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Audit of State's Budget Paved Way for San Diego Citizens' Budget Project
The San Diego Citizens' Budget Project is not the first time that The Performance Institute has led a bold initiative for fundamental change.

On April 30, 2003, as the California state government sat mired in partisan deadlock over what to do about the most severe fiscal crisis in its history, The Performance Institute released a 10-point California Citizens' Budget Plan to balance the state's budget through comprehensive reforms. The California Citizens' Budget Plan was ignored by then-Governor Gray Davis and the deadlocked legislature – which could think only in "either/or" terms of tax increases and draconian program cuts.

The people of California knew better – and support for the reform agenda articulated in the California Citizens' Budget Plan grew through the summer as editorial boards and civic associations endorsed the grassroots plan. In the recall, fiscal reform was made the driving issue and Arnold Schwarzenegger, Tom McClintock, Bill Simon, and Peter Ueberroth all endorsed the reforms outlined by the California Citizens' Budget Plan. With the election of Arnold Schwarzenegger, the reforms articulated in the California Citizens' Budget Plan are now being implemented.

Governor Schwarzenegger and California Performance Review Establish a “Benchmark” for Reform of State Government
Carl DeMaio, president of The Performance Institute, issued the following statement in response to Governor Arnold Schwarzenegger’s release today of the California Performance Review’s recommendations for overhauling state government.

Read the News Release

The California Performance Review's Report: "Government For the People For a Change"

The California Performance Review released its 2,500-page final report on August 3. The report contained 1,200 recommendations for reforming the state government and achieving an estimated $32 billion in savings over five years.
Note: Due to its immense size, the report has been divided into four volumes and made available online in a mix of HTML and PDF forms. The links below will take you to index for each volume.

Volume I: Prescription for Change
Volume II: Form Follows Function
Volume III: Keeping the Books
Volume IV: Issues and Recommendations
California Performance Review Home

       California Citizens' Budget Project
       San Jose Mercury-News: State reform plan bears tech imprint
       Sacramento Bee: California's state workforce won't be shrinking
       Orange County Register: State of California, Inc.
       Los Angeles Times: Sacramento Finds Small Savings Count Now
       Los Angeles Daily News: State May Pay Now to Save Later
       Sacramento Bee: Missing at State Level – Creativity, specific goals
       Union-Tribune: New Budget Plan Takes Three Steps Back, None Forward
       Orange County Register: A Ready-Made Budget for Would-Be Governors
       Los Angeles Times: Massive Loan for State Weighted
       Orange County Register: 18 Californians Worth Listening To
       Sacramento Bee: Should Schwarzenegger 'Blow Up' Boxes?
       Roadmap to Reform by Carl DeMaio, George Passantino, Bill Baker,
         Kathleen Connell, Matt Fong, Bill Jones, and Lucy Killea

Driving the Budget Reform Agenda

ORANGE COUNTY REGISTER
"All this [the Citizens' Budget’s proposed reform package] is tough medicine, but the result would be a more efficient government and a more business-friendly state. After that, the structural reforms should reduce the likelihood of future crises."
August 12, 2003

SACRAMENTO BEE
"A detailed examination of California government jam-packed with ecommendations that could lead to significant savings or service improvements."
May 4, 2003

ORANGE COUNTY REGISTER
"A Ready-Made Budget for Would-Be Governors"
August 12, 2003

LOS ANGELES TIMES
"The recall happened... and the Citizens' Budget became a must-read."
March 23, 2004

ORANGE COUNTY REGISTER
"Carl DeMaio is one of ‘18 Californians Worth Listening To’ "
November 16, 2003

SACRAMENTO BEE
"His [Gov. Schwarzenegger’s] proposals for privatization and non-instructional school services, stringent performance reviews of state programs and the consolidation or elimination of state agencies were quoted chapter and verse from the 'Citizens Budget' crafted last year by Carl DeMaio."
January 18, 2004


Side-by-Side Comparisons
TIE DEFICIT FINANCING TO REAL BUDGET REFORM

"Based on where the various parties are in their positions today, a ten-year $15 billion bond would be required at the least to bridge the gap. Debt servicing on the bond would begin immediately and would burden future budget cycles. The loan would be enough to transition past the present crisis along with long-term constitutional changes necessary to impose discipline on Sacramento."

- California Citizens' Budget, April 30, 2003

"Schwarzenegger Outlines Plan to Handle California Deficit: On Tuesday, his first full day as governor, Mr. Schwarzenegger offered a glimpse of his strategy. He intends to have the state borrow up to $15 billion to cover most of the existing deficit and impose a constitutional spending cap to avoid future overspending."

- The New York Times, November 19, 2003

REORGANIZE AND STREAMLINE STATE GOVERNMENT

"By consolidating similar programs into one agency, significant overhead cost savings can be achieved. Finally, the Citizens' Budget suggests that 'advisory' Commissions and Boards be eliminated and that 'policy-making' boards be placed under one of the seven departments created in the reorganization plan."

- California Citizens' Budget, April 30, 2003

"Every governor proposes moving boxes around to reorganize government. I don't want to move boxes around; I want to blow them up. We have multiple departments with overlapping responsibilities. I say consolidate them."

- Governor Schwarzenegger’s State of the State Address, Jan. 6, 2004

TAKE A PERFORMANCE-BASED APPROACH TO REFORM

"The Citizens' Budget lays out the case for using performance-based criteria for the review of the state's expenditures - resulting in cost savings and protection of key quality-of-life programs. For the immediate challenge, the Governor and legislature should require each agency to submit a performance budget by June 15th based on a series of questions relating to the relevance, performance and management of each of its programs. Regardless of the assessment approach the state takes, a program-by-program approach to spending reductions has to be conducted - with performance at the heart of each assessment."

- California Citizens' Budget, April 30, 2003

"There shall be created the California Performance Review to conduct a focused examination of California state government. Based on this examination and assessment, the Performance Review will formulate and recommend practical changes to government agencies, programs and operations to reduce total costs of government operations, increase productivity, improve services and make government more responsive and accountable to the public."

- Governor Schwarzenegger’s Executive Order S-5-04