GOOD MORNING. HOW'S THE MIKE? MY
APOLOGIES TO EVERYONE. BUT WHEN
THE PRO TEM CALLS YOU INTO A
MEETING, YOU GENERALLY DON'T
POINT TO YOUR SUB COMMITTEE
HEARING THAT YOU IS WAITING. YOU
SORT OF DO THAT. SO MY APOLOGIES
TO EVERYONE FOR PURPOSES OF
PREPARATION. THE BUDGET
SUBCOMITTEE. NUMBER FOUR ON
STATE ADMINISTRATION WILL
OFFICIALLY CONVENE IN 60
SECONDS.
ALL RIGHT. THE COMMITTEE WILL BE
IN ORDER AND WE ESTABLISH A
QUORUM CONSULTANT. PLEASE CALL
THE ROLL. UH, SENATORS PADILLA,
NILO. HERE YOU KNOW HERE SMALL,
SMALL EQUUS HERE. THANK YOU. WE
HAVE A QUORUM. TODAY WE WILL
TAKE UP FOR DISCUSSION. ALL
ITEMS DOCKETED, UH FOR
DISCUSSION AND THEN FOLLOW WITH
PUBLIC COMMENT, UH, AND THEN
TAKE UP THE ITEMS FOR VOTE. UH,
WE'LL BEGIN WITH GOVERNMENT
OPERATIONS AGENCY GOV. THE
REPRESENTATIVES REPRESENTING THE
SITE AND PLEASE COME FORWARD.
MAKE YOURSELVES WELCOME AND
COMFORTABLE. ITEM SIX IS CRADLE
TO CAREER. E TRANSCRIPT.
CALIFORNIA PRACTICAL TOOLS. RE
APPROPRIATION. PLEASE STATE YOUR
NAME FOR THE RECORD AND PROCEED
WHEN READY. GOOD MORNING, MR
CHAIR AND MEMBERS. MY NAME IS
MARY ANNE BATES. AND I'M, THE
EXECUTIVE DIRECTOR OF THE
CALIFORNIA CRADLE TO CAREER DATA
SYSTEM WITH ME IS ERIC FLORES,
DEPUTY DIRECTOR FOR LEGISLATIVE
AFFAIRS. I WANT TO OPEN WITH A
BRIEF INTRODUCTION ON CRADLE TO
CAREER LAUNCHED BY THE STATE
LEGISLATURE IN 2021. STATE
POLICYMAKERS RECOGNIZED
CALIFORNIA FACED A TOUGH
CHALLENGE OUR INFORMATION ON
EARLY EDUCATION Kò 12, SCHOOLS,
COLLEGES, SOCIAL SERVICES AND
EMPLOYMENT WERE KEPT. AND
DISCONNECTED. THIS MAKES
EVIDENCE BASED PLANNING AND
DECISION MAKING ACROSS OUR
STATE'S EFFORTS IN EDUCATION AND
JOB TRAINING EXCEPTIONALLY
DIFFICULT WITHOUT A STATEWIDE
ENTITY CONNECTING TRUSTED
INFORMATION TOGETHER. CRADLE TO
CAREER IS A STATEWIDE
LONGITUDINAL DATA SYSTEM THAT
PROVIDES TOOLS TO HELP STUDENTS
REACH THEIR GOALS AND DELIVERS
INFORMATION ON EDUCATION,
ECONOMIC AND HEALTH OUTCOMES.
THE CRADLE TO CAREER DATA SYSTEM
CONNECTS INDIVIDUALS AND
ORGANIZATIONS WITH TRUSTED
INFORMATION AND RESOURCES. OUR
OFFICE IS DEVELOPING TOOLS TO
PROVIDE INSIGHTS INTO CRITICAL
MILESTONES IN THE PIPELINE FROM
EARLY CARE TO Kò 12 TO HIGHER
EDUCATION SKILLS, TRAINING AND
EMPLOYMENT. THE DATA SYSTEM
EMPOWERS INDIVIDUALS TO REACH
THEIR FULL POTENTIAL AND FOSTERS
EVIDENCE BASED DECISION MAKING
TO HELP CALIFORNIA BUILD A MORE
EQUITABLE FUTURE. BEFORE èC Tð
C'S CREATION, CALIFORNIA WAS ONE
OF FEWER THAN 10 STATES WITHOUT
AN EDUCATION FOCUSED
LONGITUDINAL DATA SYSTEM. OUR
OFFICE IS WORKING HARD TO LINK
STATE INFORMATION ON EDUCATION
AND JOBS TO SERVE AS A NEUTRAL
SOURCE OF INFORMATION FOR
STUDENTS, FAMILIES AND
POLICYMAKERS. WE'RE DOING THIS
WORK IN THREE WAYS FIRST THROUGH
ANALYTICAL TOOLS DESIGNED TO
ALLOW THE PUBLIC AND DECISION
MAKERS TO INTERACT WITH SECURE
DEIDENTIFIED DATA THROUGH
DASHBOARDS, QUERY BUILDERS AND A
DATA REQUEST PROCESS FOR
RESEARCHERS. SECOND WE'RE
WORKING TO SCALE PRACTICAL TOOLS
TO HELP STUDENTS AND FAMILIES
SUCCEED IN THEIR TRANSITION INTO
COLLEGE AND CAREERS AND THIRD
THROUGH EXTENSIVE COMMUNITY
ENGAGEMENT WERE FIRST LISTENING
TO COMMUNITIES AND PRACTITIONERS
ABOUT WHAT THEY NEED AND THE
QUESTIONS THEY NEED ANSWERED,
AND THAT'S INFORMING THE DESIGN
OF THE SYSTEM. WE'RE PROUD OF
THE WORK OUR OFFICE HAS DONE
SINCE WE LAST SPOKE AT THIS
COMMITTEE IN 2020 THREE. WE'VE
LED 18 COMMUNITY EVENTS DESIGNED
TO ENGAGE THE PUBLIC IN THE
DESIGN OF OUR DATA SYSTEM. AND
WE'VE BEEN GROWING THE TEAM AND
HAVE FILLED NINE OF THE 10 NEW
POSITIONS AUTHORIZED IN THE LAST
BUDGET. LAST LAST OCTOBER, WE
REACHED A MILESTONE
UNPRECEDENTED IN CALIFORNIA. THE
DATA SYSTEM INGESTED OVER A
BILLION DATA POINTS AND
COLLABORATION WITH EIGHT OF OUR
DATA PARTNERS. PART OF OUR
ONGOING WORK IS DIRECTLY RELATED
TO GOVERNOR NEWSOM'S EXECUTIVE
ORDER ON CAREER EDUCATION, WHICH
GIVES CRADLE TO CAREER A ROLE IN
THE CREATION OF A MASTER PLAN
FOR CAREER EDUCATION. CRADLE TO
CAREER IS WORKING TO DEVELOP AND
SUPPORT TOOLS THAT EMPOWER
STUDENTS TO GET CREDIT FOR THEIR
LEARNING AND FOR WORKERS TO
ARTICULATE THE VALUE OF THEIR
SKILLS AND ENABLE THEM TO BUILD
ON THOSE SKILL SETS. WE'RE DOING
THAT IN TWO WAYS. FIRST WE'RE
WORKING WITH PARTNERS TO REVAMP
EACH TRANSCRIPT, CALIFORNIA
INCONSISTENCIES IN HOW COMMUNITY
COLLEGES FORMAT DELIVER AND
CHARGE STUDENTS FOR TRANSCRIPTS
CAN DELAY ADMISSIONS DECISIONS
AND MAY RESULT IN STUDENTS NOT
RECEIVING CREDIT FOR CLASSES
THEY HAVE COMPLETED. SECOND
WE'RE EXPLORING POSSIBILITIES
FOR WHAT GOVERNOR NEWSOM CALLED
THE CALIFORNIA CAREER PASSPORT
TO SUPPORT SKILLS BASED HIRING
BY DOCUMENTING QUALIFICATIONS,
SUCH AS CERTIFICATES AND BADGES.
BECAUSE CRADLE TWO CAREERS
AUTHORIZING LEGISLATION TASKS
OUR OFFICE WITH EXPANDING ACCESS
TO E TRANSCRIPT. CALIFORNIA THE
OFFICE IS STRATEGICALLY PLACED
TO FACILITATE CROSS CUTTING
CONSENSUS AROUND SCOPE,
FUNCTIONALITY AND USER NEEDS FOR
THIS TOOL. TO BE RESPONSIVE TO
OUR STATUTORY OBLIGATIONS AND
THE GOVERNOR'S EXECUTIVE ORDER.
OUR OFFICE HAS LAUNCHED A TASK
FORCE RUNNING FROM JANUARY TO
JUNE OF THIS YEAR THAT WILL
PROVIDE RECOMMENDATIONS FOR THE
MASTER PLAN ON HOW REVAMPING E
TRANSCRIPT AND BUILDING A
CALIFORNIA CAREER PASSPORT CAN
REDUCE BURDEN ON STUDENTS, JOB
SEEKERS AND EDUCATORS. THANK
YOU, AND I LOOK FORWARD TO YOUR
QUESTIONS. THANK YOU VERY MUCH.
ARE THERE COMMENTS FROM L A Ó
AND Dð Ó F. NATALIE GRISWOLD
DEPARTMENT OF FINANCE FUNDING
FOR THIS PROPOSAL IS NECESSARY
TO MEET ONE OF èC TWO èC S¼
STATUTORY REQUIREMENTS. THIS IS
A RE APPROPRIATION OF CTC'S
CURRENT YEAR FUNDING AND
REPURPOSE FUNDING FOR EACH
TRANSCRIPT RELATED RESOURCES.
UH, THIS IS AN EFFICIENT USE OF
FUNDING GIVEN THE GENERAL FUND
CONDITION AND WE ARE AVAILABLE
FOR ANY ADDITIONAL QUESTIONS.
THANK YOU. THANK YOU. THANK YOU,
MR CHAIR MEMBERS ROSS BROWN WITH
THE LEGISLATIVE ANALYST'S OFFICE
. UH, WE'RE RECOMMENDING THE
LEGISLATURE, UH, REJECT THE
PROPOSED RE APPROPRIATION. UH,
WE VIEW THIS AS A DISCRETIONARY
EXPENDITURE THAT'S BEING
PROPOSED BY THE ADMINISTRATION.
THESE ARE UNUSED FUNDS THAT
WOULD OTHERWISE REVERT TO THE
GENERAL FUND AND COULD BE USED
TO HELP ADDRESS THE STATE'S
BROADER BUDGET PROBLEM FOR
SEVERAL REASONS. WE THINK THAT
WE DON'T THINK THERE'S ADEQUATE
JUSTIFICATION FOR FUNDING THIS
PROPOSAL AT THIS TIME. FIRST
WHILE THE FUNDS WILL BE USED TO
CONTRACT OUT OUTSIDE CONSULTANTS
FOR PLANNING AND STAKEHOLDER
ENGAGEMENT, THE SPECIFIC
ACTIVITIES THAT WOULD BE FUNDED
ARE STILL UNKNOWN TO THE
ADMINISTRATION, AND IT DOESN'T
ANTICIPATE HAVING A CLEAR PLAN
FOR USING THE FUNDS UNTIL AT
LEAST LATER THIS SUMMER. IN
ADDITION, A REIMAGINED AND
EXPANDED E TRANSCRIPT IS STILL
IN THE EARLY CONCEPTUAL STAGES
WITH SIGNIFICANT QUESTIONS ABOUT
ITS SCOPE, COST FUNCTIONALITY
AND USER NEED. AND FINALLY, THE
ADMINISTRATION IS ALSO NOT
SUBSTANTIATED. WHY THE CRADLE TO
CAREER OFFICE RATHER THAN SOME
OTHER AGENCY, FOR EXAMPLE, THE
UH COMMUNITY COLLEGES COLLEGES
CHANCELLOR'S OFFICE, WHICH IS
THE LEAD ON E TRANSCRIPT SHOULD
OVERSEE THESE ACTIVITIES AND SO
FOR THESE REASONS, AND GIVEN THE
STATE BUDGET SITUATION, WE
RECOMMEND THE LEGISLATURE REJECT
THE PROPOSAL AND REVERT THE
UNSPENT FUNDS TO THE GENERAL
FUND. ALL RIGHT. THANK YOU. THE
UH REQUESTED RE APPROPRIATION
FOR IMPLEMENTATION IS BASED ON A
SCOPE YET NOT YET DETERMINED.
THAT WE WANT TO ADDRESS THAT
FURTHER. I'D BE HAPPY TO THANK
YOU FOR THAT QUESTION, UM, FOR
THE ACTIVITIES THAT ARE PLANNED.
I WOULD LIKE TO REFER YOU TO THE
STAFF. UM MEMO FOR THIS ITEM,
WHICH LISTS A NUMBER OF BULLET
POINTS AROUND THE PROJECT
MANAGEMENT AND CO ORDINATION
ACROSS ALL OF THE HIGHER
EDUCATION SEGMENTS THAT WE PLAN
TO DO, AND THESE ARE LARGELY
AROUND CONVENING THE HIGHER
EDUCATION SEGMENTS AND
STAKEHOLDERS TO SUPPORT
ALIGNMENT AND CONSENSUS ON THE
BEST WAYS TO COLLABORATIVELY
SOLVE THE ISSUES THAT CURRENTLY
EXIST AND THE BARRIERS THAT
STUDENTS FACE IN TRANSFERRING
THEIR TRANSCRIPTS. THANK YOU.
OTHER QUESTION QUESTIONS FROM
MEMBERS OF THE COMMITTEE. BUS
CHAIR, NUM NÓ QUESTIONS. UM, A
COMMENT UH, FIRST OF ALL, I'M
SUPPORTIVE OF THE CRADLE TO
CAREER EFFORTS. UM BUT I'M GONNA
MAKE AN OVERALL POINT NOT HAVING
TO DO SPECIFICALLY TO THIS. THIS
IS THE FIRST ITEM OUT OF THE
SHOOT FOR THIS COMMITTEE. WE
HAVE A VERY SERIOUS BUDGET
DEFICIT. AND IT'S GETTING WORSE.
AND ESPECIALLY BECAUSE IN MY
OPINION, THE ADMINISTRATION
CONTINUES TO SEEM TO MAINTAIN
THAT THE PROBLEM IS NOT THAT
BIG. WE'RE STILL DEALING WITH A
$38 BILLION DEFICIT FROM THE
ADMINISTRATION STANDPOINT,
WHEREAS THE L A Ó, UM AS
INCREASED THE ESTIMATE TO 72
BILLION BECAUSE OF REVENUE
DECLINES. WHICH ARE MORE LIKELY
TO CONTINUE DECLINING. UH, AS
OPPOSED TO IMPROVING IN THE
SHORT TERM, WE HAVE A HUGE
MOUNTAIN TO CLIMB. NOW. THIS IS
ONLY $600,000. NOT EVEN BUDGET
DUST. BUT I THINK WE'VE GOT TO
MAKE THE POINT THAT, UH, WE'RE
NOT GONNA BE ABLE TO SOLVE THIS
DEFICIT UNLESS WE SERIOUSLY TAKE
A LOOK AT REDUCING EXPENDITURES.
ONE TIME EXPENDITURES UNSPENT
MONEY FROM THE CURRENT YEAR, UH,
AS WELL AS SERIOUS ISSUES WITH
REGARD TO THE 2020 2425 YEAR,
KEEPING IN MIND THAT EVEN WHEN
WE BALANCE THAT BUDGET, WE HAVE
CONTINUED DEFICITS IN THE NEXT
THREE BUDGET YEARS. SO UM, THIS
HAS TO BE A REJECTION OF AN
EXPENDITURE NÓ MATTER HOW SMALL
BECAUSE OF THE HUGE HILL THAT WE
HAVE TO CLIMB. SENATOR SMALL
QUES. I JUST THANK YOU SO MUCH,
UH, MR CHAIR AND I WANTED TO
JUST CLARIFY, SO THIS IS PART OF
THE 10 POSITIONS. YOU SAID NINE
HAVE BEEN FILLED. THIS IS A
POSITION THAT HAS ALREADY BEEN
BUDGETED. WE'VE ALREADY
IDENTIFIED NEEDS TO BE RESOURCED
TO START THIS WORK. THANK YOU.
FOR THAT QUESTION. THIS REQUEST
DOES NOT HAVE ANY POSITIONS
ASSOCIATED WITH IT. IT'S A ONE
TIME EXPENDITURE. THE RESOURCES
THAT HAVE BEEN ALLOCATED. FOR IN
TERMS OF THE BUDGET. THIS ISN'T
NEW MONEY. THIS IS MONEY THAT IS
ALREADY BEEN, UM, GIVEN TO THE
DEPARTMENT FOR THIS PURPOSE. DO
YOU WANT TO ANSWER THAT? NATALIE
GRISWOLD. DEPARTMENT OF FINANCE.
YES SO THIS IS A RE
APPROPRIATION OF èC Tð èC S¼
CURRENT YEAR FUNDING èC Tð èC
HAS EXPERIENCED SOME SALARY
SAVINGS THIS YEAR BECAUSE THEY
WERE AUTHORIZED FOR 10 NEW
POSITIONS AT THE BEGINNING OF
THE FISCAL YEAR, AND WE'RE NOT
ABLE TO FILL ALL OF THOSE
POSITIONS ON JULY 1ST. SO THEY
HAVE SOME ADDITIONAL SAVINGS
AVAILABLE, SO WE'RE MAKING.
WE'RE PROPOSING TO MAKE THIS
FUNDING AVAILABLE FOR AN
ADDITIONAL YEAR AND REPURPOSING
IT FOR THIS. E TRANSCRIPT.
CALIFORNIA PURPOSE THANK YOU.
THAT'S HELPFUL, AND I AND I
UNDERSTAND THE SENATOR'S
CONCERNS ABOUT OUR BUDGET.
