golden ideas

for a progressive california

Fall 2010

Featured Policy: Fixing Food Stamps in California

Ensuring Stable Revenues for California

Ian Magruder, Diane Coppini and Ilana Newman University of California Berkeley

Fixing Food Stamps in California

Rajiv Narayan University of California Davis

Message from the Editors

A Comprehensive Plan for Healthcare Infrastructure in Californias Heartland: Addressing Central Valley Healthcare Needs

Megha Mahida and Amreen Rahman University of California Los Angeles

Mitigate Southern California Trafc: Coordination, Alternatives and a Congestion Price System

Erika K. Solanki and Karl Taraporewalla University of California Los Angeles

Fixing Nutritional Access in Under-Served Urban Centers

Torin Jones and Willis Hon University of California Berkeley

Introducing Competition into Californias Prison Systems

Brent Gaisford University of California Los Angeles

Combating Student Homelessness: 24-Hour Peer-Run Services

Jenna Edzant, Joelle Gamble and Amreen Rahman University of California Los Angeles

A Tax Revolution in California

Kunitaka Ueno University of California San Diego

Implement Rehabilitation Programs to Reduce Prison Overcrowding

Shah-Rukh Paracha

contents

Ensuring Stable Revenues for California

Ian Magruder, Diane Coppini and Ilana Newman, University of California Berkeley

History
California, the Golden State, was once at the forefront of educa5on, innova5on, and technology.Not only isCaliforniarichwith diversity andcrea5vity,butit has also consistently been ranked as the >h or sixth largest economy in the world. Up to 2005, the state expanded services and spent freely; however since the energy crisis and the dot com bubble burst, California hasbecomethestateof NO: nofunding forschools,no funding for services, no funding for infrastructure. Revenues inCaliforniauctuate,strainingthebudget.In 5mesof lowand immobileearnings,thestateisforced tomakecuts.In contrast,during 5mesof high revenue, thestatespendsfreely.TorestoreCaliforniaasa leader, we must provide essen5al services for our residents consistently. In March of 2004, California voters approved Proposi5on 58, establishing the Budget Stabiliza5on Account (BSA).2 This proposi5on requires the State Controllertotransfer3%of thees5matedGeneralFund revenues from the General Fund to the BSA. The legislature may transfer amounts in excess of the specied percentage to the BSA. In addi5on, the Governor, byexecu5veorder, may suspendthetransfer to the BSA. Subsequently, for the last two years, any money transferred into the BSA has been transferred back into theGeneralFund. TheBSA currently hasno money. California hasanother special fund,the Special Fund for EconomicUncertain5es (SFEU). Currently, any unexpected revenues the state receives are deposited intotheSFEU.ItoperatesliketheBSAtransfermoneyin from the general fund, or transfer money out to the generalfund.

California.The following threerecommenda5onswould strengthenandexpandtheabilityofthereserves sothat the reserves could providefunding for California when thestatefacesbelowaveragerevenues. Recommenda*on 1: Expand the size of the rainy day reservefund. Increase the size of the Budget Stabiliza5on Account(BSA)fromthecurrentlevel,either5%of state revenues or $8 billion (whichever is higher) to 15% of revenues. This increase would bring the fullsize of the BSAtoanes5mated$13.8billioninthenextscalyear.2 Onceit reachesthenew capacity,thelargerBSA would give the legislature a larger fund of reserves to draw fromincaseofnaturaldisastersordrama5cdecreasesin revenueduringeconomicdownturns. Recommenda*on2:Ensurethatfundscanberemoved whennecessaryduringlowrevenueyearsandestablish criteria for what circumstances warrant removal of funds. Passalaw thatallowsthelegislaturetoremove fundsfrom the BSA. Funds would beremoved only for emergencies such as res, earthquakes, and other naturaldisasters or whenstaterevenues arenot high enoughtomatchstatespendinglevelsetintheprevious year, adjusted for popula5on and ina5on changes. In ordertoprotectreservesfortheyearsinwhichtheyare mostneeded,BSAfundscouldnotbewithdrawnforany otherpurposes. Recommenda*on 3: Ensure that funds will be added duringhighrevenueyears. TheGovernorwillbeabletoonlystoptheBSAtransferin yearswhenthestatedoesnothaveenoughrevenuesto payforstatespending equaltothepreviousyears level of spending, adjustedfor popula5on and ina5on. This limita5on would ensure that the Governor does not suspendtheannualtransferofGeneralFundmoneyinto the BSA in 5mes when revenues outpace costs, for example during the 1990s economic boom, when Californiahad excesstax revenuethatcouldhaveeasily beenshi>edintoarainingdayfund.3 Inshort,apor5on of Californiarevenuesshould be moved into a fund to saveforfuture5mesofeconomicdownturn.

Policy Alternatives
Given that both of Californias rainy day reservefunds, the SEFU and the BSA, are presently at low levelsandunabletoservethestatewhenrevenues decreasedrama5cally, reformisneeded.SincetheSEFU is a smaller fund primarily used for any unexpected revenues or expenses between budgets, this policy proposal focuses on reforming the BSA, which has a greater mandate to ensure the nancial stability of

Outcomes & Conclusion

Theul5mateofgoalofthispolicyproposalisthe stabiliza5on of Californias budget in order to prevent regressive tax increases and dras5c cuts in funding for state programs during periods of lowrevenue. The targets of recent cuts in state funding have been educa5on,healthcare,socialservices,andrehabilita5ve andcorrec5onalfacili5es.Diminu5onoftheseprograms notonly compromisesthequality of lifeand welfareof vulnerable individuals, but is also a detriment to the wellbeingandfutureprosperityofCaliforniaasawhole. Educa*on: The primary vic5ms of recent state budget instability havebeen students. According totheocial Legisla5ve Analyst Oces 200910 California Spending Plan,thelargestsinglegroupofsolu5onsadoptedduring the budget processtotaling $14.5 billionbrought Proposi5on 98spending for K14educa5ondowntoits minimum guaranteed funding level under the State Cons5tu5oninboth200809and200910.2

elementarystudentsinstateswithnewlyreformedscal discipline, accountability, and transparency policies. Preven5on of further budget cuts in educa5on would benet current students as well as employees experiencingfurloughsandlayos. Services: The sector of health and human services, an essen5al resource for Californias most underserved ci5zens, also has been a prominent vic5m of scal vola5lity.RecentlytheGovernorvetoed$80millionfrom the 200910 appropria5on for Child Welfare Services Program,thestatelegislaturecutfostercareprograms by tenpercent,andtheHealthyFamiliesProgramnowface a$196 million state funding shormall for 200910.3 In addi5on, General Fund support for community clinic programshasbeencutby $35.1millionandpaymentto Medicalpublicsafetynethospitalshasbeenreducedby ten percent, according to research by the California BudgetProject.4Alongsidethepreserva5onofcorporate tax breaks, thecon5nued lack of budget stabiliza5on is clearly unjust. Further undermining the statesrevenue base willlead tofurther cutsthatplacetheyoung, the sick, and the poor at the bonom of Californias priori5za5onhierarchy. Programs: Otherprogramsthathaverecentlyfacedfunding cuts include correc5onal and rehabilita5ve facili5es, publicworksplans,andinfrastructuremaintenance.The proposedpolicieswouldincreasethesizeof theBudget Stabiliza5on Account, which would result in prolonged transfer money at theannual3%ratefromtheGeneral FundintotheBSA. This presentsthetradeo ofshort term setup costs with longterm benets of scal stability.Itwilltake5mefor theBSA toreachexpanded size,andthecostofreachingthetargetsizewillbeshort term spending that is diverted into the BSA. However, when revenue is down in the future, cuts in crucial programspreviouslydiscussedcanbeavoidedbytapping into a strengthened and expanded Budget Stabiliza5on Account.

Increasesinclasssizes,cancelingofsummerand a>erschool programs, and laying o teachers are examples of the damages sustained by the state legislatures misguided priori5za5on of funds. Recent budget cuts to higher educa5on call into ques5on the statescommitment to provide itsresidents withaccess to a highquality, aordable college educa5on. In the absence of funding, fewer Californians have the opportunitytoearnacollegedegreeatthestatespublic universi5es.Inthefuture,thestate(andglobaleconomy) willbeinshortsupplyofhighlyskilledworkers. Ideally, the outcome of the proposed budget stabiliza5on policies will guarantee the intransience of fundsforeduca5on becauseitwillallowrevenueto be u5lizedforanaspectofthestateagendathattranscends presentconcernsinprepara5onforthefuture.Research bytheAmericanEduca5onalResearchAssocia5onshows a correla5on with higher reading and math scores of

SOURCES?!?

Fixing Food Stamps in California

Rajiv Narayan, University of California Davis

Introduction
Un5l recently known as the Food Stamp Program,theSupplementalNutri5onAssistanceProgram (SNAP)func5onsasasafetynetformillionsof families. By supplemen5ng the income of their beneciaries, SNAP improves its par5cipants access to a healthy, completediet.Na5onally,theprogramserves34million peopleamonth.3millionCalifornianspar5cipateinthe programeachmonth,though3millionmoreareeligible, butnotpar5cipa5ng.2 This paper will consider the shormalls of the Californian opera5on through an analysis of the programs history, the programs characteris5cs in California, and recent legisla5ve developments in the State Assembly. It will then aggregate the key policy pimalls aic5ng California, before nally appraising poten5alcoursesofac5on.

through the 1970s.Where one million individuals used FoodStampsin1966,theprogramsbenetsreached15 million by October 1974. This tremendous expansion createdcauseforaconcernthatcon5nuestoframethe FoodStampsdebate:Howcanweexpandtheprogramto helpmore,whiles5llkeepingtheprogramaccountable? The 1970s saw major legisla5ve updates to the program; na5onal standards for eligibility requirements were implemented, funding schemes were adjusted to balancetheresponsibilitybetweenstatesandthefederal government,andtheprogramwasexpandedtoaidevery state.In1977,theprogramwasoverhauledonceagainin The Food Stamp Act, which included provisions to expediteaccessand5ghtencontrolsonfraud. While legisla5on in the early 1980s cut back benets and limited eligibility criteria, the midtolate 1980ssaw amild expansion of theprogram toaddress rising domes5c hunger. To enhance the eciency and eec5venessoftheprogram,ElectronicTransferBenets (EBT)beganin1988(theuseof EBT cardswasuniversal acrossthecountryby2004).EBTeliminatedtheneedfor coupons, allevia5ng the concerns of those who felt s5gma5zedbytheirpar5cipa5onintheprogram. A>er hitng a peak of bene5ng 28 million individualsin1994,par5cipa5onbegantowanethrough theendof thedecade.Whilepartof thisdeclinecanbe anributedtofallingunemployment,muchof ithasgone unexplained. One factor to consider is 1996 Welfare Reform, which brought cuts and limita5ons to the program by removing certain popula5on subgroups (adults without dependentsand legal immigrants) from thoseabletobenetfullyfromtheallonedaid.However, the1997BalancedBudgetActandthe1998Agricultural Research, Educa5on,and Extension Actadjustedcertain provisions to restore some of the cut aid and marginalizedgroups. Aspar5cipa5onfellto17.2millionbyFY2000,the USDA refocused on facilita5ng access to the program. Themajorpieceoflegisla5onintheearly2000sforFood Stampswasthe2002FarmBill(FoodSecurityandRural Investment Act of 2002). It restored several eligibility criteria, provided incen5ves for states with low error counts in enrollment (and disincen5ves for states with repeatedly high error counts), awarded performance basedgrantstowelladministeredprograms,andoered

