Summary of LAO Findings and Recommendations on the 2011-12 Budget

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	Program	Budget Issue	LAO Finding Or Recommendation	Last Updated
Go Back	Department of Insurance	Request for $8 million in special fund expenditure authority to fund 54 new positions	Revised LAO Recommendation (June 2011). Recommend that the Legislature approve 39 of the 54 requested positions and reduce the Governor’s request by 15 positions. Our analysis indicates that some of the proposed positions are unjustified at this time.	2-18-11

Detailed Narrative
Please click here for a link to our analysis and recommendations regarding the Department of Insurance's request for 54 additional staff. Revised LAO Recommendation On May 23, 2011 we received a rebuttal from the Department of Insurance to our February 18, 2011 recommendation. Upon receipt of this additional information we conducted another analysis of the budget request. Specifically, we found that the additional information provided by the department showed that there would be a greater amount of workload in the Corporate Affairs Bureau (CAB) due to its interaction with the Financial Analysis Division's - Trouble Companies Unit. The relationship between the two areas within the department was unclear to us in our first analysis of the data CDI provided. As a result, our analysis finds that the two requested positions for CAB are justified. Therefore, our revised recommendation is to approve 39 of the 54 requested positions and reduce the Governor's request by 15 positions.

Detailed Narrative

Please click here for a link to our analysis and recommendations regarding the Department of Insurance's request for 54 additional staff.

Revised LAO Recommendation

On May 23, 2011 we received a rebuttal from the Department of Insurance to our February 18, 2011 recommendation. Upon receipt of this additional information we conducted another analysis of the budget request. Specifically, we found that the additional information provided by the department showed that there would be a greater amount of workload in the Corporate Affairs Bureau (CAB) due to its interaction with the Financial Analysis Division's - Trouble Companies Unit. The relationship between the two areas within the department was unclear to us in our first analysis of the data CDI provided. As a result, our analysis finds that the two requested positions for CAB are justified. Therefore, our revised recommendation is to approve 39 of the 54 requested positions and reduce the Governor's request by 15 positions.