WELCOME EVERYBODY. THANKS FOR
YOUR PATIENCE. WE WILL CONVENE
THE SUB-COMMITTEE AND ESTABLISH
A QUORUM OF THE CONSULTANT CAN
PLEASE CALL THE ROLL. PRESENT
PRESENT. NILO NILO HERE.
SMALLWOOD CUEVAS SMALL WITH
CUEVAS HERE. THANK YOU VERY MUCH
AND AGAIN. WELCOME WE HAVE A
TOTAL OF 12 ISSUES. DOCKETED FOR
THE SUB COMMITTEE HEARING TODAY,
ISSUES ONE THROUGH SIX BE TAKEN
UNDER VOTE ONLY ISSUE NUMBER. 11
IS AN ACTION ITEM, WHICH WILL BE
TAKEN UP FOR ACTION AFTER
DISCUSSION IN PUBLIC. UH,
COMMENT. WE WILL MOVE TO THE
ITEMS FOR DISCUSSION, WHICH ARE
ISSUES SEVEN THROUGH 12 1ST. THE
DEPARTMENT OF TECHNOLOGY COULD
PLEASE COME FORWARD. WELCOME.
WHEN BUT I DID. YEAH. UM THANK
YOU. WELCOME WHEN YOU ARE, UH,
PROCEED WHEN READY. MAKE SURE
THE EQUIPMENT'S WORKING. IS
THERE A BUTTON WHICH BUTTON ALL
RIGHT. THANK YOU. EACH OF THESE
ARE DIFFERENT. OK? OH, OK. WELL,
THANK YOU VERY MUCH. I WANT TO
MOVE IT CLOSER IF YOU NEED TO,
BUT THANK YOU. ALL RIGHT. I WAS
EXPECTING A RED LIGHT. SO THANK
YOU VERY MUCH. GOOD MORNING
CHAIR AND DISTINGUISHED MEMBERS.
UH THANK YOU FOR THE OPPORTUNITY
TO GIVE A SHORT PRESENTATION ON
THE MIDDLE MILE BROADBAND
INITIATIVE AND DISCUSS THE
BUDGET CHANGE PROPOSAL THAT'S IN
FRONT OF YOU TODAY. I AM LEANNA
BAILEY CRIMMINS, CALIFORNIA
STATE CHIEF INFORMATION OFFICER
AND THE DIRECTOR OF THE
DEPARTMENT OF TECHNOLOGY. CO
PRESENTING WITH ME TODAY IS MR
MARK MONROE, WHO'S THE DEPUTY
DIRECTOR OF THE MIDDLE MILE
BROADBAND INITIATIVE. AS WE
PAINFULLY SAW THROUGH THE
PANDEMIC, HOW IMPORTANT
BROADBAND IS TO, UM ONE IN FIVE
CALIFORNIANS AND ACROSS THIS
GREAT STATE OF OURS. UM THANKS
TO SENATE BILL 156. IF THAT WAS
SIGNED JULY 2021 BY GOVERNOR
GAVIN NEWSOM AND, UM, OBVIOUSLY
FROM THE LEGISLATURE, WE ARE
TRYING TO BRING EQUITABLE HIGH
SPEED BROADBAND SERVICES TO ALL
CALIFORNIANS. CALIFORNIA
DEPARTMENT OF TECHNOLOGY
SPECIFICALLY IN RELATION TO THE
BROADBAND FOR ALL INITIATIVE HAS
AN IMPORTANT ROLE HAS AN
IMPORTANT ROLE WHEN IT COMES TO
THE DEVELOPMENT AND OPERATION OF
A 10,000 MILE BROADBAND NETWORK
WAS WHICH IS ALSO THE NATION'S
LARGEST OPEN ACCESS BROADBAND
NETWORK. WE ARE PLEASED TO
REPORT SIGNIFICANT
ACCOMPLISHMENTS OVER THE LAST
COUPLE YEARS, INCLUDING SIGNING
CONTRACTS TO LEASE CONSTRUCT AND
PURCH PURCHASE APPROXIMATELY 80
3% OF THE PLAN NETWORK MILEAGE.
IN PARTNERSHIP WITH CALTRANS. WE
ALSO HAVE BEEN LEADING THE WAY
AS CALIFORNIA LOOKS AT OUR STATE
AND FEDERAL PARTNERS AND
REDUCING THE TIME TERM PERMIT.
THIS IS MADE SIGNIFICANT
EFFICIENCIES ACROSS THE BOARD.
WE'VE ALSO ESTABLISHED WITH
TRIBAL ENTITIES, LOCAL
GOVERNMENTS AND PRIVATE PARTNERS
. PLEASED TO ANNOUNCE WE HAVE A
LETTER OF INTENT WITH THE BUREAU
OF CITY LIGHTING IN THE L A AREA
WE ALSO HAVE FORT BRAGG,
VACAVILLE. AND THERE ARE MANY
OTHERS THAT WE ARE LOOKING
FORWARD TO PARTNERING WITH. OUR
MISSION IS TO SEE THAT THAT
NETWORK PROVIDES VITAL SERVICES
TO CALIFORNIANS AND WE HAVE
HEARD LOUD AND CLEAR. THIS IS A
PRO A PRIORITY FOR CONSTITUENTS
UP AND DOWN THE STATE FROM URBAN
CENTERS TO RURAL COMMUNITIES.
THAT CONCLUDES MY OPENING
REMARKS, AND I LIKE TO TURN IT
OVER TO MR MARK MONROE, WHO WILL
GIVE YOU A FEW, UH, TALK ABOUT
HIS SLIDES AND A SHORT
PRESENTATION. ALL RIGHT. GOOD
MORNING CHAIR AND MEMBERS. MARK
MONROE, DEPUTY DIRECTOR FOR THE
MIDDLE MAIL BROADBAND INITIATIVE
HERE AT èC. Dð. Tð UM, I'VE, UH
I'VE BEEN ASKED TO PROVIDE A
BRIEF UPDATE ON THE PROGRESS OF
THE MMB I PROJECT. UH, AS NOTED
IN THE AGENDA, A TOTAL OF THREE
$0.78 BILLION HAS BEEN MADE
AVAILABLE TO èC Dð Tð TO
DEVELOP A 10,000 MILE NETWORK OF
MAL OPEN ACCESS MIDDLE MILE
BROADBAND INFRASTRUCTURE THAT
CROSSES THE STATE. UH, CURRENTLY
, UH, $2.4 BILLION OF THIS IS
THE FEDERAL, UM S¼ FRF STATE
LOCAL FEDERAL. I FORGET WHAT IT
ALL STANDS FOR. BUT S¼ FRF THE F
THE FEDERAL FUNDING THAT THAT
CAME FROM THE, UH, AMERICAN
RESCUE ACT PLAN. UM OR A P, UH,
AND MOST OF THE REMAINDER IS
FROM THE GENERAL FUND. UH, THE
FEDERAL FUND MUST BE UNDER
CONTRACT BY THE END OF THE
CALENDAR YEAR. UH, THIS CALENDAR
YEAR, 2024 WITH ASSOCIATED WORK
COMPLETED BY THE END OF
DECEMBER, OR, UH, 2026 PERES. 56
èC Dð Tð WORKED WITH èC PU èC
AND, UH, THE THIRD PARTY
ADMINISTRATOR GOLDEN STATE NET
TO, UH, TO IDENTIFY THE
COMMUNITIES WHERE THE UNSERVED
POPULATIONS THROUGHOUT THE STATE
WERE LOCATED IN THE MAP, A
NETWORK TO REACH THESE LOCATIONS
AND THE INITIAL MAP WAS
PRESENTED IN MAY OF 2022. UH AND
èC Dð Tð HAD CALTRANS BEGAN
PRECONSTRUCTION ACTIVITIES SUCH
AS PERMITTING AND DESIGN WORK IN
2022 AS WELL ON ALL 10,000 MILES
IN ORDER TO MEET THOSE FEDERAL
DEADLINES. èC Dð èC èC Dð Tð
ALSO SIGNED CONTRACTS, UH EARLY
IN 22 2022 TO PURCHASE FIBER AND
ASSOCIATED MATERIALS TO MITIGATE
THE RISK OF SUPPLY CHAIN
SHORTAGES. THE STATE ALSO WENT
OUT TO BED IN 2022 FOR BOTH
CONSTRUCTION AND PARTNERSHIPS.
AT THE SAME TIME, UM, AGAIN TO
MEET THAT DEADLINE, UH, TO DATE
MORE THAN 6500 MILES OF
PARTNERSHIPS FOR LEASE, JOINT
BUILD AND PURCHASE AGREEMENTS
HAVE BEEN SIGNED, REDUCING
CALTRANS CONSTRUCTION TO
APPROXIMATELY 4000 MILES. AS èC
Dð Tð HAS SIGNED CONTRACTS FOR
THESE PARTNERSHIPS, UH, USING
YOU'LL HEAR US REFERENCES. THE
RF I SQUARED PROCESS. UM, IT'S
JUST A WAY OF GOING OUT TO BED
THAT THAT PRESENTS PRESENTS A
PROBLEM AND THAT THAT'S UH THE,
UH, THE BIDDERS KIND OF PROPOSED
SOLUTIONS. UM, IT HAS HAD A K¾T
STOPPED THE PRECONSTRUCTION. UM
THAT IS NÓ LONGER NEEDED ON
THOSE ON THE 6500 MILES. UH,
CURRENTLY, èC Dð Tð ANTICIPATES
HAVING CALTRANS CONSTRUCT
APPROXIMATELY 4000 MILES OF THE
NETWORK, SO THAT IS WHAT
CALTRANS IS CURRENTLY DEVELOPING
AND WHERE CALTRANS ANTICIPATES
FINALIZING PRECONSTRUCTION BY
THE END OF THIS CALENDAR YEAR.
UH, HOWEVER, GIVEN THE SUCCESS
OF FINDING PARTNERS, UH, IN THE
FIRST RF I SQUARED SOLICITATION
èC Dð Tð WENT OUT TO BID, UH,
WENT OUT WITH ANOTHER RF. I
SCORED SOLICITATION FOR
ADDITIONAL PARTNERS AND IS
CURRENTLY EVALUATING MORE THAN
50 PROPOSALS THAT WERE RECEIVED
AS PART OF THAT PROCESS. ANY
ADDITIONAL PARTNERSHIPS
GENERATED WILL FURTHER REDUCE
THE AMOUNT THAT CALTRANS NEEDS
ULTIMATELY TO DEVELOP AND BUILD.
UM I'LL BE BRIEFLY REFERENCING
THE HANDOUT THAT I BELIEVE, UM
UH, THE ALTHOUGH THE MEMBERS
WERE PROVIDED WITH FROM èC Dð
Tð UM, FIRST OF ALL, WE HAVE AAA
TIMELINE. UM FOR THE FOR THE
PROJECT AND REFLECTS THE FACT
THAT, UH, AGAIN THAT THE FEDERAL
DEADLINES OF 2024 AND 2026 FOR
THE FEDERAL FUNDS, UM IT SHOWS
THAT èC Dð Tð IS AHEAD OF
SCHEDULE DUE TO EARLY STATE AND
FEDERAL PERMITS, STREAMLINING
MATERIALS PURCHASES AND THE
SIMULTANEOUS, UH, BIT
SOLICITATIONS, UH, FOR BOTH
CONSTRUCTION AND PARTNERSHIP
THAT MENTIONED PREVIOUSLY UM,
BECAUSE LEASES IN, UH, PURCHASES
ARE EXIST, UM, USE EXISTING
INFRASTRUCTURE. THESE AGREEMENTS
WILL ALLOW FOR POTENTIAL EARLY
ACTIVATION OF SOME SEGMENTS OF
THE NETWORK AS EARLY AS 2025 AND
2026. THIS ALSO SHOWS THAT THE
FUNDING REQUESTED IN THE BUDGET.
UH èC Dð Tð ANTICIPATES MEETING
THE DECEMBER 2026 COMPLETION
DEADLINE. THE NEXT PAGE. UM
PROVIDE SOME DETAIL ON THE
PARTNERSHIPS THE STATE IS USING
AND DEVELOPING THE NETWORK. UM
EARLY SOLICITATIONS ALLOWED
CALTRANS TO SIGN MASTER
AGREEMENTS FOR CONSTRUCTION OF
APPROXIMATELY 1800 MILES OF THE
NETWORK, AND CALTRANS IS
CURRENTLY MOVING TO COM, UH TO
CONSTRUCTION, UH, IN MORE THAN A
DOZEN LOCATIONS ACROSS THE STATE
, UM, AT A TOTAL OF FOR A TOTAL
OF 180 MILES THUS FAR. UH AS
I'VE NOTED, RF, I SQUARED
PARTNERSHIP SOLICITATIONS, UH,
THAT WERE DONE LAST YEAR, UM,
ALSO ALLOWED èC Dð Tð TO SECURE
10 PARTNERSHIPS FOR THE 6500
MILES I REFERENCED AND
CONSTRUCTION ON THESE SEGMENTS
BEGAN THIS PAST DECEMBER. UM YOU
CAN SEE HERE IN THIS, UH, IN
THIS HANDOUT THAT, UH, WE HAVE
AGREEMENTS FOR MORE THAN 3400
MILES OF LEASES. 2600 MILES OF
JOINT BUILDS AND 435 MILES, UH,
THAT WE'RE PURCHASING, AND THESE
PARTNERSHIPS ARE CURRENTLY UNDER
CONSTRUCTION AS WELL IN FIVE
LOCATIONS. TOTALING 106, MILES,
UH, WITH ANOTHER 670 MILES, UH,
STARTING CONSTRUCTION. UH, THIS
QUARTER. IF YOU GO TO THE NEXT
SLIDE, UH, WE CAN SEE HERE. UH
UH, THE IT REFLECTS THE èC Dð
Tð S¼ EXPENDITURE OF, UH OF
FUNDING FOR THE PROJECT OF THE
$3.5 BILLION APPROPRIATED TO
TODAY, UM TO èC Dð Tð, UM 2.9
BILLION, IS ALREADY UNDER
CONTRACT FOR JOINT BUILD AND
LEASE PARTNERSHIPS, EQUIPMENT
PURCHASES AND CALTRANS
CONSTRUCTION. AND èC Dð Tð, UH,
HAS ISSUED WORK AUTHORIZATIONS
FOR CALTRANS TO START, UM, THAT
THE 180 100 AND 80 MILES OF THE
NETWORK, UH, FROM THE 1800 MILES
IN THE MASTER AGREEMENT AND
EXPECTS TO HAVE PRECONSTRUCTION
COMPLETED AGAIN, UM, ON
VIRTUALLY ALL CONSTRUCTED
SEGMENTS BY THE END OF 2024. AND
THE NEXT PAGE, UM YOU SEE èC Dð
Tð REQUESTS $1.5 BILLION OVER
THE NEXT TWO YEARS, UH FOR, UH
TO FUND CONSTRUCTION OR
DEVELOPMENT OF THE FINAL 2200
MILES OF THE NETWORK. èC Dð Tð
S¼ CURRENT PLAN IS TO CONTINUE
MOVING TO CONSTRUCTION. UH, AS
SEGMENTS BECOME READY, UH, PER
CALTRANS ROLL OUT SCHEDULE FOR
THE FULL 4000 MILES, INCLUDING
BOTH THE 1800 MILES THAT ARE
CURRENTLY FUNDED IN THE 2200
MILES TO BE FUNDED FROM THE B
èC P. AT THE SAME TIME, èC Dð
Tð IS EVALUATING THE NEW RF. I
SQUARED PARTNERSHIP PROPOSALS.
UH, FOR ADDITIONAL PARTNERSHIPS,
UH, MENTIONED EARLIER AND SINCE
THESE OPPORTUNITIES ARE OFTEN
FASTER AND REDUCE STATE EXPENSES
BY SPLITTING THE COST OF
CONSTRUCTION WITH PRIVATE
PARTNERS. AND THEN THE FINAL
PAGE. UM REFLECTS THE FULL. UH
MMB. I UH, NETWORK, UH,
REFLECTED IN LIGHT BLUE ARE ALL
OF THE AREAS FOR WHICH F FA
GRANT APPLICATIONS WERE
SUBMITTED TO THE èC PU èC AS
PART OF THE 2021 BUDGET ACT THAT
FUNDED THAT BEGAN FUNDING THE
MMB. I UM UH, FUNDING WAS
PROVIDED TO THE, UH, PUBLIC
UTILITIES COMMISSION TO, UH TO
ISSUE GRANTS FOR LAST MILE
PROJECTS. AND SO, UH, WE'RE
WORKING CLOSELY WITH THE PUBLIC
UTILITIES COMMISSION TO MAKE
SURE THAT AS WE DEVELOPED A
NETWORK, WE'RE, UH WE'RE KEEPING
THOSE LOCATIONS IN MIND AND
MAKING SURE WE CAN TARGET THOSE.