History
The Supplemental Nutri5on Assistance Program began as a series of itera5ons under the name Food Stamps.Theini5alpurposeoftheprogramin1939was to address what its rst administrator, Milo Perkins, iden5edas agreatgorgewithagriculturalsurpluses on one side and underfed, unemployed urbanites on the other.2 When the program ended four years later in 1943, itwas because the condi5onsthat predicatedits neednolongerexisted.Astheprogramfoundits origins inagriculture, ithasremainedundertheadministra5on oftheUnitedStatesDepartmentofAgriculture. Theprogramreappearedalmosttwodecadeslater withthebacking of severalprominentsenators.Tofulll a campaign promise to Virginia, John F. Kennedys rst execu5ve order implemented a pilot version of the program in 22 states. Themoremodern incarna5on of theprogramwasrealized whenLyndonJohnsonworked with Congress to formalize the law into permanent stature in 1964. Notable provisions inserted at this junc5on included the shared responsibili5es for administeringtheprogrambetweenthefederalandstate governments. Dueto the geographicexpansionof theprogram, par5cipa5on rapidly increased from the late 1960s

means by which states could simplify program access, administra5on,andrepor5ng. Figuresbegantoimprovesoontherea>er.By2006, par5cipa5on reached 26 million. Payment accuracy increasedfrom34percentinFY2000to94.12percentin FY2004.Owingtomarkedachievementsinaccuracy,the USDAawarded24statesatotalof$48millioninFY2005. Since the beginning of the decade, 49 states have adopted a simplied repor5ng system (with California le>over). As nondisaster par5cipa5on reached an all5me high of 29million peopleper month in 2008, program accuracy con5nued to improve. The 2008 Farm Bill commined $10 billion to the program over the subsequent 10 years. To keep with the 5de of other states, theUSDA changedthename of theprogram to ght s5gma. It is now formally known as the SupplementalNutri5onAssistanceProgram.

forbenets.Unless theyareexempt,allbeneciariesare expectedtomeetaworkrequirement. Although the CDSS manages the program statewide, County Welfare Departments (CWDs) carry much of theresponsibility fortheadministra5onof the program, especially indetermining household eligibility. TheUSDA nancesallthe benets andhalf of thetotal administra5on costsbornebythestates. Theremaining costs are divided among the state and local governments,with thetotalsplitbeing 503515 by the federal,state,andlocalgovernments,respec5vely. In FY 20092010, the federal governmentcontributed $602.9 million to administra5on; the State contributed $418.4 million,andthecoun5es,$158.9million.3 WhileSNAPisafederalprogram, stateshavethe authoritytocustomizetheirprogrambyuseofop5ons aordedtothembyfederallegisla5on,mostnotablythe 2002 Farm Bill.4 It is through these op5ons that state assemblies legislate the administra5onof the program. The Food and Nutri5on Service (FNS) of the USDA collects data onthe op5onsexercised by each state. A summaryofCaliforniasop5onsisshownbelow:

SNAP in California
The California Department of Social Services (CDSS) manages the program statewide. Benets are accorded to households, whichalsodoubleasthe main eligibility unit. H o u s e h o l d s , n o t i n d i v i d u a l s , r e c e i v e benets.2 Therefore,only when the households gross income is lower thantheeligibilitycriteria w i l l t h e h o u s e h o l d receiveassistance.Within the eligibility criteria t h e r e a r e v a r i o u s e x e m p 5 o n s a n d deduc5ons. For example, if elderly or disabled persons reside in the household, the gross income level may be higher. Ifeachindividual in the household is receiving a recognized form of assistance (such a s C a l W O R K s ) , t h e h o u s e h o l d b e c o m e s categorically eligible and automa5cally qualies

FromFoodStampsStateOp*onsReport

 This paper will focus on these op5ons, as they represent the most amendable aspects of SNAP in California.Ahandfulofop5onsareofpar5cularinterest, andshouldbeheldincomparisontootherstates.Inthe next sec5on, each noted op5on is expanded upon. Californiaisoneofonlytwostatesnottotakeadvantage ofsimpliedrepor5ng. Californiaisoneof16statesnot tooerexpanded categoricaleligibility.35stateseither have or are working on electronic applica5ons Californiaisnotoneofthem.

second applica5on process). Most recently, AB 1642 (Beall) has met its end in the 20092010 session.5 AB 1642 anempted to move California to a simplied repor5ngsystem.

Key Policy Concerns

At the policy level, two major concerns structure the need for reform. One problem aic5ng nearlyeverystateistheprogram'spar5cipa5onrate,the ability of SNAP to reach its intended popula5on. An issue endemic to California is its prohibi5vely high administra5ve costs. The following sec5ons will considerthestructuralmo5va5on and manifesta5on of these concerns.

Pe r f o r m a n c e a s a Function of Participation
Since the passage of the 1993 Government Performance and Results Act, policymakers have beencompiling dataonprograms to gauge their eec5veness. The S u p p l e m e n t a l N u t r i 5 o n Assistance Program (SNAP) par5cipa5on rates command the mostanen5on from theUSDA in this respect. Par5cipa5on rates track the reach of the program by determiningwhatpropor5on of theeligible popula5on par5cipates in the program. The USDA predicatestheirgoalsforSNAPontheserates,whichare packaged together and released annually. In 2010, for example,theintendedgoalistoreach68%oftheeligible popula5oninthegivenscalyear.6InFY2007(thelatest year for which there is data), 66% of the eligible popula5on par5cipated in the program7. This indicator does not capture the wide varia5on between states. Indeed,17statesdisplay par5cipa5onratessignicantly belowthena5onalaverage.8 Oneof thesestatesisCalifornia,whichranks50 outof 51 when dataincludestheDistrictof Columbia. Amongtheeligiblepopula5on, only48%par5cipated in SNAP.Whilesome stateshavemadeprogressin raising their par5cipa5on rate (Iowa, a noteworthy case, increasedtheirratefrom65%in2005to70%in2006to 74%in2007.),Californiahasobservednolas5nggrowth.

FromReachingThoseinNeed,2009

Recent Legislation in State Assembly

Of the six most recent legisla5ve anempts to modify a SNAP op5on, all but two have failed. In the 20072008 session, Assemblyman Jim Beall Jr. was successfulinpassingAB433,abillthatservedtochange the name of the program to SNAP and expand categorical eligibility to MediCal recipients.2 In the 2 0 0 8 2 0 0 9 s e s s i o n , A B 7 1 9 ( i n t r o d u c e d b y Assemblywoman Bonnie Lowenthal) extended benets toyouthexi5ngthefostercaresystemfor12months.3 Inthe20082009session,AB1057(Beall),AB1198 (Swanson),AB643(Skinner) allfailed.4Hadtheypassed, they would have eliminated the statewide ngerprint requirement, eliminated the life5me ban on convicted drug felonsfromreceiving benets,and allowedcounty welfare departments to transfer a recipients benets fromonecounty to another (asopposed torequiring a

Whencomparingpar5cipa5onamongtheworkingpoor, Californiarankslastat33%in2007,againwithnolas5ng growth.2 The disparity between California and the na5onal average is starker for theworking poor. While thestate'spar5cipa5onrateisonly37.5%lowerthanthe na5onal average for overall eligibility, its par5cipa5on rate among the working poor is 70% lower than the na5onal average. Discussed further below is the combina5on of ins5tu5onal obstacles that explain limitedoutreachtothelanerpopula5onsubgroup.

ac5vity. Due to California's abysmal par5cipa5on rate, the state foregoes $6.9 billion in economic ac5vity annually.

Barriers to Participation
TimeCommitment: Foran applicanttodeterminetheeligibilityand applyforaid,heorshemustmakeatleastthreetripsto the appropriate local oce. Trips include paperwork ling,interviews,andeduca5onontheopera5onof the program. Studieshaveshownthatapplicantsspend,on average, ve hours applying for aid. Moreover, oces that manage SNAP benets have held tradi5onal, weekday hours of opera5on since the beginning of the program. For an applicant to come in requires taking 5meofromwork5methatisusuallyuncompensated. Ifeligibleapplicantsareemployedduringthetradi5onal workdayhourstomakeendsmeet,theyarelesslikelyto apply for benets. Under these restraints, it is conceivablewhypar5cipa5onamongtheworkingpooris substan5allylowerthanoverallpar5cipa5on. QuarterlyRepor*ng: To remainenrolledin theprogram,beneciaries must report their nancial status on an interval determined by the state. Prior to 2002, ve years of successive legisla5ve eorts anempted to loosen the burden on monthly repor5ng. The argument then was that monthly repor5ng is both insignicant to the program's ecient opera5on and 5meconsuming for thebeneciary.Replacingmonthlyrepor5ng(asperbills AB 444 ad AB 692) is the marginally less austere requirement FingerprintImaging: California joinsonly three states (Arizona, New York,andTexasbeingtheothers)inimposingaStatewide Fingerprint Imaging System (SFIS) requirement on its applicants. While the stated reason for implemen5ng SFIS is to reduce fraud among beneciaries, the State Auditor found that the costs of the system might not coveritspoten5albenets.2SFIS,whichis maintainedin astateruncomputerdatabase,coststhestate$8million annually. To poten5al beneciaries, this requirement is problema5c on many levels. Not only is the eligible applicantrequiredtocomeinforngerprintimaging,but everyoneintheirhouseholdmustsubmittongerprint

The Consequences of Low Participation

Characterizing theperformanceofSNAPthrough par5cipa5on ratesdoesnot speak to the full extent of California'ssignicanceas the nearworst ranking state. Na5onally,SNAPbenets34millionpeopleamonth.The 3millionCalifornianbeneciariescompriseroughly 10% ofthena5on'stotal.The3millionmoreCalifornians that are eligible, but do notpar5cipate, areweighing down thena5onalrate.Dueto thesizeofthestate,anyhope of improving the na5onal level is inherently 5ed to California'sabilitytoimproveitsownpar5cipa5onrate. A more pressing concern is the tremendous opportunity cost California incurs when it fails to fully enroll the eligible popula5on. Because benets are nanced by federal dollars, increasing par5cipa5on is tantamount to bringing infreeaid to the state.Indeed, recordsfromtheCaliforniaDepartmentofSocialServices indicate that $469.8 million reached the 3 million par5cipa5ng beneciaries in February 2010.3 With 3 millionmoreeligiblenotpar5cipa5ng,thestateforegoes $3.7 billion in federal benets each year.4 When a poten5al beneciary does not receive the intended federaldollars,notonly doesthatindividualstruggle to putfoodonthetable,butthestatelosesaswell.Spent aid generates revenue for every level of government. Each year, es5mates California Food Policy Advocates, the state budget loses a poten5al $121 million and county budgets lose $32 million.5 With both state and county administra5ons in a constant state of nancial stress,theselostguresarenottrivial. Finally, the state loses a substan5al amount of economic ac5vity. To the benet of local economic ac5vity,SNAPbenets(formerlyknownasFoodStamps) mustbespentonfood.Becausethebenetisa monthly allowance, they cannot be saved or invested. As such, every dollar of spent benets generates $1.84 in economicac5vity.6 Forcomparison,notethateachdollar of federals5mulusmoneygenerated$1.26of economic

imaging aswell.The s5gmaof being ngerprintedthen becomes a problem for both the applicant and everybody else they live with, whether or not they eventuallyreceivebenets. LackofOutreach: The most recent survey data collected by California Food Policy Advocates suggests that the otherwise eligible candidates lack informa5on about their statusand the program itself. While outreach is a concern that ranks second to ins5tu5onal barriers, it helps explain lackluster par5cipa5on rates. 71% of eligiblepersonshavebeenshowntolacktheknowledge requiredtoobtaintheirbenets.2

composi5on of its high administra5ve costs, it can do linletoreformthesystempresently. ExtraRequirements: WhileitisnotwellknownwhyCaliforniaspends an exorbitant amount per case, mul5ple analysts s5pulatethatcostsrisefromadministering theancillary requirementsthestateimposes.Notonlyisitdicultfor eligibleapplicants to come into acounty welfareoce for ve hours over three visits, it is expensive for caseworkers to handle each addi5onal hour of processing. Not only is it s5gma5zing for applicants to submit to ngerprint imaging, SFIS costs the state a substan5al amount of dollars to maintain each year. Quarterly Repor5ng increases the burden on beneciaries, but it also imposes an extra ling and processingrequirementoncountycaseworkers.

