A Review of the Governor's Reorganization Plan to Unify and Streamline the California State Personnel System
Full Report
Executive Summary
Press Release
FOR IMMEDIATE RELEASE
June 23, 2011
For Additional Information Contact:
Stuart Drown, Executive Director
(916) 445-2125
Commission Endorses Creation of Human Resources Department
The Little Hoover Commission on Thursday recommended that the Legislature allow the Governor’s Reorganization Plan to go into effect that would unify state personnel functions under a new California Department of Human Resources (CalHR).
The Governor’s proposal would move several functions of the State Personnel Board and the Department of Personnel Administration to the new department. Among the changes:
- The Department of Personnel Administration would be folded into CalHR, with the expectation that the State Personnel Board would transfer staff involved in day-to-day transactions and document review into the new department.
- The agencies’ joint effort to modernize the state’s human resources efforts, HR Mod, would become a central mission of the new department.
- The function of hearing employee complaints related to gender and racial discrimination would shift to the Department of Fair Employment and Housing from the Personnel Board.
The Personnel Board would continue to exercise its Constitutional authority related to changes in probation periods and classifications, disciplinary actions and merit-system disputes over hiring and promotions.
The Commission’s recommendation is based on testimony given at its June 2, 2011, public hearing as well as past Commission studies that examined the state’s civil service system. The Commission long has called for eliminating the overlapping roles of the Department of Personnel Administration and the State Personnel Board.
Though the reorganization plan does not fully consolidate the state’s personnel system, the Commission recognized the potential of CalHR. “The plan is a good first step,” Little Hoover Commission Chairman Daniel Hancock said. “It lays the foundation for a more unified human resources strategy to improve the state’s hiring practices and training programs as a significant portion of the workforce begins turning over.”
By statute, the reorganization process calls for the Little Hoover Commission to review each Governor’s Reorganization Plan and make an advisory recommendation to the Legislature. If the Legislature takes no action, the reorganization goes into effect. The plan can be rejected by a majority vote in either house. Barring a resolution against the proposal, the plan would take effect July 1, 2012.
The Little Hoover Commission is a bipartisan and independent state agency charged with recommending ways to increase the efficiency and effectiveness of state programs. To obtain a copy of the Commission’s report on Governor’s Reorganization Plan #1, contact the Commission or visit its Web site: www.lhc.ca.gov.
Fact Sheet
Study Description
For this study, the Commission reviewed the Governor's reorganization plan Governor's Reorganization Plan Number One: To Unify and Streamline the California State Personnel System. The plan proposed consolidating the Department of Personnel Administration and the State Personnel Board.
State law establishes that all Governors' reorganization plans must be submitted to the Commission for review at least 30 days prior to submitting it to the Legislature for its consideration. Following its review and one or more public hearings on the proposal, the Commission offers a recommendation on whether the Legislature should allow the plan to go into effect.
Agenda
Overview
Proposed by: Governor Edmund G. Brown, Jr.
Objective: Consolidate functions of the Department of Personnel Administration and State Personnel Board into a new California Department of Human Resources.
Commission recommendation: Allow plan to take effect.
Legislative Action: Under implementation, SB 1308.

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June 22011State Personnel Board, Department of Personnel Administration Reorganization Plan9:00 a.m., State Capitol, Room 437, Sacramento, CAPublic HearingAgenda
AGENDA
Public Hearing on Governor's Reorganization Plan Number One: To Unify and Streamline the California State Personnel System
Thursday, June 2, 2011, at 9:00 a.m.
