BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           400 (De Leon)
          
          Hearing Date:  07/06/2009           Amended: 06/15/2009
          Consultant:  Jacqueline Wong-HernandezPolicy Vote: G.O. 12-0
          _________________________________________________________________ 
          ____
          BILL SUMMARY: AB 400 requires the Financial Information System  
          for California (FISCal) to list general fund and federal fund  
          expenditures, as specified, of $5,000 or greater on a public  
          website, and to update the information annually. This bill would  
          make an appropriation by requiring the expenditure of  
          continuously appropriated funds for a new purpose.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
           Adds requirement to FISCal        Very minor and absorbable by  
          project       General                                             
                      Special*

          *All departments will participate in a FISCal share of cost,  
          which draws on general and special funds.
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: Upon its completion, FISCal will be an  
          information technology system used by all state departments to  
          manage information in the areas of budgeting, accounting,  
          procurement, cash management, financial management, financial  
          reporting, cost accounting, asset management, project  
          accounting, grant management and human resources management.  
          This project is still in the planning stages. No system has been  
          procured, and a vendor for the project has not yet been  
          selected. Project executives estimate that a contract will be  
          awarded to a vendor in fiscal year 2011-12.

          Project vision statements reflect goals for a transparency  
          component to FISCal. More specific planning documents indicate  
          that the system is intended to contain a functionality that  
          would allow the public to access financial information (not  
          otherwise confidential or prohibited) about the budgeting,  
          contracts, and procurement records of state departments. Because  










          FISCal is still in its planning stage, the system requirements  
          are not sufficiently specific as to stipulate a web-based  
          interface that allows the public to access expenditures over  
          $5,000, as this bill directs. The FISCal department and steering  
          committee, however, have outlined 3,000 draft requirements, and  
          this bill would add (or arguably clarify) one more.

          Project executives indicate that the requirements of this bill  
          are consistent with their plans for a web-enabled public access  
          feature. The information that the bill requires be displayed  
          would already exist in FISCal, and the system could easily be  
          built to filter the information for public access to this bill's  
          specifications. Because the project is in the planning stages,  
          and will be bid on by vendors as a single system created to  
          address all needs detailed by the steering committee, it is  
          impossible to determine the cost of one minor component to a  
          nearly $2 billion system. 

          Page 2
          AB 400 (De Leon) 

          When the FISCal concept and budget appropriation was approved,  
          it gave considerable flexibility to the steering committee and  
          project executives to create a very technical system that would  
          address broad needs of the state, with very limited legislative  
          oversight over the multitude of specific system requirements.  
          The legislature approved a vision, rather than requiring  
          approval for every aspect of the system interface. Considering  
          the scope of the FISCal system and project authority, it is  
          likely the steering committee could adopt the requirements of  
          this bill without specific legislative approval. Moreover,  
          project executives have indicated that this bill will not  
          restrict their current plans for the system. The requirements of  
          this bill are unlikely to incur any new, measurable costs to the  
          state.