California Institute for Federal Policy Research
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California Capitol Hill Bulletin
Volume 10, Bulletin 3 -- February 14, 2003 [or see pdf version] [or jump to the previous bulletin]
CONTENTS OF THIS ISSUE
Omnibus Appropriations Conference Report Approved
House Approves Welfare Reauthorization Measure
PPIC and Institute to Host Highway-Formulas Briefing
California Delegation Disputes Farm Deal
California Congressional Staff Briefed on K-12 Education
PPIC Report: Long-term Reliance on State Money
California's Regional Planning Examined in PPIC Report
More Committee Assignments
Los Angeles to Get Extra $150 Million for Hospitals
Foster Care Report Calls for Changes
Omnibus Conference Report Earmarks
To expand communications between Washington and California, the California Institute provides periodic faxed bulletins regarding current activity on Capitol Hill which directly impacts our state. Bulletins are published weekly during sessions of Congress, and occasionally during other periods. The e-mail edition is made possible in part by in kind donations from Sun Microsystems and IBM Corp.
Omnibus Appropriations Conference Report Approved
Late on Wednesday, February 12, 2003, congressional negotiators agreed to a $397.4 billion FY03 Omnibus Appropriations Conference Report, H.J. Res. 2, which incorporates the eleven unfinished appropriations measures for non-military domestic spending into one package. After more than four months of passing temporary stop-gap spending measures to maintain government operations, the House passed the bill late Thursday by a vote of 338-83, after the Motion to Recommit failed by a largely party line vote of 193-226. The Senate is expected to pass the bill before adjourning for the Presidents' Day recess, which begins on Friday.
The final funding level is about $11.5 billion more than the $385.9 billion limit the White House had imposed on Congress last week. In order to offset some of the additional spending for education and other programs, the bill includes a 0.65 percent across-the-board spending cut. However, Head Start, the Space Shuttle program, VA medical care, and the Women Infant and Children's (WIC) program are exempted from the spending cut.
Details on specific programs within the 1,100-page bill are still sketchy, as the Conference Report will not be formally printed in the Congressional Record until at least Friday, February 14 and the electronic versions currently available are not searchable. The following summarizes some of the major provisions in the bill of particular concern to California that have been identified thus far.
Spending for the Departments of Commerce, Justice, and State are basically held at FY02 levels. Total funding for discretionary spending is set at $41.3 billion, compared to $41.4 billion in FY02 and the President's request of $41.8 billion. The State Criminal Alien Assistance Program (SCAAP) will receive only $250 million in funding, as opposed to the $565 million appropriated in FY02. The program partially reimburses the states for the costs of incarcerating undocumented criminal aliens. California receives almost 40 percent of the funding; in FY02 the State, county and local governments received $220.24 million in SCAAP funds.
A total of $2.065 billion is provided for State and Local Law Enforcement Assistance. The Local Law Enforcement Block Grant program is level funded at $400 million, and Byrne grants are funded at $650,914,000, of which $150,914,000 is for discretionary grants. The Conference Report also stipulates that the following California programs be considered for Byrne Discretionary Grants:
$1.3 million for the San Joaquin Valley Rural Agricultural Crime Prevention Program;
$200,000 for San Marcos for a community policing initiative;
$1.5 million for the City of Los Angeles for the Community Law Enforcement and Recovery anti-gang program;
$1 million to expand the LA Community Law Enforcement and Recovery anti-gang program to the Hollenbeck division;
$500,000 to the LA Community Development Commission to expand its crime safety program;
$200,000 for the Solano County multi-jurisdictional response team;
$80,000 to the Marysville police department for a mobile command center; and
$180,000 for the Homeless Outreach Team in San Diego.
$40 million is also provided for the Southwest Border Prosecution program under the Community Oriented Policing Services account.
The Conference Report also provides $3.5 billion in assistance to state and local First Responders; $2.4 billion in the Commerce-Justice section of the bill and $1.1 billion in the VA-HUD and Independent Agencies section.
Immigration enforcement activities will receive $6.159 billion. The bill fully funds at $362 million the Entry Exit program to track the arrival and departure of non-U.S. citizens, and removes a funding prohibition on the National Security Entry Exit Registration System. Additional funds of $57 million are also included to hire another 570 Border Patrol Agents, and $25.5 million in addition funds is provided to hire 460 land border Immigration Inspectors. The bill also funds the hiring of 760 new airport and seaport inspectors and support personnel. After the new hires, the total number of Border Patrol Agents will be 11,000. $14 million in funding is also provided for construction of the Border Patrol Station at El Centro, and $1 million is appropriated for San Diego Border Barriers.
Funding for the Department of the Interior also remains relatively flat compared to FY02 funding, and below the President's request. The Omnibus contains $19.1 billion in funding, whereas President Bush had requested $19.5 billion, and FY02 funding was $19.2 billion. The majority of the decrease in spending comes from the Department's conservation programs, which are cut by $200 million, 15 percent less than FY02. The Payment in Lieu of Taxes (PILT) program will receive a $10 million increase to $220 million in FY03 funding.
The bill provides $26 million in funding for the Quincy Library Group.
Energy and Water
Energy and Water programs will be boosted from $25.30 billion in FY02 to $26.16 billion in FY03, about $300 million more than the President requested. The Conference Report provides $917 million for the Bureau of Reclamation, an increase of $72 million over the President's request and $2 million above the FY02 level.
California Bay-Delta projects will receive $23 million under the bill, as opposed to the $30 million contained in the Senate version. Funding for the Environmental Water Account was decreased from $15 million to $9 million. The conference report also retains the Senate language authorizing the Interior Department and other federal agencies to continue to participate in the CALFED Bay-Delta Authority. Interior is also authorized to undertake feasibility studies for the Sites Reservoir, Los Vaqueros Reservoir Enlargement, and Upper San Joaquin Storage projects. Language providing for a feasibility study of In-Delta Storage, however, was dropped. The provision also calls for these studies, as well as environmental and other projects, to be pursued in a balanced manner.
The Corps of Engineers will receive $4.6 billion, $28 million less than FY02, but $457 million over the President's request. Among the projects specifically funded are: $1 million for the Napa River Salt Marsh Restoration project; about $3 million to complete the feasibility study and initiate preconstruction engineering and design for the Sacramento and San Joaquin Comprehensive Basin Study, as well as an additional $2 million for Corps projects in the Sacramento area. The report does not include specific funding for the Port of Stockton study requested by the House, but states that funds for this are included in the San Francisco to Stockton project under the Construction, General, account. $4.5 million is also provided for the Coastal Field Data Collection Program, of which $1 million is for the Southern California Beach Processes study.
