THE SENATE BUDGET
SUB-COMMITTEE NUMBER FIVE ON
CORRECTIONS, PUBLIC SAFETY,
JUDICIARY, LABOR AND
TRANSPORTATION WILL COME TO
ORDER. GOOD MORNING. WE ARE
HOLDING OUR HEARINGS HERE IN THE
CAPITOL. I ASK ALL MEMBERS OF
THE SUB COMMITTEE TO BE PRESENT
IN ROOM 112 SO WE CAN ESTABLISH
A QUORUM AND BEGINNING OR
HEARING TODAY WE WILL COVER THE
CALIFORNIA STATE TRANSPORTATION
AGENCY, CALIFORNIA
TRANSPORTATION COMMISSION,
DEPARTMENT OF TRANSPORTATION AND
THE OFFICE OF INSPECTOR GENERAL
AT THE HIGH SPEED RAIL AUTHORITY
, THE STATE IS FACING A
SIGNIFICANT BUDGET PROBLEM THIS
YEAR AND WE WILL BE LOOKING
CAREFULLY AT THE BUDGETS OF ALL
THE DEPARTMENTS UNDER SUB FIVE
AS WE FIGURE OUT HOW TO SOLVE
THE BUDGET PROBLEM TO ENSURE WE
HAVE TIME FOR EVERYTHING ON
TODAY'S AGENDA, INCLUDING PUBLIC
COMMENTS, WHICH WE WILL TAKE ON
ALL ITEMS AT THE END OF THE
HEARING. WE ARE HERE WE ARE
ASKING PRESENTERS TO KEEP THEIR
TESTIMONY UNDER FIVE MINUTES. I
WOULD ALSO ASK MY FELLOW
COMMITTEE MEMBERS TO KEEP THEIR
COMMENTS AND QUESTIONS CONCISE.
UM DOES ANYBODY HAVE ANYTHING TO
SAY RIGHT NOW? SEEING NÓ? UM I
WOULD LIKE TO ESTABLISH A QUORUM
CONSULTANT. PLEASE CALL THE
ROLL. FOR HERE. YAO. NEWMAN.
SEYARTO THANK YOU. THE
CONSULTANT NOTES. A QUORUM HAS
BEEN ESTABLISHED. LET'S BEGIN
WITH OUR FIRST ISSUE. NUMBER ONE
TRANSPORTATION BUDGET SOLUTIONS.
UH I ALSO WANT TO JUST STATE FOR
EVERYBODY THAT WE WILL BE TIMING
EVERY SINGLE PRESENTATION. NÓ
MORE THAN FIVE MINUTES WILL BE
ALLOWED. UM I ALSO WANT TO SAY
THAT, UM, WE ARE ASKING FOR
EVERY DEPARTMENT TO LOOK UP TO
15% OF SOMEWHERE TO CUT. UM
THOSE ARE THE SUGGESTIONS WE
WOULD LIKE TO MAKE FOR EVERY
SINGLE DEPARTMENT UNDER SUB
FIVE, SO WE WILL HEAR ISSUE
NUMBER ONE TRANSPORTATION BUDGET
SOLUTIONS. UM CALIFORNIA STATE
TRANSPORTATION AGENCY, PLEASE GO
AHEAD. THE. YOU ARE BEING TIMED.
GOOD MORNING, MADAM CHAIR AND
MEMBERS. MY NAME IS CARLOS QUANT
. I'M THE DEPUTY SECRETARY FOR
BUDGET AND ADMINISTRATION HERE
AT THE CALIFORNIA STATE
TRANSPORTATION AGENCY. TODAY,
I'LL BE PROVIDING AN OVERVIEW OF
THE GOVERNOR'S BUDGET SOLUTIONS,
UM IN THE 2024 TRANSPORTATION
BUDGET. WITH ME HERE TODAY. I
HAVE CHIEF DEPUTY SECRETARY CHAD
EDISON, UM, TO HELP ANSWER ANY
QUESTIONS THAT YOU MAY HAVE OVER
THE PAST THREE YEARS. WITH THE
SUPPORT OF THE LEGISLATURE,
CALIFORNIA HAS MADE SIGNIFICANT
ONE TIME INVESTMENTS. IN THE
STATE'S TRANSPORTATION
INFRASTRUCTURE INCLUDE, UH
TOTALING 16.1 BILLION
SPECIFICALLY, THIS FUNDING WAS
COMPRISED OF THE FOLLOWING
INVESTMENTS. 7.65 BILLION
GENERAL FUND FOR HIGH PRIORITY
TRANSIT AND RAIL INFRASTRUCTURE
PROJECTS THAT IMPROVE STATEWIDE
RAIL AND TRANSIT CONNECTIVITY
BETWEEN STATE, LOCAL AND
REGIONAL SERVICES AND ARE
DESIGNED TO REDUCE TRAFFIC
CONGESTION AND GREENHOUSE GAS
PRODUCTION. 4.2 BILLION IN
PROPOSITION ONE A BOND FUNDS FOR
THE HIGH SPEED RAIL PROJECT 1.2
BILLION FOR INVESTMENTS IN PORT
FREIGHT AND GOODS MOVEMENT
INFRASTRUCTURE 1.1 BILLION FOR
THE ZERO EMISSION TRANSIT
CAPITAL PROGRAM, WHICH SUPPORTS
INVESTMENTS IN ZERO EMISSION
VEHICLES. ASSOCIATED INFRA OR
TRANSIT OPERATIONS. 1 BILLION
GENERAL FUND FOR ACTIVE
TRANSPORTATION PROGRAM PROJECTS,
WHICH EXPAND WALKING AND BIKING
NETWORKS AND INCREASE THE SAFETY
AND MOBILITY OF NON MOTORIZED
USERS. 400 MILLION FOR THE
CLIMATE ADAPTATION PROJECTS THAT
SUPPORT CLIMATE RESILIENCY AND
REDUCE RISKS TO INFRASTRUCTURE
FROM EXTREME WEATHER EVENTS. IN
FACT, 350 MILLION GENERAL FUND
FOR HIGH PRIORITY GRADE
SEPARATIONS PROJECTS WHICH
SUPPORT CRITICAL SAFETY
IMPROVEMENTS AT GRADE CROSSINGS.
AND FINALLY, 150 MILLION FOR THE
RECONNECTING COMMUNITIES, UM,
HIGHWAY OF BOULEVARDS PILOT
PROGRAM. WHILE THE
ADMINISTRATION HAS MADE
SIGNIFICANT PROGRESS IN
IMPLEMENTING THESE INVESTMENTS,
THE STATE'S GENERAL FUND
REVENUES HAVE SIGNIFICANTLY
DECLINED, RESULTING IN A
STRUCTURAL BUDGET DEFICIT. TO
ADDRESS THE DEFICIT. THE
GOVERNOR'S BUDGET PROPOSES
APPROXIMATELY 4.8 BILLION IN
BUDGET SOLUTIONS. THE FIRST SET
OF SOLUTIONS ARE CASH MANAGEMENT
SOLUTIONS. THESE SOLUTIONS ALIGN
THE BUDGET WITH PROJECTED
EXPENDITURES AND LEVERAGE
EXISTING APPROPRIATIONS TO MEET
PROJECT OBLIGATIONS UNTIL FUTURE
APPROPRIATIONS ARE AVAILABLE.
THE PROPOSED BUDGET INCLUDES
2.75 BILLION IN CASH MANAGEMENT
SOLUTIONS, INCLUDING 2.1 BILLION
FROM THE COMPETITIVE TRANSIT AND
INNER CITY RAIL CAPITAL PROGRAM.
400 MILLION FROM THE ACTIVE
TRANSPORTATION PROGRAM. 150
MILLION FROM THE HIGH WAIST OF
BOULEVARDS PILOT PROGRAM AND A
100 MILLION FROM THE PORT AND
FREIGHT INFRASTRUCTURE PROGRAM.
THESE SOLUTIONS ARE NOT EXPECTED
TO HAVE ANY PROGRAMMATIC
IMPACTS. THE NEXT SOLUTION.
INCLUDED IN THE GOVERNOR'S
BUDGET IS A FUNDING DELAY. THE
GOVERNOR'S BUDGET PROPOSES TO
DELAY $1 BILLION IN Tð I èC P
FORMULA FUNDING FROM FISCAL YEAR
2024 25 TO 2526. THE NEXT
SOLUTION IS A FUN SHIFT. THIS
SOLUTION PROPOSES TO REDUCE 791
MILLION IN GENERAL FUND
APPROPRIATIONS IN THE Tð IR èC
P PROGRAM AND BACK FILL THEM
WITH GREENHOUSE GAS REDUCTION
FUNDS. THE FINAL SOLUTION IS A
BUDGET REDUCTION. THE SOLUTION
PROPOSES 296 MILLION IN GENERAL
FUND REDUCTIONS, INCLUDING 200
MILLION FROM THE ACTIVE
TRANSPORTATION PROGRAM AND 96
MILLION FROM THE 2021 PORT OF
OAKLAND APPROPRIATION FOR
VARIOUS PORT IMPROVEMENTS. I
WOULD NOTE THAT THE ACTIVE
TRANSPORTATION REDUCTION WILL
NOT IMPACT ANY EXISTING
COMMITMENTS MADE DURING THE MOST
RECENT ACTIVE TRANSPORTATION
PROGRAM GRANT CYCLE, AS THE
REDUCTION WOULD BE APPLIED TO
FUTURE GRANT AWARD CYCLES. WHILE
THE GOVERNOR'S BUDGET FOR
TRANSPORTATION INCLUDES SEVERAL
SOLUTIONS. IT ALSO MAINTAINS
ROUGHLY 99% OF THE FUNDING FOR
THE HISTORIC INVESTMENTS MADE IN
CLEAN TRANSPORTATION
INFRASTRUCTURE. THESE
INVESTMENTS ARE ALREADY
BENEFITING COMMUNITIES
THROUGHOUT THE STATE AND HAVE
LEVERAGED MORE THAN $27 BILLION
IN FEDERAL TRANSPORTATION
FUNDING FROM THE BIPARTISAN
INFRASTRUCTURE LAW. THE
ADMINISTRATION LOOKS FORWARD TO
WORKING WITH THE LEGISLATURE TO
CONTINUE TO PURSUE INVESTMENTS
IN TRANSPORTATION INFRASTRUCTURE
THAT IMPROVES SAFETY, ADDRESS,
CLIMATE ACTION AND ADVANCE
EQUITY. MY COLLEAGUES AND I ARE
AVAILABLE TO RESPOND TO ANY
QUESTIONS YOU MAY HAVE. THANK
YOU. THANK YOU. DO WE HAVE ANY
THANK YOU, LUKE CUSMA WITH THE
LEGISLATIVE ANALYST OFFICE. WE
FIND THAT MANY OF THE PROPOSED
SOLUTIONS ARE REASONABLE,
NOTABLY THE CASH FLOW
ADJUSTMENTS, UM, WHILE THEY
WOULD CREATE COST PRESSURES IN
FUTURE YEARS ARE DESIGNED TO
ALLEVIATE NEAR TERM COST
PRESSURES WITHOUT IMPACTING
FUNDING THAT IT'S ALREADY BEEN
COMMITTED. UM SIMILARLY, THE
PROPOSED FUND SHIFT FOR
COMPETITIVE Tð R èC P REDUCES
GENERAL FUND PRESSURES WHILE
MAINTAINING OVERALL FUNDING THAT
HAS ALREADY BEEN COMMITTED. AND
GIVEN THE BUDGET PRODUCT. UM
PROBLEM. THE REDUCTIONS TO A Dð
P IN THE PORT OF OAKLAND ARE
REASONABLE AS THIS FUNDING HAS
NOT YET BEEN COMMITTED. UM I DO.
GENERAL SOLUTIONS MAY BE NEEDED,
THOUGH, IF THE BUDGET PROBLEM
WORSENS FOR WHAT WAS PROJECTED
IN THE GOVERNOR'S BUDGET. A FEW
OPTIONS ARE AVAILABLE TO THE
LEGISLATURE, INCLUDING FOR THE,
UM FORMULA. Tð R èC P FUNDING.
PREVIOUSLY 2 BILLION GENERAL
FUND WAS PLANNED FOR FORMING THE
Tð R èC P IN 2425. AND GIVEN
THE CHA CHANGE BUDGET SITUATION,
THE LEGISLATURE MAY WANT TO
CONSIDER WHETHER THIS ONE TIME
APPROPRIATION REMAINS A TOP
PRIORITY. WE KNOW THAT THE
GOVERNOR PROPOSES A DELAY OF $1
BILLION UNTIL 2025 26 AND TO
SHIFT AN ADDITIONAL $261 MILLION
FROM GENERAL FUND TO G Tð RF.
BECAUSE THE FUNDING HAS NOT YET
BEEN COMMITTED TO SPECIFIC
PROJECTS. LEGISLATURE COULD
CONSIDER ADDITIONAL OPTIONS OR
TO ALTERNATIVES SUCH AS REDUCING
RATHER THAN DELAYING THE $1
BILLION. CHANGING THE AMOUNT
SHIFTED TO GGRF OR FOR THE
REDUCING GENERAL FUND. WE KNOW
THAT THESE OPTIONS DO HAVE TRADE
OFFS, NOTABLY REDUCING FUNDING
TO SUPPORT TRANSPORTATION,
INFRASTRUCTURE AND OPERATIONS.
UH, THE LEGISLATURE COULD ALSO
CONSIDER SHIFTING FUNDING FOR
CERTAIN PROGRAMS FROM THE
GENERAL FUND TO STATE
TRANSPORTATION FUNDS, SUCH AS
THE STATE HIGHWAY ACCOUNT OR THE
ROAD MAINTENANCE AND
REHABILITATION ACCOUNT. THE
LEGISLATURE TOOK A SIMILAR
ACTION LAST YEAR WHEN IT SHIFTED
500 MILLION FROM, UH ONE TIME
GENERAL FUND AUGMENTATIONS FOR
TRANSPORTATION TO THE STATE
HIGHWAY ACCOUNT. S¼ HÌ, A UM WE
KNOW THAT THIS COULD HELP
ADDRESS FUNDING CONDITIONS, BUT
COMES WITH LIMITATIONS AND TRADE
OFFS, NOTABLY, UM MANY OF THESE
FUNDS ARE LIMITED TO SPECIFIC
TRANSPORTATION PURPOSES UNDER
THE STATE CONSTITUTION, AND ALSO
THIS WOULD REDUCE FUNDING FOR
OTHER ACTIVITIES CURRENTLY
SUPPORTED BY THESE FUNDS. WE
RECOMMEND THAT THE LEGISLATURE
APPROVE MANY OF THE PROPOSED
SOLUTIONS, INCLUDING THE CASH
FLOW ADJUSTMENTS, THE FUND SHIFT
FOR COMPETITIVE Tð, A R èC P
AND THE REDUCTIONS FOR A Dð P IN
THE PORT OF OAKLAND. WE ALSO
RECOMMEND THAT THE L HÌ R
IDENTIFY IDENT ADDITIONAL
POTENTIAL BUDGET SOLUTIONS IN
TRANSPORTATION AHEAD OF THE
MAYOR. REVISION UM, WE NOTE THAT
THESE SOLUTIONS LIKELY WILL COME
WITH TRADE OFFS SUCH AS
SUPPORTING FUEL TRANSPORTATION
PROGRAMS AND ACTIVITIES THAT
WERE PREVIOUSLY INTENDED,
HOWEVER, TAKING THE TIME TO
CONSIDER RESEARCH AND SELECT
POTENTIAL OPTIONS NOW UM, WILL
HELP PREPARE THE LEGISLATURE FOR
THE DECISIONS THAT COULD NEED TO
MAKE IN MAY OR JUNE WHEN THERE
IS LESS TIME TO REVIEW AND
CONSIDER THESE OPTIONS. THANK
YOU. AND HAPPY TO ANSWER YOUR
QUESTIONS. THANK YOU. DO WE HAVE
ANYBODY FROM DEPARTMENT OF
FINANCE JAMES MOORE FROM
FINANCE? I DON'T HAVE ANYTHING
TO ADD RIGHT NOW. BUT HAPPY TO
ANSWER QUESTIONS, ALL RIGHT.
WE'LL MOVE TO THE PANEL PANEL.
DO YOU GUYS HAVE SENATOR? UH Dð?
RAZO THANK YOU, MADAM. CHAIR, I.
I QUESTION THE, UM YOU SAID THAT
THE, UH PROPOSED DELAY IN THE Tð
IR èC P ALLOCATIONS WOULD NOT
HAVE, UH, ANY IMPACT ON PROJECT
DELIVERY TIMELINES. COULD YOU
EXPLAIN WHAT METHOD YOU USE TO
REACH THAT CONCLUSION, PLEASE.
SURE. THANK YOU FOR THE
QUESTION. UM MEMBER DRA, SO WE
LOOKED AT THE GRANT APPLICATIONS
THAT WERE SUBMITTED FOR THE
PROJECTS FOR THE Tð A R èC P
FUNDING AND WE BASICALLY ALIGN
THE BUDGET WITH THE ANTICIPATED
PROJECT EXPENDITURE SCHEDULES.
SO THESE ARE LARGE PROJECTS THAT
ARE GOING TO TAKE PLACE OVER
MULTIPLE FISCAL YEARS. WE'VE
GOTTEN THE PLANS AND WE'VE
ALIGNED THE BUDGET TO MATCH UM,
WITH THE PROJECTED EXPENDITURES,
SO WE DON'T ANTICIPATE ANY ANY,
UM, IMPACTS FOR THE COMPETITIVE
Tð IR èC P PROGRAM. UH,
FUNDING. CASH FLOW SOLUTIONS.
JAMES MOORE FINANCE. I JUST
WANTED TO ADD, UH, DEPENDING ON
WHICH PIECE OF Tð. I èC P
YOU'RE TALKING ABOUT THE ANSWER
IS DIFFERENT. SO UM, AS, UH,
AGENCY JUST SAID THE COMPETITIVE
IS A BUCKET OF THE 3.65 THAT WE
CASH FLOWED THE FORMULA. Tð IR
èC P IS THE $1 BILLION DELAY
AND THAT WILL RESULT IN LOCALS
GETTING THE MONEY LATER AND TO
THE EXTENT THAT THEY
PRIORITIZING PROJECTS
IMMEDIATELY THERE, THERE COULD
BE SOME SORT OF DELAY. BUT FOR
THE COMPETITIVE PORTION THAT IS
NOT EXPECTED TO HAVE ANY SORT
OF, UH, PROGRAM IMPACT. YOUR
LAST COMMENT. ON PR èC P THERE
WOULD BE OR THERE COULD BE I. I
WOULD PREFER TO BETWEEN THE TWO
AS FAR AS IMPACT ON PROJECTS.
THE COMPETITIVE IS THE
TRADITIONAL PROGRAM. IT'S A
COMPETITIVE GRANT PROGRAM THAT
CASA ADMINISTERS THAT WE'RE NOT
EXPECTING TO HAVE ANY SORT OF
DELAYS BECAUSE, AS WAS STATED
EARLIER, WE'RE REALLY JUST
ALIGNING THE BUDGET WITH WHEN
EXPENDITURES ARE SUPPOSED TO
HAPPEN, BASED ON THE APPLICATION
EXPENDITURE SCHEDULES THE
COMPETITOR. SORRY THE FORMULA,
WHICH IS THE 4 BILLION THAT WE
TALKED ABOUT LAST YEAR. ONE OF
THE SOLUTIONS IS TO DELAY A
BILLION OF THAT FROM THE BUDGET
YEAR TO THE YEAR AFTER THAT,
BECAUSE THAT MONEY IS GOING OUT
TO LOCALS AND SITTING IN LOCAL
COFFERS. IF WE DELAY A YEAR, THE
1 BILLION IT IS GOING TO RESULT
IN LOCALS GETTING THE MONEY
LATER AND TO THE EXTENT THAT
THEY'RE PLANNING ON SPENDING
THAT MONEY AS SOON AS THEY GET
IT, UM IT IT COULD HAVE
PROGRAMMATIC IMPACT, SO I JUST
WANT TO MAKE SURE THAT FOR ONE
BUCKET OF Tð R èC P WERE SAYING
THIS WON'T IMPACT FOR THE OTHER
BUCKET. IT'S IT IS GOING TO
RESULT IN PROGRAM IMPACT. AND,
AND IS THERE A WAY OF GETTING,
UM, A MORE CLEARER IDEA OF WHAT
THAT IMPACT WOULD BE IS DO THEY
REPORT TO YOU AND SAY THIS IS
WHERE WE'RE AT? AND IT'S GONNA
FALL RIGHT IN THE MIDDLE, AND
WE'RE GONNA REALLY BE, UM,
SEVERELY IMPACT. WHAT HOW DO WE
GAUGE THAT IMPACT OTHER THAN
JUST GENERALLY SAY IT'S GONNA
IMPACT MEMBER DIAZO AND CHAD
EDISON, CHIEF DEPUTY SECRETARY
AT TELSTRA. UM WE EXPECT THE
IMPACTS TO BE MINOR, UM, IN
NATURE. UM EACH OF THESE
AGENCIES, ESPECIALLY THE LARGE
ONES HAVE ALREADY SUBMITTED
THEIR PROGRAMMING PLANS FOR IN
SOME CASES, ALL FOUR YEARS OF
MONEY. UM THE TYPE OF IMPACT
THAT YOU WILL SEE MOST OFTEN IS
A LOSS OF INTEREST EARNINGS ON
THAT BILLION DOLLARS BEING
DELIVERED EARLIER, SO THEY WILL
LOSE ONE YEAR OF INTEREST
EARNINGS. UM, MOST OF THEM HAVE
NOT YET PROGRAMMED THOSE FUNDS
AND THOSE THAT HAVE SAID THAT
THIS IS MANAGEABLE. UM AND SO
AGAIN, WE THERE THERE MAY BE
SOME IMPACTS, BUT THEY WILL BE
RECEIVING 75% OF THAT MONEY IN
THIS CALENDAR YEAR, AND VERY FEW
OF THEM CAN SPEND THE MONEY THAT
FAST RIGHT, THEY'LL THEY'LL BE
COMMITTING TO CONTRACTS, BUT
THEY WON'T BE DRAWING DOWN THE
FUNDS. SO WHILE THERE ARE
TECHNICALLY SOME SOME SOME
IMPACTS ON HOW MUCH MONEY EACH
AGENCY WILL ACCUMULATE INTEREST
EARNINGS, THAT'S THE PRIMARY
IMPACT THAT WE WILL SEE RATHER
THAN RATHER THAN NOT BEING ABLE
TO FUND PROJECTS AND MOVE THEM
FORWARD. OK, THANK YOU, SENATOR
NEWMAN. I I'M GOOD, MR EDISON.
JUST EFFECTIVELY ANSWER MY
QUESTION. SO THANK YOU. THANK
YOU, SENATOR. SEAR. YOU
HESITATE. SO LOOKING AT THIS. WE
HAVE TWO REDUCTIONS ABOUT 296
MILLION. THAT MEANS THAT MONEY
JUST IS NOT GOING TO GET SPENT.
BUT THEN EVERYTHING ELSE WITH
OUR $78 BILLION OUR $73 BILLION
DEFICIT THAT WE HAVE OUR DELAYS
GOING TO THE NEXT YEAR. OR BEING
SPREAD OUT AMONGST THE NEXT
THREE YEARS. UM AND OR SHIFTS.
