Supplemental Report of the 2024-25 Budget Act

TO: AGENCY SECRETARIES DEPARTMENT HEADS BOARDS AND COMMISSIONS The Supplemental Report of the 2024-25 Budget Act contains statements of legislative intent that were adopted during deliberations on the 2024-25 budget package. Please distribute your responses to the supplemental report, and any other report or document you are required to submit, to the Joint Legislative Budget Committee (JLBC), as follows: An Electronic Copy of the Report and Transmittal Letter to Each of the Following: • Joint Legislative Budget Committee: Hans.Hemann@sen.ca.gov for distribution to the JLBC Members. Hon. Scott Wiener, Chair, Joint Legislative Budget Committee 1020 N Street, Room 553, Sacramento, CA 95814 • Legislative Analyst's Office: LAO.Secretary@lao.ca.gov 925 L Street, Suite 1000, Sacramento, CA 95814 • Office of the Chief Clerk of the Assembly: Agency.Reports@asm.ca.gov Ms. Sue Parker, Chief Clerk of the Assembly Room 3196, State Capitol, Sacramento, CA 95814 • Secretary of the Senate: Senate.AgencyReports@sen.ca.gov Ms. Erika Contreras, Secretary of the Senate State Capitol, Room 307 Sacramento, CA 95814 • Legislative Counsel Bureau: Agency.Reports@lc.ca.gov Office of Legislative Counsel Indexing Division 925 L Street, Suite 1105, Sacramento, CA 95814-3703 In the report, as well as in your transmittal letter to Senator Wiener, please cite the 11-digit budget item number(s) and the budget year or other statutory reference to which the response relates. If you have any questions, you may contact the Legislative Analyst’s Office at (916) 445-4656. Supplemental Report of the 2024-25 Budget Act Containing Statements of Intent And Requests for Studies Adopted by the Legislature Compiled by the L E G I S L A T I V E A N A L Y S T ’ S O F F I C E September 2024 SUPPLEMENTAL REPORT OF THE 2024-25 BUDGET ACT T C able of onTenTs Health and Human Services Item 4260-101-0001—Department of Health Care Services ......................................................3 Item 4265-001-0001—Department of Public Health ..................................................................3 Item 5175-001-0001—Department of Child Support Services ...................................................3 Item 5180-001-0001—Department of Social Services ...............................................................5 Items 5180-101-0001 and 5180-101-0890—Department of Social Services .............................6 Education Item 6440-001-0001—University of California ..........................................................................7 Item 6610-001-0001—California State University ......................................................................7 Item 6870-001-0001—Board of Governors of the California Community Colleges ...................8 LEGISLATIVE ANALYST’S OFFICE 2 SUPPLEMENTAL REPORT OF THE 2024-25 BUDGET ACT H H s ealTH and uman erviCes Item 4260-101-0001—Department of Health Care Services 1. Lesbian, Gay, Bisexual, and Transgender Disparities Reduction Act Implementation. On or before May 14, 2025, and on or before May 14th annually thereafter until implementation of required changes to demographic data collection efforts have been completed, the Department of Health Care Services shall provide an update to the Assembly Budget Subcommittee No. 1 on Health and the Senate Budget and Fiscal Review Subcommittee No. 3 on Health and Human Services, during regularly scheduled subcommittee hearings, regarding the status of implementation of Chapter 832 of 2023 (AB 1163, L. Rivas). This update shall include, but not be limited to, the following information: • The existing data collection efforts identified by the department that are subject to additional collection of voluntary, self-identifying information pertaining to intersexuality, as required by AB 1163. • The status of implementation of the additional collection of voluntary, self-identifying information pertaining to intersexuality to these existing data collection efforts. • The existence of any statutory, regulatory, technological, or operational barriers to adherence to the requirements of AB 1163. Item 4265-001-0001—Department of Public Health 1. Lesbian, Gay, Bisexual, and Transgender Disparities Reduction Act Implementation. On or before May 14, 2025, and on or before May 14th annually thereafter until implementation of required changes to demographic data collection efforts have been completed, the California Department of Public Health shall provide an update to the Assembly Budget Subcommittee No. 1 on Health and the Senate Budget and Fiscal Review Subcommittee No. 3 on Health and Human Services, during regularly scheduled subcommittee hearings, regarding the status of implementation of Chapter 832 of 2023 (AB 1163, L. Rivas). This update shall include, but not be limited to, the following information: • The existing data collection efforts identified by the department that are subject to additional collection of voluntary, self-identifying information pertaining to intersexuality, as required by AB 1163. • The status of implementation of the additional collection of voluntary, self-identifying information pertaining to intersexuality to these existing data collection efforts. • The existence of any statutory, regulatory, technological, or operational