In 1996, when I was first elected to the State Assembly, California took in roughly $50 billion in General Fund revenues. Last year’s revenues were $102 billion. This far exceeds the rate of population growth and inflation. Also, from 1990 and 2008, state spending has ballooned 167 percent.

Clearly, spending is out of control.

State spending growth does not equate to better services or performance. Education spending accounts for almost half of the budget, yet California schools suffer high drop-out rates and perform abysmally across the board on all subjects.

State bureaucracy balloons, yet roads crumble and water supplies remain inadequate.

California’s current governance framework fails to meet 21st century needs.

The government needs an organizational structure that makes sense, works better, and costs less. A functional governmental framework is essential for: Accountability.

Increased flexibility and choice by using outcome-based performance and productivity measures.

Boards and Commissions:

Currently, there are approximately 300 boards, commissions, and task forces within the executive branch that perform a variety of duties. More than 70 years ago, licensing boards were placed in a single department in order to increase administrative efficiency but, today, that organizational structure is more confusing than ever and, as a result, consumer protection has languished.

Re-organization and re-alignment of state government is critical and necessary in order to make California an innovative, well-managed, and economically vibrant state.
Without proper oversight, board members have unchecked power to make too many important decisions, such as raising taxes and fees to keep their programs afloat.

Public workshops are a more valuable forum for providing public input than board hearings.
Eliminating unneeded boards and commissions removes duplication, promotes clearer policy making authority, strengthens consumer protection and improves customer service.

Some functions now performed by full time standing boards can be accomplished by part time advisory boards
Board members’ salaries should correspond to workload
Boards should not duplicate or overlap administrative responsibility for day-to-day operations;
Independent boards should be affiliated with a department structure; and
All boards should be subject to routine review and reauthorization.
Pension:

The two largest pension funds in California, the California Public Employees’ Retirement System (CalPERS) and the California State Teachers’ Retirement System (CalSTRS), have lost billions of dollars in value.

CalPERS is the largest pension fund in the US and the fourth largest in the world. At its height in October 2007 it had $260 billion in assets, which is comparable to the GDP of Poland, Indonesia or Denmark.

The pension fund is expected to report losses of 103 percent on its residential investments in the fiscal year that ended June 30.

The pension deficit will be placed on the backs of working people who had no control over the investment decisions made by government, let alone the recklessness and greed of the banking executives and Wall Street speculators who are responsible for the crisis.

We must infuse greater stability into our pension system. Locking in payments now without the ability to readjust when revenues fall is a recipe for disaster. The lessons learned from countless counties across the nation is that we must enact pension reform now, before it is too late.

Senate Republicans are proposing ideas that will shed greater light on Sacramento and hold lawmakers and state officials accountable for their actions.

Institute term limits on state bureaucracy
New spending in the Legislature must be preceded by identifying a revenue source
Increase public notice rules and provide greater internet transparency
Provide 24 hour donation disclosure to hold legislators accountable
Sunshine Law on all in-session legislative actions to combat waste and abuse. California does not benefit from Sacramento’s back-room deals
State employees should earn no more than the governor
If structured correctly, boards and commissions can do more with less to improve government decision-making and effectively serve the public.
The voters have spoken. Now is the time to ensure that the taxpayers get a better value for their money getting government that is more efficient and effective.