UM THE ADMINISTRATION'S PRIORITY
REMAINS COMPLETION OF THE ENTIRE
NETWORK, AND, UH èC E Tð IS
CONTINUING ITS ANALYSIS OF THE
NETWORK TO DETERMINE WHICH
SEGMENTS ARE DEVELOPED BASED ON
THE AMOUNT OF FUNDING ULTIMATELY
PROVIDED BY THE LEGISLATURE AS
WELL AS, UH, CLOSURE OF ANY
NETWORK GAPS. UH, POTENTIAL
INCLUSION OF RF I SQUARED
PROPOSALS RECEIVED AND THE
LOCATION OF AREAS, UH, RECEIVING
THESE F FA GRANTS THAT I WAS
MENTIONING WITH THAT, UH, WE ARE
HAPPY TO ANSWER ANY QUESTIONS.
THE COMMITTEE MEMBERS MAY HAVE
THANK YOU VERY MUCH, MR MONROE,
L A Ó. THAT'S BRIAN METZGER,
LEGISLATIVE ANALYST'S OFFICE. UM
OUR OFFICE WAS ASKED BY THE SUB
COMMITTEE TO DISCUSS HOW THE
DEPARTMENT'S MIDDLE MILE NETWORK
PROPOSAL FITS WITHIN THE OVERALL
BROADBAND INFRASTRUCTURE PLAN
AND THEN TO PROVIDE OUR
ASSESSMENT OF AND
RECOMMENDATIONS ON THE PROPOSAL.
UM FIRST ON THE SPENDING PLAN,
THE CURRENT AND PLANNED
APPROPRIATIONS FOR THE THREE
MAJOR STATE BROADBAND
INFRASTRUCTURE PROGRAMS AND
PROJECTS, UM TOTAL $6.6 BILLION
OF THE 6.6 BILLION, ABOUT THREE
0.8 BILLION, WHICH IS ABOUT MORE
HALF OF THE TOTAL FUNDING IS
ALLOCATED FOR THE MIDDLE MILE
NETWORK. UM OF THE THREE 0.8
BILLION FOR THE MIDDLE MILE
NETWORK, AS WAS MENTIONED 2.4
BILLION IS FEDERAL FUNDING FROM
THE AMERICAN RESCUE PLAN AND 1.4
BILLION IS GENERAL FUND. UM AS
WAS ALSO MENTIONED FEDERAL FUNDS
DIFFER FROM THE GENERAL FUND
BECAUSE THEY ARE SUBJECT TO
SPECIFIC ENCUMBRANCE AND
EXPENDITURE DEADLINES. UM ALL
FEDERAL FUNDS MUST BE ENCUMBERED
BY THE END OF 2024 AND EXPENDED
BY THE END OF 2026 GENERAL FUND,
BY CONTRAST, IS NOT SUBJECT TO
THE SAME DEADLINES. OF THE 1.4
BILLION GENERAL FUND. 250
MILLION IS PLANNED FOR
APPROPRIATION IN 2425 CONSISTENT
WITH LEGISLATIVE INTENT LANGUAGE
THAT WAS ADOPTED AS PART OF THE
2220 THREE BUDGET ACT. THE
DEPARTMENT'S PROPOSAL, IF
APPROVED, WOULD ALLOCATE AN
ADDITIONAL 1.5 BILLION GENERAL
FUND ON TOP OF THAT, UH, 1.4
BILLION SECOND ON THE BROADBAND
INFRASTRUCTURE AGREEMENT ITSELF.
ONE OF THE PRIMARY PURPOSES OF
THE MIDDLE MILE NETWORK IS TO
PROVIDE THE NECESSARY
INFRASTRUCTURE FOR COMMUNITIES
AND HOUSEHOLDS TO, UH, MAKE LAST
MILE CONNECTIONS AND TO SECURE
HIGH SPEED INTERNET ACCESS. UM
FOR THE FEDERAL FUNDING ACCOUNT,
OR F FA APPLICATIONS FOR LAST
MILE PROJECT GRANTS ARE
CURRENTLY UNDER REVIEW BY THE
èC P èC èC PU èC IS
COORDINATING ITS REVIEW OF THESE
APPLICATIONS WITH èC Dð Tð TO
DETERMINE HOW THESE PLANNED
MIDDLE MILE NETWORK SEGMENTS DO
OR DO NOT ALIGN WITH THOSE
PROPOSED LAST MILE PROJECTS.
ACCORDING TO CPUC, APPROXIMATELY
370 OF THE 484 APPLICATIONS OR
ABOUT 70% OR 75% SORRY, UH,
MIGHT CONNECT TO THE STATE'S
MIDDLE MILE NETWORK. THIS NUMBER
SEEMS OPTIMISTIC. UM, BUT MORE
INFORMATION ON THE COMMISSION'S
ANALYSIS IS EXPECTED TO BE
PRESENTED IN COMING WEEKS.
ADDITIONAL LAST MILE PROJECT
GRANTS THROUGH THE FEDERAL
BROADBAND EQUITY ACCESS AND
DEPLOYMENT OR BE PROGRAM ARE
EXPECTED IN THE COMING COUPLE OF
YEARS, AND THE TOTAL AMOUNT OF
FUNDING FROM THAT PROGRAM IS
OVER 1.8 BILLION ADDITIONAL
FEDERAL DOLLARS. THIRD TO OUR
ASSESSMENT AND RECOMMENDATIONS
ON THE DEPARTMENT'S PROPOSAL. WE
FIND THAT THE PROPOSAL DERIVES
FROM AN APPROACH THAT WAS
PRESENTED BY THE DEPARTMENT IN
JULY OF LAST YEAR TO IMPLEMENT
THE MIDDLE MILE NETWORK IN TWO
PHASES. THE FIRST PHASE WOULD
HAVE IMPLEMENTED 8000 THREE 100
OF THE 10,000, NOW 10,500 MILES
OF THE MIDDLE MILE NETWORK,
USING THE 3.8 BILLION IN CURRENT
AND PLANNED APPROPRIATIONS. THE
SECOND PHASE WOULD HAVE
IMPLEMENTED 1700 OR NOW 2200 OF
THE MILES USING ALTERNATE
FUNDING SOURCES, INCLUDING
DESIGN EFFICIENCIES AND SAVINGS
FROM THE FIRST PHASE, AS WELL AS
LAST MILE PROJECT FUNDING FOR
MIDDLE MILE INFRASTRUCTURE THAT
WAS DEEMED ESSENTIAL FOR
CONNECTION. IN RESPONSE TO
NEGATIVE FEEDBACK FROM MEMBERS
AND STAKEHOLDERS, INCLUDING SOME
THAT WERE CONCERNED ABOUT
WHETHER THE MIDDLE MILE NETWORK
WOULD BE AVAILABLE FOR THEIR
LAST MILE PROJECTS. THE
DEPARTMENT CHANGED THAT APPROACH
AND COMMITTED TO PRESENTING THE
PROPOSAL THAT IS NOW BEFORE THE
LEGISLATURE. SINCE LAST YEAR,
HOWEVER, IT HAS BECOME CLEAR
THAT THE STATE IS FACING A
SERIOUS BUDGET PROBLEM IN 2425,
AS WELL AS SIGNIFICANT BUDGET
DEFICITS IN FUTURE FISCAL YEARS.
AND SO THE DEPARTMENT'S PROPOSAL
FOR AN ADDITIONAL 1.5 BILLION
GENERAL FUND FOR THE MIDDLE MILE
NETWORK IS NOT SUSTAINABLE UNDER
CURRENT REVENUE AND EXPENDITURE
PROJECTIONS. FURTHERMORE THE
PROPOSAL DOES NOT PROVIDE
CRITICAL INFORMATION FOR THE
LEGISLATURE TO OVERSEE ITS
IMPLEMENTATION. FOR EXAMPLE, THE
PROPOSAL WOULD FUND STAND ALONE
CALTRANS CONSTRUCTION PROJECTS
BUT DUE TO ONGOING
PRECONSTRUCTION WORK DOES NOT
IDENTIFY WHERE THOSE PROJECTS
WOULD BE, HOW MUCH EACH OF THEM
WOULD COST. IN WHAT ORDER THEY
WOULD BE CONSTRUCTED AND WHEN
THEY WOULD BE ACTIVATED. THIS
INFORMATION IS IMPORTANT FOR
LEGISLATIVE OVERSIGHT BECAUSE OF
THE FIRST COME, FIRST SERVED
APPROACH. èC Dð Tð EXPECTS TO
TAKE WITH THESE PROJECTS THAT IS
PRIMARILY FUNDING PROJECTS AS
THEY COMPLETE THEIR
PRECONSTRUCTION WORK, NOT
PRIMARILY BASED ON THEIR AVAIL.
FOR LAST MILE PROJECTS OR
OVERALL COHESION AND VIABILITY
OF THE NETWORK. OTHER CRITICAL
INFORMATION ABOUT THE NEED FOR
CALTRANS TO CONSTRUCT ALL OF
THESE MILES FROM THE R SQUARED
PROCESS ABOUT THE PROPOSED LAST
MILE PROJECTS THAT MIGHT CONNECT
TO THE MIDDLE MILE NETWORK AND
ABOUT THE PLAN TO MAINTAIN AND
OPERATE THE NETWORK GOING
FORWARD CAUTION AGAINST MOVING
FORWARD WITH ANY ADDITIONAL
FUNDING IN THE ABSENCE OF
LANGUAGE THAT REQUIRES ALL OF
THIS INFORMATION BE PRESENTED TO
THE LEGISLATURE. OUR
RECOMMENDATION TO THE
LEGISLATURE IS TO APPROVE THE
250 MILLION THAT WAS PLANNED TO
BE APPROPRIATED IN 2024 25, BUT
WITH LANGUAGE THAT REQUIRES THAT
DETAILED INFORMATION BE PROVIDED
ABOUT THE ADMINISTRATION'S
CURRENT AND FUTURE PLANS FOR THE
MIDDLE MILE NETWORK. HOWEVER WE
ALSO RECOMMEND THE LEGISLATURE
REJECT THE DEPARTMENT'S PROPOSAL
FOR AN ADDITIONAL 1.5 BILLION
GENERAL FUND. THE FISCAL
PRESSURE FACING THE STATE DOES
NOT SUPPORT A GENERAL FUND
INVESTMENT OF THIS MAGNITUDE,
PARTICULARLY GIVEN THE
SIGNIFICANT NUMBER OF CAN STILL
BE DELIVERED AND THE POSSIBILITY
OF ALTERNATIVE FUNDING SOURCES
THAT MAY BE AVAILABLE FOR LAST
MILE CONNECTIONS THAT ARE DEEMED
ESSENTIAL AND MORE INFORMATION
ABOUT THESE ALTERNATE FUNDING
SOURCES COULD BE INCLUDED IN
THAT POTENTIAL LANGUAGE HAVE
BEEN TO ANSWER QUESTIONS. THANK
YOU FOR THAT DEPARTMENT OF
FINANCE. COURTNEY MASSINGALE,
THE DEPARTMENT OF FINANCE. UM
THIS PROPOSAL IS ESSENTIAL TO
THE COMPLETION OF THE MIDDLE
MILE BROADBAND NETWORK AND, IF
NOT FULLY FUNDED, DIFFICULT
DECISIONS WILL NEED TO BE MADE
ON WHICH SECTIONS OF THE NETWORK
ARE NOT CONSTRUCTED. THANK YOU.
THANK YOU. AND WITH THAT WILL
BRING IT TO THE COMMITTEE AND
JUST TO SORT OF PLAY OFF. BOTH.
THE INFORMATION AND COMMENTS ARE
PROVIDED BY BOTH THE LAL THE Dð
Ó F. WHAT ADDITIONAL DETAIL CAN
YOU PROVIDE? SORT OF ON THE
INTERNAL CONSTRUCT THAT YOU'VE
CREATED AT THE DEPARTMENT TO
IDENTIFY AND PRIORITIZE EITHER
IN TO GO INTO THE PRE
CONSTRUCTION PHASE BASED UPON
DEMAND AND NEED RANKING THE
HIGHEST NEED TO THE LOWEST NEED
AND MODERATE NEED AND LINKING
THAT UP, AND WHAT IS THE
INTERNAL FOR CREATING SORT OF A
STRATEGIC APPROACH. UH, IF WE'RE
CONSTRAINED TO WHERE WE ADDRESS
THE MOST NEED, AND HOW DO YOU
RECONCILE THAT? WITH THE OBVIOUS
ENGINEERING AND PHYSICAL èC. I
KIND OF DEMANDS THAT THE NATURE
OF THIS INFRASTRUCTURE IS
CONSTRUCTED IN THE FIRST PLACE,
WHICH OFTEN RESULTS IN SOMETHING
THAT'S EITHER OUT OF
PRECONSTRUCTION OR PHYSICALLY
MORE PROJECT READY THAN SOME
OTHER SEGMENT OF THE NETWORK.
AND SO, THEREFORE, THAT GOES
FIRST, BUT THAT FIRST SEGMENT
MAY OR MAY NOT BE STRATEGICALLY,
MOST CRITICAL. SO WHAT IS WHAT
IS THE INTERNAL PROCESS? BY
WHICH WE ARE RANKING THAT. AND
HOW ARE WE COORDINATING? FOR
EXAMPLE? I KNOW. ANOTHER GOOD
POINT THAT STAFF HAD POINTED OUT
HERE FOR ME WAS, YOU KNOW
THERE'S A LOT OF APPLICATIONS AT
PU èC FOR FINAL MILE. UH YOU
KNOW, THAT HAS TO BE CO
ORDINATED. YOU REFERENCED IT
INDIRECTLY IN YOUR TESTIMONY, SO
A LITTLE BIT MORE UNDERSTANDING
OF HOW YOU'VE CREATED THIS
INTERNAL PROCESS. AND WHAT ARE
THE CONSIDERATIONS THAT YOU'RE
USING TO STRATEGICALLY RANK
THESE PRIORITIES? UH AND HOW ARE
YOU ACCOMPLISHING THAT? YEAH,
SURE. UH, NÓ. THANK YOU FOR THE
QUESTION. SO UM, IN TERMS OF HOW
WE'RE PRIORITIZING, UM THE, UH
AS AS AS HAS BEEN NOTED, UM OUR
OUR CURRENT PLAN IS TO BUILD A
FULL 10,000 MILES AND THEREFORE
KIND OF AS AS SECTIONS BECOME
READY. UM, MOVING THAT FORWARD,
BUT, UM, WE NEED TO MAKE SURE
THAT NÓ SECTIONS ARE STRANDED
AND THAT YOU KNOW THAT OBVIOUSLY
IS, YOU KNOW SOMETHING THAT THAT
CAN'T HAPPEN. IF IT'S NOT
CONNECTED, THEN THAT DOESN'T
WORK. AND SO, UM, SO THAT KIND
OF GOES WITHOUT SAYING, UM, BUT
THEN THE OTHER, UH, IN TERMS OF
PRIORITIZING AT THIS POINT, UM,
WE'RE LOOKING AT THE, UH AT
THOSE F FA GRANT, UH, LOCATIONS
AND SO, UM, I THINK THE
COMMITTEE IS AWARE THAT, UH, THE
PUBLIC UTILITIES COMMISSION, UM
RECEIVED ALMOST 500 GRANT
APPLICATIONS THAT THEY'RE
CURRENTLY REVIEWING. UM AND UH,
AND A THE PU èC HAD INDICATED
IN FEBRUARY THAT OF THOSE, AT
LEAST 90 THREE HAD INDICATED A
PLAN TO CONNECT TO THE NETWORK.
SO UM, IN TERMS OF PRIORITIZING,
UM THE I WOULD ARGUE THAT THAT
THAT OR OR OR PROCESS REALLY IS
TO TARGET THOSE 93 TO BE ABLE TO
MAKE SURE THAT AT A MINIMUM, WE
PROVIDE SUPPORT TO THOSE AND
THAT'S A IT'S A IT'S A BIG
IMPORTANT OF WHY WE NEED TO
BUILD A FULL 10,000 IS THAT, UM
AS L, A Ó MENTIONED IT'S NOT
JUST THE $2 BILLION IN, UM F FA
GRANTS AT THE PU èC IS
ALLOCATING. BUT UM, ANOTHER 1.86
BILLION THAT WILL BE COMING FROM
BEAD. UM AND, UH FROM THE
FEDERAL DE PROGRAM AND FOR LAST
MILE. APPLICANTS ARE REALLY
IMPORTANT TO REALLY IMPORTANT
PIECE OF THE PUZZLE FOR THEM IS
HOW DO THEY THEY CAN GO AHEAD
AND, YOU KNOW, GET FUNDING TO
BUILD THEIR LAST MILE. WHERE DO
THEY CONNECT TO MIDDLE MILE? AND
SO, UM, THE STATE'S MIDDLE MILE
PROVIDES THAT ANSWER. UH, IT IT
DOESN'T I IT ACTUALLY SUPPORTS
THE STATE GETTING MORE OF THOSE,
UH OR A LOT OF LAST MILE PRO,
UH, PROJECTS BEING FUNDED AND
RECEIVING GRANT FUNDING BECAUSE
THERE IS A MIDDLE MILE TO
CONNECT TO THE ONLY THING I ALSO
I'D LIKE TO ADD IS, UM, IN
ADDITION IS AS THIS NETWORK GOES
INTO OPERATIONS. IT'S VERY
IMPORTANT THAT IT'S RESILIENT.
