Background and Analysis of Governor's Reorganization Plan No. 1 of 1984

--- Page 1 --- GEORGE DEUKMEJIAN, Governor STATE OF CALIFORNIA COMMISSION ON CALIFORNIA STATE GOVERNMENT ORGANIZATION AND ECONOMY 11th & L Building, Suite 550, (916) 445-2125 Sacramento 95814 April 27, 1984 Chairman NATHAN SHAPELL Vice-Chairman JAMES M. BOUSKOS ALFRED E. ALQUIST Senator ALBERT GERSTEN, JR. MICHAEL E. KASSAN BROOKE KNAPP HAIG G MARDIKIAN Honorable George Deukmejian Governor of California MILTON MARKS Senator MARK NATHANSON Honorable David A. Roberti Honorable James Nielsen M. LESTER O'SHEA President pro Tempore of the Senate Senate Minority Floor Leader JEAN KINDY WALKER and Members of the Senate PHILLIP D. WYMAN Assemblyman Honorable Willie L. Brown, Jr. Honorable Robert W. Naylor BRUCE YOUNG Speaker of the Assembly Assemblyman Assembly Minority Floor Leader and Members of the Assembly RICHARD C. MAHAN Executive Director Dear Governor and Members of the Legislature: On March 9, 1984 Governor Deukmejian submitted to this Commission Re- organization Plan No. 1 of 1984. This plan is concerned with the further consolidation of non-merit and primarily non-merit State per- sonnel management functions within the Department of Personnel Admin- istration (DPA). As you are aware, the DPA was formed in 1981 by that year's Governor's Reorganization Plan No. 1. This reorganization was in substantial compliance with the recommendations of our Commission's comprehensive study of the State civil service system reported in August 1979 as "Personnel Management in the State Service." We recommended the form- ation of the cabinet-level department (DPA) created by the Governor's reorganization to represent State management in periodic collective bargaining and the day-to-day administration of negotiable personnel functions. The 1981 plan transferred the responsibility for administer- ing salaries, benefits, vacation, sick leave, layoff, training, and other bargainable personnel functions from the State Personnel Board (SPB) to the DPA. Although our report recommended that specified personnel management functions including position classification authority should be con- solidated in what is now the DPA, the SPB currently retains this function. The current reorganization plan proposes to transfer class- ification functions that are closely related to pay from the SPB to the DPA, thus consolidating the major elements of State personnel costs in a single agency responsible to the Governor. (This letterhead not printed at taxpayer's expense) --- Page 2 --- -2- Our Commission held a public hearing on the Governor's proposed re- organization plan on April 26, 1984. We determined that the plan has the approval of the SPB, the California State Employees' Association and other organizations having an interest in personnel management activities of the State's civil service system. Additionally, we determined that the plan has the following benefits: It would permit greater flexibility in employer-employee collective bargaining concerning fiscal issues which de- termine personnel costs. It would avert some future costs associated with the re- solution of certain charges of unfair labor practices brought to the Public Employment Relations Board. It would not conflict with Article VII of the State Con- stitution which makes the SPB the final approval authority for the establishment, revision or deletion of personnel classifications. We are pleased to report that this plan received the unanimous en- dorsement of our Commission. We heartily recommend that the Legis- lature permit the Reorganization Plan No. 1 of 1984 to become effective on July 1, 1984 in accordance with Government Code Section 12080.5. Respectfully submitted, NATHAN SHAPELL, Chairman Jámes M. Bouskos, Vic∉ Chairman Senator Alfred E. Alquist Albert Gersten, Jr. Michael E. Kassan Brooke Knapp Haig G. Mardikian Senator Milton Marks Mark Nathanson M. Lester O'Shea Jean Kindy Walker Assemblyman Phillip D. Wyman Assemblyman Bruce Young