ASSEMBLY BUDGET SUBCOMMITTEE
SEVEN ON ACCOUNTABILITY AND
OVERSIGHT. THINGS ARE HEATING UP
HERE IN SACRAMENTO, SO I'M
HOPEFUL THAT EVERYBODY IS
STAYING COOL AFTER HOURS AND
TRYING TO GET AS MUCH REST OF
THIS HEAT SEASON AS POSSIBLE.
THIS IS AN INFORMATIONAL HEARING
ONLY, AND WE WILL NOT BE TAKING
ANY VOTES TODAY. JUST OVER A
MONTH AGO, CALIFORNIA PASSED ITS
2024 2025 STATE BUDGET FOR THE
CURRENT FISCAL YEAR. FACED WITH
THE SIGNIFICANT BUDGET DEFICIT,
THE GOVERNOR AND THE LEGISLATURE
NEGOTIATED VARIOUS SOLUTIONS TO
ADOPT A FINAL BALANCED STATE
BUDGET, ENSURING THE PROTECTIONS
OF ESSENTIAL PROGRAMS FOR
CALIFORNIANS MOST IN NEED OF
ASSISTANCE WAS A PRIORITY OF
OURS. ONE OF THE BUDGET
SOLUTIONS INVOLVES A NEARLY 8%
REDUCTION IN STATE OPERATION
BUDGETS FROM THE GENERAL FUND.
ADDITIONALLY, THIS MEASURE ALSO
INCLUDES SWEEPING FUNDS FROM
NUMEROUS VACANT POSITIONS. THESE
STEPS ARE DESIGNED TO STREAMLINE
OPERATIONS AND ENSURE THAT
ESSENTIAL SERVICES REMAIN
UNAFFECTED. DESPITE THE BUDGET
CUTS THAT WERE MADE. THE BUDGET
SPECIFIES THAT THESE REDUCTIONS
CANNOT AFFECT EXISTING STATE
EMPLOYEE LABOR AGREEMENTS OR
COLLECTIVE BARGAINING RIGHTS.
THESE TWO BUDGET MEASURES
COLLECTIVELY TOTAL ABOUT 10% OF
STATE OPERATION COSTS FROM THE
GENERAL FUND, AND ABOUT $3
BILLION OF THE 2024 2025 BUDGET
SAVINGS. TO ACHIEVE THESE
REDUCTIONS WITHOUT COMPROMISING
THE DELIVERY OF SERVICES, THE
STATE MUST ENHANCE ITS
OPERATIONAL EFFICIENCY. TODAY'S
HEARING WILL FOCUS ON JUST THAT.
THE GOVERNOR HAS PROPOSED A
BUDGET TRAILER BILL MAKING
CHANGES IN HOW THE STATE
DEPARTMENT OF GENERAL SERVICES
MANAGES STATE PUBLIC WORK
PROJECTS AND OVERSEES STATE
CONTRACTS FOR SERVICES TO BRING
ABOUT GREATER EFFICIENCIES IN
THESE OPERATIONS. I LOOK FORWARD
TO THE DISCUSSION TODAY. NOW,
I'D LIKE TO OPEN UP THE FLOOR TO
OUR FELLOW COLLEAGUES IF THEY
HAVE ANY OPENING COMMENTS.
GOT IT. OH, THERE WE GO NOW.
THANK YOU. WELCOME, EVERYONE,
AND THANK YOU FOR THE
OPPORTUNITY TO SIT IN TODAY, I
LOOK FORWARD TO THE CONVERSATION
AND LOOK FORWARD TO MANY MORE.
OPPORTUNITIES TO ENGAGE. AND I
REALLY APPRECIATE THE INVITATION
TO BE HERE TODAY. THANK YOU.
ABSOLUTELY. ASSEMBLY MEMBER
RUBIO. THANK YOU. AND YOUR
TENACITY IN THE LEGISLATURE WHEN
IT COMES TO GOVERNMENT
EFFICIENCY HAS ALWAYS BEEN SPOT
ON. SO THANK YOU FOR
PARTICIPATING TODAY, NOW, I'D
LIKE TO WELCOME AND INTRODUCE
OUR WITNESSES TO TODAY'S
HEARING, PRESENTING THE
ADMINISTRATION'S GOVERNMENT
EFFICIENCY PROPOSAL IS DANIEL
BRANDON WITH THE DEPARTMENT OF
FINANCE. AND HERE TO PROVIDE
COMMENT TO ANSWER ANY TECHNICAL
QUESTIONS. LUKE KUSHMARO FROM
THE LEGISLATIVE ANALYST'S OFFICE.