THAT'S JUST TAKING IT FROM ONE
FUND TO ANOTHER. BUT ON THE
DELAYS GOING INTO THE NEXT YEAR
AND THE NEXT YEAR AND THE NEXT
YEAR, UH, WE ARE WE ARE
POTENTIALLY FACED WITH EXACTLY
THE SAME PROBLEM THAT WE'RE
HAVING THIS YEAR. SO ARE THERE
GONNA BE PRIORITIZED IN THE
BUDGET SO THAT THEY ACTUALLY GET
FUNDED, OR ARE WE GOING TO KEEP
KICKING THE CAN DOWN THE ROAD
AND THE PEOPLE THAT ARE DE ARE
ARE MAKING PLANS THAT DEPEND ON
THIS FUNDING. UM, ARE GONNA MAKE
THOSE PLANS AND THEN NOT HAVE
THE FUNDING. BECAUSE AT SOME
POINT WE'RE GOING TO HAVE TO
COME TO GRIPS WITH. WE NEED MORE
OF THE REDUCTIONS THAN THE
DELAYS AND THE, UH SHIFTS UNLESS
WE HAVE A MAGIC POT OF, UH,
REVENUE THAT'S GOING TO BE
INFUSED AND WE DON'T RIGHT NOW
THEY'RE OUT LOOKING FOR IT, BUT
I DON'T KNOW IF THEY FOUND IT
YET. SO WHAT? WHAT'S THE, UH,
WHAT'S THE PLAN WHEN WE SHIFT
AND, UH DELAY AND THEN IT'S JUST
NOT THERE. JAMES M DEPARTMENT OF
FINANCE. UH, WHAT I CAN SAY IS
WE PRIORITIZE THE BUDGET WINDOW
AND SOLVE THE BUDGET PROBLEM IN
THE BUDGET WINDOW. TO THE EXTENT
THAT THERE ARE ISSUES IN THE
FUTURE, WE WILL ADDRESS THEM. I
THINK THAT'S I. I APPRECIATE
YOUR POINT. I UNDERSTAND WHAT
YOU'RE SAYING. YEAH. OK, THANK
YOU. I APPRECIATE IT. THANK YOU,
UM FOR CALTA, THE FORMULA BASED
TRANSIT AND INNER CITY RAIL
CAPITAL PROGRAM FUNDING HOW MANY
REGIONS HAVE APPLIED FOR FUNDING
AND WHAT ARE SOME COMMON THEMES
AROUND THE REGIONS? AND CHAIR.
UH 45 OF THE 49 R Tð P S¼ HAVE
ALREADY SUBMITTED THEIR INITIAL
ALLOCATION PACKAGES BY THE
DECEMBER 31ST DEADLINE. A FEW
MADE ONLY LIMITED FUNDING
REQUESTS, BUT THE VAST MAJORITY
SUBMITTED PLANS THAT EITHER
COVER THE ENTIRE FOUR YEAR
PERIOD OR AT LEAST REQUESTED ALL
OF THE FUNDING AVAILABLE FOR
THIS FISCAL YEAR. AND THE KINDS
OF THEMES THAT THE PLANS ARE
ACTUALLY QUITE VARIED IN NATURE,
REPRESENTING THE DIVERSITY OF
NEEDS. AROUND THE STATE, A
SIGNIFICANT NUMBER OF AGENCIES
ARE APPLYING SUBSTANTIAL FUNDING
TO OPERATING EXPENSES, ENSURING
THAT SERVICE CUTS DON'T HAPPEN
IN THE REGIONS. THE THIS RANGES
FROM ENSURING STABILITY OF MICRO
TRANSIT AND PER TRANSIT SERVICES
IN SMALL CITIES AND RURAL AREAS,
PROVIDING SIGNIFICANT SUPPORT
FOR BAY AREA OPERATIONS AND
THOSE OF ORANGE COUNTY. MANY
REGIONS ARE USING THE FUNDING TO
BACKSTOP THE FUNDING PLANS FOR
MAJOR CAPITAL PROJECTS SUCH AS
BAR TO SAN JOSE OR THE L, A
METRO GOLD LINE TO MONTCLAIR.
RIGHT AND THEN FOR THE TRANSIT
TRANSFORMATION TASK FORCE, UH,
THAT HAS BEEN TALKED ABOUT A LOT
AND I. I SPECIFICALLY VERY
INTERESTED IN IN THIS EFFORT,
TOO. UM THERE'S A TECHNICAL
WORKING GROUP AS WELL. CAN YOU
PROVIDE MORE DETAIL ON WHAT THIS
GROUP WILL DO AND HOW THIS WORK
RELATES TO THE WORK OF THE TASK
FORCE? THANK YOU. UM, SO THE
SECRETARY APPOINTED THE 25
MEMBER TASK FORCE BACK IN
DECEMBER. WE HAD OUR FIRST
INTRODUCTORY MEETING BACK THEN
OUR FIRST IN PERSON MEETING WAS
HELD ON FEBRUARY 29TH. WE
CONTINUE TO MEET BY MONTHLY
THROUGH APRIL OF 2025. IN
ESTABLISHING THE TECHNICAL
WORKING GROUP THAT INCLUDES MANY
SUBJECT MATTER EXPERTS WHO
PROVIDE TECHNICAL EXPERTISE FOR
CONTENT AHEAD OF THE Tð Tð Tð F
MEETINGS AND PROVIDE FEEDBACK
THAT WILL HELP DRAFT THE
PRELIMINARY FINAL REPORT. THOSE
THOSE AT THOSE WORKING GROUP
MEMBERS IN THE SUBJECT MATTER,
EXPERTS AMONG THEM ARE WE WITH
THIS AN OPEN OPEN INVITATION TO
SUGGEST KEY KEY PEOPLE WHO WOULD
BE VALUABLE FOR US TO CONSULT
WITH. WE'VE REACHED OUT TO THE
CALIFORNIA TRANSIT ASSOCIATION.
WE'VE REACHED OUT TO MANY OF THE
TECHNICAL OR THE TRANS TASK
FORCE, UH, TASK FORCE MEMBERS TO
ASK FOR THEIR NAMES OF PEOPLE
THAT THEY RECOMMEND FOR ADVISING
THE TECHNICAL WORKING GROUP AND
GIVING A PERHAPS PRESENTATIONS
TO THE TASK FORCE ITSELF. WITH
TRANSIT FUNDS BEING, UM LET'S
SAY LIMITED IN IN ITS NATURE, AS
WE KNOW, UH, DO YOU BELIEVE THAT
WITH THE NUMBER OF AGENCIES THAT
ARE DUPLICATIVE IN ITS NATURE,
UM IN SOME REGIONS, UM SHOULD BE
CONSOLIDATED. THE NATURE. THAT'S
NOT A QUESTION. I'M NECESSARILY
PREPARED TO ANSWER AT THIS
POINT. UM, I THINK THERE'S A LOT
THAT HAS TO BE STUDIED IN EACH
AREA AROUND WHERE THE BEST
OPPORTUNITIES FOR COOPER
OPERATION CONSOLIDATION, UH, IN
IN OTHER KINDS OF EFFORTS WOULD
WOULD TAKE PLACE. THERE ARE MANY
THINGS WE'RE GOING TO BE
STUDYING IN THE TASK FORCE THAT
SHOULD FEED INTO THIS
CONVERSATION IN TERMS OF THE
BEST WAYS TO WORK TOGETHER TO
MAKE TRANSIT MORE MORE EFFICIENT
AND TO ADDRESS MANY OF THE, UH,
THE NEEDS OF GROWING TRANSIT
RIDERSHIP. AND IF THERE'S
DUPLICATIVE NATURE, AND LET'S
SAY THAT THESE AGENCIES THAT ARE
BEING CREATED SINCE THERE'S NÓ
UNIFORMITY IN THE CREATION OF
THESE AGENCIES, RIGHT, WE KNOW
THAT AAA LOCAL CITY CAN CREATE
AN AGENCY. WE KNOW THAT A COUNTY
CAN CREATE AN AGENCY. WE KNOW
THAT, FOR EXAMPLE, IN BAY AREA,
THERE'S 27 AGENCIES, UH, IN THE
NINE BAY AREA COUNTIES, UM AND
OFTEN DOING THE SAME SERVICE FOR
THE SAME RESIDENTS DURING THE
SAME TIME. DO YOU THINK THAT'S A
GOOD USE OF OUR FUNDS? UM THIS
IS THIS IS AN AREA WHERE AGAIN
THE DETAILS MATTER ON ON HOW TO
WORK TOGETHER, AND THERE ARE
MANY SERVICE NEEDS. EACH OF
THESE AGENCIES IS OFTEN SERVING
KEY KEY NEEDS IN THEIR
JURISDICTION, AND, UM HOW TO
WORK TOGETHER AND PROVIDE BETTER
SERVICE THROUGHOUT THE REGION IS
A TOPIC OF KEY CONVERSATION. BUT
EACH REGION HAS TO HAVE THIS
DIALOGUE AROUND HOW BEST TO WORK
TOGETHER WHEN THEY HAVE MULTIPLE
AGENCIES, AND THERE ARE MANY
UNMET SERVICE NEEDS IN REGIONS
WHERE WHERE, UH, WHERE WE'RE
BEING ABLE TO BEING ABLE TO
PROVIDE BETTER SERVICE SO THAT
MORE PEOPLE ARE ATTRACTED TO
TRANSIT IS REALLY CRITICAL, SO
THIS CONTINUES TO BE A REALLY
IMPORTANT CONVERSATION AROUND
HOW TO WORK TOGETHER, OK, AND IF
THERE'S AGENCIES THAT ARE
PROVIDING THE SAME SERVICE AT
THE SAME TIME FOR THE SAME
PEOPLE, DO YOU THINK THAT'S UH
WISE AND PUBLIC DOLLARS BEING
SPENT ON THE SAME SERVICE FOR
THE SAME PEOPLE FOR THE SAME
THING FOR THE SAME TIME FOR
DIFFERENT AGENCIES? I WOULD NEED
TO KNOW THE DETAILS OF THE
SPECIFIC EXAMPLES IN ORDER TO BE
ABLE TO COMMENT ON THAT. ALL
RIGHT. SO STUDY IS A GREAT IDEA.
RIGHT? LET'S STUDY THIS IDEA AND
TALK ABOUT THIS A LITTLE BIT
MORE, UM, FOR THE DEPARTMENT OF
FINANCE. WHAT IS THE CONDITION
OF THE MAJOR STATE
TRANSPORTATION FUNDS SUCH AS THE
STATE HIGHWAY ACCOUNT AND ROAD
MAINTENANCE AND REHABILITATION
ACCOUNT? AND WHY DIDN'T THE
ADMINISTRATION NOT PROPOSE TO
USE THESE FUNDS AS PART OF THIS
YEAR'S BUDGET SOLUTIONS? SIR
JAMES MOORE WITH FINANCE. UM I
DON'T HAVE THE FUND BALANCES
WITH ME, BUT THEY ARE RELATIVELY
HEALTHY. WE'RE NOT FACING ANY
SORT OF IMMEDIATE CRUNCH. UM,
THAT BEING SAID, THE REASON THAT
WE DIDN'T PROPOSE SHIFTING SOME
OF THESE EXPENDITURES TO THE S¼
HÌ A IS ONE AS WAS MENTIONED. I
THINK BY THE LE Ó, UH THE
CALIFORNIA CONSTITUTION
RESTRICTS THE ABILITY TO USE S¼
HÌ A FOR SOME OF THIS, UM SOME
OF IT, UH, LIKE A Tð P. UM WE
COULD. SOME OF THE OTHER STUFF,
ESPECIALLY WITH TRANSIT IS MUCH
LESS CERTAIN. UM WE SHIFTED A
LOT OF MONEY TO THE S¼ HÌ, A
FROM THE GENERAL FUND LAST YEAR
AS PART OF SOLUTIONS ULTIMATELY,
THE WAY THAT THE TRANSPORTATION
FUNDING WORKS AT CALTRANS, THE
MAJOR REHABILITATION PROGRAM
GETS S¼ HÌ A. THAT'S NOT
ALLOCATED TO OTHER THINGS, SO IN
EFFECT, WE WOULD BE TAKING MORE
MONEY FROM THE SHOP THAT THE
MAJOR REHAB PROGRAM GIVEN THE
FACT THAT WE WENT AND DID THAT
LAST YEAR, AS WELL AS A LOT OF
THE STORMS AND THINGS THAT HAVE
HAPPENED SINCE THEN, UH WE
DIDN'T FEEL THAT IT WAS
APPROPRIATE TO TAKE MONEY FROM
THE SHOP. UH, AS PART OF THIS
SOLUTIONS PACKAGE, OK AND I DO
WANT TO HIGHLIGHT THAT LAST
YEAR'S PROPOSAL FOR
TRANSPORTATION FUNDING IF YOU
REMEMBER A SIGNIFICANT PORTION
WAS CUT RIGHT, AND, UM, THERE'S
OBVIOUSLY CONVERSATIONS IN
REGARDS TO WHAT ELSE ARE WE
GOING TO POTENTIALLY CUT OR, UM
HOW ARE WE GOING TO FUND THIS IN
THE FUTURE WITH FUTURE FUNDING
MECHANISMS, SO I JUST WANT TO BE
VERY TRANSPARENT IN THIS THAT,
UH, WE ARE ASKING FOR ANY
DUPLICATIVE SERVICES, UM, TO BE
TAKING A LOOK AT ANY ADDITIONAL
CUTS THAT YOU GUYS UM, CLEARLY
SHOW BLOAT, UM AND AGAIN TRYING
TO PRIORITIZE WRITERS AS WELL AS
, UM, OUR ROADS AND THE THINGS
THAT OBVIOUSLY ARE COMMUNITY
MEMBERS NEED, SO I JUST WANT TO
PRIORITIZE THAT THERE'S NÓ
FURTHER QUESTIONS. WE CAN MOVE
ON TO. UM, UH, SENATOR DE RAZO.
THANK YOU, UH, A QUICK QUESTION.
I KNOW THERE'S REFERENCE TO, UM,
TAKING FUNDS FROM THE GREENHOUSE
GAS REDUCTION FUND. UM, I
UNDERSTAND. EVERY YEAR IT COULD
BE WHATEVER AND IT AND IT
CHANGES. BUT THIS YEAR WHAT IS
THAT TOTAL AMOUNT IN THAT FUND
THAT YOU'RE PULLING FROM, AND I
THINK OTHERS ARE LOOKING TO OR
HAVE PROPOSED TO PULL FROM SURE,
WE HAVE TWO DIFFERENT SOLUTIONS.
UH, THAT INVOLVE REPLACING
GENERAL FUND WITH THE GR F BOTH
IN THE TRANSIT SPACE. SO THE
COMPETITIVE Tð A R èC P, WHICH
IS THE TRADITIONAL GRANT PROGRAM
, UH, $530 MILLION IS BEING
SWAPPED FOR THE FORMULA. Tð IR
èC P. WE'RE TALKING ABOUT 261.
UM THAT REPRESENTS, UH LARGER
THAN ANTICIPATED AUCTION
PROCEEDS. AND SO WE HAD EXTRA
GGRF, UM AND WITH HAVING
RECEIVED A LOT OF THE
APPLICATIONS AND KNOWING WHERE
SOME OF THE Tð R èC P WAS GOING
, LOOKED AT THE LEGAL
REQUIREMENTS ON GRF AND KNEW
THAT THAT WAS A LEGAL
INAPPROPRIATE SWAP. SO I'M
SORRY. WHAT WAS THE AMOUNT
AGAIN? UH, 261 MILLION AND 530
MILLION IN YEAR OUT OF A TOTAL
AMOUNT OF. YEAH THAT'S THAT WAS
MY QUESTION. AMOUNT OF GGRF. OH,
I DON'T HAVE THAT INFORMATION
WITH ME, BUT I CAN WORK WITH
YOUR STAFF. IF YOU CAN GET THAT
TO ME, BECAUSE I WE'RE PULLING,
AND I I'M NOT SURE WHAT WE'RE
PULLING FROM. THANK YOU. ALL
RIGHT. SO YOU NÓ FURTHER
QUESTIONS. I APPRECIATE YOU
GUYS' TIME. WE'RE GONNA MOVE ON
TO ISSUE NUMBER TWO FLEET
REPLACEMENT. WE'RE GONNA FIRST
HEAR FROM CAL TRAINS. I KNOW I
MUST HAVE LIVING IN WE DON'T USE
. ALL RIGHT. UH, CALTRANS,
PLEASE GO AHEAD. WE ARE GOING TO
TIME YOU AT FIVE MINUTES. THANK
YOU. GOOD MORNING CHAIR AND
SENATORS. I'M STEVEN KECK, THE
CHIEF FINANCIAL OFFICER FOR
CALTRANS WITH ME TODAY IS KEITH
DUNCAN. UH, OUR CHIEF BUDGET
OFFICER AS WELL. IN OUR FIRST
PROPOSAL, CALTRANS REQUEST $279
MILLION ON THE STATE HIGHWAY
ACCOUNT FOR A TWOYEAR LIMITED
TERM INITIATIVE TO REPLACE THE
AGING FLEET IN STA ZERO EMISSION
VEHICLE INFRASTRUCTURE AT
CALTRANS FACILITIES ACROSS THE
STATE. OUR AGING FLEET OF MORE
THAN 12,000 VEHICLES REPRESENT,
UH ENVIRONMENTAL AND OPERATIONAL
CHALLENGES AS THEY AGE AND BEGIN
TO, UH, TO NÓ LONGER MEET OUR
OPERATIONAL NEEDS. FOR CLARITY.
OUR REQUEST OF $279 MILLION
INCLUDES 250 MILLION FOR FLEET
REPLACEMENT. $22.5 MILLION FOR
ZERO EMISSION VEHICLE
INFRASTRUCTURE AND $6.5 MILLION
TO SUPPORT THE STAFF THAT WILL,
UM INTAKE AND MODIFY THESE
VEHICLES FOR CALTRANS SERVICE.
THE PROPOSAL ADDRESSES YEARS
THREE AND FOUR OF A MULTIYEAR,
UH, PLAN TO REPLACE OUR VEHICLES
, UH, WITH, UH, THOSE VEHICLES
THAT HAVE THE HIGHEST EMISSIONS,
THE HIGHEST MILEAGE, THE HIGHEST
REPAIR COSTS AND VEHICLES THAT
HAVE BEEN DAMAGED IN SERVICE.
CALTRANS PLANS TO REPLACE
APPROXIMATELY THREE 1000
VEHICLES IN THE NEXT TWO YEARS
USING THIS FUNDING AND IN THIS
PHASE, WE ARE GOING TO FOCUS ON
MEDIUM DUTY AND HEAVY DUTY
VEHICLES AS WELL AS OUR OFF-ROAD
FLEET. UM, CALTRANS FLEET
OPERATIONS INVOLVE A VERY WIDE
RANGE OF VEHICLES, INCLUDING
THOSE THAT ARE RESPONSIBLE FOR
REPAIR AND REPLACEMENT OF SAFETY
GUARD RAILS, OUR SNOWPLOWS
VEGETATION REMOVAL, VEGETATION
CONTROL ROAD STRIPING AND A HOST
OF OTHER SPECIALIZED VEHICLES
SUCH AS, UH LOADERS, ASPHALT
GRINDERS, PAVERS EXCAVATORS. I
HAVE A HUGE LIST THAT I WON'T
GET INTO. UH, OUR OPERATIONS,
UH, AT CALTRANS ARE THE LARGEST
AND MOST COMPLEX FLEET IN THE
ESTATE OF CALIFORNIA. AND THOSE,
UH, FLEET OPERATIONS ARE VITAL
TO, UM, MAINTAINING
TRANSPORTATION INFRASTRUCTURE
AND FOR, UM, THE SAFETY OF OUR
TRAVELING PUBLIC. CONTINUATION
OF OUR MULTIYEAR REPLACEMENT
PLAN THROUGH THIS B èC P WILL
ENSURE THAT WE CAN CONTINUE TO
PERFORM OUR VITAL ROLE IN
CALIFORNIA. THANK YOU, UH, ANY
COMMENTS FROM L A Ó? WE HAVE
NOT RAISED CONCERNS WITH THIS
PROPOSAL. THANK YOU. THANK YOU.
DEPARTMENT OF FINANCE TED
DEPARTMENT OF FINANCE. UH, WE
DON'T HAVE ANY COMMENT AT MOMENT
. BUT HAPPY TO ANSWER ANY
QUESTION. DEFINITELY UM AND I DO
JUST WANT TO HIGHLIGHT THAT, UH,
WE HAVE A FELLOW IN PUBLIC
SAFETY. THAT'S YOUR SON AND HE'S
DOING A GREAT JOB. SO I JUST
WANTED TO GIVE YOU A KUDOS ON
THAT, UM, OTHER THAN THAT. DO WE
HAVE ANY PANELISTS THAT HAVE ANY
QUESTIONS? UH, SENATOR NEWMAN?
UH, MR KEG, MR DUNCAN. I SEE
THAT'S HOW WE SOFTEN YOU UP
BEFORE WE GO. CAN GET YOU OFF
GUARD AND LAY INTO YOU. RIGHT
YOU CAN. YOU CAN BLAME YOUR SON
LATER. UM II. I ACTUALLY YOU
KNOW, QUESTION ON THE SORT OF
PLANNED ACQUISITION OF MEDIUM
AND HEAVY DUTY. ZERO EMISSION
VEHICLES. UH, THEY'RE THE MARKET
REALLY HASN'T COME AS FAR AS IT
HAS FOR LIGHT DUTY. UH, MY
UNDERSTANDING, THERE'S ONLY
SLIGHTLY OVER 400 MEDIUM AND
HEAVY DUTY ZERO EMISSION TRUCKS
ON THE ROADS TODAY PERIOD, RIGHT
? AND SO YOU ARE PROPOSING TO
BUY A VERY LARGE NUMBER. UH, A
COUPLE OF CONSIDERATION. I'D
LOVE TO HEAR YOUR YOUR FEEDBACK.
UM, ONE BIG NUMBER. HOW YOU KNOW
HOW WHERE DO THEY COME FROM? UH
AND, UH, HOW DO YOU THINK ABOUT
PRICE RIGHT? EARLY TENS, UH,
MARKET? UH, AVAILABILITY TENDS
TO COST MORE. BUT BUT PROBABLY
MORE IMPORTANTLY, UM HOW DO WE
THINK ABOUT THIS AS A PILOT OR A
BASIS? UH, FOR LEARNING AND
REPLICATION BY OTHER
JURISDICTIONS THAT ARE UNDER THE
CLEAN FLEETS, REQUIREMENTS GONNA
HAVE TO DO THE SAME THING. AND
SO YOU KNOW, IN A PERFECT WORLD,
I THINK WE WOULD, UM METER THAT
PROGRESS BUT ALSO LEARN FROM IT.
UH BUT BUT THERE IS THE QUESTION
OF JUST RAW AVAILABILITY,
PARTICULARLY AROUND, UH, HEAVY
DUTY, RIGHT WHERE YOU KNOW
THERE'S SOME INHERENT CHALLENGES
WITH WITH BATTERY OPERATED
VEHICLES. UH, BUT, YOU KNOW, THE
HYDROGEN FUEL CELL TECHNOLOGY
HAS YET TO REALLY COME ONLINE IN
THE CALIFORNIA MARKET, AT LEAST
SO INTERESTED TO HEAR YOUR
THINKING THERE. YEAH, CERTAINLY.
SO FIRST, LET ME ADDRESS. UM UH,
YOUR QUESTION WITH REGARDS TO
HOW WE INTEND TO PURCHASE THIS
FLEET. WE DO HAVE A ZERO
EMISSION VEHICLE FIRST POLICY,
RIGHT, WHICH WHERE WE LOOK FOR,
UH, A VEHICLE THAT WILL MEET OUR
GOALS RIGHT? AND THAT'S THE
FIRST THING WE PURCHASE. IF WE
CAN'T GO THERE, THEN WE'LL MOVE
TO, UH, PLUG IN HYBRID. IF NOT
THAT, THEN HYBRID. THEN THEN, UM
TRADITIONAL, I, UM INTERNAL
COMBUSTION ENGINES. UM WHAT
WE'VE BEEN DOING WITH OUR FLEET
ACQUISITION SO FAR IS HEAVILY
CONCENTRATING ON THOSE ZERO
EMISSION VEHICLES THAT ARE
AVAILABLE NOW, AND THAT'S WHAT
WE DID IN PHASE ONE. UM THAT
HELPS TO EQUALIZE OUR FLEET. UH,
IT HELPS IT BRINGS US ON AS
EARLY ADOPTERS RIGHT OF ELECTRIC
VEHICLES AND KIND OF BUILDS UP
CREDIT. UH IN MEETING THE, UM
THE CLEAN AIR PLAN, SO WE'RE
BUILDING UP THAT CREDIT WITH THE
PURCHASES THAT WE'VE ALREADY
DONE. AND THEN AS WE MOVE INTO
THESE TYPES OF VEHICLES, WE'RE
GONNA BE PUSHING THE INDUSTRY TO
PONY UP. THEY'VE BEEN SAYING
IT'S BEEN. YOU KNOW, THESE ARE
COMING. THESE ARE COMING. NOW IS
THE TIME WE'VE GOT THE MONEY.