Funding for fusion energy sciences, of which California perennially wins the lion's share, will rise from $241 million in FY 2002 to $250 million in FY 2004. However, the amount is below the total proposed in the President's budget.
High energy physics would receive $706.9 million under the conference agreement, and basic energy sciences research would receive $772.9 million. The agreement provides $6 million for engineering design and construction at the Stanford Linear Accelerator Center. It also provides $172.6 million for advanced scientific computing research.
A National Nuclear Security Administration construction account for advanced simulation and computing provides $13.3 million for construction of a distributed information systems laboratory at Sandia National Laboratory in Livermore, and $35 million for a terascale simulation facility at Lawrence Livermore Lab.
Readiness construction funding is provided for various projects, including $10 million for an engineering technology complex upgrade at LLNL, $113 million for a microsystems and engineering sciences applications complex at Sandia, $9.6 million for a sensitive compartmented facility at LLNL, $4 million for isotope sciences facilities at LLNL, and $5.9 million for roof reconstruction at LLNL.
Within an overall total of $504.3 million for inertial confinement fusion, the conference agreement provides an additional $8 million for enhanced National Ignition Facility (NIF) diagnostics and/or cryogenic target activities, and $214 million for continued construction of the NIF. For petawatt laser capabilities, the conference agreement provides $5 million to modify the beamlet laser at the Sandia National Laboratories and $1 million for community activities in developing critical short-pulse, high power laser technology. The agreement provides an additional $3.5 million for university grants/other ICF support For advance simulation and computing, the agreement provides $704 million.
The agreement provides $22 million for to accelerate cleanup activities at Lawrence Livermore National Laboratory.
Education - Elementary and Secondary Education
The conference agreement provides a $1.4 billion increase in Title I funding, bringing the total to $11.75 million.
The agreement provides no increase in the traditional components of Title I focusing 100 percent of the increase on two relative newcomers to the Title I formula funding mix: targeted grants and EFIG. The Administration proposes $7.2 billion - the same funding level as in FY 2002 - for Title I basic grants. Likewise, the conference agreement would retain the FY 2002 level for Title I concentration grants, providing $1.365 billion.
For the two Title I formula elements that have only recently received funding, the agreement calls for spending of $1.67 billion for Title I's "targeted grants" component and $1.545 billion for education finance incentive grants or EFIG. (The two programs were funded for the first time in FY 2002 pursuant to a conference amendment by Sens. Mary Landrieu (LA) and Thad Cochran (MS) in 2002. Congress provided $1.018 billion for newly-funded targeted grants, and $793 million in first-time funding for EFIG.)
An analysis of the four primary grant components of Title I (basic, concentration, targeted, and EFIG) showed that California generally would receive the highest portion of funds from targeted grants, and the lowest share from EFIG. Fortunately, Congress recently changed an EFIG formula factor in order to count only children in poverty, as opposed to all children -- a shift which will improve the share of program dollars for California, which houses a higher percentage of poor children than of children overall. Nevertheless, EFIG grant shares will still be calculated in part on state average per-pupil expenditure and tax effort for education, both of which cut California's share, and its state per capita income factor will also reduce the share.
For the Impact Aid programs, which support schools in areas where the local tax base is reduced by significant federal properties such as military bases, the conference agreement provides $1.196 billion in total funding, with $1.032 billion allocated to basic payments (up from $983 million in 2002), and $51 million for "Part B" payments for children with disabilities (up slightly from $50 million in 2002). The remaining funds are proposed as follows: $8 million for facilities maintenance, $45 million for construction, and $60 million for federal property payments. Because of the dwindling presence of military bases in the state following four rounds of base closures, California's typical share of Impact Aid funds has declined from about 10% to about 7% over the past few years.
The Conference Report includes the Senate's $690 million (higher than the House figure of $665 million) for English Language Acquisition programs, formerly known as Bilingual and Immigrant Education. With funding levels remaining above a pre-determined trigger hreshold, the program will continue use of a new formula for distributing the funds, which is likely to benefit California. Allocations for the English Language Acquisition and Language Enhancement grants are now based 80% on states' relative share of children considered limited English proficient (LEP) and 20% based on states' share of immigrant children, and California's share of both factors is high.
For Special Education, the conferees agreed on $10.1 billion, above the House's $9.2 billion but below the Senate's $11.2 billion, and in any case well above the $8.6 billion figure for 2002. The largest portion, $8.9 billion, would be allocated to Special Education Grants to States, up from $7.5 billion in FY 2002. California typically receives roughly 10% of special education state grants funding. The agreement does not provide the additional $1.5 billion proposed by the Senate for the Individuals with Disabilities Education Act.
The agreement provides $2.96 billion for Rehabilitation Services and Disability Research, an increase of roughly $100 million from the FY 2002 funding level. The vast majority of funds for this account are used for the Vocational Rehabilitation State Grants program, California typically receives roughly 10% of funds for vocational rehabilitation state grants. Within $21 million for vocational rehabilitation demonstration and training programs, the bill earmarks $145,000 for the City of Carson for rehabilitation and related services at the Joseph B. O'Neal Jr. Stroke Center.
For Vocational and Adult Education, the agreement provides $1.96 billion, higher than both the House's $1.92 billion and the Senate's $1.94 billion. For Vocational Education State Grants, the conference agreement provides the House's $1.2 billion level, rather than the Senate's recommendation of level funding at $1.18 billion (California's share of voc-ed basic grants is typically about 11%). Tech Prep education is funded at $110 million, and the tech-prep education demonstration at $5 million.
Education - Student Financial Assistance and Higher Education
The conference agreement provides $11.44 billion for Pell Grants, higher than either the House's or the Senate's $11.2 billion. The maximum Pell Grant would rise from $4,000 to $4,050 for award year 2003-2004. Report language renews a call for the U.S. Department of Education to report to Congress regarding the feasibility of implementing a system whereby some students could receive two Pell grants in a single calendar year. The agreement also boosts funding for the Supplemental Educational Opportunity Grant (SEOG) to $765 million from the $725 million proposed by both the House and Senate (and which had been the FY 2002 level).