barriers to adherence to the requirements of AB 1163. Item 5175-001-0001—Department of Child Support Services 1. Full Pass-Through of Child Support to Families Currently Receiving California Work Opportunity and Responsibility to Kids (CalWORKs). On or before January 10, 2026, the Department of Child Support Services (DCSS) shall submit a report to the relevant budget LEGISLATIVE ANALYST’S OFFICE 3 SUPPLEMENTAL REPORT OF THE 2024-25 BUDGET ACT subcommittees and policy committees of each house of the Legislature on its continued efforts to research and make necessary technological changes that will facilitate the implementation of full pass-through of child support payments collected to families currently receiving CalWORKs, excluding families exempt from the child support enforcement requirements (hereinafter CalWORKs), and provide available data on families currently receiving CalWORKs from whom DCSS is collecting or seeking to collect child support payments. The Legislature intends for DCSS to provide sufficient data to allow the Legislature to evaluate the impact of enacting full pass-through of child support payments to families currently receiving CalWORKs, as well as evaluate options for how full pass-through may be implemented. The California Department of Social Services will provide any information necessary to DCSS to enable this reporting. The report shall include written summaries and data on the following issues: • A summary of challenges and successes from implementation of full pass-through of child support payments collected to families formerly receiving CalWORKs that are relevant to the implementation of full pass-through of child support payments collected to families currently receiving CalWORKs. • A summary of available data about families currently receiving CalWORKs from whom DCSS is collecting or seeking to collect child support payments. This shall include data intended to assist the Legislature in evaluating the impact of enacting full pass-through of child support payments to families currently receiving CalWORKs. – Average child support order amount owed to families currently receiving CalWORKs, excluding zero orders. – Percent of zero order cases for families currently receiving CalWORKs. – Total and average child support collections for families currently receiving CalWORKs by month for the time period July 1, 2024 through June 30, 2025. – Total and average child support collections passed through to families currently receiving CalWORKs by month for the time period July 1, 2024 through June 30, 2025. – Total and average child support collections retained as recoupment by month for the time period July 1, 2024 through June 30, 2025. – To the extent data are available, the report will include aggregate anonymized demographic information for custodial and noncustodial parents (for example, managing county, age, race, number of children in the child support case, and available information on household income). • A description of the administrative, infrastructure, and technology system changes that would be necessary to implement the full pass-through of child support payments to families currently receiving CalWORKs, including a fiscal estimate of any one-time or ongoing General Fund and total fund costs for all fiscal years where costs are anticipated and an estimate of the anticipated time line to implement those changes should the Legislature appropriate the necessary funding in a subsequent budget act. DCSS shall convene a series of meetings between September 2024 and December 2025 to solicit feedback and input from interested stakeholders about full pass-through of child support payments to families currently receiving CalWORKs. Stakeholders consulted shall include, but not be limited to, representatives of local child support agencies, currently and formerly assisted LEGISLATIVE ANALYST’S OFFICE 4 SUPPLEMENTAL REPORT OF THE 2024-25 BUDGET ACT families, advocate representatives, labor organizations, representatives of family courts, and legislative staff. To the extent information is readily available, DCSS shall provide subsequent data updates as requested by budget subcommittee and policy committee staff, particularly for hearing agendas and in testimony during the 2026-27 budget subcommittee process. Item 5180-001-0001—Department of Social Services 1. CalFresh Higher Education Data Sharing Agreement. On or before February 1, 2025, the Department of Social Services, in consultation with the California Community Colleges, the University of California, the California State University, and the California Student Aid Commission, shall report to the Legislature on efforts to create a statewide data-sharing agreement that increases access to data that would aid efforts to increase eligible California college students’ use of the CalFresh program. The report shall provide an update on progress toward creating an agreement that is aligned with federal Supplemental Nutrition Assistance Program disclosure regulations and could help identify new, continuing, and returning college students who are potentially eligible for CalFresh benefits and allow campuses to provide support services to students who have unsuccessfully applied to the program. The report shall include barriers, costs, or other issues related to developing a statewide data-sharing agreement. 