WE'VE GOT THE NEED. LET'S SEE
THEM. AND UH, THAT WILL
HOPEFULLY DRIVE THIS AND MAKE IT
EASIER FOR EVERYBODY IN
OURSELVES. AND THOSE THAT COME
BEHIND US, UM, IN TERMS OF, UH,
HOW, UH, THIS CAN PROVIDE AN
EXAMPLE FOR OTHERS TO FOLLOW. UM
I THINK, UM, UH, I KNOW THAT
OTHERS HAVE REQUESTED REPORTING
INFORMATION FROM US, UM, AND
WE'RE HAPPY TO WORK WITH STAFF
TO COME UP WITH LANGUAGE. THAT'S
NOT ONEROUS TO WHAT WE'RE TRYING
TO DO, BUT THAT CAN PROVIDE
INFORMATION TO OTHERS. BECAUSE
THIS IS A BIG TASK. UM BUT THE
FACT OF THE MATTER IS WE'RE
WE'RE NOT GONNA BE ABLE TO FIND
ZS IN EVERY CATEGORY AND THERE'S
AN ALLOWANCE FOR THAT WITHIN THE
CLEAN AIR. UH, PLAN, I. I
APPRECIATE IT. I WOULD SUGGESTS
IT'S GOING TO BE REALLY HARD. I
MEAN, IN FACT, IT'S PROBABLY NOT
POSSIBLE IN THE SHORT TERM. UH
ESPECIALLY IN THE HEAVY, UH,
DUTY CATEGORY TO FIND ZS. UM AND
SO YOU KNOW A LITTLE PROBLEMATIC
IF THAT DOESN'T HAPPEN RIGHT ON
ON A COUPLE OF LEVELS, RIGHT,
ESPECIALLY ABOUT MEETING YOUR,
UH ADVANCED CLEAN FLEET
REQUIREMENTS OVER TIME, BUT IT'S
GOOD TO HEAR THAT YOU'RE OPEN TO
SOME LEVEL OF REPORTING AND, YOU
KNOW, NOT OWNERS. BUT II. I
WOULD HOPE WE'D INCLUDE THAT,
UH, IN THE BUDGET LANGUAGE SO
THAT UH OTHER JURISDICTIONS
WOULD GET THE BENEFIT OF THE
LEVERAGE THAT CALTRANS IS GONNA
APPLY. THANK YOU. SENATOR SARA
THANK YOU. I JUST WANNA WE HAVE
3000 VEHICLES TO REPLACE CORRECT
THAT'S OUR PLAN FOR THE NEXT TWO
YEARS? YES. AND YOU. THE
ALLOCATION NEEDED IS 558
MILLION. UH, OH, FOR THE TWO
YEARS? YEAH, IT'S 279 MILLION A
YEAR. YES, OK. SO YOU KNOW, JUST
AS AN EXAMPLE OF DIESEL FUELED
SWEEPER. IS $330,000. AND A Z
SWEEPER. ABOUT $708,000. SO IT'S
100 AND 14% MORE. AND I'M NOT
SURE HOW. BECAUSE OF 3000. IF WE
TAKE THAT THREE 1000. I KNOW ALL
OF THEM AREN'T GONNA BE STREET
SWEEPERS. BUT THAT'S 100 AND
$86,000 PER VEHICLE. SO YOU KNOW
WHEN WE'RE OPERATING IN A
DEFICIT THAT WE DON'T SEE THE
REVENUE PART COMING BACK TO LIFE
ANYTIME REAL SOON. UM IT IT JUST
SEEMS TO ME ESPECIALLY WHEN
WE'RE NOT COMPLETELY FAMILIAR
WITH THE LONG-TERM TECHNOLOGY.
IN OTHER WORDS, YOU KNOW WE HAVE
A REPLACEMENT. PROGRAM FOR THE
VEHICLES. WE KNOW NOW WE DON'T
KNOW HOW LONG ZEV VEHICLES ARE
GOING TO LAST ON THE ROAD. HOW
LONG ARE YOU ZEV SWEEP STREET
SWEEPER IS GOING TO LAST ON THE
ROAD. UM AND IF WE'RE GOING TO
SPEND ALL THIS MONEY, I MEAN,
WE'RE SPENDING 100 AND 14% MORE.
FOR STREET SWEEPER. TRYING TO
MEET THIS GOAL. AND THIS THIS
SEEMS TO ME THE TIME THAT WE
KIND OF PUT THOSE PLANS ON HOLD
FOR A LITTLE BIT SO THAT WE CAN
DO THINGS THAT MAKE SENSE IF I
WENT OUT, UH, TO GET A, UM, A
SMALL VEHICLE FOR OUR HOUSEHOLD
AND I CAME HOME WITH A PORSCHE.
UM YEAH, MY WIFE WOULD PROBABLY
LOOK UNFAVORABLE UPON THAT AND
SHE WOULD PROBABLY QUESTION
WHETHER I SHOULD BE, UH, BESIDE
HER SIDE. UH, MUCH LONGER. UH,
GIVEN JUST THE FINANCIAL
IMPLICATIONS OF WHAT I WAS DOING
, SO IT DOESN'T MAKE SENSE TO ME
THAT WE'RE GOING TO THAT. WE
CONTINUE DOWN THIS PATH OF A
VERY, VERY EXPENSIVE PLAN TO
REPLACE A BUNCH OF VEHICLES. UH
EVEN IF IT'S YOU KNOW, EVEN IT'S
IF IT'S THE AIR QUALITY THING,
THE ZEV THAT WE'RE TRYING TO DO
THE ELECTRIC VEHICLE THING. WHEN
WE HAVE A 70 THREE BILLION
DOLLARS DEFICIT WE HAVE TO GET
WE HAVE TO STOP SPENDING SOME
MONEY SOMEWHERE. AND EVERYTHING
I SEE IS WELL, WE'RE GOING TO
SPEND MORE. YOU KNOW, WE'RE
JUSTIFYING WHAT WE STILL HAVE TO
SPEND TWICE AS MUCH ON A VEHICLE
HERE. SO, YOU KNOW. HOW DO WE
JUSTIFY CONTINUING DOWN THAT
PATH? WHEN WE COULD GET ALL THE
VEHICLES WE NEED? NOW OR EXTEND
THE LIFE OF SOME OF THE
VEHICLES. WE HAVE. UNTIL WE
ACTUALLY HAVE AN ACCURATE READ
ON WHAT OUR REVENUE PICTURE IS
GOING TO GET ARE GOING TO BE IN
THE FUTURE. UM BECAUSE THAT'S
THE BIG THING THAT'S MISSING, IF
WE HAD $100 MILLION OF
ADDITIONAL REVENUE ARE $100
BILLION OF ADDITIONAL REVENUE
THAT WE COULD SEE ON THE HORIZON
THAT WAS ACCURATE. I. I WOULD BE
A LOT MORE COMFORTABLE MOVING IN
THAT DIRECTION RIGHT NOW. WE
DON'T AND SO, I. I JUST DON'T
UNDERSTAND HOW WE'RE GOING TO
KEEP GOING DOWN THE ROAD. AT
SOME POINT. WE HAVE TO KIND OF
OUR DEPARTMENTS WHO ARE IN
CHARGE OF SPENDING THE MONEY. WE
ARE GOING TO HAVE TO BE HONEST.
WITH US AND SAY THIS IS NOT
GOING TO GET US, UH, FISCALLY IN
OR GET OUR FISCAL HOUSE IN ORDER
IN CALIFORNIA. IF WE KEEP DOING
THIS AND STAYING STAYING THE
COURSE ON THIS WHILE WE HAVE NÓ
NÓ WAY OF PAYING FOR IT. SO UM
SO THAT MY I GUESS MY QUESTION
IS DO ARE WE ABLE TO EXTEND THE
LIFE OF SOME VEHICLES? AND DOES
IT MAKE MORE SENSE TO REPLACE
SOME OF THOSE VEHICLES LIKE A
STREET SWEEPER? UH WITH THE SAME
KIND OF VEHICLE THAT THEY HAVE
NOW FOR HALF AS MUCH AND THEN
WHEN THAT ONE RUNS ITS LIFE, WE
HAVE A BETTER PICTURE OF WHAT
ALL OF THE OTHER, UH
IMPLICATIONS ARE OF SWITCHING TO
A ZEV VEHICLE. YEAH, CERTAINLY,
SENATOR. YOU YOUR QUESTION,
REALLY? HIGHLIGHTS THE POLICY
THAT WE'RE OPERATING UNDER NOW,
SO WE UM, WE HAVE A NEED TO
REPLACE THESE AGING VEHICLES AND
WE HAVE TO DO SO UNDER THE
CURRENT LAW AND THE POLICIES
THAT WE FOLLOW. UM WHERE WE ARE
NOW IS A RESULT OF YEARS OF
UNDERST. IN IN REPLACING OUR
FLEET, SO SOME OF OUR FLEET
VEHICLES ARE DECADES OLD AND
REALLY COST MORE TO REPAIR THAN
YOU CAN POSSIBLY IMAGINE,
ESPECIALLY SOME OF THE MORE
SPECIALIZED I'M FAMILIAR FIRE
TRUCKS OR VERY, VERY THERE YOU
GO. YEAH SO VERY SIMILAR IN IN
THE SPECIALIZED VEHICLE, SO THE
LONGER WE PUSH THIS OFF, AND WE
HAVE FOR DECADES, WHICH IS WHY
TWO YEARS AGO WE CAME WITH THIS
FIRST STEP IN THIS MULTIYEAR
PLAN. UM AND YOU KNOW, REALLY,
WE NEED TO FOLLOW THE POLICIES
THAT ARE IN PLACE WHEN WE'RE
WHEN WE'RE USING THESE VEHICLES.
I WILL SAY, HOWEVER, THAT THESE
FUNDS THAT WE'RE USING ARE STATE
TRANSPORTATION FUNDS, WHICH
COMES FROM GAS TAX REVENUE. UM,
WE'RE NOT SEEING THE KIND OF
SHORTFALLS THAT WE'RE SEEING IN
THE GENERAL FUND SIDE IN IN OUR
OWN TRANSPORTATION SPACE, SO
IT'S NOT QUITE THE SAME
CALCULATION. BUT WE COMPLETELY
UNDERSTAND WHERE I UNDERSTAND.
THE GAS TAX IS WHAT PAYS FOR
THIS, BUT THAT'S HOW THAT'S THE
PAIN. WE FEEL EVERY TIME WE GO
AND PAY $5 A GALLON FOR GAS.
UNDERSTOOD. THANK YOU. SENATOR
Dð RAZA. THANK YOU. EXCUSE ME.
UM I WANT TO ASK, AND HOPEFULLY
I HAVE A I'M NOT TOO OFF ON THIS
, BUT IT'S MY UNDERSTANDING THAT
WITH REGARDS TO THE FLEET THAT
CALTRANS IT IS INVOLVED IN
BUILDING SOME OF THE STATE
FLEET. IN Dð G S¼ FACILITIES. UM
AND IF SO, ARE YOU PROCURING THE
PARTS AND THEN MANUFACTURING
THEM IN THE FACILITIES? COULD
COULD YOU EXPLAIN THAT BUILD
PROCESS? CERTAINLY SO, UM, IN
MANY OF OUR SPECIALIZED VEHICLES
SUCH AS, UM, FOR EXAMPLE, THE
GUARD RAIL REPLACEMENT SYSTEMS
THAT I TALKED ABOUT EARLIER. UM
THOSE AREN'T THINGS THAT YOU
JUST GO BY AT A DEALERSHIP.
RIGHT YOU NEED TO, UM, FIRST
DESIGN YOUR SPEC YOUR
SPECIFICATIONS FOR WE NEED TO DO
IN THIS CASE, THERE'S A CRANE ON
THE BACK THAT THAT HELPS SET THE
POSTS AND THERE'S A BUNCH OF
SPECIALIZED EQUIPMENT ON A
TRUCK. SO WHAT WE DO AT AT
CALTRANS, WE HAVE A, UM, A, UM,
AN EQUIPMENT SHOP. SEVERAL
EQUIPMENT SHOPS THROUGHOUT THE
STATE THAT WILL INTAKE A BLANK
VEHICLE. IF YOU WILL, UM, A
CHASSIS FROM A DEALERSHIP OR A
DEALER UNDER CONTRACT AND THEN
WE FABRICATE AND BUILD WHAT WE
NEED FOR CALTRANS PURPOSES ON
THAT TRUCK. AND THAT'S UH PART
OF WHAT THE STAFF THAT ARE
MENTIONED IN THIS B èC P WILL
BE DOING IS MODIFYING THE TRUCK
TO FEED OUR SPECIFIC NEEDS AND
FOR THAT SPECIALIZED EQUIPMENT.
OK I DIDN'T KNOW WE WERE IN THE
MANUFACTURING. OH, IT'S QUITE
IMPRESSIVE. IF YOU HAVE TIME.
WE'D LOVE TO SHOW YOU A TOUR.
SOUNDS LIKE IT. UM AND I KNOW
YOU PAY A LOT OF ATTENTION TO
THE QUALITY. UH BEFORE
PURCHASING THE VEHICLES AND MY
NEXT QUESTIONS HAVE TO DO WITH
THE QUALITY NOT OF THE VEHICLES,
BUT OF THE JOBS, UH, THAT ARE
CREATED AND SO WITH, UM, JUST
WANTED TO ASK ABOUT, UM, CAN YOU
CæA CALTRANS SUGGEST WAYS FOR,
UM, THE FRAME. WORK OF GOOD JOBS
TO BE APPLIED TO OTHER
TRANSPORTATION. UH INVESTMENTS.
UH CAN WE USE BEST VALUE
PROCUREMENT, UH, WITH REGARDS TO
ENFORCING JOB COMMITMENTS. UH
AND I SAY THIS BECAUSE IN 2022,
WE GOT HIGH ROAD STANDARDS FOR
THE SCHOOL BUS CONTRACTS, AND
THEN WE, UM, ALSO SIGNED, UM UH
UH, THAT YEAR. UH UH, THE LAW
THAT REQUIRES Dð, G, S¼ AND
CALTRANS TO APPLY STANDARDS FOR,
UH UM GOOD JOBS IN TRANSIT, ZERO
EMISSION TRANSIT VEHICLES ARE
ELECTRIC VEHICLES AT $10 MILLION
OR MORE, SO I JUST WANT, YOU
KNOW WHAT IS? WHAT IS IT THAT
CALTRANS CAN SUGGEST, UH, TO BE
APPLIED TO OTHER TRANSPORTATION
INVESTMENTS. SENATOR THAT'S A
VERY GOOD QUESTION. AND ONE I
THINK THAT DESERVES A MORE COMP
ANSWER THAN I'M PREPARED TO GIVE
AT THIS TIME. I'D LOVE TO WORK
WITH YOUR STAFF ON THAT, BUT I
WILL SAY WITH REGARDS TO BEST
VALUE PROCUREMENT, WE ARE, UM,
UTILIZING THAT FOR AT LEAST HALF
OF OUR FLEET THAT ISN'T SUBJECT
TO THE Dð G S¼, UH, MASS
CONTRACTS. UM WE ACTUALLY REALLY
LIKE THAT OPTION RIGHT? IT GIVES
US THE OPTION TO LOOK AT WHAT
KIND OF JOBS ARE CREATED. ALSO
WHAT'S THE QUALITY OF THE
VEHICLE BEING PURCHASED? NOT
JUST THE CHEAPEST, BUT WHAT'S
THE BEST? OUR NEEDS LAST THE
LONGEST AND COST US THE LESS THE
LEAST IN THE LONG RUN. SENATOR
NEWMAN. INTO THAT CONVERSATION.
THANK YOU. SO I. I JUST WANNA
TOUCH VERY QUICKLY ADD SOME
CONTEXT. UH TO SENATOR C'S
QUESTION MR KIRK'S ANSWER
BECAUSE I THINK YOU HAVE, UM,
TOUCHED ON SOMETHING REALLY
IMPORTANT. RIGHT SO, SO CALTRANS
AND ALL THESE OTHER
JURISDICTIONS ARE BOUND BY, UM,
GOALS THAT THE LEGISLATURE HAS
ACTUALLY PROMULGATED AND
EMBRACED. AND SO THEY I CORRECT
ME. I'M WRONG. BUT THE ADVANCED
CLEAN FLEETS RULE REQUIRES 50%
OF YOUR PURCHASES TO BE ZE VÆ S¼
NOW, UH AND 100% BY 2027 AND SO
YOUR YOUR POINT IS ACTUALLY WELL
TAKEN. IS THE QUESTION. HOW DO
WE FIND THE RIGHT BALANCE
BETWEEN SORT OF FISCAL
CONSTRAINTS RIGHT NOW, AND THOSE
LARGER, VERY ASPIRATIONAL GOALS.
UM WE PROBABLY HAVE TO HAVE
THOSE CONVERSATIONS AND THE
POLICY FORUM AS WELL. UH, BUT
THIS IS I THINK THE TENSION THAT
WE'RE GONNA FEEL AS WE MOVE
THROUGH THIS BUDGET CRISIS, SO I
MEAN, I DO APPRECIATE THE ANSWER
, BUT I THINK YOUR POINT IS GOOD
. IT COMES AT A COST. UH THE
PREDICATE HAS ALWAYS BEEN THAT
THIS HAS BEEN WORTH THE COST,
BUT IN AN ENVIRONMENT OF REAL
FISCAL CONSTRAINTS, YOU KNOW, WE
PROBABLY HAVE TO REVISIT THAT AT
SOME POINT, UH, BECAUSE IT HAS A
HUGE IMPACT ON, UH,
ORGANIZATIONS LIKE CAL TRANS AND
IF YOU'D LIKE TO COMMENT FINE,
BUT I, I JUST WANT TO EXPRESSING
MY SYMPATHY MORE THAN ANYTHING I
APPRECIATE. SO I THINK IT WAS
MENTIONED THAT IF SOMEBODY
PULLED UP A PORSCHE, THE
DRIVEWAY UH WHAT WOULD HAPPEN,
RIGHT, I? I THINK PEOPLE WOULD
STAY A LITTLE BIT LONGER IN THAT
PARTICULAR MARRIAGE. UM IF
THERE'S A PORTION IN THE
DRIVEWAY, RIGHT, SO THERE'S NÓ
FOOD IN, YOU KNOW, THERE'S A LOT
THERE, RIGHT. SO UM, ONE OF THE
QUESTIONS I HAVE, YOU KNOW, IT
SAYS HERE, OBVIOUSLY THREE
$130,000 FOR A TRADITIONAL, UH,
TYPE OF ENGINE TRUCK AND, UM YOU
KNOW ABOUT $708,000 FOR, UH,
ZERO EMISSION VEHICLE. THE
QUESTION I HAVE IS IN REGARDS TO
IS THERE A COST SAVING ANALYSIS
DONE IN REGARDS TO THE
MAINTENANCE AND THE LONGEVITY OF
THE VEHICLE, RIGHT? UM, IS THERE
ANY COMMENTARY ON THAT? UH, YEAH
, CERTAINLY SO IN THE SHORT TERM
AS WE REPLACE OUR FLEET WITH
ELECTRIC VEHICLES, ESPECIALLY ON
THE, UM WHAT WE'VE ALREADY
EXPERIENCED IN THE FIRST TWO
YEARS OF THIS PROGRAM. WE ARE
SEEING IMMEDIATE REDUCTION IN
MAINTENANCE COSTS BECAUSE MOST
OF THESE VEHICLES COME IN UNDER
WARRANTY. PART OF THE PROBLEM
THAT WE HAVE NOW IS OUR FLEET IS
ON AVERAGE I. I DON'T KNOW THE
EXACT NUMBER, BUT IT'S LIKE MORE
THAN A DECADE OLD FOR EACH
INDIVIDUAL ON AVERAGE FOR THE
CARS, SO AS THEY COME IN,
THEY'LL BE UNDER WARRANTY. ALSO
IT WHAT'S NOT REALLY TALKED
ABOUT A LOT IS ELECTRIC
VEHICLES. HAVE A LOT FEWER, AND,
UH, FRANKLY, LESS COMPLICATED
PARTS TO THEM, AND THEY DO TEND
TO LAST LONGER, SO WE ARE
ALREADY SEEING REDUCED
MAINTENANCE COSTS. WE EXPECT
THAT TO INCREASE AS WE MOVE
FORWARD, UM AND BY NOT ALLOWING
OUR FLEET TO AGE SO MUCH AS WE
HAVE, UH, BY UNDER INVESTMENTS.
WE'LL SEE A MAINTENANCE COSTS
COME DOWN THERE AS WELL. AND
I'VE ALSO HAD CONVERSATIONS WITH
, UM OTHER INTERESTED PARTIES IN
REGARDS TO A CLEANER ENVIRONMENT
, WHICH WE HAVE TO MAKE
INVESTMENTS IN WHETHER THEY'RE
TOUGH OR BUT YOU KNOW, WE ALL
WANT CLEAN AIR AND SO FORTH. UM
MY UNDERSTANDING IS THAT THESE
VEHICLES, THESE CLEAN VEHICLES
ARE A LITTLE BIT LIGHTER AS WELL
. AND UH, DOES LESS DAMAGE. UM
IN INFRASTRUCTURE AND
POTENTIALLY COULD CARRY IS THAT
ACCURATE OR SOMEWHAT ACCURATE?
IT IS ACCURATE IN SOME CASES, UM
WHEN IT COMES TO DAMAGE IN THE
ROADWAY SURFACE. YOU REALLY
DON'T SEE THAT UNTIL YOU GET UP
INTO THE RANGES OF MANY TENS OF
THOUSANDS OF POUNDS OF STANDARD
PASSENGER VEHICLE DOES VERY
LITTLE DAMAGE. IT'S MOSTLY THE
LARGER VEHICLES. UM SO IT'S SORT
OF DEPENDS ON WHAT WE'RE
REPLACING. OK AND THEN, UM, YOU
KNOW, OVERALL, I JUST WANTED TO
ALSO ASK IN WHAT IS THE
ESTIMATED ONGOING COSTS REQUIRED
TO MAINTAIN AND REPLACE THE
FLEET. AND UM, YOU KNOW, HOW
WILL THIS POTENTIALLY EVOLVE IF
WE ADOPT MORE ZS? YEAH,
CERTAINLY. SO THEY THE NUMBER
THAT WE'VE TARGETED FOR THIS B
èC P AT ABOUT $279 MILLION IS
VERY CLOSE. TO WHAT? UM THE
ADDITIONAL FUNDING THAT WE NEED
GOING FORWARD. WE ESTIMATE
PRETTY ROUGHLY ESTIMATE THAT THE
COST TO MAINTAIN OUR FLEET AND
TO KEEP UP WITH REPLACEMENT ON A
REASONABLE CYCLE THAT'S
CONSISTENT WITH DEPARTMENT OF
GENERAL SERVICES GUIDELINES. UM,
WILL COST SOMEWHERE AROUND THREE
$100 MILLION A YEAR, SOME OF
WHICH WE ALREADY HAVE SOME OF
WHICH WE'RE ASKING FOR TODAY.
UM, AND WE EXPECT AS WE MOVE
FORWARD FOR MAINTENANCE COSTS TO
DECREASE AND THERE WILL BE, UH,
INCREASED COSTS AS WE MOVE
FORWARD WITH THESE VEHICLES, UM,
BECAUSE, FRANKLY, RIGHT NOW AT
LEAST, ELECTRIC VEHICLES DO COST
MORE THAN THEY ICE COUNTERPARTS.
IT'S KIND OF BALANCE. THANK YOU,
UM, SO WITH NÓ FURTHER QUESTIONS
OR COMMENTS, UH, WE CAN MOVE ON
TO ISSUE NUMBER THREE,
INSTITUTIONALIZING THE
CALIFORNIA IN INTEGRATED TRAVEL
PROJECT AND BUILDING A DATA AND
DIGITAL SERVICE DIVISION. UH,
WE'RE GOING TO HEAR AGAIN FROM
YOU GUYS. UM PLEASE. YOU GET
FIVE MINUTES, I'LL I'LL TAKE
MUCH LESS THAN THAT. THANK YOU.
