SUPPLEMENTAL REPORT
OF THE 1997 BUDGET ACT
1997-98
FISCAL YEAR
PART I

CONTAINING STATEMENTS OF INTENT OR REQUESTS FOR STUDIES
ADOPTED BY THE LEGISLATURE



Compiled by the Legislative Analyst's Office
August 29, 1997

Table of Contents

Legislative, Judicial, Executive

State and Consumer Services

Business, Transportation, and Housing

Trade and Commerce Agency

Resources

Health and Social Services

Youth and Adult Correctional

Education

General Government

Capital Outlay


Legislative, Judicial, Executive

Item 0250-001-0001--Judiciary

1. Training to Eliminate Racial, Ethnic, and Gender Bias. It is the intent of the Legislature in authorizing additional staffing and funding for judicial education programs, that the Judicial Council develop and implement a plan to provide racial, ethnic, and gender bias, and harassment training for judges, commissioners, and referees, and that the council report to the Legislature by March 1, 1998, on the implementation of the plan.

Item 0450-101-0932--Trial Court Funding

1. Performance Measures. It is the intent of the Legislature that the Judicial Council report to the Joint Legislative Budget Committee and the Legislature's fiscal committees, by January 1, 1998, on the development and implementation of trial court performance measures that assess specific outputs, can be quantitatively measured, and provide cross-court comparisons of specific organizational output, including trial court efficiency efforts.

2. Budget Practices in the Trial Courts. Upon realignment, it is the intent of the Legislature that the Judicial Council shall implement a new method for budgeting personnel services. The council shall budget personnel services costs based on the actual salary levels of court employees, that accounts for salary savings, and that budgets all new positions at the bottom step. In addition, the Judicial Council shall eliminate the current baseline restoration process. The council shall advise the Joint Legislative Budget Committee and the Legislature's fiscal committees by November 1, 1997, on how it has incorporated the new methods into the budgeting process for the trial courts.

Item 0505-001-0001--Department of Information Technology

1. Notifying Legislature About Major Information Technology Projects. The Department of Information Technology (DOIT) shall adopt a policy requiring that the Legislature receive notification of any feasibility study report approved under delegated authority, where the estimated project cost is $1 million or more, and requiring further that the Legislature receive a copy of any special project report issued relating to any project about which it has been notified.

2. Assessment of Various Information Technology Projects. The DOIT shall provide the policy and fiscal committees of the Legislature, no later than December 15, 1997, an assessment and status report including the identification of problems, proposed solutions, cost estimates and time lines of the following activities and what direction, if any, the DOIT has given the responsible agencies:

a. The various information technology projects in the Health and Welfare Agency affected by welfare reform.

b. Efforts of the Department of Motor Vehicles to replace its major computer applications and field office computing equipment.

c. Statewide automated child support system.

d. Efforts of the Department of Transportation to redesign and replace its major computer and telecommunications applications.

e. Efforts of the Department of Toxic Substances Control to correct the deficiencies of the Hazardous Waste Manifest System.

f. Department of Pesticide Control Data Base for Enforcement Actions.

g. Department of Corrections' Correctional Management Information System (CMIS).

h. Statewide efforts to modify computer systems to accommodate the Year 2000 change.

3. Year 2000 Status Reports. The DOIT shall provide the Legislature, by July 15, 1997, and quarterly thereafter, commencing with October 15, 1997, a report as to the status of the state's Year 2000 computer application conversion effort. The report, to be submitted to the fiscal committees in each house and the Joint Legislative Budget Committee, shall indicate the state's progress and level of compliance with the department's California 2000 Program Guide, and specifically identify any program which the department believes is at risk in terms of completing necessary conversion in a timely manner. For those programs determined to be at risk, the DOIT shall identify the factors which create the risk and what steps are being taken to mitigate the risk. The DOIT shall also include in each report an updated estimate of the costs to accomplish the Year 2000 conversion, as determined through consultation with the Department of Finance.

4. Quarterly Reports on Training and Certification of Project Managers. The DOIT shall report quarterly, beginning September 1, 1997, to the policy and fiscal committees of the Legislature on the progress that is bing made to train and certify project managers.

