August 6, 2004
| TO: | CLA Members/ Systems/ Network Contacts |
| FROM: | Mike Dillon, Lobbyist Christina Dillon, Lobbyist |
| RE: | NEWS FROM THE CAPITOL |
I. GOVERNOR SEEKS TO STREAMLINE GOVERNMENT THROUGH CALIFORNIA PERFORMANCE REVIEW
During Governor Schwarzenegger's campaign, he vowed to eliminate "waste, fraud, and abuse" from the government bureaucracy if elected to office. And, making good on that promise, several months ago he appointed a noted Texan, Billy Hamilton, to head up his effort. Hamilton, who designed and led the Texas Performance Review, saved the state of Texas $4 billion, and a combined savings of $16 billion for six additional performance reviews, through massive overhaul and elimination of state "waste." Hoping to build upon similar success in California, Governor Schwarzenegger created the California Performance Review, stating, "We cannot afford waste and fraud in any department or agency. This unprecedented action will mean a total review of government; its performance, its practices, and its costs." A massive group of 275 business leaders, state agency and department representatives, and even legislative committee consultants, had been tapped to participate in the project, with one participant telling us that his group alone offered more than 500 recommendations, and "threw everything up on the wall to see what would stick." The report was due to the Governor by June 30th, but was held back so as to not encroach upon the already heated Budget negotiations.
The much-anticipated report was finally released on Tuesday of this week, and is not exactly "light reading," topping out at over 2100 pages. The
two co-Executive Directors presented the report to the Governor on Tuesday, and in their summary stated, "This report - compiled in response to your challenge to change and reform California - contains more than 1,000 recommendations. If all of these recommendations are implemented, they have the potential to save more than $32 billion over the next five years." The report notes seven "elements essential to fixing California state government: 1) How we serve the people of California, 2) How we manage our people, 3) How we cut costs and save taxpayer dollars, 4) How we make our government more accountable, 5) How we manage our business operations, 6) How we use the power of technology, and 7) How we organize our business to realize our goals."
While some of the proposals are innovative and may meet with limited resistance, other proposals are more controversial in nature, such as eliminating 117 boards and commissions, including the State Public Library Construction and Renovation bond Board, a proposal to improve state and local performance measurements, reforms in health and welfare and the Resources Agency, and the adoption of a multi-state lottery game. Since the document is quite voluminous, we have highlighted just a few issues that may impact libraries:
1) Public Library Construction and Renovation Board: The CPR examined the function and responsibilities for 339 boards and commissions in California. The CPR report states, "Some of these boards are highly paid, earning salaries of more than $100,000 a year for only a few meetings. In fact, the 17 boards and commissions whose members are the highest paid cost the state more than $9 million in board member salaries alone. While many boards and commissions are composed of volunteer members, they often have permanent staffs, pay rent, or create other costs for the state." The recommendation for the elimination of the library bond board is: "Eliminate this Board and transfer responsibilities for financing the building of libraries to the new Infrastructure Authority within the new California Infrastructure Department." 2) The Infrastructure Department: A new Infrastructure Department would be created to establish an "integrated infrastructure policy" for the state and begin to "centrally manage and coordinate" various projects. A Board of Directors would be appointed to serve as the Infrastructure Authority, serving 6 year terms, and would be charged with adopting "a long range infrastructure policy and coordinate infrastructure projects based on biennial fund estimates." Moreover, "to ensure that infrastructure development decisions are based on the best available information and address the state's highest priorities, an integrated statewide infrastructure plan should be developed as envisioned by AB 1473 (Hertzberg) and AB 857 (Wiggins). This plan should include providing an assessment of the comparative value of diverse and competing capital outlay projects among the various programs based on statewide priority setting criteria." Thus, as we interpret this proposal, libraries would be competing with roads, massive water projects, and school construction for available bond dollars. In fact, the Library Construction and Renovation Board would now fall under the specific authority of the "Housing, Building, and Construction Division" of the new Infrastructure Department. The Library Board would be collapsed into this division along with the Department of Housing and Community Development, Department of General Services, State Building Standards Commission, State Public Works Board, State Lands Commission, State Allocation Board..you get our point regarding the competition for dollars. 3) State Digital Records Vanishing: The CPR report states, "Public access to California state government information erodes as thousands of digital documents vanish each year. As a result, the state is losing important historical documents. The State Library must identify and implement processes to collect and protect state government's digital records." The official recommendation of the CPR is as follows: "The Governor should issue an Executive Order requiring all state agencies to alert the State Library of publication of digital documents, websites or other products that may be candidates for permanent public access through the State Library." The report continues, "As part of the Executive Order, the State Library should be required to immediately implement an electronic submission process to help state agencies alert the library to vital digital publications, bulletins, documents, and other key public records, until the state implements a permanent solution." The State Library would be expected to perform this task using "existing resources." 4) Improve Local Government Finance by Increasing Predictability of Revenues: This proposal calls for the Governor to work with the Legislature to "identify permanent sources of revenue for local governments that are not subject to redirection to the state." 5) Improve State and Local Performance Measurements: "State and local governments lack meaningful measures to gauge performance and measure efficient use of government resources to achieve desired outcomes. The Administration should work with local governments to establish outcomes-based performance measures and provide administrative flexibility to local governments that meet or exceed agreed performance standards."
