Putting the Governor’s Sentencing Proposal in Context

Governor Brown has proposed a ballot measure—the Public Safety and Rehabilitation Act—that could significantly alter sentencing in California. If it qualifies for the ballot—which seems likely—and is approved by voters in November, the measure would allow non-violent felons who have earned enough credits for good behavior to spend less time in state prison. It would also shift the power to determine whether juveniles should be tried as adults from prosecutors to judges. The measure follows the path of decreased reliance on incarceration that California has been on since 2009.

Motivated primarily by a federal court’s 2009 mandate to improve health care and reduce overcrowding in the state’s prison system, California has implemented a number of measures that have considerably reduced the prison population. Since reaching a historic high in 2006, the prison population has dropped by 45,000, a decrease of about 26 percent, and the state’s overall incarceration rate is down to levels not seen since the early 1990s.

Although a number of policies have contributed to this decline, it is largely attributable to two recent major reforms: the 2011 Public Safety Realignment Act, or AB 109, which shifted responsibility for many non-serious, non-violent, and non-sexual offenders to county jail and probation systems; and Proposition 47, which reclassified some drug and property felonies as misdemeanors. Since January 2015, two months after voters approved Prop 47, the prison population has remained below the court-mandated target. That is good news for the state. However, the institutional population is only about 1.1 percent, or 900 inmates, below the target. Given this slim margin—and given the fact that the state still needs to show that it is providing adequate health care—the pressure is still on.

Californians appear to be supportive of lessening penalties for crime and downsizing state prisons. Recent criminal justice initiatives, such as Proposition 36 in 2012 (which revised California’s three-strikes law) and Proposition 47 in 2014, passed by rather wide margins—close to 70 percent and around 60 percent respectively.

Voters may well be inclined to see reductions in spending on prisons, and with good reason. California’s corrections budget continues to grow, with the governor requesting $10.6 billion from the General Fund for 2016–17—a historic high. This amount does not include more than $1 billion annually that the state transfers to counties to implement realignment. For 2016–17, the state is projecting the cost of the prison system to be almost $70,000 per prisoner. A significant reduction in the prison population could finally allow the state to stop the use of out-of-state contract beds and possibly close a state prison. These actions could potentially lead to hundreds of millions of dollars in annual savings. Without further reductions in the prison population, it will be difficult for the state to stop using contract beds and remain below the court-ordered population cap.

Finally, it should be noted that, unlike realignment and Propositions 36 and 47, which implemented changes based on the kind of offenses committed, this measure focuses mainly on the behavior of the offenders. After they earn enough credits for good behavior and achievements in education and rehabilitation, non-violent prison inmates can be paroled and released early. If this incentive is accompanied by effective educational and rehabilitative programs, it could reduce recidivism. More broadly, this measure, combined with the redirection of spending toward cost-effective crime preventive strategies, could help California use its corrections resources more wisely.

Chart source (TOP): California Department of Corrections and Rehabilitation (CDCR) monthly population reports.

Chart source (BOTTOM): California Department of Finance.

State Water Market Needs Reform

Water trading is an important tool for managing water scarcity. It enables water right-holders to voluntarily shift water—permanently or temporarily—to those who need it, making better use of existing supplies. Despite potential benefits, the approval process for trading water in California continues to be lengthy, cumbersome, and lacking in transparency. This is an especially big concern during droughts, when speed is important.

In California, water trading takes the form of short-term leases, long-term leases, and permanent sales. The figure below shows statewide estimates of volumes of water traded in recent decades, including the first three years of the latest drought.

Since the onset of the latest drought, total volumes traded appear to have tapered off, despite strong demand. Farmers facing scarcity have been willing to pay record-high water prices for their high-value crops. Prior to this drought, an acre-foot of water typically sold for less than $500, and sometimes less than $100. In the spring of 2014, a Kern County water district auctioned 12,000 acre-feet of stored groundwater to local users and got bids for more than 60,000 acre-feet at a price of $650 per acre-foot or more. In the summer of 2015, some San Joaquin Valley farmers were reported to have leased water for as much as $2,000 per acre-foot—more than most cities pay for municipal supplies.

But the slow approval process, along with tight supply conditions, limited volumes available for sale. While senior water-rights holders normally have more reliable and ample water supplies, the past several years have been so dry that the state decided to cut their water allocations for the first time since 1977. The cuts rippled throughout the market. For instance, the Metropolitan Water District of Southern California had planned to purchase around 100,000 acre-feet from Sacramento Valley rice growers, but that deal was contingent on the growers getting a full allocation. When the growers’ allocation was cut by half, the deal was significantly scaled back.

The drought has placed markets at the center of a conversation about ways to manage droughts and lessen the costs of scarcity. Many point to the example of Australia, which significantly expanded water rights trading in the midst of drought. Buyers and sellers register their shares with the help of brokers—often using online trading platforms—and trades are approved within a matter of hours or days, not the weeks and months that are the norm in California.

To reach Australia’s level of fast-paced trading, California would need to address many challenges. Clarifying and simplifying the review process for transfers is one priority. This will require improving information about water availability and how much can be safely traded without harming the environment or other legal water users. In addition, California will need to address infrastructure weaknesses that restrict moving water between buyers and sellers in some places.

Making these changes will require the cooperation of water users and state, federal, and local agencies. It won’t happen overnight, but we need to get started. Strengthening California’s water market will be key to effectively managing future droughts, a regular feature of our climate.

Chart source: Updated from E. Hanak and E. Stryjewski. California’s Water Market, By the Numbers: Update 2012 (PPIC, 2012).

Chart notes: The figure shows water traded between entities that are not members of the same water district or wholesale agency. It excludes volumes committed under long-term lease and permanent-sale contracts that were not physically transferred. Dry years are those classified as critical or dry for the Sacramento Valley

Learn more
Read our report What If California’s Drought Continues? (August 2015)
Read our report Allocating California’s Water: Directions for Reform (November 2015)

Video: A Conversation with Legislative Leadership

At a PPIC event last week, Kevin de León, senate leader pro tem, and Chad Mayes, the Assembly Republican leader, were asked to name the top three issues the legislature should work on with the governor. Though the leaders come from different sides of the aisle, the list of issues they named before a large Sacramento audience had a lot in common. De León’s priorities began with income inequality between the coastal and inland regions, a “tale of two states.” He also listed water and making targeted investments, particularly in higher education. He went on to list a fourth issue: climate change.

Mayes named water and a lack of water infrastructure, and the many Californians left behind in the state’s economic recovery. His third issue was transportation, the focus of an ongoing special legislative session.

“Everywhere that I go in California,” he said, “I’m stuck in traffic. So we know there’s a problem.”

The leaders’ top issues dovetail with findings from the latest PPIC Statewide Survey in which Californians identify water and the economy as the most important issues for the legislature and governor to work on in 2016. 

Though De León and Mayes named similar priorities, there was much less agreement on solutions. But the two maintained a collaborative tone throughout their conversation, denounced what Mayes termed “demagoguery on the national stage,” and repeated their commitment to working together productively.

De León said the legislature can avoid being mired in bitter national political debates if leaders continue to work cooperatively to “get some real tangible victories for Californians.”

“We’re doing things very differently in the state of California,” he said.