AND, MISS BRANDON. GOOD MORNING.
WELCOME. COULD YOU PLEASE
DESCRIBE THE COMMITTEE TO THE
COMMITTEE, THE PROVISIONS OF THE
PROPOSAL AND HOW IT ACHIEVES
BUDGET SAVINGS IN STATE
GOVERNMENT OPERATIONS AS
ANTICIPATED IN THE BUDGET
NEGOTIATIONS? GREAT YES, I CAN.
GOOD MORNING, CHAIR VALENCIA
MEMBERS. DANIELLE BRANDON WITH
THE DEPARTMENT OF FINANCE AND
THE PROPOSED TRAILER BILL BEFORE
YOU THIS MORNING, IF ADOPTED,
WILL ALLOW THE DEPARTMENT OF
GENERAL SERVICES TO MORE
EFFICIENTLY FULFILL ITS DUTIES
RELATED TO PUBLIC WORKS
PROJECTS, JOB JOB ORDER,
CONTRACTING AND CONTRACTING
OVERSIGHT. I WANTED TO NOTE THAT
THIS VERSION BEFORE YOU TODAY IS
A PARED DOWN VERSION. IT'S,
ELIMINATING SOME PREVIOUS
SECTIONS FROM OUR JUNE FIRST
TRAILER. BILL, POSTED ONLINE. IT
NO LONGER INCLUDES PROVISIONS
RELATED TO INCREASING LEASING,
DELEGATION, OR EXPANSION OF
PROGRESSIVE DESIGN, BUILD OR
STUDY FOR THE OFFICE OF STATE
PUBLISHING. IT DOES INCLUDE FOUR
PROVISION PROVISIONS STILL
THERE. IT PROVIDES BROADER
AUTHORITY TO DELEGATE PUBLIC
WORKS PROJECTS, AND FOR THIS
SECTION, MOST STATE DEPARTMENTS
LACK AUTHORITY TO CONTRACT FOR
PUBLIC WORKS PROJECTS,
NECESSITATING NECESSITATING DGS
TO UNDERTAKE PROJECTS ON THEIR
BEHALF. DEPENDING UPON STAFFING
LEVELS AND THE NUMBER OF
PROJECTS FUNDED BY BOTH THE
LEGISLATURE AND DEPARTMENTS AS
PART OF THEIR SUPPORT BUDGETS,
SOME PROJECTS MUST BE PLACED ON
A BACKLOG. UNDER CURRENT
STATUTE, DGS ABILITY TO DELEGATE
PROJECTS IS BOTH PROJECT
SPECIFIC AS WELL AS LIMITED IN
AMOUNT. THIS PROPOSAL WOULD
EXPAND DGS AUTHORITY TO DELEGATE
PROJECTS TO DEPARTMENTS CAPABLE
OF EXECUTING THOSE PROJECTS
SUCCESSFULLY, WHILE STILL
REQUIRING DGS SUPERVISION AND
INSPECTION. THE LANGUAGE
REQUIRES THE DEPARTMENT OF
FINANCE APPROVAL FOR PROJECT
DELEGATIONS, WHERE TOTAL PROJECT
COSTS EXCEED $3 MILLION AND ONLY
FOR PROJECTS DELIVERED DIRECTLY
BY A STATE AGENCY. THIS WILL
ALLOW FOR A SPEEDIER DELIVERY OF
PROJECTS WHILE ALLOWING DGS TO
FOCUS ON THOSE PUBLIC WORKS THAT
ARE MORE DIFFICULT TO ADDRESS.
THE NEXT SECTION IS JOB ORDER
CONTRACTING FOR DGS. THE DEFAULT
METHOD FOR PUBLIC WORKS IN
STATUTE IS DESIGN BID BUILD.
HOWEVER, DESIGN BID BUILD IS THE
MOST TIME CONSUMING DELIVERY
METHOD. INCREASING COSTS IN THE
LONG TERM DUE TO COST ESCALATION
OR INFLATION. DESIGN. BID BUILD
ALSO REQUIRES MORE DESIGN
SERVICES THAN WHAT IS STRICTLY
NECESSARY, FOR SOME PROJECTS.
