The 2022-23 Budget: Governor’s Office of Emergency Services Proposals

2022-23 BUDGET The 2022-23 Budget: Governor’s Office of Emergency Services Proposals Summary Governor Proposes $239 Million in Augmentations for Governor’s Office of Emergency Services (OES). The Governor proposes $239 million (largely from the General Fund) and 163 positions to augment the operations of OES in 2022-23 and to continue three capital outlay projects. While some of these proposals implement existing federal or legislative requirements, such as a proposal to implement the federally mandated 988 mental health hotline, most others are intended to more generally enhance the state’s emergency response capacity. Strategic Plan for Enhancing Emergency Response Capacity Needed to Guide Future Budget Decisions. Given the possibility of a continued increase in the number and severity of emergencies, it is reasonable to enhance the state’s emergency response capacity. However, it is difficult to determine whether the Governor’s specific proposals reflect the most effective and efficient approach to doing so because they are not tied to specific emergency response goals and objectives. We find that the development of a strategic plan to enhance emergency response capacity would be valuable in assessing future proposals. Recommend Development of Strategic Plan and Review of OES Base Budget. In order to ensure the Legislature has better information to make decisions in the future, we recommend requiring the administration to develop a strategic plan for enhancing emergency response capacity no later than January 1, 2024. Such a plan should include (1) goals for emergency response capacity, (2) an assessment of existing capacity, (3) identification of gaps or weakness in current capacity, and (4) an assessment of the level of staffing needed to support capacity goals. We also recommend that the OES base budget be reviewed to determine whether existing resources are meeting strategic plan goals, some resources should be reallocated to higher-priority uses, and recent augmentations have already provided the necessary resources. Recommendations on Specific Proposals. Despite the lack of a strategic plan for enhancing the state’s emergency response capacity, the Legislature will need to take actions on the Governor’s various proposals. As such, we offer recommendations on the Governor’s specific OES proposals. Specifically, we recommend the Legislature (1) approve those that appear reasonable (funding for review of county emergency plans consistent with Chapter 744 of 2021 [AB 580, Rodriguez], the California Disaster Assistance Act grant program, as well as capital outlay facilities and facilities support proposals), (2) require OES to provide more information on potential federal funds available for the 988 hotline, (3) approve proposals that are difficult to assess without a strategic plan with three-year limited term funding so that they can be reassessed once the plan is available, and (4) reject the two proposals that are not justified. GABRIEL PETEK | LEGISLATIVE ANALYST FEBRUARY 2022 www.lao.ca.gov 1 2022-23 BUDGET BACKGROUND Responsibilities of Governor’s Office of number of days OES has activated the SOC has Emergency Services (OES). The California increased, as shown in Figure 1. The primary Emergency Services Act establishes OES as the reason for the major increase in SOC activation state entity responsible for overseeing the state’s days in 2020 and 2021 is the state of emergency response to emergencies. To accomplish this that has been in place since March 4, 2020 due mission, OES develops emergency preparedness to the COVID-19 pandemic. This emergency is plans and tasks other state departments with the longest continuous activation of the SOC in specified response activities (commonly referred OES history. We note that emergencies unrelated to as “mission tasking”). OES is also responsible to the pandemic have also increased in severity. for coordinating with local and federal emergency Most significantly, the state has experienced a responders at active emergency sites and notable increase in the severity of wildfires in assisting them in various ways. For example, recent years. While wildfires are a natural part OES maintains certain emergency response of California’s ecosystems, when exacerbated equipment (such as mutual aid fire engines by other factors, such as unhealthy forests, and swift water rescue boats) that are used by development in fire-prone areas, and the effects local emergency responders. In addition, OES of climate change (including hotter temperatures operates the state operations center (SOC)—the and droughts), they are more problematic and state’s emergency response hub where response represent a greater threat to lives and property. activities are coordinated during significant state As shown in Figure 2, most of California’s largest emergencies—as well as a headquarters and three and most destructive wildfires have occurred in regional offices. recent decades. The last few years have also seen OES is also responsible for emergency emergencies declared for drought, civil unrest, the recovery activities, including administering Ridgecrest earthquake, storms, and a potential California Disaster Assistance Act (CDAA) grants energy shortage. to local governments for various disaster-related purposes, such as to fund the repair or Figure 1 replacement of publicly owned Number of Days State Operations Center property damaged by a disaster Activated Has Increased and reimburse local governments for their share of cost for certain federal emergency assistance 400 programs. In addition, OES 350 administers various state and 300 federal grant programs unrelated to emergencies, including 250 programs that provide assistance 200 to victims of crime. 