Legislative Analyst's Office Analysis of the 2001-02 Budget Bill

Military Department (8940)

The Military Department is responsible for the command and management of the California Army and Air National Guard. To support its operations, the department maintains 127 armories and 38 maintenance operations throughout the state. These facilities total about 2.5 million square feet of building space. About 70 percent of this space was built before 1960.

The department's capital outlay program for 2001-02 includes $2.6 million from the General Fund and $36,000 in federal funds. A disussion of this proposal and our recommendations follows.

Projects Recommended for Approval Contingent on Completion of Preliminary Plans

We recommend the Legislature approve $216,000 from the General Fund for working drawings for two projects at Camp San Luis Obispo contingent on receipt and review of preliminary plans and associated cost estimates.

The Governor's budget includes $216,000 from the General Fund to prepare working drawings for a new pistol qualification course ($98,000) and a modified record rifle range ($118,000) at Camp San Luis Obispo. The future state cost to construct these projects is $500,000 and $162,000, respectively. The future federal share in project costs is $2,264,000 and $3,062,000, respectively. The amounts included in the budget are consistent with the inflation adjusted future costs associated with the prior appropriations. However, the preliminary plan for these projects have not been completed. Consequently, we recommend the Legislature approve the requested amounts contingent on receipt and review of the preliminary plans and associated cost estimates during the budget process.

Facility Survey and Master Plan Phase II

We recommend the Legislature delete $545,000 from the General Fund for the second phase of the department's master plan because the initial phase has not been completed. (Delete $545,000 under Item 8940-301-0001 [2].)

The budget proposes $545,000 for the second phase of a statewide master planning effort for the department's armories and maintenance facilities. The purpose of this phase is to assess the department's facilities needs on a statewide basis. In the 1998-99 Budget Act, the Legislature appropriated $485,000 for the initial phase of this planning effort—a statewide survey to assess the condition of the department's facilities. The survey was to be completed by June 1999. Three years after the initial request, the first phase of the study still has not been completed. Consequently, we recommend the Legislature delete $545,000 requested for the second phase of this plan.

Annual Long-Term Capital Improvement Reports Not Submitted

We recommend the Legislature delete $893,000 from the General Fund and $36,000 of federal funds because (1) the department has not submitted a long-term capital improvement program plan and (2) study funds are not necessary because development of capital outlay proposals is part of the department's operations responsibility. (Delete $893,000 under Items 8940-301-0001 [1], [3], [6], and [7], and $36,000 under Item 8940-301-0001 [1].)

The budget includes requests totaling $893,000 from the General Fund and $36,000 from federal funds for various projects as detailed in Figure 1.

The Legislature adopted supplemental report language in 1999-00 directing the department to prepare and submit by January 1, 2000, a long-term capital improvement program detailing proposed five-year repair, modernization, replacement projects, and expenditures, and annually report on the progress in attaining the objectives of the plan. The goal of this plan was for the Legislature to have a better understanding of the department's long-term capital needs and the progress made annually toward meeting those needs. For the second year in a row, the department has not provided this information to the Legislature. Consequently, it is not clear how the department's funding requests relate to their overall facility program.

For example, a request for $468,000 for preliminary plans and working drawings is included in the budget to address the electrical distribution system at Los Alamitos Airfield. This project was not identified in the department's most recent capital outlay program. The Legislature has no information about the need for this or other projects.

The budget also includes $150,000 from the General Fund to study the domestic water supply system at Camp San Luis Obispo. The purpose of the study is to investigate the existing water supply and distribution system for the camp. The Legislature has no information regarding the relative priority for this project. The department has not provided any statistics detailing a problem, including the amount of water needed to service the camp, the available supply, any potential sources, or what water conservation measures may be in place. It is not clear why this study is needed or if there are any problems with the existing system. Furthermore, studies to determine capital outlay needs (like the $150,000 just discussed and $151,000 in other funding requested for studies) are part of the department's responsibility in developing a capital program. This function is included in the department's support budget and additional funds should not be provided under capital outlay.

For these reasons, we recommend the Legislature delete $893,000 from the General Fund and $36,000 of federal funds for the requests shown in Figure 1.

Military Projects Behind Schedule

We recommend the department report to the Legislature prior to budget hearings regarding the status of all currently authorized capital outlay projects with explanation of all schedule delays.

In the 1998-99 Budget Act, the Legislature authorized a total of $11.5 million from the General Fund for various improvement projects for the department. When this analysis was prepared, 12 of the projects totaling almost $10 million, were behind schedule by 1 to 15 months (see Figure 2). According to the Department of General Services, many of the projects have been delayed due to (1) a lack of federal funds and (2) problems encountered during construction. We recommend the Military Department report to the Legislature prior to budget hearings regarding the status of all state-funded construction projects, current project schedules, the availability of federal funds, and an explanation of any schedule delays.