Administering Benets
Another source of program varia5on across statescanbeobserved in thecostof administra5on.As states have control over their eligibility procedures (as noted above) and the systema5c administra5on of the program, states control the costs of the program. The costsof administra5onareborneequallybytwopar5es, the state and federal government. A state with large expenses, then, isnot only a burden unto itself, but it placesscalpressureonfederalsupportaswell. California hasthelargest caseload of any state, sothecostsofopera5onarepredictably high.However, the cost is notwell correlated to thestatepopula5on. When administra5ve costs are adjusted and measured on aper case basis, California's costsare shown to be 149%higherthanthena5onalaverage.Whilethena5on spends,onaverage,$469oneachpar5cipant,California managesto spend $1169.2 Acrossthena5on,California spends the most per case. Without popula5on to accountforadrama5cdierenceincosts,itis crucialto curbcostsandu5lizefundsbener.

Recommendations
StandardizeFacetoFaceInterviewExemp*ons: FederallawrequiresthatStateagenciesconductat least one interview every 12 months with a SNAP beneciary. The interview requirement is among the most involved aspects of the applica5on process, as it calls for a prolonged physical appearance and ques5oning period.Thereisprecedenceforreform.The State of California grants exemp5ons for facetoface interviews, as per a waiver granted by the federal government. However, these exemp5ons are only granted in selected regions (as the chart above indicates).AB231,whichfailedpassagein2004,provides a model for realizing this recommenda5on. When the requirement for a facetoface interview is waived, a telephoneisconducted. ImplementElectronicApplica*ons: Though not allaspects of the applica5on process can be streamlined electronically, most forms in the programcanbelledandrecordedelectronically.Thisis benecial for the administra5on of the program in at leasttwoways.First, itcutsdown on thework required by the County WelfareDepartment (as they no longer need to transcribe the informa5on onto a computer record). Second, it turns every internetcapable computer into a site where a SNAP applica5on can be lled. Even if thehouseholddoes not haveaccessto a computer or the Internet, every public library now becomes an applica5on site. At least 11 other states (such as New York, Pennsylvania, and Texas) have fully implementedelectroniclingusingeSignatures.2

Barriers to Curbing Costs

AppraisalofCosts: There is a "black box" on state SNAP expenditures. While the state and federal government share the administra5ve cost of the program, the coun5es within the state are the agents who actually administer the burden. As they incurtherst round of costs,theysendreceipts totheCaliforniaDepartmentof Social Services, which then reimburses them for their expenditures.Whenthesereceipts aresentin,however, nodetailisgivenastohowandwheretheadministra5on costsaremanifest.BecauseCaliforniadoesnotknowthe

EliminateFingerprintImaging: This requirement was introduced due to concernsthatSNAPwasawardingbenetstofraudulent applicants.However,theBureauofStateAuditsfoundin January2003thattheStatedidnotdeterminetheextent of fraud before implemen5ng SFIS at a cost of $31 million.In2003,theDSShasrequestedinves5ga5onsof 65householdssuspectedof mul5pleaidfraudinagiven month, compared to the660,000 households receiving benets then.2 This means $8.5 million is being spent everyyeartoeliminatefraudfor lessthanonetenth of onepercentof householdsreceiving benets. Sincethe incep5onofSFIS,theDSShasneverreleasedtheamount ofconrmedcasesoffraud. Transi*ontoSImpliedRepor*ng: California currently require households receiving benets to report their income status every quarter. A move to SimpliedRepor5ng cutsdown theamount of paperworkrequired to reportincome, and changesthe requirementtosemiannualrepor5ng.Givenfederallaw, California should not have the ability to demand quarterly repor5ng. The State has only been able to sustainthisac5vitythroughaseriesof waiversobtained fromtheUSDA.Currently,80othergroupsinhavejoined CaliforniaFoodPolicyAdvocatescalling fortheUSDA to reject Californias most recent waiver.3 Before that, nearly half a dozen pieces of legisla5on have been introduced to make the transi5on to Simplied Repor5ng. Mandate Comprehensive Budget Breakdowns for Coun*es: Therststeptoreducing Californias astronomical administra5on costs is to break open the black box that government analysts have alluded to. Instead of requiring County Welfare Departments only to submit receiptsof SNAP expendituresto theState,they should be required to submit detailed budget breakdowns of their ac5vity.Thisway,itbecomeseasierforanalyststo see exactly where exorbitant costs, if any, are coming from. Un5l then, SNAP administra5ve costs are untouchabletoeveryaudi5ngpower.

reform. The problems that result from specic policy changescanbegroupedintotwogeneralareas: Transi*onCosts: Every element of reform will catalyze an expensive transi5on. For example, an overhaul of the SFIScouldcostatleast$20millionintheshortterm.This is because SFIS workswithin agreatersystem of social programs. Removing it requires restructuring the opera5on of several social programs in the state. Similarly, implemen5ng electronic ling necessitates a system for processing online applica5ons. Requiring CWDstoreporttheirbudgetbreakdownsis alsolikelyto run a cost, as it requires 5me and a system to report thesecosts,aswellas5metoanalyzethesecosts. IncreasedFraud: A high barrier to entry is maintained to prevent individualsfromreceiving morefundsthantheymay be eligiblefor. Reducing the barriers to entry will increase program par5cipa5on, but it is likely to increase fraudulent par5cipa5on as well. This is because more applicantsandbeneciaries arebothhardertotrackand expensivetoaudit. Ineithercase,thispapermakestheargumentthat the benets outweigh the costs. On the one hand, implemen5ng the recommenda5ons will help the administra5on of the program run smoother. Even if there are transi5onal costs, the medium and longrun b u d g e t p r o j e c 5 o n s p r e d i c t t h a t t h a t t h e recommenda5ons willreduce program costs. Were the recommenda5ons to further outreach, recall that expandedpar5cipa5onbrings inrevenuetotheStateas well. Finally,thegreatest benetrests withthepeople. Though policymakers should remain cognizant of the benetstostreamliningaprogram,itismoreimportant toremember thatabenerprogramhelpsmorefamilies put food on the table. When every policy has been implemented, this is the goal to which the program strivestorealize.

Conclusion: The Risks to Reform

This paper has thus far covered the benets California can expect to incur from overhauling SNAP. Every discussion of reformshouldalso includetherisks toreform.SNAPisnotimmunetothenega5veeectsof

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projects/2010reformp(accessedFeb9,2010). (accessedFeb11,2010).

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projects/2010reformp(accessedFeb9,2010). 8000/9(accessedFeb17,2010).

Mark"Governor'sBudget20102011."StateofCalifornia.8Jan2010.hnp://govbud.dof.ca.gov/StateAgencyBudgets/

MarkMcLean,Hilary."StateSchoolsChiefJackO'ConnellHighlightsImpactofBudgetCutstoEduca5on."California Mark"HumanServicesandChildcare."CaliforniaBudgetProject.16Nov2009.hnp://www.cbp.org/publica5ons/

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www.lao.ca.gov/2009/spend_plan/spending_pla(accessedFeb10,2010).

MarkAlexisFernandez,CaliforniaFoodStampsCharacteris4csReport,report(Oakland:CaliforniaFoodPolicyAdvocates,

2010),pg.1. MarkUnitedStatesofAmerica.UnitedStatesDepartmentofAgriculture.FoodandNutri5onService.AboutSNAP.hnp:// www.fns.usda.gov/snap/rules/Legisla5on/about.htm(accessedJune10,2010). MarkLegalServicesofNorthernCaliornifa,andCaliforniaFoodPolicyAdvocates."1.Summaryofbasiceligibility~ CaliforniaFoodStampGuide."CaliforniaFoodStampGuide.hnp://www.foodstampguide.org/summaryofbasic eligibility/(accessedJune10,2010). MarkUnitedStatesofAmerica.CaliforniaStateLegislature.AssemblyCommineeonHumanServices.Supplemental Nutri4onAssistanceProgram(SNAP).January2009,pg.2. MarkUnitedStatesDepartmentofAgriculture.FoodandNutri5onService.FoodStampProgramStateOp4onsReport.By ProgramDevelopmentDivision.Washington,D.C.,2006. Mark"CFPANutri5onLegisla5onUpdate5.29.08."CaliforniaFoodPolicyAdvocates.hnp://www.cfpa.net/Alerts/ 5.29.08.html(accessedJune10,2010). MarkCanalis,John."Billwouldaddfosterchildrentofoodstamprollsatage18."ContraCostaTimes,June,2009. MarkUnitedStatesofAmerica.CaliforniaStateLegislature.AssemblyCommineeonHumanServices.Supplemental Nutri4onAssistanceProgram(SNAP).January2009,pg.3 Mark"2010Legisla5veTrackingPage."CaliforniaFoodPolicyAdvocates.hnp://www.cfpa.net/2010leg/index.html (accessedJune10,2010). MarkCunnyngham,KarenE.,andLauraA.Castner.ReachingThoseinNeed:StateSupplementalNutri4onAssistance ProgramPar4cipa4onRatesin2007.Report.Washington,D.C.:UnitedStatesDepartmentofAgriculture,2009,p.1. MarkCunnynghamandCastner,2009,p.1. MarkCunnynghamandCastner,2009,p.8. MarkCunnynghamandCastner,2009,p.8. MarkCaliforniaDepartmentofSocialServices.HealthandHumanServicesAgency.DataSystemsandSurveyDesign Bureau.FoodStampProgramPar4cipa4onandBenetIssuanceReport.2010
MarkUnitedStatesDepartmentofAgriculture.FoodandNutri5onService.FoodStampProgramStateAc4vityReport.

Washington,D.C.,2006.

