The Little Hoover Commission: Advocating for Change 2019-20

The Little Hoover Commission: Advocating for Change 2019-20 Report #255 | December 2020 Milton Marks Commission on California State Government Organization and Economy www.lhc.ca.gov Table of Contents LETTER FROM THE CHAIR ................................................................3 ABOUT THE COMMISSION ................................................................4 STUDY PROCESS ................................................................................6 A RECAP OF COMMISSION WORK IN 2019-20 ..............................8 SUPPORTED LEGISLATION ..............................................................11 IDEAS FOR CHANGE FROM LITTLE HOOVER ................................13 LETTER FROM THE EXECUTIVE DIRECTOR ...................................15 MEET OUR TEAM ..............................................................................16 COMMISSIONERS THROUGH THE DECADES ................................18 Contacting the Commission All correspondence should be addressed to the Commission Office: Little Hoover Commission 925 L Street, Suite 805, Sacramento, CA 95814 (916) 445-2125 | LittleHoover@lhc.ca.gov This report is available from the Commission’s website at www.lhc.ca.gov. 2 | LITTLE HOOVER COMMISSION Letter from the Chair December 10, 2020 Almost 60 years ago, California began a unique experiment in improving government. In 1962, amid the postwar boom that would draw millions of people to our great state, Gov. Pat Brown spoke at the first meeting of the new Little Hoover Commission, which was charged with reviewing government operations and making recommendations to promote “economy, efficiency and improved service.” Such work was critical, Gov. Brown remarked, because “satisfaction and complacency are enemies of good government.” Our Commission has been battling satisfaction and complacency ever since. In fact we recently issued our 250th report, a milestone that represents decades of effort. This biennial report sums up our work from the past two years, but also provides a glimpse of the entire history of the Commission. We bring a unique set of advantages to our work: We are rooted in fact. The Commission has developed and preserved a reputation for careful research and thoughtful analysis, which in turn lead to measured, practical recommendations. Our extensive study process – including staff research, public hearings, advisory roundtable meetings, and site visits – ensures reports that are accurate, balanced, and thorough. We are nonpartisan. By law, no more than seven of the 13 Commissioners may be members of the same party. No faction dominates our work. We are independent. California law states clearly that the Commission’s work is not under the control of any elected official or agency. We speak truth to power. We bring varied experiences and backgrounds. Most of our members are citizens who volunteer to serve. We are business people, lawyers, local officials, and advocates. Four Commissioners are sitting members of the Legislature, providing the perspective of active policymakers. These advantages were plain from the start. The Commission’s first report, which analyzed the then-new concept of grouping state government departments under “agencies,” noted that the Commission was unique in American government, and we still have no parallel: We are America’s only permanent and independent citizens commission working to improve state government. In the pages that follow you can read about our work during the past two years in which we have focused on technology, human trafficking, intimate partner violence, and, most recently, the economic impact of the Covid pandemic. Just this summer, a policy expert from across the continent used a technology unimaginable to those who created the Little Hoover Commission – Twitter – to suggest that our nation’s capital should start its own version of California’s special experiment. That kind of reach suggests just how broadly the Commission’s impact has been felt. On behalf of all the Commission members who came before me and those with whom I serve today, I can say that we are proud of the mission we have been given and the work we have produced. I hope you enjoy this review of that work, and join me in vowing that California will continue to benefit for decades to come from a strong, independent voice for reform. Pedro Nava Chair, Little Hoover Commission ECONOMY & EFFICIENCY REPORT 2019-20 | 3 About the Commission The Milton Marks “Little Hoover Commission” on California State Government Organization and Economy has served as an independent voice for government reform, advising the Governor and Legislature for nearly 60 years. Purpose and Responsibilities Organization The Commission has broad, independent authority The Commission is an independent panel comprised to evaluate the state’s services, activities and of 13 members - nine members of the public and functions, along with the policies and methods four legislators - and staffed by seven permanent for appropriating and administering funds. The employees and occasional student interns. The Commission also has the legal responsibility Commission’s nine public members are appointed to review and make recommendations on by the Governor, the Senate Rules Committee and reorganization plans initiated by the Governor. the Speaker of the Assembly to reflect a statutorily required balance between political parties. The Unlike fiscal or performance audits, which focus on public members also bring diverse experience to the compliance, the Commission’s studies explore how Commission’s study process and often represent state governmental entities can and should function. a variety of public and private sector domains, Commission reports and recommendations