FURTHER DRIVING UP COSTS
AUTHORIZING DGS TO UTILIZE JOB
ORDER CONTRACTING WILL ALLOW DGS
TO RAPIDLY ADDRESS SMALL,
IMPORTANT, BUT NON-EMERGENCY
PROJECTS THAT ARE NECESSARY TO
KEEP BUILDINGS FUNCTIONAL AND TO
ADDRESS RAPID CHANGES IN OFFICE
NEEDS, REDUCING DEFERRED
MAINTENANCE AND EMERGENCY WORK,
THEREBY REDUCING COSTS. JOB
ORDER CONTRACTING IS AN
ESTABLISHED CONSTRUCTION
DELIVERY METHOD THAT IS ALREADY
IN USE BY OTHER STATE AGENCIES
AND PUBLIC ENTITIES. IT IS A
COMPETITIVE BID, FIXED PRICE,
INDEFINITE QUANTITY CONTRACT FOR
THE PERFORMANCE OF MINOR
CONSTRUCTION. THIS EFFECTIVELY
PRE BIDS PROJECTS SAVING TIME
WITHOUT LOSING THE COST
ADVANTAGE OF COMPETITIVE
BIDDING. THIS ALSO EFFECTIVELY
COMBINES WHAT WOULD OTHERWISE BE
MULTIPLE PROJECT SPECIFIC BIDS
INTO A SINGLE MULTIYEAR
SOLICITATION. DGS HAS WORKED
WITH LABOR STAKEHOLDERS ON THE
VERSION OF THE JOB ORDER
CONTRACTING PRESENTED TO YOU
HERE TODAY, WHICH IS DIFFERENT
THAN WHAT WE PROVIDED IN JUNE,
AND IT'S TO ENSURE THE JOB
ORDERING. CONTRACTING DOES NOT
CONFLICT WITH EXISTING LABOR
PROTECTIONS. NEXT SECTION IS
LIMITING DGS REVIEW OF LOW
DOLLAR EXPERT WITNESS CONTRACTS.
EXISTING LAW REQUIRES
DEPARTMENTS TO SUBMIT VERY LOW
DOLLAR VALUE CONSULTING
CONTRACTS TO DGS FOR REVIEW AND
APPROVAL, MANY OF WHICH ARE FOR
EXPERT WITNESSES FOR LITIGATION.
THESE CONTRACTS ARE ALREADY
EXEMPT FROM ADVERTISING AND
BIDDING, ELIMINATING THE
REQUIREMENT FOR DGS REVIEW OF
THESE LOW DOLLAR VALUE, LOW RISK
CONTRACTS WILL STREAMLINE THE
CONTRACT REVIEW PROCESS. THIS
PRIMARILY IMPACTS DEPARTMENTS
WHO RETAIN SUCCESSIVE EXPERT
WITNESSES FOR LITIGATIONS SUCH
AS CALTRANS AND THE DEPARTMENT
OF JUSTICE. DGS WILL STILL
REVIEW CONSULTING CONTRACTS, BUT
NOT AT THE SAME LEVEL AS ALL
SERVICE CONTRACTS. ALL OTHER
SERVICE CONTRACTS, WHICH IS
$50,000 OR LESS UNLESS THE
DEPARTMENT HAS BEEN APPROVED FOR
A HIGHER EXEMPTION PURSUANT TO
THE CHANGES WE ARE REQUESTING IN
THIS NEXT SECTION, WHICH IS
ENCOURAGED, DEPARTMENTS TO SEEK
THE $150,000 CONTRACT EXEMPTIONS
EXIST. EXISTING LAW ALLOWS DGS
TO PROVIDE CONTRACT REVIEW
EXEMPTIONS TO DEPARTMENTS TO
RECEIVE AN EXEMPTION,
DEPARTMENTS MUST CONDUCT AUDITS
EVERY TWO YEARS, AND DGS OFFICE
OF AUDIT SERVICES MUST PERFORM
QUALITY ASSURANCE REVIEWS OF
THESE AUDITS. DGS INTENDS TO
ENCOURAGE OTHER DEPARTMENTS TO
SEEK THIS EXEMPTION IN ORDER TO
ACCOMMODATE THE POTENTIAL
INCREASED WORKLOAD TO OES. THIS
PROPOSAL WOULD INCREASE THE
CURRENT TWO YEAR AUDIT
REQUIREMENT TO EVERY THREE
YEARS. OAS WOULD ISSUE SIX YEAR
EXEMPTIONS INSTEAD OF FOUR YEAR
EXEMPTIONS, AND PERFORM THE I'M
SORRY AND PERFORM THE QUALITY
ASSURANCE REVIEWS EVERY THREE
YEARS AS WELL. INSTEAD OF TWO.
