The 2017-18 Budget: Department of Justice

The 2017-18 Budget: Department of Justice Translate Our Website This Google ™ translation feature provided on the Legislative Analyst's Office (LAO) website is for informational purposes only. The LAO is unable to guarantee the accuracy of this translation and is therefore not liable for any inaccurate information resulting from the translation application tool. Choose your language: × Skip to main content Home --> Policy Areas Capital Outlay, Infrastructure Criminal Justice Economy and Taxes Education Environment and Natural Resources Health and Human Services Local Government State Budget Condition Transportation Other Government Areas Publications The Budget Propositions and Initiatives Staff Careers About Us Search In this web post, we provide an overview of the Department of Justice (DOJ) and the level of funding proposed for the department in the Governor s 2017-18 budget. We also assess and make recommendations on two specific DOJ budget proposals: (1) a one-time $5 million unallocated General Fund reduction and (2) a $45 million funding increase related to Proposition 56 revenues. LAO Contact Anita Lee See More Publications Like This Back to the Top --> Tweet January 31, 2017 The 2017-18 Budget Department of Justice Overview Department of Justice Has Various Responsibilities. Under the direction of the Attorney General, the California Department of Justice (DOJ) provides legal services to state and local entities, brings lawsuits to enforce public rights, and carries out various law enforcement activities. The DOJ also collects criminal justice statistics from local authorities; manages the statewide criminal history database; and conducts background checks required for employment, licensing, and other purposes. In addition, the department provides various services to local law enforcement agencies, including providing forensic services to local law enforcement agencies in jurisdictions without their own crime laboratories. Spending Proposed to Increase by $33 Million in 2017 18. The Governor s 2017 18 budget proposes $858 million to support DOJ. This is an increase of $33 million, or 4 percent, over the estimated current-year level of expenditures. As shown in Figure 1, roughly half of DOJ s budget supports its Division of Legal Services, while the remainder supports its Division of Law Enforcement and its California Justice Information Systems Division. Of the total budget proposed for DOJ in 2017 18, about one-fourth $215 million is from the General Fund. The General Fund amount is $6 million, or nearly 3 percent, below 2016 17 spending. This is primarily due to a proposed one-time unallocated reduction, which we discuss in greater detail below. Figure 1 Total Expenditures for the Department of Justice (Dollars in Millions) 2015-16 Actual 2016-17 Estimated 2017-18 Proposed Change From 2016-17 Amount Percent Legal services $397 $444 $448 $4 0.8% Law enforcement 182 203 233 30 14.8 California justice information services 160 178 177 -1 -0.5 Totals $739 $825 $858 $33 4.0% One-Time Unallocated General Fund Reduction LAO Bottom Line. We recommend that the Legislature withhold action on the Governor s proposed one-time $5 million unallocated reduction to DOJ, pending specific information from the administration and DOJ on how the reduction would be accommodated. Governor s Proposal The Governor s 2017 18 budget includes a one-time unallocated $5 million General Fund reduction to DOJ in order to achieve General Fund savings. The department would be allowed to decide how to accommodate the reduction. Impact of Proposed Reduction Is Unclear The proposed reduction does not appear to result from reduced workload or costs. As such, this one-time reduction could potentially impact DOJ operations. Absent a specific plan on how this reduction would be achieved, it is difficult for the Legislature to weigh the trade-offs of the proposed reduction, including how it could impact legislative priorities. For example, the reduction could have minimal impact on programs that are a legislative priority to the extent that DOJ can absorb the reduction through savings from routine staff vacancies or delaying one-time expenditures. Alternatively, DOJ could choose to reduce or eliminate activities that are a legislative priority. Without a specific plan from the department, the Legislature has no way to ensure that this would not occur. LAO Recommendation Withhold Action on Proposed Reduction. In view of the above, we recommend the Legislature withhold action on the Governor s proposed one-time $5 million unallocated reduction to DOJ, pending specific information from the administration and DOJ on how the reduction would be accommodated. Specifically, we recommend the Legislature require the administration and DOJ to report at budget hearings this spring on the specific actions it plans to take to achieve $5 million in General Fund savings in 2017 18. Based on this information, the Legislature would be able to weigh the proposed reduction against its other General Fund priorities, as well as assess whether the department s plan to address the reduction is aligned with its priorities. To the extent that the Legislature decides to reduce DOJ s budget, we recommend that the Legislature consider making targeted reductions rather than an unallocated reduction that would give the department full discretion to implement in order to ensure that legislative priorities are maintained. Proposition 56 LAO Bottom Line. We recommend the Legislature require DOJ to report by April 1 on how it plans to (1) use Proposition 56 