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Strengthening Public-Philanthropic Partnerships

Little Hoover Commission · 288 · 2025-06-30

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Strengthening Public-Philanthropic Partnerships Report #288 | May 2025 Milton Marks Commission on California State Government Organization and Economy www.lhc.ca.gov LITTLE HOOVER COMMISSION Dedicated to Promoting Economy and Pedro Nava Efficiency in California State Government Chair The Little Hoover Commission, formally known as the Milton Anthony Cannella Marks “Little Hoover” Commission on California State Government Vice Chair Organization and Economy, is an independent state oversight agency. Dion Aroner David Beier By statute, the Commission is a bipartisan board composed of five public members appointed by the governor, four public Senator Christopher Cabaldon members appointed by the Legislature, two senators and Assemblymember Phillip Chen two assemblymembers. Gil Garcetti José Atilio Hernández* In creating the Commission in 1962, the Legislature declared its purpose: Jason Johnson Gayle Miller ...to secure assistance for the Governor and itself in Senator Roger Niello promoting economy, efficiency and improved services in the Assemblymember Liz Ortega transaction of the public business in the various departments, Janna Sidley* agencies and instrumentalities of the executive branch of the state government, and in making the operation of all *Served on study subcommittee state departments, agencies and instrumentalities, and all expenditures of public funds, more directly responsive to the wishes of the people as expressed by their elected COMMISSION STAFF representatives... Ethan Rarick Executive Director The Commission fulfills this charge by listening to the public, consulting with the experts and conferring with the wise. In the Tamar Foster course of its investigations, the Commission typically empanels Deputy Executive Director advisory committees, conducts public hearings and visits Krystal Beckham government operations in action. Daniel Harris-McCoy Ashley Hurley Its conclusions are submitted to the Governor and the Legislature for their consideration. Recommendations often take the form Shara McAlister of legislation, which the Commission supports through the legislative process. Contacting the Commission All correspondence should be addressed to the Commission Office: Little Hoover Commission 925 L Street, Suite 805, Sacramento, CA 95814 (916) 445-2125 | LittleHoover@lhc.ca.gov This report is available from the Commission’s website at www.lhc.ca.gov. Letter from the Chair May 29, 2025 The Honorable Gavin Newsom Governor of California The Honorable Mike McGuire The Honorable Brian Jones President pro Tempore of the Senate Senate Minority Leader and members of the Senate The Honorable Robert Rivas The Honorable James Gallagher Speaker of the Assembly Assembly Minority Leader and members of the Assembly DEAR GOVERNOR AND MEMBERS OF THE LEGISLATURE: Partnerships with philanthropic organizations play a key role in California’s efforts to address a wide array of problems. By linking arms with philanthropy, state government can do more to help provide the services that our citizens need. But could the state make those relationships easier and smoother for its philanthropic partners? That is the question that the Commission sought to address when it undertook a study of California’s public-philanthropic partnerships. This report provides part of the answer, focusing on how the state can better partner with philanthropies seeking to help fund public services. Later this year we hope to release a second report in this series, addressing how state government can be a better partner when it provides grants or other funding to philanthropies. In many respects, the story told in this report is a successful one. The state has emphasized public-philanthropic partnerships in recent years, mobilizing nearly $18 billion in combined public and private funding for a variety of causes. Yet we believe more can be done, and thus we make four recommendations aimed at continuing the continuity of public-philanthropic partnerships, coordinate with the Legislature, and collect needed data. The Commission respectfully submits this work and stands ready to assist as the state seeks to improve its working relationship with philanthropic partners. Sincerely, Pedro Nava, Chair Little Hoover Commission STRENGHTENING PUBLIC-PHILANTHROPIC PARTNERSHIPS | 1 Table of Contents EXECUTIVE SUMMARY...........................................................................3 STRENGHTENING PUBLIC-PHILANTHROPIC PARTNERSHIPS......................................................................................5 Public-Philanthropic Partnerships in California...............................................6 The Growth of Public-Philanthropic Partnerships.................................6 MANAGING PUBLIC-PHILANTHROPIC PARTNERSHIPS....................6 ASSESSMENT OF PUBLIC-PHILANTHROPIC PARTNERSHIPS IN CALIFORNIA...........................................................................................8 Trust as a Foundational Element.......................................................................8 Shared Values and Aligned Goals.....................................................................11 Leadership and Institutional Support.............................................................11 Addressing Structural Inequities through Capacity Building.......................12 Leveraging Flexible Resources to Innovate....................................................12 Speed and Nimbleness in Tackling Challenges...............................................12 Limitations of Public-Philanthropic Partnerships.........................................12 OPPORTUNITIES FOR IMPROVING PUBLIC-PHILANTHROPIC PARTNERSHIPS.....................................................................................13 Further Institutionalize Public-Philanthropic Partnerships.........................13 Recommendation 1..................................................................................17 Recommendation 2..................................................................................17 Recommendation 3..................................................................................18 Impact Data —Expand Monitoring & Evaluation...........................................18 Recommendation 4..................................................................................18 SUMMARY OF RECOMMENDATIONS.................................................19 NOTES....................................................................................................20 2 | LITTLE HOOVER COMMISSION Executive Summary The State of California partners with philanthropic improve initiatives over time. Alignment between organizations to address societal problems through public and philanthropic goals ensure that public-philanthropic partnerships. Under Governor partnerships are strategic and focused. Dedicated Gavin Newsom, the state has engaged in 107 liaisons within agencies enable coordination, while partnerships across 27 departments and agencies, philanthropic partners bring flexibility and speed involving more than 250 philanthropic partners. often lacking in traditional government operations. These collaborations have mobilized a combined Public-philanthropic partnerships are not a substitute $17.8 billion – $13.6 billion in state funds and $4.2 for sustainable public funding for core government billion from philanthropic organizations – to support responsibilities, however. They cannot resolve a range of initiatives, including disaster relief, fundamental policy failures or fill chronic fiscal gaps. workforce training, reentry support for incarcerated