are including business, law, policy and management, developed through extensive research and interviews government and nonprofit organizations. Public of experts and knowledgeable professionals, members serve staggered, four-year terms. The academics and stakeholders. In conducting its work, remaining four members are current state legislators, the Commission focuses on how state government two from each party and from each house. Legislative can: members serve at the pleasure of the appointing authority. A full list of current Commissioners and ◊ Improve outcomes staff is on page 16. Though the Commission operates ◊ Increase transparency within the executive branch of state government, it is not subject to the control or direction of any officer ◊ Reduce spending without sacrificing services or employee of the executive branch, except in ◊ Eliminate redundant services connection with appropriation of its budget. ◊ Consolidate services or abolish, create and reorganize departments or programs to better meet the needs of Californians Commissioners and staff listen to testimony from State Senator Susan Rubio at the Commission’s Public Hearing on Intimate Partner Violence (February 2020) 4 | LITTLE HOOVER COMMISSION History Study Topics The Commission’s name and function derive from the federal Commission on Organization of The Commission has issued hundreds of the Executive Branch of the Government, which recommendations on topics such as: operated between 1947-1949 under the Truman Administration and again between 1953-1955 under CALIFORNIA the Eisenhower Administration. Former president ECONOMY Herbert Hoover chaired this commission, resulting in the nickname “Hoover Commission.” The members were appointed by the President and Congress to ENVIRONMENT & create bipartisan solutions to increase the efficiency NATURAL RESOURCES of the administration structures in the executive branch. To replicate the success of the “Hoover Commission,” California State Senator Milton Marks GOVERNMENT in 1961 proposed an organization dedicated to OPERATIONS promoting economy, efficiency and improved service in California’s governing structure. The organization later was renamed the Milton Marks Little Hoover HEALTH & HUMAN Commission on California State Government SERVICES Organization and Economy to pay homage to both the original Hoover Commission and Senator Marks. Gubernatorial Reorganization PUBLIC SAFETY, LAW & JUSTICE Plans The Commission plays a key role in California’s TECHNOLOGY & process for reorganizing state government. SCIENCE Article V, Section 6 of the California Constitution authorizes the Governor to reorganize the functions of executive officers and agencies, a process that This process, which has been used 37 times since is outlined in detail in Government Code Section 1968, has provided for a quick yet careful method 8523 and Government Code Section 12080 et seq. for reorganizing state government. In 2012, for Under this process, Governors submit their proposed example, the Commission praised Governor reorganization plans to the Little Hoover Commission Brown’s Reorganization Plan No. 2 as “important at least 30 days before submitting the plan to the and essential” in making state government “more Legislature. Acting in its independent oversight role, effective, efficient and transparent.” the Commission then submits to the Legislature a The reorganization process as outlined in the report analyzing the plan. The Legislature has 60 constitution allows Governors to restructure state days in which to act on the proposal; if neither house government quickly and efficiently, while also rejects the plan, it takes effect. allowing for the independent assessment of the Commission. ECONOMY & EFFICIENCY REPORT 2019-20 | 5 Study Process The Commission relies on a comprehensive study process to gather information and consider ways to promote economy, efficiency and improved service in state government. The Commission’s open process creates an opportunity for the public to participate in the policy discourse. Select Research Public Input Study Topic Study topics are generated by the Under the direction of the study The Commission holds formal public, legislators, Commission subcommittee, staff conducts public hearings, where subject staff and the Commission’s own research by such methods as matter experts and other areas of interest and concerns. collecting data, reviewing news stakeholders testify and answer Over the course of a year, the articles and other relevant questions before the Commission. Commission typically selects documents, and interviewing The study subcommittee three to five matters to research experts, knowledgeable usually conducts meetings with in depth and may return to professionals and stakeholders. knowledgeable and interested review the status of findings Commissioners and staff may also members of the public, whether and recommendations made in conduct site visits. from private industry, state or previous studies. The Commission local governments, or other also selects Commissioners to stakeholders. These meetings are serve on the study subcommittee. referred to as advisory committee The subcommittee works closely meetings and allow for a more with staff during the study process. informal question-and-answer process. Commissioners and staff visit My Sister’s Café in Sacramento Alameda County District Attorney Nancy O’Malley (right) to learn more about the nonprofit’s work helping survivors of testfies before the Commission along with San Diego intimate partner violence (January 2020) District Attorney Summer Stephan, Fresno County Deputy District Attorney Lynette Gonzales, and Los Angeles City Attorneys Anh Truong and Rena Shahandeh (November 2019) 6 | LITTLE HOOVER COMMISSION Commissioners, staff, and