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December 2004

LAO Recommended Legislation

General Government


Department of General Services

Authorize Equipment Financing Program

Recommendation

Create a statutory framework for the state's equipment financing program.

Rationale

Every year the state purchases hundreds of millions of dollars in equipment. The state either makes these purchases outright, or through some type of financing program. In 1996, the Department of General Services (DGS) established the GS $Mart (pronounced "GS Smart") Program that the state uses to finance equipment purchases. Since the inception of GS $Mart, the state has financed over $445 million in equipment purchases. In our 2003 review, one of the major problems we identified was the lack of statutory authority, and thus legislative direction, for the program.

LAO Reference

Please see Get $mart: Reforming the State's Equipment Financing Program (January 2003).

LAO Contact

Anna Brannen: 319-8344 


Department of Personnel Administration

Review Collective Bargaining Agreements

Recommendation

To strengthen the Legislature's oversight of collective bargaining and require a minimum 30-day review period for collective bargaining proposals.

Rationale

The Ralph C. Dills Act directs the administration and employee representatives to reach labor agreements before adoption of the budget act for the ensuing year. The act further specifies that provisions of memoranda of understanding (MOUs) requiring the expenditure of state funds be approved by the Legislature in the annual budget act before the provisions may take effect. Historically, however, agreements often have not been reached in time for legislative consideration as part of the budget process. Instead, the Legislature has received MOUs for approval late in the legislative session. In addition, assessments of the total cost of the MOUs have not always been available or complete for consideration with the proposals.

Reference

Please see our Analysis of the 2001-02 Budget, pages F-150 and F-151; and F-198 through F-200.

LAO Contact

Todd Clark: 319-8361

 

Acknowledgments

The Legislative Analyst's Office (LAO) is a nonpartisan office which provides fiscal and policy information and advice to the Legislature.

LAO Publications

To request publications call (916) 445-4656.

This report and others, as well as an E-mail subscription service, are available on the LAO's Internet site at www.lao.ca.gov. The LAO is located at 925 L Street, Suite 1000, Sacramento, CA 95814.


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