The Economy & Efficiency Report 2013-14

Report #224, October 2014 The Economy & Efficiency Report 2013-14 The Little Hoover Commission’s Biennial Review of California State Government Operations Little Hoover Commission Dedicated to Promoting Economy and Efficiency in California State Government “Democracy itself is a process of change, and satisfaction and complacency are enemies of good government.” Governor Edmund G. “Pat” Brown, addressing the inaugural meeting of the Little Hoover Commission on April 24, 1962, in San Francisco, California the economy & efficiency report 2013-14 The Economy & Efficiency Report Letter From The Chair I am pleased to present you this 2014 edition of the Little Hoover Commission’s biennial Economy and Efficiency Report. The Commission has issued these biennial reviews of state government operations for more than a half century, conducting Capitol oversight through decades of prosperity, challenge and that constant of California, change. We are proud to be part of California’s story. From our founding in 1962 we have served the people of California, seven governors and countless numbers of Capitol lawmakers. The faces and names of Commissioners may change, but our bipartisan brand of citizen inquiry and reform, which is unique in the nation, continues to endure. We invite you here to get to know us. This biennial report explains who we are and how we work. Inside you will learn how we help members of the Capitol community – providing briefings, writing support letters for legislation and taking requests for research studies. It also explains our study process, recaps our work during the 2013 and 2014 legislative session and provides an overview of Commission accomplishments in spurring government economy and efficiency. We also outline 10 top California governing challenges previously identified by the Commission which continue to require action and solutions. While there is a perception that the Capitol environment can be a maelstrom of competing interests and partisan politics, the Commission is known for its deliberative and inclusive approach. Commissioners appointed by the Governor and Legislature for their varied career experiences and civic stature take the time necessary to explore in depth, convene the leading experts throughout California and the nation and recommend potential ways forward. Whether conducting oversight of yesterday’s solutions, or looking ahead to tomorrow’s challenges, the Commission works best when it works with the best of Californians. The late California Assemblymember Milton Marks, who sponsored legislation that envisioned the Commission, said at its inaugural meeting on April 24, 1962, “The cause of good government, or the cause of economy and efficiency, is really not a partisan issue. We may differ at times on certain philosophical matters, but I don’t think there is much difference of opinion as to the desire to economize in government and get greater efficiency in government.” That spirit has animated the Commission ever since. The Little Hoover Commission came of age when national leaders consistently praised California state government as one of the nation’s most professional and best-run public institutions. The Commission continues to keep that foremost in mind through all its deliberations. On behalf of my fellow Commissioners, I invite you to explore our work, to review our accomplishments over the years and consider the challenges still to be resolved together on behalf of all Californians. Pedro Nava Chair, Little Hoover Commission Little Hoover Commission | Report #224 1 2013-14 the economy & efficiency report Contents 3 About The Commission Organization’s function, role and responsibilities 5 Why “Little Hoover”? A brief history of the Commission’s origin and name 6 Study Process The Commission’s process for selecting research topics, conducting hearings, issuing reports and providing government oversight 8 A Recap of Commission Work in 2013-14 Reports and recommendations issued during the last two-year session 10 California’s Top 10 Opportunities For Reform A selection of recommendations ripe for additional review 12 Commission Work Improves Government Executive Director explains Commission’s success in shaping government 14 Meet The Commissioners A list of current and former Commissioners and staff 16 What Stakeholders Say About the Commission Comments on the Commission’s value from hearing participants Reflections From The Vice Chair After nine years with the Little Hoover Commission I am honored to reflect on a unique institution within California government. We are a bipartisan gathering of citizens committed to improving how state government works. The women and men are business owners, journalists, lawyers, investors and policy experts. Some have been intimately engaged in state politics and government. Others bring invaluable experience in the wider economy and society. The Commission creates a space for robust airing of important policy issues. But Loren Kaye since Commissioners aren’t running for office, the debates are free from self-promotion Vice Chair and point-taking. We don’t always agree, but we always hear each other out. What Little Hoover Commission we have in common is a commitment to drive new and sometimes unpopular ideas into the public debate. We’re pleased that even when these ideas are not immediately palatable to the political branches of government, they often become more attractive with the passage of time. We are proud that for more than 50 years the Commission has provided this service to the Executive and Legislative branches – and to the people of California. 