Now that the CPR report has been officially released, a "Blue Ribbon Panel" will commence hearings around the state, with the first hearing set to address the recommendations in the Resources Agency and related areas. We attended a luncheon yesterday, featuring the Governor's Secretary for Legislation, who encouraged us to have our clients attend these hearings and testify as "next year's Budget will be built around the CPR." (Information on hearings and CPR details can be found at www.cpr.ca.gov.) After the conclusion of the statewide hearings, recommendations from the public and others will be submitted to the Little Hoover Commission for consideration. A representative of the Little Hoover Commission told us that they will have approximately two months to review and act on the CPR recommendations, offering their own subsequent report.
It is important to note that not only does this report have a long way to go in terms of its review and subsequent final recommendations, but the CPR has been met with early resistance from Democratic leaders. Assembly Speaker Fabian Nunez, for example, stated, "As we review the operations of government, we need to be careful that, in the name of efficiency, we don't shortchange the public's ability to influence its own government. We need to be careful that we don't put too much control in the hands of the few at the expense of the many. Furthermore, we need to reject any changes that would serve to weaken our state's landmark environmental and consumer protections, undermine the progress we've made in education or harm the aged and disabled, who depend on us for their health and safety." Additionally, Senate President pro Tem John Burton, during a press conference held earlier this week, stated of the CPR, "We'll just reject it and then we'll sit down and work with the Governor on the things that make sense." Any reorganization plan submitted to the legislature has to be totally voted up, or totally voted down, and can't be amended. Thus, the Governor will clearly have to work with the legislature as the recommendations from here on out are crafted.
II. LIBRARY BOND BILL - YOUR HELP IS NEEDED FOR FINAL PUSH
This week, Senator Alpert's SB 1161, the $1 billion library construction and renovation bond bill, sponsored by CLA, was sent to the Assembly Appropriation Committee's so-called "suspense file." The "suspense file," you may recall, is a system by which the Appropriations Committee holds all bills with a dollar amount of $150,000 or greater and prioritizes them based on priority and ability to fund the issue/project. Next Wednesday, the Assembly Appropriations Committee will consider hundreds of bills on its "suspense file" and will vote to either hold the bill indefinitely, or send the bill to the Assembly Floor for consideration. CLA would like your help over the next few days to make one more final push relative to the bond bill. Please take a moment today and call or write the Chair and the Vice Chair of the Appropriations Committee and urge their strong support for SB 1161. Please express to them that the 2000 bond, while helpful, only provided $350 million for library construction, and the current need is well over $3.1 billion in immediate need for funding. If you are an applicant in Cycle Three, awaiting word regarding your application in the Fall, please call your individual Assemblymember as well, and ask them to speak to the Chair and Vice Chair on your behalf. As you well know, unfortunately 75 percent of all applicants awaiting funding in Cycle Three will be turned away due to lack of available funds.
The Honorable Judy Chu
Assembly Appropriations Chair
State Capitol
Sacramento, CA. 95814
Phone: (916) 319-2049
The Honorable Sharon Runner
Assembly Appropriations Vice Chair
State Capitol
Sacramento, CA. 95814
Phone: (916) 319-2036
In addition, please take a moment today to write the Governor and encourage his support for SB 1161-Alpert. The Governor's Department of Finance has taken an "oppose" position on the library bond bill, indicating that they are opposed because they do not think it is prudent for the state to incur any further bonded indebtedness at this time. Senator Alpert has asked us to join her in a meeting on Monday with the Department of Finance to encourage them to look more favorably on the bond. Based on this opposition, however, the Governor will need to receive hundreds of letters in support, in order to make our case.
During the luncheon yesterday with the Governor's Secretary for Legislation, he has asked us to send all letters to the Governor, in support of bills, to a new, specific address (see the example below regarding directing the mail to Pam Oto. Pam is a chief deputy for legislation in the Governor's Office.). After 9/11, certain procedures relative to the mail system have been put in place, and they are requesting that we utilize this new system for the end of session windfall of letters. Thank you for your assistance.
The Honorable Arnold Schwarzenegger
Governor, State of California
State Capitol
Sacramento, CA. 95814
ATTN: PAM OTO, OFFICE OF GOVERNOR SCHWARZENEGGER
Dear Governor Schwarzenegger:
* Also please include a cc: on your letter to Paul Navarro, Legislative Deputy for Education, Office of Governor Schwarzenegger