Item 0520-001-0044--Secretary for Business, Transportation and Housing

1. Intercity Rail Program. Beginning in 1998-99, the Secretary for Business, Transportation and Housing shall submit, as part of its annual budget request for intercity rail services funding, a report which sets forth performance standards to measure the usage, cost-efficiency, and quality of the intercity rail services that are administered by regional boards and the Department of Transportation (Caltrans). The report shall also describe the progress that the regional boards and Caltrans have made in meeting such standards.

Item 0540-001-0001--Secretary for Resources

1. Proposition 204 Expenditures. The Secretary for Resources and the State Water Resources Control Board shall submit a report by January 1, 1998 to the chairs of the budget and appropriate policy committees of both houses of the Legislature with detailed answers to the following questions regarding all expenditures from Proposition 204 since the date of its enactment:

a. What projects by subaccount were selected, and what was the amount appropriated per project?

b. Who sponsored or applied for the project, and what was their recommendation?

c. How does each project contribute to the objectives, goals, and requirements of Proposition 204?

The report shall also include answers to the following questions specific to expenditures from the Bay Delta Agreement Subaccount and the Central Valley Project Improvement Subaccount:

a. How does the project contribute to the health of the Bay-Delta ecosystem in the short-term?

b. How is the project consistent with the CalFED long-term plan (ERPP), and how does the project contribute to improvement of the Bay-Delta ecosystem in the long-term?

c. What is the federal contribution and any local or nonprofit contributions to the project?

d. What is the method for evaluating each project or programmatic investment for both short-term and long-term success?

It is the intent of the Legislature that beginning in 1998-99, any proposed expenditures from the Delta Recreation Subaccount and the Bay-Delta Ecosystem Restoration Account shall also be placed in the budget bill with no scheduling of individual projects.

2. Long-Term Financial Plan. The Secretary of the Resources Agency shall provide a report to the fiscal committees of the Legislature on or before November 1, 1997 that contains the Resource Agency's evaluation of the expenditure needs and a long-term financial plan for resource programs.

Item 0555-001-0044--Secretary for Environmental Protection

1. Permissible Loans of Employees. An employee from a department or board within the California Environmental Protection Agency (Cal-EPA) may be loaned or temporarily assigned to work for or at the agency only if such temporary assignment or loan fully complies with the rules governing the temporary assignment or loan of employees between agencies which are prescribed by the State Personnel Board (SPB) pursuant to Section 19050.8 of the Government Code, and are currently found in Sections 426 and 442 of Title 2, California Code of Regulations.

2. Quarterly Report on Loaned Employees. The agency shall submit, within 30 days from the end of each 1997-98 fiscal quarter, to the Chair of the Joint Legislative Budget Committee (JLBC) and to the chairs of the Senate and Assembly fiscal subcommittees responsible for reviewing the budget of the agency, on the number of employees temporarily assigned or loaned in the previous three months to work for or at the agency from departments or boards within the agency. The reports shall contain the following information:

3. Quarterly Report on Employees Working for Agency's Interdepartmental Initiatives. The agency shall submit, within 30 days from the end of each 1997-98 fiscal quarter, to the Chair of the JLBC and to the chairs of the Senate and Assembly fiscal subcommittees responsible for reviewing the budget of the agency, on the number of employees from departments or boards within the agency that, while technically not employees "loaned" to the agency, are working for initiatives which have been established by the agency, either administratively or pursuant to legislation, and involve the coordination and oversight by the agency of employees from two or more constituent departments or boards. Such initiatives include, among others, the California Environmental Technology Partnership and the permit assistance centers. The report shall include the following information:

4. Public Records Act Requests. The Secretary for Environmental Protection shall report to the Legislature by March 15, 1998 on all of the following:

5. Cost of Environmental Mitigation. It is the intent of the Legislature that the agency report at budget hearings annually on the costs of environmental mitigation incurred in the course of accomplishing its statutory mission. The report should include the costs of mitigation as a percentage of total project costs and it should identify all fund sources allocated to mitigation costs. Mitigation costs should include items or actions required by federal, state, or local law or regulation. This includes, but is not limited to, studies, surveys, analyses, acquisition of land to provide replacement habitat, costs to complete Environmental Impact Reports or Assessments, preparation of plans, site preparation, and acquisition of habitat inventory such as elderberry bushes or other vegetation required by the mitigation project. The report should include the costs associated with alteration of a project to avoid mitigation. The report should also include mitigation cost reimbursements paid or received from other state departments or federal, local, or private agencies.