MarkUnitedStatesDepartmentofAgriculture.FoodandNutri5onService.FoodStampProgramStateOp4onsReport.By

ProgramDevelopmentDivision.Washington,D.C.,2006,p.22. MarkKruckenberg,Kami.FrequentlyAskedQues4ons:SaveMoney,FightHunger,ReduceGovernmentWaste:EndFinger Imaging.Report.Oakland:CaliforniaFoodPolicyAdvocates. Mark"Re:CaliforniaSNAPWaiverExten5onRequest."CaliforniaFoodPolicyAdvocates,GeorgeManaloLeClairtoJaney Thornton.July31,2009MarkShimada,Tia.LostDollars,EmptyPlates:TheImpactofFoodStampPar4cipa4ononState andLocalEconomies.Report.Oakland:CaliforniaFoodPolicyAdvocates,2009,p.3. MarkShimada.LostDollars,EmptyPlates,2009,p.3. MarkShimada.LostDollars,EmptyPlates,2009,p.2. MarkCaliforniaStateAuditor.BureauofStateAudits.StatewideFingerprintImagingSystem:TheStateMustWeighFactors OtherThanNeedandCostEec4venessWhenDeterminingFutureFundingfortheSystem.ByElaineM.Howle. Sacramento,2003. MarkKnockingDownBarrierstoFoodAssistance:AShortProgressReportforCalifornia.Report.Oakland:CaliforniaFood PolicyAdvocates,2004,p.5. MarkUnitedStatesDepartmentofAgriculture.FoodandNutri5onService.FoodStampProgramStateAc4vityReport. Washington,D.C.,2006. MarkUnitedStatesDepartmentofAgriculture.FoodandNutri5onService.FoodStampProgramStateOp4onsReport.By ProgramDevelopmentDivision.Washington,D.C.,2006,p.22. MarkKruckenberg,Kami.FrequentlyAskedQues4ons:SaveMoney,FightHunger,ReduceGovernmentWaste:EndFinger Imaging.Report.Oakland:CaliforniaFoodPolicyAdvocates. Mark"Re:CaliforniaSNAPWaiverExten5onRequest."CaliforniaFoodPolicyAdvocates,GeorgeManaloLeClairtoJaney Thornton.July31,2009

A Comprehensive Plan for Health Care Infrastructure in Californias Heartland: Addressing the Health Care Needs of the Central Valley
Megha Mahida and Amreen Rahman, University of California Los Angeles Restructuring safety net hospitals through the ins4tu4on of sustainably funded clinics, expansion of employedcommunityhealth workers, and systemof telemedicine a comprehensive system willbe inplace to accommodatethegrowingneedforprimary,preventa4vecareforruralunderprivilegedmembersoftheCentral Valley.

History
S a f e t y n e t h e a l t h s y s t e m s p r o v i d e comprehensivecoverageforuninsured,lowincome,and disadvantaged popula5ons, thus their ins5tu5on in the central valley can well address the needs of the popula5on which islargely rural, uninsured, and has a higher rate of chronic diseases. Currently the health systeminplacelargelyincludescommunityhospitalsand clinics, and suers from overcrowding in emergency rooms as a result of the greatly uninsured popula5on which relies on the ER for primary care. This characteris5c of the popula5on is also related to the issueoftherebeing ashortageof healthcareworkersin thecentralvalley region. Thenumber ofcurrentfederal healthcarecentersintheCentralValleyis206outof961 totalhealthcarecentersinCalifornia.MarkThisassessment referstotheCentralValley asaregionspanning 42,000 milesdownCalifornia,andis indica5veofvastsizeofthe CentralValley and the fragmented system and strained accesstohealthcarethathasresulted.MarkThesystemof healthcare funding provided on a local, state, and na5onal level in the Central Valley is inadequate in providing coverage for the over 846,000 Central Valley residents andisthus unabletosustainprocientlevelsof healthcare workers needed to operate eec5ve programsof preventa5vecare.Mark This currentsystemis inecient in its reliance on emergency room care to addressthechronicillnessesand primary careneedsof the ruraland uninsured residentsof theCentral Valley. The lack of widely accessible primary care is not cost eec5ve as more government funding goes into acute care, involving the complica5ons that result when preventableprimarycareillnessesgountreated.

Analysis
In order to adequately address the health care crisisintheCentralValleyabonomupapproachmustbe takeninordertorec5fy every levelofhealthcare.Thus themainprovidersofhealthcaretoindividualswhoare uninsured or insurred through MediCal are safetynet

providers. These include community health centers, clinics, public hospitals, private safety net designated hospitals.Outof allthese providerstheonly ins5tu5on to receive funding from the federal level under the auspicesof being a"rural federally qualied clinic" are community health centers. Thus many health care systems bear dispropor5onate costs of the uninsured. Furthermore,individuals whoareinsuredthroughMedi Calarefunneledintothesesafetynet providersleading tooverburdenedhospitalsandclinicsthatsimplydonot have the resources to accommodate and adequately treat the large number of MediCal and uninsured pa5ents. Many healthcaresystems in the Central Valley are funded throughMedicare. However, Medicare pays hospitals in the Valley 5675% of average na5onal rates.MarkThislevelofpaymentisnotonlyinadequateto meet the needs of the Central Valley and its large uninsuredandunderservedpopula5onbutitalsoputsa strain on hospitals to decrease the array of services oered that target specically lower income pa5ents. TheCentralValleyhasinfactoneofthelowestMedicare feefor servicereimbursements in thecountry.Mark With the popula5on in the Valley expected to grow signicantly in the nextfewyears,coupled with alarge agingpopula5on,thefragilestateofsafetynethospitals is sure to be exacerbated in the coming years if no ac5onsistaken. Duetoseveral factorsincluding butnot limited to: alargepopula5on,andthenomadicnatureof some of the pa5ents, care at hospitals in the Central Valley focusonacutecareandignorethechronicdiseasesthat exacerbatethe healthof individualsliving in the Valley. Oneindicatorofchronicdiseasesistherateofobesity.A study bytheCentralValleyHealthPolicy Ins5tutefound that the percentage of overweight and obese adults, adolescents, and seniors were signicantly higher than the state average across the board.Mark Other chronic diseases primarily diabetes and asthma, also aect a large propor5on of Central Valley residents. The 2005 California Health Interview Survey reported that the Valleyhadhigherrates ofindividualswithasthmagointo an emergency room in the prior year compared to

allotherregionsinCalifornia.MarkInfactinananalysisof indicatorsof healthstatus:adultoverweightandobesity, adult tobaccouse,motorvehicledeaths,air quality,u shots forelders, and accesstoprenatalcare, the Valley scores far below the California average.Mark There are morefactorsthatexacerbatehealthcareintheValley.By inlargeispoorer than most other regionsinthestate. 50%oftheregionhasincomesunder200%ofthefederal poverty line,incontrasttothestateaverageof34%.Mark The Valley also has higher unemployment rates than twothirdsof outsideCaliforniacoun5es.Also therehas recently been a large inux of new residents into the Valley.Itisprojectedthatby2050six coun5esfromthe Central Valley will be among the fastest growing countriesinCalifornia.Mark

oftheCentralValleywhichincludesamix ofbothurban and very rural areas.Mark Furthermore, in upcoming alloca5on of the budget for healthcare, the growing needs of the Central Valley in healthcare ought to be highlighted. O>en the rural parts of California are ignored because they simply to not have the cons5tuency nor the lobbyist or interests groups to further their cause. The Central Valley accounts for a signicantpropor5onofCalifornia'sGDP.IfCentralValley residents arenotabletoaccessadequatehealthcare,the produc5vity of workers will dras5cally decrease, especiallywhentakingintoaccountthechronicnatureof many of the ailments of the Valley residents. Thus the healthoftheregionisdirectlyrelatedtoeconomiccosts. Preventa5vecaremustbeasmuchof apriority as acute care. Currently, theValley's emergency rooms are ooded with cases from individuals with chronic diseases like asthma diabetes, whose condi5ons have been exacerbated due to the lack of primary and preventa5vecare.In ordertoreform this,all safety net providers oughttobefundedtofacilitatethisrefocusing of caretothepreventa5veside.Specically thesefunds ought to beallocated in order to increaseoutreachand educa5onal programs that help manage chronic diseases.Mark This type of outreach is par5cularly key when taking into account the socioeconomic status of thepa5entswhogotosafetynetclinics. Anotherstepthatmustbetakentoaddressthe health care situa5on in the Central Valley is the huge shortageof healthprofessionals. TheCentralValley has thelowestnumberof primarycareandspecialtydoctors compared to every other region in the state. Furthermore, the region lacks mid level health care providers as well, nurses, nurses assistants, physicians assistants, etc. The root cause of this shortage is a coupling of the low reimbursement rates due to the primarily uninsured popula5on,and thefact thatthese professionals generally nd the Central Valley undesirable.Infactmany residentsthatarerecruited to do their residenciesin the CentralValley o>en are not interested in community health clinics and soon leave the Valley a>er their residency ends.Mark In order to tackletheshortageofhealthcareworkerstherehaveto bebothlong termandshort termapproaches. A short termapproachtosolvethegapof healthcareproviders wouldbetointen5onallyelevatethestatusofnursesand

Audience and Stakeholders

County ocials would be interested in implemen5ng a system of safety net hospitals which would take advantage of already exis5ng infrastructure andwouldinvolveincreasingtheemploymentofprimary care community health workers and tech companies. Crea5ng a comprehensive safety net hospital system focused on fullling the uninsured and underprivileged community's basic medical needs would necessitate morehealthcareworkersalongwithtelemedicine,which would specically target the popula5ons in this rural community that would not have direct access to a governmenthospital.Itistothenancialbenetof the CaliforniaStateAssemblyalongwithCaliforniatax payers to support the ins5tu5on of a system of safety net hospitals intheCentralValleyas thesystem'schangein focus from providing acute care to primary care for uninsured,vulnerableresidentsof theregion,willinthe longrunbemorecosteec5veandsustainable.Perhaps, most cri5cal is the increased access to healthcare for thosewhocurrentlyfallintothegapsof federalfunding programs, which in the Central Valley includes many immigrantsandfarmworkers.

