BILL ANALYSIS Ó
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Isadore Hall, III
Chair
2015 - 2016 Regular
Bill No: SB 1251 Hearing Date: 4/12/2016
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|Author: |Moorlach |
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|Version: |3/31/2016 Amended |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Arthur Terzakis |
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SUBJECT: Publication of state financial obligations: Internet
Web site and ballot pamphlet
DIGEST: This bill establishes the California Financial
Transparency Act (CFTA) of 2016 and requires the Legislative
Analyst's Office (LAO) to create and maintain separate and
dedicated Internet Web sites that list specific state financial
obligations. This bill also requires the Secretary of State to
print the requisite material in the ballot pamphlet.
ANALYSIS:
Existing law:
1)Requires a local agency, if it maintains an Internet Web site
and is required to report specific financial information to
the Controller, to post, in a conspicuous location on its
Internet Web site, information on the annual compensation of
its elected officials, officers, and employees.
2)Authorizes a local agency to meet this requirement by posting
a link to the Controller's Government Compensation in
California Internet Web site in a conspicuous location on its
Internet Web site.
3)Requires the Secretary of State to prepare a ballot pamphlet
that contains specific information per the Political Reform
Act of 1974 and Elections Code Section 9084.
SB 1251 (Moorlach) Page 2 of ?
This bill:
1)Enacts the California Financial Transparency Act (CFTA) of
2016 and requires the Legislative Analyst to post all of the
following current total amounts on a dedicated Internet Web
page that is hyperlinked to the homepage site of the LAO:
a) State Revenues and State expenditures.
b) Unfunded state pension liability and unfunded state
retiree medical benefit liability.
c) Unfunded infrastructure needs and bond debt.
d) Unrestricted net position.
2)Requires the LAO, on or before January 1 and July 1 of each
year, to update the information on its Web site.
3)Requires the Secretary of State to include in a ballot
pamphlet a copy of all the information posted on the dedicated
Internet Web site pursuant to CFTA.
Background
Purpose of SB 1251. The author's office states that voters
should have easy and simplified access to important governmental
financial statements which often are complex and not digestible
to the layman. The author's office claims that this bill will
help remedy the fact that voters are often asked to make
important decisions on critical fiscal matters relating to the
state without having access to all the consequential
information. This bill is intended to fill the gap by
providing an easier source for residents to find information
specific to California's fiscal status. The author's office
claims that the items that are to be included on the ballot and
Web page are relatively easy to procure for the LAO, and
maintaining the dedicated Web page will not be a burden on their
staff.
FISCAL EFFECT: Appropriation: No Fiscal
Com.: Yes Local: No
SB 1251 (Moorlach) Page 3 of ?
SUPPORT:
Howard Jarvis Taxpayers Association
OPPOSITION:
American Federation of State, County and Municipal Employees
(AFSCME)
California School Employees Association
California State Council of the Service Employees International
Union (SEIU)
Professional Engineers in California Government
ARGUMENTS IN SUPPORT: Proponents state, "Providing voters
access to this information would give them the full picture of
just how much debt the state is carrying. Between bond debt and
unfunded pension liabilities, the wall of debt in California
remains tall, at least $500 billion by some accounts. Both
items, as well as unfunded transportation infrastructure needs,
would now be included in the pamphlet."
Additionally, proponents argue that "the added transparency that
this information brings will force voters to ask important
questions regarding whether they want yet more statewide tax
increases and General Obligation bond debt. Informed decisions
can only be made through accurate data. For years, state and
local governments failed to report the full scope of hundreds of
billions of dollars of unfunded pension and healthcare
liabilities. With new Governmental Accounting Standards Board
(CASB) regulations now shedding light on this issue, voters
deserve to see just how serious this problem is in as many
mediums as possible."
ARGUMENTS IN OPPOSITION: Opponents note that existing law
provides every voter with a voter guide that contains pertinent
information for voters regarding candidates for elective office
and various measures that are on the ballot. These guides
include the official title and summary of each measure and an
analysis by the nonpartisan LAO, which includes background
information, the proposed legislation, fiscal effects, as well
as sourced arguments for and against each measure.
Opponents claim that this bill "will alter the information
provided to voters and ignore the current nonpartisan analysis
already included in the voter guide that provides relevant
SB 1251 (Moorlach) Page 4 of ?
information to voters." Also, opponents contend that the
proposed additional information is "unnecessary and superfluous
and creates yet another potential impediment to any Californians
actually studying and then turning out to vote on the issues
that appear on the ballot." Additionally, opponents believe
this bill "moves down a dangerous path of allowing individuals
to influence the electorate by skewing the data provided to
voters."
DUAL REFERRAL: Senate Elections and Constitutional Amendments
Committee