6. Status of Unified Environmental Statute Commission Report. On or before November 1, 1997, the agency shall prepare and submit to the Governor and the Legislature an implementation plan for the recommendations made by the Unified Environmental Statute Commission in its report issued in January 1997. The plan shall describe actions the agency, boards, departments, and offices have taken or are proposing to take to do all of the following:

7. Enforcement Actions. By March 1, 1998, the agency shall report on both of the following:

8. Headquarters Consolidation. On or before November 1, 1997, the agency shall report to the Legislature on the status of consolidation of the boards, offices, and departments under Cal-EPA into one single location. The report shall describe efforts the agency has taken, and it proposing to take, to consolidate into a single location activities which include, but are not limited to, administrative, permitting, legislative, legal, scientific, enforcement, press, and public liaison activities.

9. Report on Implementation of Strategic Plans. On or before February 1, 1998, in conjunction with the budget submitted to the Legislature by the Governor, the agency shall prepare and submit a strategic implementation plan for environmental and public health protection which consists of all of the following:

10. Multi-Media Activities: California Environmental Policy Council Status Report. On or before March 1, 1998, the agency shall report to the policy and fiscal committees of the Legislature on the activities taken by the California Environmental Policy Council.

Item 0690-001-0001--Office of Emergency Services

1. Disaster Expenditures. In the 1998-99 Governor's budget for the Office of Emergency Services (OES), the Department of Finance shall display expenditures for local assistance for each declared disaster for each of the three fiscal years included in the budget document.

2. Local Disaster Relief Expenditure Plan. The OES shall, within 90 days of the enactment of the 1997-98 Budget Act, provide the Legislature the office's plan for expending the amounts appropriated for payment of local disaster relief claims. The plan shall identify the specific projects for which claims are anticipated to be paid in 1997-98, and for each project listed, the estimated total amount of state funds to be paid for the project, and the amount anticipated to be expended in 1997-98. The office shall report quarterly to the Legislature on its progress toward fulfilling its expenditure plan, updating the plan as necessary so as to reflect with each quarterly report a current expenditure plan, and explaining significant changes reflected in the updated plan. The original plan and quarterly reports shall be provided to the chairs of the fiscal committees in each house of the Legislature, and the Chair of the Joint Legislative Budget Committee (JLBC).

3. Review Placement of Law Enforcement Branch Responsibilities. The Legislative Analyst shall review the responsibilities of the Law Enforcement Branch of the OES and report to the fiscal subcommittees in each house, and the JLBC, by January 1, 1998, as to whether these responsibilities are best performed by the OES or whether they can be performed as effectively, or better, through transferral to another state agency.

4. Cost of Environmental Mitigation. It is the intent of the Legislature that the department report at budget hearings annually on the costs of environmental mitigation incurred in the course of accomplishing its statutory mission. The report should include the costs of mitigation as a percentage of total project costs and it should identify all fund sources allocated to mitigation costs. Mitigation costs should include items or actions required by federal, state, or local law or regulation. This includes, but is not limited to, studies, surveys, analyses, acquisition of land to provide replacement habitat, costs to complete Environmental Impact Reports or Assessments, preparation of plans, site preparation, and acquisition of habitat inventory such as elderberry bushes or other vegetation required by the mitigation project. The report should include the costs associated with alteration of a project to avoid mitigation. The report should also include mitigation cost reimbursements paid or received from other state departments or federal, local, or private agencies.

5. Fire and Rescue Program. The FIRESCOPE board of directors shall review the operations of the OES Fire and Rescue Branch, the management and scope of the Fire and Rescue Mutual Aid System, and the management of the OES Fire Engine Program, and report to the Legislature by January 1, 1998 with recommendations on how best to streamline these programs. In its review, the FIRESCOPE board of directors shall consider a partial or complete consolidation of the OES Fire and Rescue Program with the California Department of Forestry and Fire Protection.