2 www.lhc.ca.gov | Little Hoover Commission the economy & efficiency report 2 NNN0ooo13vvveee-1mmm4bbbeeerrr 444,,, 222000111444 About The Commission The Little Hoover Commission has served as an independent • Unlike fiscal or performance audits, voice for government reform, advising the Governor and the Commission’s studies look beyond Legislature for more than 50 years. whether programs comply with existing statutes and regulations. They instead The Commission is known statewide and inside the Capitol for explore how programs could and should its investigative reviews of state government operations that function today and in the future. identify ways to improve program outcomes, increase • The Commission’s study process creates government transparency and reduce expenditures without an opportunity for the public to provide sacrificing services. The Commission’s work also helps to input to the policy discourse. eliminate duplication or wasteful practices, consolidate services or abolish, create and reorganize government to better meet the • The Commission’s composition and policies needs of Californians. ensure that thought from both sides of the aisle is represented throughout its study Since its creation in 1962, the Commission has issued hundreds process and, ultimately, in the adoption of of recommendations on education, energy and the environment, its reports. What results are recommendations health and human services, infrastructure, public safety and that cut through partisanship to offer general government. At times, the Commission’s recommendations suggestions for what is best for California go farther than policymakers think is possible. However, the in the long run. dialogue often challenges leaders to think about what is • The Commission produces in-depth, possible, creating room for new ideas and ultimately helping to well-documented reports that provide push reform in the right direction. a factual basis for crafting effective reform legislation. Though other watchdog entities exist within the state, the Commission’s role differs in distinct ways from other public- and • The Commission formally reviews all private-sector bodies that analyze state programs. Governor’s reorganization plans, providing timely advice to the Governor and Legislature before changes are made. Did You Know? The Little Hoover Commission welcomes the opportunity to work with the Governor, legislators and staff and is available to: • SUPPORT: Offer official support for legislation that implements our recommendations, including writing support letters or providing testimony at legislative hearings. • ADVISE: Brief policymakers and staff on issues researched by the Commission and discuss policy or organizational options, past or potential reforms and ideas for legislation. • LISTEN & RESEARCH: Consider letters from the Governor, members of the Legislature and others requesting future Commission study topics. The Commission also maintains an online library of written testimony from participants of its public hearings - a valuable resource for policy analysts seeking various viewpoints of an issue from a historical perspective. For more information on how we can be of service, please contact our staff by phone at (916) 445-2125 or email at littlehoover@lhc.ca.gov. All of the Commission’s reports are available for download on our website: www.lhc.ca.gov. Little Hoover Commission | Report #224 3 2013-14 the economy & efficiency report Organization The Commission is an independent panel A Balanced Commission comprised of 13 members – nine members of the public and four legislators – and staffed by seven employees. The Commission’s public members are appointed by the Governor, the 5 38% 50% Senate Committee on Rules and the Speaker of the Assembly to reflect a statutorily required balance between political parties. The public members also bring diverse experience to the Commission’s study process and often represent a variety of public and private sector domains, 62% 7 50% including business, law, policy, management, government and nonprofit organizations. The remaining four members are current state legislators, two from each party and from each house. A list of current Commissioners and staff All Public Legislative is on page 14. Though the Commission operates Commissioners Members Members within the executive branch of state government, it is not subject to the control or direction of Democrat Republican any officer or employee of the executive branch, except in connection with appropriation of its As of November 2014, the Commission had one vacancy. budget. Responsibilities The Commission is charged with examining state • Improvement of methods and procedures for government operations and policy, and making reducing expenditures consistent with efficient recommendations to the Governor and Legislature to performance of essential services. promote economy, efficiency and improved service in • Elimination of duplication and overlapping services. state operations. In addition, the Commission has a statutory obligation to review and make recommendations • Consolidation of similar functions and abolition of on all proposed government reorganization plans. unnecessary ones. • Reorganization of departments and agencies. There are no restraints on the Commission’s legal ability to undertake a review into any aspect of the • Definition or redefinition of duties of state officers. operation of the executive branch. Areas of • Revision of provisions for continuing or permanent investigation referenced in statute include: appropriation of state funds. “The unique role of this commission, which has no parallel at either the national level or in any other statute, is its permanent status, its joint citizen-legislator membership, its independence, and the potential breadth of its area of inquiry.” Little Hoover Commission, Report #1 December 31, 1962 4 www.lhc.ca.gov | Little Hoover Commission the economy & efficiency report 2013-14 Why “Little Hoover”? The Little Hoover Commission’s name and function both derive from the federal Commission on Organization of the U.S. Executive Branch, unofficially dubbed the “Hoover Commission” after its chair, former President Herbert Hoover (R). The initial “Hoover Commission” was created by an Act of Congress in 1947 during the administration of President Harry S. Truman (D) and operated through 1949. The commission’s 12 members were charged with developing recommendations to increase government efficiency and improve the organizational structure of the federal executive branch by reducing – through consolidation or elimination – the number of departments or creating new bodies as needed. Commission members were appointed by the Congress and President to represent the legislative and executive branches, as well as the public and private sectors, in a bipartisan manner. More than 70 percent of the commission’s 273 recommendations were fully or partially implemented, resulting in an extensive reorganization of the executive branch of the federal government. Drawing on the success of the first