THE UH, IN THIS REQUEST. WE'RE
LOOKING FOR 70 PERMANENT
POSITIONS AND RAMPING UP TO 20
$26.3 MILLION TO
INSTITUTIONALIZE THE CALIFORNIA
INTEGRATED TRAVEL PROJECT AND
ESTABLISH A DATA AND DIGITAL
SERVICES DIVISION. THIS
INITIATIVE AIMS TO ADDRESS THE
COMPLEX AND FRAGMENTED
TRANSPORTATION ECOSYSTEM IN
CALIFORNIA, WHICH ENCOMPASSES
MORE THAN 700, DIFFERENT TRANSIT
SERVICE PROVIDERS, A MULTITUDE
OF DIFFERENT FAIR PAYMENT
SYSTEMS, LIMITED SERVICE
APPLICATIONS AND DIVERSE
REGIONAL POLICIES. THE LACK OF
STANDARDIZATION AND
INTEROPERABILITY ACROSS THESE
AGENCIES AND EVEN BETWEEN THE
DIFFERENT MODES LEADS TO
CUSTOMER. UH, CONFUSION AND
SOMETIMES FRUSTRATION, AND IT
HAMPERS RIDERSHIP ON OUR ROUTES.
THIS PROPOSAL WILL HELP TO
PROVIDE RESOURCES TO THE
DEPARTMENT TO, UM HELP AGENCIES
COMPLY WITH GENERAL TRANSIT FEED
SPECIFICATIONS AND ALSO, UM REAL
, UM, ALSO KNOWN AS G, Tð, F S¼
AND FOR AGENCIES TO APPLY REAL
TIME G Tð F S¼ DATA. AND WHAT
THE GT FSS IS. IT'S A LANGUAGE
THAT ALLOWS, UH FOR TRANSIT
ROUTES AND IN THE CASE OF REAL
TIME, G Tð F S¼ ALLOWS FOR THE
TRACKING OF TRANSIT SERVICES IN
REAL TIME IN AN APPLICATION LIKE
GOOGLE MAPS OR APPLE MAPS
INSTEAD OF HAVING A SPECIALIZED
APPLICATION FOR WHATEVER SERVICE
YOU HAPPEN TO BE WRITING. UM IT
WILL ALSO HELP US TO HELP LOCAL
AGENCIES PROCURE, UH,
STANDARDIZED ENUNCIATOR AND
DIGITAL SIGNAGE, UH, TO PROCURE
STANDARDIZED AUTOMATIC PASSENGER
INFORMATION SYSTEMS, UH, TO HELP
LOCALS EXPAND THE USE OF THE
OPEN, UH, PAYMENT FARE SYSTEMS,
WHICH IS VERY IMPORTANT FOR
INTEROPERABILITY. UM WE WILL BE
ABLE TO PROVIDE RURAL AND SMALL
TRANSIT AGENCIES WITH FEDERAL
GRANT ASSISTANCE. UH, BE ABLE TO
ESTABLISH STANDARDIZED TRANSIT
AND RAIL DATA ACROSS THE STATE.
UH AND PROVIDE DATA COLLECTION
AND ANALYTICS FOR THOSE SMALL
AGENCIES, UH, WHICH WILL HELP
THEM OPTIMIZE THEIR TRANSIT
SERVICES. UH, THE DATA IN
DIGITAL SERVICES DIVISION WILL
OVERSEE BUSINESS PROCESS
IMPROVEMENTS RELATED TO THAT
GRANT MANAGEMENT. ALSO
PERFORMANCE MEASUREMENT FOR
THESE SMALL AGENCIES AND THE
PROVISION OF TECHNICAL
ASSISTANCE TO THEM AS WELL. THE
PROGRAM, UM, WILL HELP TO
MODERNIZE THE TRANSPORTATION
ECOSYSTEM AND IMPROVE CUSTOMER
EXPERIENCES. WE WANT THE WRITER
TO BE COMFORTABLE AND FIND IT
EASY TO USE TRANSIT TO INCREASE
THAT TRANSIT RIDERSHIP. AND BY
LEVERAGING THE DATA THAT WE HAVE
, UH, THE DIGITAL SERVICES THAT
WE INTEND TO CREATE UNDER THIS
PROGRAM, AND THE PARTNERSHIPS AT
THE STATE CAN CAN CREATE AT THE
STATE LEVEL IN OUR INDIVIDUAL
LOCALS TRYING TO TALK TO GOOGLE.
UM WE CAN. REALLY UM UH,
INCREASE AND CREATE A MORE
INTEGRATED TRANSIT PROGRAM
ACROSS THE STATE. ALL RIGHT,
ALEO. WE FIND THAT THIS PROPOSAL
COULD HAVE MERIT TO THE EXTENT
IT HELPS IN INCREASE PUBLIC
TRANSIT RIDERSHIP, WHICH ALIGNS
WITH CERTAIN LEGISLATIVE GOALS,
SUCH AS, UM IMPROVING
TRANSPORTATION, MOBILITY AND
REDUCING VEHICLE. MILES TRAVELED
IN PRIVATE VEHICLES, HOWEVER,
PARTICULARLY GIVEN THE BUDGET
SITUATION WE NOTE, THE
LEGISLATURE MAY WENT AWAY. UM
THE MERITS OF THIS PROPOSAL
AGAINST THE BUDGET SITUATION. WE
NOTE THAT THIS PROPOSAL DOES NOT
USE GENERAL FUND. HOWEVER THE
FUNDING COULD BE USED TO SUPPORT
OTHER GEN. UM BUDGET SOLUTIONS,
AND ALSO THE LEGISLATURE COULD
CONSIDER INSTEAD USING THE
FUNDING TO PROVIDE DIRECT
ASSISTANCE TO PUBLIC TRANSIT
AGENCIES ARE FACING FISCAL
CLIFFS. THANK YOU. UH, JAMES,
NORTH FINANCE. UM, WE OWE YOUR
STAFF AN ANSWER. UM ON ONE OF
HER QUESTIONS, AND I JUST WANT
TO MAKE SURE THAT, UM IT'S CLEAR
THAT THIS REQUEST DOESN'T UH,
COME OUT OF FEDERAL FUNDING THAT
GOES TO LOCAL TRANSIT, AND IT
ALSO DOESN'T TAKE AWAY FROM
MONEY THAT ARE GOING TO, UM THE
JOINT POWER AUTHORITY. UH, SOME
OF THE AMTRAK THAT WE FUND
THROUGH THE STATE. SO THIS IS
SEPARATE FROM BOTH OF THOSE.
THANK YOU. ANY COMMENTS? I DO
HAVE ONE SPECIFICALLY WORKING IN
TECHNOLOGY IN MY PREVIOUS LIFE.
MY QUESTION IS. HOW LONG IS IT
GONNA TAKE FOR YOU GUYS TO
ACTUALLY DEVELOP A LEGITIMATE
PROGRAM THAT'S UTILIZED. UH,
WITH REGARD TO GRANT MANAGEMENT,
UM I THINK WE'VE, UH OVER AND
KIT YOU CAN CORRECT ME IF I'M
WRONG HERE. I BELIEVE THAT WE
COMPLETED A DEVELOPMENT OF THAT
SYSTEM WITH AN EARLIER GRANT,
AND I THINK IT'S EXPECTED TO GO
ONLINE THIS YEAR, UM, WHICH WILL
HELP TO PROVIDE THAT GRANT
ASSISTANCE. WHAT THIS IS DOING
IS, UM ACTUALLY PROVIDING THESE,
THE DIGITAL DATA SERVICES
DIVISION TO PROVIDE THAT SUPPORT
FOR LOCALS WHO WILL BE USING
THAT SYSTEM. UM, MOST OF OUR
THESE SMALLER AND RURAL TRANSIT
AGENCIES DON'T HAVE GRANT GRANT
WRITERS OR EVEN FOLKS WHO CAN
LOOK EVERY DAY TO SEE WHEN THE
LATEST FEDERAL GRANT OPPORTUNITY
IS AVAILABLE. SO UH, THOSE TWO
SYSTEMS WILL WORK TOGETHER. THE
UH, SYSTEM WE'VE CREATED WILL
WORK TOGETHER WITH THE DIGITAL
DEBATERS. DIAL DATA ARE I CAN'T
EVEN SAY THE DIVISION. SO MY
CONCERN IS THAT YOU KNOW, ONCE A
SYSTEM IS KIND OF DEVELOPED, UH
AND THERE'S INTEGRATIONS, UH,
YOU DON'T NECESSARILY NEED THIS
MUCH FUNDING FOR ONGOING SUPPORT
, ESPECIALLY IF INTEGRATION IS
IN PLAY. AND YOU HAVE MAYBE ONE
OR TWO ENGINEERS WORKING ON IT
SO THAT THAT'S A CONCERN. I HAVE
YEAH. SO THE AGAIN THE POSITIONS
THAT WE'RE LOOKING FOR, AREN'T
TO SUPPORT THE DEVELOPMENT AND
OPERATION OF THE DATABASE OR
SYSTEM. IT'S TO PROVIDE THE
SERVICES TO THE LOCAL AGENCIES
BECAUSE, UH, WE WERE TALKING
ABOUT 700 DIFFERENT TRANSIT
AGENCIES ACROSS THE STATE, MOST
OF WHICH ARE VERY, VERY SMALL.
THEY DON'T HAVE THE TECH THE
TECHNICAL BUT THE, UM THE YEAH,
THE KNOWLEDGE OF WHAT'S
AVAILABLE TO THEM TO USE AT THE
FEDERAL SITE, ESPECIALLY AND
THEY DON'T HAVE THE SYSTEMS TO
ANALYZE THEIR OWN DATA, EITHER.
SO THE DIGITAL DATA SERVICES
WILL WILL BE ABLE TO LOOK AT
WHERE PEOPLE ARE GETTING ON AND
OFF A BUS. WE'RE THE ROUTES ARE
EXPERIENCING DELAYS. WHAT CAN BE
DONE TO IMPROVE THAT ROUTE,
EITHER PHYSICALLY OR TIMING WISE
? SO BACK TO MY FIRST QUESTION?
HOW LONG IS IT GOING TO TAKE TO
REALLY GET THIS? UH FULLY ROBUST
SYSTEM IN PLAY. YEAH, I WOULD,
UH, WAS IT, KEITH SAID ABOUT TWO
YEARS BEFORE EVERYTHING IS
COMPLETELY IN PLACE. AND IT
WOULD BE UP AND RUNNING, WHICH
IS, UM, AS I MENTIONED EARLIER.
WE'RE WE'RE RAMPING UP TO THAT
FUNDING OF 26 MILLION BY YEAR
THREE. OK? I PERSONALLY THINK
THOSE TIMELINES ARE VERY, VERY
LONG, ESPECIALLY FOR TECHNOLOGY.
AND I'M JUST GONNA STATE THIS.
UM THERE. I HAD A MEETING WITH M
Tð èC THAT WAS TALKING ABOUT
THE CLIPPER CARD AND IT BEING
UTILIZED AND THEM WORKING ON IT
FOR 20 YEARS, RIGHT? WE ALSO
HAVE, FOR EXAMPLE. Dð M VÆ, UH,
YOU KNOW, TALKING ABOUT HOW THEY
HAVE IMPLEMENTATION OF
TECHNOLOGY THAT IS ALSO TAKING
YEARS RIGHT AND TAKING TIME AND
ATTENTION AWAY FROM THE SERVICES
THAT ARE BEING PROVIDED ON A
DAILY BASIS TO, UM THE GENERAL
PUBLIC. UM SO TECHNOLOGY
HONESTLY, THE IMPLEMENTATION AND
EVEN THE PARALLEL SERVICE OF
WHAT'S IN PLAY. NOW SHOULD BE
MAX 12 MONTHS TO MAYBE 18
MONTHS. AND I JUST I. I DON'T
UNDERSTAND WHY IN GOVERNMENT WE
ARE TAKING THIS LONG. UH, WHEN
WE HAVE THIS MANY BODIES WORKING
ON THIS PROJECT, AND WE'RE
WASTING THIS MUCH MONEY WITHOUT
THE FEEDBACK BEING QUICKER.
THREE YEARS IS A REALLY LONG
TIME UNDERSTOOD IN THAT IN THAT
THREE YEAR TIMELINE IS FOR
HAVING EVERYTHING IN PLACE ALL
OF THEIR SYSTEM ANALYTICS IN
PLACE OF IN IN PROVIDING THAT
ASSISTANCE TO THE LOCAL AGENCIES
WE ALREADY HAVE. AND ONE OF THE
GREATEST SUCCESSES OF THIS
PROGRAM SO FAR IS THIS OPEN FAIR
PAYMENT SYSTEM THAT WE'VE BEEN
PUSHING, WHICH ALLOWS YOU TO PAY
WITH SOMETHING OTHER THAN A
CLIPPER CARD LIKE A BANK CARD.
ANYWHERE THAT YOU GO. WE ALREADY
HAVE NINE AGENCIES THAT HAVE
THAT ARE LIVE ON THAT PROGRAM
THAT WE CREATE. NOW WE'VE BEEN
SPEARHEADING. WHY DO WE DO
THINGS INTERNALLY? DO WE NOT
HAVE, UM CONSULTANTS AND OTHER
AGENCIES THAT PROVIDE THIS TYPE
OF DATA AND THESE SOLUTIONS OUT
OF THE BOX? UH, YEAH, THAT IS
USING OUT OF THE BOX TECHNOLOGY
AND WORKING WITH DEPARTMENT OF
GENERAL SERVICES TO GET THIS
EQUIPMENT ON THEIR GENERAL WHO'S
THE PROVIDER? I COULDN'T DO YOU
KNOW YOU DON'T HAVE THAT
INFORMATION, SO WE DON'T KNOW
THE PROVIDER OF PROBABLY THIS
VERY, YOU KNOW, INTERESTING
PROJECT THAT WE'RE IMPLEMENTING
FOR THREE YEARS. SO TO BE CLEAR.
THE IMPLEMENTATION TIMELINE IS
TO GET ALL OF THE SERVICES IN
PLACE. THE IMPLEMENTATION OF THE
DATABASE ITSELF. WE HAVE THAT
AND I WE CAN PROVIDE THAT
INFORMATION. I DON'T HAVE IT
PERSONALLY AS A FINANCE GUY, BUT
WE CAN PROVIDE THAT INFORMATION
FOR YOU. THE THREE YEAR TIMELINE
IS TO FULLY RAMP UP ALL THE
SERVICES THAT WE'RE GOING TO
PROVIDE TO THE LOCAL AGENCIES.
IT'S NOT A TECHNOLOGY SERVICE.
ISSUE PER S¼ E. WHY DOES IT TAKE
THREE YEARS? I CAN BE MORE
DETAILED, GIVEN A LITTLE MORE
TIME. I GET BACK TO YOUR STAFF
AND IN A DAY OR SO, WITH MORE
INFORMATION REGARDING PERFECT,
UH, I WANNA MAKE IT VERY CLEAR
THAT AS MUCH AS I SUPPORT, UH,
TECHNOLOGY BEING UTILIZED, UM,
THE TIMELINES FROM GOVERNMENT
AGENCIES IMPLEMENTING TECHNOLOGY
AS A WHOLE IS WAY TOO LONG. YOU
KNOW, IT DOESN'T MATTER WHICH
DEPARTMENT I'VE TALKED TO, UH,
EVERY SINGLE HEARING THAT HAS
TALKED ABOUT TECHNOLOGY, THEY'RE
LOOKING AT THREE YEARS. FIVE
YEARS, YOU KNOW, UM, 11 AGENCY
THAT MET WITH ME IN MY OFFICE
SAID 20 YEARS, RIGHT? UM COMING
FROM THE BAY AREA COMING FROM
SILICON VALLEY. UH, THESE
TIMELINES ARE NOT REALISTIC FOR
THE AVERAGE PERSON. UH, I JUST
WANNA CLEARLY STATE THAT WE NEED
MORE AGGRESSIVE TIMELINES WE
NEED IF WE ARE INVESTING,
ESPECIALLY DURING ECONOMIC
DOWNTURN. IF WE ARE INVESTING IN
A PARTICULAR PROJECT, WE NEED TO
PRIORITIZE THAT WITH A FASTER
TIMELINE. FASTER METRICS. YOU
KNOW MORE ACCOUNTABILITY. IF WE
HAVE 700 AGENCIES AND THE FACT
THAT THEY DON'T KNOW WHAT
FUNDING IS AVAILABLE TO THEM
NUMBER ONE THAT'S PROBLEMATIC TO
BEGIN WITH FROM ACROSS THE BOARD
ON AGENCIES IF WE ARE NOT
HOLDING THEM ACCOUNTABLE, AS
WELL AS ANY OTHER EFFORT
ACCOUNTABLE AS TO SPEED
TECHNOLOGY AND AGAIN SERVICE TO
THE PUBLIC AT THE END ALL BE ALL
THAT'S WHAT'S THE MOST IMPORTANT
IN EVERY AGENCY. THAT SHOULD BE
PRIORITY. AND I'M GONNA BE
HONEST GOING TO THE Dð M VÆ.
JUST TO DO SOME PAPERWORK AND
YOU ALWAYS HAVE TO, FOR SOME
REASON GO BACK INSIDE, RIGHT?
IT'S NOT GOOD ENOUGH, RIGHT? SO,
I. I JUST WANNA HIGHLIGHT THAT
AS MUCH AS POSSIBLE. THREE YEARS
TAKES WAY TOO LONG. EVERYTHING
SHOULD BE BASICALLY ON A 12
MONTH TO SIX AND 18 MONTH PERIOD
. THAT'S MY PERSONAL OPINION.
UM, WE CAN MOVE ON TO THE NEXT
ITEM. THANK YOU. ISSUE NUMBER
FOUR ESTABLISHING THE OFFICE OF
INSPECTOR GENERAL HIGH SPEED
RAIL. WE'RE GOING TO HEAR FROM
THE OFFICE OF INSPECTOR GENERAL.
YOUR TIME AT FIVE MINUTES. GOOD
MORNING, MADAM CHAIR MEMBERS OF
THE COMMITTEE. MY NAME IS BEN
BELKNAP. I'M THE, UH, FIRST
INSPECTOR GENERAL IN CALIFORNIA.
UM, OF THE HIGH SPEED RAIL. UH,
THE ROLE OF THE OFFICE OF THE
INSPECTOR GENERAL, THE
HIGH-SPEED RAIL IS TO IMPROVE
OVERSIGHT ACCOUNTABILITY. BY
CONDUCTING INDEPENDENT OBJECTIVE
REVIEWS OF THE OPERATION
DELIVERY AND PLANNING OF THE
HIGH SPEED RAIL. THE PURPOSE OF
THIS BUDGET REQUEST IS TO
ESTABLISH A FULLY FUNCTIONING
OFFICE OF INSPECTOR GENERAL OF
THE HIGH SPEED RAIL. THAT CAN
CARRY OUT THE RESPONSIBILITIES
OUTLINED IN STATE LAW. INCLUDING
THE PROVISION OF INDEPENDENT
ASSESSMENTS OF THE HIGH SPEED
RAIL AUTHORITY, BUSINESS PLANS
AND PROJECT UPDATE REPORTS. AND
OTHER REVIEWS OF THE AUTHORITY'S
PROJECT MANAGEMENT CONTRACTING
AND CONTRACTOR OVERSIGHT. AS TO
THE SPECIFICS OF THIS B èC P.
WE ARE REQUESTING A WORKLOAD
BUDGET. UM TO HIRE AN ADDITIONAL
OR TO HIRE, UH, 14 TOTAL
POSITIONS, WHICH EQUATES TO
ROUGHLY $2 MILLION IN ADDITIONAL
BUDGET AUTHORITY FROM THE
TRANSPORTATION FUND. IN SUMMARY
PROVIDING THIS REQUESTED FUNDING
AT THIS TIME WILL IMPROVE
OVERSIGHT OF THE STATE'S
MULTIBILLION DOLLAR HIGH SPEED
RAIL PROJECT. AND WITH THAT,
I'LL CONCLUDE AND I WELCOME ANY
QUESTIONS. RIGHT, UM I SAID GOOD
SENATORS. THANK YOU SO MUCH. WE
HAVE A FEW COMMENTS AND
RECOMMENDATIONS ON THIS PROPOSAL
. OVERALL WE FIND THAT THE LEVEL
OF REQUESTED RESOURCES APPEARS
REASONABLE FOR THE OIG TO
ACCOMPLISH ITS PROPOSED WORK
PLAN. HOWEVER WE DO IDENTIFY A
FEW POTENTIAL BARRIERS TO REALLY
THE SUCCESSFUL AND INDEPENDENT
OPERATION OF THIS NEW OFFICE,
WHICH WAS A REAL PRIORITY FOR
THE LEGISLATURE WHEN THE
LEGISLATURE WAS NEGOTIATING, UM
THE PRO PROVIDE PROVIDING THAT
$4.2 BILLION OF REMAINING PROP.
ONE A FUNDS. THE LEGISLATURE
NEGOTIATED THE CREATION OF THIS
OFFICE TO REALLY CREATE VERY
ROBUST OVERSIGHT OVER THIS
MULTIBILLION DOLLAR PROJECT. SO
THE THREE ISSUES THAT WE'VE
IDENTIFIED FIRST WE NOTE THAT
SOME OF THE PROPOSED POSITIONS
ARE PROPOSED ON A TEMPORARY
RATHER THAN ONGOING BASIS, WHICH
COULD COULD MAKE IT MORE
DIFFICULT FOR THE OFFICE TO HIRE
AND RETAIN SOME OF THOSE STAFF.
UH, WE NOTE THAT THE ORIGINAL
REQUEST PUT FORWARD BY BY THE Ó
IG WAS FOR PORTMAN PERMANENT
STAFF, AND THAT WAS MODIFIED.
SECOND WE NOTE THAT THE Ó IG
CURRENTLY LACKS THE AUTHORITY TO
USE ONE OF THE REQUESTED
CLASSIFICATIONS AND THE REASON
THEY WANT THAT CLASSIFICATION IS
SO THEY CAN PAY A SIMILAR
AMOUNT. SOME OF THE OTHER AUDIT,
UM, AGENCIES IN THE STATE OR
STATE AGENCIES THAT USE AUDITORS
. UM IF I MIGHT, AND THEN THE
THIRD ISSUE THAT WE IDENTIFY IS
THAT THERE ARE A COUPLE OF AREAS
WHERE WE THINK ADDITIONAL
INFORMATION TO THE JOINT
LEGISLATIVE BUDGET COMMITTEE
COULD INCREASE THE BUDGETARY
INDEPENDENCE OF THE OF THE
AGENCY. I'M HAPPY TO GO INTO
THAT IN MORE DETAIL. UM IF YOU'D
LIKE, BUT, UH, IN THE INTEREST
OF TIME, I'LL SKIP OVER THAT FOR
NOW. UM, SO WE HAVE THREE
RECOMMENDATIONS THAT REALLY STEM
FROM THAT THOSE COMMENTS FIRST
WE RECOMMEND THE LEGISLATURE
FUND ALL OF THE POSITIONS ON AN
ONGOING BASIS, UM, AND PERMANENT
BASIS TO HELP ENSURE THAT THE Ó
IG CAN ATTRACT AND RETAIN THE
MOST QUALIFIED STAFF SO THEY CAN
DO THEIR WORK. UM ALSO THAT THE
LEGISLATURE PROVIDE THE Ó IG
WITH THE AUTHORITY TO USE THE
REQUESTED OR SIMILAR
CLASSIFICATION. AND THIRD. WE
HAVE A COUPLE OF AGAIN. PRETTY
TECHNICAL, UM, RECOMMENDED
CHANGES RELATED TO THE JOINT
LEGISLATIVE BUDGET COMMITTEE
PROCESS. UM I THINK THE FINAL
COMMENT I JUST LIKE TO ADD IS
THAT WITH THE LAUNCH OF THE Ó
IG, THIS IS A REALLY IMPORTANT
TIME FOR THE LEGISLATURE TO
ASSESS WHETHER THE VISION THAT'S
BEING PUT FORWARD IN THIS
PROPOSAL. THE WORK PLAN IS
CONSISTENT WITH THE
LEGISLATURE'S PRIORITIES FOR
WHAT THIS OFFICE SHOULD DO IN
TERMS OF THE HIGH SPEED RAIL
PROJECT. SO TO THE EXTENT THAT
THERE ARE ANY CHANGES IS THE
LEGISLATURE WANTS TO MAKE. THIS
IS PROBABLY A GOOD TIME TO THINK
ABOUT THEM, UM, BECAUSE YOU
COULD PROVIDE EITHER SOME
DIRECTION TO THE TO THE NEW
OFFICE AND OR YOU COULD MAKE
SOME MODIFICATIONS. BUDGET TO
REFLECT WHATEVER YOUR PRIORITIES
ARE HAPPY TO TAKE QUESTIONS.
