Gavin Newsom, Governor S?ro?re of California Regular-Session 2019.20 '1b the California Legislature January 10, 2020 To the members of the Senate and the Assembly of the California Legislature: It’s often said that budgets are statements of values. In America’s most populous and productive state, our state Budget is more than that. It is a blueprint for a better quality of life and brighter future for millions of individuals striving and succeeding together—in pursuit of their own version of the California Dream. Thanks to your leadership and support, we saved more than ever for a rainy day and paid off the state’s budgetary wall of debt, while achieving our highest credit ratings in nearly two decades. We moved closer toward universal health care coverage, and we took on Big Pharma and rising prescription drug costs. California enacted the strongest renter protection package in the nation, provided a $1,000 tax rebate to low-income families with young children to relieve the economic stress of working families and address childhood poverty, and made two years of community college tuition-free. California made the largest investment ever in K-12 schools and met the unprecedented challenge presented by wildfires with $1 billion in disaster preparedness, response, and recovery. California is stronger than ever today, and the Budget found in the pages ahead reflects our fortitude. Our state has provided the rocket fuel for the nation's economic expansion. We are the world's capital of innovation. We have more people with access to health care and higher education than any other state. California is showing the nation and the world what big-hearted, effective governance looks like. In spite of this progress, there are deep, structural challenges that threaten our state’s future and demand our urgent attention. These problems—catastrophic wildfires and their impacts, the expanding homelessness crisis, and growing inequality of opportunity—have been decades in the making and won’t be fixed overnight. California can and must do more to tackle these challenges and fortify our future. Our heroic emergency personnel and firefighters put out more than 7,800 fires last year—thanks in many cases to prepositioned assets and the newest weather technology. But wildfires fueled by climate change continue to threaten our people and our way of life. The Budget builds on this record investment by expanding firefighting technology and personnel. Last year, California dedicated a record amount of emergency funding for cities and counties to fight homelessness and empowered cities and counties to quickly build more shelters and navigation centers, and to provide services. But addressing this issue takes much more than funding—it will take an all-of-the-above approach from state and local leaders, one that includes innovative mental health and substance use disorder treatment, and more shelters to help get people off the streets and into housing. For too long, our state’s prosperity has not been broadly shared. In 2019, California took bold action to expand access to opportunity and tackle the affordability crisis families are facing. We've sought to make it easier for every California family to afford to live and thrive in America’s most beautiful state. This Budget doubles down on the war on unaffordability—from taking on health care costs and having the state produce our own generic drugs to expanding the use of state properties to build housing quickly. Our state’s best days are ahead of us. Through smart investments and tackling the most intractable problems, California can continue to lead the nation in growth and opportunity. I look forward to our work together in the year ahead as we enact a budget that continues to move us closer to a California for All. With respect, s/s Gavin Newsom STATE CAPITOL • SACRAMENTO, CALIFORNIA 95814 • (916) 445–2841 TABLE OF CONTENTS Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Summary Charts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Health and Human Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Jobs and Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Early Childhood . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 K-12 Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Higher Education Homelessness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109 Climate Resilience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117 Emergency Preparedness and Response . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129 Public Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 Judicial Branch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147 Environmental Protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153 Natural Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157 Statewide Issues and Various Departments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165 Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179 Demographic Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205 Economic Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213 Revenue Estimates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223 Staff Assignments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245 Appendices and Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247 Version number CQ2DDvMG2BB5g7vg INTRODUCTION INTRODUCTION T he Governor's Budget was developed against the backdrop of an extraordinarily strong economy. As 2020 begins, California’s economy is the strongest in the nation, with a gross domestic product (GDP) of nearly $3 trillion, representing the fifth largest economy in the world. California’s economic growth has fueled the nation's economy, which has been growing for a record 126 months. The state's unemployment rate is now at 3.9 percent, down from a peak of 12.2 percent during the Great Recession. The state's average annual real GDP growth of 3.8 percent has beaten that of Texas and Florida, and California is first in the nation in new business starts, venture capital, and manufacturing. Even with California’s strong economy, continued growth is uncertain due to the instability in global economic markets and the nation's political climate. Further, the state's strong economy has not lifted all Californians. Economic inequality persists between regions of the state and for many living within the state's more prosperous regions. Building on the 2019 Budget Act, the Budget continues to build reserves and promotes a more effective government that can withstand a downturn in the economy, as well as emergencies and disasters. It squarely addresses the affordability crisis that too many Californians experience and continues unprecedented investments in promoting opportunity. The Budget continues to reflect the principle that maintaining a balanced GOVERNOR'S BUDGET SUMMARY — 2020-21 1 INTRODUCTION Version number CQ2DDvMG2BB5g7vg budget and strong budget resiliency is non-negotiable and a necessary predicate for expanding programs, especially with the growing risks facing the state. Last year, the Budget took steps to reduce the cost of prescription drugs, made a major investment to lower housing costs by spurring more housing development, and expanded the Earned Income Tax Credit (EITC) to provide an economic boost to working families and reduce childhood poverty. The Budget builds on these efforts by adding new proposals to address the affordability of health care and housing, support the increase in the state's minimum wage to $13 per hour, and make bold steps to promote opportunity from cradle to career. The Budget continues to tackle two persistent problems facing California: risks caused by climate change, including wildfires, and providing safe, reliable, affordable, and clean energy given the climate change impacts on utilities; and the increase in people living on the streets that affects communities throughout the state. Building on an investment of $1 billion last year, the Budget tackles the root causes of homelessness with new approaches to expand affordable and supportive housing and to improve the state’s behavioral health system. The Budget also promotes effective government by enhancing California’s ability to prevent and respond to emergencies, and continues critical work to bring government services into the digital age, including enhancing California’s ability to prevent and respond to cyber threats. STRONG FOUNDATION, BUT INTENSIFIED RISKS Now in its eleventh year, the nation's economic expansion marks the longest period of sustained growth since World War II. However, this expansion is occurring in the context of slowing global growth and growing uncertainty regarding the political climate and federal policies. State revenue growth is projected to be slower in each of the next four years compared to 2019-20, constraining new spending commitments. In 2019, the state enacted a budget that committed the bulk of available resources to build reserves and pay down budgetary debts and unfunded liabilities. As a result, California is in a stronger fiscal position, with robust reserves. The state is prepared for an economic downturn with reserves of $21 billion. Even with these reserves, managing a recession will be challenging, as even a moderate recession could result in revenue declines of nearly $70 billion and a budget deficit of over $40 billion over three years. 2 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg INTRODUCTION To promote a more effective government that is able to withstand a slowing economy, the 2019 Budget Act was structurally balanced in each fiscal year through 2022-23. This was accomplished in part with statutory provisions to suspend nearly $2 billion in programmatic expansions on December 31, 2021. While the state is currently projected to have reserves to cover the suspended programs through 2023-24, significant risks to the forecast remain. To maintain structural balance through 2023-24, the Budget proposes to continue the suspensions added by the 2019 Budget Act, but delays them by 18 months until July 1, 2023. The forecast assumes federal approval of the Managed Care Organization tax authorized in Chapter 348, Statutes of 2019 (AB 115) with revenues beginning to accrue in 2021-22. With these revenues, the Budget is projected to remain structurally balanced through 2023-24. In this Budget, as with last year’s, the majority of the surplus is devoted to one-time spending. This approach enables the state to make significant investments in critical areas while also maintaining reserves. GOVERNOR'S BUDGET SUMMARY — 2020-21 3 INTRODUCTION Version number CQ2DDvMG2BB5g7vg ADDRESSING THE AFFORDABILITY CRISIS HEALTH CARE COST CONTAINMENT California continues to be a national leader in health care, but more needs to be done to advance health care affordability and universal access to health care for all Californians. The 2019 Budget Act reduced health care costs for individuals and families by stabilizing the individual insurance market, saving money on prescription drugs, and adding subsidies for more middle-class Californians. This year, the Administration will pursue new initiatives to increase price transparency, address hospital cost trends by region with a particular focus on increases driven by consolidation, and reduce unnecessary administrative costs by increasing the use of technology and value-based reimbursements. In these efforts, the Administration will focus on returning cost savings to consumers and employers. The Administration will also strengthen California's existing public option for health insurance to promote choice and affordability. The Budget continues work to reduce prescription drug costs for taxpayers, employers, and consumers by expanding the state's ability to consider the best prices offered by manufacturers internationally, negotiate additional supplemental rebates, and increase the state's purchasing program to further consolidate the state's purchasing power. This spring the Administration will propose to establish a single market for drug pricing within the state, as well as the state's own generic drug label. The Budget also expands full-scope Medi-Cal coverage to low-income undocumented Californians aged 65 and above. This investment moves the state towards universal coverage, which will further the state's cost containment goals. HEALTHIER CALIFORNIA FOR ALL The Budget proposes to transform Medi-Cal to achieve a healthier California with the Medi-Cal Healthier California for All initiative. It is designed to move Medi-Cal to a more consistent and seamless system by reducing complexity and increasing flexibility, identifying and managing member risk and needs through enhanced care, and addressing social determinants of health. In its last federal demonstration waiver, the state piloted a whole person care approach to better integrate services and treatment, and more effectively address social determinants of health. Medi-Cal Healthier California for All will build on that progress by pursuing structural changes to the state’s behavioral health delivery system and expanding statewide wraparound services, such as housing and social services. The initiative will also make additional investments in prevention through incentives to 4 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg INTRODUCTION provide a broader range of services including preventive dental care. These steps will position the state's Medi-Cal system to better connect individuals—including children and youth in foster care, individuals experiencing homelessness, individuals with substance use disorders, and individuals involved in the justice system—to the services they need. The Budget also includes funding to support counties in implementing the changes necessary for transformation of the county-run behavioral health and substance use disorder systems. HOUSING After decades of underproduction, Californians continue to face a staggering housing crisis. The 2019 Budget Act included $1.75 billion to increase housing supply, including funding to local governments for planning and infrastructure, an investment in the state's housing loan program, and an expansion of state housing tax credits. The Administration also launched an effort to reuse excess state properties for innovative housing projects and worked to leverage additional capital from the private sector to build more housing. The Budget authorizes $500 million annually for the state's housing tax credit program. It continues to support the Administration's efforts to spur housing development by significantly increasing the number of excess state properties used for housing development, pursuing additional capital from the private sector for housing development, and revamping the state's regional housing goals. In addition, the Administration is streamlining state processes to accelerate housing production. The Administration is also committed to working with the Legislature on additional actions to expedite housing production, including changes to local zoning and permitting processes, as well as adding predictability and reducing the costs of development fees. Last year, the state passed the strongest renter protections in the nation, which addresses two key causes of the housing crisis: price gouging and evictions. Beginning January 1, 2020, annual rent increases may not exceed 5 percent, plus inflation, and renters are protected from discriminatory and retaliatory evictions without cause. Finally, the Administration continues work in accordance with Chapter 669, Statutes of 2019 (SB 113) to establish a trust with $331 million that will provide borrower relief and support housing counselors or other legal aid agencies in representing homeowners and renters in housing-related matters. GOVERNOR'S BUDGET SUMMARY — 2020-21 5 INTRODUCTION Version number CQ2DDvMG2BB5g7vg PROMOTING OPPORTUNITY EARLY CHILDHOOD Over the long term, the Administration is committed to building a universal preschool system and a comprehensive, quality, and affordable child care system for California. To this end, the Administration is continuing development of a Master Plan for Early Learning and Care that will provide a roadmap for implementing this commitment. The Plan will be completed by October 1, 2020. The Budget builds on the historic investments made last year to expand access to child care, preschool and full-day kindergarten, with funding for 10,000 additional full day/full year preschool slots, moving the state closer to its goal of universal preschool for all income-eligible four-year-olds. Reducing childhood poverty and health disparities is critical to improving outcomes for children. The Budget builds on major investments made last year to expand the EITC and increase California Work Opportunity and Responsibility to Kids (CalWORKs) grants by increasing the amount of child support payments retained by families on CalWORKs. The Budget also proposes to develop a new adverse childhood experiences cross-sector training program with the goal of reducing adverse childhood experiences and toxic stress by half in a generation. The 2019 Budget Act expanded the Paid Family Leave benefit duration from six to eight weeks—moving two-thirds towards the goal of six months of paid family leave for two parents to bond with a new child. The Budget builds on this expansion by proposing to extend job protections to more employees, thereby expanding the number of families that can take advantage of this benefit. Finally, the Administration is proposing to establish a new Department of Early Childhood Development under the Health and Human Services Agency effective July 1, 2021. This new department will better position the state to implement recommendations from the Master Plan for Early Learning and Care, and allow for better integration of services and outcomes for children in child care and other health and human services programs. K-12 EDUCATION The Budget proposes a historic level of funding for K-12 schools. Per pupil funding has grown by more than $7,200 since its low point in 2011-12 and achievement gaps are closing for many students. Since the implementation of the Local Control Funding Formula, new standards, and the new accountability system, the state has seen some of the nation's steepest gains in reading and math, and achievement gaps are starting 6 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg INTRODUCTION to close for low-income children and children who enter school as English learners. However, achievement gaps are not closing broadly for students with disabilities and African American students. To further strengthen the state's accountability system, the Administration is proposing additional changes to the Local Control Accountability Plan to improve transparency of how funds are expended for high-need student groups, and to require local educational agencies to identify actions and spending that did not occur as planned. The state has a well documented, long-term, statewide teacher shortage in the areas of special education, science, and math. Certain regions of the state, including rural and high cost-of-living areas, have been more heavily impacted than others and report difficulty hiring fully credentialed teachers regardless of subject matter area. Recent studies link poor student outcomes directly to a high proportion of un-credentialed and underprepared teachers, especially in high-poverty schools. Most African American students are concentrated in only 23 districts and are in the highest poverty schools where there are fewer experienced teachers. To improve the number of prepared teachers in the state's high-poverty schools, the Budget proposes an investment of approximately $900 million in teacher training, including professional development, educator service awards, and teacher residency programs. These investments will increase and improve the teacher workforce, which is foundational to improving student outcomes. The 2019 Budget Act began a multi-year effort to reform the special education system to improve outcomes and incentivize inclusive models, prevention, and early intervention. The Budget builds on the new base rate funding provided last year with an additional $250 million ongoing focused on early intervention. The teacher training investments will also focus on training for special education teachers, including early diagnosis of dyslexia. The Budget also includes $300 million one-time for grants and technical assistance to prepare and implement improvement plans at the state’s lowest-performing schools, and includes $300 million one-time for grants to develop community school models with innovative partnerships that support mental health and the whole child. To better prepare California students for high-technology careers, the Budget makes critical investments in computer science instruction, including teacher training. School nutrition programs play a critical role in supporting health outcomes for children. The Budget includes a 40-percent increase in state funding for school nutrition programs GOVERNOR'S BUDGET SUMMARY — 2020-21 7 INTRODUCTION Version number CQ2DDvMG2BB5g7vg to boost the quality of meals provided and to expand access. The Budget also includes $10 million for grants to foster innovative farm-to-school linkages that support sustainable agriculture and make more healthy foods available to school children. Local educational agencies will also continue to benefit from the massive $3.15 billion non-Proposition 98 General Fund payment made on their behalf to the California State Teachers' Retirement System (CalSTRS) and the California Public Employees' Retirement System (CalPERS) Schools Pool. An estimated $850 million is buying down the employer contribution rates in 2019-20 and 2020-21 and the remaining $2.3 billion is being paid toward long-term unfunded liabilities. Overall, these payments are expected to save schools $6.9 billion over the next three decades. HIGHER EDUCATION Higher education continues to be a driving force of innovation in California’s economy. However, the state's colleges and universities must continue to evolve and adapt to the changing needs of the state's economy. Further innovation and integration is needed across the state’s higher education system to strengthen occupational pathways that also improve students' social and economic mobility. The 2019 Budget Act included major investments in higher education that provided two years of tuition-free community college and increased enrollment and investments to improve student success across all segments. The Budget further expands enrollment, increases student supports, and encourages degree completion through innovative delivery methods, including University Extension centers. JOBS, THE ECONOMY, AND PROTECTING THE ENVIRONMENT More businesses start in California than anywhere in the United States, including many green technology businesses. Many of California's businesses become industry leaders. This is a direct result of the state’s world-class colleges and universities, state-of-the-art laboratories, talented workforce, and commitment to combatting climate change. Further, the state continues to move towards a $15 per hour minimum wage by 2023. The Budget reflects the next $1 increase in the state's minimum wage, bringing it to $13 per hour for most employees on January 1, 2020. Income inequality persists and prosperity is not shared by all regions of the state. Last year, the Governor established the Future of Work Commission to create inclusive, long-term economic growth so that workers and their families share in the state's prosperity. The Commission is examining ways to broaden opportunity, better prepare 8 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg INTRODUCTION the state's workforce, modernize worker safety net protections, and preserve good jobs. The Commission will bring forward a set of recommendations later this spring. Rapid advancements in technology, automation, and artificial intelligence are reshaping the economy and the nature of work, and the state needs to better align data, policy, and program analysis for the state's workforce training programs. The Budget includes funding to establish a new Department of Better Jobs and Higher Wages to consolidate the workforce functions currently dispersed across the Labor and Workforce Development Agency. In recognition of the important role that small businesses play in the creation of jobs and regional economic development, the Budget also proposes to reduce the minimum franchise tax for small businesses, removing a barrier to entrepreneurship and job creation. The Budget proposes major investments in Inland California communities that face higher unemployment and create fewer jobs in high-wage sectors. The Budget allocates additional ongoing funding to expand enrollment and increase operational support for the UC Riverside School of Medicine and to expand the UC San Francisco School of Medicine Fresno Branch Campus in partnership with UC Merced. The Budget also includes funding for a major new food innovation corridor in the Central Valley. This collaboration between academic institutions and industry will spur economic development in a region of the state that for decades has faced nearly double the unemployment rate of the entire state. The Budget proposes a comprehensive approach to California’s investments to protect the state’s environment, address the effects of climate change, and promote resiliency. This Climate Budget includes $12 billion over the next five years. Three key areas of the Climate Budget are a proposed climate resilience bond, Cap and Trade expenditures to continue the transition to a carbon-neutral economy, and a new Climate Catalyst Fund to promote the deployment of new technologies, especially by small businesses and emerging industries. The Climate Catalyst Fund, which will be administered by the Infrastructure and Economic Development Bank, will finance investments in low-carbon transportation, sustainable agriculture, and waste diversion through low-interest loans. The Budget proposes to capitalize the Fund with $1 billion General Fund over the next four years. The Fund will have a revolving loan structure that will leverage private capital and will support projects well into the future. It will be designed to support good jobs and a just transition to achieving California's climate goals. GOVERNOR'S BUDGET SUMMARY — 2020-21 9 INTRODUCTION Version number CQ2DDvMG2BB5g7vg Finally, the Budget allocates $53 billion to the state's infrastructure over the next five years, focusing on investments that underpin economic activity and create a sustainable and resilient California. CRIMINAL JUSTICE The Budget continues recent significant progress in creating a more effective, rational, and equitable criminal justice system. As a result of Public Safety Realignment in 2011, Propositions 47 and 57, and other efforts, California has significantly reduced its prison population. At the same time, it has created more incentives for inmates to participate in rehabilitation programs. If population trends hold, the Administration plans to end private prison contracts for male inmates this year, to phase out public prison contracts thereafter, and to close a state-operated prison within five years. The Budget builds on important steps taken last year, including shifting juvenile justice to focus on rehabilitation and reentry, investing in restorative justice, community-based violence prevention, substance use disorder treatment, prison literacy, and pretrial diversion. The Budget proposes to continue expansion of opportunities for rehabilitation and treatment—starting with the youngest offenders in state prison. The Budget proposes to cluster the 5,800 young offenders (under age 26) into campus-style environments within existing facilities, with specialized programming and educational opportunities. The Budget also includes a major investment in technology for inmates participating in academic programs and expanded access to higher education programming through partnerships with the California State University system. A critical component of a well-functioning correctional system is a professional, well-trained workforce. Correctional officers and counselors play an especially important role in the rehabilitation efforts of inmates. The Budget includes a major proposal to enhance staff development through a new training facility and training program for correctional officers and counselors. The Budget also proposes evidence-based reform of the probation system that will include reducing probation terms to a two-year maximum and increasing supervision for specified misdemeanors. These changes will improve public safety and reduce further incarceration. Recognizing the financial hardship certain fines and fees have created for low-income individuals, the Budget includes resources to establish a statewide ability to pay program within the trial courts for both traffic and non-traffic infractions. 10 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg INTRODUCTION EMERGENCY RESPONSE AND EFFECTIVE GOVERNMENT EMERGENCY RESPONSE The 2019 Budget Act included nearly $1 billion to enhance the state's emergency response capabilities. The Budget builds on this foundation with investments that further strengthen California’s ability to prevent and respond to fires, and that provide the state’s first responders with additional capabilities and support. The Budget enhances the Department of Forestry and Fire Protection’s operational capabilities by adding firefighter surge capacity during peak fire season, increasing the number of year-round engines, and providing further relief coverage to support state firefighter health and wellness. The Budget also increases the use of technology by obtaining Light Detection and Ranging (LiDAR) data to better inform resources management and hazard assessment decisions, and establishes a new Wildfire Forecast and Threat Intelligence Integration Center to analyze data on wildfire risk. The Budget also devotes significant new resources to further improve cyber security. Building on recent initiatives, the Budget expands the California Cyber Security Integration Center and supports a full-time Joint Incident Response team for cyber threats. These investments offer additional protection in a time of growing cyber risks and enhance the state’s emergency capabilities across all areas. HOMELESSNESS CRISIS Homelessness is an issue that impacts both urban and rural communities throughout the state, and puts stress on public resources from emergency rooms to jails and public works departments. It is a complex social services problem and must be combatted at its root causes, which is why the Budget introduces several new strategies to build on the $1.15 billion provided to local governments in the last two budgets. The Budget proposes a radical shift in the state's involvement to house the many unsheltered persons living in California, by launching the California Access to Housing and Services Fund with a $750 million initial investment. This Fund will create a structure for developing affordable housing units, supplementing and augmenting rental subsidies, and stabilizing board and care homes. Funds will flow through contracts between the state and regional administrators and will be subject to a 10-percent administrative cap. These efforts will be coordinated with county services and designed to align to community needs. To the extent feasible, state funding will be coupled with the use of excess state properties to expedite availability of homelessness housing GOVERNOR'S BUDGET SUMMARY — 2020-21 11 INTRODUCTION Version number CQ2DDvMG2BB5g7vg capacity. The Administration is asking the Legislature to take early action to establish this Fund so investments can be deployed this summer. The changes proposed in the Medi-Cal Healthier California for All initiative will also contribute to addressing the homelessness crisis by transforming the Medi-Cal system to better serve individuals experiencing mental illness and homelessness. The Administration will also work to reform the state's behavioral health system, including changes to the Mental Health Services Act (Proposition 63) to better focus it on early intervention and people with mental illness who are also experiencing homelessness, or are involved in the criminal justice system, as well as strategies to strengthen enforcement of behavioral health parity laws. SAFE, RELIABLE, AFFORDABLE, AND CLEAN ENERGY Addressing the destabilizing effects of catastrophic wildfires on the state’s electric utilities has been a primary focus of the Administration, which took decisive action in 2019 to more effectively prevent and fight fires, partnered with the Legislature to enact Chapter 79, Statutes of 2019 (AB 1054)—wildfire safety and utility transformation legislation—and assumed a leadership role in the resolution of the Pacific Gas & Electric (PG&E) bankruptcy. These efforts have paid off, stabilizing Southern California Edison and San Diego Gas & Electric, supporting investments in hardening electricity transmission at a lower cost to ratepayers, and making California safer and more resilient. The state’s goals are clear. Californians must have access to safe, reliable, affordable, and clean energy. California must continue to make progress on the state’s climate change goals. And any resolution of the pending bankruptcy proceeding must fairly compensate victims, protect the workforce, and on average must be ratepayer neutral. After PG&E's decades of mismanagement and neglect of its critical infrastructure, failed efforts to improve its safety culture, and its disruptive implementation of public safety power shutoffs, the company that emerges from bankruptcy must be poised for transformation as required by AB 1054. The Budget reflects necessary support for the Administration's efforts to achieve the required transformation of PG&E within the bankruptcy process. However, if protecting Californians' interests and ensuring the necessary transformation requires further intervention, including a state takeover of the utility, the Administration will work with the Legislature to secure necessary statutory changes, appropriations to support transactional and planning costs, and liquidity measures. Consistent with the Administration's commitment to maintain a balanced 12 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg INTRODUCTION budget and strong fiscal resiliency, any such action would be carefully structured in a manner that safeguards the state's General Fund. EFFECTIVE GOVERNMENT The state continues to improve the way it delivers services and invests in technology. The 2019 Budget Act included a major investment in a new Office of Digital Innovation that is charged with revamping the way government delivers service to Californians. This includes driving a customer-focused culture and providing additional information technology training across state government. The Administration also continues major improvements at the Department of Motor Vehicles, including additional staffing and operational improvements to develop more mobile and online transaction capabilities and to make critical information technology improvements. The Budget also expands the Department of Business Oversight's authority and capacity to protect consumers and foster the responsible development of new financial products. It establishes a new California Consumer Financial Protection Law, modeled on the activities of the federal Consumer Financial Protection Bureau, to provide consumers with more protection against unfair, deceptive, and abusive practices when accessing financial services and products. BUILDING RESERVES AND REDUCING LIABILITIES BUDGETARY RESERVES The Budget continues to build additional reserves in the Budget Stabilization Account (commonly called the Rainy Day Fund). The Budget assumes an additional transfer of nearly $2 billion in 2020-21 and an additional $1.4 billion over the remainder of the three-year forecast period. The Rainy Day Fund balance is projected to be $18 billion in 2020-21 and $19.4 billion by 2023-24. The Budget maintains $900 million in the Safety Net Reserve, and also sets aside $110 million more in the Public School System Stabilization Account, bringing its total balance to $487 million. Finally, the Budget reserves $1.6 billion in the Special Fund for Economic Uncertainties to address emergencies and other unforeseen events. Overall, the Budget has $21 billion set aside in reserves. GOVERNOR'S BUDGET SUMMARY — 2020-21 13 INTRODUCTION Version number CQ2DDvMG2BB5g7vg PAYING DOWN UNFUNDED RETIREMENT LIABILITIES Maintaining the fiscal health of the state’s retirement systems is critical to ensuring the long-term security of the state’s retirement benefits. The Budget dedicates all constitutionally required Proposition 2 debt payments to pay down the state's retirement liabilities. Proposition 2, passed by the voters in 2014, requires minimum annual payments toward eligible debts until 2029-30 and annual deposits into the state's rainy day fund. Last year, the Budget set aside an additional $6 billion to pay down the state's share of unfunded liabilities within CalPERS and CalSTRS. This included an additional $3 billion General Fund above required Proposition 2 debt payments. These supplemental payments to CalPERS and CalSTRS are each expected to generate savings to the state of $7.4 billion over the next three decades. Even with these commitments, California continues to have considerable unfunded retirement liabilities. The Budget allocates the remaining required Proposition 2 debt payments to further reduce unfunded retirement liabilities, including $340 million towards retiree health and $817 million to repay the loan from the state's Surplus Money Investment Fund used to make a $6 billion supplemental payment to CalPERS authorized in 2017. Finally, under Proposition 2, an additional supplemental payment of $1.1 billion will be made to CalPERS in 2023-24. This additional payment to CalPERS will generate $2.3 billion in additional savings over the next three decades. 14 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg INTRODUCTION A STRONG FOUNDATION IS FUNDAMENTAL TO A CALIFORNIA FOR ALL Maintaining California’s fiscal health is an ongoing challenge, particularly given the state’s volatile revenue base and limited spending flexibility. As shown in the figure, balanced budgets have been followed quickly by huge deficits. The Budget demands constant attention to stay in balance—especially in light of the record length of the economic expansion and ongoing federal uncertainty. The Budget continues to prepare the state for an economic slowdown by building reserves. The Budget also makes strategic investments—mainly one-time—to expand opportunity, address affordability, and strengthen emergency preparedness and effective government. Building a strong fiscal foundation now is the best way the state can prepare for the future and continue to build a California for all. GOVERNOR'S BUDGET SUMMARY — 2020-21 15 SUMMARY CHARTS Version number CQ2DDvMG2BB5g7vg SUMMARY CHARTS T his section provides various statewide budget charts and tables. GOVERNOR'S BUDGET SUMMARY — 2020-21 17 SUMMARY 2020-21 Governor's Budget General Fund Budget Summary {Dollars in Millions} 2019-20 2020-21 Prior Year Balance $5.49? 55234 Revenues and Transfers $146,455 $151,535 Total Resources Available $154,953 $155,359 Non-Proposition 95 Expenditures $93, 344 $95,510 Proposition 98 Expenditures $56,405 Total Expenditures $149,?49 $153,083 Fund Balance 55,234 $3,785 Reserve for Liquidation of Encumbrances $2,145 $2,145 Special Fund for Economic Uncertainties $3,089 $1 ,641 Public School System Stabilization Account $524 $487 Safety Net Reserve 5900 $505 Budget Stabilization Accounthainy Day Fund $16,018 $17.97? 18 2020-21 SUMMARY General Fund Expenditures by Agency (Dollars in Millions) Change from 2019-20 Dollar Percent 2019-20 2020-21 Change Change Legislative. Judicial, Executive $5.909 $4.520 -$1.389 -23.5% Business, Consumer Services 8 Housing 1.465 348 -1.11?r Transportation 28? 240 -47 -1 6.4% Natural Resources 3.612 3.812 Environmental Protection 672 140 ?532 19.2% Health and Human Services 41.893 4T.454 5.561 13.3% Corrections and Rehabilitation 13.432 13.387 -45 03% K412 Education 58.675 59.639 964 1.6% Higher Education 1T.490 1?,509 19 0.1% Labor and Workforce Development 186 159 -14.5% Government Operations 1.839 1 .413 -426 232% General Government: Non-Agency Departments 1.025 98?r -38 Tax RelieffLocal Government 505 432 -T3 44.5% Statewide Expenditures 2.558 3.043 465 19.0% Total $149,749 $153,033 53,335 2.2% Note: Numbers mayf not add due to rounding. 2020-21 General Fund Expenditures [Dollors in Millions] Education ($59,639) 39.0% Corrections and ($13,387) Human Services 33% ($12,523) 8.2% 2020-21 Higher Education ($17,509) 11.4% Other ($11,282) 7.4% Natural Resources ($3.812) 2.5% Health {$34,926} 22. 3% 19 SUMMARY General Fund Revenue Sources [Dollors in Millions] Change from 2019-20 Dollar Percent 2019-20 2020-21 Change Che nge_ Personal Income Tax $101,682 $102,878 $1,196 1.2% Sales and Use Tax 27,185 25,243 1,055 3.9% Corporation Tax 15,305 16,00? ?02 4.6% Insurance Tax 3,023 3,117 94 3.1% Alcoholic Beverage Taxes and Fees 353 339 6 1.5% Cigarette Tax 50 53 -2 Motor Vehicle Fees 35 3B 3 8.5% Other 863 2,564 2,001 231 3% Subtotal $145,535 $153,594 $5,055 3.4% a1 Total $146,485 $151 ,535 $5,149 3.5% Note: Numbers may not add due to rounding. 20 2020-21 General Fund Revenues and Transfers? {Doliors in Millions) Sales and Use Tax {$28,243} 15.4% Other ($3.349) I 2.2% Personal Income Tax Corporation Tax ($102,878) ($15,007) 610% 10.4% Insurance Tax "Excludes $1,959 million transfer to Rainy Day Fund. 2.0% BUDGET SUMMARY 2020-21 SUMMARY 2020-21 Total State Expenditures by Agency [Dollars in Millions] General Special Bond Fund Funds Funds Totals Legislative, Judicial, Executive $4,520 $3,915 $554 $8,989 Business, Consumer Services 8: Housing 348 1,023 1,083 2,454 Transportation 240 17,828 828 18,896 Natural Resources 3,812 1,768 1,092 5,874 Environmental Protection 140 3,769 18 3,927 Health and Human Services 47,454 23,779 - 71,233 Corrections and Rehabilitation 13,387 3,130 - 18,517 K-12 Education 59,539 428 1,541 81,808 Higher Education 17,509 195 419 18,122 Labor and Won-(force Development 159 380 1,039 Government Operations 1,413 351 8 1,772 General Government: Non-Agency Departments 98? 1,858 8 2,851 Tax ReliefILccal Government 432 3,005 - 3,437 Statewide Expenditures 3.043 1,832 1 4,878 Total $153,083 $83,758 $5,352 $222,193 Note: Numbers may not add due to rounding. 2020-21 Total State Expenditures (Including Selected Bond Funds) [Dollars in Millions] Human Services Corrections and ($24,702) . Rehabilitation 11.1% . . 7.4% Health ($46,531) 20.9% K-12 Education ($61,608) 27.7% Transportation ($18,698) 8.4% Higher Education ($31513) {$13,122} 13.2% 32% 2020-21 21 SUMMARY 2020-21 Revenue Sources [Dollars in Millions] 22 General Special Change From Fund Funds Total 2019-20 Personal Income Tax $2,376 $105,254 $1,172 Sales and Use Tax 28,243 12,?52 40,995 1,540 Corporation Tax 16,007 - 16.00? T02 Highway:r Users Taxes 3,?94 8,794 415 Insurance Tax 3,117 - 3,117 94 Alcoholic Beverage Taxes and Fees 389 - 389 6 Cigarette Tax 58 1.938 1,996 -9 Motor Vehicle Fees 33 10,359 10,39? 391 Other 2,354 22,118 24,982 -1 .739 Subtotal $1 53,594 $58,337 $21 1 .931 572 Transfer to the Bud et Stabilization Accoun?Rainy Dangund ?1?959 1'95?; Total $151,635 $69,296 $211,931 $2.572 Note: Numbers mayr not add due to rounding. 2020-21 Total Revenues and Transfers (Dollars in Millions] Sales and Use Tax ($49,995) Other {$24,982} 11.8% 19.3% Alcoholic Beverage Taxes and Fees ($389) Corporation Tax Personal Income ($16,007) Tax 15% ($105,254) Cigarette Tax {If ($1.996) 1.0% Insurance Tax (33,11?) Highway Users Taxes Motor 1ll'ehicle Fees 1.5% ($3,294) ($10,397) 4.1% 4.9% SUMMARY 2020-21 Version number CQ2DDvMG2BB5g7vg HEALTH AND HUMAN SERVICES HEALTH AND HUMAN SERVICES T he Health and Human Services Agency oversees departments and state entities that provide health and social services to California’s most vulnerable and at-risk residents. The Budget includes $167.9 billion ($47.4 billion General Fund and $120.5 billion other funds) for all health and human services programs. The Budget supports a healthy California for all through important investments that integrate health and human services, promote person-centered, data-driven public programs and services, and improve the lives of California’s most vulnerable. The 2019 Budget Act assumed the suspension of various health and human services investments effective December 31, 2021. These suspensions include, but are not limited to, Proposition 56 supplemental payment increases, reversing the 7-percent reduction in In-Home Supportive Services hours, and Developmental Services payment increases. The Budget proposes to continue the suspensions added by the 2019 Budget Act, but delay them by 18 months until July 1, 2023. The Budget forecast assumes federal approval of the Managed Care Organization tax authorized in Chapter 348, Statutes of 2019 (AB 115) with revenue beginning to accrue in 2021-22. GOVERNOR'S BUDGET SUMMARY — 2020-21 23 HEALTH AND HUMAN SERVICES 24 Version number CQ2DDvMG2BB5g7vg GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg HEALTH AND HUMAN SERVICES MAKING HEALTH CARE AFFORDABLE The 2019 Budget Act made significant investments to expand coverage and increase the affordability of health care by: • Instituting a state individual mandate to stabilize the health insurance market; • Augmenting premium assistance for Covered California enrollees, making California the first state in the nation to provide additional state premium assistance for the middle class; • Extending Medi-Cal to income-eligible young adults regardless of immigration status; • Expanding eligibility for no-cost Medi-Cal for persons aged 65 and older and persons with disabilities up to 138 percent of the federal poverty level; • Restoring optional benefits and extending full-scope Medi-Cal coverage to new mothers with a maternal mental health diagnosis; • Expanding preventative services with a specific focus on screening for adverse childhood experiences; • Increasing Medi-Cal provider rates; • Repaying loans for doctors and dentists who agree to serve Medi-Cal patients in under-resourced parts of the state; and • Addressing the high costs of prescription drugs. These investments provide more Californians with coverage and strengthen the overall health care system by encouraging individuals to use preventative and primary care services. Keeping people covered and healthy slows the growth of the average Californian’s personal health care expenses. This year, the Budget proposes additional investments to continue this momentum on affordability and coverage in California’s health care system. Specifically, the Budget includes bold plans to address health care cost trends, strengthen California’s public option, lower prescription drug prices for all Californians, and continue progress towards universal health care. These efforts will focus on returning cost savings to consumers and employers and will align with the efforts of the Healthy California for All Commission, which is charged with exploring policy solutions that drive toward a unified health care system that is universal, affordable, high-quality, and equitable for all. GOVERNOR'S BUDGET SUMMARY — 2020-21 25 HEALTH AND HUMAN SERVICES Version number CQ2DDvMG2BB5g7vg Central to the success of making health care affordable are efforts to reduce administrative burdens and improve data interoperability. The Administration is committed to continuing to work with providers, health plans, and other stakeholders to make these improvements. OFFICE OF HEALTH CARE AFFORDABILITY Improving the affordability of private insurance will benefit millions of working Californians, and this endeavor must be accompanied by efforts to address underlying cost drivers. Given the size and complexity of California’s health care system, the Administration will propose the establishment of the Office of Health Care Affordability in spring 2020. This Office will be charged with increasing price and quality transparency, developing specific strategies and cost targets for the different sectors of the health care industry, and financial consequences for entities that fail to meet these targets. The ultimate goal is for savings to return to consumers who are directly impacted by increasing health care costs. The Office will also create strategies to address hospital cost trends by region, with a particular focus on cost increases driven by delivery system consolidation. To improve health outcomes, the Office will also work to establish standards to advance evidence-based and value-based payments to physicians, physician groups, and hospitals, as well as to advance administrative simplification. STRENGTHENING CALIFORNIA’S PUBLIC OPTION Since its inception in 2014, Covered California has provided the state with a public option by engaging in extensive vetting and negotiation with health insurance companies on premiums, networks, benefit design, and quality. As a result, 99.5 percent of individual market consumers have a choice of plans and some of the lowest premium increases in the nation. The state will leverage both Covered California and Medi-Cal to build an even more robust public option in California. The Health and Human Services Agency will develop options to strengthen enrollment, affordability, and choice through Covered California, including opportunities to leverage the statewide network of existing public Medi-Cal managed care plans. 26 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg HEALTH AND HUMAN SERVICES CONTINUING THE WORK TO REDUCE PRESCRIPTION DRUG COSTS High prescription drug costs are a national problem that impacts all patients and drives up the cost of health care for everyone. Absent federal action to address these rising costs, the state will use its market power to secure better prices from pharmaceutical manufacturers for taxpayers, employers, and consumers. In January 2019, Governor Newsom issued Executive Order N-01-19 to address increases in prescription drug costs, and the Department of Health Care Services began to transition pharmacy services from Medi-Cal managed care to a fee-for-service system. This transition will standardize the Medi-Cal pharmacy benefit statewide, improve the availability of pharmacy services with a pharmacy network that includes approximately 94 percent of the state’s pharmacies, and strengthen California’s ability to negotiate state supplemental drug rebates with drug manufacturers. The transition is estimated to result in hundreds of millions of dollars in annual General Fund savings by fiscal year 2022-23. The Budget includes three proposals to reduce drug costs for taxpayers, employers, and consumers: • Medi-Cal Best Price—Current law authorizes the Department of Health Care Services to negotiate state supplemental rebates based, in part, on the best prices that manufacturers provide to other purchasers within the United States. The Budget proposes to expand the Department’s authority to consider the best prices offered by manufacturers internationally when conducting negotiations for state supplemental rebates. • Rebates for Non-Medi-Cal Drug Purchases—Currently, the Department of Health Care Services receives federally mandated rebates and state-negotiated supplemental rebates from drug manufacturers for drugs purchased on behalf of Medi-Cal enrollees only. The Budget proposes to leverage the purchasing power of the Medi-Cal program to negotiate supplemental rebates on behalf of targeted populations outside the Medi-Cal program. • Increasing the State's Purchasing Program—The Department of General Services will continue expanding partnerships with local pharmaceutical purchasers to solicit participation in, and troubleshoot barriers to, the state’s pharmaceutical purchasing program. GOVERNOR'S BUDGET SUMMARY — 2020-21 27 HEALTH AND HUMAN SERVICES Version number CQ2DDvMG2BB5g7vg In the spring of 2020, the Administration will propose two additional initiatives in this area: • Golden State Drug Pricing Schedule—The Administration will propose to establish a single market for drug pricing within the state. This proposal would enable all purchasers—Medi-Cal, California Public Employees' Retirement System, Covered California, private insurers, self-insured employers, and others—to combine their purchasing power. Drug manufacturers would have to bid to sell their drugs—at a uniform price—in the California market. California would invoke a most-favored-nation clause in the manufacturer price bid, which would require manufacturers to offer prices at or below the price offered to any other state, nation, or global purchaser if they wish to sell their products in California. • Generic Contracting Program—The Administration will negotiate partnerships to establish the state’s own generic drug label. The state would contract with one or more generic drug manufacturers to manufacture certain generic drugs on behalf of the state and participating entities. This proposal will increase competition in the generic market, resulting in lower generic drug prices for all purchasers. COMBATTING THE YOUTH VAPING EPIDEMIC To address the rapidly increasing youth use of potent nicotine-based vaping products, the Budget proposes a new nicotine content-based E-cigarette tax. The vaping tax will begin on January 1, 2021, and will be $2 for each 40 milligrams of nicotine in the product. The new tax will be in addition to all existing taxes on E-cigarettes, which are presently taxed as tobacco products under state law. Revenues from the new tax are expected to be $32 million in 2020-21, and will be deposited into a new special fund to be used for administration, enforcement, youth prevention, and heath care workforce programs. The Budget includes $9.9 million and 10.5 positions for the Department of Tax and Fee Administration to administer the proposed tax and $7 million for the California Highway Patrol to establish a task force in collaboration with the Department of Justice dedicated to combatting the underground market in vaping products. Similar to the implementation of Proposition 56, the Administration anticipates proposing a spending plan for the remainder of the revenues in the 2021-22 Governor’s Budget. In addition to the tax, the Administration will support a statewide ban of all flavored nicotine products as of January 1, 2021. 28 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg HEALTH AND HUMAN SERVICES MAKING PROGRESS IN THE FIGHT AGAINST OPIOIDS In response to increasing rates of opioid overdose deaths, the California Department of Public Health convened the Statewide Opioid Safety Workgroup to coordinate activities of over 40 state agencies and community organizations. California is making progress in addressing the epidemic. Opioid prescriptions have dropped significantly, and Medi-Cal prescriptions for buprenorphine—one of the most effective treatment options for opioid use disorder—increased six-fold in the last five years. California’s opioid overdose death rate—one-third of the national average—is on a slower upward trend than the rest of the nation. The Budget continues efforts to combat opioid overdose through better prevention, early intervention, and treatment to stabilize conditions before they become severe. Specifically, the Budget includes $89.2 million in 2019-20 for the Medication Assisted Treatment Expansion Project, which has added over 650 access points across the health care and criminal justice systems. The Project's Naloxone Distribution Program, which aims to reduce opioid overdose through the provision of naloxone, helped reverse over 8,000 opioid overdoses as of October 2019. The Budget also includes $426 million ($62.6 million General Fund) to support the Drug Medi-Cal Organized Delivery System, which provides expanded substance use disorder treatment for Medi-Cal beneficiaries. HEALTH AND HUMAN SERVICES AGENCY DEPARTMENT OF EARLY CHILDHOOD DEVELOPMENT The Budget proposes to establish the Department of Early Childhood Development under the Agency to promote a high-quality, affordable, and unified early childhood system that improves program integration and coordination. For additional information, see the Early Childhood chapter. OFFICE OF THE SURGEON GENERAL The Budget includes $10 million one-time General Fund for the development of an adverse childhood experiences cross-sector training program that will be accredited by the Office of the Surgeon General, in addition to a statewide adverse childhood GOVERNOR'S BUDGET SUMMARY — 2020-21 29 HEALTH AND HUMAN SERVICES Version number CQ2DDvMG2BB5g7vg experiences public awareness campaign. See the Early Childhood chapter for more information. CENTER FOR DATA INSIGHTS AND INNOVATION The Budget proposes to consolidate existing resources to establish a Center for Data Insights and Innovation within the Agency. The Center will focus on leveraging data to develop knowledge and insights to improve program delivery and drive system transformation across health and human services. The Center will integrate the Office of Innovation, the Office of the Patient Advocate, and the Office of the Health Information Integrity to achieve the following outcomes: (1) improve the operational use and quality of integrated data for program planning, policy development, and rigorous research and evaluation; (2) increase the state's ability to create evidence-based programs and maximize federal reimbursements; (3) enhance the capacity of state staff to use linked data to inform policy and decision making; (4) increase collaboration between university-based researchers and state staff to translate data into knowledge; and (5) improve the rigor, transparency, and reproducibility of research with Agency data in order to create better services that generate more equitable outcomes for all Californians. BEHAVIORAL HEALTH The Administration is focused on improving outcomes for the state's behavioral health system through a number of initiatives that improve the integration and parity of behavioral health treatment with physical health. To further these efforts, the Administration is establishing the Behavioral Health Task Force at the Health and Human Services Agency. The Task Force will bring together relevant state departments, counties, consumers, health plans, providers, and other stakeholders. The Task Force will review existing policies and programs to improve the quality of care, and coordinate system transformation efforts to better prevent and respond to the impacts of mental illness and substance use disorders in California’s communities. As discussed later in this chapter, the Administration is proposing a new Medi-Cal Healthier California for All initiative to make Medi-Cal, including behavioral health benefits, a more consistent and seamless system. Further, the Health and Human Services Agency and the Department of Managed Health Care will be working with health plans, providers, patient representatives, and 30 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg HEALTH AND HUMAN SERVICES other parties to update and strengthen its enforcement of behavioral health parity laws and other health plan requirements. Enforcement efforts will focus on timely access to treatment, network adequacy, benefit design, and plan policies. The Administration will propose any updates to implement these efforts this spring. PROPOSITION 63—MENTAL HEALTH SERVICES ACT Proposition 63, also known as the Mental Health Services Act (MHSA), was approved by the voters in 2004 and imposes a 1-percent tax on personal income in excess of $1 million. Revenue generated under the Act primarily supports county mental health services. In 2018, audits determined there was insufficient action taken by the state to ensure that unspent MHSA funds were being recovered and reallocated under the statutory time frames. As a result, Chapter 328, Statutes of 2018 (SB 192) established a methodology for determining prudent county reserves of MHSA funds. Because of the change in methodology, it is estimated that counties currently have slightly more than $500 million in local reserves, of which $161 million must be shifted to mental health prevention and treatment services by June 30, 2020—a marked improvement from previous years. The MHSA has become a foundational element of California's mental health system in the 15 years since Proposition 63 was enacted. However, communities behavioral health needs have evolved during that time and the Act should be updated to reflect this knowledge. Currently, MHSA funds cannot be used for substance use disorder treatment. The Act should be updated to better focus on people with mental illness who are also experiencing homelessness, who are involved in the criminal justice system, and for early intervention for youth. The Administration will submit a proposal in the spring regarding this proposed reform. DEPARTMENT OF HEALTH CARE SERVICES Medi-Cal, California's Medicaid program, is administered by the Department of Health Care Services. Medi-Cal is a public health care program that provides comprehensive health care services at no or low cost for low-income individuals. The federal government mandates basic services be included in the program, including: physician services; family nurse practitioner services; nursing facility services; hospital inpatient and outpatient services; laboratory and radiology services; family planning; and early and periodic screening, diagnosis, and treatment services for children. In addition to these GOVERNOR'S BUDGET SUMMARY — 2020-21 31 HEALTH AND HUMAN SERVICES Version number CQ2DDvMG2BB5g7vg mandatory services, the state provides optional benefits such as outpatient drugs, dental services, home and community-based services, and medical equipment. The Department also operates the California Children’s Services and the Primary and Rural Health programs, and oversees county-operated community mental health and substance use disorder programs. The Medi-Cal budget is $105.2 billion ($23.6 billion General Fund) in 2019-20 and $107.4 billion ($26.4 billion General Fund) in 2020-21. The Budget assumes that caseload will decrease approximately 1.3 percent from 2018-19 to 2019-20 and increase approximately 0.4 percent from 2019-20 to 2020-21. Medi-Cal is projected to cover approximately 12.9 million Californians, approximately one-third of the state's population, in 2020-21. Chapter 348, Statutes of 2019 (AB 115) establishes a three-and-a-half year Managed Care Organization (MCO) provider tax, effective July 1, 2019. The federal government is currently reviewing the state’s proposed tax structure. The Budget reflects these revenues beginning in 2021-22. MEDI-CAL HEALTHIER CALIFORNIA FOR ALL Medi-Cal has significantly expanded and changed over the last ten years, in large part due to the federal Patient Protection and Affordable Care Act. Since implementing the Affordable Care Act, the Department has undertaken many initiatives and embarked on innovative demonstration projects to improve the beneficiary experience. Today, some Medi-Cal enrollees may need to access six or more separate delivery systems, including managed care, fee-for-service, mental health, substance use disorder, dental, developmental, and/or In Home Supportive Services. The need for care coordination increases with greater system fragmentation, greater clinical complexity, and/or decreased patient capacity for coordinating their own care. To improve clinical outcomes and assist beneficiaries with navigating this complex system, the Department is seeking to better coordinate between and integrate these delivery systems. To this end, the Department is launching a Medi-Cal Healthier California for All initiative (formerly known as CalAIM, or the California Advancing and Innovating Medi-Cal initiative), which builds upon the critical successes of waiver demonstration programs such as Whole Person Care, the Coordinated Care Initiative, Health Homes, and public hospital system delivery transformation. Medi-Cal Healthier California for All proposes to 32 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg HEALTH AND HUMAN SERVICES provide a wider array of services and supports for patients with complex and high needs. Medi-Cal Healthier California for All has three primary goals: • Identify and manage member risk and need through whole person care approaches and addressing social determinants of health; • Move Medi-Cal to a more consistent and seamless system by reducing complexity and increasing flexibility; and • Improve quality outcomes and drive delivery system transformation through value-based initiatives, modernization of systems, and payment reform. Transformation of the delivery system is necessary to improve outcomes for Medi-Cal beneficiaries as well as to achieve long-term cost avoidance. The reforms proposed through Medi-Cal Healthier California for All represent a comprehensive approach to achieving these goals. These changes will position the state to better connect individuals—including children and youth in foster care, individuals experiencing homelessness, individuals with substance use disorders, and individuals involved in the justice system—to the services they need. Attaining these goals will have significant impacts on an individual’s health and quality of life, and through iterative system transformation, ultimately reduce the per-capita cost over time. To implement the Medi-Cal Healthier California for All initiative effective January 1, 2021, the Budget includes $695 million ($348 million General Fund), growing to $1.4 billion ($695 million General Fund) in 2021-22 and 2022-23. This investment will provide for enhanced care management and in lieu of services, necessary infrastructure to expand whole person care approaches statewide, and build upon existing dental initiatives. Beginning in 2023-24, the Administration proposes to phase out infrastructure funding, resulting in ongoing cost of $790 million ($395 million General Fund). In addition, the Administration plans to submit a proposal in the spring for the state operations component of implementing the new Medi-Cal Healthier California for All initiative. The Budget includes a placeholder of $40 million ($20 million General Fund) for these costs. In alignment with the Medi-Cal Healthier California for All initiative, the Budget includes $45.1 million General Fund in 2020-21 and $42 million General Fund in 2021-22 for the Department to implement a Behavioral Health Quality Improvement Program. This will provide funding to county-operated community mental health and substance use disorder systems to incentivize system changes and process improvements that will help counties prepare for opportunities through the Medi-Cal Healthier California for All GOVERNOR'S BUDGET SUMMARY — 2020-21 33 HEALTH AND HUMAN SERVICES Version number CQ2DDvMG2BB5g7vg initiative. Improvements include enhanced data-sharing capability for care coordination and establishing the foundational elements of value-based payment such as data collection, performance measurement, and reporting. These core investments build off the $70 million in the 2019 Budget Act to provide value-based provider payments for services and projects focused on behavioral health integration. EXPANDING COVERAGE AND BENEFITS Since the implementation of the Affordable Care Act, the percentage of Californians who are uninsured has dropped by more than half, to 7.2 percent. Last year, the state expanded eligibility for no-cost Medi-Cal for eligible persons age 65 and older and persons with disabilities up to 138 percent of the federal poverty level, and to otherwise eligible undocumented young adults through age 25. The 2019 Budget Act also restored optional benefits—including audiology and speech therapy services, podiatric services, optical lab and optician services, and incontinence cream/washes—and extended full-scope Medi-Cal coverage to new mothers with a maternal mental health diagnosis. The Budget proposes to make additional progress towards universal coverage by expanding eligibility for full-scope Medi-Cal benefits to all persons aged 65 years and older, regardless of immigration status, no sooner than January 1, 2021. This proposal builds upon the children's Medi-Cal expansion under Chapter 18, Statutes of 2015 (SB 75), and the young adult Medi-Cal expansion under Chapter 67, Statutes of 2019 (SB 104). The Budget includes $80.5 million ($64.2 million General Fund) for this expansion, including In-Home Supportive Services costs. It is anticipated that most undocumented persons aged 65 and older who will be eligible are already receiving federally required coverage for emergency care. This expansion will provide preventative care to an estimated 27,000 undocumented persons in the first year. Full implementation costs are projected to be approximately $350 million ($320 million General Fund) in 2022-23 and ongoing. REFORMING NURSING FACILITY FINANCING Currently, the state provides annual cost-based increases and quality incentive payments to nursing facilities, funded partially by a Quality Assurance Fee equivalent to 6 percent of facility revenues. The resulting revenue draws down additional federal funding. 34 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg HEALTH AND HUMAN SERVICES The existing framework, authorized initially in 2004 and last extended in 2015, sunsets on July 31, 2020. The Budget proposes to reform the funding framework to move from a primarily cost-based methodology to one that better incentivizes value and quality. The intent of these reforms is to further enable nursing facilities to invest in quality patient care while assuring the long-term financial viability of these essential Medi-Cal providers. Other Significant Adjustments: • 2019-20 Budget—The Budget includes decreased expenditures in the Medi-Cal program of approximately $91.7 million General Fund compared to the 2019 Budget Act. The majority of the current year decrease results from lower-than expected managed care and fee-for-service costs, and one-time reconciliations for activity in several prior fiscal years. • Drug Rebate Fund Reserve—The Budget allocates $181 million to the Medi-Cal Drug Rebate Fund reserve. This reserve is intended to alleviate the General Fund impact related to drug rebate volatility. • Hearing Aids for Children—The Budget proposes to create a state program to assist families with the cost of hearing aids and related services for children without health insurance coverage for hearing aids in households with incomes up to 600 percent of the federal poverty level. • Medi-Cal Rx (Pharmacy Carve-Out)—The Budget includes savings of $178.3 million ($69.5 million General Fund) associated with the carve-out of the Medi-Cal pharmacy benefit from managed care to fee-for-service effective January 1, 2021. • Supplemental Payment Pool for Non-Hospital 340B Clinics—The Budget proposes the creation of a new supplemental payment pool that would provide payments to non-hospital clinics for 340B pharmacy services. This proposal is linked to the Medi-Cal Rx initiative. The Budget includes $52.5 million ($26.3 million General Fund) for the program, assuming a January 1, 2021 implementation date. • County Administration—The Budget includes an increase of $67.7 million ($23.7 General Fund) for county eligibility determination activities based on growth in the California Consumer Price Index. GOVERNOR'S BUDGET SUMMARY — 2020-21 35 HEALTH AND HUMAN SERVICES Version number CQ2DDvMG2BB5g7vg DEPARTMENT OF SOCIAL SERVICES The Department of Social Services (DSS) serves, aids, and protects needy and vulnerable children and adults in ways that strengthen and preserve families, encourage personal responsibility, and foster independence. The Department’s major programs include CalWORKs, CalFresh, In-Home Supportive Services (IHSS), Supplemental Security Income/State Supplementary Payment (SSI/SSP), Child Welfare Services, Community Care Licensing, and Disability Determination. The Budget includes $29.5 billion ($11.7 billion General Fund) for DSS programs in 2020-21. Consistent with core government functions being performed by public employees, counties administer core social services programs on behalf of the state. Funding to support the administration of these programs has been systematically reviewed and adjusted over the past decade to reflect program changes and increased costs. The Administration is committed to continuing to work with the counties and the County Welfare Directors Association to make further adjustments, as needed. Significant Adjustments: • California Access to Housing and Services Fund—The Budget provides $750 million one-time General Fund to establish a new fund, with the goal of reducing street-based homelessness and increasing the number of stable housing units. See the Homelessness chapter for additional information. • CalFresh Application Assistance—The Budget includes $5 million General Fund annually to maintain the GetCalFresh.org website, a statewide online application assistance tool that provides a streamlined application experience and allows clients to apply on multiple platforms. The website will be maintained until a CalSAWS statewide portal becomes operational and offers the same level of client service and language access. • CalFresh Administration Budgeting Methodology—The Budget holds CalFresh county administration funding in 2020-21 to the 2019-20 level, resulting in increased costs of $26.9 million General Fund. The Administration will continue to work with representatives of counties and the County Welfare Directors Association of California to develop recommendations for a new budgeting methodology to determine the annual funding level necessary to support CalFresh administration, with the goal of proposing the new methodology in the May Revision. 36 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg HEALTH AND HUMAN SERVICES • Food Banks—The Budget includes $20 million one-time General Fund for existing Emergency Food Assistance Program providers and food banks to support increased food purchases to partially mitigate the loss of CalFresh benefits due to federal rule changes. • CalWORKs and CalFresh Program Improvement—The Budget includes $3 million ($1.3 million General Fund) to support increased staffing resources at DSS for the CalWORKs and CalFresh programs to improve program outcomes, services, administration, and oversight. CALIFORNIA WORK OPPORTUNITY AND RESPONSIBILITY TO KIDS The CalWORKs program, California’s version of the federal Temporary Assistance for Needy Families (TANF) program, provides temporary cash assistance to low-income families with children to meet basic needs. It also provides welfare-to-work services so that families may become self-sufficient. Eligibility requirements and benefit levels are established by the state. Counties have flexibility in program design, services, and funding to meet local needs. Total TANF expenditures are $8.3 billion (state, local, and federal funds) in 2020-21. The amount budgeted includes $5.7 billion for CalWORKs program expenditures and $2.6 billion in other programs. Other programs include expenditures for Child Care, Child Welfare Services, Foster Care, Department of Developmental Services programs, the Statewide Automated Welfare System, Work Incentive Nutritional Supplement, California Community Colleges Child Care and Education Services, Cal Grants, and the Department of Child Support Services. Average monthly CalWORKs caseload is estimated to be approximately 358,000 families in 2020-21, a 1.4-percent decrease from the revised 2019-20 projection. Due largely to an improving economy, caseload has decreased every year from a recent peak of 587,000 in 2010-11. Other Significant Adjustments: • CalWORKs Grant Increase—As referenced in the Early Childhood chapter, the Budget reflects a 3.1-percent increase to CalWORKs Maximum Aid Payment levels, effective October 1, 2020, which is estimated to cost $73.6 million in 2020-21 and $98.1 million in 2021-22. These increased grant costs are funded entirely by the Child Poverty and Family Supplemental Support Subaccounts of the Local Revenue Fund. GOVERNOR'S BUDGET SUMMARY — 2020-21 37 HEALTH AND HUMAN SERVICES Version number CQ2DDvMG2BB5g7vg • County Indigent Health Savings—The Budget reflects $589.8 million in projected county indigent health savings in 2020-21 to offset General Fund costs in the CalWORKs program, a decrease of $13.1 million from 2019-20. This decrease is more than offset by additional indigent health net savings of $301.3 million available from 2017-18. IN-HOME SUPPORTIVE SERVICES The IHSS program provides domestic and related services such as housework, transportation, and personal care services to eligible low-income aged, blind, and disabled persons. These services are provided to assist individuals to remain safely in their homes and prevent more costly institutionalization. The Budget includes $14.9 billion ($5.2 billion General Fund) for the IHSS program in 2020-21, a 16-percent increase in General Fund costs over the revised 2019-20 level. Average monthly caseload in this program is estimated to be 586,000 recipients in 2020-21, a 4.5-percent increase from the revised 2019-20 projection. Other Significant Adjustments: • Minimum Wage—The Budget reflects $1.1 billion ($523.8 million General Fund) to support planned minimum wage increases of $13 per hour on January 1, 2020 and $14 per hour on January 1, 2021. • Full-Scope Medi-Cal Expansion for Undocumented Persons Aged 65 and Over—The Budget includes $5.9 million General Fund in 2020-21, growing to $119.5 million General Fund in 2021-22, to support increased IHSS costs associated with the proposed expansion of full-scope Medi-Cal coverage for undocumented persons 65 years of age or older, beginning January 1, 2021. See the Department of Health Care Services section for more information. • Training for County Social Workers and Managers—The Budget includes $3.7 million ($1.9 million General Fund) in 2020-21 and $240,000 ($120,000 General Fund) ongoing to support additional training for county social workers and managers in conducting needs assessments for IHSS recipients to promote consistency across all counties with respect to program requirements. 38 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg HEALTH AND HUMAN SERVICES SUPPLEMENTAL SECURITY INCOME/STATE SUPPLEMENTARY PAYMENT (SSI/SSP) The federal SSI program provides a monthly cash benefit to eligible aged, blind, and disabled persons who meet the program’s income and resource requirements. In California, the SSI payment is augmented with an SSP grant. These cash grants assist recipients with basic needs and living expenses. The federal Social Security Administration administers the SSI/SSP program, making eligibility determinations, computing grants, and issuing combined monthly checks to recipients. The state-only Cash Assistance Program for Immigrants (CAPI) provides monthly cash benefits to aged, blind, and disabled legal noncitizens who are ineligible for SSI/SSP due solely to their immigration status. The Budget includes $2.66 billion General Fund in 2020-21 for the SSI/SSP program. This represents a 1.6-percent decrease from the revised 2019-20 budget. The average monthly caseload in this program is estimated to be 1.18 million recipients in 2020-21, a 1.8-percent decrease from the 2019-20 projection. The SSI/SSP caseload consists of 69.4 percent disabled persons, 29.3 percent aged, and 1.4 percent blind. Effective January 2020, the maximum SSI/SSP grant levels are $943 per month for individuals and $1,583 per month for couples. The projected growth in the Consumer Price Index is 1.7 percent for 2021. As a result, the maximum SSI/SSP monthly grant levels will increase by approximately $13 and $20 for individuals and couples, respectively, effective January 2021. CAPI benefits are equivalent to SSI/SSP benefits. The 2019 Budget Act included $25 million General Fund ongoing to assist homeless, disabled individuals applying for SSI/SSP benefits. CHILDREN’S PROGRAMS Child Welfare Services include family support and maltreatment prevention services, child protective services, foster care services, and adoptions. California's child welfare system provides a continuum of services to children who are either at risk of or have suffered abuse and neglect. Program success is measured in terms of improving the safety, permanence, and well-being of children and families served. The Budget includes $598.9 million General Fund in 2020-21 for services to children and families in these programs, an increase of $38.9 million General Fund, or 6.9 percent, over the 2019 Budget Act. When federal and 1991 and 2011 Realignment funds are included, total funding for children’s programs is over $6.4 billion in 2020-21. GOVERNOR'S BUDGET SUMMARY — 2020-21 39 HEALTH AND HUMAN SERVICES Version number CQ2DDvMG2BB5g7vg In 2017, California began implementation of the Continuum of Care Reform (CCR), as enacted in Chapter 772, Statutes of 2015 (AB 403). The reforms emphasize home-based family care, improved service delivery, and increased the role of children and families in assessment and case planning. The reforms also provide for greater coordination of child welfare and mental health services. The Budget includes $548.6 million ($373 million General Fund) to continue implementation of CCR. Since CCR efforts began, the number of California youth in congregate care settings has fallen from 5,500 to roughly 3,500 today, a decline of nearly 40 percent. Counties are accelerating approvals of home-based family care settings for children, and the number of resource families, intensive services foster care, and therapeutic foster care settings is increasing, as is the licensed capacity of short-term residential therapeutic programs. Other Significant Adjustments: • Child Welfare Workforce Development—The Budget includes $11 million ($5.6 million General Fund) to establish an additional child welfare social workers regional training academy in northern California (bringing the statewide total to five academies), increase ongoing training for social workers and supervisors, assess training effectiveness, and modernize how social worker training is monitored and used to inform workforce development planning. • California Automated Response and Engagement System—The Budget includes $54.4 million ($27.2 million General Fund) to reflect updated project cost estimates, an increase of $14.2 million General Fund compared to the 2019 Budget Act. IMMIGRATION SERVICES The Department of Social Services funds qualified nonprofit organizations to provide immigration services to immigrants who reside in California via the unaccompanied undocumented minors and Immigration Services Funding programs. The Budget continues to include $65 million General Fund in 2020-21 and ongoing for immigration services. In November 2019, $5 million appropriated in the 2018 Budget Act was made available for Deferred Action for Childhood Arrivals (DACA) Legal Services. This funding, provided to qualified contractors, supports legal services, application-filing fees, and education and outreach services for individuals needing to renew their DACA immigration status. The Administration continues to monitor litigation regarding the DACA program. 40 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg HEALTH AND HUMAN SERVICES Other Significant Adjustments: • California Newcomer Education and Well-Being Project—The Budget includes $15 million one-time Proposition 98 General Fund for the California Newcomer Education and Well-Being Project (CalNEW). CalNEW was established in 2017-18 to assist school districts in improving refugee and unaccompanied undocumented minors students' well-being, English-language proficiency, and academic performance. The funding, which is available over three years, will also provide school-based supports to immigrant families to address harms caused by the federal “public charge” rule. • Immigration Legal Services on Community College Campuses—As referenced in the Higher Education chapter, the Budget includes $10 million ongoing Proposition 98 General Fund for California Community College campuses to support the provision of immigration legal services. • Social Entrepreneurs for Economic Development Initiative—The Budget includes $10 million one-time General Fund for the California Workforce Development Board to launch the Social Entrepreneurs for Economic Development Initiative to provide micro-grants and entrepreneurial training to immigrants. • Dreamer Resource Liaisons—As referenced in the Higher Education chapter, the Budget includes an increase of $5.8 million ongoing Proposition 98 General Fund to fund Dreamer Resource Liaisons and student support services, including those related to career pathways and economic mobility, for immigrant students on community colleges, pursuant to Chapter 788, Statutes of 2019 (AB 1645). DEPARTMENT OF DEVELOPMENTAL SERVICES The Department of Developmental Services (DDS) provides individuals with developmental disabilities a variety of services that allow them to live and work independently or in supported environments. California is the only state that provides services to individuals with developmental disabilities as an entitlement. The Budget includes $9.2 billion ($5.7 billion General Fund) and estimates that approximately 369,000 individuals will receive developmental services by the end of 2020-21. REFORMING THE FINANCING OF DEVELOPMENTAL SERVICES The Budget proposes additional investments in developmental services and establishes a Developmental Services Performance Incentive Program. During the past ten years, GOVERNOR'S BUDGET SUMMARY — 2020-21 41 HEALTH AND HUMAN SERVICES Version number CQ2DDvMG2BB5g7vg the composition of regional center consumers has significantly changed. Today’s consumers have more significant behavioral and healthcare needs, and have shifted in age and ethnicity. Specifically, behavioral health needs have grown by 48 percent, while those with an autism spectrum diagnosis have grown by 177 percent. DDS, in collaboration with the Developmental Services Task Force and other stakeholders, will make recommendations on how to reform the financing and streamlining of the developmental services delivery system to improve the quality of services delivered. This requires establishing a system that prioritizes outcomes, innovation, and value, which is driven by a funding structure that provides transparency, oversight, and accountability. DEVELOPMENTAL SERVICES PERFORMANCE INCENTIVE PROGRAM The Budget includes $78 million ($60 million General Fund) to establish a Performance Incentive Program for Developmental Services administered through the Regional Center system. The program will provide incentive payments to Regional Centers to increase the quality of services and addressing disparities while improving data collection to demonstrate value. The Performance Incentive Program is intended to align with each Regional Center’s performance contract, but will require Regional Centers to meet an advanced tier of performance measures to receive additional payments. The goals of the program are: (1) focusing on a quality system that values personal outcome goals for people, such as an improved life or meaningful activities; (2) developing service options to better meet the needs of individuals and families in a person–centered way; (3) promoting the most integrated community settings; and (4) increasing the number of individuals who are competitively employed. STATE-OPERATED FACILITIES In 2015, the state announced the planned closure of the three remaining developmental centers: Sonoma, Fairview, and the general treatment area of Porterville. The last residents at Fairview and the Porterville general treatment area are transitioning to the community in January 2020. The Department will continue operating the secure treatment program at Porterville, the Canyon Springs community facility, and state-operated acute crisis facilities in Northern, Central, and Southern California, with an estimated population of 322 by June 30, 2021. To reduce the number of individuals with developmental disabilities found incompetent to stand trial (IST) and 42 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg HEALTH AND HUMAN SERVICES awaiting placement, the Budget includes $8.9 million General Fund for the temporary activation of one 20-bed unit in the Porterville secure treatment program. The additional unit will sunset June 30, 2024, as more integrated community resources are developed. COMMUNITY SERVICES With the developmental center closures, the Department continues to strengthen its focus on community services and the safety net. The Budget includes $7.5 million General Fund to develop five enhanced behavioral support homes with secure perimeters aimed at providing long-term IST placement, which would become operational in 2021-22, and $1.1 million General Fund for post-placement follow-up activities with residents transitioning from the remaining developmental centers into the community. Other Significant Adjustments: • Supplemental Rate Increases for Additional Service Codes—The Budget includes $18 million ($10.8 million General Fund) in 2020-21 and $35.9 million ($21.6 million General Fund) in 2021-22 to provide supplemental rate increases for Early Start Specialized Therapeutic Services, Infant Development and Independent Living services, consistent with the supplemental rate increases included in the 2019 Budget Act. • Enhanced Caseload Ratios for Young Children—The Budget includes $16.5 million ($11.2 million General Fund) to establish a reduced regional center service coordinator caseload ratio for consumers who are under the age of five years. • Systemic, Therapeutic, Assessment, Resources and Treatment Training—The Budget includes $4.5 million ($2.6 million General Fund) to provide training on person-centered, trauma-informed, and evidence-based support services for individuals with co-occurring developmental disabilities and mental health needs. • Warm Shutdown of Fairview Developmental Center—The Budget includes $11.9 million General Fund to extend the warm shutdown period at Fairview Developmental Center through 2020-21 until a site assessment is completed to inform the disposition of the property. GOVERNOR'S BUDGET SUMMARY — 2020-21 43 HEALTH AND HUMAN SERVICES Version number CQ2DDvMG2BB5g7vg DEPARTMENT OF STATE HOSPITALS The Department of State Hospitals (DSH) administers the state mental health hospital system, the Forensic Conditional Release Program, the Sex Offender Commitment Program, and the evaluation and treatment of judicially and civilly committed patients. The Budget includes $2.2 billion ($2 billion General Fund) in 2020-21 for support of the Department. The patient population is expected to reach 6,761 by the end of 2020-21, including patients receiving competency treatment in jail-based settings. DIVERSION OF THE INCOMPETENT TO STAND TRIAL POPULATION The Department continues to experience a growing number of incompetent to stand trial (IST) commitments—who are referred from trial courts—awaiting admission to the state hospital system. The number of ISTs pending placement into the state hospital system was approximately 800 individuals in December 2019. To help address this need, the Budget includes $24.6 million General Fund in 2020-21 to implement a Community Care Collaborative Pilot Program. This initiative will establish a six-year pilot program in three counties that provides incentives to treat and serve individuals deemed IST in the community. The total costs of the pilot program over six years is estimated to be $364.2 million General Fund. This pilot program will primarily target development of community-based treatment options for individuals deemed IST and increase local investments in strategies to reduce the rate of arrests, rearrests, and cycling in and out of institutions for this population. The Budget also includes $8.9 million General Fund in 2020-21 and $11.2 million General Fund annually thereafter to expand the Jail-Based Competency Treatment program to eight additional counties. This expansion is estimated to increase capacity by up to 63 beds in 2020-21. These efforts are intended to reduce the pending placement time and the waitlist for ISTs referred to DSH treatment programs. IMPROVING IN-PATIENT CARE AND OUTCOMES In 2013, the Department initiated a Clinical Staffing Study to develop a data-driven approach to standardize staffing at the five state hospitals. Through the Mission-Based Review process, the Department of Finance and State Hospitals completed an evaluation of the Hospital Forensic Departments and 24-Hour Care Nursing Services, and resources for both were included in the 2019 Budget Act. The Budget includes 44 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg HEALTH AND HUMAN SERVICES $39.9 million and 127.2 positions based on the evaluation of the two remaining components of the Clinical Staffing Study: Treatment Planning and Delivery and Protective Services. • Treatment Planning and Delivery—The Budget includes $32 million General Fund and 80.9 positions for the first year of a five-year phase-in to standardize clinician-to-patient ratios, significantly increasing the number of treatment teams and primary care physicians in the state hospitals. This will improve patient outcomes, result in shorter lengths of stay, and reduce patient violence and staff injuries. This proposal also funds two important initiatives: the implementation of trauma-informed care and the development of a comprehensive discharge planning program. • Protective Services—The Budget includes $7.9 million General Fund and 46.3 positions to support most protective services functions at Napa State Hospital and outside custody and executive leadership system-wide. This will reduce overtime hours and provide additional officers in housing units, which will improve security for patients and staff. The methodology developed for Napa is intended to serve as a model for the standardization at the other state hospitals. INFRASTRUCTURE The Budget also includes several investments in the state hospital system infrastructure. The Budget includes $10.5 million General Fund beginning in 2020-21 and annually thereafter through fiscal year 2026-27, to mitigate ligature risks across the four hospitals accredited by The Joint Commission (TJC). This project is necessary to meet standards for acute psychiatric hospitals required by the federal Centers for Medicaid and Medicare Services, and to maintain TJC accreditation. In addition, the Budget includes $49.3 million for critical replacements of roofs that have exceeded the useful life expectancy at the state hospitals. The proposal will provide for two roof replacement projects at Metropolitan State Hospital, four at Napa State Hospital, and one at Patton State Hospital. DEPARTMENT OF YOUTH AND COMMUNITY RESTORATION The 2019 Budget Act included resources to transition the Division of Juvenile Justice from the Department of Corrections and Rehabilitation to the Health and Human Services Agency as an independent department, effective July 1, 2020. The Budget includes GOVERNOR'S BUDGET SUMMARY — 2020-21 45 HEALTH AND HUMAN SERVICES Version number CQ2DDvMG2BB5g7vg additional resources to establish the Division of Juvenile Justice as the Department of Youth and Community Restoration and support the administrative functions necessary to operate independently. The new department will consist of 1,415.9 positions and $289.7 million ($260.8 million General Fund) in 2020-21 and $295.6 million ($266.8 million General Fund) in 2021-22 and annually thereafter. The proposed funding level reflects the establishment of a new training academy, and continues funding for therapeutic communities ($8 million General Fund ongoing). This transition aligns with the rehabilitative mission and core values of the Agency by providing trauma-informed and developmentally appropriate services to youth in California’s state juvenile justice system. This transition will improve the state’s ability to provide youth in the juvenile justice system with the services necessary to return safely to the community and become responsible and successful adults. In addition, the 2019 Budget Act included $2 million for the Division of Juvenile Justice to partner with California Volunteers to assist current and recent Division of Juvenile Justice-committed youths in petitioning for honorable discharge designations by pairing those youth with credible messenger AmeriCorps volunteers who themselves had previous experience with the criminal justice system. The Division and California Volunteers have entered into an interagency agreement and are in the process of awarding a grant to an entity that will advertise the program and hire navigators to assist youth in seeking honorable discharge designations. DEPARTMENT OF PUBLIC HEALTH The Department of Public Health is charged with protecting and promoting the health and well-being of the people of California. The Budget includes $3.2 billion ($211.7 million General Fund) in 2020-21 for the Department. CALIFORNIA COGNITIVE CARE COORDINATION INITIATIVE The Budget includes $3.6 million one-time General Fund to establish a coordination and training initiative through the Alzheimer’s Disease Centers to develop a “train the trainer” program that will help family caregivers navigate the complexities of the disease. The new initiative will support caregivers by bridging the gap between the medical system and social services in order to treat the multiple and complicated dimensions of Alzheimer’s Disease. The initiative aligns closely with work underway by the Governor’s Alzheimer’s Disease Preparedness and Prevention Task Force. 46 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg HEALTH AND HUMAN SERVICES LICENSING AND CERTIFICATION The Department of Public Health regulates many types of health care facilities and entities in the state. To meet mandated state licensing and certification workload, improve care, and better protect the safety of patients, the Budget proposes an additional $32.9 million Licensing and Certification Program Fund and 92 positions for 2020-21. This augmentation will increase by $24.5 million in fiscal year 2021-22 and $5.4 million in in fiscal year 2022-23, supporting an additional 76.6 positions and the continued phase-in of resources for the Department’s contract with Los Angeles County. These resources will allow the Department to complete licensure and re-licensure workload and the timely investigation of complaints to mitigate any future backlogs. In addition, the Budget proposes $3 million from the Internal Departmental Quality Improvement Account to implement quality improvement projects and provide enhanced provider and program support within the Licensing and Certification Program. These resources will allow the Licensing and Certification Program to expand its capacity to better respond to stakeholders and future efforts to streamline and standardize practices. 