SO IF A FIBER GETS CUT THAT
THESE COMMUNITIES THAT ARE
RELIANT UPON THE NETWORK THAT WE
ARE ALSO BUILDING RESILIENCY
INTO THIS LONG HAUL NETWORK AND
GETTING AS CLOSE TO THOSE F FA
AND THOSE HOUSEHOLDS BECAUSE
WHAT THE MIDDLE MODEL DOES IS,
IT CONNECTS BOTH COMMUNITIES AND
HOUSEHOLDS TO THE INTERNET, SO
THE CLOSER THAT WE CAN GET TO
THOSE COMMUNITIES OF NEED THE
LESS THAT, UM YOU KNOW, THE HAVE
TO BE SPENT ON F FA AND MORE
HOUSEHOLDS CAN ACTUALLY BE
CONNECTED TO BE ABLE TO PROVIDE
MORE, UM, CONNECTIVITY TO ALL
CALIFORNIANS THAT NEED
BROADBAND. JUST WANTED TO ADD
THAT THAT'S A PART OF THE
PRIORITIZATION HELPFUL. I
APPRECIATE IT. IT SORT OF
BROADENING A LITTLE BIT. I ALSO
NOTE UM IT APPEARS THAT WHEN WE
EMBARKED ON THE INITIAL
PROGRAMMING FOR THE INITIATIVE,
THERE WERE ESTIMATES GIVEN BY
THE DEPARTMENT ABOUT THE TOTAL.
THE TOTAL NUMBER OF MILES WE'RE
TALKING ABOUT, AND THAT'S BEEN
ADJUSTED UPWARD. UH AND IF YOU
COULD CLARIFY, IS THAT WAS THAT
JUST SORT OF A TRUE UP? UH, POST
SORT OF IMPLEMENT, YOU KNOW,
POST GETTING UNDERWAY FOR LACK
OF A BETTER TERM, OR WERE THERE
ADDITIONAL FACTORS INFORMATION,
NEW CONSIDERATIONS, POLICY
CONSIDERATIONS THAT CHANGED THE
CHANGED THE TOTAL MILES, SO IT
TOOK IT FROM 10,000 TO 10,500.
INITIALLY WHEN THE PROPOSAL WAS
PUT TOGETHER, I THINK THE P
PUBLIC UTILITIES COMMISSION
ESTIMATED ABOUT 8000 MILES, ALL
RIGHT, JUST TO LINK UP THOSE
UNSERVED COMMUNITIES THAT THEY
IDENTIFIED. THEY WENT THROUGH A
ROBUST PUBLIC PROCESS. AND UM,
UH, TO, REALLY TO REFINE THAT
AND TO REALLY TRUE UP WHERE
THOSE LOCATIONS WERE, UM, BUT
THEN THE OTHER SIDE OF THAT IS
THE RESILIENCE THAT THE DIRECTOR
SPOKE OF, UM, BECAUSE, UH, YOU
KNOW THE SOME PEOPLE MAY SOME OF
THEM MAY BE FAMILIAR WITH THE
WAY YOU KNOW. BROADER TELEPHONE
WORKS, RIGHT? UH, IF A LINE IS
CUT, YOU WANT MORE THAN ONE LINE
SERVING AREAS, RIGHT? SO IF IS
CUT. PEOPLE DON'T LOSE SERVICE.
THE SAME APPLIES TO THIS, UH TO
THE TO THE BROADBAND NETWORK.
AND SO THAT WAS ALSO A LARGE
COMPONENT OF, UH, OF WHERE WE
ENDED UP IN THE FINAL MAP IS
BUILDING IN THAT RESILIENCY, UH,
TO MAKE SURE THAT, UH, THE
SYSTEM IS RELIABLE FOR
EVERYBODY. SO THERE IS TWO FOLD.
ONE IS THE NEED. WHEN WE WENT
OUT WITH THE MAPS THE 8100 WHEN
WE WENT THROUGH PUBLIC COMMENT
THROUGH THE èC PU èC, THE NEED
ACROSS ALL CALIFORNIA WAS
GREATER AS WE STARTED LOOKING AT
THESE UNSERVED COMMUNITIES, SO
IT WENT FROM 8100 TO 10,000. AND
THEN WHEN WE STARTED GOING, YOU
KNOW, FEET ON GROUND AND
ENGINEERING. WE REALIZED THAT AS
YOU DIALED IN, YOU COULDN'T
ACTUALLY GO THROUGH LALAAX SEE
HOW TO GO AROUND LAX. SO UM, YOU
KNOW, FOR GOOD REASONS, BUT AS
YOU WERE TRYING TO ADD UP THE
MILES AND MILES CONTINUE TO GO
UP A LITTLE BIT, AND WE'RE AT
THE 10,550 REMIND ME EXACTLY
10,564. THANK YOU. UM, BUT THAT
AS IT WAS MORE ABOUT THE
ENGINEERING ON THE GROUND, WE
NEEDED TO MAKE SURE THAT THERE
WAS SOME OF THAT, UM, BEING
ACCOUNTED FOR. I THINK IT'LL
BRING IT TO THE COMMITTEE.
SENATOR SMALL B¢O CUEVAS. THANK
YOU, MR CHAIR. AND, UM, I'M I'M
FEELING A LITTLE CONFUSED. UM
ABOUT KIND OF THE BASICS OF US.
NOT UNDERSTANDING THE WHAT? WHEN
AND WHERE. PIECE OF THIS, UM
WHEN I READ THIS ARTICLE THAT
CAME OUT IN THE L A TIMES THAT
HAD MY COMMUNITY FRONT AND
CENTER. LAST MONTH, THE NEWSOM
ADMINISTRATION CUT PROJECTS IN
SOME OF THE NEEDIEST, MOST
DISCONNECTED COMMUNITIES IN THE
STATE, INCLUDING SOUTH AND
SOUTHEAST LOS ANGELES AND EAST
OAKLAND, WHILE ADDING PROJECTS
IN SOME OF THE MOST AFFLUENT
TECH CONNECTED COMMUNITIES,
INCLUDING BEVERLY HILLS AND
CULVER CITY. WHEN THIS ARTICLE
CAME OUT ON SEPTEMBER 8TH OF
2020 THREE THERE WAS A MEETING
CALLED WITH THOSE WHO WERE
IMPACTED AND YOU SEE THIS CHILD
WHO IS SITTING IN FRONT OF THE
YM èC, A ON CRENSHAW BOULEVARD
DOING THEIR HOMEWORK. THIS IS A
INTERNET HOMEWORK HOTSPOT. UM,
BECAUSE THERE ARE HUGE SWATHS OF
SOUTH L A AND SOUTHEAST L A THAT
DON'T HAVE INTERNET AND, UM,
WHEN THIS CAME OUT, THERE WAS A
MEETING CALLED TO EXPLAIN. HOW
THE COMMUNITIES THAT WERE PART
OF THE MANDATE FOR DIGITAL
EQUITY. UH, WERE LIFTED UP AT
THE BEGINNING OF THE MIDDLE MILE
INVESTMENTS AND THEN AT THE END
OF THE RESOURCES LAST YEAR, THEY
WERE STILL LEFT. UNCONNECTED.
THE COMMITMENT WAS THAT WE WOULD
BE HAVE NEW MAPS. IT WOULD BE
VERY CLEAR THAT THESE
COMMUNITIES WOULD BE TAKEN CARE
OF, UM, IN THIS FUNDING, WHICH
I'M ASSUMING IS THE 1.4 BILLION
WE'RE TALKING ABOUT. UM, CAN YOU
CLARIFY? ARE YOU SAYING YOU
DON'T KNOW IF THESE COMMUNITIES
ARE GOING TO BE INCLUDED. ARE
YOU SAYING THAT THERE HAS NOT
BEEN A PRIORITIZATION AFTER OUR
CONVERSATIONS WITH THE
ADMINISTRATION ABOUT THIS THAT
WE DON'T KNOW IF THE COMMUNITY
THAT WAS LAID OUT IN THE L A
TIMES. AND ALSO I WANT TO ADD
THAT CULVER CITY IS ALSO IN MY
DISTRICT, SO THIS ALSO WAS
PITTING MY DISTRICT AGAINST EACH
OTHER OVER INTERNET SERVICE AND
CERTAINLY COVER CITY IS PART OF
THE RESILIENCY, SO THEY ALREADY
HAD CONNECTION. BUT THOSE WHO
HAVE NOTHING STILL HAVE NOTHING.
SO I NEED YOU TO EXPLAIN TO ME
WHETHER THESE COMMUNITIES ARE
INCLUDED IN THIS 1.4. BECAUSE
I'M NOT UNDERSTANDING WHY WE
DON'T HAVE THE BASICS OF THE
WHERE. WHEN AND WHO IT'S SO, UM,
TWO FOLD SO FIRST, UM, THERE
WERE I SO THE ADMINISTRATION IS
COMMITTED TO THE FULL 10,000
MILES, AND THAT IS INCLUDING ALL
OF THE INTERSECTIONS THAT WE
HAVE ALWAYS SHOWN ON THE MAP
THROUGH THE L, A DISTRICTS IN
CULVER CITY AND THE GATEWAY
CITIES. THERE WAS A MISTAKE. UM
WHEN WE PUBLISHED A MAP, AND WE
PUBLICLY MADE THAT AVAILABLE
THAT WE HAD MISTAKENLY PUT OUT
ON THE WEBSITE, JUST THE, UM THE
ALTERNATIVE DELIVERY, WHICH IS
LIKE THE LEASING AND ALL THE
CONSTRUCTION FOR CALTRANS WAS
UH, INADVERTENTLY REMOVED BY
ACCIDENT WITHIN 24 HOURS. WE HAD
THAT CORRECTED, SO IT IS
ACCURATE ON THE WEBSITE. SO THE
L A AREA THAT WE'VE ALWAYS SHOWN
THAT WE HAVE. THE INTERSECTIONS
IS WHAT WHAT IS ON THE MAP, AND
THAT WAS SHARED WITH YOU, UM,
WITH YOUR HAND OFF. CAN YOU TELL
ME IF SOUTH AND SOUTHEAST LOS
ANGELES AND EAST OAKLAND. I NEED
YOU TO TELL ME I THERE'S A HUGE
THIS MAP IS SORT OF
UNINTELLIGIBLE RIGHT IN TERMS OF
GEOGRAPHY. I'M TRYING TO
UNDERSTAND. ARE YOU SAYING THESE
COMMUNITIES ARE PRIORITIZED IN
THE $1.4 BILLION, ASK THAT THEY
ARE TO RESTORE AND WHEN, WHEN
WILL THOSE PROJECTS? WHEN WILL
THAT BE DONE? SO CALTRANS? IT
WILL HAVE ALL 4000 MILES OF WHAT
THEY'RE SUPPOSED TO CONSTRUCT,
ACTUALLY DONE WITH PREP PLANNING
BY DECEMBER, AS THOSE AREAS ARE,
THE PERMITTING IS READY. WE ARE
WORKING WITH CALTRANS TO HAVE
THEM ISSUE THE WORK
AUTHORIZATIONS TO GO AHEAD AND
WE HAVE THE CONSTRUCTION CREWS.
ALREADY ONCE THE PERMITTING IS
DONE, THEY WILL START THAT WORK.
IN ADDITION, WE ARE TALKING TO
LIKE, UM THE L, A CITY OF BUREAU
, CITY OF LIGHTING AND OTHERS
COMMUNITIES THAT WANT TO DO
JOINT GOVERNMENT TO GOVERNMENT
PARTNERSHIPS WITH US, UM, THAT
WOULD ALLOW US TO SHARE COST SO
THIS L A AREA IS A PRIORITY, AS
IS THE OTHER RURAL COMMUNITIES
ON THE, UM OTHER URBAN AREAS ON
THE MAP. AND SO IN, UH, IN TERMS
OF UNDERSTANDING THE
TRANSPARENCY BECAUSE I STILL I
I'M HEARING THE THAT THESE AREAS
WILL BE INCLUDED. IS THERE A MAP
THAT SHOWS US? UM AS CALTRANS IS
REQUESTING THESE ADDITIONAL
DOLLARS SORT OF A TIMELINE ON
WHAT OF THE AREAS ARE
PRIORITIZED, AND WE CAN GET THE
DETAILS OF WHEN THOSE PROJECTS
ARE ESTIMATED TO BE CONNECTED.
WE CAN WE HAVE THAT INFORMATION
READILY AVAILABLE NOT HERE TODAY
, BUT WE CAN GET THAT FOR YOU BY
DISTRICT OF WHEN THE PREP
PLANNING IS EXPECTED TO BE
COMPLETED, WHICH THEN IN TURN,
WILL THEN AUTOMATICALLY GO INTO
CONSTRUCTION. IF THE ADDITIONAL
1.5 BILLION IS RECEIVED. AND AS
YOU SPOKE ABOUT SORT OF THE
TENSION, AND I'M GOING TO SAY
TENSION BETWEEN NEW
INFRASTRUCTURE AND RESILIENCY,
UM IN THE FIRST GO ROUND WHEN WE
THE EFFORT WAS AROUND THE
DIGITAL EQUITY PIECE, AND IT WAS
EXPLAINED THAT IT IS MORE
FISCALLY, UM EFFICIENT OR
EXPEDIENT TO INVEST IN THOSE
COMMUNITIES THAT ALREADY HAVE
SOME LEVEL OF INFRASTRUCTURE TO
SORT OF ADDRESS RESILIENCY AND
THEN TO GO TO THOSE COMMUNITIES
THAT HAVE NOTHING, UH, TO BUILD
AND PART OF HOW THE DECISIONS
GET MADE IS MORE AROUND, NOT THE
EQUITY CONVERSATION, BUT MORE
AROUND. WHAT IS MOST EXPEDIENT,
UM, IN TERMS OF WHAT'S ALREADY
THERE AND INFRASTRUCTURE IN THE
REQUEST FOR NÓ FUNDING. I WANT
TO UNDERSTAND WHAT IS THE WAY
THAT, UM YOUR DEPARTMENT WILL
HOLD ON. BECAUSE WE LOST THE
EQUITY SOMEWHERE. WE GOT LOST.
WE STARTED ON EQUITY, BUT WE
ENDED UP WITH WHAT'S FISCALLY
EXPEDIENT AND WHAT MAKES SORT OF
THE I WANT TO SAY, AND I'M GOING
TO JUST SAY TECHNOCRATIC SENSE
TO GO FORWARD VERSUS THE HUMAN
SUFFERING AND THE EQUITY THAT
WE'RE TRYING TO ADDRESS. AND
WHEN YOU DO THAT THERE'S NÓ
MONEY LEFT. TO GET TO THE EQUITY
AND THE HUMAN ME THAT YOU'RE
TRYING TO ADDRESS. SO MY
QUESTION IS. HOW DO ARE YOU
WORKING WITH THE RACIAL EQUITY
COMMISSION? ARE YOU WHO WHO ARE
YOU WORKING WITH? TO ENSURE THAT
AS WE, UM IN THIS VERY DIFFICULT
FISCAL MOMENT, UM, WHEN WE ARE
MAKING HARD DECISIONS ABOUT, YOU
KNOW WHETHER WE'RE GONNA FUND
HOMELESSNESS OR OR HEALTH CARE.
UM, WHAT WAY ARE YOU? UM
COMMITTING TO THE LEGISLATURE.