For Higher Education programs, the conference report provides $2.1 billion, above the Senate's $2.0 billion and the House's $1.9 billion levels, including a rise from $86 million in 2002 to $93 million in 2003 for developing Hispanic-serving institutions.
The conference agreement provides the higher Senate figure of $832.5 million for the TRIO program. For GEAR UP, the agreement also provides the higher Senate figure, $295 million.
Conferees propose a total appropriation of roughly $64.5 billion for FY2003 transportation programs. Federal highways programs spending levels are set at $31.8 billion, the full amount sought by transportation advocates and proposed by the Senate. This figure is $896 million above the FY2002 allocation, $4.1 billion above the House appropriation level and $8.6 million above President Bush's budget request based on estimated FY 2003 obligation authority distributions through the Revenue Aligned Budget Authority (RABA) funding mechanism laid out in transportation law.
The National Railroad Passenger Corporation, otherwise known as Amtrak, receives $1.05 billion in funding for FY2003, $150 million less than its officials say it needs to remain fully operational. In an effort to improve oversight and responsible fiscal management of the debt-burdened corporation, Amtrak is required to develop Congressionally reviewed financial reporting plans. Omnibus language also empowers the Secretary of Transportation to control Amtrak funds (rather than assigning funds directly to Amtrak) and review and approve grant requests for specific long-distance train routes. The figures for Federal Aid Highway Programs and Amtrak are by and large consistent with levels California Governor Gray Davis requested in a letter issued to Delegation members late last month.
The Federal Aviation Administration is allocated $13.6 billion, $87 million above the previous year's appropriation.
Conferees allocated $5.2 billion for the Transportation Security Administration's civil aviation security activities. This new agency was created in the aftermath of September 11th upon the enactment on November 19, 2001 of the Aviation and Transportation Security Act. The TSA is designed to improve security for all transport systems across the US including aviation, railways, highways, pipelines and waterways.
The Omnibus Conference bill allocates $22.1 billion in discretionary funding for agricultural programs, $2.2 billion less than FY'02 expenditures. After stalling on negotiations over farmer drought assistance levels, Conferees agreed to $3.1 billion in farm relief to be drawn from existing programs rather than through budgetary augmentation.
Animal Plant Health and Inspection Services (APHIS) are appropriated $726 million, $105 million above last year's levels. APHIS is tasked with conducting inspection, quarantine, and regulatory activities in response to animal and plant diseases and to protect the environment.
$907,737,000 is appropriated for the Rural Community Advancement Program with $723,217,000 to be made available for rural utilities activities. Of funds provided for the Rural Utilities Program, the agreement provides $25 million to assist Colonias communities along the US-Mexico border to improve the quality of water and waste disposal systems.
The Conference Report appropriates $10,580,169,000 for Children's Nutrition Programs. Furthermore $26,313,692,000 is provided for Food Stamp expenditures.
Conferees recommend $4.696 billion for the Special Supplemental Nutrition Program for Women, Infants and Children (WIC), $348 million above last year's appropriation. Of this total $125 million is set aside as reserve funds while the Farmers' Market Nutrition Program is funded at $25 million. This program provides certified farmers' markets coupons to participating women and children redeemable for fresh fruits and vegetables. The purpose is to provide WIC participants with fresh fruits and vegetables while promoting use, awareness, and sales of local community-based farmers' markets.
The bill also includes a $3.1 billion drought assistance package, which had tied up approval of the conference report earlier in the week. A House-Senate agreement was reached on eligibility for, and distribution of, the funds to farmers and ranchers.
VA/HUD & Independent Agencies
The Omnibus Conference Report provides $121.9 billion for the Department of Veterans Affairs, the Department of Housing and Urban Development, and Independent Agencies.
Conferees agreed to provide $36.3 billion for the Department of Housing and Urban Development, $1.8 billion above the previous year's allocation. This Department is responsible for managing the nation's housing needs by administering programs to assist with fair housing opportunities, and community improvement and development activities.
For the HOME investment partnership program, the bill provides a total of $1.93 billion. California typically receives between 13% and 13.5% of HOME formula funding. $75 million is appropriated for a new Downpayment Assistance Initiative proposed by President Bush.
Public Housing Operating Subsidies levels are set at $3.6 billion by Conferees; whereas $1.23 billion is appropriated for homeless assistance. This includes full funding for Shelter Plus Care renewals.
The Environmental Protection Agency is appropriated $8.1 billion, with the Superfund hazardous waste cleanup program share remaining consistent with FY2002 levels at $1.3 billion. Language is included in the Conference Report placing greater emphasis on funding state grants to improve water quality.
Conferees propose providing NASA with $15.4 billion, $513 million above last year's levels, of which $50 million would be provided for Space Shuttle Columbia investigation costs. NASA is also exempted from across-the-board spending cuts affecting most other Omnibus programs. Conference language also provides added flexibility to NASA officials for shifting funds across programs to facilitate resource maximization.
Under the Conference Report, funding for the National Science Foundation would reach its highest levels ever with a total appropriation of $5.3 billion. This includes $4 billion for research; $150 million for research, equipment and construction; and $909 million for education and human resources.
Health and Human Services
The FY03 conference bill allocates $130.9 billion in discretionary funding and $421.6 billion in total funding, including mandatory spending, for the Department of Health and Human Services, Department of Labor, and Department of Education. The FY03 amount is $3.3 billion higher than the spending level appropriated in FY02, and corresponds to the same amount that the administration requested in its FY03 budget proposal.
The conference bill provides $27.2 billion to fund the National Institutes of Health (NIH). The FY03 conference bill amount is $3.8 billion higher than the appropriation made last year. The administration has requested $29.8 billion funding in its FY04 budget proposal.
The bill appropriates $4.3 billion for the Centers for Disease Control. The FY03 funding level is $288 million above the administration's budget request, and is $107 billion less than the amount provided in FY02.
The Low Income Home Energy Assistance Program is funded at $1.7 billion for the formula grant portion. The funding provided for LIHEAP in the conference bill is $300 million higher than the amount requested in the President's FY03 budget proposal, and $100 million less than the FY02 appropriation. The administration requested $1.85 billion in funding for this program in FY04.
The conference bill provides $1.5 billion in funding for Community Health Centers. The FY03 funding level is an increase of $171 million over the amount appropriated in FY02.