DEFICIT BUT I WANT TO SAY THAT
WE HAVE TO INVEST MONEY WHERE WE
SEE THERE'S GOING TO BE A
MULTIPLIED, RETURN AND INVESTING
IN èC TO èC TO ME, IS, UM, AN
OPPORTUNITY FOR US TO DO THE
WORK THAT WE'RE DOING. WE'RE WE
WILL GET FEDERAL FUNDS TO BUILD
OUT OUR CLIMATE, RESILIENT
FUTURE AND WE NEED TO MAKE SURE
WE HAVE THE WORKFORCE THAT'S
READY TO STEP INTO THE GAP AS WE
MOVE FORWARD. SO UH, WITH THAT I
WILL BE SUPPORTING, UM THIS ITEM
AND HAPPY TO MOVE THE MOTION
WHEN THE TIME IS RIGHT. WE ARE,
UM THANK YOU VERY MUCH FOR THIS.
AS ALWAYS. THE FOCUS CENTERS
SMALL. THESE ITEMS WERE TAKING
TODAY JUST FOR DISCUSSION. THIS
ITEM WILL BE HELD. UM BUT WE'LL
COME BACK TO US FOR ACTION AND
I. I APPRECIATE THAT. THANK YOU
VERY MUCH. WE'LL TAKE ITEM. UH
ISSUE NUMBER SEVEN, WHICH IS
VARIOUS REDUCTIONS IN GOVS.
THANK YOU BOTH. MUSICAL CHAIRS.
AND THIS TIME SOME OF THE
COMMENTERS ARE THE PRESENTERS.
WELCOME STATE YOUR NAME FOR THE
RECORD AND PROCEED WHEN READY.
THANK YOU VERY MUCH. NÓ NATALIE
GRISWOLD DEPARTMENT OF FINANCE,
AND I'M HERE WITH MY COLLEAGUE
DANIEL BRENDAN FROM THE
DEPARTMENT OF FINANCE. GOOD
MORNING, MR CHAIR AND MEMBERS.
TODAY I WILL PRESENT A BRIEF
OVERVIEW OF THE GOVERNMENT
OPERATIONS AGENCY OR GAPS. GAPS
IS RESPONSIBLE FOR COORDINATING
AND OVERSEEING THE DEPARTMENTS
THAT MANAGE THE STATE'S
OPERATIONS AND BUSINESS
OPERATIONS, INCLUDING
PROCUREMENT, INFORMATION
TECHNOLOGY AND HUMAN RESOURCES.
GOB OPS OVERSEES SEVERAL
DEPARTMENTS, INCLUDING THE
DEPARTMENT OF GENERAL SERVICES,
WHICH MANAGES A VARIETY OF
ISSUES, INCLUDING PROCUREMENT,
REAL ESTATE. BUILDING MANAGEMENT
. THE DEPARTMENT OF FISCAL WHICH
OPERATES THE STATE'S FINANCIAL
INFORMATION SYSTEM FOR
CALIFORNIA, THE DEPARTMENT OF
TECHNOLOGY, WHICH OVERSEES STATE
TECHNOLOGY AND INFORMATION
SECURITY. GOOPS ALSO OVERSEES
SEVERAL ADDITIONAL DEPARTMENTS,
INCLUDING THE FRANCHISE TAX
BOARD, THE DEPARTMENT OF TAX AND
FEE ADMINISTRATION, THE OFFICE
OF DATA AND INNOVATION, THE
DEPARTMENT OF HUMAN RESOURCES,
THE CALIFORNIA PUBLIC EMPLOYEES
RETIREMENT SYSTEM, THE
CALIFORNIA STATE TEACHERS
RETIREMENT SYSTEM, THE STATE
PERSONNEL BOARD AND THE VICTIM
COMPENSATION BOARD, THE OFFICE
OF ADMINISTRATIVE LAW AS WELL AS
ADMINISTERING THE OFFICE OF
CRADLE TO CAREER DATA SYSTEM,
WHICH WE JUST HEARD FROM GOV'S
ONGOING ANNUAL BUDGET IS $22.5
MILLION, INCLUDING 18.7 MILLION
GENERAL FUND, AND THIS SUPPORTS
55 POSITIONS. GOVS MISSION IS TO
ADVANCE EFFECTIVENESS,
EFFICIENCY AND EQUITY IN STATE
OPERATIONS. GALLOPS IS ONE OF 11
CABINET LEVEL AGENCIES THAT
REPORTS TO THE GOVERNOR IT
OVERSEES AND SUPPORTS THE WORK
OF 13 DEPARTMENTS, BOARDS AND
OFFICES WITH MORE THAN 22,000
EMPLOYEES IN AN ANNUAL BUDGET OF
OVER 67 MILLION WITHIN ALL OF
THOSE DEPARTMENTS. THE
GOVERNOR'S BUDGET PROPOSES THREE
REVERSIONS OF ONE TIME FUNDING
PREVIOUSLY APPROPRIATED TO GOV.
OPS FROM THE GOV OPS BUDGET TO
HELP ADDRESS THE PROJECTED
GENERAL FUND SHORTFALL. THIS
FIRST PROPOSAL REVERTS ABOUT
$2.19 MILLION GENERAL FUND, THE
2019 BUDGET ACT APPROPRIATED
87.9 MILLION GENERAL FUND FOR
CENSUS RELATED WORKLOAD. THIS
WORKLOAD HAS BEEN COMPLETED AND
SO FUNDING IS NÓ LONGER NEEDED
FOR THIS PURPOSE. THE SECOND
PROPOSAL REVERTS ABOUT $4.6
MILLION GENERAL FUND APPROPRIATE
IN 2022. FOR A LANGUAGE ACCESS
PILOT PROGRAM, WHILE SEVERAL
EFFORTS HAVE BEEN MADE TO
IDENTIFY LANGUAGE ACCESS
STRATEGIES FOR PUBLIC MEETINGS,
GOV OPS HAS NOT COMPLETED
PROCUREMENT FOR THESE LANGUAGE
ACCESS SYSTEMS. SO THESE FUNDS
ARE AVAILABLE FOR REVERSION AND
THIS THIRD PROPOSAL REVERTS
$500,000 GENERAL FUND
APPROPRIATED IN THE 2023 BUDGET
ACT FOR LEADERSHIP INITIATIVES.
THE 2020 THREE BUDGET ACT
APPROPRIATED 2 MILLION FOR
LEADERSHIP INITIATIVES, AND IT
HAS BEEN A DETERMINED PORTION OF
THIS FUNDING IS NÓ LONGER NEEDED
FOR THE PURPOSE. IT WAS
APPROPRIATED. COLLECTIVELY THESE
THREE PROPOSALS REPRESENT
AVAILABLE ONE TIME FUNDING AND
OUR APPROPRIATE FOR REVERSION TO
THE GENERAL FUND. GIVEN THE
GENERAL FUND CONDITION WE ARE
AVAILABLE FOR ANY QUESTIONS.
THANK YOU. HM. THANK YOU VERY
MUCH. I CHOOSE TO RAISE HERE. I
CAN'T IMAGINE WHY NOT. THANK YOU
QUESTIONS OR COMMENTS FROM
MEMBERS OF THE SUB COMMITTEE.
HEARING ON THIS ITEM IS HELD
OPEN. WE MOVE TO ITEM TO THE
GOVERNOR'S OFFICE PLANNING AND
RESEARCH TAKE UP ISSUES,
STARTING WITH ISSUE EIGHT ON
DEPARTMENTAL REORGANIZATION,
MAKE YOURSELF COMFORTABLE. STATE
YOUR NAME IN, PLEASE PROCEED
WHEN READY.
GOOD MORNING, GOOD MORNING,
CHAIR PADILLA AND COMMITTEE
MEMBERS. I AM SAMAA, THE
DIRECTOR OF THE GOVERNANCE
OFFICE OF PLANNING AND RESEARCH.
I'M JOINED HERE BY NATALIE
KUFFEL, WHO IS THE PROGRAM
MANAGER FOR Ó P S¼ JUDICIAL
STREAMLINING PROCESS. THANK YOU
FOR THE OPPORTUNITY TO PRESENT
Ó PR S¼ 2024 25 BUDGET. MY
REMARKS WILL COVER ALL OF THE
BUDGET ITEMS THAT ARE ON THE
AGENDA THIS MORNING. I JUST WANT
TO SPARE YOU FROM EACH OF MY
STAFF MAKING INTRODUCTORY
REMARKS. SO THIS YEAR'S THIS
YEAR, Ó PR CONTINUED ITS
CRITICAL WORK. ON LAND USE AND
PLANNING, CLIMATE ADAPTATION AND
RESILIENCY, SUSTAINABLE
COMMUNITY AND ECONOMIC
DEVELOPMENT AND ITS LONG RANGE.
UH, RESEARCH PORTFOLIO. THIS
YEAR'S GOVERNOR'S BUDGET
PROPOSALS CHANGES TO THE
ORGANIZATIONAL STRUCTURE OF OP R
. GIVEN THE SIGNIFICANT GROWTH
THE OFFICE EXPERIENCED OVER
RECENT YEARS. IN RECOGNITION OF
THIS GROWTH AND THE NUMBER OF
PROGRAMS IN INITIATIVES WITHIN
THE DEPARTMENT. THE 2020 THREE
BUDGET, UM BEGAN TRANSITIONING
Ó PR TO A MORE TRADITIONAL
DEPARTMENT THAT RELIES ON STATE
CIVIL SERVICE STRUCTURE. AND
CLASSIFICATION. AND TO FURTHER
UH STREAMLINE EFFORTS AND ENABLE
Ó PR TO FOCUS ON ITS CORE
RESPONSIBILITIES. WE ARE
CURRENTLY EVALUATING SOME OF THE
PROGRAMS, UH, HOUSED IN OUR
OFFICE TO DETERMINE IF OTHER
STATE DEPARTMENTS ARE BETTER
SUITED TO ADMINISTER THOSE
PROGRAMS. THE INTENT OF THIS
EFFORT IS TO RETURN Ó PR TO ITS
CORE MISSION. AS IDENTIFIED IN
THE GOVERNOR'S BUDGET. ONE MAJOR
COMPONENT OF OUR PROPOSAL IS
MOVING THE EXISTING CALIFORNIA
VOLUNTEERS PROGRAM TO AN
INDEPENDENT DEPARTMENT, WHERE IT
CAN CONTINUE ITS FOCUS ON
SERVICE VOLUNTEERISM. UH, AND
THE PROMOTION OF COMMUNITY
ENGAGEMENT THROUGH ITS VARIOUS
PROGRAMS, INCLUDING ITS HALLMARK
COLLEGE CORPS PROGRAM. WE LOOK
FORWARD TO COMING BACK TO YOU
WITH MORE DETAIL. UH ON ON ON
THAT PROPOSAL FOR DOING THE MAY
REVISION. WHILE ACKNOWLEDGING
THE LINEAR FISCAL ENVIRONMENT IT
IS OPERATING IN OPTS,
IMPLEMENTING THE PRIORITIES OF
THE GOVERNOR AND LEGISLATURE. AN
IMPORTANT PIECE OF THIS EFFORT
IS THE ENVIRONMENTAL LEADERSHIP
DEVELOPMENT PROJECT PROGRAM.
THIS PROGRAM ALLOWS FOR LARGE
INFRASTRUCTURE PROJECTS TO BE
UH, CERTIFIED BY THE GOVERNOR
AND RECEIVE EXPEDITED JUDICIAL
REVIEW UNDER THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT, OR
S¼, W. WE UNDERSTAND THE L AND
LEGISLATIVE CONSULTANTS HAVE
ASKED ASK THE ADMINISTRATION IF
IT WILL PURSUE THE PROPOSED
REORGANIZATION. UM WHICH, UM, I,
I WILL NOT INCLUDE MAINTAINING
ALL EXISTING PROGRAMS. BUT MAY
RELOCATE SOME TO OTHER
DEPARTMENTS THROUGH THE LITTLE
HOOVER COMMISSION PROCESS. THE
ADMINISTRATION DOES NOT INTEND
TO USE THIS PROCESS AND WILL
INSTEAD PROPOSE STATUTORY
CHANGES THROUGH THE BUDGET
PROCESS SIMILAR TO OTHER RECENT
REORGANIZATIONS. ONE EXAMPLE.
I'LL GIVE SORT OF MOST AKIN TO
THIS IS THE A 2020 THREE Tð BL
THAT MOVED THE CALIFORNIA
HOUSING FINANCE AGENCY OUT OF
HOUSING AND COMMUNITY
DEVELOPMENT TO ITS OWN ENTITY. I
CAN SAY A NUMBER A LI A LIST OF
OTHER EXAMPLES, BUT I'LL SPARE
YOU OF THAT NOW, BUT HAPPY TO
SHARE THAT IF YOU HAVE ANY
QUESTIONS ADDITIONALLY, THE
GOVERNANCE BUDGET PROPOSES
BUDGET SOLUTIONS TO SIX OF PR'S
PROGRAMS. THIS BUDGET SOLUTIONS
WILL CONTINUE. CONTINUE TO
CONTRIBUTE TO SORRY TO BALANCE
UH, THE STATE'S BUDGET WHILE
ENSURING ENSURING THAT OPR CORE
COMMITMENTS ARE MAINTAINED AND
ROBUST. THIS PROPOSED BUDGET
SOLUTIONS IMPACT THE WORK OF
STRATEGIC GROWTH COUNCIL, STATE
PLANNING AND POLICY DEVELOPMENT.
CALIFORNIA VOLUNTEERS AND THE
OFFICE OF COMMUNITY DEVELOPMENT
PARTNERSHIPS AND STRATEGIC
COMMUNICATIONS ALL UNDERS
UMBRELLA. I AM PROUD OF THE
IMPORTANT WORK THAT Ó PR
PROGRAMS ARE ENGAGING IN AND
LOOK FORWARD TO CONTINUING THAT
WORK WITH THE FUNDING PROPOSED
IN THIS BUDGET. WOULD THAT MY
TEAM AND I ARE HAPPY TO ANSWER
ANY QUESTIONS. YOU MAY HAVE.
THANK YOU. MUCH DIRECTOR. HENRY
N DEPARTMENT OF FINANCE NOTHING
TO ADD. HELLO. LUKE M, WITH THE
LEGISLATIVE ANALYST OFFICE ON
ISSUE SEVEN. THE REORGANIZATION.
WE NOTE THAT A REORGANIZATION
COULD HAVE MERIT GIVEN OP RS
INCREASED RESPONSIBILITY AND
SUBSTANTIAL BUDGET GROWTH OVER
RECENT YEARS, NOTABLY IN 2016 17
. THE BUDGET WAS ONLY 54 MILLION
. BUT THE PROPOSED BUDGET FOR
2425 IS 1.1 BILLION, WHICH IS
ABOUT A 2000% INCREASE. UM IN
ADDITION, REASSIGNING CERTAIN
RESPONSIBILITIES TO ESTABLISH
STATE DEPARTMENTS WITH APPOINTED
UM, DIRECTORS, UM, AND THAT ARE
CONFIRMED BY THE SENATE AS WELL
AS STAFF BY CIVIL SERVICE COULD
IMPROVE TRANSPARENCY AND
ACCOUNTABILITY. HOWEVER
PRESENTING A MAJOR
REORGANIZATION AT THE MAY REVISE
, UM WOULD GIVE THE LEGISLATURE
LITTLE TIME TO REVIEW THE
PROPOSAL TO WEIGH ITS MERITS. UM
THERE'S A PARTICULARLY IMPORTANT
BECAUSE R S¼ RESPONSIBILITIES
INCLUDE MANY KEY LEGISLATIVE
PRIORITIES, SUCH AS CLIMATE
CHANGE, AND, UM S¼ QL
IMPLEMENTATION. GIVEN THESE
CONCERNS, WE RECOMMEND THE
LEGISLATURE DEFER ANY MAJOR
DECISIONS ABOUT CHANGES TO R AND
THE DELIVERY OF STATE SERVICES
UNTIL IT HAS SUFFICIENT TIME TO
REVIEW THE PROPOSAL AND CONSIDER
ALL POTENTIAL OPTIONS AND
RAMIFICATIONS. UM WITH THE CHAIR
LIKE ME TO CONTINUE ON TO ISSUE
A. I BELIEVE WE. YEAH PLEASE
ADDRESS THE DIRECTORS ADDRESS
TESTIMONY TO MOST OF THE ISSUES
BEFORE US, SO LET'S GO AHEAD AND
DO THAT SYMMETRICALLY SO THAT WE
DON'T LOSE, FOLKS. THANK YOU.
UM, SO WHILE UM Ó R LIKELY WILL
NEED SOME ADDITIONAL RESOURCES
TO IMPLEMENT S¼ B 149 FOR
JUDICIAL STREAMLINING. THE
EXTENT OF THE NEW FORECLOSE
REMAINS UNCLEAR. ONLY A HANDFUL
OF APPLICATIONS HAVE GONE
THROUGH THIS PROCESS. UM, AND
NONE HAVE IT GONE THROUGH. 149
EXPANDED PROVISIONS. UM IN
FUTURE YEARS. SOME AMOUNT OF
THIS WORKLOAD ALSO COULD BE
SUPPORTED BY REVENUES FROM FEES
THAT OP R IS CURRENTLY IN THE
PROCESS OF IMPLEMENTING FOR
THESE APPLICATIONS. IN ADDITION,
WE NOTE THAT THE
ADMINISTRATION'S PROPOSAL, UM TO
FUND THIS WORKLOAD IS
INCONSISTENT WITH THE APPROACH
TO OTHER RECENTLY CHAPTERED
LEGISLATION. SPECIFICALLY WITH
THE EXCEPTION OF THIS ONE
PROPOSAL, THE ADMINISTRATION IS
DEFERRING THE CONSIDERATION OF
RESOURCE REQUESTS ASSOCIATED
WITH THE DELIVERY OF OTHER
RECENTLY LEGISLATION AND TELL
THE MAYOR REVISION. WE RECOMMEND
THAT GIVEN THE UNCERTAINTY
AROUND WORKLOAD AND THE LEVEL OF
GENERAL FUND SUPPORT THAT WOULD
BE NEEDED THAT THE LEGISLATURE
WOULD CONSIDER AUTHORIZING THE
FUNDING AND POSITIONS FOR A
SHORTER TIME PERIOD THAN
PROPOSED THAN THE 10 YEARS
PROPOSED BY THE ADMINISTRATION,
FOR EXAMPLE, THE LEGISLATURE
COULD APPROVE FUNDING FOR THREE
YEARS OR DIFFERENT AMOUNT OF
TIME, WHICH WOULD GIVE THE
LEGISLATURE AND THE
ADMINISTRATION TIME TO DETERMINE
WHAT LEVEL OF, UM SUPPORT IS
NEEDED FOR THIS WORKLOAD, BOTH
IN TERMS OF RESOURCES AS WELL AS
GENERAL FUND SUPPORT. IN
ADDITION, WE THINK IT MAKES
SENSE TO CONSIDER THIS PROPOSAL
AS PART OF A LARGER, UM, OVERALL
APPROACH AND PLAN TO
IMPLEMENTING OTHER RECENTLY
CHAPTERED LEGISLATION THAT WAY
THE LEGISLATURE CAN CONSIDER
WITH THE LIMITED RESOURCES
AVAILABLE TO IT. WHAT PRIORITIES
IT SHE WANTS TO FUND IN THE
BUDGET. THANK YOU. THANK YOU TO
THE OFFICE. A COUPLE OF ITEMS
FIRST. WITH RESPECT TO ISSUE 10.