THE EQUITY WILL BE FRONT AND
CENTER IN THIS NEXT ROUND, SO
THAT WE DON'T HAVE ANOTHER L A
TIMES OP ED THAT HAS OUR
CHILDREN STILL SITTING OUTSIDE
OF A Y TRYING TO DO THEIR
HOMEWORK BECAUSE FOR SOME
REASON, WE MADE A MISTAKE AND HE
DIDN'T HOLD THEM. CENTER THROUGH
THE PROCESS. SO UM, I'D LOVE TO
ANSWER BOTH PARTS OF THOSE THAT
THAT, UH, QUESTION SO FIRST
EQUITY REMAINS CENTER TO WHAT
WE'RE DOING, NOT IN ADDITION TO
ONLY MIDDLE MILE BUILDING THAT
MIDDLE MILE, WE ALSO ARE
RESPONSIBLE FOR BUILDING THE
STATE DIGITAL EQUITY PLAN AND
GIVING GRANTS AND MAKING SURE
THAT WE'RE HERE AT ACHIEVING AND
OVERCOMING THE BARRIERS THAT, UM
TO DIGITAL EQUITY. WHAT WE'VE
ALWAYS LOOKED AT IS, UM
CONSTRUCTION AND THE ALTERNATIVE
DELIVERY METHOD, LIKE LEASING
ARE BOTH PRIORITIES IS JUST IF
THERE'S ALREADY CONDUIT IN THE
IN THE GROUND. WE DON'T HAVE TO
DIG. WE DON'T HAVE TO DO
CONSTRUCTION. THAT'S UH, THAT
TAKES TIME. SO WE INVEST IN BOTH
CONSTRUCTION AND IN LEASING AND
JOINT BILLS WHERE WE CAN
ACTUALLY GET CONDUIT THROUGH ONE
AREA TO GET IT TO AN AREA LIKE
EAST L A OR AN AREA THAT FASTER,
SO WE'RE USING EXISTING
INFRASTRUCTURE TO GET TO THOSE
AREAS TO PROVIDE EQUITY. IT'S
NOT IN LIEU OF IT'S A WAY OF
GETTING THINGS THERE FASTER. SO
THAT'S ONE PIECE OF IT. WE ARE
WORKING WITH, UM, INCREASING A
LOT OF OUR STAKEHOLDER
ENGAGEMENT. SO UH, WE ARE
WORKING WITH A LOT OF THE, UM,
THE OAKLAND UNDIVIDED ADVOCACY
GROUPS. L A, UH, DEAL THE
DIFFERENT GROUPS THAT, UH, WE
ARE LOOKING EVERY MONTH. WE HAVE
DIFFERENT OUTREACH EFFORTS AND
TALKING TO LOCAL COMMUNITIES NOT
ONLY UNDERSTANDING THEIR NEEDS
BOTH ON THE EQUITY PLAN, BUT
UNDERSTANDING THEIR NEEDS IN
RELATION TO WHERE, UH, THE
BROADBAND NETWORK. NEEDS TO BE
CONNECTED. SO WE HAD BETWEEN
JANUARY AND NOW AND MARCH WE HAD
OVER 40 STAKEHOLDER ENGAGEMENTS.
UM AND SO NOT ONLY ARE WE
MEETING WITH INDIVIDUALS FACE TO
FACE WE'RE ALSO COMMITTED TO
TRANSPARENCY. SO ONCE A MONTH
THE LAST MONTH OF EVERY MONTH,
WE MAKE SURE THAT THE MAPS ARE
COMPLETELY UP TO DATE SO PEOPLE
CAN SEE WHERE WE ARE GOING. AND
IF THERE'S BEEN ANY CHANGES THAT
IT'S VERY TRANSPARENT AS IF
THERE WAS A CHANGE BECAUSE WE
HAD TO GO AROUND LAX THAT PEOPLE
ARE AWARE OF THAT. THEY CAN
COMMENT AND THEY CAN COME TO OUR
DURING A VIRUS ADVISORY
COMMITTEES OR MEET WITH US IN A
ONE ON ONE STAKEHOLDER. UM,
OPPORTUNITY. I DON'T KNOW IF
MARK YOU HAVE ANYTHING ELSE YOU
WANT TO ADD TO THAT? YEAH NÓ. I
APPRECIATE THAT, AND I'LL JUST
HIGHLIGHT TO THAT, UM, THE
MIDDLE MILE IS, UM, YOU KNOW,
IT'S IN PARTNER. AS THE DIRECTOR
OF NOTED, IT'S REALLY IN
PARTNERSHIP WITH THE LAST MILE
AND A LOT OF THE OTHER EFFORTS.
AND SO, UM, BECAUSE, UH, SPEAK
BECAUSE OF THE EFFORT OF THE
PUBLIC UTILITIES COMMISSION AND
HOW THEY ARE ALLOCATING THE F FA
GRANTS BY TARGETING THOSE THAT
ALSO IT'S AN IMPORTANT
PARTNERSHIP FOR MEETING THOSE
GOALS. WELL, I KNOW THE CITY OF
L A, UM UH, AND THEIR
APPLICATIONS, AND I APPRECIATE
THE ADMINISTRATION BEING IN
COMMUNICATION SO THAT WE DIDN'T
MISS OUT ON THE LAST MILE
BECAUSE SOME OF OUR MIDDLE MILE
INFRASTRUCTURE WE WERE SKIPPED
OVER IN THE FIRST ROUND. SO I'M
APPRECIATING THAT UM, THAT THOSE
CONVERSATIONS ARE HAPPENING, I,
I THINK, UM, WOULD LOVE TO WORK
MORE WITH YOU ON HOW WE SHARE
THE UPDATES IN REAL TIME AND
ENSURE THAT WE WORK TOGETHER IN
THIS PROCESS SO THAT WE DON'T
HAVE A SITUATION WHERE THE
REASON WE STARTED AN INITIATIVE
DURING COVID I THOSE TWO BABIES
OUTSIDE OF MCDONALD'S NOT ABLE
TO GET THEIR HOMEWORK AND DO
THEIR CLASS WORK BECAUSE THEY
DIDN'T HAVE INTERNET AT HOME. WE
HAD MADE THIS INVESTMENT THIS
WAS ABOUT EQUITY. AND THEN WHEN
THE MONEY WAS ALL SAID, AND
DONE, THEY WERE STILL OUTSIDE.
UM I WANT US TO WORK TOGETHER TO
MAKE SURE IN THIS TIME OF VERY
PRECIOUS RESOURCES THAT, UM WE
HOLD ON TO THEM AND ENSURE THAT
WE ARE ARE ARE BRINGING THOSE
COMMUNITIES, UM IN CONNECTION
AND UM, I APPRECIATING, UM YOU
KNOW THE UPDATE, UH, FROM THE L
A Ó IN TERMS OF WHAT MISSING
INFORMATION. WE HAVE TO BE ABLE
TO MAKE THE DECISIONS THAT WE
HAVE TO MAKE IN THIS REALLY
DIFFICULT, UM, TIME. SO, UM I'M
APPRECIATING A REPORT. I AM
STILL DEEPLY CONCERNED, AND IT
SEEMS WE STILL HAVE SOME WORK TO
DO. VERY MUCH, SENATOR AND JUST
TO, YOU KNOW, I THINK PROFFERING
TO THE COMMITTEE STAFF THAT
ADDITIONAL DETAIL AND ALSO BASED
ON THE L OS INPUT, WHICH I THINK
IS EXTREMELY HELPFUL. A DETAILED
BREAKDOWN OF PROGRAM STRUCTURE
AND TIMELINES AS IT EXISTS,
FUNDED OR UNFUNDED. IS HELPFUL
AND WHAT THAT MAY LOOK LIKE, UH,
BECAUSE OBVIOUSLY THERE'S SOME
COMPETING SETS OF DATA HERE AND
THERE'S NÓ WAY FOR US TO MAKE AN
INDEPENDENT DETERMINATION ABOUT
WHAT THE ACCURACY IS OR ISN'T
AND I THINK IT'S IMPORTANT TO
GET THAT INFORMATION SO IT WOULD
BE VERY HELPFUL. AND THANK YOU
FOR THAT, SENATOR NELA THANK YOU
, MR CHAIR. UM THIS PROJECT IS A
VERY IMPORTANT PROJECT FOR THE
STATE. UH, THERE'S NÓ DOUBT
ABOUT THAT. UH AND, UH, WHAT
WE'RE DECIDING HERE ISN'T
NECESSARILY WHETHER WE'RE DOING
IT. BUT MAYBE TIMING BECAUSE OF,
UH UH SIGNIFICANT BUDGET, UH,
CHALLENGES. SO A QUESTION OF
BOTH THE DEPARTMENT OF FINANCE
AND L Ó. UH WHAT IS THE
CONSEQUENCE OF THE LAO'S
RECOMMENDATION OF, UH, TAKING
THE 1ST 250 MILLION, WHICH IS IN
THE BUDGET, BUT BUT NOT THE REST
OF IT. THAT DOESN'T MEAN IT'S
NOT GOING TO BE DONE. IT JUST
MEANS WE DON'T HAVE THE MONEY
RIGHT NOW. SO UM, GIVE ME AN
IDEA OF WHAT YOU THINK THE
CONSEQUENCE IS BOTH SURE SO TO
ADDRESS THE FIRST PART WHERE IF
IT'S NOT SO TO BE CLEAR YOU'RE
TALKING ABOUT THE 250 MILLION
THAT THE LE Ó IS RECOMMENDING,
AND NOT THE REMAINDER OF THE
PROPOSAL. CORRECT. I'M I'M I'M,
UH, ASKING ABOUT THE ENTIRETY OF
THE L A Ó S¼ RECOMMENDATION,
WHICH INCLUDES, UH UH NOT
APPROVING, UH, 250 MILLION AND,
UH, THE 1.25 BILLION, UH, FOR
THIS BUDGET YEAR? SURE SO A
LARGE PORTION OF THE CONTRACTS
NEED TO BE COMPLETED OR
CONSTRUCTED OR BEGINNING
CONSTRUCTION BY 2026. SO IF THIS
FUNDING IS DELAYED, IT WILL BE A
LOT MORE COSTLY, WHICH, IF
ADDITIONAL IS NOT GIVEN AND
DIFFICULT DECISIONS WILL WE WILL
NEED TO BE MADE BASED ON WHICH
AREAS MAY NOT RECEIVE BROADBAND,
GIVEN THE AVAILABILITY OF
FUNDING. AND THAT WOULD BE THE,
UH, SORT OF DEADLINE. UH, OF
THAT IS Tð THE, UH, BUDGET YEAR
2026 OR CALENDAR YEAR 2026. UH,
I BUDGET YEAR. 2025 26, RIGHT?
UM, BECAUSE, UH, FOR THE NEXT
BUDGET YEAR AFTER THE ONE WE'RE
ADDRESSING NOW CORRECT THE ONE
THE ONE WHERE THE $1.25 BILLION
IS BEING REQUESTED, AND THAT
AGAIN IS SO THAT WE CAN START
CONSTRUCTION PRIOR TO, UH, THE
EXPIRATION OF THOSE CONTRACTS.
UH, WHICH, UH, EXPIRE IN MARCH
OF 2026. AND THE IMPACT WOULD BE
, UM, A PRE PLANNING WOULD BE
COMPLETED, IT'D BE 2200 MILES
WOULD NOT BE CONSTRUCTED AND WE
WOULD HAVE TO MAKE DIFFICULT
DECISIONS ON WHERE THE REMAINDER
OF THE MILES THAT WE ARE. UM THE
8300 MILES AND 6500 OF THOSE
ALREADY LOCKED IN, SO THE 1.5
BILLION IS TO CONSTRUCT AND DO
THE FULL 10,000 MILES WITHOUT
IT. THERE'S 2200 MILES THAT ARE
NOT GOING TO BE BUILT. IN THE
NEXT TWO YEARS. IN THE NEXT TWO
YEARS, BUT NOT NEVER CORRECT.
SENATE. BUT UH, I'M CHECK
SENATOR NEIL DANIEL BRANDON OF
THE DEPARTMENT DEPARTMENT OF
FINANCE. I DID WANT TO ADD THAT
UNDERSTANDING THAT IF THE
FUNDING ISN'T PROVIDED IN THE
COMING YEAR, AND THE BUDGET YEAR
THAT THE CONTRACT WILL HAVE TO
BE RENEGOTIATED, AND THAT'S
WHERE THE COSTS INCREASE. AND SO
AS FAR AS THE TIMING GOES, YES
FUNDING COULD BE APPROPRIATED AT
A LATER DATE, BUT TO WHAT COST?
WE ARE UNAWARE OF AT THIS TIME
AND AT WHAT DELAY AND HOW LONG
UNTIL INDIVIDUALS ARE CONNECTED
TO THE BROADBAND. THAT'S GREAT L
A Ó. SO UH, WE AGREE WITH THE
DEPARTMENT OF FINANCE AND èC Dð
Tð THAT THERE WOULD BE A FEWER
NUMBER OF MILES THAT WOULD BE
CONSTRUCTED. THE UM MIDDLE MILE
NETWORK WOULD BE ABOUT 8300
MILES. UM BUT THERE ARE
POTENTIAL ALTERNATE FUNDING
SOURCES THAT WERE PRESENTED BY
THE ADMINISTRATION TO BUILD OUT
ADDITIONAL MILES. WERE THEY TO
BE NEEDED FOR LAST MILE PROJECTS
THAT COULD COME FROM FUNDING
FROM THE LAST MILE PROJECT
GRANTS UNDER BOTH THE F FA AND
THE BEAT PROGRAM LAST MILE
PROJECT. GRANTS ARE ELIGIBLE FOR
MIDDLE MILE INFRASTRUCTURE. SO
IF THERE WERE TO BE A COMMUNITY
THAT NEEDED TO HAVE ADDITIONAL
INFRASTRUCTURE TO CONNECT TO THE
STATE'S MIDDLE MILE NETWORK THAT
COULD BE FUNDED OUT OF THOSE
GRANTS. UM THERE COULD ALSO BE
OTHER MECHANISMS THAT COULD BE
EVALUATED. FOR EXAMPLE, LEASE
REVENUE BOND FINANCING. IF
YOU'RE THINKING ABOUT CUSTOMER
REVENUES COMING IN FOR THE
MIDDLE MILE NETWORK, THERE COULD
BE STATUTORY STATUTORY AUTHORITY
GIVEN FOR THEM TO ENTER INTO
SOME BOND FINANCING FOR SOME
ADDITIONAL MILES THAT WOULD BE
NEEDED. UM, BUT, YES, THE CONS.
AND I REJECTING THE PROPOSAL
WOULD BE FEWER MILES WOULD BE
AVAILABLE INITIALLY, UNTIL THAT
INITIAL OR ADDITIONAL ANALYSIS
IS DONE UNDER A LEASE REVENUE,
BOND FINANCING, UH, MEASURE. UH,
WHO WOULD BE THE, UH LESSEE? OF
THE OF THE MIDDLE MILE NETWORK.
WELL OF THE, UH, FOR PURPOSES OF
PAYING THE BOND. OF PAYING THE
BOND. THE CUSTOMER REVENUES
WOULD BE USED, UM AS KIND OF THE
BASIS FOR PAYING THE BOND. UM
BUT THE STATE WOULD STILL
MAINTAIN AND OPERATE THE NETWORK
THROUGH ITS THIRD PARTY
ADMINISTRATOR SO, BUT IT WOULD
BE A TRUE LEASE REVENUE BOND AND
THAT THERE WOULD BE A SEPARATE
PARTY THAT WOULD BE PAYING. YEAH
THAT I'M JUST GETTING AT WHAT
I'VE SEEN TO BE, UH, A DEVELOPED
, UH, ABUSE OF THE ORIGINAL
INTENT OF LEASE REVENUE WHERE
THE STATE IS BOTH THE LESSOR AND
THE LESSEE. BUT IT'S ANOTHER
SUBJECT. I JUST WANT TO CLARIFY
IT IN THIS CONTEXT. UM, QUESTION
ABOUT, UH THE 1.25 BILLION. UH,
BEING, UM UH, DEPLOYED WITH
CALTRANS RE CONSTRUCTION
PROJECTS, WHICH ARE AS I
UNDERSTAND IT, THE MOST
EXPENSIVE UM SO WHY? UM, WELL,
KT'S CONSTRUCTION. UM
CONSTRUCTION IS EXPENSIVE IN
GENERAL WITH LEASING. OBVIOUSLY
THERE IS NÓ CONSTRUCTION BECAUSE
WE'RE USING EXISTING CONDUIT AND
THEN JOINT BILLS OR PUBLIC
PRIVATE PARTNERSHIPS, SO IT'S
STILL CAN COSTLY, BUT WE'RE
SPLITTING THE COST. UM IN SOME
CASES, WE WERE ACTUALLY ABLE TO
PURCHASE WAS ALREADY THERE. SO
CALTRANS CONSTRUCTION, UM, IS
PROBABLY IN THE MORE
GEOGRAPHICALLY DIVERSE. UM MORE
DIFFICULT. CALIFORNIA HAS, UH,
YOU KNOW, ALONG THE THERE'S ALL
SORTS OF AREAS MOUNTAINOUS AND
THE AREAS THAT ARE LEFT ARE
PROBABLY THE MORE COMPLEX. AND
SO, UM, THE COST PER MILE HAS
GONE UP. UM FROM THE ORIGINAL
TIME THAT WE RECEIVED THE MONIES
, UH, SEVERAL YEARS AGO, UM,
CONSTRUCTION COSTS HAVE BY 40%
AND PART OF THAT IS BECAUSE OF
SUPPLY AND DEMAND. UM SUPPLY
CHAIN AND JUST OVERALL, UM, THE
COST PER MILE JUST HAS
INCREASED. HM? YES. AND HAVE
PARTICULARLY FOR THE FINAL MILE.
