General Government

The Secretary of State (SOS) is the chief election officer of the State and is responsible for the administration and enforcement of election laws. The office is also responsible for the administration and enforcement of laws pertaining to filing documents associated with corporations and limited partnerships and for the preservation of documents and records having historical significance. The Budget proposes $78.4 million and 461 personnel years for the Secretary of State’s Office.

Proposition 34—Proposition 34, approved by California voters on November 7, 2000, imposed a series of campaign finance reporting and disclosure requirements. Among other things, Proposition 34 requires candidates to report whether or not they accept voluntary spending limits, which the Secretary of State will be required to report on the Internet. In addition, the initiative expanded the late contribution reporting requirements from 30 days to 90 days. Both of these changes will require modifications to the Secretary of State’s CAL-ACCESS System. The Budget proposes $581,000 in 2000-01 to implement these changes. Funding for the 2001-02 fiscal year is expected to be addressed in the spring, which will allow time for further clarification regarding the requirements of the initiative and analysis of the degree to which these requirements affect programs operated by the Secretary of State. Expenditure of funds will be subject to the Department of Information Technology and Department of Finance review and approval of appropriate project initiation documents.

Oral History Program—The Budget includes an additional $200,000 for the California State Government Oral History Program, which was established to enhance the historical understanding of legislative and executive processes and policy making in California by capturing the insights of those elected officials who have served significant roles within State government.

Business Automation Program Phase II—The Budget proposes $7.3 million Business Fees Fund for the second phase of the Business Automation Program. Phase I of this project, funded in the 2000 Budget Act, will address standardization of the Uniform Commercial Code. Phase II will automate other business processes with overall goals to provide accurate and reliable data, standardize and simplify the processing of business and security interest filings, reduce turnaround time, and provide services through the Internet. Expenditure of funds will be subject to the Department of Information Technology and Department of Finance review and approval of appropriate project initiation documents.

The principle objective of the Department of Insurance (DOI) is to protect insurance policy holders in California. To accomplish this objective, the DOI conducts examinations of insurance companies and producers to ensure that operations are consistent with the requirements of the Insurance Code. The Budget proposes $162.9 million and 1,300 personnel years for DOI. To provide the resources necessary for the recently appointed Insurance Commissioner, the Budget continues vacant positions that the Department expects to fill and includes a mechanism to provide the funding for these positions.

Automobile Fraud Investigation Equipment—The Budget includes $734,000 to purchase specialized equipment to support the investigation of automobile fraud activities, especially those involving fraud conspiracies or other organized criminal activity.

Employment Misrepresentation Task Force—The Budget includes $1.8 million and 11 personnel years to implement a task force to investigate employers who commit workers’ compensation premium fraud through activities such as employee misclassification, modification of employee experience level, or underreporting the number of employees to reduce premiums paid.

In time of major emergency or disaster in California, the Office of Emergency Services (OES) coordinates emergency response activities to save lives, reduce property loss, and expedite recovery. The Governor’s Budget proposes $716.3 million ($99 million General Fund, $611.1 million federal funds, and $6.2 million other funds) and 508 personnel years for OES.

Emergency Operations Equipment—The Budget includes $11.4 million for emergency response and operations equipment. Specifically, $7.1 million is to purchase 18 heavy rescue units outfitted with a complement of heavy rescue equipment that will be strategically located throughout the State; $2.1 million to purchase 12 water tender trucks specially designed to bring water for fire fighting purposes to areas which lack sufficient water system infrastructure; and $2.2 million to replace antiquated aluminum fire hose with large diameter fire hoses constructed with improved technology and modernized materials.

Tri-Net Seismic Safety Network—The Budget includes $6.8 million to operate and expand the Tri-Net Seismic Safety Network. This program, utilizing high tech equipment, provides seismic information following an earthquake in order to deploy emergency response personnel to those areas with the greatest seismic activity. Of this funding, $2.9 million will provide for the continued operation of the existing Southern California network, for which federal funds have terminated. The remaining $3.9 million provides the first-year funding of a five year program to expand the network into an integrated statewide earthquake monitoring system.