commission, a second Hoover Commission, also chaired by former president Herbert Hoover, operated between 1953 and 1955 to consider government reorganization during the administration of President Dwight Eisenhower (R). California Assemblymember Milton Marks authored legislation enacted in 1961 creating the Commission on California State Government Organization and Economy. Like its federal predecessor, California’s Commission was fashioned as a bipartisan panel charged with promoting economy and efficiency and improved services to the public. It differed in that it was established and operates with modest resources and without reference to any specific problem. At the Commission’s inaugural meeting on April 24, 1962, in San Francisco, then-Governor Edmund Brown Sr. told Commission members that their field of review and initiative was broader than their federal predecessor: “The possible range of study and inquiry is almost boundless, and each of you will have your own ideas of what the most likely areas of achievement will be.” Senator Marks served on the commission from 1962 until 1993. To honor him, the Legislature in 1993 renamed the agency the Milton Marks Little Hoover Commission on California State Government Organization and Economy. Former President Harry S. Truman (left) and former President Herbert Hoover (right) at the White House, February 7, 1951. Source: Truman Library. Photo by Matthew J. Connelly Papers. Little Hoover Commission | Report #224 5 2013-14 the economy & efficiency report Study Process THE COMMISSION IS: The Commission’s thorough study process can take several months to a year, depending on the complexity of the topic under review. The process involves the following steps: Volunteer Commissioners serve without compensation, but dedicate hundreds of hours over the course of a year to 1. Topic Selection understanding and improving public programs. 6. Continued 2. Consult with Monitoring and Experts Informed Oversight A small staff enables Commissioners to be effective by analyzing information, organizing meetings, drafting documents and providing full-time representation for 3. Public Hearings 5. Issue Reports the Commission. and Advisory Meetings Independent 4. Develop The Commission, by statute, Recommendations is not part of the executive or the legislative branch. Its members are appointed by the Governor and Legislature. 1. Topic Selection: The Commission has broad and independent authority to evaluate the structure, organization, operation and functions of every department, agency and entity in the executive branch of state government, along with the policies Bipartisan and methods for appropriating or administering public funds. Based on this broad Policy debates benefit from, mandate, the Commissioners, who are business, management and policy experts, but also are limited by, select study topics that come to their attention from citizens, legislators, their own partisan perspectives. The experiences and other sources. Over the course of a year, the Commission selects Commission’s work balances three to five issues to explore in depth, and also revisits issues raised in previous studies. those debates with a venue designed to forge diverse 2. Consult With Experts: Under the direction of a subcommittee of Commissioners, opinions into an agreed- staff conducts research by meeting with those most closely affected by the targeted upon course of action. topic. The Commission seeks out successful leaders and model state, national and global programs for ideas and best practices. Many dozens of experts donate their time to assist with the Commission’s research efforts by participating in interviews, meetings, site visits and public hearings. A list of experts who participated in a particular study is included in the appendix of each report. On its website, the Commission also maintains a rich, deep online library of witnesses’ written testimony which is available to researchers and those seeking a historical perspective on state policy issues. 6 www.lhc.ca.gov | Little Hoover Commission the economy & efficiency report 2013-14 3. Public Hearings And Advisory Meetings: Based on preliminary staff research, the Commission subcommittee identifies key issues and oversees the creation of public hearings, usually held in the State Capitol, to explore all sides of the issues in an open setting. The Commission’s public hearings create a forum for dialogue, collaboration and the exploration of ideas. Hearings and advisory meetings Empowered inform the Commissioners and educate legislators, government leaders and program The Commission has the administrators, but also create opportunities for the public and the media to understand authority to select its own topics, and comment on the topic under review. has access to government records – including the power 4. Develop Recommendations: Once the Commission has fully explored the study to subpoena records and field and engaged in a public process to receive input from stakeholders and the witnesses – and is charged with public, the subcommittee develops findings and recommendations that focus on the making public recommendations key issues. to the Governor and Legislature. 5. Issue Reports: The Commission, as a whole, may make changes before adopting and releasing the final report with recommendations for the Governor and Legislature. All of the Commission’s reports are posted on the Commission’s website. Commissioners Public and staff work with the Governor, Legislature and others to implement the Commission’s Through open hearings and recommendations. advisory committee meetings, the Commission openly 6. Continued Monitoring And Oversight: As deemed necessary, the examines government Commissioners revisit a study topic to monitor progress made and consider whether operations. It invites experts, additional review is needed. consumers, advocates and federal, state and local officials to assess the state’s performance and explore ways to improve efficiency and effectiveness. Focused Legislators confront every public issue of the day and engage in the perennial work of budget making. Executive branch agencies face the day-to-day challenges of operating bureaucracies. The Commission informs both through its focused and detailed examination of public programs. The Commission’s value is twofold – in its products and its process. Commission