Budget Trends and Highlights (2024-2026)

Budget Overview

• Total Budget: $1.4 billion for 2024-25 from various funds, including reimbursements from other state departments
• Year-over-Year Change: Net decrease of $20 million (1 percent) from the revised 2023-24 level
• General Fund Reductions: $14.5 million in reductions for 2024-25 (declining to $1.6 million in 2027-28)
• Electric Vehicle Program: Reduction of $11.7 million in 2024-25 and $11.6 million in 2025-26 for electric vehicle service equipment

Major Funding Shifts

• State Project Infrastructure Fund: $700 million shift to General Fund in 2024-25
• Capitol Annex Project: Phased return of funds over three years:
  • $300 million in 2024-25
  • $250 million in 2025-26
  • $150 million in 2026-27

Core Programs and Services

• Procurement Division: Manages statewide contracts and purchasing programs
• Real Estate Services Division: Oversees state's real estate portfolio and building management
• Fleet and Asset Management: Administers the state's vehicle fleet and equipment
• Office of Sustainability: Leads state's efforts in sustainable operations and green building initiatives
• Risk and Insurance Management: Manages state's insurance and risk programs

Major Projects and Initiatives

Contracting Modernization

• Delegated Authority: Expanded authority for state agencies to manage public works projects
• Job Order Contracting: New authority to enter competitively bid, fixed price, indefinite quantity contracts
• Procurement Efficiency: Streamlined processes for roofing, painting, and plumbing services

State Office Building Projects

• Sacramento Region Strategy: Long-term plan for modernizing and consolidating state office space
• Sustainable Building Program: Implementation of zero net energy standards in state facilities
• Seismic Safety Improvements: Ongoing retrofitting of state buildings for earthquake safety

Technology and Innovation

• Digital Services: Modernization of state's digital infrastructure and services
• Cloud First Policy: Migration of state services to cloud-based platforms
• Cybersecurity Initiatives: Enhanced security measures for state systems and data

Administrative Structure

Executive Office

1. Director's Office
2. Chief Deputy Director
3. Legislative Affairs
4. Legal Services
5. Strategic Planning and Communications

Major Divisions

1. Administrative Division

   • Budget and Planning
   • Human Resources
   • Fiscal Services

2. Real Estate Services Division

   • Project Management and Development
   • Building and Property Management
   • Environmental Services

3. Procurement Division

   • Purchasing and Contracts
   • Small Business/DVBE Services
   • Sustainability

4. State Publishing Division

   • Digital Print Services
   • Forms Management

5. Fleet Operations Division

   • Vehicle Management
   • Equipment Services
   • Alternative Fuel Programs

Funding Allocation Process

Revenue Sources

1. Service Revolving Fund: Primary funding source from fees charged to state agencies
2. Building Rental Account: Revenue from state-owned building rentals
3. General Fund: Limited appropriations for specific programs
4. Special Funds: Various dedicated funding sources for specific programs

Budget Development

1. Annual Planning: Development of service rates and revenue projections
2. Cost Recovery: Setting of fees to recover operational costs
3. Capital Outlay: Planning for major construction and renovation projects

Contract Management Reform

1. Delegation Authority: Expanded agency authority for public works projects
2. Streamlined Procurement: Implementation of job order contracting
3. Cost Reduction: Initiatives to reduce contract management expenses

Performance Metrics

Key Performance Indicators

1. Procurement Efficiency: Average processing time for contracts
2. Building Management: Facility condition index and energy efficiency
3. Fleet Operations: Vehicle utilization and alternative fuel adoption
4. Small Business Participation: Achievement of small business/DVBE goals
5. Customer Service: Agency satisfaction ratings

Sustainability Goals

1. Energy Efficiency: Progress toward zero net energy buildings
2. Water Conservation: Reduction in water usage
3. Waste Reduction: Increased recycling and composting
4. Green Transportation: Electric vehicle adoption rates

Sources