PROPOSED BUDGET
CONTINUES KEY INVESTMENTS IN
MEDICAL, ESPECIALLY THE
CONTINUED COMMITMENT TO KEEPING
MEDICAL AVAILABLE FOR ALL INCOME
ELIGIBLE CALIFORNIANS WERE
CARLESS AND IMMIGRATION STATUS
IN AGE. TO FURTHER THIS EFFORT
TOWARD HEALTH FOR ALL IN THE
COMING YEAR, WILL SEEK TO
INCLUDE ALL CALIFORNIANS,
INCLUDING THOSE BARRED BY
IMMIGRATION STATUS TO ALLOW THEM
TO PURCHASE PLANS THROUGH
COVERED CALIFORNIA WITH A MODEST
REQUEST FOR START UP COSTS IN
PARALLEL WITH A B FOUR WERE ALSO
HEARTENED TO SEE AND NO CHANGES
IN THE BUDGET. TO THE COVERED
CALIFORNIA AFFORDABILITY SYSTEMS
THAT THE LEGISLATURE SECURED
LAST YEAR. WE LOOK FORWARD TO
WORKING WITH THE COMMITTEE OVER
THE COURSE OF THE YEAR TO
PROTECT THESE KEY HEALTH
INVESTMENTS. THANK YOU. HELLO
MELISSA ROMERO WITH CALIFORNIA
ENVIRONMENTAL VOTERS HERE
STRONGLY OPPOSED TO THE
GOVERNOR'S PROPOSED CUTS AND
DELAYS TO THE CLIMATE BUDGET.
ESPECIALLY WHEN ENVIRONMENTAL
GROUPS HAVE IDENTIFIED UP TO $9
BILLION IN FUNDING THAT COULD BE
FOUND BY CUTTING OIL AND GAS
SUBSIDIES. I ALSO WANT TO URGE
THE LEGISLATOR LEGISLATURE TO
PASS A CLIMATE BOND. UM WANT TO
ECHO THE COMMENTS FROM MY
COLLEAGUE WHO REPRESENTS SERIES
ON THE IMPORTANCE OF FUNDING SP
253, THE CLIMATE, CORPORATE
ACCOUNTABILITY ACT AND SP 261.
THE CLIMATE FINANCIAL RISK
DISCLOSURE ACT BOTH MAJOR
ACHIEVEMENTS LAST YEAR THAT WE
REALLY NEED TO GET IMPLEMENTED.
THANK YOU. GOOD AFTERNOON CHAIR
MEMBERS. MELISSA CO CEO WITH
CALIFORNIANS FOR SAFETY AND
JUSTICE AND CRIME SURVIVORS FOR
SAFETY AND JUSTICE, WE MIGHT
WANT TO THANK THE ADVOCACY OF
SENATORS AT COBO, THE CHAIR
SENATOR CABALLERO'S MENJIVAR AND
DURAZO FOR ALL THE YES, OF
COURSE. YES THANK YOU FOR YOUR
ADVOCACY ON OUR ISSUES WERE A
NETWORK OF SURVIVORS OF 50 DOZEN
CRIME SURVIVORS THROUGH
STATEWIDE CALIFORNIA WHO ARE
ADVOCATING FOR FLEXIBLE CASH
ASSISTANCE. AND UM, YOU KNOW,
THROUGH THE FACTS OF CLASS
ASSISTANT GRANT, AND IT'S BEEN
DELAYED BY ABOUT A YEAR OR SO.
WE'RE ASKING FOR THAT TODAY, AND
WE'RE ALSO ASKING FOR THE FUTURE
CLOSURE OF PRISONS LAST YEAR,
THE ELIO SHOW THAT THERE COULD
BE FIVE ADDITIONAL PRESENCE
CLOSE BY 2027. AND WITH THAT
COULD RESULT 1 BILLION, UM, LIKE
FUNDING AND RESOURCES THAT COULD
BE USED FOR SURVIVORS AS WELL.
SO THANK YOU FOR YOUR TIME.
NICOLE WARD WOMAN ON BEHALF OF
THE CHILDREN'S PARTNERSHIP.