funds for the enforcement of tobacco-related laws, (2) allocate Proposition 56 funds to local law enforcement, and (3) provide sufficient oversight to ensure that the funds are used in accordance to the requirements of the measure. We also recommend that the Legislature adopt budget trailer legislation requiring DOJ distribute Proposition 56 funds to local law enforcement through a competitive grant program, consistent with best practices. Background Proposition 56 Funding for DOJ. Proposition 56, which was approved by the voters in November 2016, increases the state excise tax on cigarettes and other tobacco products (including e-cigarettes). The measure requires that the revenues from the increased tax be used to support various specified purposes. Of these revenues, $36 million is to be distributed annually to DOJ: $6 million to enforce laws that regulate the sale and distribution of tobacco products and $30 million for the department to distribute to local law enforcement agencies for the support and hiring of peace officers for various activities, including investigations intended to reduce the illegal sale of tobacco products to minors. The measure specifies that this revenue cannot be used to supplant state or local funds currently used for these purposes. We note that the annual allocation to DOJ could potentially be adjusted if it is determined that there has been a reduction in revenues due to lower consumption of tobacco products due to the measure. DOJ Tobacco Litigation and Enforcement Section. DOJ currently has a Tobacco Litigation and Enforcement Section that administers and enforces numerous federal and state tobacco laws. For example, this section is responsible for overseeing compliance with the tobacco Master Settlement Agreement (MSA) an agreement reached in 1998 between four large tobacco companies and the Attorneys General of 46 states, including California. The MSA imposed various requirements upon the tobacco companies, such as making annual payments to offset a portion of state costs resulting from tobacco use and restricting advertising activities related to tobacco. Additionally, this section works with other government agencies and stakeholders to reduce tobacco sales to minors. The Tobacco Litigation and Enforcement Section is estimated to receive $3.2 million $2.9 million General Fund and $0.3 million special fund to support approximately ten authorized positions in 2016 17. Governor s Proposal The Governor s budget reflects a total of $45 million of Proposition 56 revenues being allocated to DOJ in 2017 18 for the enforcement activities required by the measure described above. This amount includes (1) $9 million in revenues from 2016 17 that were deposited after the enactment of Proposition 56 in November 2016 and (2) $36 million in revenues for 2017 18. Of the $45 million total, the budget provides $7.5 million to enforce tobacco-related laws and $37.5 million to allocate to local law enforcement. DOJ is currently in the process of determining how it will allocate these funds. Unknown How Proposition 56 Funds Will Be Spent Absent specific details on how DOJ plans to allocate the $45 million in Proposition 56 funds, it is difficult for the Legislature to ensure that the funds will be used in accordance with the measure s provisions and legislative priorities. It is unclear whether the department will use the $7.5 million for the enforcement of tobacco-related laws to expand upon the activities of the Tobacco Litigation and Enforcement Section. It is also unclear whether DOJ will require additional position authority to hire new employees to assist with the enforcement of tobacco-related laws. According to DOJ, it is currently in the process of developing a methodology for determining how the $37.5 million for local law enforcement will be allocated and administered. Until the department develops such a methodology, the Legislature cannot assess whether the funds will be distributed fairly, effectively, and for activities it prioritizes. It is also unclear how the department plans to ensure the monies provided to local law enforcement are used in accordance with the requirements of Proposition 56. LAO Recommendations Require DOJ to Report on Use of Proposition 56 Funds This Spring. We recommend the Legislature require DOJ to report by April 1 on how it plans to (1) use the $7.5 million for the enforcement of tobacco-related laws (including how such enforcement will coordinate with the Tobacco Litigation and Enforcement Section and whether the department will need additional position authority), (2) allocate the $45 million to local law enforcement, and (3) provide sufficient oversight to ensure that the funds are used in accordance to the requirements of Proposition 56. Based on this information, the Legislature would be able to determine the extent to which it needs to provide statutory guidance to the department. At a minimum, we recommend that the Legislature adopt budget trailer legislation requiring DOJ distribute the monies to local law enforcement through a competitive grant program, consistent with best practices. Such best practices include developing (1) clear criteria for evaluating and comparing applications for funding and (2) specific performance or outcome reporting requirements for recipients that can be used to ensure accountability. Subscribe | California State Legislature | Online Voter Registration | Privacy Policy | Accessibility Legislative Analyst's Office | The California Legislature's Nonpartisan Fiscal and Policy Advisor 925 L Street, Suite 1000 Sacramento, CA 95814 | (916) 445-4656