Next Steps

In order to address the dispropor5onate funds that safety hospitals in the Central Valley receive in propor5on to the levels of uninsured and Medical pa5entstheguidelinesforfundingshouldbereformed. Thereshouldbeanincreaseoffundstoattheveryleast na5onalpercapitalevels.MarkInordertomakethis level of fundingsustainable,anew methodology ought to be developedinordertoaccountforthediversegeography

physicians assistants to make them moreautonomous, whichwouldincreasethepa5entloadthatclinicscould accommodate. Long term strategies would include crea5ng incen5ves for doctors both primary and specialty careto liveand prac5ce in theCentral Valley. Poten5al incen5ves that could facilitate an inux of medical professionalswouldincludesubsidizing thegap in reimbursement. Mark Also, a large number of residenciesin the Central Valley go to foreigneducated doctors who o>en soon leave the Central Valley. Both increasethenumberofresidencieswhilealsoincludinga requirement for clinic hoursand anumber of years of prac5cingintheCentralValleywouldatleastintheshort term helpmeet the needs of theCentral Valley. But in orderfortruelongtermsustainablereten5onofmedical professionals in the Central Valley, there must be a medical school in order to act as a hub for providing health care professionals interestedin ruralhealth and prac5cing in the Valley. Thus UC Merced is the most viable op5on for such a medical school. And given the number of Californian applicants that are turned away fromschoolsfocusedonprimarycarenow(UCIrvine,UC Davis), there is a huge demand for a new UC medical school. Asidefrom health care professionals,withMD/ DO degrees, there is a huge need for public health workers to facilitate community health educa5on and outreachprograms.Inordertoincreasethepublichealth professionalssimilar educa5onprogramsand incen5ves should be established to anract and train community healthcareworkers. Telehealthhasexpandedtoincludeawiderange of healthcare servicesassimpleand straighmorwardas

planning appointments and relling medica5ons to as complex asdiagnosis of re5nopathy. TheCentral Valley serves to benet immensely from a cohesive and ecienttelehealthnetwork.Duethevastruralareasin the Central Valley, o>en 5mes it is not logis5cally possible for many residents to access clinics and hospitals thatarefarremovedfromtheirresidence,orto follow up on visits in a 5mely fashion. Furthermore, currently the majority of the Central Valley has computers (two thirds) and approximately 60% have access to the internet. In the past there have been severalini5a5vestoestablishtelehealthprogramsinthe Central Valley. California passed the Telemedicine Development Act of 1996 which reimbursed the establishmentoftelemedicineservices.Therehavebeen a few successful telemedicine programs in the Central Valleythatarekeyindicatorsforthepoten5alsuccessof a cohesive more up to date network. The Central California Teleophthalmology Network used high tech cameras to send images of re5nas of pa5ents to specialists in order to diagnose re5nopathy. The Kings View Behavioral Health centered in Fresno, provided mentalhealthservicestoruralpartsof theValley.Mark A telehealthnetworkwouldnotbescallyirresponsibleas the FCC currently in launching an ini5a5ve to increase telehealth, it recently granted $145 million to 16 telehealthprojects. The FCChas extendedthedeadline toapplyfor funding forayear.Furthermore, the FCCis increasing broadband access to rural parts of America, whichwouldsolveforthebarrierof slowinternetwhich hadpreventedadop5onoftelehealthinthepast.Mark

SOURCES?!?

Mitigate Southern California Trafc: Coordination, Alternatives and a Congestion Price System
Karl Taraporewalla and Erika K. Solanki, University of California Los Angeles In order to adequately address the convoluted socioeconomic issue of trac conges4on, policymakers must consider the unique geopoli4cal aspects of the greater Los Angeles area. By systema4cally addressing coordina4on, enhancing public transporta4on alterna4ves, and gradually implemen4ng a conges4on pricing systemonallSouthernCaliforniafreeways,policymakerswillimplementalongterm,comprehensivesolu4onto tracallevia4on. In order to meet comprehensive transporta5on needs in Southern California, the state legislature should primarily advocateforthreeini5a5vesinthefollowingorder:(1)increasetheoverallcoordina5onofpublictransporta5onsystems withintheregion;(2)increasethereachandfrequencyoftheMetrotransitbusesthatareoperatedbytheLosAngeles County Metropolitan Transporta5on Authority to bener serve lowerincome residents that are adversely aected by inadequate public transporta5on systems; and (3) with overall enhanced publictransporta5on alterna5ves available, implementaconges5onpricingstrategygraduallyonSouthernCaliforniafreewaystocurbtrac. The governor can ini5ate coordina5on eortsby establishing aninteragency task force that fosters coopera5on and collabora5on among regional transit providers. Successful implementa5on of coordina5on mechanisms will increase transporta5onavailabilityandaccesstojobs,enhancetransitsystemandservicequality,improvecosteec5veness,and eliminateduplica5veeorts. TheLosAngelesCounty Metropolitan Transporta5on Authority should increasethereach andfrequency of itslimited bus lines,includingtheMetroRapidandMetroExpressservices.AlthoughthepassageofMeasureRandtheexpansion of the subway system intoWestLos Angeleswill eventually provide a public alterna5ve andmi5gate conges5on, the comple5on of such largescale projects interrupt current transporta5on routes, involve longterm construc5on, and require large funding grants. Theexpansion of bus routes and an increase in the number of 5meecient buses in opera5on are logis5cally feasible recommenda5ons that will provide immediate relief to commuters and rela5vely minimalcosts. Itiscri5calfor policymakersto ins5tutecoordina5on mechanismsand expandlimitedbuslinestoenhanceaccess to aordable and reliabletransporta5on alterna5ves before using conges5on pricing as afair and equitablemethod of pricingtrac.Ascurrentlyproposed,thecarpoollanesalong14milesofthe10freewayand11milesofthe110freeway willbeconvertedfromhighoccupancyvehicle(HOV)lanestohighoccupancytoll(HOT)lanes.Thosethatchoosetouse theHOTlanes willbesubjecttofeesof$0.25to$1.40permile.Eachdriverthatmightpoten5allyu5lizeHOTlanes must purchasea passand placeitintheirvehicle. Electronicmonitoring devicesinstalled along theHOT laneswilldetect whenacarisu5lizingtheHOTlanes,iden5fyitspass,andchargethedriverpropor5onaltousage.

Key Facts
According to the RAND Corpora5on California Trac Conges5on Sta5s5cs database, Los Angeles area commuters in 2006 spent approximately 39 hours wai5ng in congested freeways. The same study found that annual conges5oncostsincreasedfrom$1.69millionin 1982to$10.16millionin2006. AlthoughtheU.S.DepartmentofTransporta5on (DOT) largely funds state and local public transporta5on services, various other federal

departmentsalsoprovidetransporta5onfunding through 41 dierent programs, resul5ng in an overall lack of coordina5on among regional public transit programs, and fragmented and duplica5vetransporta5onservices. Several studies suggest that welfare recipients andlowincomeresidentsfaceseveralbarriersto employment,withadequateandreliableaccess totransporta5onattheforefront. According to a study sponsored by the Urban Mass Transit Administra5on, the cost

eec5venessofabussystemtoprovideecient transit is far greater than heavy or light rail transitsystemsinmediumandlowdensityci5es.

Talking Points
The Na5onal Governors Associa5on Center for BestPrac5ceshas dubbed coordina5onahighly eec5ve tool that enhances transporta5on servicesatlinleornoaddi5onalcosts. The Metro Express oers reducedstop service along theextensiveLosAngelesfreewaysystem. Since many lowerincome residents live in neighborhoods distant from employment opportuni5es and without regular access to reliable forms of transporta5on, an increase in quality, reliability, access, and frequency of MetroExpressbusesareespeciallynecessary. London, Singapore, Stockholm, and New York City have all successfully ins5tuted conges5on pricing systems that have reduced trac conges5onandgeneratedsubstan5alrevenue.In theseci5esthereisrela5vely elas5cdemandfor transporta5on services since convenient and aordable masstransit alterna5ves are already in place, permitng conges5on pricing as an equitablemethodofpricingtrac.

whichprovidesaroundtableplamormforstakeholders to cooperateandcollaborate. Mul5plestudieshaveproventhatlimitedaccess to reliable transporta5on servesasa barrier to gaining and maintaining employment. In response, in 1998 Congress authorized the Transporta5on Equity Act for the 21st Century (TEA21), a federal transporta5on fundingbillthatpromoteslocaltransporta5onini5a5ves, which connect lowincome ci5zens to employment. Under TEA21, Congress approved the Job Access and Reverse Commute (JARC) program to fund new transporta5onservicesandtheimprovementof exis5ng services.

Analysis

Sustainablecoordina5oniscri5caltoperpetually enhance transporta5on services. Transporta5on coordina5on addresses mul5ple needs and goals with limited resources by consolida5ng services and eec5vely minimizing costs. The crea5on of formal coordina5on mechanisms will allow the Governor to provide more eec5ve transporta5on solu5ons to further mi5gate nega5ve externali5es from inadequate publictransitsystems.Greatercoordina5oncoupledwith an expansion of areliable bus system will increase the ability of lowerincomeresidentstoobtainandmaintain employment. Improving the quality, reliability, access, and frequency of the Metro bus lines will provide an anrac5vealterna5vetodrivingprivatevehicles.

History
Residents in major ci5es are becoming increasingly irritated by trac and conges5on as daily commutes increase. Nega5ve externali5es such as air pollu5onaremoreapparent,andpublicalterna5vesare beingdevelopedand improved too slowly.According to the RAND Corpora5on California Trac Conges5on Sta5s5cs database, since 1982 Southern California freeways have consistently ranked rst in annual conges5oncosts.

Next Steps
Theabilityof ocialsto pricetracasacommodity to further mi5gate the nega5ve externali5es of trac is con5ngentupontheabilityofpolicymakerstoestablisha welldeveloped,accessibleandaordablealterna5ve. Therearemanywaysthattheimplementa5onof an interagency task force as well as the further developmentofrapidbuslines canbefundedtobemore budgetneutraland lower theburden on the tax payers of LosAngeles. TheFederal Transit Authority (FTA) has developed a New Starts program used to help fund transitprojectsthatmeetcertaincriteria.SincetheNew Startsprogramisfundedby theFTA Sec5on 5309 grant program, expansion of the rapid bus lines and implementa5on of the interagency task force can be fundedinpartbythis federalgrant.InJanuary2010the NewStartsprogramshi>edtheirpolicytofundthose

Strong gubernatorial leadership is cri5cal to assis5ng par5cipantsin overcoming barriers to achieve coordina5on.Inordertogarnersupportforcoordina5on eorts,Marylandocials organizedaseriesofforums on transporta5ontointroducetheconceptofcoordina5on, view the proposed process, and facilitate discussion among stakeholders. Furthermore, New Jerseys Governor established an interagency task force, New Jerseys Intergovernmental Transporta5on Work Group,

projects that would reduce cost and 5me of daily commutes while focuing on issues such as economic development opportuni5es and the environment. According to Sec5ons 5309 and 5318 of the program, eligible projects include those that include the purchasing of buses for eet and service expansion alongwithotherrelatedequipmentandfacili5es.

Theproposalsmadeinthispaper cango along way tomee5ng and implemen5ng the criteria thatare necessary to receive funding from the New Starts program, and all in all will result in less of a nancial burden on the residents of Los Angeles, and abudget neutralsolu5onforthestateofCalifornia.

Sources
http://www.nga.org/cda/files/011503IMPROVINGTRANS.PDF http://edq.sagepub.com/cgi/reprint/16/4/314 Bania, N., Coulton, C., & Leete, L. (1999, November 6). Welfare reform and access to job opportunities in the Cleveland http://edq.sagepub.com/cgi/reprint/16/4/314 http://www3.interscience.wiley.com/journal/123245949/abstract LATIMES1: http://articles.latimes.com/2009/jun/09/local/me-tollway9 VTPI1: http://www.vtpi.org/london.pdf http://ca.rand.org/stats/community/trafficcongestion.html http://articles.latimes.com/2007/sep/19/local/me-traffic19 http://reason.org/news/show/the-facts-about-gridlock-in-so http://www.laalmanac.com/LA/la13.htm http://www.laalmanac.com/transport/tr15.htm http://ca.rand.org/stats/community/trafficcongestion.html http://www.google.com/search?client=safari&rls=en&q=public+transit+buses&ie=UTF-8&oe=UTF-8

NEEDTOCONDENSEFORMATENDNOTES

Fixing Nutritional Access in Under-Served Urban Centers

Torin Jones and Willis Hon, University of California Berkeley Localgovernmentswithunderservedurbancenterscanu4lizeestablishedcommunitybasedorganiza4onsto addressissuesoffoodsecurityandaccessibilitytonutri4on.

