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Analysis of the 2004-05 Budget BillLegislative Analyst's Office
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The Department of Food and Agriculture (DFA) operates 16 agricultural inspection stations, four veterinary laboratories, a chemistry and plant pest diagnostic laboratory, and an out-of-state pest laboratory in Hawaii. The Governor's budget proposes $19.6 million for two capital outlay projects. This amount includes $12.8 million from lease revenue bonds, $6.4 million from the State Highway Account, and $416,000 from the Department of Agriculture Fund.
For the 2003 California Five Year Infrastructure Plan, DFA identified $203.9 million of infrastructure needs for the five-year period of 2003-04 through 2007-08 (see Figure 1). The needs identified by DFA primarily address the replacement and/or renovation of aging facilities, including laboratories, agricultural inspection stations, and office space. This figure also shows the amount of capital outlay appropriated in the 2003-04 Budget Act and proposed in the 2004-05 Governor's Budget.
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Department of
Food and Agriculture |
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(In Thousands) |
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2003-04 |
2004-05 |
2005-06 |
2006-07 |
2007-08 |
Total |
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Needs
Identified by DFA |
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Critical
infrastructure deficiencies |
$6,253 |
$58,096 |
$40,230 |
$8,300 |
— |
$112,897 |
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Program
delivery changes |
6,585 |
— |
550 |
800 |
$8,300 |
16,235 |
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Workload
space deficiencies |
3,036 |
11,078 |
700 |
60,000 |
— |
74,814 |
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Totals |
$15,874 |
$69,174 |
$41,480 |
$69,100 |
$8,300 |
$203,928 |
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Projects Scheduled for Funding |
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Critical
infrastructure deficiencies |
— |
— |
— |
— |
— |
— |
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Program
delivery changes |
$6,585 |
— |
— |
— |
— |
$6,585 |
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Workload
space deficiencies |
10,961 |
— |
— |
— |
— |
10,961 |
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Totals |
$17,546 |
— |
— |
— |
— |
$17,546 |
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Approved in 2003-04 and Proposed in 2004-05 |
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Total |
$10,961 |
$19,652 |
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We note that the plan proposed to fund $17.5 million in 2003-04, yet the amount approved totaled $10.9 million. The difference reflects the termination of the Dorris Agricultural Inspection Station (Siskiyou County) because of a lack of local support for the project. In addition, although the plan indicated there would be no projects in 2004-05, the Governor's budget proposes funding for an existing project that seeks a new appropriation because of higher-than-anticipated construction costs, and a project to perform repairs at a DFA facility that was not identified in the administration's infrastructure plan.
We recommend the Legislature delete $416,000 for preliminary plans, working drawings, and construction for "repairs" to the existing Mediterranean Fruit Fly (Medfly) rearing facility in Hawaii, because repairs are funded from a department's annual operating expenses.
The Governor's budget proposes $416,000 from the Department of Agriculture Fund for preliminary plans, working drawings, and construction to repair an existing Medfly rearing facility in Waimanalo, Hawaii. However, repairs to existing facilities are not funded as capital outlay projects but, rather, are funded from a department's operating expenses. Based on a review of the proposal, the DFA characterizes the tasks to be performed as repairs to the current Medfly facility. Moreover, the project was not identified as a capital outlay need in the 2003 infrastructure plan. Consequently, it does not appear that the proposed project entails facility "modifications and betterments," which would qualify as a capital outlay project.
Accordingly, we recommend the Legislature delete funding for this repair project. To the extent DFA believes this project consists of capital outlay, it should submit justification that establishes the capital outlay components of the project, a detailed description on the full scope of the project, and an explanation on why DFA did not identify this project in the administration's 2003 infrastructure plan.