150 State Has Recently 100 Experienced More Frequent 50 and Severe Emergencies. In recent years, both the number 2015 2016 2017 2018 2019 2020 2021 and severity of emergencies experienced by the state has increased. As a result, the 2 LEGISLATIVE ANALYST’S OFFICE 2022-23 BUDGET Increased Level of Figure 2 Emergencies May Persist. It is possible that the increased number Most of the Largest and Most Destructive and severity of emergencies Wildfires Have Occurred in Recent Decades seen in recent years will persist or even grow in the future due to 9 various reasons. First, a few key 8 factors that have contributed to 20 Largest 7 20 Most Destructive the recent increase in large and 6 destructive wildfires are likely to 5 persist, including climate change, 4 3 unhealthy forests, and development 2 in fire-prone areas. Furthermore, 1 climate change will result in numerous conditions that will 1930s 1940s 1950s 1960s 1970s 1980s 1990s 2000s 2010s 2020sa cause other types of emergencies, a Includes wildfires that occurred in 2020 and 2021. such as more droughts, extreme heatwaves, and coastal flooding. Figure 3 The state also faces a continued Recent Augmentations to OES Base Budget threat from COVID-19 and potentially more virulent variants of the disease. 9 In addition, the potential for large Strengthening Capabilities. $60.6 million and 114 positions in 2021-22 to (1) augment emergency capacity and capabilities to respond to increasingly infectious disease outbreaks—which complex disasters, security threats, and emergencies; (2) maximize federal could turn into pandemics—could funds for disasters; (3) modernize technology and data analytics; and (4) strengthen equity and connections with vulnerable populations. be more likely in the future due to numerous factors, such as human 9 Long-Term Recovery Support. $37.8 million and 214 positions—110 new development in animal habitats positions and 104 positions previously funded on a limited-term basis— providing more opportunities for in 2021-22 to support recovery efforts, increase federal disaster cost reimbursements for the state and local governments, and enhance programs diseases to spread from animals intended to mitigate the impacts of future disasters. to humans, population growth, 9 international travel, and trade. Mutual Aid Prepositioning. $25 million in 2019-20 to preposition existing OES and local resources in areas with identified wildfire threat. OES Base Budget Has Significantly Increased in 9 Disaster Planning, Preparedness, and Response. $7.4 million and Recent Years. In recognition of 88 positions in 2019-20 for activities related to disaster planning, preparedness, the increased level of emergencies, and response. OES has received numerous 9 augmentations to its base budget, Regional Hazardous Materials Response. $3.6 million for five positions and vehicles in 2021-22 to respond to emergencies involving hazardous materials. as well as additional positions, in recent years. From 2017-18 9 Transfer of Seismic Safety Commission. $2.4 million and six positions in to 2021-22, the state operations 2020-21 for costs associated with transferring the Seismic Safety Commission budget for OES increased by to OES. $237 million, which represents a 9 109 percent increase. Figure 3 Wildfire Forecast and Threat Intelligence Center. $2 million and five positions in 2020-21 for OES to participate with other state agencies in summarizes the ongoing operating the Wildfire Forecast and Threat Intelligence Center. augmentations that the state has 9 recently provided OES, which Emergency Response Operations. $1.6 million and eight positions in were largely supported by the regional offices in 2018-19 to support local agencies and coordinate emergency response activities. General Fund. OES = Governor’s Office of Emergency Services. www.lao.ca.gov 3 2022-23 BUDGET GOVERNOR’S PROPOSALS The Governor’s budget for 2022-23 includes and outreach. This proposal would provide a series of proposals to increase funding to roughly the same level of funding that has support the operations of OES and several capital been provided in recent years on a one-time outlay projects. basis to continue the operation and expansion Operations Proposals. The Governor of the system. proposes a total of $227 million (largely from the • Wildfire Resilience Package: Home General Fund) and 163 positions to augment Hardening Retrofit Program ($13 Million). various OES programs in 2022-23. (We note that The Governor proposes $13 million in a few of the proposals are part of larger packages 2022-23 and $12 million in 2023-24 from proposed by the Governor related to wildfire the General Fund to OES to expand the resilience and response.) These proposals include: state’s existing home hardening retrofit pilot program. The pilot program—established by • CDAA Augmentation ($114 Million). Chapter 391 of 2019 (AB 38, Wood)—requires The Governor proposes a $114 million General OES and CalFire to provide grants to fund Fund augmentation for the CDAA grant cost-effective building retrofits and structure program—bringing total CDAA funding to hardening to create fire-resistant homes and $176.7 million in 2022-23. Under the proposal, buildings. The program was first funded with $37.4 million of the augmentation would be $25 million in April 2021 as part of a package ongoing, bringing total ongoing funding for of early action wildfire proposals. CDAA to $100 million in 2023-24. • Wildfire Response Package: Mutual Aid • Wildfire Response Package: Fire Integrated Fire Fleet Enhancement ($11 Million). Real-Time Intelligence System (FIRIS) The Governor proposes $11 million ongoing ($24 Million). The Governor proposes General Fund and 11 positions to support $24 million ongoing General Fund and additional costs associated with the 11 positions for OES to take over direct maintenance and replacement of the existing responsibility for the FIRIS software from fleet of 260 mutual aid fire engines. These Orange County and contract for two mutual aid fire engines and apparatus (such as surveillance aircraft. (The proposed budget rescue boats and water tankers) are provided also includes additional resources for the to local governments to maintain surge California Department of Forestry and Fire capacity during major emergencies. Protection, or