Chapter 1 General Government - The California Performance Review

Making government more efficientGovernment programs and activities that have outlived their original intent or usefulnessshould neither be performed by the state nor be permitted to receive additional funding. Forexample, there are two separate programs providing property tax relief to seniors and thedisabled. One is a grant program provided to homeowners and renters. The other is a loanprogram only for homeowners and is repaid from the proceeds of the house when it is sold orfrom the estate after the owner dies. Both programs were established prior to the passage ofProposition 13, which granted property tax relief to all residents and businesses. Nonetheless,both programs were allowed to continue and persist to this day. By phasing out the grantprogram, property tax payments can still be paid for elderly and disabled homeowners underthe loan program, which pays for itself. The savings would be significant each year.Additional savings can result from managing smarter. For instance, requiring biennialregistration of vehicles would reduce workload in DMV offices and provide one-time fundingto the General Fund of over $1 billion. In addition, the state pays nearly $123 million as a resultof tort claims, but by establishing a cap on tort liabilities the state can reduce this amount whilestill providing $1 million for each plaintiff and $5 million for each occurrence that led to thelawsuit. Also, settlement of some tort cases rather than allowing them all to go to court canreduce the high costs of litigation. Finally, additional funds can be saved with legislation thatrequires the use of lower cost and better managed insurance options for construction projects.Additional cost savings can be realized by revising policies or procedures for travel claims,development and adoption of regulations, fleet management, video production, the storageand retrieval of documents and the use of federal funds.6 Issues and Recommendations