THIS WOULD ALIGN WITH THE THREE
YEAR CYCLE FOR OTHER AUDIT
WORKLOAD AND WOULD ENABLE OAS TO
CONTINUE TO CONDUCT THESE
REVIEWS WITHIN THEIR EXISTING
RESOURCES. THIS WOULD REDUCE
CONTRACT REVIEW WORKLOAD FOR DGS
LEGAL OFFICE OF LEGAL SERVICES,
AND WOULD ALSO ENABLE DGS TO
FOCUS AVAILABLE CONTRACT REVIEW
RESOURCES ON HIGHER DOLLAR,
HIGHER RISK CONTRACTS. BY MAKING
THIS ADMINISTRATIVE CHANGE, DGS
WILL BE ABLE TO BETTER ENCOURAGE
DEPARTMENTS TO SEEK THIS
ALLOWABLE EXEMPTION WITHOUT
OVERWHELMING DGS. OFFICE OF
LEGAL SERVICE WITH AUDIT
WORKLOAD, WHICH WOULD REQUIRE
ADDITIONAL RESOURCES, THAT IS
THE END OF MY OVERVIEW OF THE
TRAILER BILL. I'M JOINED WITH
REPRESENTATIVES FROM THE
DEPARTMENT OF GENERAL SERVICES
TODAY TO ADDRESS ANY QUESTIONS
YOU HAVE. THANK YOU. WONDERFUL.
THANK YOU, MISS BRANDON. AND A
MOUTHFUL, TO SAY THE LEAST, WHEN
IT COMES TO GOVERNMENT
EFFICIENCY AND IMPROVING OUR
SYSTEMS, SOMETIMES THE TOPICS
AREN'T AS SEXY AS MAYBE OTHER
TOPICS THAT FLOAT AROUND HERE IN
THE LEGISLATURE, BUT THEY
CERTAINLY DO GET ME GOING IN THE
MORNING. SO REALLY APPRECIATE
THIS. AND I THINK THIS IS GOING
TO BE A GOOD PIECE OF POLICY
THAT WE IMPLEMENT, MR. BRANDON,
EXCUSE ME, MR. KISHIMOTO, DO YOU
HAVE ANYTHING TO ADD TO THIS?
SURE THANK YOU. LUKE KUSHMARO
WITH THE LEGISLATIVE ANALYST
OFFICE. WE HAVE A FEW COMMENTS
REGARDING THE TRAILER BILL, AS
WELL AS SOME MORE GENERAL
COMMENTS REGARDING HOW IT
RELATES TO THE UNALLOCATED
REDUCTION TO STATE OPERATIONS
THAT WAS INCLUDED IN THE BUDGET.
REGARDING THE TRAILER BILL
LANGUAGE BASED ON OUR INITIAL
REVIEW, WE DO NOT HAVE CONCERNS
WITH THE PROPOSED LANGUAGE.
HOWEVER, WE NOTE THAT THE
PROPOSAL INCLUDES A SIGNIFICANT
AND ONGOING EXPANSION TO JOB
ORDER CONTRACTING AUTHORITY. THE
LEGISLATURE COULD CONSIDER
INCLUDING A REPORTING
REQUIREMENT OR SUNSET PROVISIONS
TO BE ABLE TO ASSESS THE
IMPLICATIONS OF HOW THE EXPANDED
AUTHORITY IS USED BEFORE MAKING
IT PERMANENT. IN SIMILAR CASES
IN THE PAST, WHEN CONTRACT
AUTHORITY HAS BEEN EXPANDED,
SUCH ACTIONS WERE TAKEN. WE ALSO
NOTE THAT THE ADMINISTRATION HAS
INDICATED THAT THE PROPOSED
CHANGES TO THE DELEGATION OF
PUBLIC WORK PROJECTS WOULD NOT
BE USED FOR CAPITAL OUTLAY
PROJECTS, WHICH WOULD CONTINUE
TO NEED TO BE APPROVED THROUGH
THE BUDGET PROCESS, MORE
BROADLY, REGARDING THE
UNALLOCATED REDUCTION TO STATE
OPERATIONS, THE BUDGET ACT,
PASSED IN JUNE, INCLUDES AN
UNALLOCATED ONGOING GENERAL FUND
REDUCTION OF OVER $2 BILLION. WE
BELIEVE THAT THERE IS MERIT TO
THE STATES SEEKING TO IDENTIFY
OPERATIONAL EFFICIENCIES IN
STATE GOVERNMENT, BOTH TO
ACHIEVE SAVINGS AND WITH THE
OVERALL GOAL OF USING TAXPAYER
DOLLARS MORE EFFECTIVELY, THE
CHANGES, INCLUDING THIS PROPOSAL,
COULD HELP ADDRESS SOME OF THESE
EFFICIENCIES. WE DO NOT HAVE
ESTIMATES ON THE AMOUNT OF
SAVINGS THAT COULD RESULT FROM
THESE, BUT WE DO THINK THEY
COULD PLAY A SMALL ROLE IN
HELPING TO ACHIEVE THE STATE
SAVINGS TARGET, AS WE HAVE
DISCUSSED IN PRIOR HEARINGS BACK
IN MAY, WE THINK THERE IS RISK
THAT THE LEVEL OF SAVINGS
ASSUMED IN THE BUDGET FROM THE
UNALLOCATED REDUCTIONS WILL NOT
MATERIALIZE IN 2425, WHICH COULD
LEAD TO LARGER BUDGET CHALLENGES
IN THE FUTURE, WE DO NOTE THAT
THERE ARE REPORTING REQUIREMENTS
THAT WERE INCLUDED IN THE
BUDGET, WHICH WILL INCREASE THE
LEGISLATURE'S ABILITY TO PROVIDE
OVERSIGHT OF THE
ADMINISTRATION'S EFFORTS TO
ACHIEVE THESE GOALS. THANK YOU.
