BILL ANALYSIS                                                                                                                                                                                                    



                                                                  ACR 178
                                                                  Page  1

          Date of Hearing:   August 12, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                  ACR 178 (Niello) - As Introduced:  June 28, 2010 

          Policy Committee:                              P.E.R. &  
          S.S.Vote:    8-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This ACR authorizes the payment of State Merit Awards approved  
          by the Department of Personnel Administration (DPA) to five  
          employees in various departments whose proposals resulted in the  
          reduction of state expenditures or improvement in state  
          operations.

           FISCAL EFFECT
           
          Authorizes the payment of $30,589 to five state employees  
          (General Fund and special funds).

           COMMENTS
           
           1)Background  . Existing law establishes the State Merit Award  
            Program, which provides cash and honorary awards to state  
            employees who propose ideas result in savings, efficiencies,  
            or safety improvements to a state program. Under the program,  
            which is administered by DPA, when a suggestion is implemented  
            and results in savings, the employee (or employees) may be  
            eligible to receive up to 10% of the savings captured in the  
            first year. Awards of up to $5,000 may be paid by departments,  
            and awards in excess of $5,000 must be approved by the  
            Legislature.

            According to DPA, the suggestions represented by this  
            resolution provided $507,063 in first year savings.  The state  
            employees specified in this resolution have already received  
            awards of $5,000 from their respective departments for their  
            suggestions. This resolution authorizes awards to these  
            individuals in excess of $5,000.








                                                                  ACR 178
                                                                  Page  2


          2)Rationale  .  According to the sponsor, DPA, the state merit  
            award program has proven to be an effective program for  
            taxpayers, and this resolution recognizes individuals whose  
            combined suggestions have resulted in a first year savings to  
            the state of $507,063. DPA also asserts that the funds do not  
            create new budgetary pressures, since they are paid from  
            within the agencies' budgets and financed through the savings  
            resulting from the implementation of the suggestions.

           Analysis Prepared by  :    Brad Williams / APPR. / (916) 319-2081