Budget Trends and Highlights (2022-2025)

Position Growth

• Overall Growth: 9.7% increase in positions from 2022-23 (63.8) to 2024-25 (70.0)
• Recent Reduction: The 2024-25 budget shows a decrease of 22.0 positions (23.9% reduction) compared to 2023-24
• Major Staffing Initiatives:
  • Support positions increased from 21.0 in 2022-23 to 27.0 in 2024-25 (28.6% growth)
  • California Interagency Council on Homelessness positions increased from 42.8 in 2022-23 to 43.0 in 2024-25 (0.5% growth), but decreased from 65.0 in 2023-24 (33.8% reduction)

Budget Fluctuations

• Total Budget Reduction: 99.0% decrease from 2022-23 ($1.06 billion) to 2024-25 ($10.2 million)
• General Fund Support: Decreased from $1.06 billion in 2022-23 to $6.1 million in 2024-25 (99.4% reduction)
• Significant Funding Shift: Major reduction in homelessness grant program funding in 2024-25 due to transition of programs

Program Funding (2024-25)

• Support: $6.6 million (Code 0260)
• California Interagency Council on Homelessness: $3.7 million (Code 0265)

Major Funding Codes and Sources

The Secretary of Business, Consumer Services and Housing receives funding from various sources, each designated by specific budgetCodes in the state budget:

Program Codes

• 0260 - Support: Core operations of the Business, Consumer Services, and Housing Agency
• 0265 - California Interagency Council on Homelessness: Coordinates state's approach to addressing homelessness

Funding Source Codes

• 0001 - General Fund: State's primary operating fund ($6.1 million in 2024-25)
• 0995 - Reimbursements: Recovery of costs from other entities ($2.9 million in 2024-25)
• 3363 - Financial Protection Fund: Supports financial protection activities ($0.4 million in 2024-25)
• 3036 - Alcohol Beverage Control Fund: Supports alcohol regulation oversight ($0.3 million in 2024-25)
• 0317 - Real Estate Fund: Supports real estate regulation oversight ($0.3 million in 2024-25)

Major Projects and Initiatives

Housing and Homelessness

The Agency leads California's efforts to address housing affordability and homelessness:

1. California Interagency Council on Homelessness (Cal-ICH): Coordinates the state's response to homelessness across multiple departments and agencies, developing strategic plans and policy recommendations.

2. Housing Affordability Initiatives: Oversees programs to increase housing production and preserve affordable housing through the Department of Housing and Community Development and California Housing Finance Agency.

3. Homelessness Grant Programs Transition: Managing the transition of major homelessness grant programs, including the Homeless Housing, Assistance and Prevention (HHAP) program, to ensure continuity of services.

Consumer Protection

The Agency oversees departments that protect consumers through licensing, regulation, and enforcement:

1. Financial Protection and Innovation: Supervising the Department of Financial Protection and Innovation's efforts to protect consumers in financial markets, including oversight of financial institutions, lenders, and investment advisors.

2. Professional Licensing and Regulation: Coordinating the Department of Consumer Affairs' licensing and regulation of more than 4 million professionals across numerous industries.

3. Real Estate Oversight: Overseeing the Department of Real Estate's regulation of real estate professionals and transactions to protect consumers in the housing market.

Regulated Industries

The Agency supervises departments that regulate specific industries:

1. Alcoholic Beverage Control: Overseeing the Department of Alcoholic Beverage Control's licensing and enforcement activities related to the manufacture, distribution, and sale of alcoholic beverages.

2. Cannabis Regulation: Supervising the Department of Cannabis Control's efforts to establish a safe, sustainable, and equitable cannabis industry through licensing, compliance, and enforcement.

3. Horse Racing Industry: Overseeing the California Horse Racing Board's regulation of horse racing to ensure the integrity of the sport and the safety of horses and jockeys.

Administrative Structure

The Business, Consumer Services, and Housing Agency oversees and coordinates the activities of several departments and entities:

1. Office of the Secretary: Provides leadership and strategic direction for the agency and its departments.

2. California Interagency Council on Homelessness: Coordinates state efforts to address homelessness, co-chaired by the Secretary of Business, Consumer Services and Housing and the Secretary of Health and Human Services.

3. Departments and Entities Under BCSH:

   • Department of Housing and Community Development
   • California Housing Finance Agency
   • Department of Financial Protection and Innovation
   • Department of Consumer Affairs
   • Department of Real Estate
   • Department of Alcoholic Beverage Control
   • Department of Cannabis Control
   • Civil Rights Department
   • California Horse Racing Board
   • Alcoholic Beverage Control Appeals Board
   • Cannabis Control Appeals Panel

Funding Allocation Process

1. Budget Development: The Agency works with the Department of Finance to develop budget proposals for agency operations and departmental programs.

2. Legislative Appropriation: The Legislature reviews the agency's budget proposals and makes appropriations through the annual Budget Act.

3. Program Implementation: Funding is allocated to specific programs and initiatives based on statutory requirements and strategic priorities.

4. Grant Administration: The Agency oversees the administration of housing and homelessness grants, ensuring funds are distributed effectively to address critical needs.

5. Performance Monitoring: The Agency monitors the implementation and effectiveness of funded programs, with a focus on improving outcomes for Californians in housing, consumer protection, and regulated industries.

Sources