BILL NUMBER:  SB 503
  VETOED	DATE: 09/29/2010




To the Members of the California State Senate:

I am returning Senate Bill 503 without my signature.

This bill would authorize additional auditor positions for auditing
certain bonds, with the additional costs to be funded out of those
bonds.  While I share the author's goal of ensuring that bond-funded
projects are implemented in an efficient and cost-effective manner,
this bill is unnecessary because Executive Order S-02-07 already
requires the auditing of all General Obligation bonds authorized by
the voters since November 2006, including the bonds specified in this
bill.  In addition, this bill would result in increased project
costs and duplicative efforts, and is unlikely to result in any
additional project savings about that which would otherwise be
discovered during the already-required auditing process.

Finally, the bill would set an expectation that the costs of this
program be fully covered by the savings identified as a result of
these audits.  That directive would put the State Controller's Office
in a position that is clearly in conflict with an auditor's role by
making it difficult for them to conclude that any project or program
was "meritorious" or "without fault," which could undermine the
objective nature and value of the audit process.

For these reasons, I am unable to sign this bill.

Sincerely,



Arnold Schwarzenegger