LAO 2003-04 Budget Analysis: General Government Issue-by-Issue TOC Analysis of the 2003-04 Budget Bill
General Government Issue-By-Issue Contents


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


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


Budget Proposal

Vacant Positions


Finance Directed to Address Vacant Positions

Administration Requests Authority to Reverse Control Section 31.60 Reductions

State Emergency Telephone Number Account


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


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


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


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)


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