Rather, they should be seen as complementary tools individuals, and reproductive healthcare.1 – valuable for piloting programs, fostering innovation, California employs several models of collaboration and accelerating responses to emerging challenges, in its public-philanthropic partnerships. Some but ultimately dependent on government action for initiatives rely on direct funding, where philanthropic long-term implementation and scale. organizations contribute money directly to public To strengthen and sustain California’s public- coffers. Others take the form of technical assistance, philanthropic infrastructure, the Little Hoover where foundations provide expertise and capacity- makes four recommendations. These are intended building resources. In co-funding partnerships, public to ensure the continuity of public-philanthropic and philanthropic actors pool resources to jointly partnerships across administrations and at the support programs, while in coordinated partnerships, agency level, facilitate coordination with the each partner funds complementary projects aligned Legislature, and collect the data necessary to ensure with a shared goal. the state and its partners are creating the impact Structurally, California’s public-philanthropic they desire, provide an opportunity to course correct partnerships are led by the Office of the Governor. if not, and demonstrate to Californians the value of Previously, the senior advisor for social innovation these investments. managed state partnerships; more recently, Recommendations the partnership portfolio has transferred to the senior advisor for civic engagement and 1. The State of California should fund and make strategic partnerships. There also are designated permanent within the executive branch a senior philanthropic-partnership liaisons at 10 state advisor position responsible for public-philanthropic departments and agencies. All of these liaisons are partnerships. senior staff members who hold leadership positions within the agency. a.) As part of their responsibilities, this person should liaise with the Attorney General’s Office Several factors contribute to the success of these on messaging with newly-formed foundations initiatives. Leadership from the Governor’s Office to ensure they know they can work with signals these partnerships are a priority and government. ensures buy-in across state government. Trust and transparent communication form the basis for collaboration, allowing partners to adjust and STRENGHTENING PUBLIC-PHILANTHROPIC PARTNERSHIPS | 3 2. The State of California should continue its efforts to establish a partnership liaison in major departments and agencies. 3. The state legislature should create a centralized point of reference on public-philanthropic partnerships, both to communicate with the philanthropic community and to communicate with the administration. 4. The State of California should create a formal monitoring and evaluation and reporting process located outside of the Office of the Governor for public-philanthropic partnerships. a) As part of this process, the state should collect demographic data on which Californians are benefiting from the partnership. b) Additionally, the state should study the ways in which outside organizations partner with the state to see if some models lead to greater efficiencies and/or impact than others. California’s partnerships demonstrate the power of collaboration between government and philanthropy to promote innovation and equity. By institutionalizing the factors that make partnerships successful, expanding infrastructure, and embedding data-driven accountability into its partnerships, the state can ensure they continue to thrive and evolve in service of all Californians. 4 | LITTLE HOOVER COMMISSION Strengthening Public-Philanthropic Partnerships Partnerships between state government and The Little Hoover Commission held hearings philanthropies have played an increasingly important to assess this work and recommend potential role in delivering services to Californians. These improvements to provide even better services. partnerships have, among other things, helped to Building upon the testimony the Commission provide disaster relief, job training, and various received, this report examines the critical role that services for people getting out of prison. Governor California’s public-philanthropic collaborations play in Gavin Newsom has prioritized such partnerships enhancing public policy effectiveness and designing during his tenure, starting with creating a cabinet- responses to the challenges faced by Californians. level position to facilitate this work. Since Newsom California has invested in the infrastructure took office in 2019, the state has engaged in 107 necessary for effective collaboration, and, based partnerships among 27 different state agencies upon the success of initiatives ranging from financial and departments with more than 250 philanthropic relief for undeserved communities to improving food partners. The state has contributed $13.6 billion distribution during crises, California can both build toward these partnerships, while philanthropic upon its own past success and serve as a model for foundations donated another $4.2 billion.2 other states. Types of Public-Philanthropic Partnerships Witness Don J. Howard, CEO and President of the James Irvine Foundation, outlined several types of public-philanthropic partnerships. These include: Direct funding partnerships Coordinated partnerships In direct funding partnerships, In coordinated partnerships, state philanthropic organizations provide entities and philanthropic funders financial support directly to the share an objective, but fund different government agency with which projects to reach that objective. they’re partnering. Co-funding partnerships Technical assistance partnerships In co-funding partnerships, the public In these partnerships, the and philanthropic partners pool their philanthropy helps the public sector resources to increase the scale and build capacity in an area by providing impact of a project, but one entity specialized expertise, training, or does not give money directly to the resources. other entity. Don J. Howard. October 17, 2024. Written testimony to the Commission. Pages 3-5. Available here: https://lhc.ca.gov/wp-content/ uploads/4.-Irvine-Written-testimony-on-public-private-partnerships_Don-J.-Howard-of-The-James-Irvine-Foundation_10.11.24.pdf. STRENGHTENING PUBLIC-PHILANTHROPIC PARTNERSHIPS | 5 Public-Philanthropic complement and enhance governmental initiatives, creating opportunities for innovative, large-scale Partnerships in California impact. Public-philanthropic partnerships are strategic The late 1990s and early 2000s witnessed the advent collaborations between government entities of dedicated institutions to formalize and foster and philanthropic organizations to solve societal public-philanthropic partnerships. At the state level, challenges. They combine the public sector’s for example, Michigan pioneered the Governor's resources, policy reach, and implementation capacity Office of Foundation Liaison in 2003, which was alongside the relative flexibility of philanthropy’s instrumental in brokering partnerships focused on funding and ability to experiment. early childhood development, K-12 education, and THE GROWTH OF PUBLIC-PHILANTHROPIC workforce readiness, among other areas. Discussed PARTNERSHIPS further in the Box found on page 7, this model later The growth of California public-philanthropic spread to California, North Carolina, and Maryland.5 partnerships builds on an evolution that expanded Managing Public-Philanthropic public-philanthropic partnerships across the United States. Large-scale partnerships between Partnerships government and philanthropy in the