attendees at the Intimate Partner Violence Advisory Committee Meeting (January 2020) 1. Evaluate & Review & Outreach Analyze Adopt Throughout the study process, A draft report is presented to To encourage and support evaluation and analysis of the the Commission for review, the implementation of its gathered facts is done. Once the consideration and adoption. recommendations, the Commission study has been fully explored, Commissioners may adopt the and staff engage in outreach a draft report with findings and draft report or determine that activities, including: recommendations is prepared. amendments or changes are necessary. After a draft report is ◊ Meetings and presentations with adopted by the Commission, the executive and legislative branch final report is made public and sent officials and staff. Meetings may to the Governor and Legislature for also be held with departments review and consideration. and stakeholders. ◊ Supporting bills that are based on or influenced by Commission reports and recommendations. The Commission’s chairman and executive staff testify at legislative hearings and work with legislative staff and interest groups to advance bills. The Commission does not oppose bills that are contrary to its recommendations. ◊ Commissioners may revisit study topics to monitor progress made and consider whether additional review and recommendations are necessary. Executive Director Ethan Rarick (center) testifies about veterans home reforms before the Joint Veterans Affairs Committee (January 2020) ECONOMY & EFFICIENCY REPORT 2019-20 | 7 A Recap of Commission Work in 2019-20 Letter to Governor Newsom and the Legislature on Voting Equipment Security (Report #247, March 2019) Calls upon the Governor and Legislature to recognize the ongoing and persistent challenges to California’s voting equipment security and take appropriation action. Finds that old and outdated voting equipment presents one of the greatest threats to election integrity in the state. Also finds that California lacks statewide goals for election system innovation and can take steps to better prove election results. Provides questions for policymakers to consider as they focus state resources on ensuring every Californian’s vote counts. Mapping a Strategy for GIS (Report #248, October 2019) Urges California to develop a coordinated, statewide approach for the use of Geographic Information Systems (GIS). Finds that most of the state’s executive branch agencies, including Cal OES, CAL FIRE, Caltrans, and the Employment Development Department, collect and use geospatial information to carry out their mission, yet California lacks a statewide strategy to realize the full potential of GIS through coordination and data sharing across agencies. Additionally, finds that other states experienced increased efficiency by consolidating technology and data infrastructure. Recommends lawmakers designate a State Geographic Information Officer (GIO) to coordinate the state’s GIS projects and establish a California GIS Advisory Council comprised of diverse GIS users to advise the GIO. Lastly, recommends California use GIS to evaluate regional disparities in funding and delivery of services throughout the state. Intimate Partner Violence: Getting the Money to Those on the Front Line (Report #249, April 2020) Calls for reform to California’s key anti-domestic violence program to better assist those on the front line serving survivors of intimate partner violence (IPV). Finds that service providers participating in California’s Domestic Violence Assistance Program receive funding via reimbursement rather than up-front payments and must wait 79 to 109 days to receive funds from the state for services rendered to IPV survivors. As a result, many service providers rely on lines of credit to cover expenses until reimbursement checks arrive while others leave grant money unspent or avoid applying for it in the first place. Recommends providing state funding to service providers through up-front payments rather than reimbursements. 8 | LITTLE HOOVER COMMISSION Human Trafficking: Coordinating a California Response (Report #250, June 2020) Implores California to strengthen efforts to combat both sex and labor trafficking by coordinating anti-trafficking efforts among state, local, and federal agencies and non- governmental organizations, collecting data, and increasing public awareness. California is believed to be one of the most common destination states for human trafficking, yet very little is known about the extent of this crime throughout the state. Recommends the creation of a statewide Anti-Human Trafficking Council housed within the Governor’s Office comprised of representatives from diverse backgrounds and regions of the state to oversee California’s response to all forms of human trafficking. Labor Trafficking: Strategies to Uncover this Hidden Crime (Report #251, September 2020) Urges California to increase efforts to detect labor trafficking. Finds that labor trafficking can operate beneath a façade of legitimacy and can be very difficult to find. Numerous obstacles prevent officials from identifying this crime and helping victims, including the lack of an aggressive state response, unfamiliarity of labor trafficking among law enforcement, unreported cases, and lack of enforcement of the Transparency in Supply Chain Act, a 2010 law that requires businesses to publicly disclose their efforts to combat trafficking in their supply chains. Recommends California train a broad range of public officials to serve as first identifiers of this crime and conduct education and outreach campaigns to increase public awareness of labor trafficking. Also recommends further research into the effectiveness of the Transparency in Supply Chain Act and urges lawmakers