To subsidize the states for administering the refugee assistance programs, the conference bill appropriates $437 million, which is $41million less than the $478 million appropriated in FY02. The administration requested $472 million for the Refugee and Entrant Assistance in its FY04 budget proposal.
The conference bill appropriates $2.1 billion in funding to supplement state general revenue funds for child care assistance for low-income families.
For the Social Services Block Grant, the conference bill appropriates $1.7 billion, which is the same amount that the administration has requested for FY04.
The conference bill appropriates $8.643 billion to fund Children and Families Services Programs, which includes: $6.668 billion for the Head Start Program; $91 million for the Homeless and Runaway Youth Program, which is an increase of $43 million over the $48 million funding level appropriated in FY02; $35 million for the "Compassion Capital Fund", which is an increase of $5 million over the FY02 appropriation of $30 million, to fund qualified charitable organizations that wish to expand or emulate model programs.
The conference bill appropriates $6.6 billion in funding for foster care and adoption assistance payments to the states. This amount represents an increase of $531 million over the $6.069 billion allocated for such payments in FY02.
House Approves Welfare Reauthorization Measure
On February 13, 2003, the House passed a Welfare reauthorization bill, H.R. 4, by a primarily party-line vote of 230 to 192. The bill is essentially identical to the measure approved by the House in the last legislative session. See, Bulletin, Vol. 9, No. 14 (5/16/02). It also closely resembles the President's proposed welfare plan in that it renews the Temporary Assistance for Needy Families block grant at $16.6 billion per year, proposes tougher work requirements for cash recipients, limits eligible work activities, and authorizes funding for marriage strengthening programs. A motion to recommit the measure led by Democrats failed by a vote of 197 to 221.
The 1996 Public Responsibility and Work Opportunity Reconciliation Act (PRWORA) expired on September 30, 2002. Action to renew the landmark welfare reauthorization measure stalled last year after the Senate failed to complete work on its version of the bill, as many of its provisions were inconsistent with the House version and the President's welfare proposal. As a result, Congress extended welfare assistance programs at FY2002 levels via the Continuing Resolutions through March, 2003 (PL 107-294).
H.R. 4, supported by President Bush, increases weekly work requirements to qualify cash recipients for aid from 30 hours per week to 40 hours per week, while gradually boosting States work participation rates from 50 percent to 70 percent by 2008. It also provides $1 billion more for child care programs over five years, less than some advocates had sought.
The bill is now expected to be taken up by the Senate Finance Committee, chaired by Sen. Charles E. Grassley (IA). In a January 24th statement, Sen. Grassley expressed his commitment to welfare reform as a priority for his Committee, "We won't be able to determine the specific elements of a welfare bill until our committee members have had an opportunity to weigh in. ... My goal is to enact a bipartisan bill as soon as possible."
A recent report examining TANF and federal welfare programs from a California perspective, developed as part of the Federal Formula Grants and California series by the California Institute and the Public Policy Institute of California (PPIC), is available on the web at http://www.ppic.org/publications/PPIC165/ppic165report3.pdf .
PPIC and Institute to Host Highway-Formulas Briefing
On Wednesday, February 26, 2003, from 12:30 to 2:00 p.m., the Public Policy Institute of California (PPIC) and the California Institute will host a luncheon briefing in Room 311 of the Cannon House Office Building to examine the state's unique vantage point regarding federal highway formulas and trends as the Congressional delegation prepares to consider reauthorization of the TEA-21 transportation law.
The briefing, part of the Federal Formula Grants and California series, will explore California's share of federal-aid highway formula programs and the reasons behind the state's relatively low share of highway funds. It will also briefly outline several other formula grants, including Medicaid, welfare, education, health, and nutrition programs.
Federal Formula Grants and California is a unique research product developed through a collaboration between PPIC and the California Institute at the request of the bipartisan leadership of California's Congressional delegation. The project's reports, which examine hundreds of formula programs from a California perspective, are available at http://www.ppic.org/publications/PPIC165/ppic165abstract.html . PPIC is an independent, nonpartisan research institute based in San Francisco.
To RSVP for the February 26 luncheon (acceptances only please), send e-mail to firstname.lastname@example.org , fax to 202-546-2390, or call 202-546-3700.
California Delegation Disputes Farm Deal
A unanimous California delegation has recently voiced its opposition to a lawsuit settlement that the Bush administration negotiated with Central Valley farmers. Under the agreement, the federal government would pay farmers in the Westlands Water District $107 million to settle a suit over the lack of drainage provided for farmland under the Central Valley Project (CVP). The settlement, however, stipulates that the money will be taken out of federal money for other California water projects. Affected projects would include pumps on the American River, CVP maintenance, and some Southern California recycling programs. California's 55 House and Senate members sent a letter opposing that decision. Instead, they argued the settlement money should come from the lawsuit settlement fund administered by the Department of Justice.
California Congressional Staff Briefed on K-12 Education
On January 31, 2003 the California School Boards Association gave a briefing to the House and the Senate staff on education issues that the state is facing this upcoming year. Rick Pratt, Assistant Executive Director for Governmental Relations, Mina G. Fasulo, Assistant Executive Director for Communications, Phillip Escamilla, Legislative Advocate, and Samantha Dobbins, Research and Policy Consultant, spoke on issues ranging from implementation of the No Child Left Behind Act to Medicaid reimbursements that the schools get for their services.
All presenters expressed concern about the budget situation in California and how it will affect the state's ability to carry out several state and federal education mandates. The funding for categorical programs, many of which are targeted by the "No Child Left Behind Act", is expected to be cut 1.28 percent, or as much as much as $2.2 billion. The presenters argued that such funding cuts would significantly undermine California's ability to meet the state education performance goals and the "No Child Left Behind" standards.
Another issue discussed during the briefing was a new proposal by the Center for Medicaid and Medicare Services (CMS), an office within the Department of Health and Human Services, to change guidelines on Medicaid billing, which provides schools with reimbursements for administrative services to students with medical needs. The presenters were concerned about CMS's January 1, 2003 announcement that schools may recover only 50 percent of costs of administrative work related to serving Medicaid-eligible students, as opposed to the 75 percent that schools could recover in reimbursements previously. The presenters stated that CMS's revised guidelines would put children with special medical needs at risk and severely reduce reimbursements to schools.
With respect to this year's legislative efforts, the California School Boards Association commented that it will focus on increase of funding for and re-authorization of the Individuals with Special Needs Education Act (IDEA) which was first enacted in 1975.