State Domestic Preparedness Equipment Program—The Budget includes $5.6 million Federal Trust Fund for 2000-01 and $9.1 million Federal Trust Fund for 2001-02 for local jurisdictions and State agencies to conduct risk and capability assessments for terrorism response planning and to purchase specified types of equipment for terrorism response.

Urban Search and Rescue Mobilization Exercises—The Budget includes $269,000 to conduct two urban search and rescue mobilization exercises annually. This would allow each of the eight urban search and rescue task forces to participate in a mobilization exercise once every four years.

The Franchise Tax Board administers the personal income tax, bank and corporation tax, and several non-tax collections and audit programs, which together contribute over 65 percent of General Fund revenue. The Governor’s Budget proposes total expenditures of $426.5 million and 5,321.1 personnel years to support the Board.

Child Support Enforcement—Chapter 479, Statutes of 1999, made the Franchise Tax Board responsible for the development of a single, statewide automated child support collection system. The system will track child support cases, collect child support payments from delinquent parents, and disseminate payments to the appropriate family. When in place, the system will protect California from the imposition of federal penalties for not having a federally-approved system for collecting and distributing child support payments. As the Franchise Tax Board moves from planning to the system development phase, additional resources will be required. These resources will be considered in the spring.

The 2000 Budget Act provided funding for the Board to implement Chapters 478 and 480, Statutes of 1999, which expanded its responsibility for the collection of overdue child support payments until the statewide automated system is in place. However, the federal Department of Health and Human Services denied the funding that was expected to supplement this State funding, because the proposed system was not an interim enhancement of an existing system. The State was urged to concentrate on the development of a statewide system for collecting overdue child support payments. The Board is preparing an alternative benefits-funded contract for implementing an automated system that will enable it to meet the requirements of Chapters 478 and 480. Despite the loss of federal financial participation, the State is proceeding with this project as the centralized management of child support arrearages is expected to result in increased child support collections of over $70 million annually when fully implemented, which is sufficient to cover the system development costs. Development of this alternative was not complete at the time the Budget was prepared; therefore additional information will be provided as it becomes available. Current Franchise Tax Board funding levels are expected to be adequate to implement this alternative in 2001-02; however, with the loss of federal funds, additional State resources will be required by the Department of Child Support Services for associated implementation costs, and by the Franchise Tax Board in future years to complete the project.

Tax Processing—In 2001-02, the Franchise Tax Board will save almost $600,000 in tax return processing costs and 20.5 personnel years because more taxpayers are filing their returns electronically. The number of electronically-filed returns was up more than 40 percent last year, and is expected to climb another 20 percent in 2000-01 and 17 percent in 2001-02.

The Budget also reflects $778,000 and 5.7 personnel years for legal branch workload. These additional resources will allow the Board to accelerate the development of regulatory guidance for taxpayers, as well as handle increased protest workload.

The Board’s budget includes additional funding of $4.21 million and 56.5 personnel years in 2000-01, and $3.784 million and 64.4 personnel years in 2001-02 to administer Chapter 114, Statutes of 2000 (AB 480), the refundable child care credit. The Board anticipates that 975,000 returns will claim this credit, of which 275,000 will be new returns. The large dollar value of the credit and its refundable nature require significant fraud prevention and detection measures be established by the Board.

The Board of Equalization (BOE) administers 21 tax programs, including the sales and use tax, motor vehicle fuel license tax, and the new natural gas surcharge mandated by Chapter 932, Statutes of 2000 (AB 1002). These programs generate nearly 32 percent of the General Fund revenue. The Governor’s Budget proposes total expenditures of $315.2 million and 3,830.6 personnel years for BOE.

The Budget includes $1,077,000 from the Motor Vehicle Fuel Account and 9.5 positions to implement Chapter 1053, Statutes of 2000 (AB 2114). Effective January 1, 2002, Chapter 1053 modifies administration of the tax on gasoline by moving imposition of the tax from the distributor level to the terminal rack level, the point where gasoline is loaded into ground transportation. This change conforms State law to federal law, creating more uniform and simplified reporting requirements for taxpayers. In addition, collection of the tax at the terminal rack level should improve tax enforcement and reduce tax evasion.