2011 REALIGNMENT FUNDING To provide services more efficiently and effectively, 2011 Realignment shifted responsibility and dedicated funding for public safety services to local governments. In addition, community mental health programs previously funded in 1991 Realignment are now funded primarily by revenue dedicated for 2011 Realignment. The programs and funding for 2011 Realignment are funded through two sources: a state special fund sales tax rate of 1.0625 percent totaling $7.8 billion, and $749 million in Vehicle License Fees. These funds are deposited into the Local Revenue Fund 2011 for allocation to the counties and are constitutionally guaranteed for the purposes of 2011 Realignment. GOVERNOR'S BUDGET SUMMARY — 2020-21 47 HEALTH AND HUMAN SERVICES 48 Version number CQ2DDvMG2BB5g7vg GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg HEALTH AND HUMAN SERVICES Other Health and Human Services Adjustments: • Child Support Payments—The Budget proposes to increase the amount of child support payments passed through to CalWORKs families, effective January 1, 2022, from the current $50 to $100 for a family with one child and $200 for a family with two or more children (see the Early Childhood chapter for more information). The Budget also proposes statutory changes to forgive child support payment arrearages or past due amounts that are determined to be uncollectible, beginning January 1, 2022. • Increased Support for Local Child Support Agencies—The Budget includes an increase of $56 million ($19.1 million General Fund) for Local Child Support Agency administrative costs. See the Early Childhood chapter for more information. GOVERNOR'S BUDGET SUMMARY — 2020-21 49 Version number CQ2DDvMG2BB5g7vg JOBS AND ECONOMY JOBS AND ECONOMY T he current historic economic expansion has reduced unemployment from a peak of 12.2 percent during the Great Recession to 3.9 percent in November 2019. Real per capita personal income has increased by almost 25 percent from 2007 to 2018. The poverty rate has declined from over 16 percent at the start of the decade to just under 12 percent in 2018, lower than it was in 2007. This strong economic growth has enabled billions in investments to improve schools and roads, to increase access to and the affordability of higher education, to meaningfully move towards universal health care, to create a robust state earned income tax credit program and to steadily increase the state’s minimum wage. These investments have strengthened California and made it more resilient. This economic expansion, fueled by the state's innovative entrepreneurs, world-class education systems, and millions of hardworking residents, has unevenly benefited all regions of the state. Wage and job growth have been uneven across the state and too many struggle to make ends meet, even in the most prosperous areas. The Budget continues to make targeted investments to move toward a more sustainable and inclusive California. These include investing in schools, colleges, universities, health care, and safety net services. They also include training the workforce of the future, building resilient infrastructure, investing in healthy communities, and mitigating and adapting to climate change. GOVERNOR'S BUDGET SUMMARY — 2020-21 51 JOBS AND ECONOMY Version number CQ2DDvMG2BB5g7vg SUPPORTING BUSINESS CREATION More businesses start in California than anywhere in the United States, including many green technology businesses. Many of California's new businesses have gone on to become industry leaders, a direct result of the state’s world-class colleges and universities, state-of-the-art laboratories, a talented workforce, and commitment to combatting climate change. To encourage new and small businesses, which are a major engine of economic growth in California and are particularly impactful in rural and less populated areas of the state, the Budget proposes a first-year exemption from the $800 minimum tax paid by limited liability companies, limited partnerships, and limited liability partnerships. This will put these entities on equal footing with corporations, which already enjoy a first-year exemption from the minimum franchise tax. These changes are expected to provide around $100 million in tax relief per year, and are subject to annual budget authorization. INVESTING IN INFRASTRUCTURE Infrastructure and capital assets allow for the delivery of public services and the movement of goods across the state, both of which are essential components in fostering continued jobs and economic growth. To support this, infrastructure planning must be driven by the current and future needs of Californians, including mitigating the life-threatening impacts of climate change. The 2020 Five-Year Infrastructure Plan (Plan) reflects the Governor’s proposal for investing $53 billion in state infrastructure over the next five years. It focuses on how these investments can be leveraged to create a sustainable and resilient California. Key areas include: • The Road Repair and Accountability Act of 2017—SB 1 was passed to address the state’s transportation crisis, increasing transportation funding and instituting much-needed reforms. SB 1 increased the gas fuel tax by 12 cents, providing the first significant, stable, and on-going increase in state transportation funding in more than two decades. Annual revenue is approximately $5.4 billion, $3.5 billion of which is dedicated to road projects, rehabilitation, and maintenance. The remaining $1.9 billion is allocated each year to local transit, multi-modal projects, and other transportation priorities. The infusion of new and significant resources has funded 52 GOVERNOR'S BUDGET SUMMARY — 2020-21 JOBS AND ECONOMY Version number CQ2DDvMG2BB5g7vg almost 8,000 projects throughout the state and created thousands of new jobs, both at the state and local level. These investments allow the state to continue repairing and maintaining its vast infrastructure and keeps California’s economy growing. • Broadband for All—Affordable high-speed Internet is vital to the daily lives of all Californians, such as receiving medical treatment, completing school homework, and taking advantage of emerging economic opportunities. Digital equity and inclusion—ensuring all communities enjoy the fruits of innovation—necessitates Broadband For All. The state’s Broadband For All strategy is composed of four principal elements: (1) mapping the state of connectivity in California, including whether, where, and at what speed Californians have access to affordable high-speed Internet; (2) investing new resources, including $51.4 million to improve school connectivity; (3) optimizing use of existing resources, including approximately $900 million over the next five years; and (4) prioritizing connectivity across executive actions and policies. • Water Resilience Portfolio—The Sierra snowpack, one of the primary sources of the state’s water supplies, is decreasing, reducing natural water storage and altering winter and spring runoff patterns. As climate change continues to threaten the reliability of the state’s water supplies, the Administration is advancing a comprehensive strategy to build a climate-resilient water system: the Water Resilience Portfolio. The Plan reflects a $4.75 billion climate resilience bond for the November 2020 ballot. The bond is structured around climate risks, with over 60 percent of the proposed bond funding dedicated to programs that align with priorities identified in the Water Resilience Portfolio. For additional information, see the Infrastructure chapter. TRANSITION TO CARBON NEUTRALITY California is committed to achieving carbon neutrality by 2045 and reducing greenhouse gas emissions to 80 percent below 1990 levels by 2050. In recognition that the state's ambitious climate policies are also economic and work force policies, with the potential to create a more inclusive and sustainable economy for all Californians, the Budget includes $1 billion over the next four years for a new Climate Catalyst Fund. This investment will simultaneously benefit the state’s environment and economy across all regions. This new Fund will dramatically increase and leverage private sector investment to support climate-related projects. This GOVERNOR'S BUDGET SUMMARY — 2020-21 53 JOBS AND ECONOMY Version number CQ2DDvMG2BB5g7vg revolving loan fund will provide low-interest loans for a portfolio of projects, focused on areas that help meet the state’s climate and equity goals, where technologies and infrastructure exist that could be deployed at much greater speed and scale but face barriers in the private market. Further, it will be designed to support good jobs and a just transition to achieving California's climate goals. For additional information, see the Climate Resilience chapter. The Budget also reflects the continuation of a major commitment to preparing workers for a carbon-neutral economy by dedicating $165 million over a five year period for multi-craft pre-apprenticeship programs to increase access to careers in the fast-growing construction industry and expanding the High Road Training Partnership program. A STRONGER, MORE INCLUSIVE ECONOMY As of November 2019, California had added more than 2 million payroll jobs since the last pre-recession peak in 2007. However, while average per capita income has increased almost 25 percent in real terms from 2007 to 2018, median household income was flat over that period. As can be seen in the figure on Jobs Added Since 2007 and Average Wages, most of the jobs added have been in lower-wage sectors that have employed the largest numbers of workers. For example, educational and health services added over 600,000 jobs to total around 2.7 million jobs in 2018 at an average wage of less than $54,000. 54 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg JOBS AND ECONOMY California's unemployment rate was at a record-low 3.9 percent in November 2019. Typically, low unemployment rates cause employers to raise wages and increase benefits to attract workers. But instead, median household income is stagnant and average wage growth is relatively low. Income inequality persists and prosperity is not shared by all regions of the state. To create inclusive, long-term economic growth and ensure workers and their families share in that success, the Governor established the Future of Work Commission. The Commission is examining ways to broaden opportunity, better prepare the state's workforce, modernize worker safety-net protections, and preserve and grow good jobs. The Commission will bring forward a set of recommendations later this spring. GOVERNOR'S BUDGET SUMMARY — 2020-21 55 JOBS AND ECONOMY Version number CQ2DDvMG2BB5g7vg HIGHER WAGES FOR WORKING CALIFORNIANS MINIMUM WAGE The California state minimum wage increased by $1 per hour on January 1, 2020 to reach $12 per hour for businesses with 25 or fewer employees, and $13 per hour for businesses with 26 or more employees. Annual increases of $1 per hour are scheduled to continue until the statewide minimum wage reaches $15 per hour for everyone, indexed for inflation after that. EARNED INCOME TAX CREDIT (EITC) The 2019 Budget Act significantly expanded the EITC, by more than doubling the existing credit from $400 million to $1 billion. The expanded program extended credits to 1 million additional households, raising the number of households receiving the credit to 3 million. The expanded credit includes a $1,000 credit for every family that otherwise qualifies for the credit and has at least one child under the age of 6. The Budget continues the expanded EITC, as well as outreach to encourage higher levels of household participation. In addition, the Budget continues development of a program that would allow workers to receive a portion of the EITC in monthly payments. ENFORCEMENT OF LABOR LAWS While new forms of work have provided flexibility for workers, the state has seen an increase in the use of independent contractors, rather than employees, that may be contributing to lower wage growth. In California, employees are protected by labor laws that mandate a minimum wage, on-the-job breaks, paid time off, coverage for job injuries, unemployment insurance, reimbursement for expenses, health insurance in some instances, and protections against discrimination and harassment. These benefits can range in value from 25 to 50 percent of an hourly wage. For example, an employee making minimum wage of $12 per hour would receive the equivalent of $15 to $18 per hour when benefits are included. By contrast, an independent contractor is paid per contract, and their revenue has to cover time spent working or waiting for a task, all of the insurance benefits, and expenses. The misclassification of workers as independent contractors erodes worker protection and harms fair market competition, giving some employers an unfair advantage over competitors who pay their fair share of wages, payroll taxes, and benefits. 56 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg JOBS AND ECONOMY In 2018, the California Supreme Court issued a landmark ruling in the Dynamex decision, which established an employment test to determine whether a worker should be classified as an employee or independent contractor for certain purposes. This new standard presumes all workers are employees unless the employer can demonstrate a worker meets specified conditions, known as the ABC Employment Test. Chapter 296, Statutes of 2019 (AB 5) codified the ABC Employment Test and expanded its application to include the Labor Code and the Unemployment Insurance Code. The Budget includes resources to enforce compliance with this new law, including: • $17.5 million for the Department of Industrial Relations to address workload associated with increased utilization of the workers’ compensation program, investigations of labor law violations related to worker status, wage claim filings, and workplace health and safety inspections. • $3.4 million for the Employment Development Department to train staff and administer the ABC Employment Test, and to conduct hearings and investigations of worker status. • $780,000 for the Department of Justice to address increased enforcement actions and to prosecute cases involving misclassification of employees as independent contractors. DEPARTMENT OF BETTER JOBS AND HIGHER WAGES Historically, the state has created workforce programs in various entities in response to specific needs and available funding. This has resulted in a fragmented workforce system. Such programs include the Workforce Innovation and Opportunity Act Program in the California Workforce Development Board, employer services funded by the Wagner-Peyser Act in the Employment Development Department, and the Apprenticeship USA grant within the Department of Industrial Relations. As rapid advancements in technology, automation, and artificial intelligence reshape the economy and the nature of work, more needs to be done to promote high-quality jobs and economic security for workers, families, and communities. Aligning fragmented workforce programs is a necessary component of these efforts. The Budget proposes a new Department of Better Jobs and Higher Wages and statutory changes to consolidate the workforce functions dispersed across the Labor and Workforce Development Agency. The Department will be comprised of the California Workforce Development Board, the Employment Training Panel, Workforce Services Branch and Labor Market Information Division, which are currently in the Employment Development GOVERNOR'S BUDGET SUMMARY — 2020-21 57 JOBS AND ECONOMY Version number CQ2DDvMG2BB5g7vg Department, and the Division of Apprenticeship Standards currently in the Department of Industrial Relations. This reorganization is intended to better align data, policy, and program analysis of the state’s workforce training programs. The new Department will help the education and training of workers for the jobs of the future. The Budget includes $2.4 million one-time General Fund to establish executive staff for the new Department. REGIONS RISE TOGETHER Regions within the state can have very different growth patterns and challenges. In 2019, the Governor's Office of Business and Economic Development launched a Regions Rise Together initiative. Regions Rise Together seeks to overcome California's regional disparities by identifying and leveraging economic assets within each of the state's regions, as well as strengthening the connections among them. This includes working with local officials on their economic development plans. The Budget includes $758,000 ongoing General Fund for four positions for the Governor's Office of Business and Economic Development to be located in the Central Valley, Inland Empire, Central Coast, and North Coast to provide a focus on bringing business and economic development to these regions, by promoting the benefits of these regions and facilitating business expansion. INVESTING IN INLAND CALIFORNIA As referenced in the Higher Education chapter, the Budget includes $25 million ongoing General Fund to support expanded enrollment for the UC Riverside School of Medicine and $15 million ongoing General Fund to expand services provided by the UC San Francisco School of Medicine Fresno Branch Campus in partnership with UC Merced. These investments will improve access to health care in these underserved regions of the state. The Budget also includes $50 million one-time General Fund to support Fresno area regional investments that are focused on improving the economic mobility of Californians living in the region. Specifically, the Budget includes the following investments: • Fresno-Merced Food Innovation Corridor—An increase of $33 million one-time General Fund for the establishment of an innovation corridor to stimulate research 58 GOVERNOR'S BUDGET SUMMARY — 2020-21 JOBS AND ECONOMY Version number CQ2DDvMG2BB5g7vg and development, commercialization, and innovation to support advanced sustainable agricultural production and high-quality jobs in the San Joaquin Valley. This collaboration between academic institutions and industry will spur additional economic development in a region of the state that for decades has faced nearly double the unemployment rate of the rest of the state. • Fresno Integrated K-16 Education Collaborative—An increase of $17 million one-time General Fund to support a plan to design educational pathways to improve social and economic mobility in the greater Fresno region. The project will increase educational attainment and economic mobility by building an efficient path for students in the region, from secondary school through college, and into jobs in high-wage, high-growth sectors. SUSTAINABLE GROUNDWATER A significant number of groundwater basins in the Central Valley are critically overdrafted. In recognition that the amount of groundwater available for use will be lower than historical pumping levels that have depleted aquifers, the Administration is focused on supporting local communities' transition to sustainable groundwater use by aligning state investments and policies to enable implementation of the Sustainable Groundwater Management Act. The climate resilience bond proposes $395 million for projects to implement Groundwater Sustainability Plans. In addition, the Budget proposes $60 million General Fund to support planning and water trading pilot projects across critically overdrafted basins, and water efficiency improvements in depleted groundwater basins. For additional information, see the Climate Resilience and Infrastructure chapters. GOVERNOR'S BUDGET SUMMARY — 2020-21 59 Version number CQ2DDvMG2BB5g7vg EARLY CHILDHOOD EARLY CHILDHOOD P roviding children in California with a healthy start is one of the best investments the state can make. A growing body of research points to the link between early childhood interventions and improved outcomes years or even decades into the future, including higher education levels, better health, and stronger career opportunities. Investing in early childhood enables these outcomes in the future while strengthening families and reducing child poverty. The framework adopted last year is continued in this budget and promotes a healthy start in three ways: (1) early access for children to educational and health care services, including services for those with adverse childhood experiences, (2) a two-generation approach that invests in parents so they can invest more in their children, and (3) easing financial pressures on parents so they can escape the cycle of poverty and focus on healthy development of their kids in those critical first five years of a child's life. INCREASING AND IMPROVING ACCESS TO EARLY LEARNING AND CARE DEPARTMENT OF EARLY CHILDHOOD DEVELOPMENT California’s early childhood system has evolved iteratively, resulting in multiple programs, providers, funding streams, and levels of quality. The array of regulations, funding mechanisms, program standards, and governance structures can be difficult for families and early childhood providers and agencies to navigate. GOVERNOR'S BUDGET SUMMARY — 2020-21 61 EARLY CHILDHOOD Version number CQ2DDvMG2BB5g7vg The Budget proposes to establish the Department of Early Childhood Development under the California Health and Human Services Agency (CHHS) effective July 1, 2021, to promote a high-quality, affordable, and unified early childhood system that improves program integration and coordination with other major programs serving young children. Consolidating child care funding streams and programs under a single system of state administration, in partnership with the Department of Education, which will continue to administer the State Preschool Program, and the State Board of Education, will create a coherent system of early childhood administration and maximize investments in high-quality early childhood programs for low-income children, their families, and the workforce. The Budget includes $8.5 million General Fund to establish a transition team at CHHS and will support staffing at the Department of Human Resources, CHHS, and the Department of Social Services to carry out child care collective bargaining activities pursuant to Chapter 385, Statutes of 2019 (AB 378). MASTER PLAN FOR EARLY LEARNING AND CARE The 2019 Budget Act included $5 million one-time General Fund for a long-term strategic plan to provide a roadmap to universal preschool and a comprehensive, quality, and affordable child care system. The Master Plan for Early Learning and Care, administered by the Secretary of the Health and Human Services Agency, will examine ways the state can leverage public/private partnerships to fiscally sustain a universal preschool system and expanded child care system, determine high-need child care and preschool areas, contemplate changes to the current reimbursement rate system, and consider the impact of market rate changes on the cost of child care for unsubsidized families. Final recommendations and findings from the Master Plan will be submitted by October 1, 2020. In addition, to the Master Plan, the Administration has established the Early Childhood Policy Council, an advisory body that includes parents, providers, and relevant state agencies. The 2019 Budget Act also made major investments in data systems that integrate statewide provider and recipient information for the state's subsidized early learning and care programs. 62 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg EARLY CHILDHOOD SUBSIDIZED CHILD CARE The 2019 Budget Act expanded child care for 9,400 children in the Alternative Payment Program and 3,000 children in the General Child Care Program. The 2019 Budget Act also included major expansions to access in the CalWORKs Stage 1 child care system by determining eligibility for a 12-month period and increasing access to the Emergency Child Care Bridge Program for Foster Children. Additionally, the 2019 Budget Act invested $440 million to expand and improve child care facilities and invest in workforce development. Building upon these investments, the Budget proposes the following increases for child care access: • CalWORKs Stages 2 and 3 Child Care—A net increase of $53.8 million non-Proposition 98 General Fund to reflect changes in CalWORKs child care cases, specifically a reduction in projected caseload in Stage 2 offset by an increase in projected caseload in Stage 3. Total costs for Stage 2 and 3 are $588 million and $583.1 million, respectively. • General Child Care Slots—$50 million ongoing funding from the Cannabis Fund to support over 3,000 General Child Care slots previously funded with General Fund, and an additional $10.3 million Cannabis Fund for an increase of 621 General Child Care slots. UNIVERSAL PRESCHOOL An Administration priority is that all children, regardless of family income, have access to a high-quality preschool program before they begin kindergarten. The Budget continues the Administration’s commitment to full-day, full-year access to State Preschool for all eligible low-income four-year-olds. Specifically, the Budget proposes an increase of $31.9 million in 2020-21 and $127 million ongoing non-Proposition 98 General Fund to support an additional 10,000 State Preschool slots at non-local educational agencies beginning April 1, 2021. FULL-DAY KINDERGARTEN AND PRESCHOOL FACILITIES EXPANSION The 2018 and 2019 Budget Acts included a total of $400 million one-time non-Proposition 98 General Fund for eligible school districts to construct new, or retrofit existing, facilities to expand access to full-day kindergarten programs. Of this amount, GOVERNOR'S BUDGET SUMMARY — 2020-21 63 EARLY CHILDHOOD Version number CQ2DDvMG2BB5g7vg roughly $300 million remains available to support the goal of converting existing part-day kindergarten programs to full-day programs. As referenced in the K-12 Education chapter, the Budget proposes dedicating a portion of these funds to support the construction of preschool facilities that increase access to early education for young children on school campuses. The 2018 and 2019 Budget Acts included a total of $177 million to support the Inclusive Early Education Expansion Program, which provides funding to local educational agencies to construct or modify preschool facilities to serve students with exceptional needs or severe disabilities. As referenced in the K-12 Education chapter, the Budget also includes $75 million Proposition 98 General Fund to further support this program. Chapter 530, Statutes of 2019 (AB 48) placed a $15 billion general obligation bond—the Public Preschool, K-12, and College Health and Safety Bond Act (Act) of 2020—on the March 3, 2020 ballot for consideration by the voters. AB 48 authorizes school districts to use facilities grant funding to support the construction and modernization of school district operated preschool facilities located on school campuses. If the Act is approved, the Administration will propose statute authorizing the State Allocation Board to provide a new construction or modernization per-pupil grant enhancement to local educational agencies proposing to construct or modernize facilities to expand preschool programs on school campuses. Participants would be required to use the applicable facility to expand the number of preschool students served by the local educational agency consistent with current preschool staffing standards. EARLY CHILDHOOD HEALTH AND WELLNESS The 2019 Budget Act included funding for expanded developmental screenings for children, trauma screenings for children and adults, and provider training for trauma screenings. Research shows that individuals who experienced adverse childhood experiences are at greater risk of heart disease, diabetes, and premature death. Identifying cases of trauma in children and adults and providing treatment can lower long-term health costs and support individual and family wellness and healing. Nearly one-third of the state’s population, and approximately 45 percent of new mothers, receive Medi-Cal benefits. In an effort to bolster early childhood supports and reduce health disparities for low-income families, the 2019 Budget Act included a major expansion to the CalWORKs Home Visiting Program, the California Home Visiting Program, and the Black Infant Health Program, including the California Perinatal Equity Initiative. 64 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg EARLY CHILDHOOD The Budget builds on the initiatives outlined above through the Medi-Cal Healthier California for All initiative, which is designed to move Medi-Cal to a more consistent and seamless system that focuses on outcomes and prevention. This initiative will improve services to children in the foster care system. The Budget also includes $10 million one-time General Fund for the development of an adverse childhood experiences cross-sector training program that will be accredited by the Office of the Surgeon General, as well as a statewide adverse childhood experiences public awareness campaign. The Surgeon General has set a bold goal of cutting adverse childhood experiences and toxic stress in half in a generation through raising awareness and strengthening response networks. The Surgeon General will engage leading experts and consultants to develop a series of trauma-informed trainings specific to key sectors, including early childhood, education, government, and law enforcement. These trainings will incorporate the latest evidence on trauma-informed and trauma-sensitive responses and will be made available statewide. REDUCING CHILDHOOD POVERTY The 2019 Budget Act included several major actions to reduce childhood poverty, which is critical to improving outcomes for children. First, it more than doubled the State's Earned Income Tax Credit (EITC) and provided a $1,000 credit for qualifying families with young children. Second, it restructured the California Work Opportunity and Responsibility to Kids (CalWORKs) grant levels to better assist households where only children are aided. Finally, it established supplemental student financial aid access awards for students with dependent children. This two-generation approach to improving outcomes for children provides new or renewal CalGrant recipients up to $6,000 for education expenses. The Budget builds on the 2019 Budget Act to reduce childhood poverty by increasing the amount of child support payments passed through to CalWORKs families. Effective January 1, 2022, child support payments passed through to CalWORKs families will be increased from the current $50 to $100 for a family with one child and $200 for a family with two or more children. This change is anticipated to result in an additional $34 million annually passed through to approximately 160,000 CalWORKs families, and will reduce annual General Fund revenues by $17 million. The Budget includes $1.4 million ($0.9 million General Fund) for the necessary automation changes needed to implement the proposal in 2021-22. GOVERNOR'S BUDGET SUMMARY — 2020-21 65 EARLY CHILDHOOD Version number CQ2DDvMG2BB5g7vg The Budget also includes an increase of $56 million ($19.1 million General Fund) for Local Child Support Agency administrative costs. This increase represents the second year of a three-year, phased-in implementation of a new budgeting methodology. These resources create more equitable funding across all local agencies, reducing geographic disparities in funding for child support case management. The additional funding strengthens support for families with young children by increasing the ability of local agencies to collect and remit child support payments. PAID FAMILY LEAVE Research shows that providing paid parental leave leads to positive health and educational outcomes for children, greater economic security for parents, and less strain on finding and affording infant child care. In response, the 2019 Budget Act increased the Paid Family Leave (PFL) benefit duration from six to eight weeks for workers to bond with a new child or care for an ill family member, beginning July 1, 2020. This increase will move California two-thirds of the way to achieving the goal of six months of paid family leave to support parents bonding with their children. Continuing these efforts, the Budget takes additional steps to increase the use of PFL benefits including statutory changes to align PFL benefits with job protections and resources to support small businesses that extend the PFL benefits to their employees. CHILD SAVINGS ACCOUNTS Child savings accounts are accounts designated for a specific child to build assets over time through contributions from family, friends, government, non-governmental organizations, and/or the child. The accounts are generally opened with an initial contribution, or seed money, from a sponsoring organization. Eligible uses of the accounts are for tuition (normally for post-secondary education such as college, vocational, or technical schools), room and board, books, supplies and equipment, and mandatory fees. The 2019 Budget Act included the following investments: $25 million one-time General Fund to support grants to local governments and nonprofit organizations that sponsor or create local or regional child savings account program; and $25 million one-time General Fund to support college savings accounts at the ScholarShare Investment Board for eligible low-income California children born on or after July 1, 2020. The Administration is committed to continuing implementation and further promoting the creation of local programs. 66 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg K-12 EDUCATION K-12 EDUCATION C alifornia provides academic instruction and support services to nearly six million students in grades kindergarten through twelve in more than 10,000 schools throughout the state. A system of 58 county offices of education, approximately 1,000 local school districts, and more than 1,200 charter schools provides instruction in English, mathematics, history, science, and other core competencies to provide students with the skills they will need upon graduation to either enter the workforce or pursue higher education. INVESTING IN EDUCATION The Proposition 98 funding for K-12 schools and community colleges for 2020-21 is $84 billion—an all-time high. When combined with more than $819 million in settle-up payments for prior fiscal years, the Budget proposes an increased investment of $3.8 billion in schools and community colleges. The Budget proposes significant targeted investments that reflect the Administration’s commitment to improving opportunities and outcomes for every child in public K-12 schools, while maximizing flexible funding in recognition of the fiscal challenges faced by many local educational agencies. Specifically, the Budget proposes a $1.2 billion augmentation to the Local Control Funding Formula (LCFF), approximately $900 million for educator recruitment and training, an increase of nearly $900 million for special education, $300 million for expanded supports and services for the state’s neediest schools, $300 million for the development of innovative community school models that GOVERNOR'S BUDGET SUMMARY — 2020-21 67 K-12 EDUCATION Version number CQ2DDvMG2BB5g7vg support student mental health, and $70 million to improve and strengthen school meal programs. The Budget also proposes changes to improve fiscal accountability regarding the use of LCFF funds. PROPOSITION 98 The annual funding level for K-12 schools and community colleges is determined by the Proposition 98 formula, a constitutional initiative approved by California voters in 1988 that guarantees K-12 schools and community colleges a minimum level of funding from state and local property taxes. Proposition 98 is designed to increase education funding each year by either: (1) funding K-14 education at its 1986-87 proportion of General Fund (known as Test 1), (2) applying growth in average daily attendance (ADA) and growth in per capita personal income to the prior year Proposition 98 funding level (known as Test 2), or (3) applying growth in ADA and growth in per capita General Fund to the prior year Proposition 98 funding level (known as Test 3). Due largely to projected increases in revenues and year-over-year declines in ADA, Test 1 is projected to be operative for fiscal years 2018-19 through 2020-21. The Proposition 98 funding level for 2020-21 represents an increase of $3 billion over the 2019-20 level funded in the 2019 Budget Act. The Proposition 98 funding levels for the 2018-19 and 2019-20 fiscal years increased from 2019 Budget Act levels by $301.5 million 68 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg K-12 EDUCATION and $517 million, respectively, due largely to an increase in property tax revenue in 2018-19 and increased General Fund revenues in both 2018-19 and 2019-20. Reflecting the changes to Proposition 98 funding levels noted above, total K-12 per-pupil expenditures from all sources are projected to be $17,508 in 2019-20 and $17,964 in 2020-21—the highest level ever. Ongoing K-12 per-pupil expenditures of Proposition 98 funds are $12,600 in 2020-21, an increase of $496 per pupil over the level provided in 2019-20—and $7,200 higher than its low point in 2011-12. PUBLIC SCHOOL SYSTEM STABILIZATION ACCOUNT Proposition 2, approved by the voters in 2014, established the Public School System Stabilization Account, also referred to as the Proposition 98 Rainy Day Fund, within the Proposition 98 Guarantee as a mechanism to lessen the impact of volatile state revenues on K-14 schools. In a fiscal year when all of the following conditions are met, a deposit is made into the Account: • State General Fund revenues from capital gains exceed 8 percent of total revenues; • Proposition 98 Test 1 is operative; GOVERNOR'S BUDGET SUMMARY — 2020-21 69 K-12 EDUCATION Version number CQ2DDvMG2BB5g7vg • Proposition 98 maintenance factor obligations created prior to 2014-15 have been paid; • The Proposition 98 required minimum funding level is not suspended; and • The Proposition 98 funding level is greater than the prior year’s funding level less any deposits into the Account, adjusted for attendance growth and inflation. The Budget projects that a deposit into the Account is required in 2019-20. Pursuant to Proposition 2, the amount deposited into the Account is the difference between the Test 1 funding level and the higher of Test 2 or the prior year funding level adjusted for growth and inflation, but not more than the impact that capital gains revenues in excess of 8 percent of total revenues has on the minimum funding level. In 2019-20, this results in a required deposit of $524.2 million, which represents an increase of $147.7 million over the deposit projected at the 2019 Budget Act. Deposits made into the Account must be spent in fiscal years in which the minimum Proposition 98 funding level is not sufficient to fund the prior year funded level adjusted for any deposits or withdrawals from the Account and adjusted for growth and inflation. Pursuant to Proposition 2, a withdrawal of $37.6 million is projected to be made from the Account in 2020-21. Under current law, there is a cap on school district reserves in fiscal years immediately succeeding those in which the balance in the Account is equal to or greater than 3 percent of the total K-12 share of the Proposition 98 Guarantee (approximately $2.2 billion). Because the balance in 2020-21 is $486.6 million, school district reserve caps are not required in 2021-22. SUPPLEMENTAL PENSION PAYMENTS Local educational agencies will also continue to benefit from the massive $3.15 billion non-Proposition 98 General Fund payment made on their behalf to the California State Teachers' Retirement System (CalSTRS) and the California Public Employees' Retirement System (CalPERS) Schools Pool. An estimated $850 million is buying down the employer contribution rates in 2019-20 and 2020-21 and the remaining $2.3 billion is being paid toward long-term unfunded liabilities. Overall, these payments are expected to save schools $6.9 billion over the next three decades. 70 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg K-12 EDUCATION LOCAL CONTROL FUNDING FORMULA (LCFF) The Administration is committed to funding public schools through the LCFF to support all students, with greater support for students from low-income families, English language learners, and youth in foster care. The formula was designed to account for research and practical experience that indicates that low-income students, English language learners, and youth in foster care often require supplemental services and supports to be successful in school. The formula includes the following major components: • A base grant for each local educational agency per unit of average daily attendance, including an adjustment of 10.4 percent to the base grant to support lowering class sizes in grades K-3, and an adjustment of 2.6 percent to reflect the cost of operating career technical education programs in high schools. • A 20-percent supplemental grant for English learners, students from low-income families, and youth in foster care to reflect increased costs associated with educating those students. • An additional concentration grant of up to 22.5 percent of a local educational agency’s base grant, based on the number of English learners, students from low-income families, and youth in foster care served by the local educational agency that comprise more than 55 percent of enrollment. The county office of education formula includes: (1) a base grant for each county office of education per unit of average daily attendance to support instruction of students who attend community schools and juvenile court schools, and (2) unrestricted funding, inclusive of the resources necessary for administrative and technical support of local educational agencies in developing and approving local accountability plans based on the average daily attendance of all students in the county. The Budget proposes a $1.2 billion Proposition 98 General Fund increase for the LCFF, which reflects a 2.29 percent cost-of-living adjustment (COLA), and brings total LCFF funding to $64.2 billion. Since the enactment of LCFF in 2013, the state has allocated over $24.6 billion in additional ongoing resources to school districts and charter schools through the formula. GOVERNOR'S BUDGET SUMMARY — 2020-21 71 K-12 EDUCATION Version number CQ2DDvMG2BB5g7vg FISCAL ACCOUNTABILITY As discussed in the prior section, a critical component of the LCFF is the additional funding provided to local educational agencies through supplemental and concentration grants. State law requires that local educational agencies increase or improve services provided to students who generate the grant funds (students from low-income families, English language learners, and youth in foster care) in proportion to the additional funding received, and document these increased or improved services in their Local Control and Accountability Plans (LCAPs), which include local educational agencies’ three-year strategic spending plans to improve opportunities and outcomes for students. County superintendents of schools are required to review and approve school district LCAPs, which are developed with input from the local community and displayed on local educational agency websites. Since the 2013 enactment of the state's educational accountability system, the Legislature and the State Board of Education have taken several actions to improve the LCAP. These include: • Adoption of an LCAP template to provide consistency and clarity in local budgeting and strategic planning across the state. • Improvements in the transparency and comparability of the local indicators for school site-level data. 72 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg K-12 EDUCATION • Development of the electronic template for the LCFF Budget Summary for Parents, which breaks down LCAP budgeting information to help stakeholders better understand local funding decisions. • Various changes to streamline the LCAP and highlight its most important information, to improve families' ability to use it as a tool and engage in local decision-making. Despite these reforms, concerns remain regarding the local budgeting of supplemental and concentration grant funds, and whether these funds are benefiting the students that generate them. To further improve and strengthen LCFF fiscal accountability the Budget proposes $600,000 one-time Proposition 98 General Fund to: • Make statewide LCAP information easily accessible to the public through the development of an online LCAP portal. This portal will collect information from local educational agencies across the state using the revised LCAP template adopted by the State Board of Education. The new template includes an expenditure table that shows total LCFF funds expended on actions that increase or improve services for high-need student groups, and requires local educational agencies to identify actions from prior LCAPs that were not implemented as planned, including differences between planned and actual expenditures. • Co-locate the School Accountability Report Card (SARC) and the LCAP online to make it easier for the public to access and compare both accountability tools. Once completed, these new systems will provide easier access to statewide data on actions and expenditures included within LCAPs and how investments being made through LCFF are improving opportunities and outcomes for high-need students. Additionally, over the coming months, the Administration will engage in a process to identify potential avenues for strengthening accountability around the requirement for local educational agencies to provide increased or improved services for high-need students, particularly when actions described in an LCAP are not implemented as planned. GOVERNOR'S BUDGET SUMMARY — 2020-21 73 K-12 EDUCATION Version number CQ2DDvMG2BB5g7vg IMPROVING STUDENT OUTCOMES California's education accountability system is built upon state, regional, and local partnerships and driven by a comprehensive set of student performance measures. The foundation for the system is the LCAP, which is created by local educational agencies in collaboration with their communities to support improved student outcomes. Currently, student achievement across the state is measured using: (1) state test scores in English language arts and math, (2) English language acquisition for students with a home language other than English, (3) chronic absenteeism, (4) graduation rates, (5) suspension rates, and (6) a college/career readiness indicator. The online California School Dashboard displays statewide measures for all public schools, school districts, and county offices of education and breaks out data for more than a dozen student groups, including youth in foster care, homeless youth, students with disabilities, socioeconomically disadvantaged students, and English language learners, as well as by student race/ethnicity. Data from the 2019 Dashboard highlights that while achievement gaps are narrowing for some student groups, persistent gaps remain. The Dashboard showed the achievement gap closing in various metrics for Latinx students, students with disabilities, low income students, and African American students. For example, African American students showed the largest graduation rate gain among student groups, students with disabilities made the greatest gains in math and English language arts, and gaps narrowed for Latinx students in college/career readiness, English language arts, and high school graduation. However, students with disabilities, youth in foster care, homeless youth, and African American students are still more likely than their peers to score below the state standard on state English language arts and math tests. Youth in foster care are much more likely than their peers to be suspended from school and much less likely to graduate from high school. Students with disabilities, youth in foster care, and English language learners are less likely than their peers to finish high school ready for college or career. Building upon the significant investments made in the 2019 Budget Act for special education, educator recruitment and training, early education, and longitudinal data collection, the Budget proposes augmentations to the following areas to target resources and support to programs aimed at closing the academic achievement gap and ensuring that teachers and school leaders have the tools necessary to improve outcomes for all students. 74 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg K-12 EDUCATION EDUCATOR RECRUITMENT AND PROFESSIONAL DEVELOPMENT The state has a well documented, long-term, statewide teacher shortage in the areas of special education, science, and math. Certain regions of the state, including rural and high cost of living areas, have been more heavily impacted than others and report difficult hiring fully credentialed teachers regardless of subject matter area. A well-prepared teacher workforce is a significant factor in predicting high student achievement and in closing the achievement gap. Recent studies link poor student outcomes directly with a resulting high proportion of un-credentialed and under-prepared teachers especially in high poverty schools. Most African American students are concentrated in 23 districts that are in the highest poverty schools where there are fewer experienced teachers. Schools are also finding it difficult to access and retain, at a reasonable cost, the services of educational specialists such as speech pathologists, psychologists, behaviorists, and occupational and physical therapists, whose services are crucial for students with exceptional needs. Additionally, educators and administrators have expressed that they are often unprepared or underprepared to meet the complex social-emotional needs of their students while delivering instruction in the increasingly rigorous curriculum required for students to be successful in the 21st century. To expand and increase the preparedness of the state’s public K-12 teacher and administrator workforce, especially in the state's low-income schools, the Budget allocates approximately $900 million. This builds on $147.4 million allocated for grants for students enrolled in a professional teacher preparation program who commit to working in a high-need field at a priority school; training and resources for classroom educators; and professional learning opportunities for public K-12 administrators and school leaders included in the 2019 Budget Act. The Budget proposes the following teacher training initiatives: PROFESSIONAL DEVELOPMENT AND SUPPORT • $350 million one-time Proposition 98 General Fund to augment the funding provided in the 2019 Budget Act for the Educator Workforce Investment Grants, which support competitive grants for professional learning opportunities for teachers and paraprofessionals across the state. This new round of funding will be provided through a competitive process to local educational agencies to conduct training in the following high-need areas: GOVERNOR'S BUDGET SUMMARY — 2020-21 75 K-12 EDUCATION Version number CQ2DDvMG2BB5g7vg ◦ special education, including inclusive practices, universal design for learning, and dyslexia identification; ◦ multi-tiered systems of support and mental health interventions; ◦ supporting English language learners; ◦ social-emotional learning and restorative practices; ◦ non-discrimination, anti-bullying, and affirmative supports for LGBTQ and other marginalized students; and ◦ computer science and science, technology, engineering, and math (STEM). • $18 million one-time Proposition 98 General Fund for the California Collaborative for Educational Excellence to bolster awareness of available services and supports for all local educational agencies in the topics listed above, to strengthen the capacity of local educational agencies to improve student outcomes in state priority areas. EDUCATOR RECRUITMENT AND PREPARATION • $193 million one-time Proposition 98 General Fund for the Workforce Development Grant Program to address workforce shortages in high-need subjects and areas. • $175 million one-time Proposition 98 General Fund to expand the Teacher Residency Program, which supports locally sponsored, one-year intensive, mentored, clinical teacher preparation programs dedicated to preparing and retaining teachers in high-need subject areas in high-need communities. • $100 million one-time Proposition 98 General Fund for the California Teacher Credential Award Program for $20,000 stipends for fully credentialed teachers who complete four years of teaching service in a high-need subject at a high-need school. • $64.1 million one-time Proposition 98 General Fund to expand the California Classified School Employees Credentialing Program, which provides grants to K-12 local educational agencies to recruit non-certificated school employees to become certificated classroom teachers. Additionally, the Budget proposes to suspend accreditation fees for institutions of higher education and local educational agencies that administer a teacher preparation program or induction program. The Commission on Teacher Credentialing collects approximately $800,000 in these fees each year. 76 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg K-12 EDUCATION SPECIAL EDUCATION Nationwide, local educational agencies are required by federal law to provide appropriate and comprehensive educational programs for students with disabilities, from ages 3 through 22. However, federal funding for support services for these students does not reflect the rising cost of special education services. Congress has set a goal of 40 percent for the federal share of costs of special education services, but averages only about 10 percent of costs in California. Additionally, the federal government provides the state with only a fraction of the funding necessary to support mandated services for preschool-age children with disabilities. Recognizing these federal funding deficiencies, the state has significantly augmented funding to local educational agencies for special education services, providing approximately $4 billion in 2019-20, compared to the federal allocation of $1.3 billion. While the existing state special education funding formula is an improvement over previous models, the methodology remains complex and administratively costly, with base funding rates varying for Special Education Local Plan Areas (SELPAs) across the state and a supplemental patchwork of add-ons with differing allocation formulas and spending restrictions. As discussed in the previous section, the student academic achievement gap is most pronounced for children with disabilities. Of the student groups with data on the California School Dashboard, students with disabilities have the lowest statewide scores for mathematics, English language arts, and college/career readiness. However, from the 2017-18 school year to the 2018-19 school year, these students increased their scores on average in all of these areas (although the achievement gap for students with disabilities grew during this time as their peers' scores increased more quickly). This indicates a momentum that the state can build upon with targeted investments and policy improvements to support educators in maintaining this progress. To improve local educational agencies’ ability to effectively support students with disabilities, the 2019 Budget Act included a historic increase of $645 million Proposition 98 General Fund for special education, providing all SELPAs with at least the statewide target rate for base special education funding, and increasing school districts’ special education funding based on the number of children ages 3 to 5 years with exceptional needs being served. The continued allocation of these funds was contingent upon the adoption by the Legislature and Administration of reforms to the special education funding formula and special education accountability system as part of the 2020 Budget Act. GOVERNOR'S BUDGET SUMMARY — 2020-21 77 K-12 EDUCATION Version number CQ2DDvMG2BB5g7vg To this end, in summer and fall 2019, the Administration and the Legislature engaged with researchers and collaborated with stakeholders, including staff from many local educational agencies and SELPAs, to determine best practices and opportunities to improve the state’s system of special education. Feedback and findings varied, but there was general agreement that: • Skillful teaching in inclusive classrooms improves outcomes for all students, not just students with disabilities; • Needs associated with student mental health and social-emotional issues are becoming more prevalent; • Many teachers are not fully prepared to adapt curriculum to meet the changing needs of students, especially students with disabilities in a general education classroom; • Shortages in special education teachers and specialists make providing services more costly, less effective, and difficult to schedule; and • A clear and consistent message from the state is needed to allow teachers, parents, administrators, and school boards to fully embrace a move towards more inclusive classrooms and eliminate education siloes. In response to these findings, the Budget proposes a three-phase, multi-year process to improve special education finance, services, and student outcomes. INITIAL PHASE: INCREASED FUNDING, A NEW FUNDING FORMULA, AND EXPANDED STATEWIDE SUPPORTS For the 2020-21 fiscal year, the Budget proposes a new special education base formula that uses a three-year rolling average of local educational agency ADA (but still allocated to SELPAs) and includes a 15 percent increase in the Proposition 98 General Fund contribution to the base formula funding over the amount provided in the 2019 Budget Act. Most local educational agencies will see an increase in base funding; however, the approximately 100 local educational agencies with base rates higher than the proposed base rate will be held harmless. The ongoing increase in the base rate is funded with the $645 million provided in the 2019 Budget Act for base rate increases and funding for preschool-age children with disabilities. In addition to the new base rate funding formula, the Budget proposes an additional $250 million ongoing Proposition 98 General Fund based on the number of children ages 3 to 5 years with exceptional needs served. Funding will be allocated on a 78 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg K-12 EDUCATION one-time basis to school districts based on the number of preschool-age children with disabilities that the district serves. School districts will be required to allocate these funds to increased or improved services. For the 2020-21 fiscal year, the Budget proposes that all other existing AB 602 special education categorical funding sources remain as in current law until a finalized formula is adopted in future phases. As discussed in the Educator Recruitment and Professional Development section, the Budget also proposes significant investments in special education professional development and workforce recruitment, including funding for the statewide system of support to provide assistance with special education programs to local educational agencies. Further, the Budget proposes $500,000 one-time Proposition 98 General Fund for a study of the current SELPA governance and accountability structure, and $600,000 one-time Proposition 98 General Fund for two workgroups to study improved accountability for special education service delivery and student outcomes. Finally, the Budget proposes $4 million one-time Proposition 98 General Fund for dyslexia research, training, and a statewide conference. Nearly 800,000 California students are diagnosed with a learning disability that qualifies them for special education services, with the majority of these students diagnosed with either speech and language delays or specific learning disabilities, including dyslexia. Effective interventions for these students include providing early access to skilled educators that are trained in evidence-based instructional strategies and multi-tiered systems of support. FUTURE PHASES: FINALIZING THE FUNDING FORMULA, IMPLEMENTING REFORMS, AND IMPROVING SPECIALIZED SERVICES In future phases, the Administration anticipates (1) finalizing the new special education funding formula to support equity, and more inclusive practices and early intervention services; (2) incorporating changes in statute based on recommendations from the governance and accountability workgroups established in the Budget; (3) pursuing reforms related to family and student engagement, including whole-child and family wrap-around services, and refining funding, accountability, and service delivery for specialized services such as out-of-home placements, non-public school placements, and the State Special Schools; and (4) incorporating recommendations from the Master Plan for Early Learning and Care into the K-12 infrastructure of early intervention services for young children with exceptional needs. GOVERNOR'S BUDGET SUMMARY — 2020-21 79 K-12 EDUCATION Version number CQ2DDvMG2BB5g7vg ADDRESSING THE ACHIEVEMENT GAP To accelerate progress on eliminating the student achievement gap, the state will support school districts in developing innovative initiatives that improve student outcomes. The Budget proposes to build upon the state's existing investments in the statewide system of support that provides assistance to local educational agencies to address systemic issues that lead to poor outcomes for specific student groups. COMMUNITY SCHOOLS Conditions associated with poverty, including food insecurity, housing and employment instability, and inadequate health care, create substantial and compounding barriers to learning. Schools alone cannot alleviate all of the negative effects of poverty. However, a research-based strategy with strong evidence of success is the creation of “community schools”, which can mitigate the educational disadvantages associated with poverty and improve students’ attendance, behavior, and achievement by making schools a hub of community resources. Community schools offer unique models to more efficiently and effectively provide integrated educational, health, and mental health services to students with a wide range of needs. Currently, some county offices of education and school districts support community school initiatives that offer coordinated access to a range of community services, on- or off-campus, including before and after school care. The Budget proposes $300 million one-time Proposition 98 General Fund to establish Community School grants for local educational agencies supporting innovative community school models. Specifically, the grants will provide resources to local educational agencies to implement programs aligned with the community school model, including: • Integrated and coordinated student wrap-around services, including intensive health, mental health, and social services, as well as early screening and intervention for learning and other needs. • Collaborative leadership and support for educators, including professional development in student mental and behavioral health, trauma-informed care, social-emotional learning, restorative justice, and other key areas. • Increased family and community engagement, through activities including home visits and school climate surveys. • Extended learning time and expanded learning opportunities. 80 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg K-12 EDUCATION OPPORTUNITY GRANTS In 2019, based on student outcomes from the California School Dashboard, 333 school districts qualified for differentiated assistance from their county office of education. This means that at least one student group in each of these districts failed to make progress on two or more state priority areas. The California Collaborative for Educational Excellence (CCEE), along with specified lead county offices of education, guides the statewide system of support, which is the infrastructure in place in California to assist local educational agencies with finding the root causes of persistent low performance and creating and executing improvement plans to address those causes. Additionally, the CCEE is currently evaluating four school districts with multiple years of no or negative progress with multiple student groups for more comprehensive support and intervention. The Budget proposes $300 million one-time Proposition 98 General Fund to: (1) establish Opportunity Grants for the state’s lowest-performing schools and school districts, and (2) expand the capacity of the CCEE in its role within the statewide system of support. The grants will pair resources and assistance that grantees receive through the statewide system of support and federal Title I to provide integrated and intensive interventions to close achievement gaps. Funds for the CCEE will be used to: (1) improve the school and school district review process, (2) expand educational leadership training, (3) provide expert assistance to support local improvement plan implementation, and (4) evaluate state and local continuous improvement efforts. COMPUTER SCIENCE It is a priority of the Administration that all students in the K-12 public school system are able to access computer science education to provide them with the skills they need to succeed. In an important step toward this goal, the State Board of Education adopted an implementation plan for California’s first set of Computer Science Content Standards for K-12 schools in May 2019. To support the implementation of the new standards, the 2019 Budget Act included investments in STEM and computer science training for teachers, broadband infrastructure, and a new California Computer Science Coordinator. To build upon the momentum created by these investments, the Budget proposes: GOVERNOR'S BUDGET SUMMARY — 2020-21 81 K-12 EDUCATION Version number CQ2DDvMG2BB5g7vg • $15 million one-time Proposition 98 General Fund for grants to local educational agencies to support the preparation of approximately 10,000 K‑12 teachers to earn a supplementary authorization on their credential to teach computer science. • $2.5 million one-time Proposition 98 General Fund for a county office of education within the Statewide System of Support to identify, compile, and share computer science resources for professional development, curriculum, and best practices. • $1.3 million one-time non-Proposition 98 General Fund to develop a new UC Subject Matter Project in computer science and $340,000 non-Proposition 98 General Fund for one cohort of approximately 1,200 educators to participate in the new project. SCHOOL NUTRITION State law requires California K-12 public schools to offer at least one nutritionally adequate meal to all income-eligible students each school day. School meals are a primary nutrition safety net for needy students, and research has shown that well-nourished youth are more likely to show up for class, stay in school, and succeed academically. The federal government provides about $2.6 billion to California for a variety of school nutrition programs, including the National School Lunch Program, the School Breakfast Program, the Child and Adult Care Food Program, the Summer Food Service Program, and the California Fresh Fruit and Vegetable Program. The state augments the federal funding provided for school nutrition programs by approximately $173 million Proposition 98 General Fund. These funds are disbursed to participating schools in the form of reimbursement for meals served to students whose families are at or below 185 percent of the federal poverty level. The enactment of the LCFF in 2013 created a new funding incentive for local educational agencies to identify students eligible for free and reduced-price meals, as supplemental and concentration grant funding is allocated to local educational agencies in part based on the number of students eligible for the federal and state nutrition programs. However, there are some local educational agencies that choose not to participate in the federal and state nutrition programs. Anecdotal evidence suggests that their reasons for non-participation include the lack of flexibility in the programs’ requirements, and the relatively low rate of reimbursement available. To improve the quality of subsidized school meals and encourage participation in the state and federal school nutrition programs, the Budget proposes $60 million Proposition 82 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg K-12 EDUCATION 98 General Fund to increase funding for school nutrition. Additionally, the Budget proposes $10 million Proposition 98 General Fund to provide training for school food service workers to promote healthier and more nutritious meals. Further, as discussed in the Statewide Issues and Various Departments chapter, the Budget proposes $10 million non-Proposition 98 General Fund in 2020-21 and $1.5 million annually thereafter for the California Department of Food and Agriculture to establish a Farm to School Grant Program to support California farmers and expand healthy food access by providing grants to schools. SCHOOL FACILITIES PUBLIC PRESCHOOL, K-12, AND COLLEGE HEALTH AND SAFETY BOND ACT OF 2020 Recognizing that the number of applications received by the State Allocation Board exceeded available voter-approved new construction and modernization bond funding, Chapter 530, Statutes of 2019 (AB 48) placed a $15 billion general obligation bond—the Public Preschool, K-12, and College Health and Safety Bond Act (Act) of 2020—on the March 3, 2020 ballot for consideration by the voters. If approved, the Act would provide $9 billion to support K-12 facilities construction, of which: • $5.2 billion would support modernization projects, including $150 million to support lead in drinking water testing and remediation; • $2.8 billion would support new construction projects; • $500 million would support charter school construction projects; and • $500 million would support career technical education projects. If the Act is approved by voters, AB 48 reforms the School Facilities Program to more equitably address the changing needs of K-12 school districts and charter schools, better promote energy efficiency, and to address lead in drinking water. The Act also contains provisions to assist school districts affected by natural disasters, and lowers fees to support construction of needed multifamily housing units. Core programmatic revisions include: • Implementing an equitable formula to compute a school district’s state and local share of the costs for a new construction or modernization project; GOVERNOR'S BUDGET SUMMARY — 2020-21 83 K-12 EDUCATION Version number CQ2DDvMG2BB5g7vg • Processing new construction and modernization applications on a quarterly basis based upon a specified priority processing order; • Authorizing school districts to use new construction and modernization funding to provide access to broadband Internet, address seismic deficiencies, construct school kitchens, and construct or modernize transitional kindergarten classrooms, public preschool facilities, and facilities supporting school nurses and counselors; • Setting aside up to 10 percent of the new construction and modernization funding to specifically support small school district facilities projects and enabling small school districts to reserve bond authority and be eligible for grants to procure technical assistance from specified public agencies; and • Adjusting and expanding the eligibility provisions for school districts requesting financial hardship assistance. If voters approve the Public Preschool, K-12, and College Health and Safety Bond Act of 2020 in March of this year, the Administration will revise its proposed K-12 bond investments to address school district lead in drinking water testing and remediation, districts recovering from a natural disaster, and other priority areas not reflected in prior bond acts. The Infrastructure chapter includes additional details regarding the Public Preschool, K-12, and College Health and Safety Bond Act of 2020. 2016 BOND ACT INVESTMENTS Proposition 51, approved by voters in November 2016, authorized a total of $7 billion in state general obligation bonds for K-12 schools to be allocated through the School Facilities Program in place as of January 1, 2015. Approximately $600 million in Proposition 51 bond funds were expended in each of the fiscal years 2017-18 and 2018-19. As in 2019-20, the Budget allocates $1.5 billion Proposition 51 bond funds to support school construction projects, which is more than double the amount allocated in 2018-19. KINDERGARTEN AND PRESCHOOL FACILITIES The state has made significant investments in the improvement and expansion of kindergarten facilities, with the goal of moving more programs from part-day to full-day to improve educational outcomes for children and better accommodate working parents. The 2018 and 2019 Budget Acts included a total of $400 million one-time non-Proposition 98 General Fund for eligible school districts to construct new, or retrofit 84 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg K-12 EDUCATION existing, facilities for full-day kindergarten programs. Of this amount, roughly $300 million remains available to support the goal of converting existing part-day kindergarten programs to full-day programs. Funds in this program are prioritized for school districts with high rates of students receiving free and reduced price meals and enable eligible school districts to qualify for financial hardship funding similar to the traditional K-12 facilities program. The Budget proposes dedicating a portion of these funds to support the construction of preschool facilities on school campuses. Additionally, as discussed in the Early Childhood chapter, the Budget proposes $75 million Proposition 98 General Fund to expand the Inclusive Early Education Expansion Program. This program was created as part of the 2018 Budget Act and provides funding to local educational agencies to construct or modify preschool facilities to serve students with exceptional needs or severe disabilities. The program received a total of $177 million in the 2018 and 2019 Budget Acts. Further, as referenced in the Early Childhood chapter, if the Public Preschool, K-12, and College Health and Safety Bond Act of 2020 is approved by voters in March, the Administration will propose statute authorizing the State Allocation Board to provide a new construction or modernization per-pupil grant enhancement to local educational agencies proposing to construct or modernize facilities to expand preschool programs on school campuses. Participants would be required to use the applicable facility to expand the number of preschool students served by the local educational agency consistent with current preschool staffing standards. OTHER K-12 BUDGET ADJUSTMENTS Significant Adjustments: Local Property Tax Adjustments—An increase of $7.3 million Proposition 98 General Fund for school districts and county offices of education in 2019-20 as a result of decreased offsetting property tax revenues, and a decrease of $1.1 billion Proposition 98 General Fund for school districts and county offices of education in 2020-21 as a result of increased offsetting property taxes. School District Average Daily Attendance—A decrease of $268.5 million Proposition 98 General Fund in 2019-20 for school districts resulting from a decrease in projected average daily attendance from the 2019 Budget Act, and a decrease of $175.1 million Proposition 98 General Fund in 2020-21 for school districts resulting from a further projected decline in average daily attendance for 2020-21. GOVERNOR'S BUDGET SUMMARY — 2020-21 85 K-12 EDUCATION Version number CQ2DDvMG2BB5g7vg Cost-of-Living Adjustments—An increase of $122.4 million Proposition 98 General Fund to reflect a 2.29 percent cost-of-living adjustment for categorical programs that remain outside of the Local Control Funding Formula, including Special Education, Child Nutrition, State Preschool, Youth in Foster Care, Mandates Block Grant, Adults in Correctional Facilities Program, American Indian Education Centers, and the American Indian Early Childhood Education Program. County Offices of Education—An increase of $5.7 million Proposition 98 General Fund to reflect a 2.29-percent cost-of-living adjustment and average daily attendance changes applicable to the LCFF. Fiscal Crisis Management and Assistance Team—An increase of $695,000 Proposition 98 General Fund for: (1) increased workload related to school districts in fiscal distress and expanded training, and (2) improving staff recruitment. Instructional Quality Commission—An increase of $483,000 non-Proposition 98 General Fund on a one-time basis for the Instructional Quality Commission to continue its work on the development of model curriculum and frameworks. 86 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg HIGHER EDUCATION HIGHER EDUCATION C alifornians are building the workforce of the future by pursuing educational opportunities, forming regional partnerships, and establishing innovative companies. Higher education represents a key pathway for Californians to access education and training opportunities, develop the skills needed to meet the state’s ever-changing workforce needs, and to improve their upward economic mobility. Enabling current and future students to successfully meet their higher education goals and achieve upward economic mobility is critical to creating a California for all. Building upon last year’s investments, the Budget proposes continued investments in the state’s universities and colleges, enabling them to further increase access to higher education, improve student success and timely degree completion, and close student achievement gaps. The Budget addresses student cost pressures through California Community Colleges (CCCs) by reducing textbook costs, reducing time to degree completion and transfer, and supporting students’ access to food through campus food pantries. The Budget also reflects investments in the University of California (UC) and California State University (CSU), with the expectation that both segments expand access, and continue efforts aimed at graduating more students, closing achievement gaps, meeting the educational needs of students in underserved regions of the state, and improving all students’ time-to-degree completion. GOVERNOR'S BUDGET SUMMARY — 2020-21 87 HIGHER EDUCATION Version number CQ2DDvMG2BB5g7vg OVERVIEW The Budget proposes total funding of $36 billion ($21.2 billion General Fund and local property tax and $14.8 billion other funds) for higher education. The total reflects growth of approximately $111 million (an increase of $376 million General Fund and local property taxes, and a decrease of $265 million from other funds—largely attributable to one-time capital outlay expenditures) compared to revised 2019-20 expenditures. The figure on Higher Education Expenditures displays additional detail about funding for higher education. FRESNO DRIVE As referenced in the Jobs and Economy and Statewide Issues and Various Departments chapters, the Budget includes $50 million one-time General Fund to support the Fresno Developing the Region's Inclusive & Vibrant Economy (DRIVE) 88 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg HIGHER EDUCATION initiative, which proposes Fresno area regional investments focused on improving the economic mobility of Californians living in the region. Specifically, the Budget includes the following investments: • Fresno-Merced Food Innovation Corridor—An increase of $33 million one-time General Fund for the establishment of an innovation corridor to stimulate research and development, commercialization, and innovation to support advanced sustainable agricultural production and high-quality jobs in the San Joaquin Valley. The Department of Food and Agriculture will work with local educational institutions, the Governor’s Office of Business and Economic Development, and regional partners to prioritize and implement investments for this initiative, including leveraging philanthropic and private support. • Fresno Integrated K-16 Education Collaborative—An increase of $17 million one-time General Fund to support a plan to design educational pathways to improve social and economic mobility in the greater Fresno region. The project will increase educational attainment and economic mobility by building an efficient path for students in the region, from secondary school through college, and into jobs in high-wage, high-growth sectors. CALIFORNIA COMMUNITY COLLEGES The CCCs are the largest system of higher education in the nation, serving roughly one-quarter of the nation's community college students, or approximately 2.1 million students. The CCCs provide basic skills, vocational, and undergraduate transfer education with 73 districts, 115 campuses, and 78 educational centers. In 2018-19, the CCCs awarded over 98,000 certificates and 186,000 degrees and transferred over 103,000 students to four-year institutions. CONTINUED IMPLEMENTATION OF THE STUDENT-CENTERED FUNDING FORMULA The Budget continues supporting student success and closing longstanding achievement gaps in the CCC system. The Student-Centered Funding Formula was established in the 2018 Budget Act to address the shortcomings of a decades-old, enrollment-based apportionments formula by better prioritizing student access and success. The 2019 Budget Act included several refinements to provide more stability for colleges under the formula, including awarding funding for a student’s highest outcome earned for specified student success metrics, directing the CCC Chancellor’s GOVERNOR'S BUDGET SUMMARY — 2020-21 89 HIGHER EDUCATION Version number CQ2DDvMG2BB5g7vg Office to recalculate the Student-Centered Funding Formula rates, and specifying that those rates be reflected in statute for the 2020-21 fiscal year. Recognizing that the formula is in the second year of implementation, the Budget proposes no further refinements to the formula in fiscal year 2020-21. The Chancellor’s Office is continuing to make improvements to its data collection and implementation plan to improve the accuracy of the data reported by districts for planning purposes. Additionally, the Funding Formula Oversight Committee recently recommended that the Administration and Legislature include a metric reflecting first-generation college students within the funding formula. The Administration supports this recommendation, but recognizes that incorporating this metric first requires the collection of first-generation student data that aligns with the Committee’s recommended definition of a first-generation college student. The Administration expects the Chancellor’s Office to develop guidance and collaborate with CCC districts to collect this data for inclusion in the formula. The Administration also encourages the Chancellor’s Office to work with districts and colleges to implement best practices that increase student access to financial aid under the federal Pell grant and the California College Promise Grant, which, in addition to allowing colleges to maximize resources under the formula’s supplemental allocation, provides additional resources to students to support the costs to attend college. EXPANDING AND SUPPORTING APPRENTICESHIP OPPORTUNITIES The CCCs are central to training and developing the skilled workforce needed for the state to meet its ever-changing workforce needs, and the state must prepare students with the skills needed by employers not only today but into the future. The Budget includes $83.2 million Proposition 98 General Fund to support the following apprenticeship investments: • $15 million Proposition 98 General Fund to augment the California Apprenticeship Initiative, which supports the creation of apprenticeship opportunities in priority and emerging industry sectors. • $20 million one-time Proposition 98 General Fund to expand work-based learning models and programs at community colleges, including working with faculty and employers to incorporate work-based learning into curriculum. 90 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg HIGHER EDUCATION • $48.2 million Proposition 98 General Fund, of which $20.4 million is one-time, to support projected growth in reimbursable apprenticeship instructional hours. STREAMLINING SUPPORT AND TECHNICAL ASSISTANCE The state has historically provided funding to support systemwide technical assistance set-asides and systemwide initiatives to further the development, implementation, and evaluation of various community college categorical programs and initiatives. Many of these supports and initiatives have been established independently of one another, leading to a patchwork of supports and technical assistance for colleges that are not well-coordinated and that may not address the CCC's most pressing needs for technical assistance. To further the coordination and delivery of systemwide technical assistance and systemwide initiatives, the Budget proposes consolidating the technical assistance set-asides for several categorical programs and several systemwide initiatives into a new California Community Colleges System Support Program. The program would provide for the enhanced coordination and delivery of systemwide technical assistance or systemwide initiatives to meet the CCC’s evolving needs. Other significant adjustments: • CCC State Operations Support—An increase of $166,000 non-Proposition 98 General Fund for one position for continued support of the Chancellor’s Office’s accounting operations. • Staffing for Working Group on Community College Athlete Compensation—An increase of $700,000 one-time non-Proposition 98 General Fund for the CCC Chancellor’s Office to contract with an external organization to staff a working group on a community college athlete’s use of the athlete’s name, image, and likeness for compensation, pursuant to Chapter 383, Statutes of 2019 (SB 206). • Apportionments Cost-of-Living Adjustment—An increase of $167.2 million Proposition 98 General Fund for a 2.29-percent cost-of-living adjustment. • Apportionments Enrollment Growth—An increase of $31.9 million Proposition 98 General Fund available for enrollment growth. • Apprenticeship Programs—An increase of $83.2 million Proposition 98 General Fund for the following investments: GOVERNOR'S BUDGET SUMMARY — 2020-21 91 HIGHER EDUCATION Version number CQ2DDvMG2BB5g7vg ◦ $48.2 million Proposition 98 General Fund, of which $20.4 million is one-time, to support projected increases in apprenticeship instructional hours. ◦ $15 million Proposition 98 General Fund to augment the California Apprenticeship Initiative to support the creation of apprenticeship opportunities in priority and emerging industry sectors. ◦ $20 million one-time Proposition 98 General Fund to expand access to work-based learning models and programs at community colleges. • Faculty Support—An increase of $15 million one-time Proposition 98 General Fund for a pilot fellowship program for improving faculty diversity at community colleges and an increase of $10 million one-time Proposition 98 General Fund for part-time faculty office hours. • Food Pantries—An increase of $11.4 million Proposition 98 General Fund to establish or support food pantries at community college campuses. • Zero-Textbook-Cost Degrees—An increase of $10 million one-time Proposition 98 General Fund to develop and implement zero-textbook-cost degrees using open educational resources. • Legal Services—As referenced in the Health and Human Services chapter, an increase of $10 million Proposition 98 General Fund to provide legal services to immigrant students, faculty, and staff on community college campuses. • Dreamer Resource Liaisons—As referenced in the Health and Human Services chapter, an increase of $5.8 million Proposition 98 General Fund to fund Dreamer Resource Liaisons and student support services, including those related to career pathways and economic mobility, for immigrant students in community colleges, pursuant to Chapter 788, Statutes of 2019 (AB 1645). • Instructional Materials for Dual Enrollment Students—An increase of $5 million Proposition 98 General Fund for community colleges to provide instructional materials for dual enrollment students. • Local Property Tax Adjustment—A decrease of $191.1 million Proposition 98 General Fund as a result of increased offsetting local property tax revenues. • CCC Facilities—An increase of general obligation bond funding of $27.6 million for 24 new capital outlay projects. This allocation represents the next installment of the $2 billion available to CCCs under Proposition 51. Construction funding for continuing projects will be considered consistent with project schedules. 92 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg HIGHER EDUCATION • 2020 Bond Act—Chapter 530, Statutes of 2019 (AB 48) places a $15 billion general obligation bond—the Public Preschool, K-12, and College Health and Safety Bond Act (Act) of 2020—on the March 3, 2020 ballot for consideration by the voters, of which $2 billion will fund CCC facilities. If the Act is approved, these additional resources will be available to fund CCC projects with a focus on the most critical to the system's reported capital needs and toward projects that have appropriate local matching resources. CALIFORNIA STATE UNIVERSITY The CSU provides undergraduate and graduate instruction generally up to the master’s degree. Its 23 campuses enroll approximately 410,000 students. In 2018-19, the CSU awarded 127,400 degrees. The CSU also provides opportunities for residents to enroll in professional and continuing education programs. The CSU is striving to better fulfill its mission through the Graduation Initiative 2025, which aims to increase four-year graduation rates, increase two-year transfer graduation rates, and eliminate equity gaps. The CSU is an especially important institution for providing four-year education in some of the most underserved region of the state, including the Far North, the Central Valley, and the Inland Empire. The Budget includes a five-percent increase in base resources, or $199 million ongoing General Fund, to support the CSU’s operational costs, expand CSU enrollment, and further achieve the goals of the CSU’s Graduation Initiative 2025. In addition, the Budget includes $6 million one-time General Fund to support the development or expansion of degree and certificate completion programs via the Extended and Continuing Education programs, with a focus on online programs. These investments are provided with the expectation that CSU will continue to improve college affordability, support additional student enrollment at the most impacted campuses and programs, and continue making progress towards the goals of Graduation Initiative 2025, including improving degree completion of underrepresented groups. GRADUATION INITIATIVE 2025 The CSU Graduation Initiative 2025, adopted by the Board of Trustees in 2016, commits the CSU to increasing the four-year graduation rate to at least 40 percent, increasing GOVERNOR'S BUDGET SUMMARY — 2020-21 93 HIGHER EDUCATION Version number CQ2DDvMG2BB5g7vg the two-year graduation rate to at least 45 percent, and closing achievement gaps between different groups of students by 2025. The CSU continues to make significant strides to meet these goals. The 2018-19 academic year resulted in a record high number of graduates, the highest ever four-year graduation rate for first-time students, and the highest ever two-year graduation rate for transfer students. The Administration expects the CSU to continue supporting the underlying goals of the Graduation Initiative, which will better improve students’ timely degree completion and reduce students’ total degree costs, and to focus on reducing equity gaps in degree completion by roughly one-fifth of the gap, consistent with CSU's broader commitment to equity. EXTENDED AND CONTINUING EDUCATION FOR DEGREE COMPLETION Millions of Californians have some college credits, but have not completed a degree, and are not currently enrolled in a higher education institution. To better enable these students to complete their degree or certificate program, the Budget includes $6 million one-time General Fund to develop or expand degree and certificate completion programs through CSU Extended and Continuing Education programs, with a focus on the development of online programs. Providing additional options for those seeking to complete their degree or certificate will provide further opportunities to improve their long-term economic and social mobility. Other significant adjustments: • Ongoing Base Growth—An increase of $199 million ongoing General Fund, which represents an increase in base resources of five percent, with the expectation that these funds will be used to support the University’s operational costs, expand student access, and support continued progress toward achieving the goals of the Graduation Initiative 2025. • Expanded and Continuing Education—An increase of $6 million one-time General Fund to support the development and expansion of degree and certificate completion programs, with an emphasis on online programs. • Summer Financial Aid Program—The Budget shifts the suspension date for the CSU Summer Financial Aid program from December 31, 2021 to June 30, 2023. The suspension would be lifted if the Administration determines through the 2023 Budget Act process that there is sufficient General Fund revenue to support all suspended programs in the subsequent two fiscal years. 94 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg HIGHER EDUCATION • 2020 Bond Act—Chapter 530, Statutes of 2019 (AB 48) places a $15 billion general obligation bond—the Public Preschool, K-12, and College Health and Safety Bond Act (Act) of 2020—on the March 3, 2020 ballot for consideration by the voters. If the Act is approved by voters, the Board of Trustees of the CSU would be required to adopt five-year campus plans that reflect specified affordable student housing information and goals. The Trustees would be required to consider several key inputs, including a campus’s affordable student housing plan, when determining whether to request state funding for a project, and $2 billion in state General Obligation bonds would be allocated to support CSU projects. Further, if the Act is approved, the Administration will submit a CSU bond investment proposal to the Legislature to support proposed CSU projects that would address critical fire and life safety issues, seismic deficiencies, and critical deferred maintenance. UNIVERSITY OF CALIFORNIA The UC offers formal undergraduate and graduate education, is the public segment authorized to independently award doctoral degrees, and is designated as the state’s primary academic agency for research. Its 10 campuses enroll more than 280,000 students. In 2018-19, the UC awarded nearly 77,700 degrees. An additional 400,000 students participate in continuing education programs through the UC extension centers. The Budget proposes a $217.7 million ongoing General Fund augmentation to support a five-percent General Fund increase in base resources for UC campuses and the Division of Agriculture and Natural Resources; expanded enrollment and operational funding at the UC Riverside School of Medicine; service expansion for the UC San Francisco School of Medicine Fresno Branch Campus in partnership with UC Merced; the Center for Public Preparedness Multi-Campus Research Initiative; and baseline adjustments for immigrant legal services and graduate medical education. In addition to this ongoing funding, the Budget proposes $55.3 million one-time General Fund to develop a grant program for animal shelters, to support degree and certificate completion programs at UC extension centers, and to develop a UC Subject Matter Project in computer science. These investments are provided with the expectation that UC will continue to focus on maintaining college affordability, increasing student access, improving timely degree completion, and reducing achievement gaps. GOVERNOR'S BUDGET SUMMARY — 2020-21 95 HIGHER EDUCATION Version number CQ2DDvMG2BB5g7vg STUDENT ACCESS UC indicates it will use funding provided in the 2019 Budget Act to serve approximately 3,200 additional resident undergraduate students in fiscal year 2019-20, and 1,600 additional resident undergraduate students in fiscal year 2020-21. The Administration expects the UC to use a portion of the flexible resources included in the Budget to further increase resident undergraduate enrollment in fiscal years 2020-21 and 2021-22. To expand medical school enrollment and support medical school operating costs in specified regions of California with a critical shortage of medical professionals, the Budget includes $25 million ongoing General Fund to expand enrollment and increase operational support for the UC Riverside School of Medicine, and $15 million ongoing General Fund to expand the UC San Francisco School of Medicine Fresno Branch Campus in partnership with UC Merced. DEGREE COMPLETION Millions of Californians have some college credits and no degree, and are not currently enrolled in a college or university. Building upon a one-time $15 million investment made in the 2019 Budget Act to support degree and certificate completion through UC extension, the Budget provides $4 million one-time General Fund to support degree and certificate completion programs at UC extension centers, with a focus on the development of online programs. These funds will provide additional, flexible options for Californians to complete advanced credentials, improving their long-term economic and social mobility. Other significant adjustments: • Base Growth—An increase of $169.2 million ongoing General Fund, which represents an increase in base resources of five percent, with the expectation that these funds will be used to increase undergraduate enrollment, and to support operational costs and student support services. • Agriculture and Natural Resources—An increase of $3.6 million ongoing General Fund, which represents an increase in base resources of five percent, to support operational costs for the Division of Agriculture and Natural Resources. 