Key Facts
Chronically malnourished children lack the nutrients needed for proper health and development. WestOaklandhaslongbeenunderservedin groceryretail. Thecommunity depends on the morethan 40 convenience stores to provide food, resul5ng in malnutri5on and constant food insecurity. These convenience stores provide poor quality preprocessed foodstus for prices thatare30%100%morethansupermarkets. Poor nutri5on and ea5ng habits are reinforced at a young stage leading to lifelongnutri5onissues. TheCityofOaklandhastheabilitytotakean ac5ve roletoreinforceproper ea5ng habits andprovidefreshfoodforthis underserved community.

to organize food distribu5on and nutri5onal educa5on fortheresidentsofWestOakland.ThePeoplesGrocery runsacommunitysupportedagricultureprogram called the Grub Box program (People's Grocery n.d.). The programprovidesaordableboxesof fresh,organicand locallygrownproducewhichfeedsafamilyof fourfor a week. Similarly, Mandela Foods Coopera5ve is anemp5ng to provide a fullservice grocery store and nutri5onal educa5on center in West Oakland. Both organiza5onsaimtosa5sfyimmediatefreshfoodneeds, provide nutri5onal educa5on, and solveunemployment in West Oakland (Mandela Foods n.d.). Nutri5on and food security are underlying problems that the City of Oakland must address if they want to begin to tackle other more prominent citywide issues. The city can accomplishthiswithanac5vecampaignu5lizingthehelp oftheexis5nglocalNGOs.

Analysis
Inrecognizingthecurrenteconomicsitua5onof California and localgovernments, u5lizing and assis5ng community based organiza5ons in providing food and knowledgeisthemostprac5calwaytoaddresstheissue. The City of Oakland could save both money and manpower by working with exis5ng programs like Peoples Grocery and the Mandela Food Coopera5ve which already have respectable reputa5ons and name recogni5oninthelocalcommunity.Barriersthatremain fortheseorganiza5onsincluderesidentapathyorsimply notknowing theyexist.Using cityeventsthatshowcase good ea5ng habits, city ocials can guide residents to these organiza5ons and assist them with u5lizing their services.Thecitygovernmentcanalsou5lizecityowned spacessuchparksandbuildingstofacilitatetheac5vi5es ofthecommunitybasedorganiza5ons. Organizing a new farmers market in West Oakland is another alterna5ve for the city to consider, butthecurrentnancialrealityofthecitywouldhamper its success. Due to transporta5on costs and the small volumeofproducesold,farmers mayhavetochargehigh pricesinordertomeetopera5ngcosts.Forthemarketto have a no5ceable benet for lowincome families, organizersmustbeabletooertheproduceatlowcost. Local governments can provide coupons or direct

History
Children can become malnourished for reasons thathave nothing to do with hunger. This malnutri5on arises from a lack of food that provides the right nutrients, vitamins, and minerals. Many innercity and lowincome communi5es in California suer from malnutri5on and undernourishment. However, communitybased solu5ons for addressing chronic malnutri5on are extremely viable. The community of WestOaklandintheCaliforniaBayAreaisanexampleof an underserved community that could greatly benet from the implementa5on of a nutri5on program involving the local government u5lizing and assis5ng community based organiza5ons in providing food and knowledge(Said2009).TheWestOaklandcommunityis currentlyunderservedbyretailgrocerystores,leadingto chronic malnutri5on and food insecurity among its residents(People'sGroceryn.d.). West Oakland can u5lize exis5ng organiza5ons likeThePeoplesGroceryandMandelaFoodCoopera5ve

Local governments can provide coupons or direct subsidiestocommunitymemberstoachievethis.Given theeconomiccrunchmanylocalgovernmentsarefacing, thecostofsubsidiesinaddi5ontothecostsofopera5ng afarmersmarketmakestheop5onunfavorable. In contrast, the Peoples Grocerys Grub Box program providesaboxof1214poundsofproducethatcanfeed a family of four for a week at a price of $12 a box (People'sGroceryn.d.).Thisbox includesabout12items ofvegetables andfruitstypicallygrownfromlocalfarms, although they will occasionally oer free trade fruits suchasbananas or mangoes. Addi5onally, theMandela

Food Coopera5ves goal of providing an educa5onal center represents another benet of the program because many Californians are unaware of the far reaching benets of nutri5onal ea5ng which extend beyondimmediatehealth(People'sGroceryn.d.). TheCity of Oaklandneedsto u5lizetheestablishedand reputablecommunitybasedorganiza5onstoaddressthe issues of malnutri5on in its long underserved West Oakland community. Working with these organiza5ons provides an anrac5ve and eec5ve way to tackle the issueinlightofthecityscurrentnancialsitua5on.

Sources
MandelaFoods.AboutMandelaFoods.hnp://www.mandelafoods.com/html/about.html(accessedJanuary20,2010). People'sGrocery.AboutWestOakland.hnp://www.peoplesgrocery.org/ar5cle.php/westoakland(accessedJanuary20, 2010). .FAQs.hnp://www.peoplesgrocery.org/ar5cle.php/faqs(accessed201020January). .GRUBBox.hnp://www.peoplesgrocery.org/ar5cle.php/grubbox(accessed201020January). Said,Carolyn."WestOaklandwelcomescoop'shealthyfoods."SanFranciscoChronicle,July11,2009.

FORMATENDNOTES

Introducing Competition into Californias Prison Systems

Brent Gaisford, University of California Los Angeles

History
States across the country face rising costs for theircorrec5onsandrehabilita5oneorts,mostnotably inCalifornia,wheretheprisonsarecurrentlyopera5ngat 190% of capacity and the prison system absorbs more than $8 billion of state money every year. The prison systemsbudgethasswollenfrom3%ofthegeneralfund 30 years ago to 11% today2. However, the extremely highcostsoftheprisonsystemarenotmakingforbener treatmentorrehabilita5on,asCaliforniafacesoneofthe highest recidivism rates in the country, with 27.4% of California's parolees reincarcerated, compared to the na5onal average of 15.5%3. California's prison healthcaresystemwasruleduncons5tu5onallynegligent by a panel of federal judges in 2006, and the state's prison healthcare system has been under federal receivership sincethen4. Thestatefacescrisesof both costand qualityof theprisonsystem, and asolu5on is neededthatwilladdressbothproblems. Many states have turned to private prisons as the solu5on to their cost problems, and California is likelytodothesame.However,thecurrentpaystructure for companies who operate private prisons encourages worsecondi5ons for the prisoners. They are paid on a xedyearlycontractregardlessof thecaretheyprovide, and thus these companies are driven to provide the cheapest facili5es and care possible for the inmates in order to maximize their prots. Addi5onally, numerous scholarlyar5cleshavebeenpublishedonthedierence between public and private prisons, and they almost invariably conclude that private prisons do not outperform public prisons on quality of careor cost to the state5. However,therearesomenotableexcep5ons where private prisons have proven to be both less expensiveandofhigherqualitythanpublicprisons6.The journal ar5cles which found private prisons to be superior concludedthatthese par5cular private prisons were outperforming their counterparts because they existed in a state of compe55on with other prisons, whether public or private. Addi5onally, compe55on withintheprisonsystemalsoencourageslessexpensive, benercareatpublicprisons7.Thusprivateprisonscanbe anintegralpartofastate'sprisonsystemwhentheyexist inastateofcompe55on.

The city of Indianapolisisan excellent example ofthesuccessofcompe55onbetweenpublicandprivate en55esforpubliccontractsandservices.UnderStephen Goldsmith,MayorofIndianapolisfrom19922000,more than 75 government services were opened up to compe55on from the private sector8. (10) Over the courseof thisperiod,"Thecitysbudgetfellby7percent anditswork forcenotincluding policeocersandre ghtersshrank by morethan 40 percent. Atthesame 5me,thecityinvestedmorethan$750millioninstreets and parks, slightly reduced taxes, and maintained its unemploymentratebelow3percent." 9Notonlydidthe cityseecostsfall,therewerealsoqualityincreases which accompanied the introduc5on of compe55on. Furthermore, Indianapolis createdauniquesystemfor rewarding its best performing public services. Those public agencies that were able to complete contracts belowtheirbidwererewardedwith25%ofthosesavings intheformofemployeebonuses,providingyetanother incen5ve for public sector employees to increase their produc5vity.However,notallof Indianapolis'sanempts at introducing compe55on worked well, sugges5ng a need for transparency in the bidding process for new contractsandanoversightcommineeindependentfrom both the public bidders and the private sector. Fortunately, the Oce of the Inspector General in California is already very independent from the Departmentof Correc5ons,and alevelplaying eldfor bidderscouldbecreated from studyingcaseslikethose in Indianapolis in order to bring California similar cost savingsandqualityincreases.

Analysis
There are two ways to introduce compe55on: rewarding the best prisons or punishing the worst. Rewardingthebestprisonsdoesnotcreateanyincen5ve for the worst performing prisons to improve because their ini5al huge disadvantage makes catching up with best prisons prohibi5vely expensive and not worth the riskof not winning theprize.Alterna5vely,bypunishing theworstperformingprisons,youcreateanincen5vefor the worst facili5es, and thus those that most need improvement. Using a system which punishesa poorly performingprisonwithreducedfunding isasureway to make the prison worse, not bener, so a dierent incen5ve system is required. If instead the worst inten5onally

performing prisons are punished by turning over opera5onal control to the lowest bidder at an open auc5onfor that prison contract, whether the winner is the state or a private corpora5on, a system is created withaverystrongincen5veforworstperformingprisons togetoutofthebonomofthedistribu5on.Fora public prison, the warden and all the employees are strongly mo5vatedtoimprovecondi5onsto keep their jobsand reputa5on untarnished, whereas private prison companies would be mo5vated by the desire to keep thatcontract,andhencetheirprots.Inordertocreate compe55on among prisons to decrease costs and simultaneously increasequality,allofthestate'sprisons would be rankedagainst each other basedon costand quality.Then,thoseprisonsthatperformworstineither category will see the right to operate their prison auc5oned o to the lowest bidder. This will keep the minimumqualityof carewithintheprisonsystemrising foryearstocomewithoutcostlyaddi5onalstandardsor inspec5ons,whilesimultaneouslydecreasingcoststothe state.

Next Steps
Crea5ng a comprehensive ra5ng system is the largest obstacletothisprogramHowever,theCaliforniaOceof the Inspector General is currently engaged in crea5ng just such a ra5ng system. Addi5onal poli5cal pressure fromtheGovernor's oceorthestatelegislaturewould likely speed this process. Any idea which incorporates any possibility of priva5zing prisonswill no doubt face s5 opposi5on from the California Correc5onal Peace Ocers Associa5on (CCPOA), which is probably the strongest union in the state. This proposi5on does requirelegisla5onandhencethecoopera5onofboththe state assembly and the senate. Fortunately, this is an idea which can exist alongside all of the current sugges5onsforeasingCalifornia'sprisonwoes,including early releases, reduc5ons in parole, reduc5on of mandatory sentencing laws, and increased use of low costout of stateprivateprisons.However, regardlessof the progressor legisla5on madein any of theseareas, introducing compe55on into the state's prison system wills5llundoubtedlyresultinsignicantcostsavingsand risingstandardsofcare.