AND HAPPY TO ANSWER ANY
QUESTIONS. WONDERFUL. THANK YOU,
MR. KUSHMARO. REALLY APPRECIATE
THAT INFORMATION. NOW, I'D LIKE
TO TURN IT OVER TO OUR COMMITTEE
MEMBERS, IF THEY HAVE ANY
QUESTIONS FOR THE PANEL. SENATOR
QUIRK-SILVA, YES, GOOD MORNING
AND THANK YOU FOR YOUR COMMENTS.
AND AS THE BUDGET SUB CHAIR OF
SUB FIVE, I KNOW THAT YOU MADE
REMARKS IN OUR COMMITTEE AND
SOME OF THE INDIVIDUALS HERE AND
THIS HEARING IS EXACTLY WHAT WE
ARE TRYING TO ESTABLISH GOING
FORWARD. KNOWING THE REALLY
TOUGH BUDGET, CYCLE THAT WE HIT
THIS YEAR. AND OUR ANTICIPATED
PERHAPS IN THE FUTURE. SO WHEN
I'M LOOKING AT THE GOAL, WHICH
IS TO THESE EFFICIENCIES WOULD
HELP GENERATE OVER 2.7 BILLION
IN SAVINGS. CAN YOU EXPAND ON
THAT AS FAR AS, A LITTLE BIT
MORE CONTEXT THERE AND A
TIMELINE? SURE. AND THANK YOU
FOR THAT QUESTION. MEMBERS.
QUIRK-SILVA, JUST YOU WANT TO
POINT OUT THAT THE, EFFICIENCIES
PRESENTED HERE IN THIS TRAILER
BILL ARE PROVIDED AS A TOOL TO
HELP THE STATE REACH THAT TOTAL
SAVINGS GOAL OF 2.7. IT IS NOT
THE ONLY TOOL OR NOT THE ONLY
WAY FOR DEPARTMENTS TO REACH
THAT. AND AS FAR AS REACHING
THAT, WE HAVE HAVE BEGUN THE
PROCESS OF WE ARE MAKING
PROGRESS TOWARDS IMPLEMENTING
CONTROL. SECTION 4.05. WE HAVE
ISSUED BUDGET LETTER, WHICH IS
GUIDANCE TO DEPARTMENTS TO START
PLANNING FOR THE ANTICIPATED
REDUCTION. AND WE HAVE ALSO BEEN
WORKING ON PROVIDING ADDITIONAL
GUIDANCE, WHICH SHOULD BE ISSUED
IN IN THE NEAR FUTURE IN THE IN
THE COMING WEEKS FOR DEPARTMENTS
ON EXACTLY WHAT THEIR TARGETS
ARE AND SOME TOOLS ON HOW TO
REACH THOSE. I WILL NOTE THAT WE
WILL BE PROVIDING MORE
INFORMATION TO THE LEGISLATURE,
TO THE JLBC JOINT LEGISLATIVE
BUDGET COMMITTEE ON WHAT THAT
GUIDANCE LOOKS LIKE ON OR BEFORE
OCTOBER FIRST, FOR THE
PROVISIONS OF THAT CONTROL
SECTION, AND THEN, OF COURSE,
PLAN TO MEET THE TIMELINE OF
JANUARY 10TH TO DEMONSTRATE TO
THE LEGISLATURE HOW WE WERE ABLE
TO ACHIEVE THOSE SAVINGS. THANK
YOU. WONDERFUL. THANK YOU AND
REALLY APPRECIATE YOU
ELABORATING ON THE TIMELINE
COMPONENT. OFTENTIMES DURING THE
LEGISLATURE, WE PASS LEGISLATION
OR POLICIES, YET THEY'RE NOT
IMPLEMENTED AND THEY JUST GO ON
THE BOOKS AND NOTHING REALLY
GETS DONE. SO THIS IS SOMETHING
THAT I'M CONFIDENT THAT THE
COMMITTEE WILL TRACK AND ENSURE
THAT WE HIT THAT THAT BENCHMARK.