96 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg HIGHER EDUCATION • Collaborative Research for Emergency Preparedness—An increase of $3 million ongoing General Fund to support the UC San Diego Center for Public Preparedness Multi-Campus Research Initiative. • Graduate Medical Education—An increase of $2.3 million General Fund, of which $1.6 million is ongoing, to offset declining Proposition 56 revenue supporting a statewide grant program to expand the number of available graduate medical residency slots. • Grants for Animal Shelters—An increase of $50 million one-time General Fund for the UC Davis Koret Shelter Medicine Program to develop a grant program for animal shelters. As referenced in the chapter on Statewide Issues and Various Departments, this program will provide expertise, support, and local assistance over a five-year period to help local communities achieve the state's policy goal that no adoptable or treatable dog or cat should be euthanized. • UC Extension—An increase of $4 million one-time General Fund for degree and certificate completion programs through UC extension centers, with a focus on the development of online degree completion programs. • UC Subject Matter Project—An increase of $1.3 million one-time General Fund to develop a UC Subject Matter Project in computer science and support an initial cohort of K-12 computer science educators. • Summer Financial Aid Program—The Budget shifts the suspension date for the UC Summer Financial Aid program from December 31, 2021 to June 30, 2023. The suspension would be lifted if the Administration determines through the 2023 Budget Act process that there is sufficient General Fund revenue to support all suspended programs in the subsequent two fiscal years. • 2020 Bond Act—Chapter 530, Statutes of 2019 (AB 48) places a $15 billion general obligation bond—the Public Preschool, K-12, and College Health and Safety Bond Act (Act) of 2020—on the March 3, 2020 ballot for consideration by the voters. If the Act is approved by voters, the UC Regents would be required to adopt five-year campus plans that reflect specified affordable student housing information and goals. The Regents would be required to consider several key inputs, including a campus’s affordable student housing plan, when determining whether to request state funding for a project, and $2 billion in state General Obligation bonds would be allocated to support UC and Hastings College of the Law projects. Further, if the Act is approved, the Administration will submit a UC bond investment proposal to the Legislature to support proposed UC projects that would address critical fire and life safety issues, seismic deficiencies, and critical deferred maintenance. GOVERNOR'S BUDGET SUMMARY — 2020-21 97 HIGHER EDUCATION Version number CQ2DDvMG2BB5g7vg CALIFORNIA STUDENT AID COMMISSION Administered by the California Student Aid Commission, the state’s primary financial aid program is the Cal Grant Program. The Cal Grant entitlement program provides financial aid awards to students who meet specified eligibility criteria, and who attend one of the state’s qualifying public institutions or independent and private institutions. Students who are ineligible for the Cal Grant entitlement program can compete for financial aid awards available through the Cal Grant competitive program. The Budget assumes total financial aid expenditures of $2.7 billion, of which $2.6 billion supports the Cal Grant Program and Middle Class Scholarship. In 2018-19, over 147,000 students received new Cal Grant awards, and over 223,000 students received renewal awards. IMPROVING COLLEGE AFFORDABILITY The state’s Cal Grant entitlement program is estimated to provide over 391,000 financial aid awards to students who meet specified eligibility criteria in fiscal year 2019-20. Of these awards, 41,000 competitive Cal Grant awards are annually available to students who demonstrate financial need, but do not meet all of the criteria to receive an entitlement award. The majority of Cal Grant awards provide a stipend to cover some living expenses, such as housing, food, and transportation. However, many students still struggle to afford the total costs of attending a higher education institution in California. The Budget includes CCC investments that are aimed at reducing textbook costs, reducing time-to-degree completion and transfer, and supporting students’ access to food through campus food pantries. The California Student Aid Commission recently convened a statewide workgroup to explore how the state’s financial aid programs can best serve the needs of students and address the total cost of attendance of California’s higher education institutions. The Administration expects the workgroup to consider strategies to mitigate the underlying drivers of non-tuition costs. STUDENT LOAN AND DEBT SERVICE OUTREACH Existing financial aid programs, including student and family loan programs, are intended to subsidize the cost of higher education, making these institutions more accessible. However, these programs can be difficult to understand and often cause 98 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg HIGHER EDUCATION people to forego loans or accept sub-optimal terms or repayment plans. This often causes student loan debt, which once functioned as a temporary bridge or provided a reasonable method to afford college, to be viewed as a significant financial barrier, and lead to some students rejecting available loan aid. The Budget includes $5 million one-time General Fund to support the convening of a student loan working group and to provide student loan outreach. The workgroup will explore administrative strategies and concepts to better ensure students are able to access the most beneficial loan programs, repayment plans, and debt service forgiveness programs. This allocation would support the development of an informational website reflecting all available state and federal loan repayment plans, as well as information regarding local workshop opportunities that borrowers could attend to obtain assistance in understanding federal loans and federal loan repayments. This allocation would also support grants to public colleges and universities to notify borrowers of all available state and federal loan repayment options. Other significant adjustments: • Cal Grant Program Costs—A decrease of $160.8 million in 2019-20 and $63 million in 2020-21 to reflect a decrease in the number of new and renewal awardees in 2019-20 and 2020-21. • Temporary Assistance for Needy Families (TANF) Reimbursements—A decrease of $60.1 million in federal TANF reimbursements in 2020-21, which increases General Fund support for the Cal Grant program by an equal amount. • Cal Grant Access Awards for Student Parents—An increase of $21.6 million General Fund to reflect an increase in the number of estimated recipients in 2020-21. • Tuition Award for Students at Private Nonprofit Institutions—The Budget assumes that independent institutions, as a sector, will meet the Associate Degrees for Transfer acceptance requirements needed to maintain the maximum Cal Grant tuition award at $9,084 for students attending these schools. The Association of Independent California Colleges and Universities, which represents most of these institutions, will report on the sector’s progress toward the goal in April 2020. • Grant Delivery System—An increase of $5.3 million General Fund to fund the third year of project costs for the Grant Delivery System Modernization Project. • Student Loan Debt Service Workgroup and Outreach—An increase of $5 million one-time General Fund to convene a workgroup to analyze student loan borrowing and loan repayment patterns, develop an outreach initiative to educate student GOVERNOR'S BUDGET SUMMARY — 2020-21 99 HIGHER EDUCATION Version number CQ2DDvMG2BB5g7vg loan borrowers about their loans, lending practices, and available repayment options, and provide grants to public universities to inform current and former borrowers of currently available loan repayment options. HASTINGS COLLEGE OF THE LAW Hastings College of the Law is affiliated with the UC system, but is governed by its own Board of Governors. Located in San Francisco, it primarily serves students seeking a Juris Doctor degree, but also has a Master of Laws program and a Master of Studies in Law program. In 2018-19, UC Hastings enrolled 964 full-time equivalent students. Of these, 940 were Juris Doctor students. Other significant adjustment: • Base Growth—An increase of $1.4 million ongoing General Fund for operational costs. CALIFORNIA STATE LIBRARY The California State Library serves as the central reference and research library for the Governor and the Legislature. The Library collects, preserves, generates, and disseminates information, and provides critical assistance to the libraries across the state. Additionally, the Library administers programs funded by state and federal funds to support local and public library programs. Other significant adjustments: • Lunch at the Library—An increase of $1 million one-time General Fund for library districts to develop summer meal programs for students in low-income communities. • Online Service Systems (Zip Books)—An increase of $1 million one-time General Fund to support the online purchase and delivery of library books through the Zip Books Program. This no-cost service is an alternative to traditional interlibrary loan and enables library patrons to more efficiently request and receive books not available at their local library. • Braille Institute of America in Los Angeles—An increase of $500,000 ongoing General Fund to support services provided by the Braille Institute of America in Los Angeles. 100 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg HIGHER EDUCATION • Statewide Library Broadband Services Augmentation—An increase of $170,000 ongoing General Fund for continued participation in the Corporation for Education Network Initiatives in California. GOVERNOR'S BUDGET SUMMARY — 2020-21 101 Version number CQ2DDvMG2BB5g7vg HOMELESSNESS HOMELESSNESS H omelessness in California is no longer confined to urban corridors. It is now present in both urban and rural communities throughout the state and puts stress on public resources from emergency rooms to jails and public works departments. It is a complex social services problem and must be combatted at its root causes, which is why the Budget introduces several new strategies to complement the sizable investments to address this complicated problem. The Budget proposes a radical shift in the state’s involvement to augment local governments’ efforts to shelter the many unsheltered persons living in California, by launching a new state fund for developing additional affordable housing units, supplementing and augmenting rental and operating subsidies, and stabilizing board and care homes. The Administration is asking the Legislature to take early action to establish this fund so that it can expedite the contracts and be ready to deploy investments this summer. The Budget also proposes the Medi-Cal Healthier California for All initiative that will transform the state’s Medi-Cal program to better serve people experiencing or at risk of homelessness who have serious health issues through enhanced case management and expanded investments in social determinants of health, like housing and social services. The Administration will also work to reform the state's behavioral health system, including making changes to the Mental Health Services Act (Proposition 63) to better serve persons experiencing mental illness and homelessness. GOVERNOR'S BUDGET SUMMARY — 2020-21 103 HOMELESSNESS Version number CQ2DDvMG2BB5g7vg RECENT INVESTMENTS Building on the 2018 Budget Act that provided $500 million in emergency aid and support funding to local governments, targeted to fund capital improvements, such as creating emergency shelters and transitional housing, and establish or expand homeless prevention activities, the 2019 Budget Act invested $1 billion to address homelessness. This included $650 million in emergency aid to local governments and hundreds of millions of dollars for expanded health and social services targeted to homeless individuals and individuals at risk of becoming homeless. Other investments from the 2019 Budget Act are outlined as follows: • $120 million one-time General Fund to expand existing whole person care pilot programs that provide housing services, and for new whole person care-like pilots in counties that did not have existing programs. • Major investments to expand the state's mental health workforce, including $50 million one-time General Fund to increase training opportunities in existing mental health workforce programs administered by the Office of Statewide Health Planning and Development, and $35 million one-time General Fund and $25 million one-time Mental Health Services Fund to implement the new 2020-25 Workforce Employment Training Five-Year Plan. • $25 million one-time General Fund for the Bringing Families Home program, a county-matching grant program focused on reducing homelessness among families who are part of the child welfare system, and $25 million ongoing General Fund for counties to assist eligible homeless individuals to seek out disability benefits from relevant programs. • $20 million General Fund for legal assistance for eviction prevention or other tenant defense assistance in landlord-tenant rental disputes, particularly for the homeless, indigent, disabled, elderly, and victims of domestic violence. • $19 million ongoing General Fund to the University of California, the California State University, and the California Community Colleges to support rapid rehousing of homeless and housing-insecure students. Furthermore, the state substantially strengthened core safety-net programs including increasing cash assistance for low-income families (California Work Opportunity Responsibility for Kids), and permanently granting food stamp eligibility for low-income aged, blind and disabled persons receiving Supplemental Security Income/State Supplementary Payments. The state also expanded eligibility and benefits in 104 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg HOMELESSNESS the Medi-Cal program that provides health care coverage to most of the state’s indigent adults, including behavioral health services. IMMEDIATE ACTIONS Recent nationwide data released by the U.S. Department of Housing and Urban Development show that the homeless population continues to grow in California and across the nation, making additional investments critical and timely. In early January 2020, the Governor issued an executive order to take urgent actions to provide additional state aid to support local governments in addressing this crisis. The state will deploy state assets to specific counties, in partnership with philanthropy, to augment local shelter capacity. The Administration will also send out multi-agency strike teams to assist cities and counties in moving individuals from encampments into shelters and connecting them to services. The Administration is also partnering with local researchers to direct a study to better understand the root causes of the state’s homelessness crisis. These efforts will complement and build on solutions being crafted locally through the 100-Day Challenge the Governor issued to local governments in December 2019. These challenges are designed to bring communities together to collaborate, innovate, and execute a coordinated community response to address homelessness issues. The goal is to translate these actions into sustainable, scalable, long-term strategies that reduce homelessness. To date, a number of California jurisdictions have already expressed interest in accepting this challenge. The Administration is encouraging more cities and counties to take immediate action by accepting their own 100-Day Challenges to end homelessness for specific targeted populations, such as veterans or youth, using funds provided in the 2018 and 2019 Budget Acts. Participating entities will receive additional technical assistance through the Homeless Coordinating and Financing Council to assist with these efforts and develop sustainable models. The state will also assist local communities in seeking philanthropic support for these 100-Day Challenges. These efforts will be expedited by statutory changes made last year that streamlined construction of low-barrier navigation centers by exempting these types of structures built on public land from California Environmental Quality Act review. The state is also leveraging its property to provide new assets to help address the state’s homelessness crisis. The state has recently partnered with Los Angeles, San Jose, and San Francisco, to use highway underpasses and other California Department of GOVERNOR'S BUDGET SUMMARY — 2020-21 105 HOMELESSNESS Version number CQ2DDvMG2BB5g7vg Transportation (Caltrans) properties adjacent to highways and state roads for temporary homeless housing, and the Governor has directed Caltrans to share a model template with all other jurisdictions in the state to expedite additional partnerships. The Governor had previously directed the Department of General Services (DGS) to identify state-owned land that could be used for affordable housing development. The Governor has also directed DGS to immediately identify state-owned land that can be used for temporary shelters or permanent supportive housing. These state-owned properties can be leased more quickly and will be prioritized for funding from the new fund. The advantage of building on state property is a reduction in time it takes to develop projects because they do not need to go through local zoning and permitting process, thereby reducing overall project costs. CALIFORNIA ACCESS TO HOUSING AND SERVICES FUND The strategies outlined above are significant and are producing results. More homeless infrastructure is being built, but the state still has a severe shortage of affordable and supportive housing units. Furthermore, funding for housing and rental subsidies are generally limited to federal Housing Choice vouchers, where many jurisdictions have severe shortages and long waitlists. Other rental subsidies are either one-time or limited to populations in specific programs like the CalWORKs program, creating a patchwork of funding streams. To address these shortfalls, the Budget proposes a new state fund to provide additional rental subsidies and develop new, affordable housing units, and stabilize board and care homes. The Budget includes $750 million one-time General Fund to establish the California Access to Housing and Services Fund that will be administered by the state's Department of Social Services. The primary goals of the proposed Fund are to reduce homelessness by moving individuals and families into stable housing, and to increase the number of units available as a stable housing option for individuals and families who are homeless or at risk of becoming homeless. This approach represents a radical shift in the state's involvement to house the many unsheltered persons in California. The Fund will flow through performance-based contracts between the state and regional administrators and will be subject to a 10-percent administrative cap. Regional administrators will provide short- and long-term rental subsidies, make small and medium-sized contributions to encourage development of new units in exchange for a rental credit, and stabilize board and care facilities by funding capital projects and/or operating subsidies. The Fund will also be used to engage with landlords to 106 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg HOMELESSNESS secure units and negotiate individual client leases, provide tenancy support services, and coordinate case management with counties for those receiving rental subsidies to ensure they are enrolled in eligible public assistance programs. To the extent feasible, state funding will be coupled with the use of state properties to expedite the development of more affordable and supportive housing. The Fund will also enable regional partners to pool federal, state, local, and private funds to stabilize the housing circumstances of the state's most vulnerable populations. Several jurisdictions, including Los Angeles, Santa Barbara, and Berkeley, have a similar fund where administrators leverage dollars to connect people to housing, provide financial supports to keep people in their homes, and increase affordable housing capacity. OTHER EFFORTS TO REDUCE HOMELESSNESS MEDI-CAL HEALTHIER CALIFORNIA FOR ALL Medi-Cal Healthier California for All is a major effort proposed in the Budget to transform the state’s Medi-Cal program. In addition to broad delivery system, program, and payment reforms across the Medi-Cal program, the proposal will focus on people experiencing or at risk of homelessness. The initiative is designed to move Medi-Cal to a more consistent and seamless system by reducing complexity and increasing flexibility, identifying and managing member risk and need through whole person care approaches, and addressing social determinants of health, such as housing and social services. The changes being pursued will position the Medi-Cal system to better connect individuals to the services they need, with a specific focus on improving care to individuals experiencing homelessness and/or substance use disorders, and individuals who are involved in the justice system. The Budget also includes funding to support counties in implementing the changes necessary for transformation of the county-run behavioral health and substance use disorder system. See the Health and Human Services chapter for additional information. BEHAVIORAL HEALTH The Administration is also focused on improving outcomes of the state’s behavioral health system through a number of initiatives that improve the integration and parity of behavioral health treatment with physical health. The Administration is furthering these efforts by establishing a Behavioral Health Task Force that will bring together relevant state departments, counties, advocates, health plans, providers, and other GOVERNOR'S BUDGET SUMMARY — 2020-21 107 HOMELESSNESS Version number CQ2DDvMG2BB5g7vg stakeholders to review existing policies and programs and coordinate system changes to prevent and respond to the impacts of mental illness and substance use disorders in California communities. The Administration will also work to reform the Mental Health Services Act (Proposition 63) to better focus on people with mental illness who are also experiencing homelessness, who are involved in the criminal justice system, and for early intervention of children. See the Health and Human Services chapter for additional information. EXPANDING COMMUNITY TREATMENT OF THE INCOMPETENT TO STAND TRIAL POPULATION The Budget proposes to implement a six-year Community Care Collaborative Pilot program in three counties to provide incentives to treat and serve individuals deemed incompetent to stand trial (IST) in the community. This program will primarily target the development of community-based treatment options for individuals who are experiencing mental illness and are homeless. This program will increase local investments in strategies to reduce the rate of arrests, rearrests, and cycling in and out of institutions for individuals who have been deemed incompetent to stand trial. The Budget also includes additional investments in treatment programs in the State Hospitals that will improve outcomes and transitions for individuals leaving the State Hospital system. See the Health and Human Services chapter for additional information. 108 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg HOUSING HOUSING A fter decades of underproduction, Californians now face a staggering housing crisis—not enough supply to match need and skyrocketing housing and rental costs. Affordability issues, once confined to coastal and urban regions, are now a problem across the state. When housing costs are accounted for, California has one of the highest poverty rates in the nation. Half of all renters are rent-burdened, meaning they spend more than 30 percent of their income toward housing. Nearly a third of all renters are severely rent-burdened, spending more than half of their income toward housing. Many must make the decision to pay for housing at the expense of basic necessities like heath care and food, and many are one emergency away from losing their home. A lack of affordable housing directly contributes to increased homelessness. Ultimately, local governments are responsible for land use decisions—including planning, zoning, and permitting for housing. A lack of adequate planning for housing, lengthy local review processes, and other local decisions have created barriers to building more housing. These barriers add to already significant development costs. To address this problem and encourage local jurisdictions to build more, the state has provided a variety of tools to local governments so they can fulfill their housing responsibilities, including legislation to streamline the development process and technical assistance for local governments to plan for needed housing. More recently, the state has provided significant funding. The state will continue to play an active role so that necessary affordable and mixed income housing is being built across the state. GOVERNOR'S BUDGET SUMMARY — 2020-21 109 HOUSING Version number CQ2DDvMG2BB5g7vg RECENT ACTIONS AND INVESTMENTS Recent state investments include a dedicated ongoing revenue source for affordable housing through a real estate transaction fee. Estimated annual revenues from this fee are about $289 million. Additionally, voters approved a $4 billion housing bond pursuant to Chapter 365, Statutes of 2017 (SB 3), which will finance various existing housing programs, including infill infrastructure grants and the Multifamily Housing program, with $1 billion to provide housing purchase assistance for veterans. And beginning in 2014, the state began investing 20 percent of Cap and Trade auction proceeds (around $468 million in 2020-21) in the Affordable Housing and Sustainable Communities program to fund land-use, housing, transportation, and land preservation projects to support infill and compact development that reduce greenhouse gas emissions. The 2019 Budget Act made a historic investment of $1.75 billion in resources to support efforts to build, bolster, and accelerate housing production statewide. This included $250 million for technical assistance and planning, $500 million for infrastructure grants, $500 million to finance the production and preservation of low- and moderate-income housing, and $500 million to expand the state's housing tax credits. These investments are intended to jumpstart production as well as assist in the preservation of low and moderate income housing across the state. To date, a portion of these investments have assisted over 12,000 new first-time home buyers. In February 2019, the first tranche of funding ($40 million) from the new real estate transaction fee for the state’s mixed income program was awarded and has closed construction financing on the development of 240 new multi-family units for seniors. An additional 1,000 units that were awarded funding are expected to begin construction in the upcoming summer. And for the first time in two decades, the large infusion of new state low-income housing tax credits will result in full utilization of federal private activity bonds. Development fees are assessed by local governments to fund vital services, including schools, utilities and transportation. While they are a normal part of doing business, these fees are especially high in California and have contributed to the state's higher housing costs. Total development fees in California can exceed $150,000 per unit, substantially increasing the cost of new housing. To promote the development of new housing, Chapter 530, Statutes of 2019 (AB 48) places a $15 billion general obligation bond for school construction before the voters this spring. This bond includes provisions to promote the development of housing by bringing stability to school development fees until January 1, 2026. Specifically, the changes exempt multi-family housing 110 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg HOUSING developments within one-half mile from a major transit stop from all school development fees and reduce school development fees applicable to all other multi-family housing projects by 20 percent. The 2019 Budget Act recognized the need to create stable housing among renters and included $20 million one-time General Fund for legal services. These services include pre-eviction and eviction legal services, counseling, and renter education. Funding for these services will help protect renters’ legal rights and mitigate evictions across the state. Subsequent to the 2019 Budget Act, the state passed the strongest renter protection package in the nation. This package addresses two of the key causes of the housing crisis—price gouging and evictions. Beginning January 1, 2020, annual rent increases may not exceed five percent, plus inflation, and renters are protected from discriminatory and retaliatory evictions without cause. Pursuant to Chapter 669, Statutes of 2019 (SB 113) and the appellate opinion in National Asian American Coalition v. Newsom, the Administration is exploring, with input from stakeholders, ways to establish and manage a trust to provide sustainable, ongoing legal assistance to California renters and homeowners in housing-related matters. In accordance with SB 113 and the court decision, $331 million has been deposited into the National Mortgage Special Deposit Fund. After the funds are transferred to and managed in the trust, the trust will support local nonprofit programs to avoid preventable foreclosures by providing borrower relief and assist housing counselors or other legal aid agencies in representing renters in housing-related matters. ECONOMIC DEVELOPMENT TOOLS In addition to these investments, the 2019 Budget Act included statutory changes to make economic development tools more accessible for local governments. Changes were made to streamline the process for local governments to issue debt to finance infrastructure and facilitate housing development. This is to encourage the formation of more Enhanced Infrastructure Financing Districts, which will assist local governments by bringing in vital capital to develop necessary infrastructure and housing. Moreover, this capital can be paired with federal Opportunity Zones, leveraging even more investments for local governments. GOVERNOR'S BUDGET SUMMARY — 2020-21 111 HOUSING Version number CQ2DDvMG2BB5g7vg INNOVATIVE AFFORDABLE HOUSING PROJECTS ON EXCESS STATE PROPERTY As housing prices rise and affordability declines, the state, local jurisdictions, and developers must think differently and creatively. In January 2019, the Governor issued an innovation challenge inviting developers to pursue streamlined demonstration projects leading to affordable housing developments. This could include modular or manufactured construction, and other possibilities on excess state property. The Executive Order required the Department of General Services (DGS) and the Department of Housing and Community Development (HCD) to work together to produce a list of excess property suitable for these demonstration projects. As these excess parcels will not need upfront purchase capital, and are not subject to local requirements, affordable housing developers will have greater flexibility to use innovative techniques to produce units more quickly and cost-effectively than a traditional project. The 2019 Budget Act included $3.4 million one-time General Fund and $782,000 ongoing General Fund to implement the Executive Order. Over three months, DGS reviewed over 44,000 parcels statewide to identify excess sites. DGS and HCD have identified approximately 100 parcels to initially focus on for low-cost, long-term ground leases for these innovative proposals. The state is working with local governments on innovation challenge efforts. Nearly 20 cities and counties have expressed interest in partnering with the state on state parcels within their jurisdictions. The first Request for Proposals for an affordable housing project in the City of Stockton was released in September 2019 and received several responsive applications. Additionally, the state continues to actively work with the Capitol Area Development Authority on an affordable housing project within the Capitol Area Plan. The state is also about to begin procuring a developer for a parcel in South Lake Tahoe, with a Request for Qualifications expected to be released this January. The Administration intends to continue to scale these efforts, and anticipates substantially increasing the number of solicitations for state parcels in the coming year. PRIVATE INVESTMENTS In addition to innovation challenges, the Administration continues to seek private philanthropy to continue to offset the cost of development. To date, the state has 112 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg HOUSING succeeded in securing $4.5 billion in commitments, including loans, from Apple, Google, and Facebook to finance affordable housing projects. The state will continue to pursue innovative opportunities to tap into private capital to further bolster housing production to supplement state and local efforts. REVAMPING THE STATE PLANNING PROCESS FOR HOUSING Adequate planning for housing is foundational to more housing being built across the state. The state assesses and calculates the housing needs for regions throughout California and works with local governments to develop housing elements in their general plan that will address housing demand. However, the regional housing needs allocation (RHNA) process has been woefully inadequate, allowing certain jurisdictions to negotiate their housing numbers down with little authority for the state to intervene and enforce requirements that adequate housing is permitted and built. Recent legislative changes have provided HCD with more authority to oversee the planning process. In addition to enhanced oversight, there needs to be significant improvement to the RHNA process. The 2019 Budget Act initiated a new statewide assessment of regional housing needs. By 2023, HCD, in consultation with stakeholders, will revamp the next RHNA cycle to promote and streamline housing development. This will maximize the number of new homes for which California’s cities and counties plan and zone. Importantly, the new process will provide for more ambitious goals to address California’s housing crisis. The 2019 Budget Act also provided for additional legal remedies to hold persistently non-compliant local governments accountable to their housing goals. This includes increasing fines, authorizing the State Controller to intercept funds to pay fines, and authorizing a court to appoint an agent to take actions to bring a jurisdiction into compliance. The state has taken and will continue to take an active role in supporting local jurisdictions as they come into compliance with their housing element, as demonstrated in February 2019 when the Administration met with leaders of non-compliant jurisdictions. Since that time, 16 of the initial 47 non-compliant jurisdictions have worked with HCD to become compliant. Likewise, the state will use its authority to take legal action against local jurisdictions found in consistent violation of their housing element, such as the City of Huntington Beach. GOVERNOR'S BUDGET SUMMARY — 2020-21 113 HOUSING Version number CQ2DDvMG2BB5g7vg IMPROVING STATE HOUSING PROCESSES AND PROCEDURES The sizable investments and important policy and legal changes made to date have paved a way for the state and local jurisdictions to address the decades-in-the-making housing crisis. Turning the tide will require a concerted commitment from the state and local jurisdictions to do more to streamline and reduce costs and to address other barriers to building. In recent years, California has passed legislation to expedite approvals for various housing projects and to increase density bonuses for affordable projects. Some local jurisdictions have enacted similar pro-housing policies, like by-right zoning and reduced impact fees. But much more must be done at both the state and local levels. The Administration is implementing process improvements and reforms to better align its housing programs, which span multiple departments and agencies. Most recently, the state implemented a joint application process between the California Housing Finance Agency, the California Debt Limit Allocation Committee, and the California Tax Credit Allocation Committee for the administration of a mixed income housing program. The state continues to review internal processes and procedures of its housing entities to streamline housing policies, processes, and requirements in an effort to improve the coordination and disbursement of funding across government—removing potential barriers to greater housing production. This includes exploring over the next year the creation of an agency exclusively focused on housing and homelessness. It also includes using its existing authority and tools to address barriers to housing production. Lastly, it includes using excess properties for new housing, eliminating red tape, and speeding up the process to get much needed housing online. Likewise, local jurisdictions must take action to reduce barriers and streamline processes necessary for needed housing development. Even with the significant investments in housing made by the state, to date, at an aggregate level, there is a sharp drop-off between zoning and permitting new housing units, and another drop off in the number of units constructed. According to numbers from the last RHNA cycle, local jurisdictions have permitted only 43 percent of the units needed to meet their housing needs. Furthermore, only 33 percent of needed units have actually been constructed. This unworkable gap will likely widen in the next RHNA cycle. The state will continue to pursue policy changes that support housing production as well as hold local jurisdictions accountable to remove barriers to more housing production in the state. The Budget includes $10 million General Fund annually for the 114 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg HOUSING next three years to support the state's efforts to increase housing production. The Administration is committed to working with the Legislature this year on additional actions to expedite housing production, including changes to local zoning and permitting processes, as well as adding predictability and reducing the costs of development fees. TOTAL HOUSING INVESTMENT Housing production and affordability remains a top priority for the Administration and a lack of affordable housing directly contributes to the homelessness epidemic seen across the state. To address the housing crisis, the Budget builds upon its investments through a multi-pronged approach to increase housing production and help provide access to services to individuals and families with immediate needs. In total, the Budget includes $6.8 billion across multiple departments and programs to address housing throughout the state. GOVERNOR'S BUDGET SUMMARY — 2020-21 115 HO USING 2020-21 Affordable Housing Funding {Dollars in Millions] Department Program Amount Veterans and Affordable Housing Bond Act Programs (SB 3] $553.0 No Ptace Like Home Program $400.0 Department of Housing and Community Building Homes and Jobs Fund Programs (SB 2) $217.0 Development Federal Funds $53.0 Veterans Housing and Homelessness Prevention Various $45.0 Single Family First Mortgage Lending 352.5000 Multifamily Conduit Lending $600.0 Multifamily Permanent Lending $140.0 California Housing Finance Agency? Mixed-Income Loan Program $180.0 Innovative Fund Programs $60.0 Single Family Down Payment Assistance (SB 3] 585.0 Special Needs Housing Program $25.0 2? Low Income Housing Tax Credits (Federal) $295.0 3? Tax Credit Allocation Committee Low Income Housing Tax Credits (State) $601.0 Farmworker Housing Assistance Tax Credits $1.0 Strategic Growth Council? Affordable Housing and Sustainable Communities $463.0 Department of Veterans Affairs CaiVet Farm and Home Loan Program 3) $220.0 Domestic ?violence Housing First Program $34.0 Transitional Housing Program $40.0 Of?ce of Emergency Services Specialized Emergency Housing $10.0 Domestic Violence Assistance. Equality in Prevention and Services. Human 5? Traf?cking Victim Assitstance. North American Domestic Violence and Sexual - Assault Integrated Services for Paroiees $4.0 Cal'fml'lla Papat?iment and Specialized Treatment of Optimized Programming. Paroles Service Center, Day 5' Rehabilitation Reporting Center. Female Offender Treatment and Employment Program. Proposition - 4? Grant Family Stabilization, Housing Component $46.9 Department of Social Services Housing Support Program $95.0 HIV Care Program - 5" Department of Public Health Housing Opportunities for Persons with AIDS 54.0 Housing Plus Program $1.0 Total 56.8373 1r Amount is based on lending activities from 20131153. 2i Amount represents voluntary allocations of local Proposition 03 funds from 16 participating counties. 3! This represents the estimated 9 percent tax credits to be allocated in 2020 plus the estimated amount of 4 percent credits to be awarded in 2020. 4i The A?ordable Housing and Sustainable Communities program amount re?ects 20 percent of the projected Cap and Trade revenues. The Transformetive Climate Communities program [$41.5 million in carryover available for 2020-21] funds various activities. including affordable housing. 5? The State provides a number of wrap?around supportive services through these programs including housing, which cannot be separated from the program's overall budget. 116 2020-21 Version number CQ2DDvMG2BB5g7vg CLIMATE RESILIENCE CLIMATE RESILIENCE F or California, climate change is a real and present danger. In the past year, the state has experienced extreme winds and devastating wildfires, extreme heat, and flooding and mudslides. The state also continues to address longer-term, chronic climate impacts like sea level rise and the increasing volatility of its water supply. California continues to lead in mitigating the risks from current climate impacts while aggressively reducing greenhouse gas emissions. The state must continue to be proactive in the face of clear threats to infrastructure and communities, critical ecosystems, and food systems, and continue to meet ambitious targets to reduce the very emissions that are responsible for these impacts. The state must do so with the recognition that climate policies are also economic and workforce policies, with the potential to help create a more inclusive and sustainable economy for all Californians. REDUCING CLIMATE RISK WHILE TRANSITIONING TO CARBON NEUTRALITY As a responsible member of the global community, the state must reduce climate risk, especially in the most climate-vulnerable communities, while transitioning to a carbon neutral economy by 2045. Key to this transition is achieving maximum decarbonization while also investing in land-based carbon removal strategies across all regions, sectors, and areas of government. At the same time, the state must invest in resilience in the face of an already-changing climate. Investing in these forward-looking strategies today will save lives and dollars tomorrow. GOVERNOR'S BUDGET SUMMARY — 2020-21 117 CLIMATE RESILIENCE Version number CQ2DDvMG2BB5g7vg Executive Order N-19-19 directed the Department of Finance, in consultation with the Governor's Office of Planning and Research and the California Department of Human Resources, to develop a Climate Investment Framework for the California Public Employees' Retirement System, California State Teachers’ Retirement System, and the University of California Retirement Plan. The framework will include an analysis of sound investment practices and where each pension fund currently stands in relation to statewide goals to support sustainable investments. The Department of Finance anticipates completion of the framework in spring 2020. The Budget reflects the following priorities to address both short- and long-term climate risks: • Transportation—Decarbonization in the state’s largest sector of emissions by providing clean vehicles, clean fuels, low-carbon transportation options, and transit-oriented development, with enhanced prioritization on short-term environmental and public health benefits in disadvantaged and vulnerable communities. • Natural and Working Lands—Strategies that increase sequestration and reduce emissions from the state's forests, agricultural lands, and conservation lands, and that support resilience across water systems. • Climate Resilience—Assistance to regions and communities to become more resilient in the face of current and future climate impacts. To tackle these goals at the scale and speed the science demands, the Administration proposes creating an integrated and comprehensive Climate Budget that prioritizes using government dollars to strategically leverage private sector capital in all three priority issue areas. CLIMATE BUDGET The Climate Budget takes a disciplined approach to government investment in meeting the state's priority climate goals of reducing climate risk while achieving carbon neutrality. The Climate Budget will invest $12.5 billion over the next five years, including the following key components: 118 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg CLIMATE RESILIENCE CLIMATE RESILIENCE BOND The Administration is proposing a $4.75 billion climate resilience bond for the November 2020 ballot to support investments over the next five years to reduce specific climate risks across California through long-term investment in natural and built infrastructure, especially in the state’s most climate-vulnerable communities. The bond is structured based on climate risks, and approximately 80 percent of the funds are allocated to address immediate, near-term risks (floods, drought, and wildfires), while the remaining funds lay the groundwork for addressing long-term climate risk (sea level rise and extreme heat). The bond aligns with the Administration’s draft Water Resilience Portfolio in addressing drought and flood risks, and also makes strategic investments in community resilience. If approved by the voters, the bond will help the state move toward achieving carbon neutrality and carbon sequestration goals, and provide funding for programs that result in multiple benefits, leverage non-state funding, and help address liabilities such as the Salton Sea. For additional information on the draft Water Resilience Portfolio, see the Infrastructure chapter. GOVERNOR'S BUDGET SUMMARY — 2020-21 119 RESIDENCE Climate Resilience Bond Community Resilience: $250 million Sea Level Rise: $500 million . Wild?re: $50 million Drinking Water, Flood, Drought: $2,925 million 120 2020-21 Version number CQ2DDvMG2BB5g7vg CLIMATE RESILIENCE DRINKING WATER, FLOOD, AND DROUGHT Across various categories of water resilience approaches, 62 percent of the bond focuses on reducing risks to communities from climate impacts on water systems, GOVERNOR'S BUDGET SUMMARY — 2020-21 121 CLIMATE RESILIENCE Version number CQ2DDvMG2BB5g7vg including floods, droughts, and degraded drinking water quality. The bond takes a regional and integrated state approach to these issues, recognizing that each area of the state faces different challenges and opportunities. These funds will be allocated to: • Regional and Inter-regional Water Resilience—$1 billion to support various water management programs and projects with a focus on regional and inter-regional water projects, including but not limited to: Integrated Regional Water Management projects; multi-benefit stormwater management; wastewater treatment; water reuse and recycling; water use efficiency and water conservation; water storage; water conveyance; watershed protection, restoration, and management; and water quality. This funding specifically supports the regional resilience approach identified in the draft Water Resilience Portfolio. • Sustainable Groundwater Management—$395 million to support local groundwater sustainability agencies implementing projects and programs related to the groundwater sustainability plans for critically overdrafted basins. • Safe Drinking Water—$360 million to provide grants and loans to disadvantaged communities to improve access to safe drinking water, including funding capital infrastructure costs for improved water supplies, treatment, and distribution to make vulnerable communities more resilient to the effects of climate change. • Flood Control: Urban/U.S. Army Corps of Engineers Projects—$340 million for Urban Flood Risk Reduction projects that provide the projected state cost share needs for various priority projects through 2024-25. • Flood Control: Systemwide Multi-benefit—$270 million to support multi-benefit flood risk reduction and ecosystem restoration efforts. • Salton Sea—$220 million to support Salton Sea habitat and air quality mitigation projects necessary for the 2018 Salton Sea Management Plan. • Environmental Farming Incentive Program—$200 million for grants, incentives, and demonstration projects to enhance agricultural lands for soil health, water quality and efficiency, biodiversity, resiliency, and habitat benefits. Specific projects include healthy soils, water efficiency, nutrient management, and other conservation practices on farms and ranches. • Enhanced Stream Flows and Fish Passage—$140 million to remove barriers to passage of native fish species and provide enhanced water flows, and reconnect aquatic habitat to help fish and wildlife endure drought and adapt to climate change. 122 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg CLIMATE RESILIENCE WILDFIRE In recognition of the unprecedented wildfires the state has experienced in recent years, the bond allocates $750 million to harden critical public infrastructure in high fire-risk communities and makes additional investments in forest health. This forest health investment is complementary to the forest heath and fuel reduction activities supported by the Greenhouse Gas Reduction Fund, and to the investments the Governor and Legislature have required that utilities make in high-risk areas across the state. These funds will be allocated to: • Hardening of Critical Community Infrastructure—$500 million to facilitate hardening of critical infrastructure, with a focus on low-income areas at significant risk of wildfires. Types of projects include hardening of drinking water infrastructure, emergency shelters (such as fairgrounds), and public medical facilities. • Forest Health—$250 million to support various long-term forest health projects, including reforestation; conservation easements; activities that promote long-term carbon storage; and upper watershed, riparian, mountain meadow, and inland wetland restoration. SEA LEVEL RISE Sea level rise is a chronic long-term threat facing the state’s coastal communities. The bond invests $500 million in reducing risks from sea level rise and changing ocean conditions. This complements funding from Proposition 68 and the Greenhouse Gas Reduction Fund to support coastal communities in planning for sea level rise. These funds will be allocated to: • Coastal Wetland Restoration—$320 million to support the restoration of coastal wetlands, which provide protection against sea level rise and flooding, enhance carbon sequestration, and provide benefits for biodiversity. • Nature-Based Solutions to Build Resilience—$130 million to support projects that build resilience of ocean ecosystems, such as kelp forests, seagrass habitat, eelgrass beds, and marine protected areas. • Demonstration Projects to Protect Critical Infrastructure—$50 million to support demonstration projects to protect infrastructure that is vulnerable to sea level rise and flooding such as roads, railways, sewage treatment plans, and power plants. GOVERNOR'S BUDGET SUMMARY — 2020-21 123 CLIMATE RESILIENCE Version number CQ2DDvMG2BB5g7vg EXTREME HEAT Extreme heat is both an immediate and chronic risk to many communities, especially in the Central Valley and inland regions. The bond invests $325 million in proven cooling techniques such as urban greening and urban forestry, as well as in advanced materials for buildings and transportation systems that are designed to reflect rather than trap heat. Both sea level rise and extreme heat are areas where strategic bond investments today will help to create stronger and more resilient infrastructure over the next several decades. These funds will be allocated to: • Urban Greening and Forestry—$200 million to mitigate urban heat island impacts in the regions most affected by extreme heat. Funds would support urban forestry projects and an expanded urban greening program that supports the creation of green recreational parks in underserved areas. • Cool Surface Materials—$125 million for a new program to incentivize the use of "cool materials" in projects (e.g. paving and roofing) within vulnerable communities. COMMUNITY RESILIENCE Finally, the bond provides $250 million to invest directly in communities to bolster community resilience centers, and support local preparedness, planning, and education around resilience. This community-level support will help to provide a pipeline of locally defined and driven climate resilience projects and programs that are effectively positioned to leverage state, federal, and private investment opportunities, including during emergencies. These funds will be allocated to: • Community Resilience Planning—$25 million for planning activities to address community-specific climate risks and develop climate resilience plans. • Community Resiliency Centers—$225 million for the construction of new and retrofitting of existing facilities, including at fairgrounds, to support adaptation needs to address locally relevant climate risks. These centers will serve both as community evacuation and emergency response centers, and to build long-term resilience and recovery operations for local communities. CAP AND TRADE EXPENDITURE PLAN Another primary pillar of the Climate Budget is a proposed $965 million Cap and Trade Expenditure Plan. The Budget supports several existing ongoing programs (such as CAL 124 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg CLIMATE RESILIENCE FIRE’s forest health and fuel reduction programs) while prioritizing emission reductions in the transportation sector, the largest greenhouse gas emissions source in California. To maximize and leverage appropriate resources as part of the integrated Climate Budget, the Cap and Trade Expenditure Plan focuses on areas that are most appropriate for direct government grant funding: support to disadvantaged communities and investments in research, capacity building, and workforce necessary to drive the state’s long-term transition to carbon neutrality. In particular, the Cap and Trade Expenditure Plan continues a strong focus on community air protection, and community engagement generally, by providing $235 million to support the AB 617 program, which reduces exposure in communities most impacted by air pollution through community air monitoring and community emissions reduction programs. Complementing this funding is a focus on reducing emissions in the transportation sector and prioritizing disadvantaged communities and clean mobility options for lower-income households, which make up $400 million in Cap and Trade spending. Key among these programs are those aimed at truck, bus, off-road, and agricultural vehicles, where emissions have a disproportionate impact on disadvantaged populations in both urban and rural communities. These programs also provide targeted incentives for consumers to purchase both new zero-emission vehicles, but also to retire older, higher-polluting vehicles in favor of more low-emission alternatives—one critical strategy for improving clean mobility options for lower-income households. The Cap and Trade Expenditure Plan includes $35 million in strategic investments to reduce short-lived climate pollutants, especially methane. Finally, the Cap and Trade Expenditure Plan includes foundational support for the research, capacity building, technical assistance, and workforce training that underpins the entirety of the Climate Budget. These programs include the Fifth California Climate Change Assessment, which provides the foundation for state, regional, and local agencies and departments to work together to understand and address projected physical climate impacts across the state. This research, coupled with strategies to directly engage local and tribal leaders as partners on the Assessment and to build capacity at the local level to respond to climate threats, is included as a foundational element of a $25 million ongoing investment. GOVERNOR'S BUDGET SUMMARY — 2020-21 125 CLIMATE RESILIENCE Version number CQ2DDvMG2BB5g7vg TRANSIT AND SUSTAINABLE COMMUNITY INVESTMENTS These Cap and Trade investments will build on the climate resilience and greenhouse gas emission reduction benefits of $1.5 billion of annual continuous appropriation programs. 126 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg CLIMATE RESILIENCE The Affordable Housing and Sustainable Communities Program supports the Administration’s housing and transportation agendas by investing in integrated projects that have to date provided nearly 10,000 affordable housing units for low-income residents, as well as increased access to transit, walking, and biking. Additionally, the Transit and Intercity Rail Capital Program, Low Carbon Transit Operations Program, and High Speed Rail investments are building an integrated low-carbon transportation network and providing a foundation for sustainable community development, with a strong focus on the state’s most disadvantaged communities in terms of economic, community, and workforce development. Combined with the ongoing support for safe drinking water in disadvantaged communities, these Cap and Trade investments provide a model for how California can continue to grow and prosper even as the state's population increases over the next decade. CLIMATE CATALYST FUND Recognizing the scale and immediacy of the climate problem and the need to dramatically increase and leverage private sector investment in these critical programs to maximize and direct state investments, the Budget includes a $1 billion General Fund investment ($250 million in 2020-21, with additional funding in later years) for a Climate Catalyst Fund, to be administered by the state’s Infrastructure Economic Development Bank in consultation with the Strategic Growth Council and the Labor and Workforce Development Agency. This revolving loan fund will provide low-interest loans for a portfolio of climate-related projects, prioritized in areas that help meet the state’s climate and equity goals, and where technologies and infrastructure exist that could be deployed at much greater speed and scale but face barriers in the private market. As with the overall Climate Budget, the Fund will be structured and managed to simultaneously address the state's climate goals while also building an inclusive and sustainable economy across all California regions and for all California businesses and workers. Climate Catalyst Fund projects would be focused on the following key areas, with a commitment to re-examine the state’s climate priorities and adjust these investment areas as needed. Technologies listed below are examples, but not requirements, nor are they the only types of projects that may be considered. • Transportation emission reduction—Zero-emission vehicles (ZEV) and charging infrastructure including light and heavy-duty ZEV vehicles (with a focus on those owned by individual operators and small businesses), transit and rail ZEV fleet and GOVERNOR'S BUDGET SUMMARY — 2020-21 127 CLIMATE RESILIENCE Version number CQ2DDvMG2BB5g7vg equipment, advanced technology freight, electric school buses, and electric/hydrogen charging infrastructure. • Climate smart agriculture and forestry—Dairy digesters, agricultural and off-road engine replacement (with a focus on vehicles owned by individual operators/small businesses), efficient on-farm irrigation, sustainable food processing, small business/ landowner loans for forest management, and community hardening. • Circular Economy—Municipal waste and recycling, compost, wood waste collection and utilization, and carbon/methane capture and utilization. This includes a special emphasis on small business owners and emerging technologies. Other significant adjustments in the Climate Budget: In addition to the components mentioned above, and to further help address immediate needs in anticipation of this proposed bond funding, the Climate Budget also includes the following: • $103 million one-time General Fund for efforts to support the draft Water Resilience Portfolio, including groundwater management, the State Water Efficiency and Enhancement Program, as well as investments in the New River and the Tijuana River. • $66 million one-time General Fund for Urban Flood Risk Reduction projects and for investments to help modernize operations for fish, wildlife, and habitat protection. • $35 million ongoing General Fund to support various resources investments that align with the draft Water Resilience Portfolio, including Sustainable Groundwater Management Act implementation and enhancements to the Department of Fish and Wildlife. • $257 million existing bond funds ($1.4 billion over the next five years, primarily from Proposition 68) to continue to support strategic natural resources programs. • $51 million one-time Alternative and Renewable Fuel and Vehicle Technology Fund to the California Energy Commission to accelerate deployment of electric vehicle charging infrastructure. This comprehensive approach supports programs that will achieve the state’s long-term climate goals while creating a sustainable and inclusive economy for all Californians. 128 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg EMERGENCY PREPAREDNESS AND RESPONSE EMERGENCY PREPAREDNESS AND RESPONSE C limate change continues to intensify and lengthen the fire season in California. Over the past several years, the state has experienced unprecedented wildfire activity with increases in the number and severity of wildfires. Ten of the most destructive fires have occurred since 2015. Additionally, growth in the wildland urban interface has put more Californians at risk than ever before. More than 25 million acres of the state’s wildlands are classified as under very high or extreme fire threat. 2019 ACTIONS In its first year, the Administration has taken decisive action to identify and implement recommendations and solutions to reduce wildfire risk; bolster the state’s emergency preparedness, response, and recovery capacity; and protect vulnerable communities. The 2019 Budget Act included $984 million ($203 million ongoing) in additional funding to enhance the state’s emergency response capabilities. This funding includes major wildfire protection investments for the Department of Forestry and Fire Protection (CAL FIRE) to expand firefighting surge capacity, enhance aviation resources, and improve the use of technology. Specifically, these investments include resources to: (1) add 13 new year-round fire engines; (2) operate the large air tankers that will be transferred from the U.S. Air Force starting in 2020‑21; (3) continue the replacement of CAL FIRE's Vietnam War‑era helicopters with new state‑of‑the‑art GOVERNOR'S BUDGET SUMMARY — 2020-21 129 EMERGENCY PREPAREDNESS AND RESPONSE Version number CQ2DDvMG2BB5g7vg helicopters; (4) review data gathered via remote sensing technology, situational awareness software, and satellite imagery to support incident command decision-making; and (5) operate 100 additional fire detection cameras. In addition, Chapter 81, Statutes of 2019 (AB 111) added $50.1 million in 2019-20 for the Public Utilities Commission (PUC) to review and enforce utility wildfire mitigation plans and implement Chapter 79, Statutes of 2019 (AB 1054). These bills were enacted to facilitate consumer access to safe, reliable, and affordable power by providing a durable solution to the problems arising from utility-caused wildfires. The bills establish a new Wildfire Safety Division, create procedures and standards applicable to catastrophic wildfire proceedings, codify the prudent manager standard for wildfire liability, and establish a Wildfire Fund and mechanisms to capitalize the fund to protect ratepayers. The 2019-20 investments also included funding to facilitate immediate response by state and local governments during utility-led power shutoff events to help protect vulnerable populations and improve the resiliency of the state’s critical infrastructure. A portion of this funding is dedicated to supporting grants to local and tribal governments to improve local preparedness for power shutoff events. The Budget continues to build on these emergency response and preparedness efforts. DEPARTMENT OF FORESTRY AND FIRE PROTECTION Building on the expanded investments in 2019-20, the Budget includes $120 million General Fund in 2020-21 ($150 million ongoing) and 677 positions, phased in over five fiscal years, for additional resources that will provide CAL FIRE operational flexibility throughout peak fire season and beyond based on fire conditions. Depending on CAL FIRE’s operational needs, these additional resources will be available to: (1) provide coverage behind personnel vacations, sick days, and training, while also providing additional resources during predictive weather events and major incidents; (2) provide an immediate resource pool to staff additional engines during late fall, winter, and early spring, should conditions require an increase to the existing 65 year-round engines; and (3) pre-position firefighting personnel in high‑risk areas of the state by adding a fourth firefighter on a portion of CAL FIRE engines, as fire conditions dictate. Relief staffing will directly benefit employee health and wellness by providing a larger resource pool for the new normal fire conditions, mitigating long periods of fighting fires 130 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg EMERGENCY PREPAREDNESS AND RESPONSE without respite. The Budget includes permanent funding to pre-position additional firefighting personnel on a portion of engines or staff engines earlier in the spring or later in the fall and winter, as fire conditions warrant, rather than continuing the current practice of adding additional firefighter surge capacity on a year‑to‑year basis. WILDFIRE FORECAST AND THREAT INTELLIGENCE INTEGRATION CENTER Chapter 405, Statutes of 2019 (SB 209) requires the Office of Emergency Services (Cal OES) and CAL FIRE to establish a Wildfire Forecast and Threat Intelligence Integration Center to: (1) provide intelligence and data regarding wildfire threats to government agencies; (2) develop intelligence products for public and private entities involved in wildfire risk mitigation efforts; and (3) serve as a central organizing hub for wildfire forecasting, weather information, threat intelligence gathering, and analysis. The Budget includes $9 million ($8.8 million General Fund) and 22 positions across Cal OES, CAL FIRE, the Military Department, and the PUC to begin implementation of the Wildfire Forecast Center. This new Center will derive data and intelligence from multiple sources to build accurate, comprehensive, and timely weather impact information, thereby enhancing the state’s emergency response and recovery capabilities. Among other benefits, these data will be used to develop forecasts for tracking and predicting critical fire weather systems and improve situational awareness of fire threat conditions in real-time. WILDFIRE MITIGATION FINANCIAL ASSISTANCE PROGRAM—HOME HARDENING Chapter 391, Statutes of 2019 (AB 38) authorizes the Wildfire Mitigation Financial Assistance Program through July 1, 2025 to: (1) encourage hardening of homes, businesses, and public buildings; and (2) facilitate vegetation management and defensible space activities. The Budget includes $110.1 million ($26.8 million General Fund) to implement AB 38. Specifically, CAL FIRE and Cal OES will develop a Joint Powers Agreement to administer a $100 million home hardening pilot program, with a focus on homes located in low‑income communities in areas of high fire risk. Of this amount, $25 million General Fund is proposed on a one‑time basis, and the state will use this funding to leverage an additional $75 million in federal hazard mitigation funding. In addition, the Budget includes $8.3 million Greenhouse Gas Reduction Fund and 26 positions for CAL FIRE to support additional defensible space inspections and facilitate completion of a regional fire prevention capacity review pursuant to the requirements of AB 38. GOVERNOR'S BUDGET SUMMARY — 2020-21 131 EMERGENCY PREPAREDNESS AND RESPONSE Version number CQ2DDvMG2BB5g7vg OFFICE OF EMERGENCY SERVICES Cal OES coordinates the state's emergency readiness through local, regional, and statewide training exercises and programs. California's mutual aid system is designed to provide sufficient resources to local jurisdictions when their own resources become inadequate or overwhelmed during an emergency event. During emergencies, Cal OES coordinates all local, inter‑regional, and state agency activities. After the event, Cal OES functions as the state's liaison with FEMA to provide recovery assistance to local governments and individuals impacted by the event. The Budget includes $9.4 million ($9.2 million General Fund) and 50 positions to enhance Cal OES’ ability to anticipate, prepare for, respond to, and recover from disasters. These positions will provide the necessary programmatic and administrative resources to support Cal OES’ increasingly complex mission and maximize eligible federal reimbursements. In addition, the Budget includes $16.7 million one‑time General Fund to increase the amount of funding available through the California Disaster Assistance Act (CDAA), which is used to repair, restore, or replace public real property damaged or destroyed by a disaster, and to reimburse local government costs associated with certain activities undertaken in response to a state of emergency. This augmentation increases total CDAA funding included in the Budget to $79.3 million. COMMUNITY POWER RESILIENCY Investor-owned utilities significantly expanded their use of power shutoffs in 2019, imposing hardships and new public safety considerations on California residents, first responders, and emergency managers. Although the size and scope of these power shutoffs were unprecedented, critical infrastructure and state operations continued with minimal impacts, in large part because of contingency planning across state government led by Cal OES. In particular, state government responded by filling significant vulnerabilities within the health care sector for the medically and socially vulnerable, affording economic relief to many of those impacted, and providing funding for local and tribal governments to develop resiliency measures for power shutoffs. The state simultaneously enacted emergency response measures and carried out evacuations in the face of multiple dangerous wildfires across the state. The Budget includes $50 million one‑time General Fund to support additional preparedness measures that bolster community resiliency. Building on the state’s 132 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg EMERGENCY PREPAREDNESS AND RESPONSE 2019-20 power‑resiliency investments, these measures will support critical services still vulnerable to power outage events, including schools, county election offices, and food storage reserves. This proposal will support a matching grant program to help local governments prepare for, respond to, and mitigate the impacts of power outages. SEISMIC SAFETY Initial operation of the California Earthquake Early Warning System began in October 2019 and is anticipated to be operational statewide by June 2021. The Budget includes $17.3 million one‑time California Earthquake Safety Fund, which relies on a $17.3 million one‑time General Fund loan, for operation and maintenance of the system. The General Fund loan will support these costs while ongoing revenue options continue to be evaluated and pursued. These funds will be used to support system operations and program management, an education and outreach campaign, and research and development to expand the system’s earthquake mitigation uses. In addition, the system continues to improve and be integrated in critical facilities such as hospitals, schools, and public safety offices. The Administration proposes transferring the Alfred E. Alquist Seismic Safety Commission, including its six positions and associated funding, to Cal OES beginning in 2020‑21. To support this transfer, the Budget includes $3 million ($949,000 General Fund) in 2020‑21 and $2.7 million ($713,000 General Fund) ongoing. As part of the state’s broader preparedness efforts, the Commission will be better positioned to provide a coordinated framework for establishing earthquake safety policies and recommendations, and tracking the state’s progress toward higher levels of seismic safety. The Budget also proposes a reduction in the number of appointed Commissioners from 20 to 15, and an expansion of the entities required to provide updates to the Commission on earthquake preparedness and seismic safety activities. GOVERNOR'S BUDGET SUMMARY — 2020-21 133 Version number CQ2DDvMG2BB5g7vg PUBLIC SAFETY PUBLIC SAFETY DEPARTMENT OF CORRECTIONS AND REHABILITATION The California Department of Corrections and Rehabilitation (CDCR) incarcerates people convicted of the most violent felonies, supervises those released to parole, and provides rehabilitation programs to help them reintegrate into the community. The Department strives to facilitate the successful reintegration of the individuals in its care back to their communities equipped with the tools to be drug-free, healthy, and employable members of society by providing education, treatment, rehabilitative and restorative justice programs. The Budget proposes total funding of $13.4 billion ($13.1 billion General Fund and $306.5 million other funds) for the Department in 2020-21. The 2019 Budget Act projected an overall adult inmate average daily population of 125,871 in 2019-20. The average daily adult inmate population is now projected to be 124,655, a decrease of 1 percent from spring projections. Current projections show the adult inmate population is trending downward and is expected to decrease by 939 offenders between 2019-20 and 2020-21. Proposition 57, the Public Safety and Rehabilitation Act of 2016, established a durable solution to end federal court oversight and create more incentives for inmates to participate in rehabilitative programs. Proposition 57 is currently estimated to reduce the average daily adult inmate population by approximately 8,600 in 2020-21, and by approximately 13,000 in 2022-23. The estimated impact of Proposition 57 has been incorporated into the population projections. GOVERNOR'S BUDGET SUMMARY — 2020-21 135 PUBLIC SAFETY Version number CQ2DDvMG2BB5g7vg The 2019 Budget Act projected an overall parolee average daily population of 50,442 in 2019-20. The average daily parolee population is now projected to be 50,453 in 2020-21, an increase of less than 1 percent from spring projections. PRISON CAPACITY The adult prison population has steadily declined over many years, presenting opportunities for CDCR to reduce its reliance on contract prison capacity. After over a decade, CDCR terminated its final remaining contract to house inmates out-of-state in June 2019. In addition, CDCR terminated a contract with a private in-state facility for male inmates in September 2019. Given the projected continued decline in the inmate population throughout 2019-20 and 2020-21, the Budget reflects ending all private in-state contract correctional facilities for male inmates by April 2020. Moreover, the Budget reflects phasing out two of the remaining three male, public in-state contract correctional facilities by 2021, and the third is projected to be closed no later than July 2022. The Department projects that the population will decline by approximately 4,300 inmates between June 2021 and June 2024. If these population trends hold, the Administration will close a state-operated prison within the next five years. FOCUS ON INMATE REHABILITATION AND REENTRY The Administration is committed to improving outcomes for incarcerated individuals and enhancing public safety by improving rehabilitation and reentry programs. The 2019 Budget Act made critical near-term investments to support this long-term goal, such as improving inmate literacy, expanding substance use disorder treatment, and establishing new community reentry facilities. The Budget builds upon those investments by providing incarcerated individuals with additional tools to prepare themselves to reenter society, including funding for new and expanded programs. The Department is also considering options for increasing the number of inmates receiving a high school diploma in lieu of a California High School Equivalency Certificate, also known as a General Educational Development Test. In total, the Budget includes $552.7 million General Fund for rehabilitative programs—nearly double the funding level in 2012-13. YOUTH OFFENDER REHABILITATIVE COMMUNITIES The landscape of youthful offender rehabilitation policy is changing. New advances in brain development research have revealed important differences in how young adult offenders can respond to rehabilitation, relative to older offenders. For example, research suggests that young offenders are more impressionable and amenable to 136 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg PUBLIC SAFETY treatment than older offenders. The Budget includes $6.2 million General Fund in 2020-21, and $10.1 million ongoing, to establish Youth Offender Rehabilitative Communities. These are programs that house offenders under the age of 26 together at select adult institutions in campus-style environments conducive to positive behavioral programming. These communities will serve to connect youth offenders to positive mentors, as well as rehabilitative and educational programs targeted to their unique needs. A model program will be established at Valley State Prison in Chowchilla. ACADEMIC INFORMATION TECHNOLOGY MODERNIZATION Finding gainful employment is a significant challenge for many ex-offenders. While CDCR currently provides academic and vocational training to thousands of inmates to help prepare them with the skills demanded by employers, these programs lack access to technology, such as laptop computers, that facilitate learning and familiarize inmates with tools they will need to succeed in the modern workplace. The Budget includes $26.9 million General Fund in 2020-21, eventually declining to $18 million ongoing to provide increased access to modern technology for inmates participating in academic and vocational training to address this gap and better prepare inmates for reentry. EXPANDING HIGHER EDUCATION OPPORTUNITIES To further assist inmates with finding gainful employment and prepare them to enter the workforce, the Department is expanding post-secondary educational opportunities to inmates who have completed an associate’s degree. The Department is planning to partner with the California State University system to establish bachelor’s degree programs at several prisons, including Valley State Prison in Chowchilla. The Budget includes $1.8 million General Fund in 2020-21, and $3.5 million ongoing for tuition, books, materials, training, and equipment for students participating in the program. EXPANDED INMATE VISITATION Another challenge faced by many inmates upon release is the loss of family and community connections during their time of incarceration. Visitation provides inmates with the opportunity to establish and maintain a continuum of social support, including parent-child relationships, which are critical for successful reentry. The Budget includes $4.6 million ongoing General Fund to add an additional visitation day at nine institutions. GOVERNOR'S BUDGET SUMMARY — 2020-21 137 PUBLIC SAFETY Version number CQ2DDvMG2BB5g7vg STAFF DEVELOPMENT AND SUPPORT Creating a prison environment that is safe and secure for staff, inmates, and visitors, and that is conducive to rehabilitation, requires a professional, well-trained workforce. Correctional officers and counselors play an especially important role in the rehabilitation efforts of the Department. The Budget includes $21.4 million General Fund in 2020-21, declining to $19.8 million ongoing General Fund in 2023-24, to enhance staff development through new training for correctional officers and counselors. These new efforts will involve the repurposing of the former Northern California Women’s Facility into a new hands-on training facility and will focus on giving staff the tools to effectively communicate with inmates and encourage them to participate in rehabilitative programs. In addition, the Budget includes $1.8 million ongoing General Fund to centralize the Department’s discrimination complaint process. This will promote objectivity and fairness in the investigation of equal opportunity complaints. INFRASTRUCTURE SUPPORT AND MODERNIZATION The state’s prison infrastructure is old and requires investments for the safety of staff and inmates. Although the state has made significant investments in upgrading health care facilities, some of the Department’s core infrastructure has significantly deteriorated and improvements must be made. ROOF REPLACEMENT Failing prison roofs have resulted in damage to electrical systems and housing units, and interruptions in rehabilitation and education programs, and mental health treatment. The Budget includes $78.2 million General Fund over two years for roof replacement projects, including design funding at Pelican Bay State Prison and California State Prison, Sacramento. This is part of a broad, multi-year plan to replace aging and deteriorating roofs across the state prison system. To date, ten institutions have received one-time funding for major roof replacement and repair projects. With funding for these 2 prisons, 15 remaining institutions are scheduled for future roof replacement and repair projects over the next 6 years. HEALTH CARE FACILITY UPDATES AT THE CALIFORNIA REHABILITATION CENTER Existing health care facilities at the California Rehabilitation Center are located in buildings approaching 75 years old that do not have adequate storage for medication and medical supplies, which restricts workflow and makes it difficult to maintain inmate-patient privacy. The Budget includes $5.9 million one-time General Fund to 138 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg PUBLIC SAFETY replace damaged flooring, walls, wall-mounted air conditioning units, counters, and storage spaces in existing health care treatment areas. This project will also replace existing medication distribution windows with newer windows that are consistent with current standards and will allow for improved medication distribution. The California Rehabilitation Center is one of the older facilities in the state prison system. These upgrades are necessary to maintain this facility, which is better situated to recruit staff, including health care staff. SUICIDE PREVENTION INTAKE CELL RETROFITS The Department is currently engaged in a multifaceted effort to prevent inmate suicides, consistent with a federal court mandate to improve the safety of its facilities, particularly for inmates experiencing mental health crises. One important element in this effort is the modification of physical infrastructure to reduce the opportunity for inmates to commit suicide. To further this effort, the Budget includes $3.8 million one-time General Fund to retrofit 64 intake cells across the state to provide a safer environment for inmates entering segregated housing. VIDEO SURVEILLANCE In recent years, the Department has expanded its use of video surveillance in adult institutions to deter violence and other prohibited activities such as the distribution of contraband. In addition, video evidence has been a critical tool for investigating inmate violence and staff misconduct allegations. Recognizing the important role video surveillance plays in increasing institutional security, the Budget includes $21.6 million General Fund in 2020-21 and $2.1 million ongoing General Fund to expand video surveillance capabilities at Richard J. Donovan Correctional Facility, Salinas Valley State Prison, and California Institution for Women. JUVENILE JUSTICE REORGANIZATION The 2019 Budget Act included resources to begin the transition of the Division of Juvenile Justice from CDCR to the new Department of Youth and Community Restoration, within the California Health and Human Services Agency, effective July 1, 2020. The Budget transfers $264.3 million (including $258.9 million General Fund) and 1,303.9 positions from CDCR to reflect the transition of the Division of Juvenile Justice to the Department of Youth and Community Restoration (see the Health and Human Services chapter for additional information). GOVERNOR'S BUDGET SUMMARY — 2020-21 139 PUBLIC SAFETY Version number CQ2DDvMG2BB5g7vg INMATE MEDICAL CARE AND MENTAL HEALTH SERVICES The Budget continues the state’s significant financial commitment to improve the Department’s delivery of health care services to inmates. The Budget dedicates $3.6 billion General Fund for health care services programs, which provide access to mental health, medical, and dental care that is consistent with the standards and scope of services appropriate within a custodial environment. FEDERAL RECEIVERSHIP OVERSEEING PRISON MEDICAL CARE In 2005, a federal court established a receivership to oversee prison medical care. To date, the Receiver has transitioned oversight of 19 institutions back to the state. The Budget includes $9.9 million General Fund in 2020-21 and $11.8 million ongoing General Fund in 2021-22, to enhance quality management and patient safety by providing staff to evaluate risks and implement best practices to improve the health care delivery system. The Budget also includes $1.5 million General Fund in 2020-21, increasing to $2.3 million ongoing General Fund by 2024-25, to establish dedicated funding for replacing and maintaining CDCR’s medical imaging equipment. In addition, the Budget includes $722,000 ongoing General Fund to support an electronic health care data exchange process to transfer health records to counties for inmates who are transitioning to county custody or the community. The timely sharing of electronic medical records will improve patient outcomes by allowing for enhanced continuity of care as inmates transition from prison. These improvements are intended to support the eventual full transition of medical care back to the state. MENTAL HEALTH SERVICES The Budget includes $5.9 million General Fund in 2020-21, increasing to $8.4 million ongoing General Fund by 2024-25, to support expansion of telepsychiatry, which uses secure videoconferencing to increase inmate access to mental health care services. The Budget also includes $1.4 million ongoing General Fund for contract psychiatry services to meet the federal court order to fill at least 90 percent of the state prison system’s psychiatry positions. 140 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg PUBLIC SAFETY LOCAL PUBLIC SAFETY ADULT PROBATION REFORM The state can benefit from improved outcomes in the local probation system, as demonstrated in the California Community Corrections Performance Incentives Act of 2009 (SB 678). Research shows compulsory conditions are an effective way to connect justice-involved people with treatment and services to reduce their likelihood of cycling through the criminal justice system. However, the vast majority of offenders on probation for misdemeanor crimes are currently on banked caseloads, meaning they are not actively engaged in services and programs provided by probation. This lack of engagement creates churning in the criminal justice system where lower-level offenders do not receive the services and supervision they need to end the cycle of crime. More can be done to align existing evidence-based practices used with the felony probation population to the misdemeanor population, with a focus on supervision and services based on risk and needs assessments, and less on the singular factor of the offense category. The Budget includes $60 million General Fund annually for three years and $30 million General Fund in 2023-24, to supervise and provide probation services for misdemeanants, with the aim of improving public safety by reducing recidivism of these individuals. The Budget also includes reforms to reduce felony and misdemeanor probation terms to two years, and allow for earned discharge for probationers. This conforms with research that suggests that the maximum time needed to engage probationers in behavior change and reduce the likelihood of reoffending is no more than two years, while also creating incentives for individuals to engage in treatment and services early on. The Budget also includes $11 million ongoing General Fund, in addition to baseline funding of $113.8 million General Fund, to stabilize SB 678 funding provided to counties. SB 678 established a performance-based funding methodology to award counties that reduce the number of adult felony probationers they send to state prison by sharing a percentage of the savings the state accrues from not housing revoked offenders. However, the current funding methodology can result in significant year-to-year fluctuations and drive uncertainty in county probation spending. The Budget includes a stable ongoing amount to counties at a level consistent with their highest payment received from the state over the last three years, in addition to continued accountability measures. GOVERNOR'S BUDGET SUMMARY — 2020-21 141 PUBLIC SAFETY Version number CQ2DDvMG2BB5g7vg POST-RELEASE COMMUNITY SUPERVISION The Budget includes $13.8 million General Fund for county probation departments to supervise the temporary increase in the average daily population of offenders on Post-Release Community Supervision as a result of the implementation of Proposition 57. PROPOSITION 47 SAVINGS In November 2014, voters passed Proposition 47, which requires misdemeanor rather than felony sentencing for certain property and drug crimes and permits inmates previously sentenced for these reclassified crimes to petition for resentencing. Proposition 47 requires the Department of Finance to annually estimate savings to the state resulting from the measure in the preceding fiscal year and that an equivalent amount from the General Fund be deposited into a special fund for specified purposes. The Department of Finance currently estimates net General Fund savings of $122.5 million, an increase of $44 million over the estimated savings in 2019-20. This increase is attributable primarily to increased savings resulting from the state’s reduced reliance on contract facilities to house prison inmates. These funds will be allocated according to the formula outlined in the initiative, which requires 65 percent be allocated for grants to public agencies to support various recidivism reduction programs (such as mental health and substance use services), 25 percent for grants to support truancy and dropout prevention programs, and 10 percent for grants for victims' services. LOCAL JAIL OVERSIGHT The Administration proposes to strengthen the state's oversight of county jails. The Board of State and Community Corrections will more actively engage counties regarding deficiencies identified as part of its inspections through its public board meeting process and by more frequent follow-up inspections. The Board will also provide additional technical assistance to those counties where issues are identified. Also, as part of the Title 15 jail standards review, the Board will make sure the standards are consistent with national best practices. VICTIM SERVICES The 2019 Budget Act included significant augmentations for several programs designed to improve victims’ services and reduce victimization, including the California Violence Intervention and Prevention Program, the Family Violence Prevention Grant Program, 142 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg PUBLIC SAFETY and restorative justice programs in state prisons. In addition, the Administration indicated its intent to consolidate victims’ programs operated by the California Victim Compensation Board (CalVCB) and the Governor's Office of Emergency Services (Cal OES) as part of the 2020-21 Budget. While the Administration still intends to pursue this consolidation, the plan has been temporarily paused. Given the complexity of this consolidation and Cal OES’ role in coordinating response and recovery efforts related to recent disasters, the Administration is reassessing the initially proposed timeline. In the meantime, the Administration is taking steps to increase collaboration between CalVCB and Cal OES to enhance the quality of victims’ services. For example, CalVCB is redesigning its website to centralize information about victims’ programs offered throughout the state. In addition, CalVCB, in partnership with Cal OES, is conducting a public awareness and educational campaign through printed notices, television, radio public service announcements, and regional educational seminars to provide information for victims and service providers on how to apply for compensation through CalVCB’s new online portal. The online portal allows victims to apply for compensation, check the status of their application and bills, submit documents, and communicate directly with CalVCB staff. The Budget builds on the above efforts already underway by making the following additional investments in victims’ services: • Restitution Fund Backfill—$23.5 million one-time General Fund to backfill declining fine and fee revenues in the Restitution Fund. This funding will allow CalVCB to continue operating at its current resource level. • Legal Services for Victims—$476,000 General Fund in 2020-21 and $448,000 annually thereafter for the Department of Justice to provide legal services to victims. The Department of Justice served 326 victims in 2018-19, compared to 26 in 2015-16, largely due to the increased public awareness of the availability of legal services for victims. • Victim Notification by the California Department of Corrections and Rehabilitation—$354,000 ongoing funds ($223,000 General Fund and $131,000 other funds) to locate and notify affected victims of their rights during parole hearings, and to disburse restitution payments to eligible individuals. GOVERNOR'S BUDGET SUMMARY — 2020-21 143 PUBLIC SAFETY Version number CQ2DDvMG2BB5g7vg IMPROVING INDIGENT DEFENSE Currently, the Office of the State Public Defender’s mission is focused on assisting individuals sentenced to death with post-conviction appeals. The Budget includes $4 million General Fund in 2020-21 and $3.5 million annually thereafter to expand the Office’s mission to include improving the quality of indigent defense services provided by counties. The Office will use these resources to provide training and technical assistance for attorneys providing indigent defense, with the goal of promoting more effective representation statewide. The Budget also includes $10 million one-time General Fund for the Board of State and Community Corrections to administer a pilot program, in consultation with the Office of the State Public Defender, to supplement local funding for indigent criminal defense. This funding will also support the completion of an evaluation to determine the effectiveness of the grants in improving indigent defense services. DEPARTMENT OF JUSTICE As chief law officer of the state, the Attorney General has the responsibility to see that the laws of California are uniformly and adequately enforced. This responsibility is fulfilled through the diverse programs of the Department of Justice (DOJ). The Department provides legal services on behalf of the people of California; serves as legal counsel to state agencies; provides oversight, enforcement, education, and regulation of California's firearms laws; provides evaluation and analysis of physical evidence; and supports data needs of California’s criminal justice community. The Budget includes total funding of approximately $1.1 billion, including $370.2 million General Fund, to support the DOJ. BUREAU OF FIREARMS INFORMATION TECHNOLOGY MODERNIZATION The Department currently tracks firearms using 11 information technology systems that are antiquated, costly to update, and inefficient at gathering data. New firearms policies and reporting requirements are difficult to implement given the disconnected structure of these systems. The Budget includes $2.4 million one-time Dealers’ Record of Sale (DROS) Special Account to begin the planning and analysis phase of combining and modernizing the 11 existing firearms tracking systems. Modernizing these systems will 144 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg PUBLIC SAFETY enable DOJ to respond to changing business needs and legislative mandates efficiently and in a cost-effective manner. RECENTLY ENACTED LEGISLATION The Budget also includes the following significant investments to implement recently enacted firearms legislation: • Chapter 730, Statutes of 2019 (AB 879)—$5 million General Fund in 2020-21 and 2021-22, to regulate and track the sale of firearm precursor parts. AB 879 requires the sale of firearm precursor parts to be conducted by or processed through a licensed firearm precursor part vendor beginning July 1, 2024. Precursor parts can be used to manufacture “ghost guns” that are untraceable due to a lack of serial numbers or identifying markers. Given the risk that such guns present to public safety, the Budget includes resources to accelerate the implementation of these requirements to July 1, 2022. • Chapter 737, Statutes of 2019 (SB 61)—$2.4 million DROS Special Account in 2020-21, $1.4 million in 2021-22, and $379,000 annually thereafter to implement and enforce the provisions of SB 61 that prohibit the sale of semiautomatic centerfire rifles to any person under 21 years of age, except a law enforcement officer or active duty member of the Armed Forces, and prohibit a person from making an application to purchase more than one semiautomatic centerfire rifle in any 30-day period. • Chapter 738, Statutes of 2019 (SB 376)—$981,000 DROS Special Account in 2020-21, $306,000 in 2021-22, and $232,000 annually thereafter to track and report annual firearms sales, loans, and transfers to enforce the provision under SB 376 that reduces the threshold for which a manufacturer’s license is required from 100 firearms manufactured annually to 50. LEGAL SERVICES HEALTHCARE RIGHTS AND ACCESS SECTION In recent years, there has been an increase in healthcare litigation due to issues such as the opioid crisis, drug price-fixing, antitrust cases, and defenses of the Affordable Care Act. Currently, healthcare-related litigation is handled by separate units throughout the Department. The Budget includes $9 million ongoing funds ($2.2 million General Fund, $3.7 million Attorney General Antitrust Account, and $3.2 million Unfair Competition Law Fund) to establish a Healthcare Rights and Access Section to consolidate and GOVERNOR'S BUDGET SUMMARY — 2020-21 145 PUBLIC SAFETY Version number CQ2DDvMG2BB5g7vg centralize healthcare litigation within DOJ. This approach allows the DOJ to handle the increase in healthcare litigation and develop expertise and specialization in this area of law. OTHER SIGNIFICANT INVESTMENTS IN THE DEPARTMENT OF JUSTICE The Budget also includes the following significant investments in DOJ: • Bureau of Forensic Services—$32 million one-time funds ($22 million General Fund and $10 million Fingerprint Fees Account) to backfill the continued decline in fine and fee revenues in the DNA Identification Fund. This funding will enable the Department to continue processing forensic evidence for client counties. The Budget also includes $7.3 million ongoing General Fund to establish a replacement schedule to regularly maintain and replace forensic laboratory equipment, and to perform maintenance of state-owned laboratories. • Tax Recovery in the Underground Economy (TRUE) Enforcement Teams (AB 1296)—$5.7 million ongoing General Fund to bolster the two existing TRUE teams to fulfill requirements under AB 1296 to prosecute violations of labor, tax, insurance, and licensing laws by businesses and individuals in the underground economy. • California Law Enforcement Telecommunications System (CLETS): Immigration (AB 1747)—$2.8 million General Fund in 2020-21, $3.3 million in 2021-22, and $2.9 million annually thereafter to conduct investigations and audits to monitor compliance with AB 1747, which limits the use of CLETS for immigration enforcement purposes. • Bureau of Gambling Control—$5.4 million ongoing Gambling Control Fund to conduct field inspections, criminal investigations, and reviews of cardrooms and third party providers of proposition player services. • Criminal Records: Automatic Relief (AB 1076)—$3.6 million Fingerprint Fees Account in 2020-21, declining to $1.9 million annually in 2023-24, to review records in statewide criminal justice databases to identify persons eligible to have their arrest or criminal conviction records withheld from disclosure and modify existing systems to grant such relief automatically. 