The 2021-22 Budget: Initial Comments on the Governor’s May Revision

The 2021-22 Budget: Initial Comments on the Governor’s May Revision Key Takeaways We Estimate the State Has a $38 Billion Surplus to Allocate. We estimate the state has $38 billion in discretionary state funds to allocate in the 2021-22 budget process, an estimate that is different than the Governor’s figure—$76 billion. The differences in our estimates stem from our differing definitions. The Governor’s estimate includes constitutionally required spending on schools and community colleges, reserves, and debt payments. We do not consider these spending amounts part of the surplus because they must be allocated to specified purposes. In Contrast to the Governor, Recommend Legislature Restore Budget Resilience. Despite a historic surge in revenues, the Governor continues to rely on budget tools from last year. Specifically, he uses $12 billion in reserve withdrawals and borrowing to increase spending. The state will need these tools to respond to future challenges, when federal assistance might not be as significant. We urge the Legislature not to take a step back from its track record of prudent budget management. State Appropriations Limit (SAL) Is Important Issue in May Revision. The Governor’s May Revision estimates the state will collect $16 billion in revenues in excess of the SAL this year. However, the ultimate amount of a potential excess will depend on decisions by the Legislature. Ultimately while the SAL will be an important consideration in this year’s budget process, the Legislature has substantial discretion in how to meet the constitutional requirements. Trade-Off Between Addressing Many Issues and Making More Significant Inroads on a Smaller Subset. The May Revision includes roughly 400 new proposals. While the surplus is large enough to make significant inroads in addressing a few key policy priorities, it is unlikely sufficient to do so across the number of issues contemplated in the May Revision. If the Legislature preferred to make surer substantial progress in a few key areas, it could allocate the surplus in a more targeted manner that reflect its top priorities. Consider Withholding Some Decisions. The surplus, in combination with the federal fiscal recovery funds, represents resources equal to about half of pre-pandemic General Fund budgets. Departments’ capacity to allocate this funding in a timely and effective manner likely will be significantly constrained. More importantly, the Legislature’s time to deliberate over choices made in this budget is extremely limited. We recommend the Legislature delay some of those decisions and offer options for doing so. GABRIEL PETEK LEGISLATIVE ANALYST MAY 2021 analysis full gutter 2021-22 BUDGET INTRODUCTION On May 14, 2021, Governor Newsom presented surplus, but also covers flexible federal funding to a revised state budget proposal to the Legislature. the state and the State Appropriations Limit (SAL). (This annual proposed revised budget is called the Next, we describe the structure of the General Fund “May Revision.”) In this post, we provide a summary under the Governor’s May Revision. We conclude of the Governor’s revised budget, focusing on the with our initial comments on this budget package. overall condition and structure of the state General At the end of this report, we include Appendix Fund—the budget’s main operating account. In tables that itemize select proposals by policy area the coming days, we will analyze the plan in more based on our understanding at this time. detail and provide additional comments in hearing The information presented in this post is based testimony and online. on our best understanding of administration We begin with an overview of the condition proposals as of Saturday, May 15, 2021. In many of the General Fund under the administration’s areas of the budget, our understanding of the estimates and proposals. We then describe the administration’s proposals will continue to evolve major spending-related decisions made by the as we receive more information. We only plan to Governor in allocating budget resources. Due to update this post for very significant changes (that the additional complexity in this year’s budget, is, those greater than $500 million). this discussion is not limited to the General Fund GENERAL FUND CONDITION Figure 1 shows the general fund condition under amounts on schools and community colleges the Governor’s May Revision. (under Proposition 98) and budget reserves and Excluding Policy Choices, Revenues Higher debt payments (under Proposition 2). Mainly as by $51 Billion Compared to Governor’s Budget. a result of higher revenues, relative to January, Reflecting very strong cash collections in recent months, the May Revision adjusts Figure 1 2020-21 revenues (and transfers) General Fund Condition Summary up by $26.8 billion to $182 billion. (In Millions) This represents a 27 percent 2019-20 2020-21 2021-22 increase over 2019-20, the largest Revised Revised Proposed single year increase in over four Prior‑year fund balance $11,442 $5,657 $27,434 decades. Much of these revenue Revenues and transfers 140,400 187,020 175,921 gains carry over into the budget Expenditures 146,185 165,243 196,795 year, with 2021-21 revenues Ending fund balance $5,657 $27,434 $6,561 being adjusted up $24.4 billion Encumbrances 3,175 3,175 3,175 to $179 billion. For additional SFEU balance $2,482 $24,259 $3,386 discussion on revenues, see our related post The 2021-22 Budget: Reserves May Revenue Outlook. BSA $17,350 $12,494 $15,939 SFEU 2,482 24,259 3,386 Constitutionally Required Safety net 900 450 450 Spending Higher by $16 Billion. Total Reserves $20,732 $37,203 $19,775 The constitution requires the SFEU = Special Fund for Economic Uncertainties and BSA = Budget Stabilization Account. state to spend minimum annual 2 LEGISLATIVE ANALYST’S OFFICE analysis full gutter 2021-22 BUDGET constitutionally required spending is higher by costs associated with the state’s major safety net nearly $16 billion across the budget window. programs are lower by $3.7 billion. Other Major Adjustments Reduce Costs Total Reserves Would Reach Nearly by $3 Billion. In addition to revenues and $20 Billion Under Governor’s May Revision. constitutional requirements, other budgetary Under the administration’s estimates and costs are, on net, lower by $3 billion compared proposals, total reserves would reach $19.8 billion to January. This relatively small number obscures in 2021-22. (This total differs somewhat from the many billions of dollars in budgetary changes. For administration’s estimate of total reserves because example, relative to the Governor’s budget, the we exclude the dedicated reserve for schools and Legislature enacted about $6.4 billion in spending community colleges, which we do not consider part increases and revenue reductions through early of General Fund reserves.) action. Partially offsetting this increase, baseline MAJOR SPENDING CHOICES Figure 2 displays the major budgetary decisions and $305 million for the Employment Development that the Governor made in allocating state and Department to more quickly address workload. federal money, totaling $85 billion. It includes (1) the General Fund Surplus General Fund surplus, (2) school and community college spending, (3) the American Rescue Plan We estimate the Governor had a $38 billion General (ARP) fiscal relief funds, and (4) ARP capital projects Fund surplus to allocate in the 2021 May Revision. funds. The remainder of this section discusses This surplus reflects the factors described above: each of these funding amounts in turn. As the higher revenues, higher constitutional spending, figure shows, schools and community colleges andnet lower other spending. This section describes would receive the largest spending allocations. that surplus in more detail, with a focus on the The major components of the other category are spending choices the Governor made in allocating it. $5.5 billion for broadband, $1.1 billion to replenish What Is the General Fund Surplus? The the state Unemployment Insurance Trust Fund, Governor’s May Revision is the starting point for Figure 2 Governor's Major Spending Choices in 2021-22 May Revision (In Billions) Schools and Community Collegesa Other Resources and Environment Higher Education ARP General Fund Housing and Homelessness Health Temporary Temporary Ongoing Transportation Human Services Business Assistance Criminal Justice a Proposition 98 spending—includes General Fund and local propert y 5 tax revenue. 