to update laws protecting child victims of sex trafficking to protect child victims of all kinds of trafficking. Labor Trafficking: Strategies to Help Victims and Bring Traffickers to Justice (Report #252, October 2020) Calls upon California to enhance efforts to bring labor traffickers to justice through increased investigation and adjudication of labor trafficking crimes. Finds that labor trafficking is difficult to investigate and prosecute for many reasons, including the fact that survivors may be reluctant to participate in prosecutions, trafficking investigations are costly and time-consuming, law enforcement officials receive little training on the issue, and there are few opportunities for agencies to collaborate. As a result, labor trafficking cases bringing perpetrators to justice remain rare. Recommends California empower more state agencies to investigate labor trafficking crimes and standardize coordination among federal, state, and local agencies. Also recommends that California track labor trafficking enforcement activities and study outcomes to identify best practices, while ensuring that law enforcement and court personnel understand how to investigate and prosecute state level cases of labor trafficking. ECONOMY & EFFICIENCY REPORT 2019-20 | 9 Issue Brief: California’s Digital Divide (Report #253, December 2020) Finds that as many as 2.3 million Californians lack access to broadband, hindering their ability to, among other things, access education, contribute to a productive economy, and obtain crucial government services. Also finds that California’s broadband coverage, speed, and pricing is rated 13th in the nation with strong access to low-cost plans but very slow speeds. Provides examples of initiatives from municipalities in California and across the globe to start fiber broadband networks as a way to increase competition among internet service providers and potentially make access more affordable for consumers. Finds that Chattanooga and Stockholm were able to offer fiber broadband connections to businesses and residents using public and public-private partnership models respectively, while Santa Monica executed a successful effort to bring fiber broadband connections to city businesses, municipal buildings, and some affordable housing units. Also finds that attempts to create public-private partnerships to build fiber broadband networks in San Francisco and Los Angeles were unsuccessful. First Steps toward Recovery: Saving Small Businesses (Report #254, December 2020) Urges state government to address immediate economic impacts of the COVID-19 pandemic by working with the private sector to support small businesses. Finds that the pandemic has severely impacted California’s economy, with this impact falling most heavily on communities of color and on lower-wage, less-educated workers. Also finds that the pandemic has devastated small businesses, especially those that are minority- owned, and that helping these businesses survive and rebuild is vital to fostering and sustaining broader economic recovery. Recommends that state government compensate for a difficult budget situation that limits its ability to support those impacted by the pandemic by partnering with the private sector to promote small business recovery. Also recommends that state government provide greater leadership in coordinating and scaling initiatives that assist small businesses, especially by taking a broader and more active role in the development of the California Small Business Rebuilding Fund, a public-private partnership that makes low interest loans available to small businesses in underserved communities. 10 | LITTLE HOOVER COMMISSION Supported Legislation During each legislative session, the Commission actively supports bills that would implement its recommendations in whole or in part. experts in the field to develop and incorporate Artificial Intelligence artificial intelligence demonstration projects into the AB 594 (SALAS) state system and further advance how data science This bill requires the Director of the Department can be effectively utilized by the state. of Technology to designate a position within SB 348 (CHANG) the department to evaluate the uses of artificial This bill requires the Director of Technology to intelligence in state government and to advise develop a strategic plan to help agencies incorporate the Director on incorporating the technology into artificial intelligence into their information technology state plans, policies, and standards. The Director, plans, policies, and standards to improve state in consultation with relevant stakeholders and in services. The strategic plan must evaluate ways consideration of the Future of Work Commission’s to minimize the negative impacts of the use of recommendations, must adopt guidelines to govern artificial intelligence on agency workforces and job the use and implementation of artificial intelligence classifications. The bill also encourages the Governor technologies in state government functions covering to appoint a special adviser on artificial intelligence the ethical use of such technology, projects to to coordinate with state agencies, local governments, increase efficiency, and how artificial intelligence can and the federal government to create a statewide be used to benefit workers. In its 2018 report Artificial strategic plan for the use of artificial intelligence. Intelligence: A Roadmap for California the Commission Other state entities, including the Controller’s recommended California develop strategic plans Office, the Secretary of State’s Office, and both the for the use of artificial intelligence technology to California State University and University of California improve state services and minimize the impact of systems, are