State Capitol, Room 437
Sacramento, CA
Opening RemarksOverview
- Marty Morgenstern, Secretary, Labor and Workforce Development Agency (Written Testimony)
- Attachment 1: CEA Request Process
- Attachment 2: CCD Personnel Management Survey Results
- Attachment 3: 2011 Annual Report, Human Resources Modernization Project
- Attachment 4: Leadership Competency Development Guide
- Attachment 5: Processes Which May Receive Allegations of Discrimination
- Debbie Endsley, Former Director, Department of Personnel Administration
- Diana Ducay, Program Budget Manager, Administration Unit, Department of Finance (Written Testimony)
State Personnel Board Position
- Maeley Tom, President, State Personnel Board (Written Testimony)
Plan Implementation from Department Perspective- Ronald Yank, Director, Department of Personnel Administration (Written Testimony)
- Howard Schwartz, Chief Deputy Director, Department of Personnel Administration
- Suzanne Ambrose, Executive Officer, State Personnel Board (Written Testimony)
- Phyllis Cheng, Director, Department of Fair Employment and Housing (Written Testimony)
Impact on State Workforce
- Margarita Maldonado, Vice President-elect of Bargaining, Service Employees International Union (SEIU) Local 1000 (Written Testimony)
- Brooks Ellison, Chief Negotiator, California Attorneys, Administrative Law Judges and Hearing Officers in State Employment (CASE) (Written Testimony)
- Mike Jimenez, President, California Correctional Peace Officers Association (CCPOA)
The State's Human Resource Challenge
- LaVonne Coen, Deputy Director for Administration, Department of Health Care Services (Written Testimony)
- Tina Campbell, Chief, Human Resource Services Division, Employment Development Department (Written Testimony)
- Richard Callahan, Associate Dean and Director of State Capital and Leadership Programs, University of Southern California School of Policy, Planning, and Development (Written Testimony)
Comments Submitted by Members of the Public
- Doris Bloom, Chair, AdHoc Committee on Personnel (Written Comments)
Public NoticePUBLIC NOTICE
FOR IMMEDIATE RELEASE
June 1, 2011For Additional Information Contact:
Stuart Drown, Executive Director
(916) 445-2125Notice of Meetings
On Thursday, June 2, 2011, the Little Hoover Commission will hold a public hearing on the Governor’s reorganization plan on the State Personnel Board and Department of Personnel Administration. The hearing will be at 9 a.m. in Room 437 of the State Capitol.
Governor Brown has proposed consolidating the two state personnel agencies into a Department of Human Resources. The State Personnel Board was formed in 1934 and, among other functions, establishes job classifications, determines qualifications and probationary periods, ensures selection is by competitive examination, reviews complaints, discipline and other issues, provides consultation to departments on merit system issues, administers programs related to federal funding and language services, screens new hires and provides support to departments on equal employment opportunity.
The Department of Personnel Administration was created in 1981 and, among other functions, administers terms and conditions of employment for employees, represents the Governor in matters pertaining to state employer-employee relations and collective bargaining, formulates human resources policy and advises the Governor, administers salaries, benefits, some retirement and leave programs, administers training, performance and development and negotiates agreements with labor unions.
State law establishes that all Governors’ reorganization plans be submitted to the Commission for input. The Commission must receive plans 30 days prior to the Governor submitting them to the Legislature. In those 30 days, the Commission holds a hearing to review the plan. Once the Commission has had the plan for 30 days, the Governor may submit it to the Legislature. In the time that the Legislature has to review it, the Commission prepares and submits a written recommendation on whether the plan should be allowed to go into effect.
During the June 2 public hearing, the Commission will hear an overview of the plan from the secretary of the Labor and Workforce Development Agency, a former director of the Department of Personnel Administration and a program budget manager with the Department of Finance. The Commission also will hear the perspectives of those affected by the proposal, specifically the current director of the Department of Personnel Administration and the department’s chief deputy director, the president of the State Personnel Board and the board’s executive officer, and the director of the Department of Fair Employment and Housing.
Witnesses providing testimony on the effects on state workers will include the vice president of bargaining for the Service Employees International Union (SEIU) Local 1000, the chief negotiator for the California Attorneys, Administrative Law Judges and Hearing Officers in State Employment (CASE) and the president of the California Correctional Peace Officers Association (CCPOA). Finally, on the broader human resources issues involved, the Commission will hear from the deputy director for administration at the Department of Health Care Services, the chief of the Human Resource Services Division of the Employment Development Department and the associate dean and director of State Capital and Leadership Programs in the School of Policy, Planning and Development at the University of Southern California.
There will be an opportunity for public comment at the end of the hearing. The Commission also encourages written comments.
Immediately following the hearing, the Commission will hold a business meeting in Room 340 of the Library and Courts Building II, 900 N Street, Sacramento.
All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Thursday, May 26, 2011.

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June 22011State Personnel Board, Department of Personnel Administration Reorganization Plan9:00 a.m., State Capitol, Room 437, Sacramento, CAPublic HearingAgenda
AGENDA
Public Hearing on Governor's Reorganization Plan Number One: To Unify and Streamline the California State Personnel System
Thursday, June 2, 2011, at 9:00 a.m.
