New legislation sponsored by California State Controller John Chiang offers residents hope for better oversight over local government finances. Those concerned with the way local cities, special districts, and the county manage taxpayer dollars may soon have help at the state level.
In a February 8 press release, Chiang described new State Senate bills intended to give his office more power to investigate allegations of misuse and waste of public funds by local government agencies. At present, the State Controller has the authority to investigate such allegations when state or federal funds are involved. This gives the controller the authority to audit such projects as the Morro Bay/Cayucos wastewater treatment project because funding for that project will be a State Revolving Fund Loan (SRF). However, at present, allegations of waste or malfeasance regarding projects or activities funded by local taxpayer dollars do not generally fall within the State Controller's jurisdiction.
Senate Bill SB 186 would expand the State Controller's authority and help ensure that local governments operate honestly and efficiently. It would allow the Controller, at his discretion, to perform an audit of any county, city, special district, or redevelopment agency. Such audits would address the local government's compliance with local ordinances as well as state law, and would determine the fiscal viability of the local government's actions. The cost of an audit would be borne by the audited agency.
Although no mechanism for doing so is included in the Bill, concerned residents might petition the Controller to audit their local government agencies when there was significant concern and evidence of waste or misuse of public funds. The Journal has reported on such concerns in stories including "Morro Bay Residents Call for More Oversight of City Staff," which covered a variety of allegations related to inappropriate and/or excessive expenditures of taxpayer dollars.
The newly-proposed legislation offers significant potential benefits to residents concerned with the financial operations of their special districts. As discussed in the Journal story, California Special Districts and Local Area Formation Commissions – Government Agencies Outside the Law?, these agencies have historically had little oversight over their activities. SB 186 would help make the districts more accountable to the public.
SB 186, introduced by Senators Kehoe and DeSaulnier, and co-authored by State Assembly members Luis Alejo and Ricardo Lara, is scheduled for a Senate hearing on March 16, 2011. Those interested in communicating their views on the bill to State officials will find contact information and/or links to that information here:
State Senators
Assembly Members
Governor
State Controller