I KNOW THAT THE AGENDA THAT WAS
POSTED LIST SOME FEEDBACK AND
QUESTIONS ON THE STAFF LEVEL.
YOU MIGHT WANNA TAKE A MOMENT
DIRECTOR AND ADDRESS YOURSELF
TOO, AND ALSO ISSUE 11 ADDRESSES
IN THE DOCUMENTATION FOR THE
TODAY'S DOCKET ABOUT OTHER
POTENTIAL AVENUES OF SAVINGS AND
THOUGHT I'D PROVIDE AN
OPPORTUNITY FOR YOU TO ADDRESS
THAT IN THE HEARING AS WELL. YO
JUMPED ISSUE, 10. YES, SIR. WE
HAVE. YOU SO I'LL ASK. YUMI SARA
, EXECUTIVE DIRECTOR OF THE
OFFICE OF COMMUNITY PARTNERSHIPS
AND STRATEGIC COMMUNICATIONS,
SHE COULD PROVIDE YOU MORE
DETAILS. GOOD MORNING. THANK YOU
, MR. CHAIR SENATOR NEL, SENATOR
SMALL CUEVAS. GOOD MORNING. MY
NAME IS YUMI. SARA I'M THE
EXECUTIVE DIRECTOR OF THE OFFICE
OF COMMUNITY PARTNERSHIPS AND
STRATEGIC COMMUNICATIONS. UM ONE
OF THE OFFICERS UNDER OFFICE OF
PLANNING AND RESEARCH. I THINK,
UH, WE MET, UH, LAST YEAR AS
WELL. UM VERY PLEASED TO BE HERE
WITH YOU TODAY. I WAS, UM, ALSO,
UH, WORKED FOR, UH, THIS THIS
SERVICE FOR THE CENSUS. 2020
VERY SUCCESSFUL CAMPAIGN IN OUR
VACCINATE ALL 58 CAMPAIGN. UM
THERE WAS A THERE WERE YOU WANT
ME TO JUST GO THROUGH THE
QUESTIONS? IS THAT GOOD? SO UM,
THERE WAS, THERE WERE, UM,
QUESTIONS AROUND, UH, THE WAY
THAT OUR OFFICE WAS STRUCTURED
AND AROUND THE, UH, THE BUDGET.
UM THE FIRST QUESTION WAS AROUND
THE BREAKDOWN OF THE BUDGET. UH,
ACCORDING TO THE CAMPAIGNS, WE
ACTUALLY JUST SORT OF THE WAY
OUR OFFICE IS STRUCTURED IS
REALLY WE. THE FUNDING IS FOR
THE CORE. INFRASTRUCTURE IT'S
NOT BY CAMPAIGN, SO THAT'S ONE
THING. UH, THE CORE
INFRASTRUCTURE IS CONSIST OF
MAINLY OF OUR TRUSTED MESSENGERS
, WHO ARE OUR COMMUNITY BASED
ORGANIZATIONS. UM AND THEY ARE
THE ONES WHO ARE THE ONES WHO
ARE GOING OUT INTO THE FIELD.
THEY ARE. OUR GRASSROOTS
CAMPAIGNERS WHO ARE IMPLEMENTING
THE CAMPAIGNS, WHETHER IT BE FOR
EXTREME HEAT. UH AND TELLING
FOLKS TO BE CAREFUL OF AND
LETTING THEM KNOW WHAT TO DO IN
CASE OF EXTREME HEAT, UM,
WORKING ON OUR SAVE OUR WATER
CAMPAIGN. AND ALSO WORKING ON
OUR I 10, THE INDIVIDUAL
TAXPAYER. I Dð NUMBER AND JUST
RAISING THE AWARENESS OF THESE
CAMPAIGNS. THAT'S I APPRECIATE
THAT AND APPRECIATE YOU VERBALLY
ADDRESSING IT IN THE HEARING.
ALL RIGHT, UM WE'LL BRING IT TO
THE, UH, SUB DIRECTOR ARE THERE
PARTICULAR FACTORS WE SHOULD BE
AWARE OF, WITH RESPECT TO THE
OVERALL REORGANIZATION AND THE
PLAN TO BRING DETAIL BACK IT MAY
REVISE THAT HAVE PROHIBITED THE
DEPARTMENT FROM PROVIDING DETAIL
AT THIS POINT IN THE BUDGET
PROCESS SUFFICIENT FOR THE
LEGISLATURE TO HAVE SOME ABILITY
TO ADEQUATELY ANALYZE IT. YEAH.
SO TO BE FRANK. WE KNOW SOME OF
THE ONES THAT WE KNOW OF THAT. I
MENTIONED CALIFORNIA VOLUNTEERS.
SO WE WORKED ON THAT, UH TO, UH
UH AND PROPOSE RELOCATING THAT
AND SO ON INDEPENDENTLY AND THE
SIGNIFICANT AMOUNT OF FOCUS OVER
2020 THREE HAS BEEN ON THE
CONVERSION TO CIVIL SERVICE
CLASSIFICATION. THAT IS, UH UH,
A SIGNIFICANT PART OF THAT
CHANGE. NOW WE'RE DELVING INTO
THE DIFFERENT PROGRAMS AS WE ARE
PREPARING TO THE REORG, WHERE ON
ONE HAND IDENTIFYING. SO HOW DO
WE GET BACK TO OUR CORE MISSION
OF LAND USE S¼ CONDUCTING
RESEARCH, UM, AND IN PART OF THE
CHALLENGE, WITH THE NUMBER OF
PROGRAMS THAT WERE ADDED, WE
HAVE EXPANDED SIGNIFICANTLY IN
MULTIPLE AREAS. THAT DISCUSSION
IS UNDERWAY AND I OTHER THAN
THAT. WE'RE YOU KNOW A NUMBER OF
OFFICES PROGRAMS, UH AND THEN
LOOKING TO SEE WHICH DEPARTMENTS
ARE BEST SUITED TO HOUSE THOSE,
SO WE'LL DEFINITELY HAVE THAT
DETAIL FOR YOU BY THE MAY
REVISION AND AGAIN. THIS IS
SIMILAR PROCESS THAT WE HAVE
DONE OVER THE LAST 67. WE
MEANING THE STATE THROUGH THE
BUDGET PROCESS. II. I THINK I
APPRECIATE THAT DIRECTOR. I JUST
WANT TO HIGHLIGHT THE FACT THAT
THIS THAT PROCESS IS NOT NEW,
RIGHT? AND IT WAS ANTICIPATED IN
THE GENERAL SCOPING FOR THE
ORIGINAL APPROPRIATION, AND THEY
HAD THAT CONVERSATION LAST YEAR,
AND I THINK THAT THERE'S AMPLE
TIME TO BE IN A POSITION TO
PROVIDE A FRAMEWORK THAT THE
LEGISLATURE CAN REVIEW IN A
TIMELY FASHION. THAT'S MY ONLY
POINT, AND I LIKE TO AGAIN
EMPHASIZE THAT THESE ARE THE
GOVERNOR'S STAFF. UH AND THE
SAME PROGRAMS WOULD, UH, IT'S
JUST LOOKING AT THE BEST WAY TO
MOVE THOSE AND THERE IS NÓ
SIGNIFICANT IMPLICATION. I ALSO
WANT TO JUST BRIEFLY ASK WITH
RESPECT TO SUPPORT FOR DEALING
WITH S¼ B ONE AND 49 AND S¼ QL
REFORM AND I GET THE UBIQUITOUS
NATURE OF HOW SQ WAS APPLIED,
AND IT'S SORT OF UNIQUE, BUT THE
ADMINISTRATION HAS TAKEN A
POSITION TO HOLD, UH, SUPPORT
FOR ANY ALLOCATION WITH REGARD
TO RECENTLY CHAPTERED.
LEGISLATION. AND THAT'S PRETTY
UNIVERSAL. EXCEPT FOR HERE. DID
YOU WANNA ADDRESS THAT? UH, YES,
I'LL ASK MY, UM UM, JUDICIAL
STREAMLINING PROGRAM MANAGER TO
GIVE YOU MORE DETAILS, BUT IT'S
IMPORTANT TO NOTE THE UNIQUE
ASPECT OF THIS JUDICIAL
STREAMLINING THE RE THE REASON
IT IS, UH IMPORTANT TO DO IT NOW
IS WE ARE IN THE MIDST OF AS YOU
KNOW, SIGNIFICANT, UNPRECEDENTED
INVESTMENTS IN INFRASTRUCTURE
FROM FEDERAL AND STATE. THIS IS
ONCE IN A LIFETIME OPPORTUNITY,
AND THE GOVERNOR HAS BEEN VERY
ADAMANT THROUGHOUT THE STATE
AGENCIES IN TERMS OF EXPEDITING
OUR PERMITTING PROCESS AND
FINDING WAYS TO STREAMLINE
WITHOUT COMPROMISING THE CORE
ENVIRONMENTAL REVIEW PROCESS,
AND THIS IS A VERY IMPORTANT
PROGRAM AS A RESULT. OF THAT, AS
WE SPEAK. TODAY THE GOVERNOR HAD
A PRESS RELEASE THE FOURTH AND
CENTRAL PROJECT IN LOS ANGELES.
MORE THAN 1500 UNITS OF HOUSING
ABOUT 215 AFFORDABLE HOUSING $2
BILLION INVESTMENT 10,000 JOBS.
THAT'S THE REASON WHY THIS IS
IMPORTANT AND A PRIORITY. UH FOR
THE GOVERNOR. TO BE CLEAR. I AM
I AM APPRECIATIVE AND A FAN OF
MANY OF THE STRENGTHENING THAT'S
BEEN DONE WITH THE SCOPE HERE
FOR A LONG TIME AND OFTEN TO
GREAT BENEFIT. UH, I THINK THAT
SAID, I'LL I'LL ASK OTHER
MEMBERS OF THE SUB THAT HAVE
ADDITIONAL QUESTIONS OR COMMENT.
SENATOR NEO UM MOVING BACKWARD.
FIRST OF ALL WITH REGARD TO THE,
UH UM. COMMUNITY PARTNERSHIPS
AND STRATEGIC COMMUNICATIONS.
THE REVERSION STILL LEAVES A
SUBSTANTIAL AMOUNT OF MONEY FOR,
UH UH UH, MEDIA AND OUTREACH
CAMPAIGNS AND SOMEHOW THAT JUST
DOESN'T SEEM TO ME TO RISE TO
THE LEVEL OF MISSION. CRITICAL
EFFORTS IN THE FACE OF SUCH A
HUGE DEFICIT THAT WE'RE FACING.
SO UH, PERHAPS A LITTLE BIT MORE
ANALYSIS AS TO THOSE
EXPENDITURES AS UH, UH, IS
RELEVANT, BUT, UH, YOU MENTIONED
AND GOING BACK TO THE
REORGANIZATION ISSUE THAT, UH,
YOU WILL NOT BE GOING THROUGH
THE REVIEW BY THE LITTLE HOOVER
COMMISSION THAT WHICH IS
REQUIRED. BY GOVERNMENT CODE
SECTION, 8500 AND 23, WHICH
WOULD GO TO THE LITTLE HOOVER
FOR AN ANALYSIS WOULD AS I
UNDERSTAND IT, I THINK BE
PRECEDED BY A DRAFTING OF
PROPOSED LEGISLATION BY LEDGE
COUNSEL, UH AND WOULD BE A MORE
DELIBERATIVE PROCESS TOWARD THAT
REORGANIZATION. AND I THINK YOU
SAID YOU WERE NOT. YOU WERE
CHOOSING NOT TO GO THROUGH THAT.
AND HOW DO YOU JUSTIFY THAT? SO
I I'LL HAVE, UH, DEPARTMENT OF
FINANCE WHO WHO'S HAD EXPERIENCE
IN THE PAST. BUT WHAT I NOTED,
IS THIS IS NOT ANY DIFFERENT
FROM A NUMBER OF SIMILAR
REORGANIZATIONS THAT WERE DONE
PREVIOUSLY THROUGH THE BUDGET
PROCESS, AND THERE ARE A NUMBER
OF EXAMPLES AND ONE IN THE
NUMBER TWO ARE REEMPHASIZE AGAIN
. THIS IS THIS OUR GOVERNMENT,
UH, GOVERNORS WITHIN THE, UM,
UH, OFFICE THAT ARE BEING MOVED
TO DIFFERENT, UH, PLACES WITHOUT
BUDGETARY IMPACT FROM THAT
PERSPECTIVE, SO WE FELT THAT IT
IS APPROPRIATE TO GO THROUGH THE
Tð BL PROCESS, BUT I CAN HAVE
DEAL WITH, UH, SPEAK TO SORT OF
THE HISTORY AND EXPERIENCE OF
SIMILAR PROCESSES. UH, GOOD
MORNING. AMY JARVIS'S DEPARTMENT
OF FINANCE. UM AND MR SAFA
ALREADY SPOKE TO WE HAVE DONE
THIS THROUGH. EXCUSE ME.
HISTORICALLY SUMM
REORGANIZATIONS HAVE BEEN
ACHIEVED THROUGH POLICY BILLS OR
PRIOR TRR BILLS. AND WHILE UM,
HE MENTIONED THE CALIFORNIA
HOUSING FINANCE AGENCY. A COUPLE
OF OTHERS WERE THE CREATION OF
THE OFFICE OF YOUTH AND
COMMUNITY RESTORATION IN 2021,
AS WELL AS THE BOARD OF
ENVIRONMENTAL SAFETY. UM THE
DEPARTMENT OF CANNABIS CONTROL,
UM, THAT CAN ALSO SIMILARLY
CONSOL. IT CREATED THE
DEPARTMENT AND THEN CONSOLIDATED
PROGRAMS FROM THREE DIFFERENT
DEPARTMENTS. UM, AND THEN
ANOTHER ONE IS THE OFFICE OF
DIGITAL INNOVATION AND THEN
SUBSEQUENTLY, THE CREATION OF
THE OFFICE OF DATA AND
INNOVATION JUST THIS LAST YEAR.
UM, WE RECOGNIZE THE
LEGISLATURE'S CONCERNS, BUT IT
IS INTENTIONAL. UM, I THINK
THERE IS SOME CONCERN ABOUT THE
MAY REVISION PROCESS AND NOT
HAVING A LOT OF TIME. UM I THINK
OUR INTENT IS TO NOT IT'S A NET
ZERO PROPOSAL AT THIS POINT, UM,
ANYTHING WE MOVE SHOULD NOT
GENERATE NEW OUR INTENT WITH THE
CREATING THE UM, CALIFORNIA
VOLUNTEERS AS A SEPARATE
DEPARTMENT, IT'S JUST CONTINUE
TO RELY ON PR S¼ ADMINISTRATIVE
STRUCTURE, UM, WITH MAYBE SOME
SLIGHT MODIFICATIONS, SO WE'RE
NOT INTENDING THIS TO BE A COST
INCREASE PROPOSAL AT THE MAY
REVISION. I'M NOT SO MUCH
ADDRESSING THE ISSUE OF WHETHER
IT BE A COST INCREASE. IT'S THE
APPROPRIATE WAY OF GOING ABOUT A
REORGANIZATION. AND TO THE
EXTENT THAT THE JUSTIFICATION IS
THAT WE'VE DONE IT THIS WAY IN
THE PAST. I'M NOT SURE THAT WINS
THE DAY IN MY MIND. PERHAPS THE
LEGISLATURE SHOULD HAVE PUSHED
BACK A LITTLE BIT MORE BEFORE.
SO UH, I, UH, II I QUESTIONED.
UH UH, THAT PROCEDURE AND ALSO
IN THE CONTEXT OF A VERY
DIFFICULT BUDGET. BUT I HAVE
ANOTHER SORT OF MORE BASIC
QUESTION, AND THAT IS
HISTORICALLY OPR HAS BEEN, UH,
THE EXECUTIVE BRANCH'S THINK
TANK. IF YOU WILL, AND, UH, NOT
A PARTICULARLY LARGE
ORGANIZATION THAT'S GONE THROUGH
A SIGNIFICANT METAMORPHOSIS IN
THE LAST FEW YEARS, ONE WOULD
SAY IT IS ALREADY A DE FACTO
REORGANIZATION. BUT I DIGRESS.