THEY'RE VERY APPRECIATIVE THAT
THE BUDGET PRIMARILY PROTECTS
FAMILIES AND CHILDREN'S SERVICES
. IN ADDITION TO THE GOVERNOR'S
PROPOSAL, THE CHILDREN'S
PARTNERSHIP URGES THE
LEGISLATURE TO GREEN LIGHT THE
IMMEDIATE IMPLEMENTATION OF
CONTINUOUS MEDICAL COVERAGE FOR
CHILDREN ZERO THROUGH FIVE, AS
WELL AS INCREASED REIMBURSEMENT
RATES FOR COMMUNITY HEALTH
WORKERS ON BEHALF OF ORANGE
COUNTY AND SAN BERNARDINO COUNTY
. I URGE YOU TO REJECT THE
CLAWBACK OF THE 40 MILLION
DOLLARS FOR THE PUBLIC DEFENDER
PILOT PROGRAM. CASES ARE IN
PROCESS AND IT WILL REDUCE
ACCESS AND LAY JUSTICE FOR THESE
PEOPLE. ADDITIONALLY ON BEHALF
OF SAINT BERNARDINO COUNTY, WE
OPPOSED THE CUTS TO FOSTER YOUTH
PROGRAMS. THANKS. GOOD AFTERNOON
CHAIR MADAM CHAIR AND MEMBERS
ALEJANDRO SOLIS ON BEHALF OF
COMMITTED WE'D LIKE TO THANK THE
GOVERNOR FOR HIS INCLUSION OF
SWANSEA RESTORATION FUNDS IN THE
JANUARY PROPOSAL. WE WOULD ALSO
ENCOURAGE THE LEGISLATURE TO
PROTECT AND PRIORITIZE MAYBE 617
COMMUNITY AIR PROTECTION PROGRAM
FUNDING TO CONTINUE THE PROGRESS
AT 8617 COMMUNITIES HAVE DOING
THANK YOU VERY MUCH. GOOD
AFTERNOON, MADAM CHAIR AND
MEMBERS COR KRINGS HERE ON
BEHALF OF ALL HOME ENTERPRISE,
COMMUNITY PARTNERS AND
CALIFORNIA HOUSING CONSORTIUM,
REALLY HOPING THAT WE CAN SEE
SOME OF THE RESTORATION OF THE
CUTS OF THE 1.2 BILLION FROM
HOUSING THAT HAS BEEN AN
INVESTMENT THAT CONTINUES TO BE
ABSOLUTELY NECESSARY FOR ITS
SUPPOSED TO MEET THE HOUSING AND
HOMELESS CRISIS AT THE STATUS
ENCOUNTERING. WE UNDERSTAND THAT
DURING THIS BUDGET YEAR MIGHT
NOT BE THE ONLY ONE FUTURE YEARS
PROBABLY WILL BE A DOWNTURN. WE
HOPE THAT THE LEGISLATURE WILL
CONTINUE TO PRIORITIZE A HOUSING
BOND. GET THROUGH THE DOWNTURNS
THAT WE'RE GOING TO BE
EXPERIENCING. THANK YOU SO MUCH.
GOOD AFTERNOON AND DREAM OF ISC
A ON BEHALF OF THE CALIFORNIA
IMMIGRANT POLICY CENTER. WE
GREATLY APPRECIATE THAT THE
GOVERNOR'S PROPOSED BUDGET
MAINTAINS OUR STATE'S COMMITMENT
TOWARDS IMPLEMENTING HEALTH FOR
ALL AS WELL AS WELL AS MAKING
PROGRESS TOWARDS FOOD FOR ALL
CRITICAL. THESE INVESTMENTS ARE
INSUFFICIENT FOR FULLY
ADDRESSING THE PERSISTENT
INEQUITIES IN CALIFORNIA. WE
RESPECTFULLY URGE THE GOVERNOR
AND LEGISLATURE TO PRIORITIZE
FUNDING FOR FOOD FOR ALL AGES
EXPANDING ACCESS TO COVER
CALIFORNIA FOR IMMIGRANTS,
REGARDLESS OF STATUS, FUNDING
AND CREATING A STATEWIDE
EXCLUDED WORKERS FUND AND LASTLY
, PRESERVING THE FULL $75
MILLION BUDGET ALLOCATION FOR
VITAL IMMIGRATION, LEGAL
SERVICES. THANK YOU. JOHNSON
CALIFORNIA COMPETES HERE TO ECHO
THREE STATEMENTS. ONE ON CAL
GRANT REFORM, ONE ON AFFORDABLE
STUDENT HOUSING AND OUR HIGHER
EDUCATION SYSTEM IN THE BOND
RESOLUTION PROPOSED FOR MAY
REVISION AND THIRD, UM ITEMS FOR
FOSTER YOUTH HOUSING ARE ALSO
STUDENTS AND PLEASE PRESERVE
THAT I'LL DRAW IN FEDERAL FUNDS
AS WELL. THANK YOU. GOOD
AFTERNOON CHAIR AND MEMBERS KIM
STONE STONE ADVOCACY ON BEHALF
OF PERSEPHONE, URGING SUPPORT
AND FUNDING FOR IMPLEMENTATION
OF SP 253 WIENER AND SB 261
STERN REGARDING CARBON
ACCOUNTING IF CALIFORNIA FUNDS
THAT AIR RESOURCES BOARD TO
APPROPRIATELY IMPLEMENT THOSE
TWO BILLS, THEN POLICYMAKERS AND
CALIFORNIANS WILL HAVE ACCESS TO
THE SAME INFORMATION ABOUT
CARBON RISK THAT INVESTORS DO BE
GOOD FOR ALL OF US. THANK YOU.