Item 0820-001-0001--Department of Justice

1. Outside Counsel Augmentation. The Department of Justice (DOJ) shall report on March 15, 1998, to the Chair of the Joint Legislative Budget Committee (JLBC) and the chairs of the fiscal committees of each house that consider budget appropriations, on the amount of funds expended and the number of positions filled in 1997-98, according to the most recent data available, of the $7,700,000 and 75 positions authorized in the 1997-98 Budget Act for the purpose of decreasing the use of outside counsel by state agencies. The report shall also include an estimate of total expenditures and the projected total number of positions filled of the $7,700,000 and 75 position augmentation for 1997-98.

2. Outside Counsel. It is the intent of the Legislature that the augmentation provided in this item for the Civil Law, Criminal Law, and Public Rights Divisions be used to reduce the use of outside counsel by state agencies. By March 15, 1998, the DOJ shall report to the JLBC and the fiscal committee in each house of the Legislature, identifying for the 1996-97 fiscal year and the first six months of the 1997-98 fiscal year (a) the amount of money expended by all state agencies for outside counsel and (b) the amount of money expended for outside counsel that resulted from a lack of resources in the DOJ. All state agencies shall cooperate with the DOJ with regard to the collection and reporting of data relating to use of outside counsel.

3. Report on Environmental Crimes. On or before January 1, 1998, the department shall submit to the JLBC and the fiscal committees of the Legislature, a report that includes the following information concerning the enforcement of environmental protection laws: (a) the types, numbers, and dispositions of civil and criminal actions referred to the department since January 1, 1996 from environmental protection agencies, including but not limited to any state and regional water board, state and local solid waste enforcement agency, state and regional air quality agency, state and local pesticide regulatory agency, state and local toxics agency, and the Department of Fish and Game; and (b) the type and number of such actions initiated by the department on its own accord since January 1, 1996.

Item 0845-001-0217--Department of Insurance

1. Implementation of State Auditor Recommendations. The Department of Insurance shall report to the Legislature on the actions taken to implement the recommendations contained in the Bureau of State Audits report issued March 1997 at the times of the follow-up reviews with the bureau. In those instances where no action is taken the department shall indicate the reasons for taking no action.

2. Conform to State Rules, Regulations, and Procedures. The department of Insurance shall conform with all rules, regulations, and procedures for developing and implementing the state budget which apply to other entities of state government.

Item 0860-001-0001--Board of Equalization

1. Audit Program Report. The Board of Equalization shall provide the Legislature a report by November 1, 1997, on its audit program. The report shall, at a minimum, identify by fiscal year since 1992-93 (a) authorized, filled, and vacant auditor positions; (b) the classification of all authorized, filled, and vacant auditor positions; (c) the number of supervisory auditor positions; (d) the approved and filled program assignment of all authorized auditor positions; (e) the revenue identified and collected through the audit activities of the filled auditor positions by types of audit; and (f) the total costs--direct and indirect--of identifying and collecting these revenues through audit.

Item 0890-001-0228--Secretary of State

1. Document Imaging System Procurement. The Secretary of State shall, as part of the Secretary of State's 1998-99 budget request, be prepared to identify system needs, define the scope of the procurement, and specify the procurement method to be used for its proposed document imaging system for its business filings division.


State and Consumer Services

Item 1111-001-0069--Department of Consumer Affairs--Bureau of Barbering and Cosmetology

1. Fund Balance. The Department of Consumer Affairs shall provide a report to the chair of the fiscal committee in each house and the Chair of the Joint Legislative Budget Committee by December 1, 1998 detailing a plan to reduce the balance in the Barbering and Cosmetology Fund to a three-month operating reserve.

Item 1120-001-0704--Board of Accountancy

1. Fund Balance. The Board of Accountancy shall provide a report to the chair of the fiscal committee in each house and the Chair of the Joint Legislative Budget Committee by December 1, 1997 detailing a plan to reduce the board's fund balance to a three-month operating reserve.

Item 1260-001-0741--Board of Dental Examiners

1. Fund Balance. The Board of Dental Examiners shall provide a report to the chair of the fiscal committee in each house and the Chair of the Joint Legislative Budget Committee by December 1, 1997 detailing a plan to address the potential deficit of the board's fund.