UM BUT THE BASIC QUESTION, UH,
IS, UH, THIS TANK WITHIN THE
EXECUTIVE BRANCH. THAT WAS PR
WON'T EXIST ANYMORE. DOES THAT
MEAN THAT YOU DON'T SEE A NEED
FOR THAT MORE SPECIALIZED,
SMALLER FUNCTION? NÓ. THAT'S NOT
ACTUALLY THE CORE PURPOSE IS TO
REALLY FOCUS ON ITS CORE
FUNCTION AND CORE MISSION, WHICH
IS AROUND CHARTING THE FUTURE
FROM LAND USE CLIMATE RESEARCH
PERSPECTIVES. UH, THE, UH, ONE
OF THE CORE FUNCTION. IT ALSO
INCLUDES S¼ AND WRITING
GUIDELINES ON AROUND S¼,
MAINTAINING THE CLEARING HOUSE
FOR S¼ A SO A LOT OF THE CORE
FUNCTIONS AROUND CONDUCTING
RESEARCH AND UH UH, REALLY
CHARTING THE FUTURE AND ADVISING
RELEVANT AGENCIES, THE
LEGISLATURE AND THE GOVERNOR
WOULD CONTINUE AND OUR PROPOSAL
IS TO ACTUALLY FOCUS BACK TO ITS
CORE FUNCTION. UH AND MISSION
VERSUS AS YOU NOTED. NUMBER OF
PROGRA MMES THAT WERE ADDED OVER
THE LAST FEW YEARS. I THINK YOU
HEARD THE L A Ó NOTES FROM 54
TO 1.1 BILLION THAT CAME THROUGH
THE LEGISLATIVE PROCESS OVER THE
LAST FEW YEARS IN TERMS OF THAT
INCREASE, BUT I'LL ASSURE YOU
THE INTENT IS TO ACTUALLY THOSE
ARE NOT GOING TO GO AWAY. IN
FACT, WE WANNA, UH, ELEVATE THAT
I HAVE MY OWN BIAS. I COME FROM
A LAND USE PERSPECTIVE. AND I
WANT TO BE THIS IS I'M THE FIRST
DIRECTOR WITH A LAND USE
BACKGROUND FOR AN OFFICE SINCE
1970 WAS ESTABLISHED TO BE THE
STATE'S COMPREHENSIVE PLANNING
AGENCY. SO WHAT WE'RE DOING IS
TRYING TO GET IT BACK TO THAT
SORT OF CORE. UH CORE FUNCTIONS,
BUT I'LL ASSURE YOU THAT THAT IS
NOT GOING TO GO AWAY. COLOR ME
SKEPTICAL. SENATOR LÀ SALLE
HERE, SMALLWOOD WITH US. I
APPRECIATE, UH, THE OVERVIEW AND
LOOKING FORWARD TO THE REPORT TO
COME. UM ONE OF THE THINGS THAT
STRIKES ME IN OUR, UH, STATE
GOVERNMENT AS A NEW LEGISLATURE,
AND THIS IS MY FIRST BUDGET
HEARING TO PARTICIPATE IN. I'M
VERY EXCITED ABOUT THIS. UM, BUT
ONE OF THE THINGS THAT STRIKES
ME IS JUST HOW SO OFTEN, UM, OUR
WORK CAN BE SILOED RIGHT WHERE
WE DON'T LEARN FROM THE OTHER.
SORT OF PARTNERS THAT ARE
LOOKING AT DIFFERENT ASPECTS OF
ONE THING AND SHARE CONVERSATION
CONTINUES AS YOU'RE THINKING
ABOUT THIS RESTRUCTURING. WHAT
ARE THE THINGS THAT ARE GOING TO
BE IMBEDDED SO THAT LAND USE,
YOU KNOW, CAN INFORM THE CLIMATE
WORK SO THAT THE CLIMATE WORK
CAN INFORM THE CAMPAIGNS? I
JUST, YOU KNOW, I THINK WE NEED
TO AWAITED ADDRESS. OUR RESOURCE
QUESTION IS, HOW DO WE ACTUALLY
STREAMLINED AND CREATE A SYNERGY
WHERE WE'RE NOT REPLICATING AND
DUPLICATING, BUT WE'RE SHARING
AND ADVANCING. SO I'M JUST
CURIOUS HOW YOU DO THAT. AND
THEN ON THE POINT THAT WAS
MENTIONED ABOUT THE WORK THAT IS
HAPPENING ON THE OUTREACH
CAMPAIGNS. I WANT TO SAY HOW
IMPORTANT IT IS AND COMING FROM
COMMUNITIES THAT ARE VULNERABLE,
REPRESENTING SOUTH CENTRAL LOS
ANGELES. OUR PEOPLE NEED TO KNOW
THAT THE STATE IS DOING WORK.
THEY NEED TO SEE US. THEY NEED
TO HEAR US. AND UNFORTUNATELY
WITH SO MUCH HAPPENING IN THE
AVERAGE RESIDENT'S LIFE, IT'S
HARD FOR FOLKS TO ACTUALLY GO
AND FIND THAT INFORMATION WHEN
THEY MIGHT BE WORKING THREE JOBS
, FOR EXAMPLE, OR THEY'RE TRYING
TO TAKE CARE OF THEIR KIDS. THIS
PROGRAM TO CUT THAT PROGRAM
LIMITS THEIR ACCESS TO THEIR OWN
GOVERNMENT, AND I HAVE CONCERNS
ABOUT THAT. AND HOPE TO HEAR
MORE ABOUT HOW THAT WILL BE
ADDRESSED. AND HOW DO WE MAKE
SURE THAT WE PRESERVE THE
VEHICLES AND THE CHANNELS FOR
OUR RESIDENTS TO NOTE THAT THEIR
GOVERNMENT IS WORKING FOR THEM?
SO THANK YOU, SENATOR. BOTH GOOD
QUESTIONS ON THE FIRST ONE. I
WANT TO NOTE IN ADDITION TO YOUR
QUESTION, SENATOR AS WELL. AT
ONE OF THE CORE FUNCTION THAT
GREW WAS IN A IN THE EIGHTIES,
THE CREATION OF THE STRATEGIC
GROWTH COUNCIL. THIS IS THE BODY
THAT IS HAS SEVEN STATE AGENCY
SECRETARIES THAT MAKE UP THE
COUNCIL OR PR DIRECTOR AND I'VE
BEEN THE CHAIR OF THAT THAT HAS
BEEN ONE OF THE MOST EFFECTIVE
FUNCTION IN WHICH CROSS AGENCY
COLLABORATION AND BREAKING DOWN
SILOS IN STATE GOVERNMENT IN HOW
WE DELIVER SERVICE AND ADDRESS
PRIORITY ISSUES FROM AFFORDABLE
HOUSING THROUGH EQUITY ISSUED
TECHNICAL ASSISTANCE FOCUSED ON
CLIMATE AND CLIMATE RESILIENCY.
THAT CORE OF THAT FUNCTION WOULD
STAY WITHIN OUR PR SO THAT WILL
CONTINUE TO BE THERE TO, UH,
CONTINUE THAT THAT SERVICE THAT
ACTUALLY ENHANCES THE CORE
MISSION OF, UH, THE OPR FROM ITS
ORIGINAL STATUTE, WHICH IS
REQUIRED THE OFFICE TO BE THE
CONDUIT TO ALL STATE AGENCIES TO
MAKE SURE THAT CLIMATE ECONOMIC
DEVELOPMENT, HIGH ROAD JOBS
POLICIES RELEVANT TO THAT ARE
WELL COORDINATED ACROSS STATE
AGENCIES. I CAN'T THINK OF ANY
BETTER EXAMPLE. THAN THE SGC
STRUCTURE. NATIONALLY THAT
ACTUALLY DOES THAT AND THE
GOVERNOR HAS BEEN PUSHING US TO
IN THAT END, NOT ONLY TO LOOK AT
BREAKING DOWN SILOS ACROSS
AGENCIES. BUT TO REALLY THINK
HOLISTICALLY ABOUT EVERY SINGLE
POLICY INITIATIVE. HOUSING IS
NOT JUST ABOUT HOUSING. IT'S
ABOUT CLIMATES ABOUT EQUITY.
IT'S ABOUT ACCESS TO
OPPORTUNITIES ABOUT SUPPORTING
JOBS. SO THAT'S THE KIND OF
COORDINATION THAT WE ENGAGE IN
THROUGH THAT THAT BODY. ON THE
SECOND ONE AND THE OFFICE OF
COMMUNITY PARTNERSHIPS AND
STRATEGIC COMMUNICATIONS THAT
GOVERNOR'S BUDGET IS NOT REALLY
SIGNIFICANTLY CUTTING THAT BACK.
OUR PROPOSAL IS NOT THOSE
FUNCTIONS WILL END THE BULK OF
THE WORK AROUND COMMUNITY
ENGAGEMENT AND AS THE EXECUTIVE
DIRECTOR MENTIONED, UM, TRUSTED
MESSENGERS. THERE'S NOT A SINGLE
EXAMPLE IN THE COUNTRY WHERE
COMMUNITY COMMUNITY BASED
ORGANIZATIONS HAVE A TABLE ARE
AT THE TABLE NOW AS PART OF AN
ONGOING ENGAGEMENT WITH
GOVERNMENT MORE THAN 40
LANGUAGES. UM ARE USED THROUGH
THAT PROCESS SO THAT WE IN THE
LEGISLATURE AND THE GOVERNOR
COULD ADVANCE THE STATES
PRIORITY ISSUES THROUGH THAT
MECHANISM WHERE PEOPLE ON THE
GROUND WHO ACTUALLY DEAL WITH
THE ISSUES WHETHER IT'S CLIMATE
CHANGE, FLOOD HEAT ARE THE RIGHT
PEOPLE WHO CAN ACTUALLY
COMMUNICATE THOSE ISSUES ON THE
GROUND, SO THOSE FUNCTIONS ON
THE GOVERNANCE PROPOSED BUDGET
OR NOT. SIGNIFICANTLY REDUCED.
THANK YOU SENATORS ANYMORE ON
THIS ITEM DIRECTOR. DO YOU HAVE
ANY ADDITIONAL PRESENTATION? I
DIDN'T MEAN TO CUT YOU OFF
EARLIER. WHEN I MOVED YOU AHEAD.
WE FEEL YOU'VE HAD THE
OPPORTUNITY TO ADEQUATELY
ADDRESS IT. THANK YOU VERY MUCH,
BOTH WITH RESPECT TO ISSUE
EIGHT. ISSUE 11. THOSE ARE
INFORMATION ONLY ITEMS. THE
OTHER ITEMS WILL BE HELD OPEN
THAT WILL TAKE US TO THE
DEPARTMENT OF CANNABIS CONTROL.
HMM HMM. HMM.
SHIFT CHANGE. REMEMBER THOSE
DAYS? HEY. WE ARE HAVING SOME
ATTENDEES EXIT THE HEARING ROOM,
SO BEAR WITH US FOR JUST A
MINUTE AND THEN WHEN YOU GET
SETTLED IN READY OKAY? ALL
RIGHT, PLEASE. STATE YOUR NAME
FOR THE RECORD. PROCEED WHEN
READY. THANK YOU, MR CHAIR AND
HONORABLE MEMBERS OF THE
COMMITTEE. MY NAME IS ANGELA
HILL AND I SERVE AS DEPUTY
DIRECTOR OF GOVERNMENT AFFAIRS
FOR THE DEPARTMENT OF CANNABIS
CONTROL LEGISLATION FORMED THE
DEPARTMENT IN JULY. 2021 BY
CONSOLIDATING CALIFORNIA'S THREE
CANNABIS LICENSING PROGRAMS INTO
A SINGLE REGULATORY BODY TO
CENTRALIZE AND STREAMLINE
COMMERCIAL OVERSIGHT. THE
DEPARTMENT IS TASKED WITH
LICENSING AND REGULATING
CANNABIS BUSINESSES AND
ENFORCING AGAINST THE ILLEGAL
MARKET. THE DEPARTMENT ALSO
OVERSEES COMPLIANCE WITH
IMPORTANT PRODUCT SAFETY
REQUIREMENTS IN THE COMMERCIAL
CANNABIS MARKET AND IS BROKEN UP
INTO 12 DIVISIONS WITH 639
AUTHORIZED POSITIONS. THE
DEPARTMENT HAS ONE BUDGET
PROPOSAL BEFORE YOU TODAY FOR
CONSIDERATION. WHICH REQUESTS
ONGOING RESOURCES TO SUPPORT
FIVE POSITIONS WITHIN THE
LABORATORY SERVICE DIVISION AND
TWO POSITIONS WITHIN THE LEGAL
AFFAIRS DIVISION. THE PROPOSAL
HAS AN ESTIMATED COST OF 8.2
MILLION IN FISCAL YEAR 2024 2025
8.1 MILLION IN FISCAL YEAR 2025,
2026 AND 1.3 MILLION ONGOING
BEGINNING IN FISCAL YEAR 2027
2028 I WILL FIRST DISCUSS THE
CRITICAL NEED FOR THE FIVE
REQUESTED POSITIONS WITHIN THE
LABORATORY SERVICES DIVISION.
THE LABORATORY SERVICES DIVISION
IS RESPONSIBLE FOR THE
REGULATORY OVERSIGHT AND
COMPLIANCE OF CALIFORNIA'S
LICENSE TESTING LABORATORIES.
THE LABORATORY SERVICES DIVISION
REVIEWS LICENSE APPLICATIONS FOR
LABORATORY LICENSES, CONDUCTS
ROUTINE INSPECTIONS.
INVESTIGATES COMPLAINTS, TAKES
ENFORCEMENT ACTIONS AND CONDUCT
INVESTIGATIVE SAMPLE ANALYSES.
THESE RESPONSIBILITIES ARE
CRITICAL IN OUR EFFORTS TO
PROTECT CONSUMER SAFETY, AND THE
FIVE REQUESTED LABORATORY
POSITIONS WILL BETTER EQUIP THE
DEPARTMENT TO BUILD THE CAPACITY
OF OUR STATE LAB TO TEST FOR ALL
TYPES OF PRODUCTS. AND IDENTIFY
CONTAMINANTS ACROSS THE SUPPLY
JEAN SCALING OUR INVESTIGATIVE
CAPABILITIES TO SUPPORT MORE
COMPREHENSIVE PRODUCT AND LAB
OVERSIGHT. IN ADDITION TO THE
RESOURCES NECESSARY TO SUPPORT
THE CORE FUNCTIONS OF THE
LABORATORY DIVISION. THE
DEPARTMENT IS ALSO REQUESTING
RESOURCES TOWARDS LEGAL AFFAIRS
DIVISION. THE LEGAL AFFAIRS
DIVISION IS RESPONSIBLE FOR
PROVIDING CRITICAL LEGAL
SERVICES FOR THE DEPARTMENT'S 12
DIVISIONS AND EXECUTIVE OFFICE.
THESE LEGAL SERVICES INCLUDE
BUILDING ENFORCEMENT CASES,
PROVIDING LEGAL COUNSEL DRAFTING
AND REVIEWING LEGAL DOCUMENTS
REPRESENTING THE DEPARTMENT AND
ADMINISTRATIVE ACTIONS AND
APPEALS AND RESPONDING TO PR
REQUESTS JUST TO NAME A FEW THAT
YOU REQUESTED POSITIONS FOR THE
LEGAL AFFAIRS DIVISION WILL
ENHANCE THE DEPARTMENT'S
CAPACITY FOR ENFORCEMENT CASES
ALLOW FOR PROPER SUPERVISION OF
ATTORNEYS. AND DEDICATED SUPPORT
STAFF TO MANAGE ADMINISTRATIVE
DUTIES THAT ARE CURRENTLY BEING
ABSORBED BY OUR ATTORNEYS. DUE
TO INSUFFICIENT RESOURCES. THE
LABORATORY AND LEGAL DIVISIONS
ARE EXPERIENCING DELAYS IN THEIR
WORK, SUCH AS TESTING METHOD
DEVELOPMENT. PERFORMING SAMPLE
TESTING, PROCESSING, LEGAL
DOCUMENTS AND BUILDING
ENFORCEMENT CASES, ABSENT
APPROVAL FOR THE SEVEN REQUESTED
POSITIONS. THE DEPARTMENT WILL
FALL SHORT AND IT'S MANDATED
OBLIGATIONS IN A TIMELY AND
EFFECTIVE MANNER, WHICH CAN
ULTIMATELY IMPACT OUR ABILITY TO
PROTECT CONSUMER HEALTH AND
SAFETY. IN ADDITION TO THESE
REQUESTED POSITIONS, THE
DEPARTMENT REQUEST THREE YEAR
LIMITED TERM LITIGATION AND
HEARING FUNDING. THROUGH FISCAL
YEAR. 2026 2027. THIS FUNDING
INCLUDES 2.7 MILLION FOR
LITIGATION EXPENSES, BUT THE
OFFICE OF THE ATTORNEY GENERAL
AND 4.1 MILLION FOR ANTICIPATED
COST WITH THE OFFICE OF THE
ADMINISTRATIVE HEARINGS. THIS
FUNDING DIRECTLY SUPPORTS THE
DEPARTMENT'S ABILITY TO TAKE
CRITICAL COMPLIANCE AND
LICENSING ACTIONS, WHICH ARE
CENTRAL TO OUR CORE MISSION OF
PROTECTING CONSUMERS AND
UPHOLDING THE INTEGRITY OF THE
LICENSED MARKET. THIS FISCAL
YEAR, THE DEPARTMENT HAS
SIGNIFICANTLY INCREASED ITS
COMPLIANCE ACTIONS AND WILL
CONTINUE THIS TRAJECTORY INTO
THE NEXT FISCAL YEAR, WHICH WILL
INCREASE OUR ADMINISTRATIVE
HEARING COSTS. ADDITIONALLY THE
DEPARTMENT IS INVOLVED IN
ONGOING CIVIL LITIGATION AND
WITHOUT ADEQUATE INITIAL FUNDING
FOR THE DOJ. THE DEPARTMENT MAY
BE REQUIRED TO DELAY TAKING
CRITICAL ENFORCEMENT ACTIONS.