encouraged to designate chief artificial the technology on jobs and job classifications. intelligence officers to oversee the use of the AB 976 (CHAU) technology. The Commission’s 2018 report Artificial This bill establishes the Artificial Intelligence in Intelligence: A Roadmap for California urged California State Government Services Commission to gather to establish such leadership on artificial intelligence input on how artificial intelligence and data science at the state level. could be used to improve state services. Comprised Forest Management of eight members representing private industry, governments, nonprofit organizations, unions, AB 616 (PATTERSON) and academia, the Council is required to convene This bill requires the Department of Forestry annually to gather public input and propose a plan and Fire Protection, in collaboration with the to solicit artificial intelligence and data science Natural Resources Agency and the California demonstrations for critical state services and Environmental Protection Agency, to prepare and incorporate such technology into existing state submit a report to the Legislature beginning in government services. In Artificial Intelligence: A January 2021 and annually until 2024 detailing the Roadmap for California, the Commission called for progress made toward implementing the California the creation of an artificial intelligence commission Forest Carbon Plan. In its 2018 report Fire on the comprised of knowledgeable professionals and Mountain: Rethinking Forest Management in the Sierra ECONOMY & EFFICIENCY REPORT 2019-20 | 11 Nevada the Commission recommended that the including the California Workforce Development California Natural Resources Agency and California Board, the Department of Industrial Relations, Environmental Protection Agency regularly report professional associations, labor and workforce to the Legislature and post online progress on the organizations, and the Little Hoover Commission. metrics listed in the Forest Carbon Plan as well as the In its 2016 report Jobs for Californians: Strategies to steps taken to begin implementing the plan. Ease Occupational Licensing Barriers, the Commission recommended that California embrace foreign- Geographic Information trained professionals rather than erecting barriers to Systems keep them out of jobs. AB 2209 (MAYES) Salton Sea Funding in Climate This bill establishes a Geographic Information Officer Bond Proposals (GIO) to oversee the Geographic Information Office within the Department of Technology for the purpose Three bond proposals aimed at improving California’s of coordinating the state’s geographic information near- and long-term climate resiliency included systems (GIS) projects, promulgating standards for funding for mitigating the detrimental environmental data collection and sharing, and managing shared effects presented by the shrinking Salton Sea. The data resources. Additionally, AB 2209 establishes January budget proposed $220 million to support the California Geographic Information Advisory the habitat and air quality improvement projects Council, comprised of twenty-one individuals included in the 2018 Salton Sea Management Plan, representing local, federal, and tribal governments while two legislative proposals – SB 45 and AB as well as a diverse range of professions and 352 – proposed $165 and $175 million respectively backgrounds, to advise the GIO on issues of policy for Salton Sea habitat and air quality restoration and implementation. The Commission’s 2019 report projects. These legislative proposals included Mapping a Strategy for GIS recommended that additional funding to improve the conditions of the California establish a GIO and Advisory Council to New River, a tributary of the Salton Sea. In its 2015 coordinate and lead state efforts to make better use report Averting Disaster: Action Now for the Salton Sea of this technology. and in its 2016 letter report on the same topic, the Commission called for greater action to address the Occupational Licensing environmental effects of the Salton Sea through the creation of the Salton Sea Task Force and provision of AB 476 (RUBIO) additional resources for Salton Sea policy leaders. Known as the California Opportunity Act of 2019, this bill requires the Department of Consumer Affairs to create a task force to study and write a report on the licensing of foreign-trained professionals with the goal of integrating these professionals into the state’s workforce. Comprised of fifteen members including the Governor, top leaders from the Legislature and California’s higher education system, and representatives from the private sector and immigrant-serving nonprofit organizations, the task force must solicit input from a variety of stakeholders 12 | LITTLE HOOVER COMMISSION Ideas for Change from Little Hoover Generated by the Little Hoover Commission through our research over the past several years, the following recommendations have the potential to result in positive change for California. framework in advance of crisis to prevent litigation Artificial Intelligence and instability. PROBLEM: Artificial intelligence and automation are quickly changing the economic landscape. Customer-Centric Upgrade for California lacks the leadership to prepare for the State Government eventual ramifications. RECOMMENDATION: Establish a cabinet level PROBLEM: Too often, it’s not easy for Californians position on artificial intelligence, accompanied by to access critical government services. a cross-agency commission to provide leadership RECOMMENDATION: Designate and empower on addressing the various policy challenges and a California Chief Customer Officer to introduce and opportunities; require agencies to include use oversee customer-centric strategies across state of AI in