CalFire, to work jointly with OES.) The FIRIS software—which has been • Mission Tasking ($10 Million). piloted by the state through an agreement The Governor’s budget includes $10 million with Orange County—uses real-time aerial ongoing General Fund that would be available data provided by surveillance aircraft along for state departments being mission-tasked with the software’s predictive models to by OES to support associated costs that inform the state’s response to wildfires and are not funded through other emergency other hazards. funding sources. This proposal would replace $20 million in one-time funding available over • California Earthquake Early Warning three years for this purpose that will expire at System ($17 Million). The Governor proposes the end of the current year. $17 million ongoing General Fund and three positions to operate and further expand the • Support Capacity ($9 Million). The Governor California Earthquake Early Warning System. proposes $9 million ongoing ($5 million Key activities that would be funded include General Fund with the remaining from various the development of additional seismic stations federal and special funds) and 71 positions to as well as research, development, education, provide increased administrative and program 4 LEGISLATIVE ANALYST’S OFFICE 2022-23 BUDGET support for OES. The proposed positions • Search and Rescue Teams and Training include executive, finance, legal, and audit ($4 Million). The Governor proposes eight staff, as well as additional staff for certain positions and (1) $2 million for OES to take programs, such as emergency response, sole responsibility for a search and rescue planning, and preparedness programs. training program that it currently operates for a • 988 Hotline Implementation ($7.5 Million). cost of $360,000 with the City of Sacramento The Governor proposes $7.5 million General and the Sacramento Metropolitan Fire Fund (decreasing to $6 million annually in District, (2) $1 million to support local urban 2023-24) and ten positions to implement the search and rescue teams, and (3) $1 million federally required 988 suicide and mental to align reimbursements provided to local health hotline and develop integration between governments with their current actual costs of the 988 and 911 systems. The 988 hotline participating in mobile training exercises for will provide an easier number for callers to urban search and rescue teams. remember than the existing 1-800 phone number • County Emergency Plans—Vulnerable for the National Suicide Prevention Lifeline and Populations ($1.4 Million). The Governor will continue to connect callers with trained proposes $1.4 million ongoing General Fund counselors to help people suffering from a and six positions for OES to review county mental health crisis or suicidal thoughts. emergency plans to determine whether • Enhanced Partnerships for Addressing they are consistent with best practices for Heightened Risks—Regional Office Staffing vulnerable populations (such as persons with ($5.8 Million). The Governor proposes disabilities), as required by Chapter 744 of $5.8 million largely from the General Fund 2021 (AB 580, Rodriguez). (decreasing to $5.1 million annually in 2023-24) • Military Equipment Verification ($418,000). and 20 positions to (1) increase staffing at the Chapter 406 of 2021, (AB 481, Chiu) requires three OES regional offices and (2) support local law enforcement agencies to obtain staffing and funding for lease costs for a new approval from their local governing body satellite office in San Diego that was initially before accepting excess military equipment started with one-time COVID-19 emergency from the federal government. The Governor response funds. proposes $418,000 ongoing General Fund • Headquarters Modernization Project and two positions for OES to verify that local Support ($5.2 Million). The Governor law enforcement agencies have such approval proposes $5.2 million in 2022-23 and $2 million before accepting military equipment. in 2023-24 from the General Fund to lease a • Headquarters Security Project Support temporary facility while the SOC modification ($200,000). The Governor proposes and headquarters lobby security capital $200,000 ongoing General Fund to increase outlay projects are underway. This amount an existing contract for security services at includes the moving expenses for temporarily the OES headquarters to provide additional relocating OES staff and the SOC. (We discuss security while the existing parking lot the Governor’s proposed funding for the SOC security checkpoint is under construction modification and headquarters lobby security and to operate the enhanced security capital outlay projects below.) checkpoint once the project is completed. • Logistics Management—Facilities and (We discuss the Governor’s proposed funding Infrastructure Management Staffing for the security checkpoint capital outlay ($4.9 Million). The Governor proposes project below.) $4.9 million ongoing General Fund and 21 positions for the logistics division within OES, which is responsible for facilities procurement, including contracting for staging areas and base camp sites during emergencies. www.lao.ca.gov 5 2022-23 BUDGET Capital Outlay Projects. The Governor to enhance the security in the lobby and proposes a total of $11.5 million to continue three entrance of the OES headquarters building to previously approved capital outlay projects. limit visitor access to private offices. The project The proposals include: is estimated to cost a total of $1.4 million and be completed in November 2023. (A total of • SOC Modification Project ($9.9 Million). about $100,000 for preliminary plans was The Governor proposes $9.9 million General previously provided.) Fund for equipment and the construction phase of a project to modify the OES SOC in various • Headquarters Security Checkpoint ways, such as by reconfiguring it to include Enhancement Project ($351,000). more collaborative workspaces and to make the The Governor proposes $351,000 General Fund SOC compliant