10 15 20 $25 ARP = American Rescue Plan. www.lao.ca.gov 3 analysis full gutter 2021-22 BUDGET legislative deliberation. Ultimately, the Legislature will about $76 billion, different than our estimate. make its own determination about how to allocate The primary source of this difference is that available funds in the budget. One of the goals of this the Governor’s estimate of the surplus includes post is to estimate how much capacity the budget constitutionally required spending, whereas our has to make those allocations under the Governor’s estimate excludes it. For example, the Governor estimates of revenues. We answer this question by counts $27 billion in constitutionally required assessing which of the Governor’s proposals are spending on schools and community colleges, “discretionary.” We define discretionary spending to nearly $8 billion in required reserve deposits, mean spending, reserve deposits, debt payments, and $3 billion in required debt payments in and tax reductions not already authorized or required his calculation of the surplus. After excluding under current law. (Our definition of discretionary these amounts, our surplus estimates are nearly excludes the cost to maintain current state services, the same. such as base increases for the universities and How Can These Monies Be Used? In a normal employee compensation.) budget year, General Fund surplus monies are Why Does This Figure Differ From the available to use for any public purposes. This is not Governor’s Estimate? The Governor and necessarily the case in this May Revision. That is administration have cited a surplus estimate of because the SAL, which limits how the state can The State Appropriations Limit (SAL) SAL Limits Use of Surplus. Each year, the state compares the appropriations limit to appropriations subject to the limit. If appropriations subject to the limit exceed the limit (on net) over any two-year period, there are excess revenues. The Legislature can use excess revenues in three ways: (1) appropriate more money for purposes excluded from the SAL (under the Governor’s proposal, the common new spending for this purpose is capital outlay), (2) split the excess between additional school and community college district spending and taxpayer rebates, or (3) lower tax revenues. For more information on the SAL, please see our recent report: The State Appropriations Limit. How Does the Governor Use the Surplus for SAL-Related Purposes? Under the administration’s estimates and proposals, $23 billion of the surplus is split between two SAL-related purposes: • $15 Billion in Discretionary Spending on Excluded Purposes. The Governor’s General Fund discretionary proposals include $15 billion in discretionary SAL exclusions. These exclusions are entirely proposals for capital outlay projects of various kinds. • $8 Billion Dedicated to Tax Rebates. After making administrative changes and proposing excluded spending, the administrations estimates indicate the state would have excess revenues of $16.2 billion across 20202-21 and 2021-22. The Governor allocates half of these excess revenues—$8.1 billion—to taxpayer rebates for taxpayers with incomes less than $75,000. The administration does not allocate the remaining half to schools and community colleges in this budget. (The State Constitution allows the state two years to make the payments.) The estimate of the amount owed to K-14 education could change substantially in the coming years as a result of changes in revenue estimates and legislative decisions. Governor Includes Administrative and Proposed Statutory Changes. The May Revision includes three noteworthy administrative or statutory changes to the SAL. These three changes increase room under the SAL. First, the administration will stop counting vehicle registration fees as proceeds of taxes. Second, the administration makes an administrative correction of its treatment of school-related deferrals. Third, consistent with an option we presented in our recent report, the administration is proposing trailer bill language to absorb school districts’ room. These changes are reasonable. 4 LEGISLATIVE ANALYST’S OFFICE analysis full gutter 2021-22 BUDGET use revenues that exceed a specified threshold, ARP Flexible Funding is salient to the state budget process this year. As What Are the ARP Flexible Funds? The a result, the administration allocates $23 billion ARP included $350 billion in funding to state towards purposes that meet SAL requirements. The and local governments for fiscal recovery in the remaining surplus is used more flexibly. The nearby Coronavirus State Fiscal Recovery Fund. Of this box explains these dynamics in more detail. total, California’s state government will receive The Governor Proposes Allocating $26 Billion about $27 billion. In addition, California will receive in Surplus Funds to Spending. Using the $550 million in Coronavirus Capital Projects Fund $38 billion surplus, the Governor proposes roughly from the ARP, which also are available to the state four hundred spending-related proposals, which on a more flexible basis. would cost $26 billion. (We describe how the How Can These Monies Be Used? The state Governor allocates the remainder of the surplus is permitted to use the fiscal relief funds: (1) to in the “Budget Structure” section.) Less than respond to the public health emergency or negative one-quarter of these proposals are unchanged economic impacts associated with the emergency; from the Governor’s budget. The remaining (2) to support essential work; (3) to backfill a three-quarters are either modified proposals reduction in revenue that has occurred since or entirely new proposals in the May Revision. 2018-19; or (4) for water, sewer, or broadband Figure 3 shows these proposals by program area. infrastructure. The funds will be transferred soon, Figure 3 Discretionary Spending Proposals in the 2021-22 May Revision $26 Billion, General Fund Transportation Housing and Homelessness Human Services Health Other Resources and Environment Criminal Justice $1 Billion Higher Education www.lao.ca.gov 5 analysis full gutter 2021-22 BUDGET but the state has until December 31, 2024 to use However, the administration also proposes control the funds. The U.S. Department of the Treasury section language that would give the administration recently released detailed guidance with more detail significant flexibility to reallocate these funds. on how these funds can be used. School and Community Colleges How the Governor Proposes Allocating the ARP Funds. Figure 4 shows how the Governor Governor’s Major Spending Choices for Schools proposes allocating the flexible funds in the ARP by and Community Colleges. The State Constitution program area. (In addition to the amounts shown, sets a minimum annual funding requirement for the Governor proposes using $1.5 billion of ARP schools and community colleges. After setting aside fiscal relief funds to pay for the sate share of direct early actions, the May Revision includes nearly coronavirus disease 2019 expenditures, resulting $23 billion in spending proposals to provide the in lower General Fund costs by that amount.) This constitutionally required funding increases to schools figure reflects our best understanding of the ARP at and community colleges. As shown in Figure 5 on the this time. However, we are still receiving information