BILL ANALYSIS �
SB 14
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Date of Hearing: August 24, 2011
ASSEMBLY COMMITTEE ON BUDGET
Bob Blumenfield, Chair
SB 14 (Wolk, DeSaulnier, and Huff) - As Amended: May 19, 2011
(As proposed to be amended)
SENATE VOTE : 38-0
SUBJECT : State Budget
SUMMARY : Creates a statewide performance-based budget process.
Specifically, this bill:
1)Requires the establishment of performance-based budgeting for all
state departments and agencies. Statewide the implementation
of performance-based budgeting would occur concurrently with
the new start of the new budget process that will be developed
as part of the Financial Information System for California
(Fi$Cal) accounting system project. As part of the Governor's
budget submission, each department would be required to
provide the following information in the budget:
a) The mission and goals of each agency;
b) The activities and programs of the agency;
c) Performance measures that reflect the desired outcomes
of the agency and a targeted performance level of the
following year;
d) Prior-year performance data; and,
e) A description of the impacts to current beneficiaries of
a program proposed for modification or elimination.
2)Requires the Department of Finance (Finance or DOF) to develop an
implementation plan, by August 1, 2012, that articulates how
the State will achieve full statewide implementation of
performance-based budgeting.
3)Implements the new performance-based budgeting requirements
subject to appropriation in the budget, but requires the DOF
to begin performance-based budgeting in the 2013-14 budget
process with programs and departments identified in the
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implementation plan.
EXISTING LAW : Article IV, Section 12 of California's
Constitution requires the Governor to submit a balanced budget
to the Legislature by January 10th of each year. Government Code
Section 13308 requires the submission of the budget trailer bill
language by February 1st of each year.
FISCAL EFFECT : Small absorbable costs for Finance to provide
the plan for implementation. Additional costs will depend upon
the extent to which Finance believes it can leverage existing
resources and the Fi$Cal project to develop performance-based
budgeting, and would be subject to appropriation in the budget.
COMMENTS : The bill establishes a statewide performance-based
budgeting process that would be rolled out over a five-year
period. Subject to appropriation in the budget, some
departments and programs would begin to be performance-based in
2013-14, with additional implementation detailed in a timeline
outlined by the DOF in a report to the Legislature. The Finance
plan will detail the path to full implementation across all
state departments by 2018-19, when the Fi$Cal accounting system
is implemented. Fi$Cal will integrate the state's accounting,
budgeting, cash management, and procurement operations into one
single system. It is anticipated that this new system will
result in changes to the mechanics and process that the
administration uses to develops the budget. By correlating the
implementation of performance-based budgeting with the
implementation of the new Fi$Cal budget component, the costs for
implementing the new performance-based budget process will be
reduced.
REGISTERED SUPPORT / OPPOSITION :
Support
California Forward (co-source)
AARP
American Association of University Women
American Council of Engineering Companies of California
American Federation of State, County and Municipal Employees
Bay Area Council
Business Council of San Joaquin County
Brocade Communications Systems, Inc.
California Alliance of Child and Family Services
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California Association of Bed & Breakfast Inns
California Chamber of Commerce
California Chapter of the American Fence Association
California Church IMPACT
California Construction and Industrial Materials Association
California Fence Contractors' Association
California Grocers Association
California Hotel & Lodging Association
California Independent Oil Makers Association
California Manufactures & technology Association
California Partnership for the San Joaquin Valley
California Retailers Association
California Senior Advocates League
California State Student Association
California Taxpayers Association
Consumer Specialty Products Association
Contra Costa Council
Engineering Contractors' Association
Flasher Barricade Association
Fresno Business Council
Greater Fresno Area Chamber of Commerce
Greenlining Institute
Half Moon Bay Coastside Chamber of Commerce
Herbalife International of America, Inc.
Huntington Beach Chamber of Commerce
Kern County Taxpayers Association
Los Angeles Area Chamber of Commerce
Marin Builders' Association
MoSys Inc.
Proofpoint Systems Inc.
San Francisco Chamber of Commerce
San Gabriel Valley Economic Partnership
San Mateo County Economic Development Association
Santa Clara and San Benito Counties Building and Construction
Trades Council
Santa Cruz County Medical Society
Saving California Communities
Service Employees International Union
State Building and Construction Trades Council of California
Silicon Valley Leadership Group
TechAmerica
USANA Health Sciences, Inc.
Valley Industry and Commerce Association
WELL Network
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Opposition
None on file.
Analysis Prepared by : Christian Griffith / BUDGET / (916)
319-2099