Item 1270-001-0380--Committee on Dental Auxiliaries

1. Fund Balance. The Committee on Dental Auxiliaries shall provide a report to the chair of the fiscal committee in each house and the Chair of the Joint Legislative Budget Committee by December 1, 1997 detailing a plan to reduce the board's fund balance to a three-month operating reserve by June 30, 1998.

Item 1340-001-0205--Board of Registration for Geologists and Geophysicists

1. Fund Balance. The Board of Geologists and Geophysicists shall provide a report to the chair of the fiscal committee in each house and the Chair of the Joint Legislative Budget Committee by December 1, 1997 detailing a plan to reduce the board's fund balance to a six-month operating reserve.

Item 1500-001-0770--Board of Registration for Engineers and Land Surveyors

1. Fund Balance. The Board of Registration for Engineers and Land Surveyors shall provide a report to the chair of the fiscal committee in each house and the Chair of the Joint Legislative Budget Committee by December 1, 1997 detailing a plan to reduce the board's fund balance to a three-month operating reserve by June 30, 1999. The report shall also incorporate board recommendations of how to delete regulation of subdivisions from current board duties.

Item 1730-001-0001--Franchise Tax Board

1. Audit Program Report. The Franchise Tax Board shall provide the Legislature a report by November 1, 1997, on its audit program. The report shall, at a minimum, identify by fiscal year since 1992-93 (a) authorized, filled, and vacant auditor positions; (b) the classification of all authorized, filled, and vacant auditor positions; (c) the number of supervisory auditor positions; (d) the approved and filled program assignment of all authorized auditor positions; (e) the revenue identified and collected through the audit activities of the filled auditor positions by types of audit; and (f) the total costs--direct and indirect--of identifying and collecting these revenues through audit.

Item 1760-001-0666--Department of General Services

1. Surplus Property Warehouse Operations. The Department of General Services shall, by December 1, 1997, provide the Joint Legislative Budget Committee and the Legislature's fiscal committees with a plan to phase out its surplus property warehouse operations.

Item 1880-001-0001--State Personnel Board

1. Career Executive Assignment Position Conversion. The State Personnel Board shall not convert any position to a Career Executive Assignment (CEA) unless the position is vacant. The board shall report on all new CEA positions to the Chair of the Joint Legislative Budget Committee on or before January 1, 1998 and on or before June 30, 1998.

2. Limited Examination and Appointment Program. The State Personnel Board shall submit a report to the Chair of the Joint Legislative Budget Committee and the chairs of the fiscal committees in each house, not later than January 1, 1998, concerning efforts to expand employment opportunities for persons with disabilities in state government. In preparing this report, the Executive Officer shall establish and consult with a task force comprised of designees from Disabled in State Service, Protection and Advocacy, and other agencies and organizations working with and/or representing persons with disabilities.

The report shall include, but not be limited to, information concerning the current representation of persons with disabilities by agency and job classification, the extent to which state agencies have established new goals and timetables for hiring persons with disabilities, the extent to which the Limited Examination and Appointment Program (LEAP) assists agencies in meeting their goals, the recommendations of the task force for strengthening and adequately funding the LEAP program, and its recommendations on other effective approaches to increasing employment of persons with disabilities in state government.


Business, Transportation, and Housing

Item 2660-001-0042--Department of Transportation

1. Capital Outlay Support, Workload Estimating.

2. Cost of Environmental Mitigation. It is the intent of the Legislature that the department report at budget hearings annually on the costs of environmental mitigation incurred in the course of accomplishing its statutory mission. The report should include the costs of mitigation as a percentage of total project costs and it should identify all fund sources allocated to mitigation costs. Mitigation costs should include items or actions required by federal, state, or local law or regulation. This includes, but is not limited to, studies, surveys, analyses, acquisition of land to provide replacement habitat, costs to complete Environmental Impact Reports or Assessments, preparation of plans, site preparation, and acquisition of habitat inventory such as elderberry bushes or other vegetation required by the mitigation project. The report should include the costs associated with alteration of a project to avoid mitigation. The report should also include mitigation cost reimbursements paid or received from other state departments or federal, local, or private agencies.

