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LAO 2005-06 Budget Analysis: General Government Issue-By-Issue Contents Analysis of the 2005-06 Budget Bill
General Government Issue-By-Issue Contents

Overview

Spending by Major Program

State Administration

Tax Relief and Local Government Payments

State Employment and Retirement

Crosscutting Issues

Homeland Security

Background

State's Approach to Homeland Security

Budget Proposals

State Has Started Addressing Homeland Security Needs …

… But Lacks Unified Strategic Approach

Legislative Direction Needed

Most of the Homeland Security Grant Funds Have Not Been Spent

Recommendations to Improve State's Homeland Security Efforts

Departmental Issues

Department of Insurance (0845)

Insurance Fund Precariously Balanced

Recommend Rejecting Nonessential Proposals

Online Credit Card Payment Efficiencies Should Be Reverted

California Gambling Control Commission (0855)

Expansion of Commission Lacks Detail And Needs Further Consideration

Background

Proposal

Administration Fails to Justify Doubling of Commission

Recommend Commission Resubmit Improved Request

Board of Equalization (0860)

Electronic Technology Presents Advantages

Waste Recycling Fee Administration

Secretary of State (0890)

Federal Election Reform

Background

Federal Funding

2003-04 Funding

2004-05 Funding

2005-06 Funding

Other Funds

Recent Developments

Budget-Year Spending Will Depend on Current-Year Actions

Suspension of Election Mandates

Many Election Requirements Are Reimbursable State Mandates

Governor Proposes to Suspend All Election Mandates

Recommend Two Mandates for Repeal

Fund Two Mandates With Minimal State Costs

Reform Three Mandates

California Science Center (1100)

Information on Admission Fee Not Provided

Franchise Tax Board (1730)

Electronic Technologies Cut Costs

Tax Gap Expenditures Could Be Reduced

Department of General Services (1760)

Budget Provisions Need Clarification

DGS Can Improve Its Drug Procurements

State Personnel Board (1880)

POBOR Mandate

Background

Recent Court Decision Casts Doubt On Commission's Mandate Determination

State Teachers' Retirement System (1920)

Background

The Basics of the STRS Plan

Actuarial Valuation Finds Funding Shortfall

Local Program Has No Local Control Or Responsibility

System Problems

Long-Term Solutions

Box: Larger State Teachers' Retirement System (STRS) Funding Issue Looms

Governor Proposes Cost Shift to School Districts

Proposal

Short Term: Does the Governor's Proposal Work As a 2005-06 Budget Solution?

Long Term: Does the Proposal Move Toward the Goals of Local Control and Responsibility?

Department of Technology Services (1955)

Creation of New Department

Background

Administration's DTS Proposal

Consolidation Should Improve Services and Reduce Costs…

… But Proposal Would Shut Down Legislative Oversight

Recommended Changes to Administration's Plan

Other Department Issues

Staffing Request Premature

Department of Corporations (2180)

Grant Funding for Investment Fraud Education Comes to an End

Online Filing Program Double-Budgets Some Equipment Replacement

Employment Development Department (7100)

Update on the UI Insolvency

Improving Legislative Oversight for Unspent WIA Funds

Restoring Auditors and Collectors to Increase Revenue

California Department of Food and Agriculture (8570)

Funding Options for the Mediterranean Fruit Fly Preventative Release Program

Background

Assessing International Travelers and Commerce Not Feasible

Other Options Considered

Key Considerations for an Industry Assessment

Other Departmental Issues

Position Information Not Available

Animal Control Mandate

Emerging Threats to Food Supply

Military Department (8940)

Oakland Military Institute

Tax Relief (9100)

Changes Proposed for Senior Citizens' Assistance

Program Eligibility Was Expanded

Proposed Changes in Seniors' Tax Assistance

Considerations for the Legislature

Newly Identified Mandate Review

County Auditor Redevelopment Tax Report Mandate

Reporting Mandate No Longer Needed

Local Government Financing (9210)

Mandates

Open Meeting Act

Health Benefits for Survivors of Peace Officers and Firefighters

Rape Victim Counseling

Photographic Record of Evidence

Mandate Reimbursement Process

Four Mandates Suspended Annually Since Early 1990s

Health and Dental Benefits For Annuitants (9650)

Budget-Year Costs Not Yet Completely Determined

Employee Compensation (9800/9955)

Employee Pay and Benefit Increases—Item 9800

Proposed Savings From Collective Bargaining—Item 9955

Retirement Contributions (Control Section 3.60)

State Contribution Rates Up Slightly . . .

. . . But Delayed Pension Bond Would Reduce 2005-06 Contributions

Procurement Reform (Control Section 33.50)

Minimal Contract Savings Achieved to Date