Wednesday, June 3, 2009

Conference Committee Actions on State Government Reorganization

Day 8 of the Conference Committee brought the end of the public comment period and the beginning of our taking concrete actions to address California’s budget challenges. Today’s actions focused on the reorganization of state government.

Today’s agenda had six items. These items and the actions taken by the Conference Committee were as follows.

1. Adopt the Governor's proposed Control Section 13.25 to allow DOF to make necessary budget adjustments to reflect reorganizations and consolidations, with the intent of achieving $50 million in savings.
a. Adopt the Control Section and score the savings.
b. The Legislature has already allowed the Governor's IT Reorganization Plan to go into effect, but recognizing the savings from that plan have not been incorporated in the budget, the Committee will score savings associated with that plan as well.

**CONFERENCE ACTION: Passed 10-0.

2. Restructure the Integrated Waste Management Board:
a. Eliminate the Department of Conservation, and the Department of Toxics Control, and consolidate their functions into the Integrated Waste Management Board.
b. Restructure the Integrated Waste Management Board as the Integrated Waste Management and Recycling Board.
c. Reduce the Board's membership, make the Board part time, and reduce salaries to be in line with other part-time boards.

**CONFERENCE ACTION: Refer to policy committee, passed 10-0.

3. Restructure the Unemployment Insurance Appeals Board
a. Restructure the Unemployment Insurance Appeals Board to make it a part time board, streamline functioning, and reduce board member salaries to be in line with other part-time boards.

**CONFERENCE ACTION: Refer to policy committee, passed 10-0.

4. Request Policy Committee's review, in addition to the Integrated Waste Management Board and the Unemployment Insurance Appeals Board, all full-time salaried boards and consider making them part-time. These include:
a. Agricultural Labor Relations Board
b. Air Resource Control Board
c. Energy Resources Conservation and Development Commission
d. Fair Political Practice Commission (chair is full-time only)
e. Gambling Control Commission
f. Occupational Safety & Health Appeals Board
g. Board of Parole Hearings
h. Public Employment Relations Board
i. Public Utilities Commission
j. Water Resources Control Board
k. Workers’ Compensation Appeals Board

**CONFERENCE ACTION: Refer to policy committee, passed 10-0.

5. Eliminate Agency Level of State Government
a. Eliminate state agencies, including the State and Consumer Services Agency, Business, Transportation and Housing Agency, Health and Human Services Agency, Resources Agency, Environmental Protection Agency, and the Labor and Workforce Agency.
i. Move the Secretary and any other vital positions to the Governor's office and/or other existing state departments.
ii. Have LAO report back to the Conference Committee and appropriate policy committee's on what programs and functions (and associated positions) should be maintained, and what entity can best perform those functions, as well as which duplicative positions should be eliminated.
b. Office of the Secretary of Education
i. Eliminate the Office of the Secretary of Education and move the Secretary position to the Governor's office.
c. Office of Planning and Research
i. Eliminate the Governor's Office of Planning and Research (OPR)
ii. Move the Director of the Office of Planning and Research to the Governor's Office.
iii. Have LAO report back to the Conference Committee and appropriate policy committee's on what programs and functions (and any associated positions) should be maintained, and what entity can best perform those functions.

**CONFERENCE ACTION: Passed 10-0, with a request for input from the Legislative Analyst’s Office on implementation details.

6. Refer the remaining proposals made by the Governor and LAO to the appropriate Policy Committee's for review and request that they report back to the Conference Committee on any proposals that appear feasible and appropriate.

**CONFERENCE ACTION: Passed 10-0.