In addition, through the Return Processing Automation Project, the BOE is pursuing an automated system to replace the current labor intensive, sequential processing of returns. This technology will improve the current incoming mail, cashiering, data capture, workflow, storage and retrieval, and tracking functions. When fully implemented, the new system will increase productivity and improve service to taxpayers. The BOE plans to identify a vendor to implement the project through the alternative procurement process, and pay for services with a benefits-funded contract. In the spring of 2001, the Administration will consider funding for the start-up project costs that the BOE must incur to meet its share of responsibilities in implementing this project.

The Department of Consumer Affairs was established to protect consumer interests through licensing and regulation of specific professions, occupations, and businesses. The Department is directed by statute to facilitate a free-enterprise market economy by educating consumers, fostering competition, guarding against fraudulent practices, and promoting consumer representation throughout all levels of government. The Governor’s Budget proposes total expenditures of $374.5 million and 2,957 personnel years to support the operations of the Department’s various programs, boards, and bureaus.

Office of Privacy Protection—The Budget includes $1.4 million General Fund and seven personnel years to establish an Office of Privacy Protection, as provided by Chapter 984, Statutes of 2000, to serve as a clearinghouse for privacy related consumer complaints. The Office will implement a statewide education campaign, establish telephone and website resource and referral, and assist in the investigation of privacy related crimes.

Auto Body Fraud Inspection Pilot Program—The Budget provides $1.1 million and eight personnel years to establish a two-year pilot project, pursuant to Chapter 867, Statutes of 2000, to inspect insured vehicles that have undergone auto body repair to identify work that was not done according to the repair invoice. The Bureau of Automotive Repair will conduct annual inspections of vehicles and gather information to establish fraud against facilities determined to have performed fraudulent repairs.

The mission of the Department of Fair Employment and Housing is to protect the people of California from unlawful discrimination in employment, housing, and public accommodations, and from the perpetration of acts of hate violence. The Governor’s Budget proposes a total expenditure of $22.4 million and 288 personnel years for the Department.

One of the Department’s goals is to maximize the efficient use of state resources in the delivery of services to the public, with emphasis on the timely processing and resolution of discrimination complaints.

Education and Outreach—The Budget proposes $225,000 to provide education and outreach programs to small businesses, housing providers, and populations who have traditionally been underserved to heighten awareness of the rights and remedies available to them under California’s civil rights laws.

Restrictive Covenant—The Budget includes $151,000 and two personnel years to implement Chapter 291, Statutes of 2000, which requires the Department to assist the public in the identification of prohibited restrictive covenants in documents or deeds related to common interest developments.

The Department of General Services (DGS) is responsible for management review, control, and support of State agencies as assigned by the Governor and specified in statute. The Department provides support services to operating departments to achieve greater efficiency and economy than they can individually provide for themselves, and seeks to improve effectiveness and economy in the administration of State government. The Budget proposes $844.7 million and 4,013 personnel years for the Department.

Natural Gas Purchases and Utilities Rates—The Budget includes an additional $50 million Service Revolving Fund for DGS to purchase natural gas for its customers, and to provide sufficient expenditure authority to pay its own natural gas cost increases. Based on first quarter expenditures for natural gas, DGS estimates that annual gas expenditures for its direct gas purchasers will be $95.7 million, exceeding the baseline amount by $49.6 million. These higher costs are associated with a rise in the cost per therm, which has increased 74.8 percent during the first quarter of the 2000-01 fiscal year compared to the first quarter of fiscal year 1999-00.

The Budget also includes $50 million from various funds for allocation to State agencies to purchase natural gas directly from DGS as referenced above, to purchase natural gas from other suppliers, and for potential increases in electricity costs.

