Chapter 1 General Government - The California Performance Review

The California Performance Reviewimpose penalties on departments that do not submit their ICRP timely or accurately. Inaddition, in FY 2002–2003 the state only recovered 8 percent of the amount recoverable fromthe federal government. That translates to a loss of more than $700,000 per year to the state. 14Other states—TexasIn federal FY 2002–2003, Texas received 92 cents in federal payments and services for everydollar sent to Washington. 15 Federal funds are the second largest segment of the Texas statebudget, accounting for $39.2 billion, or more than one-third of FY 2004–2005 appropriations.This appropriation was an increase of $2.17 billion from the previous fiscal year. 16Texas’ Office of State-Federal Relations is charged with increasing federal revenue to Texas bymonitoring federal activity in Washington and attempting to modify federal decisions in thestate’s favor. To achieve these goals, the office works with the state’s congressional delegation,the governor, the legislature and state agencies. 17Texas hired Maximus® to perform its indirect cost rate calculations for federal grants. DeniseFrancis, Director of State Grants, says the contract has resulted in millions of additional dollarsin federal revenue to Texas. 18Other states—New YorkIn federal FY 2002–2003, New York received 85 cents in federal payments and services forevery dollar sent to Washington. 19 New York, like Texas, has been increasing its monitoring ofthe federal dollars it receives. New York’s Management and Governmental Relations Unitcoordinates the state’s fiscal policies and actions affecting federal and local governments, withparticular emphasis on shaping the state’s response to fiscally distressed communities andfederal program initiatives.Each New York state department is responsible for computing its own indirect cost rate,similar to California’s process.RecommendationsA. The Governor should consolidate all monitoring activities related to determiningeligibility for and receipt of, federal grant money in a special unit within theGovernor’s Office of Planning and Research.This unit should monitor federal grant programs and alert the Governor when grantfunding opportunities arise or when grant funding inequities may occur. It should alsobecome the single point of contact to communicate with all state departments andagencies on grant-related issues.B. The federal grant unit should develop aggressive grant funding policies to ensurethat it receives a fair share of the federal grant resources available.A Government for the People for a Change 39