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
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