with accessibility requirements. for the working drawings phase of a project to The project is estimated to cost a total of enhance the parking lot security checkpoint at $17.5 million and be completed in August 2024. the OES headquarters. The project will install security kiosks and anti-ram barrier control • Headquarters Lobby Security Enhancement arms at each of the entrances to the parking Project ($1.3 Million). The Governor proposes lot. The project is estimated to cost a total of $1.3 million General Fund for the working $2.8 million and be completed in July 2024. drawings and construction phases of a project OVERARCHING COMMENTS ON GOVERNOR’S PROPOSALS In this section, we identify some overarching issues for the Legislature Figure 4 to consider as it evaluates the OES Base Budget and Staffing Have Grown Governor’s various budget proposals Following Recent Emergencies for OES. State Operation Budget (Dollars in Millions) Governor’s Proposals Would Further Increase Base Budget of OES. As discussed earlier in this 1,500 Approved Positions brief, the state operations budget $600 for OES increased significantly in 1,000 recent years following the occurrence 500 500 of major state emergencies—from $217 million in 2017-18 to $454 million 400 17-18 18-19 19-20 20-21 21-22 22-23 in 2021-22. If the Legislature were 300 to approve all of the Governor’s operations proposals for OES, the 200 base budget would increase by an additional $40 million (9 percent) 100 from 2021-22 to 2022-23, as shown in Figure 4. (We note that the above 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 numbers and those shown in Figure 4 exclude funding provided over OES = Governor’s Office of Emergency Services the course of the year to address specific emergencies.) 6 LEGISLATIVE ANALYST’S OFFICE 2022-23 BUDGET OES Staffing Levels Would Also Further activities, it is difficult at this time to determine Increase. As also shown in Figure 4, the base whether the specific proposals reflect the most staffing levels for OES have also increased since effective and efficient approach for meeting the 2017-18. The Governor’s proposed staffing level state’s emergency response needs. This is because for 2022-23 of 1,507 positions is 598 positions the administration has not provided information (66 percent) higher than the level approved in the on what the state’s emergency response goals 2017-18 Budget Act. are in both the near and long term. Such goals Positions Requested Each Year for should take into account the number and type Similar Purposes, but Overall Staffing Plan of emergencies OES should be prepared to and Needs Remain Unclear. OES has often handle at once. Moreover, it is important for requested resources for similar purposes year the administration to identify clear objectives after year. For example, the 2019-20 budget that are aligned to each goal and provide a list provided $7.4 million to support 88 additional of potential activities and programs that could positions for disaster planning and preparedness, effectively help meet specific objectives. Such recovery workload, logistics, administration, information could then be used to comprehensively and grants management. Similarly, the 2021-22 assess the state’s existing emergency response budget provided a $60.6 million augmentation capacity and capabilities, such as how emergency to support 114 additional positions for many of response coverage is distributed throughout the same purposes. As shown in Figure 5, OES the state and how current OES capacity fits in is requesting staffing increases in 2022-23 for with the capabilities of other state departments the same or similar functions that it has received (such as CalFire), as well as with local and federal staffing augmentations for in prior years. While the emergency responders. additional positions provided in recent years, and proposed by the Figure 5 Governor for the budget year, assist OES Requests Additional Staff in the operations of OES, the overall For Similar Activities Most Years staffing needs of the department in both the near and long term are 2018-19 2019-20 2020-21a 2021-22 2022-23 not clear. Moreover, OES lacks Grant Administration a staffing plan that outlines a strategy for addressing identified Monitoring and Quality Control staffing needs. The absence of Accounting and Audits clearly identified staffing needs and plan is evident in the department Fiscal and Budget requesting positions for similar Information Technology functions each year. Emergency Management Proposals Not Tied to and Response Specific Emergency Response Regional Staffing Goals and Objectives... Given Administration the possibility that an increase Planning in the number and severity of emergencies continues, it is Logistics reasonable for the Governor to Recovery propose increasing the state’s a OES initially requested additional resources in 2020-21 beyond what is shown, however, those response capacity. While the requests were withdrawn after the start of the COVID-19 pandemic and projections of a budget deficit. Governor’s proposed approach OES = Governor’s Office of Emergency Services. would provide additional funding to OES for a variety programs and www.lao.ca.gov 7 2022-23 BUDGET …Making It Difficult to Assess Their • An assessment of existing emergency Effectiveness. Without the above information, it is response capacity, such as how emergency very difficult for the Legislature to evaluate (1) how response capacity is distributed throughout each of the Governor’s proposals is aligned to the the state and how OES capacity fits in with the state’s overall strategy, (2) the extent to which each capabilities of other responders. proposal fills gaps in the state’s response capacity • Identification of gaps or weaknesses in current in the most cost-effective way, and (3) how each response capacity that prevent the state from proposal fits in with the efforts of other state and meeting its emergency response goals. local emergency responders. • An assessment of the level of staffing Strategic Plan for Enhancing