LAO 2004-05 Budget Analysis: General Government Issue-by-Issue TOC
Analysis of the 2004-05 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
Alternative
Retirement Benefit Programs
Background
State
Currently Has "Defined Benefit" Plans
State
Year-to-Year Costs Have Fluctuated Dramatically
Governor's
Retirement Proposal
Pension
Obligation Bond
Higher
Contributions From Current Employees
Pre-Chapter 555
Benefits for New Employees
Additional
Options for Controlling Future Retirement Costs
Tier
2 Benefits
Defined
Contribution Retirement Program
State
Information Technology Projects
Department
of Finance Conducts First Independent Assessment of All Projects
LAO's
Review of Assessment Information
Assessment
Findings Indicate Deficiencies In the State's IT Processes
Actions
the Legislature Can Take To Address Causes of Project Deficiencies
Contracting
Out for State Services
Administration's
Proposal
Key
Considerations
Evaluating
Future Economic Development Program Proposals
Technology,
Trade, and Commerce Agency Eliminated in Current-Year Budget
State
Involvement Should Be Unnecessary in Most Cases
Academic
Studies Often Show Little Impact From Programs
Past
LAO Reviews of Agency Programs Skeptical of Reported Benefits
How
Should the Legislature Evaluate Future Program Proposals?
Departmental Issues
Secretary
for Business, Transportation and Housing (0520)
General
Fund Savings Possible From Film Activities
State
Controller's Office (0840)
Fees
Appropriate for the Unclaimed Property Program
California
Gambling Control Commission (0855)
$500 Million
Increased Revenue Assumption Risky
Special
Distribution Fund-Opportunity for General Fund Savings
Board
of Equalization (0860)
Minimize
Revenue Losses From Budget Cuts
Board
Staff Cutbacks Reasonable
Local
Taxing Entities Should Pull Their Own Weight
Field
Office Consolidations
Secretary
of State (0890)
Budget
Fails to Account for Federal Election Funds
California
Science Center (1100)
Phase
Out State Funding for Operational Costs
Franchise
Tax Board (1730)
Abusive
Tax Shelters
Fees
for Franchise Tax Board Services
Revenue
Acceleration and Tax Compliance Efforts
Revenue
Acceleration Program Generates Benefits
Independent
Contractors-Bridging the "Tax Gap"
District
Office Consolidations and Reductions
Department
of General Services (1760)
Statewide
Support
DGS
Fails to Lower Service Fees
Contract
Savings Is Overstated
Real
Estate Services
Asset
Enhancement Consultant Services
Department
of Financial Institutions (2150)
State
Law on Financial Privacy Faces Federal Preemption Issues
Department
of Corporations (2180)
State
Law on Financial Privacy Faces Federal Preemption Issues
Housing
and Community Development (2240)
Mandate
for Regional Planning Continues to Suffer From Ineffectiveness
Proposal
to Continue Deferral of Costs
Recent
Developments Add to Case Against Mandate
Mandate
Not Worth the Cost
Other
Issues
Transfer
School Facilities Fund Balance
Shut
Down Dormant Child Care Program for Savings
Stephen
P. Teale Data Center (2780)
Withhold
Recommendation on Data Center Expenditure Authority
Health
and Human Services Agency Data Center (4130)
Data
Center Consolidation
Withhold
Recommendation on Data Center Expenditure Authority
Other
Issues
Withhold
Recommendation on Transfer of Payroll System
Additional
Funding for Fingerprint Project Not Justified
Employment
Development Department (7100)
No
Expenditure Plan For Discretionary Workforce Funds
Setting
Priorities for Unemployment Administration
Restoring
Solvency to the Unemployment Insurance Fund
Background
UI
Fund Condition Deteriorates
Federal
Loan Means No Interruption in Benefit Payments
Options
for Restoring Solvency
No
Proposal in Governor's Budget
Conclusion
California
Arts Council (8260)
Delete
General Fund Support for Arts Council
California
Department of Food and Agriculture (8570)
New
Funds for Pierce's Disease Not Needed This Year
Position
Management Fails To Provide Appropriate Oversight
How
State Departments Manage Positions
How
CDFA Manages Positions
What
Is the Department's Rationale for Its Policies?
Rationale
for Separate Process Flawed
Management
Practices Have Serious Deficiencies
Recommendations
Commission
on State Mandates (8885)
Administration's
Mandate Proposal
Department
of Veterans Affairs and Veterans' Homes of California (8950-8966)
Privatization
Proposal Assumes Constitutional Amendment
Tax
Relief (9100)
VLF
Issues
Vehicle
License Fee Backfill
Local
Government Hardship
Medically
Indigent Adult Program
Williamson
Act-Subventions for Open Space
Local
Government Financing (9210)
Booking
Fees
Background
Proposal
Analysis
Recommendation
Health
and Dental Benefits For Annuitants (9650)
Budget-Year
Costs Not Yet Completely Determined
Augmentation
for Employee Compensation (9800)
Employee
Pay and Benefit Increases
Control
Section 3.60
State
Contribution Rates Continue Upward . . .
.
. . But Governor's Retirement Proposal Would Reduce 2004-05 Contributions
Control
Section 4.20
Administrative
Fee Should Be Reduced
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