Item 2660-001-0046--Department of Transportation

1. Capitol Corridor Extension. The Legislature hereby directs the Department of Transportation (Caltrans) to work jointly with the Transportation Agency of Monterey County (TAMC) to assist in the development of a business plan, operating plan, and capital plan for the purpose of bringing about intercity rail passenger service to Salinas/Monterey as an extension of the Capitol Corridor intercity rail service between Colfax and San Jose. This work is critical as it will provide TAMC with information necessary for the purpose of preparing a Proposition 116 funding application and will also prepare TAMC for a 1998-99 budget request for operating funds. Work by TAMC and Caltrans should be completed by December 31, 1997 to meet next year's funding cycles.

In the event that an intercity transfer agreement is executed pursuant to Chapter 263 (Statutes of 1996) which would transfer rail service to the joint powers board, Caltrans shall work with TAMC to provide technical support in facilitating discussions with the Capitol Corridor Joint Powers Board to extend the Capitol Corridor intercity rail service to Monterey.

2. Intercity Rail Program Business Plan. Caltrans shall submit annually on January 10 as part of its budget request to the Legislature and to the Secretary for Business, Transportation and Housing, a draft business plan for each intercity rail corridor which Caltrans administers. A final business plan shall be submitted by Caltrans to the Legislature and to the Secretary for Business, Transportation and Housing by April 1 of each year. Both the draft and final plans shall contain all of the business plan requirements set forth by Chapter 263, Statutes of 1996.

Item 2720-001-0044--California Highway Patrol

1. Motor Vehicle Account. The California Highway Patrol (CHP) shall submit a report to the Joint Legislative Budget Committee by January 1, 1998 which details the specific actions being taken by CHP in 1996-97 to produce $7.5 million in savings in the Motor Vehicle Account (MVA). The report shall also describe whether and how CHP's service levels are affected by such actions. In addition, the report shall describe other steps the CHP will take in 1997-98 and beyond to produce efficiencies and savings to the MVA.

2. Mobile Digital Computer. The CHP should make every reasonable effort to equip each of its patrol cars in service with a mobile digital computer by June 30, 1999.

Item 2740-001-0044--Department of Motor Vehicles

1. Motor Vehicle Account. The Department of Motor Vehicles (DMV) shall submit a report to the Joint Legislative Budget Committee by January 1, 1998 which details the specific actions being taken by DMV in 1996-97 to produce $7.5 million in savings in the Motor Vehicle Account (MVA). The report shall also describe whether and how DMV's service levels are affected by such actions, and describe other steps DMV will take in 1997-98 and beyond to produce efficiencies and savings to the MVA.

In addition, the report shall describe the costs incurred by DMV to process and issue commercial and noncommercial driver licenses (including originals, renewals, and reissuances), and vehicle registrations (including transfers of title), and list the fees that are charged to the public for such items.

2. Vehicle Registration Evasion Report. The DMV shall report to the Legislature by January 1, 1998 on a plan to combat evasion of the vehicle registration process.

3. Report on AB 650 Implementation. The DMV shall report to the Legislature by January 1, 1998 on implementation of AB 650 (Chapter 1126, Statutes of 1996). The report shall analyze the effect of AB 650 on vehicle registration compliance and on state and local revenues, and shall detail the department's implementation costs, implementation problems encountered by the department, and remedial actions taken or planned by the department.

Item 2780-001-0683--Stephen P. Teale Data Center

1. Review of Legal Expenses. The Bureau of State Audits (BSA) shall review expenditures for legal services made by the Stephen P. Teale Data Center for the fiscal years beginning with 1995-96 in order to determine (a) the causes for these expenditures, (b) the results of litigation which necessitated the expenditures, (c) specific actions taken by the data center to reduce the annual amount expended for legal services, and (d) whether the legal services provided by private sector law firms could have been provided by the Department of Justice. The BSA shall report its findings and recommendations to the Joint Legislative Budget Committee and the fiscal committees in each house not later than December 31, 1997. The report shall address the steps the data center should take to reduce its exposure to litigation.


Continue to 1997 Supplemental Report, Part II

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