State Capitol, Room 437
Sacramento, CA
Opening RemarksOverview
- Marty Morgenstern, Secretary, Labor and Workforce Development Agency (Written Testimony)
- Attachment 1: CEA Request Process
- Attachment 2: CCD Personnel Management Survey Results
- Attachment 3: 2011 Annual Report, Human Resources Modernization Project
- Attachment 4: Leadership Competency Development Guide
- Attachment 5: Processes Which May Receive Allegations of Discrimination
- Debbie Endsley, Former Director, Department of Personnel Administration
- Diana Ducay, Program Budget Manager, Administration Unit, Department of Finance (Written Testimony)
State Personnel Board Position
- Maeley Tom, President, State Personnel Board (Written Testimony)
Plan Implementation from Department Perspective- Ronald Yank, Director, Department of Personnel Administration (Written Testimony)
- Howard Schwartz, Chief Deputy Director, Department of Personnel Administration
- Suzanne Ambrose, Executive Officer, State Personnel Board (Written Testimony)
- Phyllis Cheng, Director, Department of Fair Employment and Housing (Written Testimony)
Impact on State Workforce
- Margarita Maldonado, Vice President-elect of Bargaining, Service Employees International Union (SEIU) Local 1000 (Written Testimony)
- Brooks Ellison, Chief Negotiator, California Attorneys, Administrative Law Judges and Hearing Officers in State Employment (CASE) (Written Testimony)
- Mike Jimenez, President, California Correctional Peace Officers Association (CCPOA)
The State's Human Resource Challenge
- LaVonne Coen, Deputy Director for Administration, Department of Health Care Services (Written Testimony)
- Tina Campbell, Chief, Human Resource Services Division, Employment Development Department (Written Testimony)
- Richard Callahan, Associate Dean and Director of State Capital and Leadership Programs, University of Southern California School of Policy, Planning, and Development (Written Testimony)
Comments Submitted by Members of the Public
- Doris Bloom, Chair, AdHoc Committee on Personnel (Written Comments)
Public NoticePUBLIC NOTICE
FOR IMMEDIATE RELEASE
June 1, 2011For Additional Information Contact:
Stuart Drown, Executive Director
(916) 445-2125Notice of Meetings
On Thursday, June 2, 2011, the Little Hoover Commission will hold a public hearing on the Governor’s reorganization plan on the State Personnel Board and Department of Personnel Administration. The hearing will be at 9 a.m. in Room 437 of the State Capitol.
Governor Brown has proposed consolidating the two state personnel agencies into a Department of Human Resources. The State Personnel Board was formed in 1934 and, among other functions, establishes job classifications, determines qualifications and probationary periods, ensures selection is by competitive examination, reviews complaints, discipline and other issues, provides consultation to departments on merit system issues, administers programs related to federal funding and language services, screens new hires and provides support to departments on equal employment opportunity.
The Department of Personnel Administration was created in 1981 and, among other functions, administers terms and conditions of employment for employees, represents the Governor in matters pertaining to state employer-employee relations and collective bargaining, formulates human resources policy and advises the Governor, administers salaries, benefits, some retirement and leave programs, administers training, performance and development and negotiates agreements with labor unions.
State law establishes that all Governors’ reorganization plans be submitted to the Commission for input. The Commission must receive plans 30 days prior to the Governor submitting them to the Legislature. In those 30 days, the Commission holds a hearing to review the plan. Once the Commission has had the plan for 30 days, the Governor may submit it to the Legislature. In the time that the Legislature has to review it, the Commission prepares and submits a written recommendation on whether the plan should be allowed to go into effect.
During the June 2 public hearing, the Commission will hear an overview of the plan from the secretary of the Labor and Workforce Development Agency, a former director of the Department of Personnel Administration and a program budget manager with the Department of Finance. The Commission also will hear the perspectives of those affected by the proposal, specifically the current director of the Department of Personnel Administration and the department’s chief deputy director, the president of the State Personnel Board and the board’s executive officer, and the director of the Department of Fair Employment and Housing.
Witnesses providing testimony on the effects on state workers will include the vice president of bargaining for the Service Employees International Union (SEIU) Local 1000, the chief negotiator for the California Attorneys, Administrative Law Judges and Hearing Officers in State Employment (CASE) and the president of the California Correctional Peace Officers Association (CCPOA). Finally, on the broader human resources issues involved, the Commission will hear from the deputy director for administration at the Department of Health Care Services, the chief of the Human Resource Services Division of the Employment Development Department and the associate dean and director of State Capital and Leadership Programs in the School of Policy, Planning and Development at the University of Southern California.
There will be an opportunity for public comment at the end of the hearing. The Commission also encourages written comments.
Immediately following the hearing, the Commission will hold a business meeting in Room 340 of the Library and Courts Building II, 900 N Street, Sacramento.
All public notices for meetings are on the Commission’s Web site, www.lhc.ca.gov. If you need reasonable accommodation due to a disability, please contact Stuart Drown at (916) 445-2125 or littlehoover@lhc.ca.gov by Thursday, May 26, 2011.