U.S. can be Public-Philanthropic partnerships have shown the traced to the aftermath of crises. In California, for potential for substantial policy achievements in the example, the civil unrest in Los Angeles in 1992 past few years. These include: spurred the establishment of initiatives like the Los Angeles Urban Funders. This collaborative effort ◊ High Road Training Programs. Partnerships brought together public and private actors to address used more than $5 million in funding to support systemic inequities in low-income communities.3 eight High Road Training Programs. These programs equip workers with the resources, Philanthropy as an institution in the U.S. underwent training, education, and support needed to obtain a dramatic transformation starting in the late 20th higher-paying jobs in environmentally-sustainable century, resulting in an increased prominence industries.6 of public-philanthropic collaboration. This shift coincided with the growth of private giving, which ◊ Guaranteed income pilot programs. The in inflation-adjusted dollars more than doubled Guaranteed Income Pooled Fund helped provide between 1995 and 2018, from $203 billion to $428 monthly stipends for 1,070 people, predominantly billion in 2018. Concurrently, the amount foundations pregnant people and foster youth, via three gave to their supported causes doubled as a relative pilot programs by leveraging $1.4 million in share of total private giving, reaching 18 percent by philanthropic support and $12.1 million in state 2018.4 funding. These pilots test the idea that no-strings- attached stipends to low-income individuals can Philanthropic organizations increasingly adopted prevent and disrupt poverty.7 strategic approaches such as capacity building ◊ Access to reproductive care. Donors have and advocacy for policy reforms, which provided contributed more than $1.5 million to the a framework for collaboration with governmental Reproductive Freedom Alliance, which Governor entities. These strategies were designed not only to Newsom created to facilitate collaboration to directly address socioeconomic issues, but also to preserve access to reproductive care in California 6 | LITTLE HOOVER COMMISSION Case Study: Michigan’s Governor’s Office of Foundation Liaison The Michigan Governor’s Office of Foundation Liaison (OFL) is a groundbreaking initiative established in 2003 to foster collaboration between public and philanthropic sectors to address critical statewide issues. Then-Governor Jennifer Granholm created the office as a response to growing recognition of the need for cross-sector collaboration. Traditionally, public and philanthropic sectors worked independently, often pursuing overlapping goals without coordination. The establishment of the OFL institutionalized the state’s commitment to collaboration by dedicating state-level resources to liaise between the two sectors. The OFL facilitated several collaborations that demonstrated the potential for coordinated efforts between government and philanthropy to achieve significant outcomes. These include: ◊ Early childhood education reforms. The partnership leveraged $10 million in private funding from Michigan-based foundations to secure a federal Race to the Top grant of $51.7 million. This funding supported the state's early childhood programs, focusing on enhancing access and quality for underserved communities. ◊ Workforce development initiatives. The OFL connected private and public stakeholders to create programs addressing skill gaps in Michigan’s labor market. Through public-philanthropic partnerships, the state implemented initiatives that supported job training and retraining for workers in transition, particularly during the economic downturn of 2008-2009. ◊ Health and human services. The OFL helped initiatives aimed at improving health outcomes for Michiganders, particularly in developing evidence-based intervention programs that tackled underlying health disparities in communities. ◊ Engagement with local governments. The OFL helped local governments in Michigan connect with foundation resources that might have been otherwise inaccessible. This support directed enhanced funding and expertise to regional and municipal issues. Michigan’s leaders credit the OFL with several positive outcomes. These include the office’s ability to function as a long-term policy advisor for new executive officer personnel due to its longevity and stability. Another is the dialogue between philanthropy and government officials and being able to bring philanthropy into the creation of initiatives due to a pathway to access the governor’s policy advisors. Sources: Kathleen Kelly Janus. Summer 2024. “Effective government Demands Partnership.” Stanford Social Innovation Review. https://ssir.org/articles/entry/public-private-partnerships-innovation-scale. Page 41. Also, Council of Michigan Foundations. “Governor’s Office of Foundation Liaison.” https://www.michiganfoundations.org/policy/governors-office-foundation-liaison. Accessed February 3, 2025. Also, Johnson Center for Philanthropy at Grand Valley State University. June 2021. “A Case Study of Michigan During Crisis.” https://live-michiganfoundations.pantheonsite.io/resources/case-study-michigan-during-crisis. Accessed February 3, 2025. STRENGHTENING PUBLIC-PHILANTHROPIC PARTNERSHIPS | 7 and 21 other states. As part of this initiative, ◊ California Health and Human Services Agency California has stockpiled medication and worked ◊ California Natural Resources Agency with pharmacies to ensure patients have access ◊ California Office of Emergency Services to it, created an online resource hub, and held a summit to share best practices, among other ◊ California Governor’s Office of Business and actions.8 Economic Development ◊ Wildfire resilience planning. A partnership ◊ Government Operations Agency between the state and Google.org has resulted ◊ Labor and Workforce Development Agency in the philanthropy providing in-kind support to ◊ Office of Community Partnerships and Strategic create a wildfire resilience planning tool. Intended Communications to help regional planners by consolidating the best available science and state and federal data At the agency level, the Labor and Workforce in a free, easy-to-use format, Planscape shows Development Agency (LWDA) serves as a prime the conditions of the landscape across California, example of how partnerships are operationalized. provides visualizations of landscape treatments The LWDA’s partnership liaison, the deputy and how they affect fire conditions, and helps plan secretary for workforce strategy, is responsible for new treatment areas.9 managing relationships with philanthropies, securing funding, and facilitating cross-agency collaboration. The management of these partnerships in California The LWDA has coordinated partnerships with is distributed among senior staff members within philanthropies like the Hilton Foundation to improve agencies, with a focus on embedding collaboration workforce outcomes for youth and communities within the state’s administrative infrastructure. facing economic inequities. These efforts are often Upon taking office in 2019, Governor Gavin Newsom supported through joint funding mechanisms and decided that the facilitation of public-philanthropic collaborative planning with other public agencies, partnerships was sufficiently important that it such as the Employment Development Department should be included in the portfolio of a member of (EDD) and the Department of Rehabilitation.12 the Office of the Governor. From 2019 to February 2025, the senior advisor for social innovation held Assessment of Public- that responsibility. As of this report’s publication, Philanthropic Partnerships in that portfolio has been shifted to the senior California advisor for civic