Endnotes
1Zagger,Zach."Californialesnewplantoreduceprisonovercrowding."Jurist.UniversityofPinsburghSchoolofLaw,13

Nov.2009.Web.1Feb.2010. <hnp://jurist.law.pin.edu/paperchase/2009/11/californialesnewplantoreduce.php>. 2Goldmacher,Shane,andLarryGordon."Governor'scallforgivingcollegespriorityoverprisonsfaceshardpoli5cal tests."LosAngelesTimes,7Jan.2010.Web.1Feb.2010. <hnp://ar5cles.la5mes.com/2010/jan/07/local/lameeduca5onprison72010jan07?pg=3>. 3UnitedStates.OceofJus5cePrograms.BureauofJus5ceSta5s5cs.Proba4onandParoleintheUnitedStates,2007 Sta4s4calTables.ByTomBonczar,ManhewCooper,andLaurenGlaze.2Apr.2009.Web.1Feb.2010. <hnp://bjs.ojp.usdoj.gov/index.cfm?ty=pbdetail&iid=1650>. 4Faryon,Joanne."SoaringCostsForCaliforniasFailingPrisonSystem."InterviewbyGloriaPenner.KPBS.8Jan.2010. Web.1Feb.2010. <hnp://www.kpbs.org/news/2010/jan/08/overcrowdedandexpensivegovernoraddressescalif/>. 5Pran,TravisC.,andJeMaahs."Areprivateprisonsmorecosteec5vethanpublicprisons?Ametaanalysisof evalua5onresearchstudies."CrimeandDelinquency45.3(1999):35871.EconomicPolicyIns5tute.Web.1Feb. 2010.<hnp://archive.epinet.org/real_media/010111/materials/TravisPran.pdf>. 6UnitedStates.GeneralAccoun5ngOce.PrivateandPublicPrisons.16Aug.1996.Web.1Feb.2010. <hnp://www.gao.gov/archive/1996/gg96158.pdf>. 7Archambeault,WilliamG.,andDonaldR.Deis."CostEec5venessComparisonsofPrivateVersusPublicPrisonsin Louisiana:AComprehensiveAnalysisofAllen,Avoyelles,andWinnCorrec5onalCenters."Journalofthe OklahomaCriminalJus4ceResearchConsor4um4(1997).DepartmentofCorrec5onsofOklahoma.Web.1Feb. 2010.<hnp://www.doc.state.ok.us/oenders/ocjrc/97_98/cost%20eec5veness%20comparisons.pdf>. 8Blumstein,JamesF.,Cohen,MarkA.andSeth,Suman,DoGovernmentAgenciesRespondtoMarketPressures? EvidencefromPrivatePrisons(December2007).VanderbiltLawandEconomicsResearchPaperNo.0316; VanderbiltPublicLawResearchPaperNo.0305.AvailableatSSRN:hnp://ssrn.com/abstract=441007

NEEDTOCONDENSEENDNOTESCUTOFF

Combating Student Homelessness: 24-Hour Peer-Run Services

Jenna Edzant, Joelle Gamble and Amreen Rahman, University of California Los Angeles Colleges/Universi4es should insurethatthere is atleastone secure,oncampus buildingopen24hours a day, seven days a week, to provide homeless/needy students with shelter. Due to a lack of data on student homelessness,theUCRegentsshouldpriori4zetheissue byini4a4ngacrosssystemsurveycollec4ngdatafrom allUCcampuses.

Key Facts
Many signs can alert universi5es of homeless students, including: a lack of con5nuity in educa5on,poor healthandhygiene, ormul5ple bags/large quan55es of belongings to carry on person.(Paik,Neil) "Forthe20092010schoolyearandfutureyears. The College Cost Reduc5on and Access Act of 2007 (P.L. 11084) expanded the deni5on of independent student to include: (1) unaccompanied homeless youth;(2) youthwho areinfostercareatany5mea>ertheageof 13 or older, and; (3) youth who are emancipated minors or are in legal guardianships as determined by an appropriate court in the individual's state of residence." ( ( Help5n Unaccompanied Homeless Youth Access FinancialAid.) In a survey study conducted by theCalifornia Research Bureau on homeless youth in California,24%of thoseinterviewedatthe5me were anending either high school or college. (Bader,EleanorJ)

towards curbing the spread of homelessness throughouttheirstudentbodies.

History
With higher educa5on comes a considerable nancial burden as the price of anending college increasesannually,andsome5mes,biannually.Overthe pastfewyears,ac5onshavebeen takentoalleviatethe strainthattui5onplacesonstudents.The2009American OpportunityTax Creditaddedcoursematerialstothelist ofqualifyingclaimsforparentsandstudents.(Paik,Neil) The Student Aid and Fiscal Responsibility Act (SAFRA), which was signed into law along with health care legisla5on in early 2010, signicantly increased the amount of Pell Grant awards. SAFRA converts student lending from taxpayer subsidized lenders to the more costeec5ve Direct Loan Program, which lends money directly from the government. ("Student Aid and Fiscal ResponsibilityAct(updated3.18.10)). Despite eorts to create aordable higher educa5on,studentsares5llsueringfromtheeectsof thenancialcrisis.In2010,CaliforniasGovernor,Arnold Schwarzeneggerproposed to phase out the Cal Grants program, which many Californiastudents had relied on to pay for school. Both the Ucs and CSUs have also established fee increases while dras5cally cutng enrollment.(Bader,EleanorJ) At UCLA, some students resort to sleeping in libraries, showering in gym facili5es and carrying their personal belongs with them to class. These are not isolated incidents. Fortunately, UCLA has a 24hour campuslibrary.Otherwise,manystudentswouldhaveno shelteratnight.

Talking Points
Duetothelack of sta5s5cally based studieson studenthomelessness,universi5esprimarilyrely on anecdotal informa5on. In order to quan5fy the problem, universi5es can ini5ate an iden5ca5onprocessof atrisk studentsthrough psychological services, nancial aid, counseling and other student services. Students may be considered homeless for several dierent reasons:unexpectedevic5ons,familycrisesor a lack of a nightme residence due to long standingnancialissues.(Bernstein,Nell) Providing students in need with a dependable nightme shelter, via a 24hour oncampus loca5on, is the rststep universi5es can take

Analysis
The majority of college campuses across the country feature at least one facility designed as a "studentrecrea5onalcenter"thatprovidesservicessuch as study rooms and access to computers, lounges, athle5cfacili5es,lockerrooms,programoces,and

commonareas.Needystudentsfrequentsuchbuildings forshelter, hygienicuses,or simplyacomfortableplace to rest.(Bader, Eleanor J) These buildings become the primary resource for a universitys homeless student popula5on.

Next Steps
Schools should guarantee at least one secure buildingopenatall5mestoprovideshelterforhomeless students. Thismay beat alibrary or astudentunion. Thesebuildingsshouldhaveopenandsecurerestrooms, shower facili5es and washers and dryers. To minimize costs,thesewashersand dryerscould be renovated or secondhandsetsfromotherresidencehalls. Collec5ng data on the severity of student homelessnessiskey to implemen5ng this idea. The UC Regents can be the drivingforceforthispolicybybyini5a5ngacrosssystem surveytocollectdatafromvariouscampuses.Workingin conjunc5on with UCSA will ensure that this can be accomplished as UCSA will likely have the desire and ins5tu5onalcapacitytocollectthedata.Oncethedatais collected,boththestatelegislatureandUCRegentscan workinconjunc5onwithoneanothertoensurethatthe UC system has the budget capacity and resources to adequately address the prevalence of student homelessness. Universi5es and colleges should u5lize already exis5ngserviceswhenenac5ngthisplan,suchasstudent runsecurity forces.Fundingcancomefrom anyexis5ng

funding for student welfare services. Many schools alreadyhavebuildingsopen24hoursbutdonotprovide showersor washers/dryers or food closets.Centralizing thesefacili5esiskeytotheprojects success. If fundingallows,universi5esshouldins5tuteastudentled organiza5on to provide services who could iden5fy homeless students and provide them with informa5on concerning availablefacili5es.Theywouldorganizefood drives to collect mealplanvouchersfrom the students, as well as, collect dona5ons from their neighboring community. These groups could also hold fundraisers withalumnitorequestmonetarydona5ons.

Audience
Getng students involved and educated about studenthomelessnesswouldbethedrivingforcebehind the movement. An established and interested group of studentswouldbeabletoreachouttouniversityocials in relevant departments such as student services or housing. The next level of stakeholders involves the university board of trustees, or in the case of the University of California system: the UC Regents. Finally on the na5onal level, involving local representa5ves of the issuewouldbeidealin order togainrecogni5on of the growing homeless student popula5on. Finally, partneringtheabovestakeholderswithlocalnonprots interested in homelessness and social services would substan5allyhelpfosterasustainablesolu5on.

Sources
1.Paik,Neil."Revisedfederalaidapplica5onreleased."TheDailyBruin,January27,2010:1,4. 2."StudentAidandFiscalResponsibilityAct(updated3.18.10)|EdLaborJournal|CommineeonEduca5onandLabor."Comminee onEduca5onandLabor.N.p.,n.d.Web.27Jan.2010.<hnp://edlabor.house.gov/blog/2009/07/studentaidandscal respons.shtml>. 3.Bader,EleanorJ.2009."HomelessonCampus|TheProgressive."TheProgressive|Peaceandsocialjus5cesince1909.N.p.,n.d. Web.30Jan.2010.<hnp://www.progressive.org/node/718> 4.Bernstein,Nell,andLisaFoster."Voicesfromthestreet:Asurveyofhomelessyouthbytheirpeers."CaliforniaStateResearch Library1(2008):1133.Web.<hnp://www.library.ca.gov/crb/ 5.08/08004.pdf>Help5nUnaccompaniedHomelessYouthAccessFinancialAid.NAEHCY.<hnp://www.naehcy.org/dl/ uy_higher_ed.doc>

FormatEndNotes

A Tax Revolution in California

Kunitaka Ueno, University of California San Diego Implemen4ng a valueadded tax (VAT) and removing the corporate income tax would aaract business to California,solvetheirbudgetcrisis,andgeneratesustainableeconomicgrowth. High corporateincome taxes and heavy regula5ons are causing a massive businessexodus from California. In every month of 2009, Nevada a state with nocorporatetax and lessredtape received over a hundred inquiriesfrom companiesinCaliforniaaboutplanstomovetoLasVegas.2TheMilkenIns5tute,athinktankinSantaMonica,reported that California is steadily losing its manufacturing industry to les tax heavy states such as Arizona, North Carolina, Georgia and Texas. The departure of rms and capital has destabilized tax revenues and has undercut Californias economicperformance. Moreover, Californias heavy reliance on personal and corporate income taxes is becoming the source of notorious revenuevola5lity.Ineachrecession,Sacramentosuersa sharpdeclineinitstaxrevenuefallingmorethan24%during the dotcom bust and over 20% in the current recession.3 Collec5ng taxes from sources thatexperience pronounced uctua5onsleavesthestatepennilessin5mesofrecession Tosolvethecurrentsitua5on,Californianeedstotwothingsatonce reducethecorporatetax andintroducethevalue addedtax (VAT).Byreducingthecorporatetax,Californiawillanractbusinessinvestmentandcreatejobopportuni5es. Byimplemen5ngavalueaddedtax(VAT),thestatecanensuremorestabletaxbaseandendthescalcalamity.