EVEN WITH THE FUNDING WE ARE
REQUESTING, WE BELIEVE ARE
PROTECTED. PROJECTED FUNDS MAY
UNDERESTIMATE OUR ACTUAL COSTS
FOR DOJ ENGAGEMENT AND
ADMINISTRATIVE HEARINGS. TO BE
ADEQUATELY PREPARED. FOR THIS
SCENARIO. WE HAVE INCLUDED
PROVISIONAL LANGUAGE TO ALLOW US
TO RETURN TO THE LEGISLATURE
WITHIN THIS THREE YEAR PERIOD IN
REQUEST IN EXPENDITURE INCREASE
IN THE EVENT THAT OUR LITIGATION
AND HEARING COSTS OUTPACE OUR
PROJECTIONS. I THANK YOU FOR
YOUR ATTENTION AND CONSIDERATION
OF THE DEPARTMENT'S REQUEST. I'M
JOINED BY THE DEPUTY DIRECTOR OF
THE LEGAL AFFAIRS DIVISION, TAMA
COLSON TO ANSWER ANY QUESTIONS
THE COMMITTEE MAY HAVE THANK YOU
VERY MUCH. DEPARTMENT OF
FINANCE. YEAH ANDREW HONG
DEPARTMENT FINANCE ECHOED THE
COMMENTS. THE DEPARTMENT'S MADE
AND ALSO WANT TO PROVIDE COMMENT
ON THE ALEJO'S ANALYSIS THAT'S
PROVIDED IN THE AGENDA AS IT'S
RELATED TO THE DEPARTMENT'S
REQUEST FOR AUTHORITY TO COVER
LEGAL SERVICES COSTS SO DUE TO
THE UNKNOWN NATURE AND
COMPLEXITY OF LEGAL WORK IN THE
CANNABIS SPACE, THE DEPARTMENT
IS REQUESTING TO CONTINUE ITS
APPROPRIATION OF 2.7 MILLION FOR
LITIGATION EXPENSES. WHICH WAS
AUTHORIZED THROUGH 2324 AND WAS
PREVIOUSLY PROVIDED TO
DEPARTMENTS FORMER TO THE
DEPARTMENT'S FORMER LEGACY
DEPARTMENTS. THE DEPARTMENT
ACKNOWLEDGES THAT POTENTIAL OHH
WORKLOAD HAS BEEN LESS THAN
PREVIOUSLY PROJECTED, AND
THEREFORE IS REQUESTING AN
AUGMENTATION OF 4.1 MILLION FOR
OHH EXPENSES, WHICH IS A
REDUCTION FROM THE PREVIOUSLY
APPROPRIATED 8.6 MILLION.
ALTHOUGH THE DEPARTMENT IS
REQUESTING PROVISIONAL LANGUAGE
THAT WOULD ALLOW IT TO REQUEST A
MIDYEAR AUGMENTATION TO MEET ITS
LEGAL SERVICES COSTS. THE
PROVISIONAL LANGUAGE AS PROPOSED
IS INTENDED TO PROVIDE THE
DEPARTMENT A PATHWAY TO ADDRESS
DOJ AND OHH RELATED WORK LOAD IN
THE CASE EXPENSES EXCEED THE
DEPARTMENT'S ESTIMATED COSTS AND
REQUESTED BUDGET AUTHORITY.
THANK YOU, ELLIOT. THANK YOU, MR
CHAIR. JARED SUPPORT WITH THE L
A O OR THIS PROPOSAL,
RECOMMENDING THAT THE
LEGISLATURE APPROVED THE
REQUESTED RESOURCES FOR THE
LEGAL AFFAIRS AND LABORATORY
SERVICES DIVISIONS, AS WELL AS
THE PROPOSED PROVISIONAL
LANGUAGE FOR THE LITIGATION AND
ADMINISTRATIVE HEARING COSTS. WE
ARE, HOWEVER, RECOMMENDING THAT
THE LEGISLATURE REDUCED THE
GOVERNOR'S PROPOSAL FOR, UH,
ADMINISTRATIVE SORRY
ADMINISTRATIVE HEARING COSTS AND
ATTORNEY GENERAL COST
SPECIFICALLY, WE'RE RECOMMENDING
REDUCING THE ATTORNEY GENERAL
COST FROM 2.7 MILLION TO 1.2
MILLION AND THE ADMINISTRATIVE
HEARING COST FROM 4.1 MILLION TO
23,000. IN OUR ASSESSMENT, WE
FOUND THAT THE DEPARTMENT'S
PROPOSAL WAS SIGNIFICANTLY
HIGHER THAN PAST EXPENDITURES
AND ARE RECOMMENDED AMOUNTS WITH
MORE CLOSELY ALIGNED WITH PAST
EXPENDITURES, WHILE ALSO
ALLOWING SOME BUFFER TO ACCOUNT
FOR POTENTIAL GROWTH IN THE
FUTURE. WE BELIEVE THAT THESE
REDUCED AMOUNTS WOULD REDUCE THE
POTENTIAL THAT THERE'S EXCESS
EXPENDITURE AUTHORITY THAT COULD
BE UNSPENT AND REDIRECTED
WITHOUT LEGISLATIVE OVERSIGHT,
AND ULTIMATELY, WE DO
ACKNOWLEDGE THAT THESE COSTS MAY
INCREASE AND THEY ARE UNCERTAIN,
WHICH IS WHY WE ARE RECOMMENDING
APPROVING THE PROVISIONAL
LANGUAGE BECAUSE THAT WOULD
ALLOW THE DEPARTMENT SOME
FLEXIBILITY SHOULD ADDITIONAL
COST MATERIALIZE ABOVE AND
BEYOND THESE LOWER RECOMMENDED
AMOUNTS, AND I'M HAPPY TO ANSWER
ANY QUESTIONS. THANK YOU VERY
MUCH. WITH RESPECT TO THE OFFICE
OF ADMINISTRATIVE HEARING.
THAT'S A LITTLE BIT OF A DELTA
AND I APPRECIATE THE FLEX OF THE
LANGUAGE, BUT CAN THE APARTMENT
EXPOUND A LITTLE BIT ON HOW YOU
FORMULATE OR ASSESS FUTURE
POTENTIAL WORKLOAD AND
EXPENDITURES, PARTICULARLY ON
THE ON THE LEGAL SERVICES AND
PARTICULARLY WITH RESPECT TO THE
OPPOSITE ADMINISTRATOR HERE,
ADMINISTRATIVE HEARINGS. WE TAKE
A LOOK AT HOW MANY CASES WE
THINK WILL BE TAKING IN TERMS OF
COMPLIANCE ACTION AND WHAT
PERCENTAGE OF THOSE WE THINK,
WOULD ACTUALLY BE CHALLENGED
SUCH THAT THEY WOULD GO TO A
HEARING. UM THIS YEAR, ONE OF
THE WAYS THAT WE DID THAT
BECAUSE WE HAD MORE REAL NUMBERS
IN SOME OF OUR PAST YEARS. DO
THE NEWEST OF THE DEPARTMENT.
UM, WE LOOKED AT THE NUMBER OF
NOTICES TO COMPLY THAT WE ISSUED
AND THOSE ARE ESSENTIALLY
NOTICES THAT SAY, GET INTO
COMPLIANCE, OR WE WILL MOVE
FORWARD WITH ANOTHER ACTION AND
ESTIMATED A CERTAIN PERCENTAGE
OF THOSE WOULD GO TO HEARING I
WOULD REQUEST A HEARING AND THEN
WE THEN WENT TO AWAY H AND WE'VE
DETERMINED WHAT PERCENTAGE WE
THOUGHT WOULD ACTUALLY GO TO
FULL HEARING OHH, WHICH IS A
SIGNIFICANT NUMBER OF HOURS AS
WELL AS THOSE THAT WE THOUGHT
WOULD BE FILED WITH THE OHH BUT
POTENTIALLY SETTLED AND NOT GO
TO A FULL HILLARY. THEREFORE
THEY WOULD BE SPENDING MUCH
LOWER NUMBERS OF HOURS ON THOSE
CASES. AND SO THAT WAS THE
METHODOLOGY THAT WE USED. WE
ALSO LOOKED AT OUR PIPELINE. AS
MANY OF YOU KNOW WE ARE IN THE
NEXT YEAR TO WE ARE PHASING OUT
THE PROVISIONAL LICENSES THAT
ARE IN THE CODE RIGHT NOW, WHICH
MEANS THE ANNUAL LICENSES WILL
INCREASE AS WELL AS OUR DENIALS
FOR ANNUAL LICENSES AS WE'RE
WORKING OUR WAY THROUGH THOSE
REMAINING APPLICATIONS. UM AND
SO WE TOOK A PERCENTAGE
CONSISTENT WITH THE PERCENTAGE
WE USED LAST YEAR TO PROJECT THE
NUMBER OF DENIALS THAT WE
BELIEVED WOULD BE GOING OVER TO
O H AND AGAIN THE SAME WAY WE
DID WITH COMPLIANCE ACTIONS. WE
DETERMINED THE PERCENTAGE BASED
ON, YOU KNOW, EXPERIENCE AND IN
OTHER STATE GOVERNMENT ENTITIES.
WHAT WE THOUGHT WOULD BE THE
PERCENTAGE THAT WOULD ACTUALLY
GO TO A FULL HEARING AND THOSE
THAT WOULD HAVE A SHORTER STATE.
OH, AAH! AND THEN, OF COURSE, WE
TIMES THAT BY THE NUMBER OF WHAT
THEY CHARGE US PER HOUR AND GOT
TO OUR FINALS THERE, UM SO THAT
IS HOW WE CALCULATED THAT YEAH,
THAT'S SIMPLE. ARE THERE
QUESTIONS FROM MEMBERS? THE
COMMITTEE. THANK YOU. YEAH. HMM.
ALRIGHT LETS YOU 12 B HELD OPEN
THAT BRINGS US TO ABC DEPARTMENT
OF ALCOHOL BEVERAGE CONTROL.
FIRST U 13 TEAM MAINTENANCE AND
OPERATIONS AND FILE CONVERSION.
WELCOME AND PLEASE STATE YOUR
NAME FOR THE RECORD AND PROCEED
WHEN READY. GOOD MORNING, MR
CHAIR AND MEMBERS OF THE
COMMITTEE. MY NAME IS JOSEPH
MCCULLOUGH AND I AM THE DIRECTOR
OF THE DEPARTMENT OF ALCOHOLIC
BEVERAGE CONTROL. THANK YOU FOR
THE OPPORTUNITY TO PRESENT TO
YOU TODAY. I'LL START BY
PROVIDING A BRIEF OVERVIEW OF
THE DEPARTMENT AND THEN I WILL
TURN IT OVER TO RANDY DEEMS, WHO
IS THE CHIEF OF ADMINISTRATION
AT ABC TO GIVE A SUMMARY OF OUR
PROPOSAL? THE DEPARTMENT OF
ALCOHOLIC BEVERAGE CONTROL WAS
ESTABLISHED IN 1955 BY
CONSTITUTIONAL AMENDMENT. THE
CONSTITUTIONAL AMENDMENT
TRANSFERRED THE DUTY OF
REGULATING ALCOHOLIC BEVERAGES.
FROM THE STATE BOARD OF
EQUALIZATION TO THE NEWLY
ESTABLISHED DEPARTMENT. AND
DOING SO. ABC ASSUMED
RESPONSIBILITY. FOR
ADMINISTRATING AND PROVISION THE
PROVISION OF THE ALCOHOLIC
BEVERAGE CONTROL ACT IN
ACCORDANCE WITH THE LAWS ENACTED
BY THE LEGISLATURE. THESE LAWS
ARE BASED ON TIGHT HOUSE
PRINCIPLES. WHICH SEPARATE THE
INDUSTRY INTO THREE TIERS,
MANUFACTURERS, WHOLESALERS AND
RETAILERS. UNDER TIGHT HOUSE
LAWS, LICENSES ARE GENERALLY
RESTRICTED FROM OPERATING IN
MULTIPLE TIERS OF THIS SYSTEM IN
ARE PROHIBITED FROM GIVING MONEY
OR THING OF VALUE TO RETAILERS.
THESE ANTITRUST LAWS ARE
INTENDED TO PROTECT CONSUMERS.
FROM PREDATORY BUSINESS
PRACTICES AND PROMOTE FAIR AND
ORDERLY MARKETPLACE. THESE LAWS
HAVE SERVED TO PROTECT THE
PUBLIC SINCE THE END OF
PROHIBITION. AND HAVE ENSURED
THE ALCOHOL INDUSTRY OPERATES IN
A MANNER THAT IS BENEFICIAL TO
THE PUBLIC'S HEALTH, WELFARE AND
SAFETY. TODAY. THE DEPARTMENT'S
OPERATIONS ARE DIVIDED INTO
THREE FUNCTIONS, ADMINISTRATION
LICENSING AND COMPLIANCE. THERE
ARE NOW MORE THAN 95,000. ABC
LICENSED BUSINESSES WITH
APPROXIMATELY 70,000 OF THOSE
POSSESSING RETAIL SALES
PRIVILEGES. ABC ALSO ISSUES
APPROXIMATELY 36,000 TEMPORARY
PERMITS EACH YEAR. FOR EVENTS
SUCH AS STREET FAIRS, FESTIVALS,
CARNIVALS AND NONPROFIT EVENTS.
CUSTOMER SERVICE IS EXTREMELY
IMPORTANT TO US AT ABC. AND WE
SERVICE THE PUBLIC THROUGH 22
FIELD OFFICES THROUGHOUT THE
STATE. WITH THAT I WILL TURN IT
OVER TO MR DEEMS. AND AFTERWARDS
WE'RE HAPPY TO ANSWER ANY
QUESTIONS YOU MIGHT HAVE. GOOD
MORNING. RANDY DEEMS CHIEF OF
ADMINISTRATION. THE ITEM ON THE
AGENDA FOR DISCUSSION IS A
PROPOSAL RELATED TO ABC'S
MODERNIZATION EFFORTS. THE
PROPOSAL HAS TWO COMPONENTS
TOTALING 2.3 MILLION FROM THE
ABC FUND IN 2024 25, DROPPING TO
1.3 MILLION IN 2025 26. THE
FIRST COMPONENT IS RELATED TO AN
EXISTING, UH I T PROJECT WHICH
IS WINDING DOWN, WHICH IS CALLED
THE BUSINESS MODERNIZATION AND
RESPONSIBLE BEVERAGE SERVICE
PROJECT. THE PROJECT WAS
INITIATED IN 2019 20 CREATED TWO
ONLINE PORTALS. UH RBS PORTAL TO
IMPLEMENT RESPONSIBLE BEVERAGE
SERVICE TRAINING PROGRAM ACT OF
2017 AND A LICENSING SERVICES
PORTAL, WHICH WE CALL L SP TO
PROVIDE BASIC ONLINE LICENSING
SERVICES TO APPLICANTS AND THE
PUBLIC. DEVELOPMENT COSTS FOR
THE EFFORT HAVE BEEN BUDGETED
INCREMENTALLY. I BELIEVE THIS IS
THE FIFTH BUDGET CHANGE PROPOSAL
WE HAVE SUBMITTED FOR THIS
PROJECT HOPEFULLY, IS THE LAST
ONE. UH THERE'S CURRENTLY NO
ONGOING BUDGET FOR SUPPORT OF
THE RBS AND L SP PORTALS WHEN
THE CURRENT DEVELOPMENT CONTRACT
ENDS IN MARCH, 2025 THIS REQUEST
WOULD ESTABLISH THAT ONGOING
BUDGET FOR MAINTENANCE AND
OPERATIONS OF THE PORTALS. THE
PROPOSAL REFLECTS ABC'S PLAN TO
REDUCE CONTRACT IT SUPPORT FROM
FOUR CONTRACTORS DOWN TO TWO AND
ADD ONE STATE STAFF POSITION.
THIS CREATES A NET REDUCTION IN
ANNUAL COSTS OF APPROXIMATELY
$250,000 COMPARED TO THE CURRENT
ANNUAL COST. CONTRACT COST OF $1
MILLION FOR THE FOUR CONTRACTORS
. THE SHIFT FROM CONTRACTORS TO
STATE STAFF DECREASES THE COST
OF ONGOING SUPPORT AND FURTHER
REDUCES ABC S DEPENDENCE ON
CONTRACTORS TO SUPPORT THE
PORTALS. BY DEVELOPING EXPERTISE
IN HOUSE. THE FUNDING FOR THE
ONGOING SUPPORT AND MAINTENANCE
OF OUR RBS AND L SP PORTALS IS
ESSENTIAL TO ENSURING THESE
ONLINE SERVICES THAT HAVE BEEN
BUILT REMAIN SECURE AND
AVAILABLE TO THE PUBLIC. THE
SECOND COMPONENT IS OF THIS
REQUEST IS FOR AN EFFORT THAT IS
COMPLEMENTARY TO THE FIRST.
WHICH WE ARE CALLING ANY RECORDS
THAT IT IS SIMPLY THE CONVERSION
OF ABC S PAPER LICENSING FILES
TO ELECTRONIC FILES AND THE
PURCHASE OF A DOCUMENT
MANAGEMENT SYSTEM TO STORE AND
MANAGE THEM WITH ABC SHIFT
ONLINE SERVICES AND ONLINE
APPLICATION IN PARTICULAR. THIS
IS THE RIGHT TIME TO CONVERT OUR
EXISTING PAPER LICENSING FILES,
SO ALL FILES CAN BE STORED IN A
SIMILAR MANNER, SIMPLIFYING
OPERATIONS AND ADDRESSING
VARIOUS RISKS INHERENT WITH
PAPER FILES. SPECIFICALLY THIS
REQUEST INCLUDES 1.3 MILLION IN
2425 AND $260,000, ONGOING FOR
THE SCANNING AND DOCUMENT
MANAGEMENT OF ALL LICENSING
FILES AND INCLUDES 12 YEAR
LIMITED TERM POSITION TO PROVIDE
PROJECT AND ORGANIZATIONAL
CHANGE MANAGEMENT. UH HUH. AND
THEN ONE POSITION TO SERVE AS A
SYSTEM ADMINISTRATOR FOR THE
DOCUMENT MANAGEMENT SYSTEM IN
SCANNING OPERATION ON AN ONGOING
BASIS. THIS IS A FAIRLY FAIRLY
SIMPLE, STRAIGHTFORWARD PROJECT
OF LIMITED SCOPE. THE OBJECTIVE
IS TO CREATE AN ELECTRONIC FILE
ROOM RATHER THAN MAINTAINING 23
PAPER BASED FIRE ROOMS SPREAD
ACROSS THE STATE. THIS IS
EXPECTED TO IMPROVE CONSISTENCY
OF FILE STORAGE AND AVAILABILITY
, SECURITY OF DOCUMENTS THE
AVAILABILITY OF THE FILES TO ALL
APPROPRIATE PARTIES WITHIN THE
DEPARTMENT, INCLUDING PROGRAM
PERSONNEL IN THE FIELD OR
WORKING REMOTELY. AND INCREASED
RESPONSIVENESS TO PUBLIC RECORDS
ACT REQUESTS. WE APPRECIATE YOUR
CONSIDERATION OF THIS REQUEST
AND WERE AVAILABLE TO ANSWER ANY
QUESTIONS YOU MAY HAVE. THANK
YOU VERY MUCH FOR PRESENTATION
DEALER. AMY ASCENCIO DEPARTMENT
OF FINANCE. NO COMMENT. WITH THE
L A. OH, NO COMMENTS. ALRIGHT
MEMBERS OF THE SUB. DO WE HAVE
QUESTIONS OR COMMENTS? THANK YOU
VERY MUCH FOR THE PRESENTATION,
GENTLEMEN THAT I DON'T BE HELD
OPEN. THAT WILL BRING US TO D R
E DEPARTMENT REAL ESTATE FOR
ISSUE 14 WORKLOAD COSTS AND FUND
SOLVENCY. REAL ESTATE FEES
INCREASE TRAILER BILL LANGUAGE.