engagement and community partnerships. Under either title, this position serves Witnesses from the philanthropic, public, and as a liaison across state agencies and philanthropic academic sectors told the Commission that California organizations, coordinating collaborative efforts and has much to be proud of with its approach to public- ensuring strategies align with the state’s priorities.10 philanthropic partnerships. Specifically, there are several elements that witnesses testified make these Ten California state departments and agencies have a partnerships successful: senior staff member whose portfolio includes public- philanthropic partnerships:11 TRUST AS A FOUNDATIONAL ELEMENT All witnesses acknowledged trust as a fundamental ◊ Business, Consumer Services, and Housing Agency ingredient to successful public-philanthropic ◊ California Environmental Protection Agency partnerships. “Trust lays the foundation for long-term ◊ California Department of Food and Agriculture impact and continued collaboration,” testified Senior 8 | LITTLE HOOVER COMMISSION Evidence-Based Grantmaking: President Obama’s Office of Social Innovation and Civic Participation President Barack Obama created the Office of Social Innovation and Civic Participation (OSICP) in 2009 to champion innovation as a driver of change, and leverage collaboration between federal agencies and organizations from outside of government to deliver measurable social impacts. It was created within the Domestic Policy Council, and deviated from traditional government initiatives by promoting an evidence-based approach to funding, and collaborating heavily with non-governmental sectors. Instead of relying solely on direct federal funding, the OSICP placed an emphasis on creating partnerships that blended public and private funds to drive innovation. The office’s hallmark was its use of a competitive grant-making model, specifically through the Social Innovation Fund (SIF). This fund focused on identifying successful, evidence-backed programs across fields like education, workforce development, and health, with the goal of scaling and replicating proven concepts nationwide. By requiring grantees to match federal funding dollar-for-dollar with private funding, the office minimized public outlay while achieving results beyond what government could accomplish alone. A meta analysis of programs funded by the Social Innovation Fund primarily during its first year of implementation found that this approach yielded more evidence-based changes than those from a random sample of national grants. Specifically, the SIF grantees had greater growth than those in the national sample in: ◊ Conducting rigorous evaluation of the program. ◊ Using evaluation findings to improve the program. ◊ Using evaluation findings to demonstrate and communicate the effectiveness of the program. ◊ Funding sub-grantees to pay for evaluations, as well as providing training and technical assistance to sub-grantees to conduct rigorous evaluations. ◊ Using rigorous evaluations to choose which programs to scale up. ◊ Participating in more funding alliances and knowledge-sharing collaborations. Sources: Obama Whitehouse Archives. “The President’s Social Innovation Agenda.” https://obamawhitehouse.archives.gov/ administration/eop/sicp/about. Accessed March 3, 2025. Also, Corporation for national and Community Service. Social Innovation Fund: Our Model. http://web.archive.org/web/20161211024634/https://www.nationalservice.gov/programs/ social-innovation-fund/our-model. Accessed March 3, 2025. Also, Corporation for National and Community Service. 2016. Social Innovation Fund National Assessment Fact Sheet. Available here: https://www.americorps.gov/sites/default/files/ evidenceexchange/SIF-National-Assessment-Fact-Sheet-2015_0_1.pdf. STRENGHTENING PUBLIC-PHILANTHROPIC PARTNERSHIPS | 9 Documenting Truth and Healing in California In 2019, Governor Newsom initiated a process to explore the historical relationship between the state and indigenous people who were harmed by it. The California Truth and Healing Council will produce a report that documents that relationship and may make “recommendations aimed at reparation and restoration and consider how to prevent similar depredations and/or policies in the future.” Another part of the process is to document the testimony and stories shared that will “serve as a historical record and resource for generations to come.” A partnership among the state, tribes, and foundations is funding this documentary. Filmmaker Jacob Kornbluth explains why storytelling beyond reports is necessary: I’ve been blessed to be a director of numerous films, television, and other “content” for over 25 years. It isn’t hyperbole to say that what has kept me going, in a nutshell, is what happened when I showed up to those Truth and Healing meetings. It’s simply thrilling to learn to see the world in a different way, and to share that story in a way that helps others. As soon as the crew and I pulled up to Palisades resort for Day 1 of the first Truth and Healing meeting I attended, everything about the Native people I met refused to be easily categorized or distilled into a report. The setting was (literally, given the elevation) breathtaking. Snow covered mountains, picturesque pine trees and mountain cabins. It was a post card. Inside, a small group of people gathered to provide plenty of dramatic testimony. I was surprised to learn that for the Washoe people “Tahoe” means “lake”, so whenever they hear “Lake Tahoe” they hear “Lake Lake”. This got a laugh in the room. I heard a siren the night before at nightfall in a nearby mountain town that I didn’t understand; I came to learn that this was a sound they would play to warn the Indians that if anyone was out they had to get home or be rounded up and thrown in jail. There was testimony of the State offering bounties for Washoe scalps — scalps of the speakers’ ancestors. These stories devastated all the folks in attendance. But, those stories really didn’t do justice to the nuance of the people and the relationships. There was plenty of laughter, of sharing what TV show they were binge-watching, of who is dating who. It was the unique-ness of the people I took away, not the atrocities. When I walked back outside, all of the beauty I had seen in the Tahoe area looked different to me when I saw it through the Native eyes. I couldn’t shake the possibilities — what if I could help tell a story that conveyed this to others who weren’t able to be there? 10 | LITTLE HOOVER COMMISSION The second day was even more dramatic. The Stewart Indian School is beautiful. Majestic stone buildings, gorgeous grounds. The testimony inside was heart wrenching — the buildings were built with forced Native child labor. Slaves. The testimonies of physical and mental abuse were devastating. But there were also surprising stories — of Native kids who grew up there with happy memories; of people who met their husbands or wives there. I was, honestly, overwhelmed. I asked Christina — what could a storyteller do with those things — the dissonant pieces to the larger narrative of trauma? That’s when she told me a story that was for me, transformative, and that would become my “North Star" on this incredible filmmaking journey. Natives have been asked to share their story over and over. They are just distilled into a report that removes their humanity and sits on shelves. Because of that, the reports historically have changed nothing. For this to be different; it couldn’t (just) be just tabulating traumas. It had to be a story about resilience and the complexity of humanity that we all share. Through philanthropic support, I’ve since spent over two years following the Truth and Healing Council process. The most remarkable thing about those first two days of meeting is that I’ve had some version of the experience — changing my worldview, challenging my assumptions, finding something inspiring in the way people figure out to survive — over and over again. The work of the Office of Tribal Affairs culminates in 2025 with a report, and the film I’ve been putting together will be completed to align with that report. Hopefully, this report will be the start of a reckoning that California needs to have with its history. And hopefully the film will help their findings to reach a larger audience, so they don’t sit on a shelf like so many similar efforts have in the past. Sources: Governor Gavin Newsom. June 18, 2019. Executive Order N-15-19. https://www.gov.ca.gov/wp-content/ uploads/2019/06/6.18.19-Executive-Order.pdf. Also, Governor’s Office of Tribal Affairs. “About the California Truth and Healing Council.” https://tribalaffairs.ca.gov/cthc/about/. Accessed March 4, 2025. Also, Office of Governor Gavin Newsom. 