CALIFORNIA STATE ARCHIVES STATE GOVERNMENT ORAL HISTORY PROGRAM ORAL HISTORY INTERVIEW with ELIZABETH G. HILL PROGRAM ANALYST, LEGISLATIVE ANALYST'S OFFICE, 1976-1979 PRINCIPAL PROGRAM ANALYST, LEGISLATIVE ANALYST’S OFFICE, 1979-1986 CALIFORNIA LEGISLATIVE ANALYST, LEGISLATIVE ANALYST'S OFFICE, 1986-2009 July 30, August 11, 28 & September 17, 24, 2015 BY CHRISTOPHER J. CASTANEDA DEPARTMENT OF HISTORY CALIFORNIA STATE UNIVERSITY, SACRAMENTO TABLE OF CONTENTS INTERVIEW HISTORY ..................................................................................................... i BIOGRAPHICAL SUMMARY ......................................................................................... ii SESSION 1, July 30, 2015. ..................................................................................................1 Childhood and family in Modesto, California – growing up in the California Central Valley – early interest in basketball – involvement with 4-H Club and Junior Leader Program – wins 8th grade speech competition – speech and debate contests – involvement in student government: student body secretary and student body president – interest in American Field Service – intern for Clare Berryhill campaign (State Assembly) – admitted to Stanford University – Human Biology major – one year abroad in Umea, Sweden through AFS – discussion of the experience in Sweden – returns from Sweden on the day of the U.S. moon landing – attends Stanford – internship at CalTrans – meets Larry Hill – attends Graduate School of Public Policy at UC Berkeley for Masters of Public Policy– discussion of program projects – Fulbright at the Royal Institute of Technology in Stockholm …………………………………………………………………………………………...33 Internship at the Stanislaus Area Association of Governments during MPP program – interest in working at CalTrans – applied for position at the Legislative Analyst's Office – hired there in November 1976 – assigned to Criminal Justice Section – A. Alan Post and the California Arts Council – initial impressions of the LAO: staffing and technology – description of offices at 925 L Street location – Sacramento Bee Capitol Bureau office in the same building – proximity to the Capitol SESSION 2, August 11, 2015 ...........................................................................................41 Discussion of the early history of the Legislative Analyst's Office – Governor Culbert Olson's opposition – initial legislative efforts to establish the LAO and Joint Rule 37 (1941) – rationale for a "zero appropriation” in State budget – U.S. Congressional Budget Office is patterned on the LAO – differences between the CBO and LAO – necessity for the LAO to be non-partisan – early dynamics: Department of Finance, Governor's Office, and Legislative Budget Committee – initially it was the Legislative Auditor's Office until 1957 – confidentiality relationships with members of the legislature – importance of confidentiality rules – LAO's role as "institutional watchdog" – discussion of offices similar to the LAO in other states – the statutory charge of making recommendations – discussion of tensions between analysts and policymakers – office culture at the LAO – Proposition 9 (1974) and proposition analyses – fiscal estimates of initiatives prior to signature gathering – proposition analyses – LAO's 31-page analysis of Proposition 13 – LAO's relationship with the news media – LAO's work and the cyclical nature of the budget cycle – division of work into subject-area groups …………………………………………………………………………………………...60 Recollection of early recommendations (1976-79) – regarding the Organized Crime Unit – meeting with Division of Law Enforcement – Department of Justice motor vehicle use – Department of Veterans Affairs, Yountville Veterans Home – first encounter with Assemblyman Willie Brown – process of recommendation approval – California Arts Council and A. Alan Post – Peter Coyote and cartoon [see appendix] – Liz Hill promoted to head of Welfare and Employment Section [1979] – changes to AFDC with election of President Ronald Reagan – In-Home Supportive Services – Drug and Alcohol Program – challenges of evaluating programs – data vs. analysis – discussion of the professionalization of the legislature – discussion of taking maternity leave …………………………………………………………………………………………...75 Liz Hill moves to front office with role of testifying before legislative committees [1982] – new LAO publication, Perspectives and Issues – challenge of becoming familiar with 100-150 bills prior to committee meetings – recruitment of new analysts – qualifications to work at the LAO – discussion of prior Legislative Analysts: Roland Vandegrift, A. Alan Post and William G. Hamm – computerization of the LAO – more on recruiting and broadening that effort – staff evaluations – discussion of Prop 13 – SB 154 and AB 8 – property values SESSION 3, August 28, 2015 ...........................................................................................91 Liz Hill becomes the Legislative Analyst – hiring process – new initiatives at the LAO – branding and logo development – office reorganization – office records management – dealing with mistakes in budget analyses – historical relationship between LAO and the Department of Finance – discussion of process to clarify the LAO's mission – introduction of CalFacts – relationship with Assembly Ways and Means and Senate Finance Committees – Prop 4 (1979) Gann Spending Limit – 1986-87 taxpayer rebate – use of fee revenues – effort to repeal Prop 4 – Prop 111 and Prop 98 – reregisters as "decline to state" ……………………………………………………………………………………..…...107 Term limits and Prop 140 – resulting 40% reduction in the legislative budget – 60% budget reduction to the LAO – unable to continue doing bill analyses – consolidation and workload increases – failure of Prop 158 and Prop 159 to ensure budget support – informed the Assembly to eliminate its funding of the LAO – funding elimination decision reversed – "Making Government Make Sense" – role of LAO during the budget crisis – Commission on State Finance – fiscal offices after the death of Jesse Unruh – SESSION 4, September 17, 2015 ...................................................................................121 Continued discussion of Prop 140 and its affect on the LAO – "Making Government Make Sense" proposal – loss of expertise – more on "Making Government Make Sense" – Constitution Revision Commission – recommendations to improve the economy – Prop 28 – Prop 58 – Manpower Demonstration Research Corporation (New York) – welfare reform efforts during 1996-97 – CalWORKS and AFDC – budget questions related to the Governor Davis recall – Governor Schwarzenegger and healthcare reform – AB 1 – requests for analysis – discussion of healthcare reform bill – interaction of LAO with Governor's office – proposed 10% across-the-board budget reductions – California budget problems ……………………………………………………………………………………….....153 Early thoughts about retirement – informing colleagues of retirement plans – the Joint Legislative Budget Committee prepares for a search for a new Legislative Analyst – thoughts about planned retirement and other opportunities – later joins the board of the California Healthcare Foundation – joins "California Competes" – discussion of LAO's election related work – title and summary fiscal analyses – use of title and summary estimates – initiative process vs. the legislative process – five competing insurance measures in 1988 – ability to sue the LAO over ballot language – general discussion of suits and appeals SESSION 5, September 24, 2015 ...................................................................................170 Non-partisan work in a partisan environment – initially an unwritten policy – influence of A. Alan Post – LAO staff prohibited from campaigning for legislative or gubernatorial candidates – conflict-of-interest rules documented during William (Bill) Hamm's tenure – public accountability and transparency emphasis – staffing – reflection on the affect of term limits – loss of institutional memory and the art of compromise – discussion of attempts to adjust effects of term limits – issues related to continuity of leadership ………………………………………………………………………………………...180 More on non-partisan environment of the LAO – examples of non-partisan work – Maxine Waters – work with Assembly member Jim Brulte – Phil Isenberg – LAO staff and overtime work – interaction with California governors – policy briefings for Assembly members – recollections of Al Alquist – recollections of John Vasconcellos – affect of term-limits on members and their future plans – Liz Hill's reflections on her career at the LAO – pride in managing the financial challenges imposed on the LAO – recognized as Public Official of the Year (1997) – "Making Government Make Sense" and other reform efforts – long-term fiscal forecasting – reflection on criticisms – fortunate to have served as Legislative Analyst NAMES INDEX .............................................................................................................195 INTERVIEW HISTORY Interviewer/Editor: Christopher James Castaneda Professor of History, CSU Sacramento Co-Director, Oral History Program, CSU Sacramento B.A., Rice University, Houston, Texas M.A., University of Houston Ph.D., University of Houston Interview Time and Place July 30, 2015 Ms. Hill’s home in Sacramento, California Session of two hours August 11, 2015 Ms. Hill’s home in Sacramento, California Session of two hours August 28, 2015 Ms. Hill’s home in Sacramento,