next page, the Governor proposes allocating nearly from the administration on the uses of ARP funds. $10 billion of this total to pay down deferred payments The single largest proposal using ARP monies is from previous years, $5 billion (including $2.1 billion $5.5 billion for broadband access, affordability, ongoing) for high-poverty schools and districts, nearly and infrastructure. In addition, the Governor $1.4 billion for community colleges, and the remainder proposes allocating nearly $5 billion to housing and (roughly $6 billion) for other K-12 spending. homelessness and $3.6 billion to higher education. Figure 4 How the Governor Proposes Allocating Flexible ARP Funding (In Billions) Criminal Justice Human Services Replenish UI Trust Fund Other Business Assistance Resources and Environment Health Higher Education Housing and Homelessness Broadband 1 2 3 4 5 $6 Includes Coronavirus State Fiscal Recovery Fund and Coronavirus Capital Projects Fund. Includes only allocations for new policy proposals (excludes backfill of existing COVID-19 costs). Reflects our best understanding as of May 15, 2021. ARP = American Rescue Plan; UI = Unemployment Insurance; and COVID-19 = coronavirus disease 2019. 6 LEGISLATIVE ANALYST’S OFFICE analysis full gutter 2021-22 BUDGET Figure 5 Governor's Major Spending Decisions for Schools and Community Colleges Proposition 98 General Fund, $23 Billion Other K-12 Spending Pay Down Deferrals Community College Spending Funding for High-Poverty Schools and Districts BUDGET STRUCTURE This section and Figure 6 describe the allocation the SAL in state budgeting this year, we use the of the $38 billion General Fund surplus, which more expansive definition found in Government excludes spending on schools and community Code 7914, rather than the traditional budgetary colleges. The Governor allocates: $25 billion definition.) For example, the Governor’s General to one-time or temporary spending, including Fund proposals include $2.6 billion for transit nearly $15 billion for capital outlay; $7 billion to and rail projects, $2 billion for affordable college revenue-related reductions; $3.4 billion to the Special Fund for Economic Uncertainties (SFEU) balance; Figure 6 and nearly $2 billion to ongoing spending increases, How the Governor although these costs would grow substantially over Allocates a $38 Billion Surplus time. (In addition, the Constitution requires the state to set aside $11 billion for reserves and debt Debt and payments. We also describe those below.) Loan Payments SFEU One-Time Balance Capital Outlay One-Time Spending Spending The Governor proposes spending $25 billion of General Fund surplus monies on a one-time or Revenue Reductions temporary basis. The majority of these one-time proposals ($15 billion) meet the definition of capital outlay for the purposes of the SAL and are excludable. Ongoing Spending Governor Proposes $15 Billion in Spending on Other One-Time Spending Capital Outlay. The Governor proposes allocating $15 billion of General Fund to capital outlay. (To define capital outlay, due to the importance of SFEU = Special Fund for Economic Uncertainties. www.lao.ca.gov 7 analysis full gutter 2021-22 BUDGET student housing, $550 million for the Homekey face of major uncertainty. While there was little program, and $500 million for zero-emission vehicle precedent to work from, revenues were expected fueling infrastructure. If the Legislature wants to fall sharply. The Legislature took $54 billion in to make different decisions about this spending actions to address that problem (for example, it (without statutory changes or fund shifts), it can withdrew funds from reserves, shifted costs, reduced either: (1) use the funds to make tax rebates and spending, and increased revenues). However, additional payments to schools, (2) spend on under the administration’s estimates, General Fund other SAL-excluded purposes, or (3) use the funds tax revenues actually grew between 2019-20 and to reduce taxes. 2020-21 by 27 percent, the largest increase in Governor Proposes $10 Billion in Spending four decades. While the Governor’s proposals this on One-Time or Temporary Programmatic year eliminate most of the spending-related budget Activities. The Governor proposes spending solutions, they still maintain significant budgetary $9.8 billion on a one-time or temporary basis for borrowing and reserves withdrawals. Put another a variety of programmatic expansions that do not way, $12 billion of spending in the May Revision is meet the definition of capital outlay. The largest attributable to reserve withdrawals and borrowing proposals include $500 million for Golden State from 2020 (see Figure 7). teacher grants and a $500 million endowment for Tax Reductions learning-aligned employment. Governor Proposes $7.1 Billion to Tax- and Reserves and Debt Revenue-Related Reductions. The most significant $11 Billion in Constitutional Reserve and Debt of these proposals is $8.1 billion in tax rebates to Requirements. Under the administration’s revenue households with incomes of $75,000 or less. (As estimates, the Constitution would require the state referenced in the box earlier, these payments would to deposit $7.6 billion into the Budget Stabilization satisfy half of the constitutional requirement under Account (BSA) and spend an additional $3.4 billion the SAL.) Partially offsetting the cost of the rebates is to pay down debts. The BSA deposits would be additional revenue from a proposal for a new elective required regardless of whether or not the state had tax on certain businesses. This proposal gives certain made withdrawals from the BSA in 2020. That is, business owners a new option for restructuring their they are large because of revenue revisions, not due state income taxes that would enable them to reduce to restoring withdrawals made last year to address their federal income taxes but result in somewhat the anticipated budget problem. increased state tax liability. Using Surplus, Governor Repays $700 Million Figure 7 in Loans and Proposes SFEU Balance of $3.4 Billion. In addition to fulfilling the constitutional Governor Still Uses Budget Solutions Despite requirements, the Governor dedicates about Historic Revenue Growth $700 million in discretionary resources to repay Budget Solutions From 2020 Maintained in 2021 May special fund loans and sets the balance of the Revision (In Billions) SFEU at $3.4 billion for the end of 2021-22. This Reserve Withdrawals is somewhat higher than the enacted balance Make Budget Stabilization Account withdrawal $7.8 of the SFEU from June 2020. Notably, however, Make Safety Net Reserve withdrawal 0.5 the administration’s multiyear estimates include a Borrowing and Cost Shifts negative SFEU balance of $6 billion in 2022-23. Shift pension costs $1.7 Despite Sizeable Surplus, Governor Maintains Special fund loans 1.4 Borrowing and Reserve Withdrawals. The Convert capital financing to lease revenue bonds 0.7 Legislature passed the 2020-21 budget in the Make special fund transfers 0.1 Total $12.1 Note: Excludes spending and revenue‑related budget solutions. 