Budget for CSU lacks useful targets
One of our long-running frustrations with the Gavin Newsom administration is that throws money at state agencies and problems but lacks much follow through in examining how the money is spent. That was particularly true during COVID when the governor enjoyed an influx of federal cash and a budget surplus that reached $97.5 billion and didn’t have to make hard choices.
Not surprisingly, this “throw money at it” approach sometimes leads to scandal. For instance, the Employment Development Department reportedly sent out as much as $31 billion in unemployment claims to scammers. More often, though, this approach simply leads to an inefficient and counterproductive use of public funds even for useful programs.
A new report from the wellrespected Legislative Analyst’s Office points to a situation that fits in the latter category. Although focusing on a relatively minor spending issue by California’s free-spending standards, the matter offers lessons for taxpayers and policymakers. It involves Newsom’s budget proposals that funds some of California State University’s operations. The budget boosts its general fund by 5 percent — or $227 million.
“The governor does not designate the base increase for any particular purposes,” the report explained. “We recommend the Legislature take a more transparent budget approach by determining which … operating cost increases it wishes to support.” That’s LAO’s typically understated language for: Newsom sent a bunch of money with no direction on what the university should do with it.
CSU’s enrollment is declining, LAO reported, yet “the governor’s budget does not remove the $81 million” earmarked for increasing enrollment. Finally, LAO explained that Newsom rescinded $405 million in one-time funding for some capital projects — replacing it with $27 million in ongoing funds to pay bond debt. LAO asks the Legislature to consider whether these projects are so important they justify running up debt.
Californians are rightly supportive of the Cal State system, which provides wide educational opportunities throughout 23 campuses. Yet even the most important programs benefit from transparency, goals, targets and oversight. It’s disappointing the state of California has yet to master these basic budgeting lessons.