THANK YOU. ANYBODY ELSE? YEP.
MR. MATHIS, THANK YOU. SINCE
WE'RE TALKING PROJECTS, WHAT'S
THE AND YOU'RE TALKING PROJECTS
ARE BEING PUSHED OFF. WHAT'S THE
TOTAL COST ON THE PROJECTS THAT
ARE BEING PUSHED OFF? THANK YOU
FOR THAT QUESTION. MEMBER
MATHIS. I'M ACTUALLY GOING TO
HAVE TO CALL ON MY COLLEAGUES AT
DGS, I'M NOT SURE IF THEY HAVE
THAT INFORMATION READILY
AVAILABLE, BUT I'M GOING TO CALL
IT JASON KENNEY. I'LL TRY TO
PIVOT. YEAH. SO IN TERMS OF THE
TOTAL UNIVERSE OF PROJECTS THAT
ARE POTENTIALLY SUBJECT TO A
BACKLOG, IT REALLY VARIES YEAR
TO YEAR. IN THIS PARTICULAR
CASE, WITH BUDGET REDUCTIONS
THAT DANIELLE MENTIONED, WHAT WE
KNOW ESPECIALLY WELL, I'M SORRY,
BACK UP A SECOND. MANY OF THE
PROJECTS THAT COME THROUGH OUR
SHOP ARE DONE THROUGH SUPPORT
FUNDS. SO DEPARTMENTS, EXISTING
BUDGETS, FUNDING, DEFERRED
MAINTENANCE, REPAIRS AND THINGS
LIKE THAT. THERE ARE BILLIONS OF
DOLLARS IN DEFERRED MAINTENANCE
PROJECTS THAT DEPARTMENTS DON'T
HAVE FUNDS TO ULTIMATELY
UNDERTAKE. US BEING A FEE FOR
SERVICE FEE FOR SERVICE AGENCY.
DOES KIND OF TACK ON SOME OF THE
COST TO THOSE PROJECTS. AND SO
BEING ABLE TO HELP MEET THOSE
BUDGET REDUCTIONS POTENTIALLY
HOLD SOME OF OUR OWN VACANCIES,
DELEGATE THE WORK BACK TO
DEPARTMENTS SHOULD SPUR ON THOSE
PROJECTS, IN TERMS OF AN
EXISTING BACKLOG, AT ANY POINT
IN TIME, WE PROBABLY HAVE IN THE
NEIGHBORHOOD OF 20 TO 50
PROJECTS, THOSE WILL VARY FROM
500 TO 5 MILLION, ROUGHLY, AND
SO AGAIN, IT REALLY VARIES YEAR
TO YEAR. THOSE ARE VERY BALLPARK
NUMBERS, BUT IT'S A SENSE OF
SCALE, I THINK IN TERMS OF WHAT
WE TYPICALLY HAVE TO HOLD. AND I
SHOULD ALSO NOTE AT 5%
ESCALATION YEAR OVER YEAR FOR
CONSTRUCTION PROJECTS, THE
LONGER THOSE WAIT, THE MORE
EXPENSIVE THEY BECOME IN THE
LONG RUN. YEAH ALL RIGHT. IF YOU
COULD JUST HAVE YOUR GUYS MEET
WITH MY TEAM, I'D LIKE TO
OFFLINE KIND OF DIVE DEEPER INTO
THAT. SURE. THANK YOU. THANK
YOU. ASSEMBLY MEMBER MATHIS, ANY
COLLEAGUE WOULD LIKE TO ASK A
QUESTION. I HAVE A FEW, SO THE
INITIAL PROPOSAL, WHICH WAS MORE
EXPANSIVE, HAD SEVERAL
PROVISIONS THAT ARE NO LONGER
INCLUDED IN WHAT WE ARE. SEEING
TODAY. WHY WERE THESE PROVISIONS
WITHDRAWN FROM THE ORIGINAL
PROPOSAL? JUST FOR SOME CONTEXT
AND DO YOU HAVE ANY SENSE IF THE
ADMINISTRATION WILL PURSUE THESE
IN THE FUTURE? SO AGAIN,
DANIELLE BRANDON WITH THE
DEPARTMENT OF FINANCE, SOME OF
THESE PROVISIONS WERE REMOVED
BECAUSE THEY WERE A BIT
CONTROVERSIAL, AND WE NEEDED TO
CONTINUE TO TALK WITH SOME OF
THE GROUPS AND FOR THEIR
DIRECTIONS ON THIS. HOWEVER, THE
PIECES THAT WE'VE PUT BEFORE YOU
TODAY, WE BELIEVE ARE PRETTY
STRAIGHTFORWARD. YEAH SO THAT'S
SORRY. THAT'S ALL I HAVE. THANK
YOU FOR THAT, AND SOMETHING THAT
IS SPECIFIC TO MY DISTRICT, BUT
I'M ALSO AWARE THAT IT IMPACTS,
OTHER ASSEMBLY AND SENATE
DISTRICTS ACROSS THE STATE, IS
CALTRANS AND THEY'RE FACING SOME
CHALLENGES IN SECURING TIMELY
MAINTENANCE CONTRACTS FOR TASKS
SUCH AS FREEWAY CLEANUPS. GRASS
CUTTING AND TREE TRIMMING, IS A
CONTRACTING METHOD SIMILAR TO
JOB ORDER CONTRACTING. THAT
WOULD HELP STREAMLINE THIS
PROCESS. I AM NOT AWARE OF ANY.