Emergency necessary to support both base workload and Response Capacity Needed to Guide Future the emergency response capacity goals and a Budget Decisions. In view of the above, we plan for obtaining the needed staffing. find that the development of a strategic plan to Such a plan would allow the Legislature to enhance emergency response capacity would be determine the extent to which existing OES capacity valuable in assessing future proposals regarding is insufficient and whether the administration’s the operations of OES. Specifically, this plan goals and priorities for enhancing the state’s should include: capacity align with its own. (As we discuss in the • Goals for the level of emergency response nearby box, the Legislature has requested from capacity the state needs to maintain—such the administration an assessment of existing as the number and type of emergencies emergency response capacity specifically related the state needs to be prepared to respond to wildfires, which the administration has not to simultaneously—and clear objectives for yet submitted.) meeting these goals. Legislature Has Requested Wildfire Response Capacity Assessment In recognition of the increased number of large and destructive wildfires, the Legislature has sought more information about the state’s existing wildfire emergency response capacity. Specifically, as part of the 2019-20 budget package, the Legislature required the Governor’s Office of Emergency Services and the California Department of Forestry and Fire Protection to conduct an assessment of existing wildfire-response capacity through state and mutual aid resources to identify gaps in capacity, cost-effective approaches to addressing those gaps, and fire-response goals. This required assessment was due on April 1, 2020, but has not been provided to date. According to the administration, this is due to competing workload demands and there is no estimated time frame for when the report will be completed. 8 LEGISLATIVE ANALYST’S OFFICE 2022-23 BUDGET ASSESSMENT OF SPECIFIC PROPOSALS The Legislature will need to take action on for vulnerable populations could help inform the Governor’s proposals despite the lack of a OES of local capacity to assist vulnerable strategic plan for enhancing the state’s emergency populations, which in turn could assist OES response capacity. Accordingly, we provide our in future emergency response efforts or assessment of the Governor’s proposals for OES future efforts to assess gaps in emergency below. As we discuss further below, we find that response capabilities. (1) some proposals appear reasonable, even in the • Capital Outlay and Related Support absence of a strategic plan; (2) the proposal for Proposals. The three proposed capital 988 hotline implementation, while reasonable, does outlay projects (the SOC modification, not account for potential federal funding; (3) some headquarters lobby security enhancement, proposals are difficult to assess in the absence of and headquarters security checkpoint a strategic plan for enhancing emergency response enhancement projects) and two related capacity; and (4) some proposals are not justified. support proposals (headquarters (Our analysis of those proposals related to wildfires modernization project support and can be found in our recent briefs on the Governor’s headquarters security project support) proposals on wildfire response and resilience, appear reasonable as they would continue which we summarize in the box on the next page.) projects that have been previously approved by the Legislature. In addition, modernizing Some Proposals Appear Reasonable and improving the functioning of the OES We find that some of the Governor’s proposals headquarters facility and SOC will benefit for OES appear reasonable even without the the state by providing more appropriate and benefit of a strategic plan for enhancing emergency secure facilities. response capacity. This is because the need for these programs is unlikely to change based on an 988 Hotline Proposal Does Not assessment of the state’s emergency response Account for Potential Federal Funding capacity and strategic plan for how to enhance that While the Governor’s 988 hotline proposal capacity. Specifically, we find that the following appears necessary as the system’s implementation proposals appear reasonable: is federally required, the proposal does not account • CDAA Augmentation. The level of funding for potential federal funding available for this for this program is adjusted annually based purpose through the federal American Rescue Plan on projections of reimbursement requests for Act that was enacted in March 2021. These federal recent disasters. We find that the $114 million funds could reduce, or potentially replace, the need augmentation proposed for 2022-23 appears for state General Fund support. The administration to be reasonable given recent disasters. indicates it is currently looking into the availability Moreover, we find the $37.4 million ongoing of federal funds to support the implementation of component of the augmentation to be the 988 hotline. appropriate as it better aligns the program’s base budget with the actual amount allocated Some Proposals Difficult to through CDAA in recent years. Assess in the Absence of Strategic Plan • County Emergency Plans—Vulnerable Some of the Governor’s proposals are difficult Populations. This proposal appears to assess in the absence of a strategic plan reasonable for two reasons. First, the for enhancing emergency response capacity. proposal would provide adequate resources This is because it is not possible to understand for OES to complete statutorily required how the proposals fit into the state’s existing workload. Furthermore, the review of plans emergency response capacity, address gaps or www.lao.ca.gov 9 2022-23 BUDGET Analysis of Governor’s Office of Emergency Services (OES) Wildfire Proposals In our recent briefs, The 2022-23 Budget: Wildfire and Forest Resilience Package and The 2022-23 Budget: Wildfire Response Proposals, we provide our