THANK YOU. DEPARTMENT OF
FINANCE. BE AND PETERSON
DEPARTMENT OF FINANCE. SO SINCE
THE HIGH SPEED RAIL OFFICE OF
INSPECTOR GENERALS AND NEW
DEPARTMENT FINANCE FEELS AS IF
THE WORKLOAD FOR ALL THE
POSITIONS MAY BE JUSTIFIED, BUT
WITHOUT ESTABLISHED WORKLOAD, IT
IS A CHALLENGE TO DETERMINE
EXACTLY HOW MANY POSITIONS ARE
GONNA BE NEEDED. THE TEMPORARY
POSITIONS OFFER THE FLEXIBILITY
NEEDED TO DETERMINE THE TOTAL
WORKLOAD AND THEIR TEMPORARY
NATURE WILL BE RE EVALUATE RE
EVALUATE WEIGHT IN BASED ON THE
ACTUAL WORK PERFORMANCE, ONCE
HIRED. THANK YOU, UM SENATOR DE
RAZA. UH, THANK YOU, MADAM CHAIR
. UH GOOD TO SEE YOU, MR.
INSPECTOR GENERAL. UH, I JUST
WANNA ASK WITH REGARDS TO YOUR
OVERSIGHT. UH, RESPONSIBILITY.
UH, WHAT IS YOUR ROLE IN THE
OVERSIGHT OF THE PROCUREMENT
PROCESS? YEAH UH, WE HAVE
SPECIFIC AUTHORITY TO LOOK AT
THE PRE AWARD OF CONTRACTS THAT
IS BUILT INTO STATE LAW. SO ONE
INTERPRETATION OF THAT LANGUAGE
IS LOOKING AT RFP S¼, SO WE ARE
CURRENTLY WORKING WITH THE
AUTHORITY TO REVIEW RFP S¼
BEFORE THEY GO OUT. UM, SO
THAT'S LOOKING AT STATUTORY
PROVISIONS THAT'S LOOKING AT
SCOPE OF WORK THAT'S LOOKING AT
TERM, THEN WE MAKE
RECOMMENDATIONS BASED ON WHAT
WE'RE SEEING IN THOSE RFP S¼. SO
WE DO HAVE THAT AUTHORITY AND WE
ARE CURRENTLY DOING THAT. AND HE
FOLLOW UP TO YOU KNOW THE
CONTRACT REVIEW OF THE CONTRACTS
LIKE ONCE THEY'RE AWARDED
ABSOLUTELY SO PART OF OUR ROLE
NEEDS TO BE THE REVIEWING HOW
THE AUTHORITY IS OVER, UM,
OVERSEEING ITS CONTRACTORS. UM
AND ALSO PART OF OUR ROLE IS TO
CONDUCT INVESTIGATIONS. SO IF
OUR OFFICE RECEIVES ALLEGATIONS
ABOUT A CONTRACTOR, FOR INSTANCE
, OVERBILLING, UH, WE WANT, UH,
WE NEED THAT AUTHORITY AND, UM
WE HAVE BUILT INTO OUR WORK PLAN
TO REVIEW THOSE THOSE
ALLEGATIONS. UM AND WITH REGARDS
TO, UH, THE PROCUREMENT PROCESS
SPECIFICALLY, I KNOW WE'RE GOING
THROUGH THE, UM THE PURCHASE OF
THE TRAIN SETS. UH IS HOW, UM
WHAT SUGGESTIONS? DO YOU HAVE TO
MAKE SURE THAT HIGH ROAD AND
ECONOMIC EQUITY, UM ARE
IMPLANTED IN, UH YOU KNOW IN
THAT IN THAT PROCESS, UH, AT YOU
KNOW, LIKE THE HIGH ROAD
TRAINING PARTNERSHIP FRAMEWORK.
UM, AND THESE ARE, UM HOW DO
THEY INFORM THE WORK OF THE
AGENCIES THAT ARE IMPLEMENTING
THE FEDERAL FUNDING? THE I N J
FUNDING THAT THAT WE'RE GETTING
SUCH AS? HIGH SPEED RAIL, RIGHT?
UM I KNOW WE BOTH ATTENDED THE
SAME HEARING WHERE THAT
DISCUSSION CAME UP, AND WE BOTH
HEARD THE SAME PRESENTATION FROM
THE AUTHORITY REGARDING CERTAIN
PROVISIONS THAT ARE GOING TO BE
IN THAT RFP. IT'S ON MY TO DO
LIST TO GO. ALTHOUGH I'VE
ALREADY REVIEWED THAT RFP. I
DIDN'T LOOK FOR THAT SPECIFIC
ANGLE. I'M GONNA LOOK AT THAT
SPECIFIC ANGLE AND MAKE SURE
THAT THAT THOSE STATEMENTS MADE
IN THAT HEARING REGARDING THOSE
PROVISIONS. UM, ARE ARE PUT IN
THERE. OK, GREAT. THANK YOU.
THANK YOU. AND I JUST WANNA, UM,
ASK YOU JUST, YOU KNOW WHAT'S
THE PRIMARY FOCUS OF THE OFFICE
AND WHAT ARE YOU HOPING TO
ACHIEVE IN THE COMING YEARS?
THANK YOU. UM SO SINCE MY
APPOINTMENT I HAVE HIRED THREE
MEMBERS OF A MANAGEMENT TEAM.
AND WITH THAT WHAT I WOULD CALL
A SKELETON CREW. UH, WE HAVE, UM
, STARTED BUILDING OUT
ADMINISTRATIVE FUNCTIONS, AND
WE'VE ALSO REVIEWED THE 2023
PROJECT UPDATE REPORT THAT
REVIEW RESULTED IN FORMAL
RECOMMENDATIONS WE MADE TO THE
AUTHORITY ABOUT THE BUSINESS
PLAN THAT'S CURRENTLY BEING UM,
DRAFTED AND WILL BE FINALIZED ON
MAY. 1 WE ARE WORKING ACTIVELY
WITH THE AUTHORITY RIGHT NOW TO
IMPROVE. THAT BUSINESS PLAN
BECAUSE WE DID FIND THAT THERE
WERE ASPECTS OF IT THAT WERE NOT
, UM, ADDRESSING THE S¼, B 198
AND STATE LAW THAT PREDATES S¼ B
198. SO THAT'S WHAT WE'RE
WORKING ON CURRENTLY, UM,
UPCOMING, UM, WITH APPROVAL OF
THIS B èC P WOULD ENABLE OUR
OFFICE TO IMPLEMENT A WORK PLAN
THAT WE INCLUDED WITH THE B èC
P, OR AT LEAST OUR OUR
DISCUSSIONS WITH FINANCE AND L A
Ó. UM THAT WORK PLAN INCLUDES,
UM, REVIEWING THE AUTHORITY'S
EFFORTS TO CONTROL PROJECT. US
OVERSEE ITS CONTRACTORS AND
SECURE THE NECESSARY FUNDING FOR
THIS PROJECT. UH, WE WILL
FINALIZE OUR WORK PLAN THIS
SPRING THROUGH A FORMAL RISK
ASSESSMENT. IN THAT RISK
ASSESSMENT PROCESS, WE'LL BE
REACHING OUT TO STAKEHOLDERS
THAT INCLUDES THE ADMINISTRATION
, LEGISLATIVE STAFF AND MEMBERS
WHERE WE CAN TAKE IN, UH,
FEEDBACK AND INCORPORATE THAT IN
AND FINALIZE THAT WORK PLAN WITH
THE ELEMENTS OF THE PROJECT THAT
WE THINK ARE MOST IMPORTANT TO
CONDUCT OPERATIONAL REVIEWS.
WITH THOSE POSITIONS THAT WE
REQUESTED. WE BELIEVE WE CAN,
UH, COMPLETE ABOUT SIX
OPERATIONAL REVIEWS, UH, EACH
FISCAL YEAR IN ADDITION TO OUR
ON THOSE ANNUAL REPORTS. SO
THAT'S WHAT WE'RE WORKING
TOWARDS RIGHT NOW. THANK YOU.
THANK YOU, UH, SENATOR CERA?
YEAH. UM I THINK WE COVERED A
LOT OF THINGS IN THE HEARING.
AND UH, THIS THE ROLE THAT YOU
PLAY HERE IS JUST CRITICAL AND
DETERMINING WHETHER, UH, THIS
PROJECT IS GOING OFF THE RAILS,
SO TO SPEAK. UM, BUT, UM BECAUSE
I, AS A LOT OF PEOPLE IN THE
PUBLIC HAVE LOST CONFIDENCE IN
IN THE AUTHORITY AND THE NOT
JUST THE AUTHORITY BUT THE WHOLE
PROJECT. UH, BECAUSE THE COSTS
KEEP ESCALATING AND ESCALATING,
AND IT'S IMPORTANT FOR YOU TO
HAVE THE TOOLS THAT YOU NEED TO
DO THE JOB THAT WE WERE HIRING
YOU FOR, UH, WHICH IS TO FIGURE
THIS OUT. FOR US AND GIVE US AN
ACCURATE READ ON EITHER WHAT
WE'RE IN FOR OR WHERE WE NEED TO
MAKE SERIOUS MODIFICATIONS TO
OUR, UH, OUR VISION. AND, UM AND
IN RESPECT TO THE UH, FOR
PERMANENT VERSUS, UM YOU KNOW,
VERSUS TEMPORARY OR NOT
PERMANENT, BUT, UH UH, YEAH. UM
THE PROBLEM I SEE OUT THERE IS
THE IS THE WORK ENVIRONMENT, THE
EMPLOYMENT ENVIRONMENT OUT THERE
IS YOU ARE COMPETING, UH, WITH
FEWER PEOPLE FOR THAT KIND,
THOSE KINDS OF JOBS. UH, ARE
AVAILABLE FOR THOSE AND THEY'RE
NOT GOING TO COME TO YOU WITH A
TEMPORARY POSITION. AND UH WILL
THAT BE I IF YOU HAVE A EITHER A
REVOLVING DOOR WITH 44 POSITIONS
LIKE THAT, UM THAT ARE TEMPORARY
, UH, COULD CREATE THIS
REVOLVING DOOR OF PEOPLE THAT
COME IN FOR A FEW WEEKS. AND
THEN, UH, UNTIL THEY LAND THE
JOB THAT THEY REALLY WANT THAT
THEY'RE SECURE IN UH, IS THAT
GOING TO HAMPER YOUR EFFORTS TO
BE ABLE TO, UH, DO THE JOB THAT
WE NEED YOU TO DO? I. I THINK IT
COULD, UM, WHEN SOMEONE'S
CONSIDERING LEAVING A JOB A
PERMANENT JOB AND THEN GO INTO A
TEMPORARY POSITION. UH, I THINK
I WOULD USE ALL MY POWER
PERSUASION TO GET THEM TO DO
THAT, AND TO BELIEVE IN THE
MISSION OF THIS ORGANIZATION, I
MIGHT BE ABLE TO GET PEOPLE TO
COME ABOARD. UM BUT IF THE
LONGER THOSE POSITIONS STAY, UM
TEMPORARY, AND I THINK THERE'S A
THREE YEAR WINDOW THAT THE
DEPARTMENT OF FINANCE IS, UH,
PUT INTO THE B èC P AND THAT
I'M GRATEFUL FOR THAT. THEY'RE
NOT ONE YEAR. UH, THEY'RE THREE
YEAR BUT AS TIME PROGRESSES. I
THINK THOSE INDIVIDUALS WOULD BE
LOOKING ELSEWHERE. IF THOSE
POSITIONS WERE NOT MADE
PERMANENT. I DO THINK IT WOULD
IMPACT OUR ABILITY FOR THOSE
POSITIONS TO RECRUIT AND RETAIN.
AND TO THE DEPARTMENT OF FINANCE
. HAVE YOU TAKEN THOSE? UM THE
CURRENT EMPLOYMENT ENVIRONMENT
OUT THERE INTO, UH,
CONSIDERATION WHEN YOU'RE MAKING
A RECOMMENDATION THAT THEY BE
TEMPORARY, AS OPPOSED TO
PERMANENT UM, CERTAINLY. MATTHEW
MASO DEPARTMENT OF FINANCE. UM
UNDERSTANDING WHERE MR BELKNAP
IS COMING FROM, UM, AS FAR AS
HIS CHALLENGES IN IN, YOU KNOW,
THE LABOR MARKET AND HIRING, UM
PEOPLE, BUT FROM OUR PERSPECTIVE
AGAIN THIS OFFICE IS NEW. UM
THERE'S NOT AN ESTABLISHED
WORKLOAD. AND SO WE DIDN'T WANT
TO, UH SORT OF PROVIDE POSITIONS
THAT MAY END UP GETTING JET
SITTING AROUND, UM, ON A DAILY
BASIS. I, I THINK UM, IN EACH
BUDGET WINDOW WE CAN WORK WITH,
UM, THE INSPECTOR GENERAL'S
OFFICE TO, UM EVEN MAKE THOSE
PERMANENT. UM BEFORE THE THREE
YEAR WINDOW IS UP, YOU KNOW, SO
WE CAN AS AS THE PEOPLE COME ON
BOARD, WE CAN DEFINITELY WORK
WITH THE INSPECTOR GENERAL. AND,
UM YOU KNOW IF THERE ARE
CHALLENGES WITH SORT OF THE
REVOLVING DOOR, WE CAN CERTAINLY
WORK ON THAT. I WOULD THINK YOU
IT MIGHT BE A LITTLE BIT BETTER
TO START WITH. UM UH, THE
EMPLOYEES YOU THINK YOU NEED, UH
AND IF YOU NEED TO ADD ON, THEN
YOU BRING ON PERMANENT EMPLOYEES
, UH, TO GET TO THE WORKFORCE
THAT YOU NEED AS OPPOSED TO
HIRING A FULL CONTINGENT OF
PEOPLE AND THEN DECIDING. OH, WE
REALLY DON'T NEED THOSE THOSE
BECAUSE THAT'S WHERE IT BECOMES,
UH, PROBLEMATIC. I THINK SO.
BECAUSE WE WANT THE AT THE END
OF THE DAY. WE WANT YOU TO BE
SUCCESSFUL IN WHAT WE HIRED YOU
TO DO. AND UH AND ONE OF MY BIG
BEEFS IS WE SOMETIMES HIRE
PEOPLE TO DO STUFF OR CREATE
POLICIES AND THEN WE DON'T GIVE
THE PEOPLE THAT ARE SUPPOSED TO
CARRY THOSE OUT THE TOOLS TO DO
THE JOB, AND I WANNA MAKE SURE
YOU HAVE THE TOOLS. UH SO THAT
WE GET OUR, UH WHAT WE'RE
LOOKING FOR AS FAR AS ANSWERS,
UH, SOONER RATHER THAN LATER,
THANK YOU. THANK YOU. UH, WOULD
YOU LIKE TO CLOSE? YES, MADAM.
UH I'D LIKE TO RESPOND TO THAT.
UM SO MY BACKGROUND IS AUDITING.
I WORK TWO DECADES FOR THE
CALIFORNIA STATE OS OFFICE EIGHT
YEARS AS DEPUTY STATE AUDITOR.
PART OF MY ROLE WAS TO LISTEN TO
LEGISLATIVE REQUESTS FOR AUDITS
AND CREATE BUDGETS FOR HOW LONG
THOSE THOSE REQUESTS WOULD TAKE
TO FULFILL. SO WHEN I CREATE
THAT WORK PLAN THAT OUTLINES HOW
MANY HOURS I THINK ARE ARE THESE
ITEMS THAT ARE CRITICAL WILL
TAKE. IT'S COMING FROM YEARS OF
EXPERIENCE. AND I BELIEVE THAT
THE WORK PLAN WE PUT OUT FOR
THIS FISCAL YEAR IS A BASELINE
OF WHAT, UH, THIS OFFICE WILL BE
DOING IT'S UM, IT WE WOULD ONLY
BE GOING UP FROM THERE NOT NOT
BELOW. THANK YOU. UH, MOVING ON
TO ISSUE NUMBER FIVE MOTOR
VEHICLE ACCOUNT FUND CONDITION.
WE'RE GOING TO HEAR FROM
DEPARTMENT OF FINANCE.
AND PETERSON DEPARTMENT OF
FINANCE. THE MOTOR VEHICLE
ACCOUNT PROVIDES FUNDING TO
ENFORCE THE RULES AND
REGULATIONS OF THE VEHICLE CODE
AND THE USE OF VEHICLES ON
HIGHWAYS. THE M VÆ A CONTINUES
TO FACE OPERATIONAL SHORTFALLS
WHERE THE EXPENDITURE IS
OUTPACED REVENUES. SINCE LAST
MAY. REVISION REVENUE HAS
INCREASED 100 AND $34 MILLION
OVER EXPECTATIONS FROM 2022 TO
23 TO 2024 25, HOWEVER, NEW CAR
SALES AND REGISTRATION RENEWALS
CONTINUE TO SLOW OVERALL
AFFECTING REVENUE GROWTH. THE
TOTAL REVENUE IN 2024 25. IS IT
EXPECTED TO BE ABOUT $4.9
BILLION WITH THE MAIN SOURCES OF
THAT BEING A $71 VEHICLE
REGISTRATION FEE AND A $32 èC
HÌ P FEE. THE EXPENDITURES ARE
EXPECTED A TOTAL OF 5 BILLION
WITH CP SPENDING ABOUT THREE
BILLION IN Dð M VÆ SPENDING
ABOUT 1.4 BILLION OVERALL, THE
2024 25 N B, A FUND BALANCE IS
EXPECTED TO BE ABOUT $53
MILLION, AND I'LL BE HAPPY TO
ANSWER ANY QUESTIONS YOU MAY
HAVE. ALL RIGHT, UH, L, A Ó.
THANK YOU. LUKE GUMA WITH THE
LEGISLATIVE ANALYST OFFICE, UM,
DUE TO THE ONGOING STRUCTURAL
IMBALANCE IN THE M VÆ A. IT IS
CURRENTLY PROJECTED TO BECOME
INSOLVENT IN 2526, WITH THE FUND
BALANCE, CONTINUING TO GROW
NEGATIVE AFTER THAT, BASED ON
CURRENT PROJECTIONS. WE KNOW
THERE'S A FEW MAJOR DRIVERS TO
THIS FIRST, THERE'S THE
REPLACEMENT OF èC, HÌ P AND Dð
M VÆ FIELD OFFICES IN RECENT
YEARS, WORKLOAD ASSOCIATED WITH
IT, UM, ISSUING NEW DRIVER'S
LICENSE, AND I Dð CARDS THAT
COMPLY WITH FEDERAL STANDARDS
KNOWN AS REAL. I Dð UM AND
SUPPLEMENTAL PEN. PAYMENTS
RELATED TO A 2017 18 BUDGET
ACTION. ANOTHER MAJOR DRIVER IS
INCREASED EMPLOYEE COMPENSATION
COSTS, WHICH THE STATE HAS
LIMITED ABILITY TO CONTROL.
BECAUSE FOR MORE THAN 40 YEARS,
STATUTES HAS BASED èC HÌ P
OFFICER COMPENSATION ON THE
AVERAGE OF FIVE SPECIFIC
JURISDICTIONS IN THE BAY AREA
AND SOUTHERN CALIFORNIA. BECAUSE
THESE PAY INCREASES FOR CHP
OFFICERS IS WHOLLY DEPENDENT ON
THE DECISIONS MADE BY THESE
LOCAL GOVERNMENTS. THE STATE HAS
LIMITED ABILITY TO CONTROL THEIR
PAY INCREASES. UM AND IT COULD
RESULT IN THE AMOUNT OF FUNDING
FROM THE YEAR THAT'S NEEDED FROM
M VÆ A TO BE DIFFERENT THAN
WHAT'S CURRENTLY PROJECTED. WE
NOTE THAT THE N B A HAS BEEN,
UM, EXPECTED TO BECOME INSOLVENT
IN THE PAST, AND THE STATE HAS
TAKEN PREVIOUS EFFORTS TO
ADDRESS THIS, UH, RECENT
EXAMPLES INCLUDE ANY OF THE
PRACTICE OF TRANSFERRING ABOUT
90 MILLION ANNUALLY FROM THE N
B A TO THE GENERAL FUND AND
ALLOWING REGISTRATION FEES TO BE
ADJUSTED ANNUALLY TO ACCOUNT FOR
INFLATION. WE RECOMMEND THE
LEGISLATURE CONSIDER THE N B A
COST PRESSURES WHEN EVALUATING
NEW SPENDING PROPOSALS, NOTABLY
AS WE'LL DISCUSS LATER ON THIS
PANEL, THE GOVERNOR PROPOSES NEW
SPENDING FROM THE NVA A. THAT
EQUATES TO ROUGHLY 22 MILLION IN
2024, 25 AND 14 MILLION ONGOING
AND TO A PLAN IS PUT IN PLACE TO
ADDRESS THE N B. A FUND
CONDITION WE RECOMMEND THE
LEGISLATURE SET A HIGH BAR FOR
CONSIDERING NEW PROPOSALS FUNDED
FROM THE N B, A UM WE ALSO
RECOMMEND THE LEGISLATION
DEVELOP A PLAN TO ENSURE THE
FUND REMAINS SOLVENT IN ORDER TO
DO SO, UH, REVENUES MUST BE
BROUGHT INTO BALANCE WITH THE
EXPENDITURE ON AN ONGOING BASIS.
UM, TO ACHIEVE THIS, THE STATE
WILL NEED TO EITHER REDUCE MB A
S¼ COSTS, INCREASE THE FUND'S
REVENUES OR ADOPT SOME
COMBINATION OF THESE STRATEGIES.
WE NOTE THAT ALL OF THESE
OPTIONS COME WITH TRADE OFFS,
FOR EXAMPLE, EVERY $1 INCREASE
IN VEHICLE REGISTRATION FEES
WOULD INCREASE REVENUES BY ABOUT
36 MILLION. HOWEVER THIS WOULD
RESULT IN ADDITIONAL COSTS FOR
HOUSEHOLDS AND BUSINESSES THAT
OWN VEHICLES. IN ADDITION,
REDUCING COSTS, UM COULD IMPACT
SERVICE LEVELS WHICH WOULD
AFFECT PUBLIC SATISFACTION IN
THE CASE OF THE Dð, M, VÆ AND
PUBLIC SAFETY IN THE CASE OF
CHP. UM, WE ALSO RECOMMEND THAT
THE LEGISLATURE CONSIDER THESE
COST PRESSURE IMPACTS FROM
EMPLOYEE COMPENSATION. UM WHEN
ADDRESSING THE N B A FUND
CONDITION, UM, TO DO SO THE WILL
WANT TO CONSIDER HOW THE FUND
WILL ABSORB FUTURE INCREASES FOR
EMPLOYEE COMPENSATION. UM DOING
SHORT OF THE FUND DOESN'T BECOME
INSOLVENT AGAIN IN THE FUTURE,
EVEN IF THEY ADDRESS IT
CURRENTLY. AND THEN, UM, MIGHT
ALSO WANT TO CONSIDER CHANGING
THE METHODOLOGY FOR SETTING CHP
OFFICER OR PAY TO INCREASE THE
STATE'S FLEXIBILITY AND
OVERSIGHT OVER THE FUND'S
EXPENDITURES. UM, IN ADDITION,
WHEN EVALUATING A FUTURE
MEMORANDA OF UNDERSTANDING
NEGOTIATED BETWEEN THE
ADMINISTRATION AND EMPLOYEE
UNIONS. UM THIS LEGISLATURE MAY
WANT TO TAKE INTO CONSIDERATION
AS IN THE N B, A FUND
CONDITION. THANK YOU. AND HAVING
ANSWERED ANY QUESTIONS, THANK
YOU. ANY COMMENTS? UM SO THIS IS
PRIMARILY A GOOD CHUNK OF THIS
FUND. IT COMES FROM VEHICLE
REGISTRATION FEES, CORRECT.