Key Facts
An An5Business State: Chief Execu4ve has ranked California the worst state to conduct businessforthepastfouryears.2 CensusBureauindicatesthatCaliforniahasbeen witnessing a tax ight phenomenon, with consistentemigra5on of over 100,000residents eachyear.3 Vola5leRevenue:Californiasincometaxrevenue fell24% duringthedotcom bust,increased20% inthefollowing recovery, and havefallen more than20%inthecurrentrecession.4

and have maintained a budget surplus in this recession.2

History
Texas is a case in point. While California is sueringfromascalhole,Texas astatethatleviesno personalincometax is runningabudgetsurplus.Texas is becomingamagnetofAmericasbiggestcorpora5ons, hos5ngmoreFortune500companiesthananyotherUS state.2 With the steady inow of investment and employment,Texassjoblessrateof 7.1%isthreepoints below the na5onal average when Californias is three pointshigher.3 Texasillustratesthatlowtaxesandapro business climate lure both investment and job opportuni5es.

Talking Points
California needs to end its reliance on income taxesto stop the businessexodusand revenue vola5lity. A valueadded tax (VAT) would embrace the stabilityoftheexis5ngsalestaxwhilegenera5ng the addi5onal revenue necessary to oset the elimina5onofcorporateincometax. Recordsshowthatstateswith strong recordsof economic freedom North Carolina, Delaware, and Texas haveanracted businessinvestment

Analysis
WhilebothVATsplayasimilarroleingenera5ng revenue, they dier in their approach. Unlike exis5ng sales taxesonnalpurchasedgoods,aVATischargedon goods and services at each stage of produc5on. Consequently, a VAT is embedded in the prices and inconspicuoustotheconsumers. VATswill modernize the sales tax by expanding the tax base. Unlike income and corporate taxes, the sales tax hasbeenastablesourceofrevenue.However, thecurrentsalestaxsystemisoutdatedbecauseitisonly

imposedontangiblegoods.Californiaisapredominantly servicebased economy. The Tax Founda5on es5mated thatevenwithout the8.25%salestax,a2.77%VAT can raiseapproximately$28billionperyear.2Byplacingmost services under thetax base,Sacramentocould end the recurrentscalcrises. Consequently, the VAT would make California more businessfriendly and generate sucient revenue to remove corporate taxes. Numerous studies illustrate the economic benets of low taxes and probusiness climate. The Fraser Ins5tute, a Canadian thinktank, reportedthatstates withlowtaxesandbusinessfriendly legal systems had an annual growth rate that was 20 percenthigher than the na5onalaveragefrom 1981 to 2005.2 In contrast, states with higher taxes and more intrusiveregula5onsexperiencedanannualgrowth that was10percentbelowtheUSaverage.3

Next Steps
Governor ArnoldSchwarzenegger has organized abipar5sancommissiontoremedyCaliforniaseconomic issues.4 The commission has already proposed some variants of VAT on the table, but they arelikely to be dismissedintheearlyprocess.Togainapopularsupport for tax reform,itiscri5cal to x thestagnant economy and employment. The next step is to reduce the corporate tax. Reducing corporate tax sends a clear message to the employers it shows Californias commitmenttobecomemorebusinessfriendly.Thiswill anract businesses and create job opportuni5es for California. By boos5ng the economy and employment, thestatewillhaveabenerchanceofgainingthepopular mandatenecessarytoachieveagreatertaxreform.

Endnotes
1Emigra5onfromCalifornia:Goeastornorth,youngmanAugust27,2009.Economist:12(accessedJanuary14,

2010).
2Californiav.Texas:Americasfuture.July12,2009.Economist12(accessedJanuary14,2010). 3Cohen,MicahandKiranSherin.July27,2009.FindingStableGround:CaliforniaReformCommissionPutsTax

OverhaulonTableTaxFounda4onhnp://www.taxfounda5on.org/publica5ons/show/24928.html(accessed January23,2010). 4Dowd,AlanW.andAmelaKarabegovic.August7,2008.ThePathtoProsperityTheJournaloftheAmericanEnterprise Ins4tute.hnp://www.american.com/archive/2008/july0708/thepathtoprosperity(accessedJanuary20, 2010). 5Emigra5onfromCalifornia:Goeastornorth,youngman(accessedJanuary14,2010). 6Cohen,MicahandKiranSherin. 7Californiav.Texas:Americasfuture.(accessedJanuary14,2010). 8Californiav.Texas:Americasfuture.(accessedJanuary14,2010). 9Cohen,MicahandKiranSherin. 10Dowd,AlanW.andAmelaKarabegovic.August7,2008.ThePathtoProsperityTheJournaloftheAmerican EnterpriseIns4tute.hnp://www.american.com/archive/2008/july0708/thepathtoprosperity(accessedJanuary20, 2010). 11Dowd,AlanW.andAmelaKarabegovic. 12CaliforniaTaxReformProposalWouldPutStateBackonStableGroundTaxFounda4on(July28,2009).hnp:// www.taxfounda5on.org/news/show/24933.html(accessedJanuary24,2010).

Implement Rehabilitation Programs to Reduce Prison Overcrowding

Shah-Rukh Paracha, University of California Los Angeles Inordertoreduceovercrowdingintheprisonsystem,Congressshouldimplementmorerehabilita4onprograms thattindividualneedsthatwillreducetheamountofreentryforformerinmates. California,along with mostother states,isfacedwith the problemof overcrowding jails. Attheroot of theproblem, overcrowding is caused by the ineciency of our current system in rehabilita5ng individuals to integrate back into society.Currentdebatesaskwhetherjailsareinplacetorehabilitateanindividualortopunishthem.Thecurrentsystem inplacehastakentheideologyof punishmentforimprisonment.According toFrancesCrooks,Directorof theHoward League for Penal Reform, [people] must recognize that [punishment] is simply revenge and it is not going to be eec5ve;itwillnotstopthepanernof behaviorwhenpeoplecomeout.Manyof thepeopleinjailneedtreatmentin ordertoeec5velyintegrateinsociety.Over90%of inmatescanbediagnosedofsueringfromamentaldisorder.Over 40%ofwomeninjailhaveanemptedsuicidepriortoincarna5on.2Designingspecialprograms totpeoplesneedsthe rsttheyareincarceratedcandrama5callyreducereentryintojails;thus,ligh5ngtheburdenputontothestatepaying forthereentryandhousingofthesepeople.

Key Facts
Over 90% of inmates can be diagnosed of sueringfromamentaldisorderandover40%of women in jail have anempted suicide prior to incarna5on. Itises5matedthatover$40,000ayear isspent perinmate.

Analysis
Overcrowding in prisons have become commonplace in California. The past forty years have been marked with prisoners situated in deteriora5ng facili5esusually crampedintoaroom withveormore inmates.Overcrowdingoftheseprisonsleadstofaltered rehabilita5on of inmates due to a failure of adequate anen5on needed for the person to heal.4 A feedback loop mechanism is driven into this system as inadequately treated inmates are released back into society and soon return back to jail which addsto the problem of overcrowding itself. More than one half of prisoners released tend to end up back behind bars withinthreeyears.Thestatehasfailedtohelpprisoners injailturnawayfromalifeofcrime.Thiswilltakeeort in tracking and reforming the lives of prisoners both when theyarein jailand released.Thecost of keeping these people imprisoned is expensive. It is es5mated thatover$40,000ayearisspentperinmate.5 Intheend thestateisthebiggestloserduetothereentryofformer inmatesdueto theineciencycreated.Theinmatewill onceagaintakeup5meincourttobeprosecuted,may request forthestatetoprovidealawyer, andthestate will take another shot at rehabilita5ng the criminal, all addingtotheburdenputontothestatebudget.Inorder toreducethesecostsput ontothestate, it wouldonly makesensetoimplementa programthatwouldcorrectly healtheinmatetherst5mearound. Rehabilita5onprogramsinjailarekey toguiding an inmate away from a life of crime. In light of the current state budget crisis, California has released prisonerstheyhavedeemedatbeingalowlevelriskof

Talking Points
California jails are marked with overcrowding and federal courts have demanded that Californiastatelegislaturedosomethingaboutit. The currentsystemcreates ineciency because ofitshighreentryrates;theburdenofwhichis takenonbyCaliforniataxpayers. For society, prison 5me is most successfully spent when we anempt to rehabilitate an individualratherthanpunishanindividual.

History
In order to meet scal needs, California has reducedthefundsgiven to rehabilita5on programsand havereleasedinmates early.Inordertomeetpressures given by federal courts, Californiais releasing inmates. Ocials are planning to reduce more than 40% of the budget given to rehabilita5on programs.3 This will inevitably lead to more of the current inmates re entering jails upon their release causing the overcrowdingofjailstogetworse.

reentry.6 Despite this, some people whom have been released have already ended up back in jail. Many of thesepeoplereenterbecausethey havebeenreleased back into society to early and without any proper voca5onal training or other types of rehabilita5on programs.Beingthrownoutintotherealworld,manyex cons do not hold any skill sets thatwill allow them to obtaincashlegally.Notbeingabletopaytheirbills,many excons are forced to turn back to a life of crime and eventually lead them right back into jail.7 Studies have shown that in order for rehabilita5on to besuccessful, programs must be put into place that addresses the inmates needs and mo5vate him or her to make a change.8 A veyear Harvard study revealed that implemen5ng Transcendental Medita5on into a

maximumsecurity prison not only reduced violence within the prison,butalso reducedtherateof reentry by 3035% for par5cipa5ng individuals compared to othergroupsstudied.9

Next Steps
Californialegisla5veshouldreformthealloca5on of dollarsusedin theprison systemtoimplementmore funds to the expansion of rehabilita5on programs. Rehabilita5on programs should be put in that t the needs of individuals thatwillmostlikelyreducetherisk of reentry due to criminal charges. Reducing reentry sta5s5cs of inmates will cause shrinkage in the overcrowdingoftheprisonsacrossCalifornia.

Endnotes
1HouseofCommonsHomeAairsComminee,Rehabilita5onofPrisoners:FirstReportofSession200405VolumeII,

2005

2Rothfeld,Michael.Asrehabprogramsarecut,prisonsdolesstokeepinmatesfromreturning.

hnp://ar5cles.la5mes.com/2009/oct/17/local/merehab17(accessedMarch3,2010).

3Singer,Richard.PrisonCondi5ons:AnUncons5tu5onalRoadblocktoRehabilita5on.pg372375 4Davie,Fred.TheSecondChanceAct.hnp://www.alternet.org/rights/81512/(accessedFebruary15,2010). 5Blankstein,Andrew.Morethan1,500CaliforniaJailInmatesAreReleasedEarly.

hnp://ar5cles.la5mes.com/2010/feb/11/local/lameearlyrelease112010feb11/2(accessedMarch23,2010). (accessedApril10,2010).

6Tahmincioglu,Eve.UnabletoGetJobs,FreedInmatesReturntoJail.hnp://www.msnbc.msn.com/id/35263313//

7Murray,Iain.MakingRehabilita5onWork. 8NaturalLawParty.CrimeandRehabilita4on.hnp://www.naturallaw.org/plamorm/crime.html#notes16

(accessedApril02,2010).