One Stop E-Business Center—The Budget includes $3 million General Fund to continue the State’s efforts in e-business and e-government. This funding will be used to continue studies and pilot projects initiated in the current fiscal year, such as On-line Professional Licensing, On-line Competitive Bid Processing, the expansion of e-procurement (an e-marketplace for small business), and Interactive Employer-Employee Job Posting and Recruitment. In addition, new projects related to customer relationship management, customer satisfaction, and the design and functionality of the e-business Center will be developed.

Enhanced Wireless Emergency Telephone Services—The Budget includes $31.6 million State Emergency Telephone Number Account to reimburse service providers for Public Safety Answering Point equipment and network costs associated with providing enhanced wireless service to wireless subscribers in California. This augmentation will provide the same emergency telephone services to wireless customers as those provided to landline customers, including Automatic Number Identification and Automatic Location Identification, but will not result in an increase in service rates for those customers.

The Department of Industrial Relations (DIR) function is to protect the workforce, improve working conditions, and advance opportunities for profitable employment. The Governor’s Budget proposes $267.8 million and 2,729 personnel years for DIR.

Workers’ Safety Training Grants—The Budget includes $2.5 million and three personnel years for the Division of Occupational Safety and Health (DOSH) to establish a workers’ safety training program. This program is designed to complement existing workplace consultations performed by DOSH, and issue grants to organizations that can provide statewide classroom and electronic training in employee safety and health to government agencies and workers of highly hazardous industries.

Education for Labor Law Compliance—The Budget provides $1.7 million and one personnel year to develop an educational component for employers to increase labor law compliance. This funding will cover the costs of developing an Internet site and web pages, and will provide employers consistent, precise, and accessible information about labor and workplace safety and health laws with the goal of increased labor law compliance throughout the state.

Administrative Hearings on Public Works—The Budget proposes $381,000 and three personnel years for the Division of Labor Standards Enforcement (DLSE) to implement the provisions of Chapter 954, Statutes of 2000, which requires the DLSE to conduct administrative hearings when withholding orders are issued for prevailing wage violations. Prior to this statute, a contractor could only contest a withholding order by bringing suit through court action.

Workers’ Compensation Information System (WCIS)— In 1993, Labor Code Section 138.6 mandated that the Division of Workers’ Compensation (DWC) implement a comprehensive information system designed to electronically collect standard information on California workers’ compensation claims from claims administrators. The WCIS is now operational and is receiving and processing First Reports of Injury transmitted via Electronic Data Interchange since September 1999. A Post Implementation Report is being completed on this project in order to evaluate its benefits and to reassess the potential for savings.

The Department of Food and Agriculture (DFA) is responsible for protecting and promoting California’s agriculture, providing leadership in the development of agricultural policy, and enforcing weights and measures standards in commerce. The DFA’s activities include prevention and eradication of harmful plant and animal pests and disease, marketing and export assistance to the agriculture industry, and assistance to county agricultural commissioners and local fairs. The Governor’s Budget proposes $251 million ($98.5 million General Fund and $152.5 million in other funds) and 1,940 personnel years for the Department.

Pierce’s Disease Control Program—The Budget includes $19.6 million ($8.9 million General Fund and $10.7 million other funds) and 34 personnel years to reduce the impact of Pierce’s Disease and the Glassy-winged Sharpshooter. Funding for this program consists of State funds and anticipates additional federal and industry funds. This program, which was implemented in the current year, conducts host shipment inspections, statewide surveys to determine the infestation status, and research to develop solutions and management approaches for dealing with this disease. The program also provides rapid response and treatment for infested areas, makes efforts to inform and educate the public about Pierce’s Disease and the Glassy-winged Sharpshooter, and is exploring biological control options to suppress the populations of the Glassy-winged Sharpshooter. Current funding levels, combined with anticipated federal and industry funds, will allow this integrated program to continue at an aggressive level.

Plant Pest Prevention Comprehensive Strategy—The Budget continues $12.4 million and 186 personnel years for the Plant Pest Prevention Comprehensive Strategy to reduce the growing threat to California from invasive pests. This program permanently establishes the Parcel Inspection Program and the Mediterranean Fruit Fly Preventative Release Program and related public outreach activities, including the maintenance of an Internet site.