CORRECT UM, VEHICLE REGISTRATION
FEES, EVEN FOR THE AVERAGE
PERSON HAS BEEN GOING UP. UH,
ALMOST NONSTOP, INCLUDING MY OWN
THAT I. I TOOK A LOOK AT THAT
WAS, UM AND I WILL SAY IT'S FOR
FAMILY MEMBERS CAR. IT'S A IT'S
A LEASE, AND IT WAS SEVERAL
$100. UM AND THIS HAS FLUCTUATED
OVER. YOU KNOW THE COURSE OF
SEVERAL, UH, LEADERSHIP IN THE
STATE. UH, IT GOES UP AND IT
GOES DOWN, DEPENDING ON WHO'S IN
OFFICE. UM MY QUESTION IS IN
REGARDS TO VEHICLE REGISTRATION
FEES. WHY IS IT ANNUAL AND WHY
CAN'T WE MAKE IT ONCE EVERY FIVE
YEARS OR, UH, CHANGE OF TITLE.
AT THE MOTO DEPARTMENT OF
FINANCE. UM YES, I UNDERSTAND
THE, UH, AVERAGE FEE FOR
CALIFORNIANS IS APPROXIMATELY
THREE $122 IF I HAVE IT, RIGHT,
UH, JUST WANT TO ADD TO THE
RECORD HERE THAT THE REVENUE
THAT GOES INTO THIS FUND IS THE
FLAT VEHICLE REGISTRATION FEE OF
$71 AND THE èC HÌ P FEE. OF $30
OF THE OTHER FEES THAT, UH,
PEOPLE PAY THAT ADD UP TO
SEVERAL 100 OR THINGS LIKE THE
VEHICLE LICENSE FEE AND THE
TRANSPORTATION IMPROVEMENT FEE
AND THOSE GO TO OTHER FUNDS. UM
CERTAINLY. IT WOULDN'T
NECESSARILY HAVE TO BE, UM, AN
ANNUAL BASIS. BUT, UM OF THE
DEPARTMENTS THAT THE M VÆ A
SUPPORTS CERTAINLY HAVE ANNUAL
BUDGETS. AND SO THE CHALLENGE
WOULD BE, UM, WITH THE REVENUE
THAT WE COLLECT. UH, EVERY FIVE
YEARS IN YOUR EXAMPLE WOULD THAT
, UM, PROVIDE APPROPRIATE
RESOURCES TO THE DEPARTMENTS
THAT THE MVA SUPPORTS? SO WHAT
IS THE REGISTRATION FEE REALLY
FUND JUST FOR THE LARGER PUBLIC.
I JUST WANNA GO THROUGH THIS
WITH YOU. IT FUNDS THE
REGULATION AND ENFORCEMENT OF
THE VEHICLE CODE AND THE
DEPARTMENTS THAT ENFORCE THE
VEHICLE CODE. OUR Dð, M VÆ AND
èC HÌ P, PRIMARILY, THERE ARE
SOME MYRIAD OTHER DEPARTMENTS.
AND WHAT IS THIS ENFORCEMENT? IT
IS. ENFORCEMENT OF TRAFFIC LAWS
ON THE HIGHWAYS AND ENFORCEMENT
OF TITLING OF VEHICLES AND SUCH
OKAY, BUT ENFORCEMENT OF TRAFFIC
LAWS IS èC HÌ B CORRECT? OK AND
THOSE LAWS ARE USUALLY UNDER THE
JURISDICTION OF THE LEGISLATURE.
CORRECT, OK? UM SO WHY HAS IT IN
IN YEARS PAST FLUCTUATED
SIGNIFICANTLY, UM, IN REGARDS TO
THE AVERAGE PERSON'S COST. THERE
ARE CERTAIN FEES. UM, LIKE I
MENTIONED THE VEHICLE LICENSE
FEE AND THE TRANSPORTATION
IMPROVEMENT FEE ARE BASED UPON,
UM, VEHICLE VALUE, FOR INSTANCE.
SO UM, THE TRANSCRIPT
IMPROVEMENT FEE. THERE ARE
CERTAIN BRACKETS, UM, RANGES OF
VEHICLE VALUE. SO WHEN YOU
PURCHASE A CAR Dð M VÆ SORT OF
INPUTS THAT, UM, VALUE AND THEN
THERE'S UH UH AS SORT OF FORMULA
THAT, UM, DROPS IT DOWN. UM, AND
ONCE YOU HIT A CERTAIN BRACKET,
JUST LIKE A TAX BRACKET, IT
DROPS TO A LOWER FEE. SO THAT'S
WHY IT LOWERS. UM AND THEN
THERE'S ADJUSTMENTS UPWARD. UM,
HAS THAT A LITTLE MENTIONED THE
CONSUMER PRICE INDEX ADJUSTMENTS
, OK, AND WHAT ARE THESE
BRACKETS IF IT'S NOT BASED ON
TAXES, CORRECT. IT IS NOT, UM
THE BRACKETS I. I WOULD HAVE TO
DEFER TO DMV'S EXPERTISE ON
THAT, UM I COULD CERTAINLY
PROVIDE IT TO YOU. UM TODAY, UM,
BUT THEY ARE I WANT TO SAY THE
TOP BRACKET IS $60 FOR THE TIFF,
FOR EXAMPLE. FOR $60 FOR A
VEHICLE OVER WORTH OVER $50,000.
OK? AND THEN FOR LEASES AND SO
FORTH IS THAT LESS OR MORE WELL,
THERE. IT WOULD BE PAID BY THE
OWNER OF THE VEHICLE. SO UM,
THEY'RE THEY'RE THE SAME FOR
LEASES. OK SO WE DON'T HAVE
NECESSARILY A CLEAR IDEA OF WHAT
IS IN THAT FORMULA. WE DO. IT'S
EVERY BRACKET HAS A FEE TIED TO
IT. AND HOW ARE THE BRACKETS
DESIGNATED? THEIR DESIGNATED IN,
UH STATUTE. I BELIEVE I I'LL GET
BACK TO YOU ON THAT. BUT THERE I
WANNA SAY 40 TO 50,000. AND THEN
I THINK IT'S LIKE EVERY 15 TO 10
TO 15,000. WHAT ABOUT A $20,000
VEHICLE? UM I WILL GET BACK TO
YOU ON THE SPECIFIC FEE. TO THAT
. AND THEN WHAT ABOUT? AND HOW
ARE THESE FEES REALLY ASSOCIATED
TO THE VEHICLES? BECAUSE UM,
WHEN WE HAD, UH, COVID, AND
THERE WAS A SUPPLY SHORTAGE, UM,
ON AVERAGE, EVERY VEHICLE HAD
ALMOST A $10,000 MARK UP ABOVE
STICKER PRICE. RIGHT, AND THAT
CONTINUED BEYOND COVID'S SUPPLY
SHORTAGE, RIGHT? THAT IS NOT
FAIR TO OUR CONSUMERS. THAT IS
NOT FAIR TO IF THIS IS PART OF
THE FORMULA, AND I WANT TO
UNDERSTAND, UH, HOW ARE YOU GUYS
ARE BASING THE COST OF THE
VEHICLE INTO THIS FORMULA ONE?
IT DEPENDS ON THE DEALERSHIP
DEPENDS ON A LOT OF OTHER
FACTORS. AND NOT EVERYBODY BUYS
THE SAME. COST OF THE SAME
VEHICLE FOR THE SAME VEHICLE.
CERTAINLY WHEN YOU BUY A
VEHICLE, THE, UM COST. THE SALE
PRICE IS INCLUDED AS PART OF THE
ENTERING IT IN FOR REGISTRATION,
AND THAT IS THE VALUE THAT THEY
USE. UM AND THEN IT STICK DOWN
FROM THERE AS YEARS GO BY, OK,
I'M VERY CONCERNED OF OUR ABOUT
SPECIFICALLY OUR LOW INCOME
INDIVIDUALS NUMBER ONE BECAUSE
PURCHASING EVEN A STARTER CAR,
YOU KNOW, WE ALWAYS TALK ABOUT
STARTER HOMES. A STARTER CAR
THAT IS ANYWHERE FROM 13,000 TO
15,000 TO EVEN 20,000 THE
REGISTRATION FEES BEING SEVERAL
$100, RIGHT. UM IT'S I KNOW, YOU
SAID THE AVERAGE IS AROUND 300
SOMETHING IT'S MORE THAN THAT,
UH, ON AVERAGE FOR A LOT OF
PEOPLE IN MY REGION IF YOU WILL,
UH, FOR CARS THAT ARE CHEAPER
THAN THE $40,000 CAR YOU
REFERENCED RIGHT? UM SO I'M
DEEPLY CONCERNED ABOUT HOW WE
ARE PRIORITIZING THESE FORMULAS.
UM ESPECIALLY WHEN WE KNOW THAT
THERE IS A SIGNIFICANT AMOUNT OF
GREED ALSO IN INDUSTRIES, UM AND
HOW THAT REALLY CORRELATES TO
THE LONG TERM IMPACTS AND COSTS
FOR THE AVERAGE RESIDENT WHO
REALLY CANNOT NEGOTIATE ANY
OTHER WAY OUT. RIGHT SO IF THE
REGISTRATION FEES ARE BASED ON
THE èC OF THE CAR, NOT
NECESSARILY THE AVERAGE OF THIS
IS WHAT THE CAR IN TOTAL COST TO
MAKE, WHICH IS A MORE STANDARD
FIGURE. RIGHT VERSUS A
DEALERSHIP THAT IS MARKING IT UP
25,000 CASH VERSUS YOU KNOW, UH,
FINANCING VERSUS LEASE VERSUS
WHATEVER THE CASE MAY BE VERSUS
SOMEBODY'S CREDIT, IT'S NOT
FAIR. IT'S NOT A FAIR FORMULA.
RIGHT SO I JUST WANNA HIGHLIGHT
THAT WHEN WE'RE TALKING ABOUT
EQUITY IN PARTICULAR, ESPECIALLY
AS WE ARE SEEING AN ECONOMIC
DOWNTURN, AND WE KNOW POOR
PEOPLE ARE USUALLY THE ONES THAT
SUFFER THE MOST. UM AND I. I
JUST REALLY WANNA HIGHLIGHT THAT
EVEN WHEN WE'RE TALKING ABOUT
OUR FORMULAS, THANK YOU. WE CAN
MOVE ON TO ITEM NUMBER SIX.
ISSUE NUMBER SIX AUGMENTATION
FOR RETENTION OF CONFLICT OF
COUNSEL WE'RE GOING TO FIRST
HEAR FROM èC HÌ P, THE
CALIFORNIA HIGHWAY PATROL. UM,
YOU WILL HAVE FIVE MINUTES.
MORNING MAN CHAIR COMMITTEE
MEMBERS. I WANT TO THANK YOU FOR
THE OPPORTUNITY TO BE HERE TODAY
ON THE ASSISTANT COMMISSIONER
CHARLIE SAMPSON. I'M HERE TO
TALK ABOUT THREE DIFFERENT
BUDGET PROPOSALS. ALSO WANNA
THANK YOUR STAFF FOR HELPING US
PREPARE FOR THIS MEETING TODAY
AND I'M GONNA HAVE I'LL BE HAPPY
TO ANSWER ANY QUESTIONS AFTER
THE CALIFORNIA IS LET ME GRAB MY
GLASSES. EXCUSE ME. CALIFORNIA
IS REQUESTING PERMANENT FUNDING
AUGMENTATION OF 4 MILLION OF THE
MOTOR VEHICLE ACCOUNT. FOR
RETENTION OF OUTSIDE CONFLICT
COUNSEL TO REPRESENT èC HÌ P
OFFICERS. IN CIVIL LITIGATION
ARISING FROM OFFICER INVOLVED
SHOOTINGS. THE FUNDING IS
REQUIRED FOR RETENTION OUTSIDE
CONFLICT COUNCILS BECAUSE THE
ATTORNEY GENERAL A G HAS
DECLARED A CONFLICT OF INTEREST
IN THEIR FIRST A B 1506
INVESTIGATION PURSUANT TO
GOVERNMENT CODE SECTION 12 5
25.3. AND WILL NOT REPRESENT CHP
AND ITS OFFICERS IN CIVIL
LITIGATION ARISING FROM THE SAME
INCIDENT. THE AGE THE A G Ó
ADVISED THEIR INTENT TO CONTINUE
TO DECLARE CONFLICTS OF INTEREST
IN THE GOVERNMENT CODE SECTION
12 5 25 POINT THREE SHOOTING
INVESTIGATIONS OUTSIDE COUNSEL
TYPICALLY COST MORE THAN THE A G
, IN MOST CASES, REQUIRES
ATTORNEYS AND PARALEGALS. AS WE
KNOW. IN 2020 GOVERNOR NEWSOM
SIGNED INTO LAW ASSEMBLY BILL
1506. POLICE USE OF FORCE,
ADDING SECTION 12 5 25 3 TO THE
GOVERNMENT CODE IN EFFECT THAT
WENT INTO EFFECT JULY 1ST OF
2021, AMONG OTHER PROVISIONS,
THIS STATUTE REQUIRE THE A G Ó
AS A STATE PROSECUTOR TO
INVESTIGATE THE INCIDENT OF
OFFICER INVOLVED SHOOTINGS THAT
RESULTED IN THE DEATH OF AN
UNARMED CIVILIAN. ADDITIONALLY
THE DEPARTMENT'S ABILITY TO
CONTRACT WITH OUTSIDE COUNSEL IS
AUTHORIZED BY GOVERNMENT CODE
SECTION 11040 AND REQUIRES THE
WRITTEN CONSENT OF THE A G Ó.
HER GOVERNMENT CODE SECTION
11040. THE LEGISLATURE HAS
DECLARED THAT THE OVERALL
EFFICIENCY ECONOMY AND STATE
GOVERNMENT BE ENHANCED. BY THE
EMPLOYMENT OF THE A G Ó AS
COUNCIL FOR THE REPRESENTATION
OF STATE AGENCIES AND EMPLOYEES
IN JUDICIAL PROCEEDINGS. HOWEVER
THE A G Ó HAS DETERMINED THAT
ITS INVESTIGATIONS OF CHP
OFFICERS INVOLVED IN SHOOTING
INCIDENTS RESULTING IN THE DEATH
OF AN UNARMED CIVILIAN PURSUANT
TO GOVERNMENT CODE SECTION 1525
THREE WILL CREATE A CONFLICT IN
THE A G Ó S¼ REPRESENTATION OF
THE DEPARTMENT AND ITS OFFICERS
IN CIVIL LITIGATION ARISING FROM
THOSE INCIDENTS. THIS IS A
SIGNIFICANT POLICY CHANGE FOR
THE CHP, WHO HAS PREVIOUSLY BEEN
ABLE TO RELY ON THE A AGO FOR
REPRESENTATION, THE DEPARTMENT
WILL INCUR SIGNIFICANT COSTS IN
ORDER TO HIRE MULTIPLE CONFLICT
COUNSELORS REPRESENT THE
DEPARTMENT AND NAME DEFENDANTS.
THIS CAN RESULT IN MULTIPLE
CONFLICT COUNSELORS REPRESENT
THE VARYING INTERESTS. ON
AVERAGE, THE COST OF A CASE WITH
A SINGLE DEPUTY ATTORNEY GENERAL
HANDLING THE ASPECTS OF A HIGH
PROFILE COMPLEX A INVOLVED
SHOOTING CASES FOR THE èC HÌ P,
INCLUDING COST OF EXPERT
WITNESSES IS APPROXIMATELY $1
MILLION. ADDITIONALLY, IN MOST
CASES, THEY IS MORE THAN ONE TOY
PER CASE, AND AT LEAST ONE
PARALEGAL ALSO ASSIGN. THIS ALSO
DOES NOT INCLUDE THE AMOUNTS FOR
SETTLEMENTS OR JUDGMENT. IF YOUR
REQUEST IS DENIED THE èC HÌ P
WOULD HAVE NOT WOULD NOT HAVE
THE SUFFICIENT FUNDS TO COVER
THE COST OF RE RETAINING
COMPETENT OUTSIDE COUNSEL
WITHOUT SEVERELY IMPACTING èC
HÌ P OPERATIONS. WITH THE
APPROVAL OF THIS REQUEST, THE
DEPARTMENT AND ITS OFFICERS WILL
CONTINUE TO RECEIVE THE DEFENSE
IN HIGH PROFILE COMPLEX
LITIGATION BY COUNSEL WITH
SKILLS AND EXPERTISE COMPARABLE
TO THE A G Ó WHEN THE A G Ó
DECLARES A CONFLICT INTEREST.
THE REQUESTED RESOURCES WILL BE
ALLOCATED. TWO CONTRACTS WITHIN
OUT WITHIN OUTSIDE COUNSEL AND
USE WITH RESOURCES WILL BE
MONITORED BY IN HOUSE COUNSEL
INCLUDING REVIEW AND
AUTHORIZATION OF EXPENDITURES BY
OUTSIDE COUNSEL FOR TO THE
DEFENSE OF THE DEPARTMENT. AND
ITS OFFICERS. THE DEPARTMENT IS
READY. HE'S ALREADY SUBJECT TO
THE COSTS ASSOCIATED WITH
PROCURING CONFLICT COUNSEL IN
CASES INVOLVING GOVERNMENT CODE
SECTION 1225 THREE UPON
IMPLEMENTATION. ON APPROVAL.
IMPLEMENTATION WILL BE
IMMEDIATE. THE CHP RESPECTFULLY
REQUESTS PERMANENT FUNDING
AUGMENTATION OF 4 MILLION FROM
THE MOTOR VEHICLE ACCOUNT FOR
THE RETENTION OF OUTSIDE
COUNSEL. THANK YOU, MA'AM. THANK
YOU, ALEO. WE HAVE NOT RAISED
SPECIFIC CONCERNS WITH THIS
PROPOSAL, BUT DO NOTE THAT IT
INCREASES COST PRESSURES TO THE
N B A. THANK YOU. THANK YOU, UM
, IN RECENT YEARS HOW MANY èC
HÌ P OFFICERS HAVE BEEN INVOLVED
IN SHOOTINGS THAT HAS LED TO
CIVIL LITIGATION? THANK YOU,
MADAM CHAIR. UH, WE WENT FROM 29
TO 23 AS A GROUPING OF OFFICER
INVOLVED SHOOTINGS. WE HAD 72
OFFICER INVOLVED SHOOTINGS WITH
INCIDENTS IN GENERAL. WITHIN
THOSE INCIDENTS. WE HAD 100 AND
38 OFFICERS DISCHARGE
DISCHARGING THEIR FIREARMS
WITHIN THOSE, UH, 72 INCIDENTS.
30 OF THEM LED TO LITIGATION
BETWEEN THAT FIVE YEAR PERIOD.
BUT TO NOTE WITHIN THAT FIVE
YEAR PERIOD LITIGATION DOESN'T
START IMMEDIATELY. WHEN THE
INCIDENT HAPPENS, YOU HAVE TO
SHIFT YOU HAVE TO ADJUST SO IT
COULD BE OUTSIDE THAT WINDOW BY
THE TIME LITIGATION ACTUALLY IS
RECEIVED BY THE èC HÌ P. IN
SINCE 2021 SINCE, UH 1506 HAS
BEEN ENACTED. THE èC HÌ P HAD
SEVEN INVOLVED SHOOTINGS. SIX OF
THOSE HAVE LED TO LITIGATION.
AND OF THOSE THREE OF THEM HAVE
BEEN RECEIVED THIS YEAR IN 2024.
ALL RIGHT, AND THEN, UM, HOW
MANY HAVE RESULTED IN A DEATH?
ALL SEVEN OF THEM. ALL SEVEN OF
THEM. SEVEN A B 506, SO I CAN
DEATH OF ALL THE 172 OR JUST A B
. LET'S LET'S IF YOU HAVE THE
NUMBERS, PLEASE SHARE THEM. I
DON'T HAVE THE NUMBERS FOR
DEATHS INVOLVING ALL SENDING TO
ENTREPRENEURIAL SHOOTINGS A
SPECIFIC TO A B 1506. OK, AND IN
THE FIVE YEARS YOU HAD A TOTAL
OF HOW MANY SHOOTINGS 200
SOMETHING YOU SAID. 7272 IN FIVE
YEARS. OK, UM AND WHAT TYPE OF
POLICIES OR PROGRAMS? DOES THE
èC HÌ P HAVE TO MINIMIZE THE
NUMBER OF OFFICER INVOLVED
SHOOTINGS THAT COULD OBVIOUSLY
TAKE LIFE èC HÌ P HAS A ROBUST
TRAINING CURRICULUM TO, UH
PREVENT UM THE USE OF FORCE, OR
AT LEAST MINIMIZE USE OF FORCE
IS THE CALIFORNIA TROLL ACADEMY
AND BEGINS THERE WITH THE CADETS
. WE OFFER 1250 HOURS OF
TRAINING OVER 26 WEEKS OF THAT
OF THAT 490 HOURS OF IN 19 OF
THE LEARNING DOMAINS OF THE 52.
EXCUSE ME, ACTUALLY. YEAH, THE
52. UH, ARE SPECIFIC TO LAW
ENFORCEMENT TACTICS. THAT POST
REQUIRES. SOME OF THESE COURSES
INCLUDE USE OF FORCE AS CRITICAL
INCIDENTS. VEHICLE PULLERS
CRISIS, UH, CRIMES IN PROGRESS
IN AREAS, FIREARM, TRAININGS,
ARREST AND CONTROL AND HANDLING
PEOPLE IN CRISIS. UH, MOST
IMPORTANTLY, THE FOCUS OF THE
LEARNING DOMAINS IS TO DEVELOP
CADETS ABILITY TO SAFELY CARRY
OUT THEIR DUTIES WITHOUT
EXPOSING THEMSELVES AND THEIR
PARTNERS IN THE PUBLIC TO UNDUE
RISK AND THE DEPARTMENT SEE
LIABILITY. OUR MISSION IS TO
ENSURE THEY HAVE FUNDAMENTAL
UNDERSTANDING OF WHEN DEADLY
FORCE IS JUSTIFIED AS WELL AS
THEIR ACTIONS MAYBE AFFECT THE
INCIDENTS. UH, AS IMPORTANT TO
MAINTAIN PROFICIENCY OFFICERS
COMPLETE CONTINUED PROFESSIONAL
TRAINING, AS REQUIRED BY POST
AND THEIR PERISHABLE SKILLS
PROGRAM. CONTINUING UH, TRAINING
IS 24 HOURS EVERY TWO YEARS WITH
20 HOURS OF ARREST, CONTROL, USE
OF FORCE TACTICS AND FIREARMS,
STRATEGIC COMMUNICATION THAT
HAVE ALL ELEMENTS OF USE FORCE
AND POLICIES. HOW MANY OF THOSE
DEATHS WERE INVESTIGATED BY THE,
UM, A G. SEVEN OF THEM. OK, AND
THEN HOW MANY OF THEM WERE
DEEMED, UM WRONGFUL DEATHS. NÓ
NONE. AND WHAT WAS THE POTENTIAL
PAYOUT IN THOSE, UH, CASES? I
DON'T HAVE THE SPECIFIC
LITIGATION NUMBERS FOR THOSE AT
THIS TIME. OK UM, AND THE REASON
WHY I ASK IS BECAUSE OF THE
DEPARTMENT IS ASKING FOR A
SIGNIFICANT AMOUNT OF MONEY FOR
OUTSIDE COUNSEL, WHICH IT
COMPLETELY MAKES SENSE,
ESPECIALLY IF THE A G WANTS TO,
UM HAVE, UH ZERO CONFLICT OF
INTEREST IN REGARDS TO
REPRESENTATION AS WELL AS
INVESTIGATION OF THE, UM YOU
KNOW, BEING ABLE TO TAKE A LOOK
AT ANY OF THESE DEATHS. OFFICER
INVOLVED SHOOTINGS IN
PARTICULAR. UM I. I JUST WANNA
UNDERSTAND. OF THESE PARTICULAR
SHOOTINGS. HOW MUCH WAS PAID OUT
BECAUSE THAT IS IMPORTANT. IF
THERE OBVIOUSLY IS A FORMULA,
YOU KNOW, I SERVED ON LOCAL
COUNCIL. WE OBVIOUSLY HAD TO
DEAL WITH SOME OF THESE THINGS.