SOUNDS PRETTY ROWDY OUT THERE.
THAT ISN'T A TRAIN OR SOMETHING,
ANYWAY. OKAY WELCOME AND THANK
YOU STITCHING FOR THE RECORD,
PLEASE PROCEED. THANK YOU. MY
NAME IS CHICA SUNQUEST. I'M THE
REAL ESTATE COMMISSIONER FOR THE
CALIFORNIA DEPARTMENT OF REAL
ESTATE, PROPERTY AND SENATORS.
THANK YOU FOR INVITING US HERE
TODAY TO SPEAK TO YOU ABOUT THE
BUDGET CHANGE PROPOSAL THAT
WE'VE PUT FORTH FOR THE
CALIFORNIA DEPARTMENT OF REAL
ESTATE AGAIN. MY NAME IS CHICA
SUNDQUIST. I'M THE REALISTIC
COMMISSIONER AND IN MY ROLE I
OVERSEE THE OPERATIONS FOR THE
DEPARTMENT. WITH ME TODAY IS
ASSISTANT COMMISSIONER SONIA
PALADINO. SHE IS OUR ASSISTANT
COMMISSIONER OF LEGISLATION FOR
THE DEPARTMENT. THE DEPARTMENT
OF REAL ESTATE IS THE REGULATORY
AGENCY THAT OVERSEES AND
REGULATES. THE REAL ESTATE LAW
SAID PROVIDED LANDS ACT AND THE
TIMESHARE VACATION OWNERSHIP ACT
. OUR MISSION IS TO SAFEGUARD
AND PROMOTE THE PUBLIC INTEREST
IN REAL ESTATE MATTERS THERE,
LICENSER REGULAR EXCUSE ME
REGULATION, EDUCATION AND
ENFORCEMENT. CONSUMER PROTECTION
IS OUR HIGHEST PRIORITY. WE
REVIEW QUALIFICATIONS FOR
LICENSURE AND ISSUE LICENSES TO
REAL ESTATE AGENTS, MORTGAGE
BROKERS AND PROPERTY MANAGERS
WHO ACT AS FIDUCIARIES FOR
CONSUMERS WHO ARE SELLING AND
BUYING HOMES, RENTING HOMES AND
GETTING A MORTGAGE. WE MONITOR
THOSE LICENSES FOR COMPLIANCE
WITH THE REAL ESTATE LAW,
INVESTIGATE COMPLAINTS RECEIVED
FROM CONSUMERS AND PURSUE
DISCIPLINARY ACTION AGAINST
LICENSES WHEN EGREGIOUS
VIOLATIONS ARE IDENTIFIED. PART
OF OUR MISSION IS TO EDUCATE
CONSUMERS AND LICENSES AND
FURTHER MINT OF THAT CONSUMER
PROTECTION MISSION. WE DO THIS
THROUGH SPEAKING ENGAGEMENTS,
CONSUMER OUTREACH PUBLICATIONS,
ADVISORIES AND OTHER MEANS OF
COMMUNICATION WITH CONSUMERS. WE
WANT TO ENSURE THAT THEY HAVE
THE KNOWLEDGE THEY NEED WHEN
THEY'RE GOING THROUGH WHAT IS
TYPICALLY THE BIGGEST FINANCIAL
DECISION IN THEIR LIVES. WITH
LICENSES. WE WANT TO ENSURE THAT
THEY HAVE THE KNOWLEDGE THEY
NEED TO BE COMPLIANT WITH THE
LAW AND TREAT CONSUMERS FAIRLY
IN THESE REAL ESTATE
TRANSACTIONS. WE'RE ALSO
RESPONSIBLE FOR THE REVIEW OF
DISCLOSURE IS CALLED PUBLIC
REPORTS PROVIDED TO CONSUMERS
WHO ARE INTERESTED IN PURCHASING
HOMES AND SUBDIVISIONS. WE
OVERSEE THE LICENSOR OF
APPROXIMATELY 434,000 LICENSES.
AND REVIEW MORE THAN 2500.
PUBLIC REPORTS FOR THOSE
INTERESTED IN SELLING HOMES TO
CALIFORNIA CONSUMERS DEPARTMENT
OF REAL ESTATE HAS 380 POSITIONS
AND FIVE OFFICE LOCATIONS
THROUGHOUT THE STATE. WE ARE
SOLELY FUNDED BY THE REAL ESTATE
FUND. FEES CHARGED FOR REAL
ESTATE EXAMS AND LICENSES,
PUBLIC REPORT APPLICATIONS AND
VARIOUS OTHER PERMITS WERE
ISSUED ARE DEPOSITED INTO THE
REAL ESTATE FUND. WE DO NOT
RECEIVE GENERAL FUND DOLLARS.
AND THIS BUDGET CHANGE PROPOSAL.
WE REQUEST AN INCREASE OF $3.23
MILLION IN BUDGET EXPENDITURE,
AUTHORITY AND FISCAL YEARS 2425
AND 2526 AND 2.45 MILLION
ONGOING THE PROPOSAL MATCH THE
EXPENDITURE AUTHORITY WITH
CURRENT COSTS, ALLOWING US TO
SUCCESSFULLY OPERATE AND FULFILL
OUR MISSION OF CONSUMER
PROTECTION EFFECTIVELY. DUE TO
HIGH LEVELS OF STAFF RETENTION,
INCREASED COSTS FOR CONTRACTED
SERVICES AND INCREASED RENT
COSTS. THE DEPARTMENT HAS
IDENTIFIED GAPS AND AUTHORIZED
EXPENDITURES NECESSARY TO FUND
THE COST FOR US TO OPERATE. SOME
AREAS WHERE WE HAVE IDENTIFIED
GAPS AND FUNDING OUR OUR CALL
CENTER STAFF, WHICH ARE
POSITIONS WITH LIMITED TERM
FUNDING THAT'S EXPIRING THIS
YEAR. ATTORNEY GENERAL AND
OFFICE OF ADMINISTRATIVE
HEARINGS FOR WHICH WE PAID TO
PROSECUTE EGREGIOUS REAL ESTATE
LAW VIOLATIONS. OUR EXAM PRODUCT
DURING CONTRACT, WHICH PROVIDES
INCREASED ACCESS TO EXAMS
THROUGHOUT THE STATE. EQUIPMENT.
SAN DIEGO OFFICE RENT INCREASE,
WHICH WAS DUE TO A MOVE CAUSED
BY THE SALE OF A STATE BUILDING
WE WERE OCCUPYING AND GAP
FUNDING FOR LONG TERM STAFF
SALARIES. WE ALSO REQUEST
TRAILER BILL LANGUAGE TO
IMPLEMENT A NEW FEE SCHEDULE
THAT BETTER ALIGNS OUR REVENUES
WITH EXPENDITURES, AND IT
ADDRESSES A STRUCTURAL FUND
IMBALANCE IN THE REAL ESTATE
FUND. WE LAST ADJUSTED FEES
STATUTORILY IN 1997 MORE THAN 27
YEARS AGO, AND DURING THAT TIME
WE HAVE TAKEN A PRUDENT APPROACH
BY USING RESERVES IN THE REAL
ESTATE FUND TO OFFSET THE RECENT
TREND OF YEARLY EXPENDITURES
EXCEEDING OUR REVENUES PRIOR TO
SEEKING THIS FEE INCREASE.
CHARGES TO THE CHANGES TO THE
FEE SCHEDULE ARE NEEDED NOW
BECAUSE EXPENSES HAVE SLOWLY
INCREASED OVER TIME. WE HAVE
BEEN PRUDENTLY SPENDING DOWN OUR
RESERVE AND WE'RE NOW AT A POINT
WHERE EXPENDITURES ARE EXCEEDING
OUR REVENUES FROM FEES. IT'S
PRUDENT TO RAISE FEES TO ALLOW
THE DEPARTMENT TO CONTINUE TO
OPERATE EFFECTIVELY. PROPOSAL
ALLOWS US TO BOTH MEET CURRENT
COSTS AND RAISE FEES SO WE CAN
EQUALIZE REVENUES WITH
EXPENDITURES WHILE MAINTAINING A
REASONABLE RESERVE. FOR EXAMPLE,
WE'RE PROPOSING AN INCREASE OF
OUR SALESPERSON LICENSE AND
RENEWAL FEES FROM $245 TO $350
AND THE LICENSES OF FOUR YEAR
LICENSE SO THIS WOULD BE A
$26.25 INCREASE YEAR PER YEAR.
IN ADDITION TO SETTING NEW FEED
LEVELS, WE PROPOSE CONTINUING
THE HISTORICAL PRACTICE OF
SETTING STATUTORY FEE CAPS THAT
ALLOW D R E TO SLOWLY RAISED
FEES OVER TIME TO KEEP UP WITH
INFLATIONARY COSTS. SERIES
HISTORY. WE'VE SHOWN THAT WE ARE
RESPONSIBLE STEWARDS FOR
MAINTAINING REASONABLE FEE
LEVELS. THE CURRENT FEE CAPS
WERE SET STATUTORILY IN 1997 AS
I SAID, BUT WE DID NOT REACH
MAXIMUM LEVELS UNTIL 12 YEARS
LATER IN 2009, AND WE HAVE BEEN
OPERATING AT THOSE FEE LEVELS
FOR THE PAST 15 YEARS. WE EXPECT
THE PROPOSED CAPS AND THIS
PROPOSAL WILL OPERATE IN A
SIMILAR FASHION. FOR EXAMPLE, IF
REVENUES REMAIN STABLE, AND THEN
COSTS RISE APPROXIMATELY 3.5%
ANNUALLY AND FEES ARE ADJUSTED
TO MATCH THAT GROWTH. IT WILL
TAKE OVER A DECADE TO REACH THE
STATUTORY MAXIMUMS. STABILIZING
THE REAL ESTATE FUND, AS
PROPOSED IN THIS BUDGET CHANGE
PROPOSAL WILL PROVIDE US WITH
LONG TERM STABILITY TO ENSURE
THAT WE HAVE THE RESOURCES TO
CONTINUE TO EFFECTIVELY REGULATE
THE REAL ESTATE INDUSTRY AND
PROTECT CONSUMERS. THANK YOU FOR
YOUR CONSIDERATION OF THIS
PROPOSAL, AND WE'RE HAPPY TO
ANSWER ANY QUESTIONS YOU MAY
HAVE. THANK YOU. COMMISSIONER
APPRECIATE THE PRESENTATION,
DEPARTMENT OF FINANCE. TAYLOR
MAGRO, THE DEPARTMENT OF
FINANCE. WE HAVE NOTHING TO ADD
AT THIS TIME. THANK YOU. L L
JARED. SIMPLE WITH THE L AH, WE
HAVE NO COMMENTS AT THIS TIME.
THANK YOU. THANK YOU. CAN YOU
EXPAND A LITTLE BIT? JUST DONE
SORT OF STAKEHOLDER ENGAGEMENT
WHEN LOOKING AT THE PROPOSED ON
ONGOING FRAMEWORK OF THE
STRUCTURE? CERTAINLY WELL, WE'VE
ENJOYED OPPORTUNITIES TO ENGAGE
WITH OUR STAKEHOLDER GROUPS AND
ENGAGE WITH THE LEGISLATURE. FOR
EXAMPLE, IN 2022. WE HAD THE
OPPORTUNITY TO PRESENT A FEW
BUDGET CHANGE PROPOSALS AND AT
THAT TIME AS PART OF THE
INQUIRIES WERE DISCUSSIONS OF
OUR DECLINING RESERVES IN
ADDITION TO A NEED FOR A FEE
STUDY, WHICH WOULD THEN LEAD TO
A FEE INCREASE OF WHERE THE
UPCOMING YEARS WE'VE ALSO HAD A
WONDERFUL STAKEHOLDER GROUPS
AND, UM FOR EXAMPLE, IN 2022
WHEN WE INITIATED THIS FEE STUDY
OUR COMMISSIONER AT THE TIME,
COMMISSIONER MCCAULEY WOULD MEET
MONTHLY WITH THE LEADER OF THE
LARGEST STAKEHOLDER GROUP AND
HAVE MONTHLY DISCUSSIONS ABOUT
DAIRY, ONGOING INDUSTRY ONGOING
AND PART OF THAT WAS DISCUSSIONS
OF OUR FEE STUDY. IN 2023, FOR
EXAMPLE. WE WE'RE PART OF A
PRESENTATION FOR OUR LARGEST
STAKEHOLDER GROUP IN WHICH WE
PRESENTED THE OUTCOME OF THE FEE
STUDY, WHICH DID SHOW THAT OUR
REVENUES WERE XDD EXCEEDING OUR
EXPENDITURES, EXCUSING OUR
EXPENDITURES EXCEEDING OUR
REVENUES. THAT'S WHY WE'RE HERE.
AND UH, SINCE JANUARY, 10TH,
SINCE WE HAVE HAD THE
OPPORTUNITY TO SPEAK TO OUR
BUDGET CHANGE PROPOSAL. I'VE HAD
MEETINGS WITH LEADERSHIP OF OUR
LARGEST STAKEHOLDER GROUPS. FOR
EXAMPLE, THE CALIFORNIA
ASSOCIATION OF REALTORS,
CALIFORNIA ASSOCIATION OF
MORTGAGE PROFESSIONALS,
CALIFORNIA MORTGAGE ASSOCIATION,
CALIFORNIA BUILDING INDUSTRY
ASSOCIATION AND AMERICAN
ASSOCIATION, AMERICAN RESORT
DEVELOPERS ASSOCIATION AND THEN
ALSO, THE DAIRY LEADERSHIP HAVE
MET WITH THEIR COUNTERPARTS AT
THOSE INDUSTRY GROUPS TO ENSURE
THAT WE ARE EXPLAINING THE
BUDGET CHANGE PROPOSAL
EXPLAINING THE FEE STUDY. EXCUSE
ME, EXPLAINING THE PROPOSED FEE
SCHEDULES. AND THEN OBVIOUSLY
GET THEIR FEEDBACK. ANSWER ANY
QUESTIONS THAT THEY HAVE, AND
WE'VE ENJOYED THOSE
CONVERSATIONS UP UNTIL RECENTLY
THIS WEEK AS WELL, AND WE LOOK
FORWARD TO THOSE CONTINUED
CONVERSATIONS. WE'VE ALSO DONE
OUTREACH TO EDUCATION PROVIDERS
TO ENSURE THAT THEY HAVE THE
SAME OPPORTUNITY TO UNDERSTAND
OUR BUDGET CHANGE PROPOSAL.
THANK YOU VERY MUCH COMMISSIONER
QUESTIONS FROM THE SUBCOMMITTEE
MEMBERS ON THIS CENTER NILO WITH
REGARD TO THE STAKEHOLDER
OUTREACH, PARTICULARLY THOSE
THAT ARE PAYING THE INCREASED
FEES HAVE THEY EXPRESSED AN
OPINION ON IT? MANY HAVE
EXPRESSED TO US THAT THEY ARE IN
SUPPORT OF OUR PROPOSAL. AND
THEN FOR THOSE THAT HAVE WE'VE
HAD FURTHER DISCUSSIONS WITH
OTHERS, AND CAN WE LOOK FORWARD
TO CONTINUE DISCUSSIONS WITH
THEM ABOUT ANY CONCERNS THAT
THEY MIGHT HAVE? WE DID RECEIVE
A LETTER YESTERDAY FROM THIS
CALIFORNIA ASSOCIATION OF
REALTORS OUTLINING SOME OF THEIR
CONCERNS. OKAY YOU SHARE THAT
LETTER WITH US. HI. PRESUMABLY
THE COMMITTEE DOES HAVE IT,
OKAY? SMALL CUEVAS. THANK YOU,
MR CHAIR. MY QUESTION ISN'T
ALONG THOSE LINES, GIVEN THE
STATE OF OUR REAL ESTATE MARKET
RIGHT NOW, THE INTEREST RATES
THE SORT OF CHILLING EFFECT THAT
WE'RE IN. HOW DOES THAT FACTOR
INTO THESE INCREASES AND WHEN
WOULD THIS TAKE EFFECT?
CERTAINLY THE GENERAL INCREASES
WOULD TAKE INTO EFFECT UPON
SIGNING OF THE TRAILER BILL
LANGUAGE. THERE ARE CERTAIN FEES
THAT WOULD NOT GO INTO EFFECT
BECAUSE THEY'RE PART OF OUR
REGULATIONS, AND WE NEED TO GO
THROUGH THAT PROCESS OF
IMPLEMENTING REGULATIONS. UM AND
I MISSED THE BEGINNING. PART OF
YOUR QUESTION. I APOLOGIZE. HOW
MUCH DOES WHERE THE MARKET IS
EFFECT WHEN THESE RATES GO INTO
EFFECT, GIVEN THAT A LOT AT
LEAST IN MY DISTRICT, THERE'S
BEEN A CHILLING EFFECT WITH THE
HIGHER INTEREST RATES AND
INFLATION JUST HOW HOW DOES THAT
PLAY INTO THIS? UM INCREASE?