Protecting Consumers of Meat and Poultry Products—The Budget includes $501,000 and four personnel years to investigate illegal processing and distribution of meat and poultry products.

Central Valley Assessment Study—The Budget includes $800,000 to consolidate information important for informed land use decisions in the Central Valley. These funds, combined with federal funds over a three-year period, will be used to assess Central Valley conditions and trends and build a comprehensive, user-friendly database so that the information can be readily accessed for policy and programmatic decision-making at the local, state, and national levels.

The Department of Veterans Affairs is responsible for providing services to California veterans and their dependents. The Department administers the Cal-Vet Farm and Home Purchase Program, assists veterans in obtaining State and federal benefits to which they are entitled, and operates veterans homes in Yountville, Barstow, and Chula Vista. The Governor’s Budget includes $337.6 million and 1,869 personnel years to support the Department’s various programs, and proposes several adjustments to improve patient care and quality of life at the Veterans Homes of California.

Barstow Veterans Home—The Administration is sponsoring legislation to provide $6.5 million General Fund for 2000-01 to offset an unanticipated reduction in federal funds and reimbursements from the Medi-Cal program. The flow of funds to the home has been temporarily interrupted because of concerns by the United States Department of Veterans Affairs and the Licensing and Certification Division of the State Department of Health Services regarding operation of the skilled nursing facility at the home.

The 2001-02 Budget for the operation of the Barstow home anticipates the full receipt of federal funds and reimbursements since current licensing issues are expected to be resolved prior to July 1, 2001. The Department of Veterans Affairs, with input from the Department of Health Services, is developing a plan to resolve the concerns noted above. The Administration intends to submit this plan to the Legislature by January 31, 2001.

Chula Vista Veterans Home—General Fund expenditures for the Chula Vista Veterans Home are estimated to be $1.9 million less than anticipated because the skilled nursing facility is not yet operational, and residents are being admitted at a lower rate than expected.

Quality Assurance and Staff Training—To ensure the quality of service and training at the Chula Vista Home, the Budget proposes $602,000 and four personnel years to expand the quality assurance function, and to improve and expand the employee training currently provided at the home.

Compensated Work Therapy Program—The Budget includes $264,000 to augment services at the Chula Vista Home with the development of a compensated work therapy program for residents. This program is designed to add fulfillment and purpose to the lives of resident veterans and to provide vocational rehabilitation training.

Homeless and Disabled Veterans Advocates—To augment services to homeless and disabled veterans, the Budget proposes $154,000 and two personnel years to provide a Homeless Veterans Advocate and a Disabled Veterans Business Enterprise Advocate at the Department. The Homeless Veterans Advocate will assist homeless veterans through the development of an integrated network of public and private providers of housing and other services for the homeless and will organize events to help veterans obtain these services. The Disabled Veterans Business Enterprise Advocate will be dedicated to monitoring, education, and outreach efforts to enable more disabled veteran business owners to participate in the Disabled Veterans Business Enterprise Program.

Homelike Environment—The Budget also includes $100,000 to create a more homelike environment at the Yountville Home through the redesign of interior and exterior common areas to incorporate gardens and animals, as well as the addition of individualized furnishings to residential rooms and common areas.

The Military Department is responsible for the command, leadership, and management of the California Army and Air National Guard, whose purpose is to provide military service support to California, as well as the nation. These services are provided through 118 armories, 10 air bases, and 3 army bases located throughout California. The Governor’s Budget proposes $97.8 million and 739 personnel years for the Department. The Department also receives an additional $440.3 million in federal funds that are not deposited in the state treasury.

Turning Point Academy—The Budget provides $10.6 million and 98 personnel years to continue the operation of the Turning Point Academy. Chapter 366, Statutes of 2000, provided $9.2 million to initiate the operation of the academy in the 2000-01 fiscal year. This program is designed to accommodate 160 cadets every six months and provides intensive academic curriculum, physical training, and behavioral and substance abuse counseling in a strict disciplinary environment.