meetings, like the one shown above from July 2014, allow Commissioners to engage with strategic, critical thinkers from a variety of perspectives and often build new connections for conversations to continue after the meeting ends. Photo by Jasraj Sangha. Little Hoover Commission | Report #224 7 2013-14 the economy & efficiency report A Recap of Commission Work in 2013-14 During the past two years, the Commission’s work has resulted in 129 recommendations to reduce costs, increase the efficiency of public services and improve the lives of Californians. In developing these recommendations, which are summarized below, the Commission received valuable feedback from 226 experts who volunteered their time to participate in the Commission’s hearings and advisory committee meetings. Hundreds more contributed their time and expertise through conversations with Commission staff. Letter Report on Energy Governance Update Sensible Sentencing For a Safer California (October 2014, #223) (February 2014, #219) Urges the state to develop a comprehensive energy plan. Urges California leaders to improve criminal justice Finds that state officials have not answered the question: sentencing by amending the penal code to expand the how much will it cost to achieve the state’s goal of 33 percent purpose of incarceration beyond punishment alone. renewable energy by 2020, while simultaneously implementing Recommends the state provide incentives to ensure that several other major environmental goals. Recommends all counties use some realignment funding to expand the state modernize its energy governance structure. public-private partnerships to provide proven programs and services for offenders re-entering the community. Letter Report on Medi-Cal Update (August 2014, #222) A New Plan For a New Economy: Reimagining Higher Education The Commission commends the Department of Health (October 2013, #218) Care Services after hearing testimony describing changes to implement the Commission’s 2007 recommendations Calls for a new master plan for higher education that that sought to transform Medi-Cal, the state’s public addresses the state’s need to substantially increase the health care delivery system. Also, recommends the state number of graduates while recognizing that state consider opportunities to encourage, support and expand resources are limited. The Commission also finds that its data and technology infrastructure when examining online education has enormous potential to expand the broader population- and place-based health policy issues. reach of public higher education, and recommends developing incentives to expand use of online courses Governing California Through Climate Change across all segments. (July 2014, #221) An Agenda For Veterans: The State’s Turn To Serve Finds no single-stop administrative structure is in place to (August 2013, #217) create statewide climate adaptation policy and govern the state’s response to climate change impacts. Recommends Calls for improved oversight of veterans’ services at the that the Governor and Legislature create a new state entity Department of Veterans Affairs and recommends the or enhance the capacity of an existing state organization to department do the following: improve outreach efforts to be the authoritative source for local and regional governments veterans, build a strong database of California veterans, to work with the state to assess climate risks. monitor county veterans offices’ work to ensure effectiveness and modernize its approaches to serve needs From Hiring to Retiring: Strategies for of the youngest generation of California veterans. Also Modernizing State Human Resources recommends updating the Military and Veterans Code to (February 2014, #220) better align with current CalVet practices and veterans’ needs. Urges the Governor, Legislature and state human resource leaders to finish the work outlined in the Governor’s Letter Report on Bail and Pre-Trial Services reorganization plan of 2012, increase the efficiency and (May 2013, #216) customer service in state processes and put into place a system that will ensure careers in state government are Finds that county sheriffs, not judges, increasingly make attainable and rewarding. bail and sentencing decisions to manage jail overcrowding. 8 www.lhc.ca.gov | Little Hoover Commission the economy & efficiency report 2N0o1v3e-m14ber 4, 2014 Also finds a need for evidence-based practices to safely state parks and realign those which serve primarily local or reduce large pre-trial populations that account for a majority regional needs to other operators. The Commission also of jail detainees. To address these issues, recommends the identifies several chronic conditions that will threaten the state bolster oversight of AB 109 realignment spending, state parks system if left unchecked. mandate validated risk and needs assessments in all counties, set criteria for setting bail schedules and continue to implement Rewiring California: Integrating Agendas for sentencing reform. Energy Reform (December 2012, #214) Beyond Crisis: Recapturing Excellence in Finds California has embarked on a massive transformation California’s State Park System of its electricity system, but lacks a comprehensive plan to (March 2013, #215) ensure electricity remains affordable and reliable. Finds that the California Department of Parks and Recreation Recommends that the Governor task the appropriate parties needs a new operating model to thrive, and to protect and to develop a comprehensive and prioritized action plan to preserve the state’s natural and cultural treasures. The attain its energy and environmental goals. Also recommends department’s model should be built around shared the state begin modernizing its energy governance structure management, innovation, greater transparency and the and enhance consumers’ ability to better manage their expectation that it generate more revenue from its own energy use and electricity bills. operations. Recommends the department assess all of its The Commission considers energy governance at an April 2014 hearing in the State Capitol in Sacramento, California. Photo by Jeff Walters. Little Hoover Commission | Report #224 9 2013-14 the economy & efficiency report California’s Top 10 Opportunities For Reform Each year the Commission makes recommendations to the Governor and Legislature