Bond Spending: Expanding and Enhancing Oversight

DESCRIPTION

For this study, the Commission reviewed oversight mechanisms for state bond expenditures. The Commission’s concerns stem from the state’s sizeable bond package enacted in November 2006, which adds $43 billion in bonding capacity for infrastructure investment, and whether adequate mechanisms existed to ensure this money was spent efficiently and effectively.

In January 2007, Governor Arnold Schwarzenegger issued an executive order requiring the Department of Finance to expand oversight of the 2006 bond package and directed government agencies and departments administering the bonds to develop a three-part accountability structure. As part of this study, the Commission assessed whether this expanded oversight was adequate and whether additional opportunities existed to improve oversight.