146 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg JUDICIAL BRANCH JUDICIAL BRANCH T he Judicial Branch consists of the Supreme Court, courts of appeal, trial courts, and the Judicial Council. The trial courts are funded with a combination of General Fund, county maintenance-of-effort requirements, fines, fees, and other charges. Other levels of the Judicial Branch receive most of their funding from the General Fund. The Budget includes total funding of $4.3 billion ($2.2 billion General Fund and $2.1 billion other funds) in 2020-21 for the Judicial Branch, of which $2.4 billion is provided to support trial court operations. The Judicial Council is responsible for managing the resources of the Judicial Branch. TRIAL COURT OPERATIONS Three important historical events led to the current trial court system. First, the Trial Court Funding Act of 1997 consolidated the costs of operating California’s trial courts at the state level. The Act was based on the premise that state funding of court operations was necessary to provide more uniform standards and procedures, economies of scale, structural efficiency, and access for the public. Second, California voters passed a constitutional amendment in 1998 that provided for voluntary unification of the superior and municipal courts in each county into a single, countywide trial court system. By 2001, all 58 counties had voted to unify their municipal and superior court operations. Third, the Trial Court Facilities Act of 2002 transferred responsibility and ownership of court facilities from counties to the state. GOVERNOR'S BUDGET SUMMARY — 2020-21 147 JUDICIAL BRANCH Version number CQ2DDvMG2BB5g7vg TRIAL COURT INVESTMENTS The Budget continues the Administration’s commitment to funding the trial courts by investing $177.9 million ongoing General Fund. The investments outlined below are intended to complement efforts made by the Judicial Council to improve and modernize trial court operations, and increase access to justice statewide. Each year, the cost of maintaining existing service levels in the court system grows due to the general inflationary pressures facing all government operations. In recognition of this, the Budget includes $61.7 million ongoing General Fund for an overall three percent increase in funding. The Administration is committed to working with the Judicial Council to determine the best way to address future costs. The Budget also includes $45.9 million for trial court operations to be allocated by the Judicial Council to promote fiscal equity among the trial courts. The Budget includes $35.1 million ongoing General Fund in 2020-21 for trial court employee health benefit and retirement costs. The state began consistently funding the increased health and retirement benefit costs for the trial courts in 2014-15 when the trial courts made progress in implementing the Public Employees’ Pension Reform Act of 2013. The Budget includes $35.2 million General Fund total to continue backfilling the Trial Court Trust Fund for the decline of revenues expected in 2020-21. COURT NAVIGATOR PROGRAM The Budget includes $8.1 million General Fund in 2020-21 and $15.5 million General Fund annually thereafter to add court navigators at trial courts to assist unrepresented individuals with navigating the complexities of the court system. Court navigators will help bridge access to justice gaps, improve customer service to court users, such as collaborative court participants and victims and family petitioners, and increase the positive impacts of existing self-help services. 148 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg JUDICIAL BRANCH INVESTMENTS IN INFORMATION TECHNOLOGY The Chief Justice’s Commission on the Future of California’s Court System has recommended expanding the use of new technology in the courts to improve access to justice and to better serve Californians. In furtherance of this goal, the Budget includes $10.3 million General Fund in 2020-21, decreasing to $2.8 million ongoing in 2022-23 to advance projects in three areas: (1) investing in a data-driven forms platform to convert static forms into an electronic format; (2) building a virtual case management system that allows the Judicial Council to roll out online services statewide by interfacing with individual court case management systems; and (3) assisting trial courts in creating next-generation data centers and cloud-based solutions specific to their local environment. The Budget also includes $6.9 million General Fund in 2020-21 and $11.3 million General Fund in 2021-22 to implement the second and third phases of an initiative to digitize court records in approximately 15 courts, including appellate and trial courts. Digitizing court records improves service to the public by enabling faster, easier, and more transparent access to relevant case information. REDUCING CRIMINAL FINES AND FEES FOR LOW INCOME CALIFORNIANS Over decades, the state has increased the fines, fees, assessments, and surcharges levied on individuals convicted of criminal offenses to generate funding for specific state and local programs and services. The Judicial Council estimates these fines and fees generated approximately $1.4 billion in revenue in 2018-19. Recognizing the financial hardship these increased fines and fees have created for low-income individuals, the 2019 Budget Act included $3.4 million General Fund for the Judicial Council to implement an eight-court pilot program to allow indigent and low-income individuals to apply online to have their fines and fees from traffic infractions reduced in accordance with their ability to pay. Currently, four courts have implemented the pilot program, which reduces fines and fees for eligible participants by around 50 percent and allows them to make payments over a period of time. The Budget includes $11.5 million General Fund in 2020-21, increasing to $56 million ongoing General Fund by 2023-24, to expand this program statewide and incorporate both traffic and non-traffic infractions. The ongoing costs include $2 million to implement an online application system and $54 million to backfill the estimated loss in revenue to support trial court operations as a result of the penalty reductions. The GOVERNOR'S BUDGET SUMMARY — 2020-21 149 JUDICIAL BRANCH Version number CQ2DDvMG2BB5g7vg Judicial Council will implement this program on a phased schedule, with several courts joining each year. Expanding the online ability to pay program statewide provides targeted relief for low-income individuals while maintaining accountability. Furthermore, it preserves judicial discretion and uses technology to make trial courts more efficient and equitable. DEPENDENCY COUNSEL The 2019 Budget Act included $20 million ongoing General Fund to increase total dependency counsel state funding to $156.7 million. The Budget continues this investment and continues to implement the Federal Families First Prevention Services Act, which allows court-appointed dependency counsel costs to be a reimbursable activity under the federal Title IV-E funding stream. The Budget estimates $57 million in federal reimbursements, bringing the total amount available for dependency counsel in 2020-21 to $213.7 million. OTHER SIGNIFICANT JUDICIAL BRANCH INVESTMENTS The Budget also includes the following for the Judicial Branch: • Appointed Legal Counsel in Civil Cases—$11.2 million ongoing Trial Court Trust Fund for Sargent Shriver Civil Counsel Act programs that provide legal representation for low-income litigants in civil cases. • Language Access—$8.9 million General Fund in 2020-21 and $8.5 million General Fund annually thereafter for the increased costs of court interpreters and to purchase equipment for the newly established Video Remote Interpreting Program. This will bring the total funding to $131.2 million annually. • Appellate Court Appointed Counsel Projects—$1.2 million ongoing General Fund to support increased costs for contractual services provided by the Supreme Court and the Courts of Appeal Court Appointed Counsel projects. This funding will be used to cover increased costs of rent, staff salaries and benefits, record collection and preservation, and training. • Statutory Statewide External Audit Program—$1 million ongoing General Fund for the State Controller’s Office to complete audits of revenues, expenditures, and fund balances under each trial court’s control. 150 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg JUDICIAL BRANCH • Trial Court Facility Maintenance—The Administration intends to work with the Judicial Council in the spring to formulate a plan to address maintenance of deteriorating conditions at trial court facilities constructed prior to 2007. The 2019 Budget Act included $20.2 million ongoing General Fund to support maintenance and utilities of trial court facilities constructed since 2007. GOVERNOR'S BUDGET SUMMARY — 2020-21 151 Version number CQ2DDvMG2BB5g7vg ENVIRONMENTAL PROTECTION ENVIRONMENTAL PROTECTION T he California Environmental Protection Agency's programs promote the state’s economic vitality in a sustainable manner by reducing greenhouse gas emissions, enhancing environmental quality, and protecting public health. The Secretary coordinates the state's regulatory programs and ensures fair and consistent enforcement of environmental law. The Governor's Budget includes $3.9 billion ($139.8 million General Fund, $3.8 billion special funds, and $18 million bond funds) for programs included in this Agency. The Administration's climate resilience efforts are outlined in the Infrastructure and Climate Resilience chapters. MOVING TOWARD A CIRCULAR ECONOMY Following recent shifts in international commodity markets, California can no longer rely on exporting recyclable materials abroad. California has an opportunity to lead in the development of a circular economy by reducing waste and reusing resources. By building upon state investments in recycling infrastructure and improving outdated systems, the state can move toward achieving a circular economy that begins and ends with a skilled workforce and commitment to environmental sustainability. A guiding principle of a circular economy is planning for a product’s next life on the front end, rather than attempting to find markets for products that were not designed GOVERNOR'S BUDGET SUMMARY — 2020-21 153 ENVIRONMENTAL PROTECTION Version number CQ2DDvMG2BB5g7vg for recyclability. Creating a first-in-class system in California will also promote job development in the state. The Administration is committed to working with the Legislature so producers have the responsibility and flexibility to meet recycling requirements for products that ultimately end up in the waste stream. The Budget recognizes the need for low-interest financing for the infrastructure needed to create the new circular economy in California, as outlined in the proposed Climate Catalyst Fund. See the Climate Resilience chapter for a description of the Fund. Within the broader picture of recycling, the California Beverage Container Recycling Program is an example of a system that provides clean, recyclable material, but is also in need of reform. The Administration will continue to collaborate with the Legislature to determine needed reforms, with a focus on consumer access. DEPARTMENT OF TOXIC SUBSTANCES CONTROL REFORM Beginning in 2018, the Department of Toxic Substances Control, in conjunction with the California Environmental Protection Agency, embarked on a strategic planning process that incorporated feedback from stakeholders. In response to this public process, the Budget proposes both governance and fiscal reform in an effort to address the issues facing the Department. It is essential that any plan to improve the operations of the Department be accompanied by two elements: (1) fiscal reform to restructure fees that appropriately fund the activities of the Department, and (2) the creation of a board structure that provides transparency of departmental decision making and additional policy guidance. GOVERNANCE The Budget proposes statutory changes and funding to establish and staff a five-member board that will set fees through regulation, hear permit appeals, and provide strategic guidance to the Department. The board will also employ an Ombudsman. This will create a transparent decision-making process for all stakeholders. The Budget proposes $3 million General Fund in 2020-21 for this board, with its costs eventually shifting to the Department’s special funds. 154 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg ENVIRONMENTAL PROTECTION FISCAL STABILITY Providing the Department with the appropriate level of resources to carry out its statutory mandates is the other foundational principle of this vision. The Department has made progress improving permitting, enforcement, and the Safer Consumer Products program. However, the remaining challenges facing the Department cannot be addressed without sustainable funding sources. This effort will be comprised of three core elements: • Fee Authority—The Budget proposes statutory changes to authorize the board to go through a public fee-setting process, with spending levels subject to the budget process. This will create fiscal stability into the future as circumstances change. • Hazardous Waste Fee Restructure—Hazardous waste management fees should distribute the cost of managing hazardous waste and support the polluter pays principle. The proposed language will streamline the existing fee structure, and will provide the board with the ability to set fees through a public process. • Toxic Substances Control Account—The Budget proposes statutory changes that would authorize the board to adjust the environmental fee through a public process. The Budget also proposes a one-time $12 million General Fund backfill to this fund given its structural deficit. Taken together, and in collaboration with stakeholders and the Legislature, these efforts will help move the Department toward meeting its statutory mandates while recognizing the complex set of issues the Department will continue to face. SUSTAINABLE PEST MANAGEMENT Pest management is essential to maintain public safety, food production, and the state’s natural resources. Although pesticides are an important tool, employing integrated and sustainable pest management strategies can effectively control pests with fewer chemicals. Last year, the Department of Pesticide Regulation and the California Department of Food and Agriculture jointly established a cross-sector work group to identify, evaluate, and develop safer, practical, and more sustainable alternative pest management tools for California growers. The work group is focused on providing effective, short-term solutions and developing a five-year plan to help industry seek long-term solutions to pest management. GOVERNOR'S BUDGET SUMMARY — 2020-21 155 ENVIRONMENTAL PROTECTION Version number CQ2DDvMG2BB5g7vg The Budget proposes $350,000 General Fund one-time to fund the work group and accelerate the transition of the California agricultural industry to safer, more sustainable pest management solutions. The work group will expand its focus to system-wide approaches and will provide recommendations for a comprehensive approach to safer alternatives for pest management. PROTECTING THE ENVIRONMENT FROM FEDERAL ROLLBACKS In 2018, the U.S. Environmental Protection Agency disbanded a scientific advisory panel on fine particle air pollution, and has taken numerous steps to roll back standards for toxic air pollution and greenhouse gas emissions by power plants, oil and gas facilities, and other sources of air pollution. In addition, the U.S. Environmental Protection Agency has made limited progress in evaluating unassessed chemicals (fewer than 5 percent of 40,000 chemicals), and its assessments lack toxicity and exposure data to support its actions. In response to these federal actions to roll back environmental protections, the Budget proposes additional measures to protect the environment: • Air Resources Board: Cutting Toxic Air Pollution in California Communities— $2.7 million special fund to develop new statewide regulations to reduce or eliminate exposure to air toxins from industrial and commercial facilities. This proposal will allow California to maintain environmental standards and help prevent unhealthy levels of toxic air pollution, particularly in communities that are overburdened by air pollution—even as federal standards in this area are eroded. • Office of Environmental Health Hazard Assessment: Evaluating Unassessed Chemicals Using Precision Prevention Methodologies—$6 million General Fund ($5 million one-time) to develop and implement new risk assessment methods to evaluate the toxicology of unassessed chemicals, in partnership with the University of California. This proposal will allow the state to pioneer methodologies to identify the hazards and toxicities of unassessed chemicals to inform decisions on the use and safety of chemicals given the limited federal progress in this area. For additional information on the state’s efforts to protect against federal rollbacks to fish and wildlife protections, see the Natural Resources chapter. 156 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg NATURAL RESOURCES NATURAL RESOURCES T he Natural Resources Agency consists of 26 departments, boards, commissions and conservancies responsible for administering programs to conserve, restore, and enhance the natural, historical, and cultural resources of California. The Governor’s Budget includes $6.7 billion ($3.8 billion General Fund, $1.8 billion special funds, and $1.1 billion bond funds) for programs included in this Agency. The Agency’s departments are on the frontlines of battling wildfires, navigating droughts and floods, and preparing for sea-level rise. They are also managing the transition beyond fossil fuels and helping California achieve its clean energy goals. The Administration’s resilience-oriented initiatives in this area include the draft Water Resilience Portfolio and investments to help address sea-level rise and protect high fire-risk communities, and are detailed in the Infrastructure and Climate Resilience chapters. MODERNIZING AND IMPROVING BIODIVERSITY PROTECTION The Budget advances core priorities in modernization, biodiversity, and regulatory efficiencies to protect and preserve California’s natural resources. Specifically, the Department of Fish and Wildlife, which serves as a trustee for California’s natural resources, has worked with stakeholders on a statutorily mandated service-based budget analysis. Preliminary results, developed over the last year, have GOVERNOR'S BUDGET SUMMARY — 2020-21 157 NATURAL RESOURCES Version number CQ2DDvMG2BB5g7vg identified gaps in specified levels of service. Although this is an initial analysis, the Budget helps address this gap through one-time General Fund investments, a permanent extension of limited-term funding that expires in 2020-21, and a shift of $18.9 million General Fund ongoing from the Habitat Conservation Fund to strategically supplement the Department's biodiversity conservation program. This shift enables the Department to prioritize funding for the most pressing conservation priorities facing the state. In addition, the Department of Fish and Wildlife will continue to refine the data and analyze and prioritize options to address identified constraints and challenges. This includes, but is not limited to, analyzing statutory, regulatory or policy adjustments that drive service level expectations; identifying streamlining opportunities to improve efficiency and effectiveness of resources; and identifying programmatic areas where redeployed resources could better align with identified needs. California is a global biodiversity hotspot, with more types of plants and animals than almost any other state. However, this natural abundance is increasingly under threat from climate change. The Administration is advancing initiatives to better protect plants and animals before they become endangered. MODERNIZING OPERATIONS The Budget includes several one-time investments to transfer and modernize the state's biodiversity protection efforts, including: • Light Detection and Ranging (LiDAR) and Remote Sensing—$80 million General Fund to the Agency to collect and make publicly available high-quality airborne LiDAR data for the entire state, which will better inform resource management decisions across a variety of sectors, including forest management, vegetation treatment, infrastructure project planning, and hazard assessments for floods, fires, tsunamis, and landslides. • Air Support to Protect Natural Resources—$6 million General Fund to the Department of Fish and Wildlife to purchase a fixed wing aircraft to monitor species populations, identify declines that could lead to drastic effects on commercial and recreational fisheries, and patrol impacts to species. • Wetlands Management—$7.5 million General Fund to the Department of Fish and Wildlife to modernize water conveyance systems to better manage wetlands, buffer 158 GOVERNOR'S BUDGET SUMMARY — 2020-21 NATURAL RESOURCES Version number CQ2DDvMG2BB5g7vg against future climate scenarios, maximize benefits to wildlife, and reduce staff maintenance costs. • Hatchery Operations—$6.5 million General Fund to the Department of Fish and Wildlife to modernize hatchery facilities that build resilience against environmental stressors, provide greater operational reliability, and improve fish survival. STABILIZING AND EXPANDING OPERATIONS The Budget includes a permanent extension of $30 million General Fund for the Department of Fish and Wildlife currently set to expire in 2020-21. These funds are necessary to support critical functions including conservation efforts, increased participation in hunting and fishing, connecting more Californians to the outdoors, and enhanced services to the public. The Budget also includes $2.2 million ongoing General Fund and eight new positions to better care for more than one million acres of wildlife areas and ecological reserves owned and managed by the Department. Staff will develop culturally relevant biodiversity education programs involving communities that live near these areas to facilitate understanding of climate change risks and the importance of maintaining biodiversity. Finally, the Budget includes $12.7 million ongoing General Fund and 34 positions to the Department to increase capacity to better protect species under threat of extinction. CUTTING GREEN TAPE Climate change and other unprecedented environmental changes demand improved approaches to protecting and stewarding California’s natural places. Fortunately, promising opportunities exist to increase the pace and scale of environmental restoration and stewardship to benefit both nature and people. California has established itself as a global leader in implementing solutions to many of the most intractable environmental problems. The Administration is advancing the Cutting Green Tape effort to enable environmentally beneficial work across the state more quickly, simply, and cost effectively. The Cutting Green Tape approach brings together regulatory agency staff, local governments, environmental conservation groups, and a range of other stakeholders and experts from across the state to improve permitting and funding efficiencies for ecological restoration and stewardship projects. GOVERNOR'S BUDGET SUMMARY — 2020-21 159 NATURAL RESOURCES Version number CQ2DDvMG2BB5g7vg The Budget includes $4 million in ongoing General Fund and 16 positions for the Department of Fish and Wildlife to increase the scale and pace of restoration work, and incorporate efficiencies into grant programs. The Department will form a restoration permitting team to provide early project consultation, hold permitting workshops, and incorporate the use of existing programmatic permitting options. DEPARTMENT OF PARKS AND RECREATION—PARKS FOR ALL Many Californians lack access to parks, open spaces, and natural and cultural amenities. The Administration is advancing initiatives to expand access to state parks and open spaces and invest in cultural resources to share their value with the public and protect them for future generations. The Budget proposes $65.1 million to advance the Parks for All initiative, which builds upon the Department of Parks and Recreation’s recent foundational reforms to expand the park system and improve access to its many parks. Major components for the Parks for All initiative included in the Budget are: • Establishing a New State Park—$20 million General Fund to create a new state park. The Department will design a vision for the new park that is inclusive and supports equitable access for all Californians. The Department will work with various philanthropic, conservation, and park interest groups to secure a property and design the vision and operations for the new park. • Acquiring Lands to Expand Parks—$4.6 million bond funds to acquire inholding properties that expand existing state parks and provide other co-benefits such as protecting biodiversity. • Improving Facilities in Urban Areas—$8.7 million Proposition 68 funds to expand access to state parks in urban areas and make other improvements to parks that serve disadvantaged communities. Significant investments include: ◦ Candlestick Point—$2.6 million for design of the park build out. ◦ Old Sacramento—$583,000 to start the design of new riverfront improvements. ◦ Improvements to Non-Profit Operated Parks—$4.9 million for special repair and deferred maintenance projects. ◦ Future Capital Outlay Project Scoping—$650,000 to study the cost, schedule, and scope of future capital outlay projects. 160 GOVERNOR'S BUDGET SUMMARY — 2020-21 NATURAL RESOURCES Version number CQ2DDvMG2BB5g7vg • Improving Access for Underserved Populations—$20 million General Fund to establish the Outdoor Equity Grants Program under Chapter 675, Statutes of 2019 (AB 209) to enable underserved and at-risk populations to participate in outdoor environmental educational experiences at state parks. • Enhancing Access Programming—$11.8 million to expand both technological and physical access to parks, as well as culturally inclusive enhancements to park programming and interpretive exhibits. Significant investments include: ◦ Natural, Interpretive, and Cultural Project Programs—$8.3 million Proposition 68 funds for the Natural Project Program to conserve and restore native plants and animals within State Parks ($3.2 million), the Interpretive Project Program to develop new exhibits intended to bring parks to life and improve the visitor experience ($2.6 million), and the Cultural Project Program to preserve history as it relates to State Parks ($2.5 million). ◦ Colonel Allensworth State Historic Park—$572,000 Proposition 68 funds to begin design of a new visitor center building, exhibits, and associated site improvements in this underserved region. ◦ K-12 Access Expansion—$2.9 million Environmental License Plate Fund to expand access programs for K-12 students and teachers in low income and underserved communities. • Eliminate Cost as Barriers for Low Income Individuals—To increase participation in a program that provides free day-use entry, the Department will partner with state and county social and public health programs to increase use of the low-income pass program. MAINTAINING FISCAL STABILITY FOR BOATING PROGRAMS The primary fund that supports boating-related activities, the Harbors and Watercraft Revolving Fund, has become structurally imbalanced over the course of several years. The Administration will explore options including, but not limited to, revenue increases and program expenditure reductions to best support the continuation of boating programs. The Administration will put forward a proposal later this year. GOVERNOR'S BUDGET SUMMARY — 2020-21 161 NATURAL RESOURCES Version number CQ2DDvMG2BB5g7vg STRENGTHENING PARTNERSHIPS WITH TRIBES AND COMMUNITIES Tribal communities have effectively stewarded California’s natural resources since before the state’s inception. The Administration recognizes this leadership and is interested in strengthening collaboration with California Native American tribes to better manage natural resources as well as working with communities directly impacted by natural resources management decisions. To advance these priorities, the Budget proposes funding to support the establishment of the Truth and Healing Council and increase the Agency’s capacity to work with tribal nations and community-based organizations to further strengthen the Agency’s environmental justice program. Expanding this capacity will advance the Administration’s commitment to new partnerships with tribes and achieving environmental justice. Other significant adjustments: • Truth and Healing Council—$450,000 annually through 2023-24 and $225,000 in 2024-25 from the Environmental License Plate Fund to the Native American Heritage Commission to support the establishment of the Truth and Healing Council as identified in the Governor’s Executive Order N-15-19. • Environmental Justice—$360,000 ongoing from the Environmental License Plate Fund to the Agency to establish the positions of Assistant Secretary for Environmental Justice and Assistant Secretary for Tribal Affairs to support and expand the Agency’s effort to institutionalize environmental justice and tribal consultation practices into its program planning, development and implementation. DEPARTMENT OF CONSERVATION—OIL AND GAS OVERSIGHT California is the nation’s leader in reducing reliance on fossil fuels, limiting greenhouse gas emissions, and transitioning to a low-carbon economy. This transition includes strengthening oversight of oil and gas extraction to better protect people and the environment in a manner that facilitates a thoughtful economic transition. Over the last year, the Administration has refocused the statutory mission of the division overseeing these activities, now called the California Geologic Energy Management Division (CalGEM), to prioritize protecting human health, safeguarding the environment, and advancing the state’s climate and energy goals. The Administration also 162 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg NATURAL RESOURCES commissioned a first-ever study on how the state should manage the decline of oil supply as it moves to decarbonize the state’s economy, and funded workforce investments to enable economic transition away from dependence on fossil fuels. These recent actions build upon progress made in recent years to strengthen CalGEM’s regulations, professionalize its workforce, and more actively enforce the law. Along with these improvements, the Budget includes additional resources for increased regulatory oversight, enforcement, and bonding level evaluations. The Budget includes $24.3 million special fund and 128 new positions, phased in over three fiscal years, to strengthen field enforcement of existing laws and regulations, validate adequate bonding levels for operators to limit state financial liability, and improve public transparency of CalGEM’s regulatory activities. GOVERNOR'S BUDGET SUMMARY — 2020-21 163 Version number CQ2DDvMG2BB5g7vg STATEWIDE ISSUES AND VARIOUS DEPARTMENTS STATEWIDE ISSUES AND VARIOUS DEPARTMENTS T his chapter describes items in the Budget that are statewide issues or related to various departments. CALIFORNIA LEADS AS AN EMPLOYER The State of California has a responsibility to serve all Californians, which requires a workforce that reflects the state's diversity. In September 2019, the Governor convened Secretaries, Undersecretaries, Directors, and Chief Deputy Directors for a forum to reflect and learn about ways to create a more inclusive, respectful, and equitable workplace. Attendees of the forum volunteered to participate in four task forces addressing the following topics: Sexual Harassment and Discrimination Prevention and Response, Diversity and Inclusion, Public Safety Diversity, and Racial and Gender Pay Equity. The task forces are overseen by the Government Operations Agency with assistance from the Department of Human Resources (CalHR), State Personnel Board, and Department of Finance. Final recommendations of the task forces will be presented to the Governor by July 2020. The state will use these recommendations to shape a bold vision to make the state workforce more inclusive and diverse. This will entail core reforms to how the state GOVERNOR'S BUDGET SUMMARY — 2020-21 165 STATEWIDE ISSUES AND VARIOUS DEPARTMENTS Version number CQ2DDvMG2BB5g7vg recruits, onboards, develops, manages, and retains talent. A more diverse and inclusive workforce will make the state an “employer of choice.” OFFICE OF DIGITAL INNOVATION California is changing the way it delivers government services to the millions of Californians who interact with government every day. The state is building the foundation for the shift from a passive governance model that responds to statutory mandates to a pro-active, customer-focused service delivery model. The state needs to recast the relationship between Californians and their government, and redesign how government operates to enable modern service delivery. This requires a cultural shift in government that: • Provides an intuitive customer experience—Residents should be able to interact with state government in the same way they receive non-governmental services—largely digital and often mobile-enabled. • Engages and responds to residents—The state must broaden its engagement to improve its ability to deliver services and more effectively reach residents throughout the state. • Tracks outcomes—The state needs to set open and transparent standards for customer service, deliver on those standards, and continue to learn and improve. In its first year, the Administration has laid the foundation for this transformation by: • Investing in digital service transformation capacity through the Office of Digital Innovation, which is under the Government Operations Agency; • Conducting nationwide digital talent searches to fill key positions; • Simplifying digital interactions with people starting with a redesign of the CA.gov website; • Making data more accessible to the public by launching a Geographic Information System portal; • Improving procurement with the flexible Request for Innovative Ideas approach; and • Encouraging data sharing and data-informed decision making. 166 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg STATEWIDE ISSUES AND VARIOUS DEPARTMENTS INFORMATION TECHNOLOGY SECURITY The Budget includes $11.3 million one-time ($8.3 million General Fund) and $38.8 million ongoing ($29.4 million General Fund) and 85 positions to strengthen the state’s information technology security operations. The Administration is committed to protecting the state’s critical information assets and infrastructure, which includes personal data. The state has taken numerous steps over the past decade to audit state entities' compliance with state security and privacy policies. This includes the creation of the California Cybersecurity Integration Center to coordinate information sharing with local, state, and federal agencies. The Department of Technology currently monitors cyber traffic continuously on the state’s network and coordinates incident response. The Budget provides funding to mature the state’s overall security posture, improve statewide information security initiatives, analyze cyber threat intelligence, and respond to and mitigate potential threats. DEPARTMENT OF MOTOR VEHICLES A 2019 audit of the Department of Motor Vehicles (DMV) found its operations were not always efficient and effective in delivering services to its customers. The work of the DMV Strike Team resulted in additional recommendations to improve the operations at field offices, particularly as the department addresses the spike in customer transactions due to federal REAL ID implementation. In response to these findings, the 2019 Budget Act included $242 million Motor Vehicle Account (MVA) in 2019-20 and $200 million MVA in 2020-21 to address immediate needs and long-term improvements. The DMV is making strides to improve public access and increase its ability to serve the public more efficiently. As of December 2019, the DMV hired an additional 926 temporary employees, and wait times, once exceeding several hours, have returned to target levels at most field offices throughout the state. Additionally, the DMV has made improvements to its training program with a greater focus on customer service. The DMV has improved the overall customer service experience by expanding Internet capabilities in its field offices, enabling employees to better queue incoming customers, and adding a Chatbot feature to its website to assist customers with REAL ID questions, which reduces the need for customers to come to field offices. In addition, the DMV GOVERNOR'S BUDGET SUMMARY — 2020-21 167 STATEWIDE ISSUES AND VARIOUS DEPARTMENTS Version number CQ2DDvMG2BB5g7vg piloted the acceptance of credit cards in field offices, and will accept credit cards in all field offices in 2020. With an October 2020 deadline for REAL ID issuance, the DMV has engaged in a media campaign to educate the public about REAL ID requirements. The DMV is also working with international and regional airports to provide information and educate travelers about REAL ID requirements. The two-year funding allows the DMV to continue its efforts to meet the requirements of REAL ID and make necessary changes to improve daily operations and customer service. PAYING DOWN UNFUNDED PENSION LIABILITIES Reducing the state’s $165 billion unfunded pension liability is critical to ensuring the long-term security of the state's retirement benefits. The state has taken significant steps in addressing those liabilities by reforming public pension law under the Public Employees’ Pension Reform Act of 2013 (PEPRA), and by implementing a funding strategy to pay down the California State Teachers’ Retirement System (CalSTRS) unfunded liability. The state made unprecedented supplemental payments including $6 billion to CalPERS in 2017-18 funded through a loan from the Surplus Money Investment Fund, which is projected to save the state a net of $6 billion over the next three decades. In the 2019 Budget Act, the state committed $3 billion to the California Public Employees' Retirement Systems (CalPERS) and $2.9 billion to CalSTRS over the next few years. Collectively, these efforts have placed the state in better fiscal position for retirement security, and will help maintain a key recruitment tool for the state’s workforce. STATE EMPLOYEES’ RETIREMENT CONTRIBUTIONS The Budget includes $7 billion one-time ($4 billion General Fund) for the statutorily required annual state contribution to CalPERS for state pension costs. This is $284 million higher than 2019-20. Included in these costs are $739 million General Fund for California State University retirement costs. In addition to the state’s required contributions, the 2019 Budget Act included a $3 billion supplemental pension payment authorized to be paid towards the unfunded liabilities of the CalPERS state retirement plans over fiscal years 2018-19 through 2022-23. The Budget proposes to accelerate the payment of the remaining $500 million currently scheduled over fiscal years 2020-21 through 2022-23 into a single payment in 2019-20. 168 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg STATEWIDE ISSUES AND VARIOUS DEPARTMENTS This proposed change will result in an additional $42 million in estimated savings to the state over the next three decades. TEACHERS’ RETIREMENT CONTRIBUTIONS The Budget also includes $3.6 billion one-time General Fund for the statutorily required annual state contribution to CalSTRS. This is roughly $268 million higher than 2019-20. In addition to the state’s required contributions, the 2019 Budget Act included a $2.9 billion supplemental pension payment to be paid towards the state’s share of the unfunded liability for the CalSTRS Defined Benefit Program over fiscal years 2019-20 through 2022-23 using available Proposition 2 debt payment funding. For 2020-21, the Budget includes $802 million toward this payment. STATE HEALTH CARE BENEFITS The state is projected to spend approximately $6.1 billion on health care benefits in 2020-21 for more than 850,000 state employees, retirees, and their family members. This includes $2.4 billion for retiree health care benefits for 2020-21, which has grown by 75 percent compared to what the state paid in 2010-11 ($1.4 billion). Through the collective bargaining process, the state’s 21 employee bargaining units and related excluded and exempt employees now prefund retiree health benefits. As a result, more than $2 billion is currently set aside in the prefunding trust fund to pay for future retiree health benefits, which has an estimated $85.6 billion unfunded liability to be paid down by 2046. By the end of 2019-20, the trust fund balance will approach $2.6 billion in assets. GOVERNOR'S BUDGET SUMMARY — 2020-21 169 STATEWIDE ISSUES AND VARIOUS DEPARTMENTS Version number CQ2DDvMG2BB5g7vg EMPLOYEE COMPENSATION AND COLLECTIVE BARGAINING The Budget includes $1.5 billion ongoing ($654 million General Fund) for increased employee compensation, health care costs for active state employees, and retiree health care prefunding for active employees. Included in these costs are collectively bargained salaries and benefit increases as a result of contract negotiations, including the recently negotiated contract with the Service Employees International Union, Local 170 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg STATEWIDE ISSUES AND VARIOUS DEPARTMENTS 1000, and pay increases related to minimum wage changes in Chapter 4, Statutes of 2016 (SB 3). Funding is also included for 2021 calendar year increases in health care premiums and enrollment. Collective bargaining negotiations will commence with seven bargaining units representing Attorneys and Administrative Law Judges, Correctional Officers, Engineers, Scientists, Craft and Maintenance, Physicians/Dentists/Podiatrists, and Health and Social Services, whose contracts expire in late June or early July 2020. CANNABIS Enacted in 2015, the Medical Marijuana Regulation and Safety Act created a regulatory framework for medical cannabis in California, and distributed the responsibility for state licensing between three state entities—the Bureau of Cannabis Control, the Department of Food and Agriculture, and the Department of Public Health. In November 2016, voters approved Proposition 64, the Adult-Use of Marijuana Act, which legalized the recreational sale and use of cannabis to people over the age of 21 and levied new excise taxes on the cultivation and retail sale of state-regulated cannabis. Chapter 27, Statutes of 2017 (SB 94), integrated medicinal and adult-use regulations to create the Medicinal and Adult-Use Cannabis Regulation and Safety Act, establishing a single regulatory system to govern the commercial cannabis industry in California. REGULATION AND TAX REFORM In an effort to improve access to licensing and simplify regulatory oversight of commercial cannabis activity, the Administration plans to consolidate the three licensing entities into a single Department of Cannabis Control by July 2021. Establishing a stand-alone department with dedicated enforcement will centralize and align critical regulatory functions to build a successful legal cannabis market, and create a single point of contact for cannabis licensees and local governments. The Administration will submit more details on this proposal in spring 2020. As approved in Proposition 64, excise taxes are levied on the cultivation and retail sale of both adult-use and medicinal cannabis with tax revenues deposited into the Cannabis Tax Fund, to be allocated to various state entities pursuant to Proposition 64. The cannabis excise tax is forecast to generate $479 million in 2019-20 and $550 million in 2020-21. The forecast assumes continued growth of more than 15 percent annually as new businesses continue to enter the marketplace and local jurisdictions adjust to the GOVERNOR'S BUDGET SUMMARY — 2020-21 171 STATEWIDE ISSUES AND VARIOUS DEPARTMENTS Version number CQ2DDvMG2BB5g7vg state’s legal framework. In the near term, revenue estimates will be subject to significant uncertainty because the market has only recently been established. The Administration also proposes to simplify tax administration for cannabis by changing the point of collection of cannabis taxes. The changes move the responsibility for the cultivation excise tax from the final distributor to the first and for the retail excise tax from the distributor to the retailer. Because the retail excise tax is currently collected by the distributor, the California Department of Tax and Fee Administration (CDTFA) must biannually estimate an average mark-up rate on cannabis products to determine a wholesale tax rate that ensures the tax paid by the distributor is equal to 15 percent of gross receipts at retail. Moving the incidence of this tax to the retailer will eliminate CDTFA’s requirement to estimate product mark-ups and set wholesale tax rates. The changes will reduce the tax collection burden on the cannabis industry and simplify the tax collection process. The revenue impact from the changes includes a loss of revenue in 2020-21, as the excise tax would be collected later in the process, with a small increase in revenue in future years related to these changes. The Administration, in consultation with the industry and stakeholders, will consider other changes to the existing cannabis tax structure, including the number of taxes and tax rates to simplify the system and to support a stronger, safer legal cannabis market. UPDATED ALLOCATION OF THE CANNABIS TAX FUND Proposition 64 specified the allocation of resources in the Cannabis Tax Fund, which are continuously appropriated. Pursuant to Proposition 64, expenditures are prioritized for regulatory and administrative workload necessary to implement, administer, and enforce the Cannabis Act, followed by research and activities related to the legalization of cannabis and the past effects of its criminalization. Once these priorities have been met, the remaining funds are allocated to youth education, prevention, early intervention, and treatment; environmental protection; and public safety-related activities. The Budget estimates $332.8 million will be available for these purposes in 2020-21, and the structure of these allocations is unchanged from 2019‑20: • Education, prevention, and treatment of youth substance use disorders and school retention—60 percent ($199.7 million). • Clean-up, remediation, and enforcement of environmental impacts created by illegal cannabis cultivation—20 percent ($66.6 million). • Public safety-related activities—20 percent ($66.6 million). 172 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg STATEWIDE ISSUES AND VARIOUS DEPARTMENTS CALIFORNIA ARTS COUNCIL The California Arts Council’s mission is advancing California through the arts and creativity. The Council administers grants to support the state’s arts and cultural communities through the development of partnerships with the public and private sectors to enhance the cultural, educational, social, and economic growth of California. The grant programs support arts education in school and community settings; system-engaged youth; recently incarcerated individuals; local and community economic development; recent immigrants and refugee communities; native communities; veterans and their families; and various arts service organizations, and are designed to serve populations and communities who are underrepresented in the arts and have reduced access to arts programs. The 2019 Budget Act provided $10 million ongoing General Fund for grants made by the Council. California Cultural Districts were established in 2015 through Chapter 396, Statutes of 2015 (AB 189). These districts leverage the state’s artistic and cultural assets, and celebrate California’s diversity, helping to grow and sustain grassroots arts and cultural opportunities, increasing the visibility of local artists and community participation in local arts and culture, and promoting socioeconomic and ethnic diversity. The Budget includes $9 million one-time General Fund to support the existing 14 cultural districts and the addition of cultural districts in underrepresented areas, such as the Central Valley and Inland Empire. The Arts Council will coordinate outreach and engagement with non-governmental organizations and the philanthropic community in this effort. The Budget also includes $1 million one-time General Fund for the Arts Council to develop disaster preparedness guidelines and best practices at the county level to protect and preserve artifacts during a disaster. CALIFORNIA CONSUMER FINANCIAL PROTECTION California’s economy and its people thrive when predatory business practices are policed and innovation is cultivated. This is especially true for consumer financial products, as evidenced by the financial crisis a decade ago. In response to the crisis, the federal Consumer Financial Protection Bureau (CFPB) was established to enforce consumer rights, monitor markets and identify patterns of abuse, and listen to and educate consumers. The federal government’s rollback of the CFPB leaves Californians vulnerable to predatory businesses and leaves companies without the clarity they need to innovate. GOVERNOR'S BUDGET SUMMARY — 2020-21 173 STATEWIDE ISSUES AND VARIOUS DEPARTMENTS Version number CQ2DDvMG2BB5g7vg Currently, the Department of Business Oversight (DBO) regulates certain financial services and oversees state-licensed financial institutions, including banks, credit unions, and money transmitters. DBO also licenses and regulates securities brokers and dealers, investment advisers, payday lenders, mortgage lenders, escrow agents, student loan servicers, and other commercial and consumer lenders. The Budget expands DBO’s authority and capacity to protect consumers and foster the responsible development of new financial products. To better reflect its current and future role, DBO’s name will be changed to the Department of Financial Protection and Innovation. The Budget includes $10.2 million Financial Protection Fund and 44 positions in 2020-21, growing to $19.3 million and 90 positions ongoing in 2022-23, to establish and administer the California Consumer Financial Protection Law, which will provide consumers with more protection against unfair and deceptive practices when accessing financial services and products. This will be accomplished by expanding the Department’s authority to pursue unlicensed financial services providers not currently subject to regulatory oversight such as debt collectors, credit reporting agencies, and financial technology (fintech) companies, among others. Specific new activities include: • Offering services to empower and educate consumers, especially older Americans, students, military service members, and recent immigrants; • Licensing and examining new industries that are currently under-regulated; • Analyzing patterns and developments in the market to inform evidence-based policies and enforcement; • Protecting consumers through enforcement against unfair, deceptive, and abusive practices; • Establishing a new Financial Technology Innovation Office that will proactively cultivate the responsible development of new consumer financial products; • Offering legal support for the administration of the new law; and • Expanding existing administrative and information technology staff to support the Department’s increased regulatory responsibilities. Initial costs for the new program will be covered by available settlement proceeds in the State Corporations and Financial Institutions Funds, with future costs covered by fees on the newly covered industries and increased fees on existing licensees. 174 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg STATEWIDE ISSUES AND VARIOUS DEPARTMENTS CALIFORNIA VOLUNTEERS As the State Service Commission for California, California Volunteers manages programs and initiatives aimed at increasing the number of Californians engaged in service and volunteering. California Volunteers supports AmeriCorps members serving statewide in programs that address critical community needs in education, public safety, health and human services, and the environment. The 2019 Budget Act provided $20 million to increase the number of AmeriCorps members. California Volunteers issued the first round of grants in fall 2019 to twelve new programs supporting 360 members. These new programs are focused on building service initiatives in underserved communities in the Central Valley. In addition, this funding supported an increase in the educational award provided to certain new and existing members from $6,095 to $10,000. California Volunteers anticipates issuing a second round of grants from the $20 million to further expand the number of AmeriCorps members in 2020-21. The Budget takes another important step towards expanding the AmeriCorps program and increasing opportunities for Californians to serve their communities. Specifically, the Budget includes $1.7 million ongoing General Fund for administrative and strategic planning staff to support future service initiatives, including continuing to grow the AmeriCorps program. These staff will be responsible for volunteer initiative development, administrative and program oversight, AmeriCorps volunteer recruitment, development of strategic public/private volunteer partnerships, and conducting a service and volunteer public engagement campaign. The Administration continues to work on expanding the state's AmeriCorps program to support needed increases in civic engagement and volunteering, with an update expected in spring 2020. CALIFORNIA DEPARTMENT OF VETERANS AFFAIRS The California Department of Veterans Affairs (CalVet) works to serve the nearly 1.6 million veterans and their families living in California. CalVet strives to ensure that veterans of every era and their families receive state and federal benefits and services they have earned and deserve as a result of selfless and honorable military service. CalVet operates eight homes throughout the state that provide residential and medical care services to aged or disabled California veterans who served on active duty. GOVERNOR'S BUDGET SUMMARY — 2020-21 175 STATEWIDE ISSUES AND VARIOUS DEPARTMENTS Version number CQ2DDvMG2BB5g7vg CalVet also offers direct low-cost loans to acquire farms and homes. The Budget includes $520.6 million ($450.2 million General Fund) for CalVet. CalVet recently released its statutorily required Master Plan for the overall operation of the veterans homes. The Master Plan discusses veteran population trends in California, the potential location of future facilities and alternate service delivery models, and includes several recommendations, some of which are reflected in the Budget as follows: • Realigning Levels of Care—The Budget proposes to begin realigning levels of care by adjusting domiciliary populations at Barstow, Chula Vista, and Yountville; converting current Intermediate Care Facilities to Residential Care Facilities at Barstow and Yountville; and increasing Skilled Nursing Facility beds at Barstow. In examining its current services, CalVet identified significant community interest for the highest levels of care. For example, CalVet maintains a waitlist with nearly 85 percent of applicants seeking skilled nursing or memory care, while independent living and intermediate care units are underutilized. Residents needing intermediate care will be placed in either Residential Care or Skilled Nursing Facilities based on the severity of their treatment needs. This will provide a continuum of care for residents of the veterans homes. Current residents will not be displaced and realigning levels of care will be achieved following the attrition of existing residents. The Budget anticipates a $2.5 million decrease in General Fund revenues in 2020-21 due to fewer residents and the associated reduction in federal per diem payments and other related revenue. • Mental Health Services for Veterans—The Budget includes $2.3 million ongoing General Fund to improve behavioral health services at the veterans homes by standardizing mental health support staffing. • Rightsizing Funding and Support for the Homes—The Budget includes $6.8 million ongoing General Fund related to funding shortfalls at the three oldest veterans homes. The funding will primarily support increased costs for maintenance and service contracts, supplies, workers’ compensation, utilities, dietary supplies, and pharmaceuticals. FARM TO SCHOOL PROGRAM Farm to school programs are a vital way to improve the health and well-being of California school children through integrated nutrition education and healthy food 176 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg STATEWIDE ISSUES AND VARIOUS DEPARTMENTS access. Hundreds of millions of meals are served each year in California schools, and expanding opportunities for local food procurement that is tied to nutrition education is essential for establishing healthy eating habits that children can carry into adulthood. Procurement of more California Grown food also supports connecting California’s agriculture to California consumers. The Budget proposes $10 million one-time General Fund in 2020-21 and $1.5 million annually thereafter for the California Department of Food and Agriculture to establish a Farm to School Grant Program. This program will help support California farmers and expand healthy food access in schools by providing grants to schools to establish programs that coordinate local and California Grown food procurement and utilization in school meals as well as food and agriculture education in classrooms and cafeterias through experiential learning opportunities in school gardens, on farms, and other culinary and agricultural pathways. This funding will also support the new Farm to School Working Group to advance farm to school implementation and explore how to create a more resilient and climate-smart food supply in California. GRANTS FOR ANIMAL SHELTERS The Budget includes an increase of $50 million one-time General Fund for the University of California Davis Koret Shelter Medicine Program to develop a grant program for animal shelters. The program will include interactive group training for approximately 100 shelters, selected on a voluntary basis and prioritized by need; California and regional best practices summits; and an online resource library available to all shelters. Over a five-year period, this program will provide expertise, support, and local assistance to help local communities achieve the state’s longstanding policy goal that no adoptable or treatable dog or cat is euthanized. GOVERNOR'S BUDGET SUMMARY — 2020-21 177 Version number CQ2DDvMG2BB5g7vg INFRASTRUCTURE INFRASTRUCTURE C alifornia is a microcosm of America and is the model for building a climate-resilient future. The goals the state has adopted and the policies it has set foreshadow the changes that society must make to address climate change. This leadership begins with what the state builds and owns and the resources and communities it protects. The state supports, manages, or regulates significant physical infrastructure. As climate change accelerates, it is a primary obligation of government to improve and upgrade this infrastructure, and to do so in a way that promotes resiliency. Infrastructure and capital assets allow for the delivery of public services and the movement of goods across the state, both of which are essential components in fostering continued economic growth in California. To continue economic growth, state infrastructure planning must be driven by the present and future needs of Californians, including mitigating the life-threatening impacts of climate change the state is already experiencing. The 2020 Five-Year Infrastructure Plan (Plan) focuses on how the state’s investment in infrastructure, which underpins economic activity, can be leveraged to create a sustainable and resilient California. The Plan recognizes that infrastructure investments are foundational to addressing climate change, expanding opportunity, and supporting economic growth. GOVERNOR'S BUDGET SUMMARY — 2020-21 179 INFRASTRUCTURE Version number CQ2DDvMG2BB5g7vg This strategy is consistent with Executive Order N-19-19, in which the Governor directed state agencies with primary responsibility over major state-owned or operated assets—the Departments of Transportation and General Services—to align investments with the state’s climate goals. The Executive Order also directed the Department of Finance to work with the state’s pension funds on a framework to advance California's climate leadership, protect taxpayers, and support the creation of high-road jobs. This Plan describes how the state will focus its limited resources on core state responsibilities, including but not limited to the state's responsibility to reduce risks from climate change while transitioning to a carbon neutral economy. The majority of the proposed funding in the Plan—more than 76 percent—is dedicated to the state’s transportation system, which makes up 40 percent of the state's carbon emissions and is a central focus of the Administration’s Climate Budget. The Plan also addresses other key areas, such as housing, water, and energy, where the state does not always own or operate critical infrastructure, but does play a leadership role by setting goals, eliminating roadblocks, and taking action to spur local government and private sector investment. COMPONENTS OF THE PLAN The Plan consists of four main elements: climate resilience, education, broadband, and other critical state infrastructure. Climate resilience consists of investments in housing, transportation, water, energy, and natural and working lands. Taken together, these components form a comprehensive strategy to modernize and expand California’s infrastructure. The Plan reflects the Governor’s proposal for investing $53 billion in state infrastructure over the next five years. See the Infrastructure Plan—Proposed Spending figure for a summary of the proposed funding by program area, and the Statewide Capital Funding by Department and Fund Source figure for a summary of the proposed funding by year, department, and fund source. Appendix 1, which provides background on state-owned infrastructure, and Appendix 2, which includes a detailed listing of the specific projects proposed to be funded. These appendices can be found on the Department of Finance's website at www.dof.ca.gov. 180 GOVERNOR'S BUDGET SUMMARY — 2020-21 INFRASIRUC Infrastructure Plan - Proposed Spending [Dollars in Thousands] Capital Expenditures: Five-Year Program Area Capital Funding Judicial Branch $2,015,579 Transportation! High Speed Rail Authority Natural Resources Health and Human Services $25,048 Corrections and Rehabilitation $974,963 Education $1 .001093 General Government $2,636,595 Total $53,312,409 2020-21 181 INFRASTRUCTURE Version number CQ2DDvMG2BB5g7vg CLIMATE RESILIENCE In September 2019, the Governor built on and strengthened the state's climate goals through Executive Order N-19-19, which specifically points to the state's pension systems, transportation investments, and state-owned assets as areas where the state must proactively reduce climate risk while investing toward a carbon neutral future by 2045. 182 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg INFRASTRUCTURE Specifically, state and local governments should work towards a future in which: • People and communities can thrive in the face of climate change in a manner that minimizes risks to public health, safety, and economic stability, while maximizing equity and protecting the most vulnerable residents. • Natural systems adjust and ecosystems continue to function in the face of change. • Infrastructure withstands changing climate conditions while continuing to provide essential services. Achieving a vision where California thrives in the face of a changing climate requires state and local governments to integrate climate risk assessment and adaptation into decisions affecting infrastructure, natural systems, and communities. In November 2017, the Governor’s Office of Planning and Research (OPR) published Planning and Investing for a Resilient California: A Guidebook for State Agencies, which provides guidance for state agencies on how to work toward this vision. The guidance emphasizes consideration of current and future climate conditions based on the best available science. It also prioritizes equity and inclusion, as well as coordination with local and regional partners. In support of these goals, the Budget proposes $12 billion over the next five years for a comprehensive Climate Budget, which combines Greenhouse Gas Reduction Fund investments with a proposed climate resilience bond and a new revolving loan fund. Taken as a whole, the Climate Budget prioritizes investments in transportation, including vehicles, fuels, and infrastructure, as well as land-based strategies to reduce climate risk throughout the state. As a part of this package, the climate resilience bond, if approved by the voters in November 2020, will provide $4.75 billion for resilience investments that reduce climate risks in the following areas: water, fire, extreme heat, and sea level rise. It also invests in local resilience centers to provide capacity and technical assistance at the community level. In addition, the Climate Budget includes strategies specifically aimed at leveraging private sector resources to support the state’s climate goals, recognizing that government cannot tackle these issues at the necessary speed and scale without engaging the private sector. For additional details on the Climate Budget, see the Climate Resilience chapter. GOVERNOR'S BUDGET SUMMARY — 2020-21 183 INFRASTRUCTURE Version number CQ2DDvMG2BB5g7vg HOUSING Recognizing that California is in the midst of a housing crisis due to decades of underproduction, the Budget continues to support implementation of recent significant investments to increase housing production. By partnering with local jurisdictions to support greater housing production, and by subsidizing the production of affordable and moderate-income housing, the state is creating the conditions for more housing, closer to job centers. This will lead to shorter commutes, which in turn results in better health outcomes, fewer greenhouse gas emissions, and a higher quality of life. Over the next five years, the state will invest approximately $17 billion to continue to bolster housing production, including an estimated $2 billion from Cap and Trade proceeds for affordable housing and sustainable communities as well as $1.75 billion one-time General Fund from the 2019 Budget Act to promote the production of housing as follows: • $250 million for planning grants to local governments for technical assistance in developing plans to reach statewide housing production goals. • $500 million for grants for infrastructure that support higher-density affordable and mixed-income housing in locations designated as infill. • $500 million to expand the Mixed-Income Loan Program at the California Housing Finance Agency to provide loans to developers for mixed-income developments. • $500 million ongoing for state tax credits for the development of new affordable housing and for deeper subsidies for preservation projects across the state, helping to maintain the state’s overall housing availability. In addition, the state has identified excess state properties to solicit affordable housing developers to build demonstration projects that use creative and streamlined approaches to building affordable and mixed-income housing. To support long-term housing production, Chapter 159, Statutes of 2019 (AB 101) provides incentives for local governments to implement pro-housing policies that facilitate planning and construction of housing. At the same time, AB 101 allows courts to hold persistently non-compliant cities and counties accountable to meet their housing goals, including escalating fines and authority to appoint an agent of the court to take actions necessary to bring a jurisdiction into compliance. The state will continue to pursue policy changes that support housing production as well as hold local jurisdictions accountable to remove barriers to more housing 184 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg INFRASTRUCTURE production in the state. The Budget includes $10 million General Fund annually for the next three years to support the state's efforts to increase housing production. The Administration is committed to working with the Legislature this year on additional actions to expedite housing production, including changes to local zoning and permitting processes, as well as adding predictability and reducing the costs of development fees. For additional details see the Housing chapter. TRANSPORTATION As California grapples with a housing crisis, the impacts on transportation access and affordability are increasingly apparent. Californians are driving more as they are forced to commute longer distances due to the lack of proximity between affordable housing options and job centers, further exacerbating California's aging road infrastructure as well as climate impacts from transportation. But there is also opportunity for innovative solutions as the sector experiences rapid change through electrification, automation, ride-sharing, and other mobility options. California, home to many of these innovations, must create a transportation system that is flexible and open to the potential for better travel options that meet the state's growing population needs while supporting sustainable, inclusive growth. To tackle these challenges, over the next five years, the Plan invests approximately $5 billion in public transit and rail infrastructure, and $1.1 billion for active transportation projects, to increase access to multi-modal transportation options. Additionally, the Plan includes continued investment in High Speed Rail. This system will be an economic backbone for the Central Valley, promoting new housing and jobs near rail stations, and will also provide connectivity between Central Valley cities and, ultimately, the coasts. The High Speed Rail Authority is continuing to construct the Central Valley segment completing electrified High Speed Rail from Merced to Bakersfield with Proposition 1A bonds, federal funds, and 25 percent of the continuously appropriated funding from annual Cap and Trade auction proceeds. Additionally, the state has committed $1.1 billion to locally sponsored projects in northern and southern California that will improve local rail service and benefit High Speed Rail when the system is connected to those areas. The funding provides resources to continue meeting commitments to federal and regional partners, and advancing Phase 1 environmental clearances. In addition to investing in new transportation options, it is critically important to maintain and restore California’s aging road infrastructure. Well-maintained roads reduce wear and tear and also increase the fuel efficiency of vehicles. However, these investments GOVERNOR'S BUDGET SUMMARY — 2020-21 185 INFRASTRUCTURE Version number CQ2DDvMG2BB5g7vg alone will not make a meaningful dent in the state's climate goals, and must be paired with specific programs intended to reduce overall vehicle miles traveled. Over the next five years, $22 billion will be available for new state highway repair and rehabilitation projects in the State Highway Operations and Protection Program (SHOPP). The Road Repair and Accountability Act of 2017, Chapter 5, Statutes of 2017 (SB 1), increased available SHOPP funding capacity by $8 billion through 2022-23. As the state invests in ongoing road maintenance, it is critical that the state does so in a way that is resilient in the face of physical climate impacts like floods, fires, extreme heat, and sea level rise. The Climate Budget includes investment in the climate research that will underpin these decisions, as well as in programs such as cool road surface investment in areas of the state experiencing extreme heat impacts from climate change. Over this same five-year period, $3.3 billion will be available for the State Transportation Improvement Program, which provides funding for future multi-modal transportation improvements throughout California. This program supports the implementation of regional Sustainable Community Strategies (75 percent), as well as interregional travel (25 percent). An additional $1 billion for partnerships with local transportation agencies is also included in the Plan. These programs will complement other investments in low-carbon vehicles and fuels. For additional information on investments in low-carbon transportation programs, see the Climate Resilience chapter. WATER As climate change continues to threaten the reliability of the state’s water infrastructure, the Administration is advancing a strategy to build a comprehensive, resilient water system, starting with the Governor’s call for an integrated Water Resilience Portfolio in his Executive Order N-10-19. In the Order, the Governor directed the Administration to develop a comprehensive strategy for a climate-resilient water system. The Order directs the agencies to inventory current water supplies and the health of waterways, assess future demands and challenges, and identify key priorities for the state’s water resilience portfolio. WATER RESILIENCE PORTFOLIO Pursuant to the Governor’s Executive Order, the Administration has released a draft Water Resilience Portfolio that identifies the following priorities: 186 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg INFRASTRUCTURE • Maintain and diversify water supplies—The state will continue to support regions to reduce reliance on any one water source and diversify supplies to enable flexibility as conditions change. Diversification will look different in each region based on available water resources. This effort will strengthen water security and reduce pressure on river systems across the state. • Protect and enhance natural systems—State leadership is essential to restore the environmental health of many of the state's river systems to sustain fish and wildlife. This entails effective standard-setting, and more adaptive, holistic environmental management. • Build connections—The state aims to improve physical infrastructure to store, move, and share water more flexibly and integrate water management through the shared use of science, data, and technology. • Be prepared—Each region must prepare for new threats, including more intense floods, deeper droughts, and hotter temperatures. State guidance will enable preparation, protective actions, and adaptive management to weather these stresses. The Budget prioritizes recommendations emerging from the Water Resilience Portfolio, with 62 percent of the proposed $4.75 billion climate resilience bond dedicated to programs that align with priorities identified in the Portfolio. For additional information on the bond, see the Climate Resilience chapter. The Water Resilience Portfolio and the Budget build on several Administration-sponsored initiatives already underway. SAFE DRINKING WATER To support access to clean and safe drinking water for all Californians, the Administration and Legislature partnered to establish an ongoing, stable funding source to help enable delivery of safe and affordable drinking water. The Safe and Affordable Drinking Water Fund (SB 200) provides up to $130 million annually until 2030 to address the drinking water crisis. The State Water Resources Control Board (Water Board) is developing a plan to deploy this ongoing funding in a way that complements and leverages existing work using federal State Revolving Fund dollars and one-time bond funds. During this first year of implementation, most of the funding will be used to address immediate drinking water GOVERNOR'S BUDGET SUMMARY — 2020-21 187 INFRASTRUCTURE Version number CQ2DDvMG2BB5g7vg and public health needs, while planning gets underway for long-term solutions in hundreds of communities around the state. VOLUNTARY AGREEMENTS The Administration is also working with a broad range of water agencies and environmental conservation groups to develop voluntary agreements to implement the Water Board’s Bay-Delta Water Quality Control Plan. The Water Board is required to update this plan to protect fish and wildlife, water quality, and other beneficial uses of water in the Delta and its key watersheds. Successful voluntary agreements hold the promise to adaptively manage enhanced flows and habitat to improve conditions for fish and wildlife. These agreements must undergo scientific peer review and environmental review under the California Environmental Quality Act. Voluntary agreements reflect a collaborative approach to water resources management and native fish and wildlife protection. DELTA CONVEYANCE California’s main system of water conveyance, which moves a large portion of the state’s surface water supply, continues to be under threat from flood, subsidence, earthquake, and climate change. The state-led water system that captures precipitation from the Sierra Nevada mountains and the Sacramento and San Joaquin rivers to provide drinking water to 27 million Californians faces major vulnerabilities as it travels through the Sacramento-San Joaquin Delta. Most notably, the United States Geological Survey indicates there is a 66 percent probability in the next 30 years that a major northern California earthquake will occur that can disable the current levee-supported conveyance infrastructure in the Delta, threatening the drinking water for more than half of all Californians. Besides protecting statewide water supplies, modernized Delta conveyance for these water projects will facilitate water transfers and groundwater recharge in overdrawn basins. The Administration is advancing a single-tunnel conveyance project under the Delta to protect this statewide source from levee collapse caused by a flood or earthquake and saltwater intrusion as sea levels rise. This project will be funded by water agencies that will benefit from improved supply reliability. The project is undergoing environmental review and includes significant public engagement to design a project to limit Delta impacts and provide local benefits. 188 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg INFRASTRUCTURE SUSTAINABLE GROUNDWATER MANAGEMENT ACT Agricultural water demand will likely continue to outpace available water supplies into the future. Simply put, California agricultural production is being shaped by limits on available water supply. The amount of groundwater available for use will be determined by the annual sustainable yield that each groundwater basin can provide under the Sustainable Groundwater Management Act (SGMA), and will be lower than historical pumping levels that have depleted aquifers. The Administration is focused on supporting local communities' transition to sustainable groundwater use by aligning state investments and policies to enable implementation of SGMA, including: (1) reviewing Groundwater Sustainability Plans submitted in January 2020 and 2022 and assuring basin-wide alignment across the state’s 260 new groundwater sustainability agencies, (2) maximizing groundwater recharge and groundwater banking by streamlining regulations to quickly allow for recharge during periods of extended high flows, including on agricultural land, and (3) supporting flexibility for groundwater sustainability agencies to trade water within basins by enabling and incentivizing transactional approaches, including groundwater markets, with rules that safeguard natural resources, small farmers, and disadvantaged communities. In addition to the $395 million proposed in the climate resilience bond for projects to implement Groundwater Sustainability Plans, the Budget proposes $60 million General Fund to support local implementation of SGMA. For additional information, see the Climate Resilience chapter. ENERGY One of the most important tasks the state faces is to build a clean energy future that provides safe, reliable, and affordable energy, while meeting the state’s climate goals. Utility investments to modernize the state’s electric transmission and distribution infrastructure will create a system that is resilient to wildfires and other risks, and supports future electricity generation and demand to meet the needs of all Californians. Resiliency investments include grid hardening and vegetation management, as well as grid segmentation and development of alternative power supply to better serve vulnerable areas. Investments in the energy sector will also drive the state’s progress toward transportation electrification. This includes fueling infrastructure as well as clean power procurement to support the growing fleet of electric cars and trucks. GOVERNOR'S BUDGET SUMMARY — 2020-21 189 INFRASTRUCTURE Version number CQ2DDvMG2BB5g7vg The state will continue to support initiatives that accelerate carbon reduction in the energy sector while reliably powering California’s economy. In addition to increasing clean energy generation, this includes: • Continued implementation of integrated resource planning; • Progress in energy efficiency and storage technology; • Further adoption of smart grid technology to automate and optimize the grid; • Facilitating dynamic pricing; • Demand response programs; • Distributed generation; and • Greater regional coordination. These measures will play important roles in creating a strong foundation for California’s energy future. In July 2019, California enacted Chapter 79, Statutes of 2019 (AB 1054), and Chapter 81, Statutes of 2019 (AB 111), to protect consumer access to safe, reliable, and affordable power by providing a durable solution to the problems arising from utility-caused wildfires in California. It established a new Wildfire Safety Division, initially within the California Public Utilities Commission to provide specific expertise to oversee utility wildfire mitigation efforts and expenditures. Effective July 1, 2021, the division will be transferred to the Office of Energy Infrastructure Safety within the Natural Resources Agency. This legislation also established a wildfire fund supported in part with shareholder contributions to provide insurance for wildfire liabilities and to protect consumers’ access to safe, reliable, and affordable power. The Budget includes $30 million to implement these measures and regulatory efforts to prevent and mitigate utility-caused wildfires. The Budget reflects necessary support for the Administration's efforts to achieve the required transformation of Pacific Gas & Electric as an investor-owned utility within the bankruptcy process. However, if protecting Californians' interests and ensuring the necessary transformation requires further intervention, including a state takeover of the utility, the Administration will work with the Legislature to secure necessary statutory changes, appropriations to support transactional and planning costs, and liquidity measures. Consistent with the Administration's commitment to maintain a balanced budget and strong fiscal resiliency, any such action would be carefully structured to safeguard the state's General Fund. 190 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg INFRASTRUCTURE NATURAL AND WORKING LANDS Carbon sequestration will have a central role in the state’s long-term strategy to achieve carbon neutrality by 2045. This strategy requires California to enhance the state's natural and working lands by promoting these areas as carbon sinks rather than emission sources. In addition to carbon sequestration benefits, enhancing natural and working lands will strengthen the health and productivity of the state’s agriculture sector, help keep air and water clean, and reduce risks to people and nature from climate impacts such as flooding, extreme heat, and catastrophic wildfires. As a result, investing in natural and working lands is a critical ingredient for economic growth, public safety, and climate resiliency. Building on ongoing investments from the Cap and Trade program, the Budget includes investments in natural and working lands through the proposed climate resilience bond, which would invest $4.75 billion specifically for natural and built infrastructure intended to reduce climate risks across the state. The bond is structured around climate risks, and natural and working land investments are woven through all of the risk categories. Investment into natural and working lands prioritizes projects that serve the dual purpose of reducing risks from physical climate impacts, and increasing the potential of our lands to serve as carbon sinks. For additional information, see the Climate Resilience chapter. EDUCATION The state's education system is a critical part of the state's infrastructure from cradle to career. These facilities provide the setting where the state's workforce is trained and the state's future prosperity is ultimately determined. The Budget includes investments in early learning and care, modernized and resilient K-12 facilities and the state's higher education system. It is critical that investments are made in the state's educational facilities to improve the climate resilience of these critical assets. EARLY LEARNING The state has made significant investments in the development of kindergarten facilities with the goal of moving more programs from part-day to full-day to improve educational outcomes for children and to better accommodate working parents. The 2018 and 2019 Budget Acts included a total of $400 million one-time General Fund for eligible school districts to construct new, or retrofit existing, facilities for full-day kindergarten programs. Of this amount, roughly $300 million remains available to support the goal of converting existing part-day kindergarten programs to full-day GOVERNOR'S BUDGET SUMMARY — 2020-21 191 INFRASTRUCTURE Version number CQ2DDvMG2BB5g7vg programs. As referenced in the K-12 Education chapter, the Budget proposes dedicating a portion of these funds to support the construction of preschool facilities that will be used to expand access to preschool programs that will serve additional students. As referenced in the Early Childhood chapter, the Budget includes $75 million Proposition 98 General Fund for preschool facilities that provide inclusive early education. Additionally, the 2018 and 2019 Budget Acts allocated $177 million to support the program, which provides funding to local educational agencies to construct or modify preschool facilities to serve students with exceptional needs or severe disabilities. Further, as referenced in the Early Childhood chapter, if the Public Preschool, K-12, and College Health and Safety Bond Act of 2020 is approved by voters in March, the Administration will propose statute authorizing the State Allocation Board to provide a new construction or modernization per-pupil grant enhancement to local educational agencies proposing to construct or modernize facilities to expand preschool programs on school campuses. Participants would be required to use the applicable facility to expand the number of preschool students served by the local educational agency consistent with current preschool staffing standards. K-12 EDUCATION STATE SCHOOL FACILITY PROGRAM Since 1998, California voters have approved more than $42 billion in statewide General Obligation bonds to construct or renovate public school classrooms used by the state’s approximately six million K‑12 students. The Budget Act includes $2.3 billion General Fund to support the debt service costs associated with these bonds. In addition to state General Obligation bonds, school districts may use developer fees, local General Obligation bonds, and Mello-Roos bonds to construct additional classrooms or renovate existing classrooms. Since 2002, local voters have approved over $114 billion in local General Obligation bonds to support their school facility needs. The Kindergarten through Community College Public Education Facilities Bond Act of 2016 (Proposition 51)—approved by voters in November 2016—authorized $7 billion in state General Obligation bonds to support K-12 school facilities construction. These funds support new construction, modernization, retrofitting, career technical education, and charter school facility projects. The Budget continues to allocate $1.5 billion Proposition 51 bond funds to support school construction projects, which is more than double the amount allocated in fiscal year 2018-19. 192 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg INFRASTRUCTURE Recognizing that the number of applications received by the State Allocation Board exceed available voter approved new construction and modernization bond funding, Chapter 530, Statutes of 2019 (AB 48) places a $15 billion General Obligation bond—the Public Preschool, K-12, and College Health and Safety Bond Act (Act) of 2020—on the March 3, 2020 ballot for consideration by the voters. If approved, the Act would provide $9 billion to support K-12 facilities construction, of which: • $5.2 billion would support modernization projects, including $150 million to support lead in drinking water testing and remediation. • $2.8 billion would support new construction projects. • $500 million would support charter school construction projects. • $500 million would support career technical education projects. For more information, see the K-12 Education and Higher Education chapters. SCHOOL FACILITIES PROGRAM REVISIONS If the Act is approved by voters, AB 48 makes key changes to the School Facilities Program. AB 48’s programmatic reforms more equitably address the changing needs of K-12 school districts and charter schools, better promote energy efficiency, address lead in drinking water, and assist school districts affected by natural disasters. AB 48 also promotes the development of housing by bringing stability to developer fees until January 1, 2026. Specifically, the changes exempt multi-family housing developments within one-half mile from a major transit stop from level 1, 2, and 3 school developer fees and reduce school developer fees applicable to all other multi-family housing projects by 20 percent. The statutory changes also deem level 3 school developer fees inoperative until January 1, 2028. The statutory changes also increase local capacity to make needed school facility improvements by increasing local bonding capacity. In addition, AB 48 requires increased facility planning for school districts participating in the School Facilities Program. HIGHER EDUCATION Each year, millions of Californians pursue postsecondary degrees and certificates, enroll in courses, or participate in other kinds of education and training. The three public segments that support these educational opportunities include the University of California (UC), the California State University (CSU), and the California Community Colleges (CCCs). GOVERNOR'S BUDGET SUMMARY — 2020-21 193 INFRASTRUCTURE Version number CQ2DDvMG2BB5g7vg UNIVERSITY OF CALIFORNIA AND CALIFORNIA STATE UNIVERSITY The UC and CSU currently fund capital projects from within their annual support budget. This provides the universities with the flexibility to factor infrastructure development costs and priorities within their comprehensive fiscal plans. In accordance with statute, both the UC and the CSU submit annual capital outlay proposals for legislative review and Department of Finance approval. The CSU submitted capital proposals totaling $2.6 billion ($2.4 billion Statewide Revenue Bonds and $190 million campus funds). CSU continues to prioritize and refine this project list. The UC submitted capital proposals totaling $562.2 million ($551.4 million General Fund-supported financing and $10.8 million non-state resources). Final approved project lists for both CSU and UC will be submitted to the Legislature in April 2020. If approved, the Preschool, K-12, and College Health and Safety Bond Act (Act) of 2020 would allocate $2 billion in state General Obligation bonds to support UC and Hastings College of the Law facilities projects, and $2 billion in state General Obligation bonds to support CSU facilities projects. If the Act is approved, AB 48 requires the Regents of the UC and the Board of Trustees of the CSU to adopt five-year campus housing plans that reflect specified affordable student housing information and goals. AB 48 also requires the Regents and Trustees to consider several key inputs, including a campus’s affordable student housing plan, when determining whether to request state funding for a project. CALIFORNIA COMMUNITY COLLEGES In 2016, voters approved approximately $2 billion in state General Obligation bonds to support the improvement and construction of community college facilities. Recently, CCCs have reported $23 billion of capital needs over the next five years. The state’s CCC facilities investments should focus on the most critical of the CCC's reported capital needs and toward projects that have appropriate local matching resources. The Budget provides $27.6 million for the CCCs to support 24 new capital outlay projects. Construction funding for continuing projects will be considered consistent with project schedule. Additionally, the Budget includes $17.3 million one-time General Fund for CCCs to address deferred maintenance. If approved, the Preschool, K-12, and College Health and Safety Bond Act (Act) of 2020 would allocate $2 billion in state General Obligation bonds to support CCC projects. 194 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg INFRASTRUCTURE BROADBAND FOR ALL California has led a technological revolution defined by an unprecedented level of interconnectedness between communities and economies around the world. Nevertheless, many communities in California still lack access to affordable high-speed Internet: more than 675,000 households are not served by minimum thresholds of quality broadband. These connectivity gaps primarily affect rural communities, low-income communities, and communities of color, exacerbating existing inequities across California communities. For working families, this can mean an inability to complete school homework, access medical treatment, search for jobs or telecommute, and engage in other essential aspects of daily life. For businesses, this means substantial—sometimes insurmountable—hurdles to taking advantage of emerging economic opportunities and building dynamic regional economies. The state’s Broadband for all strategy is composed of four principal elements: mapping the state of connectivity; investing new resources; optimizing use of existing resources; and coordinating government entities to prioritize connectivity across policies. MAPPING THE STATE OF CONNECTIVITY To understand the scope and nature of the challenge, the state of connectivity—whether, where, and at what speed Californians have access to affordable high-speed Internet—will be mapped. This mapping will employ a geographic information system (GIS)-based analysis using the following four available data sources: • Census tract-level data of households without broadband access; • Existing public and private broadband network infrastructure; • GIS data on state-owned infrastructure and rights of way; and • The costs of various middle- and last-mile hardware components. The CPUC, which has led similar projects in the past, is well positioned to lead the effort to map the state's connectivity. GOVERNOR'S BUDGET SUMMARY — 2020-21 195 INFRASTRUCTURE Version number CQ2DDvMG2BB5g7vg INVESTING NEW RESOURCES: BROADBAND IN EDUCATION The state-sponsored K-12 High Speed Network provides local educational agencies with broadband network connectivity and Internet services, as well as videoconferencing coordination and support. The K-12 High-Speed Network also administers the Broadband Infrastructure Improvement Grant Program, which has a funding allocation of $51.4 million Proposition 98 General Fund, to improve local educational agency broadband connectivity to ensure schools can administer computer-based assessments. These efforts expand support for learning opportunities in the classroom and allow for more opportunities to expose students to computer science courses. The California Community College's (CCC's) Integrated Technology Categorical Program annually provides $41.9 million Proposition 98 General Fund to support systemwide technology capabilities, such as systemwide broadband connectivity services, data security services, and access to statewide multimedia hosting and delivery services for colleges and districts. In total, the state expects to provide $260.9 million over the next five years for broadband infrastructure improvements and systemwide technology investments. Of this amount, $51.4 million is allocated for K-12 purposes, and $209.5 million for CCC purposes. OPTIMIZING USE OF EXISTING RESOURCES Informed by GIS-based mapping, the state will review existing fund sources available for broadband adoption and activities. This review will include the California Teleconnect Fund, the California Advanced Services Fund, and federal funding opportunities to maximize the return on existing investments. In total, these funds provide approximately $900 million over the next five years that can be targeted to critical broadband activities statewide. PRIORITIZING CONNECTIVITY ACROSS POLICIES In addition to targeting resources to expand connectivity, the state will coordinate government entities to prioritize high-speed Internet across policies. For example, state projects that do not directly concern—but intersect with—broadband infrastructure could nonetheless be tailored to supplement and support the infrastructure. Greater coordination will unlock efficiencies across state priorities. The California Department of Technology, which leads the California Broadband Council, will help to coordinate interagency action and convene stakeholders. 