for action in specific areas. Many recommendations have been adopted through legislation, executive order or Governor’s reorganization plans. But important work remains. The Commission has identified the following opportunities for leaders to improve performance, provide value for taxpayers and promote Californians’ confidence in government. Develop a Climate Change Adaptation Strategy. California is beginning to see the initial effects of a warming climate as world governments fall short in reducing carbon emissions. Governments statewide must plan now for the impacts of climate change. A new or existing state entity should focus on adaptation, provide leadership and help decision-makers assess risk. California must maintain stability to assure global competiveness and economic growth during an uncertain future in a warming world. (Report #221) Establish a Criminal Justice Sentencing Commission. California has failed to effectively deal with prison and jail overcrowding. Public safety realignment was an important first step in reducing the prison population, but once again, the prison population is growing. The state needs an independent body, informed by data, to review the state’s thousands of sentences and enhancements and ensure a balance between public safety and correctional system resources. (Reports #219, #207, #185, #144, #124) Consolidate Water Governance. The state’s water management and planning structure, in place since 1969, is obsolete. It leaves California ill-prepared to address unpredictable precipitation and balance water demands of agriculture, a rising population and the environment. The state should remove the State Water Project from the Department of Water Resources (DWR) and state government control. It also should convert the DWR into a broader-scale Department of Water Management that retains all functions of DWR and also oversees water rights. (Report #201) Develop a Comprehensive Energy Plan. California is undergoing a massive transformation in electricity production and distribution as it moves away from fossil fuels. In the near future, renewable energy will produce one-third of the state’s electricity. California must develop a comprehensive plan for this transition that keeps energy affordable and reliable while meeting the state’s goals for a powerful, decarbonized economy and high-quality environment. (Reports #223, #214) “...a series of reports from nonpartisan organizations like the Little Hoover Commission, the Hoover Institution and the Legislative Analyst’s Office among others, all highlight the lack of an integrated state energy plan as a challenge we need to overcome. Such a plan is needed to provide the coordination, guidance and strategy to achieve our state’s environmental and economic goals.” Former Governors George Deukmejian, Pete Wilson and Gray Davis July 13, 2014 letter to The Sacramento Bee 10 www.lhc.ca.gov | Little Hoover Commission the economy & efficiency report 2013-14 Modernize Civil Service. A strong, innovative workforce is the cornerstone of quality public service. The Governor’s 2012 reorganization plan provided a significant step in this direction by creating the California Department of Human Resources. This unified department, however, must now modernize how California hires, trains and retains state workers. The department must improve efficiency and customer service in state processes and make state government careers attainable and rewarding. (Report #220) Develop a Higher Education Strategy. Though California was well served by the 1960 Master Plan, a new era warrants rethinking the state’s strategy for higher education. California policy leaders and stakeholders must develop a new Master Plan for Higher Education to provide California the trained workforce its evolving economy requires and ensure students affordable options to achieve their goals. (Report #218) Plan for Long-term Infrastructure Needs. Policymakers must find creative ways to overcome decades of neglect and invest in transportation, school facilities, levees, affordable housing and other necessary infrastructure. The state also must better manage its buildings, highways and state parks, and seek opportunities to more efficiently use and leverage these resources. (Reports #215, #212, #199) Use Technology to Drive Performance. The state must use more and newer technology to improve government services and monitor large information technology projects to avoid the failures of the past. The state should increase its use of technology and data to both measure and manage performance. (Reports #208, #196) Champion Pension Responsibility. Through its own pension reform strategies, the state must set examples for sustainable pension plans that keep cities and counties on firm financial ground. The state should provide more plan options, be more transparent about the true cost of pension obligations and add more independent voices to pension plan boards. (Report #204) Establish a Long-Term Care Strategy. As the demographic wave of aging baby boomers hits California, the state must improve care for low-income, frail seniors and disabled Californians in their homes and communities, avoiding, to the extent possible, the need for nursing home care. California must streamline and consolidate state level roles and responsibilities and create a seamless continuum of long-term care services. (Report #205) For more information, and specific strategies for reform, please see the Commission’s reports available online at www.lhc.ca.gov, or contact Commission staff by phone at (916) 445-2125 or email at littlehoover@lhc.ca.gov. Little Hoover Commission | Report #224 11 2013-14 the economy & efficiency report Commission Work Improves Government Letter from the Executive Director As executive director, I am often asked what happens after the Commission issues its recommendations. The answer is as varied as the topics the Commission tackles, often the intractable and partisan issues that have proven difficult, if not impossible, to resolve in other arenas. Successful outcomes include enacted legislation, administrative changes, structural reorganization and the personal connections that occur during the Commission’s public process. During my Sometimes, changes are nearly instantaneous, as with the Commission’s 2013 veterans services tenure, I have review. This study was done at