LAO 2006-07 Budget Analysis: General Government Issue-By-Issue TOC
Analysis of the 2006-07 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
Departmental Issues
Governor’s Office (0500)
Automatic Budget Increases Unnecessary
Secretary for Business, Transportation, and Housing (0520)
Tourism Marketing Augmentation Not Justified
Office of Emergency Services (0690)
Department’s Plan to Address Accounting Issues Pending
New Criminal Justice Grant Programs Not Justified
Department of Insurance (0845)
Budget for Health Provider Complaint Unit Should Be Reduced
California Gambling Control Commission (0855)
Expansion of Commission Staff Justified, but Pace of Growth and Funding Method Need Consideration
Background
Proposal
No Need for General Fund Dollars
Increased Workload and Technology Justify Expansion
Commission Needs to Improve Productivity, Prove Worth of New Units
Board of Equalization (0860)
Allocation of Sales and Use Tax Administrative Costs
State and Local Sales and Use Taxes
Allocation of Administrative Costs
LAO Recommendations
Sales and Use Tax Gap
What Is the Tax Gap?
How Big Is the Tax Gap?
Components of the Sales and Use Tax Gap
Bridging the Tax Gap
LAO Recommendations
Electronic Technology Planning
Secretary of State (0890)
HAVA Background
Federal Election Reform
HAVA Requirements
Federal Funding for HAVA
California’s Share of Funding
Spending Options
Status of HAVA Spending
Development of a State Spending Plan
Status of Nondiscretionary Spending
Replacement of County Voting Machines
Disabled Access
Status of Discretionary Spending
Payments to Counties
SOS Administration
Statewide Database
Other Approved HAVA Activities
2006-07 Proposal
Continuing LAO Concerns on HAVA Implementation
Lack of Required Information Continues to Cause Problems
Delays Impair Meeting June 2006 Election Deadline
Plan Exposes General Fund to Database Costs
Outstanding Liabilities From Federal Audit
SOS Needs to Update Its Budget
Franchise Tax Board (1730)
Review of Two Tax Credits
Child and Dependent Care Expense Credit
Enterprise Zone Costs Expanding
Other Tax Agency Issues
Tax Gap Continues
Electronic Filing Saves Time and Money
State Personnel Board (1880)
Planning Is Insufficient for Proposed Web Site
Department of Technology Services (1955)
Department Needs to Identify Savings
Department of Alcoholic Beverage Control (2100)
Paid Overtime Budget
Employment Development Department (7100)
Workforce Investment Act (WIA) Discretionary Funds
Proposal to Fund Veteran’s Services Lacks Justification
Department of Industrial Relations (7350)
Recommend Transferring Unused Fund Balance to General Fund
Department of Personnel Administration (8380)
Budget Requests for Personnel Management Are a Piecemeal Approach
No Need for Consultants to Study Personnel Reform Again
One Exempt Employee Versus 100,000 Employee Retirements: An Ineffective Plan
Planning Is Insufficient for Proposed Web Site
California Horse Racing Board (8550)
Board Should Explore Other Options to Keep Drug Test Costs Down
California Department of Food and Agriculture (8570)
Shorten Pilot Program for Vehicle Inspections
No New Funding Needed for Hydrogen Fuels Standards
Department of Finance (8860)
New Mandates Unit
Commission on State Mandates (8885)
Budget Proposal Understates Mandate Costs
Size of Mandate Backlog Uncertain
Higher Cost for Mandates in the Budget Year
New Mandates May Cost Less
Likely Current-Year Mandate Deficiency
Another Mounting Backlog of Claims
Conform Funding Level for AB 3632 Mandate With Policy Decisions
Provide More Information About Mandates in Budget
Recommendation
Review of Mandate Reconsiderations
Specific Mandate Issues
Workers’ Compensation Cancer Presumption
Background
Recommend Reconsidering Decisions
Newly Identified Mandate Review
Postmortem Examinations Mandate
Department of Veterans Affairs and Veterans’ Homes of California (8950-8966)
Salary Savings Exemption Not Justified
Local Government Financing (9210)
Booking Fees
Background
Governor’s Proposal
Health and Dental Benefits For Annuitants (9650)
Budget-Year Costs Not Yet Completely Determined
Employee Compensation (9800)
Raises for Five of 21 Bargaining Units, Judges, and Others
Pay Hikes Related to Plata Lawsuit Raise Concerns
Most Contracts Will Have Expired and Costs May Increase
Midyear Budget Reductions (Control Sections 3.45, 4.05, and 4.06)
Past Authority Has Not Achieved Intended Objectives
Delete Sections for More Honest Budgeting
Retirement Contributions (Control Section 3.60)
Retirement System’s New Policy Should Reduce Rate Volatility
Projected State Contribution Rates Down Slightly
No Pension Obligation Bonds Are Assumed in Budget
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