The 2022-23 Budget: California Department of Food and Agriculture

The 2022-23 Budget: California Department of Food and Agriculture FEBRUARY 2022 Summary. In this post, we assess two of the The program was first established with a Governor’s 2022-23 budget proposals for the non-Proposition 98 General Fund appropriation California Department of Food and Agriculture of $8.5 million in 2020-21. The 2021-22 budget (CDFA). First, the Governor proposes increased package committed $30 million in both 2021-22 funding for grants and staff for the department’s farm and 2022-23 in non-Proposition 98 General to school efforts. We recommend the Legislature Fund resources to fund additional rounds of reject the additional funding proposed for the grants, grants. CDFA plans to accept applications for the but approve ongoing funding to support regional $30 million in current-year funding in February 2022 program staff. Second, the Governor provides and award grants in June. funding to support implementation of the state’s CDFA Required to Submit Report on Carbon Sequestration and Climate Resiliency Project Grant Program Outcomes by January 2024. Registry. We recommend the Legislature reject the The recent budget package also included ongoing funding being requested in 2023-24 for supplemental reporting language for CDFA to the department to support the implementation of report on key programmatic outcomes achieved the registry and require the administration to come by the Farm to School Incubator Grant Program back with a new request as part of next year’s by January 1, 2024. Specifically, the department budget process. is required to report on the following: (1) the total number of grants and amount of funding awarded; FARM TO SCHOOL EFFORTS (2) the number of schools and students served; (3) the number of schools and students served by Background applicable community-need metrics (such as Office of Farm to Fork Promotes Increased free/reduced meal rates); (4) the geographic Access to Healthy Foods in Schools. CDFA’s Office distribution of awarded grants; and (5) an of Farm to Fork administers the Farm to School assessment, to the extent feasible, of the Program, which serves as a statewide resource degree to which the funded activities resulted to assist schools in procuring more locally grown in improvements such as increased awareness foods and engaging students to eat healthier diets. and consumption of healthier food options and The Farm to School Program currently has six improved academic outcomes. dedicated staff positions, which were approved on Governor’s Proposal an ongoing basis as part of the 2020-21 budget. The program had previously been supported with Additional $30 Million for Farm to School limited-term positions and grant funding. Incubator Grant Program. The Governor’s Farm to School Incubator Grant Program budget proposes an additional $30 million in Provides Funding to Schools. The department non-Proposition 98 General Fund resources in administers the Farm to School Incubator Grant 2022-23 for the Farm to School Incubator Grant Program, which provides funding to schools Program. Combined with the $30 million for the to purchase locally grown foods, coordinate budget year that was agreed upon as part of the educational opportunities, and further collaboration 2021-22 budget package, this would provide a total and coordination between schools and producers. of $60 million for the program in 2022-23. Funding to Hire Regional Staff for the Farm funding decisions. The Governor’s proposal to School Program. The Governor’s budget also requests additional funding before such information includes $2.9 million in non-Proposition 98 General is available, making it difficult for the Legislature to Fund resources in 2022-23 and ongoing to support assess the merits of expanding the program. 16 new positions for the Farm to School Program. Providing Regional Staff Could Further The staff would be responsible for advancing Promote Adoption of Farm to School Practices. farm to school practices statewide. The proposal We find that adding regional staff to support the includes eight network coordinators who would Farm to School Program likely would contribute support local farm to school planning and to an increase in statewide adoption of farm to implementation, and eight marketplace specialists school practices, such as by helping to incorporate who would establish connections between schools healthy food options into school meals and and local producers. The department indicates that increasing opportunities for nutrition education. each position would be responsible for supporting Staff that specialize in a particular region could these activities in a particular region of the state. better tailor support to schools that have common While these staff would support activities funded regional barriers in implementing these practices. by the school incubator grants, their work would Additionally, regional staff could help in developing also extend to other schools and producers that relationships and purchasing agreements that are not grantees. better connect schools to local producers. Assessment Recommendations Unclear Whether Demand for Grants Matches Reject Additional Funding for the Farm Proposed Funding Levels. The Farm to