strategic plans; require the Employment government. Development Department to collect and evaluate data related to jobs at-risk from new technologies. Denti-Cal PROBLEM: Swings in program funding negatively Climate Change impact Denti-Cal providers and disincentivize some PROBLEM: Climate change-induced rising tides dentists from enrolling in the program. will effectively “condemn” individual pieces of private RECOMMENDATION: Create a more consistent property and legally convert them into public lands. and stable funding mechanism that allows This will inevitably result in legal conflict between participating dentists to better manage their state government and owners of private oceanfront practice; consider using Proposition 56 funds to do property. this. Establish an evidence-based advisory group RECOMMENDATION: Clarify the impact of to oversee and advise Denti-Cal and promote an sea level rise on property rights under California’s expansion of teledentistry statewide. Common Law Public Trust Doctrine and create a legal Commissioners and staff listen to opening remarks from Senate Pro Tempore Toni Atkins at the Commission’s Public Hearing on Labor Trafficking (November 2019) ECONOMY & EFFICIENCY REPORT 2019-20 | 13 labor trafficking occurs and who is victimized; Forest Management empower state agencies to respond; provide training PROBLEM: California’s forests are overgrown to amplify detection efforts and investigations, and as a result of climate change and century-old fire step-up prosecutions. suppression methods which leave them vulnerable to Occupational Licensing disease, insects, and fire, and degrade water supply. RECOMMENDATION: Increase pace and scale of PROBLEM: Some occupational licensing forest management at the watershed level, provide requirements create barriers to entry that are not the resources to do so, and teach Californians why it justified by corresponding increases in public safety. matters. RECOMMENDATION: Review and adjust California licensing requirements that do not provide Geographic Information commensurate increases in safety. Establish “blind” Systems data collection. Create bridge education programs for people with some experience to quickly meet PROBLEM: GIS can be a powerful tool for California’s requirements. Create apprenticeship decision-makers yet remains underutilized across pathways for occupations that should be licensed government. so students can earn a wage while working to meet RECOMMENDATION: Codify the role and requirements. authority of the State Geographic Information Officer and establish a multi-agency, multi-jurisdiction body Salton Sea to help coordinate statewide GIS efforts. PROBLEM: Less water now flows into the Salton Intimate Partner Violence Sea, with serious environmental consequences. RECOMMENDATION: Enact legislation to PROBLEM: Domestic violence shelters receiving ensure any lawsuits filed in connection with short- grant funding via the state often must wait months term Salton Sea projects are resolved in a year for reimbursement of their expenditures. This strains or less. Streamline and expedite contracting; their ability to maintain overhead expenses and give engineering staff clear guidelines to ensure provide services. construction requirements align with habitat RECOMMENDATION: Provide grant funds at the restoration. beginning of the grant cycle rather than through reimbursements. Yountville Veterans Home Labor Trafficking PROBLEM: The modernization and revitalization of this vast 615-acre campus present a unique PROBLEM: Since criminalizing human trafficking, opportunity to generate new revenue to fund the state has focused on combatting sex trafficking, veterans services. neglecting those trafficked for their labor in RECOMMENDATION: Create a new, independent restaurants, agricultural fields, construction sites, and entity to lead the modernization of this campus and even private homes. empower it to plan, design, and manage all aspects RECOMMENDATION: Create a statewide council of the revitalization effort. to coordinate anti-trafficking activities; study where 14 | LITTLE HOOVER COMMISSION Letter from the Executive Director December 10, 2020 Organizations always prove their worth during times of crisis, and that has been the case this year for the Little Hoover Commission. Even as the state has suffered through the Covid-19 pandemic and the resulting state budget crisis, our Commission has adjusted to a new way of doing its work – from Zoom meetings for the Commissioners to remote work for staff members. When the Governor directed state agencies to shift to remote work last March, the Commission was on a roll. In just the previous few months, we had launched major studies of the state’s response to labor trafficking and intimate partner violence. We had held public hearings to learn from independent experts, state officials, advocates, and even survivors. We had convened stakeholders for day-long roundtables. We had been honored at two of our hearings by the presence of key legislative leaders – Senate President Pro Tem Toni Atkins and Senator Susan Rubio. To emphasize the statewide nature of our work and to learn from those on the ground, the Commission had traveled to San Diego and Los Angeles for major events. Then the pandemic hit. Like everyone else, we scrambled. The staff transitioned seamlessly to full-time remote work. The Commissioners adjusted to hearing from witnesses virtually rather than in person. We all, to be honest, made it up as we went along. But we did not miss a beat. In fact we picked up the pace. Since travel was no longer required, the Commission began to meet more often. Since the start of May, the Commission has met more than a dozen times, more than it met previously in an entire year. We launched a blog to call