assessment and recommendations on the Governor’s proposals for OES related to wildfires. Below, we summarize our analysis of these proposals, the details of which were described earlier in this brief. Mutual Aid Fire Fleet Enhancement. OES mutual aid fire engines are an important part of the state’s ability to access additional capacity during peak wildfire season and large wildfires. However, at this time, it is unclear how the proposed $11 million ongoing would be used. Specifically, it is unclear to what extent the funding would be used by OES to replace existing fire engines more frequently or provide a more robust maintenance program for its engines. Without this type of basic information, it is impossible for the Legislature to evaluate what specific improvements to fire response capacity would be expected from this proposal and whether they would justify the additional costs. Accordingly, we recommend withholding action pending receipt of such information. Fire Integrated Real-Time Intelligence System (FIRIS). Since 2019, the state has been piloting the use of FIRIS—a system that provides real-time aerial data and predictive models to inform the state’s response to wildfires and other hazards—through an agreement with Orange County. Under this proposal, OES and the California Department of Forestry and Fire Protection (CalFire) would take over FIRIS from Orange County on a permanent basis and expand the level of service provided to include two planes providing 24-hour coverage each at a total cost of roughly $30 million annually. (The Orange County pilot included two planes, one that provided 24-hour coverage and one that provided 12-hour coverage.) However, it is unclear whether this additional level of service is necessary. This is because the departments have not provided sufficient justification for why the current level of service is insufficient, particularly given that they have access to similar aerial data and capabilities through a partnership with the California Military Department. Furthermore, while the departments did not evaluate what the cost would be to continue the existing level of service, we would expect it to be significantly lower than $30 million per year given that the proposal notes that it would cost $17 million for Orange County to continue providing the existing level of service. (According to OES, Orange County is not interested in continuing to manage this program.) We recommend the Legislature direct OES and CalFire to report at budget hearings on an alternative to their proposal that would fund FIRIS at the current level of service, rather than the higher level of service proposed. This would provide the Legislature with important information on its options for continuing this program and allow it to assess whether there is another approach that would meet the state’s needs at a significantly lower cost. Home Hardening Retrofit Program. At the time this brief was being prepared, only 12 percent of the $25 million provided in April 2021 to initiate the home hardening retrofit program has been allocated. Given how little of the original funding has been allocated, the Legislature will want consider whether OES and CalFire have capacity to allocate the proposed funds ($13 million in 2022-23) in a timely manner. We recommend the Legislature consider this proposal in the context of its overall priorities for addressing wildfire risks and defer action until the spring to allow more time to assess additional information on the other proposals in the Governor’s wildfire resilience package as many of them lack sufficient details. 10 LEGISLATIVE ANALYST’S OFFICE 2022-23 BUDGET weaknesses in existing capacity, or what goals The proposal also highlights the need for a strategic for enhanced capacity they are intended to plan in other ways. Because OES did not have a achieve—making it unclear whether the proposals strategic plan that included an assessment of how are justified and reflect the most cost-effective its response capacity is distributed throughout the approach for enhancing the state’s emergency state, it had not identified a critical gap in geographic response capacity. coverage near the international border in the San California Earthquake Early Warning System. Diego region. OES only identified this issue when it The Governor proposes to make permanent the became more acute during the initial response to the level of funding that has been provided previously COVID-19 pandemic as it took staff from the Southern on a one-time basis to support the development of Regional Office in Orange County a significant amount the California Earthquake Early Warning System. of time to commute to San Diego. Accordingly, OES While the system is potentially promising, without was forced to quickly establish a new satellite office a strategic plan, it is unclear how the current while also managing COVID-19 emergency response approach to building out the system would activities. While the San Diego satellite office appears align with overall emergency response goals. needed, the process used to create the office forced For example, it is unclear whether the current OES to redirect staff who could have otherwise been efforts to expand the system would provide the engaged in direct emergency response activities. highest-priority benefits or whether alternative Logistics Management—Facilities and strategies, such as increased funding for building Infrastructure Management Staffing. Similar to seismic retrofits, would better mitigate the potential the support capacity proposal described above, harm from earthquakes. it is unclear why the prior augmentations provided Support Capacity. As previously mentioned, to the OES logistics division were insufficient and this proposal would provide additional staffing whether the requested augmentation achieves the for multiple OES functions, including additional total level of resources necessary to support the executive positions; administration, finance, legal, state’s emergency response goals. For example, the and audits