California Policy Options 2014

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to take pressure off the community colleges to come up with creative ways of generating funds, even if they were the weak sister to K‐12 in political terms. Santa Monica College had tried to implement a two‐tier fee system for certain courses that were in short supply. Essentially, the idea was to charge more for extra sections of certain core courses that the college could not afford to put on in adequate numbers. Some students would pay extra for the supplementary sections if they had the money and the wish to do so, and that would create more space in the standard fee courses. The idea was suspended after a disturbance at a meeting to discuss the proposal. But in April 2013, the chancellor of the community colleges shut the plan down completely. 83 The UC pension plan receives roughly two out of three dollars from non‐state sources, chiefly federal research grants and contracts, patient revenues, and fees for administering the U.S. Department of Energy labs. However, it cannot charge these non‐state sources at higher rates for pension contributions than it charges state funds. So every dollar not put into the plan on behalf of state‐funded employees that should be collected (but isn’t) creates a three dollar increase in liability for the plan as a whole. The regents can borrow to put funds into the plan, either from internal reserves and accounts or from the outside market. Some internal borrowing has occurred. 84 For example, various tuberculosis control activities are mandated by the state for local governments to carry out. The governor’s budget proposed eliminating the mandate. 85 Quoted in “Jerry Brown promises opponents ‘battle of their lives’ on education overhaul,” CapitolAlert blog of Sacramento Bee, April 24, 2013. Available at http://blogs.sacbee.com/capitolalertlatest/2013/04/jerry‐brown‐ promises‐opponents‐battle‐of‐their‐lives‐on‐education‐overhaul.html. 86 Quoted in “Jerry Brown urges budget restraint despite strong revenues,” CapitolAlert blog of Sacramento Bee, April 23, 2013. Available at http://blogs.sacbee.com/capitolalertlatest/2013/04/jerry‐brown‐urges‐budget‐ restraint‐despite‐strong‐revenue.html. 87 Matthew Garrahan, “Second Coming,” Financial Times, April 5, 2013. Available at http://www.ft.com/cms/s/2/331e85b0‐9cb1‐11e2‐9a4b‐00144feabdc0.html. 88 California Legislative Analyst’s Office, The 2013‐14 Budget: Overview of the May Revision, May 17, 2013, p. 12. Available at http://www.lao.ca.gov/reports/2013/bud/may‐revise/overview‐may‐revise‐051713.pdf. 89 Quoted in “Rapid Response Roundup: Jerry Brown’s May budget proposal,” CapitolAlert blog of Sacramento Bee, May 14, 2013. Available at http://blogs.sacbee.com/capitolalertlatest/2013/05/post‐36.html. 90 A test of the centrists came in a bill to target and penalize large employers whose workers ended up on Medi‐Cal rolls due to low pay. The bill was essentially aimed at nonunion Wal‐Mart, long a target of union complaints. The bill needed a supermajority to pass and failed in late June 2013, due to defection of centrist Democrats from swing districts. 91 Quoted in Anthony York, “Jerry Brown gathers his thoughts while lying low,” Los Angeles Times, August 13, 2013. Available at http://www.latimes.com/local/political/la‐me‐pc‐jerry‐brown‐ivan‐illich‐political‐theory‐ 20130813,0,3369585.story. 92 The assembly and senate versions of the budget as of late May 2013 can be found (with comparison to the governor’s May revise) in California Legislative Analyst’s Office, The 2013‐14 Budget: Conference Committee Overview, May 31, 2013. Available at http://lao.ca.gov/handouts/Conf_Comm/2013/Conference‐Overview‐ 53113.pdf. 93 Mark Baldassare et al, May 2013: Californians and Their Government, Public Policy Institute of California, May 2013. Available at http://www.ppic.org/content/pubs/survey/S_513MBS.pdf. 94 California Legislative Analyst’s Office, MOU Fiscal Analysis: Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21 (SEIU Local 1000), June 21, 2013. Available at http://www.lao.ca.gov/reports/2013/MOU_Fiscal/MOU‐Fiscal‐ Local‐1000‐062113.pdf. 95 The State Board of Education and the Superintendant of Education were given key roles in administering the program and determining the precise dollar allocations. 96 Generally, organized labor favored the termination of the enterprise zone program – characterizing it as an ineffective subsidy to employers without a positive job effect – and local governments opposed the termination. 97 Jim Sanders, “Pérez tuition aid plan not best way to increase college access, analyst says,” Sacramento Bee, June 14, 2013. Available at http://www.sacbee.com/2013/06/14/5496173/perez‐tuition‐aid‐plan‐not‐best.html. A

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