2. Statewide Automated Welfare System (CalSAWS) Update and Responses to Questions From Advocates. Pursuant to the Supplemental Report of the 2023-24 Budget Act regarding the “California Statewide Automated Welfare System (CalSAWS) Stakeholder Engagement” and the sentence at the end of the section of that reporting language that reads, “A final updated report may be requested by budget subcommittee and policy committee staff at the end of fiscal year 2023-24,” the Legislature is requesting and the administration has agreed to provide the final report on issues raised by CalSAWS advocates and stakeholders as specified in that supplemental reporting section, which shall be due to the Legislature and stakeholders by January 1, 2025. The agreement is for the report to include thorough responses to the questions and issues raised by the CalSAWS Advocates Group in March 2024. In addition to being circulated to interested parties in the Legislature and Legislative Analyst’s Office, as well to the involved advocates and stakeholders, including county representatives, the report shall be posted to the Department of Social Services’ (DSS’) public internet website. 3. Electronic Benefit Transfer (EBT) Theft and Updates on Implementation of Prior Funding Investments. DSS shall provide details and an overview regarding the schedule for EBT card replacement rollout and updates on how implementation is minimizing risk for consumers, including maintaining full benefits, through completion of full rollout. This information shall include details on funding requirements for both EBT implementation and benefit replacement, including the interaction with the availability of federal funds. This information shall include the number of households impacted by EBT theft and the fiscal impact of EBT theft to the state. This information shall be provided in writing to legislative staff and the Legislative Analyst’s Office on at least a monthly basis, with the first update provided by September 30, 2024. The information shall be provided by the department to stakeholders upon request. 4. In-Home Supportive Services (IHSS) Career Pathways Program Spending Updates. DSS shall provide information on the amount of funds expended and the remaining unspent LEGISLATIVE ANALYST’S OFFICE 5 SUPPLEMENTAL REPORT OF THE 2024-25 BUDGET ACT funds for the IHSS Career Pathways Program on a monthly basis starting September 3, 2024 until the funds are fully expended. This information shall include updated outcome information on the number and trends of providers completing classes and the number and trends of claims for incentive payments. This information shall be provided in writing to legislative staff and the Legislative Analyst’s Office. The information shall be provided by the department to stakeholders upon request. Items 5180-101-0001 and 5180-101-0890—Department of Social Services 1. Child Care and Development Program Fiscal Reporting. On or before March 1, 2025, and every year thereafter, the Department of Social Services shall provide the fiscal committees of the Legislature, the Legislative Analyst’s Office, and the Department of Finance with estimates of (1) the amount of child care and development funding appropriated in the prior or current fiscal year that may go unspent by the end of the current fiscal year and (2) what amount of unspent funds cannot be re-appropriated and would revert back to the state or federal government absent adjustments to expenditures or contracts. These estimates shall include funding yet to be allocated or committed into contracts with child care and development agencies, as well as estimates of allocated or contracted funds that are likely to go unspent by the end of the current fiscal year. The department shall provide these estimates disaggregated by fiscal year; program; and fund source, including, but not limited to, General Fund, federal Child Care and Development Fund, and Proposition 64 funds. LEGISLATIVE ANALYST’S OFFICE 6 SUPPLEMENTAL REPORT OF THE 2024-25 BUDGET ACT e duCaTion Item 6440-001-0001—University of California 1. Costs Associated With Governor’s Compact. As part of the progress report due by November 30, 2024 on its multiyear compact with the Governor, the University of California (UC) shall report on the costs associated with the goals established in that compact. The university shall report through the end of the compact period on (a) estimated costs for each overarching goal and (b) total estimated new state General Fund and University funds available to campuses. 