UH, BUT MIDDLE MILE. TWO HAVE
OTHER TECHNOLOGICAL APPROACH HAS
BEEN CONSIDERED SUCH AS, UM, THE
LOW ALTITUDE SATELLITE NETWORK
LIKE STARLINK. UH, I KNOW IN A
LOT OF THE FINAL MILE PLACES NOT
NECESSARILY IN URBAN AREAS, BUT
IN RURAL AREAS WHERE THERE'S
MOUNTAINS AND THE LIKE. IT'S A
CHALLENGE, BUT BUT STILL, UH,
THAT COULD BE AN ALTERNATIVE TO,
UH BROADBAND, COULD IT NOT AND
HAS THAT BEEN CONSIDERED? YEAH.
SO UM, WE'VE CERTAINLY LOOKED AT
THAT. UM, A COUPLE OF THINGS ARE
THE EQUIPMENT FOR IT IS COSTLY.
UM MORE COSTLY THAN UM THAN A
LOT OF CALIFORNIANS, UM, WOULD
LIKELY BE ABLE TO BE AFFORDED
CERTAINLY MORE EXPENSIVE THAN
THAN THAN THE LAYING A UH,
CONDUIT. UH, FOR, UH, FOR
BROADBAND MORE COSTLY FOR EACH
INDIVIDUAL HOUSEHOLD THAT HAS TO
HAVE THE SERVICE AND HAS TO HAVE
THE EQUIPMENT. AND SO THAT
THAT'S ONE PART. UM IT'S ALSO UH
UM SOME MORE UNREAL, UNRELIABLE
AND I DON'T WANT TO DISPARAGE
IT. THERE'S SOME, YOU KNOW, IT'S
GOING TO BE A GREAT TOOL IN, UH,
I THINK IN THE OVERALL, YOU KNOW
PROVISION OF BROADBAND
CONNECTIVITY, BUT, UM, WHETHER
COMPETING, UH, SIGNALS ALL CAN
AFFECT THE QUALITY OF IT. AND SO
, UM, THAT'S SOME OF THE REASONS
THAT I THINK IT'S YOU KNOW
POTENTIAL, POTENTIALLY GOING TO
BE HELPFUL FOR SOME, UM BUT IT
CERTAINLY I THINK IN TERMS OF
IT'S A BUILD OUT. IT'S NOT BEEN
AS FAST AS WAS ORIGINALLY
ENVISIONED. SO THAT'S THAT'S
ANOTHER COMPONENT. UH, IT'S
BEING BUILT OUT BASED ON THE
REVENUES THAT IT'S RECEIVING.
AND SO I THINK ALL OF THAT'S
TAKING LONGER. I'M NOT. I'M NOT
AN EXPERT IN THAT IN THAT AREA,
OTHER THAN TO KNOW THAT IT'S
TAKING MUCH LONGER. THERE'S NOT
AS MANY OF THEM AS WAS
ORIGINALLY SCHEDULED. I THINK
THEY WERE ORIGINALLY SCHEDULED,
BUT BUT AGAIN, THERE'S A
RELIABILITY AND A COST ISSUE AS
WELL. OK? UM THOSE ARE MY ONLY
QUESTIONS. FINAL COMMENT IS THAT
UH UH, I'M INCLINED TO LEAN
TOWARD THE, UH UH RECOMMENDATION
OF THE, UH L A Ó AND AS WE MOVE
TOWARD A RESOLUTION ON THE
BUDGET, UM I'M I'M HOPEFUL THAT
WE COME TO AN AGREEMENT AS TO
WHAT THE REAL GAP IS. RIGHT NOW
WE HAVE A GAP FROM THE
ADMINISTRATION. THAT IS 38
BILLION AND A GAP FROM THE L A
Ó THAT, UH, IS ON THE ORDER OF
72 BILLION. MAYBE THAT'S BEEN
REVISED SINCE I REALIZED THAT
NOBODY KNOWS REALLY WHAT
REVENUES ARE GONNA BE, BUT THAT
IS SUCH A BIG GAP. THAT UH, IT,
UH, IT BEGS THE QUESTION OF WHAT
SOLUTIONS DO WE REALLY HAVE?
COME UP WITH AND I'M MORE
INCLINED TO, UH, PAY CREDENCE TO
THE BUDGET ADVISOR THAN I AM TO
THE BUDGET WRITER NÓ OFFENSE,
BUT THERE'S DIFFERENT PRESSURES,
DEPENDING ON THE THOSE TWO
ROLES. THANK THANK YOU, SENATOR
DID L A Ó HAVE A RESPONSIVE
ADDITIONAL COMMENT TO I, UM
BRIAN METZGER, A Ó. I JUST
WANTED TO CLARIFY THE ON THE
LAST QUESTION THAT YOU ASKED
SENATOR LOW ABOUT THE
ELIGIBILITY OF FUNDING FOR OTHER
TECHNOLOGIES THAT COULD BE USED,
UM, THAT WITH THE èC PU èC S¼
FEDERAL FUNDING ACCOUNT PROGRAM.
THERE IS A REQUIREMENT THAT IT
BE CABLE OR FIBER THAT THERE BE
A RELIABLE WIRE LINE CONNECTION.
AND SO THOSE LAST MILE PROJECT
GRANTS MUST BE USING THAT
TECHNOLOGY. HOWEVER WITH THE
BEAD PROGRAM, THERE IS AN AN
OPTION FOR FIXED WIRELESS. OR
SATELLITE OR SOME OTHER FORM OF
TECHNOLOGY FOR THOSE AREAS THAT
ARE EXTREMELY HIGH COST, SO IT
DEPENDS ON WHICH LAST MILE
PROJECT GRANT PROGRAM YOU'RE
TALKING ABOUT. THERE ARE SOME
OTHER ALTERNATIVES AVAILABLE.
THANKS. THANK YOU AND JUST
COMING BACK BRIEFLY BEFORE WE
MOVE. GIVEN THE SORT OF LONG
TERM INVESTMENT. IN RETURN
IMPACT OF THIS. THIS
INFRASTRUCTURE IS CRITICAL,
PARTICULARLY IN THE WHOLE POLICY
. IMPERATIVE HERE AND BUDGET
PRIORITY HERE IS VERY CRITICAL.
I VIEW IT SO UH, BUT THE REALITY
ALSO IS THAT WE STILL HAVE
ESTIMATES THAT THE CURRENT
CONSTRAINTS SCENARIOS ARE GOING
TO CONTINUE MAY GET WORSE WITH
NEW DATA IN THE VERY NEAR TERM
AND MAY CONTINUE IN OUT YEARS.
HOW ABOUT CONTINGENCY PLANNING?
ARE THERE IS THERE A FORMAL
INTERNAL DEPARTMENTAL PROCESS
AND I DON'T THAT'S THINKING
ABOUT OR IDENTIFYING OTHER WAYS
TO UH, COMPLETE THE PROGRAM IN
THE EVENT THAT THE OUT YEARS
CONTINUE TO BE DIFFICULT. UM
RIGHT NOW WE ARE DEVELOPING
AGAIN. PART OF IT HAS TO DO WITH
THE FEDERAL TIME FRAME WHERE
WE'RE MOVING FORWARD AS THOUGH
WE'RE GOING TO DEVELOP DEVELOP
THE FULL 10,000 MILES, UH,
DEPENDING ON THE FUNDING WE GET.
WE'RE GONNA HAVE TO DO SOME
REASSESSMENT OF WHAT WE HAVE AND
WHAT WE CAN AFFORD TO DO. UM AND
THAT AGAIN. WE'LL TAKE INTO
ACCOUNT. WHAT UM, WHERE? F FA.
APPLICATIONS ARE WHERE WE ARE,
WHERE THOSE WE'RE GONNA BE ABLE
TO BEST SERVE THOSE COMMUNITIES.
UM ANY OF THE COMMUNITIES THAT
ARE UNSERVED? UM, BUT, UH, BUT
YEAH, WE'RE AT THIS POINT, GIVEN
THE TIME FRAME, HAVING WHAT WE
NEED TO HAVE CALTRANS GET DONE
BY THE END OF THIS YEAR. WE'RE
MOVING FORWARD WITH THE FULL
10,000. AND WE'LL HAVE TO
EVALUATE THAT, DEPENDING ON WHAT
ULTIMATELY WHAT THE FINANCE IS.
THE ANSWER IS THERE'S NÓ
ANTICIPATORY, PROACTIVE,
INTERNAL CONTINGENCY PLANNING.
WE'RE LETTING THE FUNDING
REALITIES DRIVE THE NEAR TERM
DEMANDS. AND SO MY QUESTION WAS
IS. IS THERE AN INTERNAL
DEPARTMENTAL EFFORT TO
SPECIFICALLY LOOK AT CONTINGENCY
ALTERNATIVES IN THE EVENT THAT
THE BUDGET SCENARIO GETS WORSE?
OR EVEN IDENTIFYING THAT DETAIL
FOR PURPOSES OF BUDGETING AND
POLICY, MAKING THAT THERE ARE
OTHER WAYS TO GET PROGRAM
COMPLETED IN LIGHT OF THOSE
CONSTRAINTS? YES I MEAN
INTERNALLY WE'RE LOOKING AT AT
ALTERNATIVES FOR THAT, UM, OK.
AND CAN YOU IDENTIFY THOSE
ALTERNATIVE ALTERNATIVES AND
PROVIDE MORE DETAIL ON WHAT THAT
PLANNING LOOKS LIKE? NOT THIS
MORNING. UM WE'RE WE'RE STILL
LOOKING AT IT RIGHT? AND I
DIDN'T MEAN TO IMPLY THAT I
EXPECT YOU TO ANSWER THAT IN
DETAIL HERE. BUT WHAT I AM
INQUIRING ABOUT IS WHETHER THAT
PROCESS IN FACT EXISTS HAS BEEN
UNDERTAKEN AND THAT THAT
INFORMATION CAN BE PROVIDED. AND
I'M HEARING YES, WELL, SORT OF,
AND REACH OUT TO YOUR STAFF TO
MAKE SURE WE CAN GET YOU WHAT WE
HAVE. ALL RIGHT. THANK YOU FOR
THAT, SENATOR. SMALL MÁS. YEAH.
I JUST HAD ONE FOLLOW UP
QUESTION, UM AND WANTED TO JUST
GET CLARIFICATION. UM IN TERMS
OF PRIORITIES, SO IT ARE THERE
PROJECTS IN IN MY DISTRICT AND
I'VE NAMED SOME OF THE AREAS
THAT ARE IN MOST ACUTE NEED, UM,
THAT ARE INCLUDED IN THE 1800
MILES THAT HAS ALREADY BEEN
FUNDED. UM CORRECT ME, BUT I
KNOW THAT THERE IS AREAS IN HER
DISTRICT THAT ARE PRE PLANNING
IS BEING COMPLETED HERE SHORTLY.
IS THAT CORRECT? YES YES, WE
BELIEVE DEFINITELY SOME OF THOSE
MILES WILL BE INCLUDED IN IN THE
EXISTING FUNDING. BUT AGAIN IN A
PART OF IT DEPENDS ON UM AS
CALTRANS RULES OUT WITH KIND OF
WHAT? WHAT'S DONE FIRST, YOU
KNOW, WE'RE GONNA HAVE TO TAKE
THAT IN FOR THAT INFORMATION AND
THEN TO COMPARE IT TO THE
FUNDING INFORMATION, BUT, YEAH,
THE I THINK THE EXPECTATION IS
THAT THAT CALTRANS WILL BE READY
FOR A NUMBER OF THOSE AREA. BY
THE BY THE THIRD QUARTER OF THIS
YEAR. SO MAYBE I I'D LOVE TO
FOLLOW UP TO GET MORE OF A
DETAILED ACCOUNT AND TIMELINE.
UM BECAUSE IT SOUNDS LIKE
THERE'S SOME THAT'S ALREADY BEEN
FUNDED AND THEN IN THIS 1.4
BILLION ALLOCATION, THERE WILL
BE SORT OF THE FINAL SORT OF
COMMUNITIES AND PARTICULARLY THE
ONES I MENTIONED TO MAKE SURE
THAT THEY'RE IN THE FIRST ROUND.
AND THEN WE LOOK TO SEE TO MAKE
SURE THEY'RE IN THE SECOND ROUND
. SO II I WOULD WANT TO FOLLOW
UP WITH YOU. UM, I'M GLAD TO
HEAR THERE WAS SOME COMMUNITIES.
UM BUT FROM MY UNDERSTANDING THE
ONES ACTUALLY MENTIONED IN THE
ARTICLE ARE NOT IN THAT LIST.
BUT I WANT TO CONFIRM THAT WITH
YOU. THANK YOU, SENATOR. THANKS
TO BOTH OF YOU. WE'LL MOVE. THAT
ITEM ISSUE WILL BE HELD OPEN.
WE'LL MOVE TO ISSUE EIGHT, WHICH
IS INFORMATION SECURITY
COMPLIANCE. JUST GOING TO DO
CHANGING, CHANGING A LITTLE BIT
OF PRESENTERS HERE. WELCOME AND
PLEASE PROCEED WHEN READY. GOOD
MORNING, MR CHAIR AND
DISTINGUISHED MEMBERS AGAIN. I'M
LEANNA BAILEY CRIMMINS,
CALIFORNIA STATE CHIEF
INFORMATION OFFICER AND DIRECTOR
OF THE CALIFORNIA DEPARTMENT OF
TECHNOLOGY. UH, WE HAVE FOUR B
èC P S¼, UH, ONE WE JUST
DISCUSSED AND WE HAVE THREE MORE
THAT WE WILL BE DISCUSSING WITH
ALL OF YOU FROM MY DEPARTMENT.
UM DEPARTMENT OF TECHNOLOGY HAS
APPROXIMATELY 1000 STAFF. OUR
MISSION SUPPORTS THE DELIVERY OF
INNOVATION. UM TECHNOLOGY
THROUGH STRATEGY AND DELIVERY.
WE HAVE BOTH A CONTROL AGENCY.
FROM A POLICY AND OVERSIGHT
PERSPECTIVE. WE ALSO HAVE A
RESPONSIBILITY AS A SERVICE
PROVIDER. WE HAVE, UM WE RUN
THIS THE BASICALLY THE STATE'S
LARGEST PUBLIC SECTOR DATA
CENTER AT THIS SIDE OF THE
MISSISSIPPI THAT HOUSES A LOT OF
OUR CRITICAL INFRASTRUCTURE. WE
ALSO OVERSEE THE STATE. UM,
SECURITY OPERATIONS CENTER. SO
UH, SECURITY IS SOMETHING THAT
IS AT THE CORE OF EVERYTHING
THAT WE DO. I AM JOINED BY THE
CHIEF ADMINISTRATIVE OFFICER
HERE. MILES BURNETT, WHO WILL
PROVIDE A DETAILS AND A SUMMARY
OF PROPOSALS, UM AND BE ABLE TO
BRING EXECUTIVE LEADERS UP TO
ANSWER ANY OF YOUR DETAILED
QUESTIONS. SO I WILL GO AHEAD
AND TURN IT OVER TO MR UM
BURNETT, AND BEFORE WE PROCEED,
DIRECTOR, I JUST WANT TO BE
CLARIFYING THAT WE WERE SOMEWHAT
DISTRACTED. BUT YOU'RE OPENING
COMMENT. YOU REFERRED TO ALL
FOUR OF THE B èC P S¼ ARE IS
YOUR INTENTION TO PRESENT FOR
ALL FOUR HERE IN ONE SET OF
COMMENTS, OR ARE WE WE'RE GOING
TO DO INDIVIDUALLY. THAT'S WHAT
I THOUGHT. BUT I WHEN I CAUGHT
MY ATTENTION, I THOUGHT OH, OK.
WHAT ARE WE DOING HERE? SO THANK
YOU FOR CLARIFYING. THANK YOU
FOR ASKING. CHAIRMAN PADILLA
MEMBERS OF THE COMMITTEE. MY
NAME IS MILES BURNETT. I'M THE
CHIEF ADMINISTRATIVE OFFICER FOR
THE CALIFORNIA DEPARTMENT OF
TECHNOLOGY. ISSUE NUMBER EIGHT
INFORMATION SECURITY COMPLIANCE.
èC Dð Tð REQUESTS A ONE TIME
$250,000 GENERAL FUND BUDGET
AUGMENTATION IN FISCAL YEAR 2425
TO REMEDIATE THE DEPARTMENT'S
SECURITY COMPLIANCE DEFICIENCIES
ADDRESSING THESE DEFICIENCIES
WILL REDUCE èC Dð Tð S¼ RISK
AND POTENTIAL VULNERABILITIES
REMAINING UNDETECTED AND UN
REMEDIATED. AND IT WILL IMPROVE.