staff; as well as staff to augment certain administration indicates that the proposed funding is programs including emergency response, planning, needed to allow the logistics division to set up multiple and preparedness programs. This request is staging areas in the case of multiple large-scale similar to augmentations provided to OES in recent emergencies. While this seems reasonable, without years. Without a strategic plan it is unclear why the a strategic plan, it is unclear whether this proposal resources previously provided were insufficient and supports the number of staging areas that would align what the total level of resources that OES would with goals for state emergency response capacity and need to effectively support the state’s emergency whether other OES emergency response functions response goals is. Such information would assist have the capacity needed to utilize the multiple the Legislature in determining the extent to which staging areas that would be set up by these additional OES needs additional staff. logistics staff. Enhanced Partnerships for Addressing Search and Rescue Teams and Training. We find Heightened Risks—Regional Office Staffing. that this proposal is difficult to assess in the absence As previously mentioned, this proposal would of a strategic plan. First, the proposal would replace (1) increase staffing across all three OES regional an existing state-local partnership with a state-run offices and (2) support staffing and lease costs program at a significantly higher cost. Specifically, for a new Southern Region satellite office in San under the proposal, OES would spend $2 million more Diego that OES recently started with emergency annually to provide the training. It is unclear whether COVID-19 response funding. While increasing and to what extent this approach would provide an regional office staffing could be reasonable, increased level of service. To the extent the proposal without a strategic plan, it is difficult to assess would support an increased level of service, without whether it is necessary given the state’s existing a strategic plan, it is unclear if such an increase response capacity. is necessary. www.lao.ca.gov 11 2022-23 BUDGET Second, for the $1 million annually for local urban However, the Governor’s budget already includes search and rescue teams, it is unclear whether the ability to augment funding for departments for providing funding for these local teams should be a unexpected costs or emergencies. Specifically, state responsibility. For example, it is unclear whether Item 9840-001-0001 includes $40 million to the funding would simply replace local funding or augment departments’ General Fund budgets increase the capacity of these teams. Moreover, and Item 9840-001-0494 includes $15 million without a strategic plan that outlines a long-term to augment departments’ special fund budgets strategy on the use of local search and rescue teams, upon approval of the Director of Finance and it is unclear if any increase in capacity is necessary. no sooner than 30 days after notification to the Third, the proposal includes funding to align Joint Legislative Budget Committee. We also reimbursements provided to local governments note that the proposed level of funding for Item for their cost of participating in mobile training 9840-001-0001 is $20 million higher in 2022-23 exercises for search and rescue teams with their than the amount included in the 2021-22 budget. current actual costs. Adjusting the reimbursement Second, the Governor’s proposal would allow rate to better reflect current costs appears the administration to transfer the $10 million from reasonable. However, without a strategic plan, it OES to other departments without any legislative is unclear whether the number of mobile training notification. Under the proposal, OES would only be exercises funded would align with the state’s required to report by March 1, 2024 on the use of capacity goals. the funds. Thus, such transfers would be subject to considerably less legislative oversight than required Some Proposals Are Not Justified by the 9840 items. We find that two of the Governor’s proposals are Military Equipment Verification Not Justified. not justified. This is because they are unnecessary We find the request for two positions to verify and raise other concerns, as we describe below. whether local law enforcement agencies have Mission-Tasking Funding Duplicative of approval of their local governing body before Existing Authority, Circumvents Legislative accepting military equipment to be unnecessary. Oversight. We find the requested $10 million for First, Chapter 406 does not require OES to verify mission-tasking funding to be unnecessary for two whether local law enforcement agencies have reasons. First, the proposed funding would allow approval of their local governing bodies to accept OES to reimburse departments for costs they incur military equipment. Furthermore, even if the due to being mission-tasked when other emergency Legislature wanted OES to perform this task, it response funding sources are unavailable, such as is unclear why OES cannot absorb this workload when a state of emergency has not been declared. within its existing resources. RECOMMENDATIONS Despite the lack of a strategic plan for enhancing Require Development of Strategic Plan the state’s emergency response capacity, the and Review of OES Base Budget Legislature will need to take actions on the Require Administration to Develop Strategic Governor’s various proposals. In order to ensure Plan for Enhancing Emergency Response the Legislature has better information to make Capacity. To ensure the state is prepared decisions in the future, we recommend below to address a potential ongoing increase in requiring the administration to develop a strategic emergencies in an efficient and effective manner, plan and conduct a review of the OES base budget. we recommend that the Legislature require the We also make recommendations regarding the administration to develop a strategic plan for Governor’s