attention to the ways in which our past work remains relevant. The Commissioners and the staff have produced a blizzard of op-eds, public statements, and social media posts to spread the word about our work. We introduced Issue Briefs, a new resource for state leaders that provides in-depth overviews of key challenges facing California. We have released eight reports, with more in the works. Perhaps most important of all for the long-term health and productivity of the Commission, we have filled three vacancies on the Commission’s seven-member staff just since the start of 2020, giving us a full complement of staff for the first time in years. In short, just as the world seemed to throw up constant obstacles, the Commission and the staff responded with consistent performance. I thank them all. This is not just boasting, for the Commission’s work is now more critical than ever. As California struggles to address larger problems with fewer resources, the need only grows for an independent voice on behalf of reform, efficiency, and improved public service. For the reasons discussed by our Chairman on page 3, the Little Hoover Commission is that voice. As we transition into a new year, we are already working to ensure that the Commission engages critical issues, and does so in a way that is relevant to our state’s policymakers. We will work to implement change in how our state responds to crucial issues like trafficking and intimate partner violence. We will make new recommendations about how to ensure a fair and equitable recovery from the pandemic recession. We will focus on ways to make state government more efficient, such as increasing remote work. We won’t let up in trying to create, as our Governor likes to say, a better California for all. Last, a personal note: All of the work described above should be seen as a tribute to my predecessor as executive director, Carole D’Elia. I knew Carole, and I can truly say that her passing in 2017 deprived the Commission and its staff of a devoted leader, a kind friend, and a true believer in the mission. By continuing on with our critically important work, even amid these challenging times, we hope to both honor her memory and strengthen our state. Ethan Rarick Executive Director, Little Hoover Commission ECONOMY & EFFICIENCY REPORT 2019-20 | 15 Meet our Team CHAIRMAN PEDRO NAVA ASSEMBLYMEMBER CHAD MAYES D-Santa Barbara NPP-Yucca Valley Appointed to the Commission by Speaker of the Assembly Appointed to the Commission by Speaker of the John Pérez in April 2013 and reappointed by Speaker Assembly Toni Atkins in September 2015. Elected of the Assembly Anthony Rendon in 2017. Government in November 2014 to represent the 42nd Assembly relations advisor. Former State Assemblymember from District. Represents Beaumont, Hemet, La Quinta, 2004 to 2010, civil litigator, deputy district attorney and Palm Desert, Palm Springs, San Jacinto, Twentynine member of the state Coastal Commission. Elected chair of Palms, Yucaipa, Yucca Valley, and surrounding areas. the Commission in March 2014. SENATOR JIM NIELSEN VICE CHAIRMAN SEAN VARNER R-Gerber R-Riverside Appointed to the Commission by the Senate Rules Appointed to the Commission by Governor Edmund G. Committee in March 2019. Elected in January 2013 Brown Jr. in April 2016 and reappointed in January 2018. to represent the 4th Senate District. Represents Managing partner at Varner & Brandt LLP where he Chico, Oroville, Paradise, Red Bluff, Yuba City, and practices as a transactional attorney focusing on mergers surrounding areas. and acquisitions, finance, real estate, and general counsel work. Elected vice chair of the Commission in March 2017. ASSEMBLYMEMBER BILL QUIRK D-Hayward DION ARONER Appointed to the Commission by Speaker of the D-Berkeley Assembly Anthony Rendon in 2017. Elected in Appointed to the Commission by the Senate Rules November 2012 to represent the 20th Assembly Committee in April 2019. Partner for Aroner, Jewel, District. Represents Hayward, Union City, Castro and Ellis. Former State Assemblymember from 1996 to Valley, San Lorenzo, Ashland, Cherryland, Fairview, 2002, chief of staff for Assemblymember Tom Bates, Sunol, and North Fremont. social worker for Alameda County, and the first female president of Service Employees International Union 535. SENATOR RICHARD ROTH D-Riverside DAVID BEIER Appointed to the Commission by the Senate Rules D-San Francisco Committee in February 2013. Elected in November Appointed to the Commission by Governor Edmund G. 2012 to represent the 31st Senate District. Brown Jr. in June 2014 and reappointed in January 2018. Represents Corona, Coronita, Eastvale, El Cerrito, Managing director of Bay City Capital. Former senior Highgrove, Home Gardens, Jurupa Valley, March Air officer of Genentech and Amgen, and counsel to the U.S. Reserve Base, Mead Valley, Moreno Valley, Norco, House of Representatives Committee on the Judiciary. Perris, and Riverside. CYNTHIA BUIZA CATHY SCHWAMBERGER DTS-Los Angeles NPP-Calistoga Appointed to the Commission by Speaker of the Assembly Appointed to the Commission by the Senate Rules Anthony Rendon in October 2018. Executive director of Committee in April 2018 and reappointed in January the California Immigrant Policy Center. Former policy 2019. Associate general counsel for State Farm director for the American Civil Liberties Union, San Diego, Mutual Automobile Insurance Company. Former and policy and advocacy director at the Coalition for board member of the Civil Justice Association of Humane Immigrant Rights of Los Angeles. California and the Capital Political Action Committee. BILL EMMERSON JANNA SIDLEY NPP-Redlands D-Los Angeles Appointed to the Commission by Governor Edmund G. Appointed to the Commission by Governor Edmund Brown Jr. in December 2018. Former senior vice president G. Brown Jr. in April 2016 and reappointed in of state relations and advocacy at the California Hospital February 2020. General counsel at the Port of Los Association, State Senator from 2010 to 2013, State Angeles since 2013. Former deputy city attorney at Assemblymember from 2004 to 2010, and orthodontist. the Los Angeles City Attorney’s Office from 2003 to 2013. 