UM THERE IS A FORMULA AND I JUST
WANT TO UNDERSTAND ONE THE
LENGTH OF THE COURT CASES TO YOU
KNOW HOW MANY WERE SETTLED OUT
OF COURT THREE. WHAT WAS THE
PAYOUT IN GENERAL? UM, DO WE
HAVE ANY OF THOSE NUMBERS? I CAN
GIVE YOU A CASE STUDY OF A
PARTICULAR INCIDENT THAT MAY NOT
COVER ALL THE AREAS THAT YOU
ASKED FOR. BUT IT GIVE YOU A
GENERAL IDEA OF WHAT A LOOKS
LIKE FOR AN A WALL. SHE YES,
YES, OK. IN THE CURRENT CASE
CONFLICT COUNCIL BILL IN THIS
PARTICULAR CASE, STUDY CO. UH,
CO BILL FOR 224 HOURS AND BUILD
A TOTAL OF 120 THREE 1000 FOR
ONE YEAR. HE REPRESENTS ALL
DEFENDANTS THAT EQUALS TO AN
AVERAGE APPROXIMATELY 559 HOURS
PER YEAR. AT THE OUTSIDE COUNCIL
RATE OF $800 EQUALS $447,200,
EVEN AT $600 AT 559 HOURS FOR
THE YEAR. THAT WOULD EQUAL TO
$365,000. THIS DOES NOT INCLUDE
EXPERT FEES AND ADDITIONAL
ATTORNEY FEES OR EVEN PARALEGAL
SUPPORT FOR THE ADDITIONAL
CAVEATS, DISCOVERY MOTIONS, ET
CETERA. AS AN EXAMPLE OF èC HÌ
P AND TWO OFFICERS ARE NAMED.
NOT ONLY THE ONE THAT SHOT THE
WEAPON, BUT ALL OFFICERS ON
SCENE. THIS MEANS THAT THERE
COULD BE THREE CONFLICT COUNCIL
FIRMS AT THREE TIMES. THREE
135,000 GETS US TO A 1 MILLION
SLIGHTLY OVER 1 MILLION OR
1,000,602 100,000 PER YEAR. THE
LOWER RATE OF 600 FOR THIS ONE
CASE NOT INCLUDING EXPERT ET
CETERA, HAVING FOUR OFFICERS.
INVOLVED IN SHOOTINGS IN ONE
YEAR WOULD EQUAL TO 4 MILLION
WITH THE CONS AS A CONSERVATIVE
ESTIMATE. DOES YOUR PROFESSIONAL
INSURANCE COVER ANY OF THIS?
THAT THAT I DON'T HAVE THAT
ANSWER FOR YOU, MA'AM. INSURANCE
SO, FOR EXAMPLE, ON A LOCAL
BASIS, YOU KNOW WE HAVE
INSURANCE. OBVIOUSLY OUR
OFFICERS, YOU KNOW, IT'S PART OF
THEIR JOB THAT POTENTIALLY
SOMETHING LIKE THIS MAY HAPPEN.
UM THERE'S LEVELS OF BEING ABLE
TO PAY THIS OUT. UM, BUT I JUST
WANTED TO UNDERSTAND AS
INSURANCE COVERING ANY PIECE OF
IT IN MY UNDERSTANDING. THE èC
HÌ P IS A SELF INSURED AGENCY.
OK, UM SO, I. I COMPLETELY
UNDERSTAND THE NEED FOR FUNDING
AND FOR, YOU KNOW,
REPRESENTATION. UM I APPRECIATE
THIS. I I'M HOPING THAT WE CAN
ALWAYS TAKE A LOOK AT THE LOWEST
END. UH, A BASELINE. UM, BUT,
UH, YOU KNOW, I JUST WANNA ALSO
MAKE SURE THAT WE ARE INVESTING
AND TRY TO ENSURE THAT SOME OF
THESE SHOOTINGS DO NOT TAKE
PLACE AT ALL. UM YOU KNOW,
PEOPLE'S LIVES ARE AT STAKE. UM
BOTH THE OFFICER AS WELL AS YOU
KNOW, THE CIVILIANS THAT YOU
GUYS HAVE TO DEAL WITH. UM BUT
AS MUCH AS POSSIBLE, II, I JUST
WANNA MAKE SURE THAT YOU KNOW,
WE'RE TAKING EVERY MEASURE TO
PRIORITIZE HUMAN LIFE. UM, FOR
ANYTHING. UM, SO THANK YOU FOR
YOUR PRESENTATION. THANK YOU,
MA'AM. ISSUE NUMBER SEVEN
CAPITAL OUTLAY PROJECTS WE'RE
GOING TO HEAR AGAIN FROM
CALIFORNIA HIGHWAY PATROL. UH,
YOU WILL HAVE FIVE MINUTES.
MADAM CHAIR. I HAVE TWO CAPITAL
LAL A PROPOSALS AND I'LL READ
THROUGH THEM BOTH THE CALIFORNIA
SPECIALLY REQUEST TO REPLACE
EXISTING CURRENT YEAR AUTHORITY
OF 13.1 MILLION GENERAL FUND
WITH 13.1 THREE ZERO PUBLIC
BUILDING CONSTRUCTION FUND FOR
THE PERFORMANCE CRITERIA. PHASE
OF GOLD RUN READING LOS BANOS,
UH ANTELOPE VALLEY, BARSTOW AND
THE PORTERVILLE AREA REPLACEMENT
PROJECTS. EACH OF THESE
FACILITIES WERE CONSTRUCTED IN
19 SIXTIES AND SEVENTIES AND
HAVE SIGNIFICANT STRUCTURAL AND
FUNCTIONAL FUNCTIONAL DIS.
DEFICIENCIES SHIFTING THE FUND
SOURCE TO THE PUBLIC BUILDINGS
CONSTRUCTION FUND ENSURES THE
MISSION CRITICAL PROJECTS CAN
CONTINUE WITHOUT UNDUE DELAY
DURING CONSTRAINTS OF FISCAL
ENVIRONMENT. THE CALIFORNIA
REQUEST 13.1 THREE ZERO FOR THE
PERFORMANCE CRITERIA PHASE
FOLLOWING THE FOLLOWING PROJECTS
AGAIN, GOLD RUN THE REPLACEMENT
OFFICE READING AREA REPLACEMENT
OFFICE, LOS MANOS REPLACEMENT
OFFICE ANTELOPE VALLEY
REPLACEMENT. BARSTOW AREA
REPLACEMENT IN PORTERVILLE AREA
REPLACEMENT FOR THE SECOND
CAPITAL OUTLAY. IT'S THE KELLER
PEAK REPLACEMENT REVER AND FUND.
THE CALIFORNIA HAVE SPECIAL
REQUESTS REP REPLACE THE
EXISTING AUTHORITY OF THREE
MILLION 231,000 WITH A NEW
APPROPRIATION OF 4,877,000 FROM
THE MOTOR VEHICLE ACCOUNT TO THE
CONSTRUCTION PHASE OF THE
CONTINUING KILLER PEAK. TOWER
REPLACEMENT PROJECT. THE PROJECT
INCLUDES A REPLACEMENT OF A
TOWER THAT COLLAPSED IN 2016 THE
TOWERS NEEDED TO RESTORE ALL IN
FULL COMMUNICATION CAPABILITIES.
KILLER, UH, KELLER PEAK. THEY
TOWER REPLACEMENT REVERT FUND
PROVIDED PROVIDE 4.877 MILLION.
TO REVERT TO THREE POINT THREE
ONE. AT A NET INCREASE OF 1
1,000,646 MILLION FROM THE MOTOR
VEHICLE ACCOUNT FOR THE
CONSTRUCTION PHASE. THIS PROJECT
WILL CONSIST OF DEMOLITION IN
THE EXISTING TOWER FOUNDATION
AND CONSTRUCTION OF THE 108 FT
COMMUNICATION TOWER WITH
ANTENNAS, FOUNDATIONS AND
FEEDING BRIDGE. THE TOTAL PRO
PROJECT COSTS ARE ESTIMATED TO
BE 5,690,000, INCLUDING
PRELIMINARY PLANS OF 220,000
WORKING DRAWINGS OF 590,000 IN
CONSTRUCTION COST OF 4,877,000.
THE CONSTRUCTION AMOUNT INCLUDES
2,000,800. 41,000 FOR
CONSTRUCTION CONTRACTS 199,000
FOR CONTINGENCIES 483,000 FOR
ARCHITECTURAL AND ENGINEERING
SERVICES, 7700 AND 78,000 FOR
TOWER AND 576,000 FOR OTHER
PROJECT COSTS. THE PRELIMINARY
PLAN STARTED IN JULY 2017 AND
WERE APPROVED IN APRIL. 2019
WORKING DRAWINGS BEGAN IN APRIL
OF 2019, AND WE'RE APPROVED IN
2020. THREE OCTOBER OF 2023
CONSTRUCTION IS ANTICIPATED TO
BEGIN IN NOVEMBER OF 2024 AND
COMPLETED IN JULY OF 2026, THE
TEAM HAS NOTED THE ORIGINAL
PROPOSED FOUNDATION IN RETURNING
WALLS WERE INSUFFICIENT FOR THE
108 FT TOWER IN HIGH WIND ZONES
LIKE KELLER PEAK. IN ADDITION,
CONSTRUCTION MUST OCCUR ON A
LIMITED ACREAGE SITE, INCREASING
A PROJECT OF DIFFICULTY. THE TWO
FACTORS RESULTING IN THE DELAY
OF THE WORKING DRAWINGS FURTHER
INCREASED COST. FINALLY THE COST
OF STEEL NEEDED TO BE NEEDED FOR
THE TOWER HAVE INCREASED
SIGNIFICANTLY SINCE 2022. AS A
RESULT, THE EXISTING AUTHORITY
IS INSUFFICIENT IN THE FUNDING
IS NECESSARY TO ENSURE PROJECT
THAT THIS PROJECT CAN BE CAN
PROCEED. THANK YOU, L, A Ó. WE
HAVE NOT RAISED SPECIFIC SORRY.
WE HAVE NOT RAISED SPECIFIC
CONCERNS WITH THESE PROPOSALS.
HOWEVER WE WOULD NOTE THAT WHILE
USING LEASE REVENUE BONDS
REDUCES YOUR TERM COST PRESSURES
, IT DOES CREATE GREATER COST
PRESSURES IN FUTURE YEARS. THE
ADMINISTRATION HAS NOT YET
INDICATED WHETHER THESE COST
PRESSURES TO PAY. THE DEBT
SERVICE WOULD ULTIMATELY COME
FROM THE N B A OR THE GENERAL
FUND. BUT AS WE'VE NOTED IN
PREVIOUS TESTIMONY, BOTH FUNDS
ARE FACING DEFICITS. THANK YOU.
DEPARTMENT OF FINANCE. RANDY
CAST THE POWER OF FINANCE. UH,
NÓ CONCERNS WITH THE, UH WITH
THE èC HÌ P S¼ REQUEST, UM AND
JUST BRIEFLY ON ON THE LEASE
REVENUE. UH, PART OF THE REASON
IS THAT SERVICE IS AN ANNUAL
APPROPRIATION. SO GOVERNOR'S
BUDGET. UM THE ADMINISTRATION
WILL REQUEST EITHER MVA A OR
GENERAL FUND AND THEN THE
LEGISLATURE CAN DELIBERATE WITH
THE ADMINISTRATION ON WHICH
WOULD BE THE BETTER SOURCE FOR
ANY GIVEN YEAR. THANK YOU, I. I
HOPE THAT THERE IS
COLLABORATION, UM, IN IN LONG
TERM FOCUS. UM I DO BELIEVE THAT
WHEN WE HAVE BUILDINGS, AND
THERE ARE EMPLOYEES THAT GO
THERE, AS WELL AS THE GENERAL
PUBLIC THAT WE SHOULD BE
INVESTING IN BETTER AND MORE
SECURE AND MORE ENERGY EFFICIENT
AND, UH, LONGER LASTING
BUILDINGS, SO I APPRECIATE YOUR
PRESENTATION. WE CAN MOVE ON TO
THE NEXT ITEM ISSUE NUMBER
EIGHT. CAPITAL OUTLAY PROJECTS
WE'RE GOING TO HEAR FROM THE Dð
M VÆ. TALKED A LOT ABOUT YOU
GUYS TODAY. FIVE MINUTES. YOU
WORRY, MADAM CHAIR. UH U S¼
MEMBERS L A Ó. UH, MY NAME IS
LEE SCOTT, CHIEF BUDGET OFFICER
OF THE DEPARTMENT OF MOTOR
VEHICLES WITH ME. TODAY IS OUR
DIRECTOR STEVE GORDON. THANK YOU
FOR THE ADDRESS THE COMMITTEE
TODAY. UH, WE DO HAVE THREE
ITEMS IN FRONT OF YOU TODAY
WE'LL START OFF WITH THE CAP
OUTLET PROJECTS MUCH SIMILAR TO
WHAT WAS JUST PRESENTED WITH THE
èC HÌ P, UM, IN THE CURRENT
FISCAL YEAR. UM WE KNOW WE DO
HAVE TO HAVE BILLIONS OF $2.5
BILLION THAT WAS APPROVED BY THE
GENERAL FUND FOR THE PERFORMANCE
CRITERIA PHASE FOR THE L CENTRAL
FIELD OFFICE REPLACEMENT PROJECT
. THIS PROJECT IS CURRENTLY
STILL AT THE ACQUISITION PHASE.
UH, THE L CENTRAL FIELD OFFICE
IS NÓ LONGER A VIABLE LOCATION.
AND DUE TO THE STRUCTURAL, UH,
FUNCTIONAL DEFICIENCIES. UM, WE
ARE LOOKING TO REPLACE IT. THIS
PROJECT WILL CONSOLIDATE THE L
CENTRAL FIELD OFFICE, THE LEAS
RALEY FIELD OFFICE. THE
COMMERCIAL DRIVE, UH, PROGRAM
AND THE LOCAL INVESTIGATION
PROGRAM INTO ONE STATE OWNED
PUBLIC FIELD OFFICE. UH, WE ARE
ALSO REQUESTING TO REVERT 14.3
BILLION IN GENERAL FUND AND
REPLACE IT WITH 15.5 MILLION
FROM THE PUBLIC BUILDING
CONSTRUCTION FUND. TO COMPLETE
THE CONSTRUCTION PHASE OF THE
OXNARD RECONFIGURATION PROJECT.
THE CONSTRUCTION FUNDING WAS
APPROVED BACK IN 2220 THREE, AND
THE CONSTRUCTION IS ESTIMATED TO
BEGIN IN MARCH OF 25 AS A RESULT
OF THE GENERAL COST INCREASES
SINCE THE PROJECT WAS FIRST
APPROVED BACK IN 1718, THE
OVERALL PROJECT HAS INCREASED A
LITTLE BIT BY 1.5 MILLION. WITH
THAT I'LL PAUSE AND ASK FOR ANY
QUESTIONS. L A Ó. SIMILAR TO
THE LAST ITEM. WE DO NOT HAVE
ANY ISSUES, BUT NOTE THE
POTENTIAL COST PRESSURE OR
IMPLICATIONS. THANK YOU.
DEPARTMENT OF FINANCE. UM
DEPARTMENT OF FINANCE NÓ
CONCERNS AND JUST ECHOING THE
COMMENTS FROM THE PREVIOUS ITEM.
THANK YOU. THANK YOU. UM, AGAIN.
I DO BELIEVE THAT WE NEED TO BE
INVESTING IN OUR INFRASTRUCTURE.
SO I APPRECIATE YOUR, UM,
PRESENTATION AND WE CAN MOVE ON
TO ISSUE NUMBER NINE. REAL I Dð
AUTOMATED DOCUMENT VERIFICATION.
WE WILL BE HEARING AGAIN FROM,
UH THE Dð M VÆ. SO AGAIN. THANK
YOU, MADAM. CHAIR Dð M VÆ IS
REQUESTING 17.5 MILLION OF
FISCAL YEAR 2425 FOR 21, ONGOING
POSITIONS, SOFTWARE AND
CONSULTING SERVICES SUPPORTING
THE REAL. I Dð DOCUMENT
VERIFICATION PROGRAM SINCE WE
IMPLEMENTED IN JULY OF 22 THE
PERCENTAGE OF CUSTOMERS OPTING
TO UPLOAD DOCUMENTS PRIOR TO
VISITING A FIELD OFFICE HAS
GROWN FROM ROUGHLY 20% AND
CLIMBING AS HIGH AS ALMOST 50.
CUSTOMERS WHO UPLOAD DOCUMENTS.
UTILIZING OUR SERVICES DOES
REDUCE THE OVERALL TRANSACTION
TIME IN THE OFFICE, WHICH IS
HUGE FOR US, UM AS WELL AS
MAKING SURE THAT WE REDUCE IT AS
MUCH AS POSSIBLE BY ABOUT FOUR
MINUTES. UH, INCLUDING INCLUDING
THIS REQUEST IS ONGOING FUNDING
FOR OUR ABBEY, A W S¼ WEB
HOSTING AND EVE SUBSCRIPTION
SERVICES TO SUPPORT THE PROGRAM.
THE PROGRAM IS ALREADY IN PLACE
AND WILL CONTINUE TO BE
NECESSARY IN SUPPORTING NEW AND
EXISTING WORKLOADS. IN THE FIELD
OFFICES, ESPECIALLY SINCE THE
REAL IDEA OF FORCE DATA IS UPON
US ON MAY 7TH 2025 THE RAD VÆ
TECHNOLOGY STACK HAS BEEN AN
EXPANDER TO SOME OF THE OTHER
CUSTOMER SERVICE IMPROVEMENTS,
SO IT'S NOT GOING TO BE JUST FOR
A REAL I Dð UH, SOME OF THOSE
ARE UTILIZING ABBE TECHNOLOGY
INCLUDE OUR VIRTUAL FIELD OFFICE
THAT WE'VE PUT FORWARD A DIGITAL
MAILROOM. LIEN SALES, DISABLED
PARKING PLACARD REC
CERTIFICATIONS. ONLINE NAME
CHANGES AS WELL AS ACCOUNTS
PAYABLE INVOICE PROCESSING. WITH
THAT WE ARE HAPPY TO ANSWER ANY
QUESTIONS. THANK YOU, L, A Ó.
YOU HAVE NOT RAISED CONCERNS
WITH THIS PROPOSAL, BUT NOTE THE
M VÆ A COST PRESSURES. THANK
YOU. THANK YOU. DEPARTMENT OF
FINANCE. WE HAVE NOTHING TO ADD
A Tð THIS MOMENT. ALL RIGHT, UM
SO I THINK YOU GUYS HEARD SOME
OF MY COMMENTARY ON THE Dð M VÆ
PREVIOUSLY AS WELL AS
REGISTRATION COSTS AND MUCH MORE
. UM SO HOW DOES THE Dð M VÆ
ASSESS WHETHER THE R A Dð VÆ
PROCESS IMPROVEMENT? UM
BASICALLY IMPROVES CUSTOMER
SERVICE. AND DOES THE DEPARTMENT
HAVE ANY INFORMATION? WHETHER UM
YOU KNOW THE SHORT END OF THE
TIME THE CUSTOMERS NEED TO SPEND
OUT A FIELD OFFICE. SO, MADAM
CHAIR. STEVE GORDON, DIRECTOR OF
THE DEPARTMENT. THANK YOU FOR
YOUR EARLIER COMMENTS. I'M SURE
WE HAVE LOTS OF LOTS TO DISCUSS.
SO WE ABSOLUTELY DO KNOW THAT
WE'RE SEEING A REDUCTION IN
SERVICE TIMES CYCLE TIMES AT THE
OFFICE WHEN I STARTED, IF YOU
LOOK AT JUST REAL, I Dð THERE
WAS A VALUE STREAM MAP THAT
DETAILED THE STEPS IT WOULD TAKE
TO ACQUIRE A REAL I Dð IN THE
OFFICE AND THOSE EXCEEDED, YOU
KNOW, 2021 MINUTES ON AVERAGE
THAT WAS DONE PROFESSIONALLY.
THIRD PARTY CONSULTANTS LONG
BEFORE I GOT TO THE DEPARTMENT.
THE TRANSACTION TIME NOW IS SUB
10 MINUTES OFF AND RUNNING AT
EIGHT MINUTES. SO WE'RE THIS
TECHNOLOGY CHANGES IN PROCESS
IMPROVEMENTS, REMOVING
UNNECESSARY STEPS FROM THE VALUE
STREAM APP. YOU'LL HAVE ADDED
SIGNIFICANT CAPACITY IN THE
FIELD OFFICE AND ALSO REDUCE THE
AMOUNT OF TIME THAT THE CUSTOMER
HAS TO STAND THERE WHILE WE'RE
WORKING AND ALSO REDUCE THE
PRESSURE ON WAIT TIMES AND
OTHERWISE, SO WE'VE DONE A
NUMBER OF THINGS THAT ACTUALLY
YOU KNOW, ARE MEASURABLE,
DEMONSTRABLE TO SHOW THAT WAIT
TIMES HAVE COME DOWN
DRAMATICALLY AND THE ABILITY TO
SERVE MORE CUSTOMERS WITH FEWER
RESOURCES HAS GONE UP
DRAMATICALLY. SUBSCRIPTION COSTS
YEAR OVER YEAR FOR, UH, THESE
PARTICULAR TECHNOLOGY TOOLS.
KEEP GOING UP EACH YEAR. UM, HOW
ARE YOU GUYS NEGOTIATING? UH,
AGGRESSIVELY. UH, NÓ. IT IS.
IT'S TRUE, RIGHT? ARE YOU ARE
COMMITTED TO A PLATFORM AND SOME
OF THESE PLATFORMS WERE BUILDING
ON. YOU TALKED ABOUT USING
THINGS THAT EXIST IN IN IN
ANOTHER IN ANOTHER SET OF TERMS,
MANY OF THE THINGS WE'RE
BUILDING ON ON TOP OF THE SALES
FORCE PLATFORM, BUT IT IS A
PLATFORM THAT THERE IS A
POSSIBILITY THAT COSTS COULD GO
UP. WE ARE NEGOTIATING ACROSS
THE STATE WITH èC, Dð, Tð AND
OTHERS TO MAKE SURE WE'RE
GETTING THE BEST POSSIBLE
NEGOTIATOR RATE GIVEN THE SIZE
OF THE STATE. UM SO WE'RE BEING
AGGRESSIVE, MAKING SURE THE
PRICES ARE ARE AS LOW AS
POSSIBLE. WE'RE USING GARTNER
AND OTHER RESEARCH SERVICES TO
FIGURE OUT WHAT THE MARKET WILL
BEAR. SO WHAT ARE COMMERCIAL
FIRMS OF SIMILAR SIZE? WHAT ARE
THEY ABLE TO GET ONE
NEGOTIATING, SO WE'RE TRYING TO
BE AS AGGRESSIVE AS POSSIBLE,
BECAUSE IN THE END, THIS IS OUR
MONEY WE'RE NEGOTIATING WITH. WE
WANT TO MAKE SURE THIS TAXPAYERS
THAT WE'RE DOING THE BEST WE CAN
FOR THE TAXPAYER, WHICH IN SOME
CASES IS US SO THE STATE OF
CALIFORNIA IS CONSIDERED A
PRIORITY CUSTOMER FOR ALMOST
EVERY TECH AGENCY OR A TECH. UH,
ORGANIZATION. YOU CAN THINK OF
RIGHT? JUST BASED ON ECONOMIES
OF SCALE, RIGHT IF WE HAVE A
CALIFORNIA RESIDENTS USING THESE
PARTICULAR SERVICES, UM THE DATA
THAT IS BEING KEPT, HOW ARE YOU
ENSURING SECURITY OF THIS DATA?