I WILL ASK MY COLLEAGUE IF HE IS
AWARE OF ANY, BUT WE COULD
POSSIBLY CHECK BACK WITH OUR
COLLEAGUES WHO HANDLE CALTRANS
ASSIGNMENT. YEAH, I'M I'M NOT
AWARE OF ANY CALTRANS DOES HAVE
ACCESS TO JOB ORDER CONTRACTING.
BUT THEY'RE INDEPENDENT OF US IN
TERMS OF THEIR ABILITY TO
CONSTRUCT PROJECTS. SURE.
AWESOME. THANK YOU FOR THAT. AND
JUST LASTLY, YOU'VE ALREADY
TOUCHED ON IT. TO AN EXTENT, BUT
THE PROPOSAL PRESENTED TODAY IS
PRETTY STRAIGHTFORWARD. HOWEVER,
THERE STILL SEEMS TO BE AN,
THERE'S THESE APPEAR TO BE
EXCELLENT EFFICIENCIES IN
OPERATIONS, WILL THESE TYPES OF
GOVERNMENT EFFICIENCIES PRODUCE
ENOUGH SAVINGS TO MEET THE
NEGOTIATED BUDGET SAVINGS GOALS?
I JUST WANTED TO THANK YOU FOR
THAT, DANIELLE. BRANDON, JUST TO
REITERATE, THESE EFFICIENCIES
ARE JUST ONE OF THE TOOLS BEING
PROVIDED AND SUGGESTED TO
DEPARTMENTS TO MEET THOSE GOALS.
THIS TRAILER BILL IN AND BY
ITSELF DOES NOT, IS NOT INTENDED
TO MEET THAT FULL, OVER $2
BILLION GOAL, WITH AS MANY TOOLS
IN OUR TOOL CHEST OR ON OUR
BELT. LET'S MAKE SURE THAT WE
PUT THEM TO GOOD USE AND MEET
THE GOALS, IF THERE ARE NO OTHER
QUESTIONS, NOW, I'D LIKE TO OPEN
UP THE HEARING TO PUBLIC COMMENT.