For more information about the California School Boards Association, please visit their website at: http://www.csba.org .
PPIC Report: Long-term Reliance on State Money
California's local governments have been increasingly reliant over the past two decades on state money to provide critical local services, a new study by the Public Policy Institute of California (PPIC) shows. Whereas other local administrations throughout the country have been steadily moving in the direction of self-reliance, in California the trend has been towards the opposite.
According to the study, local governments in the state raised and spent 50 percent of their own funds in 1997 as compared to 58 percent in 1977, while the funds that local governments raised and spent elsewhere in the nation increased from 57 to 62 percent between 1977 and 1997. The study also states that California counties went from raising half of all their own funds to raising only 36 percent, while counties in other states increased their use of self-raised funds from 57 to 70 percent.
Part of the reason why local governments in California are more reliant on state funds than their counterparts in the rest of the nation resides with a series of restriction that voters have placed on the ability of local governments to raise local revenue. Beginning with Proposition 13 in 1978, which limited property tax rates, increases in assessed property, and the passage of special taxes, local governments have found it difficult to raise revenue through traditional methods of taxing and fees.
The study, authored by PPIC's Kim Rueben and Pedro Cerdan and titled Fiscal Effects of Voter Approval Requirements on Local Governments, explores the ways local governments in California have used the ballot to raise taxes, assess fees, and pass bond measures. Their findings indicate substantial variation in voter reaction to fiscal measures depending on region, election timing, the type of measure proposed, and the service to be funded.
The authors report that from 1986 to 2000, California voters passed 42 percent of taxes and fees measures and 48 percent of bonds of the total 2,500 local tax and bond measures. Most bond measures were proposed and passed by school districts. In addition, the study found that passage rates varied according to which services would be funded, with transportation and emergency service measures passed most often at 56 percent of the time, and recreation and park measures passed least often at 29 percent of the time. The authors also note regional differences in the number of proposals and passage rates. Local governments in the Bay Area and in southern regions proposed revenue measures the most often, and those measures passed at the highest rate. There were also differences in passage rates across types of government, with county tax measures passing 32 percent of the time, city measures passing 40 percent of the time, and special district elections passing 47 percent of the time. The authors note that a dedicated tax measure is more likely to garner voter support than a general tax, despite the fact that special taxes require a supermajority for approval.
For more information about this study, please visit PPIC's website at http://www.ppic.org.
California's Regional Planning Examined in PPIC Report
A new study by Elisa Barbour of the Public Policy Institute of California that came out in December, 2002 traces the history of regional planning and growth management in California, and examines the question of whether the state can manage growth at the regional level in the future as well as under current governance conditions.
The study provides an overview of the state's planning reform efforts throughout the 1900-2000 period divided into three distinct waves. The first wave of the so-called Progressive Era "home rule" power and urban consolidation occurred during the early years of the 20th century. It allowed city governments autonomy to raise taxes, issue bonds, and build large-scale infrastructure needed for urban expansion without the interference from the state government. According to the study, the "home rule" period resulted in a transformation of the state's metropolitan areas into clusters of independent localities.
The second wave of reforms emerged after World War II, when single-purpose state agencies took over various policy areas of growth planning. Continuing into 1990, the second-wave agencies provided large-scale infrastructure and coordination to implement numerous policy mandates across multiple jurisdictions. However, due to the fact that such single-purpose agencies were not required to match their plans to an integrated set of state policy objectives, the second-wave reforms led to a system of fractured regionalism devoid of comprehensive coordination among agencies responsible for the oversight of a range of growth management areas.
The third and current wave, which began in the 1990s, consists of several elements, namely policy integration across functional areas and an emphasis on collaborative decision-making among existing institutions. Drawing on the Progressive Era "home rule" precedent, many reformers today advocate a kind of reform that would allow cities flexibility in tailoring their responses to the changing economic conditions, rise of global markets, and the challenges of the industrial age. According to the study, there are "twenty one "collaborative regional initiatives" now [that] promote economic competitiveness, social equity, and environmental quality across the state."
After identifying the historical background of growth management in California, Barbour assesses the viability of current reforms and whether they are well-suited for the state. The author concludes that third-wave collaborative models based on developing regional consensus and increasing cooperation among existing institutions will work well in California given greater and more active support from the state government. In order to ensure effective regional planning under new initiatives, the study suggests, state government should work on eliminating barriers to cooperation and reorienting local planning toward regional needs.
For more information on this study, please visit the Public Policy Institute of California website: www.ppic.org.
More Committee Assignments
Congressman Christopher Cox (Newport Beach), who chairs the Homeland Security Committee, announced committee appointments together with committee Ranking Member Jim Turner (TX). The newly established Committee will include California Reps. David Dreier (San Dimas), Rep. Duncan Hunter (Alpine), Rep. Jane Harman (Venice), Rep. Zoe Lofgren (San Jose), and Rep. Loretta Sanchez (Anaheim). In other developments, Congressman Elton Gallegly (Simi Valley) was named to the House Select Committee on Intelligence. Congressman Gallegly was also tapped to serve as Chairman of the International Relations Subcommittee on International Terrorism, Nonproliferation and Human Rights.
Once all assignments are finalized, the Institute will compile and make available a list of all California delegation Committee assignments.
Los Angeles to Get Extra $150 Million for Hospitals
According to an agreement between state and federal officials finalized last week, Los Angeles County public hospital system will receive an additional $150 million over the next two years to help alleviate the health department's fiscal crisis. The county department estimated its deficit within three years to be $709 million, and some placed the figure even higher, given that the department serves a population of 800,000 each year.
The new federal dollars that are going to come out of the deal will help forestall closure of several medical facilities, like Olive View-UCLA and Harbor-UCLA Medical Centers located in Sylmar and Torrance respectively, and the county's network of private outpatient clinics that treat uninsured patients. Several other medical facilities will have to close nonetheless.
Partly brokered by Rep. Jane Harman (Venice) the agreement specifies that $50 million will come from a lawsuit settlement over reimbursement rates for outpatient care at state hospitals, and the remaining $100 million will come from the renewal of a federal program that provides extra money to California hospitals that provide service to large numbers of poor patients. The $150 million figure is less than the $1.4 billion that the Los Angeles county requested last year, but it will reportedly help stave off new cuts within the next two years according to state officials quoted in a recent press report. In addition, the voters passed a new property-tax increase which will raise $168 million annually for the emergency and trauma system.