NÓ GREAT QUESTION. SO FIRST END
OF THE DATA THAT WE ACTUALLY,
YOU KNOW, COLLECT DURING THAT,
OR USE IT ON THESE SYSTEMS IS
PUT INTO THE PROPER FED RAMP
CERTIFIED DATA CENTER, SO IT IS
CARVED OFF AIR GAPPED IN MANY
CASES FROM ANY OTHER COMMERCIAL
SERVICES. OUR GOAL IS NOT TO
HAVE THIS BE IN A PUBLIC DATA
SET THAT, UH AND ANALYTICS
COMPANY. SOME YOU KNOW SOME
SOMEBODY MAY BE IN YOUR DISTRICT
MIGHT BE THINKING ABOUT HOW TO
MONETIZE SO WE MAKE SURE THAT
THAT IS RESTRICTED AND ACCESS IS
RESTRICTED, AND IT'S USED ONLY
AS APPROPRIATE FOR STATE
SERVICES. SO THAT'S THE THAT'S
THE OVERARCHING THING. I'M
SORRY, MADAM CHAIR. WHAT'S THE
REDUNDANCY EFFORTS? IF YOU THINK
ABOUT REDUNDANCY IN TERMS OF A W
S¼, SO WE USE A W S¼ AS OUR
HOSTING SERVICE, GENERALLY
SPEAKING, SO WE DO HAVE THINGS
IN TWO PARTICULAR REGIONS. WE DO
NOT A HOT STAND BY BECAUSE HOT
STANDBYS ARE EXPENSIVE, BUT WE
DO HAVE COLD BACKUPS AND SO ON
TO MAKE SURE THAT WE CAN
SURVIVE. YOU KNOW, A CRITICAL
FAILURE, OK? AND IS THERE AN
INVESTMENT IN REGARDS TO ALL OF
THE TECH UPGRADES THAT YOU GUYS
ARE TRYING TO DO IN REGARDS TO
PRIVACY AND SECURITY? TWO VERY
SEPARATE THINGS? YES AND I
ACTUALLY ONE OF THE B èC P
PROPOSALS THAT IS IN YOUR IS FOR
CYBERSECURITY TO MEET THE CAL.
SECURE FRAMEWORK. SO, YES,
PRIVACY. WE'RE ALSO VERY FOCUSED
ON THAT WE GET FEEDBACK FROM THE
A èC, LU AND MANY OTHERS THAT
PARTICIPATED IN THE SPACE TO
MAKE SURE THAT IN FACT THAT ANY
INFORMATION WE COLLECT IS NEEDED
. MAKE SURE WE USE IT THE PROPER
WAY AND SO ON, AND THERE ARE
THERE ARE GUIDELINES AND SO ON
THAT WE ADHERE TO AND OF COURSE
WE TAKE PUBLIC COMMENT AGAIN.
THE A èC LU HAS BEEN VERY
ACTIVE IN SOME OF THESE SOME OF
THESE AREAS AND WE LISTEN TO
THEIR FEEDBACK AND TAKE IT
SERIOUSLY. OK. AND HOW ARE YOU
SECURING IT? SECURITY BACK TO
THE CAL. WELL, THE CAL SECURE
FRAMEWORK SO WHAT? WE'RE WHAT
WE'RE USING. OF COURSE WE DO.
ENCRYPTION ARREST, ENCRYPTION
AND TRANSIT. ALL OF THE BASIC
STUFF. YOU WOULD EXPECT ANY
AGENCY LIKE US TO DO. WE OF
COURSE, AUDIT OURSELVES TO MAKE
SURE THAT IT WORKS. WE ARE GOING
THROUGH THE STATE AUDIT RIGHT
NOW. THE MILITARY DEPARTMENT IS
IN AUDITING TO MAKE SURE THAT
WE'RE HARDENED PROPERLY.
INFORMATION IS USED PROPERLY
THAT WE DO PENETRATION TESTS, SO
WE ARE. WE ARE HIT FROM EVERY
AGENCY FROM èC Dð Tð TO
MILITARY TO OTHERS TO MAKE SURE
THAT IN FACT THAT WE'RE DOING
ALL OF THE THINGS AT THE HIGHEST
LEVEL, IT'S EASY TO TALK ABOUT,
SAY, OH, YEAH, WE'RE DOING ALL
THESE THINGS. IT'S REALLY TO DO
AS I CAN TELL BY THE EXPRESSION
FACE. IT'S VERY HARD TO DO THIS
WELL, BUT I THINK THE TEAM DOES
A GREAT JOB. I APPRECIATE IT. I
APPRECIATE YOUR ANSWERS, TOO.
THANK YOU. UH, THANK YOU FOR
YOUR PRESENTATION. NÓ FURTHER
COMMENTS. THANK YOU. THANK YOU.
ALL RIGHT, UM WE'RE MOVING ON TO
PUBLIC COMMENTS TO ENSURE THAT
EVERYONE HAS A CHANCE TO BE
HEARD. PLEASE LIMIT YOUR
COMMENTS TO 30 SECONDS. AND IF
SOMEONE ELSE HAS ALREADY MADE A
SIMILAR COMMENT, PLEASE JUST ADD
A ME TOO. UH, THANK YOU. LET'S
BEGIN. PUBLIC COMMENTS IS THIS
IS A HOT MIC OK, MADAM CHAIR
AARON REID, REPRESENTING
CALIFORNIA ASSOCIATION OF HIGH
PATROLMAN FOR 46 YEARS, AND IN
46 YEARS, THEY'VE ONLY SENT ONE
LETTER LIKE SIGNED BY THE BOARD
OF DIRECTORS. THIS HAS NEVER
HAPPENED IN MY 46 YEARS OF
REPRESENTING. THAT'S HOW
IMPORTANT THE ISSUE IS OF THE L
A Ó RECOMMENDATION TO MODIFY OR
SOMEHOW ELIMINATE THE SALARY
FORMULA THAT'S IN STATUTE WAS
PUT IN STATUTE IN 1974, SIGNED
BY RONALD REAGAN, AND THE BILL
WAS CARRIED BY SPEAKER WILLIE
BROWN. A WILLIE BROWN CARRIED A
SECOND BILL ON THE SAME ISSUE.
UH, SO, UH, THE SPEAKER DID TWO
BILLS RELATING TO THE FORMULA, I
IF JUST IF I MAY JUST SAY WE
HAVE 1000 VACANCIES, AND WE HAVE
TO DO EVERYTHING WE CAN TO
RECRUIT AND THE FORMULA ONLY
PUTS US IN THE TOP 100 IN THE
MIDDLE IN THE MIDDLE. NOT NEAR
THE NOT TOP 10. NOT 25. NOT EVEN
THE TOP 50. WE'RE RIGHT IN THE
MIDDLE. UH WITH THAT, SO I WOULD
BE HAPPY TO COME TO YOUR OFFICE
AND GO INTO DETAIL. WE'RE GONNA
BE ABOUT USE OF FORCE. A STAFF
MEMBER NAMED ELLIOT HERE SITTING
IN THE FRONT ROW. YOU CAN
DEFINITELY SCHEDULE SOMETHING
AND HAVE A CONVERSATION. THANK
YOU. NEXT SPEAKER. 30 SECONDS
AGAIN. UH I THINK IT'S STILL
GOOD MORNING, UM STEVE WALL ON
BEHALF OF THE ALAMEDA CONTRAST
THE TRANSIT DISTRICT IN THE NAPA
VALLEY TRANSPORTATION AUTHORITY,
UM, WANTED TO SPEAK IN SUPPORT
OF THAT ISSUE, ONE TO URGE YOUR
SUPPORT FOR THE GOVERNOR'S, UH,
JANUARY BUDGET PROPOSAL
REGARDING TRANSIT FUNDING IN
PARTICULARLY, UH, THE PROPOSAL
FOR THE TRANSIT N CITY RAIL
CAPITAL PROGRAM, SO THANK YOU.
THANK YOU. GOOD MORNING. JEANNIE
WARD WALLER HERE ON BEHALF OF
èC BIKE, TRANSFORM STREETS FOR
ALL AS WELL AS LEADERSHIP
COUNCIL FOR JUSTICE AND
ACCOUNTABILITY. UM WANT TO
OPPOSE THE PROPOSED CUTS TO THE
ACT OF TRANSPORTATION PROGRAM
SUPER POPULAR PROGRAM 90% OF THE
FUNDING HAS BENEFITED
DISADVANTAGED COMMUNITIES WOULD
LOVE TO SEE THAT 200 MILLION
BACK FILLED FROM THE STATE
HIGHWAY ACCOUNT AS, UM, THE
BUDGET AGREEMENT LAST YEAR, UM,
AGREED TO THANK YOU. HELLO UH,
MICHAEL ANZALONE HERE WITH THE
CALIFORNIA MOUNTAIN BIKING
COALITION COW BIKES DIRTIER, UH,
COUSIN, JUST ECHOING THE
COMMENTS MADE BY èC BIKE THERE.
UM AND, UH, WE, UH, RESPECTFULLY
REQUEST THAT THE FUNDING BE
RESTORED IN THE, UH, 2024
BUDGET. THANK YOU. THANK YOU.
GOOD AFTERNOON MARK WATTS,
REPRESENTING THE, UH SAN DIEGO M
, Tð S¼ AND R èC Tð èC, THE
RIVERSIDE COUNTY TRANSPORTATION
COMMISSION ON ITEM ONE. WE
SUPPORT FULL FUNDING FOR THAT.
IN ADDITION, WE DID SUBMIT A
LETTER ON BEHALF OF
TRANSPORTATION, CALIFORNIA
CONSTRUCTION INDUSTRY AND ALLIED
LABOR JOINTLY, UH, EXPRESSING
CONCERN ABOUT WHAT YOU JUST
HEARD, WHICH WAS PROPOSAL BY THE
MY PREDECESSORS HERE AT THE AT
THE AT THE MICROPHONE TO
BACKFILL THE A Tð P. THAT WAS A
VERY APPRECIATIVE OF YOUR
QUESTION THAT YOU ASKED ABOUT
HOW THE CONDITION OF THE, UH,
STATE HIGHWAY ACCOUNT LOOKS
GOING FORWARD AND WE'RE GETTING
CLOSE TO THAT TIPPING POINT
WHERE TAKING ANY MONEY OUT OF
THE OUT OF THE STREAM WILL BE
DANGEROUS BECAUSE WE'LL BE, UM,
NOT HAVING A COMPLETE AMOUNT OF
FUNDING COMING THROUGH THE
PROCESS. THANK YOU VERY MUCH FOR
YOUR PATIENCE. UH, GOOD
AFTERNOON CHAIR. RAHAB BRYANT.
ME MONTE WITH? ASK ME CALIFORNIA
. UH, WE UNDERSTAND THE
DIFFICULT DECISIONS THAT THE
LEGISLATURE IS GOING TO MAKE TO
ADDRESS THE BUDGET DEFICIT, AND
WE APPRECIATE THE ACTION THAT
THIS BODY TOOK LAST YEAR TO
SUPPORT TRANS AGENCY OPERATIONS
THROUGH THE FORMULA BASED Tð. I
èC RP, UH, WITH THAT BEING SAID
, WE WANT TO BRING AWARENESS TO
HOW THE PROPOSED REFERRAL AND
POTENTIAL CLAWBACK OF THESE
FUNDS WILL IMPACT THE TRANSIT
WORKFORCE AND COMMUNITIES THAT
DEPEND ON THEIR SERVICES AND AS
AS MANY OF THEM FACE UPCOMING
FISCAL CLIFF DRIVEN BY THE
PANDEMIC. AND SO WITH THAT SAID,
WE ARE, UM RESPECTIVELY, URGING
CAUTION ON SUCH PROPOSALS AND
LOOK FORWARD TO WORKING WITH THE
COMMITTEE TO IDENTIFY BUDGET
SOLUTIONS WHILE MITIGATING THE
IMPACT ON THE CIVIL SERVICE
WORKFORCE. THANK YOU. GOOD
AFTERNOON, KIRK BLACKBURN HERE
ON BEHALF OF THE SAN DIEGO
ASSOCIATION OF GOVERNMENT, OR
SAND. A, UH, FIRST OFF. I WANNA
THANK THE LEGISLATURE FOR THEIR,
UH, RECOGNIZING THE IMPORTANT
THE IMPORTANCE OF FUNDING FOR
TRANSIT IN LAST YEAR'S BUDGET
AND APPLAUD THE GOVERNOR FOR,
UH, PROPOSING TO PROTECT THESE
CRITICAL Tð IR èC P FUNDS IN
UH, DURING THIS DIFFICULT BUDGET
YEAR, THE Tð R èC P FUNDING IS
ESSENTIAL TO ACHIEVING THE SAN
DIEGO REGION AND THE STATES
CLIMATE AND EQUITY GOALS AND
SAND. A STRONGLY URGES THE
LEGISLATURE TO FIGHT ALONGSIDE
THE GOVERNOR TO PROTECT THESE
FUNDS. HOWEVER ALSO WANTED TO
BRIEFLY EXPRESS OUR DEEP
CONCERNS WITH THE PROPOSED CUTS
TO THE ACTIVE TRANSPORTATION
PROGRAM. THERE'S A CRITICAL
PROGRAM. THANK YOU. THANK YOU.
AND JUST TO FY I, ALL OF YOU
GUYS THAT WOULD LIKE TO HAVE A
LITTLE BIT LONGER, MORE IN DEPTH
CONVERSATION. ELLIOTT IS HERE.
WE'RE MORE THAN HAPPY TO HAVE
SET UP THOSE CONVERSATIONS AND
TALK ABOUT IT AS WELL AS OF
COURSE, OUR OUR, UH, BUDGET OF
FIVE COMMITTEE STAFF. THANK YOU.
THANK YOU SO MUCH. CHAIR RACHEL
MUELLER ON BEHALF OF NEXTGEN,
CALIFORNIA ALIGNING MY COMMENTS,
UM, AND ON THE PROPOSED CUTS TO
THE A P ACTIVE TRANSPORTATION
PROGRAM, IT'S A VITAL PROGRAM
AND THE A Tð P AND OTHER UH,
EQUITY PROGRAMS SHOULD BE LAST
IN LINE FOR THESE CUTS,
ESPECIALLY BECAUSE THERE'S AMPLE
FLEXIBLE FUNDING THAT EXISTS AT
THE TRANSPORTATION AGENCY.
THANKS TO THE BIPARTISAN
INFRASTRUCTURE LAW. UH WE THANK
YOU FOR YOUR CONSIDERATION OF
THIS REQUEST. THANK YOU SO MUCH.
THANK YOU. MADAM CHAIR MICHAEL
PEL HERE ON BEHALF OF THE
CALIFORNIA TRANSIT ASSOCIATION,
ALSO GIVING VOICE TO THE NEED TO
PRESERVE THE $5.1 BILLION FOR,
UH, PUBLIC TRANSIT AGENCIES WANT
TO NOTE THAT THAT MONEY CAME
WITH EXTENSIVE ACCOUNTABILITY
REQUIREMENTS ON OUR REGIONS AND
OUR AGENCIES ON THE USE OF THOSE
DOLLARS AND ULTIMATELY, UH, HOW
THEY WILL BE, UH, DRIVING TOWARD
IMPROVEMENTS TO RIDERSHIP IN OUR
FISCAL STABILITY AS WE MOVE
FORWARD, WE'RE ALSO GONNA BE
ENGAGING WITH THE STATE IN THE
CALIFORNIA STATE TRANSPORTATION.
AGENCIES TRANSIT TRANSFORMATION
TASK FORCE. THOSE CONVERSATIONS
ARE ONGOING. WE'LL TOUCH ON A
VARIETY OF TOPICS. AND SO AS
CONVERSATIONS UNFOLD, UH, THIS
YEAR, WE'LL BE ENGAGING WITH YOU
AND, UH, MEMBERS OF YOUR CAUCUS
TO HELP KEEP THOSE, UH, FUNDS
MOVING TO TRANSIT AGENCIES.
THANK YOU. THANK YOU. I HAVE
GREAT IDEAS OF MY OWN. SO LET'S
TALK. THANK YOU. MADAM CHAIR,
ALCHEMY GRIMM, UH, ON BEHALF OF
CALTRAIN IN THE SAN FRANCISCO
MUNICIPAL TRANSPORTATION AGENCY
JUST HERE TO ECHO PREVIOUS
COMMENTS MADE ON THE Tð IR èC
P. THESE FUNDS ARE NECESSARY TO
DELIVER ELECTRIFIED SERVICE AND
SUPPORT STATE CLIMATE GOALS,
REDIRECTION OR DELAY OF THESE
DESPERATELY NEEDED TRANSIT
DOLLARS WILL HARM ALL OF THE
WRITERS AND COMMUNITIES WE SERVE
. AND FOR THAT, FOR THAT REASON
WE URGE YOUR CONSIDERATION AND
PRESERVING THESE FUNDS. THANK
YOU. GOOD MORNING OR AFTERNOON
CHAIR, UH, ANTHONY TANNEHILL
WITH CALIFORNIA SPECIAL
DISTRICTS ASSOCIATION, AS WELL
AS PORTFOLIO FOR THE LEAGUE OF
CALIFORNIA CITIES. JUST WANNA
THANK SENATOR NEWMAN AND THE, UH
FOR RAISING THE ISSUE ON ISSUE,
TWO OF ADDING REPORTING LANGUAGE
AND THANK THE COMMITTEE FOR
ENTERTAINING IT. UH, WE KNOW
THAT THIS REPORTING LANGUAGE
WILL HELP LOCAL AGENCIES MORE
EFFECTIVELY USE UH VITAL PUBLIC
FUNDS TO IMPLEMENT THE CARB
MANDATES. THANK YOU. THANK YOU.
GOOD AFTERNOON, DANIELLE BRADLEY
ON BEHALF OF THE CALIFORNIA
STATE ASSOCIATION OF COUNTIES
WANT TO ECHO THE COMMENTS MADE
BY èC S¼ Dð, A TODAY ON ISSUE
TWO RELATED TO THE DATA
REPORTING LANGUAGE, UM FOR
CALTRANS, ZERO EMISSION VEHICLES
AND INFRASTRUCTURE. UM THANK YOU
FOR SENATOR NEWMAN'S COMMENTS
TODAY AND THANK YOU TO THE
COMMITTEE FOR THE INCLUSION ON
THE AGENDA. THANK YOU. GOOD
AFTERNOON. UH, MY NAME IS WALID
WITH THE LEAGUE OF CALIFORNIA
CITIES. I JUST WANT TO THANK YOU
ALL FOR, UH, TAKING THE TIME TO
SPEAK ON THE, UH, ACTION ITEMS,
AND I WANNA JUST ECHO THE
COMMENTS MADE BY SPECIAL
DISTRICTS AND COUNTIES. THANK
YOU AGAIN. THANK YOU. GOOD
AFTERNOON HOLLY FOR MANY DAYS
WITH LIGHTHOUSE PUBLIC AFFAIRS
HERE TODAY ON BEHALF OF SPUR AND
NONPROFIT PUBLIC POLICY
ORGANIZATION IN THE BAY AREA,
AND WE URGE THE COMMITTEE TO
MAINTAIN THE 5.1 BILLION FOR
TRANSIT AGENCIES, AND WE ALSO
URGE THE SUBCOMITTEE TO CONSIDER
RESTORING THE 200 MILLION IN A
Tð P FUNDS BECAUSE INVESTMENTS
IN WALKING AND BIKING ARE NOT
ONLY COST EFFECTIVE, BUT THEY'RE
SAVING LIVES. SO THANK YOU FOR
CONSIDERATION OF THESE TWO
MEASURES. THANK YOU. GOOD
AFTERNOON MADAM CHAIRMAN ON
BEHALF OF THE SAN FRANCISCO BAY
AREA RAPID TRANSIT DISTRICT. WE
SUPPORT THE PRESERVATION OF
TRANSIT FUNDING. UH CHANGING
HATS ON BEHALF OF THE
ASSOCIATION OF CALIFORNIA
AIRPORTS. WE LOOK FORWARD TO
WORKING WITH YOU IN THE
COMMITTEE ON STEMMING THE LOSSES
OF FAA GRANTS TO SMALL AIRPORTS.
THE MEMBERS OF THIS COMMITTEE
ALONE HAVE LOST 1.8 MILLION FROM
AIRPORTS IN YOUR DISTRICTS, UH,
IN THE LAST 10 YEARS, AND WE
LOOK FORWARD TO STOPPING THE
BLEEDING OF FAA GRANTS. I
ACTUALLY HAVE SOME SMALLER
AIRPORTS IN MY DISTRICT. I WOULD
LOVE FOR YOU TO SET UP A
CONVERSATION WITH OUR STAFF. I
THINK WE'RE SCHEDULED TO MEET ON
MONDAY. THANK YOU. THANK YOU.
GET OUT OF MY ROOM CHAIR, DARRYL
LITTLE JUNIOR HERE ON BEHALF OF
N R Dð èC N R Dð èC
RESPECTFULLY REQUEST THAT THE
LEGISLATURE BACKFILL THE $200
MILLION GENERAL FUND CUT TO A P
WITH 200 MILLION FROM THE STATE
HIGHWAY ACCOUNT. RESTORING THIS
A Tð P CUT WITH STATE HIGHWAY
ACCOUNT FUNDS IS A
STRAIGHTFORWARD SOLUTION WITH NÓ
ADVERSE GENERAL FUND IMPACTS AND
ENORMOUS CLEAN AIR SAFETY AND
EQUITY BENEFITS FOR ALL
CALIFORNIA COMMUNITIES. THANK
YOU FOR YOUR TIME. THANK YOU.
YOU'RE DOING A DOUBLE. I AM. I'M
BACK. I'LL MAKE THIS ONE QUICK
AND SECONDS BECAUSE THAT'S UH
ALCHEMY GRAHAM ON BEHALF OF
CACTI, THE CALIFORNIA CITY
TRANSPORTATION INITIATIVE JUST
HERE TO ECHO PREVIOUS COMMENTS
MADE ON MAINTAINING FUNDING FOR
THE ACTIVE TRANSPORTATION
PROGRAM. THANK YOU. TO BE BRIEF,
MADAM CHAIR MEMBERS ANDREW AN
HERE TODAY ON BEHALF OF THE LOS
ANGELES COUNTY METROPOLITAN
TRANSPORTATION AUTHORITY,
ECHOING COMMENTS THAT HAVE BEEN
MADE, UH BY PRIOR SPEAKERS IN
SUPPORT OF THE GOVERNOR'S
PROPOSAL FOR THE $5.1 BILLION
TRANSPORTATION FUNDING PACKAGE
SPECIFICALLY FOR PUBLIC
TRANSPORTATION. UM AND THEN ALSO
ON BEHALF OF THE PORT OF LOS
ANGELES. UH, WE SUPPORT THE
GOVERNOR'S $1.2 BILLION FUNDING
PROGRAM FOR P FIP. THANK YOU.
ALRIGHT HAVING HEARD FROM ALL
MEMBERS OF THE PUBLIC MEMBERS.
UM ARE THERE ANY ADDITIONAL
QUESTIONS SEEING NÓ MEMBERS AT
ALL? UH, WE CAN MOVE ON. THANK
YOU TO ALL THE INDIVIDUAL
PARTICIPATING IN THE PUBLIC
TESTIMONY TODAY. IF YOU WERE NOT
ABLE TO TESTIFY, PLEASE SUBMIT
YOUR COMMENTS OR SUGGESTIONS IN
WRITING TO THE BUDGET AND FISCAL
REVIEW COMMITTEE OR VISIT OUR
WEBSITE. YOUR COMMENT AND
SUGGESTIONS ARE IMPORTANT TO US,
AND WE WANT TO INCLUDE YOUR
TESTIMONY IN THE OFFICIAL
HEARING RECORDS. THANK YOU FOR
EVERYONE FOR YOUR PARTICIPATION.
WE HAVE CONCLUDED THE AGENDA FOR
TODAY'S HEARINGS. UH, THE SENATE
BUDGET SUBCOMITTEE, NUMBER FIVE
ON CORRECTIONS, PUBLIC SAFETY,
JUDICIARY, LABOR AND
TRANSPORTATION IS A.
YEAH.