8 LEGISLATIVE ANALYST’S OFFICE analysis full gutter 2021-22 BUDGET Ongoing Spending care slots, expand full-scope Medi-Cal coverage to all adults aged 60 and older and to implement a set Governor Proposes $1.8 Billion in Spending on of reforms to Medi-Cal called California Advancing Ongoing Programmatic Activities, With Significant and Innovating Medi-Cal (CalAIM). However, because Outyear Cost Increases. The Governor’s spending some of these ongoing proposals are phased in proposals also include $1.8 billion in ongoing over a multiyear period, we estimate the cost at full discretionary spending. (We exclude funding provided implementation of all of these proposals is $3.7 billion to maintain the cost of current state services, such in 2024-25. In addition, by 2024-25, under the May as base increases for the universities and employee Revision, the state would spend $2.7 billion ongoing compensation, from discretionary spending. These for Transitional Kindergarten. (Under the Governor’s baseline cost increases increase ongoing spending proposal, spending on schools and community by roughly $2.3 billion.) Some of the largest of these colleges under Proposition 98 would increase to include the Governor’s proposals to increase child accommodate this program expansion.) LAO COMMENTS Budget Structure the Legislature can use the surplus. The Legislature, however, can make a variety of different decisions, In Contrast to the Governor, Recommend which will affect whether tax rebates or future tax cuts Legislature Restore Budget Resilience. Despite a are necessary. Moreover, the Legislature could make historic surge in revenues, the Governor continues additional changes to the calculation of the SAL as we to make use of nearly $12 billion in budget tools— describe in our recent report. Ultimately while the SAL reserve withdrawals and borrowing—to increase is an important consideration in this year’s budget spending. While the state continues to respond to the process, the Legislature has substantial discretion in pandemic, using tools designed for a budget crisis how to meet the constitutional requirements. to support state spending at this time is shortsighted and inadvisable. The state will need these tools to Spending Choices respond to future challenges when federal assistance Budget Includes Various Proposals to may not be as significant. For instance, in the next Address Pandemic and Problems Exacerbated recession, the state is likely to have sizeable declines by Crisis. Appropriately given the dramatic and in revenues. To avoid reductions to safety net widespread impacts of the pandemic, many of the programs that support Californians when economic Governor’s larger proposals seek to mitigate either hardship is most acute, budget reserves are critical. the pandemic’s direct impacts or problems exposed For instance, in last year’s budget process, when by the health and economic crisis. The Governor’s the state anticipated a historic budget problem, homelessness proposal would allocate significant cuts to safety net programs were largely avoided resources to a long-standing problem that has been because of the state’s significant reserves. In heightened by the pandemic. The state also plays recent years, the Legislature has made careful and a foundational role in enabling economic growth by considered budget actions, which have put the state maintaining well-functioning infrastructure, transit, and on better fiscal footing. We urge the Legislature not higher education. The May Revision includes many to take a step back from its track record of prudent proposals in these areas. A notable number of May budget management. Revision proposals provide augmentations to new Budget Decisions Are Multidimensional programs, however, rather than making significant Due to SAL. Although the state budget is always increases to existing safety net programs—like complicated, budget decisions will be even more California Work Opportunity and Responsibility to complex this year. The main reason for this is the Kids (CalWORKs) and Supplemental Security Income/ SAL, which places significant restrictions on how www.lao.ca.gov 9 analysis full gutter 2021-22 BUDGET State Supplementary Payment (SSI/SSP)—or Departments’ capacity to allocate this funding in a rate increases in programs like the Department of timely and effective manner likely will be significantly Developmental Services. constrained. As a result, some funding could go out Trade-Off Between Addressing Many Issues much more slowly than anticipated, particularly for and Making More Significant Inroads on a new programs. Moreover, departments’ ability to Smaller Subset. The May Revision aims to address oversee this new spending likely will be limited as many problems. While many of these problems are well. While the administration proposes a relatively well known, their solutions—particularly coming out small new unit within the Department of Finance of a pandemic—are less understood. For example, to oversee new federal spending, more robust whether the administration’s workforce proposals mechanisms for both state and federal funding— will attract workers to retrain remains to be seen. administratively and legislatively—are warranted. Moreoever, many of the Governor’s proposals touch Consider Withholding Some Decisions. The on similar issues, but the ways in which they would administration proposes allocating almost all of interact remain unclear. As the Legislature crafts the surplus and fiscal relief funds now. Given the its budget, we recommend considering whether to constrained time line of the budget process, limited spread funding across many disparate issues or to administrative capacity, and potential for future dedicate more substantial resources to a smaller set action at the federal level, we recommend the of problems for which the Legislature has greater Legislature withhold decisions on some components assurance of success. While the surplus is large of the May Revision. Delaying some spending enough to make significant inroads in addressing a decisions would give the Legislature more time to few key policy priorities, it is unlikely sufficient to do determine which solutions would be most effective so across the number of issues contemplated in the and develop a detailed plan. For example, the May Revision. If the Legislature preferred to make Legislature could wait to allocate the federal fiscal surer substantial progress in a few key areas, it relief funds until more is known about what supports could allocate the surplus in a more targeted manner and services are needed as more Californians return that reflects its top priorities. to work, federal relief winds down, and the pandemic State Has Limited Capacity for New Spending ebbs. The Legislature also could implement other and Oversight. The surplus, in combination with the mechanisms as part of this budget to provide more federal fiscal recovery funds, represents resources opportunities for Legislative oversight and additional equal to about half of pre-pandemic General Fund time to make allocation decisions. We describe budgets. This is an extraordinary amount of funding. these options in the nearby box. 10 LEGISLATIVE ANALYST’S OFFICE analysis full gutter 2021-22 BUDGET Options for Improving Legislative Oversight Should the Legislature want more time to deliberate on the specifics of its budget package and identify opportunities for Legislative oversight, there are various options to consider. The Legislature also could use multiple options simultaneously for any particular proposal to ensure effective planning and oversight. • Make Funding Contingent on Subsequent Legislation. While the Legislature will need to appropriate the funding as part of the budget act, the Legislature can make allocation of funds dependent on subsequent trailer bill legislation that could be passed later this year. Doing so would give the Legislature additional time to ensure funds are allocated consistently with the Legislature’s goals. • Allocate Funding Over Multiple Years. The May Revision includes numerous proposals involving large, near-term expenditures. The Legislature alternatively could spread these allocations out longer. Doing so—in combination with subsequent legislation or setting milestones for progress—could provide more assurances that the funding is used effectively. • Include Reporting Requirements Before Releasing Funds. Rather than allocating all of the funding for a particular proposal at once, the Legislature could allocate some planning funding at the time of the budget act but make the remaining funds contingent on additional information from the department on how it would disperse the remainder. Also, the Legislature could allocate funding on a one-time or temporary basis before determining the appropriate