CERTAINLY THANK YOU, AND WE
DEFINITELY TOOK THAT INTO
CONSIDERATION WHEN WE WERE
REVIEWING OUR FEE PROPOSAL TO
ENSURE THAT THE FEES WERE
REASONABLE AND, YOU KNOW,
CERTAINLY SHARE THE BELIEF THAT
THE FEES SHOULD BE REASONABLE
AND STILL ALLOW FOR ENTRY INTO
THE PROCESS. SESSION. SO WE
LOOKED AT OUR COSTS TO PERFORM
OUR SERVICES. WE ALSO LOOKED AT
INCREASES IN THE CONSUMER PRICE
INDEX. WELL, LOOKED AT INDEX WE
LOOKED AT HOW MUCH OF A
PERCENTAGE OR FEES WERE
INCREASING AND TOOK ALL OF THOSE
INTO CONSIDERATION AND AGAIN
WITH THE SALESPERSON LICENSE,
FOR EXAMPLE, WHICH IS THE MOST
COMMONLY CHARGED FEE FOR THE
DEPARTMENT THAT IS INCREASING BY
$105 OVER A FOUR YEAR PERIOD. SO
THAT'S $26.25 A YEAR FOR OUR
REAL ESTATE SALES PERSONS. THANK
YOU. ALL RIGHT. THANK YOU VERY
MUCH FOR PRESENTATION
COMMISSIONER. FURTHER QUESTIONS
SIDE AND BE HELD OPEN. ALRIGHT
VERY PATIENT, SIRS, NOW TO THE
MILITARY DEPARTMENT FOR ISSUES
15 THROUGH 17. WELCOME, GENERAL.
THANK YOU. CHAIR. I AM AT BEAVER
SIMON, THE ADJUTANT GENERAL OF
THE STATE OF CALIFORNIA. I WANT
TO GO THROUGH, UH, ITEMS ONE BY
ONE CHAIR. FEEL FREE TO ADDRESS
COMPREHENSIVELY SER THAT'S
PERFECTLY FINE. OKAY YEAH. SO
FIRST ITEM ITEM 15 THAT'S IN THE
GOVERNOR'S BUDGET FOR $15
MILLION FOR BUDGET YEAR 2425
ANOTHER 15 MILLION FOR BUDGET
YEAR 2526. AND WHAT THAT DOES IS
THAT BOLSTERS THE FEDERAL
APPROPRIATION THAT THE
DEPARTMENT RECEIVES TO PROVIDE
EXTRAORDINARILY CAPABLE AND
COMPETENT SERVICES TO LAW
ENFORCEMENT AGENCIES. NOT ONLY
NATIONALLY LOCALLY, TRIBALLY AND
ACROSS THE STATE. UM, ALSO
INCLUDING CITIES AND COUNTIES. I
WANT TO MAKE SURE EVERYBODY
UNDERSTANDS THAT'S VERY CLEAR
OVER THE LAST TWO YEARS, THE
STATE HAS SEEN AN EXTRAORDINARY
RETURN ON ITS INVESTMENT. I
THINK OVER 1000% INCREASE IN CAL
GUARD SUPPORTED FENTANYL
SEIZURES. AND ALMOST A BILLION
DOLLARS IN FENTANYL TAKEN OFF
THE STREETS AND OUT OF THE HANDS
OF CARTEL BOSSES, AND THAT'S THE
PITCH FOR 15. ITEMS. 16 IS THE
EMERGENCY STATE ACTIVE DUTY
MANAGEMENT SYSTEM. THAT ASK IS
280,000 ONGOING. THAT'S A VERY
ESSENTIAL SYSTEM THAT WE'VE
TAKEN PART IN DEVELOPING OVER
THE LAST 10 OR 15 YEARS. IT
MANAGES ALL OUR UNIQUE MILITARY
DEPARTMENT OPERATIONS MISSIONS,
BUT ALSO MANAGES THE EMERGENCY
STATE ACTIVE DUTY SYSTEM. UM AND
IT ALSO REALLY FITS IN WITH IT
WITH CAL FIRE. OH YES, FEMA
THEIR ABILITY TO TRANSFER MONEY
REIMBURSEMENT, SO IT'S A VERY
EQUITABLE SYSTEM AND ALSO
ENSURES THAT WE THAT WE MAINTAIN
VERY RAPID REIMBURSEMENTS AS
WELL AS PAYING OUR INVOICES.
THAT'S 16 AND FINALLY ITEMS. 17
STATE ACTIVE DUTY CONVERSATION
ADJUSTMENT. AND DEPUTY ADJUTANT
GENERAL RANK ADJUSTMENT TRAILER
BILL LANGUAGE, SO THIS STATE
ACTIVITY COMPENSATION ADJUSTMENT
THAT GENERALLY OCCURS EVERY YEAR
UNDER STATUTE. OUR STATE ACTIVE
DUTY PAY IS PEGGED TO THE
FEDERAL SCHEDULE. SO WHEN
FEDERAL PAY GOES UP
COMMENSURATELY OUR STATE DO YOU
WORK FOR SALARIES AND
COMPENSATION GOES UP. AND
FINALLY, THE DEPUTY ADJUTANT
GENERAL RANK ADJUSTMENT THAT'S
REALLY KIND OF CORRECTING THE
RECORD BACK WHEN SB 87 WAS
PASSED AND WE AMENDED GOVERNMENT
CODE SECTION CODE IN THE
MILITARY AND VETERANS BECAUSE
161 AND ENSURED THAT THE OUR
DEPUTY IS RESPONSIBLE TO ONLY
THE GOVERNOR AND MYSELF. HE'S
CURRENTLY BEING PAID AT WHAT HIS
SUBORDINATES ARE BEING PAID, SO
WE BELIEVE TO ENSURE THAT IT'S
APPROPRIATE AND THAT WE CAN
MAINTAIN GOOD TALENT IN THAT
POSITION THAT THAT AND THAT BE
UPGRADED. AND THE COSTS ARE
ABSORBABLE WITHIN THE
DEPARTMENT. NOT TAKING YOUR
QUESTIONS. THANK YOU. DELYLAH
WILLIAM FLORES JONES DEPARTMENT
OF FINANCE. THE ADMINISTRATION
WOULD JUST LIKE TO REITERATE THE
IMPORTANCE OF ISSUE NUMBER 15
THE PROVISIONS PROVIDING
CONTINUED SUPPORT TO THE COUNTER
DRUG TASK FORCE THROUGH 2526.
THE INITIAL INVESTMENT OF $30
MILLION IN THE 2022 BUDGET ACT
TO THE COUNTER DRUG TASK FORCE
PROVIDED ADDITIONAL SERVICE
MEMBERS THAT WE'RE ABLE TO
PROVIDE SUPPORT TO THE STATES
HIGH INTENSITY DRUG TRAFFICKING
AREAS. AS STATED BY THE
DEPARTMENT TO ASSIST FEDERAL,
STATE AND LOCAL LAW ENFORCEMENT
WITH THE SEIZURES OF NEARLY OF
APPROXIMATELY $1 BILLION WORTH
OF ILLICIT NARCOTICS IN 2022 23,
AS THESE RESOURCES WOULD PROVIDE
CONTINUED SUPPORT FOR THE
COUNTER DRUG TASK FORCE. THE
ADMINISTRATION IS SEEKING TO
SUSTAIN THE MILITARY DEPARTMENTS
. DRUG INTERDICTION EFFORTS WERE
OPEN FOR ANY QUESTIONS. THANK
YOU, SIR. L L O JARED SYMBOL
WITH THE L O. WE JUST HAVE SOME
COMMENTS ON ISSUE 15 THE COUNTER
DRUG INTERDICTION EFFORTS FOR
THIS PROPOSAL OR GENERAL
RECOMMENDATION IS THAT THE
LEGISLATURE WAY THIS NEW GENERAL
FUND PROPOSAL AGAINST ITS OTHER
PRIORITIES AS IT TRIES WORKS TO
ADDRESS THE BUDGET PROBLEM ON
THE ONE HAND AS GENERAL BEAVERS,
AS WELL AS FINANCING POINTED OUT
, UH, THERE HAS BEEN AN INCREASE
IN FENTANYL AND METHAMPHETAMINE
SEIZURES SINCE THE STATE
INITIALLY PROVIDED THIS FUNDING
A COUPLE OF YEARS AGO. ASSUMING
THESE THIS INCREASE IN SEIZURES
IS TIED TO THIS NEW STATE
FUNDING, THIS PROPOSAL COULD
HAVE MERIT MERIT IF IT DOESN'T
FACT REDUCE THE LIKELIHOOD THAT
DRUG USERS GET ACCESS TO THESE
DANGEROUS DRUGS. ON THE OTHER
HAND, WE WOULD NOTE THAT IF
EFFECTIVE COUNTER DRUG EFFORTS
CAN REDUCE SUPPLY AND WHICH CAN
RESULT IN INCREASED PRICES.
HIGHER PRICES CAN HAVE
UNINTENDED EFFECTS, DEPENDING ON
HOW DRUG TRAFFICKERS AS WELL AS
DRUG USERS REACT TO THESE HIGHER
PRICES. MOREOVER WE WOULD NOTE
THAT AGAIN THAT THE STATE IS
FACING A BUDGET PROBLEM AND THIS
WOULD ADD NEW GENERAL FUND
PRESSURE FOR THE NEXT TWO YEARS,
SO WE THINK THE LEGISLATURE WILL
WANT TO APPLY HIGHER BAR AND ITS
REVIEW OF THESE PROPOSALS, AS
ESPECIALLY AS THIS ONE COULD BE
CONSIDERED DISCRETIONARY AS THE
STATE COULD CONTINUE TO RELY ON
THE FEDERALLY FUNDED EFFORTS AND
THE NEAR TERM. SO WITH THAT WE
JUST PRESENT THESE FACTORS FOR
CONSIDERATION AS YOU WEIGH THIS
AGAINST YOUR OTHER PRIORITIES.
WE WOULD NOTE THAT IF THE
LEGISLATURE DOES CHOOSE TO
APPROVE THIS PROPOSAL IT WOULD
DEEM DEFINED, OFFSETTING
REDUCTIONS ELSEWHERE IN THE
BUDGET, SO HAPPY TO ANSWER ANY
QUESTIONS? YOU MAY HAVE. THANK
YOU OTHER QUESTIONS FROM
COMMITTEE MEMBERS, SENATOR SMALL
ACQUAINTED ON THE L A. ARE YOU
SAYING THAT THEY'RE IN YOUR
ANALYSIS, THERE WASN'T DATA THAT
TIED THE INCREASED SEIZURE THAT
THE THAT ARE UM THAT OUR
NATIONAL GUARD LAID OUT IN THIS
PRESENTATION, UM THERE'S NO DATA
THAT SHOWS THE COURT. THE DIRECT
CORRELATION BETWEEN THE
INVESTMENT OF THIS, UM WORK. TO
KEEP THIS WORK GOING AND THE
ACTUAL UM ABILITY TO GET
INVOLVED IN STOPPING THE DRUG
TRAFFICKING THE TRAFFICKING OF
PHENOL INTO THE STATE OF
CALIFORNIA. THERE'S NO DATA THAT
MAKES THAT CONNECTION ANALYSIS
IN OUR IN OUR ANALYSIS OF WHAT
WE WOULD SAY IS THAT THAT THE
DEPARTMENT HAS PROVIDED DATA
THAT SHOWS THAT THERE HAS BEEN
AN INCREASE IN FENTANYL AND
METHOD MATHEMATICALLY SEIZURES
SINCE THE STATE INITIALLY
PROVIDED THAT FUNDING, IT IS
DIFFICULT TO TIE THAT THE
INCREASED DIRECTLY TO THIS
SEIZURES. THERE ARE ANY NUMBER
OF OTHER FACTORS THAT COULD BE
IN THERE THAT JUST MAKE IT
DIFFICULT TO KNOW WHAT EXACTLY,
YOU KNOW. WAS IT A DIFFERENCE IN
THAT DRUG TRAFFICKING PATTERNS?
WAS IT A DIFFERENCE IN THE
SUPPLY OF DRUGS BEING BROUGHT
ON? SO IT IS JUST DIFFICULT TO
LIKE THERE'S JUST NOT DATA
DIRECTLY TIES IT AS CLOSELY AND
SO THAT'S WHY WE JUST COPY OUT
THAT STATEMENT, AS WE DID. THANK
YOU FOR CLARIFYING. THANK YOU.
GENERAL DID YOU HAVE ANY CLOSING
COMMENTS? I WANT TO RESPOND.
ALRIGHT SO THESE ITEMS THAT
THANK YOU, SIR. FOR YOUR
PATIENTS. THESE ITEMS WILL BE
HELD OPEN. IT WILL TAKE US TO
ISSUE 18, THE DEPARTMENT OF
VETERANS AFFAIRS AND CAL VET.
MHM. THANK YOU. HELLO. WELCOME
AND STATE YOUR NAME FOR THE
RECORD AND PROCEED WHEN READY.
FIRST GOOD MORNING. MY NAME IS
BETH MOSHINSKY AND I'M ASSISTANT
DEPUTY SECRETARY OF VETERANS
HOMES FOR CALVIN AND I AM THOMAS
MARTIN. I'M CHIEF OF FUTURE
OPERATIONS AND PLANNING FOR THE
VETERANS HOMES. SO UM, BEFORE
YOU HAVE A BCP REGARDING OUR
YOUNG TO VETERANS HOMES, BUT MY
UNDERSTANDING IS THERE WAS A
REQUEST FOR US TO DO A QUICK
OVERVIEW OF OUR DEPARTMENT. UM
SO IF I MAY, SO CALVIN IS A
CABINET LEVEL DEPARTMENT, UM WE
HAVE A SECRETARY LINDSEY SIN.
SHE'S A VETERAN SAILOR GO NAVY.
UM WE HAVE THREE MAIN ARMS
WITHIN CALVET FOR PROGRAM
FUNCTIONS, SO THE FIRST IS THE
HOME LOAN PROGRAM, WHICH DOES
WHAT IT SAYS ON THE TIN. UM IT
PROVIDES, UH, COMPETITIVE RATES
FOR HOME LOANS FOR VETERANS. SO
MANY VETERANS LOOKING FOR A HOME
LOAN SHOULD REALLY CALL US
FIRST. UM, THE 2ND 2ND PROGRAM
THAT WE HAVE IS, IS OUR UNIT THE
VETERANS HOMES. THE VETERANS
HOMES OFFER LONG TERM CARE FOR
AGED AND DISABLED VETERANS, UM,
AND THEIR SPOUSES. WE HAVE EIGHT
HOMES IN THE STATE. UM AND THEY
PROVIDE CARE FOR UP TO ABOUT
ROUGHLY 2000 VETERANS AND THEIR
SPOUSES. THAT'S OUR CAPACITY. UM
UH IN A LITTLE BIT. WE'RE GOING
TO TALK ABOUT THE WAR VETERAN
VETERAN'S HOME, WHICH IS THE
BIGGEST AND THE BADDEST AND THE
OLDEST IN THE U. S UM AND IS IN
NEED OF THE FINAL STAGE OF OUR
RAMPANT PROCESS. UM THE THIRD
PROGRAM THAT CALVET HAS IS A
PRETTY ENCOMPASSING SAFETY NET.
THAT'S OUR VETERANS SERVICES
DIVISION. THERE'S QUITE A FEW
FUNCTIONS THAT THEY HAVE AND
PROBLEMS THAT THEY ADMINISTER.
BUT EFFECTIVELY, THEY TRY TO
CONNECT VETERANS WITH EVERYTHING
THAT EXISTS, UM, ANY ANY FEDERAL
STATE LOCAL NONPROFIT BENEFITS
THAT, UM, UH, THAT THEY COULD
TAKE ADVANTAGE OF THE TRY TO GET
THEM CONNECTED TO THAT. SO BY
WAY EXAMPLE THEY THEY ADMINISTER
EDUCATION GRANTS FOR EDUCATION
WAIVERS FOR, UM VETERANS
DEPENDENCE. THAT'S HOW I WENT TO
COLLEGE. UM THEY ALSO THEY HELP
VETERANS WITH DISABILITY CLAIMS
THROUGH THE V A GETTING
DISABILITY PAYMENTS HOLD A WIDE
RANGE OF SERVICES THEY PROVIDE.
SO A PRETTY BIG CATCH ON. UM SO
THOSE ARE THE THREE MAIN PROGRAM
FUNCTIONS. THEY PROVIDE A LOT OF
THEIR ADVOCACY, ARMS IN AND OF
THEMSELVES, BUT THEY ALSO WE
ALSO HAVE TO SPECIFIC EFFICACY
PROGRAMS. TARGETING WOMEN,
VETERANS AND MINORITY AND
UNDERREPRESENTED VETERANS. MM.
BESIDES THAT, WE HAVE A SLEW OF
SUPPORT AND OPERATIONAL
ADMINISTRATIVE PROGRAMS THAT
SUPPORT THE MAIN FUNCTION. SO
ANY QUESTIONS ON AND IT WAS VERY
QUICK AND I WAS A LOT BUT ANY
QUESTIONS ON ON CALLE VETS? AND
HOW IT WORKS. THE PRESENTATION
ALWAYS LOOK FORWARD TO HEAR
WHAT'S GOING ON AND ON. IT FILLS
SNF. ALRIGHT D O F WILL
INFLUENCE JONES DEPARTMENT OF
FINANCE AND OTHER COMMENTS AT
THIS TIME. NICK SCHROEDER OF THE
LA WE HAVE NO COMMENTS SER ANY
COMMENTS OR QUESTIONS FROM
MEMBERS SUBCOMMITTEE I DON'T SEE
ANY. THANK YOU BOTH VERY MUCH
FOR YOUR PATIENTS AND
PRESENTATION FINISHED SOMETHING
THAT WAS JUST OH, GOD. I'M GONNA
HURRY TO RUSH YOU GUYS OUT OF
HERE AREN'T I CAN GO. REALLY YOU
KNOW, ACTUALLY, YOU SHOULD HAVE
TAKEN YOUR MOMENT. YOU THINK I'M
FALLING ASLEEP UP HERE? YOU GUYS
SHOULD HAVE SAID THANKS A LOT.
MR CHAIRMAN. RIGHT HERE. PLEASE
PROCEED WITH YOUR CONTENT.
