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Brown Directs Admin To Cut More Costs

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Governor Brown issued an Executive Order directing the California Department of Finance (DOF) to incorporate common sense program-evaluation methods into the budgeting process, in order to fund programs based on their necessity and effectiveness.

Brown was Tuesday’s KVML “Newsmaker of the Day”.

The order’s goal is to cut costs and increase efficiency in this and future year state budgets.

The program-evaluation methods directed in the Executive Order include zero-based budgeting, performance measures, strategic planning, audits, cost-benefit analyses and program reviews.

The administration is already using program-evaluation budget methods to cut costs and excess. 

The Department of Mental Health (DMH) announced its plan to establish the Department of State Hospitals (DSH) along with reforms to its structure. These changes are the result of Governor Brown’s 2011 May Revision, which directed streamlining and efficiency measures at DMH to enhance patient care and overall safety.

“We examined spending at the Department of Mental Health and used zero-based budgeting to lower costs while maintaining appropriate treatments and enhancing safety,” said Department of Finance Director Ana Matosantos. “As a result, DMH will achieve total General Fund savings in the current budget year of about $120 million and about $183 million in the 2012-2013 budget year.”

Under the Executive Order, DOF must present a plan within 90 days to modify the budget process to incorporate program-evaluation methods.

The “Newsmaker of the Day” is heard each weekday morning on AM 1450 KVML at 6:47, 7:47 and 8:47am.