Budget Spotlight - 03/28/2025

Subcommittee #1 (Education) Laird (D-Santa Cruz) Chair, Ochoa Bogh (R-Yucaipa), and Pérez (D-Pasadena)

Department of Education Failure Led to Mismanagement of Taxpayer Dollars. The subcommittee discussed the mismanaged implementation of the $500 million Golden State Pathways Program, which is intended to promote educational pathways for high school students to high-wage, high-skill, and high-growth jobs in fields such as technology, healthcare, and education. Leadership at the Department of Education did not become aware of the failure of the grant implementation until two years after the funding had been authorized. The department noted that “it was a failure; it was a perfect storm of everything that could possibly go wrong, went wrong.” The members of the subcommittee asked what steps the department was taking to prevent a similar situation from happening in the future, and how it this could impact the program moving forward. Senator Ochoa Bogh (R-Yucaipa) noted that hearing about the difficulties the department had with administering the grant program, she “could only imagine the complexity on behalf of the LEAs (Local Education Agencies) trying to navigate government and the application process…especially for our rural LEAs.”

Subcommittee #2 (Resources, Environmental Protection, and Energy) Allen (D-Santa Monica) Chair, Choi (R-Irvine), Blakespear (D-Encinitas), and McNerney (D- Pleasanton)

The subcommittee did not meet this week.

Subcommittee #3 (Health and Human Services) Weber Pierson (D-San Diego) Chair, Grove (R-Bakersfield), Menjivar (D-San Fernando Valley)

A Balance of Justice and Welfare for Youth Offenders. The subcommittee heard the Governor’s plan to alter the state’s funding formula for juvenile justice programs run by county probation departments. Senator Shannon Grove (R-Bakersfield) offered a balanced approach to guide the allocation of funding, stating that while untreated childhood trauma greatly influenced the youth to commit these violent crimes, the public is demanding a return to reasonable public safety policies. Senator Grove stated that we need to “address the impacted youth,” but can’t “let violent individuals out in the streets.” The Senator then offered up suggestions to improve state oversight of the delivery of rehabilitative care for youth offenders, including better state tracking of county spending and detailed reporting of program outcomes and recidivism rates. The subcommittee will vote on the new formula later this spring.

Subcommittee #4 (State Administration and General Government) Cabaldon (D-Yolo) Chair, Niello (R-Fair Oaks), and Smallwood-Cuevas (D-Los Angeles)

Governor Wants $5 Million to Define Loneliness, But Fails to Provide Funds for Critical Housing and Homelessness Programs. The subcommittee discussed, and ultimately rejected, the Governor’s request for $5 million General Fund for a “Belonging Campaign.” Senator Roger Niello (R-Fair Oaks) questioned the Administration’s prioritization of a new program in light of multiyear budget deficits, and the lack of new funding for housing and homelessness programs. When Senator Niello asked about outcome and performance metrics, the Administration responded that research was necessary to define “loneliness and performance and outcome metrics would be considered as part of that endeavor.” Lacking a compelling justification, and given the difficult budget decisions facing the state, the request for a $5 million loneliness campaign appeared to be unnecessary. All three subcommittee members voted to reject it.

Subcommittee #5 (Corrections, Public Safety, Judiciary, Labor, and Transportation) Richardson (D- San Pedro) Chair, Seyarto (R-Murrieta), Wahab (D-Hayward), and Durazo (D-Los Angeles)
Will the High-Spend Rail be Derailed? The subcommittee received an update on the progress, or lack thereof, of the California High-Speed Rail Project. Since voters approved the project in 2008 under false promises:

  • The project cost has ballooned by $95 billion from the initial promise of $33 billion, and is now $100 billion short of enough money to complete construction.
  • Operations planned to begin in 2020 are unlikely to begin before 2034.
  • The initial trains will only serve the Central Valley.
  • No private investment has materialized.

Joining other members of the committee, Senator Kelly Seyarto (R-Murrieta) questioned if the train will ever be built, given the lack of a viable plan and sufficient funding to build it. Seyarto commented, “It seems like we just keep going down the road because we’ve already gone this far,” noting that sometimes it is best to pull the plug. He further stated, “I remain very skeptical of the future success of this project.” The subcommittee plans to hold further discussions on High-Speed Rail after receipt of a supplemental report, expected this summer, and before deciding if spending from the state’s Cap and Trade program should continue.