GOOD AFTERNOON CHAIR AND MEMBERS
REBECCA MARCUS, REPRESENTING THE
UNION OF CONCERNED SCIENTISTS
WANTED JUST TO ECHO OVERCOME THE
PREVIOUS COMMENTS ON THE
IMPLEMENTATION OF SB 253, ALSO
ON BEHALF OF LEADING AGE
CALIFORNIA, THE STATE'S LEADING
ADVOCATE FOR QUALITY, NONPROFIT
SENIOR LIVING IN CARE WOULD LIKE
TO ECHO THE COMMENTS. MY
COLLEAGUE AT THE HOUSING
CONSORTIUM AND SUPPORT OF
RESTORATION OF THE HOUSING CUTS,
THANK YOU. ALRIGHT I BELIEVE
THAT IS ALL OUR PUBLIC COMMENT.
I WOULD HAVE ALLOWED SENATOR
AUDIOBOOK TASK QUESTIONS, BUT
SHE HAS DEPARTED ALREADY, SO
PARDON ME? NO IT'S OKAY ANYWAY.
UM UH, NICE. ALRIGHT SO I WANT
TO THANK THE DEPARTMENT OF
FINANCE AND THE LOWS OFFICE FOR
PRESENTING TODAY AND FOR BOTH OF
YOUR SHOPS BEING VERY, VERY
DIRECT AND HONEST WITH US ABOUT
BOTH THE SITUATION WE'RE FACING
AND THE WAYS THAT YOU KNOW HOW
YOU DERIVED YOUR PROJECTIONS AND
SUCH AND I WANT TO PARTICULARLY
THANK THE DEPARTMENT OF FINANCE
FOR IN THIS PRESENTATION BEING
VERY UPFRONT THAT THIS THE
PROPOSAL THAT THE GOVERNOR HAS
PUT FORWARD IS WHAT THE
ADMINISTRATION AND THE
DEPARTMENT OF FINANCE IS THEIR
BEST. TAKE ON HOW WE SHOULD
RESPOND TO THIS SITUATION THAT
WE'RE IN, WHICH IS A DEFICIT
WITH LESS REVENUES, AND BUT YOU
ARE ALSO VERY UPFRONT WITH THAT.
YOU WELCOME THE LEGISLATURES.
INTERACTIONS AND PROPOSALS THAT
YOU KNOW IF THEY'RE OBVIOUSLY AS
SOME COMMENTS WERE MADE, IF WE
SEE WAYS TO APPROACH THIS
DIFFERENTLY, BUT OF COURSE, AND
YOU DIDN'T SO MUCH SAY IT, BUT I
WILL SAY IT THAT WE'RE DOING SO
WE OBVIOUSLY HAVE TO. WE HAVE
THE CONSTITUTIONAL OBLIGATION TO
ADOPT A BALANCED BUDGET AND WE
HAVE TO BE COGNIZANT. OF THE
PROJECTIONS BECAUSE REGARDLESS
OF WHETHER THERE ARE LITTLE
DIFFERENT OR NOT, THEY'RE STILL
CLEARLY A DEFICIT PROJECTION AND
BUT I JUST REALLY WANTED TO SHOW
MY APPRECIATION FOR THE
PRESENTATION SENT FOR THE, UH,
HONESTY IN TERMS OF WHAT YOU
KNOW THE INFORMATION THAT WAS
GIVEN TO US. SO WITH THAT I AM
GOING TO, UH, THANK STAFF ALSO
FOR PREPARING THE DOCUMENTS. AND
WITH THAT WE WILL CONCLUDE AND
WE LOOK FORWARD TO ALL THE
BUDGET SUBCOMMITTEES HEARINGS
AND YOU'RE GOING INTO DEEPER
INTO MANY OF THESE PROPOSALS.
THANK YOU VERY MUCH. THE SENATE
BUDGET COMMITTEE IS NOW
ADJOURNED.