196 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg INFRASTRUCTURE OTHER CRITICAL STATE INFRASTRUCTURE The Plan also includes investments in capital assets that support core state functions, including state office buildings, fire protection facilities, state parks, correctional facilities, and courts, among others. STATE OFFICE BUILDING PROGRAM The Department of General Services (DGS) manages approximately 35.1 million square feet of space that supports a variety of state programs and functions. The Budget includes $721.7 million lease revenue bond financing for the continuation of the Gregory Bateson Building Renovation ($183.6 million), the Jesse Unruh Building Renovation ($116.8 million), and the Resources Building Renovation projects ($421.3 million). These projects represent a continuation of the DGS Ten-Year Sequencing Plan, which provides a strategy for the renovation or replacement of state office buildings in the Sacramento region. CALIFORNIA DEPARTMENT OF FORESTRY AND FIRE PROTECTION The California Department of Forestry and Fire Protection operates more than 530 facilities statewide, including 234 fire stations, 112 telecommunications facilities, 39 conservation camps, 21 unit headquarters, 16 administrative headquarters, 12 air attack bases, 10 helitack bases, 8 state forests, 1 forestry nursery, 3 training academies, and various other facilities. These facilities support fire protection, the Office of the State Fire Marshal, and resource management efforts for more than 31 million acres of state-owned and private wildlands. The Budget includes $65.6 million ($41 million General Fund and $24.6 million lease revenue bond financing) for facility replacements, relocations, remodels, and funds to initiate the construction of barracks at three air attack bases to support the C-130 aircraft program. DEPARTMENT OF PARKS AND RECREATION The Department of Parks and Recreation consists of 280 parks, beaches, trails, wildlife areas, open spaces, off-highway vehicle areas, and historic sites totaling approximately 1.6 million acres of land. The Budget includes $20 million General Fund for a conservation acquisition that would create a new state park and would immediately provide public open space and GOVERNOR'S BUDGET SUMMARY — 2020-21 197 INFRASTRUCTURE Version number CQ2DDvMG2BB5g7vg protect a unique ecosystem from private development. The vision for the park would include programs supporting equitable access. The Plan also includes $24 million General Obligation bonds for improving facilities, enhancing access in existing parks, and for opportunity acquisitions. For more information, see the Natural Resources chapter. DEPARTMENT OF CORRECTIONS AND REHABILITATION The Department of Corrections and Rehabilitation (CDCR) maintains 37 youth and adult correctional facilities and 44 youth and adult camps. The Budget reflects the transfer of the youth facilities to the Health and Human Services Agency effective July 1, 2020. CDCR's aging infrastructure and changing population drive significant infrastructure needs. The Budget includes $182.8 million ($91.7 million General Fund and $91 million lease revenue bond financing) for projects that address a variety of infrastructure needs to support CDCR's programs. ROOF REPLACEMENT PROJECTS Failing prison roofs have resulted in damage to electrical systems and housing units, and interruptions in rehabilitation programs, education programs, and mental health treatment. The Budget includes $78.2 million General Fund over two years for roof replacement projects, including design funding, at Pelican Bay State Prison and California State Prison, Sacramento. This is part of a broad, multi-year plan to replace aging and deteriorating roofs across the state prison system. To date, ten institutions have received one-time funding for major roof replacement and repair projects. With funding for these 2 prisons, 15 remaining institutions are scheduled for future roof replacement and repair projects over the next 6 years. HEALTH CARE FACILITY REPAIRS AT THE CALIFORNIA REHABILITATION CENTER The Health Care Facility Improvement Program was implemented in 2012 to improve treatment and clinic space to provide an effective heath care delivery system at 31 adult institutions, but did not include the California Rehabilitation Center. The existing health care treatment areas there are in buildings that are 75 years old, do not have adequate storage, restrict workflow, and make it difficult to maintain inmate-patient privacy. To address this, the Budget includes $5.9 million one-time General Fund to replace damaged flooring, walls, wall-mounted air conditioning units, counters, and 198 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg INFRASTRUCTURE storage spaces in existing health care treatment areas. This project will also replace existing medication distribution windows with newer windows that are consistent with current standards and will allow for improved medication distribution. The California Rehabilitation Center is one of the older facilities in the state prison system. These upgrades are necessary to maintain this facility, which is better situated than other facilities to recruit staff, including medical professionals. SUICIDE PREVENTION INTAKE CELL RETROFITS In response to federal class action lawsuits, CDCR continues to invest in efforts to improve the safety of its facilities, particularly for inmates experiencing mental health crises. Since 2006, CDCR has retrofitted 473 intake cells to be suicide resistant, which includes modifying cell doors and installing ligature-resistant fixtures. However, there are an insufficient number of suicide-resistant cells available to accommodate the number of Administration Segregation Unit admissions. The Budget includes $3.8 million one-time General Fund to retrofit 64 additional intake cells across the state to provide a safer environment for inmates entering segregated housing. JUDICIAL BRANCH The Judicial Branch consists of the Supreme Court, courts of appeal, trial courts, and the Judicial Council. The Supreme Court is located in San Francisco and Los Angeles. The courts of appeal are organized into six districts and operate in nine different locations. The trial courts are located in 58 counties statewide, in approximately 450 facilities, and 2,100 courtrooms of approximately 16 million square feet of usable area and more than 21 million square feet of space under Judicial Council responsibility and management. The facilities of the Supreme Court, courts of appeal, and trial courts encompass not only the public courtroom spaces but also the chambers and workspaces where judicial officers and courtroom staff prepare for proceedings; secure areas, including holding cells; and building support functions. REASSESSMENT OF TRIAL COURT CAPITAL OUTLAY PROJECTS Chapter 45, Statutes of 2018 (SB 847) required the Judicial Council to conduct a reassessment of every trial court facility within the state and report the assessment results back to the Legislature by December 31, 2019. The Judicial Council released the results of the reassessment on December 6, 2019. The Judicial Council approved the Reassessment of Trial Court capital outlay projects based on a prioritized needs-based and cost-based list. Overall, there are 80 projects identified through the reassessment that include both new construction and renovation GOVERNOR'S BUDGET SUMMARY — 2020-21 199 INFRASTRUCTURE Version number CQ2DDvMG2BB5g7vg projects in 41 of the 58 trial courts. The total cost of all 80 projects is estimated at $13.2 billion. The Plan includes $2 billion for court projects, assuming approximately five projects will be initiated each year for the next five years. The Administration anticipates proposing the first of the projects this spring, focusing on the most critical projects identified in the reassessment. MAINTAINING EXISTING INFRASTRUCTURE Historically, due to budget reductions and other fiscal challenges, the state has not consistently funded either the cost of maintaining its new capital investments or the deferred maintenance on existing infrastructure. For example, although billions of dollars have been spent over the past decade to build state facilities, less attention has been paid to the availability of permanent funds to maintain these facilities. Deferred maintenance is maintenance that has not been completed to keep state-owned facilities in an acceptable and operable condition, and that is intended to maintain or extend their useful life. Actions such as replacing old equipment, repainting, reroofing, repairing wiring and plumbing, dredging river or stream beds to restore original flow capacity, and repairing roads are all examples of maintenance. In contrast, capital outlay is the creation of new buildings, additions to and modifications of existing buildings, and includes projects that generally expand the capacity or change the function of state-owned properties. At present, the reported statewide deferred maintenance need totals approximately $62 billion, as shown in the Identified Statewide Deferred Maintenance figure. Transportation currently represents the area of the state with the highest level of deferred maintenance. Much of the state highway system was built between the 1950s and early 1970s to serve a growing economy and population. The state’s population has continued to grow significantly in recent decades, resulting in a corresponding increase in vehicle miles traveled and placing additional pressure on an aging state highway system. Similarly, increased international trade, coupled with the country’s dependence on the state’s port system, has led to a substantial increase in trucking. As cars became more fuel efficient, revenues from excise taxes did not keep pace with the state’s increasing need for highway maintenance and repairs. Chapter 5, Statutes of 2017 (SB 1), the Road Repair and Accountability Act of 2017, was signed into law to address deteriorating road conditions by increasing funding to repair 200 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg INFRASTRUCTURE the roadways, both on and off the State Highway System as well as addressing congestion, improving trade corridors, and promoting active transportation. SB 1 provides an average of nearly $2 billion in additional annual funding for the maintenance and repair of the State Highway System. This funding is being targeted toward pavement, bridge, and culvert repair while allowing the state to maintain current funding levels for safety, emergency, and other transportation elements. The state has made progress in the last several years in reducing deferred maintenance across state government and will make more in the coming years with SB 1 investments in the state's roads and other bond investments. GOVERNOR'S BUDGET SUMMARY — 2020-21 201 INFRASTRUCTURE Version number CQ2DDvMG2BB5g7vg DEBT FINANCING The state has long used debt financing as a tool for infrastructure investment, similar to the private sector. When the state borrows to pay for infrastructure, roughly one out of every two dollars spent on infrastructure investments pays interest costs, rather than construction costs. The amount of funds required to service the debt has increased steadily over past years. Budget challenges in the early 2000s resulted in a greater reliance on debt financing, rather than pay-as-you-go spending. From 1974 to 1999, California voters authorized $38.4 billion of General Obligation bonds. From 2000 to 2010, voters expanded the types of programs funded by bonds and authorized approximately $111.9 billion of General Obligation bonds. Of all previously approved bonds, debt obligations of $71.7 billion in General Obligation bonds and $8.6 billion in lease revenue bonds remain outstanding. Additionally, as of December 1, 2019, there are $32.7 billion of General Obligation and $7.2 billion of lease revenue bonds that are authorized but not yet issued. The bonds will be issued when projects are approved and ready for construction. Additional information related to General Obligation and lease revenue bond issues can be found on the Department of Finance's website. As shown in the Debt Service on General Obligation and Lease Revenue Bonds figure, debt service on infrastructure bonds is expected to increase to $8.5 billion by 2023-24, assuming only limited new lease revenue bonds are authorized. The debt service ratio is a measure of relative indebtedness. It expresses the state’s debt service level as a percentage of its General Fund revenues. The debt service ratio is projected to decline slightly through 2022-23—mainly because of higher projected 202 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg INFRASTRUCTURE revenues—to 3.57 percent, based on currently-authorized General Fund-supported General Obligation and lease revenue bond debt. Both the bond market and bond rating agencies consider a number of factors when evaluating a state’s debt position. Two measures commonly used to determine a state’s debt position are debt as a percent of state personal income and debt per capita. The ratio of a state’s debt to personal income is a reflection of the state’s debt compared to the state’s wealth. According to the 2019 State Debt Medians Report by Moody’s Investors Service, California’s total outstanding debt as a percentage of personal income is 3.7 percent. Although this is well above the national average of 2.8 percent (only two of the ten most populous states—New York and Illinois—have more debt as a percentage of personal income), it is a significant decrease from the total of 5.8 percent reported in 2013 (see the Comparison of State's Debt Ratio to Other States figure). Debt per capita measures each state resident’s share of the total debt outstanding. Last year, California’s per capita debt was estimated to be $2,194, well above the national average of $1,493 as reported by Moody's (see the Comparison of State's Debt Per Capita to Other States figure). California was eleventh among the states in 2019 in terms of overall debt per capita, and only two of the ten most populous states—New York and Illinois—had higher debt per capita. Similar to the debt as a percent of state personal income, the debt per capita has decreased from the total of $2,565 reported in 2013, while the national average rose slightly over the same period. GOVERNOR'S BUDGET SUMMARY — 2020-21 203 INFRA SIRUC Comparison of State's Debt Per Copi?ra to Other Sio?res State Debt Per Cagita 2013 2014 2015 2016 2017 2018 2019 National Average $1.416 $1.436 $1.419 $1.431 $1.4?3 $1.493 California $2.535 $2.455 $2.437 $2.323 $2.217 $2.183 32.194 (50 state rank] (th (em) (9th} [9th] {91h} (em) [11th] New York $3.174 $3.234 $3.392 $3.021 $3.3?3 $3.032 $3.247 Illinois $2.523 $2.530 $2.331 $2.522 $2.511 $2.919 $2.752 Florida $1.337 $1.333 $973 $1.033 $931 $339 $312 $1.203 $1.172 $1.11? $1.1?2 $1.33? $1.311 Georgia $1.351 $1.034 $1.343 $1.029 $992 $933 $993 Ohio $1.34? $1.337 $1.139 $1.091 $1.337 $1.113 $1.153 North Carolina $353 $333 $739 $721 $359 $311 $531 Texas $530 $514 $436 $333 $333 $413 $339 Michigan $300 $735 $753 $719 $339 $513 $330 Source: Moody?s Investor Service 2019 Stale Debt Medians Reports. 204 2020-21 Version number CQ2DDvMG2BB5g7vg DEMOGRAPHIC INFORMATION DEMOGRAPHIC INFORMATION T he 2020 U.S. Census will provide a benchmark for a California in transition. The state's population growth slowed to 0.35 percent in fiscal year 2018-19, due to fewer births, increasing deaths, and lower net migration. Slower growth is projected to continue for the state, with a total population of 45 million by 2060. 2020 U.S. CENSUS The U.S. Constitution requires that a decennial census be conducted, with the next enumeration on April 1, 2020. These counts are used to reapportion Congress. In accordance with federal law, they are not subject to adjustment for any census undercount. The federal government also uses census data as a base for many of its data collection efforts. The state uses the decennial census data along with birth, death and migration data to produce state population numbers that are used by other governmental and research agencies for resource allocation and to produce other statistics describing the state. A complete and accurate count is essential to ensuring resources are allocated fairly. Some groups that have historically been undercounted are renters, foreign-born residents, non-white residents, and those under five years old, especially those less than one year old. To mitigate this risk, California has allocated $187.2 million to assist the U.S. Census Bureau in accurately counting the state’s population. The state is conducting an extensive outreach program with statewide media campaigns and neighborhood level programs to encourage Californians to participate in the census. GOVERNOR'S BUDGET SUMMARY — 2020-21 205 DEMOGRAPHIC INFORMATION Version number CQ2DDvMG2BB5g7vg DEMOGRAPHIC OUTLOOK California’s population was estimated at 39.96 million as of July 1, 2019, up 0.35 percent over July 1, 2018. The state’s annualized average rate of growth since 2010 of 0.76 percent, although lower than in preceding decades, is comparable to the national growth rate during the same period, and more than three times the European Union’s population growth rate of 0.2 percent. Regionally, inland counties continue to have the highest population growth rates, continuing a trend started in 2016. Most of the urban coastal counties have grown at a much slower pace and some have lost population. The smaller rural counties have lost population or grown very little with the exception of the counties surrounding Butte County due to the impact of the Camp Fire in 2018. The Camp Fire was the most destructive wildfire in California history and destroyed over 14,600 housing units, with a large number of people relocating to nearby counties. Since 1975, California’s population has grown from 21 million to almost 40 million—nearly doubling in 40 years. At its current rate of growth, the next doubling in population size would take around 200 years. People are having fewer children, correlated with changes in education, marriage, and work decisions. The state has also been experiencing lower net migration, with a sustained deficit in domestic net migration, and recent decreases in net foreign migration. Births have declined from almost 510,000 in 2010-11 to just over 450,000 in 2018-19. As a consequence, enrollment and average daily attendance at California public schools have declined since the 2013-14 academic year. Deaths have increased from under 240,000 in 2010-11 to over 270,000 in 2018-19, as the share of the population over age 65 has grown from 11.5 percent in 2010 to 15 percent in 2019. California continues to have positive international immigration, but both lower international migration and higher domestic out-migration led to a net outflow of almost 40,000 in 2019, marking the first time since 2010 that more people moved out of California than into the state. The state also experienced net outflows from 1993 to 1996 and from 2005 to 2010, offset by more births than deaths. (See figure on Components of Population Growth.) Recently updated population projections reflect decreased expectations for future population growth. The net annual population increase is expected to fall to less than 100,000 by 2045, and close to zero net growth by 2060. Fewer births lead to fewer adults, which compounds the slowing growth over time. The current projections series 206 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg DEMOGRAPHIC INFORMATION reach a total population of 45 million by 2060, rather than 50 million in the previous iteration. The total fertility rate is projected to decline gradually from its current level of 1.65 children per woman to 1.55 by 2030. With a changing age structure, this leads to around 445,000 births in 2030, declining to around 425,000 by 2060. This reduction in births will continue to impact school enrollment as birth cohorts get smaller. Slowing improvements in life expectancy at birth since 2010, mostly as a result of stalled mortality improvements at young adult ages, have translated to a projection of modest increases in life expectancy in the coming decades. California’s current life expectancy at birth is estimated at 81.5 years and is projected to increase to 82.0 years by 2025. Deaths will continue to increase from 340,000 in 2030 to 490,000 by 2060. After around 2040, there will be more deaths than births each year. The new projections assume the state reverts to net migration flows of around 100,000 per year in the long term, in line with the average during 2010 through 2019, but significantly lower than levels observed during the period before 2005. In a scenario with zero net migration, the state’s population peaks at 42 million in 2038 and thereafter declines to 40 million by 2060. Other advanced countries, such as Japan, have already GOVERNOR'S BUDGET SUMMARY — 2020-21 207 DEMOGRAPHIC INFORMATION Version number CQ2DDvMG2BB5g7vg begun losing population due to more deaths than births and historical patterns of low immigration. The age structure of the population is also projected to change. (See Figure of Population by Age Group.) In the past, California has been a relatively young state, with one of the lowest percentages of the population aged 65 and over. This is due to its disproportionate share of baby boomers, those born 1946 to 1964. However, now that this cohort is entering retirement, the ratio of Californians over 65 to those ages 20-64—called the Old Age Dependency Ratio (OADR)—is increasing from around 19 per 100 in 2010 to 35 per 100 in 2030. The United States population according to latest Census Bureau projections will see similar trends to the state: the national OADR is projected to increase from 22 per 100 in 2010 to 37 per 100 by 2030. HOUSING AND INCOME The official poverty rate for California in 2018 was 11.9 percent, down from a peak of 16.9 percent in 2011. This was the first time after the Great Recession that California poverty had fallen below pre-recessionary levels. 208 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg DEMOGRAPHIC INFORMATION A person is considered to be in poverty if they live in a household with an income below the official threshold for that household type. For example, the 2018 poverty threshold for a single adult was $12,784 and the threshold for a single parent with two children was $20,231. Improvements in the economy have affected different household types in different ways, and changes in poverty can differ by age group. For persons age 0 to 17 and age 18 to 64, poverty has been on a downward trend in California with poverty in 2018 for persons age 0 to 17 at 16.5 percent compared to 24.3 percent in 2011. For persons age 18 to 64, the poverty rate in 2018 was 10.6 percent compared to 15.6 percent in 2011. By contrast, the poverty rate for seniors has trended upwards since 2010—7.8 percent in 2010 compared to 10.5 percent in 2018. The figure on Poverty Rates by Age shows more detail. The record-low unemployment rates in California mean more people have work, but more demand for higher-skilled jobs can also affect participation rates. Labor force participation rates for those between 25 and 64 years old have declined by nearly 3 percent since 2000 for individuals with less than a bachelor’s degree (from 76 to 73 percent) and 2 percent for those with a college degree and higher (from 86 to 84 percent). Overall labor force participation among the 25-64 year old population has dropped approximately 1.5 percent as the number of those with a college degree have increased. In 2000, only 28 percent of Californians ages 25-64 had a bachelor’s GOVERNOR'S BUDGET SUMMARY — 2020-21 209 DEMOGRAPHIC INFORMATION Version number CQ2DDvMG2BB5g7vg degree or higher, by contrast, in 2018 more than 34 percent fell in that group. For 25-64 year olds, among those with less than a bachelor’s degree the poverty rate is 13.6 percent in contrast to those with a bachelor’s degree or higher, where the poverty rate is 4.5 percent. The income gains to degree completion are seen also in tenure where a majority of those in California that own their homes have a bachelor’s degree or better; likewise the majority of renters have less than a bachelor’s degree. In 2018, poverty rates ranged from 8.1 percent for the San Francisco metro area to 20.9 percent for the Fresno metro area. Poverty rates for five of the state’s major metropolitan areas and the remainder of the state have fallen since 2010. However, the thresholds are set nationally, and do not take into account regional differences in the cost of living. While overall rates of poverty are lower for most Californians in 2018, the housing shortfall continues to impact the overall ability of individuals to afford shelter. Among all Californians, 1 in 5 pay at least 50 percent of their income in housing costs. Among homeowners, this is as low as 13.4 percent. The young and old face the highest rent burdens with more than 30 percent of those 20 to 29 years old, and 39 percent of those over 65 paying more than 50 percent of their income for rent. For households earning below $50,000, 62 percent are renters, and of those renters 57 percent pay more than 50 percent for housing, up from 54 percent in 2010. The trend continues among households earning between $50,000 and $100,000, where those paying more than 50 percent for rent has increased from 3.9 percent in 2010 to 6.4 percent in 2018. The total housing stock in California consists of 9,186,000 single family housing units, 4,490,000 multi-family housing units and 560,000 mobile homes in 2019. Since the Great Recession, while housing growth has slowed overall, the state has also experienced increased multi-family housing growth not seen since the 1980’s. As population growth diverges from housing growth the number of individuals in each household increases. While the two growth rates can differ over time, the state has consistently built less housing than needed for population growth since 2011. When the actual growth in the adult (25+) population of California is compared to the number of housing units historically necessary to accommodate that population's growth from 2000 through 2018, the two lines diverge, with a gap of almost 550,000 housing units at the end of the series in 2018. This gap is seen in the figure Actual Adult Households vs. Historical Adult Housing Demand. 210 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg GOVERNOR'S BUDGET SUMMARY — 2020-21 DEMOGRAPHIC INFORMATION 211 Version number CQ2DDvMG2BB5g7vg ECONOMIC OUTLOOK ECONOMIC OUTLOOK T he current economic expansion that began in 2009 is the longest the United States has experienced. Unemployment rates for the U.S. and California are now at historic low rates of 3.5 percent and 3.9 percent, respectively, as of November 2019. Growth is assumed to continue at a slowing pace through 2023-24. Risks that might affect national and state growth include trade disputes, stock market volatility, and a global economic slowdown, among others. THE NATION—SLOWING GROWTH For the U.S., real GDP growth is expected to continue at around 2 percent through 2021 before gradually falling to around 1.5 percent in 2022 and 2023 due to increased pressure from tariffs, slowing global economic growth, slower investments and other risks. The federal deficit is now almost $1 trillion, limiting fiscal policy instruments in case of a potential downturn. Consumption will continue to be the main driver of economic growth as record low unemployment puts upward pressure on wages and consumer sentiment remains strong. (See figure on Contributions to U.S. Real GDP Growth.) The U.S. unemployment rate fell to 3.5 percent in September 2019 and has stayed at around that level through November 2019—its lowest rate since December 1969. Through the first eleven months of the year, the U.S. has added 180,000 nonfarm jobs per month, on average, compared to 223,000 jobs per month during the same period in 2018. Since December 2007, just prior to the start of the Great Recession through November 2019, the U.S. has added almost 14.0 million nonfarm jobs. While the GOVERNOR'S BUDGET SUMMARY — 2020-21 213 ECONOMIC OUTLOOK Version number CQ2DDvMG2BB5g7vg nation has surpassed job counts from prior to the recession, the sectoral composition has seen marked changes. Goods-producing industries, including mining and logging, construction, and manufacturing, currently have almost 900,000 fewer jobs than the pre-recession peak. In contrast, service sector jobs have grown by almost 14.5 million during the same period. While wholesale trade has declined by around 13,000 jobs and information has declined by over 200,000 jobs, all other sectors have surpassed their pre-recession levels. Educational and health services did not experience any job loss during the recession and have now gained over 5.5 million jobs from the pre-recession period. Other sectors that have seen significant job increases include leisure and hospitality, which added 3.3 million jobs, and professional and business services, which have added almost 3.5 million jobs. Continued GDP and labor force growth will result in a further decline of the unemployment rate to 3.4 percent by the second half of 2020, where it will remain for four consecutive quarters before gradually rising to above 4 percent by 2023. (See figure on U.S. and California Unemployment.) In November 2019, U.S. inflation was 2.1 percent and is expected to remain around 2 percent throughout the forecast period. Housing and energy prices are forecast 214 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg ECONOMIC OUTLOOK to contribute around 60 percent towards overall inflation in the country. (See Figure on Contributions to U.S. and California Inflation.) The Federal Reserve cut its benchmark rates by 25 basis points three consecutive times between July 2019 and October 2019, bringing the target range to between 1.50 percent and 1.75 percent. This is the first time that the Fed has cut interest rates since December 2008, when it lowered its benchmark setting to a range of 0.00 to 0.25 percent. December 2008 was the last cut in a series of downgrades that started in August 2007 when interest rates were over 5 percent. Lower interest rates can encourage increased business investment and consumer spending; however, as interest rates approach zero, there is limited room for further rate reductions. CALIFORNIA—CONSTRAINED GROWTH As with the rest of the nation, California’s unemployment rate has continued to fall, averaging 3.9 percent in November 2019. Generally, such low levels of unemployment correspond to higher nominal wage growth due to the impact of the tight labor market as employers seek to attract and retain productive workers. Real per capita personal income in California has increased from around $55,000 in 2007 to over $63,500 in 2018. GOVERNOR'S BUDGET SUMMARY — 2020-21 215 ECONOMIC OUTLOOK Version number CQ2DDvMG2BB5g7vg At the same time, real median household income, or the mid-point of household income, has barely changed in over ten years—$75,200 in 2007 and $75,500 in 2018. California is expected to continue to add payroll jobs through the forecast period, slowing to match labor force growth. (See figure on Selected Economic Indicators.) The forecast assumes a slight increase in payroll job growth in 2020 and 2021 as businesses 216 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg ECONOMIC OUTLOOK adjust to the new rules on independent contractors. The sectors that are projected to have the largest numbers of reclassifications include lower-wage service sectors including retail, education, hospitality, other services, wholesale trade and utilities, as well as transportation and warehousing. Since prior to the Great Recession, California has added almost 2.1 million nonfarm jobs. As with the rest of the nation, goods-producing industries now have almost 64,000 fewer jobs than during the pre-recession peak. The largest decline was in manufacturing as the state lost about 110,000 jobs. It is not expected that manufacturing will regain jobs to their pre-recession level during this forecast period. The financial activities sector also has around 21,000 fewer jobs than their pre-recession peak. In the same period of economic expansion, service sector jobs have added approximately 2.2 million jobs, primarily in professional and business services (around 470,000), education and health services (around 831,000), and leisure and hospitality (around 461,000). Whereas the rest of the nation lost jobs in information, the state has added about 82,000 jobs during the post-recession period. As the economy continues to grow at a modest but steady rate in a tight labor market, there will be an upward pressure on wages as employers look to attract and retain high-quality, productive workers. The forecast assumes real average wage gains accruing to lower-wage workers—a necessary condition to support consumption and for economic growth to continue. California personal income is projected to grow at around 4 percent per year through the forecast period. Although unemployment is expected to remain low, transfer receipts will continue to grow at around 6 percent due to increasing Social Security payments to larger numbers of retirees. Housing permits are assumed to increase gradually from current levels of around 115,000 to around 165,000 by 2023. (See figure on Number of Permits Issued per Year and Increase in Population.) In November 2019, the median sales price for an existing single family home in California reached almost $590,000—more than double the national median price of around $274,000. The continued slow growth in housing constrains job growth and is expected to remain the main driver of inflation in California. GOVERNOR'S BUDGET SUMMARY — 2020-21 217 ECONOMIC OUTLOOK Version number CQ2DDvMG2BB5g7vg RISKS ARE RISING Risks increased throughout 2019, with the additional waves of tariffs imposed between the U.S. and China in the second half of 2019, and due to further global economic slowdown. The three consecutive interest rate cuts by the Federal Reserve between July and October 2019 reflect this perception of increased risks and uncertainty, a significant policy shift from their December 2018 projection of three interest rates increases in 2019. While lower interest rates might have some positive impact on investment in the short run, low interest rates and federal deficits, which almost equal $1 trillion, leave little room for stabilization during times of downturn. Besides these recent developments, the risks of a U.S. recession, stock market volatility, global economic slowdown, and policy divergences with the federal government remain. In 2018, the U.S. imposed tariffs on imports from China amounting to a total annual trade value of $250 billion, or around half of all imports from China, which were met by equivalent retaliatory tariffs from China on $60 billion worth of U.S. exports to China. These actions precipitated further escalations on both sides. Through October 2019, California’s merchandise exports were 3.2 percent lower compared to the same period in 2018 at $144.5 billion and imports were 7 percent lower at $341 billion. There have been episodes of stock market volatility associated with statements on both sides, and 218 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg ECONOMIC OUTLOOK the uncertainty surrounding the escalation or resolution of trade talks can deter businesses from investment. The Standard & Poor's 500 index (S&P 500) reached new record highs above 3,200 in December 2019. However, stock market volatility remains a significant risk to the outlook. Even absent a full recession, a stock market correction would likely have significant impacts on California. In April 2019, the yield on the 10-year U.S. Treasury bond fell below the 3-month and 2-year U.S. Treasury bonds, before reverting back in the fourth quarter of 2019. Inversion of the yield curve generally means that the returns on long-term investments are perceived to be lower than for the short-term investments. It is also one of the most cited data points for recession worries, as yield curve inversions lasting two months or more have preceded nearly every recession in the post-World War II era, and contribute to increased uncertainty and decreased consumer and business confidence. GOVERNOR'S BUDGET SUMMARY — 2020-21 219 ECONOMIC OUTLOOK Version number CQ2DDvMG2BB5g7vg RECESSION SCENARIO While this economic forecast does not include a recession, the Department of Finance has modeled a recession scenario, which assumes that real wage gains do not occur and that businesses overestimate consumers’ purchasing power. The realization of the mismatch by businesses could lead to sudden readjustments and a subsequent slowdown, which will lead to a spiral of decreased demand, layoffs, and a generalized loss of business and consumer confidence. The scenario models the impacts of a fiscal year 2020-21 recession. The slowdown is assumed to be larger than the early 2000s recession but smaller than the 2009 recession. The unemployment rate would peak at 9.1 percent in the second quarter of 2021, compared to 6.9 percent and 12.3 percent for the 2001 and 2009 recessions, respectively. Nonfarm jobs would decrease by 5.5 percent, or by 990,000 jobs from peak to trough. This compares with a 8.3 percent or a 1.3 million jobs drop in the Great Recession. (See Figure on California Nonfarm Employment (Recession Scenario).) California personal income would decrease 3.4 percent from the second quarter of 2020 to the second quarter of 2021, versus a 0.9 percent and a 4.6 percent peak-to-trough decline for the 2001 and 2009 recessions, respectively. In the previous post-war recessions, the U.S. headline consumer price index year-over-year inflation rate generally remained above zero. However, in 2008-2009, inflation fell to a negative 1.6 percent in the third quarter of 2009 after peaking at 5.3 percent in the third quarter of 2008, a peak-to-trough decline of 6.9 percentage points. In the 2001 recession, inflation fell to 1.3 percent in the first half of 2002 after peaking at 3.4 percent in the first quarter of 2001, a peak-to-trough decline of 2.1 percentage points. Beyond these more immediate risks, California faces some longer-term risks due to the state’s divergence with federal policy and due to structural tensions. In particular, the state faces risk due to its housing shortage and aging population. 220 GOVERNOR'S BUDGET SUMMARY — 2020-21 ECONOMIC OUTLOOK California Nonfarm Employment (Recession Scenario) Yeor?ovenyeor Growth Governors Budget Forecast I Recession Scenario Shaded areas indicate US. recessions. Source: CA Employment Development Department, Labor Market Information Division; CA Departmeut of Finance. 2020-21 221 Version number CQ2DDvMG2BB5g7vg REVENUE ESTIMATES REVENUE ESTIMATES C alifornia’s economy and revenues are assumed to continue growing throughout the forecast, although risks are rising. The General Fund revenue forecast has improved relative to the 2019 Budget Act, reflecting strong corporate tax receipts, an upgraded wage forecast and a stock market that was stronger than expected. As a result, before accounting for transfers such as to the Rainy Day Fund, General Fund revenue is higher than the 2019 Budget Act projections by $5.8 billion from 2018-19 through 2020-21. About $1.8 billion of that increase reflects an update to anticipated reimbursements from the federal government for costs associated with wildfires in 2017 and 2018. The 2020-21 Governor's Budget General Fund Revenue Forecast figure compares the revenue forecasts, by source, in the 2019 Budget Act and the Governor’s Budget. Revenue, including transfers, is expected to be $146 billion in 2019-20 and $152 billion in 2020-21. The projected increase since the 2019 Budget Act is due largely to an improved outlook for corporation tax. The personal income tax forecast has been revised down, but that reduction is related to an assumed shift of proprietorship income from the personal income tax to the corporation tax. The sales tax forecast has not changed significantly. Over the next three fiscal years, personal income tax is down $1.5 billion, sales tax is up $129 million, and corporation tax is up almost $5 billion. Accruals of revenues to previous years for corporation tax, personal income tax, and sales tax reduce the 2018-19 beginning balance by $20 million. The revenue forecast for personal income tax is reduced, due largely to a reduction in proprietorship income. This decline is offset partially by an upgrade in the wage GOVERNOR'S BUDGET SUMMARY — 2020-21 223 REVENUE ESTIMATES Version number CQ2DDvMG2BB5g7vg forecast due to stronger wages in the first half of 2019 and somewhat improved wage forecast for 2020 and 2021, as well as by a strong stock market. Realized capital gains are expected to be higher for 2020 and 2021 than at the 2019 Budget Act due to the stock market strength in October and November of 2019. The sales tax forecast has changed very little, as an upgraded forecast for consumption was offset by a downgraded forecast for investment. The improved corporation tax forecast reflects very strong tax receipts. Based on the limited available data, this strength reflects, in part, a significant shift of proprietorship income from pass-through entities (such as S-corporations and limited liability companies) that are taxed by the personal income 224 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg REVENUE ESTIMATES tax to C-corporations taxed by the corporation tax. Changes in federal tax law adopted in 2017 have changed incentives for some businesses, particularly large businesses, so that some businesses may switch to C-corporation status. The Capital Gains Revenue figure shows revenue from capital gains as a percentage of total General Fund tax revenue. As seen from this figure, the amount of capital gains revenue in the General Fund can vary greatly from year-to-year. For instance, in 2007, capital gains contributed $10.9 billion to the General Fund. By 2009, the contribution from capital gains had dropped to $2.3 billion. For 2019, capital gains are forecast to contribute $15.3 billion to General Fund revenue—the highest amount ever. The Capital Gains Realizations figure shows capital gains reported on California tax returns from 1970 through projections for 2021. Although the level of capital gains has grown significantly since 1970 (along with the economy and total personal income tax revenue), capital gains volatility has been a constant. History shows that high levels of capital gains eventually drop off. Forecasting capital gains is difficult because capital gains realizations are heavily dependent upon stock market performance. This forecast projects the Standard & Poor's 500 (S&P 500) will be at 3,120 in the first quarter of 2020 and will grow slowly for the next several years. The stock market has outperformed the 2019 Budget Act forecast in the last part of 2019. Nonetheless, a market correction remains a significant downside risk to the forecast. The forecast includes a significant increase in realized capital gains for 2020 and especially 2021, but only limited improvement in 2022 and later years. GOVERNOR'S BUDGET SUMMARY — 2020-21 225 REVENUE ESTIMATES Version number CQ2DDvMG2BB5g7vg The highest-income Californians pay a large share of the state’s personal income tax. For the 2017 tax year, the top 1 percent of income earners paid over 47 percent of personal income taxes. This percentage has been greater than 40 percent in every year since 2004, except for 2009. The share of total adjusted gross income from the top 1 percent of income earners has increased from 13.8 percent in 1993 to 24 percent in 2017. This number has exceeded 20 percent also in every year since 2004, except for 2009. Consequently, changes in the income of a relatively small group of taxpayers can have a significant impact on state revenues. These two related phenomena—significant reliance of the General Fund on capital gains and on taxes paid by a small portion of the population—underscore the difficulty of forecasting personal income tax revenue. Proposition 2 helps address some of the state's revenue volatility by requiring the transfer of capital gains revenue that is greater than 8 percent of General Fund tax revenue to the Rainy Day Fund and to pay down state debts. The Rainy Day Fund can be drawn down only if the Governor declares a budget emergency and, even then, no more than 50 percent of the Fund can be drawn down in the first year. GENERAL FUND REVENUE The California State Revenue by Source figure shows how the breakdown of General Fund revenues by tax source has changed over time. In 1950-51, sales tax revenue made up over 50 percent of General Fund revenues while personal income tax 226 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg REVENUE ESTIMATES revenue made up just more than 11 percent. That relationship has changed dramatically over time, and, for 2020-21, personal income tax makes up 67.1 percent of all General Fund revenues. LONG-TERM FORECAST The Long-Term Revenue Forecast figure shows the forecast for the three largest General Fund revenues from 2018-19 through 2023-24. Total General Fund revenue from these sources is expected to grow from $138.8 billion in 2018-19 to $158.2 billion in 2023-24. The average year-over-year growth rate for this period is 2.6 percent. GOVERNOR'S BUDGET SUMMARY — 2020-21 227 REVENUE ESTIMATES Version number CQ2DDvMG2BB5g7vg The economic forecast reflects continued steady but slowing growth, with real GDP growth falling to 1.5 percent by 2023. PLANNING FOR THE NEXT RECESSION Economic growth is forecast to continue over the next few years, although the current expansion is the longest on record, having matched the length of the expansion during the 1990s by July 2019. As discussed in the Economic Outlook chapter, there are several risk factors that could either lead to a recession or cause a significant slowdown in revenue growth. A global economic slowdown or other external shocks, such as fallout from Brexit, or growing imbalances in certain economic sectors are all factors that threaten the continuation of economic growth. In addition, with high federal deficits and the federal funds interest rate below 2 percent, fiscal expansion and interest rate cuts may offer less leverage during a downturn. The homeownership rate fell from 60 percent before the last recession to 55 percent in 2018, leaving fewer Californians with home equity to cushion a recession. As more workers approach retirement age, layoffs may affect their ability to work and rebuild retirement savings. Since more Californians will have fewer reserves to deal with a downturn, it is likely that consumption, and thus sales tax revenue, would be more sensitive to a downturn than it was in the previous recession. Even in a moderate recession, revenue declines could be significant. The Recession Scenario Revenue figure shows a history of California’s three largest revenue sources—personal income tax, sales tax, and corporation tax—along with revenue projections for the budget forecast and for a scenario that assumes a one-year recession in 2020-21. Under this scenario, revenue losses result from a decline in wages of about $115 billion compared to the forecast (about 8 percent) and by a drop in capital gains realizations due to a 45-percent stock market correction. The shaded areas in this figure show the timing of the 2001 recession, the 2008-09 recession, and the 2020-21 recession scenario. While the actual revenue declines in the past two recessions were significant (as shown in this figure), tax law changes temporarily increased revenues to lessen the declines. Revenue losses in this recession forecast would total close to $50 billion (an average of $25 billion per year) for two years, continue with more years of revenue declines in the range of $15 to $20 billion, and lead to a permanently lower revenue base compared to the current forecast. 228 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg REVENUE ESTIMATES PERSONAL INCOME TAX The personal income tax is expected to generate $98.6 billion in 2018-19, $101.7 billion in 2019-20, and $102.9 billion in 2020-21. These figures reflect an increase of $295 million in 2018-19, and declines of $731 million in 2019-20 and $1 billion in 2020-21, relative to the 2019 Budget Act. The personal income tax is the state’s largest revenue source and is expected to comprise 67.1 percent of all General Fund revenues in 2020-21. Modeled closely on federal income tax law, California's personal income tax is imposed on net taxable income—gross income less exclusions and deductions. The tax rate structure is progressive over the income spectrum. Since the 2012 tax year, the marginal rates ranged from 1 percent to 12.3 percent, not including a 1-percent surcharge on taxable income above $1 million for the Mental Health Services tax. Proposition 30 created three additional income tax brackets beginning in 2012 with rates of 10.3 percent for taxable income above $500,000, 11.3 percent for taxable income above $600,000, and 12.3 percent for taxable income above $1 million, with the income thresholds indexed for inflation. Proposition 30 held these tax brackets in effect for seven years—tax years 2012 to 2018. Voters approved Proposition 55 in November 2016, extending the three additional tax brackets through tax year 2030. The largest income source for the personal income tax is wages and salaries. Although the year-over-year growth rate for wages tends to be less volatile than other income GOVERNOR'S BUDGET SUMMARY — 2020-21 229 REVENUE ESTIMATES Version number CQ2DDvMG2BB5g7vg sources, wages and salaries include some unpredictable types of compensation such as stock grants, restricted stock units, stock options, and bonus payments. In 2017, taxes attributable to wages and salaries accounted for nearly 58 percent of personal income tax revenues. A higher forecast for economic wage growth is expected to increase withholding receipts by about $1.3 billion through fiscal year 2020-21. Economic wage growth in 2019 was revised higher in 2019 from 4.8 to 5.2 percent. Due in large part to the expected reclassification of some employees from independent contractors to wage employees beginning in 2020, the forecasted growth for economic wages is increased from 4.5 percent to 5.9 percent in 2020. This increase is primarily a shift from proprietorship to wage income and therefore does not have a significant impact on the forecast. However, underlying wage growth prior to the shift is about 0.4 percentage point higher. Economic wage growth in 2021 was revised slightly higher from 3.7 percent to 3.9 percent. This forecast assumes that some pass-through entities have and will convert to C-corporations or new entities will be more likely to choose the C-corporation structure due to the federal tax law changes of 2017. While this change significantly decreases personal income tax receipts, it is largely offset by higher corporate tax receipts. As a result of this shift, the forecast significantly downgrades partnership income growth from positive 4.4 percent to negative 4.1 percent in 2019 and from positive 4.4 percent to negative 3.3 percent in 2020. CAPITAL GAINS Taxes attributable to capital gains made up 16.6 percent of personal income tax revenue in 2017, which is only 4.8 percentage points below the last cyclical peak in 2007 of 21.4 percent. Capital gains realizations in 2020 and 2021 were revised higher since the Budget Act forecast from $147 billion to $151 billion, and from $139 billion to $147 billion, respectively, based on stronger-than-expected stock market performance. This forecast projects that the S&P 500 will be at 3,120 in the first quarter of 2020, and will grow annually at approximately 0.36 percent. The 2019 Budget Act had forecast the S&P 500 to be at 2,916 in the first quarter of 2020, and to grow at 0.5 percent per year. Capital gains decline from their peak levels in 2020 to reach 4.5 percent of personal income by 2023, one year later than assumed in the Budget Act. Due to the very slow growth expected from the stock market due to its current high valuation, year-over-year declines in capital gains realizations are expected for 2021, 2022, and 2023. 230 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg REVENUE ESTIMATES A portion of personal income tax revenue is deposited into a special fund instead of the General Fund. Proposition 63, passed in November 2004, imposes a surcharge of 1 percent on taxable income over $1 million. Revenue from the surcharge is transferred to the Mental Health Services Fund and used to fund mental health programs. Revenues of $2.4 billion are estimated for 2018-19. Annual revenues of $2.4 billion are projected for 2019-20 and 2020-21 as well. The General Fund and the Mental Health Services Fund shares of personal income tax revenues for 2018-19 through 2020-21 are shown in the Personal Income Tax Revenue figure. SALES AND USE TAX The sales and use tax (sales tax) generated General Fund revenue of $26.1 billion in 2018-19 and is expected to generate $27.2 billion in 2019-20 and $28.2 billion in 2020-21. Relative to the Budget Act, these figures reflect an increase of $28 million in 2018-19, a reduction of $56 million in 2019-20, and an increase of $157 million in 2020-21. Receipts from the sales tax, the state’s second largest revenue source, are expected to contribute 18.4 percent of all General Fund revenues in 2020-21. The sales tax is generally applied to the sale of merchandise, including vehicles, in the state. Sales tax revenues are forecast by relating taxable sales to consumption of goods and business investment. Forecasted levels of sales tax revenue are relatively similar to those of the Budget Act, with an upgraded forecast for consumer spending roughly offsetting a downgraded forecast for private investment. The modest increase in the forecast is due to higher cannabis sales and a slower-than-expected uptake of CalSavers Retirement Savings Program. Finally, the forecast continues to reflect the long-term trend of deterioration of the sales tax base. This deterioration is evidenced by taxable sales as a percentage of personal income declining from over 50 percent in the late 1970s to 28 percent today as shown in the Taxable Sales as a Percentage of Personal Income figure. GOVERNOR'S BUDGET SUMMARY — 2020-21 231 REVENUE ESTIMATES Version number CQ2DDvMG2BB5g7vg The State Sales Tax Revenue figure displays total sales tax revenues for the General Fund and various special funds for 2018-19 through 2020-21. The State and Local Sales Tax Rates figure displays the individual elements of the state and local sales tax rates. The Combined State and Local Sales and Use Tax Rates by County figure shows combined state and local tax rates for each county, including special rates for certain cities within those counties. 232 GOVERNOR'S BUDGET SUMMARY — 2020-21 REVENUE MATES State and Local Sales and Use Tax Rates (as of January 1, 2020) State Rates General Fund 3.94% Local Revenue Fund 2011 1.06% Local Revenue Fund 0.50% Local Uniform Rates? The permanent rate of 3.94% may be temporarily reduced by 0.25% if General Fund operating reserves exceed speci?ed levels. Revenues attributable to a rate of 1.0525 percent are dedicated to the Local Revenue Fund 2011 for realignment. Dedicated to local governments to fund health and social services programs transferred to counties as part of 1991 state?local realignment. Bradley-Bums 1.00% Transportation Rate 0.25% Local Public Safety Fund 0.50% Local Add-on Rates? Transactions and Use Taxes up to 2.00% Imposed by city and county ordinance for general purpose use.? Dedicated for county transportation purposes. Dedicated to cities and counties for public safety purposes by Proposition 1?2. May be levied in 0.125% or 0.25% increments up to a combined maximum of 2.00% in any county-? Any ordinance authorizing a transactions and use tax requires approval by the local governing board and local voters- I'These locally imposed taxes are collected by the state for each county and city and are not included in the state's revenue totals. 1[The city tax constitutes a credit against the county tax. The combined rate is never more than 1 percent in any area. 3"These taxes may be imposed by voters in cities, counties, or special districts. The revenues are oolleded by the state for each jurisdiction and are not included in the state's revenue totals. "Various junsdic?om are authorized in statute to have a higher cap Ih?n 2.00%. 2020-21 233 REVENUE MATES Combined State and Local Sales and Use Tax Rates by County (city rate provided it different from the county rate Rates in Effect on January I. 2020 County Alameda. . Alameda. Albany. Hayward. Newark. San Leandra Union City Alpine Amador Paradise Oroville Aegel's Camp .. Williams Contra Concord. Hercules Grinds. Pittsburg. Pleasant Hill. San Pablo Martinez. Moraga. Pinole. Richmond. El Cerrito Del Norte" El South Lake Tahoe Placerville Fresno Reedley. Selma Sanger Coalinga. Fowler. Huron Kerman Kingsburg Glenn . "Orland .. Arcata. Eureka. Fortune. Trinidad Rio Dell Calexico. ElCentro Arvin Bakers?eld Delano. Ridgecrest. Wasoo Kings Corcoran Clearlake. Lakeport Lassen.. Los Angeles Avalon. Commerce. Downey. El Monte Inglewood La Puenta. San Femanado. South El Monte Burbank. Compton, Covina, Cudahy. Culver City. Glendale. Giendora. Hawthome. Huntington Park. Lawndale. Long Beach. Lynwood, Pico Rivera. Pasadena. Pomona. Santa Monica. South Gate Santa Fe Springs Madera Madeira Chowchilla 234 Tax Rate County 9.25% Marin 0.75% Novato San Anselmo. Sausalito Corte Madera. Fairfax 7. 25% Larkspur San Rafael 7. 75% Mariposa" .. 7. 25% Mendocino-.0 Paint Arena 7.75% 3.25% Fort Bragg 7. 25% Ukiah 7. 75% Merced? 7.25% Atwrater Gustine need 7.75% Los Banos 3.25% Modoo 3.75% Mono Mammoth Lakes Monterey Gonzales Cannelsby?theSea. King City 9.25% 9.75% Monterey. Paci?c Grove. 7.50% King City. Sand City. Soledad 7.25% Del Rey Oaks. Marina 7.75% Salinas. Seaside 3.25% Green?eld 7.975% Napa 3.475% St. Helena 3.725% Nevada 3.975% Truckee Nevada City 7.25% Grass Valley 7.75% . .. 7.75% La Habra 3.50% Fountain Valley. Garden Grove, La Palma. Placentia. Seal Beach. 3.75% Stanton. Westminster 7.75% Santa Ana 3.25% Placer 7.75% Loomis 7.25% Roseville 3.25% Plumes. Riverside . . 7.25% Cathedral City. Coachella 3.25% Hemet. lndio. La Quinta. 7.25% Menll'ee, Murrieta. Norco. 3.75% Riverside. Temecula. Wildomar 7. 25% Palm Springs 9. 50% .. 10.00% Gall Rancho Cordova Isleton. Sacramento San Benito? . ?San Juan Bautista 10.25% Hollister San Mo ntclalr. SarI Bemardino Barstow. Yucca Valley San Diego El Cajon. Oceanside. Vista La Mesa Chula Vista, Del Mar. 10.50% National City 7.75% San Francisco 3.25% 3.75% Tax Rate County 3. 25% San 3.50% Lodi, Manteca Tracy 3.75% Lathrop 9.00% Stockton San Luis .. Arroyo Grande. Atascadero. 7.75% 7.375% Grover Beach. Morro Bay. 7.375% Paso Robles. Pismo Beach. 3. 375% San Luis Cbispo 3.375% San . 7.75% Buningame. San Mateo 3.25% Belmont East Palo Alto 3.75% Redwood City. 7.25% South San Francisco 7.25% Santa Barbara. .. . 7.75% Guadalupe 7.750% Santa Barbara Santa Maria 3. 250% Carpinten'a 3. 750% Santa . . Los Gates Campbell. San Jose 9.250% Santa Cruz Capitola. Scotts Valley 9.50% Watsonville. Santa Cruz 7.75% Shasta 3.25% Anderson 7. 50% Sierra. 3. 25% Siskiyou . 3. 375% mount Shasta Wood 3. 50% Dunsmuir. Yreka 7. 75% .. 3.25% Ri0 Vista. vacaville 3.75% Benioia. Fair?eld. Suisun City. Vallejo 3.25% Rotinei't Paik 7.25% Sonoma 7.50% Santa Rosa. Sebastopoi 7. 75% Cotati 7. 25% 7.75% Ceres. Cakdele 3.75% Butter Tehama Red Bluff Corning 3.25% Trinity 7.75% Tulare 3.25% Tuiare 3.75% Visalia. Dinuba 3.25% Farmersville. Lindsay. 9.00% Woodlake 3.25% Porterville 7.75% Tuolumne 3.00% Sonora 3. 75% 7.75% Oxnard. 0ent0ra 3.25% Santa Paula 3.50% Port Hueneme 3.75% Yolo Woodland 3.50% Davis. West Sacramento Yuba Wheatland Merysville Tax Rate 7.75% 0.25% 3.75% 9.00% 7.25% 7.75% 9.25% 9.50% 9.75% 7.75% 3.00% 8.75% 9.00% 9 00% 9.125% 9.250% 3.50% 9.00% 0.25% 7 25% 7.75% 7 25% 7.25% 7.50% 7.75% . 7.375% 3.125% 3.375% 3.25% 3.75% 9.00% 9.25% . 7.375% 3.375% 7.25% 7.25% 7.50% 7.75% 7.25% 7.75% 3.25% 50% 3.75% 0.25% 7.25% 7.75% 7 25% 7.75% 0.25% 0.75% 7.25% 3.00% 8.25% 7.25% 7.75% 3.25% BUDGET SUMMARY 2020-21 Version number CQ2DDvMG2BB5g7vg REVENUE ESTIMATES Motor vehicle and parts dealers were the largest contributors to the sales tax base in calendar year 2018, comprising around 12.7 percent of taxable sales. Food service sales were the second-largest contributor to the sales tax base in 2018, with close to 12 percent. The third most significant contributor to the sales tax base is wholesale trade, which comprised 11.6 percent of the sales tax base. Since July 1, 2010, the General Fund portion of the sales tax no longer applies to gasoline. Taxable sales, excluding gasoline, increased by 4.8 percent in 2017-18. Based on preliminary data, estimates of taxable sales increased by 3.2 percent in 2018-19. Taxable sales are expected to increase by 4.8 percent in 2019-20 and 4.0 percent in 2020-21. A General Fund sales tax exemption for manufacturing equipment commenced July 1, 2014. The sales tax exemption applies to purchases of manufacturing or biotechnology research and development equipment valued at up to $200 million in qualifying purchases per business per year. The exemption was expanded beginning in 2018 to include manufacturing equipment used in electric power generation and agricultural processing. The revenue loss from the utilization of this exemption was $264 million in 2018-19, and is forecast to be $265 million in 2019-20 and $277 million in 2020-21. The U.S. Supreme Court's ruling in Wayfair v. South Dakota in June 2018 clarified states' authority to require out-of-state sellers to collect use tax. Previously, California individuals were responsible for reporting and paying use tax on out-of-state purchases. The California Department of Tax and Fee Administration required out-of-state retailers to collect and remit use tax beginning on April 1, 2019 if in the preceding or current calendar year their sales into California exceed $100,000 or 200 or more separate on-line transactions. Additionally, California passed the Marketplace Facilitator Act, Chapter 5, Statutes of 2019, which raises the sales threshold to $500,000, eliminates the 200 transaction test, and mandates that online marketplace operators such as Amazon and eBay collect and remit sales tax for all sales made on their platforms beginning October 1, 2019. The Wayfair decision and Marketplace Facilitator Act are expected to lead to increased use tax compliance, resulting in an additional $554 million in tax revenue in 2019-20 and $664 million in 2020-21, which is unchanged from the 2019 Budget Act forecast. GOVERNOR'S BUDGET SUMMARY — 2020-21 235 REVENUE ESTIMATES Version number CQ2DDvMG2BB5g7vg CORPORATION TAX The corporation tax is expected to generate $14.1 billion in 2018-19, $15.3 billion in 2019-20, and $16.1 billion in 2020-21. These figures reflect increases of $288 million in 2018-19, $2.2 billion in 2019-20, and $2.5 billion in 2020-21. Corporation tax revenues are expected to contribute 10.4 percent of all General Fund revenues in 2020-21, down more than 4 percentage points from the 14.6 percent contributed in 1980-81. The strong upgrade to the corporation tax forecast is due in large part to the assumption that the federal tax changes of 2017 will result in the shifting of a portion of pass-through income, which is taxed under the personal income tax, to corporate income. This assumption reflects strong cash trends in the corporate tax above what could reasonably be expected from profit growth, the 2017 cut in the federal corporate tax rate from 35 percent to 21 percent, and the announcements of conversions to C-corporations of several large public companies in the private equity and energy space. This shift is expected to occur primarily in 2018, 2019, and 2020, but is expected to be permanent. INSURANCE TAX Most insurance policies written in California are subject to a 2.35-percent gross premiums tax. This tax takes the place of all other state and local taxes on insurance companies except those on real property and motor vehicles. In general, the basis of the tax is the amount of “gross premiums" received, less returned premiums. The insurance tax is expected to generate General Fund revenues of $3.0 billion in 2019-20 and $3.1 billion in 2020-21. These figures reflect an increase of $155 million in 2019-20 and $182 million in 2020-21. ALCOHOLIC BEVERAGE TAXES In addition to the sales tax paid by retail purchasers, California levies an excise tax on distributors of beer, wine, and distilled spirits. The tax rates per gallon are applied as follows: (1) $0.20 for beer, dry wine, and sweet wine; (2) $0.30 for sparkling wine; and (3) $3.30 for distilled spirits. Alcoholic beverage revenue estimates for each type of beverage are based on projections of total per capita consumption and population growth. Overall, consumption of alcoholic beverages is expected to grow by 1.4 percent in 2019-20 and 236 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg REVENUE ESTIMATES 1.4 percent in 2020-21. Revenues from this tax were $378 million in 2018-19 and are forecast to be $383 million in 2019-20 and $389 million in 2020-21. CANNABIS EXCISE TAXES Proposition 64, commonly referred to as the Adult Use of Marijuana Act, levies excise taxes on the cultivation and retail sale of both recreational and medical cannabis as of January 1, 2018. The cultivation tax is paid on all recreational and medicinal cultivation of cannabis, and will increase, to adjust for inflation, to $9.65 per ounce of flower, $2.89 per ounce of trim, and $1.35 per ounce of fresh cannabis plant on January 1, 2020. In addition, there is a 15‑percent tax on the retail price of cannabis. The Budget includes a proposal to simplify the tax structure by moving the collection of the retail excise tax from the distributor to the retailer and moving the collection of the cultivation tax from the last distributor to the first. Cannabis excise taxes generated $299 million in 2018-19 and are expected to generate $479 million in 2019-20 and $550 million in 2020-21. (See the Statewide Issues and Various Departments chapter for additional discussion.) CIGARETTE TAX The California Healthcare, Research and Prevention Tobacco Tax Act of 2016 (Proposition 56), passed by the voters in November 2016, increased the excise tax rate on cigarettes, tobacco products, and electronic cigarettes. The excise tax increased by $2 from 87 cents to $2.87 per pack of 20 cigarettes on distributors selling cigarettes in California, effective April 1, 2017. The equivalent excise tax on the distribution of other tobacco products such as cigars, chewing tobacco, pipe tobacco, and snuff also increased by $2 from a $1.37-equivalent to a $3.37-equivalent tax, effective July 1, 2017. Lastly, Proposition 56 newly imposes the $3.37-equivalent tobacco products tax on electronic cigarettes. The $1.37-equivalent portion of that tax was imposed beginning April 1, 2017 while the additional $2-equivalent tax was imposed beginning July 1, 2017. The ad valorem excise tax rate on other tobacco products is calculated annually by the California Department of Tax and Fee Administration based on the wholesale price of cigarettes and the excise tax on cigarettes. Revenues from the tax on cigarettes and other tobacco products are distributed as follows: • Ten cents of the per-pack tax is allocated to the General Fund. GOVERNOR'S BUDGET SUMMARY — 2020-21 237 REVENUE ESTIMATES Version number CQ2DDvMG2BB5g7vg • Fifty cents of the per-pack tax, and an equivalent rate levied on non-cigarette tobacco products, goes to the California Children and Families First Trust Fund for distribution according to the provisions of Proposition 10 of 1998. • Twenty-five cents of the per-pack tax, and a rate equivalent to 87 cents levied on non-cigarette tobacco products and electronic cigarettes, is allocated to the Cigarette and Tobacco Products Surtax Fund for distribution as determined by Proposition 99 of 1988. • Two cents of the per-pack tax is deposited into the Breast Cancer Fund. • As of April 1, 2017, two dollars of the per-pack tax, and an equivalent rate levied on non-cigarette tobacco products and electronic cigarettes, goes to the California Healthcare, Research and Prevention Tobacco Tax Act of 2016 Fund for distribution according to the provisions of Proposition 56 of 2016. Projections of cigarette tax revenues are based on projected per capita consumption of cigarettes, population growth, and the impact from the higher smoking age as well as the increased prices due to Proposition 56. Revenue estimates for other tobacco products, which now include electronic cigarettes, also reflect recent law changes. The cumulative effect of product price and tax increases, the increasingly restrictive environments for smokers, and anti-smoking campaigns (including state campaigns funded by Proposition 99 Tobacco Tax and Health Protection Act revenues and revenues from the Master Tobacco Settlement) have reduced cigarette consumption considerably. Annual per capita consumption (based on population ages 18-64) was 184 packs in 1980-81, 123 packs in 1989-90, 84 packs in 1997-98, and 31 packs in 2018-19. Total tax-paid packs of cigarettes sold in 2018-19 were 624 million. In 2020-21, tax-paid packs of cigarettes sold are forecast to decline to 585 million. The Tobacco Tax Revenue figure shows the distribution of tobacco tax revenues to the General Fund and various special funds for 2018-19 through 2020-21. In order to address the rapidly increasing youth use of potent nicotine-based vaping products, the Budget proposes a new vaping tax based on nicotine content. The new tax will begin on January 1, 2021, and will be $2 for each 40 milligrams of nicotine in the product, equivalent to the tax on a pack of cigarettes. The new tax will be in addition to all existing taxes on E-Cigarettes, which are presently taxed as tobacco products under state law. Revenues from the new tax are expected to be $32 million in 2020-21, will be deposited into a new special fund, and will be used for administration, 238 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg REVENUE ESTIMATES enforcement, youth prevention, and heath care workforce programs. The Budget includes $9.9 million and 10.5 positions for the Department of Tax and Fee Administration to administer the proposed tax and $7 million for the California Highway Patrol to establish a task force in collaboration with the Department of Justice dedicated to combatting the underground market for vaping products. Similar to the implementation of Proposition 56, the Administration anticipates proposing a spending plan for the remainder of the revenues in the January 2021 Governor’s Budget. In addition to the tax, the Administration will support a statewide ban of all flavored nicotine products as of January 1, 2021. For more information see the Health and Human Services chapter. OTHER REVENUES UNCLAIMED PROPERTY The Budget reflects receipts in unclaimed property of $443 million in 2019-20 and $432 million in 2020-21. These numbers reflect ongoing efforts to maintain holder compliance with Unclaimed Property Law. PROPERTY TAXES Although the property tax is a local revenue source, the amount of property tax generated each year has a substantial impact on the state budget because local property tax revenues allocated to K-14 schools generally offset General Fund expenditures. GOVERNOR'S BUDGET SUMMARY — 2020-21 239 REVENUE ESTIMATES Version number CQ2DDvMG2BB5g7vg Assessed value growth is estimated based on statistical modeling and evaluations of real estate trends. The median sales price of existing single-family homes is expected to rise by 3.7 percent in 2019, with activity in the 2019 calendar year driving fiscal year 2020-21 assessed valuations for property tax purposes. This represents a moderation in growth from 2015 to 2018 when median prices increased at an average rate of 6.2 percent. The demand for homes continues to outpace supply in many areas of the state, however, moderating growth in the economy as well as moderating growth in home prices due to affordability issues are expected to lead to a moderation in growth of property taxes in the future. Statewide property tax revenues are estimated to increase 6.4 percent in 2019-20 and 5.7 percent in 2020-21. Approximately 42 percent ($33 billion) of 2020-21 property tax revenues will go to K-14 schools. This includes $2.4 billion that schools are expected to receive in 2020-21 pursuant to the dissolution of redevelopment agencies. SPECIAL FUND REVENUE The California Constitution and state statutes specify into which funds certain revenues must be deposited and how they are to be spent. Total special fund revenues, excluding transfers, are estimated to be $57.9 billion in 2020-21. Taxes and fees related to motor vehicles are expected to comprise 32.8 percent of all special fund revenue in 2020-21. The principal sources are motor vehicle fees (registration, weight, and vehicle license fees) and motor vehicle fuel taxes. During 2020-21, it is expected that about $18.9 billion in revenues will be derived from the ownership or operation of motor vehicles. MOTOR VEHICLE FEES Motor vehicle fees and taxes consist of vehicle license, registration, weight, driver license, and other charges related to vehicle operation. The Motor Vehicle Fees Special Fund Revenue figure displays revenue from these sources from 2018-19 through 2020-21. The Vehicle License Fee (VLF) is imposed on vehicles registered in California that travel on public highways. The current VLF tax rate is 0.65 percent plus a graduated fee at $25 to $175 per vehicle. These taxes are imposed in lieu of a local personal property tax on automobiles and are administered by the Department of Motor Vehicles. The number of vehicles in the state, the ages of those vehicles, and their most recent sales price affect the amount of VLF collected. The total number of vehicles in California—autos, 240 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg REVENUE ESTIMATES trucks, trailers, and motorcycles, including vehicles registered in multiple states—is estimated to be 32.8 million in 2019-20 and 32.9 million in 2020-21. The forecast projects that there will be 2.3 million new vehicles registered in both 2019-20 and 2020-21. Beginning April 1, 2017, the base vehicle registration fee of $43 increased by $10 and was newly indexed to inflation. The total vehicle registration fee is expected to be $86 in 2020, which includes $57 for the base vehicle registration fee, $26 for a CHP fee that continues to be indexed to inflation, and $3 for an alternative fuel/technology fee not indexed for inflation. In addition to the VLF, truck owners pay a fee based on vehicle weight. Weight fee revenues are expected to be $1.2 billion in 2019-20 and $1.3 billion in 2020-21. Beginning on July 1, 2020, an additional $100 annual registration fee will be imposed on zero-emission vehicles (ZEV) that are model 2020 or newer. The new ZEV revenue is expected to be $10.9 million in 2020-21 and will be used to fund transportation projects. MOTOR VEHICLE FUEL TAXES The motor vehicle fuel tax (gas tax), diesel fuel tax, and use fuel tax are the major sources of funds for maintaining, replacing, and constructing state highway and transportation facilities. Over one-third of these revenues are apportioned to local jurisdictions for a broad range of local road projects, including both maintenance of existing roads and construction of new roads. In addition, some jurisdictions choose to spend a portion of their allocation on improvements to the state highway system in their region to decrease traffic congestion. Motor vehicle fuel tax collections are shown in the Motor Vehicle Fuel Tax Revenue figure. Gasoline consumption was down 1.5 percent in 2018-19 when compared to the prior fiscal year. Demand for gasoline was likely lessened in the short run by high gas prices GOVERNOR'S BUDGET SUMMARY — 2020-21 241 REVENUE ESTIMATES Version number CQ2DDvMG2BB5g7vg throughout the year. In the long run, continued gains in the average fuel economy of cars and trucks as well as the state’s policies to reduce greenhouse gas emissions are expected to support long-term declines in gasoline consumption. Gasoline consumption is expected to decline 1.2 percent in 2019-20 and 1.2 percent in 2020-21. Because most diesel fuel is consumed by the commercial trucking industry, consumption is affected most significantly by general economic conditions. However, despite the strong economy, diesel consumption decreased by 2.4 percent in 2018-19. Diesel consumption is expected to increase by 2.6 percent in 2019-20, followed by a decrease of 1.5 percent in 2020-21. The uneven growth rates are attributable to some large late payments in 2019-20. Long-term growth is expected to be negative 0.4 percent, reflecting a moderating economy and gradually improving fuel economy of the fleet. The gas tax is collected from distributors when fuel is loaded into ground transportation for transport to retail stations. This fuel is taxed at a rate of 47.3 cents per gallon in 2019-20 and will be taxed at the rate of 50.3 cents per gallon in 2020-21. Distributors pay the diesel fuel tax, which applies to both pure diesel fuel and blends, at the fuel terminal. The excise tax on diesel will be 36 cents per gallon for 2019-20 and will be 38.2 cents per gallon in 2019-20. Dyed diesel fuel, which is used for off-highway purposes such as farm equipment, is not taxed. SUMMARY OF STATE TAX SYSTEM The state's tax system is outlined at the end of this section in the Outline of State Tax System figure. Tax collections per capita and per $100 of personal income are displayed in Schedule 2 in the Appendix. The revenue generated from each state tax from 1970-71 through 2020-21 is displayed in Schedule 3 in the Appendix. 242 GOVERNOR'S BUDGET SUMMARY — 2020-21 REVENUE MATES Outline of State Tax System as of January 1. 2020 Administering Maior Taxes and Fees Base or Measure Rate Agency Fund Alcoholic Beverage Excise Taxes Beer Gallon $0.20 Equalization General Distilled Spirits Gallon $3.30 Equalization General Dry WineiSweet Wine Gallon $0.20 Equalization General Sparkling Wine Gallon $0.30 Equalization General Hand Cider Gallon $0.20 Equalization General Corporation General Corporation" Net income 8.84% Franchise General Bank and Financial Corp. Net income 10.04% Franchise General Alternative Minimum Tax Alt. Taxable Income 6.65% Franchise General Tobacco Cigarette?! Package Tax 0 Fee Admin See footnote Other Tobacco Products? Wholesale cost Tax .5 Fee Admin See footnote insurance insurers? Gross Premiums 2.35% Insurance Dept. General Cannabis Cannabis Excise Retail Cost 15.00% Tax 5 Fee Admin Cannabis Tax Fund Cultivation-Flower Ounce $9.55 Tax at Fee Admin Cannabis Tax Fund Cultivation?Trim Ounce $2.37 Tax 5 Fee Admin Cannabis Tax Fund Cultivation-Fresh Plant Ounce $1.35 Tax it Fee Admin Cannabis Tax Fund Motor Vehicle Vehicle License Fees Market value 0.55% DMV VLF. Local Revenue Transportation Improvement Fee Market value $25?31 1?5 DMV Transportation Fuel?Gasolinesl Gallon $0.473 Tax 5 Fee Admin Motor Vehicle Fuel Fuel?Diesel" Gallon $0.35 Tax Fee Admin Motor Vehicle Fuel Registration FeesEu Vehicle $86.00 DMV Motor Vehicle Weight Fees Gross Vehicle Wt. Various DMV State Highway Personal Income? Ta xabie income 1.0-1 2 3% Franchise General Proposition 53 Surcharge Taxable income $1 million 1.0% Franchise Mental Health Services Alternative Minimum Tax Alt. Taxable Income 7.0% Franchise General Retail 53'? and Usem Sales or lease of taxable items 2.25% Tax 3; Fee Admin See footnote 1" Minimum Tax is $800 per year for existing corporations. New corporations are exempt for their first taxable year. 2"This tax is levied at the combined rate of 10 of 20 cigarettes for the General Fund. 25 for the Cigarette and Tobacco Products Surtax Fund. 2 oentsl'pack for the Breast Cancer Fund. 50 for the California Children and Families First Trust Fund. and $2 for the California Healthcare. Research and Prevention Tobacco Tax Act of 2016. The additional $2 excise tax was effective as of April 1. 201?. 3?The surtax rate is determined annually by the California Department of Tax and Fee Administration and is equivalent to the combined rate of tax applied to cigarettes, with funding for the Cigarette and Tobacco Products Surtax Fund and California Children and Families First Trust Fund. Effective July 1. 2019. through June 30. 2020. the rate is 59.2? percent of the wholesale cost. ?Ocean marine insurance is taxed at the rate of 5 percent of underwriting pro?t attributable to California business. Special rates also applyI to certain pension and pro?t sharing plans. surplus lines. certain health insurance. and nonadmitted insurance. 5"For return to cities and counties. Trailer coach license fees are deposited in the General Fund. part of SE- 1 implemented beginning November 1. 201 T. the rate was increased from 29.7 cents to 413 cents and indexed for in?ation beginning in 2020-21. The fund is used for administrative expenses and apportionment to State. counties and cities for highways. airports. and small craft harbors. "As part of SB 1. the rate was increased from 16 cents to 36 cents and and indexed with in?ation beginning in 2020-21. ?For support of State Department of Motor Vehicles. California Highway Patrol. other agencies, and motor vehicle related programs. A $10 increase was effective April 1. 201?. 9?F-?roposition 30 was passed by the California voters in November 2012. Proposition 30. for tax years 2012 through 2013. created three new income tax brackets with rates of 10.3 percent for taxable income over $250,000. 11.3 percent for taxable income over $300000. and 12.3 percent for taxable income over $500,000. Proposition 55 was passed by the California voters in November 2015 and extended these neviI income tax brackets until 2030. 1?The 7.25?percent rate includes the rates for General Fund. Special Funds. and uniform local rates. Additionally. cities and ocunties may generally assess up to an additional 2.00 percent to the statewide rate. 2020-21 243 Version number CQ2DDvMG2BB5g7vg STAFF ASSIGNMENTS STAFF ASSIGNMENTS GOVERNOR'S BUDGET SUMMARY — 2020-21 245 STAFF ASSIGNMENTS STF01_1582 Version number CQ2DDvMG2BB5g7vg Executive Office Keely Martin Bosler Director of Finance (916) 445-4141 Vivek Viswanathan Gayle Miller Chief Deputy Director, Budget Chief Deputy Director, Policy (916) 445-9862 (916) 445-8582 Richard Gillihan Kari Krogseng Chief Operating Officer Chief Counsel (916) 445-4923 (916) 322-0971 H.D. Palmer Jolie Onodera Deputy Director, External Affairs Legislative Director (916) 323-0648 (916) 445-8610 Diane Cummins Special Advisor to the Director of Finance (916) 445-4141 Budget Program Areas Program Budget Managers Budget Planning and Preparation, Cash Management, FI$Cal Project Support, Statewide Budget Issues, and Statewide Accounting Policies and Training Thomas Todd..................... (916) 445-5332 Corrections and Rehabilitation, Justice, and General Government Amy Jarvis......................... (916) 445-8913 Education Jeff Bell..............................(916) 445-0328 Employee Compensation and State Pension, Audits and Evaluations, Departmental Administration and Information Services, and Information Technology and Consulting Jennifer Whitaker............. (916) 445-3274 Energy, Housing and Homelessness, Labor, Local Government, Tax Agencies, and Transportation Erika Li................................ (916) 445-3274 Health and Human Services Adam Dorsey.................... (916) 445-6423 Natural Resources, Environment, and Capital Outlay Matt Almy.......................... (916) 324-0043 Revenue Forecasting, Economic Projections, and Demographic Data Irena Asmundson ............ (916) 322-2263 Chief Economist and PBM 246 GOVERNOR'S BUDGET SUMMARY — 2020-21 Version number CQ2DDvMG2BB5g7vg APPENDICES AND SCHEDULES APPENDICES AND SCHEDULES GOVERNOR'S BUDGET SUMMARY — 2020-21 247 Budget Process Overview The Governor's Budget is the result of a process that begins more than one year before the Budget becomes law. When presented to the Legislature on or before January 10 each year, the Governor's Budget incorporates revenue and expenditure estimates based upon the most current information available through early to mid-December. In the event the Governor would like to change the Budget presented to the Legislature, including adjustments resulting from changes in population, caseload, or enrollment estimates, the Department of Finance proposes adjustments to the Legislature during budget hearings through Finance Letters in the spring. In May, Finance submits revised revenue and expenditure estimates for both the current and budget years to the Legislature. This update process is referred to as the May Revision. Finance also prepares monthly economic and cash revenue updates during the fiscal year. The list below describes the key documents used in the budget process. Title Purpose Prepared/Issued by When Budget Letters Convey the Administration's guidelines for budget preparation to agencies and departments. Governor/Finance January through December Budget Change Proposals Documents that propose to modify or change the existing level of service, propose new programs, or remove existing programs. Agencies and departments submit to Finance analysts for review. August and September Governor/Finance January 10 Governor's Budget A narrative summary of the Governor's Governor/Finance Summary proposed budget. January 10 Budget Bill Requests spending authorization to carry out the Governor's expenditure plan (serves as a legislative budget decision document). January 10 Multi-Year Projection Estimated General Fund revenues and Finance expenditures for the ensuing fiscal year and the three fiscal years thereafter, as required by Section 12.5 of Article IV of the California Analysis of the Budget, including Legislative Analyst's recommendations for changes to the Office Governor's Budget. January, May, and Budget Enactment May Revision Update of General Fund revenues, expenditures, and reserve estimates based on the latest economic forecast, and changes in population, caseload, or enrollment estimates. Mid-May Budget Act The primary annual expenditure Legislature/Governor authorization, as approved by the Governor and Legislature, including a listing of the Governor's vetoes, if any. Late June or upon enactment of the Budget Final Budget Summary Update of the individual Budget Act items of appropriation, with changes by the Governor's vetoes, and includes certain budget summary schedules. Finance Summer/Fall Final Change Book Update of changes to the detailed fiscal information in the Governor's Budget. Finance Summer/Fall Governor's Budget Governor's proposed budget for the upcoming fiscal year. Analysis of the Budget GOVERNOR'S BUDGET SUMMARY 2020-21 Finance/Legislature Finance February Appendix 1 Adjustments in Accounting Methods and Prior Year Fund Balances Government Code section 13344 requires the Department of Finance to clearly note in the Governor’s Budget or related documents any adjustments of prior year fund balances and accounting methods. This requirement is to ensure the closest possible comparability of the Governor’s Budget with the State Controller’s Budgetary-Legal Basis Annual Report. Accounting Methods No major changes have been implemented or proposed since last year’s report. Prior Year Fund Balances Government Code section 13344 requires every state agency to prepare and maintain financial and accounting data for inclusion in the Governor’s Budget, Budget Act and related documents, and the State Controller’s Budgetary-Legal Basis Annual Report, according to the methods and bases provided in regulations, budget letters, and other directives of Finance. Consistent with this requirement, Finance has continued its efforts in instructing and assisting departments in the reconciliation of special funds between the Governor’s Budget documents departments provide to Finance and the year-end financial statements they provide to the State Controller’s Office. Departments that are the designated fund administrators continue to be primarily responsible for the reconciliation, and Finance works very closely with them to ensure this is or will be completed for all special funds. Special fund balances included in the Governor’s Budget have been reconciled using the best information available at the time. However, final balances for the Budgetary-Legal Basis Annual Report and certain actual revenue or expenditure amounts are not available during the preparation of the Governor’s Budget. Therefore, there will be some remaining variances in the spring when final balances become available. Finance will follow up the efforts in the spring to evaluate if additional budget changes are necessary. Appendix 2 GOVERNOR'S BUDGET SUMMARY 2020-21 Statewide Financial Information Provides various statewide displays of financial information included in the Budget that may be the most useful to the public, private sector, or other levels of government. Each statewide display includes a description of the information included. Schedule 1 General Budget Summary—Total statewide revenues and expenditures for the General Fund and special funds, and expenditure totals for selected bond funds. Schedule 2 Summary of State Tax Collections—State tax collections per capita and per $100 of personal income. Schedule 3 Comparative Yield of State Taxes—Revenues for major state taxes for General Fund and special funds. Schedule 4 Position and Salary Cost Estimates—Position data and corresponding dollar amounts. Schedule 5A Statement of Estimated Accounts Payable and Accounts Receivable— Actual payable and receivable amounts as of the end of the last fiscal year, and estimated amounts for the end of the current fiscal year and the next fiscal year. Schedule 5B Actual Past Fiscal Year Cash Flow—Actual receipts, disbursements, borrowable resources, and cash flow loan balances for the last fiscal year. Schedule 5C Estimated Current Fiscal Year Cash Flow—Projected receipts, disbursements, borrowable resources, and cash flow loan balances for the current fiscal year. Schedule 5D Estimated Budget Fiscal Year Cash Flow—Projected receipts, disbursements, borrowable resources, and cash flow loan balances for the next fiscal year. Schedule 6 Summary of State Population, Employees, and Expenditures—Historical data of state population, employees, personal income, revenues, and expenditures. Schedule 8 Comparative Statement of Revenues—Detail of General Fund and special fund revenues by source for the past, current, and budget years within the following categories: (1) major taxes and licenses, (2) minor revenues, and (3) transfers and loans. Schedule 9 Comparative Statement of Expenditures—Detail of General Fund, special fund, selected bond fund, and federal fund expenditures included in the Governor’s Budget by the following categories: (1) State Operations, (2) Local Assistance, (3) Capital Outlay, and (4) Unclassified. GOVERNOR'S BUDGET SUMMARY 2020-21 Appendix 3 Schedule 10 Summary of Fund Condition Statements—A listing in alphabetical order of the beginning reserve, revenues, expenditures, and ending reserve for the General Fund and each special fund for the past, current, and budget years. Schedule 11 Statement of General Obligation Bond and Commercial Paper Debt of the State of California—List of all general obligation bonds, including: maturity dates, authorized amount of bond issues, amounts of unissued bonds, redemptions, and outstanding issues, as well as authorized and outstanding commercial paper. Schedule 12A State Appropriations Limit Summary—Summary of Schedules 12B through 12E provides a calculation of the appropriations subject to the State Appropriations Limit and the Limit Room. Schedule 12B Revenues to Excluded Funds—List of revenues in special funds NOT included in the calculation of total appropriations subject to the State Appropriations Limit. Schedule 12C Non-Tax Revenues in Funds Subject to Limit—Total of non-tax General and special fund revenues deposited in funds that are otherwise included in the calculation of total appropriations subject to the State Appropriations Limit. Schedule 12D State Appropriations Limit Transfer from Other Funds to Included Funds— Detail of transfers between funds that are used in calculating the appropriations subject to the State Appropriations Limit. Schedule 12E State Appropriations Limit Excluded Appropriations—Exclusions from appropriations subject to the State Appropriations Limit. Schedule 13 Proposition 98 Final Certification—Factors, data, and calculations used to certify the prior year Proposition 98 funding level pursuant to Chapter 39, Statutes of 2018. Appendix 4 GOVERNOR'S BUDGET SUMMARY 2020-21 SCHEDULE 1 AT 2020-21 GOVERNOR'S BUDGET GENERAL BUDGET SUMMARY1/ (In Thousands) Reference to Schedule General Fund Selected Bond Fund Expenditures Special Funds Expenditure Totals 2018-19 Prior year resources available 10 $10,979,193 $31,643,232 Revenues and transfers 8 139,378,948 61,594,612 Expenditures 9 141,861,115 58,014,392 Fund Balance 10 $8,497,026 $35,223,452 2,144,474 -- -- 35,223,452 6,352,552 -- 13,968,422 -- 900,000 -- -- -- Reserve for Liquidation of Encumbrances 2/ Reserves for Economic Uncertainties 3/ Special Fund for Economic Uncertainties 3/ Budget Stabilization Account/Rainy Day Fund Safety Net Reserve Public School System Stabilization Account $5,731,512 $205,607,019 $7,294,688 $217,062,059 $5,351,539 $222,192,733 2019-20 Prior year resources available 10 $8,497,026 $35,223,452 Revenues and transfers 8 146,485,597 62,872,897 Expenditures 9 149,748,685 60,018,686 Fund Balance 10 $5,233,938 $38,077,663 2,144,474 -- -- 38,077,663 3,089,464 -- 16,018,422 -- Safety Net Reserve 900,000 -- Public School System Stabilization Account 524,150 -- Reserve for Liquidation of Encumbrances 2/ Reserves for Economic Uncertainties 3/ Special Fund for Economic Uncertainties 3/ Budget Stabilization Account/Rainy Day Fund 2020-21 Prior year resources available 10 $5,233,938 $38,077,663 Revenues and transfers 8 151,634,805 60,296,038 Expenditures 9 153,083,298 63,757,896 Fund Balance 10 $3,785,445 $34,615,805 2,144,474 -- -- 34,615,805 1,640,971 -- 17,977,422 -- 900,000 -- 486,529 -- Reserve for Liquidation of Encumbrances 2/ Reserves for Economic Uncertainties 3/ Special Fund for Economic Uncertainties 3/ Budget Stabilization Account/Rainy Day Fund Safety Net Reserve Public School System Stabilization Account Note: Totals may not add due to rounding. 1/ The General Budget Summary includes the revenues and expenditures of all state funds that reflect the cost of state government and selected bond fund expenditures. The transactions involving other nongovernmental cost funds are excluded. 2/ The Reserve for Liquidation of Encumbrances represents an amount which will be expended in the future for state obligations for which goods and services have not been received at the end of the fiscal year. This reserve treatment is consistent with accounting methodology prescribed by Generally Accepted Accounting Principles (GAAP) and Government Code Sections 13306 and 13307. 3/ The Special Fund for Economic Uncertainties and the Reserves for Economic Uncertainties are reserve accounts for the General and special funds as provided by Section 5 of Article XIIIB of the California Constitution. GOVERNOR'S BUDGET SUMMARY 2020-21 Appendix 5 SCHEDULE 2 AT 2020-21 GOVERNOR'S BUDGET SUMMARY OF STATE TAX COLLECTIONS (Excludes Departmental, Interest, and Miscellaneous Revenue) State Tax Collections Fiscal Year Beginning 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018e/ 2019e/ 2020e/ Per Capita Personal Income1/, 2/ $3,870 4,189 4,668 4,962 5,210 5,652 6,116 6,722 7,306 7,953 8,660 9,656 10,750 11,933 13,131 13,738 14,549 15,880 16,790 17,604 18,529 19,652 20,623 21,579 21,825 22,627 22,929 23,498 24,566 25,920 27,152 29,215 30,714 33,351 34,010 34,149 35,280 37,183 39,107 41,826 43,269 43,590 41,913 43,579 46,063 48,618 49,112 52,166 55,612 57,593 59,866 63,141 65,915 68,654 (Dollars in Millions) General Taxes per Capita1/ General Taxes per $100 of Personal Income3/ General Fund Total Fund Total Fund $3,558 3,963 4,126 4,290 5,213 5,758 6,377 8,043 9,050 10,781 12,951 14,188 16,904 17,808 19,053 19,567 22,300 25,515 26,974 31,331 31,228 35,647 37,248 36,828 40,072 39,197 38,351 41,099 44,825 47,955 53,859 58,199 70,027 75,668 62,679 64,879 70,229 80,070 90,468 93,237 95,290 79,398 84,537 89,910 82,850 95,444 101,187 112,158 117,083 122,029 134,074 141,952 147,638 150,691 $4,676 5,173 5,409 5,598 6,597 7,231 7,877 9,572 10,680 12,525 14,825 16,201 19,057 20,000 21,501 22,359 25,674 29,039 30,898 35,368 35,611 40,613 43,052 43,556 48,856 48,230 48,941 50,648 54,805 58,400 64,826 69,724 81,773 88,147 73,295 75,420 81,628 93,764 105,860 109,390 111,778 95,020 99,284 106,942 106,351 119,798 127,388 139,983 144,154 147,731 164,551 175,783 183,118 187,509 $185.55 203.94 208.96 214.08 256.22 279.72 305.57 379.85 420.19 491.48 579.41 621.30 726.83 748.80 784.78 788.83 880.14 988.34 1,021.63 1,158.18 1,126.67 1,255.49 1,278.16 1,234.66 1,315.62 1,264.93 1,224.72 1,303.75 1,413.51 1,500.33 1,659.61 1,770.96 2,095.45 2,225.47 1,816.12 1,856.95 1,984.49 2,239.55 2,514.02 2,572.28 2,606.95 2,154.26 2,280.02 2,406.11 2,195.89 2,505.02 2,634.39 2,894.94 2,997.86 3,104.39 3,386.50 3,565.04 3,694.71 3,752.48 $243.86 266.21 273.94 279.36 324.24 351.28 377.45 452.06 495.87 570.98 663.25 709.45 819.41 840.97 885.62 901.39 1,013.30 1,124.85 1,170.25 1,307.41 1,284.81 1,430.39 1,477.32 1,460.21 1,604.01 1,556.44 1,562.90 1,606.67 1,728.20 1,827.10 1,997.56 2,121.65 2,446.93 2,592.50 2,123.70 2,158.65 2,306.60 2,622.57 2,941.74 3,017.93 3,058.01 2,578.12 2,677.76 2,861.88 2,818.76 3,144.21 3,316.53 3,613.15 3,691.02 3,758.22 4,156.31 4,414.67 4,582.61 4,669.31 $4.80 4.87 4.48 4.31 4.92 4.95 5.00 5.65 5.75 6.18 6.69 6.43 6.76 6.27 5.98 5.74 6.05 6.22 6.08 6.58 6.08 6.39 6.20 5.72 6.03 5.59 5.34 5.55 5.75 5.79 6.11 6.06 6.82 6.67 5.34 5.44 5.63 6.02 6.43 6.15 6.03 4.94 5.44 5.52 4.77 5.15 5.36 5.55 5.39 5.39 5.66 5.65 5.61 5.47 1/ Per capita computations are based on July 1 population estimates, benchmarked on the 2010 Census. 