School to School Incubator Grant Program Until Incubator Grant Program is a relatively new program More Data on Outcomes and Demand Are and, as a result, limited data are available on the Available. We recommend the Legislature reject demand for grants. In 2020-21, the first year of the the Governor’s proposal to provide an additional program, the department received $12.5 million $30 million for the Farm to School Incubator Grant in total requests for $8.5 million in available Program. As mentioned above, the program already funding—not a significant level of oversubscription. will receive $30 million to provide new grants Because the department will not begin receiving in the budget year. Expanding the program to applications until this February for the $30 million $60 million before data on the demand for grants it has available for 2021-22 grants, the level of and programmatic outcomes are available is existing demand for this program remains unknown. premature. As noted, CDFA is required to provide This lack of justification is particularly concerning a report to the Legislature in January 2024, in time given the magnitude of the expansion the Governor to inform the 2024-25 budget package. Should the is proposing for this program—an increase of Legislature wish to consider providing additional over 600 percent in two years (from $8.5 million funding for the program in 2023-24, it could request to $60 million). a status update from the department on program Proposal Requests Additional Funding for demand and outcomes next year. Grants Before Program Outcome Information Approve Regional Staff Funding for the Is Available. As mentioned earlier, the 2021-22 Farm to School Program. We recommend the budget package included a requirement that the Legislature approve the $2.9 million in ongoing department report on key programmatic outcomes General Fund to support 16 regional staff. We find for the Farm to School Incubator Grant Program that these positions could increase the adoption by January 1, 2024. The reported outcomes were of farm to school practices statewide by better intended to provide the Legislature with information tailoring support to schools that have common on how effectively the program met its intended regional implementation barriers. goals, which could then be used to guide future 2022-23 Budget Series 2 CALIFORNIA CARBON Assessment SEQUESTRATION AND CLIMATE Funding Request Not Yet Justified. We find that authorizing funding now for CDFA’s RESILIENCY PROJECT REGISTRY potential future activities related to implementing Background SB 27 is premature. The nature and magnitude of the department’s future workload related to Recent Legislation Established Natural implementing the registry still are uncertain, as Working Lands Strategy and Associated CNRA will only begin to develop the registry in the Project Registry. In 2017, the Legislature enacted budget year. Consequently, the department’s role Chapter 237 (SB 27, Skinner) which, among other and staffing needs—particularly on an ongoing things, required the California Natural Resources basis—are not yet predictable at this time. Agency (CNRA), to establish a Natural Working Lands Strategy by July 1, 2023 in coordination Recommendation with CDFA, the California Environmental Protection Reject Proposal and Require Administration Agency, and other state agencies. The legislation to Submit Request Next Year When Funds Are also required CNRA to establish and maintain Needed and Better Information Is Available. a Carbon Sequestration and Climate Resiliency We recommend the Legislature reject the Project Registry by July 1, 2023. The registry will Governor’s proposal to provide $125,000 and one identify and list projects in the state that provide position ongoing from the General Fund in 2023-24 climate benefits on natural and working lands and for CDFA and instead require the administration to that are seeking funding from state agencies or come back with a new request as part of next year’s private entities. budget process. Delaying the funding decision Governor’s Proposal for a year will allow the Legislature to track the development of the registry and better understand Funding to Support CDFA Activities the potential workload it will create for CDFA, while Related to SB 27. The Governor’s budget not delaying the administration’s current time line includes $125,000 and one position ongoing for implementing the project registry. from the General Fund beginning in 2023-24 for CDFA to support implementation of the Carbon Sequestration and Climate Resiliency Project Registry. CDFA indicates it will not have any workload in 2022-23, so the request does not include funding for the budget year. Beginning in 2023-24, CDFA anticipates ongoing workload to support registry applicants in listing and implementing projects. This proposal is part of a larger budget request that also includes funding for CNRA and the California Air Resources Board to conduct activities implementing SB 27. 2022-23 Budget Series 3 LAO PUBLICATIONS This post was prepared by Frank Jimenez, and reviewed by Rachel Ehlers and Anthony Simbol. The Legislative Analyst’s Office (LAO) is a nonpartisan office that provides fiscal and policy information and advice to the Legislature. 2022-23 Budget Series 4