the request of legislators and as soon as ideas emerged at the witnessed how Commission’s public hearings, they quickly found their way into legislation. Policymakers authorized the Commission funding to put strike teams into federal veterans services offices to help reduce some of the has helped worst backlog in the nation and to increase county outreach to veterans. make positive changes that The Commission’s 2014 review of the reorganization of the California Department of Human have saved Resources also led to swift changes. The Commission found that although the reorganization had taxpayer dollars, gone well, the state had lost sight of a larger goal of transforming civil service. The administration improved the responded promptly to the Commission’s recommendation that to modernize state operations, delivery of CalHR and its leaders should be broadly experienced in human resource management. services and have made Another Commission recommendation to create a lean and nimble Office of Economic California a Development occurred just weeks after the Commission issued its report in 2010. Over the better place to next several years, the Governor’s Office of Business and Economic Development – GoBiz, for live and work. short – has since grown to absorb other state organizations and functioned as a rapid response center to stimulate California’s business climate. In its 2009 report on bond oversight, the Commission recommended the state make it easier for voters to understand the true costs of passing bond measures. Legislation enacted shortly after this report added new easy-to-understand boxes to the Official Voter Information Guide that explain the costs of bond measures. The Commission also has learned that its bond oversight report has become a must read for the dozens of local bond oversight commissions that provide the eyes and ears on the ground to oversee school and community college construction projects. Sometimes, recommended changes are complicated and may take years to fully implement, as with the Commission’s 2007 report that called for a transformation of the state’s Medi-Cal program. Witnesses at the June 2014 follow-up hearing credited the Commission with providing the guidepost for department leaders to pursue quality improvements in prevention, coordinated care, cost effectiveness and improved health outcomes. The Commission has repeatedly reviewed the state’s governance of information technology, developing recommendations to streamline the way the state manages technology projects. In 2014, the Legislature enacted a bill to create a project management unit within the California Department of Technology to support other state agencies in developing information technology 12 www.lhc.ca.gov | Little Hoover Commission the economy & efficiency report 2013-14 projects, recommended in a 2008 report. A unique offshoot of the Commission’s 2008 report was the formation of the Performance Management Council. Initially convened by the Commission to discuss how the state uses data to improve decision-making, this group of forward-thinking government leaders expressed an interest in sharing best practices and discussing how to support cultural change within their departments. Through regular meetings with representatives from about 25 state entities, the council has for nearly seven years served as a peer learning community to assist public managers and leaders in the use of data to improve decision-making. Often, the Commission’s reports spark policy debate while recommendations for broader changes take time to gain traction. The Commission’s bellwether recommendations to ensure retirement security for public employees in 2011 struck tremendous discord when first released. Yet, a year later, many of the Commission recommendations were enacted. The California Public Employees Retirement System estimated that the reforms could save between $42 billion and $55 billion over the next 30 years. Other recommendations from that report are still in public discussion, particularly as local governments struggle to balance costs for public pensions with other public services. The Commission has focused on California’s criminal justice system for two decades and changes in the past several years reflect the value of continuously pushing the agenda. The Commission was one of the first and most tenacious voices calling for a shift in low-level offenders from the state to community supervision. The Commission for years has heard how the state’s overreliance on incarceration in state facilities has fractured lives and California communities when less costly alternatives have been proven to reduce crime and victimization. The historic public safety realignment in 2011 was motivated by the U.S. Supreme Court ruling on prison overcrowding. The Court’s first citation in that ruling refers to a 2007 Little Hoover Commission report. More recently, policymakers established the Recidivism Reduction Fund that will provide money for programs and services for community-supervised offenders, another long-time Commission recommendation. A 2014 bill signed into law funds job training for supervised offenders and gives preference to proposals that include community-based organizations. This is consistent with the Commission’s 2014 recommendation that the state expand public-private partnerships to provide services for locally supervised offenders. Although the Commission’s 2008 call to eliminate state-level juvenile justice operations was not been heeded in full, today there are fewer than 700 youth supervised in state facilities. That is nearly one-tenth of the number supervised when the Commission visited the Chaderjian Youth Correctional Facility in 2005. Additionally, all youth released from a state facility now are supervised by county probation officials. These policy changes save hundreds of millions of dollars annually and have kept thousands of youth offenders closer to home, where evidence indicates they are most likely to succeed. For more than a dozen years, it has been my privilege to work for the dedicated Californians who volunteer their time to serve on the Little Hoover Commission. Their viewpoints and ideologies may vary, but all share a passion for improving California government and the quality of life for all Californians. As the Commission tackles new challenges and revisits recommendations