LAO 2003-04 Budget Analysis: General Government Issue-by-Issue TOC
Analysis of the 2003-04 Budget Bill
General Government Issue-By-Issue Contents
Overview
Spending by
Major Program
Local
Government Subventions
Tax Relief
Tax
Collection Programs
Regulatory
Activities
State
Administrative Functions
State
Retirement Programs
Employee
Compensation
Crosscutting Issues
State
Retirement Contributions
Background
Budget
Proposal
First—Pension Obligation Bonds
Second Alternative—Fixed-Income
Investment
Details Not
Ironed Out
Incurring
Debt for Operating Costs Is Ill Advised
General
Government—Mandates
Background
Budget
Proposal
Vacant
Positions
Background
Finance
Directed to Address Vacant Positions
Administration
Requests Authority to Reverse Control Section 31.60 Reductions
State
Emergency Telephone Number Account
Background
Administration
Proposes Additional Activities for Funding
Proposed
Activities Do Not Relate to 911 Telephone Systems
Proposition 46
Housing Bond
Housing Bond
Provides Funding for 21 Programs
Overview of
Proposition 46
Funds to Be
Spent Over Several Years
Broad Legislative
Discretion Over Use of Funds
Some
Administrative Costs Are Too High
Migrant
Services Center Needs Rehabilitation
Options for Using
the Housing Bond To Help Address the Budget Shortfall
Backfill
Redevelopment Housing Funds
Funding
Switch for Committed, but Not Disbursed, Projects
Key
Considerations
Information
Technology Governance
Previous
Governance Structures Have Not Been Effective
Governance
Model Needs to Address Problems
Administration's
Model Consists of Three Components
Many
Questions Need to be Answered
State Data
Centers—Options for Savings
Option—Consolidation
of Data Centers
Single
Organizational Structure Could Provide Savings
Many Areas of
Potential Benefits and Savings
Administration
Should Report on Consolidation Option
Option—Consolidation
of Servers
Locating
Servers in State Data Centers Could Save Millions
Departmental Issues
Contributions
to the Judges' Retirement System (0390)
Budget-Year
Opportunity for General Fund Savings
Secretary for
Business, Transportation and Housing (0520)
Minimal
Efficiency From Consolidation
Agency's
Staffing Level Larger Than Budgeted
Labor and
Workforce Development Agency (0559)
Agency in
First Year of Operation
State
Controller (0840)
Fee Revenues
Should Replace General Fund Support For the Unclaimed Property Program
California
Gambling Control Commission (0855)
$1.5 Billion
Increased Revenue Assumption Risky
Special
Distribution Fund—Opportunity for General Fund Savings
Board of Equalization (0860)
Sales Tax Simplification
Legal Restrictions on SUT Collections
States Are Attempting to Address the Issue
California Not Participating in Sales Tax
Simplification Efforts
The BOE Should Report Regarding California's
Participation in Multistate Efforts
State Options Concerning Cigarette Tax Evasion
Current Taxation of Cigarettes and Tobacco Products
Cigarette Tax Revenue
Types of Cigarette Tax Evasion Activity
How Significant Is Cigarette Tax Evasion?
What Can California Do About Cigarette Tax Evasion?
Federal-State Enforcement
Expanded State Enforcement
Secretary of State (0890)
Funding for Vacant Positions Not Justified
Set Fee Equal to Costs
Franchise Tax Board (1730)
Increase Tax Practitioner E-Filing
Nonfiler Program
Threshold Should Be Lowered
FTB Should
Revisit the Treasury Offset Program
Department of
General Services (1760)
Withhold
Recommendation on Employee Parking Lot
State
Personnel Board (1880)
No
Information on Proposed General Fund Cut
Housing and Community
Development (2240)
Mandate for Regional Planning Needs Legislative
Changes
Proposal to Defer Costs for Mandate
City and County Mandate Does Not Lead To Housing
Element Compliance
Wait for Reform—Suspend Mandate for Regional
Governments
Stephen P.
Teale Data Center (2780)
Reduce
Equipment Increase Proposal and Direct Data Center to Report on Actions to
Reduce Costs and Rates
Additional
Positions for California Home Page Not Justified
Technology,
Trade, and Commerce Agency (2920)
Agency Budget
Greatly Reduced Since 2001-02
What General
Fund Support Remains?
Film Permit
Subsidy Program
Foreign Trade
Offices
Agency Size
Warrants Department Status
CalTIP Grant
Program Not Cost-Effective
Grant Program
for Technology Developed by Small Businesses
Survey
Results
Has CalTIP
Been Worth the Cost?
Stated
Purposes Not Clearly Met
CalTIP Is Not
a Cost-Effective Use of General Fund Resources
Health and
Human Services Agency Data Center (4130)
Deny
Equipment Increase Proposal and Direct Data Center to Report On Actions to
Reduce Costs and Rates
Deny
Operational Recovery Proposal Due to Project Inconsistencies
Proposed
Budget Bill Language Unnecessary
Financing
Available for Child Welfare Services Project
Data Center
Should Examine Competitive Procurement
Employment
Development Department (7100)
Workforce
Investment Act Discretionary Funds
Reed Act
Funds Available for Benefit Payments and Administrative Improvements
Department of
Industrial Relations (7350)
Budget
Proposal for Implementation of Workers' Compensation Package
Background
Budget
Request
New
Activities Do Not Justify Entire Request
Option to
Defer Some Requests
Department of Personnel
Administration (8380)
Need for Staff to Process Layoffs Unclear at This Time
California
Department of Food and Agriculture (8570)
Animal
Control State Mandate
Background
Mandate Costs
Much Higher Than Anticipated
LAO Recommendation:
Prior-Year Costs Need Review
LAO
Recommendation: Suspend Animal Control Mandate in Budget Year
Industry
Should Contribute to Medfly Control
California
Consumer Power and Conservation Financing Authority (8665)
Authority Has
Not Achieved Financial Self-Sufficiency
Department of
Veterans Affairs and Veterans' Homes of California (8955-8966)
Fee Increases
for Home Residents Should Be Broadened
Relatively
Few Home Residents in Medi-Cal
Background
Tax Relief
(9100)
VLF Backfill
Reduction Proposed
Elimination
of Subventions for Open Space
Health and
Dental Benefits For Annuitants (9650)
Budget-Year
Costs Not Yet Completely Determined
Augmentation
for Employee Compensation (9800)
Employee Pay
and Benefit Increases
Reduction in
Employee Compensation Expenditures Proposed
Collective
Bargaining Process Provides Framework for Determining Cuts
Proposed
Budget Language Does Not Include Legislative Oversight
Legislative
Options for Exercising Control Over Compensation Reductions
Pro Rata
(9900)
Background
Concerns
About the Revised Methodology
Control
Section 3.60
State
Contribution Rates to Jump. . .
. . .But
Governor's Retirement Proposal Would Zero-Out 2003-04 Contributions
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