specific budget proposals for OES. enhancing emergency response capacity and 12 LEGISLATIVE ANALYST’S OFFICE 2022-23 BUDGET submit this plan to the Legislature no later than uses, and the extent to which recent augmentations January 1, 2024. The plan should include an have already provided the necessary resources. assessment of existing capacity and identify This base budget review, coupled with the strategic specific goals and objectives for emergency plan, would provide the Legislature the information response capacity and capabilities, as well as the it needs to determine how to allocate funds to weaknesses or gaps in the state’s current ability enhance the state’s emergency response capacity to meet those goals and objectives. This includes in the most efficient and effective manner. We note identifying the overall staffing needs of OES and that the Department of Finance has a unit that outlining a strategy for meeting these needs. conducts such budget reviews. One option that While there would be benefit in having this the Legislature could consider is requesting this information made available in a single strategic unit to review the OES budget, depending on how plan, the Legislature could also consider having such a review would fit into the timing and schedule the administration release elements of the plan as of other budget reviews that the Legislature they are completed. For example, the Legislature has requested. could require OES to identify state response goals Approve Proposals and existing response capacity by January 1, 2023. Under this option, the identification of gaps or That Appear Reasonable weaknesses in current response capacity and the Some of the budget proposals for OES assessment of the level of staffing necessary to appear reasonable and the rationale for these support both base workload and the emergency augmentations are unlikely to be changed by our response capacity goals could be provided by recommended strategic plan. Accordingly, we January 1, 2024. recommend the Legislature approve the following Ideally, OES would have the ability to develop proposals: (1) review of county emergency the strategic plan we recommend. Establishing plans consistent with Chapter 744, (2) CDAA emergency response goals and assessing current augmentation, and (3) the three capital outlay capabilities are integral to the core mission of facilities proposals and the two related facilities OES. However, OES has been unable to conduct support proposals. a similar, more narrowly scoped assessment of Request More Information on wildfire response capacity and goals required as part of the 2019-20 budget package. Given 988 Hotline Proposal this, we recommend that the Legislature ask We recommend that the Legislature direct OES during budget hearings whether it is able to OES to report on the administration’s efforts to develop a strategic plan for enhancing emergency secure federal funds for implementation of the response capacity before tasking OES with doing 988 hotline. This should include the level of federal so. This would also provide OES the opportunity to funding the state has requested and the potential indicate what resources it might need to develop timing of receiving federal funds if they are awarded the strategic plan. To the extent OES is unable to to the state. Until the receipt and review of such commit to developing a plan, the Legislature could information, we withhold recommendation the ask OES to recommend alternative entities that Governor’s 988 hotline implementation proposal. would be better suited to develop the plan. Modify Certain Proposals to Require Review of Base Budget After Approve Limited-Term Funding Completion of Strategic Plan. We recommend that the Legislature also require that the OES base Several of the budget proposals are difficult to budget be reviewed after the completion of the assess without a strategic plan and an assessment strategic plan. Such a review would determine the of the base budget for OES. However, the extent to which existing resources are meeting Legislature will still need to take action on these the goals in the strategic plan, whether some proposals. In light of the likelihood that OES will resources should be reallocated to higher-priority need some augmentations in order to enhance www.lao.ca.gov 13 2022-23 BUDGET the state’s emergency response capacity, we However, for the search and rescue teams and recommend approving these proposals on a training proposal, absent justification for increasing three-year, limited-term basis. This will give the the cost of training, we recommend providing only administration time to complete a strategic plan the funding for the local search and rescue teams for enhancing emergency response capacity and and mobile training exercise reimbursements. a review of the OES base budget. The continued Reject Proposals Not Justified need for these augmentations could then be considered in three years in the context of a more We recommend that the Legislature reject the strategic approach to enhancing emergency mission-tasking appropriation proposal given response capacity. Specifically, we recommend that there is an existing process for augmenting providing three-year, limited-term funding for the departments’ budgets for such expenses that (1) California Earthquake Early Warning System, would provide greater legislative oversight. We also (2) support capacity, (3) enhanced partnerships recommend rejecting the military equipment for addressing heightened risks (regional office verification proposal given that OES is not required staffing), (4) logistics management, and (5) search to complete the identified workload and could likely and rescue teams and training proposals. absorb the cost of doing so. 14 LEGISLATIVE ANALYST’S OFFICE 2022-23 BUDGET www.lao.ca.gov 15 2022-23 BUDGET LAO PUBLICATIONS This report was prepared by Jessica Peters, and reviewed by Drew Soderborg and Anthony Simbol. 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, California 95814. 16 LEGISLATIVE ANALYST’S OFFICE