amount of ongoing funding. • Delay Implementation. Similar to requiring additional information before releasing the funds, the Legislature could start full implementation of new programs in 2022-23 (or later) and provide some funding in 2021-22 to plan and build additional administrative capacity. • Make Funding Contingent on Legislative Notification. Often, the Legislature requires the administration to notify the Joint Legislative Budget Committee (JLBC) before allocating unanticipated funding midyear. The Legislature further could require notification of the JLBC before dispersing certain appropriations contained within the budget. www.lao.ca.gov 11 analysis full gutter 2021-22 BUDGET APPENDIX Appendix Figure 1 Criminal Justice: Discretionary Spending Proposals in the 2021-22 May Revision General Fund (In Millions) 2021-22 Program or One-Time or Department Proposal 2020-21 Temporary Ongoing BSCC Support for County Probation Departments $50 — — BSCC California Violence Intervention and Prevention Program — $67 — BSCC Funding for Post Release Community Supervision — 24 — BSCC COVID‑19‑Related Funding for Post Release Community Supervision — 12 — BSCC Strengthening Jail Oversight — — $3 CDCR One‑Time Deferred Maintenance Allocation — 100 — CDCR Replacement of Dayroom and Common Area Furniture — 35 — CDCR Statewide Implementation of Fixed Video Surveillance — 27 11 CDCR California Institution for Men: Air Cooling at Facility A — 14 — CDCR Valley State Prison Rehabilitation Enhancements — 11 3 CDCR California Rehabilitation Center Health Care Facility Repairs — 7 — CDCR Correctional Officer Training Expansion and Job Shadowing Program — 5 16 CDCR Technology for Inmates Participating in Academic Programs — 5 18 CDCR Statewide Telepsychiatry Program Supervision — 4 — CDCR Substance Abuse Treatment Facility: Air Cooling in Facilities F and G — 3 — CDCR Psychiatric Inpatient Program Standardization and Integration — 2 36 CDCR Chuckawalla Valley State Prison: New Potable Water Wells — 1 — CDCR Statewide Process for Allegations Against Employees — — 8 CDCR Inmate Visitation Expansion to Three Days — — 20 CDCR Increased Healthy Menu Options for Inmates — — 8 CDCR Receiver: Quality Management and Patient Safety — — 4 DOJ Consolidated Forensic Science Laboratory Campus — 7 — DOJ DNA Identification Fund Backfill — — 6 Judicial Branch Deferred Maintenance — 188 — Judicial Branch Expand Pretrial Pilot Program — 70 70 Judicial Branch Augmentation Authority to Address Trial Court Backlogs — 60 — Judicial Branch Three Courthouse Construction Projects — 40 — Judicial Branch Early Disposition Readiness Conference Program — 30 — Judicial Branch Courthouse Construction and Planning Studies — 8 — Judicial Branch Courthouse Facility Operations, Maintenance, and Leases — — 54 Judicial Branch Continuation of Self‑Help Services Funding — — 19 Judicial Branch Online Adjudication of Infractions and Ability‑to‑Pay — — 12 VCB Restitution Fund Backfill — — 33 Totals $50 $718 $321 Note: This reflects our best understanding as of May 15, 2021; however, we are still receiving information from the administration about these proposals. We only plan to update this figure for very significant changes (that is, those greater than $500 million). BSCC = Board of State and Community Corrections; COVID‑19 = coronavirus disease 2019; CDCR = California Department of Corrections and Rehabilitation; DOJ = Department of Justice; and VCB = California Victim Compensation Board. 12 LEGISLATIVE ANALYST’S OFFICE analysis full gutter 2021-22 BUDGET Appendix Figure 2 Health: Discretionary Spending Proposals in the 2021-22 May Revision General Fund (In Millions) 2021-22 Program or One-Time or Department Proposal 2020-21 Temporary Ongoing CDPH Alzheimer’s and dementia research and training (Age‑Friendly State — $25 — package) CDPH Resources for COVID‑19 pandemic response external challenges — 6 — CDPH Books for low‑income children — 5 — CDPH Pandemic response review — 3 — CHHS, Secretary Language access resources—development and implementation of — 20 — services CHHS, Secretary Equity dashboard — 3 — CHHS, Secretary Diversify HHS workforce (GARE training support) — 3 — CHHS, Secretary Health information exchange leadership — 3 — CHHS, Secretary Post‑COVID‑19 equity analysis — 2 — EMSA Statewide emergency medical services data solution — 10 — EMSA Increased emergency preparedness and response capability — 2 $6 EMSA Human resources workload support — — 1 Medi‑Cal Reintroduce CalAIM reforms — 591 81 Medi‑Cal Provide incentives for student behavioral health — 200 — Medi‑Cal Temporarily extend program integrity data analytics contract — 1 — Medi‑Cal Staff for managed care re‑procurement — — 1 Medi‑Cal Add dyadic services benefit (Children and Youth Behavioral Health — — 100 Initiative) Medi‑Cal Expand full‑scope Medi‑Cal for undocumented adults ages 60 and over — — 50 Medi‑Cal Extend postpartum Medi‑Cal eligibility to 12 months — — 45 Medi‑Cal Expand and make permanent certain telehealth flexibilities — — 33 Medi‑Cal Eliminate rate freeze for developmentally disabled and pediatric — — 11 facilities Medi‑Cal Increase reimbursement rates for ICF‑DDs and pediatric subacute — — 11 facilities Medi‑Cal Provide mental health services to out‑of‑state foster youth returning to $2 — 9 California Medi‑Cal Implement accelerated enrollment for adults — — 7 Medi‑Cal Add community health worker services benefit — — 6 Medi‑Cal Fund medication therapy management at specialty pharmacies — — 4 Medi‑Cal Add continuous glucose monitoring benefit — — 2 Medi‑Cal Hold funding in reserve in Drug Rebate Fund 222 — — Medi‑Cal End dental managed care in Los Angeles and Sacramento counties — — 1 OSHPD Additional funding for Song‑Brown Program — 50 — OSHPD Increase geriatric workforce — 8 — State Hospitals Deferred maintenance — 100 — State Hospitals Extend and expand IST diversion pilot program — 46 — State Hospitals Construction projects — 31 — State Hospitals Re‑evaluate individuals declared IST — 13 — State Hospitals Activate new jail‑based treatment beds for IST patients — 7 6 State Hospitals Statewide integrated health care provider network — 6 — State Hospitals Expand community‑based treatment options for IST patients 5 3 30 State Hospitals Implement new staffing levels for treatment team and primary care — — 23 (Continued) www.lao.ca.gov 13 analysis full gutter 2021-22 BUDGET 2021-22 Program or One-Time or Department Proposal 2020-21 Temporary Ongoing State Hospitals Backfill for lost reimbursement from counties for treating LPS patients — — 17 State Hospitals Establish mobile treatment options for forensic patients in the — — 10 community State Hospitals Implement new staffing levels for protective services — — 7 State Hospitals Activate new beds in step‑down facilities for forensic patients 1 — 5 Totals $230 $1,137 $465 Note: This reflects our best understanding as of May 15, 2021; however, we are still receiving information from the administration about these proposals. We only plan to update this figure for very significant changes (that is, those greater than $500 million). CDPH = California Department of Public Health; COVID‑19 = coronavirus disease 2019; CHHS = California Health and Human Services Agency; HHS = Health and Human Services; GARE = Government Alliance on Race and Equity; EMSA = Emergency Medical Services Authority; CalAIM = California Advancing and Innovating Medi‑Cal; ICF‑DDs = Intermediate Care Facilities for the Developmentally Disabled; OSHPD = Office of Statewide Health Planning and Development; IST = incompetent to stand trial; and LPS = Lanterman‑Petris‑Short. 