Budget Reform
Our current budget process in the State of California is both outdated and outmoded. My experience balancing budgets in the corporate world as well as my 18 years balancing budgets on the San Ramon Unified School District Board, taught me that benchmarks, review and accountability are key to effective management of limited financial resources.
Join me in supporting reform that will reduce cost and improve outcomes.
Lawmaker: Combination Of Ignorance, Unsavory Deals To Blame
SACRAMENTO, Calif. - A lengthy investigation into school roofing contracts has unearthed massive waste on a scale some California lawmakers describe as "criminal," especially at a time when teachers face layoffs.
Legislators on the Assembly's accountability committee got an earful Wednesday from contractors who described, in essence, a bidding process for school roofing work as rigged.
"As a taxpayer through our organization, it's a real problem when we can't employ teachers because we're throwing money away on roofs," said Greg Malarkey, of Malarkey Roofing.
The California Highway Patrol officers' union and three other state labor groups have agreed to contract terms with Gov. Arnold Schwarzenegger that roll back pension benefits for new state hires and increase all employees' retirement contributions.
The deals would also protect the unions' members from the threat of minimum wage when lawmakers don't enact a state budget on time and eventually add a top step pay increase.
"We're not blind or deaf to the unique times in California. We want to get the necessary discussion of (pension) reform behind us," said Jon Hamm of the California Association of Highway Patrolmen.
Principal Co-Author Buchanan Says Placement Agent Activities Don’t Pass ‘the Smell Test’
SACRAMENTO—Legislation that limits the clout of placement agents at California’s public pension funds today passed the State Assembly with bi-partisan support.
Assembly Bill (AB) 1743 stops placement agents from receiving contingency fees and requires them to register as lobbyists before lobbying CalPERS and/or CalSTRS for investment business for clients.
“These transactions do not pass the smell test for ethical business conduct,” said Assemblymember Joan Buchanan (D-Alamo) who is a principal co-author of the measure. “The lack of transparency with the transactions of many placement agents undermines the fiscal integrity of our pension fund systems.”
California legislators are seeking stronger oversight and accountability in the state's management of billions of dollars in water bond funds.
The Joint Legislative Audit Committee on May 5 unanimously approved an audit requested to determine whether the Department of Water Resources (DWR) has "demonstrated an ability to manage the significant amount of bond funds entrusted to it by California’s voters," according to a news release from Senator Lois Wolk (D-Davis).
"Senator Wolk and Assemblymembers Alyson Huber (D-El Dorado Hills) and Joan Buchanan (D-Alamo) made the request late last month, acting on a recent report from the state’s bipartisan Legislative Analyst’s Office (LAO) that raised concerns about whether the department is spending bond funds as the legislature and voters intended," the release stated.
This year, the city of Roseville will spend about as much to fund its pension plan as it does on parks and recreation.
San Luis Obispo County will spend five times as much on pensions as it does prosecuting criminals.
And Stanislaus County's pension costs will be nearly double its $23.5 million general fund budget deficit.
The initial logic of increasing retirement benefits to retain quality employees has been turned on its head: Paying for those benefits is forcing local governments to lay off employees – and cut programs.
"The old joke is that General Motors is just a health insurance company that makes cars on the side," San Luis Obispo County Supervisor Adam Hill said during a pension presentation at a recent board meeting. "My concern is that the county government is becoming a pension provider that provides government services on the side."
The legislation, prompted by a spreading nationwide scandal over sometimes huge fees paid to 'placement agents,' barely overcomes opposition from lobbyists for Wall Street firms.
Reporting from Sacramento — A bill that would outlaw payments of sometimes huge commissions to the intermediaries that broker investments by California's two big public pension funds was approved by a key Assembly committee without a vote to spare Wednesday.
The measure, sponsored by the California Public Employees' Retirement System, the country's largest government pension fund, barely overcame opposition from lobbyists for Wall Street investment firms, led by the powerful private equity firm Blackstone Group.
Freshman assemblywoman disappointed in forced compromises
Earlier this week, legislative aides in Sacramento passed out toothbrushes to the members of the Senate and the Assembly in preparation for the budget battles to come. They obviously needed them as lawmakers stayed in session until early Thursday morning hammering out the final compromises to allow passage of the state's budget.Assemblywoman Joan Buchanan (D., Alamo), weary from the long and arduous budget process, said Thursday she was pleased that they were able to reach an agreement.
"I appreciate the efforts of the Democratic and Republican leaders to reach a bi-partisan solution to California's unprecedented budget crisis," she said. "The steps we took today have prevented the eighth largest economy in the world from going bankrupt."
Pro Tem Steinberg, Speaker Pérez Join Push for Non-Partisan Proposals
SACRAMENTO – Senate President Pro Tem Darrell Steinberg and Assembly Speaker John Pérez announced today that the Legislature’s proposal to overhaul the state Constitution will include California Forward’s non-partisan plan to reform the budget process and give communities new tools to solve local problems.
The legislative leaders, joined at a news conference by Senator Mark Desaulnier, Senator Denise Ducheny and Assemblymember Mike Feuer, announced plans to immediately begin consideration of a constitutional revision based on the non-profit organization’s proposals and the work of two legislative committees working on reform.
“This is what leadership looks like. In times like these, it’s not easy or sexy or fun. It’s hard work,” said California Forward Co-Chair Bob Hertzberg. “Right now, that means getting California moving again so California can lead again – and I applaud Speaker Pérez, Pro Tem Steinberg, Sens. Desaulnier and Ducheny and Assemblymember Feuer for taking on this challenge.”
SACRAMENTO – Today Assembly Speaker John A. Pérez (D-Los Angeles), Senate President pro Tem Darrell Steinberg (D-Sacramento), and representatives of California Forward announced a major package of reforms to improve government effectiveness in California, stabilize state finances, increase accountability and enhance public oversight of government operations.
For the past seven months, the Legislature has engaged in a bicameral conversation about reform through the hearings of the Senate and Assembly Select Committees on Improving State Government, chaired by Senator Mark DeSaulnier (D-Concord) and Assemblymember Mike Feuer (D-Los Angeles). Ideas discussed in the hearings were also reflected in proposals of outside groups and individuals. The reform package announced today resulted from melding the work done by the Senate and Assembly Select Committees on Improving State Government and good-government group California Forward.
The Legislature will amend the constitutional reforms proposed by California Forward into constitutional amendments in the Assembly and the Senate that will be vetted through the committee process in both houses. Additionally, the Legislature will undertake a series of institutional reforms to improve oversight, prioritize key issues and promote bipartisanship.
What a gal.
Assemblywoman Joan Buchanan, D-Alamo, is voluntarily cutting her pay 10 percent or nearly $12,000 a year.
A press release from her office says the newly elected lawmaker sent a letter to Controller John Chiang requesting the salary adjustment. State legislators earn $116,098 a year plus $170 in per diem for each day they are in session.
“Recognizing that we must lead by example, the Assembly has reduced its budget 10 percent and has directed the savings to the Employment Development Department (EDD) to support California’s families,” Buchanan said in a press release. “Further, I will direct the State Controller to reduce my salary 10 percent. I cannot, in good conscience, ask others to sacrifice if I am not willing to do the same.”
Read more for Buchanan’s full press release.
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