Foster Care Report Calls for Changes
An estimated 25 percent of children in foster care in California have not received timely medical care and 50 percent lack needed mental health services alleges a newly released report by The Little Hoover Commission. The commission published a similar report in 1999 which detailed problems prevalent in the state's foster care system at that time. The current report states that since 1999 an estimated 2,800 children have left the system at age 18 to become homeless, and that thousands of foster children in the system receive inadequate care because neither the state nor counties want to take responsibility for reforms.
Titled "Still in Our Hands: A Review of Efforts to Reform Foster Care", the report criticizes the system as being in disarray, particularly in Los Angeles County; a system that is funded by the federal government, overseen by the state, and administered by counties. The commission notes that California recently failed a federal performance review, and is facing federal penalties as high as $18 million dollars if conditions do not improve soon. On the other hand, the report praises lawmakers for instituting several reforms and increasing investments in programs that would help children remain with their families while noting that many of the reform efforts have proven futile.
To improve the condition of the foster system in California, the commission recommends appointment of a statewide official who would be responsible for overseeing the system which served 91,509 children in 2002. Other child welfare officials are opposed to such an idea because they argue that appointment of a statewide foster care official will only add to the bureaucracy, and will not necessarily serve to improve the situation.
For more information on The Little Hoover Commission or its reports, please visit: http://www.bsa.ca.gov
In the January 30th Bulletin, the location of the reception hosted by the California State Society in conjunction with the Washington trip of the California League of Cities was incorrect. The March 11th reception will be held in Room 2237 of the Rayburn Building from 6-8 PM.
Omnibus Conference Report Earmarks
Following are some of the earmarks included in the Omnibus Conference Report passed by the House on February 13. There are many more than the below sampling. In the future, we intend to prepare a full list.
Sen. Dianne Feinstein has also compiled a sampling of California-related earmarks in the Omnibus on issues such as Transportation Projects, Lake Tahoe, Public Safety Projects, Agriculture, and Economic Development. See: http://feinstein.senate.gov/03Releases/r-omnibus03.htm .
K-12 Education Earmarks
The conference agreement includes a number of education earmarks, including $500,000 to Imperial Valley Telecommunications Authority for telecommunications equipment and upgrades to support distance education programs in elementary and middle schools; $225,000 to the International Foundation for Music Research in Carlsbad for science-based research on music education; $260,000 to the Korean Youth and Community Center in Los Angeles to expand programs at the Koreatown Academic Learning Center; $600,000 to the L.A. County Office of Education in Downey for the "Early Advantage" initiative to provide preschool and family learning activities and training for parents, child care providers and community members; $300,000 to Los Angeles Harbor College to expand early childhood education curricula, evaluation and professional development; $225,000 to Mission Education Projects in San Francisco to expand education programs for children and families; $500,000 to Oakland Unified School District for personnel and related expenses to expand extended day kindergarten to new sites; $100,000 to Pasadena Unified School District for a math science and technology magnet program at the Washington Middle School; $100,000 to the Pico Union Family Resource Center in Los Angeles to expand education programs for youth and adults; $400,000 to the Pomona Unified School District for a Teacher Literacy Training and Technology program; $250,000 to the Ravenswood City School District in East Palo Alto for an e-learning pilot program at Belle Haven Elementary in Menlo Park; $500,000 to the Riverside County Office of Education to further implement and develop a County Achievement Team model; $400,000 to the Sacramento Housing and Redevelopment Agency in coordination with the Sacramento City Unified School District for early childhood education, after school and parental support programs for students in the Franklin Villa community; $500,000 to the San Bernardino County Superintendent of Schools to expand schools-to-careers initiative, including the Virtual Hi-Tech Program, the Virtual Career Library and teacher training activities; $217,000 to the San Pasqual Academy in Escondido for technology infrastructure; $100,000 to the Santa Barbara Community youth Performing Arts Center for the Santa Barbara Junior High Theatre; $50,000 to the Santa Barbara High School District for the San Marcos High School Health Careers Academy; $55,000 to the South County Family Educational and Cultural Center in Grover Beach for the Computers to Youth program to expand education programs for students; $250,000 to the Gibson Foundation in Santa Monica for music education programs; $225,000 to the West Ed Eisenhower Regional Consortium for Science and Mathematics in San Francisco for 24 Challenge and Jumping Levels Math; and $20,000 to Westside High School for equipment.
Higher Education Earmarks
Earmarks in higher education accounts include $400,000 to California State University Northridge for technology and other expenses to develop an entertainment engineering curriculum; $250,000 to City College of San Francisco for the National Articulation and Transfer Network to facilitate the completion of postsecondary education by underrepresented African-American, Hispanic/Latino, and Native American students; $35,000 to Cuesta College in San Luis Obispo for supplies and equipment for its nursing education program; $700,000 to Cuyamaca College in Rancho San Diego for expanded math and science education; $300,000 to L.A. Mission College for its Economic Self-Help project to train small business owners; $250,000 to L.A. Valley College for a career ladder nursing program in collaboration with Los Angeles Southwest College; $200,000 to the Maxine Waters Employment Preparation Center in the Los Angeles Unified School District to expand education and training programs; $200,000 to the Mendocino-Lake Community College District in Ukiah to develop an associates degree program in nursing; $500,000 to National University in La Jolla for the Institute for Persons Who Are Hard of Hearing or Deaf; $400,00 to New College of California in San Francisco to establish degree programs in community studies, urban ecology and sustainability studies, and spirituality and politics through a new institute, and for student scholarships; $93,000 to Pasadena City College to develop a biotechnology training program; $900,000 to Santa Clara University for telecommunications and technology equipment and upgrades; $500,000 to the Santa Clarita Community College District for equipment and personnel for the University Center; $300,000 to Sonoma State University in Rohnert Park for communications and laboratory equipment to establish a graduate program in computer and engineering sciences; $250,000 to U.C. Merced for acquisition of science equipment; $250,000 to U.C. Merced to establish the Sierra Nevada Research Institute, including student fellowships and internships, software and equipment; $400,000 to the University of the Pacific in Stockton for the Eberhart School of Business; $700,000 to the University of Redlands and the CSU San Bernardino to enhance their current Arabic and Islamic Studies programs; $700,000 to the University of Redlands for technology enhancement; $1 million to the University of San Francisco for education, service and research programs at the Center for Public Service and the Common Good; and $425,000 to West Los Angeles College in Culver City for equipment, curricula, faculty, and other expenses to develop an emergency health services training program.