APOLOGIES OH, THAT'S OKAY. SO,
YEAH, THAT WAS THAT WAS JUST THE
DEPARTMENT OF NUTSHELL. SO
BEFORE YOU VERY THOROUGH, I WILL
SAY SORRY. PLACE FOR SEAT. UM SO
BEFORE YOU WE HAVE A BUDGET
CHANGE PROPOSAL FOR THE YONVILLE
HOME SPECIFICALLY. SO LIKE I
MENTIONED AT THE TOP THE UNCLE
HOMES, THE OLDEST IN THE U. S UM
IT HAS IT PROVIDES SERVICES. FOR
AS WE HAVE BEDS FOR UP TO. I
THINK IT'S 876 VETERANS AND
THEIR SPOUSES. UM WHOLE RANGE OF
PROGRAMS THAT ARE THAT ARE
OFFERED. UM IT'S ON A 615 ACRE
FACILITY. WITH MORE THAN 100
BUILDINGS AND BOWLING ALLEY AND
RESERVOIR IN GOLF COURSE AND
QUITE A FEW OTHER THINGS, SO
IT'S BASICALLY A TOWN ON ITS
OWN. UM THIS THIS THIS PROPOSAL
IS THE VERY LAST STAGE FOR
ACTIVATING A BRAND NEW SKILLED
NURSING FACILITY FOR THE HOME.
SO THERE'S SOMETHING THAT'S BEEN
IN THE WORKS FOR QUITE A FEW
YEARS, AND WE APPRECIATE THE
LEGISLATURE TO SUPPORT OVER THE
YEARS TO GET IT TO THIS LAST
POINT. UM, SO THIS THIS FINAL
BCP IS FOR THE STAFFING OF THE
FACILITY SO THAT WE CAN ONCE
CONSTRUCTION IS COMPLETE. WE CAN
START BRINGING OUR VETERANS OVER
AND PROVIDING THEM. UM YOU KNOW
BETTER SERVICES. BETTER CARE.
BETTER ACCOMMODATIONS, UM AND
REALLY REPRESENTS. THIS IS VERY
EXCITING FOR US. A LITTLE
EXCITED, BUT THIS IS THIS IS THE
CULMINATION OF QUITE A LOT OF
WORK, AND IT'S REALLY GONNA THIS
IS GONNA BE THE BIGGEST REVAMP
TO THE CAMPUS, PROBABLY 70 YEARS
OR SO. SO UM, UH, WITH THAT SAID
, IT'S I KNOW THERE'S A LOT OF
PIECES TO IT. IT'S PRETTY
COMPLEX, RAMPANT PROCESS, BUT
ULTIMATELY IT WOULD CULMINATE IN
SO ONGOING IT BE 100 8 POSITIONS
AND A LITTLE OVER $12 MILLION
GENERAL FUND FOR THE FOR THE
ONGOING OPERATION OF THE NEW
SKILLED NURSING FACILITIES. SO
UM, WITH THAT SAID, APPRECIATE
THIS LEGISLATION SUPPORT OVER
THE YEARS AND APPRECIATE YOUR
SUPPORT ON THIS PROPOSAL AND
HAPPY TO ANSWER ANY QUESTIONS
FINALLY CLOSING IN ON IT NOW.
OKAY NOW DEPARTMENT OF IT HAS
YOU IN EVERY STATE. INFLUENCE
JONES DEPARTMENT OF FINANCE. WE
HAVE NO OTHER COMMENT. THANK
YOU. L A L KNICKS ROAD OVER THE
WE RAISED NO ISSUES. I JUST
WANTED YOU TO PRACTICE, SAYING
THAT EARLIER, ALRIGHT MEMBERS OF
THE SUBCOMMITTEE ANY QUESTIONS
OR COMMENTS INTERNAL Ó? JUST
ONE DIFFICULT QUESTION. THIS IS
VERY DIFFICULT FOR THE
DEPARTMENT OF VETERAN AFFAIRS,
BUT FOR DEPARTMENT OF FINANCE.
HAS THERE BEEN ANY CONSIDERATION
TO DELAY THIS FOR A YEAR OR TWO
TO PROVIDE BUDGET BREATHING ROOM
? NOT TO NOT DO IT. OBVIOUSLY
THIS IS A HUGE DEAL, AND I CAN
UNDERSTAND THE EXCITEMENT AT
THIS POINT, BUT WE HAVE A $73
BILLION DEFICIT FOR THE UPCOMING
BUDGET YEAR. HAS THAT BEEN
DISCUSSED? JESSE ROMAN
DEPARTMENT OF FINANCE. NOT AT
THIS TIME GIVEN THE FACILITY IS
SCHEDULED TO OPEN AROUND
DECEMBER. WE FEEL THAT IT'S
NECESSARY TO PROVIDE FULL
OPERATIONAL SUPPORT FOR THAT
FACILITY COMMENCING IN DECEMBER
TIME WHEN THESE, UH WHEN THE
FACILITY WOULD ACTUALLY OPEN UM
AND I THINK REFERRED TO THE
DEPARTMENT ON THIS FACILITY IS
DIFFERENT THAN THE OLDER
FACILITY, AND THERE'S ADDED
SERVICE LEVELS PROVIDED BY THIS
FACILITY. SO THERE IS A WORKLOAD
NEED TO SUPPORT THE YOUNG
YONVILLE NEW FACILITY,
ADDITIONALLY, TO THE DEPARTMENT
OF FINANCE SEES THIS AS A
WORKLOAD REQUEST. THIS IS NOT
DISCRETIONARY. WE VIEW THIS AS
SOMETHING THAT WE HAVE TO FIND
AS PART OF THIS BUDGET. I WOULD
AGREE WITH THAT. I WAS JUST
QUESTIONING IF THERE'S ANY
LEGITIMATE QUESTION OF THE
TIMING AND GIVEN THE TIME FRAME.
FOR RATHER SIGNIFICANT, UM
NUMBER OF POSITIONS AND THE
SKILLS INVOLVED FOR BOTH
DEPARTMENT OF FINANCE IS A
REASONABLE TIME FRAME TO GET
THIS DONE. AS FAR AS THE
CONSTRUCTION OF THE FACILITY. NO
NO. THE POSITIONS THE POSITIONS.
WELL UM, AS INDICATED BY CALL
THAT IN OUR PRIOR CONVERSATIONS,
THEY WOULD BEGIN ADVERTISING FOR
THE POSITIONS PRIOR TO AND THE
FUNDING AND THE INITIAL YEAR IS
ONLY PROVIDED FOR HALF OF THE
YEAR, SO WE HAD HIT THE GROUND
RUNNING WITH THE WITH
ANTICIPATION THAT WE WOULD BE
ABLE TO IMPLEMENT THIS PCP RIGHT
ON TIME. OKAY? ANY COMMENT FROM
L. A. AND THAT YEAH. SO, UM IN
GENERAL, THE STATE'S HIRING
PROCESS TAKES MANY MONTHS TO
FILL POSITIONS. UM AND
CONSIDERING THE NATURE OF THESE
POSITIONS, THE VAST MAJORITY OF
THEM ARE NOT. UM, POSITIONS LIKE
NURSING STAFF OR THE TYPE OF
POSITION THAT WE HAVE
SIGNIFICANTLY MORE DIFFICULTY
FILLING. UM SO GIVEN THAT THE
SIX MONTH KIND OF ASSUMPTION
SEEMS REASONABLE, UM, BUT THAT
BEING SAID THERE PROBABLY WILL
BE DIFFICULTIES HIRING SOME
SPECIFIC POSITIONS LIKE ANY OF
THE NURSING TYPE POSITIONS.
OKAY? THANKS. THANK YOU, SENATOR
. THANK YOU MEMBERS. THANK YOU
BOTH FOR YOUR PATIENTS, AND THAT
ITEM WILL BE HELD. AS WELL.
ALRIGHT, THIS WILL MOVE MOVE US
TO THE PUBLIC COMMENT. PORTION.
ARE THERE, FOLKS IN THE HEARING
ROOM WHO DO WISH TO PROVIDE
PUBLIC COMMENT OR TESTIMONY?
PLEASE LINE UP AT THE MIKE AND
GET AN ASSESSMENT OF HOW MANY
FOLKS WOULD LIKE TO PROVIDE
TESTIMONY TO THE COMMITTEE.
THE COMMISSION COMMITTEE VERY
MUCH WELCOMES YOUR PARTICIPATION
AND TESTIMONY. UM, WHEN YOU
APPROACH THE MIC, PLEASE STATE
YOUR NAME FOR THE RECORD. AND,
UM I CAN'T REALLY TELL HOW MANY
FOLKS WE HAVE THAT WANT TO
TESTIFY. BUT IF YOU COULD KEEP
YOUR COMMENTS BETWEEN ONE AND
TWO MINUTES TO DISCRETION,
WELCOME AND PLEASE PROCEED.
THANK YOU. GOOD AFTERNOON.
MORALES ON BEHALF OF ED TRUST
WEST. WE WANT TO EXPRESS OUR
SUPPORT FOR THE RE APPROPRIATION
OF UNUSED FUNDS FROM THE OFFICE
OF CRADLE TO CAREER TO EXPAND
EACH TRANSCRIPT TOOL. THE
EXPANSION OF THIS TOOL WILL
ALLOW FOR THE FOR DATA
INTEGRATION BETWEEN K THROUGH 12
AND COMMUNITY COLLEGES AND CAN
ASSIST IN REMOVING BARRIERS THAT
JULIAN RURAL STUDENTS ENCOUNTER.
THIS EXPANSION CAN FACILITATED
PROCESS FOR DUAL CREDITING AND
DO ENROLLMENT COURSES SO THAT
STUDENTS RECEIVE BOTH HIGH
SCHOOL AND COLLEGE CREDITS THAT
COUNT TOWARDS HIGH SCHOOL
GRADUATION. ME A THROUGH G
SUBJECT MATTER REQUIREMENTS AND
COUNTERS SATISFYING ITS
CERTIFICATE OF DEGREE AT A
COMMUNITY COLLEGE, CSU OR èC
SYSTEM AND ITS TRANSFER LEVEL
CREDIT. WE ALIGN OURSELVES TO
THE COMMENTS FROM SENATOR
SMALLWOOD CREVASSE AND THE
IMPORTANCE OF CONTINUING TO
INVESTMENTS FOR THIS TOOL. THANK
YOU. HI GOOD MORNING. MY NAME IS
MICHELLE VELEZ, AND I'M, THE
STATE PRESIDENT FOR THE
CALIFORNIA ASSOCIATION OF THE
MORTGAGE PROFESSIONALS AS A
STAKEHOLDER. I'M HERE ON BEHALF
OF OUR ASSOCIATION TO PROVIDE
SUPPORT FOR THE PROPOSED
INCREASE REQUESTS FROM THE
DEPARTMENT OF REAL ESTATE. IT IS
THE ASSOCIATION'S INTEND TO SEND
IN OUR LITTLE OF SUPPORT AS
WELL. CAMP BELIEVES THAT THE FEE
INCREASES WILL HELP STABILIZE
THE REAL ESTATE FUND AND WILL
ENSURE THAT THE DEPARTMENT OF
REAL ESTATES HAS THE RESOURCES
IT NEEDS FOR EFFICIENT TO WORK
EFFICIENTLY AND TO REGULATE THE
REAL ESTATE INDUSTRY AND, MOST
IMPORTANTLY, TO PROTECT OUR
CONSUMERS. THANK YOU. HELLO MY
NAME IS MEG SNYDER HERE ON
BEHALF OF THE CALIFORNIA
BUILDING INDUSTRY ASSOCIATION,
ALSO IN SUPPORT OF ITEM 2320. WE
ARE SUPPORTIVE OF THE
DEPARTMENT'S BUDGET CHANGE
PROPOSAL AND PETITION TO ADJUST
THE CONSUMER FEE SCHEDULE IN
LIGHT OF INCREASING COSTS AND
MARKET CONDITIONS. WE HOPE TO
SEE THAT THE DEPARTMENT
ADEQUATELY FUNDED THANKS SO
MUCH. HI GOOD MORNING, ANNA BUCK
ON THE BEHALF OF THE CALIFORNIA
ASSOCIATION OF REALTORS. WELL WE
ACKNOWLEDGE, UM, THE
DEPARTMENT'S POSITION OF THE
NEED TO RAISE FEES. AT THIS
TIME. WE DO HAVE CONCERNS WITH
THE BREATH OF THE PROPOSAL.
WE'VE SUBMITTED FORMAL COMMENTS
TO THE SUBCOMMITTEE, AND WE HOPE
THAT YOU'LL TAKE A MOMENT TO
READ THOSE. UM AND WE'VE BEEN IN
DISCUSSIONS WITH THE DEPARTMENT
AND WE LOOK FORWARD TO
CONTINUING THOSE DISCUSSIONS AS
THE BUDGET PROCESS UNFOLDS.
THANK YOU. GREETINGS MR CHAIR
AND MEMBERS OF THE COMMITTEE. MY
NAME IS TASIA STEPHENS. I'M A
LEGISLATIVE ADVOCATE WITH CARLOS
, CALIFORNIA, WHERE ONE OF THE
MEMBERS OF THE RACIAL EQUITY
COALITION, UM CO LED BY NEXT
GEN. CALIFORNIA THE RACIAL
EQUITY COALITION REPRESENTS A
STRONG COLLECTIVE ABOUT
BASICALLY GROUPS, RESEARCHERS
AND RACIAL EQUITY PRACTITIONERS
AND POLICY CHANGE AGENTS.
RESPECTFULLY REQUESTING THAT THE
BUDGET ALLOCATED 5 MILLION IN
ONGOING FUNDING TO PROVIDE THE
NECESSARY RESOURCES TO FULLY
IMPLEMENT THE FUNCTIONS OF THE
RACIAL EQUITY COMMISSION,
ESTABLISHED BY THE EXECUTIVE
ORDER BY THE GOVERNOR AND 16-22.
LAST YEAR, THE BUDGET ALLOCATED
$1.4 MILLION FOR THE RACIAL
EQUITY COMMISSION. EXCUSE ME. UM
AND THIS WAS OVER THREE YEARS
FOR THE RACIAL EQUITY FRAMEWORK
TO BE ESTABLISHED AS WELL AS
PROVIDING GUIDANCE TO LOCAL
JURISDICTIONS AND AGENCIES ON
RACIAL EQUITY. UNFORTUNATELY THE
COALITION HAS CONCERNS ABOUT THE
RESOURCES THAT ARE BEING
PROVIDED TO THE RACIAL EQUITY
COMMISSION. AND WE ARE URGING
NOT ONLY THE LEGISLATURE, BUT
THE GOVERNOR'S ADMINISTRATION TO
CONTINUE FULLY IMPLEMENTING IN
ORDER FOR THEM TO FULLY
IMPLEMENT THE WORK. THAT'S
AHEAD. UM BECAUSE THIS IS A
STATEWIDE COMMISSION. WE REALLY
LOOK LOOK FOR THE ALLOCATION OF
THE 5 MILLION TO ENSURE THAT THE
WORK IS COMPLETED, UH, TO THE
ADEQUATE NECESSARY FOR THE
STATE. THANK YOU. MR CHAIRMAN
MEMBERS MIKE BELOTE, SPEAKING ON
BEHALF OF THE CALIFORNIA
MORTGAGE ASSOCIATION IN SUPPORT
OF THE DEPARTMENT OF REAL
ESTATES BUDGET ITEM ON A LICENSE
FEE INCREASE. AH OUR MEMBERS DO
MORTGAGE LOANS. THEY ARE JUST
ONE ELEMENT OF THE VAST WORK
THAT THE DEPARTMENT OF REAL
ESTATE DOES, BUT IT'S IMPORTANT.
THESE PEOPLE ARE GETTING
MORTGAGE LOANS AND CONSUMER
PROTECTION IS CRITICAL. THE
DEPARTMENT IN MY VIEW HAS
ENGAGED WITH STAKEHOLDERS
INCLUDING US, AND IT HAS FOR 30
YEARS THAT I'VE REPRESENTED THIS
GROUP. THEY DO A GREAT JOB IN MY
VIEW OF PUTTING CONSUMER
PROTECTION FIRST, BUT ALSO
PROVIDING SERVICE TO THE
LICENSES WHO NEEDED TO DO THEIR
JOBS, SO I THINK IT'S A MODEST
INCREASE WERE IN SUPPORT OF IT,
AND WE'D ASK THAT IT BE INCLUDED
IN THE IN THE BUDGET. THANK YOU.
I DON'T SEE ANYONE ELSE IN THE
HEARING ROOM WHO LIKE TO PROVIDE
PUBLIC COMMENT, THANKS TO ALL OF
YOU, WHO DID. THOSE THAT MAY
WISH TO SUBMIT COMMENT IN
WRITING CAN DO SO TO THE
COMMITTEE STAFF. THIS TIME,
WE'LL MOVE TO THE ITEMS PER
VOTE. UM WE ARE. THESE ARE THESE
ARE COMPETITIVE ISSUES. ONE
THROUGH FIVE WILL SEGREGATE
THESE WITH RESPECT TO MOTIONS
AND FIRST TAKE ISSUE NUMBER ONE
AND I'LL ENTERTAIN A MOTION.
SOME MOVED. THANK YOU, SENATOR
SMALLWOOD. CUEVAS MOVES ISSUE
ONE APPROVED AS BUDGETED IS
THERE ANY ADDITIONAL DISCUSSION?
IF NOT, CONSULTANT. PLEASE CALL
THE ROLL. YEAH, I FEEL OH, NO,
NO, NO, I SMALL PURPOSE. I THANK
YOU. THE VOTES ARE 21 AND THAT
ISSUE ITEM IS OUT. WE'LL TAKE
THE BALANCE OF THE ISSUES TWO
THROUGH FIVE, AND I'LL ENTERTAIN
A MOTION. SO MOVE. THANK YOU.
THE MOTION IS TO APPROVE AS
BUDGETED ISSUES TWO THROUGH
FIVE. PLEASE CALL THE ROLL.
TODAVÍA DIÆN ILLA HØI SMALL
QUAVERS OVERSIGHT. THANK YOU.
THOSE ISSUES ARE OUT THANKS TO
EVERYONE STAFF AND PARTICIPANTS
FOR YOUR PRESENTATIONS. THIS
TIME, THE SUBCOMMITTEE ON STATE
ADMINISTRATION GOVERNMENT IS
ADJOURNED.