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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