2023. “State of California Social Innovation Impact Report: 2023.” Page 10. Also, Elena Chávez Quezada, Senior Advisor for Social Innovation, Office of Governor Gavin Newsom. Written Testimony to the Commission. Pages 4-7. https://lhc.ca.gov/wp-content/uploads/ Chavez-Quezada-Testimony.pdf. Advisor for Social Innovation Elena Chávez Quezada. for vulnerable populations during Covid-19.14 When “One of the building blocks to trust is transparent partners identify common goals—such as addressing and regular communication, which then creates housing shortages or supporting low-income feedback loops that allow for course correction after workers—they are better positioned to co-create the inevitable bumps in the road any partnership solutions that drive innovation and equity. faces.”13 LEADERSHIP AND INSTITUTIONAL SUPPORT SHARED VALUES AND ALIGNED GOALS Visionary leadership and effective coordination Successful partnerships prioritize alignment in mechanisms within government are significant in values and objectives between philanthropic and facilitating partnerships. The Governor’s appointment public sectors. These shared priorities ensure the of a senior advisor with a public-philanthropic relevance and focus of initiatives, as seen in projects partnership portfolio is key in both signaling support like the Homekey program, which provided housing at the highest echelon of state government, and in STRENGHTENING PUBLIC-PHILANTHROPIC PARTNERSHIPS | 11 supporting collaboration at scale and streamlining promising enough that Governor Newsom allocated communication between state agencies and $30 million over three years in the state’s 2023 philanthropic organizations. Establishing liaisons budget to transform it into a permanent program.16 in key agencies has further institutionalized In fiscal year 2023-24, the program provided up to partnerships, ensuring continuity and reducing six months of assistance to about 1,500 people. dependency on individual leaders. The California Department of Corrections and Rehabilitation will release a report on the program’s ADDRESSING STRUCTURAL INEQUITIES outcomes in 2026,17 at which point policymakers will THROUGH CAPACITY BUILDING make another decision on whether the program is Successful partnerships also incorporate capacity worth expanding. building to empower local stakeholders and address structural inequities. Programs like BOOST Imperial Valley, which helps under- Sometimes the most effective resourced communities access federal, state, and way to improve a government local funding for infrastructure and community development, underscore the importance of program is not to put more equipping communities with the skills and technical resources behind it, but instead assistance needed to leverage funding opportunities effectively.15 These efforts enhance the resilience and to change the policies that self-sufficiency of local organizations while ensuring are failing to produce positive that resources reach those who need them most. outcomes.” Kathleen Kelly LEVERAGING FLEXIBLE RESOURCES TO Janus, Professor, Stanford INNOVATE Philanthropic institutions bring flexibility to University public partnerships, particularly their ability to provide risk capital. Philanthropic funding fosters SPEED AND NIMBLENESS IN TACKLING experimentation and supports the piloting of ideas CHALLENGES that governments, constrained by budgetary and Philanthropic organizations can operate faster than systemic restrictions, may be unwilling or unable to state government, which can face procedural delays fund initially. and administrative limitations. Partnerships that take advantage of philanthropy’s agility can help bridge One example is California’s “Returning Home the gap between quick action and bureaucratic Well Housing” program, which offers formerly- change. For instance, the California Immigrant incarcerated people housing, job training, mental Resilience Fund addressed the immediate needs of health, substance use disorder, and cash assistance immigrant families during the COVID-19 pandemic to aid their reentry into society. Tapping into by providing financial support for vulnerable American Rescue Plan funding for $22 million for populations.18 short-term housing, California partnered with 20 national philanthropies to pilot this program in LIMITATIONS OF PUBLIC-PHILANTHROPIC 2020. Those philanthropies provided $20 million in PARTNERSHIPS job training and health care assistance, along with Despite their recent success, public-philanthropic $1,500 in monthly cash assistance to the 13,817 pilot partnerships are not the solution to every problem, program participants. The pilot program was deemed witnesses testified. Partnerships cannot and should 12 | LITTLE HOOVER COMMISSION Public-Private Partnerships While this report is the Commission’s first on public-philanthropic partnerships, the Commission has discussed the value of public-private partnerships in prior studies. Most recently, in Equitable Development Across California, the Commission found that public-private partnerships are an effective tool in regional economic development. These partnerships foster innovation, advance industrial clusters, and align job training with workforce needs. Public-private partnerships additionally play a role in building regional capacity and promoting inclusive economic development. Initiatives like Fresno DRIVE and the Inland Empire’s IEGO rely on collaboration between civic leaders, community-based organizations, educational institutions and the private sector; together, they help identify regional strengths, provide investment, and ensure that community voices are included in economic planning. In turn, the state can better address structural inequalities and more resilient economies. not replace the government’s core functions of FURTHER INSTITUTIONALIZE PUBLIC- providing public safety, basic social benefits, and PHILANTHROPIC PARTNERSHIPS education, they said.19 Partnerships cannot fix bad The role of senior advisor with a public- government policy. “Sometimes the most effective philanthropic partnership portfolio is relatively way to improve a government program is not to new, as are the philanthropic liaison officers at the put more resources behind it,” wrote Stanford agency level. They have not yet been tested by a Professor Kathleen Kelly Janus, who formerly served change in gubernatorial administration. Further as Governor Newsom’s senior advisor for social institutionalizing public-philanthropic partnerships innovation, “but instead to change the policies that is essential to protect the work that has already are failing to produce positive outcomes.”20 Finally, been accomplished, and to ensure that public- they cannot fill gaps in government funding.21 Public- philanthropic partnerships continue to flourish under philanthropic partnerships can