Budget Subcommittee Spotlight: 04/05/2024

Subcommittee #1 (Education)

Governor’s Proposals for Chronic Absenteeism Lack Funding and Data. The state’s K-12 school chronic absenteeism remains alarmingly high at 24 percent, which is twice the pre-pandemic level of 10 percent. The subcommittee discussed the Governor’s proposals related to Attendance Recovery, which would allow schools to provide opportunities for students to make up lost class time. The proposals would also allow schools to use attendance recovery time for purposes of determining how much money schools receive and for documenting students’ chronic absenteeism. Senator Scott Wilk (R-Santa Clarita) raised concerns regarding the lack of data and funding related to the proposals, while also noting the need to address the root causes of continued chronic absenteeism among California students. As proposed, the attendance recovery programs would impact existing after-school programs, and the Senator also expressed the importance of maintaining the current funding level for these after-school programs. The subcommittee will vote on this item at a future hearing.

Subcommittee #3 (Health and Human Services)

“Complete Failure” to Give Hearing Aids to Children in Need. The subcommittee was alarmed by the acknowledgement by the Department of Health Care Services (DHCS) that only 2 percent of hearing-impaired children in need of hearing aids are being served by the Hearing Aid Coverage for Children Program (HACCP). An estimated 20,000 children in California are eligible for HACCP, but after three years and more than $30 million budgeted, the program has only enrolled 422 children. With a lack of pediatric audiologists participating in HACCP because of inadequate reimbursement rates, the subcommittee said that these results show that HACCP is a “complete failure.” In 2023, the Legislature sent Governor Newsom a bi-partisan bill, SB 635, to resolve this problem, but the Governor bent to special interests and vetoed the bill. The subcommittee asked when will the Governor “put ego aside” and “go in another direction” to actually serve hearing-impaired children. The subcommittee will vote on this item in a future hearing. 

Subcommittee #4 (State Administration and General Government)

Broadband Middle Mile Project and Oversight Data Unavailable. The subcommittee discussed the $1.5 billion General Fund request to support Middle Mile Broadband projects within the California Department of Technology (CDT). The CDT indicates the funding would be allocated to CalTrans construction projects, yet key information about those projects is unavailable at this time. The Legislative Analyst’s Office testified that the state should consider other avenues of funding or less costly non-CalTrans construction projects. Senator Roger Niello (R-Fair Oaks) questioned CDT’s plan to spend the funds on higher cost CalTrans projects. Considering the severe budget shortfall, the Legislature will need detailed information from CDT in order to ensure the projects meet the critical needs of the state within current budget confines.

NOTE: Subcommittees #2 and #5 did not meet this week.