Oakland Military Institute—The Budget also includes $1.3 million and 16 personnel years for the Oakland Military Institute. When fully implemented, this program will serve 162 seventh-grade students in a non-residential environment and operate as a charter school for grades 7 through 12, providing a college preparatory curriculum that emphasizes mathematics, science, literature, social studies, and foreign languages.

National Guard Youth Programs- Headquarters Staff—The Budget adds $353,000 and three personnel years to provide oversight, management, and control for the California National Guard Youth Programs at the Military Department headquarters office. These positions will provide support and direction for the numerous youth programs operated by the Military Department.

Maintenance and Repairs-Camp San Luis Obispo—The Budget includes $2.5 million to perform priority maintenance and repairs at Camp San Luis Obispo. This one-time appropriation provides funding to replace deteriorated and leaking roofs and dilapidated loading docks, assess the need for repairs of the sanitary system, and repair crumbling roadways.

Joint Forces Training Base-Los Alamitos—The Budget provides a one-time appropriation of $4.5 million for airfield maintenance and repair costs at the Joint Forces Training Base. This airfield is the only military airfield remaining in the greater Los Angeles/Orange County area, and serves as a staging area during emergencies and disasters.

The California Arts Council is responsible for promoting artistic awareness, participation, and expression in California. The Council promotes arts education and the development of the arts throughout the State. The Council provides local assistance grants to organizations and individuals and establishes projects of statewide significance in support of the broad cultural, educational, social, and economic goals of California. The Governor’s Budget proposes $74.6 million and 51 personnel years to carry out the Council’s programs.

Local Assistance Baseline Augmentation—The Budget includes $6.3 million and four personnel years to increase funding for various arts programs. Specifically, this funding will increase the Arts in Education Program by $3.0 million, the Organizational Support Program by $1.5 million, the Public Art Program by $500,000, and the Municipal Arts Program by $1.0 million.

Cultural Infrastructure Development Fund—The Budget includes $20.4 million and four personnel years to establish a fund for competitive grants to various museums, arts organizations, and special projects. Grant awards from this fund will be made pursuant to a review process to be developed by the Administration in consultation with the Legislature.

"Finding our Families, Finding Ourselves"—The Budget includes $3 million for the Simon Wiesenthal Museum of Tolerance project, "Finding Our Families, Finding Ourselves." This exhibit is designed to help students form early opinions of tolerance, and to encourage visitors to recognize the importance of their own family histories.

The California Gambling Control Commission was created by Chapter 867, Statutes of 1997 (Gambling Control Act). The five-member Commission is appointed by the Governor, subject to Senate confirmation, and is vested with jurisdiction over gambling establishments in the state and all persons or activities having to do with the operations of gambling establishments in the state.

The Governor’s Budget proposes $3.0 million and 20 personnel years in 2000-01 and $4.7 million and 43 personnel years in 2001-02 for operation of the Commission. Funding in both years is provided by the Gambling Control Fund and the Indian Gaming Special Distribution Fund.

Prior to the appointment of four Commissioners in fall 2000, the Department of Justice was primarily responsible for licensing all gambling operations and performing regulatory activities in California, including those authorized by Proposition 1A in March 2000. The newly-appointed Commission will be responsible for determining an equitable and mutually agreeable method of distributing revenues paid into the Indian Gaming Revenue Sharing Fund by tribal casinos to qualified nongaming tribes. The Commission will also act on licensing issues brought before it by the Department of Justice, and will be responsible for monitoring advertisements for California gambling facilities, among other activities.

The Budget includes resources for the Commission to operate field offices in San Diego, Los Angeles, and the San Francisco Bay Area, as well as a headquarters office in Sacramento. In addition, the Budget provides the Commission with staff to perform legal, administrative, legislative, public information, auditing, research, and licensing oversight activities.

The Administration has proposed urgency legislation to appropriate funds for the Commission to carry out its duties through the remainder of the 2000-01 year.

The Budget provides a one-time augmentation of $40 million General Fund to establish a touch screen voting pilot project in three California counties—one large, one medium, and one small—which will be selected to ensure appropriate geographic representation. The Office of Planning and Research will administer the pilot project, and local matching funds will be required on a dollar-for-dollar basis.