14 LEGISLATIVE ANALYST’S OFFICE analysis full gutter 2021-22 BUDGET Appendix Figure 3 Higher Education: Discretionary Spending Proposals in the 2021-22 May Revision General Fund (In Millions) 2021-22 Program or One-Time or Department Proposal 2020-21 Temporary Ongoing CSAC Golden State Teacher Grants — $500 — CSAC Cal Grant competitive awards — — $33 CSAC Cal Grant supplemental awards for foster youth — — 15 CSAC Cal Grant A eligibility restoration $15 — 15 CSU CSU Humboldt transition to polytechnic university — 433 25 CSU Deferred maintenance and energy efficiency projects — 175 — CSU Emergency student financial aid — 30 — CSU CSU Northridge Center for Equity in Innovation and Technology — 25 — CSU CSU Monterey Bay Computing Talent Initiative — 10 — CSU Faculty professional development — 10 — CSU Student Basic Needs Initiative — — 15 CSU Student basic needs (mental health and technology) — — 15 CSU Intersegmental learning management system — — 2 CSU CSU Stanislaus Stockton Center — — 1 CSFA Affordable college student housing — 2,000 — UC Endowment for Learning‑Aligned Employment — 500 — UC Deferred maintenance and energy efficiency projects — 175 — UC UC Davis Koret Animal Shelter Medicine Program 5 45 — UC California Institutes for Science and Innovation — 20 — UC Emergency student financial aid — 15 — UC UC Los Angeles Lawson Labor Center — 15 — UC UC San Francisco Dyslexia Center — 10 — UC UC Los Angeles Asian American Studies Center — 5 — UC Faculty professional development — 5 — UC Subject Matter Projects in learning loss mitigation — 5 — UC Subject Matter Projects in ethnic studies — 2 — UC UC Fire Advisors — 2 — UC UC San Francisco public health modeling consortium — 1 — UC UC Berkeley Alternative Meats Laboratory — 1 — UC Student basic needs (mental health and technology) — — 15 UC Programs in Medical Education (PRIME) — — 13 UC Intersegmental learning management system — — 1 Totals $20 $3,984 $150 Note: This reflects our best understanding as of May 15, 2021; however, we are still receiving information from the administration about these proposals. We only plan to update this figure for very significant changes (that is, those greater than $500 million). CSAC = California Student Aid Commission and CSFA = California School Finance Authority. www.lao.ca.gov 15 analysis full gutter 2021-22 BUDGET Appendix Figure 4 Housing and Homelessness: Discretionary Spending Proposals in the 2021-22 May Revision General Fund (In Millions) 2021-22 Program or One-Time or Department Proposal 2020-21 Temporary Ongoing HCD Funding for Homekey Program (Homelessness package) — $550 — HCD Funding for housing‑related infrastructure (IIG Program) — 250 — HCD Assistance for housing law compliance — — $5 HCD Deferred maintenance of farmworker housing — 30 — HCFC Assistance to local government to address family homelessness — 40 — (Homelessness package) HCFC Addressing homeless encampments (Homelessness package) — 50 — HCFC Assessment of state and local homelessness programs (Homelessness — 6 — package) HCD Funding for CalHFA’s Mixed‑Income Program — 45 — HCD Provides housing navigator for foster youth — — 5 Medi‑Cal Grants to counties for behavioral health infrastructure (Children and Youth — 700 — Behavioral Health Initiative) Totals — $1,671 $10 Note: This reflects our best understanding as of May 15, 2021; however, we are still receiving information from the administration about these proposals. We only plan to update this figure for very significant changes (that is, those greater than $500 million). HCD = California Department of Housing and Community Development; IIG = Infill Infrastructure Grant; HCFC = Homeless Coordinating and Financing Council; and CalHFA = California Housing Finance Agency. 16 LEGISLATIVE ANALYST’S OFFICE analysis full gutter 2021-22 BUDGET Appendix Figure 5 Human Services: Discretionary Spending Proposals in the 2021-22 May Revision General Fund (In Millions) 2021-22 Program or One-Time or Department Proposal 2020-21 Temporary Ongoing Aging Older adult recovery and resiliency package — $101 — Aging Permanently fund ADRCs — — $3 CalWORKs Prevent adults from timing out of cash aid during pandemic $18 46 — CalWORKs Reinstate funding for Cal‑OAR accountability project — — 20 CalWORKs Augment funding for Indian Health Clinics — — 2 Child Care Data system planning — 5 — Child Care Child Care slots — — 224 Child Care Direct deposit — — 6 Child Support Funding for local child support agencies — — 11 Child Support Funding for child support court and IT activities — — 8 Child Welfare Block grants to counties to develop prevention services under FFPSA Part I — 122 — Child Welfare Expansions and flexibilities for non‑minor dependents and former foster youth — 49 — Child Welfare Assist counties serving foster youth with complex behavioral health needs — 20 19 Child Welfare Funding for emergency caregivers up to 120 days or 365 days for good cause — 10 — Child Welfare Support for Family Resource Centers for foster youth and families — 6 — Child Welfare Foster care rate flexibilities for families impacted by pandemic — 3 — Child Welfare Stipends for tribal social work students — 3 — Child Welfare Contracts for technology and hotline support for foster youth and families — 2 — Child Welfare Child welfare workforce development — — 6 DCSD State resources for Low‑Income Weatherization Program — 50 — DDS Employment grant — 10 — DDS Deferred maintenance — 5 — DDS Self‑Determination Program ongoing implementation — 5 2 DDS Capital outlay—install fire sprinkler system at Porterville — 4 — DDS Emergency preparedness for certain DDS consumers — 4 — DDS Early Start outreach to tribal communities — 1 — DDS Lanterman Act provisional eligibility at ages 3 and 4 — — 24 DDS Enhanced service coordination for those with little‑to‑no purchased services — — 10 (part of Supporting Vulnerable and Homeless Families package) DDS Crisis training and services (part of Supporting Vulnerable and Homeless — — 8 Families package) DDS Regional center performance incentives program — — 4 DDS Community navigators to work with families — — 3 DDS Forensic diversion program services — — 3 DDS Direct service professional workforce training and certification — — 3 DDS Bilingual service provider staff differentials — — 2 DDS Additional resources to support DDS consumers who are deaf — — 2 DDS Regional Center emergency coordinators — — 1 DDS Implicit bias training for regional center staff — — 1 DDS Non‑reversion of Early Start unspent funds to support recovery efforts 18 — — DOR Employment grant — 10 — DSS Increased Funding for Housing Support Program (Homelessness Package) — 475 — DSS Increased Funding for Bringing Families Home (Homelessness Package) — 280 — DSS Increased HDAP funding (Homelessness Package) — 175 — (Continued) www.lao.ca.gov 17 analysis full gutter 2021-22 BUDGET 2021-22 Program or One-Time or Department Proposal 2020-21 Temporary Ongoing DSS Increased Funding for Roomkey (Homelessness Package) — 150 — DSS Provide emergency legal services to undocumented persons 5 105 — DSS Increased Funding for Home Safe (Homelessness Package) — 100 — DSS Funds to preserve and expand RCFEs and ARFs (Homelessness Package) — 50 — DSS Fund pilot programs to study the effects of Universal Basic Income. — 35 — DSS Cover filing fees for applicants for naturalization or DACA — 25 — DSS Augment CFAP monthly benefits to their maximum per household size. 24 21 — DSS Provide support for unaccompanied undocumented minors — 20 — DSS Augment CFAP benefits by 15 percent 5 2 — DSS Augment funding for food banks during pandemic 35 — — DSS Provide COVID‑19 screening and shelter for migrant border arrivals 8 — — IHSS Long‑Term Care Career Pathways — 200 — IHSS IHSS medical accompaniment to COVID‑19 vaccine 4 4 — IHSS Maintain IHSS wage and benefit cost shares — — 57 IHSS Adjust IHSS county administration for caseload increases — — 15 IHSS Maintain IHSS back‑up provider system — — 11 SSI/SSP Increase SSP/CAPI/ Veterans Benefits grant levels beginning January 2022 — — 66 Totals $117 $2,099 $510 Note: This reflects our best understanding as of May 15, 2021; however, we are still receiving information from the administration about these proposals. We only plan to update this figure for very significant changes (that is, those greater than $500 million). ADRC = Aging and Disability Resources Centers; Cal‑OAR = CalWORKs Outcomes and Accountability Review; IT = information technology; FFPSA = Federal Family First Prevention Services Act; DCSD = Department of Community Services and Development; DDS = Department of Developmental Services; DOR = Department of Rehabilitation; DSS = Department of Social Services; HDAP=Housing and Disability Advocacy Program; RCFE = Residential Care Facilities for the Elderly; ARF = Adult Residential Facilities; DACA= Deferred Action for Childhood Arrivals; CFAP = California Food Access Program; IHSS = In‑Home Supportive Services; COVID‑19 = coronavirus disease 2019; and CAPI = Cash Assistance Program for Immigrants. 