16 | LITTLE HOOVER COMMISSION Former Commissioners Who Served in 2019-20 Iveta Brigis D-Los Gatos April 2017-April 2019 Staff Commission staff arrange meetings, conduct research, draft reports, advocate for recommendations and provide full-time representation for the Commission. Staff members are available by phone at (916) 445-2125 or by email at: Ethan Rarick, Executive Director Sherry McAlister, Administrative Analyst Ethan.Rarick@lhc.ca.gov Sherry.McAlister@lhc.ca.gov Tamar Foster, Deputy Executive Director Rachel Mattioli, Research Analyst Tamar.Foster@lhc.ca.gov Rachel.Mattioli@lhc.ca.gov Krystal Beckham, Project Manager Ashley Hurley, Research Analyst Krystal.Beckham@lhc.ca.gov Ashley.Hurley@lhc.ca.gov Tristan Stein, Project Manager Tristan.Stein@lhc.ca.gov Commissioner Cynthia Buiza with attendees at the Commissioners David Beier, Bill Emmerson, and Senator Commission’s Public Hearing on Labor Trafficking Roth speak before the start of the Commission’s Public (November 2019) Hearing on Labor Trafficking (November 2019) ECONOMY & EFFICIENCY REPORT 2019-20 | 17 Commissioners through the Decades Katcho Achadjian 2011-15 Robert J. DeMonte 1975-77 H. Herbert Jackson 1968-77 Michael E. Alpert 1994-97, 1997-2007 C. E. Dixon 1969-70 Michael E. Kassan 1983-87 Alfred E. Alquist 1969-96 Clifford Duke 1967-68 Loren Kaye 2006-16 Eloise Anderson 2006-10 Virginia Ellis 2011-14 Christine Kehoe 2003-04 Dion Aroner 2019-present Bill Emmerson 2013, 2018-present James E. Kenney 1967-75 Roy Ashburn 2009-10 David J. Epstein 2002-06 Lucy Killea 1993-96 Patricia Bates 2003-04 Harry Farb 1975 Nancie B. Knapp 1978-86 Charles G. Bakaly, Jr. 1994-98 Benjamin Felton 1981-82 John T. Knox 1962-65 Joseph Ball 1967-68 Jack R. Fenton 1967-81 Quentin L. Kopp 1997-98 Scott Barnett 2016-17 Gil Ferguson 1992-94 Louis J. Kroeger 1967 David Beier 2014-present Liz Figueroa 2005-06 Joshua Lafarga 2017-18 Marjorie M. Berte 1998 Jack Flanigan 2012-17 Andrew L. Leavitt 1969-75 Harry Blackman 1967-69 Gordon Fleury 1968 Eugene C. Lee 1962-63 James Bouskos 1982-85 Dean Florez 2007-11 Don B. Leiffer 1963-67 Victoria Bradshaw 2010-12 Edward R. Fryer 1977-79 Donald L. Livingston 1975-79 Marilyn C. Brewer 2006-12 Harold Furst 1963-67, 1968-75 Walter H. Lohman 1969-71, 1971-75 Iveta Brigis 2017-19 Marshall Geller 2008-11 Welton C. Mansfield 2003-07 Ryan L. Brooks 2007-10 Arthur F. Gerdes 1990-94 Haig G. Mardikian 1984-93 Cynthia Buiza 2018-present Albert Gersten, Jr. 1981-94 Bob Margett 2007-09 Hugh M. Burns 1969 Pier A. Gherini, Jr. 1994-98 Milton Marks 1962-66, 1968-93 Howard A. Busby 1967-75 Mike Gordon 2005 Diane Martinez 1997-98 Paul L. Byrne 1962 Richard E. Gulbranson 1988-89 Chad Mayes 2015-present Thomas Caldecott 1967-68 Anthony P. Hamann 1970-71 Stanley E. McCaffrey 1968-69 Bill Campbell 1999-2000, 2001-02 Daniel W. Hancock 1997-2005, 2006-13 Patrick D. McGee 1967-70 Anthony Cannella 2014-18 Dixon R. Harwin 1979-82 Carole V. Migden 2007 Mary Anne Chalker 1982-83, 1985-95 Sally Havice 1998-2001 George Miller, Jr. 1962-68 Maurice Rene Chez 1976-81 Richard D. Hayden 1977-81 Eugene “Mitch” Mitchell 2004-12 Dominic L. Cortese 1996 Martin F. Helmke 2007-11 Ernest N. Mobley 1970-76 Kenneth Cory 1994 Harold C. Henry 1971-76 Stuart G. Moldaw 2002-06 Carl D. Covitz 1993-2001 D. W. Holmes 1967-71 Gwen Moore 1984-95, 1995-99 George E. Danielson 1965-67 Gary H. Hunt 1998-2000 James F. Mulvaney 1979-82 David P. Dawson 1977-79 Alyson Huber 2010-13 Mark Nathanson 1983-85 18 | LITTLE HOOVER COMMISSION Pedro Nava 2005, 2013-17, James Rogan 2006 Richard Terzian 1986-2002 2017-present Richard Roth 2013-present Helen Torres 2016-18 Jim Nielsen 2019-present Alan E. Rothenberg 1977-78 Richard S. Trugman 1979-83 Jennifer A. Openshaw 2001-04 Michael J. Rubio 2011-13 Juan Vargas 2001-03 Verne Orr 1975 H. Eric Schockman 2000-03 Mark Vargas 2012-13 M. Lester O’Shea 1984-88 Cathy Schwamberger 2018-present Sean Varner 2016-present Angie Papadakis 1990-2000 David A. Schwarz 2007-16 John Vasconcellos 1997-04 George E. Paras 1987-90 Jonathan Shapiro 2010-17 Frank Vicencia 1981-83 Don Perata 2014-15, 2015-19 Nathan Shapell 1968-97 Jean Kindy Walker 1978-87 Charles S. Poochigian 1996-98, 1999- Richard E. Sherwood 1962-67 Sean Walsh 1999-2002 2006 Janna Sidley 2016-present Paul D. Ward 1975-76 Manning J. Post 1962-69, 1971-83 Roy Sorenson 1962-66 Carmen H. Warschaw 1976-78 Sol Price 1962-63 Sumi Sousa 2013-15 Louis Warschaw 1975-76 Tom Quinn 2012-13 Jackie Speier 1994-96 Howard Way 1965-68 Bill Quirk 2017-present Abraham Spiegel 1986-94 Caspar W. Weinberger 1967-68 Leslie “Teddie” A. Ray 2003-07 Barbara Stone 1987-94 Mark Wyland 2011-13 Philip J. Reilly 1979-80 Phillip D. Wyman 1981-92, 2001 Audra Strickland 2005-10 Anthony Rendon 2013-15 Bruce Young 1983-85 Vernon Sturgeon 1962-65 Lloyd Rigler 1975-79 Stanley R. Zax 1994-2007 Dair Tandy 1962-67 Sebastian Ridley-Thomas 2015-17 Stanley M. Zimmerman 2000-04 F. D. Tellwright 1962-67 Joseph Rodota 2004-05 Commissioners Aroner and Emmerson listen to an Chairman Pedro Nava speaks during the Commission’s attendee speak at the Intimate Partner Violence Advisory Public Hearing on Housing Costs (January 2020) Committee Meeting (January 2020) ECONOMY & EFFICIENCY REPORT 2019-20 | 19 “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, April 24, 1962, Sacramento California Milton Marks Commission on California State Government Organization and Economy www.lhc.ca.gov