LAO 2007-08 Budget Analysis: General Government Issue-By-Issue TOC
Analysis of the 2007-08 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
Implementation of the Housing Bond
Background
Major Provisions of Proposition 1C
Governor’s Proposal
Issues for Legislative Consideration
Conclusion
Tax Agency Information and Data Exchange
Background
Report Findings
The Issue of a Single Taxpayer Identification Number
LAO Recommendation
Departmental Issues
Governor’s Office (0500)
Autopilot Spending Unnecessary
Office of the Chief Information Officer (0502)
IT Governance Changes
Current IT Governance Structure
Proposed IT Governance Structure
Some Merit, but Proposal Raises Concerns
Recommend Alternative Structure
Office of Emergency Services (0690)
Bond Funding for Security Programs
Port Security Proposal Ignores Availability of Bond Funds
Bond Programs Need Framework
Other Spending Proposals
Open-Ended Request Lacks Specificity
Consulting Costs Unnecessary
Board of Equalization (0860)
Position Request Not Justified
Revenue Estimate From Enforcement Work Scored Too Low
Electronic Filing Should Generate Savings
Tax Agency Information and Data Exchange
Secretary of State (0890)
Continued HAVA Implementation
Background
Audit Repayments
HAVA Spending
Progress Report on Source Code Review
Begin Ramping Down Administration Costs
Department of Consumer Affairs (1110-1111)
Reform of the Bureau of Private Postsecondary and Vocational Education
Franchise Tax Board (1730)
Narrowing the Tax Gap
Background
Governor’s 2007-08 Proposal
Recommend Reallocation of Tax Gap Efforts
E-Services Save Time and Money
Customer Service Level Deficiency Is Seasonal
Delete Augmentation of Legal Support for Abusive Tax Shelters
Tax Agency Information and Data Exchange
Department of General Services (1760)
Awaiting Report on the California Highway Patrol (CHP) Enhanced Radio System
California State Teachers’ Retirement System (1920)
System’s Funded Status Is About Average for Comparable Pension Systems
State’s Loss of Lawsuit Would Require Payment of Over $650 Million
Recommend Rejecting Plan to Guarantee Teacher Benefit
Department of Corporations (2180)
State Corporations Fund: Legislative Oversight Needed
Housing and Community Development (2240)
Designate Lead Department for New Program
Specify Funding Amount for Parks
Employment Development Department (7100)
Budget Proposes Reduction in Job Services Program
WIA Discretionary Funds
Department of Finance (8860)
Financial Information System for California (FI$Cal)
Background
Key Components of Proposal
Key Considerations
Scope, Schedule, and Cost
Role of Control Agencies
Weighing Potential Benefits and Tremendous Costs
Commission on State Mandates (8885)
No Funds to Pay 2007-08 Mandate Bills
Inconsistency Between Budget Funding and Government Code
No Proposal Regarding Three New Mandates
Mandate Process reform
Status of Major Mandates
Military Department (8940)
Tuition Assistance Program Duplicates Purpose of Existing Program
Department of Veterans Affairs and Veterans’ Homes of California (8950-8967)
Equipment Request Includes the Kitchen Sink
Reduce Overly Aggressive Hiring Schedule
Baseline Adjustment Faulty
Health and Dental Benefits For Annuitants (9650)
Administration’s Estimates Appear Too Optimistic
Valuation of Retiree Health Unfunded Liabilities Should Be Released This Year
Approve Plan to Use Medicare Employer Funds For Retiree Health Costs
Employee Compensation (9800)
Overview
Additional Costs as Prison Pay Surges
A Realistic Budget Plan Requires Decisions About Correctional Officer Pay
Arbitration Decision Raises Officer Pay Much More Than Expected
What Happens if There Is No CCPOA Agreement Before July 1?
Prison Health Care Cases Driving Pay Upward
Other Issues
Lower Inflation Rate May Reduce Costs in Governor’s Budget
Legislature Should Not Put Contingency Funds in Item 9800
Retirement Contributions (Control Section 3.60)
Projected State Contribution Rates Down, Except for Peace Officers and Firefighters
Doubtful That $525 Million Will Be Realized From Pension Bonds
Midyear Budget Reductions (Control Sections 4.04 and 4.05)
Delete Sections for More Honest Budgeting
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