18 LEGISLATIVE ANALYST’S OFFICE analysis full gutter 2021-22 BUDGET Appendix Figure 6 Other: Discretionary Spending Proposals in the 2021-22 May Revision General Fund (In Millions) 2021-22 Program or One-Time or Department Proposal 2020-21 Temporary Ongoing CAC California Creative Corps Pilot Program — $60 — CAC Creative Youth Development Grant programs — 40 — CalVet CalVet deferred maintenance — 15 — CalVet Self‑reliance program for homeless veterans (Homelessness package) — 25 — CDE State special schools capital outlay projects — 20 — CDE State special schools deferred maintenance — 25 — CDE Transitional Kindergarten curriculum update — 10 — CDFA Various one‑time agriculture programs (Sustainable Agriculture package) — 290 — CDFA Fairground and community resilience centers — 150 — CDFA State Water Efficiency and Enhancement Program — 60 — CDFA Support for state‑affiliated fairgrounds — 50 — CDFA Blythe and Needles Border Protection Stations — 13 — CDFA Integrated pest management programs — 12 — CDFA Deferred maintenance at fairgrounds — 10 — CDI Enhance insurance fraud investigation and prevention — — $6 CDT Fund technology modernization solutions — 50 — CDT CA.gov website — 2 — CDT Digital identification project planning — 1 — CDT Fund information security audit program and SOC with General Fund — — 21 CDT Stabilize IT systems and staff Broadband for All efforts — — 11 CMD Sacramento: Consolidated Headquarters Complex — 26 — CMD One‑time deferred maintenance allocation — 15 — CPUC Flex‑Alert (energy package) — 10 — CSL Local library infrastructure — 50 — CSL Broadband access — 35 — CSL English as a Second Language programs — 15 — CSL Online tutoring pilot — 6 — CSL Broadband connectivity — 6 — CSL Civil Liberties Education Grant Program — 5 — CSL Early learning and after school programs — 5 — CSL Mobile libraries — 3 — CSL Disaster preparedness — 2 — CSL Assistive technology for visually impaired patrons — 2 0.2 CSL Lunch at the Library $1 — 1 CSL Zip Books — — 1 CTC Statewide strategy to diversify teacher workforce — 46 — CTC Teacher credential fee waivers — 20 — CWDB Expand existing apprenticeships — 90 — CWDB Regional equity and recovery partnerships — 50 — CWDB Expand new HRTPs with $10 million Proposition 98 funding — 50 — CWDB Expand existing apprenticeships — 25 — CWDB New apprenticeship program in residential construction — 20 — DCC Cannabis Local Jurisdiction Assistance Grant Program — 100 — DGS Transitional Kindergarten and full‑day Kindergarten facilities — 190 — (Continued) www.lao.ca.gov 19 analysis full gutter 2021-22 BUDGET 2021-22 Program or One-Time or Department Proposal 2020-21 Temporary Ongoing DGS State Project Infrastructure Fund — 93 — DGS One‑time deferred maintenance allocation — 50 — DGS Sacramento Region: Bonderson Building Swing Space — 12 — EDD Extra funding to address workload more quickly — 305 — EDD Expand incumbent worker training — 50 — EDD Fund CCC contract education units — 42 — EDD Restart planning effort — 12 — FTB Second phase of EDR2 — 88 GO‑Biz Small business finance center — 50 — GO‑Biz Grants to entrepreneurs — 35 — GO‑Biz Small business loan guarantee program — 20 — Gov Ops, Secretary Cradle‑to‑Career Data System — 3 12 Gov Ops, Secretary Implement statewide data strategy — — 1 Local Government Property tax backfill for 2020 wildfires 11 11 — LWDA Data sharing with CCC’s Chancellor’s Office — 15 — OES Prepare California: Building Resilient Communities — 250 — OES Victims Of Crime Act Supplemental Funding — 100 — OES Nonprofit Security Grant Program — 50 — OES Southern Region: Emergency Operations Center—acquisition — 26 — OES Relocation Of Red Mountain Communications Site—reappropriation — 17 — OES Operational Observer (Clean Energy package) — 9 — OES Southern Region Emergency Operations Center Relocation — 8 — OES Strengthening California’s Emergency Capacity and Capabilities — 1 75 OES California Disaster Assistance Act adjustment — ‑93 — OPR Regional K‑16 education collaboratives — 250 — OPR College Service Program — 46 — OPR Student success coaches — 15 — OPR Precision medicine: ACEs — 12 — Redistricting Increased Funding for Citizens Redistricting Commission 2020 Cycle — 9 — Totals $12 $ 2,990 $217 Note: This reflects our best understanding as of May 15, 2021; however, we are still receiving information from the administration about these proposals. We only plan to update this figure for very significant changes (that is, those greater than $500 million). CAC = California Arts Council; CalVet = California Department of Veterans Affairs; CDE = California Department of Education; CDFA = California Department of Food and Agriculture; CDI = California Department of Insurance; CDT = California Department of Technology; SOC = Security Operations Center; IT = information technology; CMD = California Military Department; CPUC = California Public Utilities Commission; CSL = California State Library; CTC = Commission on Teacher Credentialing; CWDB = California Workforce Development Board; High Road Training Partnership; DCC = Department of Cannabis Control; DGS = Department of General Services; EDD = Employment Development Department; FTB = Franchise Tax Board; EDR2 = Enterprise Data to Revenue; GO‑Biz = Governor ’s Office of Business and Economic Development; GovOps = California Government Operations Agency; LWDA = Labor and Workforce Development Agency; OES = Governor’s Office of Emergency Services; OPR = Office of Planning and Research; and ACEs = Adverse Childhood Experiences. 20 LEGISLATIVE ANALYST’S OFFICE analysis full gutter 2021-22 BUDGET Appendix Figure 7 Resources and Environment: Discretionary Spending in the 2021-22 May Revision General Fund (In Millions) 2021-22 Program or One-Time or Department Proposal 2020-21 Temporary Ongoing CalEPA Environmental Justice Initiative (Climate Resilience package) — $15.0 — CalFire Various resilience activities (Wildfire and Forest Resilience package) — 195.0 — CalFire Various capital outlay projects — 54.2 — CalFire Deferred maintenance — 50.0 — CalFire One‑Time Fire Protection Augmentation—July to December 2021 — 38.9 — CalFire Aviation program — 9.7 — CalFire Wildland firefighting research grant — 5.0 — CalFire Additional fire crews — — $137.3 CalFire Defensible space inspections — — 8.3 CalFire Wildfire Forecast and Threat Intelligence Integration Center (SB 209) — — 5.6 CalRecycle New composting and anaerobic digester facilities (Circular Economy package) — 35.0 — CalRecycle Co‑digestion capacity at wastewater facilities (Circular Economy package) — 20.0 — CalRecycle Recycling Technology Feasibility Grants (Circular Economy package) — 15.0 — CalRecycle Food Waste Prevention and Rescue Grants (Circular Economy package) — 5.0 — CalRecycle Community composting opportunities (Circular Economy package) — 5.0 — CARB Alternatives to agricultural burning (Agricultural package) — 150.0 — CARB Clean Vehicle Rebate Project (ZEV package) — 134.0 — CARB School buses (ZEV package) — 130.0 — CARB Drayage trucks (ZEV package) — 75.0 — CARB Transit buses (ZEV package) — 70.0 — CARB Drayage Trucks Pilot Project (ZEV package) — 40.0 — CARB Fluorinated Gas Reduction Incentive Program (Climate Resilience package) — 15.0 — CCC Forestry corps (Wildfire and forest resilience package) — 15.0 — CCC Deferred maintenance — 1.0 — CCC