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8-10-2004

The California Performance Review

A Power-Grab for Governor Schwarzenegger

  • The CPR restructures the state government in an attempt to centralize decision-making with the Administration and bypass the Legislature.

  • This restructuring disrupts the checks-and-balances upon which our government is based.

  • Contrary to the claim that the CPR constitutes a new way of thinking about government, in fact it simply uses an old, one-size-fits all, structure that is geared to make corporate interests paramount and detrimental to the interests of the people of California.

Examples of the Power-Grab:

  • Elimination of 118 Boards with 1,153 appointees (1/3 of all the boards evaluated). Many of these Boards currently have members that are appointed by the Legislature.

  • Transferring the functions of many of the Boards and Commissions to eleven consolidated agencies, which are directly under the rule of the Governor.

  • Elimination of the Unemployment Insurance Appeals and Workers Compensation Appeals Boards. The CPR states that, while the functions will be maintained under the new Office of Appeals with the Department of Labor and Economic Development, "appeals will be heard by administrative law judges there and the Secretary will render decisions on the ALJ recommendations."

  • The functions of the Franchise Tax Board are moved to the new California Tax Commission, which consolidates the power of the tax-collecting functions of the state into a single commission.

The Department of Labor and Economic Development

  • A Corporate-driven Mission: The new Department would consolidate many labor-related departments, commissions, and boards together with those that are set up to forward the goals of employers. Labor protections and rights would be subservient to the desires and needs of employers.

    • The CPR proposes that the Department be evaluated first and foremost in the context of following business and employment goals and needs, including attracting new business to California and improving the business climate. Protecting the safety of workers is clearly a secondary concern.

    • The 'Management Goal' of the Workplace Protection Division is to provide workplace protection for employers and employees so that business can "avoid costly closures or reductions in force."

  • Examples of Detrimental Changes:

    • Elimination of the Commission on Health and Safety and Workers' Compensation and Contractors' State Licensing Board;

    • Authority over many board and commissions will be transferred to the new Labor and Economic Development Department, including: Ca Unemployment Insurance Appeals Board, Ca Workers' Compensation Appeals Board, Industrial Welfare Commission, Workforce Investment Board, Employment Training Panel, Occupational Safety and Health Appeals Board, Fair Employment and Housing Commission.

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