yet to be implemented, I stand ready with our Commissioners to assist the Governor and the Legislature to continue to improve California state government. Carole D’Elia Executive Director, Little Hoover Commission Little Hoover Commission | Report #224 13 2013-14 the economy & efficiency report Commissioners Pedro Nava, Chairman (D – Santa Barbara) Don Perata (D – Orinda) Advisor to telecommunications industry on Principal, Perata Consulting LLC. Former environmental and regulatory issues. Former President pro tempore of the California State civil litigator and State Assemblymember. Senate, State Assemblymember and member Appointed by Assembly Speaker John Pérez of the Alameda County Board of Supervisors. in April 2013. Previously appointed by Assembly Appointed by the Senate Rules Committee in Speaker Núñez in 2005. Elected chair in February 2014. March 2014. Anthony Rendon (D – Lynwood) State Assemblymember. Former executive Loren Kaye, Vice Chairman (R – Sacramento) director of Plaza de la Raza Child Development President of the California Foundation for Services and adjunct professor of political Commerce and Education. Former partner KP science and criminal justice. Appointed by Public Affairs, senior policy advisor for Assembly Speaker John Pérez in February 2013. Governors Pete Wilson and George Deukmejian. First appointed by Governor Arnold Richard Roth (D – Riverside) Schwarzenegger in March 2006. Elected vice State Senator. Former labor and employment chair in March 2014. attorney and major general in the U.S. Air Force Judge Advocate General’s Corps. Katcho Achadjian (R – San Luis Obispo) Appointed by the Senate Rules Committee in State Assemblymember. Former member of February 2013. the San Luis Obispo County Board of Supervisors, small business owner. Appointed David Schwarz (R – Beverly Hills) by Assembly Speaker John Pérez in July 2011. Partner, Irell & Manella LLP. Former U.S. delegate to the United Nations Human Rights David Beier (D – San Francisco) Commission, special assistant to the staff Managing director of Bay City Capital. Former director of the U.S. Commission on Civil senior officer to Genentech and Amgen, chief Rights. First appointed by Governor Arnold domestic policy advisor to Vice President Al Schwarzenegger in March 2007. Served as Gore. Appointed by Governor Edmund Brown vice chair from March 2012 to March 2014. Jr., in June 2014. Jonathan Shapiro (D – Beverly Hills) Anthony Cannella (R – Ceres) Television writer and producer, of counsel to State Senator and Vice President, Northstar Kirkland & Ellis LLP. Former chief of staff to Lt. Engineering. Former Ceres mayor, city council Governor Cruz Bustamante and federal member and member of the Ceres planning prosecutor in the U.S. Department of Justice commission. Appointed by the Senate Rules Criminal Division and Central District of Committee in January 2014. California. First appointed by the Senate Rules Committee in April 2010. Served as chair from March 2013 to March 2014. Jack Flanigan (R – Granite Bay) Member of the Flanigan Law Firm, founding Sumi Sousa (D – San Francisco) partner of California Strategies. Forme vice Officer of Policy Development to the San president of public affairs for the Irvine Francisco Health Plan. Former health care Company, executive director of the California advisor to Assembly Speaker John Pérez, Housing Council, executive director of the executive director to the California Health Coro Foundation in Los Angeles. Appointed Facilities Financing Authority. Appointed by by Governor Edmund Brown Jr., in April 2012. Assembly Speaker John Pérez in April 2013. 14 www.lhc.ca.gov | Little Hoover Commission the economy & efficiency report 2013-14 Former Commissioners Who Served in 2013-14 Virginia Ellis (D – Sacramento) Michael Rubio, Senator (D – East Bakersfield) January 2011 – January 2014 February 2011 – February 2013 Bill Emmerson, Senator (R – Redlands) Tom Quinn (D – Marina del Rey) February 2013 – December 2013 February 2012 – December 2013 Daniel Hancock (D – San Ramon) Mark Vargas (D – Los Angeles) July 1997 – March 2013 February 2012 – April 2013 Alyson Lewis (Huber), Assemblymember (D – Lodi) Mark Wyland, Senator (R – Carlsbad) March 2010 – January 2013 February 2011 – February 2013 To contact a Commissioner, please direct communications to the Commission Office: Little Hoover Commission 925 L Street, Suite 805 Sacramento, CA 95814 (916) 445-2125 littlehoover@lhc.ca.gov David Schwarz (left), and Jonathan Shapiro (right), respectively vice chair of the Little Hoover Commission from March 2012 to March 2014 and chair of the Commission from March 2013 to March 2014. Commission Staff Commission staff arrange meetings, conduct research, draft reports, advocate for recommendations and perform related administrative functions on behalf of the Commission. Staff members are available by phone at (916) 445-2125. Carole D’Elia, Executive Director Jim Wasserman, Deputy Executive Director Carole.D’Elia@lhc.ca.gov Jim.Wasserman@lhc.ca.gov Tamar Lazarus, Project Manager Sherry McAlister, Analyst Tamar.Lazarus@lhc.ca.gov Sherry.McAlister@lhc.ca.gov Krystal Beckham, Research Analyst Ciana Gallardo, Research Analyst Krystal.Beckham@lhc.ca.gov Ciana.Gallardo@lhc.ca.gov Little Hoover Commission | Report #224 15 November 4, 2014 the economy & efficiency report What Stakeholders Say About the Commission Stakeholders often say the Little Hoover Commission prods change where change might not otherwise occur, as exemplified by remarks made during several of the Commission’s recent hearings: Robert Lapsley, President, California Business Roundtable, April 24, 2014 “We came together around your first report, Rewiring California, with some of the issues that were raised. We oftentimes think of reports sitting on dusty shelves. In this case it was not the case for us. Because you actually went out and did a lot of work that we potentially should have done or are starting to do. And got way out in front of the issues that needed to be addressed in regards to energy planning and the impacts of what’s coming. And we thank you for that. So we felt we needed to start pulling our weight and get going to start a dialogue statewide of how are the current policies impacting, in real terms, California’s competitiveness and also California’s underserved communities – our disadvantaged communities.” Ralph