2/ Personal income data are on a calendar year basis (e.g., 2012 for 2012-13). 3/ Taxes per $100 personal income computed using calendar year personal income (e.g. 2012 income related Total $6.30 6.36 5.87 5.63 6.22 6.21 6.17 6.73 6.79 7.18 7.66 7.35 7.62 7.05 6.74 6.56 6.96 7.08 6.97 7.43 6.93 7.28 7.16 6.77 7.35 6.88 6.82 6.84 7.03 7.05 7.36 7.26 7.97 7.77 6.24 6.32 6.54 7.05 7.52 7.22 7.07 5.91 6.39 6.57 6.12 6.47 6.75 6.93 6.64 6.53 6.94 6.99 6.95 6.80 to 2012-13 tax collections). e/ Estimated. Appendix 6 GOVERNOR'S BUDGET SUMMARY 2020-21 SCHEDULE 3 AT 2020-21 GOVERNOR'S BUDGET COMPARATIVE YIELD OF STATE TAXES, 1970-71 THROUGH 2020-21 Includes both General and Special Funds (Dollars in Thousands) Fiscal Year Beginning 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018e/ 2019e/ 2020e/ 1/ 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ e/ Estate Sales Personal and Use1/ Income2/ $1,808,052 2,015,993 2,198,523 2,675,738 3,376,078 3,742,524 4,314,201 5,030,438 5,780,919 6,623,521 7,131,429 7,689,023 7,795,488 8,797,865 9,797,564 10,317,930 10,904,022 11,650,531 12,650,893 13,917,771 13,839,573 17,458,521 16,598,863 16,857,369 16,273,800 17,466,584 18,424,355 19,548,574 21,013,674 23,451,570 24,287,928 23,816,406 24,899,025 26,506,911 29,967,136 32,201,082 32,669,175 31,972,874 28,972,302 31,197,154 30,996,372 28,542,238 31,007,290 34,163,864 35,263,084 35,936,588 35,360,401 36,137,388 37,881,567 39,454,639 40,995,120 $1,264,383 1,785,618 1,884,058 1,829,385 2,579,676 3,086,611 3,761,356 4,667,887 4,761,571 6,506,015 6,628,694 7,483,007 7,701,099 9,290,279 10,807,706 11,413,040 13,924,527 12,950,346 15,889,179 16,906,568 16,852,079 17,242,816 17,358,751 17,402,976 18,608,181 20,877,687 23,275,990 27,927,940 30,894,865 39,578,237 44,618,532 33,046,665 32,709,761 36,398,983 42,992,007 51,219,823 53,348,766 55,745,970 44,355,959 45,650,901 50,507,989 55,449,292 66,809,000 68,306,264 77,929,551 80,541,269 85,021,043 95,865,692 100,958,015 104,082,332 105,253,849 Corporation3/ Tobacco4/ Inheritance Motor Insurance6/ and Gift5/ $532,091 662,522 866,117 1,057,191 1,253,673 1,286,515 1,641,500 2,082,208 2,381,223 2,510,039 2,730,624 2,648,735 2,536,011 3,231,281 3,664,593 3,843,024 4,800,843 4,776,388 5,138,009 4,965,389 4,544,783 4,538,451 4,659,950 4,809,273 5,685,618 5,862,420 5,788,414 5,836,881 5,724,237 6,638,898 6,899,322 5,333,036 6,803,559 6,925,916 8,670,065 10,316,467 11,157,898 11,849,097 9,535,679 9,114,589 9,613,594 7,233,000 7,782,947 9,092,696 9,416,779 10,459,561 11,019,780 12,312,596 14,062,543 15,304,879 16,006,932 $239,721 247,424 253,602 258,921 261,975 268,610 269,384 273,658 268,816 290,043 278,161 276,824 271,621 263,231 262,868 258,141 255,076 250,572 559,617 787,076 745,074 726,064 677,846 664,322 674,727 666,779 665,415 644,297 976,513 1,216,651 1,150,869 1,102,807 1,055,505 1,081,588 1,096,224 1,088,703 1,078,536 1,037,287 1,000,456 922,986 905,245 895,677 868,703 833,127 832,379 840,034 1,235,605 2,145,003 1,990,310 1,944,962 1,937,735 $185,699 220,192 260,119 231,934 242,627 316,648 367,964 365,092 416,955 465,611 530,185 482,300 517,875 236,452 296,805 252,810 273,089 304,148 335,091 388,527 498,774 446,696 458,433 552,139 595,238 659,338 599,255 780,197 890,489 928,146 934,709 915,627 647,372 397,848 213,036 3,786 6,348 6,303 245 0 0 0 0 0 0 0 0 0 0 0 0 $158,423 170,179 179,674 201,697 202,991 241,224 322,476 387,560 420,184 446,228 460,926 454,984 736,929 457,490 643,139 839,939 1,008,804 1,158,321 1,317,630 1,167,684 1,287,152 1,167,307 1,188,181 1,196,921 998,868 1,131,737 1,199,554 1,221,285 1,253,972 1,299,777 1,496,556 1,596,002 1,879,784 2,114,980 2,232,955 2,202,327 2,178,336 2,172,936 2,053,850 2,180,786 2,307,022 2,416,073 2,242,379 2,362,738 2,444,573 2,561,932 2,422,105 2,569,271 2,722,787 3,022,936 3,116,772 Alcoholic Vehicle Vehicle Beverage7/ Fuel8/ Fees9/ $106,556 112,091 114,884 119,312 120,749 125,313 127,485 132,060 140,059 138,940 142,860 139,523 136,209 137,433 135,786 132,262 131,288 128,734 128,264 128,524 129,640 321,352 292,107 275,797 268,957 269,227 271,065 270,947 273,112 282,166 288,450 292,627 290,564 312,826 314,252 318,276 333,789 327,260 323,934 311,242 334,178 346,000 357,000 354,297 357,373 368,699 368,345 376,059 377,662 383,067 388,505 $674,635 712,426 746,196 742,702 752,234 766,555 810,321 850,181 896,591 852,752 839,994 833,446 928,633 1,213,167 1,159,637 1,194,172 1,245,881 1,293,254 1,320,512 1,349,146 1,999,771 2,457,229 2,412,574 2,547,633 2,685,731 2,757,289 2,824,589 2,853,846 3,025,226 3,069,694 3,142,142 3,295,903 3,202,512 3,324,883 3,366,142 3,393,381 3,399,694 3,351,268 3,162,299 3,149,144 5,705,528 5,544,530 5,492,850 6,065,748 5,713,698 5,003,317 4,845,821 6,355,007 7,560,940 8,381,891 8,797,556 $513,202 547,845 596,922 644,448 664,453 749,936 807,782 924,410 1,021,856 1,096,640 1,127,293 1,373,354 1,614,993 1,906,290 2,137,326 2,515,295 2,692,835 2,966,334 3,142,484 3,305,711 3,513,159 4,369,862 4,470,321 4,518,795 4,749,594 5,009,319 5,260,355 5,660,574 5,610,374 5,263,245 5,286,542 3,836,904 3,889,602 4,415,126 4,873,705 5,078,529 5,147,341 5,212,811 5,566,642 6,726,967 6,558,121 5,907,866 5,864,814 6,226,553 6,510,898 6,833,037 7,192,680 8,578,311 9,875,064 10,237,584 10,570,400 Includes the 0.5 percent Local Revenue Fund, the 1.0625 percent Local Revenue Fund 2011, and the state sales tax rate of 6 percent from April 1, 2009 to June 30, 2011. Includes the 0.25 percent sales tax, effective July 1, 2004 through December 31, 2015, for repayment of economic recovery bonds. Includes passage of Proposition 30, which increased the General Fund sales tax rate from January 1, 2013 to December 31, 2016. Includes the revenue for a 1-percent surcharge on taxable incomes over $1 million, with proceeds funding mental health programs. Includes the 0.25-percent surcharge and reduced dependent exemption credit effective for tax years 2009 and 2010. Also includes the impact of Propositions 30, which establishes three additional tax brackets for tax years 2012 through 2018. In November 2016, voters approved Proposition 55, which extends the three additional tax brackets through 2030. Includes the corporation tax, corporation income tax, LLC fees, and minimum franchise tax for corporations, partnerships, LLCs, and LLPs. From 1989 to 1997, it included the unitary election fee. Includes impact of Proposition 39 beginning in tax year 2012. Proposition 99 (November 1988) increased the cigarette tax to $0.35 per pack and added an equivalent tax to other tobacco products. The Breast Cancer Act added $0.02 per pack effective 1/1/94. Proposition 10 (November 1998) increased the cigarette tax to $0.87 per pack and added the equivalent of $1.00 tax on other tobacco products. Proposition 56 (November 2016) increased the cigarette tax to $2.87 per pack, effective April 1, 2017, and added the equivalent of a $2.00 tax to other other tobacco products, effective July 1, 2017. Proposition 56 also defined electronic cigarettes as other tobacco products for purposes of taxation. Fiscal year 2020-21 includes $34 million from a proposed additional e-cigarette tax. Proposition 6, an initiative measure adopted by the voters in June 1982, repealed the inheritance and gift taxes and imposed instead an estate tax known as "the pick-up tax," because it is designed to pick up the maximum credit allowed against the federal estate tax. The federal estate tax has undergone many changes since 2001. It was reinstated in January 2013 for deaths on and after January 1, 2013. The new federal tax operates in such a way to effectively eliminate the state pick-up estate tax. Includes insurance gross premiums tax on Medi-Cal managed care plans through June 30, 2013, to provide interim funding for the Healthy Families and Medi-Cal programs. Includes a reduction for the managed care organizations tax of about $200 million per year from 2016-17 through 2018-19. Alcoholic beverage excise taxes were increased effective July 15, 1991. Motor vehicle fuel tax (gasoline) and use fuel tax (diesel and other fuels). The gasoline excise tax was 29.7 cents per gallon for the first four months of 2017-18, 41.7 cents for the next 20 months through 2018-19, 47.3 cents in 2019-20, and indexed annually for inflation thereafter. The diesel excise tax was 16 cents for the first four months of 2017-18, 36 cents through 2019-20, and annually indexed for inflation thereafter. Registration and weight fees, motor vehicle license fees, and other fees. Includes $800 million in 2017-18, $1.7 billion in both 2018-19 and 2019-20, and $1.8 billion in 2020-21 from a graduated fee at $25 to $175 per vehicle. Estimated. GOVERNOR'S BUDGET SUMMARY 2020-21 Appendix 7 SCHEDULE 4 AT 2020-21 GOVERNOR'S BUDGET POSITION AND SALARY COST ESTIMATES (Excludes Staff Benefits1/) (Dollars in Thousands) Positions Dollars Actuals 2018-19* Estimated 2019-20* 10,670.4 10,950.9 11,374.9 $1,010,126 $1,051,084 5,643.7 5,876.3 5,998.5 421,030 451,184 456,940 Transportation 39,670.2 40,316.0 40,406.4 3,850,303 3,985,265 3,999,588 Natural Resources 18,783.2 19,684.6 20,481.7 1,683,724 1,731,871 1,834,664 5,664.4 5,724.6 5,891.4 559,569 578,282 584,268 Health and Human Services 30,058.7 30,435.6 32,048.0 2,571,742 2,370,906 2,724,221 Corrections and Rehabilitation 57,140.4 57,807.8 57,087.1 5,738,548 5,315,522 5,329,335 2,490.1 2,507.7 2,514.7 193,447 194,129 199,163 297.8 289.9 305.9 30,746 28,668 29,889 Labor and Workforce Development 10,701.7 10,677.2 10,975.9 748,277 784,866 825,493 Government Operations 19,213.1 19,282.0 19,379.3 1,515,819 1,583,780 1,608,673 General Government 12,583.2 12,276.5 12,553.0 2,702,327 -231,194 1,165,661 SUBTOTAL, EXECUTIVE 212,916.9 215,829.1 219,016.8 $21,025,658 $17,844,363 $19,856,395 111,099.8 111,954.1 111,954.1 $10,588,215 $10,588,215 $10,588,215 249.4 255.0 255.0 25,522 25,522 25,522 50,200.4 51,052.1 51,052.1 3,533,136 3,721,087 3,721,087 161,549.6 163,261.2 163,261.2 $14,146,873 $14,334,824 $14,334,824 Proposed 2020-21* Actuals 2018-19* Estimated 2019-20* Proposed 2020-21* Executive Executive Business, Consumer Services, and Housing California Environmental Protection $1,098,500 Education K thru 12 Education Community Colleges/Other Higher Education University of California Hastings College of Law California State University SUBTOTAL, HIGHER EDUCATION Legislative 1/ Judicial GRAND TOTAL 1/ 750.0 754.0 754.0 $71,518 $74,868 $75,635 1,773.4 1,734.3 1,760.9 228,672 215,533 222,475 376,989.9 381,578.6 384,792.9 $35,472,721 $32,469,588 $34,489,329 The numbers of positions include 120 legislators and staff at the Legislative Counsel Bureau. The numbers do not include the Legislature's staff or the Legislative Analyst's Office. Certain benefits of the legislators are included in the dollars. * Numbers may not add or match to other statements due to rounding of budget details. Appendix 8 GOVERNOR'S BUDGET SUMMARY 2020-21 Appendix 9 GOVERNOR'S BUDGET SUMMARY 2020-21 303,602 0 State Hospitals $12,946,595 Totals, State Operations 0 0 0 0 Health Care Services (Non-Medi-Cal) Developmental Services State Hospitals Social Services 0 0 $6,727,872 $14,550 8,374 $6,254,004 $20,735 366 0 20,369 0 0 0 0 0 0 $0 $6,233,269 -2,122,101 3,414,306 2,248,737 15,549 80,314 0 344,988 12,387 0 0 0 1,666,877 157,496 271,666 2,893 $140,157 Net accruals June 30, 2019 Information per the State Controller's Office. Based upon best available information. $12,981,880 $35,285 8,740 6,176 0 0 0 0 0 0 $0 $6,713,322 4,822,956 175,248 8,541 0 0 0 912,070 140,155 0 0 0 111,557 146,105 6,294 5,464 $384,932 Accounts receivable June 30, 2019 $13,371,336 $36,343 9,002 0 27,341 0 0 0 0 0 0 $0 $13,334,993 2,781,881 3,697,241 2,324,996 16,015 82,723 0 1,294,770 157,119 0 0 0 1,831,788 312,710 286,299 8,608 $540,843 Accounts payable June 30, 2020 $6,929,708 $14,986 8,625 0 6,361 0 0 0 0 0 0 $0 $6,914,722 4,967,645 180,505 8,797 0 0 0 939,432 144,360 0 0 0 114,904 150,488 6,483 5,628 $396,480 Accounts receivable June 30, 2020 $6,441,628 $21,357 377 0 20,980 0 0 0 0 0 0 $0 $6,420,271 -2,185,764 3,516,736 2,316,199 16,015 82,723 0 355,338 12,759 0 0 0 1,716,884 162,222 279,816 2,980 $144,363 Net accruals June 30, 2020 Estimated 2019-20 Fiscal Year Accruals 2/ $13,772,475 $37,433 9,272 0 28,161 0 0 0 0 0 0 $0 $13,735,042 2,865,337 3,808,158 2,394,746 16,495 85,205 0 1,333,613 161,833 0 0 0 1,886,742 322,091 294,888 8,866 $557,068 Accounts payable June 30, 2021 $7,137,599 $15,436 8,884 0 6,552 0 0 0 0 0 0 $0 $7,122,163 5,116,674 185,920 9,061 0 0 0 967,615 148,691 0 0 0 118,351 155,003 6,677 5,797 $408,374 Accounts receivable June 30, 2021 2/ $6,634,876 $21,997 388 0 21,609 0 0 0 0 0 0 $0 $6,612,879 -2,251,337 3,622,238 2,385,685 16,495 85,205 0 365,998 13,142 0 0 0 1,768,391 167,088 288,211 3,069 $148,694 Net accruals June 30, 2021 Estimated 2020-21 Fiscal Year Accruals 2019-20 and 2020-21 typically assume a 3% growth from the prior fiscal year, except for adjustments due to major one-time issues to conform with budget treatment. Note: Numbers may not add due to rounding. 2/ 1/ TOTALS, ALL CHARACTERS Totals, Local Assistance Other Local Assistance Tax Relief 26,545 0 Other Education Other Health and Human Services 0 California Community Colleges Public Schools K-12 $0 2,700,855 General Government/Labor LOCAL ASSISTANCE 3,589,554 Government Operations 15,549 2,257,278 California State University Other Education 80,314 0 1,257,058 University of California Department of Education Education: Corrections and Rehabilitation 152,543 0 Developmental Services Other Health and Human Services 0 Health Care Services Health and Human Services: 1,778,435 Natural Resources California Environmental Protection 277,960 8,357 $525,090 Transportation Business, Consumer Services, and Housing Legislative/Judicial/Executive STATE OPERATIONS Accounts payable June 30, 2019 Actual 2018-19 Fiscal Year Accruals 1/ SCHEDULE 5A AT 2020-21 GOVERNOR'S BUDGET STATEMENT OF ESTIMATED ACCOUNTS PAYABLE AND ACCOUNTS RECEIVABLE GENERAL FUND (Dollars In Thousands) Appendix 10 GOVERNOR'S BUDGET SUMMARY 2020-21 $42,269 $44,190 UNUSED BORROWABLE RESOURCES CASH AND UNUSED BORROWABLE RESOURCES Note: Numbers may not add due to rounding. Source: State Controller's Office $0 0 0 0 $0 $43,287 $40,849 $0 0 0 0 $0 $1,133 8,486 31,229 0 $40,849 $2,438 $1,921 $1,249 8,486 32,534 0 $42,269 $0 0 0 0 $0 $517 $0 0 0 0 $0 CUMULATIVE LOAN BALANCES: Special Fund for Economic Uncertainties Budget Stabilization Account Other Internal Sources External Borrowing/RANs TOTAL, Cumulative Loan Balances AVAILABLE/BORROWABLE RESOURCES: Special Fund for Economic Uncertainties Budget Stabilization Account Other Internal Sources External Borrowing/RANs TOTAL, Available/Borrowable Resources ENDING CASH BALANCE NET TEMPORARY LOANS: Special Fund for Economic Uncertainties Budget Stabilization Account Other Internal Sources External Borrowing/RANs TOTAL, Net Temporary Loans -$3,620 EXCESS RECEIPTS/(DEFICIT) $298 553 2,131 650 2,052 84 3,417 0 0 0 483 $9,669 $29 92 2 0 346 5,936 3,501 25 116 139 $10,186 $37 446 6 0 19 5,217 818 34 0 90 $6,667 $259 -129 2,954 1,257 -488 1,004 2,812 588 0 0 2,030 $10,287 $1,921 AUG $5,541 JUL DISBURSEMENTS: State Operations: University of California Debt Service Other State Operations Social Services Medi-Cal Assistance for DHCS Other Health and Human Services Schools Teachers' Retirement Transfer to Special Fund for Economic Uncertainties Transfer to Budget Stabilization Account Other TOTAL, Disbursements BEGINNING CASH BALANCE RECEIPTS: Alcoholic Beverage Excise Tax Corporation Tax Cigarette Tax Inheritance, Gift and Estate Taxes Insurance Tax Personal Income Tax Retail Sales and Use Tax Income from Pooled Money Investments Transfer from Special Fund for Economic Uncertainties Other TOTAL, Receipts $43,790 $43,790 $1,061 3,874 0 0 $4,935 $1,061 11,152 36,511 0 $48,725 $0 $1,061 3,874 0 0 $4,935 -$7,373 $260 870 2,217 791 2,804 298 6,529 0 0 2,671 3,120 $19,559 $30 1,303 6 0 267 8,438 2,001 33 72 36 $12,186 $2,438 SEP $0 $34,719 $34,719 $1,102 10,965 0 0 $12,067 $1,102 11,152 34,531 0 $46,786 -$0 $40 7,091 0 0 $7,132 -$7,132 $332 1,027 2,849 897 1,551 780 4,772 953 0 0 632 $13,795 $31 255 6 0 12 5,126 1,032 69 0 132 $6,663 OCT $0 $34,569 $34,569 $1,047 10,957 0 0 $12,004 $1,047 11,152 34,374 0 $46,573 -$0 -$55 -8 0 0 -$63 $63 $295 721 1,665 814 1,113 317 4,294 0 0 0 526 $9,745 $6 27 4 0 102 5,956 3,519 35 55 105 $9,808 NOV $0 $34,327 $34,327 $1 9,295 2,503 0 $11,799 $1 9,295 36,831 0 $46,126 $0 -$1,047 -1,662 2,503 0 -$205 $205 $472 -622 2,796 703 2,148 416 6,491 588 0 5 460 $13,458 $46 2,094 6 0 519 6,764 1,160 36 2,909 127 $13,663 DEC SCHEDULE 5B AT 2020-21 GOVERNOR'S BUDGET ACTUAL 2018-19 FISCAL YEAR CASH FLOW GENERAL FUND (Dollars in Millions) $0 $42,244 $42,244 $1,962 5,093 0 0 $7,055 $1,962 11,157 36,180 0 $49,299 $0 $1,961 -4,202 -2,503 0 -$4,744 $4,744 $293 -113 2,216 298 1,694 493 4,946 0 3,824 0 475 $14,125 $37 579 5 0 2 16,359 1,592 62 0 232 $18,869 JAN $0 $38,650 $38,650 $1,962 9,717 0 0 $11,679 $1,962 11,157 37,210 0 $50,329 -$0 $0 4,624 0 0 $4,624 -$4,624 $308 392 1,934 898 1,326 208 4,519 0 0 0 571 $10,156 $18 258 5 0 2 1,393 3,760 23 0 72 $5,531 FEB $0 $36,273 $36,273 $1,962 11,157 1,330 0 $14,449 $1,962 11,157 37,603 0 $50,722 $0 $0 1,440 1,330 0 $2,770 -$2,770 $286 676 1,624 553 2,756 353 6,170 0 0 0 197 $12,615 $23 1,408 5 0 174 6,211 1,859 63 0 103 $9,846 MAR $0 $46,278 $46,278 $1,962 634 0 0 $2,596 $1,962 11,157 35,754 0 $48,874 $0 $0 -10,523 -1,330 0 -$11,853 $11,853 $328 1,113 2,645 896 1,527 359 4,385 953 0 0 238 $12,443 $22 3,466 4 0 646 19,168 799 67 0 124 $24,296 APR $0 $46,262 $46,262 $1,962 518 0 0 $2,480 $1,962 11,157 35,623 0 $48,742 -$0 $0 -116 0 0 -$116 $116 $541 410 2,399 216 1,352 26 4,276 0 0 0 185 $9,404 $50 375 2 0 158 5,186 3,616 48 0 86 $9,520 MAY $0 $56,506 $51,108 $0 0 0 0 $0 $2,063 11,157 37,888 0 $51,108 $5,398 -$1,962 -518 0 0 -$2,480 $7,878 $27 -67 1,523 664 1,636 212 5,956 0 0 0 549 $10,499 $24 3,488 9 0 473 12,559 1,017 51 -101 858 $18,378 JUN $56,506 $51,108 $0 0 0 0 $0 $2,063 11,157 37,888 0 $51,108 $5,398 $0 0 0 0 $0 -$142 $3,700 4,829 26,953 8,637 19,471 4,549 58,568 3,082 3,824 2,676 9,466 $145,755 $353 13,793 59 0 2,721 98,313 24,674 544 3,050 2,106 $145,613 $5,541 TOTAL GOVERNOR'S BUDGET SUMMARY 2020-21 Appendix 11 Note: Numbers may not add due to rounding. $47,202 $47,202 $44,983 $44,983 UNUSED BORROWABLE RESOURCES Cash and Unused Borrowable Resources $2,061 11,157 41,491 0 $54,709 $0 -$2 251 0 0 $249 $2,061 5,446 0 0 $7,508 $2,063 11,157 39,022 0 $52,243 $0 $2,063 5,196 0 0 $7,259 -$249 $2,063 5,196 0 0 $7,259 CUMULATIVE LOAN BALANCES: Special Fund for Economic Uncertainties Budget Stabilization Account Other Internal Sources Revenue Anticipation Notes TOTAL, Cumulative Loan Balances AVAILABLE/BORROWABLE RESOURCES: Special Fund for Economic Uncertainties Budget Stabilization Account Other Internal Sources Revenue Anticipation Notes TOTAL, Available/Borrowable Resources ENDING CASH BALANCE NET TEMPORARY LOANS: Special Fund for Economic Uncertainties Budget Stabilization Account Other Internal Sources Revenue Anticipation Notes TOTAL, Net Temporary Loans -$12,657 EXCESS RECEIPTS/(DEFICIT) $273 561 2,457 744 755 186 3,547 0 0 0 1,615 $10,138 $36 279 6 0 180 5,818 3,384 42 2 143 $9,890 $47 501 8 0 26 6,274 2,328 76 0 200 $9,460 $274 -89 10,101 1,178 2,167 862 3,109 643 0 0 3,872 $22,117 $0 AUG JUL $5,398 DISBURSEMENTS: State Operations: University of California Debt Service Other State Operations Social Services Medi-Cal Assistance for DHCS Other Health Care Services Schools Teachers' Retirement Transfer to Special Fund for Economic Uncertainties Transfer to Budget Stabilization Account Other TOTAL, Disbursements BEGINNING CASH BALANCE RECEIPTS: Alcoholic Beverage Excise Tax Corporation Tax Cigarette Tax Inheritance, Gift and Estate Taxes Insurance Tax Personal Income Tax Retail Sales and Use Tax Income from Pooled Money Investments Transfer from Special Fund for Economic Uncertainties Other TOTAL, Receipts $0 $44,603 $44,603 $2,061 10,177 0 0 $12,238 $2,061 16,516 38,264 0 $56,842 $0 $0 4,731 0 0 $4,731 -$4,731 $330 713 2,359 1,165 2,083 565 6,979 0 0 2,748 610 $17,552 $36 1,586 4 0 502 8,338 2,149 69 0 137 $12,821 SEP $0 $34,929 $34,929 $2,061 16,516 1,870 0 $20,448 $2,061 16,516 36,799 0 $55,377 $0 $0 6,339 1,870 0 $8,209 -$8,210 $301 1,516 3,396 1,268 2,049 941 4,667 1,018 0 0 1,084 $16,240 $32 286 4 0 33 6,434 1,035 89 0 118 $8,031 OCT $0 $35,765 $35,765 $2,061 16,516 3,588 0 $22,166 $2,061 16,516 39,354 0 $57,932 $0 $0 0 1,718 0 $1,718 -$1,718 $294 473 2,295 700 1,536 383 4,235 0 0 0 323 $10,239 $27 72 2 0 219 5,069 3,003 41 0 88 $8,521 NOV $0 $31,633 $31,633 $2,061 16,516 3,988 0 $22,566 $2,061 16,516 35,621 0 $54,199 $0 $0 0 399 0 $399 -$399 $483 -383 2,987 1,166 2,048 467 6,708 643 0 0 122 $14,241 $33 2,734 6 0 543 8,441 1,764 49 0 271 $13,841 DEC SCHEDULE 5C AT 2020-21 GOVERNOR'S BUDGET ESTIMATED 2019-20 FISCAL YEAR CASHFLOW GENERAL FUND (Dollars in Millions) $0 $38,060 $38,060 $1,412 11,202 0 0 $12,613 $1,412 16,516 32,745 0 $50,673 $0 -$650 -5,315 -3,988 0 -$9,953 $9,952 $440 -127 2,427 -157 2,067 414 4,527 0 0 0 576 $10,167 $31 568 5 0 2 16,839 1,681 50 650 294 $20,120 JAN $0 $35,032 $35,032 $1,412 15,516 0 0 $16,927 $1,412 16,516 34,031 0 $51,959 $0 $0 4,314 0 0 $4,314 -$4,314 $299 381 2,196 585 1,312 711 4,487 0 0 0 1,009 $10,980 $30 251 5 0 2 2,183 3,969 18 0 208 $6,666 FEB $0 $29,650 $29,650 $1,412 16,516 3,964 0 $21,892 $1,412 16,516 33,614 0 $51,542 $0 $0 1,001 3,964 0 $4,965 -$4,965 $299 674 1,894 530 2,375 755 6,641 0 0 0 719 $13,887 $25 1,504 6 0 182 4,940 2,023 51 0 191 $8,922 MAR $0 $38,780 $38,780 $1,412 11,873 0 0 $13,284 $1,412 16,516 34,136 0 $52,064 $0 $0 -4,644 -3,964 0 -$8,608 $8,608 $299 952 3,089 977 2,587 423 4,556 1,018 0 0 1,088 $14,989 $32 3,174 4 0 675 18,418 851 48 0 395 $23,597 APR $0 $39,756 $39,756 $1,412 11,698 0 0 $13,110 $1,412 16,516 34,938 0 $52,866 $0 $0 -174 0 0 -$174 $174 $561 387 2,628 463 1,608 222 4,352 0 0 0 432 $10,653 $29 602 2 0 165 5,938 3,784 34 0 274 $10,828 MAY $0 $46,787 $46,787 $1,412 3,755 0 0 $5,167 $1,412 16,516 34,026 0 $51,954 $0 $0 -7,943 0 0 -$7,943 $7,943 $35 -505 2,742 422 2,375 174 6,032 1 0 0 645 $11,921 $36 3,662 8 0 494 13,687 1,147 36 0 792 $19,864 JUN $46,787 $46,787 $1,412 3,755 0 0 $5,167 $1,412 16,516 34,026 0 $51,954 $0 $1,412 3,755 0 0 $5,167 -$10,565 $3,888 4,553 38,571 9,041 22,962 6,101 59,840 3,323 0 2,748 12,097 $163,124 $394 15,219 60 0 3,023 102,379 27,118 603 652 3,111 $152,559 TOTAL $5,398 Appendix 12 GOVERNOR'S BUDGET SUMMARY 2020-21 Note: Numbers may not add due to rounding. $46,145 $46,145 $42,432 $42,432 UNUSED BORROWABLE RESOURCES Cash and Unused Borrowable Resources $1,412 16,516 36,621 0 $54,549 $1,412 6,992 0 0 $8,404 $1,412 16,516 33,818 0 $51,746 $0 $0 -911 0 0 -$911 $911 $1,412 7,903 0 0 $9,314 CUMULATIVE LOAN BALANCES: Special Fund for Economic Uncertainties Budget Stabilization Account Other Internal Sources Revenue Anticipation Notes TOTAL, Cumulative Loan Balances AVAILABLE/BORROWABLE RESOURCES: Special Fund for Economic Uncertainties Budget Stabilization Account Other Internal Sources Revenue Anticipation Notes TOTAL, Available/Borrowable Resources $0 $0 4,148 0 0 $4,148 NET TEMPORARY LOANS: Special Fund for Economic Uncertainties Budget Stabilization Account Other Internal Sources Revenue Anticipation Notes TOTAL, Net Temporary Loans ENDING CASH BALANCE -$4,148 EXCESS RECEIPTS/(DEFICIT) $324 568 2,342 734 1,764 93 3,268 0 0 0 670 $9,763 $27 278 2 0 397 6,209 3,540 36 0 185 $10,674 $46 533 6 0 22 6,082 2,380 65 0 207 $9,341 $348 -103 3,713 1,365 2,265 773 2,832 704 0 0 1,592 $13,489 $0 AUG $0 JUL DISBURSEMENTS: State Operations: University of California Debt Service Other State Operations Social Services Medi-Cal Assistance for DHCS Other Health Care Services Schools Teachers' Retirement Transfer to Special Fund for Economic Uncertainties Transfer to Budget Stabilization Account Other TOTAL, Disbursements BEGINNING CASH BALANCE RECEIPTS: Alcoholic Beverage Excise Tax Corporation Tax Cigarette Tax Inheritance, Gift and Estate Taxes Insurance Tax Personal Income Tax Retail Sales and Use Tax Income from Pooled Money Investments Transfer from Special Fund for Economic Uncertainties Other TOTAL, Receipts $0 $44,380 $44,380 $1,412 9,974 0 0 $11,386 $1,412 17,977 36,377 0 $55,766 $0 $0 2,982 0 0 $2,982 -$2,982 $324 725 2,497 818 2,462 112 6,435 0 0 1,461 1,240 $16,074 $34 1,463 6 0 306 8,825 2,262 59 0 137 $13,092 SEP $0 $36,937 $36,937 $1,412 16,972 0 0 $18,384 $1,412 17,977 35,932 0 $55,321 $0 $0 6,998 0 0 $6,998 -$6,998 $324 1,542 3,128 1,084 2,217 789 4,364 1,091 0 0 684 $15,223 $35 296 6 0 14 7,516 117 65 0 176 $8,225 OCT $0 $35,131 $35,131 $1,412 17,977 750 0 $20,139 $1,412 17,977 35,881 0 $55,270 $0 $0 1,005 750 0 $1,755 -$1,755 $324 478 1,766 857 1,798 544 5,338 0 0 0 367 $11,472 $27 259 4 0 117 5,267 3,097 33 0 912 $9,716 NOV $0 $33,851 $33,851 $1,412 17,977 1,309 0 $20,698 $1,412 17,977 35,160 0 $54,549 $0 $0 0 559 0 $559 -$559 $551 -491 3,110 733 2,451 469 6,753 704 0 0 747 $15,027 $33 3,003 6 0 595 8,751 1,856 34 0 190 $14,468 DEC SCHEDULE 5D AT 2020-21 GOVERNOR'S BUDGET ESTIMATED 2020-21 FISCAL YEAR CASHFLOW GENERAL FUND (Dollars in Millions) $0 $43,441 $43,441 $1,641 10,135 0 0 $11,776 $1,641 17,977 35,598 0 $55,216 $0 $229 -7,843 -1,309 0 -$8,923 $8,923 $324 -129 2,443 240 2,651 381 4,630 0 229 0 437 $11,206 $32 553 5 0 3 17,520 1,724 47 0 244 $20,128 JAN $0 $39,574 $39,574 $1,641 14,488 0 0 $16,129 $1,641 17,977 36,085 0 $55,703 $0 $0 4,354 0 0 $4,354 -$4,354 $324 399 2,408 714 1,699 754 4,629 0 0 0 175 $11,102 $30 245 5 0 2 2,107 4,170 17 0 173 $6,749 FEB $0 $34,136 $34,136 $1,641 17,977 1,774 0 $21,392 $1,641 17,977 35,910 0 $55,528 $0 $0 3,489 1,774 0 $5,263 -$5,263 $324 705 1,681 781 2,720 806 6,698 0 0 0 560 $14,275 $25 1,705 5 0 199 4,789 2,081 47 0 161 $9,012 MAR $0 $42,607 $42,607 $1,641 10,945 0 0 $12,586 $1,641 17,977 35,574 0 $55,192 $0 $0 -7,033 -1,774 0 -$8,807 $8,807 $324 1,025 2,970 1,015 1,524 436 4,603 1,091 0 0 303 $13,291 $32 3,278 4 0 740 16,799 875 45 0 325 $22,098 APR $0 $41,621 $41,621 $1,641 12,081 0 0 $13,722 $1,641 17,977 35,725 0 $55,343 $0 $0 1,136 0 0 $1,136 -$1,136 $634 415 2,629 489 1,636 202 5,919 0 0 0 277 $12,201 $30 641 2 0 181 6,099 3,899 32 0 181 $11,065 MAY $0 $47,905 $47,905 $1,641 4,607 0 0 $6,248 $1,641 17,977 34,535 0 $54,153 $0 $0 -7,474 0 0 -$7,474 $7,474 $4 -468 2,694 854 2,629 173 6,600 1 0 0 476 $12,963 $38 3,727 7 0 541 14,124 1,186 34 0 780 $20,437 JUN $47,905 $47,905 $1,641 4,607 0 0 $6,248 $1,641 17,977 34,535 0 $54,153 $0 $229 852 0 0 $1,081 -$1,081 $4,129 4,666 31,381 9,684 25,816 5,530 62,069 3,591 229 1,461 7,531 $156,087 $389 15,981 58 0 3,117 104,088 27,187 514 0 3,671 $155,005 TOTAL $0 SCHEDULE 6 AT 2020-21 GOVERNOR'S BUDGET SUMMARY OF STATE POPULATION, EMPLOYEES, AND EXPENDITURES Population1/ (Thousands) Employees 1950-51 1951-52 1952-53 1953-54 1954-55 10,643 11,130 11,638 12,101 12,517 1955-56 1956-57 1957-58 1958-59 1959-60 Employees per 1,000 Personal Revenue General Fund Total (Millions) (Millions) Expenditures General Population Income3/ (Billions) Fund4/ Total5/ (Millions) (Millions) 61,000 63,860 65,720 69,928 74,099 5.7 5.7 5.6 5.8 5.9 $20.0 23.1 25.7 27.5 28.4 $672 734 774 798 879 $994 1,086 1,151 1,271 1,434 $587 635 714 809 852 13,004 13,581 14,177 14,741 15,288 77,676 88,299 98,015 101,982 108,423 6.0 6.5 6.9 6.9 7.1 31.3 34.2 36.8 38.6 42.4 1,005 1,079 1,111 1,210 1,491 1,578 1,834 1,751 1,925 2,198 1960-61 1961-62 1962-63 1963-64 1964-65 15,863 16,412 16,951 17,530 18,026 115,737 122,339 128,981 134,721 143,896 7.3 7.5 7.6 7.7 8.0 44.8 47.5 51.3 54.8 59.4 1,598 1,728 1,866 2,137 2,245 1965-66 1966-67 1967-68 1968-69 1969-70 18,464 18,831 19,175 19,432 19,745 151,199 158,404 162,677 171,655 179,583 8.2 8.4 8.5 8.8 9.1 63.4 68.9 74.2 81.4 89.3 1970-71 1971-72 1972-73 1973-74 1974-75 20,039 20,346 20,585 20,869 21,174 181,581 181,912 188,460 192,918 203,548 9.1 8.9 9.2 9.2 9.6 1975-76 1976-77 1977-78 1978-79 1979-80 21,538 21,936 22,352 22,836 23,257 206,361 213,795 221,251 218,530 220,193 1980-81 1981-82 1982-83 1983-84 1984-85 23,782 24,278 24,805 25,337 25,816 1985-86 1986-87 1987-88 1988-89 1989-90 Expenditures per Capita General Fund4/ Total5/ $1,006 1,068 1,177 1,381 1,422 $55.15 57.05 61.35 66.85 68.07 923 1,030 1,147 1,246 1,435 1,533 1,732 1,891 1,932 2,086 2,338 2,451 2,668 3,057 3,295 1,678 1,697 1,881 2,064 2,345 2,509 2,895 3,682 4,136 4,330 3,581 4,073 4,927 5,450 5,743 96.1 102.3 112.2 124.0 138.8 4,534 5,395 5,780 6,978 8,630 9.6 9.7 9.9 9.6 9.5 153.7 171.9 191.6 218.6 249.3 225,567 228,813 228,489 226,695 229,845 9.5 9.4 9.2 8.9 8.9 26,403 27,052 27,717 28,393 29,142 229,641 232,927 237,761 248,173 254,589 1990-91 1991-92 1992-93 1993-94 1994-95 29,828 30,459 30,987 31,314 31,524 1995-96 1996-97 1997-98 1998-99 1999-00 Expenditures per $100 of Personal Income General Fund4/ Total5/ $94.52 95.96 101.13 114.12 113.61 $2.94 2.75 2.78 2.94 3.00 $5.03 4.62 4.58 5.02 5.01 70.98 75.84 80.91 84.53 93.86 117.89 127.53 133.39 131.06 136.45 2.95 3.01 3.12 3.23 3.38 4.90 5.06 5.14 5.01 4.92 2,525 2,406 2,703 3,182 3,652 105.78 103.40 110.97 117.74 130.09 159.18 146.60 159.46 181.52 202.60 3.75 3.57 3.67 3.77 3.95 5.64 5.07 5.27 5.81 6.15 2,580 3,017 3,273 3,909 4,456 4,059 4,659 5,014 5,673 6,302 139.73 160.21 170.69 201.16 225.68 219.83 247.41 261.49 291.94 319.17 4.07 4.38 4.41 4.80 4.99 6.40 6.76 6.76 6.97 7.06 5,919 6,897 7,366 8,715 10,405 4,854 5,027 5,616 7,299 8,349 6,556 6,684 7,422 9,311 10,276 242.23 247.08 272.82 349.75 394.30 327.16 328.52 360.55 446.16 485.31 5.05 4.91 5.01 5.89 6.02 6.82 6.53 6.61 7.51 7.40 9,639 11,381 13,695 15,219 17,985 11,567 13,463 15,962 17,711 20,919 9,518 10,467 11,686 16,251 18,534 11,452 12,632 14,003 18,745 21,488 441.92 477.16 522.82 711.64 796.92 531.71 575.86 626.48 820.85 923.94 6.19 6.09 6.10 7.43 7.43 7.45 7.35 7.31 8.58 8.62 283.9 319.2 341.1 368.2 411.3 19,023 20,960 21,233 23,809 26,536 22,104 23,601 24,291 27,626 31,570 21,105 21,693 21,751 22,869 25,722 24,511 25,022 25,330 26,797 30,961 887.44 893.53 876.88 902.59 996.36 1,030.65 1,030.65 1,021.17 1,057.62 1,199.30 7.43 6.80 6.38 6.21 6.25 8.63 7.84 7.43 7.28 7.53 8.7 8.6 8.6 8.7 8.7 443.6 475.0 512.4 555.5 597.5 28,072 32,519 32,534 36,953 38,750 33,558 37,767 38,773 43,322 46,453 28,841 31,469 33,021 35,897 39,456 34,977 38,079 40,452 44,634 48,594 1,092.34 1,163.28 1,191.36 1,264.29 1,353.92 1,324.74 1,407.62 1,459.47 1,572.01 1,667.49 6.50 6.63 6.44 6.46 6.60 7.88 8.02 7.89 8.03 8.13 260,622 261,713 260,939 265,035 269,004 8.7 8.6 8.4 8.5 8.5 640.5 662.3 695.0 711.3 738.3 38,214 42,026 40,946 40,095 42,710 47,024 53,117 52,526 52,384 54,942 40,264 43,327 40,948 38,958 41,961 51,446 56,280 56,480 53,083 54,613 1,349.87 1,422.47 1,321.46 1,244.11 1,331.08 1,724.76 1,847.73 1,822.70 1,695.18 1,732.43 6.29 6.54 5.89 5.48 5.68 8.03 8.50 8.13 7.46 7.40 31,712 31,963 32,453 32,863 33,419 271,076 271,966 264,551 282,860 296,076 8.5 8.5 8.2 8.6 8.9 776.5 825.7 879.2 963.1 1,027.7 46,296 49,220 54,973 58,615 71,931 59,266 62,831 69,424 74,281 87,536 45,393 49,088 52,874 57,827 66,494 59,870 64,523 68,528 75,260 84,864 1,431.41 1,535.78 1,629.25 1,759.64 1,989.71 1,887.93 2,018.68 2,111.61 2,290.11 2,539.39 5.85 5.95 6.01 6.00 6.47 7.71 7.81 7.79 7.81 8.26 2000-01 2001-02 2002-03 2003-04 2004-05 34,001 34,513 34,938 35,389 35,753 311,239 322,277 321,394 316,860 313,684 9.2 9.3 9.2 9.0 8.8 1,135.3 1,174.5 1,193.4 1,244.4 1,321.6 71,428 72,239 80,564 76,774 82,209 88,419 89,780 95,794 96,365 104,462 78,053 76,752 77,482 78,345 79,804 96,382 99,220 106,779 104,223 107,591 2,295.61 2,223.86 2,217.70 2,213.82 2,232.09 2,834.68 2,874.86 3,056.24 2,945.07 3,009.29 6.88 6.53 6.49 6.30 6.04 8.49 8.45 8.95 8.38 8.14 2005-06 2006-07 2007-08 2008-09 2009-10 35,986 36,247 36,553 36,856 37,077 317,593 335,384 343,118 350,609 345,777 8.8 9.3 9.4 9.5 9.3 1,396.2 1,499.5 1,564.4 1,596.3 1,536.4 93,427 95,415 102,574 82,772 87,041 118,331 120,663 127,194 106,319 109,989 91,592 101,413 102,986 90,940 87,237 119,612 129,968 138,065 122,386 117,001 2,545.21 2,797.83 2,817.44 2,467.44 2,352.86 3,323.85 3,585.62 3,777.12 3,320.65 3,155.62 6.56 6.76 6.58 5.70 5.68 8.57 8.67 8.83 7.67 7.62 2010-11 2011-12 2012-13 2013-14 2014-15 37,339 37,676 38,038 38,370 38,729 371,959 356,808 346,321 353,979 360,859 10.0 9.5 9.1 9.2 9.3 1,579.1 1,683.2 1,805.2 1,856.6 1,939.5 93,489 87,071 99,915 102,675 111,318 122,463 118,792 137,242 142,860 157,875 91,549 86,404 96,562 99,838 112,974 130,981 126,361 141,001 142,810 160,294 2,451.83 2,293.34 2,538.57 2,601.98 2,917.04 3,507.89 3,353.89 3,706.85 3,721.92 4,138.86 5.80 5.13 5.35 5.38 5.82 8.29 7.51 7.81 7.69 8.26 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 39,060 39,321 39,612 39,818 39,959 40,158 350,680 361,743 368,520 376,990 381,579 384,793 9.0 9.2 9.3 9.5 9.5 9.6 2,103.7 2,212.7 2,364.1 2,514.1 2,633.9 2,757.0 115,500 119,982 131,116 139,379 146,486 151,635 161,759 167,036 188,115 200,974 209,358 211,931 113,984 119,291 124,756 141,861 149,749 153,083 160,209 165,880 177,316 205,607 217,062 222,193 2,918.18 3,033.77 3,149.45 3,562.74 3,747.57 3,812.02 4,101.61 4,218.61 4,476.32 5,163.67 5,432.12 5,532.97 5.42 5.39 5.28 5.64 5.69 5.55 7.62 7.50 7.50 8.18 8.24 8.06 Year 2/ 1/ Population as of July 1, the beginning of the fiscal year. Beginning with the 2010-11 fiscal year, "employees" displays latest authorized/proposed number of positions, as opposed to prior years that show personnel years. Only the last three fiscal years have been updated. 4/ Includes Special Accounts in General Fund from 1973-74 to 1976-77. 5/ Expenditures include payments from General Fund, Special Funds and Selected Bond Funds beginning in 1963-64. 2/ 3/ GOVERNOR'S BUDGET SUMMARY 2020-21 Appendix 13 Appendix 14 GOVERNOR'S BUDGET SUMMARY 2020-21 -- -- --- 4115460-Road Improvement Fee (Zero Emission Vehicles) 4115600-Motor Vehicles - Other Fees -------------- 4120700-Cannabis Licensing Fees 4120800-Corporation Fees - Domestic Corporations 4121000-Corporation Fees - Foreign Corporations 4121200-Delinquent Fees 4121600-Elevator and Boiler Inspection Fees 4121800-Employment Agency Filing Fees 4122000-Employment Agency License Fees 4122200-Energy Resources Surcharge 4122400-Environmental and Hazardous Waste Fees 4122800-Filing Financing Statements 4123000-Fish and Game - Licenses, Tags, and Permits 4123200-Fish and Game - Taxes 4123400-Genetic Disease Testing Fees 120 -- 4120600-Candidate Filing Fee -- 133,169 2,406 113,624 2,358 54,920 575,885 6,406 548 25,570 8,073 1,254 10,990 15,251 -- 5,609 1,345,701 3,671,203 $33,830,626 -$141,952,298 4120400-Building Construction Filing Fees (Physically Handicapped) 7,156,787 925,818 2,358,678 1,666,256 6,432,835 -- 4120000-Beverage Container Redemption Fees REGULATORY TAXES AND LICENSES MINOR REVENUES 4117400-Retail Sales and Use Tax - 2011 Realignment 4117600-Retail Sales and Use Tax - 1991 Realignment TOTALS, MAJOR TAXES AND LICENSES 26,127,759 268,559 -- 4115450-Transportation Improvement Fee 4117000-Retail Sales and Use Tax -- -- 98,599,337 4,599,275 2 4115300-Motor Vehicles - License (In-Lieu) Fees 4115400-Motor Vehicles - Registration Fees 4116200-Personal Income Tax 2,935,170 -- 4115200-Motor Vehicles - Fuel Tax (Gasoline) 1,124,876 -- 4115100-Motor Vehicles - Fuel Tax (Diesel) 338,007 1 1,888 1,071 3,369 -- 32,547 -- 2,015,330 298,957 Special Funds Actuals 2018-19 4115000-Motor Vehicles - Driver's License Fees 313 -- 4114000-Mobilehome In-Lieu Tax -- 4113800-Lien Sale Application Fees 2,722,787 -- 14,062,543 61,894 -- 210,389 $167,273 General Fund 4113600-Jet Fuel Tax 4113400-Insurance Gross Premiums Tax 4113000-Identification Card Fees 4110800-Corporation Tax 4110400-Cigarette Tax 4110300-Cannabis Excise & Cultivation Tax 4110250-Excise Tax - Spirits 4110200-Excise Tax - Beer and Wine MAJOR TAXES AND LICENSES Sources 2,077,224 298,957 210,389 $167,273 133,169 2,406 113,624 2,358 54,920 575,885 6,406 548 25,570 8,073 1,254 10,990 15,251 120 5,609 1,345,701 $175,782,924 3,671,203 7,156,787 27,053,577 100,958,015 268,559 -- 1,666,256 4,599,275 2,935,172 6,432,835 1,124,876 338,008 2,201 1,071 3,369 2,722,787 32,547 14,062,543 Total -- -- -- -- -- -- -- -- -- -- -- -- -- 52 -- -- $147,638,023 -- -- 27,185,012 101,681,968 -- -- -- -- -- -- -- -- 238 -- -- 3,022,936 -- 15,304,879 59,923 -- 214,669 $168,398 General Fund -- -- 133,052 2,484 112,710 2,476 55,101 709,154 5,936 548 29,052 8,447 1,294 10,265 -- -- 18,893 1,352,912 $35,480,028 3,855,237 7,498,144 916,246 2,400,364 275,061 -- 1,534,739 4,761,792 3,014,905 7,169,409 1,209,286 381,948 1,888 1,071 3,229 -- 32,692 -- 1,944,962 479,055 Special Funds Estimated 2019-20 SCHEDULE 8 AT 2020-21 GOVERNOR'S BUDGET COMPARATIVE STATEMENT OF REVENUES (Dollars in Thousands) 2,004,885 479,055 214,669 $168,398 133,052 2,484 112,710 2,476 55,101 709,154 5,936 548 29,052 8,447 1,294 10,265 -- 52 18,893 1,352,912 $183,118,051 3,855,237 7,498,144 28,101,258 104,082,332 275,061 -- 1,534,739 4,761,792 3,014,905 7,169,409 1,209,286 381,948 2,126 1,071 3,229 3,022,936 32,692 15,304,879 Total -- -- -- -- -- -- -- -- -- -- -- -- -- 95 -- -- $150,690,907 -- -- 28,242,790 102,877,717 -- -- -- -- -- -- -- -- 163 -- -- 3,116,772 -- 16,006,932 58,028 -- 218,989 $169,516 General Fund -- -- 148,326 2,484 116,795 2,476 55,353 708,116 5,781 548 29,052 8,791 1,294 10,265 -- -- 18,935 1,342,867 $36,817,995 3,987,242 7,800,647 964,441 2,376,132 282,701 10,899 1,642,420 4,942,100 3,104,186 7,533,173 1,261,187 385,767 1,888 1,071 3,196 -- 32,838 -- 1,937,735 550,372 Special Funds Estimated 2020-21 1,995,763 550,372 218,989 $169,516 148,326 2,484 116,795 2,476 55,353 708,116 5,781 548 29,052 8,791 1,294 10,265 -- 95 18,935 1,342,867 $187,508,902 3,987,242 7,800,647 29,207,231 105,253,849 282,701 10,899 1,642,420 4,942,100 3,104,186 7,533,173 1,261,187 385,767 2,051 1,071 3,196 3,116,772 32,838 16,006,932 Total Appendix 15 GOVERNOR'S BUDGET SUMMARY 2020-21 33,822 53,013 13,994 66,894 66,748 --------- 4124000-Insurance Company - Examination Fees 4124200-Insurance Company - License Fees and Penalties 4124400-Insurance Company - General Fees 4124600-Insurance Company - Proposition 103 Fees 4124800-Insurance Fraud Assessment Automobile 4125000-Insurance Fraud Assessment General 4125200-Insurance Fraud Assessment Workers Compensation 4125400-Liquor License Fees ------- 4127200-Real Estate - License Fees 4127300-Refinery Fees 4127400-Renewal Fees 4128000-Subdivision Filing Fees 4128400-Teacher Credential Fees 4128600-Teacher Examination Fees 458 ----26,299 4132000-Fingerprint Identification Card Fees 4132500-Fish and Game Fines 4133000-Fish and Game Fines - Additional Assessments 4134000-Local Agencies - Interest on Loans 4134500-Local Agencies - Cost Recoveries 4136000-Open Space Cancellation Fee Deferred Taxes 4135000-Local Agencies - Miscellaneous Revenue 4135500-Narcotic Fines 57 -- 4131500-Felony Conviction Penalties -5,456 2,092 632 1,285,020 164,893 14,105 513 97,482 47,383 17,035 4131000-Crimes of Public Offense Fines 101,865 -58 4130000-Architecture Public Building Fees REVENUE FROM LOCAL AGENCIES $12,074,283 146,022 $49,850 -- Totals, REGULATORY TAXES AND LICENSES 795,776 5,644 4129400-Other Regulatory Licenses and Permits 4129600-Other Regulatory Taxes 24,220 7,796,879 1,183 -- -- 5,395 26,352 8,788 334,638 4,293 4129200-Other Regulatory Fees 4129000-Other Fees and Licenses 31,975 -- 4128740-Trailer Coach License (In Lieu) Fees 1 4,333 -- 38,672 194,185 -- 4126600-Public Utilities Commission - Quarterly Fees 4126800-Public Utilities Commission - Penalties on Quarterly Fees 4127000-Real Estate - Examination Fees -456 -- 4126400-Processing Fee 9,936 -- 4126200-Private Rail Car Tax 960 -- 4126000-Off Highway Vehicle Fees 21,316 1,823 -- 4125600-New Motor Vehicle Dealer License Fee 4125800-Notary Public License Fees 34,883 59,504 25,048 1 -- -- 14,503 4123800-Industrial Homework Fees 987 Special Funds Actuals 2018-19 5 General Fund 4123740-Horse Racing Miscellaneous 4123720-Horse Racing Licenses Sources 146,022 801,420 7,798,062 24,220 31,975 5,395 26,352 8,788 334,638 4,293 38,672 4,333 1 194,185 456 9,936 21,316 960 1,823 66,748 66,894 13,994 53,013 33,822 34,883 59,504 25,048 1 5 15,490 6,088 2,092 1,449,913 40,404 458 57 513 97,482 47,383 17,093 101,865 $12,124,133 Total -- -- -- -- -- -- -- -- -- -- 9,015 -- -- -- -- -- -- -- -- -- -- -- -- 5 987 -- 1,000 165,143 26,299 -- -- -- -- -- 58 -- $51,550 -- 4,944 1,558 -- 34,989 General Fund 3,300 -- 1,504,223 14,105 416 57 513 97,482 50,000 10,000 89,694 $13,713,032 156,194 844,917 8,976,173 28,540 -- 5,421 26,484 8,328 390,871 4,293 39,533 4,161 2 352,200 369 -- 22,574 1,333 1,959 84,793 72,644 13,802 53,748 35,253 38,493 69,112 24,719 1 -- 14,791 Special Funds Estimated 2019-20 SCHEDULE 8 AT 2020-21 GOVERNOR'S BUDGET COMPARATIVE STATEMENT OF REVENUES (Dollars in Thousands) 156,194 849,861 8,977,731 28,540 34,989 5,421 26,484 8,328 390,871 4,293 39,533 4,161 2 352,200 369 9,015 22,574 1,333 1,959 84,793 72,644 13,802 53,748 35,253 38,493 69,112 24,719 1 5 15,778 3,300 1,000 1,669,366 40,404 416 57 513 97,482 50,000 10,058 89,694 $13,764,582 Total -- -- -- -- -- -- -- -- -- -- 9,015 -- -- -- -- -- -- -- -- -- -- -- -- 5 987 -- 1,000 160,431 26,299 -- -- -- -- -- 58 -- $54,892 -- 4,945 1,558 -- 38,287 General Fund 3,300 -- 949,931 14,105 380 57 513 97,482 50,000 10,000 98,477 $11,941,067 156,451 914,207 7,146,681 30,429 -- 5,449 26,616 8,328 424,112 4,293 41,100 4,161 2 269,500 369 -- 22,500 1,333 1,959 92,549 78,508 14,050 54,366 37,695 38,650 70,943 28,932 1 -- 16,800 Special Funds Estimated 2020-21 156,451 919,152 7,148,239 30,429 38,287 5,449 26,616 8,328 424,112 4,293 41,100 4,161 2 269,500 369 9,015 22,500 1,333 1,959 92,549 78,508 14,050 54,366 37,695 38,650 70,943 28,932 1 5 17,787 3,300 1,000 1,110,362 40,404 380 57 513 97,482 50,000 10,058 98,477 $11,995,959 Total Appendix 16 GOVERNOR'S BUDGET SUMMARY 2020-21 -- 2 2 --- 41716-External Revenue 1,000 9,152 68,347 10,681 4171400-Escheat - Unclaimed Checks, Warrants, Bonds, and Coupons 4171500-Escheat - Unclaimed Property -- 4171300-Donations 561,661 163,563 44,866 3 342 9 -- 130,790 3,207,446 583 4171200-Court Filing Fees and Surcharges 4171000-Cost Recoveries - Delinquent Receivables 4171100-Cost Recoveries - Other -494 8,219 -- 4170600-Carbon Allowances Auction Proceeds 4170700-Civil and Criminal Violation Assessment 4170800-Confiscated Property Sales -- $498,207 $672,126 455,380 496,497 24,529 4170400-Capital Asset Sales Proceeds 356 924 647,597 430 -- $152,366 -- -- $161,617 139,732 4170100-Abandoned Property Revenue MISCELLANEOUS 4162000-Investment Income - Pooled Money Investments 4163000-Investment Income - Surplus Money Investments Totals, INVESTMENT INCOME 4160000-Investment Income - Condemnation Deposits Fund 4161000-Investment Income - Other INVESTMENT INCOME Totals, USE OF PROPERTY AND MONEY 4155000-Royalties - State Lands 29,861 72,763 18,838 -- -- 335 4154000-Royalties - Federal Land 23,958 1,465 4151500-Miscellaneous Revenue - Use of Property and Money 4152000-Oil and Gas Leases - 1 Percent Revenue, Cities, and Counties 4152500-Rental of State Property 5,676 1,216 16,053 4,055 $524,728 124,158 39,582 4151000-Interest Income - Other Loans -31 4150500-Interest Income - Interfund Loans $6,401 -- 150 1,520 4150000-Geothermal Resources Well Fees USE OF PROPERTY AND MONEY Totals, SERVICES TO THE PUBLIC 4146000-State Beach and Park Service Fees 4145500-Secretary of State - Fees 13,723 2,641 1,324 -- -200,556 3,274 -- 75,870 -- 8,055 60,141 4144500-Parking Lot Revenues 4145000-Pay Patients Board Charges 22 $1,569,396 Special Funds Actuals 2018-19 -- 133 $193,974 General Fund 4144000-Parental Fees 4140500-Emergency Telephone User's Surcharge 4142500-License Plate Fees - Personalized Plates 4143000-Medicare Receipts - Federal Government 4143500-Miscellaneous Services to the Public 4140000-Document Sales Totals, REVENUE FROM LOCAL AGENCIES SERVICES TO THE PUBLIC 4136500-Traffic Violation Penalties Sources 22 1,000 2 77,499 10,681 561,664 208,429 342 8,228 131,373 3,207,446 494 455,380 $1,170,333 521,026 647,953 924 430 $313,983 139,732 29,861 91,601 335 25,423 6,892 16,084 4,055 $531,129 124,158 39,732 1,522 13,723 2,641 201,880 3,274 75,870 60,141 8,188 $1,763,370 Total -- -- -- 66,235 -- 11 1,049,825 10,276 8,355 300 -- -- 443,036 $598,048 24,529 573,519 -- -- $148,968 125,688 -- 19,910 305 1,871 1,194 -- -- $6,559 -- 174 1,659 -- -- 1,143 3,423 -- -- 160 $192,500 General Fund -- 1,000 14 8,473 6,238 584,170 157,891 367 9 140,351 2,386,000 789 -- $456,288 455,455 356 263 214 $131,422 -- 30,026 65,272 -- 20,897 10,512 993 3,722 $598,981 129,343 42,613 -- 13,551 2,637 212,697 -- 75,046 115,210 7,884 $1,769,790 Special Funds Estimated 2019-20 SCHEDULE 8 AT 2020-21 GOVERNOR'S BUDGET COMPARATIVE STATEMENT OF REVENUES (Dollars in Thousands) -- 1,000 14 74,708 6,238 584,181 1,207,716 10,643 8,364 140,651 2,386,000 789 443,036 $1,054,336 479,984 573,875 263 214 $280,390 125,688 30,026 85,182 305 22,768 11,706 993 3,722 $605,540 129,343 42,787 1,659 13,551 2,637 213,840 3,423 75,046 115,210 8,044 $1,962,290 Total -- -- -- 66,205 -- 11 851,580 10,276 8,355 300 -- -- 432,098 $538,707 24,529 514,178 -- -- $109,297 86,081 -- 19,913 261 1,871 1,171 -- -- $7,161 -- 166 557 -- -- 4,108 2,170 -- -- 160 $187,788 General Fund -- 1,000 14 8,453 6,050 585,561 152,128 367 9 141,921 2,490,000 1,689 -- $439,966 439,117 356 263 230 $128,911 -- 30,205 66,776 -- 20,858 7,218 132 3,722 $660,799 129,343 43,903 -- 14,197 2,687 217,340 -- 75,043 170,278 8,008 $1,224,245 Special Funds Estimated 2020-21 -- 1,000 14 74,658 6,050 585,572 1,003,708 10,643 8,364 142,221 2,490,000 1,689 432,098 $978,673 463,646 514,534 263 230 $238,208 86,081 30,205 86,689 261 22,729 8,389 132 3,722 $667,960 129,343 44,069 557 14,197 2,687 221,448 2,170 75,043 170,278 8,168 $1,412,033 Total Appendix 17 GOVERNOR'S BUDGET SUMMARY 2020-21 -- 229 1,914 4,800 -- TOTALS, REVENUES, TRANSFERS AND LOANS TOTALS, TRANSFERS AND LOANS Loans Revenue Transfers TRANSFERS AND LOANS TOTALS, REVENUES TOTALS, MINOR REVENUES 4,039,028 414,951 $4,453,979 $61,594,612 -413,201 - $4,443,810 $139,378,948 $57,140,633 $23,310,007 -4,030,609 $143,822,758 $1,870,460 -45,241 $8,491,027 -$786,492 4180050-Cash Adjustment for Transportation Funds (SAL E) Totals, MISCELLANEOUS 470,873 191 135,827 -- 730 -- 49,833 31,349 42,406 4180000-Cash Adjustment for Transportation Funds (SAL I) 4174200-Uninsured Motorist Fees 4174100-Unemployment and Disability Insurance Contributions - Penalties and Inte 4,384 -- 4173800-Traffic Violations 4173900-Tribal Gaming Revenues -- 60,123 -- 301 19,379 23,598 198,246 167,929 1,591 2,455,615 573,099 46,000 -- 189,648 Special Funds Actuals 2018-19 -- 72,398 -- 17,370 -- 92,389 General Fund 4173600-State Public Land Sales 4173500-Settlements and Judgments - Other 4173100-Personal Income Tax - Penalties and Interest 4173200-Proceeds from Estates of Deceased Persons 4173400-Settlements and Judgments - AntiTrust Actions (Attorney General) 4173000-Penalty Assessments - Other 4172900-Penalty Assessments - Criminal Fines 4172800-Parking Violations 4172600-Miscellaneous Tax Revenue 4172500-Miscellaneous Revenue 4172400-Forest Product Sales 4172200-Fine and Penalties - Horse Racing 4172000-Fines and Forfeitures Sources -45,241 470,873 921 135,827 54,217 31,349 42,406 79,502 4,800 301 23,598 270,644 167,929 18,961 2,455,615 665,488 46,000 229 191,562 $200,973,560 $10,169 1,750 8,419 $200,963,391 $25,180,467 $9,277,519 Total -- 229 2,393 $146,485,597 - $3,912,950 -1,885,808 -2,027,142 $150,398,547 $2,760,524 $1,762,899 -- -- 746 -- 5,009 -- -- 10,018 -- 244 -- 103,261 -- 17,096 -- 45,865 General Fund $62,872,897 $3,600,842 1,570,892 2,029,950 $59,272,055 $23,792,027 $7,122,514 -40,274 100,888 191 146,160 50,315 30,018 41,055 56,707 5,903 -- 23,598 274,382 155,623 4,591 640,548 2,106,481 46,000 -- 195,026 Special Funds Estimated 2019-20 SCHEDULE 8 AT 2020-21 GOVERNOR'S BUDGET COMPARATIVE STATEMENT OF REVENUES (Dollars in Thousands) -40,274 100,888 937 146,160 55,324 30,018 41,055 66,725 5,903 244 23,598 377,643 155,623 21,687 640,548 2,152,346 46,000 229 197,419 $209,358,494 - $312,108 -314,916 2,808 $209,670,602 $26,552,551 $8,885,413 Total -- 229 2,393 $151,634,805 - $1,767,846 -86,176 -1,681,670 $153,402,651 $2,711,744 $1,813,899 -- -- 746 -- 5,009 -- -- 10,018 -- 244 -- 365,224 -- 17,096 -- 44,115 General Fund $60,296,038 $1,767,975 94,676 1,673,299 $58,528,063 $21,710,068 $7,315,080 -11,823 833,474 191 140,900 58,265 28,514 44,639 60,007 12,055 -- 23,598 204,026 144,191 4,591 -- 2,147,487 46,000 -- 191,773 Special Funds Estimated 2020-21 -11,823 833,474 937 140,900 63,274 28,514 44,639 70,025 12,055 244 23,598 569,250 144,191 21,687 -- 2,191,602 46,000 229 194,166 $211,930,843 $129 8,500 -8,371 $211,930,714 $24,421,812 $9,128,979 Total Appendix 18 GOVERNOR'S BUDGET SUMMARY 2020-21 --- 5,234 Local Assistance 0521-Transportation, Secy State Operations Totals,0515-Business, Consumer Svcs, Housing, Scty Local Assistance 0515-Business, Consumer Svcs, Housing, Scty State Operations Totals,0511-Government Operations, Secretary 0511-Government Operations, Secretary State Operations Totals,0509-Governors Office of Bus, Econ Developm Local Assistance 0509-Governors Office of Bus, Econ Developm State Operations Totals,0500-Governors Office 0500-Governors Office State Operations Totals, Judicial Capital Outlay 20,500 -- $499,869 499,000 869 $65,348 65,348 $34,766 -- 34,766 $16,975 16,975 $2,143,872 -- 431,986 1,711,886 Local Assistance $278,470 272,827 5,643 $5,234 Judicial State Operations Totals,0390-Judges Retirement System Contributions Local Assistance 0390-Judges Retirement System Contributions State Operations Totals,0280-Commission on Judicial Performance 0280-Commission on Judicial Performance State Operations 193,793 2,473 $905 -- 905 $1 1 $680 -- 680 -- -- $1,824,673 32,170 1,362,206 430,297 -- -- -- -- -- $1,824,673 32,170 $1,860,168 -- Capital Outlay Totals,0250-Judicial Branch 430,297 1,362,206 421,109 1,439,059 $6,757 6,757 -- -- -- $6,757 Local Assistance $413,864 --- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Selected Bond Funds Actual 2018-19 6,757 Special Funds 0250-Judicial Branch State Operations Totals, Legislative -- 413,864 Capital Outlay Legislative State Operations 90,272 $90,272 Totals,0160-Legislative Counsel Bureau 0160-Legislative Counsel Bureau State Operations -- Totals,0120-Assembly -- 0120-Assembly State Operations Totals,0130-Joint Expenses 183,970 $183,970 Totals,0110-Senate 0130-Joint Expenses Capital Outlay 139,622 $139,622 0110-Senate State Operations LEGISLATIVE, JUDICIAL, AND EXECUTIVE General Fund 214,293 2,473 $500,774 499,000 1,774 $65,349 65,349 $35,446 -- 35,446 $16,975 16,975 $3,968,545 32,170 3,074,092 862,283 $278,470 272,827 5,643 $5,234 5,234 $3,684,841 32,170 2,801,265 851,406 $420,621 6,757 413,864 $90,272 90,272 $6,757 6,757 $183,970 183,970 $139,622 139,622 Budget Total -- -- -- -- -- -- -- -- -- -- -- 86,793 39,898 -- -- -- -- -- -- -- -- -- -- $3,097 -- 806 2,291 -- -- -- -- -- $3,097 -- 806 2,291 Federal Fund 10,800 -- $652,077 648,129 3,948 $112,729 112,729 $55,449 20,140 35,309 $22,320 22,320 $2,595,170 -- 1,976,908 618,262 $349,840 304,138 45,702 $5,452 5,452 $2,239,878 -- 1,672,770 567,108 $432,067 -- 432,067 $94,949 94,949 -- -- $191,660 191,660 $145,458 145,458 General Fund -- -- -- -- -- -- -- -- -- -- -- 730,091 6,429 $1,003 -- 1,003 -- -- $30,746 28,759 1,987 -- -- $1,872,181 1,366 1,407,581 463,234 -- -- -- -- -- $1,872,181 1,366 1,407,581 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Selected Bond Funds Estimated 2019-20 463,234 Special Funds SCHEDULE 9 AT 2020-21 GOVERNOR'S BUDGET COMPARATIVE STATEMENT OF EXPENDITURES (Dollars In Thousands) 740,891 6,429 $653,080 648,129 4,951 $112,729 112,729 $86,195 48,899 37,296 $22,320 22,320 $4,467,351 1,366 3,384,489 1,081,496 $349,840 304,138 45,702 $5,452 5,452 $4,112,059 1,366 3,080,351 1,030,342 $432,067 -- 432,067 $94,949 94,949 -- -- $191,660 191,660 $145,458 145,458 Budget Total -- -- -- -- -- -- -- -- -- -- -- 87,201 66,565 -- -- -- -- -- -- -- -- -- -- $6,694 -- 2,275 4,419 -- -- -- -- -- $6,694 -- 2,275 4,419 Federal Funds -- -- $2,047 -- 2,047 $12,024 12,024 $286,472 250,000 36,472 $21,405 21,405 $2,509,279 -- 1,951,723 557,556 $311,886 306,293 5,593 $5,553 5,553 $2,191,840 -- 1,645,430 546,410 $446,417 -- 446,417 $95,037 95,037 -- -- $199,768 199,768 $151,612 151,612 General Fund -- -- -- -- -- -- -- -- -- -- -- 277,878 3,851 $1,003 -- 1,003 -- -- $31,147 28,758 2,389 -- -- $1,933,116 -- 1,468,526 464,590 -- -- -- -- -- $1,933,116 -- 1,468,526 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Selected Bond Funds Estimated 2020-21 464,590 Special Funds 277,878 3,851 $3,050 -- 3,050 $12,024 12,024 $317,619 278,758 38,861 $21,405 21,405 $4,442,395 -- 3,420,249 1,022,146 $311,886 306,293 5,593 $5,553 5,553 $4,124,956 -- 3,113,956 1,011,000 $446,417 -- 446,417 $95,037 95,037 -- -- $199,768 199,768 $151,612 151,612 Budget Total -- -- -- -- -- -- -- -- -- -- -- 62,601 58,202 -- -- -- -- -- -- -- -- -- -- $6,716 -- 2,275 4,441 -- -- -- -- -- $6,716 -- 2,275 4,441 Federal Funds Appendix 19 GOVERNOR'S BUDGET SUMMARY 2020-21 Totals,0521-Transportation, Secy 22,441 Capital Outlay 73,894 $4,859 -- 0855-Gambling Control Commission State Operations 1,500 3,359 $73,894 Totals,0845-Department of Insurance Local Assistance 0845-Department of Insurance State Operations Totals,0840-State Controller 0840-State Controller State Operations $290,940 -- Capital Outlay Totals,0820-Department of Justice 370 290,570 Local Assistance 0820-Department of Justice State Operations $1,329 1,329 Totals,0750-Office of the Lieutenant Governor 0750-Office of the Lieutenant Governor State Operations 680 $680 Totals,0730-Governor Elect and Outgoing Governor 0730-Governor Elect and Outgoing Governor State Operations --- Totals,0720-Governors Portrait 6,074 $283,703 75,852 207,851 $11,303 11,303 $343,826 -- 28,528 315,298 -- -- -- -- -- -- $126,614 -- $790,509 553 44,393 $619,799 617,188 2,611 $71 71 $15,291 1,500 13,791 82,221 0720-Governors Portrait State Operations Totals,0690-Office of Emergency Services --- 261,800 528,156 Local Assistance $43,293 Totals,0650-Office of Planning and Research 29,979 0690-Office of Emergency Services State Operations Local Assistance 13,314 --- $3,048 835 2,213 $22,441 $105,794 -- $41,589 -- 9,783 96,011 Totals,0559-Labor and Workforce Development, Secy 0650-Office of Planning and Research State Operations 1,788 $1,788 -- -- -- -- $8 8 -- -- -- -- -- -- -- -- -- -- $2,831 -- -- 2,831 -- -- -- -- -- -- -- -- -- -- $205,222 -- 134,787 70,435 -- -- -- Selected Bond Funds Actual 2018-19 $196,266 Special Funds 40,421 1,168 $5,228 5,228 $20,500 0559-Labor and Workforce Development, Secy State Operations Totals,0555-Environmental Protection, Secy Local Assistance 0555-Environmental Protection, Secy State Operations Totals,0552-Office of the Inspector General 0552-Office of the Inspector General State Operations Totals,0540-Natural Resources Agency, Secy Capital Outlay Local Assistance 0540-Natural Resources Agency, Secy State Operations Totals,0530-Health, Human Services Agency, Secy 0530-Health, Human Services Agency, Secy State Operations General Fund 6,074 $288,562 77,352 211,210 $85,205 85,205 $634,766 -- 28,898 605,868 $1,329 1,329 $680 680 -- -- $919,954 553 344,021 575,380 $663,092 647,167 15,925 $71 71 $18,339 2,335 16,004 $22,441 22,441 $352,605 -- 271,219 81,386 $7,016 7,016 $216,766 Budget Total -- $461 -- 461 $1,234 1,234 $36,292 -- -- 36,292 -- -- -- -- -- -- $1,305,926 -- 1,220,799 85,127 $41,659 39,679 1,980 -- -- $300 -- 300 -- -- -- -- -- -- -- -- $126,691 Federal Fund -- $10,967 1,500 9,467 $88,650 88,650 $691,257 -- 3,500 687,757 $2,099 2,099 -- -- $25 25 $502,128 22,216 305,192 174,720 $100,716 31,080 69,636 $2,532 2,532 $4,074 835 3,239 $29,219 29,219 $121,313 -- 117,177 4,136 $20,303 20,303 $10,800 General Fund 2,184 7,771 $301,873 72,106 229,767 $11,800 11,800 $381,284 -- 30,539 350,745 -- -- -- -- -- -- $121,260 -- 146,468 -25,208 $513,080 503,392 9,688 $454 454 $17,862 1,500 16,362 -- -- $46,754 -- 36,700 10,054 $2,184 -- -- -- -- $1,188 1,188 -- -- -- -- -- -- -- -- -- -- $2,873 -- -- 2,873 -- -- -- -- -- -- -- -- -- -- $315,481 111,157 191,490 12,834 -- -- -- Selected Bond Funds Estimated 2019-20 $736,520 Special Funds SCHEDULE 9 AT 2020-21 GOVERNOR'S BUDGET COMPARATIVE STATEMENT OF EXPENDITURES (Dollars In Thousands) 7,771 $312,840 73,606 239,234 $101,638 101,638 $1,072,541 -- 34,039 1,038,502 $2,099 2,099 -- -- $25 25 $626,261 22,216 451,660 152,385 $613,796 534,472 79,324 $2,986 2,986 $21,936 2,335 19,601 $29,219 29,219 $483,548 111,157 345,367 27,024 $22,487 22,487 $747,320 Budget Total -- $810 -- 810 $1,449 1,449 $43,863 -- -- 43,863 -- -- -- -- -- -- $1,128,675 -- 1,039,616 89,059 $43,839 41,781 2,058 -- -- $300 -- 300 -- -- $1 -- -- 1 -- -- $153,766 Federal Funds -- -- $11,316 1,500 9,816 $78,484 78,484 $379,733 9,518 -- 370,215 $2,100 2,100 -- -- -- -- $332,795 377 217,986 114,432 $34,651 17,000 17,651 $4,473 4,473 $3,069 835 2,234 $29,244 29,244 $93,448 -- -- 93,448 $22,399 22,399 General Fund 2,185 7,459 $308,418 75,555 232,863 $12,245 12,245 $390,826 -- 28,528 362,298 -- -- -- -- -- -- $189,343 -- 144,588 44,755 $568,074 515,500 52,574 $7,159 7,159 $13,833 -- 13,833 -- -- $22,673 -- 6,700 15,973 $2,185 -- -- -- -- $1,188 1,188 -- -- -- -- -- -- -- -- -- -- $2,874 -- -- 2,874 -- -- -- -- -- -- -- -- -- -- $14,141 -- -- 14,141 -- -- -- Selected Bond Funds Estimated 2020-21 $281,729 Special Funds 7,459 $319,734 77,055 242,679 $91,917 91,917 $770,559 9,518 28,528 732,513 $2,100 2,100 -- -- -- -- $525,012 377 362,574 162,061 $602,725 532,500 70,225 $11,632 11,632 $16,902 835 16,067 $29,244 29,244 $130,262 -- 6,700 123,562 $24,584 24,584 $281,729 Budget Total -- $25 -- 25 $1,437 1,437 $44,054 -- -- 44,054 -- -- -- -- -- -- $1,203,451 -- 1,114,166 89,285 $52,784 50,089 2,695 -- -- $300 -- 300 -- -- $1 -- -- 1 -- -- $120,803 Federal Funds Appendix 20 GOVERNOR'S BUDGET SUMMARY 2020-21 Totals,0855-Gambling Control Commission -- Totals,0971-Alt Energy, Advanced Trans Fin Auth 61 0996-General Obligation Bonds-LJE State Operations $61 Totals,0989-Educational Facilities Authority Totals,0996-General Obligation Bonds-LJE --- 0989-Educational Facilities Authority State Operations $137,369 136,786 583 $289 -- Totals,0985-School Finance Authority Local Assistance 0985-School Finance Authority State Operations Totals,0977-Health Facilities Financing Authority Local Assistance 289 --- 0971-Alt Energy, Advanced Trans Fin Auth State Operations 0977-Health Facilities Financing Authority State Operations -- Totals,0968-Tax Credit Allocation Committee -- -- 0968-Tax Credit Allocation Committee State Operations Local Assistance --- Totals,0965-Industrial Dvlmt Financing Advisory Comm Totals,0959-Debt Limit Allocation Committee 0965-Industrial Dvlmt Financing Advisory Comm State Operations --- 0959-Debt Limit Allocation Committee State Operations --- Totals,0956-Debt Investment Advisory Commission -- -- $27 27 -- -- -- $4,036 4,000 36 $507 507 $8,563 190 8,373 $8 8 $1,445 1,445 $3,398 3,398 -- $108 0956-Debt Investment Advisory Commission State Operations Totals,0954-Scholarshare Investment Board -- -- -- -- -- $75,417 -- 75,417 -- -- 108 $5,235 5,235 $72 72 $179,835 --- -- -- -- -- $1,278 -- 1,278 $150,843 150,177 666 -- -- -- -- -- -- -- -- -- -- -- -- -- -- $9 9 -- -- -- -- -- -- -- -- -- -- Selected Bond Funds Actual 2018-19 $6,074 Special Funds -- Local Assistance 0954-Scholarshare Investment Board State Operations Totals,0950-State Treasurer 0950-State Treasurer State Operations Totals,0911-Citizens Redistricting Initiative 0911-Citizens Redistricting Initiative State Operations Totals,0890-Secretary of State 45,487 134,348 Local Assistance $16,318 16,318 $24,772 24,772 -- 0890-Secretary of State State Operations Totals,0870-Office of Tax Appeals 0870-Office of Tax Appeals State Operations Totals,0860-State Board of Equalization 0860-State Board of Equalization State Operations General Fund $61 61 $27 27 $138,647 136,786 1,861 $155,168 154,177 991 $507 507 $8,563 190 8,373 $8 8 $1,445 1,445 $3,398 3,398 $108 -- 108 $5,244 5,244 $72 72 $255,252 134,348 120,904 $16,318 16,318 $24,772 24,772 $6,074 Budget Total -- -- -- -- -- -- -- -- -- $20,450 20,000 450 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- $12,569 4,128 8,441 Federal Fund -- $832 832 -- -- $137,399 136,786 613 $68,432 67,035 1,397 -- -- -- -- -- -- -- -- -- -- -- $25,245 25,000 245 $12,973 12,973 $16,814 16,814 $138,821 88,765 50,056 $23,944 23,944 $30,793 30,793 General Fund -- -- -- $79 79 -- -- -- $57,735 57,485 250 $519 519 $9,706 190 9,516 -- -- $1,656 1,656 $3,785 3,785 -- -- -- -- -- -- -- $74,228 -- 74,228 -- -- -- -- -- -- -- $1,310 -- 1,310 $345,154 343,988 1,166 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Selected Bond Funds Estimated 2019-20 $7,771 Special Funds SCHEDULE 9 AT 2020-21 GOVERNOR'S BUDGET COMPARATIVE STATEMENT OF EXPENDITURES (Dollars In Thousands) $832 832 $79 79 $138,709 136,786 1,923 $471,321 468,508 2,813 $519 519 $9,706 190 9,516 -- -- $1,656 1,656 $3,785 3,785 $25,245 25,000 245 $12,973 12,973 $16,814 16,814 $213,049 88,765 124,284 $23,944 23,944 $30,793 30,793 $7,771 Budget Total -- -- -- -- -- -- -- -- -- $20,475 20,000 475 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- $30,673 19,964 10,709 Federal Funds -- $2,697 2,697 -- -- $140,532 139,918 614 -- -- -- -- -- -- -- -- -- -- -- -- -- -- $92 -- 92 $9,967 9,967 $92 92 $42,924 1,500 41,424 $23,884 23,884 $30,790 30,790 General Fund -- -- -- $79 79 -- -- -- $65,276 64,776 500 $520 520 $12,378 190 12,188 -- -- $2,382 2,382 $3,803 3,803 -- -- -- -- -- -- -- $61,045 -- 61,045 -- -- -- -- -- -- -- $1,320 -- 1,320 $534,367 533,000 1,367 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Selected Bond Funds Estimated 2020-21 $7,459 Special Funds $2,697 2,697 $79 79 $141,852 139,918 1,934 $599,643 597,776 1,867 $520 520 $12,378 190 12,188 -- -- $2,382 2,382 $3,803 3,803 $92 -- 92 $9,967 9,967 $92 92 $103,969 1,500 102,469 $23,884 23,884 $30,790 30,790 $7,459 Budget Total -- -- -- -- -- -- -- -- -- $20,489 20,000 489 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- $20,898 6,764 14,134 Federal Funds Appendix 21 GOVERNOR'S BUDGET SUMMARY 2020-21 1111-Dept of Consumer Affairs, Reg Bds, Bur State Operations 26,921 Totals,1750-Horse Racing Board Totals,2120-Alcoholic Beverage Control Appeals Board State Operations TOTALS, BUSINESS, CONSUMER SERVICES, & HOUSING 431,446 $437,125 --- Totals,2320-Department of Real Estate $12,484 5,679 2320-Department of Real Estate State Operations Totals,2240-Dept of Housing, Community Development Local Assistance 6,805 --- 2120-Alcoholic Beverage Control Appeals Board State Operations 2240-Dept of Housing, Community Development State Operations -- -- -- $397,555 Totals,2100-Department of Alcoholic Beverage Control Local Assistance 2100-Department of Alcoholic Beverage Control State Operations Totals,1996-General Obligation Bonds-BCH 397,555 --- 1750-Horse Racing Board State Operations 1996-General Obligation Bonds-BCH State Operations -- -- -- $26,921 Totals,1701-Department of Business Oversight Local Assistance 1701-Department of Business Oversight State Operations Totals,1700-Department of Fair Employment, Housing 1700-Department of Fair Employment, Housing State Operations --- Totals,1690-Seismic Safety Commission, A. E. Alquist $165 1690-Seismic Safety Commission, A. E. Alquist State Operations Totals,1111-Dept of Consumer Affairs, Reg Bds, Bur -- 165 Totals,1045-Cannabis Control Appeals Panel Local Assistance --- 1045-Cannabis Control Appeals Panel State Operations BUSINESS, CONSUMER SERVICES, & HOUSING 553 2,837,425 Local Assistance Capital Outlay 1,999,085 $4,837,063 $2,279,327 State Operations TOTALS, LEGISLATIVE, JUDICIAL, AND EXECUTIVE Totals, Executive 553 1,125,539 Local Assistance Capital Outlay 1,153,235 Executive State Operations General Fund 871,255 $1,695,262 $52,995 52,995 $860,622 821,010 39,612 $1,091 1,091 $72,678 2,997 69,681 -- -- $13,807 13,807 $98,364 -- 98,364 $262 262 $1,192 1,192 $592,171 -- 592,171 $2,080 2,080 38,927 2,461,489 1,136,530 $3,636,946 $1,805,516 -- 1,099,283 21,515 $778,240 -- -- $778,240 756,725 21,515 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 284,964 75,227 $360,191 $360,191 -- 284,964 75,227 Selected Bond Funds Actual 2018-19 706,233 Special Funds 1,324,216 $2,910,627 $52,995 52,995 $1,651,346 1,583,414 67,932 $1,091 1,091 $72,678 2,997 69,681 $397,555 397,555 $13,807 13,807 $98,364 -- 98,364 $27,183 27,183 $1,192 1,192 $592,336 -- 592,336 $2,080 2,080 39,480 5,583,878 3,210,842 $8,834,200 $4,445,034 553 2,509,786 1,934,695 Budget Total 15,226 $136,796 -- -- $131,691 121,570 10,121 -- -- -- -- -- -- -- -- -- -- -- -- $5,105 5,105 -- -- -- -- -- -- -- -- 1,372,205 176,474 $1,548,679 $1,545,582 -- 1,371,399 174,183 Federal Fund 470,318 $1,464,697 -- -- $1,006,547 984,379 22,168 -- -- -- -- -- $416,407 416,407 -- -- -- -- -- $30,609 30,609 -- -- $11,134 10,000 1,134 -- -- 22,216 3,432,847 2,454,085 $5,909,148 $2,881,911 22,216 1,455,939 1,403,756 General Fund 1,047,797 $1,050,797 $56,083 56,083 $39,932 -- 39,932 $1,161 1,161 $86,288 3,000 83,288 -- -- $14,288 14,288 $106,759 -- 106,759 $262 262 $1,334 1,334 $741,929 -- 741,929 $2,761 2,761 1,366 3,014,811 1,176,303 $4,192,480 $2,320,299 -- 1,607,230 25,014 $995,943 -- -- $995,943 970,929 25,014 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 111,157 535,478 19,371 $666,006 $666,006 111,157 535,478 19,371 Selected Bond Funds Estimated 2019-20 713,069 Special Funds SCHEDULE 9 AT 2020-21 GOVERNOR'S BUDGET COMPARATIVE STATEMENT OF EXPENDITURES (Dollars In Thousands) 1,543,129 $3,511,437 $56,083 56,083 $2,042,422 1,955,308 87,114 $1,161 1,161 $86,288 3,000 83,288 $416,407 416,407 $14,288 14,288 $106,759 -- 106,759 $30,871 30,871 $1,334 1,334 $753,063 10,000 743,063 $2,761 2,761 134,739 6,983,136 3,649,759 $10,767,634 $5,868,216 133,373 3,598,647 2,136,196 Budget Total 19,473 $247,193 -- -- $241,443 227,720 13,723 -- -- -- -- -- -- -- -- -- -- -- -- $5,750 5,750 -- -- -- -- -- -- -- -- 1,210,837 219,708 $1,430,545 $1,423,851 -- 1,208,562 215,289 Federal Funds 229,230 $347,859 -- -- $135,355 118,629 16,726 -- -- -- -- -- $178,229 178,229 -- -- -- -- -- $34,275 34,275 -- -- -- -- -- -- -- 9,895 2,580,462 1,929,977 $4,520,334 $1,564,638 9,895 628,739 926,004 General Fund 1,019,588 $1,023,588 $55,747 55,747 $38,007 -- 38,007 $1,162 1,162 $88,577 3,000 85,577 -- -- $15,623 15,623 $119,905 1,000 118,905 $536 536 -- -- $700,998 -- 700,998 $3,033 3,033 -- 2,610,999 1,303,694 $3,914,693 $1,981,577 -- 1,142,473 28,591 $1,082,912 -- -- $1,082,912 1,054,321 28,591 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 533,000 20,890 $553,890 $553,890 -- 533,000 20,890 Selected Bond Funds Estimated 2020-21 839,104 Special Funds 1,277,409 $2,454,359 $55,747 55,747 $1,256,274 1,172,950 83,324 $1,162 1,162 $88,577 3,000 85,577 $178,229 178,229 $15,623 15,623 $119,905 1,000 118,905 $34,811 34,811 -- -- $700,998 -- 700,998 $3,033 3,033 9,895 5,724,461 3,254,561 $8,988,917 $4,100,105 9,895 2,304,212 1,785,998 Budget Total 18,896 $227,825 -- -- $222,090 208,929 13,161 -- -- -- -- -- -- -- -- -- -- -- -- $5,735 5,735 -- -- -- -- -- -- -- -- 1,255,895 215,063 $1,470,958 $1,464,242 -- 1,253,620 210,622 Federal Funds Appendix 22 GOVERNOR'S BUDGET SUMMARY 2020-21 ---- Local Assistance Capital Outlay Unclassified Totals,3110-Special Resources Programs Local Assistance 3110-Special Resources Programs State Operations Totals,3100-Exposition Park Capital Outlay 3100-Exposition Park State Operations 2,597 -- -- $4,709 4,709 -- $10,809 $30,759 -- -- 10,809 -- 1,893,573 1,518,210 8,920,634 $12,332,417 $1,515,346 1,515,346 $1,222,341 3,038 1,219,303 $2,385,274 4,343 -- 2,380,931 $2,597 -- 30,759 213,914 NATURAL RESOURCES $213,914 State Operations $201,664 201,664 $4,202 -- 4,202 TOTALS, TRANSPORTATION Totals,2830-General Obligation Bonds-Transportation 2830-General Obligation Bonds-Transportation State Operations Totals,2740-Department of Motor Vehicles Capital Outlay 2740-Department of Motor Vehicles State Operations $8,048 -- Capital Outlay Totals,2720-Dept of the California Highway Patrol -- Local Assistance 8,048 Totals,2670-Board of Pilot Commissioners 2720-Dept of the California Highway Patrol State Operations --- 2670-Board of Pilot Commissioners State Operations 69,393 $69,393 --- Capital Outlay Totals,2665-High-Speed Rail Authority -- -- $6,214,569 -- 1,816,799 600,197 3,797,573 $918,013 918,013 $4,884 -- 4,884 -- -- -- -- -- -- -- 246,781 679,367 50,100 $976,248 -- -- -- -- -- -- -- -- -- -- -- $808,837 151,544 617,147 40,146 $135,728 -- 95,237 30,629 9,862 $30,139 30,139 $1,544 1,452 92 756,725 Selected Bond Funds Actual 2018-19 824,007 Special Funds -- -- 2665-High-Speed Rail Authority State Operations Local Assistance -- -- Unclassified Totals,2660-Department of Transportation -- Capital Outlay 2660-Department of Transportation State Operations -- -- Totals,2640-State Transit Assistance Local Assistance --- 2640-State Transit Assistance Local Assistance -- -- -- 5,679 Totals,2600-California Transportation Commission Local Assistance 2600-California Transportation Commission State Operations TRANSPORTATION Local Assistance General Fund $4,709 4,709 -- $41,568 -- 41,568 -- 2,140,354 2,197,577 9,184,648 $13,522,579 $1,717,010 1,717,010 $1,226,543 3,038 1,223,505 $2,393,322 4,343 -- 2,388,979 $2,597 2,597 $878,230 220,937 617,147 40,146 $6,350,297 -- 1,912,036 630,826 3,807,435 $948,152 948,152 $6,428 1,452 4,976 1,586,411 Budget Total -- -- -- -- -- -- -- 2,102,031 1,337,116 994,014 $4,433,161 -- -- $126 -- 126 $16,140 -- -- 16,140 -- -- $266 266 -- -- $4,416,629 -- 2,101,765 1,337,116 977,748 -- -- -- -- -- 121,570 Federal Fund -- -- -- $34,437 2,500 31,937 -- -- 12,500 274,666 $287,166 $190,990 190,990 $6,407 -- 6,407 $78,269 -- 1,000 77,269 -- -- -- -- -- -- $11,500 -- -- 11,500 -- -- -- -- -- -- 994,379 General Fund $5,673 5,473 200 $10,377 -- 10,377 -- 2,399,783 1,722,632 9,595,359 $13,717,774 $1,646,804 1,646,804 $1,390,981 1,959 1,389,022 $2,563,989 8,019 10,975 2,544,995 $2,954 2,954 $804,853 804,750 -- 103 $6,396,720 -- 1,585,055 807,430 4,004,235 $904,227 904,227 $7,246 -- 7,246 -- -- -- -- -- -- -- 223,874 75,856 75,058 $374,788 -- -- -- -- -- -- -- -- -- -- -- $295,610 178,690 59,518 57,402 $77,478 -- 45,184 14,638 17,656 -- -- $1,700 1,700 -- 970,929 Selected Bond Funds Estimated 2019-20 3,000 Special Funds SCHEDULE 9 AT 2020-21 GOVERNOR'S BUDGET COMPARATIVE STATEMENT OF EXPENDITURES (Dollars In Thousands) $5,673 5,473 200 $44,814 2,500 42,314 -- 2,623,657 1,810,988 9,945,083 $14,379,728 $1,837,794 1,837,794 $1,397,388 1,959 1,395,429 $2,642,258 8,019 11,975 2,622,264 $2,954 2,954 $1,100,463 983,440 59,518 57,505 $6,485,698 -- 1,630,239 833,568 4,021,891 $904,227 904,227 $8,946 1,700 7,246 1,968,308 Budget Total -- -- -- -- -- -- 5,000 2,879,126 2,297,493 1,065,635 $6,247,254 -- -- $2,790 -- 2,790 $26,440 -- -- 26,440 -- -- -- -- -- -- $6,218,024 5,000 2,879,126 2,297,493 1,036,405 -- -- -- -- -- 227,720 Federal Funds -- -- -- $27,050 -- 27,050 -- -- -- 240,461 $240,461 $224,168 224,168 $9,556 -- 9,556 $6,737 -- -- 6,737 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 118,629 General Fund $5,523 5,323 200 $10,252 -- 10,252 -- 5,204,489 2,815,050 9,808,212 $17,827,751 $1,779,530 1,779,530 $1,360,081 4,634 1,355,447 $2,559,378 16,004 18,295 2,525,079 $2,866 2,866 $2,428,090 2,427,987 -- 103 $8,714,408 -- 2,755,864 1,820,602 4,137,942 $976,153 976,153 $7,245 -- 7,245 -- -- -- -- -- -- -- 95,789 455,602 76,160 $627,551 -- -- -- -- -- -- -- -- -- -- -- $482,705 -- 423,335 59,370 $140,546 -- 95,789 27,967 16,790 -- -- $4,300 4,300 -- 1,054,321 Selected Bond Funds Estimated 2020-21 4,000 Special Funds $5,523 5,323 200 $37,302 -- 37,302 -- 5,300,278 3,270,652 10,124,833 $18,695,763 $2,003,698 2,003,698 $1,369,637 4,634 1,365,003 $2,566,115 16,004 18,295 2,531,816 $2,866 2,866 $2,910,795 2,427,987 423,335 59,473 $8,854,954 -- 2,851,653 1,848,569 4,154,732 $976,153 976,153 $11,545 4,300 7,245 1,176,950 Budget Total -- -- -- -- -- -- 5,000 1,914,209 2,575,703 966,097 $5,461,009 -- -- $2,789 -- 2,789 $22,033 -- -- 22,033 -- -- -- -- -- -- $5,436,187 5,000 1,914,209 2,575,703 941,275 -- -- -- -- -- 208,929 Federal Funds Appendix 23 GOVERNOR'S BUDGET SUMMARY 2020-21 -- Capital Outlay Local Assistance 3790-Department of Parks, Recreation State Operations Totals,3780-Native American Heritage Commission 3780-Native American Heritage Commission State Operations Totals,3760-State Coastal Conservancy 2,883 43,300 153,385 $2,883 43,550 322,123 -- -- $9,783 3,800 $21,400 -- 2,308 $4,297 3,675 550 2,294 2,003 20,850 3760-State Coastal Conservancy State Operations Local Assistance $20,168 -- 20,168 $5,412 2,979 $31,684 18,684 2,433 -- -- $221,860 -- 8,341 213,519 $21,887 21,887 $347,802 -- 1,945 345,857 $121,542 3,090 118,452 $362,902 136,373 226,529 13,000 Totals,3720-Coastal Commission Local Assistance 3720-Coastal Commission State Operations Totals,3640-Wildlife Conservation Board Capital Outlay Local Assistance 3640-Wildlife Conservation Board State Operations $125,587 -- Capital Outlay Totals,3600-Department of Fish and Wildlife 576 125,011 Local Assistance 3600-Department of Fish and Wildlife State Operations 81,502 $81,502 Totals,3560-State Lands Commission 3560-State Lands Commission State Operations $1,837,997 28,016 Capital Outlay Totals,3540-Department of Forestry, Fire Protection 10,500 1,799,481 $3,875 -- 3,875 -- -- -- $58,817 13,365 $68,600 -- 58,817 $5,606 57 182 460,292 27,885 -- -- $76,237 -- 69,431 6,806 -- -- -- $124,279 8,000 112,200 4,079 $106,866 -- 53,800 53,066 -- -- $13,555 -- 13,555 -- $6,163 5,106 1,057 -- -- -- $9,778 -- 4,567 5,211 $3,917 824 2,523 570 Selected Bond Funds Actual 2018-19 5,367 Special Funds -- 55,235 Local Assistance 3540-Department of Forestry, Fire Protection State Operations Totals,3480-Department of Conservation Local Assistance 3480-Department of Conservation State Operations Totals,3360-Energy Resource Conservation, Dvlmt Comm Local Assistance 3360-Energy Resource Conservation, Dvlmt Comm State Operations Totals,3340-California Conservation Corps Capital Outlay Local Assistance 3340-California Conservation Corps State Operations -- -- Capital Outlay Totals,3125-Tahoe Conservancy -- -- Local Assistance 3125-Tahoe Conservancy State Operations General Fund 547,142 503,393 $2,883 2,883 $107,420 3,800 93,956 9,664 $24,465 2,003 22,462 $161,375 29,663 125,200 6,512 $454,313 -- 62,717 391,596 $103,389 103,389 $2,199,354 28,016 26,000 2,145,338 $131,580 8,196 123,384 $362,902 136,373 226,529 $137,195 13,365 4,567 119,263 $9,523 881 2,705 5,937 Budget Total -- -- 132 87,700 16,356 -- -- $8,588 -- 8,000 588 $3,059 -- 3,059 $35,000 35,000 -- -- $83,378 -- 20,000 63,378 -- -- $20,756 -- -- 20,756 $6,065 -- 6,065 $7,446 2,350 5,096 -- -- -- -- $132 Federal Fund -- -- 500 60,570 258,667 $3,668 3,668 $12,000 -- 12,000 -- $21,636 -- 21,636 $18,595 18,595 -- -- $145,525 -- 17,576 127,949 $61,317 61,317 $1,515,621 20,884 7,200 1,487,537 $4,168 -- 4,168 -- -- -- $101,419 34,675 -- 66,744 $500 General Fund 42,481 327,256 -- -- $7,557 3,800 825 2,932 $4,673 1,940 2,733 $3,301 2,433 -- 868 $263,103 369 2,341 260,393 $23,433 23,433 $356,730 -- -- 356,730 $117,565 -- 117,565 $860,704 436,212 424,492 $58,876 -- -- 58,876 $8,234 1,854 1,183 50,875 29,260 -- -- $82,644 -- 76,081 6,563 -- -- -- $138,213 -- 133,875 4,338 $66,379 -- 37,740 28,639 -- -- $8,872 -- 8,250 622 $20,064 18,179 1,885 -- -- -- $12,062 -- 6,851 5,211 $20,835 11,757 6,218 2,860 Selected Bond Funds Estimated 2019-20 5,197 Special Funds SCHEDULE 9 AT 2020-21 GOVERNOR'S BUDGET COMPARATIVE STATEMENT OF EXPENDITURES (Dollars In Thousands) 153,926 615,183 $3,668 3,668 $102,201 3,800 88,906 9,495 $26,309 1,940 24,369 $160,109 21,028 133,875 5,206 $475,007 369 57,657 416,981 $84,750 84,750 $1,881,223 20,884 15,450 1,844,889 $141,797 18,179 123,618 $860,704 436,212 424,492 $172,357 34,675 6,851 130,831 $29,569 13,611 7,401 8,557 Budget Total 737 87,700 16,185 -- -- $8,612 -- 8,000 612 $3,045 -- 3,045 $35,000 35,000 -- -- $85,389 -- 20,000 65,389 -- -- $20,384 -- -- 20,384 $4,242 -- 4,242 $6,186 2,500 3,686 -- -- -- -- $3,172 531 1,904 Federal Funds -- -- -- -- 23,000 169,517 $3,669 3,669 -- -- -- -- $21,440 -- 21,440 -- -- -- -- $172,111 -- 576 171,535 $37,002 37,002 $1,636,631 72,884 -- 1,563,747 $4,291 -- 4,291 -- -- -- $70,427 3,463 -- 66,964 General Fund 42,250 365,476 $450 450 $8,557 3,800 1,685 3,072 $4,673 1,940 2,733 $4,913 3,403 -- 1,510 $269,602 -- 1,341 268,261 $24,151 24,151 $345,832 -- 125,387 220,445 $125,794 -- 125,794 $449,133 135,090 314,043 $54,401 -- -- 54,401 $6,178 550 420 246,250 33,986 -- -- $46,563 -- 38,810 7,753 -- -- -- $8,076 3,738 -- 4,338 $46,171 -- 31,740 14,431 -- -- $5,661 -- 5,039 622 $1,812 250 1,562 -- -- -- $12,061 -- 6,850 5,211 $2,222 718 -- 1,504 Selected Bond Funds Estimated 2020-21 5,208 Special Funds 311,500 568,979 $4,119 4,119 $55,120 3,800 40,495 10,825 $26,113 1,940 24,173 $12,989 7,141 -- 5,848 $487,884 -- 33,657 454,227 $61,153 61,153 $1,988,124 72,884 130,426 1,784,814 $131,897 250 131,647 $449,133 135,090 314,043 $136,889 3,463 6,850 126,576 $8,400 1,268 420 6,712 Budget Total 87,700 16,255 -- -- $8,597 -- 8,000 597 $3,145 -- 3,145 $35,000 35,000 -- -- $85,613 480 20,000 65,133 -- -- $20,550 -- -- 20,550 $4,311 -- 4,311 $5,660 2,500 3,160 -- -- -- -- $2,077 -- -- 2,077 Federal Funds Appendix 24 GOVERNOR'S BUDGET SUMMARY 2020-21 -- 3845-San Diego River Conservancy State Operations 3882-General Obligation Bonds-Natural Res State Operations Totals,3875-Sacramento-San Joaquin Delta Conservancy Local Assistance 3875-Sacramento-San Joaquin Delta Conservancy State Operations Totals,3860-Department of Water Resources Capital Outlay Local Assistance 3860-Department of Water Resources State Operations Totals,3855-Sierra Nevada Conservancy 988,486 $1,238 -- 1,238 $173,193 964 12,540 159,689 -- -- -- Local Assistance 3855-Sierra Nevada Conservancy State Operations -- $141 -- 141 $32,443 -- 814 31,629 $4,778 310 4,468 $343 -- -- -- 343 $324 -- 324 $1,719 1,719 $372 -- -- 372 -- Totals,3850-Coachella Valley Mountains Conservancy Capital Outlay 422 $422 -- -- 3850-Coachella Valley Mountains Conservancy State Operations Local Assistance -- Totals,3845-San Diego River Conservancy -- -- Totals,3840-Delta Protection Commission Local Assistance --- 3840-Delta Protection Commission State Operations -- -- Capital Outlay Totals,3835-Baldwin Hills Conservancy -- -- 3835-Baldwin Hills Conservancy State Operations Local Assistance --- Totals,3830-San Joaquin River Conservancy $333 -$19,000 -- 333 $674 225 449 $347 -- 120 227 $267,820 -- $10,928 10,495 433 $535,410 98,801 301,349 135,260 $7,294 6,953 341 $2,026 -181 2,120 87 $1,675 1,506 169 -- -- $1,734 -- 1,500 234 $222 222 $15,646 1,626 13,281 739 -- -- -- $23,808 1,462 21,622 724 $500,369 12,192 Selected Bond Funds Actual 2018-19 -97,853 Special Funds 19,000 -- $6,240 3830-San Joaquin River Conservancy State Operations Totals,3825-San Gabriel,Lower LA River,Mtns Consvcy Capital Outlay Local Assistance 3825-San Gabriel,Lower LA River,Mtns Consvcy State Operations Totals,3820-SF Bay Conservation, Development Comm -- 6,240 Local Assistance $500 Totals,3810-Santa Monica Mountains Conservancy 3820-SF Bay Conservation, Development Comm State Operations -- Capital Outlay -500 Local Assistance 3810-Santa Monica Mountains Conservancy State Operations 100,706 $297,391 Totals,3790-Department of Parks, Recreation Capital Outlay General Fund 988,486 $12,307 10,495 1,812 $741,046 99,765 314,703 326,578 $12,072 7,263 4,809 $2,369 -181 2,120 430 $1,999 1,506 493 $1,719 1,719 $2,106 -- 1,500 606 $644 644 $34,979 1,626 32,281 1,072 $6,914 225 6,689 $24,655 1,462 22,242 951 $1,065,580 15,045 Budget Total -- $455 -- 455 $5,442 -- -- 5,442 $207 -- 207 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- $106,291 2,235 Federal Fund 1,089,340 $1,346 -- 1,346 $426,251 150,000 6,069 270,182 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- $6,000 -- 6,000 -- $9,392 -- 9,392 $15,350 -- 12,850 2,500 $326,071 6,834 General Fund -- $174 -- 174 $48,382 -- -- 48,382 $6,778 690 6,088 $371 -- -- 371 $347 -- 347 $1,580 1,580 $388 -- -- 388 $490 490 $445 -- -- 445 $2,116 275 1,841 $481 -- 120 361 $483,784 -- $40,442 39,055 1,387 $1,829,408 543,085 956,301 330,022 $36,179 35,090 1,089 $19,702 9,796 9,760 146 $7,372 7,140 232 -- -- $19,411 4,438 14,416 557 $262 262 $70,007 -- 68,435 1,572 -- -- -- $73,070 -- 72,196 874 $127,088 46,953 Selected Bond Funds Estimated 2019-20 114,047 Special Funds SCHEDULE 9 AT 2020-21 GOVERNOR'S BUDGET COMPARATIVE STATEMENT OF EXPENDITURES (Dollars In Thousands) 1,089,340 $41,962 39,055 2,907 $2,304,041 693,085 962,370 648,586 $42,957 35,780 7,177 $20,073 9,796 9,760 517 $7,719 7,140 579 $1,580 1,580 $19,799 4,438 14,416 945 $752 752 $76,452 -- 74,435 2,017 $11,508 275 11,233 $88,901 -- 85,166 3,735 $936,943 167,834 Budget Total -- -- $692 -- 692 $12,710 -- -- 12,710 $2,368 -- 2,368 -- -- -- -- -- -- -- $1 1 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- $103,885 Federal Funds 1,310,385 $1,348 -- 1,348 $289,396 46,000 83,000 160,396 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- $6,547 -- 6,547 -- -- -- -- $212,517 20,000 General Fund -- $181 -- 181 $38,555 -- -- 38,555 $4,638 -- 4,638 $371 -- -- 371 $348 -- 348 $1,382 1,382 $389 -- -- 389 $569 569 $456 -- -- 456 $1,841 -- 1,841 $482 -- 120 362 $408,726 -- $1,056 -- 1,056 $628,428 101,000 449,368 78,060 $5,787 5,000 787 $2,146 -- 2,000 146 $2,557 2,375 182 -- -- $1,578 -- 1,100 478 $262 262 $13,262 -- 12,562 700 -- -- -- $10,384 -- 9,510 874 $304,290 24,054 Selected Bond Funds Estimated 2020-21 1,000 Special Funds 1,310,385 $2,585 -- 2,585 $956,379 147,000 532,368 277,011 $10,425 5,000 5,425 $2,517 -- 2,000 517 $2,905 2,375 530 $1,382 1,382 $1,967 -- 1,100 867 $831 831 $13,718 -- 12,562 1,156 $8,388 -- 8,388 $10,866 -- 9,630 1,236 $925,533 45,054 Budget Total -- -- $707 -- 707 $16,517 -- -- 16,517 $2,389 -- 2,389 -- -- -- -- -- -- -- $1 1 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- $103,955 Federal Funds Appendix 25 GOVERNOR'S BUDGET SUMMARY 2020-21 Totals,3882-General Obligation Bonds-Natural Res 120,266 161,735 Local Assistance Capital Outlay 3,234 2,121,337 51,300 Local Assistance 4140-Statewide Health Planning, Development State Operations Totals,4120-Emergency Medical Services Authority Local Assistance 5,216 $9,510 6,512 2,998 Totals,4100-State Council-Developmental Disabilities 4120-Emergency Medical Services Authority State Operations --- 4100-State Council-Developmental Disabilities State Operations HEALTH AND HUMAN SERVICES $2,172,637 State Operations $3,234 TOTALS, ENVIRONMENTAL PROTECTION Totals,3996-General Obligation Bonds-Environmental 3996-General Obligation Bonds-Environmental State Operations $6,059 6,059 Totals,3980-Environmental Health Hazard Assessment $2,016,507 Totals,3970-Resources Recycling and Recovery -- 2,016,507 $47,822 -- 47,822 $99,015 51,300 47,715 -- 3980-Environmental Health Hazard Assessment State Operations Local Assistance 3970-Resources Recycling and Recovery State Operations Totals,3960-Department of Toxic Substances Control Local Assistance 3960-Department of Toxic Substances Control State Operations Totals,3940-State Water Resources Control Board Local Assistance 3940-State Water Resources Control Board State Operations Totals,3930-Department of Pesticide Regulation -- -- 3930-Department of Pesticide Regulation State Operations Local Assistance -- -- Totals,3900-Air Resources Board Local Assistance 3900-Air Resources Board State Operations -- 3,447,133 ENVIRONMENTAL PROTECTION $3,729,134 State Operations $18,631 18,631 $988,486 TOTALS, NATURAL RESOURCES Totals,3885-Delta Stewardship Council 3885-Delta Stewardship Council State Operations General Fund -- 97,799 $4,172 74 4,098 -- -- 2,942,693 1,325,597 $4,268,290 -- -- $16,912 16,912 $1,567,418 1,387,955 179,463 $204,012 -- 204,012 $651,351 128,869 522,482 $100,292 29,409 70,883 $1,728,305 1,396,460 331,845 -91,017 205,337 1,373,654 $1,487,974 $2,832 -- -- -- -- -- -- 1,174,359 16,590 $1,190,949 -- -- -- -- -- -- -- -- -- -- $1,177,618 1,162,238 15,380 -- -- -- $13,331 12,121 1,210 122,724 1,080,300 236,883 $1,439,907 -- -- -- Selected Bond Funds Actual 2018-19 2,832 Special Funds 103,015 $13,682 6,586 7,096 -- -- 4,168,352 3,463,524 $7,631,876 $3,234 3,234 $22,971 22,971 $3,583,925 1,387,955 2,195,970 $251,834 -- 251,834 $1,927,984 1,342,407 585,577 $100,292 29,409 70,883 $1,741,636 1,408,581 333,055 193,442 1,405,903 5,057,670 $6,657,015 $21,463 21,463 $988,486 Budget Total $31 31 -- 464 $2,975 268 2,707 $7,009 7,009 232,693 131,100 $363,793 -- -- -- -- -- -- -- $30,215 -- 30,215 $313,972 232,693 81,279 $2,375 -- 2,375 $17,231 -- 17,231 37,235 118,050 121,565 $276,850 Federal Fund 60,102 $10,862 6,865 3,997 -- -- 63,950 608,066 $672,016 $3,330 3,330 $6,699 6,699 $456,752 -- 456,752 $84,959 2,000 82,959 $118,051 61,950 56,101 $2,225 -- 2,225 -- -- -- 233,488 122,265 3,456,297 $3,812,050 $19,414 19,414 $1,089,340 General Fund 923 -- 102,027 $4,796 300 4,496 -- -- 2,645,601 1,437,382 $4,082,983 -- -- $19,558 19,558 $1,644,758 1,403,290 241,468 $213,843 500 213,343 $703,857 157,833 546,024 $109,326 31,385 77,941 $1,391,641 1,052,593 339,048 122,503 491,540 1,652,442 $2,266,485 -- -- -- -- -- -- 388,749 17,020 $405,769 -- -- -- -- -- -- -- -- -- -- $392,157 376,428 15,729 -- -- -- $13,612 12,321 1,291 616,029 1,540,462 415,519 $2,572,010 -- -- -- Selected Bond Funds Estimated 2019-20 $923 Special Funds SCHEDULE 9 AT 2020-21 GOVERNOR'S BUDGET COMPARATIVE STATEMENT OF EXPENDITURES (Dollars In Thousands) 162,129 $15,658 7,165 8,493 -- -- 3,098,300 2,062,468 $5,160,768 $3,330 3,330 $26,257 26,257 $2,101,510 1,403,290 698,220 $298,802 2,500 296,302 $1,214,065 596,211 617,854 $111,551 31,385 80,166 $1,405,253 1,064,914 340,339 972,020 2,154,267 5,524,258 $8,650,545 $20,337 20,337 $1,089,340 Budget Total -- 564 $4,393 671 3,722 $7,780 7,780 235,720 133,619 $369,339 -- -- -- -- -- -- -- $36,105 3,027 33,078 $313,635 232,693 80,942 $2,381 -- 2,381 $17,218 -- 17,218 35,531 120,104 132,807 $288,442 $2,756 2,756 Federal Funds 2,000 $10,679 7,230 3,449 -- -- 380 139,424 $139,804 $3,110 3,110 $12,661 12,661 $3,521 -- 3,521 $68,546 -- 68,546 $51,616 380 51,236 $350 -- 350 -- -- -- 142,347 106,576 3,563,333 $3,812,256 $19,442 19,442 $1,310,385 General Fund -- 100,305 $4,501 300 4,201 -- -- 2,318,413 1,450,332 $3,768,745 -- -- $19,570 19,570 $1,585,512 1,356,315 229,197 $220,837 1,000 219,837 $710,600 150,991 559,609 $111,690 32,874 78,816 $1,120,536 777,233 343,303 8,753 313,556 1,446,849 $1,769,158 $1,761 -- -- -- -- -- -- 498 17,568 $18,066 -- -- -- -- -- -- -- -- -- -- $16,959 498 16,461 -- -- -- $1,107 -- 1,107 129,510 810,854 151,952 $1,092,316 -- -- -- Selected Bond Funds Estimated 2020-21 1,761 Special Funds 102,305 $15,180 7,530 7,650 -- -- 2,319,291 1,607,324 $3,926,615 $3,110 3,110 $32,231 32,231 $1,589,033 1,356,315 232,718 $289,383 1,000 288,383 $779,175 151,869 627,306 $112,040 32,874 79,166 $1,121,643 777,233 344,410 280,610 1,230,986 5,162,134 $6,673,730 $21,203 21,203 $1,310,385 Budget Total -- 455 $5,014 671 4,343 $7,787 7,787 235,720 133,172 $368,892 -- -- -- -- -- -- -- $35,808 3,027 32,781 $313,520 232,693 80,827 $2,368 -- 2,368 $17,196 -- 17,196 35,480 118,200 137,600 $291,280 $2,758 2,758 Federal Funds Appendix 26 GOVERNOR'S BUDGET SUMMARY 2020-21 Local Assistance 37,577 4,498 243,288 Totals,4260-State Department of Health Care Services -- Local Assistance 705 65,609 --- Totals,4800-California Health Benefit Exchange 5160-Department of Rehabilitation State Operations -- Totals,4700-Dept of Community Services, Development 4800-California Health Benefit Exchange Local Assistance -- -- 4700-Dept of Community Services, Development State Operations Local Assistance -- -- -- $1,710,208 17,706 1,692,502 -- 3,425 -- -- $44,960 43,359 1,601 $58,803 20,000 38,803 -- -- -- $3,723 -- $4,472,495 3,495 730 2,993 4,128,402 340,598 $995,856 4,866 $182,146 511,779 484,077 $12,712,961 12,683,149 29,812 $375,480 370,364 5,116 -- -- -- -- $4,797 4,542 255 $78,973 78,973 $119,043 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Selected Bond Funds Actual 2018-19 21,244 Special Funds 73,981 103,299 $19,993,279 Totals,4560-Mental Hlth Svcs Ovrst and Acntblty Comm Local Assistance 4560-Mental Hlth Svcs Ovrst and Acntblty Comm State Operations Totals,4440-Department of State Hospitals Capital Outlay 4440-Department of State Hospitals State Operations Totals,4300-Department of Developmental Services Capital Outlay Local Assistance 4300-Department of Developmental Services State Operations Totals,4265-Department of Public Health Capital Outlay Local Assistance 4265-Department of Public Health State Operations 19,749,991 4260-State Department of Health Care Services State Operations Local Assistance -- Totals,4250-Children and Families Commission -- -- Local Assistance 4250-Children and Families Commission State Operations 206 $206 4185-California Senior Legislature State Operations Totals,4185-California Senior Legislature --- Totals,4180-Commission on Aging $37,009 32,511 4180-Commission on Aging State Operations Totals,4170-Department of Aging Local Assistance 4170-Department of Aging State Operations --- Totals,4150-Department of Managed Health Care $42,793 4150-Department of Managed Health Care State Operations Totals,4140-Statewide Health Planning, Development General Fund 705 69,034 -- -- $44,960 43,359 1,601 $58,803 20,000 38,803 $1,710,208 17,706 1,692,502 $4,476,218 3,495 4,131,395 341,328 $1,178,002 4,866 585,760 587,376 $32,706,240 32,433,140 273,100 $375,480 370,364 5,116 $206 206 -- -- $41,806 37,053 4,753 $78,973 78,973 $161,836 58,821 Budget Total 15,575 372,089 -- -- $308,106 290,594 17,512 -- -- -- -- -- -- $50,817 -- 48,106 2,711 $1,550,453 -- 1,220,001 330,452 $59,528,811 59,167,072 361,739 -- -- -- -- -- $501 501 $183,405 175,996 7,409 -- -- $1,464 1,000 Federal Fund 5,705 69,019 $381,200 381,200 -- -- -- -- -- -- $1,864,910 16,922 1,847,988 $5,034,074 -- 4,685,395 348,679 $313,115 1,080 190,146 121,889 $23,594,653 23,310,219 284,434 -- -- -- $306 306 -- -- $84,276 78,138 6,138 -- -- $183,191 123,089 General Fund -- 3,355 -- -- $10,000 9,500 500 $122,337 102,871 19,466 -- -- -- $4,027 -- 3,132 895 $1,126,075 -- 573,307 552,768 $11,620,567 11,476,083 144,484 $375,951 370,835 5,116 -- -- -- -- $4,806 4,546 260 $94,294 94,294 $133,683 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Selected Bond Funds Estimated 2019-20 31,656 Special Funds SCHEDULE 9 AT 2020-21 GOVERNOR'S BUDGET COMPARATIVE STATEMENT OF EXPENDITURES (Dollars In Thousands) 5,705 72,374 $381,200 381,200 $10,000 9,500 500 $122,337 102,871 19,466 $1,864,910 16,922 1,847,988 $5,038,101 -- 4,688,527 349,574 $1,439,190 1,080 763,453 674,657 $35,215,220 34,786,302 428,918 $375,951 370,835 5,116 $306 306 -- -- $89,082 82,684 6,398 $94,294 94,294 $316,874 154,745 Budget Total 10,736 386,018 -- -- $288,041 260,846 27,195 -- -- -- -- -- -- $56,377 -- 53,580 2,797 $1,482,787 -- 1,162,613 320,174 $66,267,265 65,718,181 549,084 -- -- -- -- -- $561 561 $188,660 176,746 11,914 -- -- $1,564 1,000 Federal Funds 6,375 69,559 $439,200 439,200 -- -- -- -- -- -- $2,073,857 229 2,073,628 $5,671,361 -- 5,314,051 357,310 $211,734 -- 103,522 108,212 $26,439,511 26,180,913 258,598 -- -- -- $306 306 -- -- $67,282 58,788 8,494 -- -- $33,333 31,333 General Fund -- 3,361 -- -- -- -- -- $45,032 29,156 15,876 -- -- -- $4,065 -- 3,170 895 $1,113,995 -- 600,541 513,454 $10,245,806 10,045,265 200,541 $375,951 370,835 5,116 -- -- -- -- $4,806 4,546 260 $93,749 93,749 $109,492 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Selected Bond Funds Estimated 2020-21 9,187 Special Funds 6,375 72,920 $439,200 439,200 -- -- -- $45,032 29,156 15,876 $2,073,857 229 2,073,628 $5,675,426 -- 5,317,221 358,205 $1,325,729 -- 704,063 621,666 $36,685,317 36,226,178 459,139 $375,951 370,835 5,116 $306 306 -- -- $72,088 63,334 8,754 $93,749 93,749 $142,825 40,520 Budget Total 10,066 384,935 -- -- $288,060 260,846 27,214 -- -- -- -- -- -- $56,303 -- 53,580 2,723 $1,415,563 -- 1,101,635 313,928 $67,543,712 67,071,053 472,659 -- -- -- -- -- $499 499 $168,731 158,983 9,748 -- -- $1,585 1,130 Federal Funds Appendix 27 GOVERNOR'S BUDGET SUMMARY 2020-21 Totals,5160-Department of Rehabilitation Totals,5196-State-Local Realignment, 2011 Totals,5496-Local Community Corrections 5596-Dist Attorney and Public Defender Svcs --- 5496-Local Community Corrections Local Assistance --- Totals,5396-Trial Court Security 2011 Realignment Totals,5296-Enhancing Law Enforcement Activities 5396-Trial Court Security 2011 Realignment Local Assistance --- 5296-Enhancing Law Enforcement Activities Local Assistance 64,647 $64,647 Totals,5228-Safe Neighborhoods and Schools Act $93,480 79,202 14,278 5228-Safe Neighborhoods and Schools Act Local Assistance Totals,5227-Board of State and Community Corrections Local Assistance 5227-Board of State and Community Corrections State Operations $12,309,135 30,794 Capital Outlay Totals,5225-Corrections and Rehabilitation 144,159 12,134,182 Local Assistance 5225-Corrections and Rehabilitation State Operations CORRECTIONS AND REHABILITATION 26,067 32,328,272 Local Assistance Capital Outlay 2,820,241 $35,174,580 $115,525 State Operations TOTALS, HEALTH AND HUMAN SERVICES Totals,5206-General Obligation Bonds-HHS 115,525 --- 5196-State-Local Realignment, 2011 Local Assistance 5206-General Obligation Bonds-HHS State Operations --- Totals,5195-State-Local Realignment, 1991 $8,227,058 8,035,304 191,754 $318,037 263,289 54,748 -- -- -- $66,314 5195-State-Local Realignment, 1991 Local Assistance Totals,5180-Department of Social Services Local Assistance 5180-Department of Social Services State Operations Totals,5175-Department of Child Support Services Local Assistance 5175-Department of Child Support Services State Operations Totals,5165-Dept of Youth and Community Restoration Local Assistance 5165-Dept of Youth and Community Restoration State Operations General Fund $1,365,961 1,365,961 $566,994 566,994 $489,900 489,900 - $64,647 -64,647 $83,518 83,518 -- - $363 -- -1,000 637 -- 24,550,159 786,544 $25,336,703 -- -- $5,012,893 5,012,893 $5,878,542 5,878,542 $43,075 1,220 41,855 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Selected Bond Funds Actual 2018-19 $3,425 Special Funds $1,365,961 1,365,961 $566,994 566,994 $489,900 489,900 -- -- $176,998 162,720 14,278 $12,308,772 30,794 143,159 12,134,819 26,067 56,878,431 3,606,785 $60,511,283 $115,525 115,525 $5,012,893 5,012,893 $5,878,542 5,878,542 $8,270,133 8,036,524 233,609 $318,037 263,289 54,748 -- -- -- $69,739 Budget Total -- -- -- -- -- -- -- -- $8,181 6,770 1,411 $1,110 -- -- 1,110 -- 68,275,079 1,621,596 $69,896,675 -- -- -- -- -- -- $7,350,403 6,954,898 395,505 $525,067 401,569 123,498 -- -- -- $387,664 Federal Fund -- -- -- -- -- -- $78,444 78,444 $255,407 233,809 21,598 $13,132,729 119,017 154,325 12,859,387 18,002 38,781,544 3,092,963 $41,892,509 $67,676 67,676 $4,700 4,700 -- -- $9,937,942 9,712,790 225,152 $340,880 283,297 57,583 -- -- -- $74,724 General Fund $1,458,582 1,458,582 $579,343 579,343 $489,900 489,900 - $78,444 -78,444 $78,419 77,035 1,384 $616 -- -1,000 1,616 -- 23,920,727 968,931 $24,889,658 -- -- $5,230,756 5,230,756 $6,116,182 6,116,182 $42,829 1,559 41,270 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Selected Bond Funds Estimated 2019-20 $3,355 Special Funds SCHEDULE 9 AT 2020-21 GOVERNOR'S BUDGET COMPARATIVE STATEMENT OF EXPENDITURES (Dollars In Thousands) $1,458,582 1,458,582 $579,343 579,343 $489,900 489,900 -- -- $333,826 310,844 22,982 $13,133,345 119,017 153,325 12,861,003 18,002 62,702,271 4,061,894 $66,782,167 $67,676 67,676 $5,235,456 5,235,456 $6,116,182 6,116,182 $9,980,771 9,714,349 266,422 $340,880 283,297 57,583 -- -- -- $78,079 Budget Total -- -- -- -- -- -- -- -- $47,093 43,598 3,495 $1,999 -- -- 1,999 -- 75,091,546 1,881,096 $76,972,642 -- -- -- -- -- -- $7,693,829 7,252,341 441,488 $584,631 454,832 129,799 -- -- -- $396,754 Federal Funds -- -- -- -- -- -- $122,465 122,465 $127,110 99,593 27,517 $13,199,670 111,290 214,603 12,873,777 229 43,905,349 3,548,363 $47,453,941 $92,680 92,680 $9,400 9,400 -- -- $11,682,036 11,449,716 232,320 $362,386 304,743 57,643 $284,242 78 284,164 $75,934 General Fund $1,542,234 1,542,234 $590,496 590,496 $489,900 489,900 - $122,465 -122,465 $123,915 121,677 2,238 $202 -- -1,000 1,202 -- 22,795,489 983,014 $23,778,503 -- -- $5,421,724 5,421,724 $6,315,005 6,315,005 $41,016 -4,240 45,256 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Selected Bond Funds Estimated 2020-21 $3,361 Special Funds $1,542,234 1,542,234 $590,496 590,496 $489,900 489,900 -- -- $251,025 221,270 29,755 $13,199,872 111,290 213,603 12,874,979 229 66,700,838 4,531,377 $71,232,444 $92,680 92,680 $5,431,124 5,431,124 $6,315,005 6,315,005 $11,723,052 11,445,476 277,576 $362,386 304,743 57,643 $284,242 78 284,164 $79,295 Budget Total -- -- -- -- -- -- -- -- $47,258 43,598 3,660 $1,647 -- -- 1,647 -- 76,236,584 1,799,359 $78,035,943 -- -- -- -- -- -- $7,525,749 7,080,971 444,778 $627,605 497,649 129,956 $334 -- 334 $395,001 Federal Funds Appendix 28 GOVERNOR'S BUDGET SUMMARY 2020-21 Local Assistance -- 288,008 30,794 Local Assistance Capital Outlay -- Totals, 6360-Commission on Teacher Credentialing Local Assistance 6360-Commission on Teacher Credentialing State Operations Totals, 6350-School Facilities Aid Program 6350-School Facilities Aid Program Local Assistance Totals, 6305-Retirement Costs for Community Colleges Local Assistance 6305-Retirement Costs for Community Colleges State Operations Totals, 6300-Teachers Retirement System Contributions Local Assistance 6300-Teachers Retirement System Contributions State Operations $94,106 94,106 -- $100,000 100,000 - $413,847 -239,362 -174,485 $5,328,316 3,082,316 2,246,000 $1,388 1,388 Totals, 6255-Summer School for the Arts 6255-Summer School for the Arts State Operations 744 $744 Totals, 6125-Education Audit Appeals Panel 6125-Education Audit Appeals Panel State Operations $42,753 24,905 Totals, 6120-State Library 17,848 Local Assistance $28,385 -- 28,385 - $63,151 -63,151 -- -- -- -- -- -- -- -- -- -- $880 552 328 $78,454 108 $49,957,136 74,287 4,167 -- 2,872,935 637 $2,873,572 -- -- -- -- $221,270 221,270 $169,369 169,369 $41,570 -- -- -- -- $628,969 628,969 -- -- -- -- -- -- -- -- -- -- -- -- -- $3,212 -- -- 3,212 -- -- -- -- -- -- -- -- -- -- -- -- -- Selected Bond Funds Actual 2018-19 41,570 Special Funds 49,777,875 6120-State Library State Operations Totals, 6100-Department of Education Capital Outlay Local Assistance 6100-Department of Education State Operations 179,153 12,108,301 EDUCATION $12,427,103 State Operations Totals,5996-General Obligation Bonds-DCR TOTALS, CORRECTIONS AND REHABILITATION 21,910 $21,910 5996-General Obligation Bonds-DCR State Operations -62,069 - $62,069 Totals,5990-Federal Immigration Funding-Incarceratn Totals,5796-Enhancing Law Enforcement Act Growth 5990-Federal Immigration Funding-Incarceratn State Operations --- 5796-Enhancing Law Enforcement Act Growth Local Assistance --- Totals,5696-Juvenile Justice Programs -- 5696-Juvenile Justice Programs Local Assistance Totals,5596-Dist Attorney and Public Defender Svcs General Fund $122,491 94,106 28,385 $665,818 665,818 - $413,847 -239,362 -174,485 $5,328,316 3,082,316 2,246,000 $1,388 1,388 $744 744 $43,633 25,457 18,176 $50,038,802 108 49,852,162 186,532 30,794 3,160,943 12,108,938 $15,300,675 $21,910 21,910 - $62,069 -62,069 $221,270 221,270 $169,369 169,369 $41,570 41,570 Budget Total -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- $18,575 11,266 7,309 $8,213,000 -- 8,021,780 191,220 -- 6,770 64,590 $71,360 -- -- $62,069 62,069 Federal Fund -- -- -- -- -- -- -- -- -- $300,000 300,000 - $344,947 -258,171 -86,776 $4,440,223 3,323,223 1,117,000 $1,430 1,430 $1,193 1,193 $54,904 35,585 19,319 $52,061,170 2,177 51,826,328 232,665 119,017 466,578 12,846,601 $13,432,196 $16,216 16,216 - $50,600 -50,600 General Fund $30,209 -- 30,209 - $236,781 -236,781 -- -- -- -- -- -- -- -- -- -- $910 552 358 $93,361 -- 88,911 4,450 -- 3,012,312 3,000 $3,015,312 -- -- -- -- $257,433 257,433 $181,717 181,717 $47,746 -- -- -- -- $1,573,228 1,573,228 -- -- -- -- -- -- -- -- -- -- -- -- -- $3,335 -- -- 3,335 -- -- -- -- -- -- -- -- -- -- -- -- -- Selected Bond Funds Estimated 2019-20 47,746 Special Funds SCHEDULE 9 AT 2020-21 GOVERNOR'S BUDGET COMPARATIVE STATEMENT OF EXPENDITURES (Dollars In Thousands) $30,209 -- 30,209 $1,636,447 1,636,447 - $344,947 -258,171 -86,776 $4,440,223 3,323,223 1,117,000 $1,430 1,430 $1,193 1,193 $55,814 36,137 19,677 $52,157,866 2,177 51,915,239 240,450 119,017 3,478,890 12,849,601 $16,447,508 $16,216 16,216 - $50,600 -50,600 $257,433 257,433 $181,717 181,717 $47,746 47,746 Budget Total -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- $18,801 11,266 7,535 $8,314,544 -- 8,127,641 186,903 -- 43,598 56,094 $99,692 -- -- $50,600 50,600 Federal Funds -- -- -- -- -- -- $260,000 260,000 -- -- -- - $342,192 -279,887 -62,305 $4,393,420 3,591,420 802,000 $1,431 1,431 $1,191 1,191 $35,541 16,625 18,916 $53,004,470 -- 52,820,201 184,269 111,290 436,661 12,839,570 $13,387,521 $7,218 7,218 - $68,942 -68,942 General Fund $29,817 -- 29,817 $296,062 296,062 -- -- -- -- -- -- -- -- -- -- $910 552 358 $100,799 -- 95,959 4,840 -- 3,126,165 3,440 $3,129,605 -- -- -- -- $259,130 259,130 $192,871 192,871 $53,322 -- -- -- -- $1,538,051 1,538,051 -- -- -- -- -- -- -- -- -- -- -- -- -- $3,336 -- -- 3,336 -- -- -- -- -- -- -- -- -- -- -- -- -- Selected Bond Funds Estimated 2020-21 53,322 Special Funds $289,817 260,000 29,817 $1,834,113 1,834,113 - $342,192 -279,887 -62,305 $4,393,420 3,591,420 802,000 $1,431 1,431 $1,191 1,191 $36,451 17,177 19,274 $53,108,605 -- 52,916,160 192,445 111,290 3,562,826 12,843,010 $16,517,126 $7,218 7,218 - $68,942 -68,942 $259,130 259,130 $192,871 192,871 $53,322 53,322 Budget Total -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- $18,807 11,266 7,541 $8,200,454 -- 8,017,472 182,982 -- 43,598 74,249 $117,847 -- -- $68,942 68,942 Federal Funds Appendix 29 GOVERNOR'S BUDGET SUMMARY 2020-21 2,418,477 -- 3,743,238 246,393 7,601,804 Local Assistance Totals, Higher Education 13,327,707 60,441,644 Local Assistance $73,769,459 $16,240,386 State Operations TOTALS, EDUCATION -- 8,638,582 Higher Education State Operations 321,937 $321,937 Totals, 7996-General Obligation Bonds-Hi Ed 7996-General Obligation Bonds-Hi Ed State Operations 1,169,561 19,803 $413,847 239,362 174,485 $246,393 22,727 63,230 $85,957 $41,389 -- 11,039 30,350 -- -- $4,869 4,869 -- -- -- -- -- -- $6,269 -- $6,211,240 -- 99 -- -- $1,500 1,500 -- -- -- -- -- 6,170 $1,189,364 Capital Outlay 28,751 $28,751 6,192,881 18,359 $312,852 312,852 $3,781,246 3,781,246 $20,269 20,269 -- -- -- $3,743,238 Totals, 6980-Student Aid Commission Local Assistance 6980-Student Aid Commission State Operations Totals, 6878-Retirement Costs-Hi Ed-CC Local Assistance 6878-Retirement Costs-Hi Ed-CC State Operations Totals, 6874-General Obligation Bonds-Hi Ed-CC 6874-General Obligation Bonds-Hi Ed-CC State Operations Totals, 6870-Board of Governors of Community Colleges Capital Outlay Local Assistance 6870-Board of Governors of Community Colleges State Operations Totals, 6645-CSU Health Benefits, Retired Annuitants 6645-CSU Health Benefits, Retired Annuitants State Operations Totals, 6610-California State University 6610-California State University State Operations Totals, 6600-Hastings College of the Law 6600-Hastings College of the Law State Operations Totals, 6445-Institute for Regenerative Medicine Local Assistance 6445-Institute for Regenerative Medicine State Operations Totals, 6440-University of California 6440-University of California State Operations $44,568 -- $57,529,073 108 Totals, K-12 Education Capital Outlay 11,688 32,880 4,689,125 52,839,840 -- -- 822,148 20,084 $936,033 $303,852 93,801 193,179 16,872 -- -- -- -- -- -- -- -- -- -- $96,203 93,801 -- 2,402 -- -- -- -- -- -- $207,649 193,179 14,470 -- -- $632,181 -- 628,969 3,212 -- Selected Bond Funds Actual 2018-19 Local Assistance $2,418,477 Special Funds K-12 Education State Operations Totals, 6396-General Obligation Bonds-K-12 6396-General Obligation Bonds-K-12 State Operations General Fund 61,286,519 13,411,021 $74,791,449 $16,585,627 93,801 7,806,022 8,685,804 $321,937 321,937 $1,194,233 1,174,430 19,803 $413,847 239,362 174,485 $246,393 246,393 $6,313,712 93,801 6,199,051 20,860 $312,852 312,852 $3,782,746 3,782,746 $20,269 20,269 $207,649 193,179 14,470 $3,771,989 3,771,989 $58,205,822 108 53,480,497 4,725,217 $2,418,477 2,418,477 Budget Total --- 8,033,046 5,604,091 $13,637,137 $5,405,562 -- -- 5,405,562 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- $1,495,573 1,495,573 -- -- -- -- -- $3,909,989 3,909,989 $8,231,575 -- 8,033,046 198,529 Federal Fund 63,316,612 12,846,533 $76,165,322 $17,490,371 -- 8,089,647 9,400,724 $346,227 346,227 $1,618,884 1,592,654 26,230 $344,947 258,171 86,776 $264,643 264,643 $6,258,746 -- 6,238,822 19,924 $331,067 331,067 $4,371,325 4,371,325 $16,328 16,328 -- -- -- $3,938,204 3,938,204 $58,674,951 2,177 55,226,965 3,445,809 $2,160,978 2,160,978 General Fund --- -131,303 228,352 $97,049 $209,350 -- 16,015 193,335 -- -- $5,631 5,631 -- -- -- -- -- -- $10,488 -- 10,384 104 -- -- $5,500 5,500 -- -- -- -- -- $187,731 187,731 - $112,301 -- -147,318 -- 1,823,228 21,423 $2,261,324 $684,761 416,673 250,000 18,088 -- -- -- -- -- -- -- -- -- -- $419,147 416,673 -- 2,474 -- -- -- -- -- -- $265,614 250,000 15,614 -- -- $1,576,563 -- 1,573,228 3,335 -- Selected Bond Funds Estimated 2019-20 35,017 Special Funds SCHEDULE 9 AT 2020-21 GOVERNOR'S BUDGET COMPARATIVE STATEMENT OF EXPENDITURES (Dollars In Thousands) 65,008,537 13,096,308 $78,523,695 $18,384,482 416,673 8,355,662 9,612,147 $346,227 346,227 $1,624,515 1,598,285 26,230 $344,947 258,171 86,776 $264,643 264,643 $6,688,381 416,673 6,249,206 22,502 $331,067 331,067 $4,376,825 4,376,825 $16,328 16,328 $265,614 250,000 15,614 $4,125,935 4,125,935 $60,139,213 2,177 56,652,875 3,484,161 $2,160,978 2,160,978 Budget Total --- 8,138,907 5,697,153 $13,836,060 $5,502,715 -- -- 5,502,715 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- $1,422,215 1,422,215 -- -- -- -- -- $4,080,500 4,080,500 $8,333,345 -- 8,138,907 194,438 Federal Funds 64,687,621 12,459,776 $77,147,397 $17,508,587 -- 8,279,262 9,229,325 $165,507 165,507 $1,656,387 1,627,158 29,229 $342,192 279,887 62,305 $340,415 340,415 $6,392,586 -- 6,372,217 20,369 $362,466 362,466 $4,230,892 4,230,892 $20,075 20,075 -- -- -- $3,998,067 3,998,067 $59,638,810 -- 56,408,359 3,230,451 $2,284,949 2,284,949 General Fund --- 403,250 219,186 $622,436 $194,848 -- 10,677 184,171 -- -- $4,976 4,976 -- -- -- -- -- -- $5,805 -- 5,701 104 -- -- $2,000 2,000 -- -- -- -- -- $182,067 182,067 $427,588 -- 392,573 -- 1,788,051 21,426 $1,959,890 $418,503 150,413 250,000 18,090 -- -- -- -- -- -- -- -- -- -- $152,889 150,413 -- 2,476 -- -- -- -- -- -- $265,614 250,000 15,614 -- -- $1,541,387 -- 1,538,051 3,336 -- Selected Bond Funds Estimated 2020-21 35,015 Special Funds 66,878,922 12,700,388 $79,729,723 $18,121,938 150,413 8,539,939 9,431,586 $165,507 165,507 $1,661,363 1,632,134 29,229 $342,192 279,887 62,305 $340,415 340,415 $6,551,280 150,413 6,377,918 22,949 $362,466 362,466 $4,232,892 4,232,892 $20,075 20,075 $265,614 250,000 15,614 $4,180,134 4,180,134 $61,607,785 -- 58,338,983 3,268,802 $2,284,949 2,284,949 Budget Total --- 8,028,738 5,774,238 $13,802,976 $5,583,715 -- -- 5,583,715 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- $1,422,215 1,422,215 -- -- -- -- -- $4,161,500 4,161,500 $8,219,261 -- 8,028,738 190,523 Federal Funds Appendix 30 GOVERNOR'S BUDGET SUMMARY 2020-21 Totals,7870-California Victim Compensation Board 7900-Public Employees Retirement System State Operations 3,404,000 $134 -- -- $101,877 71,869 30,008 134 Local Assistance - $501,600 $733,753 Totals,7760-Department of General Services 7870-California Victim Compensation Board State Operations 117,355 $21,771 21,771 $77,256 77,256 -- -- -- -- $58 58 -- 742,939 $742,939 $589,943 589,943 -- -- $1,213 1,213 $504 -- 504 $151,279 -- -618,955 73,337 $803,005 803,005 $320,924 320,924 $1,436 1,436 $4,919 4,919 $9,161 -- -- -- -- -- $6,623 -- 6,623 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 93,801 Selected Bond Funds Actual 2018-19 151,279 Special Funds 660,416 Capital Outlay 7760-Department of General Services State Operations Totals,7730-Franchise Tax Board 7730-Franchise Tax Board State Operations Totals,7600-Department of Tax and Fee Administration 7600-Department of Tax and Fee Administration State Operations Totals,7503-State Personnel Board 7503-State Personnel Board State Operations Totals,7502-Department of Technology 7502-Department of Technology State Operations Totals,7501-Department of Human Resources 7501-Department of Human Resources State Operations 9,161 -- Local Assistance GOVERNMENT OPERATIONS 128,025 State Operations $128,025 Totals,7350-Department of Industrial Relations TOTALS, LABOR AND WORKFORCE DEVELOPMENT --- 7350-Department of Industrial Relations State Operations $13,020 13,020 Totals,7320-Public Employment Relations Board 7320-Public Employment Relations Board State Operations 9,339 $9,339 7300-Agricultural Labor Relations Board State Operations Totals,7300-Agricultural Labor Relations Board $758 -- 758 $104,908 -- 104,908 108 Totals,7120-Workforce Development Board Local Assistance 7120-Workforce Development Board State Operations Totals,7100-Employment Development Department Local Assistance 7100-Employment Development Department State Operations LABOR AND WORKFORCE DEVELOPMENT Capital Outlay General Fund 3,404,000 $102,011 71,869 30,142 $238,776 41,461 197,315 $824,776 824,776 $398,180 398,180 $1,436 1,436 $4,919 4,919 $9,219 9,219 -- 870,964 $870,964 $589,943 589,943 $13,020 13,020 $10,552 10,552 $1,262 -- 1,262 $256,187 -- 256,187 93,909 Budget Total -- -- $17,599 17,087 512 -- -- -- -- -- $261 261 -- -- -- -- -- -- 5,744,321 767,528 $6,511,849 $38,302 38,302 -- -- -- -- $4,438 -- 4,438 $6,469,109 5,744,321 724,788 Federal Fund 500,696 $138 -- 138 $93,415 30,345 63,070 $864,592 864,592 $358,848 358,848 $2,563 2,563 $5,122 5,122 $11,093 11,093 48,830 137,459 $186,289 $12,300 12,300 $15,335 15,335 $10,064 10,064 $51,812 48,830 2,982 $96,778 -- 96,778 2,177 General Fund -- -- $104,878 72,361 32,517 $128,574 -- 128,574 $24,297 24,297 $103,604 103,604 -- -- -- -- $75 75 44,249 807,186 $851,435 $616,532 616,532 -- -- $1,279 1,279 $49,911 44,249 5,662 $183,713 -- -- -- -- -- $9,012 -- 9,012 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 416,673 Selected Bond Funds Estimated 2019-20 183,713 Special Funds SCHEDULE 9 AT 2020-21 GOVERNOR'S BUDGET COMPARATIVE STATEMENT OF EXPENDITURES (Dollars In Thousands) 500,696 $105,016 72,361 32,655 $231,001 30,345 200,656 $888,889 888,889 $462,452 462,452 $2,563 2,563 $5,122 5,122 $11,168 11,168 93,079 944,645 $1,037,724 $628,832 628,832 $15,335 15,335 $11,343 11,343 $101,723 93,079 8,644 $280,491 -- 280,491 418,850 Budget Total -- -- $24,851 23,000 1,851 -- -- -- -- -- $243 243 -- -- -- -- -- -- 5,842,695 745,428 $6,588,123 $37,561 37,561 -- -- -- -- $4,922 -- 4,922 $6,545,640 5,842,695 702,945 Federal Funds -- -- $23,638 -- 23,638 $120,553 -- 120,553 $863,217 863,217 $353,086 353,086 $2,591 2,591 $27,726 27,726 $19,465 19,465 11,000 148,170 $159,170 -- -- $15,319 15,319 $10,070 10,070 $12,301 11,000 1,301 $121,480 -- 121,480 General Fund -- -- $85,563 75,656 9,907 $126,450 -- 126,450 $25,160 25,160 $113,833 113,833 -- -- -- -- $75 75 34,749 845,225 $879,974 $664,118 664,118 -- -- $1,831 1,831 $37,550 34,749 2,801 $176,475 -- -- -- -- -- $7,916 -- 7,916 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 150,413 Selected Bond Funds Estimated 2020-21 176,475 Special Funds -- $109,201 75,656 33,545 $254,919 -- 254,919 $888,377 888,377 $466,919 466,919 $2,591 2,591 $27,726 27,726 $19,540 19,540 45,749 993,395 $1,039,144 $664,118 664,118 $15,319 15,319 $11,901 11,901 $49,851 45,749 4,102 $297,955 -- 297,955 150,413 Budget Total -- -- $24,828 23,000 1,828 -- -- -- -- -- $262 262 -- -- -- -- -- -- 6,031,927 724,463 $6,756,390 $36,493 36,493 -- -- -- -- $4,971 -- 4,971 $6,714,926 6,031,927 682,999 Federal Funds Appendix 31 GOVERNOR'S BUDGET SUMMARY 2020-21 Totals,7900-Public Employees Retirement System 45 11,899 Totals, 8855-California State Auditor's Office 8855-California State Auditor's Office State Operations $19,723 19,723 --- Totals, 8825-Comm on Asian & Pacf Islndr Amer Affairs $497 497 $754 754 -- 8825-Comm on Asian & Pacf Islndr Amer Affairs State Operations Totals, 8820-Comm on the Status of Women and Girls 8820-Comm on the Status of Women and Girls State Operations Totals, 8780-Milton Marks Little Hoover Commission 8780-Milton Marks Little Hoover Commission State Operations Totals, 8660-Public Utilities Commission -- -- 8660-Public Utilities Commission State Operations Local Assistance --- Totals, 8640-Political Reform Act of 1974 $11,899 8640-Political Reform Act of 1974 State Operations Totals, 8620-Fair Political Practices Commission 8620-Fair Political Practices Commission State Operations $148,894 11,768 Capital Outlay Totals, 8570-Department of Food and Agriculture 9,510 127,616 $1 1 $16,083 Local Assistance 8570-Department of Food and Agriculture State Operations Totals, 8385-Citizens Compensation Commission 8385-Citizens Compensation Commission State Operations Totals, 8260-Arts Council 1,783 14,300 Local Assistance $14,229 14,229 $25,045 25,000 8260-Arts Council State Operations Totals, 8140-State Public Defender 8140-State Public Defender State Operations Totals, 8120-Peace Officer Standards, Training Comm Local Assistance 8120-Peace Officer Standards, Training Comm State Operations GENERAL GOVERNMENT 660,416 -- Local Assistance Capital Outlay 4,619,257 $5,279,673 $2,341 2,341 $3,404,000 State Operations TOTALS, GOVERNMENT OPERATIONS Totals,7910-Office of Administrative Law 7910-Office of Administrative Law State Operations General Fund -- -- -- $898 898 -- -- -- -- -- -- $1,295,707 1,014,562 281,145 -- -- -- -- $442,001 -- 249,727 192,274 -- -- $2,286 1,405 881 -- -- -- -- -- -618,955 71,869 246,448 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- $32,189 -- 29,613 2,576 -- -- -- -- -- -- -- -- -- -- -- -- 6,623 $6,623 -- -- -- Selected Bond Funds Actual 2018-19 - $300,638 Special Funds $20,621 20,621 -- -- $497 497 $754 754 $1,295,707 1,014,562 281,145 -- -- $11,899 11,899 $623,084 11,768 288,850 322,466 $1 1 $18,369 15,705 2,664 $14,229 14,229 $25,045 25,000 45 41,461 71,869 4,872,328 $4,985,658 $2,341 2,341 $3,404,000 Budget Total -- -- -- -- -- -- -- -- -- -- -- $8,074 -- 8,074 -- -- -- -- $109,612 -- -- 109,612 -- -- $1,384 299 1,085 -- -- -- -- -- -- 17,087 773 $17,860 Federal Fund $25,595 25,595 $500 500 $823 823 $1,130 1,130 -- -- -- -- -- $13,345 13,345 $161,382 3,946 16,810 140,626 $10 10 $62,533 59,660 2,873 $15,147 15,147 $34,995 22,860 12,135 30,345 -- 1,808,496 $1,838,841 $2,374 2,374 $500,696 General Fund -- -- -- -- -- -- -- -- -- -- -- $1,664,576 1,197,187 467,389 -- -- -- -- $309,641 -- 132,514 177,127 -- -- $2,295 1,405 890 -- -- -- -- -- -- 72,361 289,067 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- $9,273 -- 6,687 2,586 -- -- -- -- -- -- -- -- -- -- -- -- 9,012 $9,012 -- -- -- Selected Bond Funds Estimated 2019-20 $361,428 Special Funds SCHEDULE 9 AT 2020-21 GOVERNOR'S BUDGET COMPARATIVE STATEMENT OF EXPENDITURES (Dollars In Thousands) $25,595 25,595 $500 500 $823 823 $1,130 1,130 $1,664,576 1,197,187 467,389 -- -- $13,345 13,345 $480,296 3,946 156,011 320,339 $10 10 $64,828 61,065 3,763 $15,147 15,147 $34,995 22,860 12,135 30,345 72,361 2,106,575 $2,209,281 $2,374 2,374 $500,696 Budget Total -- -- -- -- -- -- -- -- -- -- -- $11,148 -- 11,148 -- -- -- -- $108,190 -- -- 108,190 -- -- $1,190 100 1,090 -- -- -- -- -- -- 23,000 2,094 $25,094 Federal Funds -- $24,743 24,743 $500 500 $1,157 1,157 $1,242 1,242 -- -- -- $3,024 3,024 $14,284 14,284 $224,620 15,262 90,643 118,715 $10 10 $36,736 34,800 1,936 $20,017 20,017 $35,003 22,860 12,143 -- -- 1,413,089 $1,413,089 $2,813 2,813 General Fund -- -- -- -- -- -- -- -- -- -- -- $1,598,781 1,170,812 427,969 -- -- -- -- $247,557 -- 86,845 160,712 -- -- $2,295 1,405 890 -- -- -- -- -- -- 75,656 275,425 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- $7,655 -- 5,994 1,661 -- -- -- -- -- -- -- -- -- -- -- -- 7,916 $7,916 -- -- -- Selected Bond Funds Estimated 2020-21 $351,081 Special Funds -- $24,743 24,743 $500 500 $1,157 1,157 $1,242 1,242 $1,598,781 1,170,812 427,969 $3,024 3,024 $14,284 14,284 $479,832 15,262 183,482 281,088 $10 10 $39,031 36,205 2,826 $20,017 20,017 $35,003 22,860 12,143 -- 75,656 1,696,430 $1,772,086 $2,813 2,813 Budget Total -- -- -- -- -- -- -- -- -- -- -- $11,094 -- 11,094 -- -- -- -- $109,490 -- -- 109,490 -- -- $1,173 100 1,073 -- -- -- -- -- -- 23,000 2,090 $25,090 Federal Funds Appendix 32 GOVERNOR'S BUDGET SUMMARY 2020-21 40,606 388 411,328 2 Tax Relief-Local Gov Local Assistance Totals, 9350-Shared Revenues 9350-Shared Revenues Local Assistance 486,759 $505 505 $2 9300-Payment to Counties for Homicide Trials Local Assistance Totals, 9300-Payment to Counties for Homicide Trials $840 840 $5,567 5,567 $68,517 68,517 $411,328 Totals, 9286-Trial Court Security - Judgeships 9286-Trial Court Security - Judgeships Local Assistance Totals, 9285-Trial Court Security-Court Construction 9285-Trial Court Security-Court Construction Local Assistance Totals, 9210-Local Government Financing 9210-Local Government Financing Local Assistance Totals, 9100-Tax Relief 9100-Tax Relief Local Assistance $1,093,365 29,691 Capital Outlay Totals, Non-Agency Departments 355,004 708,670 Local Assistance Non-Agency Departments State Operations 14,836 $14,836 Totals, 8998-General Obligation Bonds-Gen Govt $430,948 Totals, 8955-Department of Veterans Affairs 7,148 Capital Outlay 8998-General Obligation Bonds-Gen Govt State Operations 5,700 418,100 Local Assistance 8955-Department of Veterans Affairs State Operations - $75,526 2,625,931 $2,623,190 2,623,190 -- -- -- -- -- -- - $784 -784 $3,525 3,525 $1,749,486 571 1,270,045 478,870 -- -- $3,215 571 2,205 439 -- -- -75,526 Totals, 8951-Federal Per Diem for Veterans Housing $1,570 $91,171 Totals, 8940-Military Department 8951-Federal Per Diem for Veterans Housing State Operations -- 1,570 $2,146 2,146 -- $1,275 1,275 $388 -- -- -- -- -- -- -- -- -- -- -- -- -- -- $41,367 8,753 29,613 3,001 -- -- $9,178 8,753 -- 425 -- -- -- -- -- -- -- -- -- -- -- -- Selected Bond Funds Actual 2018-19 -- 60 80,336 $302,714 300,434 2,280 $51,491 51,491 $40,606 Special Funds 10,775 Capital Outlay Local Assistance 8940-Military Department State Operations Totals, 8885-Commission on State Mandates Local Assistance 8885-Commission on State Mandates State Operations Totals, 8880-Financial Information System for CA 8880-Financial Information System for CA State Operations Totals, 8860-Department of Finance 8860-Department of Finance State Operations General Fund 3,112,690 $2,623,695 2,623,695 $2 2 $840 840 $5,567 5,567 $67,733 67,733 $414,853 414,853 $2,884,218 39,015 1,654,662 1,190,541 $14,836 14,836 $443,341 16,472 7,905 418,964 - $75,526 -75,526 $92,741 10,775 60 81,906 $304,860 302,580 2,280 $52,766 52,766 $40,994 40,994 Budget Total -- -- -- -- -- -- -- 30,476 $30,476 30,476 -- -- -- -- -- -- -- -- -- -- $356,883 33,124 299 323,460 -- -- $21,857 19,077 -- 2,780 $75,526 75,526 $140,430 14,047 -- 126,383 Federal Fund 505,387 $505 505 $1 1 $3,757 3,757 $7,000 7,000 $79,123 79,123 $415,001 415,001 $1,024,656 65,478 160,734 798,444 $11,537 11,537 $471,876 21,155 9,250 441,471 - $84,863 -84,863 $119,067 40,377 60 78,630 $54,660 52,094 2,566 $80,038 80,038 $56,881 56,881 General Fund --- 2,957,468 $2,959,973 2,959,973 -- -- -- -- -- -- -- -- - $2,505 -2,505 $1,961,796 -19,732 1,335,651 645,877 -- -- - $17,076 -19,732 2,205 451 -- -- $1,633 -- -- 1,633 $2,340 2,340 -- - $1,613 -- -- -- -- -- -- -- -- -- -- -- -- -- -- $9,718 -- 6,687 3,031 -- -- $445 -- -- 445 -- -- -- -- -- -- -- -- -- -- -- -- Selected Bond Funds Estimated 2019-20 -1,613 Special Funds SCHEDULE 9 AT 2020-21 GOVERNOR'S BUDGET COMPARATIVE STATEMENT OF EXPENDITURES (Dollars In Thousands) 3,462,855 $2,960,478 2,960,478 $1 1 $3,757 3,757 $7,000 7,000 $79,123 79,123 $412,496 412,496 $2,996,170 45,746 1,503,072 1,447,352 $11,537 11,537 $455,245 1,423 11,455 442,367 - $84,863 -84,863 $120,700 40,377 60 80,263 $57,000 54,434 2,566 $78,425 78,425 $56,881 56,881 Budget Total -- -- -- -- -- -- -- 38,260 $38,260 38,260 -- -- -- -- -- -- -- -- -- -- $347,581 18,504 100 328,977 -- -- $9,753 6,878 -- 2,875 $84,863 84,863 $132,437 11,626 -- 120,811 Federal Funds 431,888 $505 505 $1 1 $4,200 4,200 $7,000 7,000 $5,181 5,181 $415,001 415,001 $986,861 41,246 195,110 750,505 $8,091 8,091 $458,044 7,833 5,600 444,611 - $84,110 -84,110 $97,184 18,151 60 78,973 $43,928 41,147 2,781 $59,044 59,044 $43,344 43,344 General Fund -- -- -- -- -- 3,004,657 $3,007,162 3,007,162 -- -- -- -- -- -- -- -- - $2,505 -2,505 $1,855,651 700 1,263,264 591,687 -- -- $3,356 700 2,205 451 -- -- $1,665 -- -- 1,665 $1,997 -- -- -- -- -- -- -- -- -- -- -- -- -- -- $8,101 -- 5,994 2,107 -- -- $446 -- -- 446 -- -- -- -- -- -- -- -- -- -- -- -- Selected Bond Funds Estimated 2020-21 1,997 Special Funds 3,436,545 $3,007,667 3,007,667 $1 1 $4,200 4,200 $7,000 7,000 $5,181 5,181 $412,496 412,496 $2,850,613 41,946 1,464,368 1,344,299 $8,091 8,091 $461,846 8,533 7,805 445,508 - $84,110 -84,110 $98,849 18,151 60 80,638 $45,925 43,144 2,781 $59,044 59,044 $43,344 43,344 Budget Total -- -- -- -- -- -- -- 38,260 $38,260 38,260 -- -- -- -- -- -- -- -- -- -- $357,931 27,724 100 330,107 -- -- $12,336 9,573 -- 2,763 $84,110 84,110 $139,728 18,151 -- 121,577 Federal Funds Appendix 33 GOVERNOR'S BUDGET SUMMARY 2020-21 17,116 -391,094 681,747 9898-PERS General Fund Deferral Payment State Operations 9900-Statewide General Admin Exp (Pro Rata) $681,747 Totals, 9897-Section 3.60 Rate Adjustments Totals, 9898-PERS General Fund Deferral Payment --- 9897-Section 3.60 Rate Adjustments State Operations - $391,094 9894-Statewide Proposition 98 Reconciliation Local Assistance Totals, 9894-Statewide Proposition 98 Reconciliation $760,995 Totals, 9892-Supplemental Pension Payments 760,995 Totals, 9889-Public School System Stabilization Acct 9892-Supplemental Pension Payments State Operations --- 9889-Public School System Stabilization Acct Local Assistance - $759,962 -759,962 Totals, 9885-Reserve for Liquidation of Encumbrances 9885-Reserve for Liquidation of Encumbrances Unclassified 2,000 $2,000 Totals, 9860-Capital Outlay Planning, Studies 9860-Capital Outlay Planning, Studies Capital Outlay --- Totals, 9840-Contingencies-Emergencies Augmentation $944,509 944,509 $374 374 $11,967 11,967 $1,754,478 1,754,478 $12,901 12,901 $17,116 9840-Contingencies-Emergencies Augmentation State Operations Totals, 9802-June to July Payroll Deferral 9802-June to July Payroll Deferral State Operations Totals, 9800-Augmentation for Employee Compensation 9800-Augmentation for Employee Compensation State Operations Totals, 9670-Equity Claims & Settlements & Judgments 9670-Equity Claims & Settlements & Judgments State Operations Totals, 9650-Health, Dental Benefits for Annuitants 9650-Health, Dental Benefits for Annuitants State Operations Totals, 9625-Interest Payments to the Federal Govt 9625-Interest Payments to the Federal Govt State Operations Totals, 9620-Cash Management and Budgetary Loans 9620-Cash Management and Budgetary Loans State Operations --- Totals, 9612-Enhanced Tobacco Asset-Backed Bonds $25,753 25,753 $486,759 9612-Enhanced Tobacco Asset-Backed Bonds State Operations Totals, 9600-Debt Service GO Bonds Commercial Paper 9600-Debt Service GO Bonds Commercial Paper State Operations Totals, Tax Relief-Local Gov General Fund -- -- -- -- -- -- -- $75,034 75,034 -- -- -- -- -- -- -- -- $606,807 606,807 -- -- $5,421 5,421 -- -- $921 921 -- -- -- -- -- -- -- -- -- -- -- $1,954 1,954 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Selected Bond Funds Actual 2018-19 $2,625,931 Special Funds $681,747 681,747 -- -- - $391,094 -391,094 $837,983 837,983 -- -- - $759,962 -759,962 $2,000 2,000 -- -- $1,551,316 1,551,316 $374 374 $17,388 17,388 $1,754,478 1,754,478 $13,822 13,822 $17,116 17,116 -- -- $25,753 25,753 $3,112,690 Budget Total -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- $30,476 Federal Fund -- -- -- -- - $175,882 -175,882 $390,000 390,000 $524,150 524,150 -- -- $2,000 2,000 $14,996 14,996 -- -- $6,000 6,000 $30,498 30,498 $1,887,754 1,887,754 $31,000 31,000 $124,953 124,953 -- -- $41,804 41,804 $505,387 General Fund -- -- -- -- -- -- -- $300,112 300,112 - $524,150 -524,150 -- -- -- -- $15,000 15,000 -- -- -- -- -- -- -- -- $2,001 2,001 -- -- -- -- -- -- -- -- -- -- -- $6 6 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Selected Bond Funds Estimated 2019-20 $2,957,468 Special Funds SCHEDULE 9 AT 2020-21 GOVERNOR'S BUDGET COMPARATIVE STATEMENT OF EXPENDITURES (Dollars In Thousands) -- -- -- -- - $175,882 -175,882 $690,118 690,118 -- -- -- -- $2,000 2,000 $29,996 29,996 -- -- $6,000 6,000 $30,498 30,498 $1,887,754 1,887,754 $33,001 33,001 $124,953 124,953 -- -- $41,804 41,804 $3,462,855 Budget Total -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- $38,260 Federal Funds -- -- $184,938 184,938 - $76,521 -76,521 $817,000 817,000 - $37,621 -37,621 -- -- $2,000 2,000 $20,000 20,000 -- -- $660,223 660,223 -- -- $2,067,852 2,067,852 $31,000 31,000 $15,000 15,000 $1 1 $48,069 48,069 $431,888 General Fund -- -- -- $107,505 107,505 -- -- $231,804 231,804 $37,621 37,621 -- -- -- -- $15,000 15,000 -- -- $534,423 534,423 -- -- -- -- $2,001 2,001 -- -- -- -- -- -- -- -- -- -- -- $6 6 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Selected Bond Funds Estimated 2020-21 $3,004,657 Special Funds -- -- $292,443 292,443 - $76,521 -76,521 $1,048,810 1,048,810 -- -- -- -- $2,000 2,000 $35,000 35,000 -- -- $1,194,646 1,194,646 -- -- $2,067,852 2,067,852 $33,001 33,001 $15,000 15,000 $1 1 $48,069 48,069 $3,436,545 Budget Total -- -- -- -- -- -- $76,489 76,489 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- $38,260 Federal Funds Appendix 34 GOVERNOR'S BUDGET SUMMARY 2020-21 State Operations -775,910 677,071 $31,691 Capital Outlay Note: Numbers may not add due to rounding Unclassified - $759,962 $911,364 $96,528,561 Capital Outlay $45,181,152 Local Assistance $141,861,115 State Operations GRAND TOTAL - $759,962 $455,967 Local Assistance Unclassified $3,964,706 $3,692,402 State Operations TOTALS, GENERAL GOVERNMENT -- -- $1,223,099 $39,479,701 $17,311,592 $58,014,392 -- $571 $4,010,275 $1,844,124 $5,854,970 $1,479,553 -759,962 $2,112,278 Unclassified Totals, Statewide Expenditures -- 114,299 1,365,254 2,000 -385,796 Local Assistance Capital Outlay 3,256,036 Statewide Expenditures State Operations -- -- -196,766 - $196,766 Totals, 9910-General Fund Credits from Federal Funds $114,299 $24,170 Totals, 9901-Various Departments 9910-General Fund Credits from Federal Funds State Operations 114,299 -- $677,071 -- - $759,962 $41,015 $4,495,855 $5,813,785 $9,590,693 $3,593,785 -759,962 2,000 -271,497 4,623,244 - $196,766 -196,766 $138,469 -- 119,597 18,872 - $98,839 -98,839 Budget Total $62,924,721 -- $472,059 - $759,962 $2,606,522 $4,827,476 $140,835,738 $431,977 $5,731,512 $205,607,019 -- $8,753 $29,613 $4,955 $43,321 $1,954 -- -- -- 1,954 -- -- -- -- -- -- -- Selected Bond Funds Actual 2018-19 -- 5,298 18,872 - $775,910 Special Funds -- Capital Outlay Local Assistance 9901-Various Departments State Operations Totals, 9900-Statewide General Admin Exp (Pro Rata) General Fund -- -- -- -- -- -- -- -- -- -- -- -- -- -- $67,478 $1,499,343 $2,521,630 $4,088,451 $2,558,408 -- 2,000 833,222 1,723,186 - $182,521 -182,521 $629,335 -- 484,954 144,381 - $765,679 -765,679 General Fund $40,517,114 -- $2,172,390 -- $492,723 $85,288,712 $108,738,848 $9,820,417 $97,281,519 $149,748,685 -- $33,124 $30,775 $323,460 $387,359 Federal Fund -- $2,503,920 $38,668,728 $18,846,038 $60,018,686 -- - $19,732 $3,872,798 $1,640,219 $5,493,285 $574,021 -- -- -420,321 994,342 -- -- $104,252 -- 103,829 423 $676,806 -- $47,746 $5,378,828 $4,164,998 $9,591,572 $3,132,547 -- 2,000 412,901 2,717,646 - $182,521 -182,521 $733,587 -- 588,783 144,804 - $88,761 -88,761 Budget Total -- -- -- -- -- -- -- -- -- -- -- -- -- -- $18,504 $38,360 $328,977 $385,841 Federal Funds -- $86,893 $513,103 $3,861,470 $4,461,466 $3,042,717 -- 45,647 -113,895 3,110,965 - $187,250 -187,250 $260,204 43,647 247 216,310 - $762,178 -762,178 General Fund $59,948,718 -- $1,367,733 -- $4,364,376 $5,341,389 $152,748,965 $585,566 $40,372,863 $5,000 $2,933,161 -- $350,654 $93,269,980 $112,359,781 $10,282,084 $7,294,688 $217,062,059 $106,490,225 $153,083,298 -- -- $6,687 $3,149 $9,836 $118 -- -- -- 118 -- -- -- -- -- -- $112 112 Selected Bond Funds Estimated 2019-20 676,806 Special Funds SCHEDULE 9 AT 2020-21 GOVERNOR'S BUDGET COMPARATIVE STATEMENT OF EXPENDITURES (Dollars In Thousands) -- $5,213,942 $38,906,698 $19,637,256 $63,757,896 -- $700 $4,409,371 $2,282,291 $6,692,362 $1,832,054 -- -- 141,450 1,690,604 -- -- $204,829 -- 103,829 101,000 $698,871 -- $87,593 $4,928,468 $6,146,765 $11,162,826 $4,875,668 -- 45,647 27,555 4,802,466 - $187,250 -187,250 $465,033 43,647 104,076 317,310 - $62,416 -62,416 Budget Total --- -- $27,724 $38,360 $426,596 $492,680 $96,489 -- -- -- 96,489 -- -- $20,000 -- -- 20,000 Federal Funds $60,337,626 -- $375,712 -- $5,940,308 $4,648,320 $155,914,799 $327,507 $5,000 $1,977,413 $94,796,654 $10,271,823 $5,351,539 $222,192,733 $107,050,890 -- -- $5,994 $3,004 $8,998 $897 -- -- -- 897 -- -- -- -- -- -- $891 891 Selected Bond Funds Estimated 2020-21 698,871 Special Funds Appendix 35 GOVERNOR'S BUDGET SUMMARY 2020-21 64,084 95,741 58,425 99,136 9,233 63,228 5,254 0018-Site Remediation Account 0033-State Energy Conservation Assistance Account 0034-Geothermal Resources Development Account 0035-Surface Mining and Reclamation Account 0041-Aeronautics Account, State Transportation Fund 0042-State Highway Account, State Transportation Fund 0044-Motor Vehicle Account, State Transportation Fund 0029-Nuclear Planning Assessment Special Account 0032-Firearm Safety Account 0020-California State Law Library Special Account 0022-State Emergency Telephone Number Account 0023-Farmworker Remedial Account 0026-State Motor Vehicle Insurance Account 0028-Unified Program Account 5,112 4,822 670 -12,062 1,760 4,915 5,932 4,626,907 3,913,792 41,137 1,445 4,513 7,187 4,426,026 3,949,342 16,869 315 1,549 2,268 2,467,853 532,101 364 3,061 777 9,669 8,678 29,800 5,546 34,430 48,732 888 4,400 291 368 36,653 4,616 101,320 71,553 281 1,214 356 308 12,772 12,387 8,917 7,034 14,740 6,668 8,664 9,205 0007-Breast Cancer Research Account, Breast Cancer Fund 0009-Breast Cancer Control Account, Breast Cancer Fund 0012-Attorney General Antitrust Account 0014-Hazardous Waste Control Account 0017-Fingerprint Fees Account 413 502 8 11,561 3,673 5,124 5,389 13,240 4,185 8,332 1,149 29,384 141,861,115 Expenditures 2018-19 139,378,948 Revenues 2018-19 10,979,193 Beginning Reserve 2018-19 0006-Disability Access Account GENERAL FUND SPECIAL FUNDS 0002-Property Acquisition Law Money Account 0003-Motor Vehicle Parking Facilities Moneys Account 0004-Breast Cancer Fund Fund 567,651 4,216,135 4,769,208 7,130 3,523 2,266,972 4,679 1,322 2,600 777 4,616 8,674 38,746 368 116,620 308 19,273 123,180 59,229 5,925 9,281 8,976 18,895 541 5,733 3,710 146,485,597 Revenues 2019-20 1,147 -- 70,068 5,959 1,430 2,070 44,102 965 6,886 233 7,222 66,623 3,574 380 3,564 11,201 31,063 97 6,840 5,296 8,497,026 Beginning Reserve 2019-20 (Dollars in Thousands) 4,351,078 4,489,771 9,273 5,102 1,322 39,009 378 4,604 9,023 36,038 291 120,585 390 20,292 99,480 57,342 5,895 12,430 12,755 12,458 638 8,623 4,538 149,748,685 Expenditures 2019-20 SCHEDULE 10 AT 2020-21 GOVERNOR'S BUDGET SUMMARY OF FUND CONDITION STATEMENTS 432,708 2,546,409 1,380 724 -- 33,659 6,358 1,442 1,721 46,810 1,042 2,921 151 6,203 90,323 5,461 410 415 7,422 37,500 -- 3,950 4,468 5,233,938 Beginning Reserve 2020-21 4,365,411 4,143,861 8,098 4,822 1,322 2,600 777 4,616 8,674 38,746 368 171,688 308 4,243,689 4,924,397 8,576 5,120 1,322 486 378 4,616 9,950 34,323 291 171,292 384 17,249 104,362 98,481 11,496 63,124 11,455 9,414 15,686 12,357 638 6,419 4,299 153,083,298 Expenditures 2020-21 58,924 12,077 8,999 8,698 18,937 638 6,379 4,756 151,634,805 Revenues 2020-21 554,430 1,765,873 902 426 -- 35,773 6,757 1,442 445 51,233 1,119 3,317 75 450 84,442 1,261 1,032 -- 434 44,080 -- 3,910 4,925 3,785,445 Ending Reserve 2020-21 Appendix 36 GOVERNOR'S BUDGET SUMMARY 2020-21 28,384 28,035 6,777 3,230 0076-Tissue Bank License Fund 0093-Construction Management Education Account (CMEA) 0078-Graphic Design License Plate Account 0080-Childhood Lead Poisoning Prevention Fund 0082-Export Document Program Fund 0083-Veterans Service Office Fund 3,089 2,307 1,907 991 1,156 2,104 324 851 480 1,427 110 34,265 21,472 69,519 123 2,403 2,300 499 694 29 28 1 454 637 88,195 900 59,377 58,371 1,336 18 544 177 1,510 5,060 832 33 14,205 3,625 25,651 29,743 -- 3,324 1,320,288 1,320,288 21,081 22,055 41,568 20,487 3 22,703 -- -- 1,000 20,712 -- -- 2,226 -314 1,655 -285 31,435 1,827 1,175,473 Expenditures 2018-19 1,375,205 Revenues 2018-19 855,110 Beginning Reserve 2018-19 0069-Barbering and Cosmetology Contingent Fund 0070-Occupational Lead Poisoning Prevention Account 0071-Yosemite Foundation Account, California Environmental License Plate Fund 0072-California Collegiate License Plate Fund 0074-Medical Waste Management Fund 0075-Radiation Control Fund 0054-New Motor Vehicle Board Account 0055-Mass Transit Revolving Account, State Transportation Fund 0058-Rail Accident Prevention Response Fund 0061-Motor Vehicle Fuel Account, Transportation Tax Fund 0062-Highway Users Tax Account, Transportation Tax Fund 0064-Motor Vehicle License Fee Account, Transportation Tax Fund 0065-Illegal Drug Lab Cleanup Account 0066-Sale of Tobacco to Minors Control Account 0067-State Corporations Fund 0046-Public Transportation Account, State Transportation Fund 0052-Local Airport Loan Account Fund 337 2,269 1,056 56,726 396 2,990 6,428 1,125 -- 281 1,889 21,360 87,189 969 711 18,297 -- -- 3 1,000 2,398 31,464 1,054,842 Beginning Reserve 2019-20 113 1,156 480 20,968 2,304 443 28,035 2,507 38 900 3,387 44,116 82,065 304 37 9,735 1,654,092 39,964 -- -- 1,964 -386 1,683,796 Revenues 2019-20 (Dollars in Thousands) 106 991 910 44,652 2,429 711 30,324 3,082 38 840 5,066 23,201 65,770 1,180 -- 28,032 1,654,092 39,964 -- -- 1,977 147 1,423,620 Expenditures 2019-20 SCHEDULE 10 AT 2020-21 GOVERNOR'S BUDGET SUMMARY OF FUND CONDITION STATEMENTS 344 2,434 626 33,042 271 2,722 4,139 550 -- 341 210 42,275 103,484 93 748 -- -- -- 3 1,000 2,385 30,931 1,315,018 Beginning Reserve 2020-21 114 1,156 480 34,936 2,304 452 28,035 2,507 38 900 3,387 24,107 -103,484 304 37 30,504 1,745,341 42,144 -- -- 1,964 -1,504 2,093,716 Revenues 2020-21 105 992 913 37,634 2,428 1,227 32,072 3,057 38 840 3,597 22,279 -- 190 16 30,504 1,745,341 42,144 -- -- 1,971 117 1,984,850 Expenditures 2020-21 353 2,598 193 30,344 147 1,947 102 -- -- 401 -- 44,103 -- 207 769 -- -- -- 3 1,000 2,378 29,310 1,423,884 Ending Reserve 2020-21 Appendix 37 GOVERNOR'S BUDGET SUMMARY 2020-21 0142-Department of Justice Sexual Habitual Offender Fund 0143-California Health Data and Planning Fund 0144-California Water Fund 0129-Water Device Certification Special Account 0131-Foster Family Home and Small Family Home Insurance Fund 0132-Workers Compensation Managed Care Fund 0133-California Beverage Container Recycling Fund 0139-Driving Under-the-Influence Program Licensing Trust Fund 0140-California Environmental License Plate Fund 0141-Soil Conservation Fund 0126-State Audit Fund 0122-Emergency Food Assistance Program Fund 0124-California Agricultural Export Promotion Account 0125-Assembly Operating Fund 0117-Alcoholic Beverage Control Appeals Fund 0121-Hospital Building Fund 0111-Department of Agriculture Account, Department of Food and Agriculture Fund 0115-Air Pollution Control Fund 0100-California Used Oil Recycling Fund 0102-State Fire Marshal Licensing and Certification Fund 0104-San Joaquin River Conservancy Fund 0106-Department of Pesticide Regulation Fund 0108-Acupuncture Fund 0098-Clinical Laboratory Improvement Fund 0099-Health Statistics Special Fund Fund -- -- 1,386 3,837 5,588 2,258 38,378 81,676 62,709 36,169 31,809 1,252 1,039 794 20,968 1,220,116 1,217,283 311,728 2,655 83 10 577 1,933 242 -- 1,554 2,671 412 245 1,151 12,910 -- 76 898 69 39 400 10 10 251 161,059 358 69,413 54,576 4,169 495 1,377 192,872 1,569 138,868 3,028 2,626 4,499 191,648 106,882 101,187 23,399 122,791 120 280 2,202 189,455 4,652 4,950 1,903 172,552 22,763 29,570 23,601 30,179 11,612 19,498 13,110 Expenditures 2018-19 9,286 Revenues 2018-19 21,537 Beginning Reserve 2018-19 1,386 14,399 3,393 4,009 17,202 581 308,895 504 1,312 984 12,412 145 39 -- 31,431 2,638 3,430 60,083 1,034 1,226,947 10 -- 236 400 -- 10 734 67,741 146,222 388 1,774 226,255 170,583 3,593 105,665 280 5,082 23,515 30,461 8,628 Revenues 2019-20 4,361 137,644 105,888 4,097 17,704 2,362 2,201 20,336 12,221 17,713 Beginning Reserve 2019-20 (Dollars in Thousands) -- 36,055 2,992 1,386 9,775 3,039 3,358 9,665 67,620 4,081 253 289,190 432 1,312 804 12,812 145 39 393 141,236 4,670 157,067 85,735 2,794 7,982 2,514 1,314 14,543 10,715 12,094 Beginning Reserve 2020-21 1,362 1,246,652 82 -- 416 -- -- 10 729 72,727 1,465 206,832 190,736 4,896 115,387 128 5,969 29,308 31,967 14,247 Expenditures 2019-20 SCHEDULE 10 AT 2020-21 GOVERNOR'S BUDGET SUMMARY OF FUND CONDITION STATEMENTS -- 31,430 2,638 3,430 61,921 1,158 1,217,624 10 -- 236 400 -- 10 543 56,741 1,903 183,925 173,031 3,532 110,048 178 5,738 23,515 30,478 12,369 Revenues 2020-21 -- 36,503 2,992 4,089 66,863 1,411 1,236,922 78 -- 417 -- -- 10 541 71,304 1,698 188,556 192,120 5,072 114,753 143 6,116 23,473 33,295 16,366 Expenditures 2020-21 1,386 4,702 2,685 2,699 4,723 -- 269,892 364 1,312 623 13,212 145 39 395 126,673 4,875 152,436 66,646 1,254 3,277 2,549 936 14,585 7,898 8,097 Ending Reserve 2020-21 Appendix 38 GOVERNOR'S BUDGET SUMMARY 2020-21 -- -3,985 -1,947 11,884 21,336 131,587 -1,803 -3,567 -2,012 7,693 18,898 140,285 -258 1,399 425 143 2,509 33,352 16,415 39,830 -4,363 424 11,690 9,710 640 8,754 0178-Driver Training Penalty Assessment Fund 0179-Environmental Laboratory Improvement Fund 0180-Northern California Veterans Cemetery Master Development Fund 0181-Registered Nurse Education Fund 0183-Environmental Enhancement and Mitigation Program Fund 0184-Employment Development Department Benefit Audit Fund 0185-Employment Development Department Contingent Fund 0186-Energy Resources Surcharge Fund 0191-Fair and Exposition Fund 654 -- -- 2 -- 22 142 2,590 1,649 1,789 7,186 2,713 3 163 1,046 911 1,280 1,363 1,217 5,800 1,870 1,878 2,531 3,696 6,757 6,758 33 3,396 9,729 11,771 13,822 854 -722 53 1,885 3,969 Expenditures 2018-19 3,944 Revenues 2018-19 2,017 Beginning Reserve 2018-19 0177-Food Safety Fund 0171-California Debt and Investment Advisory Commission Fund 0172-Developmental Disabilities Program Development Fund 0174-Clandestine Drug Lab CleanUp Account 0175-Dispensing Opticians Fund 0159-State Trial Court Improvement and Modernization Fund 0160-Operating Funds of the Assembly and Senate 0163-Continuing Care Provider Fee Fund 0166-Certification Account, Consumer Affairs Fund 0168-Structural Pest Control Research Fund 0169-California Debt Limit Allocation Committee Fund 0170-Corrections Training Fund 0158-Travel Seller Fund 0152-State Board of Chiropractic Examiners Fund 0156-California Heritage Fund Fund 2,818 -- 48,528 13,977 29,161 2,574 143 7 1,399 6,774 870 2 1,034 5,500 164 7,326 1,206 1,300 2,539 34 15,864 1,753 53 1,992 Beginning Reserve 2019-20 258 -- 148,839 26,048 1,949 -- 165,775 23,278 7,085 2,225 2,080 7,693 -- 4,049 158 13,078 604 -- 2,700 3,984 -- 1,949 3 1,489 1,689 -- 17,266 1,567 -- 5,029 Expenditures 2019-20 -- 4,255 -- 8,754 630 -- 2,637 3,236 -- 2,579 170 1,277 1,490 -- 11,434 826 -- 4,415 Revenues 2019-20 (Dollars in Thousands) SCHEDULE 10 AT 2020-21 GOVERNOR'S BUDGET SUMMARY OF FUND CONDITION STATEMENTS 1,127 -- 31,592 16,747 29,769 2,429 143 213 1,241 2,450 896 2 971 4,752 164 7,956 1,373 1,088 2,340 34 10,032 1,012 53 1,378 Beginning Reserve 2020-21 258 -- 144,993 20,525 7,693 2,080 -- 4,305 -- 8,754 630 -- 2,687 3,273 -- 2,579 173 1,279 1,515 -- 10,767 826 -- 4,335 Revenues 2020-21 82 -- 156,455 23,437 7,075 2,216 -- 4,057 -- 11,088 534 -- 2,724 4,096 -- 2,563 3 1,561 1,692 -- 20,453 1,567 -- 5,593 Expenditures 2020-21 1,303 -- 20,130 13,835 30,387 2,293 143 461 1,241 116 992 2 934 3,929 164 7,972 1,543 806 2,163 34 346 271 53 120 Ending Reserve 2020-21 Appendix 39 GOVERNOR'S BUDGET SUMMARY 2020-21 26,498 0223-Workers Compensation Administration Revolving Fund 0226-California Tire Recycling Management Fund 0228-Secretary of States Business Fees Fund 0230-Cigarette and Tobacco Products Surtax Fund 0231-Health Education Account, Cigarette and Tobacco Products Surtax Fund 0232-Hospital Services Account, Cigarette and Tobacco Products Surtax Fund 0233-Physician Services Account, Cigarette and Tobacco Products Surtax Fund 0217-Insurance Fund 28 221 6,446 34 20 20 6,091 144 11,030 454 2,056 3,940 542 357,470 68,383 72,016 5,132 54,420 73,813 22,633 36,797 72,016 7,745 59,782 80,698 24,493 102,090 1,000 -9,450 41,571 15,671 300,714 8 354,680 286,726 -26 160,319 31,945 5,391 3,933 695 98,734 321 280 1,131 74,642 -- -- 34 135,127 130,058 50,473 64,692 121,325 117,350 215 0215-Industrial Development Fund 2,437 2,317 62 0205-Geology and Geophysics Account, Professional Engineers and Land Surveyors Fund 0207-Fish and Wildlife Pollution Account 0209-California Hazardous Liquid Pipeline Safety Fund 0210-Outpatient Setting Fund of the Medical Board of California 0211-California Waterfowl Habitat Preservation Account, Fish and Game Preservation Fund 0212-Marine Invasive Species Control Fund 0213-Native Species Conservation and Enhancement Account, Fish and Game Preservation Fund 0214-Restitution Fund 253 151,895 264 156,488 Expenditures 2018-19 7,463 Revenues 2018-19 0194-Emergency Medical Services Training Program Approval Fund 0198-California Fire and Arson Training Fund 0200-Fish and Game Preservation Fund 0203-Genetic Disease Testing Fund Beginning Reserve 2018-19 0193-Waste Discharge Permit Fund Fund 17,531 48,456 14,812 2,613 1,000 70,504 157,529 17,957 -- 40,600 652 3,585 1,855 446 9,572 654 1,131 21,429 46,498 95 73 12,056 Beginning Reserve 2019-20 26,840 93,827 61,828 7,959 73,745 34,513 402,648 311,233 -- 68,489 144 5,772 20 128 3,933 280 -- 129,874 117,788 2,332 248 162,697 Revenues 2019-20 (Dollars in Thousands) 40,986 131,089 73,190 7,871 73,745 48,161 373,451 317,477 -- 100,403 153 6,124 221 28 5,695 350 -- 145,653 131,752 2,422 264 167,033 Expenditures 2019-20 SCHEDULE 10 AT 2020-21 GOVERNOR'S BUDGET SUMMARY OF FUND CONDITION STATEMENTS 3,385 11,194 3,450 2,701 1,000 56,856 186,726 11,713 -- 8,686 643 3,233 1,654 546 7,810 584 1,131 5,650 32,534 5 57 7,720 Beginning Reserve 2020-21 26,534 92,761 61,219 7,957 63,437 34,508 400,485 321,382 -- 68,489 144 5,772 20 130 3,933 280 -- 145,157 114,719 5,410 248 178,622 Revenues 2020-21 28,686 99,328 62,550 7,859 63,437 47,123 391,474 324,298 -- 77,070 150 6,516 223 28 5,711 345 -- 145,525 125,539 4,989 277 172,926 Expenditures 2020-21 1,233 4,627 2,119 2,799 1,000 44,241 195,737 8,797 -- 105 637 2,489 1,451 648 6,032 519 1,131 5,282 21,714 426 28 13,416 Ending Reserve 2020-21 Appendix 40 GOVERNOR'S BUDGET SUMMARY 2020-21 0263-Off-Highway Vehicle Trust Fund 0264-Osteopathic Medical Board of California Contingent Fund 0266-Inland Wetlands Conservation Fund, Wildlife Restoration Fund 0267-Exposition Park Improvement Fund 0245-Mobilehome Parks and Special Occupancy Parks Revolving Fund 0247-Drinking Water Operator Certification Special Account 0256-Sexual Predator Public Information Account 0257-Earthquake Emergency Investigations Account, Disaster Assistance Fund 0260-Nursing Home Administrators State License Examining Fund 0261-Off Highway License Fee Fund 0262-Habitat Conservation Fund 0243-Narcotic Treatment Program Licensing Trust Fund 0244-Environmental Water Fund 0240-Local Agency Deposit Security Fund 0241-Local Public Prosecutors and Public Defenders Training Fund 0242-Court Collection Account 0234-Research Account, Cigarette and Tobacco Products Surtax Fund 0235-Public Resources Account, Cigarette and Tobacco Products Surtax Fund 0236-Unallocated Account, Cigarette and Tobacco Products Surtax Fund 0238-Northern California Veterans Cemetery Perpetual Maintenance Fund 0239-Private Security Services Fund Fund -11,446 68 10,768 3,186 4,860 23,051 2,243 10,851 11,493 859 2,554 3,260 2,401 799 3,061 -- -- 30 113,980 -- -- 254 78,502 83 86 3,773 161,017 1,862 1,789 3,159 3,024 4,182 3,254 3,372 125,539 23,693 -- 799 30 257 3,700 2,545 -8,834 -- 3,024 8,220 3,722 9,277 4,122 1,660 128,553 136,562 1,268 978 95 9,353 506 28,699 2,687 4,603 Beginning Reserve 2019-20 2,060 -- 5 14,955 14,184 10,124 973 71 81 496 175 49,025 54,861 22,863 578 5,931 7,088 1,530 498 13,613 Expenditures 2018-19 15,000 Revenues 2018-19 3,216 Beginning Reserve 2018-19 9,866 68 3,878 79,621 11,816 2,401 -- -- 86 3,603 8,220 -- 2,073 123,770 -- 679 14,318 81 60,227 8,261 15,511 Revenues 2019-20 (Dollars in Thousands) 11,215 -- 3,351 129,650 12,467 2,401 -- 9 191 2,021 9,397 -- 2,033 119,207 1 642 16,348 71 80,346 9,863 19,204 Expenditures 2019-20 SCHEDULE 10 AT 2020-21 GOVERNOR'S BUDGET SUMMARY OF FUND CONDITION STATEMENTS 2,833 3,322 3,899 75,510 23,042 -- 799 21 152 5,282 1,368 3,024 4,162 13,840 977 132 7,323 516 8,580 1,085 910 Beginning Reserve 2020-21 9,866 68 2,604 82,987 11,740 2,401 -- -- 86 2,003 8,220 -- 2,070 123,770 -- 679 14,234 81 59,541 8,110 15,360 Revenues 2020-21 11,064 -- 3,286 116,555 11,940 2,401 -- -- 191 2,063 9,916 -- 2,015 118,387 1 637 16,313 72 65,421 8,830 15,721 Expenditures 2020-21 1,635 3,390 3,217 41,942 22,842 -- 799 21 47 5,222 -328 3,024 4,217 19,223 976 174 5,244 525 2,700 365 549 Ending Reserve 2020-21 Appendix 41 GOVERNOR'S BUDGET SUMMARY 2020-21 2,078 65,579 5,855 70,566 4,114 22,290 31,244 3,065 2,452 0280-Physician Assistant Fund 0300-Professional Forester Registration Fund 0299-Credit Union Fund 0290-Board of Pilot Commissioners Special Fund 0293-Motor Carriers Safety Improvement Fund 0294-Removal and Remedial Action Account 0295-Board of Podiatric Medicine Fund 0298-Financial Institutions Fund 34,759 30,137 778 48,885 106 2,392 1,093 1,081 5,850 123 219 11,744 2,673 2,376 1,004 10,332 1,841 1,963 4,236 2,528 4,360 7,337 2,933 -- 13 135 2,536 1,386 1,633 900 1,348 3,580 10,427 261 2,026 5,799 0281-Recycling Market Development Revolving Loan Subaccount, Integrated Waste Management Account 0286-Lake Tahoe Conservancy Account 0288-The Registry of International Student Exchange Visitor Placement Organizations Fund 0289-State HICAP Fund 28 770 1,777 1,453 229 8,589 15,170 2,112 10,949 7,825 0272-Infant Botulism Treatment and Prevention Fund 0275-Hazardous and Idle-Deserted Well Abatement Fund 0276-Penalty Account, California Beverage Container Recycling Fund 0277-Bi-metal Processing Fee Account, California Beverage Container Recycling Fund 0278-PET Processing Fee Account, California Beverage Container Recycling Fund 0279-Child Health and Safety Fund 2,250 26,018 1,787 25,257 9,860 0271-Certification Fund -- 19,419 -- Expenditures 2018-19 63,533 Revenues 2018-19 68,521 1,806 Beginning Reserve 2018-19 0269-Glass Processing Fee Account, California Beverage Container Recycling Fund 0270-Technical Assistance Fund 0268-Peace Officers Training Fund Fund -- 10 272 33,207 12,084 980 1,247 3,677 1,929 2,223 4,248 13 900 1,704 3,723 4,592 65,766 1,907 303 4,075 10,280 1,837 24,876 67,088 Revenues 2019-20 44,263 766 5,553 1,126 3,839 9,169 148 3,094 10,142 3,111 1,324 36,231 24,055 6,541 10,137 12,046 1,615 9,099 24,407 1,806 Beginning Reserve 2019-20 (Dollars in Thousands) 219 12,487 37,124 1,311 3,279 2,095 3,054 2,538 -- 1,888 7,403 2,374 5,830 62,637 253 5,015 233 14,463 2,255 26,842 67,857 -- Expenditures 2019-20 SCHEDULE 10 AT 2020-21 GOVERNOR'S BUDGET SUMMARY OF FUND CONDITION STATEMENTS 63 577 40,346 702 5,951 960 3,008 10,879 161 2,106 4,443 4,460 86 39,360 25,709 1,829 13,979 7,863 1,197 7,133 23,638 1,806 Beginning Reserve 2020-21 -- 169 12,962 -40,346 1,272 3,677 1,929 2,253 4,248 13 900 1,704 2,412 4,592 65,287 1,907 303 4,226 10,340 1,837 24,876 66,845 Revenues 2020-21 231 12,718 -- 1,638 3,245 2,113 2,886 2,542 -- 1,537 2,077 3,085 4,533 61,649 255 15 226 11,052 2,257 26,847 65,985 -- Expenditures 2020-21 1 821 -- 336 6,383 776 2,375 12,585 174 1,469 4,070 3,787 145 42,998 27,361 2,117 17,979 7,151 777 5,162 24,498 1,806 Ending Reserve 2020-21 Appendix 42 GOVERNOR'S BUDGET SUMMARY 2020-21 864 461 4,910 864 379 4,624 -- 934 2,547 69,627 7 0347-School Land Bank Fund 0348-Senate Operating Fund -- -- 1,260 25,484 25,484 13,664 900 13,194 13,142 179 14,000 14,000 -- 67,572 96,600 19,639 163 1,999 261 2,747 1,022 743 2,746 3,049 3,761 238 93 291 1,893 12,398 112 56,095 52,512 29,564 3,342 3,135 1,057 43,314 10,210 56,432 50,800 4,400 49,606 -- 101 756 43,725 -- -756 2,007 805 3,014 800 2,630 56 2,977 404 5,393 2,834 44,900 9,796 -- 26,856 -- 25,076 6,209 81 16,123 Expenditures 2018-19 15,171 Revenues 2018-19 8,202 Beginning Reserve 2018-19 0338-Strong-Motion Instrumentation and Seismic Hazards Mapping Fund 0342-State School Fund 0328-Public School Planning, Design, and Construction Review Revolving Fund 0329-Vehicle License Collection Account, Local Revenue Fund 0330-Local Revenue Fund 0335-Registered Environmental Health Specialist Fund 0336-Mine Reclamation Account 0327-Court Interpreters Fund 0322-Environmental Enhancement Fund 0325-Electronic and Appliance Repair Fund 0326-Athletic Commission Fund 0320-Oil Spill Prevention and Administration Fund 0321-Oil Spill Response Trust Fund 0318-Collins-Dugan Calif Conservation Corps Reimbursement Acct 0319-Respiratory Care Fund 0312-Emergency Medical Services Personnel Fund 0313-Major Risk Medical Insurance Fund 0314-Diesel Emission Reduction Fund 0317-Real Estate Fund 0311-Traumatic Brain Injury Fund 0310-Psychology Fund 0308-Earthquake Risk Reduction Fund of 1996 0309-Perinatal Insurance Fund 0305-Private Postsecondary Education Administration Fund 0306-Safe Drinking Water Account Fund 7 69,267 2,547 13,612 648 -97 -- 48,667 841 1,770 4,064 59 14,198 25,981 850 4,329 37,682 4,501 -- 1,623 51 7,380 47,330 81 4,429 7,250 Beginning Reserve 2019-20 -- 1,500 25,484 13,300 5,535 897 421 14,000 89,695 220 2,854 3,185 237 36,893 52,288 3,396 47,742 66,002 100 -- 2,561 -- 7,998 2,542 -- 27,592 15,231 Revenues 2019-20 (Dollars in Thousands) -- 1,555 25,484 15,130 5,533 897 480 14,000 72,864 214 1,945 3,173 275 107 61,838 3,803 49,447 64,661 -- -- 3,288 -- 5,988 12,081 81 29,795 20,384 Expenditures 2019-20 SCHEDULE 10 AT 2020-21 GOVERNOR'S BUDGET SUMMARY OF FUND CONDITION STATEMENTS 650 7 69,212 2,547 11,782 -- 1,500 25,484 13,428 5,707 894 421 14,000 --38 98,478 218 3,028 3,227 277 1,893 52,288 3,711 42,742 50,477 100 -- 2,561 -- 4,345 2,542 -- 30,329 20,101 Revenues 2020-21 65,498 847 2,679 4,076 21 50,984 16,431 443 2,624 39,023 4,601 -- 896 51 9,390 37,791 -- 2,226 2,097 Beginning Reserve 2020-21 -- 2,096 25,484 14,341 5,622 894 441 14,000 72,552 168 2,476 3,171 243 112 59,735 4,067 44,483 62,835 -- -- 3,337 4 6,914 16,529 -- 29,904 21,415 Expenditures 2020-21 7 68,616 2,547 10,869 735 -18 -- 91,424 897 3,231 4,132 55 52,765 8,984 87 883 26,665 4,701 -- 120 47 6,821 23,804 -- 2,651 783 Ending Reserve 2020-21 Appendix 43 GOVERNOR'S BUDGET SUMMARY 2020-21 0381-Public Interest Research, Development, and Demonstration Fund 0382-Renewable Resource Trust Fund 0384-The Salmon and Steelhead Trout Restoration Account 0386-Solid Waste Disposal Site Cleanup Trust Fund 0387-Integrated Waste Management Account, Integrated Waste Management Fund 0392-State Parks and Recreation Fund 0396-Self-Insurance Plans Fund 0349-Educational Telecommunication Fund 0351-Mental Health Subaccount, Sales Tax Account 0352-Social Services Subaccount, Sales Tax Account 0353-Health Subaccount, Sales Tax Account 0354-Caseload Subaccount, Sales Tax Growth Account 0361-General Growth Subaccount, Sales Tax Growth Account 0365-Historic Property Maintenance Fund 0367-Indian Gaming Special Distribution Fund 0371-California Beach and Coastal Enhancement Account, California Environmental License Plate Fund 0375-Disaster ResponseEmergency Operations Account, Special Fund for Economic Uncertainties 0376-Speech-Language Pathology and Audiology and Hearing Aid Dispensers Fund 0378-False Claims Act Fund Fund -684 33,200 1,399 -- 2,039 2,152,263 -177,465 -709 50,607 1,291 -- 2,201 ----- 2,626 33,528 226 23 2,219 3,409 19,110 704 26,979 -5,706 51,939 243,826 4,459 17,462 398 37,377 -6,764 50,283 229,675 3,423 14,746 20,387 4 6,819 44,155 17,090 3,479 177,465 -- 2,152,263 1,161,368 1,161,368 -- 716 Expenditures 2018-19 -- Revenues 2018-19 1,323 Beginning Reserve 2018-19 -- 2,443 2,939 42,499 7,877 4 30,785 14,440 1,761 2,381 23 4,472 242,386 47,753 5,514 -- 2,000 300 18,809 2,276 -- 1,275 51,254 50,935 118 693 98,030 86,004 35,237 2,329,728 1,166,054 Revenues 2019-20 2,651 -- -- -- -- -- 607 Beginning Reserve 2019-20 (Dollars in Thousands) 4,610 231,156 66,239 5,736 -- 1,347 818 19,148 2,518 -- 1,363 37,023 1,137 98,030 86,004 35,237 2,329,728 1,166,054 607 Expenditures 2019-20 SCHEDULE 10 AT 2020-21 GOVERNOR'S BUDGET SUMMARY OF FUND CONDITION STATEMENTS -- -- -- -- -- -- 2,305 14,169 24,013 7,655 4 31,438 13,922 1,422 2,139 23 30 65,166 2,207 Beginning Reserve 2020-21 -- 4,742 245,794 47,753 5,514 -- 2,000 300 18,504 2,220 -- 1,275 59,204 674 122,650 9,355 66,413 2,415,732 1,201,640 Revenues 2020-21 4,698 257,098 58,342 5,923 -- 1,272 805 18,684 2,524 -- 1,285 37,178 1,137 122,650 9,355 66,413 2,415,732 1,201,640 -- Expenditures 2020-21 -- -- -- -- -- -- 2,349 2,865 13,424 7,246 4 32,166 13,417 1,242 1,835 23 20 87,192 1,744 Ending Reserve 2020-21 Appendix 44 GOVERNOR'S BUDGET SUMMARY 2020-21 -- -946 36 1,497 25 100 322,776 901 20 300 347,536 268 712 5 1,861 831,627 -3,511 483 -23,789 6,540 149 16 19,931 40,208 -118 1,036 9,527 5,881 -- 5,329 3 1,573 0456-Expedited Site Remediation Trust Fund 0457-Tax Credit Allocation Fee Account 0458-Site Operation and Maintenance Account, Hazardous Substances Account 0459-Telephone Medical Advice Services Fund 0460-Dealers Record of Sale Special Account 0453-Pressure Vessel Account 381 29,773 250 22,066 568 24,075 5,898 6,270 26,161 6,134 716 119 -- 3,461 -- 2 132,334 363 -- 127,527 135,541 2 1 5,654 23,969 27,713 20,865 5,908 5,736 4,447 7,259 5,523 403 Expenditures 2018-19 468 Revenues 2018-19 1,322 Beginning Reserve 2018-19 0452-Elevator Safety Account 0448-Occupancy Compliance Monitoring Account,Tax Credit Allocation Fee Account 0449-Winter Recreation Fund 0421-Vehicle Inspection and Repair Fund 0425-Victim - Witness Assistance Fund 0429-Local Jurisdiction Energy Assistance Account 0434-Air Toxics Inventory and Assessment Account 0436-Underground Storage Tank Tester Account 0437-State Assistance For Fire Equipment Account 0439-Underground Storage Tank Cleanup Fund 0447-Wildlife Restoration Fund 0408-Test Development and Administration Account, Teacher Credentials Fund 0410-Transcript Reimbursement Fund 0412-Transportation Rate Fund 0399-Structural Pest Control Education and Enforcement Fund 0400-Real Estate Appraisers Regulation Fund 0407-Teacher Credentials Fund Fund 5,669 1,052 -452 43,237 3 1,021 16,368 437 26,533 -2,310 856,387 2,061 -- 24,418 -- 794 41,554 -- 5,811 25,066 250 63,440 4,752 347,691 100 20 905 -106 387 897 -- 218,057 -- -- 5,547 27,851 4,489 468 Revenues 2019-20 2 124,320 551 35 5,269 24,609 5,970 1,387 Beginning Reserve 2019-20 (Dollars in Thousands) 26,275 -- 312 4,457 -- 6,158 30,262 376 6,007 2,383 319,101 100 19 701 -- -- 152,725 -- 5 6,526 27,241 6,502 403 Expenditures 2019-20 SCHEDULE 10 AT 2020-21 GOVERNOR'S BUDGET SUMMARY OF FUND CONDITION STATEMENTS 3,812 1,052 30 80,334 3 674 11,172 311 83,966 59 884,977 2,061 1 1,101 281 2 189,652 551 30 4,290 25,219 3,957 1,452 Beginning Reserve 2020-21 28,195 -- 426 6,554 -- 5,811 25,066 250 6,440 4,729 347,691 100 20 854 1 -- 113,203 -- -- 5,575 27,228 6,064 464 Revenues 2020-21 29,443 -- 396 5,808 -- 6,290 30,936 385 7,300 4,778 316,202 100 18 703 -- -- 152,785 -- -- 6,218 27,299 6,530 401 Expenditures 2020-21 2,564 1,052 60 81,080 3 195 5,302 176 83,106 10 916,466 2,061 3 1,252 282 2 150,070 551 30 3,647 25,148 3,491 1,515 Ending Reserve 2020-21 Appendix 45 GOVERNOR'S BUDGET SUMMARY 2020-21 0461-Public Utilities Commission Transportation Reimbursement Account 0462-Public Utilities Commission Utilities Reimbursement Account 0464-California High-Cost Fund-A Administrative Committee Fund 0465-Energy Resources Programs Account 0467-State Notes Expense Account 0470-California High-Cost Fund-B Administrative Committee Fund 0471-Universal Lifeline Telephone Service Trust Administrative Committee Fund 0475-Underground Storage Tank Fund 0478-Vectorborne Disease Account 0479-Energy Technologies Research, Development and Demonstration Account 0481-Garment Manufacturers Special Account 0483-Deaf and Disabled Telecommunications Program Administrative Committee Fund 0485-Armory Discretionary Improvement Account 0487-Financial Responsibility Penalty Account 0492-State Athletic Commission Neurological Examination Account 0493-California Teleconnect Fund Administrative Committee Fund 0494-Other - Unallocated Special Funds 0496-Developmental Disabilities Services Account 0497-Local Government Geothermal Resources Revolving Subaccount, Geothermal Resources Development Account Fund 19,775 148,320 36,031 63,665 -10,865 333,851 -217 -9,500 44,925 158 -106 86,943 606,807 -385 127,917 31,286 71,857 -74,634 407,516 -132 61 9,380 44,250 86 -4 23 77,137 -3 1,462 51,230 39,881 43,205 250 42,622 407,428 107 175 2,940 234 55,799 653 1,103 593 98,348 144,973 147 2,688 Expenditures 2018-19 36,871 Revenues 2018-19 51,154 Beginning Reserve 2018-19 3,765 150 -461,834 88,542 510 1,099 581 55,124 114 3,001 90 107 481,093 106,391 250 51,397 35,136 30,827 68,250 Beginning Reserve 2019-20 1,350 150 -- 71,343 21 -- 90 42,454 405 60 184 -- 431,442 476 -- 70,362 32,121 249,945 13,452 Revenues 2019-20 (Dollars in Thousands) 2,843 150 15,424 108,405 59 -- 160 67,368 500 2,272 150 -477,258 51,480 472 1,099 511 30,210 19 3,061 42 232 -- 107 495,036 84,503 250 43,896 17,953 41,813 55,240 Beginning Reserve 2020-21 -- 417,499 22,364 -- 77,863 49,304 238,959 26,462 Expenditures 2019-20 SCHEDULE 10 AT 2020-21 GOVERNOR'S BUDGET SUMMARY OF FUND CONDITION STATEMENTS 1,350 150 -- 71,343 21 -- 90 42,454 2,485 60 157 -- 431,442 9,217 -- 69,324 31,969 166,615 13,452 Revenues 2020-21 1,641 150 757,929 108,159 58 -- 173 67,973 500 -- 182 -- 386,635 22,396 -- 76,341 49,348 201,866 29,685 Expenditures 2020-21 1,981 150 -1,235,187 14,664 435 1,099 428 4,691 2,004 3,121 17 107 539,843 71,324 250 36,879 574 6,562 39,007 Ending Reserve 2020-21 Appendix 46 GOVERNOR'S BUDGET SUMMARY 2020-21 0623-California Children and Families First Trust Fund 0631-Mass Media Communications Account, California Children and Families Trust Fund 0634-Education Account, California Children and Families Trust Fund 0636-Child Care Account, California Children and Families Trust Fund 0637-Research and Development Account, California Children and Families Trust Fund 0638-Administration Account, California Children and Families Trust Fund 0639-Unallocated Account, California Children and Families Trust Fund 0642-Domestic Violence Training and Education Fund 0593-Coastal Access Account, State Coastal Conservancy Fund 0600-Vending Stand Fund 0569-Gambling Control Fines and Penalties Account 0577-Abandoned Watercraft Abatement Fund 0582-High Polluter Repair or Removal Account 0585-Counties Children and Families Account, California Children and Families Trust Fund 0587-Family Law Trust Fund 0557-Toxic Substances Control Account 0558-Farm and Ranch Solid Waste Cleanup and Abatement Account 0566-Department of Justice Child Abuse Fund 0567-Gambling Control Fund Fund 23,951 15,121 16,983 6,123 7,052 634 18,469 11,055 11,110 3,706 7,216 663 34,310 49,988 9,132 14,111 1,012 19,353 64,667 20,342 22,114 32,259 2,620 11,453 2,798 11,455 6,683 1,422 2,484 7,743 2,293 286,915 286,915 -- 798 36,407 49,142 59,932 605 2,750 2,750 588 20,084 25,134 59,942 7,284 469 521 1,494 283 665 1,055 1,278 977 124,929 Expenditures 2018-19 106,509 Revenues 2018-19 32,262 Beginning Reserve 2018-19 1,041 14,275 6,715 44,115 30,244 59,185 21,125 32,261 6,861 2,100 8,805 -- 72,667 588 7,978 64,992 1,546 1,668 13,842 Beginning Reserve 2019-20 691 8,155 4,176 12,520 12,465 20,818 24,932 14,207 662 7,052 5,485 16,983 15,121 23,951 20,342 14,207 3,361 830 2,828 1,778 614 287,386 41,866 2,750 315 22,416 500 1,784 129,125 Expenditures 2019-20 2,802 324,493 49,555 2,750 479 53,856 521 1,069 116,036 Revenues 2019-20 (Dollars in Thousands) SCHEDULE 10 AT 2020-21 GOVERNOR'S BUDGET SUMMARY OF FUND CONDITION STATEMENTS 1,070 15,378 5,406 39,652 27,588 56,052 25,715 32,261 6,328 1,884 9,829 37,107 80,356 588 8,142 96,432 1,567 953 753 Beginning Reserve 2020-21 691 7,953 4,075 12,216 12,161 20,312 24,324 14,393 2,828 614 2,873 316,389 50,174 2,750 479 24,856 521 1,069 133,554 Revenues 2020-21 658 7,052 5,459 16,983 15,121 23,951 20,342 14,394 3,361 786 1,829 287,386 51,376 2,750 303 28,894 501 1,210 132,268 Expenditures 2020-21 1,103 16,279 4,022 34,885 24,628 52,413 29,697 32,260 5,795 1,712 10,873 66,110 79,154 588 8,318 92,394 1,587 812 2,039 Ending Reserve 2020-21 Appendix 47 GOVERNOR'S BUDGET SUMMARY 2020-21 3,885 4,060 3,103 5,385 5,806 3,979 0777-Veterinary Medical Board Contingent Fund 0779-Vocational Nursing and Psychiatric Technicians Fund 0773-Behavioral Science Examiners Fund, Professions and Vocations Fund 0775-Structural Pest Control Fund 0770-Professional Engineer's, Land Surveyor's, and Geologist's Fund 0771-Court Reporters Fund 0761-Board of Registered Nursing Fund, Professions and Vocations Fund 0763-State Optometry Fund, Professions and Vocations Fund 0767-Pharmacy Board Contingent Fund, Professions and Vocations Fund 0769-Private Investigator Fund 16,865 14,963 1,745 8,564 5,052 5,164 4,485 1,417 5,509 6,578 1,142 13,173 1,057 12,999 445 1,191 11,187 1,416 691 9,267 25,063 25,832 10,510 8,571 2,094 1,966 2,918 3,071 17,057 4,981 6,086 34,800 44,954 65,923 59,586 1,832 62,940 920 122 59 398 558 4,611 5,194 3,755 0757-California Board of Architectural Examiners Landscape Architects Fund 0758-Contingent Fund of the Medical Board of California 0759-Physical Therapy Fund -- -1,513 1,513 12,853 8,280 15,931 0750-State Funeral Directors and Embalmers Fund 0752-Home Furnishings and Thermal Insulation Fund 0755-Licensed Midwifery Fund 15,165 14,578 10,415 28,395 70,797 23,307 20,866 7,404 65,991 -- Expenditures 2018-19 -- Revenues 2018-19 1 Beginning Reserve 2018-19 0741-State Dentistry Fund 0735-Contractors License Fund 0643-Upper Newport Bay Ecological Reserve Maintenance and Preservation Fund 0648-Mobilehome-Manufactured Home Revolving Fund 0704-Accountancy Fund, Professions and Vocations Fund 0706-California Architects Board Fund 0717-Cemetery and Funeral Fund Fund 1 -- 6,662 17,390 5,389 6,598 850 2,090 9,507 1,416 10,909 582 28,757 2,075 64,100 6,276 58,072 875 58 5,113 -- 16,271 69,012 3,984 4,308 13,070 20,866 Revenues 2019-20 6,404 360 6,651 916 11,279 2,790 35,043 4,176 28,463 1,470 335 4,338 -- 11,358 10,359 5,304 5,024 24,232 4,963 Beginning Reserve 2019-20 (Dollars in Thousands) 1 18,960 5,998 5,867 13,562 1,247 12,805 1,229 30,036 2,498 60,872 5,966 72,455 1,156 5,092 1,481 1,581 2,349 529 4,755 269 10,000 2,367 38,271 4,486 14,080 1,189 273 3,529 5,922 120 -- 10,957 3,818 3,987 4,948 19,436 1,925 Beginning Reserve 2020-21 -- 16,672 75,553 5,301 4,384 17,866 23,904 -- Expenditures 2019-20 SCHEDULE 10 AT 2020-21 GOVERNOR'S BUDGET SUMMARY OF FUND CONDITION STATEMENTS -- 17,663 7,288 6,615 12,776 1,418 12,914 1,318 32,937 2,255 67,439 6,306 66,036 875 18,936 6,977 5,952 13,305 1,272 13,718 1,224 32,022 2,436 61,893 6,478 78,936 1,169 133 5,897 5,146 55 -- 16,821 79,074 5,361 4,469 17,890 24,002 -- Expenditures 2020-21 -- 16,433 76,988 4,032 3,296 16,686 20,866 Revenues 2020-21 1 3,819 1,792 2,244 1,820 675 3,951 363 10,915 2,186 43,817 4,314 1,180 895 195 2,778 -- 10,569 1,732 2,658 3,775 18,232 -1,211 Ending Reserve 2020-21 Appendix 48 GOVERNOR'S BUDGET SUMMARY 2020-21 18,001 3004-Garment Industry Regulations Fund 3007-Traffic Congestion Relief Fund 1017-Umbilical Cord Blood Collection Program Fund 1018-Lake Tahoe Science and Lake Improvement Account, General Fund 1019-Safety Net Reserve Fund 1027-Full-Day Kindergarten Facilities Account 1029-The Public School System Stabilization Account 1030-Consumer Privacy Fund 2501-Local Transportation Loan Account, State Highway Account, State Transportation Fund 2503-SR-710 Rehabilitation Account 2504-Advance Mitigation Account, State Transportation Fund 3001-Public Beach Restoration Fund 3002-Electrician Certification Fund 0940-Bosco-Keene Renewable Resources Investment Fund 1003-Cleanup Loans and Environmental Assistance to Neighborhoods Account 1006-Rural CUPA Reimbursement Account 1008-Firearms Safety and Enforcement Special Fund 1010-Natural Heritage Preservation Tax Credit Reimbursement Account 1011-Budget Stabilization Account --353 -1,300 2,969 --88 884 30,964 -2,330 --- -30,000 10,694 9,462 3,545 82,832 31,232 3,390 305,223 -- 2,705 4,112 900,000 -- --- --62,271 1,052 -- 3,161,000 10,807,422 1,005 -- -- -- 2,869 11,301 5,538 17,202 7,108 -- -- 806 2,500 -- -40 4,962 3,279 1,096 1,305 1,783 84,913 1,311,228 1,315,000 67,858 0933-Managed Care Fund 82,135 -- Expenditures 2018-19 -1,064 Revenues 2018-19 1,064 Beginning Reserve 2018-19 0780-Psychiatric Technicians Account, Vocational Nursing and Psychiatric Technicians Fund 0932-Trial Court Trust Fund Fund -- 253,623 2,550 8,823 9,394 60,964 531 -4,200 -- 900,000 62,271 2,822 7,887 13,968,422 -- 11,439 806 4,922 1,992 15,223 71,630 Beginning Reserve 2019-20 -- 8,579 2,235 2,330 -6,000 30,771 969 --4,200 -- --- 1,205 3,279 2,050,000 -- 12,339 -- -40 1,200 91,900 1,344,969 Revenues 2019-20 (Dollars in Thousands) 86,726 3,549 3,094 231 30,000 1,000 --- -524,150 --236,781 2,239 2,500 -- -- 11,297 -- 500 1,169 100,891 1,350,949 -- Expenditures 2019-20 SCHEDULE 10 AT 2020-21 GOVERNOR'S BUDGET SUMMARY OF FUND CONDITION STATEMENTS -- 175,476 1,236 8,059 3,163 61,735 500 --- 524,150 900,000 299,052 1,788 8,666 16,018,422 -- 12,481 806 4,382 2,023 6,232 65,650 Beginning Reserve 2020-21 -- -11,823 -1,236 2,330 -- 30,771 1,000 360 -- -- --- 1,205 3,279 11,734 -- 3,197 -- 30,000 1,000 360 -- 37,621 -296,062 1,137 2,500 -- -- -1,959,000 11,009 -- 1,000 1,177 100,338 1,409,637 -- Expenditures 2020-21 9,491 -- -40 1,200 102,443 1,344,592 Revenues 2020-21 -- 151,919 -- 7,192 3,163 62,506 500 --- 486,529 900,000 2,990 1,856 9,445 17,977,422 -- 10,963 806 3,342 2,046 8,337 605 Ending Reserve 2020-21 Appendix 49 GOVERNOR'S BUDGET SUMMARY 2020-21 3056-Safe Drinking Water and Toxic Enforcement Fund 3035-Environmental Quality Assessment Fund 3036-Alcohol Beverage Control Fund 3037-State Court Facilities Construction Fund 3039-Dentally Underserved Account, State Dentistry Fund 3042-Victims of Corporate Fraud Compensation Fund 3046-Oil, Gas, and Geothermal Administrative Fund 3053-Public Rights Law Enforcement Special Fund 3054-Health Care Benefits Fund 3030-Workers Occupational Safety and Health Education Fund 3033-California Memorial Scholarship Fund 3034-Antiterrorism Fund 3025-Abandoned Mine Reclamation and Minerals Fund Subaccount, Mine Reclamation Account 3027-Trauma Care Fund 3022-Apprenticeship Training Contribution Fund 3024-Rigid Container Account 3018-Drug and Device Safety Fund 3019-Substance Abuse Treatment Trust Fund 3020-Tobacco Settlement Fund 3010-Pierces Disease Management Account 3013-California Central Coast State Veterans Cemetery at Fort Ord Operations Fund 3015-Gas Consumption Surcharge Fund 3016-Missing Persons DNA Data Base Fund 3017-Occupational Therapy Fund Fund 110,699 14,865 2,000 104,857 17,910 2,000 7,324 3,047 998 8,337 1,607 1,844 13,796 4,842 14,033 134 24 1,570 4,926 1,460 143,167 93,784 331,563 8,421 998 6,092 1,482 282,180 11,299 73,942 66,547 18,694 186 1,736 -- 1,925 4 1,710 1,951 -- 1,511 6 1,588 35 27,122 1,216 277 752 2,219 5,141 12,290 25 12,839 Beginning Reserve 2019-20 182 -- -647 647 1,702 -1,203 -- 6 1,012 1,536 180 1,152 111 104 1,204 26,397 57 13,075 -- 1,273 13,800 -- -- 2,368 2,232 2,355 277 3,375 3,159 5,357 1,570 566,570 481,802 97,058 7,490 643 642 26 6,672 3,374 Expenditures 2018-19 5,700 Revenues 2018-19 10,513 Beginning Reserve 2018-19 4,150 2,000 16,092 120,460 1,898 -- 89,028 83,952 4 893 -- 1,012 -- 944 212 14,800 -- -- 6,104 2,520 3,159 616,574 351 4,401 Revenues 2019-20 (Dollars in Thousands) 4,716 2,000 20,405 108,735 1,619 134 165,851 87,072 -- 1,437 -- 1,199 -- 901 194 14,520 -- -- 6,756 2,724 3,992 563,219 338 3,375 Expenditures 2019-20 SCHEDULE 10 AT 2020-21 GOVERNOR'S BUDGET SUMMARY OF FUND CONDITION STATEMENTS 7,855 998 1,779 13,207 14,312 1,326 205,357 8,179 190 1,192 -- 1,324 6 1,631 53 27,402 1,216 277 100 2,015 4,308 65,645 38 13,865 Beginning Reserve 2020-21 4,150 2,000 19,392 120,680 1,898 -- 68,853 91,697 4 893 -- 1,012 -- 944 212 4,653 2,000 20,378 117,821 7,352 998 793 16,066 14,638 1,193 133 1,572 104,653 8,730 194 654 -- 1,147 6 1,669 73 27,695 1,216 277 1,047 1,757 3,480 119,018 51 14,838 Ending Reserve 2020-21 169,557 91,146 -- 1,431 -- 1,189 -- 906 192 -14,507 -- -- 5,461 3,365 3,987 563,201 77 3,428 Expenditures 2020-21 14,800 -- 6,408 3,107 3,159 616,574 90 4,401 Revenues 2020-21 Appendix 50 GOVERNOR'S BUDGET SUMMARY 2020-21 2,352 6,102 3087-Unfair Competition Law Fund 24,335 26,169 47,340 2,374,467 850,641 47,543 2,367,489 -483 4,763 1,754 1,722 74 3,045 2,605 297,316 83 288,787 312,313 6,892 101 11,033 10,894 65,080 6,060 8,740 34,333 85 -647 -- 1 229 -- 51 789 1,295 5,141 1 421 1,175 2,773 445 429 100 409 471 657 3086-DNA Identification Fund 3084-State Certified Unified Program Agency Account 3085-Mental Health Services Fund 3082-School Facilities Emergency Repair Account 3083-Welcome Center Fund 3074-Medical Marijuana Program Fund 3075-Unlawful Sales Reduction Fund 3078-Labor and Workforce Development Fund 3079-Childrens Medical Services Rebate Fund 3080-AIDS Drug Assistance Program Rebate Fund 3081-Cannery Inspection Fund 3070-Nontoxic Dry Cleaning Incentive Trust Fund 3071-Car Wash Worker Restitution Fund 3072-Car Wash Worker Fund 225 239 808 98,537 99,840 10,257 12,962 70,425 90,010 118,301 11,322 372 786 474 10,866 43,901 -- 44,839 3067-Cigarette and Tobacco Products Compliance Fund 3068-Vocational Nurse Education Fund 3069-Naturopathic Doctors Fund 4,822 1,753 16,894 1,952 12,741 7,227 24,704 19,521 Expenditures 2018-19 3062-Energy Facility License and Compliance Fund 3063-State Responsibility Area Fire Prevention Fund 3064-Mental Health Practitioner Education Fund 3065-Electronic Waste Recovery and Recycling Account, Integrated Waste Management Fund 3066-Court Facilities Trust Fund 3,551 22,135 17,340 Revenues 2018-19 3060-Appellate Court Trust Fund 7,703 3058-Water Rights Fund Beginning Reserve 2018-19 3057-Dam Safety Fund Fund 4,268 4,966 843,663 -515 110 6,707 1,912 320,842 6,753 90,673 86 179 5,647 3,527 328 435 822 12,506 11,560 137,886 888 938 13,825 18,016 982 5,522 Beginning Reserve 2019-20 33,796 45,173 2,360,373 2,476 90 -- 2,605 363,719 9,260 34,333 1 -- 795 675 100 33,537 49,909 2,468,151 1,874 118 4,527 230 735,885 87 82 1,190 6,707 -- 359,715 6,913 113,470 87 10 5,594 3,781 316 338 828 8,634 6,145 123,965 882 948 13,017 15,799 697 4,345 Beginning Reserve 2020-21 3,327 324,846 9,100 11,536 -- 169 848 421 112 518 234 240 421 13,050 104,030 93,776 835 -10 5,158 7,906 27,739 23,003 Expenditures 2019-20 9,178 98,615 79,855 829 -- 4,350 5,689 27,454 21,826 Revenues 2019-20 (Dollars in Thousands) SCHEDULE 10 AT 2020-21 GOVERNOR'S BUDGET SUMMARY OF FUND CONDITION STATEMENTS 33,096 42,959 2,328,600 2,476 90 -- 2,605 370,526 9,908 34,333 1 -- 795 675 50 428 240 9,178 98,592 78,022 404 -- 4,350 5,684 30,119 21,827 Revenues 2020-21 36,334 41,490 2,295,035 1,828 111 -- 3,335 366,098 9,748 31,102 -- 10 859 421 112 397 231 13,002 104,030 89,478 832 936 6,647 7,943 30,402 22,873 Expenditures 2020-21 1,289 1,699 769,450 735 61 6,707 460 364,143 7,073 116,701 88 -- 5,530 4,035 254 369 837 4,810 707 112,509 454 12 10,720 13,540 414 3,299 Ending Reserve 2020-21 Appendix 51 GOVERNOR'S BUDGET SUMMARY 2020-21 3109-Natural Gas Subaccount, Public Interest Research, Development, and Demonstration Fund 3110-Gambling Addiction Program Fund 3111-Retail Food Safety and Defense Fund 3112-Equality in Prevention and Services for Domestic Abuse Fund 3113-Residential and Outpatient Program Licensing Fund 3114-Birth Defects Monitoring Program Fund 3117-Alternative and Renewable Fuel and Vehicle Technology Fund 3119-Air Quality Improvement Fund 3088-Registry of Charitable Trusts Fund 3089-Public Utilities Commission Public Advocate's Office Account 3091-Certified Access Specialist Fund 3093-Transportation Deferred Investment Fund 3095-Film Promotion and Marketing Fund 3096-Nondesignated Public Hospital Supplemental Fund 3097-Private Hospital Supplemental Fund 3098-State Department of Public Health Licensing and Certification Program Fund 3099-Mental Health Facility Licensing Fund 3101-Analytical Laboratory Account, Department of Food and Agriculture Fund 3103-Hatchery and Inland Fisheries Fund 3107-Transportation Debt Service Fund 3108-Professional Fiduciary Fund Fund -239 9 -491 -29,008 174,569 370 520 22,178 -1,473 2 61 12,131 160,139 453 398 21,700 1,515,346 13,917 34 2,486 29,242 26,221 1,395 5,646 7,940 -- 157 --6,365 2,745 129,083 46,910 278 -24 5,636 3,173 212,681 25,051 1,344 60 52 7,422 1,759 188,288 38,669 521 23,207 25,882 32,252 560 356 506 1,794 221 36,757 34,497 8,283 1,515,346 6,525 Expenditures 2018-19 7,647 Revenues 2018-19 6,117 Beginning Reserve 2018-19 16,810 271,886 2,187 6,693 76 60 1,465 34,927 260 -- 7,462 5,524 1,478 11,791 70,381 3,038 27 12,683 1,944 6,023 7,239 Beginning Reserve 2019-20 42,400 120,000 3,240 5,793 24 -- 278 25,800 633 1,646,804 21,700 476 398 198,542 48,099 567 10 -12,683 409 47,302 4,631 Revenues 2019-20 (Dollars in Thousands) 51,608 316,688 2,863 9,120 -- -- 156 45,681 642 1,646,804 25,267 525 415 204,707 27,000 -- 10 -- 425 49,378 6,594 Expenditures 2019-20 SCHEDULE 10 AT 2020-21 GOVERNOR'S BUDGET SUMMARY OF FUND CONDITION STATEMENTS 42,400 120,000 75,198 7,602 3,231 5,676 24 -- 278 25,800 640 1,779,530 21,700 476 398 234,796 47,199 542 10 -- 409 47,932 4,631 Revenues 2020-21 2,564 3,366 100 60 1,587 15,046 251 -- 3,895 5,475 1,461 5,626 91,480 3,605 27 -- 1,928 3,947 5,276 Beginning Reserve 2020-21 32,157 162,917 2,735 9,042 -- -- 156 32,136 651 1,779,530 22,843 515 412 237,442 27,000 -- 10 -- 421 50,409 8,200 Expenditures 2020-21 17,845 32,281 3,060 -- 124 60 1,709 8,710 240 -- 2,752 5,436 1,447 2,980 111,679 4,147 27 -- 1,916 1,470 1,707 Ending Reserve 2020-21 Appendix 52 GOVERNOR'S BUDGET SUMMARY 2020-21 3144-Building Standards Administration Special Revolving Fund 3145-Underground Storage Tank Petroleum Contamination Orphan Site Cleanup Fund 3147-State Water Pollution Control Revolving Fund Small Community Grant Fund 3149-Local Safety and Protection Account, Transportation Tax Fund 3150-State Public Works Enforcement Fund 3141-California Advanced Services Fund 3142-State Dental Assistant Fund 3132-Charity Bingo Mitigation Fund 3133-Managed Care Administrative Fines and Penalties Fund 3134-School District Account, Underground Storage Tank Cleanup Fund 3136-Foreclosure Consultant Regulation Fund 3137-Emergency Medical Technician Certification Fund 3138-Immediate and Critical Needs Account, State Court Facilities Construction Fund 3139-Specialized License Plate Fund 3140-State Dental Hygiene Fund 3131-California Bingo Fund 3120-State Fire Marshal Fireworks Enforcement and Disposal Fund 3121-Occupational Safety and Health Fund 3122-Enhanced Fleet Modernization Subaccount, High Polluter Repair or Removal Account 3123-Coastal Act Services Fund Fund 1,474 895 2,547 4,460 8,000 -11,941 351 12,872 -8,607 7,661 15,462 16,115 704 11,762 2,229 1,948 2,179 2,548 82,964 3,153 12,582 50,469 1,623 262,994 224,204 243,600 1,855 1,552 1,591 1,218 2,348 -- -- 13 705 2,194 128 2,555 537 -- 3,332 2,579 1,313 -- -- 5 -- 39,136 33,573 27,962 -- 98,381 92,298 41,439 708 -- Expenditures 2018-19 -- Revenues 2018-19 210 Beginning Reserve 2018-19 -- 7,090 -- 704 8,428 12,880 359 3,100 2,535 52,332 1,859 755 300,347 1,615 1 123 -2,381 -- -- 886 32,934 126,560 Revenues 2019-20 20,987 11,353 8,635 2,267 120,851 2,580 1,145 204,810 1,257 13 489 5,911 5 708 1,968 22,399 35,356 210 Beginning Reserve 2019-20 (Dollars in Thousands) 13,528 -- 8,000 10,000 2,531 2,780 81,389 2,527 712 227,770 1,965 1,990 704 25,867 1,712 9,204 2,022 91,794 1,912 1,188 277,387 907 14 612 --- 3,530 5 708 1,381 14,518 56,639 210 Beginning Reserve 2020-21 -- -- -- 1,473 40,815 105,277 -- Expenditures 2019-20 SCHEDULE 10 AT 2020-21 GOVERNOR'S BUDGET SUMMARY OF FUND CONDITION STATEMENTS -- 12,090 -- 12,880 359 3,200 2,556 52,333 1,856 755 209,918 1,615 1 123 -- -- -- 886 33,173 109,470 Revenues 2020-21 13,936 -- 8,000 -- 3,181 2,811 81,532 2,583 713 226,689 1,982 -- -- -- -- -- 1,525 33,335 110,739 -- Expenditures 2020-21 144 704 30,747 2,071 9,223 1,767 62,595 1,185 1,230 260,616 540 15 735 3,530 5 708 742 14,356 55,370 210 Ending Reserve 2020-21 Appendix 53 GOVERNOR'S BUDGET SUMMARY 2020-21 3167-Skilled Nursing Facility Quality and Accountability Fund 3168-Emergency Medical Air Transportation and Children's Coverage Fund 3170-Heritage Enrichment Resource Fund 3171-Local Revenue Fund 2011 3172-Public Hospital Investment, Improvement, and Incentive Fund 3195-Carpet Stewardship Account, Integrated Waste Management Fund 3200-CalWORKs Maintenance of Effort Subaccount, Sales Tax Account 3201-Low Income Health Program MCE Out-of- Network Emergency Care Services Fund 3202-Architectural Paint Stewardship Account, Integrated Waste Management Fund 3205-Appliance Efficiency Enforcement Subaccount, Energy Resources Programs Account 3209-Office of Patient Advocate Trust Fund 3158-Hospital Quality Assurance Revenue Fund 3160-Wastewater Operator Certification Fund 3164-Renewable Energy Resources Development Fee Trust Fund 3165-Enterprise Zone Fund 3155-Lead-Related Construction Fund 3156-Childrens Health and Human Services Special Fund 3157-Recreational Health Fund 3151-Internal Health Information Integrity Quality Improvement Account 3152-Labor Enforcement and Compliance Fund 3153-Horse Racing Fund Fund 535 132 -3,562 -58 132 4,758 20,185 608 43 -658,440 420 752,887 -281 1,567 1,811 112 -649,799 421 752,887 8,023 225 1,672 2,172 6,296 456 -- 753 -- 12,162 664 2,774 2,101 9,639 6,762 5,434 2,608 2,462 2,879 -- 754 -998 525 4,968 -748 521 3,877 1,254 2,294 1,589 720 3,163 566,157 1,491,929 -- -- 535 497,116 609 1,606 5,402,482 286 7,621 489,781 1 35,181 Beginning Reserve 2019-20 4,476,710 797 14,503 14,251 1,858 575 78,134 83,203 30,112 831 -- Expenditures 2018-19 -- Revenues 2018-19 1 Beginning Reserve 2018-19 -- 2,199 3,070 279 439 752,887 394 -4,700 860,392 112 6,040 204 58 -- 816 5,540,526 -- 10,813 575 14,539 92,783 Revenues 2019-20 (Dollars in Thousands) 2,219 2,905 451 -- 752,887 460 -4,700 860,392 42 6,586 2,671 1,144 -- 1,761 4,447,838 -- -- 912 15,014 85,309 -- Expenditures 2019-20 SCHEDULE 10 AT 2020-21 GOVERNOR'S BUDGET SUMMARY OF FUND CONDITION STATEMENTS 1 2,442 3,044 436 20,624 -- 688 -998 595 4,422 1,410 168 132 1,349 1,658,845 535 507,929 272 1,131 42,655 Beginning Reserve 2020-21 -- 2,279 3,070 279 -- 752,887 394 -9,400 306,000 112 5,299 204 58 -- 956 3,647,696 -- -- 1,182 16,548 108,600 Revenues 2020-21 2,217 3,862 436 -- 752,887 663 -9,400 306,000 44 5,929 -329 144 -- 1,792 4,201,064 -- -- 917 16,542 100,212 -- Expenditures 2020-21 1 2,504 2,252 279 20,624 -- 419 -998 663 3,792 1,943 82 132 513 1,105,477 535 507,929 537 1,137 51,043 Ending Reserve 2020-21 Appendix 54 GOVERNOR'S BUDGET SUMMARY 2020-21 3210-Davis-Dolwig Account, California Water Resources Development Bond Fund 3211-Electric Program Investment Charge Fund 3212-Timber Regulation and Forest Restoration Fund 3213-Long-Term Care Quality Assurance Fund 3216-Protective Services Subaccount, Support Services Account 3217-Behavioral Health Subaccount, Support Services Account 3221-Trial Court Security Subaccount, Law Enforcement Services Account 3222-Enhancing Law Enforcement Activities Subaccount, Law Enforcement Services Account 3223-Community Corrections Subaccount, Law Enforcement Services Account 3224-District Attorney and Public Defender Subaccount, Law Enforcement Services Account 3226-Juvenile Reentry Grant Special Account, Juvenile Justice Subaccount 3227-Youthful Offender Block Grant Special Account, Juvenile Justice Subaccount 3228-Greenhouse Gas Reduction Fund 3230-Juvenile Justice Growth Special Account, Law Enforcement Services Growth Subaccount 3231-Enhancing Law Enforcement Activities Growth Special Account, Enhancing Law Enforcement Activities Subaccount Fund 110,299 54,666 737,762 78,012 46,000 621,065 2,336,173 1,415,447 559,691 489,900 1,311,193 37,919 44,936 27,612 260,062 ------- 3,717,416 153,122 3,419,546 7,303 221,270 -- 3,472,517 -- -- 221,270 7,303 153,122 8,944 -- 8,944 37,919 1,311,193 489,900 559,691 1,415,447 2,336,173 6,972 Expenditures 2018-19 10,277 Revenues 2018-19 6,970 Beginning Reserve 2018-19 -- -- 3,174,647 -- -- -- -- -- -- -- -- 143,365 18,946 12,649 10,275 Beginning Reserve 2019-20 257,433 12,349 2,666,500 160,021 9,347 41,571 1,365,962 489,900 566,994 1,483,256 2,397,201 540,062 46,000 251,116 10,000 Revenues 2019-20 (Dollars in Thousands) 257,433 12,349 3,757,311 160,021 9,347 41,571 1,365,962 489,900 566,994 1,483,256 2,397,201 509,884 54,033 250,148 19,828 Expenditures 2019-20 SCHEDULE 10 AT 2020-21 GOVERNOR'S BUDGET SUMMARY OF FUND CONDITION STATEMENTS -- -- 2,083,836 -- -- -- -- -- -- -- -- 173,543 10,913 13,617 447 Beginning Reserve 2020-21 259,130 11,153 2,451,800 171,689 10,029 47,745 1,458,582 489,900 579,343 1,597,928 2,500,406 541,135 46,000 148,000 10,000 Revenues 2020-21 259,130 11,153 4,493,286 171,689 10,029 47,745 1,458,582 489,900 579,343 1,597,928 2,500,406 595,880 52,232 148,158 10,000 Expenditures 2020-21 -- -- 42,350 -- -- -- -- -- -- -- -- 118,798 4,681 13,459 447 Ending Reserve 2020-21 Appendix 55 GOVERNOR'S BUDGET SUMMARY 2020-21 3232-District Attorney and Public Defender Growth Special Account, Law Enforcement Services Growth Subaccount 3233-Community Corrections Growth Special Account, Law Enforcement Services Growth Subaccount 3234-Trial Court Security Growth Special Account, Law Enforcement Services Growth Subaccount 3235-Behavioral Health Services Growth Special Account, Support Services Growth Subaccount 3236-Protective Services Growth Special Account, Support Services Growth Subaccount 3237-Cost of Implementation Account, Air Pollution Control Fund 3238-State Parks Revenue Incentive Subaccount, State Parks and Recreation Fund 3239-Women and Childrens Residential Treatment Services Special Account 3240-Secondhand Dealer and Pawnbroker Fund 3244-Political Disclosure, Accountability, Transparency, and Access Fund 3245-Disability Access and Education Revolving Fund 3246-Fair Employment and Housing Enforcement and Litigation Fund 3248-Family Support Subaccount, Sales Tax Account 3249-Child Poverty and Family Supplemental Support Subaccount, Sales Tax Account 3251-Prepaid Mobile Telephony Services Surcharge Fund 3252-CURES Fund Fund 61,028 82,920 4,502 7,303 67,809 61,028 84,058 222 5,104 -- --- 12,348 9,198 -- 1,269 510 458 104,422 953 1,801 533 958 1,640 450,130 104,422 -406 2,004 1,254 1,180 898 --- 14,315 4,127 450,130 481 599 2,903 5,104 67,809 7,303 54,768 54,768 -- 3,651 Expenditures 2018-19 3,651 Revenues 2018-19 -- Beginning Reserve 2018-19 -- -- -- -- -- 4,330 12,956 -- -- 2,080 1,628 518 3,021 -- 4,918 13,486 Beginning Reserve 2019-20 1,685 -2,950 104,422 414,893 500 967 507 599 5,104 3,000 87,350 103,205 114,672 12,349 92,620 6,175 Revenues 2019-20 (Dollars in Thousands) 4,039 -- 104,422 414,893 262 774 807 715 5,104 4,502 92,095 103,205 114,672 12,349 92,620 6,175 Expenditures 2019-20 SCHEDULE 10 AT 2020-21 GOVERNOR'S BUDGET SUMMARY OF FUND CONDITION STATEMENTS -- -- -- -- -- 1,976 10,006 -- -- 2,318 1,821 218 2,905 -- 3,416 8,741 Beginning Reserve 2020-21 3,310 -17,098 147,665 401,808 500 967 621 599 5,104 3,000 87,350 93,211 103,567 11,153 83,652 5,577 Revenues 2020-21 3,968 60 147,665 401,808 572 765 101 713 5,104 4,502 91,286 93,211 103,567 11,153 83,652 5,577 Expenditures 2020-21 -- -- -- -- -- 1,318 -7,152 -- -- 2,246 2,023 738 2,791 -- 1,914 4,805 Ending Reserve 2020-21 Appendix 56 GOVERNOR'S BUDGET SUMMARY 2020-21 3265-Prepaid MTS PUC Account 3268-Senior Citizens and Disabled Citizens Property Tax Postponement Fund 3270-Local Charges for Prepaid Mobile Telephony Service Fund 3273-Employment Opportunity Fund 3274-Social Services Subaccount, Vehicle License Fee Account 3275-County Medical Services Program Subaccount, Vehicle License Fee Account 3276-CalWORKs Maintenance of Effort Subaccount, Vehicle License Fee Account 3278-Mental Health Subaccount, Vehicle License Fee Account 3279-Health Subaccount, Vehicle License Fee Account 3280-General Growth Subaccount, Vehicle License Fee Growth Account 3260-Regional Railroad Accident Preparedness and Immediate Response Fund 3261-Vessel Operator Certification Account, Harbors and Watercraft Revolving Fund 3262-Expedited Claim Account, Underground Storage Tank Cleanup Fund 3263-College Access Tax Credit Fund 3264-Site Cleanup Subaccount 3256-Specialized First Aid Training Program Approval Fund 3257-Used Mattress Recycling Fund 3258-Mattress Recovery and Recycling Penalty Account, Used Mattress Recycling Fund 3259-Recidivism Reduction Fund 3254-Business Programs Modernization Fund 3255-Home Care Fund Fund 1,905 -172,864 47,335 367,663 95,260 852,701 103,381 2,460 ------- 103,381 852,701 95,260 367,663 47,335 172,864 5,795 16,001 4,650 20,572 25,500 39,851 -- -398 4,941 4,975 8,335 -6,122 72,982 -- 72,982 14 5,926 1,090 237 2,946 -- -9,000 16,228 1,233 -- 17 -- 466 -- -- 2,025 -- -- 7,818 10 4,084 5,213 70 3,684 Expenditures 2018-19 1,810 Revenues 2018-19 4,841 Beginning Reserve 2018-19 -- -- -- -- -- -- 555 -1,543 14 15,805 44,779 8,369 -- 2,093 767 7,228 17 2,025 80 1,479 2,967 Beginning Reserve 2019-20 53,606 1,029,186 95,424 367,663 -- 218,770 -- 2,950 --529 25,500 2,500 -- 237 -- -- 10 -- 9 8,708 1,864 Revenues 2019-20 (Dollars in Thousands) 53,606 1,029,186 95,424 367,663 -- 218,770 -881 1,103 -278 20,924 5,716 -- 1,110 54 -- -- 12 -- 7,720 2,187 Expenditures 2019-20 SCHEDULE 10 AT 2020-21 GOVERNOR'S BUDGET SUMMARY OF FUND CONDITION STATEMENTS -- -- -- -- -- -- 1,436 304 14 14,998 49,355 5,153 -- 1,220 713 7,228 27 2,013 89 2,467 2,644 Beginning Reserve 2020-21 66,818 1,039,078 115,490 367,663 -- 218,770 -- -- --457 25,500 2,500 -- 237 -- -- 10 -- 9 6,206 1,864 Revenues 2020-21 66,818 1,039,078 115,490 367,663 -- 218,770 1,436 683 -164 21,053 5,055 -- 1,161 7 -- -- 12 -- 7,414 186 Expenditures 2020-21 -- -- -- -- -- -- -- -379 14 14,377 53,802 2,598 -- 296 706 7,228 37 2,001 98 1,259 4,322 Ending Reserve 2020-21 Appendix 57 GOVERNOR'S BUDGET SUMMARY 2020-21 83,527 41,772 51,637 47,256 3288-Cannabis Control Fund 3306-Graduate Medical Education Account, California Healthcare, Research and Prevention Tobacco Tax Act of 2016 Fund 3290-Road Maintenance and Rehabilitation Account, State Transportation Fund 3291-Trade Corridor Enhancement Account, State Transportation Fund 3292-State Project Infrastructure Fund 3293-Health and Human Services Special Fund 3295-Education and Research Account 3297-Major League Sporting Event Raffle Fund 3299-Oil and Gas Environmental Remediation Account 3301-Lead-Acid Battery Cleanup Fund 3302-Safe Energy Infrastructure and Excavation Fund 3303-Ammunition Safety and Enforcement Special Fund 3304-California Healthcare, Research and Prevention Tobacco Tax Act of 2016 Fund 3305-Healthcare Treatment Fund -41,668 -41,772 2,367 -618,955 2,529,167 -325 54 3,916 3,711 8,681 1,327 913,436 4,821 2,455,615 400 1,557 48 -1,385 1,485 391 1,349 1,015,461 128,089 73,734 -525 6 8,399 4,811 16,410 2 534,494 -- 2,000 95,236 318,740 155,573 40,000 2,672,534 3,152,355 75,312 578,612 124,597 145 249 -- 254,172 254,172 -- 299,963 Expenditures 2018-19 299,963 Revenues 2018-19 -- Beginning Reserve 2018-19 3281-Family Support Subaccount, Vehicle License Fee Account 3282-Child Poverty and Family Supplemental Support Subaccount, Vehicle License Fee Account 3285-Electronic Recording Authorization Fund 3286-Safe Neighborhoods and Schools Fund 3287-Second Chance Fund Fund -- -- 38,000 636,519 24 8,120 2,585 3,098 -- 1,757 400 182 751,865 379,077 1,058,433 96,541 9,882 2,263 104 Beginning Reserve 2019-20 38,023 895,011 1,573 2,418 7,000 15,137 201 1,222 200 640,548 4,066 328,629 2,966,910 132,600 50,740 -50,740 283 294,310 187,986 Revenues 2019-20 (Dollars in Thousands) -- -- 76,023 992,939 1,591 8,455 4,359 10,868 60 746 200 -- 538,591 6 2,083 5,226 7,367 141 2,233 400 -- 755,931 -640,730 515,179 1,329,975 75,103 9,862 2,074 87 Beginning Reserve 2020-21 192,527 2,695,368 154,038 50,760 -50,551 300 294,310 187,986 Expenditures 2019-20 SCHEDULE 10 AT 2020-21 GOVERNOR'S BUDGET SUMMARY OF FUND CONDITION STATEMENTS 37,122 874,868 1,401 2,418 -406 16,112 201 1,222 200 -- -- 330,059 3,175,913 152,219 79,156 -79,156 283 317,958 187,986 Revenues 2020-21 37,122 1,044,564 1,379 3,984 4,798 11,615 206 689 200 -- -- 655,329 3,602,996 30,843 79,176 -78,989 300 317,958 187,986 Expenditures 2020-21 70 -- -- -- 368,895 28 517 22 11,864 136 2,766 400 -- 755,931 189,909 902,892 196,479 9,842 1,907 Ending Reserve 2020-21 Appendix 58 GOVERNOR'S BUDGET SUMMARY 2020-21 3315-Household Movers Fund, Professions and Vocations Fund 3318-Department of Public Health Subaccount, Tobacco Law Enforcement Account, CA Healthcare, Research and Prevention Tobacco Tax Act of 2016 Fund 3319-Department of Tax and Fee Administration Subaccount, Tobacco Law Enforcement Account, CA Healthcare, Research and Prevention Tobacco Tax Act of 2016 Fund 3320-Department of Justice Subaccount, Tobacco Law Enforcement Account, CA Healthcare, Research and Prevention Tobacco Tax Act of 2016 Fund 3307-State Dental Program Account, California Healthcare, Research and Prevention Tobacco Tax Act of 2016 Fund 3308-Tobacco Law Enforcement Account, California Healthcare, Research and Prevention Tobacco Tax Act of 2016 Fund 3309-Tobacco Prevention and Control Programs Account, California Healthcare, Research and Prevention Tobacco Tax Act of 2016 Fund 3310-Medical Research Program Account, California Healthcare, Research and Prevention Tobacco Tax Act of 2016 Fund 3311-Health Care Services Plan Fines and Penalties Fund 3312-Natural Resources and Parks Preservation Fund 3313-Southern California Veterans Cemetery Master Development Fund 3314-California Cannabis Tax Fund Fund -- -- -- 10,403 -100,000 -36,271 -- -- 61,918 6,496 --178,966 3,474 6,000 6,000 36,219 10,920 33,700 6,220 52,116 -4,500 83,869 --- -- -- 31,295 4,551 6,000 1,138 30,048 Expenditures 2018-19 30,000 Revenues 2018-19 2,455 Beginning Reserve 2018-19 4,924 1,449 -- 2,336 226,564 4,500 100,000 48,209 68,138 33,700 10,920 2,407 Beginning Reserve 2019-20 37,932 9,245 9,666 2,223 122,185 -- -- 4,911 54,574 -33,700 -10,920 28,517 Revenues 2019-20 (Dollars in Thousands) 38,543 10,197 9,265 2,373 11,782 -20,000 100,000 9,017 70,821 -- -- 27,994 Expenditures 2019-20 SCHEDULE 10 AT 2020-21 GOVERNOR'S BUDGET SUMMARY OF FUND CONDITION STATEMENTS 4,313 497 401 2,186 336,967 24,500 -- 44,103 51,891 -- -- 2,930 Beginning Reserve 2020-21 33,410 6,000 5,568 2,243 36,742 4,877 5,510 3,253 2,897 700 -117,666 -- 6,324 105,237 -- -- 27,489 Expenditures 2020-21 -- 2,530 53,346 -- -- 27,842 Revenues 2020-21 981 1,620 459 1,176 451,736 23,800 -- 40,309 -- -- -- 3,283 Ending Reserve 2020-21 Appendix 59 GOVERNOR'S BUDGET SUMMARY 2020-21 3321-Department of Education Subaccount, Tobacco Prevention and Control Programs Account, CA Healthcare, Research and Prevention Tobacco Tax Act of 2016 Fund 3322-Department of Public Health Subaccount, Tobacco Prevention and Control Programs Account, CA Healthcare, Research and Prevention Tobacco Tax Act of 2016 Fund 3323-Medi-Cal Emergency Medical Transport Fund 3324-Safe and Affordable Drinking Water Fund 3328-Pharmaceutical and Sharps Stewardship Fund 3329-Mobilehome Dispute Resolution Fund 3330-TNC Access for All Fund 3331-Medi-Cal Drug Rebate Fund 3333-Cannabis Tax Fund Department of Tax and Fee Administration 3335-Cannabis Tax Fund Department of Consumer Affairs 3338-Cannabis Tax Fund Department of Fish and Wildlife 3339-Cannabis Tax Fund - State Water Resources Control Board 3340-Cannabis Tax Fund Department of Pesticide Regulation 3345-Cannabis Tax Fund Employment Development Department 3346-Cannabis Tax Fund - Bureau of Cannabis Control - Allocation 2 3347-Cannabis Tax Fund California Highway Patrol Allocation 2 3348-Cannabis Tax Fund Governor's Office of Business and Economic Development Allocation 2 Fund Beginning Reserve 2018-19 24,148 136,840 63,324 --1,877 ------------ -- -- ---------------- Revenues 2018-19 -- -- -- -- -- -- -- -- ---- -- -- -- 48,644 129,650 24,347 Expenditures 2018-19 -- -- -- -- -- -- -- -- ---- 1,877 -- -- 14,680 7,190 -199 Beginning Reserve 2019-20 20,000 3,000 10,000 2,531 2,282 14,375 9,577 15,590 45,000 1,355,798 7,441 3,754 2,000 -- 75,365 133,697 41,895 Revenues 2019-20 (Dollars in Thousands) 20,000 3,000 10,000 2,531 2,282 14,375 9,577 15,590 45,000 1,355,795 7,441 1,057 1,987 -- 89,151 127,584 31,389 Expenditures 2019-20 SCHEDULE 10 AT 2020-21 GOVERNOR'S BUDGET SUMMARY OF FUND CONDITION STATEMENTS -- -- -- -- -- -- -- -- -3 -- 4,574 13 -- 894 13,303 10,307 Beginning Reserve 2020-21 30,000 3,000 10,000 3,633 3,487 10,906 8,507 15,537 45,000 1,496,885 12,860 3,754 3,833 117,000 77,348 117,894 20,805 Revenues 2020-21 30,000 3,000 10,000 3,633 3,487 10,906 8,507 15,537 45,000 1,315,885 12,860 3,872 3,350 117,000 77,319 117,203 31,111 Expenditures 2020-21 1 -- -- -- -- -- -- -- -- -181,003 -- 4,456 496 -- 923 13,994 Ending Reserve 2020-21 Appendix 60 GOVERNOR'S BUDGET SUMMARY 2020-21 3349-Cannabis Tax Fund University of California San Diego Center for Medicinal Cannabis Research -Allocation 2 3350-Cannabis Tax Fund Department of Health Care Services, Youth Education, Prevention, Early Intervention and Treatment Account - Allocation 3 3351-Cannabis Tax Fund Department of Fish and Wildlife, Environmental Restoration and Protection Account - Allocation 3 3352-Cannabis Tax Fund Department of Parks and Recreation, Environmental Restoration and Protection Account - Allocation 3 3353-Cannabis Tax Fund California Highway Patrol, State and Local Government Law Enforcement Account - Allocation 3 3354-Cannabis Tax Fund - Board of State and Community Corrections, State and Local Government Law Enforcement Account - Allocation 3 3357-The Supportive Housing Program Subaccount, Mental Health Services Fund 3360-Financial Empowerment Fund 3361-California Earthquake Safety Fund 3362-PACE Oversight Fund of the State Department of Health Care Services 3363-Financial Protection Fund 3364-Department of Fish and Wildlife - California Environmental Quality Act Fund 3366-Electronic Cigarette Products Tax Fund Fund Beginning Reserve 2018-19 ------ ----- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Revenues 2018-19 -- --- -- -- -- -- -- -- -- -- -- -- Expenditures 2018-19 Beginning Reserve 2019-20 -- --- -- -- -- -- -- -- -- -- -- -- -- --- -- -- -- 53,735 27,679 14,476 16,862 25,293 126,464 2,000 Revenues 2019-20 (Dollars in Thousands) -- --- -- -- -- 53,735 27,679 14,476 16,862 25,293 126,464 2,000 Expenditures 2019-20 SCHEDULE 10 AT 2020-21 GOVERNOR'S BUDGET SUMMARY OF FUND CONDITION STATEMENTS Beginning Reserve 2020-21 -- --- -- -- -- -- -- -- -- -- -- -- 34,000 237,649 6,290 460 17,283 5,353 61,276 44,759 21,796 26,622 39,933 199,666 2,000 Revenues 2020-21 16,865 114,168 5,500 460 17,283 1,345 61,276 44,759 21,796 26,622 39,933 199,666 2,000 Expenditures 2020-21 -- -- -- -- -- -- -- 17,135 123,481 790 -- -- 4,008 Ending Reserve 2020-21 Appendix 61 GOVERNOR'S BUDGET SUMMARY 2020-21 $42,622,425 Note: Numbers may not add due to rounding $31,643,232 $200,973,560 $61,594,612 $199,875,507 $58,014,392 -- -113,524 119,609 GRAND TOTALS 114 Expenditures 2018-19 -- Revenues 2018-19 312 Beginning Reserve 2018-19 Totals, Special Funds 8059-State Community Corrections Performance Incentive Fund 8080-Clean Energy Job Creation Fund Fund $43,720,478 $35,223,452 6,085 198 Beginning Reserve 2019-20 -- -- $209,358,494 $62,872,897 Revenues 2019-20 (Dollars in Thousands) $209,767,371 $60,018,686 -- 7 Expenditures 2019-20 SCHEDULE 10 AT 2020-21 GOVERNOR'S BUDGET SUMMARY OF FUND CONDITION STATEMENTS $43,311,601 $38,077,663 6,085 191 Beginning Reserve 2020-21 -- -- $211,930,843 $60,296,038 Revenues 2020-21 $216,841,194 $63,757,896 -- 7 Expenditures 2020-21 $38,401,250 $34,615,805 6,085 184 Ending Reserve 2020-21 Appendix 62 GOVERNOR'S BUDGET SUMMARY 2020-21 Safe, Reliable High-Speed Passenger Train Bond Act (2008) Seismic Retrofit (1996) 6043 0653 NATURAL RESOURCES 5/ Ca Safe Drinking Water (2006) 2/ 5/ 6051 0716 Clean Water & Water Reclam (1988) New Prison Construction (1988) New Prison Construction (1990) 0747 0751 Total, Youth and Adult Correctional * New Prison Construction (1986) Co Corr Facil Cap Expend & Youth Facil (1988) 2029 2030 2034 2029 $1,530 605 $1,850 $2,762,000 1,245 0 0 $0 $1,606,645 1,499,650 105,465 450,000 817,000 500,000 500,000 $495,000 2022 1,500,000 980,000 $750,000 $0 $440,000 YOUTH AND ADULT CORRECTIONAL * Co Corr Facil Cap Expend (1986) 0746 0796 0711 Children's Hospital (2018) 6090 2047 2040 0 65,000 $0 $12,995,177 $34,548,070 $375,000 6,323,035 263,659 5,235 230 0 36,460 62,915 0 908,252 0 162,508 0 0 1,144,267 43,346 0 0 0 0 0 0 $4,045,270 $6,581,210 0 5,573,190 0 1,003,035 $4,985 $3,720,200 2,839,200 511,470 298,135 71,395 7,465,000 3,345,000 60,000 136,500 280,000 2,100,000 969,500 85,000 3,990,000 100,000 2,596,643 325,000 768,670 5,266,357 $3,230,000 Children's Hospital Projects (2008) 6079 2029 2028 2049 2043 2036 2031 2029 2040 2040 2033 2047 2022 75,000 1,884,000 Total, Health and Human Services Children's Hospital Projects (2004) 6046 HEALTH AND HUMAN SERVICES Total, Environmental Protection * Clean Water & Water Conserv (1978) 0737 ENVIRONMENTAL PROTECTION Total, Natural Resources Water Quality, Supply, and Infrastructure Improvement (2014) 5/ Water Conserv (1988) Water Security, Coastal & Beach Protection (2002) 2/ * State, Urban & Coastal Park (1976) 2/ * Water Conserv & Water Quality (1986) Safe Neighborhood Parks (2000) Safe, Clean, Reliable Water Supply (1996) 2/ * Fish & Wildlife Habitat Enhance (1984) Disaster Prep and Flood Prevent (2006) 2/ 0764 6083 6031 0790 0744 0742 0005 0402 0748 6052 * Community Parklands (1986) 2046 Clean Water, Clean Air, and Parks (2002) 6029 2032 2024 * Ca Wildlife, Coast, & Park Land Cons (1988) 1/ * Clean Water (1984) 0740 0786 2047 2040 100,000 2030 75,000 172,500 285,000 368,900 $4,100,000 $34,865,000 2,000,000 9,950,000 1,000,000 19,925,000 $1,990,000 $8,700,000 3,000,000 600,000 2,850,000 2,100,000 $0 $59,490 $150,000 $59,490 $200,000 $0 $0 $42,235 1,230 2,880 925 31,385 $5,815 $1,276,620 0 743,900 $532,720 $13,275 10,770 $2,505 $13,941,420 887,530 2,395,265 11,025 14,365 2,165 1,217,925 397,585 3,445 2,639,355 1,095 1,858,050 5,030 64,080 3,277,255 1,110,220 17,170 12,735 1,030 1,830 1,100 6,305 $16,860 $20,216,560 829,525 3,296,275 3,465 15,622,245 $465,050 $1,211,945 99,830 49,360 939,060 122,955 $740 Outstanding As of December 1, 2019 Unissued $200,000 Authorized 2027 2040 6001 0707 Ca Safe Drinking Water (1988) Ca Safe Drinking Water (2000) 2/ 2027 2024 2027 2045 0793 * Ca Parklands (1980) 1/ * Ca Safe Drinking Water (1976) Ca Drought, Water, Parks, Climate, Coastal Protection (2018) 1/ * Ca Park & Recreational Facil (1984) 2039 2048 2022 2047 2040 2029 2031 2045 2040 2022 Final Maturity * Ca Safe Drinking Water (1984) 0707 * Ca Safe Drinking Water (1986) 0707 0721 0722 6088 Passenger Rail & Clean Air (1990) Total, Transportation Highway Safe, Traffic Red, Air Qual, Port Sec (2006) 0756 TRANSPORTATION * Clean Air & Transp Improv (1990) 6053 0703 Veterans and Affordable Housing (2018) 6089 Total, Business, Consumer Services & Housing Housing and Emergency Shelter (2006) Veterans Housing and Homeless Prevention (2014) 6066 6082 Housing & Homeless (1990) Housing and Emergency Shelter (2002) 0714 BUSINESS, CONSUMER SERVIICES & HOUSING Total, Legislative, Judicial, Executive Voting Modernization (2002) LEGISLATIVE, JUDICIAL, EXECUTIVE Bond Act 6037 6032 Fund General Obligation Bonds $2,717,915 448,165 812,875 499,075 468,615 $489,185 $346,735 350 130,635 $215,750 $426,725 54,230 $372,495 $7,611,473 254,435 686,076 43,740 121,905 277,835 845,615 509,000 81,555 442,393 98,905 576,085 319,970 704,590 844,835 730,434 57,830 87,265 73,970 170,670 283,900 362,595 $37,870 $8,067,230 1,170,475 1,080,535 996,535 3,299,720 $1,519,965 $3,767,855 60,970 39,170 1,612,805 1,905,650 $149,260 $140,510 $140,510 Redeemed ** 4,330 $0 $0 $0 0 0 0 0 $0 $250 250 0 $0 $0 0 $0 $930,994 321,152 1,103 0 0 0 0 0 0 96809 0 6656 0 0 53,840 0 0 0 0 0 0 0 $451,434 $178,716 0 93,194 0 85,522 $0 $115,173 44404 45,832 4,342 $0 $0 $0 0 0 0 0 $0 $250 250 0 $0 $0 0 $0 $734,709 309,616 1,776 0 0 0 3529 0 0 60886 0 12649 0 0 55,027 0 0 0 0 0 0 0 $291,226 $92,453 0 79,282 0 13,171 $0 $93,772 55744 17,220 16,466 Proposed Sales July-Dec 2020 20,607 Jan-June 2020 (This statement does not include bonds issued under authority of state instrumentalities that are not general obligations of the State of California) (Dollars in Thousands) SCHEDULE 11 AT 2020-21 GOVERNOR'S BUDGET STATEMENT OF GENERAL OBLIGATION BOND & COMMERCIAL PAPER DEBT OF THE STATE OF CALIFORNIA $1,552 307 1,245 0 0 $0 $406,645 299,650 105,465 $1,530 $0 0 $0 $2,241,788 542,600 107,749 5,235 230 0 36,460 62,915 0 308,335 0 146,758 0 0 440,130 43,346 0 0 0 0 0 0 $548,030 $5,778,805 0 5,573,190 0 200,630 $4,985 $486,730 119,200 74,200 228,935 64,395 $0 $59,490 $59,490 $35 0 35 0 0 $0 $63,660 350 63,310 $0 $0 0 $0 $606,395 148,395 12,680 0 0 0 6,760 0 0 227,450 0 16,865 0 0 159,110 0 0 0 0 0 0 0 $35,135 $63,965 0 25,000 0 38,965 $0 $146,960 60,380 37,090 49,490 0 $0 $5,005 $5,005 As of December 1, 2019 Resolution Commercial Paper Authorization Outstanding GOVERNOR'S BUDGET SUMMARY 2020-21 Appendix 63 Ca Library Constr & Renov (2000) Class Size Reduction K-U Pub. Ed. Facil (1998) K-12 Public Education Facil (1996) K-12 6/ 6000 0119 Public Education Facil (2016) K-12 6086 1992 School Facil Bond Act (Nov) 0765 2040 Public Education Facil (2004) Hi-Ed 6041 Stem Cell Research and Cures (2004) 6047 $32,674,396 $152,764,341 $33,742,041 $158,474,341 0 $1,067,645 2,960,000 2048 900,045 $5,710,000 1,000,000 $167,600 $8,465 $350,000 $1,750,000 975 $7,490 $2,345,844 290,650 1,953,210 38,775 58,019 0 4,650 0 540 0 $0 50,000 $300,000 $17,462,000 3,000,000 2,000,000 3,087,000 2,300,000 1,650,000 975,000 900,000 450,000 600,000 $2,500,000 $5,355,515 $50,207,271 0 0 10,280 0 0 5,120,560 196,620 16,160 6,240 0 615 0 2049 2024 2039 2029 $0 5,040 $72,470,270 $806,455 678,585 99,865 $28,005 $71,663,815 $55,670 31,290 $24,380 $8,511,615 994,225 19,580 2,709,040 1,739,130 1,142,810 358,215 154,040 23,965 12,390 $1,358,220 $26,394,475 118,550 47,005 23,430 242,550 73,395 9,310 1,740,895 5,669,270 7,001,160 7,813,845 580,835 2,864,270 203,680 $6,280 Outstanding As of December 1, 2019 Unissued 898,211 797,875 797,745 1,900,000 800,000 150,000 7,000,000 7,329,000 10,000,000 11,400,000 2,012,035 6,700,000 350,000 $72,405 Authorized $52,262,030 $3,835,900 2,281,415 90 $1,554,395 $48,426,130 $285,865 17,735 $268,130 $6,604,541 1,715,125 27,210 339,185 502,851 507,190 612,135 745,960 425,495 587,610 $1,141,780 $18,457,281 779,661 750,870 774,315 1,647,170 726,605 140,690 138,545 1,463,110 2,982,680 3,579,915 1,431,200 3,835,115 141,280 $66,125 Redeemed ** Chapter 852, Statutes of 2017 (SB 5), reduced the voter authorized amount Chapter 39, Statutes of 2012 (SB 1018) & Chapter 28, Statutes of 2013 (SB 71), reduced the voter authorized amount Source: State Treasurer's Office, all information except "Proposed Sales" Department of Finance, information under "Proposed Sales" Chapter 727, Statutes of 2013 (AB 639), reduced the voter authorized amount 6/ 3/ 5/ Chapter 188, Statutes of 2014 (AB 1471), reduced the voter authorized amount 2/ 4/ Chapter 39, Statutes of 2012 (SB 1018), reduced the voter authorized amount The Self-Liquidating bonds are public service enterprises that have dedicated revenues to finance the respective debt service expenditures 1/ ** Reflects the amount of authorization for each bond act that has been reduced as a result of general obligation bonds redeemed or commercial paper redeemed or issued. * Bond acts not legally permitted to utilize commercial paper Total Total, Self-Liquidating Bonds Veterans and Affordable Housing (2018) CalVet Veterans Bonds 4/ * Ca Water Resources Dev (1959) SELF-LIQUIDATING BONDS3/ Total, All Agencies Total, General Government Veterans' Homes (2000) 0701 GENERAL GOVERNMENT Earthquake Safety & Public Bldg. Rehab (1990) 0768 2039 Public Education Facil (2016) CCC Total, Higher Education 2043 2047 6048/6049 Public Education Facil (2006) Hi-Ed 6087 2039 2032 2040 2040 Public Education Facil (1996) Hi-Ed Higher Education Facil (Jun 1992) 0705 Public Education Facil (2002) Hi-Ed Higher Education Facil (Jun 1990) 0791 2032 2039 0658 Higher Education Facil (1988) 0785 2035 6028 Class Size Reduction K-U Pub. Ed. Facil (1998) Hi-Ed 1/ 0574 HIGHER EDUCATION Total, Education--K-12 2032 1990 School Facil Bond Act (Jun) 0774 2036 2032 1/ School Facilities (1992) 1988 School Facil Bond Act (Nov) 1/ 0776 0745 2033 School Facilities (1990) 2026 2049 2048 2046 2046 2034 2033 2040 2030 Final Maturity 0708 * School Bldg & Earthquake (1974) Public Education Facil (2006) K-12 6057 0739 Public Education Facil (2002) K-12 Public Education Facil (2004) K-12 6036 6044 0657 Ca Library Constr & Renov (1988) 1/ EDUCATION--K-12 Bond Act 0794 Fund General Obligation Bonds 38874 11 0 0 0 0 $0 0 $2,217,865 $0 0 0 $0 $2,217,865 $0 0 $0 $198,937 37,016 161,921 0 0 0 0 0 0 0 $0 $793,795 0 0 0 0 0 0 0 0 0 0 0 $0 $1,821,807 $0 0 0 $0 $1,821,807 $0 0 $0 $161,997 30,747 131,250 0 0 0 0 0 0 0 $0 $738,626 0 0 0 0 0 0 738626 Proposed Sales July-Dec 2020 754910 Jan-June 2020 (This statement does not include bonds issued under authority of state instrumentalities that are not general obligations of the State of California) (Dollars in Thousands) SCHEDULE 11 AT 2020-21 GOVERNOR'S BUDGET STATEMENT OF GENERAL OBLIGATION BOND & COMMERCIAL PAPER DEBT OF THE STATE OF CALIFORNIA $11,758,694 $900,045 0 900,045 $0 $10,858,649 $8,465 975 $7,490 $541,369 86,175 353,210 38,775 58,019 0 4,650 0 540 0 $0 $1,333,805 0 0 0 10,280 0 0 1,098,850 196,620 16,160 6,240 0 615 5,040 $0 $963,365 $0 0 0 $0 $963,365 $635 0 $635 $47,290 22,115 23,805 840 0 0 530 0 0 0 $0 $29,420 0 0 0 0 0 0 12,230 2,735 13,370 1,080 0 5 0 $0 As of December 1, 2019 Resolution Commercial Paper Authorization Outstanding Appendix 64 GOVERNOR'S BUDGET SUMMARY 2020-21 $2,132 $1,225 $112,102 -70,661 $109,970 73 $180,631 -4,503 -24,610 $209,359 312 Appropriation Limit Room -13,317 -146 $32,130 -2,386 -24,610 $62,873 -3,601 109,970 -57,344 219 $148,501 -2,117 - $146,486 3,913 Total 106,593 -68,795 $106,593 43 $175,388 -3,654 -21,965 $200,974 -10 Special Funds 2019-20 $107,818 -12,266 -183 $32,494 -2,499 -21,965 $61,595 -4,454 Total General Fund Less: Total SAL Appropriations -56,529 226 $142,894 -1,155 - $139,379 4,444 Special Funds 2018-19 CALCULATION OF LIMIT ROOM Appropriations Limit (Sec. 12.00) Schedule 12E Less: Exclusions TOTAL, SAL APPROPRIATIONS Schedule 12D Add: Transfers from Other Funds to Included Funds TOTAL, SAL REVENUES AND TRANSFERS Schedule 12C Less: Non-Tax Revenues to Included Funds Schedule 12B Less: Revenues to Excluded Funds Schedule 8 Revenues and Transfers Less/Add: Transfers General Fund SCHEDULE 12A AT 2020-21 GOVERNOR'S BUDGET STATE APPROPRIATIONS LIMIT SUMMARY (Dollars in Millions) -58,095 238 $151,516 -2,125 - $151,635 1,768 General Fund -13,924 -151 $33,429 -2,512 -22,436 $60,296 -1,768 Special Funds 2020-21 $3,629 112,926 $116,555 -72,019 $112,926 87 $184,945 -4,637 -22,436 $211,931 0 Total SCHEDULE 12B AT 2020-21 GOVERNOR'S BUDGET REVENUES TO EXCLUDED FUNDS (Dollars in Thousands) Actual 2018-19 Estimated 2019-20 Estimated 2020-21 $2,002,955 $1,932,981 $1,926,133 1,888 1,888 1,888 187,507 187,255 187,583 $2,192,350 $2,122,124 $2,115,604 $1,345,701 $1,352,912 $1,342,867 5,609 18,893 18,935 4120700-Cannabis Licensing Fees 15,251 -- -- 4120800-Corporation Fees - Domestic Corporations 10,990 10,265 10,265 4121000-Corporation Fees - Foreign Corporations 1,254 1,294 1,294 4121200-Delinquent Fees 8,073 8,447 8,791 25,570 29,052 29,052 MAJOR REVENUES: 4110400-Cigarette Tax 4114000-Mobilehome In-Lieu Tax 4115600-Motor Vehicles - Other Fees Total, MAJOR TAXES AND LICENSES MINOR REVENUES: REGULATORY TAXES AND LICENSES: 4120000-Beverage Container Redemption Fees 4120400-Building Construction Filing Fees - Physically Handicapped 4121600-Elevator and Boiler Inspection Fees 4121800-Employment Agency Filing Fees 4122000-Employment Agency License Fees 4122200-Energy Resources Surcharge 4122800-Filing Financing Statements 4123000-Fish and Game - Licenses, Tags, and Permits 4123200-Fish and Game - Taxes 4123400-Genetic Disease Testing Fees 4123720-Horse Racing Licenses 4123800-Industrial Homework Fees 4124000-Insurance Company - Examination Fees 548 548 548 6,406 5,936 5,781 575,885 709,154 708,116 2,358 2,476 2,476 112,553 111,424 115,507 2,406 2,484 2,484 133,169 133,052 148,326 14,503 14,791 16,800 1 1 1 25,048 24,719 28,932 4124200-Insurance Company - License Fees and Penalties 59,504 69,112 70,943 4124400-Insurance Company - General Fees 34,883 38,493 38,650 4124600-Insurance Company - Proposition 103 Fees 33,822 35,253 37,695 4124800-Insurance Fraud Assessment - Automobile 53,013 53,748 54,366 4125000-Insurance Fraud Assessment - General 13,994 13,802 14,050 4125200-Insurance Fraud Assessment - Workers Compensation 66,894 72,644 78,508 4125400-Liquor License Fees 66,085 83,701 91,446 4125600-New Motor Vehicle Dealer License Fee 4125800-Notary Public License Fees 4126000-Off Highway Vehicle Fees 4126400-Processing Fee 4126600-Public Utilities Commission - Quarterly Fees 4126800-Public Utilities Commission - Penalties on Quarterly Fees 4127000-Real Estate - Examination Fees 4127200-Real Estate - License Fees 4127300-Refinery Fees 4127400-Renewal Fees 4128000-Subdivision Filing Fees 4128400-Teacher Credential Fees 4128600-Teacher Examination Fees 4129000-Other Fees and Licenses 4129200-Other Regulatory Fees 1,823 1,959 1,959 960 1,333 1,333 15,667 17,000 17,000 456 369 369 194,185 352,200 269,500 1 2 2 4,333 4,161 4,161 38,672 39,533 41,100 4,293 4,293 4,293 334,638 390,871 424,112 8,788 8,328 8,328 26,352 26,484 26,616 5,395 5,421 5,449 24,220 28,540 30,429 7,139,063 7,789,364 8,968,631 4129400-Other Regulatory Licenses and Permits 728,582 808,076 877,309 4129600-Other Regulatory Taxes 130,111 140,158 140,415 $11,921,360 $13,589,560 $11,817,271 Total, REGULATORY TAXES AND LICENSES REVENUE FROM LOCAL AGENCIES: 4130000-Architecture Public Building Fees $101,865 $89,694 $98,477 4131000-Crimes of Public Offense Fines 17,035 10,000 10,000 4131500-Felony Conviction Penalties 47,383 50,000 50,000 4132000-Fingerprint Identification Card Fees 97,482 97,482 97,482 513 513 513 4132500-Fish and Game Fines GOVERNOR'S BUDGET SUMMARY 2020-21 Appendix 65 SCHEDULE 12B AT 2020-21 GOVERNOR'S BUDGET REVENUES TO EXCLUDED FUNDS (Dollars in Thousands) 4133000-Fish and Game Fines - Additional Assessments 4134500-Local Agencies - Cost Recoveries 4135000-Local Agencies - Miscellaneous Revenue 4136500-Traffic Violation Penalties Total, REVENUE FROM LOCAL AGENCIES Actual 2018-19 Estimated 2019-20 Estimated 2020-21 100 100 100 1,285,001 1,504,206 949,914 22 -- -- $1,549,458 $1,752,052 $1,206,543 57 57 57 SERVICES TO THE PUBLIC: 4140000-Document Sales $4,407 $4,103 $4,199 4140500-Emergency Telephone User's Surcharge 60,141 115,210 170,278 4142500-License Plate Fees - Personalized Plates 4143500-Miscellaneous Services to the Public 4144000-Parental Fees 4144500-Parking Lot Revenues 4145000-Pay Patients Board Charges 4145500-Secretary of State - Fees 75,868 75,044 75,041 112,116 122,679 125,716 2,641 2,637 2,687 13,210 13,038 13,684 2 -- -- 39,582 42,613 43,903 4146000-State Beach and Park Service Fees 124,158 129,343 129,343 Total, SERVICES TO THE PUBLIC $432,125 $504,667 $564,851 4150000-Geothermal Resources Well Fees $4,055 $3,722 $3,722 4150500-Interest Income - Interfund Loans 16,053 993 132 5,676 10,512 7,218 USE OF PROPERTY AND MONEY: 4151000-Interest Income - Other Loans 4151500-Miscellaneous Revenue - Use of Property and Money 23,123 20,191 20,089 4152500-Rental of State Property 13,497 11,353 11,465 4154000-Royalties - Federal Land 29,861 30,026 30,205 4161000-Investment Income - Other 924 263 263 4162000-Investment Income - Pooled Money Investments 356 356 356 4163000-Investment Income - Surplus Money Investments 327,662 300,440 297,541 $421,207 $377,856 $370,991 Total, USE OF PROPERTY AND MONEY MISCELLANEOUS: 4170400-Capital Asset Sales Proceeds $494 $789 $1,689 4170600-Carbon Allowances Auction Proceeds 3,207,446 2,386,000 2,490,000 4170700-Civil and Criminal Violation Assessment 129,531 136,882 138,452 9 9 9 280 211 211 4170800-Confiscated Property Sales 4171000-Cost Recoveries - Delinquent Receivables 4171100-Cost Recoveries - Other 158,191 152,038 146,221 4171200-Court Filing Fees and Surcharges 561,298 583,807 585,198 10,681 6,238 6,050 6,883 6,257 6,249 2 14 14 4172000-Fines and Forfeitures 189,648 195,026 191,773 4172500-Miscellaneous Revenue 568,009 2,102,074 2,142,999 1,591 4,591 4,591 4172900-Penalty Assessments - Criminal Fines 167,929 155,623 144,191 4173000-Penalty Assessments - Other 194,535 270,670 200,314 23,598 23,598 23,598 4,800 5,903 12,055 60,080 56,664 59,964 4171300-Donations 4171400-Escheat - Unclaimed Checks, Warrants, Bonds, and Coupons 4171500-Escheat - Unclaimed Property 4172800-Parking Violations 4173100-Personal Income Tax - Penalties and Interest 4173400-Settlements and Judgments - Anti-Trust Actions - Attorney General 4173500-Settlements and Judgments - Other 4173600-State Public Land Sales 4173800-Traffic Violations 4173900-Tribal Gaming Revenues 4174100-Unemployment and Disability Insurance Contributions - Penalties and Interest 4180050-Cash Adjustment for Transportation Funds Total, MISCELLANEOUS TOTAL, MINOR REVENUES TOTALS, Revenue to Excluded Funds (MAJOR and MINOR) Appendix 66 2,048 2,000 2,000 20,600 19,269 17,765 49,833 50,315 58,265 135,827 146,160 140,900 -45,241 -40,274 -11,823 $5,448,072 $6,263,864 $6,360,685 $19,772,222 $22,487,999 $20,320,341 $21,964,572 $24,610,123 $22,435,945 GOVERNOR'S BUDGET SUMMARY 2020-21 SCHEDULE 12C AT 2020-21 GOVERNOR'S BUDGET NON-TAX REVENUES IN FUNDS SUBJECT TO LIMIT (Dollars in Thousands) MAJOR REVENUES: 4113000-Identification Card Fees 4113800-Lien Sale Application Fees 4115000-Motor Vehicles - Driver's License Fees 4115450-Transportation Improvement Fee 4115600-Motor Vehicles - Other Fees Total, MAJOR TAXES AND LICENSES Actual 2018-19 General Fund Special Funds Estimated 2019-20 General Fund Special Funds Estimated 2020-21 General Fund Special Funds --$1 --$1 $32,547 1,071 338,007 1,666,256 81,052 $2,118,933 ------- $32,692 1,071 381,948 1,534,739 87,806 $2,038,256 ------- $32,838 1,071 385,767 1,642,420 95,118 $2,157,214 120 -987 5 --1,183 5,644 -$7,939 -1,071 --663 5,649 7,515 67,194 15,911 $98,003 52 -987 5 --1,558 4,944 -$7,546 -1,286 --1,092 5,574 7,542 36,841 16,036 $68,371 95 -987 5 --1,558 4,945 -$7,590 -1,288 --1,103 5,500 7,618 36,898 16,036 $68,443 REVENUE FROM LOCAL AGENCIES: 4131000-Crimes of Public Offense Fines 4134500-Local Agencies - Cost Recoveries 4135000-Local Agencies - Miscellaneous Revenue 4135500-Narcotic Fines Total, REVENUE FROM LOCAL AGENCIES 58 26,299 164,893 2,092 $193,342 -14,005 19 -$14,024 58 26,299 165,143 1,000 $192,500 -14,005 17 -$14,022 58 26,299 160,431 1,000 $187,788 -14,005 17 -$14,022 SERVICES TO THE PUBLIC: 4140000-Document Sales 4142500-License Plate Fees - Personalized Plates 4143000-Medicare Receipts - Federal Government 4143500-Miscellaneous Services to the Public 4144500-Parking Lot Revenues 4145000-Pay Patients Board Charges 4145500-Secretary of State - Fees Total, SERVICES TO THE PUBLIC 133 -3,274 1,324 -1,520 150 $6,401 3,648 2 -88,440 513 --$92,603 160 -3,423 1,143 -1,659 174 $6,559 3,781 2 -90,018 513 --$94,314 160 -2,170 4,108 -557 166 $7,161 3,809 2 -91,624 513 --$95,948 USE OF PROPERTY AND MONEY 4151500-Miscellaneous Revenue - Use of Property and Money 4152000-Oil and Gas Leases - 1 Percent Revenue, Cities, and Counties 4152500-Rental of State Property 4155000-Royalties - State Lands Total, USE OF PROPERTY AND MONEY 1,465 335 18,838 139,732 $160,370 835 -59,266 -$60,101 1,871 305 19,910 125,688 $147,774 706 -53,919 -$54,625 1,871 261 19,913 86,081 $108,126 769 -55,311 -$56,080 MISCELLANEOUS: 4170100-Abandoned Property Revenue 4170700-Civil and Criminal Violation Assessment 4170800-Confiscated Property Sales 4171000-Cost Recoveries - Delinquent Receivables 4171100-Cost Recoveries - Other 4171200-Court Filing Fees and Surcharges 4171400-Escheat - Unclaimed Checks, Warrants, Bonds, and Coupons 4172000-Fines and Forfeitures 4172200-Fine and Penalties - Horse Racing 4172400-Forest Product Sales 4172500-Miscellaneous Revenue 4172800-Parking Violations 4173000-Penalty Assessments - Other 4173200-Proceeds from Estates of Deceased Persons 4173500-Settlements and Judgments - Other 4173600-State Public Land Sales 4173800-Traffic Violations 4173900-Tribal Gaming Revenues 4174200-Uninsured Motorist Fees Total, MISCELLANEOUS TOTAL, MINOR REVENUES 455,380 583 8,219 -44,866 3 68,347 1,914 229 -92,389 17,370 72,398 301 19,379 --4,384 730 $786,492 $1,154,544 -1,259 -62 5,372 363 2,269 --46,000 5,090 -3,711 -43 40,358 10,749 -191 $115,467 $380,198 443,036 300 8,355 10,276 1,049,825 11 66,235 2,393 229 -45,865 17,096 103,261 244 10,018 --5,009 746 $1,762,899 $2,117,278 -3,469 -156 5,853 363 2,216 --46,000 4,407 -3,712 -43 39,055 10,749 -191 $116,214 $347,546 432,098 300 8,355 10,276 851,580 11 66,205 2,393 229 -44,115 17,096 365,224 244 10,018 --5,009 746 $1,813,899 $2,124,564 -3,469 -156 5,907 363 2,204 --46,000 4,488 -3,712 -43 42,639 10,749 -191 $119,921 $354,414 TOTALS, Non-Tax Revenues (MAJOR AND MINOR) $1,154,545 $2,499,131 $2,117,278 $2,385,802 $2,124,564 $2,511,628 MINOR REVENUES: REGULATORY TAXES AND LICENSES: 4120600-Candidate Filing Fee 4123000-Fish and Game - Licenses, Tags, and Permits 4123720-Horse Racing Licenses 4123740-Horse Racing Miscellaneous 4125400-Liquor License Fees 4126000-Off Highway Vehicle Fees 4129200-Other Regulatory Fees 4129400-Other Regulatory Licenses and Permits 4129600-Other Regulatory Taxes Total, REGULATORY TAXES AND LICENSES GOVERNOR'S BUDGET SUMMARY 2020-21 Appendix 67 SCHEDULE 12D AT 2020-21 GOVERNOR'S BUDGET STATE APPROPRIATIONS LIMIT TRANSFER FROM OTHER FUNDS TO INCLUDED FUNDS (Dollars in Thousands) Actual 2018-19 General Fund Special Funds Estimated 2019-20 General Fund Special Funds Estimated 2020-21 General Fund Special Funds Revenue Transfer from California Environmental License Plate Fund (0140) to Motor Vehicle Account, State Transportation Fund (0044) per Public Resources Code Section 21191 -- $1,405 -- $1,405 -- $1,117 Revenue Transfer from College Access Tax Credit Fund (3263) to the General Fund (0001) per Revenue and Taxation Code Sections 17053.86 (Ch. 367/2014) and 17053.87 (Ch. 527/2017) $4,977 -- $2,500 -- $2,500 -- Revenue Transfer from Motor Vehicle Account, State Transportation Fund (0044) to General Fund (0001) per Government Code Section 16475 93 -93 3 -3 3 -3 Revenue Transfer from Motor Vehicle Account, State Transportation Fund (0044) to General Fund (0001) per Item 2740-0110044, Budget Acts 89,288 -89,288 -- -- -- -- Revenue Transfer from Motor Vehicle Fuel Account, Transportation Tax Fund (0061) to General Fund (0001) per Revenue and Taxation Code Section 8352.4(b) 15,017 -15,017 33,260 -33,260 35,375 -35,375 Revenue Transfer from Motor Vehicle Fuel Account, Transportation Tax Fund (0061) to General Fund (0001) per Revenue and Taxation Code Section 8352.5(b) 26,407 -26,407 39,583 -39,583 39,583 -39,583 Revenue Transfer from Motor Vehicle Fuel Account, Transportation Tax Fund (0061) to General Fund (0001) per Revenue and Taxation Code Section 8352.6(a)(2) 43,525 -43,525 64,110 -64,110 67,396 -67,396 Revenue Transfer from Motor Vehicle Fuel Account, Transportation Tax Fund (0061) to General Fund (0001) per Revenue and Taxation Code Section 8352.6(a)(3) 9,996 -9,996 9,996 -9,996 9,996 -9,996 Revenue Transfer from the Business Fees Fund (0228) to the General Fund (0001) per Government Code Section 12176. 11,310 -- 6,794 -- 18,644 -- 48 -- 52 -- 52 -- Revenue Transfer from the Senior Citizens and Disabled Citizens Property Tax Postponement Fund (3268) to the General Fund (0001) per Government Code Section 16180(b) -2,785 -- 3,468 -- 3,396 -- Revenue transfer from Site Operation and Maintenance Account, Hazardous Substance Account (0458) to Toxic Substances Control Account (0557) per Item 3960-011-0458, Annual Budget Act. -- 140 -- -- -- 140 27,900 -- 59,500 -- 61,200 -- $225,776 -$182,781 $219,266 -$145,547 $238,145 -$151,096 Revenue Transfer from the California Olympic Training Account (0442) to the General Fund (0001) per Government Code Section 7592 Transfer from the Greenhouse Gas Reduction Fund (3228) to the General Fund (0001) per Revenue and Taxation Code 6377.1 TOTAL TRANSFERS Appendix 68 GOVERNOR'S BUDGET SUMMARY 2020-21 SCHEDULE 12E AT 2020-21 GOVERNOR'S BUDGET STATE APPROPRIATIONS LIMIT EXCLUDED APPROPRIATIONS (Dollars in Millions) Fund Actual 2018-19 Estimated 2019-20 Estimated 2020-21 DEBT SERVICE: 9600 Bond Interest and Redemption (9600-510-0001) General $5,112 $4,980 $5,103 (9600-510-3107) Special 1,515 1,647 1,780 No Place Like Home bond (0977-501-3357) & (0977-601-3357) Special TOTAL -- DEBT SERVICE - 54 61 $6,627 $6,681 $6,944 $351 QUALIFIED CAPITAL OUTLAY PROJECTS: Various (Ch. 3 Except DOT) General $911 $493 Various (Ch. 3 Except DOT) Special 8 10 22 Various Qualified Capital Outlay Projects Various Qualified Capital Outlay Projects Lease-Revenue Bonds (Capital Outlay) General Special 777 1,298 672 1,290 510 1,201 General 661 635 644 Lease-Revenue Bonds (Capital Outlay) Special 7 7 7 $3,662 $3,107 $2,735 TOTAL -- CAPITAL OUTLAY SUBVENTIONS: 6100 K-12 / LCFF Apportionments General $33,590 $34,502 $35,252 6100 K-12 Education Protection Account General 7,697 7,706 7,351 6100 County Offices of Education Apportionments General 477 475 469 6100 Subventions Not Counted in Local Limits General General General -15,109 2,760 951 -16,138 2,909 952 -16,536 2,979 909 $30,366 $30,406 $30,424 6870 Community Colleges Apportionments 6870 Community Colleges Education Protection Account SUBVENTIONS -- EDUCATION 5195 1991 State-Local Realignment Vehicle License Collection Account Vehicle License Fees Special $14 $14 $14 Special 2,183 2,245 2,312 5196 2011 State-Local Realignment Special 733 757 779 9100 Tax Relief (9100-101-0001) General 406 415 415 9210 Property Tax Backfill (9210-102-0001) General 64 73 - $3,400 $3,504 $3,520 Vehicle License Fees SUBVENTIONS -- OTHER COURT AND FEDERAL MANDATES: Various Court and Federal Mandates (HHS) General $13,503 $14,783 $15,984 Various Court and Federal Mandates General 4,729 4,887 4,664 Various Court and Federal Mandates Special 260 267 266 $18,492 $19,937 $20,914 $342 $335 $336 $342 $335 $336 $6,188 TOTAL -- MANDATES SCA2/SB1 Retail Sales and Use Tax: Diesel Special TOTAL -- SCA2/SB1 PROPOSITION 111: Motor Vehicle Fuel Tax: Gasoline Special $5,052 $5,800 Motor Vehicle Fuel Tax: Diesel Special 854 891 958 $5,906 $6,691 $7,146 TOTAL -- PROPOSITION 111 $68,795 $70,661 $72,019 General Fund $56,529 $57,344 $58,095 Special Funds $12,266 $13,317 $13,924 TOTAL EXCLUSIONS: GOVERNOR'S BUDGET SUMMARY 2020-21 Appendix 69 SCHEDULE 13 AT 2020-21 GOVERNOR'S BUDGET PROPOSITION 98 FINAL CERTIFICATION (Dollars in Thousands) 2018-19 State Appropriations Limit General Fund Revenues Proposition 98 General Fund Education Protection Account Local Revenues Total State and Local Prop 98 Prop 98 Test Appropriations over/(under) the Prop 98 Guarantee 134,770,300 52,834,546 (7,650,690) 22,624,764 75,459,310 2 116,736 Proposition 98 Factors K-14 Appropriations K-12 Average Daily Attendance Full-time Equivalent Students Civilian Population K-12 Average Daily Attendance (% growth) Per Capita Personal Income (Test 2)(% growth) Per Capita General Fund plus 0.5% (Test 3)(% growth) Test 1 Percentage 75,576,046 5,960,120 1,125,544 39,578,945 -0.04% 3.69% 10.00% 38.21% Proposition 98 Re-benchings (included in calculation): One-Time: Ongoing: Appendix 70 -41,900 - GOVERNOR'S BUDGET SUMMARY 2020-21 Finance Glossary of Accounting and Budgeting Terms The following terms are used frequently throughout the Governor’s Budget, the Governor’s Budget Summary, the annual Budget (Appropriations) Bill, the Enacted Budget, and other documents. Definitions are provided for terms that are common to many of these publications. For definitions of terms unique to a specific program area, please refer to the individual budget presentation. Certain terms may be interpreted or used differently depending on the context, the audience, or the purpose. Abatement A reduction to an expenditure that has already been made. In state accounting, only specific types of receipts are accounted for as abatements, including refund of overpayment of salaries, rebates from vendors or third parties for defective or returned merchandise, jury duty and witness fees, and property damage or loss recoveries. (See SAM 10220 for more detail.) Abolishment of Fund The closure of a fund pursuant to the operation of law. Funds may also be administratively abolished by the Department of Finance with the concurrence of the State Controller’s Office. When a special fund is abolished, all of its assets and liabilities are transferred by the State Controller's Office to a successor fund, or if no successor fund is specified, then to the General Fund. (GC 13306, 16346.) Account A classification code used in FI$Cal (PeopleSoft) to identify an asset, liability, fund balance, receipt, expenditure, transfer, or statistical measurement in a transaction. Accounts combine several codes in the Uniform Codes Manual such as the general ledger code, receipt and object of expenditure codes into a single account code. (See also “Chart of Account Crosswalk” and ‘Uniform Codes Manual.”) Accruals Revenues or expenditures that have been recognized for that fiscal year but not received or disbursed until a subsequent fiscal year. Annually, accruals are included in the revenue and expenditure amounts reported in departments’ budget documents and year-end financial reports. For budgetary purposes, departments’ expenditure accruals also include payables and outstanding encumbrances at the end of the fiscal year for obligations attributable to that fiscal year. Accrual Basis of Accounting The basis of accounting in which transactions are recognized in the fiscal year when they occur, regardless of when cash is received or disbursed. Revenue is recognized in the fiscal year when earned, and expenditures are recognized in the fiscal year when obligations are created (generally when goods/services are ordered or when contracts are signed). Also referred to as the full accrual basis of accounting. GOVERNOR'S BUDGET SUMMARY 2020-21 Appendix 71 Administration Refers to the Governor's Office and those individuals, departments, and offices reporting to it (e.g., the Department of Finance). Administration Program Costs The indirect costs of a program, typically a share of the costs of the administrative units serving the entire department (e.g., the Director's Office, Legal, Personnel, Accounting, and Business Services). "Distributed Administration" costs represent the distribution of the indirect costs to the various program activities of a department. In most departments, all administrative costs are distributed. (See also “Indirect Costs” and “Statewide Cost Allocation Plan.”) Administratively Established Positions Positions authorized by the Department of Finance during a fiscal year that were not included in the Budget. Such positions terminate at the end of the fiscal year, or in order to continue, must meet certain criteria under Budget Act Control Section 31.00. (CS 31.00.) Agency A legal or official reference to a government organization at any level in the state organizational hierarchy. (See the UCM for the hierarchy of State Government Organizations.) or: A government organization belonging to the highest level of the state organizational hierarchy as defined in the UCM. An organization whose head (Agency Secretary) is designated by Governor's order as a cabinet member. Allocation A distribution of funds or costs from one account or appropriation to one or more accounts or appropriations (e.g., the allocation of employee compensation funding from the statewide 9800 Budget Act items to departmental appropriation items). (SAM 9200 et seq.) Allotment The approved division of an amount (usually of an appropriation) to be expended for a particular purpose during a specified time period. An allotment is generally authorized on a line item expenditure basis by program or organization. (SAM 8300 et seq.) Amendment A proposed or accepted change to a bill in the Legislature, the California Constitution, statutes enacted by the Legislature, or ballot initiative. A-Pages A common reference to the Governor's Budget Summary. Budget highlights now contained in the Governor's Budget Summary were once contained in front of the Governor's Budget on pages A-1, 2, etc., and were, therefore, called the A-Pages. Appendix 72 GOVERNOR'S BUDGET SUMMARY 2020-21 Appropriated Revenue Revenue which, as it is earned, is reserved and appropriated for a specific purpose. An example is student fees received by state colleges that are by law appropriated for the support of the colleges. The revenue does not become available for expenditure until it is earned. Appropriation Authorization for a specific agency to make expenditures or create obligations from a specific fund for a specific purpose. Appropriations are usually limited in amount and period of time during which the expenditure is to be recognized. For example, appropriations made by the Budget Act are available for encumbrance for one year, unless otherwise specified. Appropriations made by other legislation are available for encumbrance for three years, unless otherwise specified, and appropriations stating “without regard to fiscal year” shall be available from year-to-year until fully expended. Legislation or the California Constitution can provide continuous appropriations, and voters can also make appropriations by approving ballot measures. An appropriation shall be available for encumbrance during the period specified therein, or if not specified, for a period of three years after the date upon which it first became available for encumbrance. Except for federal funds, liquidation of encumbrances must be within two years of the expiration date of the period of availability for encumbrance, at which time the undisbursed (i.e., unliquidated) balance of the appropriation is reverted into the fund. Federal funds have four years to liquidate. (GC 16304, 16304.1.) Appropriation Without Regard to Fiscal Year (AWRTFY) An appropriation for a specified amount that is available from year-to-year until fully expended. Appropriations Limit, State (SAL) The constitutional limit on the growth of certain appropriations from tax proceeds, generally set to the level of the prior year's appropriation limit as adjusted for changes in cost of living and population. Other adjustments may be made for such reasons as the transfer of services from one government entity to another. (Article XIII B, § 8; GC 7900 et seq; CS 12.00.) Appropriation Schedule The detail of an appropriation (e.g., in the Budget Act), showing the distribution of the appropriation to each of the programs or projects thereof. Assembly California's lower house of the Legislature composed of 80 members. As a result of Proposition 140 (passed in 1990) and Proposition 28 (passed in 2012), members elected in or after 2012 may serve 12 years in the Legislature in any combination of four-year state Senate or two-year state Assembly terms. (Article IV, § 2 (a).) Audit Typically a review of financial reports or performance activity (such as of an agency or program) to determine conformity or compliance with applicable laws, regulations, and/or standards. The state has three central organizations that perform GOVERNOR'S BUDGET SUMMARY 2020-21 Appendix 73 audits of state agencies: the State Controller’s Office, the Department of Finance, and the California State Auditor. Many state departments also have internal audit units to review their own internal functions and program activities. (SAM 20000, etc.) Augmentation An increase to a previously authorized appropriation or allotment. This increase can be authorized by Budget Act provisional language, control sections, or other legislation. Usually, a Budget Revision or an Executive Order is processed to the State Controller’s Office to implement the increase. Authorized Given the force of law (e.g., by statute). For some action or quantity to be authorized, it must be possible to identify the enabling source and date of authorization. Authorized Positions In the Salaries and Wages publication, the past year total authorized positions represent the number of actual positions filled for that year as reported by the State Controller’s Office. For current year, total authorized positions include all regular ongoing positions approved in the Budget Act for that year, adjustments to limited-term positions and temporary help, and positions authorized through enacted legislation. For budget year, the number of authorized positions is the same as current year except for adjustments to remove expiring positions. (GC 19818) Availability Period The time period during which an appropriation may be encumbered (i.e., committed for expenditure), usually specified by the law creating the appropriation. If no specific time is provided in legislation, the period of availability is three years. Unless otherwise provided, Budget Act appropriations are available for one year. However, based on project phase, capital outlay projects may have up to three years to encumber. An appropriation with the term "without regard to fiscal year" has an unlimited period of availability and may be encumbered at any time until the funding is exhausted. (See also "Encumbrances.") Balance Available In regard to a fund, it is the excess of resources over uses. For budgeting purposes, the balance available in a fund condition is the carry-in balance, net of any prior year adjustments, plus revenues and transfers, minus expenditures. For accounting purposes, the balance available in a fund is the net of assets over liabilities and reserves that are available for expenditure. For appropriations, it is the unobligated, or unencumbered, balance still available. Baseline Budget Also referred to as Workload Budget. (See “Workload Budget.”) Appendix 74 GOVERNOR'S BUDGET SUMMARY 2020-21 Bill A draft of a proposed law presented to the Legislature for enactment. (A bill has greater legal formality and standing than a resolution.) or: An invoice, or itemized statement, of an amount owing for goods and services received. Bond Funds For legal basis budgeting purposes, funds used to account for the receipt and disbursement of non-self-liquidating general obligation bond proceeds. These funds do not account for the debt retirement because the liability created by the sale of bonds is not a liability of bond funds. Depending on the provisions of the bond act, either the General Fund or a sinking fund pays the principal and interest on the general obligation bonds. The proceeds and debt of bonds related to self-liquidating bonds are included in non-governmental cost funds. (SAM 14400.) Budget A plan of operation expressed in terms of financial or other resource requirements for a specific period of time. (GC 13320, 13335; SAM 6120.) Budget Act (BA) An annual statute authorizing state departments to expend appropriated funds for the purposes stated in the Governor's Budget and amended by the Legislature. (SAM 6333.) Budget Bill Legislation presenting the Governor’s spending proposal for the next fiscal year. The Budget Bill is prepared by the Department of Finance and submitted to each house of the Legislature in January (accompanying the Governor's Budget). The Budget Bill’s authors are typically the budget committee chairpersons. The California Constitution requires the Legislature to pass the Budget Bill and send it to the Governor for signature by June 15 each year. The Budget Bill becomes the Budget Act upon signature by the Governor, after any line-item vetoes. (Art. IV. § 12(c); GC 13338; SAM 6325, 6333.) Budget Change Proposal (BCP) A proposal to change the level of service or funding sources for activities authorized by the Legislature, propose new program activities not currently authorized, or to eliminate existing programs. The Department of Finance annually issues a Budget Letter with specific instructions for preparing BCPs. (SAM 6120.) GOVERNOR'S BUDGET SUMMARY 2020-21 Appendix 75 Budget Cycle The period of time required to prepare the state financial plan and enact that portion of it applying to the budget year. Significant events in the cycle include: • Preparation of the Governor's proposed budget (most activities occur between July 1 and January 10). • Submission of the Governor's Budget and the Budget Bill to the Legislature (by • • • • January 10). Submission to the Legislature of proposed adjustments to the Governor’s Budget o April 1—adjustments other than Capital Outlay and May Revision. o May 1—Capital Outlay appropriation adjustments. o May 14—May Revision adjustments for changes in General Fund revenues, expenditure adjustments to reflect updated revenue, and funding for Proposition 98, caseload, and population. Review and revision of the Governor's Budget by the Legislature. Return of the revised budget to the Governor by June 15, for signature after any line-item vetoes. Signing of the budget by the Governor. (Art. IV. § 10, GC 13308, SAM 6150.) Budget Letter Budget and accounting policies and instructions issued by the Department of Finance to supplement the budgeting and accounting chapters of the State Administrative Manual. Budget Period The FI$Cal (PeopleSoft) Terminology for Fiscal Year. (See also “Fiscal Year.”) Budget—Program A program budget expresses the operating plan in terms of the costs of activities (programs) to be undertaken to achieve specific goals and objectives. The Governor's Budget is a program budget, but also includes detailed categorization of proposed expenditures for goods and services (Expenditures by Category) related to the state operations of each department. (GC 13336; SAM 6210, 6220.) Budget Position Transparency and Expenditure by Category Redistribution On a biennial basis beginning with the 2016-17 Budget, the salaries and wages associated with historically vacant positions have been reallocated to expenditure categories where resources are actually being expended in the current and budget years. Reductions in Regular Ongoing Positions as a result of this process are for display purposes only and do not impact departments’ ability to hire up to their legislatively authorized staffing level. Budget Position Transparency represents a department’s historically vacant positions and associated salaries and wages expenditures that are being reallocated. Appendix 76 GOVERNOR'S BUDGET SUMMARY 2020-21 Expenditure by Category Redistribution represents the reallocation of the salaries and wages dollars to staff benefits and/or operating expenses and equipment. Budget Request A term used in the FI$Cal (Hyperion) System reflecting any change to the currently enacted budget or proposed budget. This may be a Budget Change Proposal, revenue estimate change, or legislative action. A budget request is a way for each department to submit incremental requests for, or to make adjustments to, funding. Budget Revision (BR) A document prepared by the department that cites a legal authority to authorize a change in an appropriation. A BR must be approved by the Department of Finance. Typically, BRs either increase the appropriation or make adjustments to the categories or programs within the appropriation as scheduled. (SAM 6533, 6542, 6545.) Budget Year (BY) The next state fiscal year, beginning July 1 and ending June 30, for which the Governor's Budget is submitted (i.e., the year following the current fiscal year). (See also “Fiscal Year.”) Business Unit The four-digit code assigned to each state governmental entity (or a program) for fiscal system purposes. The business unit is the first segment of the budget item/appropriation number. (UCM.) CALSTARS The acronym for the California State Accounting and Reporting System, the state’s former accounting system. Departments using CALSTARS transitioned to FI$Cal. Capital Outlay (CO) A character representing expenditures of funds to acquire land, plan and construct new buildings, expand or modify existing buildings, and/or purchase equipment related to such construction. (CS 3.00.) Carryover The unencumbered balance of an appropriation that continues to be available for expenditure in years subsequent to the year of enactment. For example, if an appropriation has multiple years available to encumber, any unencumbered balance at the end of the first year is carried over to the following fiscal year. Cash Basis of Accounting The basis of accounting in which revenues and expenditures are recognized when cash is received or disbursed. Cash Flow Statement A statement of cash receipts and disbursements for a specified period of time. GOVERNOR'S BUDGET SUMMARY 2020-21 Appendix 77 Category (as used in FI$Cal/Hyperion) A grouping of related types of expenditures, such as personal services, operating expenses and equipment, special items of expense, unclassified, local costs, capital costs, and internal cost recovery; or, revenues (including revenue transfers). The Governor’s Budget includes an “Expenditures by Category” section for each department at this level. (UCM.) Changes in Authorized Positions A schedule in the Governor’s Budget that reflects staffing changes made subsequent to the adoption of the current year budget and enacted legislation. This schedule documents changes in positions for various reasons. Some examples are: actual expenditures in the past year, as well as transfers, positions established, selected re-classifications, and proposed new positions included in BCPs, for the current or budget year. Chapter The reference assigned by the Secretary of State to an enacted bill, numbered sequentially in order of enactment each calendar year. The enacted bill is then referred to by this "chapter" number and the year in which it became law. For example, Chapter 1, Statutes of 2017, would refer to the first bill enacted in 2017. Character of Expenditures A classification identifying the major purpose of an expenditure, such as state operations, local assistance, capital outlay, or unclassified. (UCM.) Chart of Account (COA) Crosswalk A detailed guide found on the Department of Finance’s website that crosswalks the Account Category Code used by FI$Cal departments to the codes in the Uniform Codes Manual for general ledger, receipts and object of expenditures. (See also “Account” and “Uniform Codes Manual.”) Claim Schedule A manual request from a state department to the State Controller's Office to disburse payment from a legal appropriation or account for a lawful state obligation. The claim schedule identifies the appropriation or account to be charged, the payee(s), the amount(s) to be paid, and an affidavit attesting to the validity of the request. Claims against the state for which there is no provision for payment (e.g., no appropriation available for payment), will be submitted to the Department of General Services. (See also “Voucher.”) (SAM 7340) COBCP Capital outlay budgets are zero-based each year; therefore, the department must submit a written capital outlay budget change proposal for each new project, or subsequent phase of an existing project, for which the department requests funding. (SAM 6818.) Appendix 78 GOVERNOR'S BUDGET SUMMARY 2020-21 Conference Committee A committee of three members (two from the majority party, and one from the minority party) from each house, appointed to meet and resolve differences between versions of a bill (e.g., when one house of the Legislature does not concur with bill amendments made by the other house). If resolution cannot be reached, another conference committee can be selected, but no more than three different conference committees can be appointed on any one bill. Budget staff commonly refer to the conference committee on the annual budget bill as the "Conference Committee.” (SAM 6340.) Continuing Appropriation An appropriation for a set amount that is available for more than one year. (SAM 8382.) Continuous Appropriation Constitutional or statutory expenditure authorization that is renewed each year without further legislative action. The amount available may be a specific, recurring sum each year; all or a specified portion of the proceeds of specified revenues that have been dedicated permanently to a certain purpose; or, whatever amount is designated for the purpose as determined by formula, e.g., school apportionments. Note: Government Code section 13340 sunsets statutory continuous appropriations on June 30 with exceptions specified in the section and other statutes. Control Section 30.00 of the annual Budget Act traditionally extends the continuous appropriations for one additional fiscal year. (GC 13340.) Control Sections Sections of the Budget Act (i.e., 1.00 to the end) providing specific controls on the appropriations itemized in Section 2.00 of the Budget Act. (See more detail under “Sections.”) Cost-of-Living Adjustments (COLA) Increases provided in state-funded programs that include periodic adjustments predetermined in state law (statutory, such as K-12 education apportionments), or established at optional levels (discretionary) by the Administration and the Legislature each year through the budget process. Current Year (CY) A term used in budgeting and accounting to designate the operations of the present fiscal year in contrast to past or future periods. (See also “Fiscal Year.”) Debt Service The amount of money required to pay interest on outstanding bonds and the principal of maturing bonds. Department A governmental organization, usually belonging to the third-level of the state organizational hierarchy, as defined in the Uniform Codes Manual. (UCM.) GOVERNOR'S BUDGET SUMMARY 2020-21 Appendix 79 Department of Finance The Department is a fiscal control agency. The Director of Finance is appointed by the Governor and serves as the chief fiscal policy advisor. The Director sits as a member of the Governor's cabinet and senior staff. Principal functions are as follows: • Establish appropriate fiscal and accounting policies to carry out the state's programs. • Prepare, explain, and administer the state's annual financial plan (budget), which the Governor is required under the State Constitution to present to the Legislature by January 10 of each year. • Analyze legislation that has a fiscal impact. • Maintain the California State Accounting and Reporting System (CALSTARS). • Provide fiscal and accounting training, advice, and consulting services to state departments. • Monitor/audit expenditures by state departments to ensure compliance with law, approved standards, and policies. • Develop economic forecasts and revenue estimates. • Develop population and enrollment estimates and projections. • Review expenditures for information technology activities of departments. (GC 13000 et seq.) Detailed Budget Adjustments Department Detailed Budget Adjustments are included in departmental budget displays to provide the reader a snapshot of proposed expenditure and position adjustments, why those changes are being proposed, and their dollar and position impact. Detail of Appropriations and Adjustments A budget display for each organization that reflects appropriations and adjustments by fund source for each character of expenditure (i.e., state operations, local assistance, and capital outlay). (SAM 6478.) Employee Compensation/Retirement Salary, benefit, employer retirement rate contribution adjustments, and any other related statewide compensation adjustments for state employees. Various 9800 Items of the Budget Act appropriate funds for compensation increases for most state employees (excluding Higher Education and some others); that is, they appropriate the incremental adjustment proposed for the salary and benefit adjustments for the budget year. The base salary and benefit levels are included in individual agency/departmental budgets. Enacted Budget A publication produced by Finance to reflect budget details as enacted. It is similar in detail as in the Governor’s Budget. A PDF of this publication is available on Finance’s eBudget website. Appendix 80 GOVERNOR'S BUDGET SUMMARY 2020-21 Enactment Year (ENY) See Year of Appropriation (YOA). Encumbrance The commitment of all or part of an appropriation. Encumbrances represent valid obligations related to unfilled purchase orders or unfulfilled contracts. Outstanding encumbrances are recognized as budgetary expenditures in the individual department’s budget documents and their individual annual financial reports. For the General Fund budgetary purposes, the Department of Finance makes a statewide adjustment to remove the total outstanding encumbrances from overall General Fund expenditures and show the amount as a reserve in the fund balance, in accordance with Government Code section 13307. For other funds, such encumbrance adjustments are not made in the budget totals, and encumbrances are treated as budgetary expenditures that decrease the fund balance of these funds. Enrolled Bill Report (EBR) An analysis prepared by Finance on legislative measures passed by both houses and referred to the Governor, to provide the Governor’s Office with information concerning the measure, with a recommendation for action by the Governor. While approved bill analyses become public information, EBRs do not. Note that EBRs are not prepared for Constitutional Amendments, or for Concurrent, Joint, or single house resolutions, because these are not acted upon by the Governor. (SAM 6965.) Enrollment, Caseload, and Population Adjustments These adjustments are generally formula or population driven and are components of the workload budget. (See Workload Budget.) Executive Branch One of the three branches of state government, responsible for implementing and administering the state's laws and programs. The Governor's Office and those individuals, departments, and offices reporting to it (the Administration), are part of the Executive Branch. Executive Order (EO) A budget document issued by the Department of Finance ordering the State Controller’s Office to make an adjustment in their accounts. The adjustments are typically authorized by Budget Act provisional language, Budget Act control sections, and other statutes. An EO is used when the adjustment makes increases or decreases on a statewide basis, involves two or more appropriations, or makes certain transfers or loans between funds. Exempt Employees State employees exempt from civil service pursuant to subdivision (e), (f), or (g), of Section 4 of Article VII of the California Constitution. Examples include department directors and other gubernatorial appointees. (SAM 0400.) GOVERNOR'S BUDGET SUMMARY 2020-21 Appendix 81 Expenditure Expenditures reported on a department’s year-end financial reports and “past year” budget documents consist of amounts paid and accruals (including outstanding encumbrances and payables) for obligations created for the last fiscal year. “Current year” and “budget year” expenditures in budget documents are estimates for the respective fiscal year. (See “Encumbrance,” also referred to as “budgetary expenditures.”) Expenditure Authority The authorization to make an expenditure (usually by a budget act appropriation, provisional language, or other legislation). Expenditures by Category A budget display for each department that reflects actual past year, estimated current year, and proposed budget year expenditures presented by character of expenditure (e.g., state operations and/or local assistance) and category of expenditure (e.g., personal services, operating expenses and equipment). 3-year Expenditures and Positions A display at the start of each departmental budget that presents the various departmental programs by title, dollar totals, positions, and source of funds for the past, current, and budget years. Federal Fiscal Year The 12-month accounting period of the federal government, beginning on October 1 and ending the following September 30. For example, a reference to federal fiscal year 2019 means the period beginning October 1, 2018 and ending September 30, 2019. Federal Funds For legal basis budgeting purposes, classification of funds into which money received in trust from an agency of the federal government will be deposited and expended by a state department in accordance with state and/or federal rules and regulations. State departments must deposit federal grant funds in the Federal Trust Fund or other appropriate federal fund in the State Treasury. (GC 13326 (Finance approval), 13338 approp. of FF, CS 8.50.) Feeder Funds For legal basis accounting purposes, funds into which certain taxes or fees are deposited upon collection. In some cases, administrative costs, collection expenses, and refunds are paid. The balance of these funds is transferable at any time by the State Controller’s Office to the receiving fund, in most cases, the General Fund. Final Budget Generally refers to the Governor’s Budget as amended by actions taken on the Budget Bill (e.g., legislative changes, Governor’s vetoes). Note: subsequent legislation (law enacted after the Budget Bill is chaptered) may add, delete, or change appropriations, or require other actions that affect a budget appropriation. Appendix 82 GOVERNOR'S BUDGET SUMMARY 2020-21 Final Budget Summary A document produced by the Department of Finance after enactment of the Budget Act, which reflects the Budget Act, any vetoes to language and/or appropriations, technical corrections to the Budget Act, and summary budget information. (See also “Budget Act” and “Final Change Book.”) (SAM 6130, 6350.) Final Change Book A document produced by the Department of Finance after enactment of the Budget Act. It includes detailed fiscal information on the changes made to the budget bill that accompanies the Governor’s Budget as submitted to the legislature on or before January 10 of each year. It contains a detailed list of changes in Budget Act items, non-Budget Act items, and control sections for state operations, local assistance, capital outlay, and unclassified items. The Final Change Book also includes fiscal summaries. (SAM 6355) Finance Letter (FL) Proposals made by the Director of Finance to the chairpersons of the budget committees in each house to amend the Budget Bill and the Governor's Budget from that submitted on January 10 to reflect a revised plan of expenditure for the budget year and/or current year. Specifically, the Department of Finance is required to provide the Legislature with updated expenditure and revenue information for all policy adjustments by April 1, capital outlay technical changes by May 1, and changes for enrollment, caseload, population, updated revenues, and Proposition 98 by May 14. (GC 13308.) FI$Cal The acronym for the Financial Information System for California, the state's integrated financial and administrative IT system that supports accounting, budgeting, cash management, and procurement functions. Departments using CALSTARS transitioned to FI$Cal. (GC 11850.) Fiscal Committees Committees of members in each house of the Legislature that review the fiscal impact of proposed legislation, including the Budget Bill. Currently, the fiscal committees include the Senate Budget and Fiscal Review Committee, the Senate Appropriations Committee, the Assembly Appropriations Committee, and the Assembly Budget Committee. The Senate Budget and Fiscal Review Committee and the Assembly Budget Committee are broken into subcommittees responsible for specific state departments and/or subject areas. Both houses also have Revenue and Taxation Committees that are often considered fiscal committees. Fiscal Impact Analysis Typically refers to a section of an analysis (e.g., bill analysis) that identifies the costs and revenue impact of a proposal, and to the extent possible, a specific numeric estimate for applicable fiscal years. Fiscal Year (FY) A 12-month period during which revenue is earned and received, obligations are incurred, encumbrances are made, appropriations are expended, and for which GOVERNOR'S BUDGET SUMMARY 2020-21 Appendix 83 other fiscal transactions are recognized. In California state government, the fiscal year begins July 1 and ends the following June 30. If reference is made to the state’s FY 2018-19, this is the time period beginning July 1, 2018 and ending June 30, 2019. (GC 13290.) Floor The Assembly or Senate chambers, the term used to describe the location of a bill, or the type of session. Matters may be referred to as “on the floor.” Form 9 A request by a department for space planning services (e.g., new or additional space, lease extensions, or renewals desired by an agency in non-institutional buildings, whether state-owned or state-leased, relocatable buildings, and trailers) and also reviewed by the Department of Finance. (SAM 6453.) Form 22 A department’s request to transfer money to the Architectural Revolving Fund (e.g., for building improvements), reviewed by the Department of Finance. (GC 14957; SAM 1321.1.) Fund A legal budgeting and accounting entity that provides for the segregation of moneys or other resources in the State Treasury for obligations in accordance with specific restrictions or limitations. A separate set of accounts must be maintained for each fund to show its assets, liabilities, reserves, and balance, as well as its revenue and expenditures. Fund Balance For accounting purposes, the excess of a fund’s assets over its liabilities. For budgeting purposes, the excess of a fund’s resources over its expenditures. Fund Condition Statement A budget display, included in the Governor’s Budget, summarizing the operations of a fund for the past, current, and budget years. The display includes the beginning balance, prior year adjustments, revenue, transfers, loans, expenditures, the ending balance, and any reserves. Fund Condition Statements are required for all special funds. The Fund Condition Statement for the General Fund is Summary Schedule 1. Other funds are displayed at the discretion of the Department of Finance. General Fund (GF) For legal basis accounting and budgeting purposes, the predominant fund for financing state government programs, used to account for revenues that are not specifically designated to be accounted for by any other fund. The primary sources of revenue for the General Fund are personal income tax, sales and use tax, and corporation taxes. The major uses of the General Fund are education (K-12 and higher education), health and human services programs, and correctional programs. Appendix 84 GOVERNOR'S BUDGET SUMMARY 2020-21 Generally Accepted Accounting Principles (GAAP) The accounting principles, rules, conventions, and procedures that are used for accounting and financial reporting. GAAP for governments are set by the Governmental Accounting Standards Board (GASB), the accounting and financial reporting standards setting body for state and local governments. Governmental Cost Funds For legal basis accounting and budgeting purposes, funds that derive revenue from taxes, licenses, and/or fees. Governor's Budget The publication the Governor presents to the Legislature by January 10 each year. It contains recommendations and estimates for the state’s financial operations for the budget year. It also displays the actual revenues and expenditures of the state for the prior fiscal year, and updates estimates for the current year revenues and expenditures. This publication is also produced in a web format known as the Governor’s Proposed Budget Detail on the Department of Finance’s website. (Article IV, § 12; SAM 6120, et seq.) Governor's Budget Summary A companion publication to the Governor’s Budget that outlines the Governor’s policies, goals, and objectives for the budget year. It provides a perspective on significant fiscal and/or structural proposals. This publication is also produced in a web format known as the Governor’s Proposed Budget Summary on the Department of Finance’s website. Grants Typically used to describe amounts of money received by an organization for a specific purpose but with no obligation to repay (in contrast to a loan, although the award may stipulate repayment of funds under certain circumstances). For example, the state receives some federal grants for the implementation of health and community development programs, and the state also awards various grants to local governments, private organizations, and individuals according to criteria applicable to a given program. Indirect Costs A cost that cannot be easily identified to a specific cost objective (e.g., program, organizational unit, project), but it is used for a common or joint purpose. Indirect costs benefit more than one cost objective and, therefore, must be allocated. Initiative The power of the electors to propose statutes or Constitutional amendments and to adopt or reject them. An initiative must be limited to a single subject and be filed with the Secretary of State with the appropriate number of voter signatures in order to be placed on the ballot. (Article II, § 8.) Item A coding scheme or structure for an appropriation reflecting the respective Business Unit, reference number, and fund (if applicable). (See “Appropriation.”) GOVERNOR'S BUDGET SUMMARY 2020-21 Appendix 85 Judgments Usually refers to decisions made by courts against the state. Payment of judgments is subject to a variety of controls and procedures. Language Sheets Copies of the current Budget Act appropriation items provided to the Department of Finance and departmental staff each fall to update for the proposed Governor’s Budget. These updated language sheets become the proposed Budget Bill. In the spring, language sheets for the Budget Bill are updated to reflect revisions to the proposed appropriation amounts, Item schedule(s) and provisions, and become the Budget Act. Legislative Analyst’s Office (LAO) A non-partisan organization that provides advice to the Legislature on fiscal and policy matters. For example, the LAO annually publishes a detailed analysis of the Governor's Budget, which becomes the initial basis for legislative hearings on the Budget Bill. (SAM 7360.) Legislative Counsel Bureau A staff of attorneys who draft legislation (bills) and proposed amendments, and review, analyze, and render opinions on legal matters for the legislative members. Legislative Counsel’s Digest A summary of what a legislative measure does, contrasting existing law and the proposed change. This summary appears on the first page of a bill. Legislature, California A two-house body of elected representatives vested with the responsibility and power to make laws affecting the state (except as limited by the veto power of the Governor). (See also “Assembly” and “Senate.”) Line Item See “Object of Expenditure.” Local Assistance (LA) The character of expenditures made for the support of local government or other locally administered activities. Major Regulation Any proposed rulemaking action adopting, amending, or repealing a regulation subject to review by the Office of Administrative Law (OAL) that will have an economic impact on California business enterprises and individuals in an amount exceeding 50 million dollars in any 12-month period between the date the major regulation is estimated to be filed with the Secretary of State through 12 months after the major regulation is estimated to be fully implemented (as estimated by the agency), computed without regard to any offsetting benefits or costs that might result directly or indirectly from that adoption, amendment, or repeal. An agency proposing a major regulation must submit a Standardized Regulatory Impact Assessment to the Department of Finance for review, and the agency must include Appendix 86 GOVERNOR'S BUDGET SUMMARY 2020-21 Finance’s comments and the agency’s response when transmitting the proposed major regulation to OAL. (GC sections 11346-11348 of Article 5, Chapter 3.5, Part 1, Division 3, Title 2; SAM 6600-6616; California Code of Regulation, title 1, sections 2000-2004.) Mandates See “State-Mandated Local Program.” (UCM.) May Revision An annual update to the Governor’s Budget containing a revised estimate of General Fund revenues for the current and ensuing fiscal years, any proposals to adjust expenditures to reflect updated revenue estimates, and all proposed adjustments to Proposition 98, presented by the Department of Finance to the Legislature by May 14 of each year. (See also “Finance Letter.”) (SAM 6130; GC 13308.) Merit Salary Adjustment (MSA) A cost factor resulting from the periodic increase in salaries paid to personnel occupying authorized positions. Personnel generally receive a salary increase of five percent per year up to the upper salary limit of the classification, contingent upon the employing agency certifying that the employee’s job performance meets the level of quality and quantity expected by the agency, considering the employee’s experience in the position. Merit salary adjustments for employees of the University of California and the California State University are determined in accordance with rules established by the regents and the trustees, respectively. Funding typically is not provided for MSAs in the budget; given normal attrition rates, additional costs usually must be absorbed within existing resources. (GC 19832.) Minor Capital Outlay Construction projects, or equipment acquired to complete a construction project, estimated to cost less than $656,000 plus any escalation per Public Contract Code section 10108. (SAM 6807.) Modified Accrual Basis The basis of accounting in which revenues are recognized if the underlying transaction has occurred as of the last day of the fiscal year and the amount is measurable and available to finance expenditures of the current period (i.e., the actual collection will occur either during the current period, or after the end of the current period, to be used to pay current year-end liabilities). Expenditures are recognized when the obligations are created, except for amounts payable from future fiscal year appropriations. This basis is generally used for the General Fund and special funds. GOVERNOR'S BUDGET SUMMARY 2020-21 Appendix 87 Non-Add Refers to a numerical value that is displayed in parentheses for informational purposes, but is not included in computing totals, usually because the amounts are already accounted for in the budget system or display. Non-Governmental Cost Funds For legal basis purposes, used to budget and account for revenues other than general and special taxes, licenses, and fees, or certain other state revenues. Generally, expenditures of these funds do not represent a cost of government. Object of Expenditure (Objects) A classification of expenditures based on the type of goods or services received. For example, the budget category of Personal Services includes the objects of Salaries and Wages and Staff Benefits. The Governor’s Budget includes an “Expenditures by Category” section for each department at this level. These objects may be further subdivided into line items/object details such as State Employees' Retirement and Workers' Compensation. (See also “Account.”) (UCM.) Obligations Amounts that a governmental unit may legally be required to pay out of its resources. Budgetary authority must be available before obligations can be created. For budgetary purposes, obligations include payables for goods or services received, but not yet paid for, and outstanding encumbrances (i.e., commitments for goods and services not yet received nor paid for). One-Time Cost A proposed or actual expenditure that is non-recurring (usually only in one annual budget) and not permanently included in baseline expenditures. Departments make baseline adjustments to remove prior year one-time costs and appropriately reduce their expenditure authority in subsequent years’ budgets. Operating Expenses and Equipment (OE&E) A category of a support appropriation that includes objects of expenditure/accounts such as general expenses, printing, communication, travel, data processing, equipment, and accessories for the equipment. (SAM 6451.) Out-of-State Travel (OST) blanket A request by a state agency for Governor’s Office approval of the proposed out-ofstate trips to be taken by that agency’s personnel during the fiscal year. (SAM 0760-0765.) Overhead Those elements of cost necessary in the production of an article or the performance of a service that are of such a nature that the amount applicable to the product or service cannot be determined directly. Usually they relate to those costs that do not become an integral part of the finished product or service, such as rent, heat, light, supplies, management, or supervision. (See also “Indirect Costs.”) Appendix 88 GOVERNOR'S BUDGET SUMMARY 2020-21 Overhead Unit An organizational unit that benefits the production of an article or a service but that cannot be directly associated with an article or service to distribute all of its expenditures to elements and/or work authorizations. The cost of overhead units are distributed to operating units or programs within the department. (See “Administration Program Costs.”) Past Year The most recently completed fiscal year. (See also “Fiscal Year.”) Performance Budget A budget wherein proposed expenditures are organized and tracked primarily by measurable performance objectives for activities or work programs. A performance budget may also incorporate other bases of expenditure classification, such as character and object, but these are given a subordinate status to activity performance. Personal Services A category of expenditure that includes such objects of expenditures as the payment of salaries and wages of state employees and employee benefits, including the state's contribution to the Public Employees' Retirement Fund, insurance premiums for workers' compensation, and the state's share of employees' health insurance. (See also “Object of Expenditure.”) (SAM 6403.) Plan of Financial Adjustment (PFA) A plan proposed by a department, approved by the Department of Finance, and accepted by the State Controller's Office (SCO), to permit the SCO to allocate costs paid from one item to one or more items within a department's appropriations. A PFA might be used, for example, to allow the department to pay all administrative costs out of its main item and then transfer the appropriate costs to the correct items for their share of the costs paid. The SCO transfers the funds upon receipt of a letter (transaction request) from the department stating the amount to be transferred based on the criteria for cost distribution in the approved PFA. (SAM 8452 et seq.) Pooled Money Investment Account (PMIA) A State Treasurer's Office accountability account maintained by the State Controller's Office to account for short-term investments purchased by the State Treasurer's Office as designated by the Pooled Money Investment Board on behalf of various funds. Pooled Money Investment Board (PMIB) A board comprised of the Director of Finance, the State Treasurer, and the State Controller, the purpose of which is to design an effective cash management and investment program, using all monies flowing through the Treasurer’s bank accounts and keeping all available monies invested, consistent with the goals of safety, liquidity, and yield. (SAM 7350.) Positions See “Authorized Positions.” GOVERNOR'S BUDGET SUMMARY 2020-21 Appendix 89 Price Increase A budget adjustment to reflect the inflation factors for specified operating expenses consistent with the budget instructions from the Department of Finance. Prior Year Adjustment In a Fund Condition Statement in the Governor’s Budget, an adjustment for the difference between previously estimated accruals used in the development of the last Governor’s Budget and actual expenditures or revenues. The adjustment amount is generally included to realign the beginning fund balance to ensure accurate fund balances. Pro Rata The amount of state administrative costs, paid from the General Fund and the Central Service Cost Recovery Fund (e.g., amounts expended by central service departments such as the State Treasurer's Office, State Personnel Board, State Controller's Office, and Department of Finance for the general administration of state government), that are chargeable to and recovered from special funds (other than the General Fund, Central Service Cost Recovery Fund, and federal funds) as determined by the Department of Finance. (GC 11010, 11270-11275, 13332.03; SAM 8753, 8754.) Program Budget See “Budget—Program or Traditional.” Program Cost Accounting A level of accounting that identifies costs by activities performed in achievement of a purpose in contrast to the traditional line-item format. The purpose of accounting at this level is to produce cost data sufficiently accurate for allocating and managing program resources. (SAM 7261.) Programs Activities of a business unit grouped on the basis of common objectives. Programs can be further divided into subprograms. Project Approval Lifecycle The process to assess the full implications of a proposed information technology project that contains analyses of options, cost estimates, and other information. (SAM 4920-4928.) Proposed New Positions A request for an authorization to expend funds to employ additional people to perform work. Proposed new positions may be for an authorization sufficient to employ one person, or for a sum of funds (blanket) from which several people may be employed. (See also “Changes in Authorized Positions.”) Appendix 90 GOVERNOR'S BUDGET SUMMARY 2020-21 Proposition 98 An initiative passed in November 1988, and amended in the June 1990 election, that provides a minimum funding guarantee for school districts, community college districts, and other state agencies that provide direct elementary and secondary instructional programs for kindergarten through grade 14 (K-14), beginning with fiscal year 1988-89. The term is also used to refer to any expenditures that fulfill the guarantee. (Article XVI, § 8.) Provision Language in a bill or act that imposes requirements or constraints upon actions or expenditures of the state. Provisions are often used to constrain the expenditure of appropriations but may also be used to provide additional or exceptional authority. (Exceptional authority usually begins with the phrase "Notwithstanding...".) Public Service Enterprise Funds For legal basis accounting purposes, the fund classification that identifies funds used to account for the transactions of self-supporting enterprises that render goods or services for a direct charge to the user (primarily the general public). Self-supporting enterprises that render goods or services for a direct charge to other state departments or governmental entities, account for their transactions in a Working Capital and Revolving Fund. (UCM, Fund Codes—Structure (Source Classification).) Reappropriation The extension of an appropriation’s availability for encumbrance and/or expenditure beyond its set termination date and/or for a new purpose. Reappropriations are typically authorized by statute for one year at a time, but may be for some greater or lesser period. Recall The power of the electors to remove an elected officer. (Article II, § 13.) Redemption The act of redeeming a bond or other security by the issuing agency. Reference Code A three-digit code identifying whether the item is from the Budget Act or some other source (e.g., legislation), and its character (e.g., state operations). This is the middle segment of the budget item/appropriation number. (UCM, Fund Source/Appropriation Coding.) Referendum The power of the electors to approve or reject statutes or parts of statutes, with specified exceptions and meeting specified deadlines and number of voters' signatures. (Article II, § 9.) Refund to Reverted Appropriations A receipt account to record the return of monies (e.g., abatements and reimbursements) to appropriations that have reverted. (SAM 7680) GOVERNOR'S BUDGET SUMMARY 2020-21 Appendix 91 Reimbursement Warrant (or Revenue Anticipation Warrant) A warrant that has been sold by the State Controller’s Office as a result of a cash shortage in the General Fund, the proceeds of which will be used to reimburse the General Cash Revolving Fund. The Reimbursement Warrant may or may not be registered by the State Treasurer’s Office. The registering does not affect the terms of repayment or other aspects of the Reimbursement Warrant. (GC 17240-17255) Reimbursements An amount received as a payment for the cost of services performed/to be performed, or of other expenditures made for, or on behalf of, another entity (e.g., one department reimbursing another for administrative work performed on its behalf). Reimbursements represent the recovery of an expenditure. Reimbursements are available for expenditure up to the budgeted amount (scheduled in an appropriation), and a budget revision must be prepared and approved by the Department of Finance before any reimbursements in excess of the budgeted amount can be expended. (SAM 6463.) Reserve An amount of a fund balance set aside to provide for expenditures from the unencumbered balance for continuing appropriations, economic uncertainties, future apportionments, pending salary or price increase appropriations, and appropriations for capital outlay projects. Revenue Any addition to cash or other current assets (e.g., accounts receivables) that does not increase any liability or reserve and does not represent the reduction or recovery of an expenditure (e.g., reimbursements/abatements). Revenues are a type of receipt generally derived from taxes, licenses, fees, or investment earnings. Revenues are deposited into a fund for future appropriation, and are not available for expenditure until appropriated. (UCM, Receipt Codes.) Revenue Anticipation Notes (RANs) A cash management tool generally used to eliminate cash flow imbalances in the General Fund within a given fiscal year. RANs are not a budget deficit-financing tool. Revenue Anticipation Warrant (RAW) See “Reimbursement Warrant.” Reversion The return of the unused portion of an appropriation to the fund from which the appropriation was made, normally two years (four years for federal funds) after the last day of an appropriation’s availability period. The Budget Act often provides for the reversion of unused portions of appropriations when such reversion is to be made prior to the statutory limit. The reversion may also occur upon order of Finance. (GC 16304, 16304.1) Reverted Appropriation An appropriation that is reverted to its fund source after the date its liquidation period has expired. Appendix 92 GOVERNOR'S BUDGET SUMMARY 2020-21 Revolving Fund Generally refers to a cash account known as an office revolving fund (ORF). It is not a fund but an advance from a primary support item. Departments may use the cash advance to disburse ORF checks for immediate needs, as specified in SAM. The cash account is subsequently replenished by a State Controller’s Office transfer from a department appropriation. The size of departmental revolving funds is subject to Department of Finance approval within statutory limits. (SAM 8100, et seq.) SAL See “Appropriations Limit, State.” Salaries and Wages Supplement An annual publication, issued shortly after the Governor's Budget, containing a summary of all positions by department, unit, and classification for the past, current, and budget years, as of July 1 of the current year. This publication is also displayed on the Department of Finance’s website. (See “Schedule 7A.”) Schedule The detail of an appropriation in the Budget Bill or Act, showing its distribution to each of the programs, or projects thereof. or: A supplemental schedule submitted by departments to detail certain expenditures. or: A summary listing in the Governor's Budget. Schedule 7A A summary version of the State Controller’s Office detailed Schedule 8 position listing for each department. The information reflected in this schedule is the basis for the “Salaries and Wages Supplement” displayed on the Department of Finance’s website. (See “Salaries and Wages Supplement”) (SAM 6415-6418.) Schedule 8 A detailed listing generated from the State Controller's Office payroll records for a department’s past, current, and budget year positions as of June 30 and updated for July 1. This listing must be reconciled with each department's personnel records and becomes the basis for centralized payroll and position control. The reconciled data should coincide with the level of authorized positions for the department per the final Budget. (SAM 6424-6429, 6448.) Schedule of Federal Funds and Reimbursements, Supplementary A supplemental schedule (DF-301) submitted by departments during budget preparation that displays federal expenditures by source. (SAM 6460.) GOVERNOR'S BUDGET SUMMARY 2020-21 Appendix 93 Schedule of Operating Expenses and Equipment, Supplementary A supplemental schedule (DF-300) submitted by departments during budget preparation that details by object the expenses included in the Operating Expenses and Equipment category. (SAM 6454, 6457.) Section 1.50 Section of the Budget Act that (1) specifies a certain format and style for the codes used in the Budget Act, (2) authorizes the Department of Finance to revise codes used in the Budget Act to provide compatibility with the Governor’s Budget and records of the State Controller’s Office, and (3) authorizes the Department of Finance to revise the schedule of an appropriation in the Budget Act or in other spending authority outside of the Budget Act for technical changes that are consistent with legislative intent. Examples of such technical changes to the schedule of an appropriation include the distribution of any unallocated amounts within an appropriation, adjustments of schedules to facilitate departmental accounting operations, and the augmentation of reimbursement amounts when the Legislature has approved the budget for the department providing the reimbursement. The Section also authorizes Finance to make certain technical corrections related to the implementation of and conversion into FI$Cal. Section 1.80 Section of the Budget Act that includes periods of availability for Budget Act appropriations. Section 8.50 A Control Section of the Budget Act that provides the authority to increase federal fund spending authority. Section 26.00 A Control Section of the Budget Act that provides the authority for the transfer of funds from one program or function within a schedule to another program or function within the same schedule, subject to specified limitations and reporting requirements to the Legislature. (SAM 6548.) Section 28.00 A Control Section of the Budget Act that authorizes the Director of Finance to approve the augmentation or reduction of items of expenditure for the receipt of unanticipated federal funds or other non-state funds, and that specifies the related reporting requirements to the Legislature. Appropriation authority for unanticipated federal funds is contained in Section 8.50. (SAM 6551-6557.) Section 28.50 A Control Section of the Budget Act that authorizes the Department of Finance to augment or reduce the reimbursement line of an appropriation schedule for reimbursements received from other state agencies. It also contains specific reporting requirements to the Legislature. (SAM 6551-6557.) Appendix 94 GOVERNOR'S BUDGET SUMMARY 2020-21 Section 30.00 A Control Section of the Budget Act that amends Government Code section 13340 to sunset continuous appropriations. Section 31.00 A Control Section of the Budget Act that grants departments the authority to administratively establish or reclassify positions. This section states that administratively establishing positions outside of the budget process requires both Finance’s approval and legislative notification. Administratively established positions are to be temporary and expire June 30 of the current year, unless extended by Finance and the Legislature during the following budget cycle. Additionally, Section 31.00 requires Finance to review all reclassification requests involving a position meeting a specified threshold. Senate The upper house of California’s Legislature consisting of 40 members. As a result of Proposition 140 (1990, term limits) and Proposition 28 (2012, limits on Legislators’ terms in office), members elected in or after 2012 may serve 12 years in the Legislature in any combination of four-year state Senate or two-year state Assembly terms. (Article IV, § 2 (a).) Service Revolving Fund A fund used to account for and finance many of the client services rendered by the Department of General Services. Amounts expended by the fund are reimbursed by sales and services priced at rates sufficient to keep the fund solvent. (SAM 8471.) Settlements Refers to any proposed or final settlement of a legal claim (usually a suit) against the state. Approval of settlements and payments for settlements are subject to numerous controls. (See also “Judgments.”) (GC 965.) Shared Revenue A state-imposed tax, such as the gasoline tax, which is shared with local governments in proportion, or substantially in proportion, to the amount of tax collected or produced in each local unit. The tax may be collected either by the state and shared with the localities, or collected locally and shared with the state. Sinking Fund A fund or account in which money is deposited at regular intervals to provide for the retirement of bonded debt. Special Fund for Economic Uncertainties A fund in the General Fund (a similar reserve is included in each special fund), authorized by statute and Budget Act Control Section 12.30, to provide for emergency situations. (GC 16418, 16418.5.) GOVERNOR'S BUDGET SUMMARY 2020-21 Appendix 95 Special Funds For legal basis budgeting purposes, funds created by statute, or administratively per Government Code section 13306, used to budget and account for taxes, licenses, and fees that are restricted by law for particular activities of the government. Special Items of Expense An expenditure/account category that covers non-recurring large expenditures or special purpose expenditures that generally require a separate appropriation (or otherwise require separation for clarity). (SAM 6469; UCM.) Sponsor An individual, group, or organization that initiates or brings to a legislator's attention a proposed law change. Spot Bill An introduced bill that makes non-substantive changes in a law, usually with the intent to amend the bill at a later date to include substantive law changes. This procedure provides flexibility to meet the deadline for the introduction of bills. Staff Benefits An object of expenditure representing the state costs of contributions for employees' retirement, OASDI, health benefits, and non-industrial disability leave benefits. (SAM 6412; UCM.) State-Mandated Local Program State reimbursements to local governments for the cost of activities required by legislative and executive acts. This reimbursement requirement was established by Chapter 1406, Statutes of 1972 (SB 90) and further ratified by the adoption of Proposition 4 (a constitutional amendment) at the 1979 general election. (Article XIII B, § 6; SAM 6601.) State Operations (SO) A character of expenditure representing expenditures for the support of state government, exclusive of capital investments and expenditures for local assistance activities. Statewide Cost Allocation Plan (SWCAP) The amount of state administrative costs (e.g., amounts expended by central service departments such as the State Treasurer’s Office, the State Personnel Board, the State Controller’s Office, and the Department of Finance for the general administration of state government) chargeable to and recovered from federal funds, as determined by the Department of Finance. These statewide administrative costs are for administering federal programs, which the federal government allows reimbursement. (GC 13332.01-13332.02; SAM 8753, 8755-8756 et seq.) Appendix 96 GOVERNOR'S BUDGET SUMMARY 2020-21 Statute A written law enacted by the Legislature and signed by the Governor (or a vetoed bill overridden by a two-thirds vote of both houses), usually referred to by its chapter number and the year in which it is enacted. Statutes that modify a state code are "codified" into the respective Code (e.g., Government Code, Health and Safety Code). (See also “Bill” and “Chapter.”) (Article IV, § 9.) Subcommittee The smaller groupings into which Senate or Assembly committees are often divided. For example, the fiscal committees that hear the Budget Bill are divided into subcommittees generally by departments/subject area (e.g., Education, Resources, General Government). Subventions Typically used to describe amounts of money expended as local assistance based on a formula, in contrast to grants that are provided selectively and often on a competitive basis. For the purposes of Article XIII B, state subventions include only money received by a local agency from the state, the use of which is unrestricted by the statutes providing the subvention. (GC 7903.) Summary Schedules Various schedules in the Governor’s Budget Summary that summarize state revenues, expenditures, and other fiscal and personnel data for the past, current, and budget years. Sunset Clause Language contained in a law that states the expiration date for that statute. Tax Expenditures Subsidies provided through the taxation systems by creating deductions, credits, and exclusions of certain types of income or expenditures that would otherwise be taxable. Technical In the budget systems, refers to an amendment that clarifies, corrects, or otherwise does not materially affect the intent of a bill. Tort A civil wrong, other than a breach of contract, for which the court awards damages. Traditional torts include negligence, malpractice, and assault and battery. Recently, torts have been broadly expanded such that interference with a contract and civil rights claims can be torts. Torts result in either settlements or judgments. (GC 948, 965-965.9; SAM 6472, 8712; Budget Act Items 9670.) Traditional Budget See “Budget—Program or Traditional.” GOVERNOR'S BUDGET SUMMARY 2020-21 Appendix 97 Transfers As displayed in fund condition statements, transfers reflect the movement of resources from one fund to another based on statutory authorization or specific legislative transfer appropriation authority. Trigger An event that causes an action or actions. Budget "trigger" mechanisms have been enacted in statute under which various budgeted programs are automatically reduced if revenues fall below expenditures by a specific amount. Unanticipated Cost/Funding Shortage A lack or shortage of (1) cash in a fund, (2) expenditure authority due to an insufficient appropriation, or (3) expenditure authority due to a cash problem (e.g., reimbursements not received on a timely basis). (See Budget Act Items 9840 and 9850.) Unencumbered Balance The balance of an appropriation not yet committed for specific purposes. (See “Encumbrance.”) Uniform Codes Manual (UCM) A document maintained by the Department of Finance that sets standards for codes and various other information used in state fiscal reporting systems. These codes identify, for example, business units, programs, funds, receipts, line items, and objects of expenditure. Departments using FI$Cal use Accounts that combine the UCM general ledger code, receipt and object of expenditure codes in a single classification code. (See also “Account” and “Chart of Account Crosswalk”) Unscheduled Reimbursements Reimbursements collected by an agency that were not budgeted and are accounted for by a separate reimbursement category of an appropriation. To expend unscheduled reimbursements, a budget revision must be approved by the Department of Finance, subject to any applicable legislative reporting requirements (e.g., CS 28.50). Urgency Statute/Legislation A measure that contains an “urgency clause” requiring it to take effect immediately upon the signing of the measure by the Governor and the filing of the signed bill with the Secretary of State. Urgency statutes are generally those considered necessary for immediate preservation of the public peace, health, or safety, and such measures require approval by a two-thirds vote of the Legislature, rather than a majority. (Article IV, § 8 (d)). However, the Budget Bill and other bills providing for appropriations related to the Budget Bill may be passed by a majority vote to take effect immediately upon being signed by the Governor or upon a date specified in the legislation. (Article IV § 12 (e) (1).) Veto The Governor's Constitutional authority to reduce or eliminate one or more items of appropriation while approving other portions of a bill. (Article IV, §10 (e); SAM 6345.) Appendix 98 GOVERNOR'S BUDGET SUMMARY 2020-21 Voucher A request from a state department using FI$Cal to the State Controller’s Office to disburse payment from a legal appropriation or account for a lawful state obligation. The voucher identifies the appropriation or account to be charged, the payee, the amount(s) to be paid, and an affidavit attesting to the validity of the request. Warrant An order drawn by the State Controller directing the State Treasurer to pay a specified amount, from a specified fund, to the person or entity named. A warrant generally corresponds to a bank check but is not necessarily payable on demand and may not be negotiable. (SAM 8400 et seq.) Without Regard to Fiscal Year (WRTFY) Where an appropriation has no period of limitation on its availability. Working Capital and Revolving Fund For legal basis accounting purposes, fund classification for funds used to account for the transactions of self-supporting enterprises that render goods or services for a direct charge to the user, which is usually another state department/entity. In contrast, self-supporting enterprises that render goods or services for a direct charge to the public account for their transactions in a Public Service Enterprise Fund. Workload Budget Workload Budget means the budget year cost of currently authorized services, adjusted for changes in enrollment, caseload, population, statutory cost-of-living adjustments, chaptered legislation, one-time expenditures, full-year costs of partialyear programs, costs incurred pursuant to Constitutional requirements, federal mandates, court-ordered mandates, state employee merit salary adjustments, and state agency operating expense and equipment cost adjustments. (GC 13308.05.) This definition is related to the calculation of the workload budget required by Section 36 of Article 13 of the California Constitution. Year of Appropriation (YOA) Refers to the first fiscal year of enactment or availability, whichever is later. Also referred to as the Enactment Year, or ENY. Year of Budget (YOB) The fiscal year revenues and expenditures are recognized. For revenues, this is generally the fiscal year when revenues are earned, measurable, and “available.” For expenditures, this is generally the fiscal year when obligations, including encumbrances, have been created during the availability period of the appropriation. When the availability period of encumbrance of an appropriation is one year (e.g., most Budget Act items), the YOB is the same as the year of appropriation (YOA) and the year of completion (YOC). However, when the availability period is more than one year, the YOB may be any fiscal year during the availability period, including the YOA or the YOC, as appropriate. For example, an appropriation created in 2016-17 and is available for three years, the YOA is 2016 and the YOC is 2018. If an obligation is created in 2017-18, the YOB for this obligation is 2017. In FI$Cal (PeopleSoft), the YOB is referred to as Budget Period. The rules of GOVERNOR'S BUDGET SUMMARY 2020-21 Appendix 99 recognition are not the same for all funds depending on the appropriate basis of accounting for the fund types or other factors. Year of Completion (YOC) The last fiscal year for which the appropriation is available for expenditure or encumbrance. * Abbreviations used in the references cited: Article Article of California Constitution BA Budget Act CS Control Section of Budget Act GC Government Code SAM State Administrative Manual UCM Uniform Codes Manual Appendix 100 GOVERNOR'S BUDGET SUMMARY 2020-21