2. Chula Vista Program Opportunities. In order to expand higher education access to an underserved area, it is the intent of the Legislature that UC work with the state and local partners to expand higher education programs to the UniverCity project in Chula Vista and/or the University Center at Southwestern College. On or before February 1, 2025, UC shall report to the Legislature on opportunities for programming at the Chula Vista or Southwestern College site. The report should include, but not be limited to, information on potential bachelor’s degree or other programs, including intersegmental programs, that could be offered at the site; the current student success metrics associated with the programs to be offered; and the costs and other issues associated with this expansion, including a time line for program opening and potential enrollment levels. The report also should identify new or existing programs by universities within the closest proximity to the Chula Vista or Southwestern College site. UC may use the December 2023 report Planning a Thriving Ecosystem of Higher Education in South County: A Workforce and Education Needs Assessment as a reference in the report. Item 6610-001-0001—California State University 1. Costs Associated With Governor’s Compact. As part of the progress report due by November 30, 2024 on its multiyear compact with the Governor, the California State University (CSU) shall report on the costs associated with the goals established in that compact. The university shall report through the end of the compact period on (a) estimated costs for each overarching goal and (b) total estimated new state General Fund and University funds available to campuses. 2. Chula Vista Program Opportunities. In order to expand higher education access to an underserved area, it is the intent of the Legislature that CSU work with the state and local partners to expand higher education programs to the UniverCity project in Chula Vista and/ or the University Center at Southwestern College. On or before February 1, 2025, CSU shall report to the Legislature on opportunities for programming at the Chula Vista or Southwestern College site. The report should include, but not be limited to, information on potential bachelor’s degree or other programs, including intersegmental programs, that could be offered at the site; the current student success metrics associated with the programs to be offered; and the costs and other issues associated with this expansion, including a time line for program opening and potential enrollment levels. The report also should identify new or existing programs by universities within the closest proximity to the Chula Vista or Southwestern College site. CSU may use the December 2023 report Planning a Thriving Ecosystem of Higher Education in South County: A Workforce and Education Needs Assessment as a reference in the report. LEGISLATIVE ANALYST’S OFFICE 7 SUPPLEMENTAL REPORT OF THE 2024-25 BUDGET ACT Item 6870-001-0001—Board of Governors of the California Community Colleges 1. Student Centered Funding Formula (SCFF). On or before November 1, 2024, the California Community Colleges Chancellor’s Office shall submit a report to the Assembly Budget Subcommittee No. 3 on Education Finance and the Senate Budget and Fiscal Review Subcommittee No. 1 on Education containing the following information: • Based on Second Principal (P2) apportionments for 2023-24, a breakout by district of (a) total computational revenue (TCR) under SCFF, (b) funded full-time equivalent (FTE) students, and (c) actual (reported) FTE students. • Based on P2 data for 2023-24, the forecasted TCR by district for 2024-25, 2025-26, 2026-27, and 2027-28—with how each district would be funded each year (SCFF calculated revenue, stability, hold harmless, or basic aid)—under each of the following scenarios: – For Scenario 1, assume a 1.07 percent cost-of-living adjustment (COLA) in 2024-25, with a 3 percent COLA in the out-years, and enrollment increases in each district of 0 percent in 2024-25 and each subsequent year. – For Scenario 2, assume the same COLA percentages as in Scenario 1 but with annual enrollment increases in each district of 2 percent. • For each of the eight performance measures in the Student Success component of SCFF, the number of outcomes by all students by district for 2017-18 and 2022-23. Also provide the number of outcomes by Pell Grant recipients. For 2017-18 and 2022-23, also provide the number of resident FTE students. • Summer FTE resident student enrollment, if the summer term was treated as the leading term in a fiscal year, by district for 2018 through 2024 and how these amounts compare with summer FTE students claimed by each district on their apportionment attendance (“320”) reports for 2018-19 through 2023-24. – Based on recent summer enrollment patterns, projections for how summer enrollment likely would be reported for the purposes of calculating apportionment funding in the 2024-25 fiscal year and how that would impact the calculation of apportionment funding in 2025-26. – Based on recent summer enrollment patterns, projections for how calculations of apportionment funding changes in 2025-26 if the summer term was treated as the leading term in a fiscal year. • Based on P2 data for 2023-24, projected TCR by district for 2024-25, 2025-26, and 2026-27 if the supplemental allocation was adjusted by multiplying the allocation by an index based on a living wage calculator, such as the MIT Living Wage Calculator or Insight Center’s Family Needs Calculator, with the index calculated by dividing the estimated living wage for one wage earner with two dependents in the primary county of the community college district by the county with the lowest estimated living wage. In developing projections, assume one scenario with no growth in supplemental headcount, one scenario with a 1 percent increase in supplemental headcount, and one scenario with a 1 percent decrease in supplemental headcount. LEGISLATIVE ANALYST’S OFFICE 8