prove whether future administrations. a policy idea is feasible or not, but it is up to the government, not philanthropy, to implement a The Commission recommends that all future successful pilot program to be expanded statewide. governors retain this position. While the structure of the governor's office may vary with each Opportunities for Improving administration, the Commission emphasizes the Public-Philanthropic importance of preserving key competencies within this role, including: Partnerships ◊ Expertise in both state government and Though California has made significant strides in philanthropy, with the ability to effectively bridge fostering public-philanthropic partnerships, there and translate between the two sectors. remains room to strengthen the state’s partnership infrastructure. STRENGHTENING PUBLIC-PHILANTHROPIC PARTNERSHIPS | 13 Case Study: Saving California State Parks in the Aftermath of the Great Recession California’s state parks encompass approximately 1.6 million acres; the 340 miles of coastline, 970 miles of lake and river frontage, 5,200 miles of trails, nearly 3,200 historical buildings, and more than 11,000 known archeological sites are among largest and most diverse holdings of any state agency within the United States. The state’s efforts to set aside land for preservation date back to the mid-1800s when President Abraham Lincoln granted the fledgling state 20,000 acres in Yosemite Valley and the Mariposa Big Tree Grove – a gift California returned to the federal government in 1905 when, with only a single ranger and the park’s being overrun with private ranchers, the state was forced to concede it couldn’t protect the park. PUBLIC-PHILANTHROPIC PARTNERSHIPS FROM THE BEGINNING Undeterred, preservationists began raising money and eliciting permission from the state legislature to purchase historic sites. In the late 1920s, the state’s park system was born when the Legislature established a commission to oversee a new park system and voters passed a bond raising $6 million to match another $6 million in private giving to buy and develop state parks, thus entwining philanthropy and state parks from the very beginning. CALIFORNIA STATE PARKS FOUNDATION In the late 1960s, California’s state parks were facing drastic budget cuts under Governor Ronald Reagan at the same time that the departmental leaders began to understand that preserving the land was not enough: Interpretation, education, professional training, science-based resource management and expansion into urban areas were needed for Californians to be able to fully engage with the parklands set aside for them. In 1969, Parks Director William Penn Mott Jr. created the California State Parks Foundation to partner with the state in protecting and preserving the parks. Early on, the foundation raised money to grow the state parks system. In more recent years, the foundation has focused on stewardship of existing parks, expanding park access to all Californians, enhancing parks’ climate resilience, improving park operations, and advocating for the parks to and educating government officials, voters, and the general public. It has more than 70,000 members and has raised more than $300 million for state parks. IN THE AFTERMATH OF THE GREAT RECESSION, 2008 TO 2012 In the aftermath of the Great Recession, the Department of Parks and Recreation repeatedly faced the prospect of closing state parks due to California’s chronic budget shortfalls. In January 2008, Governor Arnold Schwarzenegger proposed closing 48 parks to help bridge the state’s budget gap. 14 | LITTLE HOOVER COMMISSION The Legislature rejected the idea. In June 2009, Governor Schwarzenegger proposed closing 220 state parks. He backed off the proposal after reportedly receiving 135,000 letters, telephone calls and emails opposing the closures. The continued threat of closures prompted a coalition led by the California State Parks Foundation to put a voter initiative on the November 2010 ballot to address both the park system challenges and raise money for the state’s conservation and habitat preservation missions. Proposition 21, the State Parks and Wildlife Conservation Trust Fund Act, called for an $18 annual vehicle registration fee that would produce an estimated $500 million a year. In return for paying the license fee, park visitors with California plates would get free admission to state parks. The revenues would have removed the need for a General Fund contribution to state parks. Voters, going to the polls after 10 consecutive months in which statewide unemployment exceeded 12 percent, rejected the proposition. Subsequent surveys and interviews by the initiative’s backers suggested that voters felt financially pressed, were leery of any new fees or taxes, and lacked confidence in assurances that fees for parks could be successfully sequestered from the broader budget. Critics called it ballot-box budgeting that would further tie the hands of the Legislature as it grappled with ways to reduce state spending. Governor Jerry Brown, taking office shortly after the measure’s defeat, reduced the department’s General Fund allocation by $11 million, and called for a further $11 million reduction for Fiscal Year 2012-13. In response, the department listed 70 parks it said it could no longer keep open under the existing operating structure and asked for proposals that could help keep parks open under different arrangements. The closure list, issued in May 2011, generated dismay from park visitors and communities dependent on tourism. It also sparked political controversy, as more of the targeted parks were located in Northern California. The department said it was trying to keep more parks open in areas near major population centers. This put the less-populated north coast at a disadvantage, especially given its proportionately greater number of state parks. The Legislature passed AB 42 (Huffman), permitting the department to allow up to 20 parks to be fully operated by a nonprofit organization. The law allowed the department to enter into an unlimited number of contracts with nonprofits for less-than-full operation arrangements. Though STRENGHTENING PUBLIC-PHILANTHROPIC PARTNERSHIPS | 15 the California State Parks Foundation sponsored the legislation, it and other foundations such as Save the Redwoods League were not interested in operating a park or using foundation money to subsidize operations. They did, however, raise money for restoration of deteriorated facilities and degraded habitat. AB 42 opened opportunities not previously available, setting in motion a series of experiments of what kinds of alternative operating arrangements might work, in what conditions, and for how long. The temporary rescue agreements took a variety of forms. The National Park Service stepped in to share resources that kept two Marin County parks and Del Norte Redwoods open, devoting added revenue from an increase in parking fees at Golden Gate National Recreation Area sites to their support. A group of Silicon Valley benefactors raised money to keep open Henry Coe State Park, the largest state park in Northern California. The City of Whittier allocated $30,000 to keep Pio Pico State Historic Park from closing. Regional park districts in Sonoma and Napa counties took over management of several state parks. In Colusa County, the City of Colusa agreed to manage the local state recreation area. Local groups like Team Standish in Mendocino County and Valley of the Moon History Association and Team Sugarloaf in Sonoma County took over operations at several more state parks. The California State Parks Foundation, Save the Redwoods League and Sempervirens Fund channeled hundreds of thousands of dollars raised from foundations and other philanthropists to parks and to assist local associations