Cavanagh, Co-Director, Energy Program, Natural Resources Defense Council, April 24, 2014 “The one point I want to underscore based on 35 years of engagement with the agency: for 35 years they have been showing up telling you they were coordinated and they were listening to each other and they were trying to work together – it’s actually happening now. And you need to hear that not just from the agencies but from someone who works with the agencies. And it’s not happening because they like each other. It’s happening because – and you are part of this – a drumbeat of insistence that it must happen or the lights won’t stay on has actually sunk in. In probable ways, I wish you would take some collective credit for the difference you have made. I first appeared to talk to you about this 18 years ago. You have had a powerful impact.” Toby Douglas, Director, California Department of Health Care Services, June 26, 2014 “We at the department really want to acknowledge the Commission back in 2007. The report really was a very important guiding post for the state on the direction of the Department of Health Care Services and the Medi-Cal program. As I sit here before you today, Medi-Cal has transformed.” Richard Van Horn, Chair, Mental Health Services Oversight & Accountability Commission, September 23, 2014 “Frankly, my hope and the fact that we were going to get dialogue with the Little Hoover Commission, was that you guys got a different kind of political clout than we do and we need your help in making this happen. The counties need your help in this. The community agencies need your help.” 16 www.lhc.ca.gov | Little Hoover Commission Little Hoover Commission 925 L Street, Suite 805 Sacramento, CA 95814 (916) 445-2125 littlehoover@lhc.ca.gov A Decade of Commission Work: 2004-2014 Education Governing the Golden State: A Critical Path to Improve A New Plan for a New Economy: Reimagining Higher Education Performance and Restore Trust (Report #218, October 2013) (Report #174, July 2004) Serving Students, Serving California: Updating the California Health & Human Services Community Colleges to Meet Evolving Demands Letter to Governor and Legislature on Medi-Cal Program Update (Report #210, February 2012) (Report #222, August 2014) Smarter Choices, Better Education: Improving California Charter Schools An Agenda for Veterans: The State’s Turn to Serve (Report #202, November 2010) (Report #217, August 2013) Educational Governance & Accountability: Taking the Next Step A Long-Term Strategy for Long-Term Care (Report #191, May 2008) (Report #205, April 2011) Career Technical Education: Creating Options for High School Success Stem Cell Research: Strengthening Governance to Further the (Report, #189, November 2007) Voters’ Mandate The State Allocation Board: Improving Transparency and Structure (Report #198, June 2009) (Report #188, August 2007) First Year Checkup: Strategies for a Stronger Public Health Department Energy, Environment & Resources (Report #194, January 2009) Letter to Governor and Legislature on Energy Reform Update Addressing Addiction: Improving & Integrating California’s (Report #223, October 2014) Treatment System Governing California Through Climate Change (Report #190, March 2008) (Report #221, July 2014) A Smarter Way to Care: Transforming Medi-Cal for the Future Beyond Crisis: Recapturing Excellence in California’s State Park System (Report #187, May 2007) (Report #215, March 2013) Recommendations for Emergency Preparedness and Public Health Rewiring California: Integrating Agendas for Energy Reform (Report #170a, June 2005) (Report #214, December 2012) Real Lives, Real Reforms: Improving Health and Human Services Managing for Change: Modernizing California’s Water Governance (Report #173, May 2004) (Report #201, August 2010) Infrastructure Clearer Structure, Cleaner Water: Improving Performance and Letter to Governor Brown and the Legislature on Information Outcomes at the State Water Boards Technology Governance (Report #195, January 2009) (Report #208, September 2011) Still Imperiled, Still Important: The Little Hoover Commission’s Building California: Infrastructure Choices and Strategy Review of the CALFED Bay-Delta Program (Report #199, January 2010) (Report #183, November 2005) A Review of the Governor’s Reorganization Plan to consolidate Letter Regarding the Governor’s Reorganization Plan to Create a Information Technology Functions Department of Energy (Report #196, March 2009) (Report #182, June 2005) A New Legacy System: Using Technology to Drive Performance General Government (Report #193, November 2008) From Hiring to Retiring: Strategies for Modernize State Human Resources Reconstituting Government: A Review of the Governor’s Plan to (Report #220, February 2014) Create a Department of Technology Services (Report #180, May 2005) Building Value: Modernizing Property Management (Report #212, September 2012) Public Safety A Review of Government Reorganization Plan No. 2 Sensible Sentencing for a Safer California (Report #211, May 2012) (Report #219, February 2014) Better Regulation: Improving California’s Rulemaking Process Letter to Governor Brown and the Legislature on Bail and Pre-Trial Services (Report #209, October 2011) (Report #216, May 2013) A Review of the Governor’s Reorganization Plan to Unify and Letter to Governor Brown and the Legislature on Community Corrections Streamline the California State Personnel System (Report #207, September 2011) (Report #206, June 2011) Juvenile Justice Reform: Realigning Responsibilities Public Pensions for Retirement Security (Report #192, July 2008) (Report #204, February 2011) Solving California’s Corrections Crisis: Time is Running Out Making up for Lost Ground: Creating a Governor’s Office of (Report #185, January 2007) Economic Development Safeguarding the Golden State: Preparing for Catastrophic Events (Report 200, February 2010) (Report #184, April 2006) Bond Spending: Expanding and Enhancing Oversight Reconstructing Government: A Review of the Governor’s Plan (Report #197, June 2009) Reforming California’s Youth & Adult Correctional Agency Serving the Public: Managing the State Workforce to Improve Outcomes (Report #179, February 2005) (Report #181, June 2005) Breaking the Barriers for Women on Parole (Report #177, December 2004) Historic Opportunities: Transforming California State Government (Report #176, December 2004)