Additional fire crews — — 5.9 CEC ZEV fueling infrastructure (ZEV package) — 500.0 — CEC Incentives for Long Duration Storage Projects (Energy package) — 350.0 — CEC Industrial decarbonization (Energy package) — 250.0 — CEC ZEV Manufacturing Grants (ZEV package) — 125.0 — CEC Food Production Investment Program (Energy package) — 125.0 — CEC Green Hydrogen Power Plant & Green Electrolytic Hydrogen (Energy package) — 110.0 — CEC Drayage truck infrastructure (ZEV package) — 85.0 — CEC Building Initiative for Low‑Emissions Development (Climate resilience package) — 50.0 — CEC Transit bus infrastructure (ZEV package) — 30.0 — CEC Drayage Trucks Pilot Project (ZEV package) — 25.0 — CEC School bus infrastructure (ZEV package) — 20.0 — CEC Humboldt Offshore Wind Port Development (Energy package) — 11.0 — CEC Fifth Climate Assessment (Climate Resilience package) — 5.0 — CEC North Coast Offshore Wind Energy Project (Energy package) — 2.0 — CEC Energy emergency planning (Energy package) — 2.0 — CNRA Nature‑based solutions (Water resilience package) — 166.0 — CNRA Urban greening (Climate resilience package) — 100.0 — CNRA Coastal wetland restoration (Water resilience package) — 100.0 — CNRA Presidio improvement projects — 27.5 — (Continued) www.lao.ca.gov 21 analysis full gutter 2021-22 BUDGET 2021-22 Program or One-Time or Department Proposal 2020-21 Temporary Ongoing CNRA Remote sensing (Wildfire and forest Resilience package) — 15.0 — CNRA Fifth Climate Assessment (Climate Resilience package) — 6.0 — CNRA Clear Lake rehabilitation (Water Resilience package) — 5.7 — CNRA Offshore Wind—Environmental and Port Analyses (Energy package) — 2.0 — CNRA Data, research, and communications (Water Resilience package) — 0.6 — DFW Biodiversity activities — 59.6 — DFW Drought response activities (Water resilience package) — 50.5 — DFW Various one‑time upgrades and equipment — 41.8 — DFW Management of state lands (Wildfire and forest resilience package) — 36.0 — DFW Deferred maintenance — 15.0 — DOC Land Repurposing and Riparian Restoration (Water Resilience package) — 530.0 — DOC Oil Well Remediation and Biofuels Pilot (Climate Resilience package) — 250.0 — DOC Regional Forest and Fire Capacity (Wildfire and Forest Resilience package) — 60.0 — DPR Pesticide Notification Network — 10.0 — DPR Integrated pest management programs — 8.0 — DTSC Cleanup of contaminated properties in impacted communities — 300.0 — DTSC Exide facility closure and environmental action — 132.0 — DTSC Exide residential cleanup — 131.0 — DTSC Backfill for Hazardous Waste Control Account — 29.0 — DTSC Exide facility cost recovery — 14.0 — DTSC Backfill for Toxic Substances Control Account — 12.0 — DWR Various water and drought activities (Water Resilience package) — 924.0 — DWR Sustainable groundwater management grants (Water Resilience package) — 80.0 — DWR American River flood project — 67.0 — Exposition Deferred maintenance — 5.0 — Park GO‑Biz Climate Catalyst: agriculture — 50.0 — GO‑Biz Climate Catalyst: recycling — 50.0 — GO‑Biz Climate Catalyst: Wildfire package — 31.0 — OPR Climate Adaptation & Resilience Planning Grants (Climate Resilience package) — 15.0 — OPR Fifth Climate Change Assessment (Climate Resilience package) — 11.0 — OPR Vulnerable Communities Platform & CalAdapt Mapping (Climate Resilience — 5.0 — package) Parks California Outdoors for All Initiative — 238.6 — Parks Deferred maintenance — 185.0 — Parks 2020 Fire Event: Statewide Repairs — 113.5 — Parks California Indian Heritage Center Funding Transfer — 95.3 — Parks Stewardship of state lands (Wildfire and Forest Resilience package) — 75.0 — Parks Sacramento Railyards Rehabilitation — 30.0 — Parks Sea Level Rise (Climate Resilience package) — 11.5 — Parks Fiscal Stability for Boating Programs — 10.7 — Parks Backfill for Harbors and Watercraft Fund — 10.0 — Parks Woolsey wildfire repairs — 10.0 — Parks Wildfire restoration costs — 8.9 — Parks Various capital outlay projects — 6.3 — SCC Explore the Coast program (California Outdoors package) — 14.0 — SGC Transformative Climate Communities (Climate Resilience package) — 140.0 — SGC Regional Climate Collaboratives (Climate Resilience package) — 10.0 — SLC Management of state lands (Wildfire and Forest Resilience package) — 12.0 — (Continued) 22 LEGISLATIVE ANALYST’S OFFICE analysis full gutter 2021-22 BUDGET 2021-22 Program or One-Time or Department Proposal 2020-21 Temporary Ongoing SNC Stewardship of state lands (Wildfire and Forest Resilience package) — 50.0 — SWRCB Drought response activities (Water Resilience package) — 41.7 — TC Stewardship of state lands (Wildfire and Forest Resilience package) — 11.0 — WCB Groundwater projects (Water Resilience package) — 65.0 — Totals — $7,246.0 $157.1 Note: This reflects our best understanding as of May 15, 2021; however, we are still receiving information from the administration about these proposals. We only plan to update this figure for very significant changes (that is, those greater than $500 million). CalEPA = California Environmental Protection Agency; CalFire = California Department of Forestry and Fire Protection; CalRecycle = California Department of Resources Recycling and Recovery; CARB = California Air Resources Board; ZEV = zero‑emission vehicle; CCC = California Conservation Corps; CEC = California Energy Commission; CNRA = California Natural Resources Agency; DFW = Department of Fish and Wildlife; DOC = Department of Conservation; DPR = Department of Pesticide Regulation; DTSC = Department of Toxic Substances Control; DWR = Department of Water Resources; GO‑Biz = Governor ’s Office of Business and Economic Development; OPR = Office of Planning and Research; Parks = Department of Parks and Recreation; SCC = State Coastal Conservancy; SGC = Strategic Growth Council; SLC = State Lands Commission; SNC = Sierra Nevada Conservancy; SWRCB = State Water Resources Control Board; TC = Tahoe Conservancy; and WCB = Wildlife Conservation Board www.lao.ca.gov 23 analysis full gutter 2021-22 BUDGET Appendix Figure 8 Transportation: Discretionary Spending Proposals in the 2021-22 May Revision General Fund (In Millions) 2021-22 Program or One-Time or Department Proposal 2020-21 Temporary Ongoing CalSTA Transit, Grade Separations, and Zero‑Emission Rail (Transportation Infrastructure — $2,600 — package) Caltrans Clean California — 500 — Caltrans Active Transportation (Transportation Infrastructure package) — 500 — CHP Baldwin Park Area Office Replacement — 54 — CHP Santa Fe Springs Area Office Replacement — 54 — CHP Quincy Area Office Replacement — 44 — CHP Deferred Maintenance — 10 — DMV Extension of REAL ID Resources and Operational Improvements — 186 — DMV Digital Acceleration, Facilities, and Talent Acquisition — 105 — DMV Inglewood Field Office Replacement — 19 — DMV Reedley Field Office Replacement — 18 — DMV Santa Maria Field Office Replacement — 18 — DMV Delano Field Office Replacement — 17 — DMV Oxnard Field Office Reconfiguration — 13 — DMV Deferred maintenance — 10 — Totals — $4,130 — Note: This reflects our best understanding as of May 15, 2021; however, we are still receiving information from the administration about these proposals. We only plan to update this figure for very significant changes (that is, those greater than $500 million). CalSTA = California State Transportation Agency; Caltrans = California Department of Transportation; CHP = California Highway Patrol; and DMV = Department of Motor Vehicles. LAO PUBLICATIONS This report was prepared by Ann Hollingshead with contributions from staff across the office, and reviewed by Carolyn Chu. The Legislative Analyst’s Office (LAO) is a nonpartisan office that provides fiscal and policy information and advice to the Legislature. To request publications call (916) 445-4656. This report and others, as well as an e-mail subscription service, are available on the LAO’s website at www.lao.ca.gov. The LAO is located at 925 L Street, Suite 1000, Sacramento, CA 95814. 24 LEGISLATIVE ANALYST’S OFFICE