with their efforts. In Mono County, the department took the Mono Lake Tufa State Natural Preserve off the closure list after a group of environmentalists and preserve supporters, including the Bodie Foundation, and the Mono Lake Committee, discovered a simple, innovative way to keep it open. The solution was in the parking lot of an old marina popular with preserve visitors. Under its agreement with the state, the Bodie Foundation began to run a parking concession expected to generate $111,000 a year by charging $3 per vehicle, enough to keep the preserve open. The foundation had an existing relationship with the department through operating contracts for the museum and bookstore at Bodie State Historic Park. Ultimately, the result in 2012 was a citizen, community, and government rescue of nearly all 70 state parks proposed for closure. Sources: California State Parks. “Natural Resource Management.” https://www.parks.ca.gov/?page_id=22197. Accessed March 4, 2025. Also, California State Parks. “About Us.” https://www.parks.ca.gov/?page_id=91. Accessed March 4, 2025. Also, California State Parks Foundation. “Our History.” https://www.calparks.org/50years/ourhistory. Accessed March 4, 2025. Also, California State Parks Foundation. “Strategic Plan: 2024-2027.” https://www.calparks.org/strategicplan. Accessed March 4, 2025. Also, Little Hoover Commission. March 2013. “Beyond Crisis: Recapturing Excellence in California’s State Park System.” Pages 1-18. https://lhc.ca.gov/ wp-content/uploads/Reports/215/Report215.pdf. With special thanks to Jim Wasserman. 16 | LITTLE HOOVER COMMISSION ◊ Direct access to the Governor, coupled with a comprehensive understanding of the administration’s priorities. Californians Dedicated ◊ Facilitation of cross-sector collaboration and the to Education Foundation cultivation of trust among stakeholders. In 2011, the Californians Dedicated ◊ Openness to engaging with the philanthropic to Education Foundation was created community. to support the state’s Department of ◊ Support for agency philanthropic liaisons in Education. It has raised more than $32 developing and sustaining partnerships. million to support the state’s public education system, which serves 6 million A commitment to transparency, sustainability, equity, children. The foundation positions and ensuring the inclusion of stakeholders from itself as a resource hub for family and vulnerable and underrepresented communities. community engagement, provides support Recommendation 1: The State of California should for teacher residency and apprenticeship fund and make permanent within the executive programs, fosters collaboration among branch a senior advisor position responsible for district labor-management teams, and public-philanthropic partnerships. runs an annual symposium on integrating science, technology, engineering, art, and a) As part of their responsibilities, this mathematics (STEAM) into classroom person should liaise with the Attorney curricula. General’s Office on messaging with newly- formed foundations to ensure they know Since its creation, the foundation has they can work with government. supported nearly 100 local education and university residency partnerships; Just as ensuring the continuity of the work of the roughly two-thirds of those graduates are senior advisor is critical to the future success of people of color. It has provided capacity public-philanthropic partnerships, so is expanding building for 10 school districts, and has the public-philanthropic partnership infrastructure convened 15,000 educators to improve at lower levels of government. The senior advisor STEAM learning. It has engaged more than cannot do all the work alone. 175 school districts as part of its labor management initiative, and communicates Recommendation 2: The State of California should about the state’s educational standards continue its efforts to establish a partnership through a million-strong network of state liaison in major departments and agencies. association members. Public-philanthropic partnership resources currently Sources: Californians Dedicated to Education are centralized within the executive branch. Foundation. “Programs.” https://cdefoundation.org/ Witnesses pointed out that the de-centralized nature programs/. Accessed April 1, 2025. Also, Californians Dedicated to Education Foundation. “Our Vision.” of the state legislature made it difficult to collaborate https://cdefoundation.org/who-we-are/. Accessed April with that body or even know who to approach with 1, 2025. questions.22 Creating a centralized point of contact for philanthropy in the state legislature could serve STRENGHTENING PUBLIC-PHILANTHROPIC PARTNERSHIPS | 17 both philanthropy and members who have questions Recommendation 4: The State of California about partnership opportunities in their district and should create a formal monitoring and evaluation related topics. This position ideally would be housed and reporting process located outside of the in the office of the Assembly Speaker or the Senate Office of the Governor for public-philanthropic President pro tempore, or in the Senate Office of partnerships. Research. a) As part of this process, the state should Recommendation 3: The state legislature should collect demographic data on which create a centralized point of reference on public- Californians are benefiting from the philanthropic partnerships, both to communicate partnership. with the philanthropic community and to b) Additionally, the state should study the communicate with the administration. ways in which outside organizations partner IMPACT DATA — EXPAND MONITORING & with the state to see if some models lead EVALUATION to greater efficiencies and/or impact than Measuring the cumulative impact of public-private others. partnerships in California is difficult. Although the state publishes an annual impact report and convenes an annual philanthropy summit, there appears to be no systemic data-driven measurement of the overall results. Descriptions of the impact of public-private partnerships are often limited to the case-by-case results of each program, such as those provided earlier in this report.23 To address this, the Commission recommends that the state formalize a monitoring and evaluation program for all of the public-philanthropic partnerships in which the state engages, then make the results easily accessible to Californians. As many of these partnerships already have monitoring and evaluation built in, this need not be an onerous undertaking. Monitoring and evaluation would generate data to prove the overall effectiveness of partnerships, and also allow the state and its partners to make course corrections if the evidence shows the initiative is not making the expected impact. The state should also use this opportunity to show it is helping traditionally underserved and underrepresented Californians, and to apply lessons learned to future partnerships. 18 | LITTLE HOOVER COMMISSION Summary of Recommendations Recommendation 1: The State of California should fund and make permanent within the executive branch a senior advisor position responsible for public-philanthropic partnerships. a) As part of their responsibilities, this person should liaise with the Attorney General’s Office on messaging with newly-formed foundations to ensure they know they can work with government. Recommendation 2: The State of California should continue its efforts to establish a partnership liaison in major departments and agencies. Recommendation 3: The state legislature should create a centralized point of reference on public- philanthropic partnerships, both to communicate with the philanthropic community and to communicate with the administration. Recommendation 4: The State of California should create a formal monitoring and evaluation and reporting process located outside of the Office of the Governor for public-philanthropic partnerships. a) As part of this process, the state should collect demographic data on which Californians are benefiting from the partnership. b) Additionally, the state should study the ways in which outside organizations partner with the state to see if some models lead to greater efficiencies and/or impact than others. STRENGHTENING PUBLIC-PHILANTHROPIC PARTNERSHIPS | 19 Notes 1. Office of Governor Gavin Newsom. State of 10. Elena Chávez Quezada, Senior Advisor for Social California Social Innovation Impact Report: Innovation, Office of California Governor Gavin 2024. Page 2. https://lhc.ca.gov/wp-content/ Newsom. November 21, 2024. Written testimony uploads/2024-Impact-Report_Newsom.pdf. to the Commission. 