EXCUSE ME THE SECURITY RISK
POSTURE OF THE DEPARTMENT AND
MAINTAIN COMPLIANCE WITH THE CAL
SECURE ROADMAP. èC Dð Tð WILL
USE EXTERNAL SECURITY
CONSULTANTS TO REDUCE THE
CURRENT BACKLOG OF INTERNAL
VULNERABILITIES. THESE
CONSULTANTS WILL DEVELOP AND
DOCUMENT AND WHERE NEEDED
EXECUTE THE MISSING PROCESSES
AND PROCEDURES. CONTRACTORS WILL
ALSO BE USED TO PERFORM
CONSISTENT OVERSIGHT OF
DEPARTMENTAL VULNERABILITY,
REMEDIATION EFFORTS. AND WITH
THAT WE ARE HERE TO ANSWER ANY
QUESTIONS YOU HAVE ON THIS ITEM.
JULIO. I MET. WE HAVE NÓ
CONCERNS WITH THIS PROPOSAL.
DEPARTMENT OF FINANCE, COURTNEY
MASSING THE DEPARTMENT OF
FINANCE NOTHING FURTHER TO ADD.
ALL RIGHT. WE'LL BRING IT BACK
TO THE COMMITTEE. FOR QUESTION
CENTER NEIL UM THIS. SOME OF
THESE DILEMMAS REMIND ME OF
BUDGET SESSIONS WHEN I WAS ON
SUPERVISORS MANY YEARS AGO, AND
SOMETIMES WE WOULD JUST SAY
FINDING THE MONEY. WITHIN YOUR
OPERATING FUNDS SOUNDS KIND OF
CRUEL. WHEN WE'RE UM,
EXPERIENCING THE KIND OF DEFICIT
THAT WE ARE SOMETIMES. WE BUDGET
DECIDERS WELL I'M A REPUBLICAN.
BUT SOMETIMES THAT'S THE, UH,
APPROACH THAT HAS TO BE TAKEN.
THANK YOU, SENATOR. ALL RIGHT.
WITH THAT THIS ITEM WILL BE
HELD. WE'LL MOVE TO THE NEXT
ISSUE ITEM. ISSUE NUMBER NINE
THANK YOU. INTRUSION DETECTION
AND PREVENTION SYSTEMS
REPLACEMENT. èC Dð Tð REQUESTS
809,000 IN GENERAL FUND IN
FISCAL YEAR 2425 THREE 174,000
IN FISCAL YEAR 2526 AND THREE
190 THREE 1000 IN FISCAL YEAR
2627 AND ONGOING TO REPLACE
DATACENTER INTRUSION DETECTION
SYSTEMS AND INTRUSION PREVENTION
SYSTEMS HARDWARE THAT WILL BE
REACHING ITS END OF SUPPORTABLE
LIFE. CDT SUBMITTED A B èC P
AND FISCAL YEAR 20 THREE 24 TO
REPLACE END OF LIFE. I Dð S¼ IP
S¼ INFRASTRUCTURE AND SUPPORT
THE PROTECTION REQUIREMENTS OF
THE CALIFORNIA GOVERNMENTAL
ENTERPRISE NETWORK. HOWEVER
THESE PREVIOUSLY APPROVED I Dð
S¼ IP S¼ INFRASTRUCTURE
REPLACEMENT EFFORTS ONLY ENHANCE
THE IDS IP S¼ INFRASTRUCTURE
SUPPORTING NORTH SOUTH
INSPECTION AND PROTECTION. WHICH
SPECIFICALLY PERTAINS TO
SECURITY MONITORING PROTECTION
THAT TAKES PLACE ON THE OUTER
EDGE, WHERE ALL DEPARTMENTS
INTERCONNECT BOTH èC J AND THE
INTERNET AT LARGE. THE IDEAS.
IPS DEVICES CURRENTLY PROTECTING
THE DATA CENTERS MAINTAINED BY
Ó Tð èC. WE'RE ALSO REACHING
THEIR END OF LIFE AND NOW NEED
TO BE REPLACED. THESE SPECIFIC
IDEAS, IPS DEVICES MONITOR AND
PROTECT THE INTERNAL PERIMETERS
BETWEEN THE VARIOUS NETWORKS.
INSIDE BOTH OF EC'S RESPECTIVE
DATA CENTERS. THESE INCLUDE
INTERNAL DATABASE ZONES, CRUCIAL
WEB SERVERS, MAINFRAME AND OTHER
MISSION CRITICAL SERVICES THAT
RESIDE WITHIN BOTH THE èC Dð Tð
S¼ DATA CENTERS. THESE IDEAS.
IPS DEVICES PROVIDE VITAL
EAST-WEST INSPECTION AND
PROTECTION BY PROVIDING SUPPORT
AGAINST POTENTIAL ATTACKS THAT
MOVE MO. THAT MOVE MAY MOVE
LATERALLY BETWEEN THE INTERNAL
HOSTING ENVIRONMENTS. AND WITH
THAT WE'RE HERE TO ANSWER ANY OF
YOUR QUESTIONS. THANK YOU VERY
MUCH. RYAN METCARE, LEO, WE HAVE
NÓ CONCERNS. THANK YOU.
DEPARTMENT OF FINANCE. COURTNEY
MASKING THE DEPARTMENT OF
FINANCE. NOTHING TO ADD. THANK
YOU BRINGING IT BACK. THERE WAS
A RECENT UPDATE TO SOME OF THE
HARDWARE THAT WAS APPROPRIATED
IN PRIOR CYCLE. AND THE VERY
NATURE OF THIS SPACE IS
DIFFICULT AND EVOLVING QUICKLY.
WHAT ARE THE CONSIDERATIONS HERE
IF THERE'S ADDITIONAL
APPROPRIATION FOR HARDWARE
UPDATE, WHAT'S THE DURABILITY
AND ADAPTABILITY PIECE LOOK LIKE
UH, WHAT ARE WHAT ARE WE
GETTING, AND HOW? WHAT WHAT?
JUST TO PUT IT IN LAY PEOPLE'S
TERMS, JUST, YOU KNOW, LIFESPAN.
UH, I'M SORRY. YEAH THEY'RE
CALLED POLICE. PP YOU ANSWER
THAT. I'M GOING TO INVITE MR
VITALI PANIC TO COME UP THE
STATEWIDE I S¼ Ó. THANK YOU.
AND AGAIN THANK YOU STATE YOUR
NAME FOR THE RECORD AND PLEASE
FEEL FREE TO ANSWER. MEMBERS OF
THE COMMITTEE. AND THE STATE
CHIEF INFORMATION SECURITY
OFFICER. SO YES, SIR. TO ADDRESS
YOUR QUESTION DIRECTLY. UM THESE
ARE HARDWARE HARDWARE BASED
DEVICES BUT ALSO DEPEND ON
SUBSCRIPTION SERVICES TO REALLY
FEED OUR THREAT INTELLIGENCE SO
THAT WE KIND OF KEEP ABREAST AND
MONITOR THE THREAT LANDSCAPE OUT
THERE IN THE COMMUNITY ON ON THE
INTERNET IN THE WORLD. THESE
HARDWARE DEVICES ARE TYPICALLY,
UM, RANGE AS FAR AS LIFE
LIFESPAN IS CONCERNED BETWEEN
THREE TO FIVE YEARS. SO THIS IS
ONE OF THE MYRIAD OF SECURITY
CONTROLS THAT WE MANAGE FOR NOT
ONLY èC, Dð Tð AND THE DATA
CENTER BUT ALSO FOR THE STATE
AGENCIES. THAT, UH, MAY EXHIBIT
CERTAIN GAPS. SO GENERALLY, UH,
3 TO 5 YEARS IS WHAT? UM A
HARDWARE DEVICE MAY MAY LAST.
ALL RIGHT, WAS THERE DID YOU
WANT ADDITIONAL? THANK YOU VERY
MUCH. I APPRECIATE THE RESPONSE.
ARE THERE OTHER QUESTIONS FROM
MEMBERS? ALL RIGHT. THANK YOU
VERY MUCH. WE'LL TAKE UP THE
NEXT ISSUE. JUST ISSUE 10.
STATEWIDE TECH SERVICES. èC Dð
Tð REQUEST THE INCLUSION OF
PROVISIONAL LANGUAGE TO ALLOW
THE CONVERSION OF UP TO 10
MILLION FROM THE TECHNOLOGY
SERVICES REVOLVING FUND TO THE
GENERAL FUND FOR FISCAL YEAR
2425 TO SUPPORT STATEWIDE
TECHNOLOGY SERVICES. èC Dð Tð
IS RESPONSIBLE FOR DEVELOPING
IMPLEMENTING AND MAINTAINING
SEVERAL STATEWIDE PROGRAMS AND
FUNCTIONS THAT ARE NOT THAT DO
NOT LEND THEMSELVES WELL TO A
COST RECOVERY MODEL BECAUSE
THERE ARE NOT SPECIFIC CUSTOMERS
THAT CAN BE BILLED FOR THE
SERVICES PROVIDED èC Dð Tð
OFFICERS, PROGRAMS AND
PERFORMANCE STATEWIDE FUNCTIONS.
INCLUDES SEVERAL, UM AND I'M
GOING TO GO THROUGH JUST A FEW
OF THESE. LIKE FOR INSTANCE, IN
STRATEGIC INITIATIVES, UM,
FACILITATING STAKEHOLDER,
COMMUNICATION AND ENGAGEMENT
DEVELOPMENT, UH, AND
IMPLEMENTATION OF STATEWIDE IT
DIGITAL STRATEGIES OVERSEEING
STRATEGIC INITIATIVES IN
SPECIFIC PROJECTS, GOVERNANCE
AND POLICY FORMULATION. UM MOST
OF OUR OFFICE OF DIGITAL
SERVICES, UH, PERFORMED
STATEWIDE UH UH, TECHNOLOGY
SERVICES, INCLUDING THINGS SUCH
AS DOMAIN AND WEB MANAGEMENT
STATEWIDE WEB HOSTING CLOUD
MODERNIZATION, DIGITAL
ACCESSIBILITY AND BROADBAND
EXPANSION, CONSULTING,
INFRASTRUCTURE, MODERNIZATION
AND SOFTWARE. DEVELOPMENT
SUPPORT DATA ANALYTICS G, I S¼
SERVICES AND POLICY ENFORCEMENT.
UH, MOST OF OUR OFFICE OF
ENTERPRISE ARCHITECTURE,
PERFORMED STATEWIDE POLICY
FUNCTIONS OR STATEWIDE SERVICES.
UH, INCLUDING STATEWIDE
ENTERPRISE ARCHITECT. THERE ARE
STATE WIDE ENTERPRISE
ARCHITECTURE PROGRAM STATEWIDE
BUSINESS TRANSFORMATION,
CONSULTING, STATEWIDE
MODERNIZATION. CONSULTING UH,
AND STATEWIDE, UH, ARCHITECTURE
OVERSIGHT. UM SEVERAL AREAS
UNDER THE OFFICE OF STRATEGIC OR
STATEWIDE POLICY. I'M SORRY.
STATEWIDE PROJECT DELIVERY ALSO
PROVIDES STATEWIDE SERVICES, FOR
INSTANCE, IMPLEMENT AND, UH OF
THE PROJECT APPROVAL, LIFE CYCLE
AND IMPROVEMENT TO OVERSIGHT.
POLICY INTERPRETATION. EXCUSE
ME. SORRY POLICY INTERPRETATION
AND UPDATES. UM TRAINING AND
COMPLIANCE BUDGET ANALYSIS. AND
THIS IS FOR STATEWIDE B èC P
S¼, UM, THAT WE DO IN
CONJUNCTION WITH DEPARTMENT OF
FINANCE A REVIEW IN TESTIMONY
PREPARATION PROJECT IN PORTFOLIO
SUPPORT. UM YEAH. WE HAVE OTHER
OFFICES WITHIN, UH, A èC Dð Tð
THAT ALSO HAVE STATEWIDE
FUNCTIONS INCLUDE THE OFFICE OF
PROFESSIONAL DEVELOPMENT AND
THERE ARE SCATTERED AREAS IN
OTHER OFFICES AS WELL. AND WITH
THAT WE OPEN IT UP TO ANY
QUESTIONS YOU MAY HAVE. THANK
YOU. HELLO. BRIAN METZGER, L A
Ó. WE RECOMMEND THE LEGISLATURE
REJECT THE PROPOSED PROVISIONAL
BUDGET BILL LANGUAGE. THE FISCAL
PRESSURE FACING THE STATE DOES
NOT SUPPORT A POTENTIAL REQUEST
FROM èC Dð Tð FOR ADDITIONAL
GENERAL FUND TO MITIGATE
INCREASES IN STATEWIDE
TECHNOLOGY SERVICE COSTS, THE
DEPARTMENT CAN INST INSTEAD
CONTINUE TO RECOVER THE COST OF
THESE SERVICES AS ADMINISTRATIVE
OVERHEAD THROUGH ITS TECHNOLOGY
SERVICES REVOLVING FUND.
FURTHERMORE THE DEPARTMENT CAN
COMPLETE ITS THREE YEAR RATE
REASSESSMENT PROCESS BY THE END
OF 2425 AND P. INTO STATE LAW
REPORT BACK TO THE LEGISLATURE
ON HOW IT PLANS TO PROVIDE THESE
SERVICES IN A COST EFFECTIVE,
EFFICIENT AND STRATEGIC MANNER.
THANK YOU. DEPARTMENT OF FINANCE
COURTNEY MASSINGALE DEPARTMENT
OF FINANCE. NOTHING TO ADD. I
BRING IT TO ONE OF THE OBVIOUS
THINGS ON THE HORIZON AND IT MAY
OR MAY NOT BE THIS PARTICULAR
MECHANISM THAT IS BEING
REQUESTED BY THE DEPARTMENT. UH,
BUT CERTAINLY WITH THE EXECUTIVE
ORDER ON GENERATIVE A I FROM THE
OFFICE OF GOVERNOR AND ALSO WITH
I THINK 37 POLICY BILLS IN BOTH
HOUSES DEALING WITH THIS. THIS
DEPARTMENT, UH, IS GONNA GET
DEEPLY INVOLVED. WHAT CAN YOU
BRIEFLY COMMENT ABOUT THE
RELATIVE? IMPACT HERE AND THE
WORK YOU'VE DONE WITH OTHER
AGENCIES THINKING ABOUT
IMPLEMENTING BOTH, AT LEAST WITH
THE EXISTING E Ó. ON ON A I
CONSIDERATIONS AND HOW WE MAY BE
THINKING ABOUT THAT. FOR WHAT'S
ON THE HORIZON AGAIN. I THINK
THERE'S SOMETHING LIKE 37 POLICY
BILLS IN BOTH HOUSES TRYING TO
ADDRESS THIS VERY INTERSECTIONAL
AND UNIVERSAL AND QUITE
IMPACTFUL, UM, TECHNOLOGY
ASSESSMENT AND DEPLOYMENT NEED.
SO JOHN OF A I IS NOT INCLUDED.
OBVIOUSLY IN THESE B èC P S¼,
UM, WHEN WE RECEIVE, UH WE
RECEIVED THE EX EXECUTIVE ORDER.
ONE OF THE THINGS WE LOOKED AT
IS WHAT WE COULD UTILIZE OUR
EXISTING RESOURCES. SO TODAY,
DEPARTMENT OF TECHNOLOGY
PARTNERS WITH CLOUD PROVIDERS,
AND WE ALREADY HAVE A MANAGED
ENVIRONMENT AND SO LEVERAGING
OUR CURRENT RESOURCES. WE WERE
ABLE TO STAND UP A SANDBOX. UM
ANY COST ASSOCIATED WITH, UH,
DEPARTMENTS. PROOF OF CONCEPTS
IN THOSE SANDBOXES ARE ACTUALLY
BEING PAID FOR THROUGH THE
DEPARTMENTS THEMSELVES. SO IF
THERE IS STORAGE OR COMPUTE THAT
WILL BE PASSED THROUGH FROM THE
VENDOR. THAT IS, UH, THE CLOUD
PROVIDER TO THOSE DEPARTMENTS
BASED ON THE SIZE AND COMPLEXITY
OF THEIR SPECIFIC PROOF OF
CONCEPTS. UM, BUT AT THIS POINT
THERE'S BEEN NÓ COST OTHER THAN
THROUGH THE RF I SQUARE PROCESS.
THERE'S A DOLLAR FOR ANY VENDOR
THAT GETS AWARDED TO BE ABLE TO
UTILIZE THAT. BUT UM AT THIS
POINT, THERE'S NÓ EXPENSE BEING
REQ REQUESTED THROUGH THIS THIS
EFFORT. SENATOR MOMO CUEVAS. I
JUST HAVE A CLARIFYING QUESTION
IN MY HEAD BECAUSE YOU MENTIONED
THAT SOME OF THESE TECHNOLOGIES
ARE USED FOR COMPLIANCE. UM, AND
ENFORCEMENT. IS THERE A SENSE
THAT THESE TECHNOLOGIES GENERATE
REVENUE FOR THE STATE THROUGH
SOME OF THOSE FUNCTIONS AND HAS
THAT EVER BEEN LOOKED AT SO
DEPARTMENT TECHNOLOGY. I KNOW
MILES. YOU CAN, UH, MAJORITY OF
OUR OUR BUDGET IS COST RECOVERY.