Institute of Museum and Library Services Earmarks
The agreement provides $245.5 million in funding for libraries, higher than the House or Senate numbers, and it adds various earmarks, which include: $500,000 to the Asian Art Museum in San Francisco; $250,000 to the Bowers Museum in Santa Ana; $275,000 to CSU San Marcos to upgrade catalog and provide computer stations for the library; $100,000 to the Children's Museum of Stockton for a Delta Regional Exhibit; $100,000 to Fine Arts Museums of San Francisco; $900,000 to the Fresno Metropolitan Museum of Art, History and Science; $92,000 to the Glendale Public Library to implement the Homework AssisTeens program; $200,000 to Hesperia Community Library; $300,000 to the Monterey County Youth Museum; $75,000 to the Natural History Museum of Los Angeles for its "Earth Oddessy" environmental science program; $200,000 to Orangevale Library in Sacramento; $500,000 to the San Bernardino County Museum to develop the Inland Empire Archival Heritage Center and Web Module; $110,000 to the Simon Wiesenthal Center's Los Angeles Museum for Tolerance for the Tools for Tolerance for Educators program to provide teacher training in diversity, tolerance and cooperation; $300,000 to the Whittier Public Library to establish a children's homework center and family literacy center; and $100,000 to the Zimmer Children's Museum of the Jewish Community Centers of Greater Los Angeles for expansion of the YouThink program.
Health Facility Earmarks
The conference agreement provides $298 million for construction and renovation of health care and other facilities, with earmarks including: $150,000 for Children's Hospital Central California for construction fo the Pediatric Trauma Unit in Los Angeles; $475,000 for Children's Hospital of San Diego; $100,000 to the City of Glendale for the Edison-Pacific Community Medical Clinic; $650,000 to the County of San Mateo; $500,000 to the Department of Public Health in Redding for a new Public Health Laboratory; $500,000 to the Eisenhower Medical Center in Rancho Mirage; $300,000 to Family Health Centers of San Diego; $250,000 to the Friendship House Association of American Indians in San Francisco; $250,000 to Glide Memorial Foundation in San Francisco; $200,000 to Grossmont College in El Cajon; $700,000 to the Hi-Desert Medical Center in Joshua Tree; $240,000 to Los Angeles City College; $300,000 to Moneta Gardens Improvement Inc in Hawthorne; $1.25 million to MultiDimensional Imaging Inc in Newport Beach; $175,000 to Navidad Medical Center in Salinas; $1.3 million to the Orthopaedic Hospital of Los Angeles; $100,000 to Paradise Valley Hospital in National City; $900,000 to Placer County Children's Emergency Shelter in Auburn; $150,000 to Preventative Medicine Research Institute in Sausalito; $550,000 to Touro University College of Osteopathic Medicine in Vallejo; $100,000 to U.C. San Diego to purchase and install new angiography equipment in a new interventional radiology unit; $200,000 for the Hahn School of Nursing at the University of San Diego; and $400,000 to Walden House in San Francisco.
The Conferees also agreed to $1,052,770,000 for Agricultural Research Services activities. Funding increases are agreed to for the following California laboratories and areas of research:
$200,000 for Genetic Resources Research, Riverside; Parlier; and Davis
$400,000 for Agricultural Genome Sequencing in Albany
$400,000 for Biobased Products at Albany
$400,000 Technologies for Biobased Products at Albany
$200,000 to Improve Conversion of Agricultural Materials to Biofuels at Albany
$400,000 for research pertaining to Limit Transgene Activity to Specific Tissue at Albany
$200,000 to Develop Biocontrol Programs for Invasive Pests at Davis
$400,000 BSE/TSE Research at Albany
$40,000 for the Greenhouse Lettuce Germplasm at Salinas
$200,000 for Olive Fruit Fly Research, Parlier
$250,000 Sustainable Viticulture Research, Davis.
In addition, the Cooperative State Research, Education, and Extension Service is funded at $620,827,000 with appropriations for the following California projects:
$1,900,000 Exotic Pest Diseases
$40,000 Olive Fly
$430,000 Ozone Air Quality
$2,250,000 Pierce's Disease
$100,000 Sudden Oak Death
$500,000 Sustainable Agriculture
$1,800,000 Viticulture Consortium (split between CA, NY, PA)
The Conference Agreement provides $825,004,000 Natural Resource Conservation Services including:
$375,000 for Contra Costa County Watershed Surveys
$1,000,000 for the East Valley Conservation District/Santa Ana Watershed
Authority Plant Removal project
$84,000 for the Agricultural Non-point source water quality-San Luis Obispo Farm Bureau
$600,000 for the Monterey Bay Sanctuary
$400,000 for the Tahoe Basin Soil Conservation Project (NV/CA)
$200,000 for the Lake Tahoe Basin area soil survey (NV/CA)
A report from the office of Senator Dianne Feinstein totaled funding for Sudden Oak Death at $3.7 million, and noted funding for a Center for Exotic Pest Research of $1.9 million. It also noted funding for addressing Glassy-Winged Sharpshooter problems via a State Control Plan of $17.5 million, Agriculture Research Service funding of $3.35 million, and Competitive Research Grants of $2.25 million.