THANK YOU, MR. CHAIR. MEMBERS
STEVE BAKER WITH AARON REED
ASSOCIATES FOR THE PROFESSIONAL
ENGINEERS IN CALIFORNIA
GOVERNMENT. WITH RESPECT TO THE
TRAILER, BILL, WE'D LIKE TO
THANK THE COMMITTEE AND THE
ADMINISTRATION FOR NOT PURSUING
THE JUNE TRAILER BILL AND
WAITING UNTIL WE CAN RESOLVE THE
ISSUES. WE WERE ABLE TO RESOLVE
OUR ISSUES WITH THE PREVIOUS
BILL, AND WE CERTAINLY WERE ABLE
TO DO THAT WITH THIS BILL IN OUR
NEUTRAL ON THAT, WITH RESPECT TO
THE ACROSS THE BOARD, CUTS THAT
YOU'VE BEEN TALKING ABOUT, WE'D
LIKE TO THANK THE LEGISLATURE
FOR INCLUDING LANGUAGE THAT
MAKES THAT SUBJECT TO COLLECTIVE
BARGAINING SO THAT OUR MEMBERS
CAN CONTINUE THEIR WORK. WE DO
HAVE SOME CONCERNS WITH THE
COMPLETE ACROSS THE BOARD NATURE
OF THAT. YOU TALKED ABOUT
CALTRANS. THERE ARE MANY
AGENCIES IN STATE GOVERNMENT
THAT ARE SPECIALLY FUNDED. IT
DOESN'T MAKE SENSE TO MAKE CUTS
IN SPECIALLY FUNDED AGENCIES
WHERE THOSE AREN'T GOING TO HELP
YOUR BUDGET SITUATION, YOU HAVE
MANY AGENCIES WHERE YOU WANT
PEOPLE TO DO MORE WORK, NOT
LESS. AND SO WE WOULD HOPE THAT
THE DEPARTMENT OF FINANCE CAN BE
MORE SURGICAL IN HOW THEY
ALLOCATE THOSE CUTS AS THEY GO
FORWARD. THANK YOU, THANK YOU,
THANK YOU, MR. CHAIRMAN AND
MEMBERS, MATT CREMEANS HERE ON
BEHALF OF THE CALIFORNIA NEVADA
CONFERENCE OF OPERATING
ENGINEERS. WE WANTED TO BE HERE
TODAY TO OFFER OUR SINCERE
GRATITUDE FOR THE INCLUSION OF
STATE WORKER PROTECTIONS IN THE
GOVERNMENT. EFFICIENCIES TRAILER
BILL, THESE PROTECTIONS WILL
ENSURE THAT JOB ORDER
CONTRACTING. IT WILL CLARIFY
THAT THEY ARE NOT INTENDED TO BE
USED TO REPLACE OR DISPLACE WORK
THAT IS CURRENTLY PERFORMED BY
STATE WORKERS. SO THANK YOU VERY
MUCH FOR THAT. AND WITH THAT, WE
WOULD URGE YOUR SUPPORT. THANK
YOU. APPRECIATE YOU, THANK YOU,
THANK YOU. MR. CHAIR. KEITH DIÆN
HERE ON BEHALF OF THE STATE
BUILDING CONSTRUCTION TRADES
COUNCIL, ALSO IN SUPPORT. WE
APPRECIATE THE WORK OF THE
COMMITTEE TO REMOVE ANY OF THE
CONCERNS, TO GET WHERE THE
OPERATORS ARE AND PROTECTING THE
WORKERS THAT EXIST AND
ESPECIALLY STATE FUNDED
PROGRAMS. SO WE WOULD ASK FOR
YOUR SUPPORT AND APPRECIATE THE
HARD WORK THAT WENT INTO THIS.
THANK YOU FOR THE COMMENTS.
OMEGA GONZALEZ, ON BEHALF OF
SEIU LOCAL 1000, FIRST WE WANT
TO COMMEND, THE ADMINISTRATION
AND THE DEPARTMENT OF FINANCE,
AS WELL AS, LEADERSHIP IN THIS
COMMITTEE AND THE LEGISLATURE ON
THE BILL IN ITS CURRENT FORM AND
WANT TO ESPECIALLY HIGHLIGHT
WHAT'S NOT, IN ITS IN THIS FORM,
IN PARTICULAR, THE ELIMINATION
OF THE OFFICE OF STATE PRINTING,
THIS WOULD HAVE BEEN A HUGE
IMPACT TO THE VITAL SERVICES
THAT OUR WORKERS PROVIDE FOR THE
STATE. AND AS WELL, TO JUST THAT
BARGAINING UNIT AS A AS WELL.
AND SO WE REALLY APPRECIATE
KNOWING THAT WE WERE HEARD, IN
THIS AND WE DO NOT HAVE A
POSITION. THANK YOU. THANK YOU
FOR THAT. I WANT TO THANK OUR
WITNESSES AND COMMITTEE MEMBERS
FOR PARTICIPATING TODAY, WE WILL
WEIGH THE COMMENTS TODAY AND
DETERMINE IF THERE ARE ANY
MODIFICATIONS NECESSARY, NOT
LIKELY, BUT JUST IN CASE, YOU
NEVER KNOW. WHILE WE MAY HAVE
PASSED THE CURRENT STATE BUDGET
IN LATE JUNE, OUR BUDGET WORK
STILL HAS SOME WORK TO DO. THIS
BUDGET SUBCOMMITTEE WILL
CONTINUE TO REVIEW THE
ADMINISTRATION'S ACTIONS TO
ENSURE THAT WE COLLECTIVELY
ACHIEVE THE TARGETED BUDGET
REDUCTIONS FOR ALL CALIFORNIANS.
TODAY'S HEARING IS ADJOURNED.
THANK YOU. GOOD MORNING. THANK
YOU.