UM SO THERE IS GENERAL FUND AND
GENERAL FUND, TYPICALLY FOR THE
SOCK, WHICH IS SECURITY
OPERATIONS CENTER, WHICH IS ONE
OF THE B èC P S¼ FOR THE HARBOR
REPLACEMENT, BUT THE MAJORITY OF
HOW èC Dð Tð OPERATES IS
THROUGH COST RECOVERY THROUGH
OTHER DEPARTMENTS. UM SO WHEN WE
HAVE NÓ CUSTOMER TO BILL, WE'RE
DOING THINGS THAT ARE CROSS THE
STATE FOR THE GOOD OF EVERYONE,
AND THERE'S NOT A SINGLE
DEPARTMENT. UM WE ARE THEN
TRYING TO FIGURE OUT ON OUR
BUDGET. HOW WE CAN, UM ABSORB
THAT WHEN WE DON'T HAVE FUNDS
THEY EITHER HAVE TO BE PASSED
THROUGH TO A CUSTOMER. UM AND WE
HAVE TO RAISE OUR RATES TO
CUSTOMERS THAT MAY OR MAY NOT BE
NECESSARILY BENEFITING FROM THAT
PARTICULAR STATEWIDE SERVICE.
SO, UM, MANY MILES YOU CAN
EXPLAIN A LITTLE BIT. YES. SO AS
DIRECTOR BAILEY CRIM SAID, SO
MOST OF OUR BUDGET ABOUT 75% OF
OUR BUDGET IS COST RECOVERY FEE
FOR SERVICE. UM THAT COMES
THROUGH MAINLY THE DATA CENTER
AND SOME OF OUR OTHER OFFICES.
BUT THAT'S THE PRIMARY ONE. THE
SERVICES THAT I ARTICULATED ARE
STATEWIDE SERVICES THAT AREN'T
REVENUE, GENERATING THEIR THEIR
POLICY OVERSIGHT OR THEIR
COMPLIANCE. UM OR THEIR STANDING
UP, UH, WEBSITES FOR THE STATE,
BUT THEY'RE NOT TRADITIONAL. WE
REVENUE GENERATING AND SO THEY
DON'T. THEY DON'T REALLY LEND
THEMSELVES TO A FEE FOR SERVICE
MODEL AND THAT THAT'S THE THAT
THAT THAT èC Dð Tð FINDS ITSELF
IN THE FEE FOR SERVICE MODEL
WORKS WELL, FOR WHAT WE DO, UM,
AND WE'VE WORKED HARD WITH THE
DEPARTMENT OF FINANCE TO PULL
OUR RATES UP TO BREAK EVEN ON
THOSE AREAS. UM BUT IT WASN'T IT
ISN'T REALLY DESIGNED FOR THE
KINDS OF STATEWIDE SERVICES THAT
CDT IS PROVIDING, UM, THAT ARE
NOT REALLY, YOU KNOW, REVENUE
GENERATING, AND THERE'S REALLY
AS AS DIRECTOR BAILEY CRIMMINS
ARTICULATED A CUSTOMER TO BILL
MILA. SO IF I'M UNDERSTANDING
PART OF THE ISSUE IS THAT, UH
UH, AS BE FOR SERVICE THAT MAYBE
NOT ALL DEPARTMENTS UTILIZE ALL
OF YOUR SERVICES, AND THEY
CONTRACT SOME OUT BECAUSE IT'S
LESS EXPENSIVE ELSEWHERE. RIGHT
I DON'T MEAN THAT AS A
PEJORATIVE COMMENT JUST IS THAT
PART OF THE PROBLEM. PART OF THE
CHALLENGE. UM SAY THAT SAY THAT?
WELL YOUR YOUR SIZED TO, UH,
PROVIDE SERVICES TO THE ENTIRE
STATE ALL DEPARTMENTS, UH, I Tð
SERVICES AND, UM, IF I'M
UNDERSTANDING CORRECTLY, AND
MAYBE I'M NOT THAT, UM SOME
AREAS ARE ACCESSING SERVICES
THAT YOU PROVIDE ELSEWHERE
BECAUSE THEY PERCEIVE IT TO BE
LESS EXPENSIVE AND THAT
COMPROMISES YOUR SIZE AND SCALE
BECAUSE IT REDUCES YOUR NUMBER
OF CUSTOMERS. THAT FROM WHOM YOU
COLLECT FEE FOR SERVICE. AM I
UNDERSTANDING THAT THAT IS? THAT
IS CORRECT. WE HAVE WE HAVE HAD
CUSTOMERS WHO HAVE WHO HAVE
MOVED SOME OF THEIR SERVICES OFF
PREM, AND THAT HAS HAD A
ABSOLUTE IMPACT ON OUR REVENUE
STREAM. IT. IT DOESN'T ACCOUNT
FOR THE STATEWIDE SERVICES, BUT
IT I'M GONNA GET TO THAT. SORRY
I'M SEPARATELY. UM SO, I. I
APPRECIATE THAT. I AM PART OWNER
OF A BUSINESS THAT HAS A CENTRAL
OPERATIONS THAT PROVIDES HÌ R
AND ACCOUNTING. AND UH, I Tð
SERVICES TO ALL OF THE
DEALERSHIPS AND, UH, SOME OF
THEM SOME OF THE, UH, DEALER. UH
OPERATORS, THE GENERAL MANAGERS
MAY THINK THAT THE CHARGE IS TOO
MUCH, BUT THEY HAVE TO PAY IT.
SO THERE'S A LITTLE BIT
DIFFERENT. THERE'S A BIT I GUESS
INTERESTING THAT A SMALL
BUSINESS WOULD HAVE A STRONGER
COMMAND CENTRAL COMMAND AND
CONTROL THAT A LARGER
ORGANIZATION WOULD BUT I. I
APPRECIATE THAT CHALLENGE AND I
THINK IT GETS TO THE LAO'S
COMMENT ABOUT UM, UH, FINDING A
WAY TO PROVIDE THE SERVICES COST
COMPETITIVE, GIVEN THE ENTIRE
MARKETPLACE. I KNOW THAT'S
TOUGH, BUT PROBABLY SOMETHING
THAT YOU'D HAVE TO DO TO, UM
STRUGGLE WITH THAT. NOW AS FAR
AS THE OTHER SORTS OF SERVICES
DRIVEN BY INITIATIVES THAT ARE
STATEWIDE AND YOU CAN'T UM UH,
BILL FOR, UM, WHERE DO THOSE
INITIATIVES COME FROM? SOME ARE
ARE STATUTORY. SOME ARE
EXECUTIVE ORDER. SOME ARE ARE
MANDATES FROM FROM OTHER
ORGANIZATIONS, SO THEY COME FROM
, UH, EITHER EXECUTIVE ORDERS OR
US. THE LEGISLATURE. I. I WANNA
MAKE THAT POINT. BECAUSE IF THE
LEGISLATURE CAN'T DEAL WITH THE
EXECUTIVE THE EXECUTIVES, THE
EXECUTIVE, BUT IF THE
LEGISLATURE IS GOING TO IMPROVE,
UH UM IMPOSE. PROJECT
REQUIREMENTS ON YOU. THAT ARE
UNFUNDED. UH, WE'RE CREATING THE
PROBLEM. AND UH, WE SHOULDN'T BE
NOW THEY ALREADY EXIST. UH WE
COULD PROBABLY PROPOSE
LEGISLATION TO REVERSE THEM AND
NONE OF THEM WOULD GET OUT OF
COMMITTEE. BUT I THINK IT'S
INCUMBENT UPON US TO REALIZE
THAT WHEN WE DO THAT WE CREATE
THIS PROBLEM. AND WE CREATE FOR
OURSELVES A SERIOUS BUDGETARY
PROBLEM THAT IS COMPOUNDED UPON
AN ALREADY EXISTING BUDGETARY
PROBLEM. SO UH, THE THREE OF US
ARE ARE HERE, UM, NEW THIS YEAR,
SO WE CAN SAY WE'RE NOT PART OF
IT, BUT BUT IT IS AN
INSTITUTIONAL ISSUE, AND I THINK
IT'S IMPORTANT FOR US TO
UNDERSTAND THAT. SENATOR
APPRECIATE THE INPUT. I THINK
SOMEBODY SOMEWHERE THOUGHT IT'S
A GOOD IDEA TO HAVE FRESH EYES
ON THE DEPARTMENTS OF STATE
GOVERNMENT, I SUPPOSE, BUT THANK
YOU. ALL RIGHT, THAT ISSUE. WILL
BE HELD. AND THAT CONCLUDES THAT
DEPARTMENT THANK YOU VERY MUCH
FOR THE PRESENTATIONS AND THE
WORK. WE'LL INVITE Dð G S¼ UP TO
GET SETTLED.
ALL RIGHT, THE DIRECTOR WELCOME.
I UNDERSTAND YOU'LL BE DOING A
DEPARTMENTAL GENERAL OVERVIEW
AND THEN WE WILL TAKE THE TWO
ISSUE ITEMS UP SEPARATELY AND
INDIVIDUALLY. AS I UNDERSTAND
THAT'S THE REQUEST AND HAPPY TO
ACCOMMODATE THAT. PLEASE PROCEED
WHEN READY. THANK YOU. CHAIR
PADILLA AND GOOD MORNING
SENATORS. UH, SMALL CUEVAS AND
SENATOR NILO. UH, MY NAME IS
ANNA LASSO. I'M THE DIRECTOR OF
THE DEPARTMENT OF GENERAL
SERVICES, AND I'M ACCOMPANIED BY
HAROLD HEATHER CARLSON OR CHIEF
FINANCIAL OFFICER. SHE WILL
PRESENT OUR BUDGET REQUESTS. UM
AND THANK YOU FOR THIS
OPPORTUNITY TO PROVIDE THIS
OVERVIEW Dð G S¼ HAS WORKED
CLOSELY WITH GOV. UP'S AGENCY,
THE DEPARTMENT OF FINANCE AND
THE GOVERNOR'S OFFICE TO BALANCE
PRIORITY SERVICES AND TAKE A
THOUGHTFUL, SUSTAINABLE APPROACH
TO RECENT FLUCTUATIONS IN THE
STATE REVENUES IN ACCORD WITH
THE ADMINISTRATION'S COMMITMENT
TO MAINTAIN INVESTMENTS AND
SAFETY. CLIMATE CHANGE AND
SUSTAINABILITY WHILE MAXIMIZING
THE EFFICIENCY AND USE OF THE
EXISTING STATE RESOURCES. Dð G
S¼ S¼ BUDGET REQUEST INCLUDES
SEVERAL PROPOSALS CONSISTENT
WITH THESE VALUES, INCLUDING
SUPPORT THE REOPENING OF THE
BATESON BUILDING TO EFFECTIVELY
MANAGE, OPERATE AND MAINTAIN
THIS NEWLY RENOVATED BUILDING.
RESPOND TO SUSTAINABLE ENERGY.
UH LEGISLATION AND EXECUTIVE
ORDERS FOR ALL AGENCIES THAT ARE
IMPACTED BY SUSTAINABILITY
RELATED INITIATIVES AND CONTINUE
THE ADMINISTRATION'S COMMITMENT
TO CLIMATE CHANGE ISSUES.
ADDRESS INFORMATION TECHNOLOGY
INFRASTRUCTURE IMPROVEMENTS,
INCLUDING WIRELESS INTERNET AND
ENHANCED CYBER THREAT PROTECTION
AGAINST RANSOMWARE. SUPPORT THE
OFFICE OF FLEET AND ASSET
MANAGEMENT STATEWIDE PARKING
PROGRAM TO IMPLEMENT A
COMPREHENSIVE PREVENTATIVE
MAINTENANCE PLAN FOR STATE
PARKING FACILITIES TO ADDRESS
NECESSARY FIRE LIFE SAFETY
PROJECTS AND EXTEND THE USEFUL
LIFE OF THESE REVENUE GENERATING
FACILITIES AND MAXIMIZE THE
EFFICIENCY OF THE EXISTING STATE
RESOURCES. AND ADDRESS THE FLEET
OPERATIONS PROGRAM, INCREASED
MAINTENANCE AND REPAIR COSTS OF
THE STATE FLEET AND MAXIMIZE THE
USEFUL LIFE OF THE FLEET.
VEHICLES FINALLY ALLOCATE
RESOURCES TO THE OFFICE OF STATE
PUBLISHING FOR MATERIALS
PURCHASES TO SUPPORT THE
INCREASED COST AND ORDER VOLUME
OF PAPER AND COMMODITIES, WHICH
HAVE EXTENDED LEAD TIMES NOW AND
PRODUCTION CAPACITY IN AN EFFORT
TO HELP ME DIGEST CUSTOMER
DEMANDS. THANK YOU AGAIN FOR
GIVING ME THE OPPORTUNITY TO
PRESENT OUR BUDGET REQUESTS IN A
SUMMARY AND I TURN IT OVER TO
HEATHER CARLSON. GOOD MORNING
MEMBERS. CHAIR UM HEATHER
CARLSON, CHIEF FINANCIAL OFFICER
FOR THE DEPARTMENT OF GENERAL
SERVICES. THE FIRST PROPOSAL FOR
Dð G S¼ IS A REQUEST FOR $4
MILLION IN THE SERVICE REVOLVING
FUND TO SUPPORT INCREASES IN
REQUIRED PAPER AND COMMODITIES
USED BY THE OFFICE OF STATE
PUBLISHING. OVER THE LAST THREE
YEARS, WE'VE ENCOUNTERED A 40%
INCREASE IN THE COST OF RAW
MATERIALS AND PAPER COMMODITIES.
THIS INCREASES DOES NOT APPEAR
TO BE TO APPEAR TO BE
SHORT-LIVED AND THEREFORE WE'RE
ASK. FOR ONGOING AUTHORITY FOR
THIS INCREASED COST. UM, I DO
HAVE WITH ME TODAY. BRENT
JAMISON, WHO'S OUR DEPUTY
DIRECTOR OVER OUR INTERAGENCY
SUPPORT DIVISION. IF THERE'S
SPECIFIC QUESTIONS OR ADDITIONAL
INFORMATION ABOUT THE TYPES OF
THINGS THAT THE OFFICE OF STATE
PRINTING DOES PUBLISHES. THANK
YOU, MR CARLSON. OTHER COMMENT
FROM L A Ó. THANK YOU, MR CHAIR
, JARED. SUPPLE WITH THE L A Ó.
UH FOR THIS PROPOSAL, WE'RE
RECOMMENDING APPROVING IT FOR
TWO YEARS, AS OPPOSED TO ONGOING
AS PROPOSED BY THE GOVERNOR. WE
FIND THAT THE ONGOING NEED FOR
ADDITIONAL RESOURCES IS
UNCERTAIN BECAUSE IT IS UNCLEAR
HOW LONG CURRENT PAPER SUPPLY
ISSUES WILL CONTINUE. RELATEDLY
WE THINK IT COULD ALSO MAKE
SENSE FOR THE LEGISLATURE TO
CONSIDER. SIMILARLY MODIFYING
ONGOING FUNDING PROVIDED IN LAST
YEAR'S BUDGET FOR A NEW
WAREHOUSE LEASE TO STORE
ADDITIONAL PAPER AND RELATED
MATERIALS BECAUSE THE OFFICE OF
STATE PUBLISHING WILL BE
EVALUATING THE CONTINUED NEED
FOR THAT WAREHOUSE IN A COUPLE
OF YEARS. THUS THE TIMING WOULD
ALIGN SUCH THAT THE DEPARTMENT
COULD BOTH, UH CONSIDER MORE
HOLISTICALLY REASSESS THE NEED
FOR BOTH PURCHASING AND STORING
AN INCREASED SUPPLY OF R PAPER
AND RELATED MATERIALS AND SUBMIT
AN ONGOING REQUEST FOR
CONSIDERATION TO THE LEGISLATURE
AT THAT TIME, SO HAPPY TO ANSWER
ANY QUESTIONS? OK, THANK YOU.
DEPARTMENT OF FINANCE. NATALIE
GRISWELL DEPARTMENT OF FINANCE
NOTHING TO ADD AT THIS TIME, BUT
AVAILABLE FOR QUESTIONS. ALL
RIGHT. THANK YOU. WE'LL BRING IT
BACK TO COMMITTEE MEMBERS FOR
ONLY WE HAVE IS THE STATUS ON
OUR PAPER LIST. PROCESS I WONDER
, IS THERE A PROJECTION OF WHAT?