Army Corps of Engineers - General Investigations Earmarks
General investigations earmarks for the Army Corps of Engineers include:
Aliso Creek Mainstem $300,000; American River Watershed $1.28 million; Arana Gulch Watershed $50,000; Arroyo de la Laguna $100,000; Ballona Creek $175,000; Bolinas Lagoon $300,000; California Coastal Sediment Master Plan $100,000; City of Inglewood $200,000; City of Norwalk $100,000; City of San Bernardino $250,000; City of Santa Clarita $100,000; South Coast - LA County $350,000; Coyote Dam $100,000; Desert Hot Springs $200,000; Eastern Municipal Water District $150,000; Estudillo Canal $100,000; Folsom Dam $100,000; Grayson and Murderer's Creeks $200,000; Huntington Harbor Dredging $100,000; Laguna Creek Watershed $100,000; Laguna de Santa Rosa $100,000; Llagas Creek $325,000;Los Angeles County $225,000; Los Angeles County Drainage Area (Cornfields) $100,000; Lower Cache Creek (Yolo County) $250,000; Lower Mission Creek $500,000; Malibu Creek Watershed $200,000; Marin County Shoreline - San Clemente Creek $25,000; Marina Del Rey and Ballona Creek $275,000; Matilija Dam $200,000; Middle Creek $50,000; Morro Bay Estuary $250,000; Mugu Lagoon $250,000; Dry Creek in Middletown $200,000; Lower Sacramento River Riparian Revegitation $100,000; Napa River Salt Marsh Restoration $1 million; Newport Bay $300,000; Newport Bay/San Diego Creek Watershed $250,000; Ocean Beach $50,000; Santa Ana River Basin $200,000; Coast Beach Erosion - Orange County $250,000; Orange County SAMP $300,000; Pajaro River at Watsonville $500,000; Pajaro River Basin Study $100,000; Fine Flat Dam $200,000; Poso Creek $200,000; Prado Basin $50,000; Riverside County SAMP $1 million; Rock Creek and Keefer Slough $25,000; Russian River Ecosystem Restoration $200,000; Sacramento-San Joaquin Delta $100,000; Sacramento-San Joaquin Comprehensive Basin Study $3.1 billion; San Bernardino County $200,000; San Clemente Shoreline $398,000; San Diego SAMP $600,000; San Diego County Shoreline $500,000; San Francisco Bay $300,000; San Jacinto River $250,000; San Joaquin River Basin (various) $900,000; San Juan Creek $200,000; San Pablo Bay Watershed $240,000; Santa Ana River - Big Bear Lake $300,000; Santa Clara River - City of Santa Clarita $200,000; Santa Cruz Port $50,000; Santa Rosa Creek Watershed $260,000; Santa Ynez River $50,000; Solana-Encinitas $500,000; Sonoma Creek $150,000; Strong and Chicken Ranch Sloughs $100,000; Sutter County $677,000; Tahoe Basin $1.5 million; Tijuana River Valley $300,000; Tujunga Wash Restoration $100,000; Upper Guadalupe River $200,000; Upper Penitencia Creek $559,000; Upper Santa Ana River Watershed $150,000; Ventura and Santa Barbara County Shoreline $200,000; Ventura Harbor Sand Bypass $150,000; Westminster- Coyote and Carbon Canyon Creek Watersheds $50,000; Westminister - East Garden Grove $300,000; White River and Deer Creek $150,000; Whitewater River Basin $350,000; Wildcat and San Pablo Creeks $50,000.
Army Corps of Engineers - Construction Earmarks
Corps of Engineers construction funding includes the following earmarks: American River Watershed-Folsom Dam Modifications $4.9 million; American River Watershed $22.3 million; City of Santa Clarita $1.5 million; Corte Madera Creek $100,000; Coyote and Berryessa Creeks $750,000; Farmington Groundwater Recharge Demo Program $1 million; Guadalupe River $8 million; Hamilton Airfield Wetlands Restoration $5 million; Harbor/South Baywater Recycling $6 million; Imperial Beach - Silver Strand Shoreline $600,000; Kaweah River $11 million; Los Angeles Harbor $12 million; Lower Sacramento Area Levee Reconstruction $1.68 million; Marysville-Yuba City Levee Reconstruction $5.9 million; Merced County Streams $500 million; Mid Valley Area Levee Reconstruction $ 5.2 million; Murietta Creek $1 million; Napa River $9 million; Newport Bay Harbor $972,000; North Valley Regional Water Infrastructure $1 million; Oakland Harbor (50 foot project) $12 million; Petaluma River $6 million; Sacramento River $2 million; Sacramento River Bank Protection $2.6 million; Sacramento River Deepwater Ship Channel $250,000; Sacramento River - Glenn-Colusa Irrigation District $806,000; San Francisco Bay to Stockton $1.8 million; San Lorenzo River $2.8 million; San Ramon Valley $300,000; Santa Ana River Mainstem $35 million; Santa Barbara Harbor $100,000; South Perris $1 million; South Sacramento County Streams $2 million; Success Dam $1 million; Surfside - Sunset - Newport Beach $4.3 million; Tule River $2 million; Upper Sacramento Area Levee Reconstruction $3.5 million; and Yuba River Basin $500,000.
Army Corps of Engineers - Operation and Maintenance Earmarks
Corps of Engineers earmarks for operation and maintenance include: Black Butte Lake $2 million; Bodega Bay $1.9 million; Buchanan Dam $1.8 million; Channel Islands Harbor $4.2 million; Coyote Valley Dam $3.6 million; Crescent City Harbor $600,000; Dry Creek Lake and Channel $4.8 million Farmington Dam $308,000; Hidden Dam - Hensley Lake $1.8 million; Humboldt Harbor and Bay $4.5 million; inspection of completed works in CA $1.1 million; Isabella Lake $1.2 million; Los Angeles - Long Beach Harbor Model and Harbors $490,000; Marina Del Rey $60,000; Merced County Streams $313,000; Mojave River Dam $259,000; Morro Bay Harbor $1.3 million; Moss Landing Harbor $1.5 million; New Hogan Lake $2 million; New Melones Lake $1.7 million; Newport Bay Harbor $1 million; Oakland Harbor $11.2 million; Oceanside Harbor $1.2 million; Petaluma River $1.3 million; Pillar Point Harbor $200,000; Pine Flat Lake $2.5 million; Port Hueneme $500,000; project condition surveys in CA $1.1 million; Richmond Harbor $4.4 million; Sacramento River (30 foot project) $2.2 million; Sacramento River & Tributaries Debris Control $1.3 million; Sacramento River Shallow Draft Channel $145,000; San Diego Harbor $150,000; San Diego River and Mission Bay $60,000; San Francisco Bay Delta Model Structure $1.2 million; San Francisco Bay Long Term Management Strategy $1 million; San Francisco Harbor and Bay Drift Removal $2.1 million; San Francisco Harbor $1.9 million; San Joaquin River $2.5 million San Pablo Bay and Mare Island Strait $1.5 million; Santa Ana River Basin $3.4 million; Santa Barbara Harbor $1.8 million; scheduling reservoir operations in California $1.4 million; Success Lake $2 million; Suisun Bay Channel $3.8 million; Terminus Dam - Lake Kaweah $1.8 million; Ventura Harbor $3.9 million; and Yuba River $63,000.
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