|
Reprinted here is the fiscal impact study for
"Post the Finances"
prepared by a state legislative analyst and
director of finance, and submitted to the state
attorney general.
September
19, 2003
Hon.
Bill Lockyer
Attorney General
1300 I Street, 17th floor
Sacramento, CA 95814
Attention: Ms. Tricia Knight
Initiative Coordinator
Dear Attorney General Lockyer:
Pursuant to Elections Code Section 9005, we
have reviewed the proposed initiative entitled
"The Fiscal Accountability in State Government
Act" (File No.
SA2003RF00034).
Major Provisions This measure would result in
significant changes to the way state entities
record and report financial data. The measure
requires that each state entity post on its
Web site, at the close of each business day,
any expenditures and revenues credited to that
entity on that day. These postings would include
relevant names, dates, and amounts of each transaction.
The measure would also require the State Controller’s
Office (SCO), in consultation with the State
Treasurer’s Office (STO) and the Department
of Finance (DOF), to adopt guidelines and procedures
to standardize the financial information reported
by state entities on the Internet. The measure
requires full implementation within 120 days
of passage.
Currently, each state entity records its expenditures
and revenues. The entity summarizes these fiscal
transactions and enters the information into
its accounting system. (These systems vary among
departments.) This summary information is then
transmitted to the SCO, as the state’s
record keeper. Fiscal Effect The measure would
have the following fiscal impacts on state government.
New Data Collection System. The state’s
current accounting system does not allow for
the recording of the level of financial detail
as required by this measure, nor does it allow
for the posting of financial information on
the Internet. As a result, this measure would
require the development and implementation of
a new data collection and reporting system.
Based on other state information technology
projects, the one-time costs related to the
development of such a system would be major—potentially
over $200 million (spent over several years),
with annual maintenance costs potentially in
the low tens of millions of dollars.
Staffing at State Entities. By requiring more
detail than is tracked in existing data collection
systems, this measure would require an increase
in state entities’ data entry work. Staffing
needs would vary across state entities.
Some may not have significant increased needs,
but other entities would experience significant
new workload. Total increased staffing could
result in annual costs of over $20 million.
Guidelines Established. The measure requires
the SCO, STO, and DOF to establish guidelines
and procedures to standardize the financial
information reported on the Internet. This activity
would likely result in minor one-time costs.
Increased Fiscal Reporting. The public reporting
of detailed fiscal information could result
in savings related to improved fiscal resource
management. The magnitude of such savings is
unknown.
Summary
This measure would have the following major
state fiscal effects: Potential one-time costs
of over $200 million, and annual costs in the
tens of millions of dollars for the development,
implementation, maintenance, and use of a new
data collection and reporting system
Sincerely,
Elizabeth G. Hill
Legislative Analyst
Steve Peace
Director of Finance
|