THAT WILL SAVE US DOWN THE LINE?
I KNOW WE'RE MOVING TO TABLETS.
WE'RE SAVING AND I WILL PROBABLY
BRING UP FRENCH AND WHAT WE CAN
SAY IS THAT WE KNOW THAT WE'LL
NEVER BE ABLE TO GO 100%
PAPERLESS UNTIL WE'RE COMPLETELY
CONNECTED. RIGHT UM, WE, THE
OFFICE OF STATE PUBLISHING IS
RESPONSIBLE FOR DOING ALL OF THE
LIKE THE VOTER INITIATIVES, SO
THE BALLOT MEASURES THE DAILY
FILE, SO THERE'S THINGS THAT
WILL ALWAYS BE IN PRINT AND
AVAILABLE. BUT I WILL ALLOW, UH,
BRETT JAMESON TO GOOD MORNING.
BRENT JAMIESON, DEPUTY DIRECTOR
OF DEPARTMENT OF GENERAL
SERVICES. UM THANK YOU FOR YOUR
QUESTION AND ADDING ON WHAT MISS
CARLSON SAID. YES THERE ARE
CERTAINLY TRENDS IN GOING
PAPERLESS THROUGHOUT PUBLISHING,
BUT BY AND LARGE, WE RESPOND TO
THE NEEDS OF OUR CUSTOMERS.
WE'RE SEEING BIG INCREASES IN
VARIABLE, SECURE DIGITAL
PRINTING. THINK UM, DEPARTMENT,
HEALTH CARE SERVICES, MEDICAL
PRINTING AND WHATNOT, SO THERE
IS STILL REALLY DEMAND FOR
SECURE PRINTING AND MAILING, AND
THAT'S WHERE WE'RE STILL SEEING
GROWTH. IT IS THERE, UM I GUESS
IS THERE SORT OF PROJECTIONS IN
TERMS OF THE PAPERLESS PLAN?
WE'RE PART OF IT, TOO, IN THE IN
THE STATE SENATE AND GLAD TO
HAVE MY TABLET, BUT JUST TRYING
TO FIGURE OUT IS THERE IS THERE
SORT OF A REAL COST ANALYSIS IN
TERMS OF WHERE THE IT'S A
TREMENDOUS AMOUNT OF MONEY RIGHT
ON PAPER WHEN WE THINK ABOUT
SOME OF THE CUTS THAT WE'RE
MAKING RIGHT NOW, SO I'M JUST
CURIOUS. IS THERE A SENSE OF
WHERE? WHAT? WHEN WILL WE GET
THERE? AND WHAT IS THE SORT OF
GOAL THAT WE HAVE? IT'S IT'S
SUCH A BROAD QUESTION, BECAUSE
AGAIN, IT'S CUSTOMER SPECIFIC,
RIGHT. SO EVERY YEAR WE DO POLL
OUR TOP 10 CUSTOMERS TO GET AN
IDEA OF KINDA WHERE THINGS ARE
HEADED AS AN EXAMPLE. Dð M VÆ
FORMS ARE THEY GOING TO CONTINUE
TO PRINT THOSE FORMS? ARE THEY
NECESSARY, ETCETERA, ET CETERA.
BUT AT THE END OF THE WE ARE
HERE TO SERVE THE NEEDS OF OUR
CUSTOMERS, SO WE DON'T
NECESSARILY HAVE A PLAN BEYOND
THAT. WHICH OUR CUSTOMERS
PLANNING, BUT WE DO REGULARLY
CHECK IN SO THAT WE CAN PLAN
ACCORDINGLY AND FIGURE OUT. YOU
KNOW WHAT MACHINES WE NEED TO
PUT ONLINE. WHAT MACHINES? WE
NEED TO TAKE OFF. HOW, UM HOW WE
RECOVER OUR COSTS AND OUR RATES.
THANK YOU FOR THAT. IT SOUNDS
LIKE WE HAVE MORE WORK TO DO TO
FIGURE OUT WAYS TO BE
ENVIRONMENTALLY CONSCIOUS IN HOW
WE'RE USING THIS THIS NATURAL
RESOURCE, SO THANK YOU. YOU ANY
ADDITIONAL QUESTIONS OR COMMENTS
? ALL RIGHT. THIS ISSUE IS THERE
IS A RECOMMENDED ACTION ON THIS.
SO WE'LL TAKE IT UP IN
CONJUNCTION WITH OTHER ACTION
ITEMS. THANK YOU VERY MUCH. WE
CAN MOVE TO ISSUE 12.
PLEASE PROCEED WHEN READY. UH,
THANK YOU. CHAIR UM RANDY KATZ
AON OF FINANCE CAP OUTLAY. UH
THE ADMINISTRATION PROPOSES A
REQUEST TO REPEAL TRAILER
BUILDING LANGUAGE THAT WOULD
SUNSET THE DESIGN BUILD
MECHANISM. THIS IS A PROCUREMENT
METHOD THAT THE STATE HAS BEEN
USING FOR CLOSE TO 30 YEARS, UH,
TYPICALLY ON A MUCH LARGER
PROJECTS. IT HELPS TO STREAMLINE
THE PROCESS. AND IN THE END ON
THESE LARGE PROJECTS, SAVE THE
STATE COSTS ON AVERAGE. ALL
RIGHT. THANK YOU. L, A IRRITABLE
WITH THE L A Ó. WE HAVE NÓ
COMMENTS ON THIS, UH, LANGUAGE.
ALL RIGHT. TO THE COMMITTEE
MEMBERS. ARE THERE QUESTIONS OR
COMMENTS? SENATOR NILO I'M
SHOCKED. YOU MIGHT EVEN KNOW
WHAT MY COMMENT IS. WHY NOT JUST
RUN A POLICY BILL? I MEAN, WE
COULD THIS THIS IS THE BEGINNING
OF NEXT YEAR IF WE PASS THE BILL
THIS YEAR TO EXTEND THE, UH
ABILITY TO USE DESIGN BUILD,
WE'D GET IT ALL. WHY IS IT A
BUDGET TRAILER BILL? UM THIS IS
GENERALLY PART OF THE
ADMINISTRATION'S PROCESS JUST TO
EXPLORE THE WORLD OF LEGISLATURE
THAT DIRECTLY AFFECTS OUR
ADMINISTRATIVE PROCESSES. WE
NOTICED THAT THIS ONE WAS ONE
THAT WAS ABOUT TO SUNSET IF WE
DIDN'T GET IT ADDRESSED, UH, WE
WOULD RISK LOSING THIS METHOD
AND MANY OF THE PROJECTS
CURRENTLY IN THIS METHOD SO DUE
TO ALREADY HAVING PROJECTS
FUNDED AS DESIGN BUILT IN THE
BUDGET PROPOSALS IN THE BUDGET
FOR DESIGN BUILD PROJECTS. THE
ADMINISTRATION THOUGHT IT MOST
PRUDENT TO MOVE FORWARD WITH
THIS AS A TRAILER BUILDING. SO
IT'S THE ADMINISTRATION THAT'S
BEEN DRIVING THE, UH, ABUNDANT
USE OF TRAILER POLICY TRAILER
BILLS IN THE BUDGET. I DON'T
EXPECT YOU TO ANSWER THAT
QUESTION. I JUST I AM. UM I'VE
SAID MANY TIMES. UH UH, ON THE
FLOOR AND ELSEWHERE THAT THE
EXPLOSION OF POLICY, NOT BUDGET
RELATED. UH, BEING DEALT WITH IN
BUDGET TRAILER BILLS, I BELIEVE
IS AN ABUSE OF THE PROCESS. AND
UH, IF YOU NEED AN AUTHOR, UH
TO, UH, EXTEND THE USE OF DESIGN
BUILD BEYOND JANUARY 1ST 2025.
YOU CAN TALK TO ME AND YOU CAN
TALK WITH A LOT OF OTHERS, TOO.
I IT MAY BE CONTROVERSIAL IN
SOME SECTIONS OF THE, UH OF THE
ORGANIZATION. UH, BUT I DON'T
KNOW HOW SO MUCH. HOW IN THE, UH
IN THE LEGISLATURE, IT JUST
SEEMS TO ME THIS IS IN THE WRONG
SPOT. VERY MUCH IN ADDITIONAL
COMMENTS OR QUESTIONS FROM THE
SUB COMMITTEE MEMBERS. IF NOT
THANK YOU VERY, VERY MUCH THAT
I, UH, ISSUE ITEM WILL BE HELD.
THAT'LL TAKE US TO THE PUBLIC
COMMENT PORTION OF THE DOCKET
TODAY. THIS IS AN OPPORTUNITY
FOR FOLKS TO ADDRESS THE
SUBCOMITTEE ON ITEMS THAT ARE
DOCKETED. WHEN YOU PLEASE COME
FORWARD STATE YOUR NAME FOR THE
RECORD. TRY TO LIMIT YOUR
COMMENTS TO ONE MINUTE FOR US,
PLEASE. THANK YOU. AND WELCOME
MR CHAIRMAN, MEMBERS OF THE
COMMITTEE ORIO GONZALEZ ON
BEHALF OF NEXTGEN, CALIFORNIA
AND THE CALIFORNIA ALLIANCE FOR
DIGITAL EQUITY. THAT PHOTO OF
THE TWO LITTLE GIRLS. HEY, GUYS
CAN FEEL JUST SUSPEND FOR A
SECOND. JUST MAKE SURE THE
COMMITTEE ROOM REMAINS IN ORDER.
AND FOLKS, PLEASE KEEP YOUR
VOICES DOWN SO WE CAN HEAR THE
TESTIMONY FROM THE PUBLIC. SORRY
FOR THE INTERRUPTION. PLEASE
PROCEED. SURE UH, THAT PHOTO OF
THE TWO LITTLE GIRLS THAT WERE
FORCED TO ACCESS WIFI FROM THE
PARKING LOT OF A FAST FOOD
RESTAURANT WAS FUNDAMENTALLY A
RESULT OF A HANDS OFF APPROACH
BY THE STATE TOWARDS ENSURING
EQUITABLE ACCESS TO BROADBAND.
TO YOUR CREDIT, YOU INVESTED $6
BILLION TO BUILD A MIDDLE MILE.
UM UH, IN THE STATE OF
CALIFORNIA, BUT UNFORTUNATELY,
THE INVESTMENT ONLY GETS US 80%
THERE, STOPPING NOW IS AKIN TO
BUILDING HALF A BRIDGE. UM TO
SENATOR SMALLWOOD CUEVAS POINT?
YES, THERE ARE PROGRAM
IMPROVEMENTS THAT NEED TO TAKE
PLACE WE NEED I ROTATE THIS
COMMUNITIES THAT HAVE BEEN
HISTORICALLY LEFT OUT. UM AND
THAT IS SOMETHING WE COULD
CERTAINLY DO TO OVERSIGHT. BUT
DOES NOT NEGATE THE NEED TO
PROVIDE THE ADDITIONAL $1.5
BILLION SO THAT WE COULD FINISH
THE NETWORK. UM, WE URGE YOU TO
APPROVE THE FULL 1.5 WHEN YOU
GET THE OPPORTUNITY. THANK YOU.
YOU. GOOD MORNING, NICOLE
WILEMAN ON BEHALF OF THE
CHILDREN'S PARTNERSHIP IN
SUPPORT OF THE GOVERNOR'S
PROPOSED FUNDING FOR THE MIDDLE
MILE. UH I WANTED TO MAKE JUST
TWO QUICK POINTS TODAY. FIRST
WHEN YOU THINK ABOUT DIGITAL
ACCESS, I WANT TO ENCOURAGE YOU
TO THINK OF IT AS A CORE
CHILDREN'S HEALTH EQUITY ISSUE.
I SAY THIS BECAUSE BROADBAND
ACCESS HAS A PROFOUND AND
COMPOUNDING EFFECT ON HEALTH
THAT STARTS IN CHILDHOOD. WE
CONSIDER DIGITAL EQUITY TO BE A
SUPER SOCIAL DETERMINANT OF
HEALTH BECAUSE DIGITAL IN IN
FACT, COMPOUNDS INEQUITIES IN
OTHER SYSTEMS FROM IMPEDING
EDUCATION TO INTERRUPTING HEALTH
CARE ALL THE WHILE LIMITING
ACCESS TO RESOURCES THAT COULD
ADDRESS ADVERSE SOCIAL
CONDITIONS, SUCH AS APPLICATIONS
FOR HOUSING AND INCOME
ASSISTANCE PROGRAMS. THE SOCIAL
DRIVERS OF HEALTH AFFECT
INDIVIDUALS AT ALL STAGES OF
LIFE, BUT THE EFFECTS ARE
PARTICULARLY SIGNIFICANT TO THE
HEALTH AND DEVELOPMENT OF
CHILDREN. IN CLOSING. I WANT TO
STRESS THAT PERSISTENT
INEQUITIES IN ACCESS TO HIGH
SPEED, AFFORDABLE INTERNET HAVE
LASTING EFFECTS ON OUR
CHILDREN'S ABILITIES TO GROW UP
HEALTHY TO LEARN AND TO DEVELOP
INTO THRIVING ADULTS. WE RESPECT
POLY ASKED YOU TO FUND THE
MIDDLE MILE. THANK YOU. THANK
YOU. HELLO AMANDA. WELDER I'M
WITH CAL BROADBAND REGARDING
ISSUE ITEM SEVEN. THE DEPARTMENT
OF TECHNOLOGY HAS NOT PRESENTED
THE LEGISLATURE WITH A BUSINESS
PLAN AND REVENUE MODEL TO
DEMONSTRATE, UH, SUCCESSFUL
OPERATION AND MAINTENANCE OF THE
STATE MIDDLE MILE. WITHOUT THE
NEED FOR CONTINUED GENERAL FUND
SUPPORT, CONSIDERING THE
CONDITION OF THE GENERAL FUND
THROUGHOUT THE BUDGET FORECAST
WINDOW AND THE LACK OF A VIABLE
BUSINESS PLAN, CALLED BROADBAND,
AGREES WITH THE L A Ó THAT THE
LEGISLATURE SHOULD REJECT THE
GOVERNOR'S PROPOSED NEW FUNDING
ON THE STATE'S MIDDLE MILE
PROJECT. THANK YOU. THANK YOU OR
ADDITIONAL. INDIVIDUALS WISHING
TO ADDRESS SUB COMMITTEE UNDER
PUBLIC COMMENT. SEE, THEN WE
WILL THEN THANK EVERYONE FOR
YOUR PARTICIPATION. WE'LL MOVE
TO THE ITEMS FOR ACTION, WHICH
FIRST ARE ISSUE ITEMS ONE
THROUGH SIX IN TOTAL FOR VOTE
ONLY. WE WILL SEGREGATE THOSE
ITEMS FIRST INTO, UH, ISSUES
THREE AND FOUR AND THE CHAIR
WILL ENTERTAIN A MOTION. SO ALL
THOSE ITEMS ARE MOVED TO PROVE
HIS BUDGET. IS THERE ANY
DISCUSSION, NOT CONSULTANT?
PLEASE CALL THE ROLL. YEAH, I, I
NE I NE I SMALLWOOD CUEVAS,
SMALL QUAVER. I ALL RIGHT. THANK
YOU. THOSE ISSUE ADS ARE OUT.
WE'LL THEN TAKE UP ISSUES 125
AND SIX AND I'LL ENTERTAIN
EMOTION. THANK YOU, THOUGH. UH,
THE MOTION IS TO APPROVE HIS
BUDGETED CONSULTANT. PLEASE CALL
THE ROLL. NÓ NÓ SO AT EQUUS
SMALL QUIVER I THANK YOU. THE
VOTE IS 21 AND THOSE ISSUE ITEMS
ARE OUT. THEN WE'LL TAKE UP, UH,
ISSUE NUMBER 11 UNDER THE
DEPARTMENT OF GENERAL SERVICES
OFFICE OF STATE PUBLISHING
MATERIAL PURCHASE AUTHORITY
STAFF RECOMMENDATION IS NOW TO
APPROVE AS MODIFIED. I ENTER A
MOTION. RIGHT? CONSULTANT.
PLEASE CALL THE ROLL. AYE I NE I
NE I SMALL QUAVERS SMALL QUAS I
THANK YOU VERY MUCH. THEN THAT
ISSUE ADAM IS OUT. THANKS TO
EVERYONE FOR YOUR PARTICIPATION.
ANYONE WHO WISHES TO PROVIDE
INPUT TO THE SUB ON THIS DOCKET
CAN ALSO DO SO THROUGH THE
WEBSITE AND BY SUBMITTING
COMMENTS TO STAFF IN WRITING
WITH THAT. THANK YOU VERY MUCH.
THE SUB COMMITTEE IS ADJOURNED.
YEAH. THANK YOU, MA'AM. HEY
LET'S FOLLOW JUST A QUICK
QUESTION. I DIDN'T DO IT. YEAH.
YES.