2. Office of Governor Gavin Newsom. See endnote 11. Elena Chávez Quezada. See endnote 10. 1. Page 4. 12. Abby Snay, Deputy Secretary for Workforce 3. James M. Ferris. March 2021. A Generation of Strategy, California Labor and Workforce Impact: The Evolution of Philanthropy over the Development Agency. December 13, 2024. Past 25 Years. Page 8. Available here: https:// Written testimony to the Commission. Pages 1-2. cppp.usc.edu/wp-content/uploads/2021/03/A- 13. Elena Chávez Quezada. See endnote 10. Page 1. Generation-of-Impact.pdf. Accessed February 3, 2025. 14. Kathleen Kelly Janus. See endnote 5. Page 42. 4. James M. Ferris. See endnote 3. Pages 2-5. 15. Elena Chávez Quezada. See endnote 10. Page 2. 5. Kathleen Kelly Janus. Summer 2024. “Effective 16. Kathleen Kelly Janus. See endnote 5. Page 40. government Demands Partnership.” Stanford Social Innovation Review. https://ssir.org/articles/ 17. Legislative Analyst’s Office. February 25, 2025. entry/public-private-partnerships-innovation- “The 2025-26 Budget: California Department of scale [subscription required]. Page 41. Available Corrections and Rehabilitation.” Available here: without pagination as written testimony at https://lao.ca.gov/Publications/Report/4986. https://lhc.ca.gov/wp-content/uploads/2.- Accessed February 27, 2025. Janus-How-Public-Private-Partnerships-Unlock- Innovation-at-Scale.pdf. 18. Kathleen Kelly Janus. See endnote 5. Pages 43-44. 6. Office of Governor Gavin Newsom. 2023. “State 19. Kathleen Kelly Janus. See endnote 5. Page 41. of California Social Innovation Impact Report: 20. Kathleen Kelly Janus. See endnote 5. Page 41. 2023.” Page 6. https://www.gov.ca.gov/wp- content/uploads/2024/01/2023-California-Social- 21. Kathleen Kelly Janus. See endnote 5. Page 41. Innovation-Impact-Report.pdf. 22. Don J. Howard. October 17, 2024. Written 7. Office of Governor Gavin Newsom. See endnote testimony to the Commission. Page 5. 6. Page 11. https://lhc.ca.gov/wp-content/uploads/4.- Irvine-Written-testimony-on-public-private- 8. Office of Governor Gavin Newsom. See endnote partnerships_Don-J.-Howard-of-The-James-Irvine- 6. Page 8. Foundation_10.11.24.pdf. 9. Office of Governor Gavin Newsom. See endnote 23. Elena Chávez Quezada. See endnote 10. Page 4. 6. Page 19. Also, California Wildfire and Forest Resilience Task Force. “Planscape.” https:// wildfiretaskforce.org/planscape/. Accessed March 7, 2025. 20 | LITTLE HOOVER COMMISSION Little Hoover Commission Members CHAIR PEDRO NAVA | Santa Barbara JOSÉ ATILIO HERNÁNDEZ | Burbank Appointed by Assembly Speaker Pérez in April 2013, then Appointed by Speaker of the Assembly Anthony Rendon reappointed by Speakers Rendon in 2017 and 2021 and in April 2023. Founder and CEO of IDEATE California, a Rivas in 2024. Elected Chair in March 2014. Government public relations and policy management firm. Also, founder relations advisor. Former State Assemblymember from and Board Chairman of ideateLABS. Former Director for 2004 to 2010, civil litigator, deputy district attorney and External Affairs and Community Relations for ConnectEd: member of the state Coastal Commission. The California Center for College and Career. VICE CHAIR ANTHONY CANNELLA | Ceres JASON JOHNSON | Napa Appointed by the Senate Rules Committee in March 2022. Appointed by Governor Newsom in June 2023. Member Elected Vice Chair in July 2023. Civil engineer and principal of the Land Trust of Napa County Board of Trustees and with Northstar Engineering Group. Former State Senator Horary Commander of Travis Air Force Base. Former from 2010 to 2018. Previously served on the Ceres City Managing Partner at Founders Den. Founder and former Council and was twice elected mayor of that city. CEO at August Home Inc. DION ARONER | Berkeley GAYLE MILLER | Sacramento Appointed by the Senate Rules Committee in April Appointed by Governor Newsom in January 2025. Currently 2019. Partner for Aroner, Jewel, and Ellis. Former State Managing Director at Brookfield Asset Management. Assemblymember from 1996 to 2002, chief of staff for Previously served as Senior Counselor on Infrastructure Assemblymember Tom Bates, social worker for Alameda and Clean Energy Finance for Governor Newsom and Chief County, and the first female president of Service Employees Deputy of Policy at the California Department of Finance. International Union 535. SENATOR ROGER NIELLO | Fair Oaks DAVID BEIER | San Francisco Appointed by the Senate Rules Committee in February Appointed by Governor Edmund G. Brown Jr. in June 2014 2025. Elected in 2022 to represent Senate District 6, which and reappointed in January 2018. Managing director of encompasses portions of Placer County, including cities Bay City Capital. Former senior officer of Genentech and such as Auburn, Granite Bay, and Lincoln, as well as parts Amgen, and counsel to the U.S. House of Representatives of Sacramento County, including cities such as Antelope, Committee on the Judiciary. Folsom, Orangevale, and Rancho Cordova. SENATOR CHRISTOPHER CABALDON | West ASSEMBLYMEMBER LIZ ORTEGA | San Leandro Sacramento Appointed by Speaker of the Assembly Anthony Rendon Appointed by the Senate Rules Committee in February in March 2023. Elected in November 2022 to represent 2025. Elected in 2024 to represent Senate District 3, which Assembly District 20. Represents Hayward, San Leandro, encompasses portions of Contra Costa, Napa, Solano, most of Union City, portions of Dublin and Pleasanton, and Sonoma, Yolo, and Sacramento Counties. several unincorporated communities. ASSEMBLYMEMBER PHILLIP CHEN | Yorba Linda JANNA SIDLEY | Los Angeles Appointed by Speaker of the Assembly Anthony Rendon Appointed by Governor Edmund G. Brown Jr. in April in October 2021. Elected in November 2016 to represent 2016 and reappointed in February 2020. Partner at Ichor District 55. Represents portions of Los Angeles, Orange Strategies and appointed to the Board of the Los Angeles and San Bernardino counties and the cities of Brea, Chino City Employee Retirement System (“LACERS”). Former Hills, Diamond Bar, La Habra, Industry, Placentia, Rowland general counsel at the Port of Los Angeles and city attorney Heights, Walnut, West Covina and Yorba Linda. at the Los Angeles City Attorney’s Office. GIL GARCETTI | Los Angeles Full biographies are available on the Commission’s Appointed by Governor Gavin Newsom in November website at www.lhc.ca.gov. 2021. Professional photographer and author of ten books. Former Los Angeles County District Attorney, teaching Fellow at Harvard University’s Kennedy School, and president of the California Science Center Foundation’s Board of Trustees. STRENGHTENING PUBLIC-PHILANTHROPIC PARTNERSHIPS | 21 “DEMOCRACY ITSELF IS A PROCESS OF CHANGE, AND SATISFACTION AND COMPLACENCY ARE ENEMIES OF GOOD GOVERNMENT.” By Governor Edmund G. “Pat” Brown, addressing the inaugural meeting of the Little Hoover Commission, April 24,1962, Sacramento, California Milton Marks Commission on California State Government Organization and Economy www.lhc.ca.gov