BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 450 N Street, Room 121 Sacramento, California REPORTER'S TRANSCRIPT SEPTEMBER 15, 2010 ITEM P5 ADMINISTRATION DEPUTY DIRECTOR'S REPORT Reported by: Beverly D. Toms No. CSR 1662 1 1 2 P R E S E N T 3 4 For the Board Betty Yee of Equalization: Chair 5 Jerome E. Horton 6 Vice-Chair 7 Barbara Alby Acting Member 8 Michelle Steel 9 Member 10 Marcy Jo Mandel Appearing for John 11 Chiang, State Controller (per Government Code 12 Section 7.9) 13 Diane Olson Chief, Board 14 Proceedings Division 15 Board of Equalization Staff: Liz Houser 16 Deputy Director of Administration 17 18 19 ---oOo--- 20 21 22 23 24 25 26 27 28 2 1 2 INDEX 3 4 PAGE 5 SUB-ITEM: 6 1, FACILITIES UPDATE 3 7 8 2, 2010/11 AND 2011/12 BUDGET UPDATE, 9 FURLOUGH PLAN AND LAYOFFS 6 10 3, 2011/12 DRAFT BUDGET CHANGE 11 PROPOSALS 8 12 ---oOo--- 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3 1 SUB-ITEM1 2 FACILITIES UPDATE 3 Sacramento, California 4 September 15, 2010 5 ---oOO--- 6 MS. OLSON: The next item is P5, Administration 7 Deputy Director's report. 8 MS. HOUSER: Good afternoon, Madam Chairwoman, 9 Members. I'm Liz Houser, Deputy Director of 10 Administration. 11 My first item is an update on the headquarters 12 facility. This weekend, September 18th and 19th, the 13 Department of General Services is scheduled to replace 14 three chiller valves on our mezzanine floor in the 450 N 15 Street building. 16 This work will require that the air 17 conditioning system be turned off until the valve 18 replacement is completed. This will mean that all -- we 19 will be -- we will also be shutting down our servers due 20 to the lack of cooling. This will mean that all IT 21 services will be unavailable for the full weekend. 22 Therefore, staff will not have access to any information 23 on central or shared drives and there will be no e-mail 24 access, which includes Blackberries and external 25 personal computers. 26 Staff will also not be allowed into the 27 building all day Saturday and all day Sunday. 28 Since these are centralized servers, this 4 1 affects all employees of the Board regardless of their 2 physical location. 3 The employees' cellular phone service will not 4 be affected. 5 We appreciate your cooperation and patience 6 during this required repair. 7 I -- I'd be happy to answer any questions you 8 have on the facility. 9 MS. YEE: Thank you, Ms. Houser. Any 10 questions, Members? 11 And thank you for the notice to all employees. 12 ---oOo--- 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5 1 SUB-ITEM 2, 2010/11 AND 2011/12 BUDGET UPDATE, . 2 FURLOUGH PLAN AND LAYOFFS 3 MS. HOUSER: Okay, my next item is an update 4 on the 2010/11 and 2011/12 budgets. 5 On August 25th, the Superior -- the Sacramento 6 Superior Court determined that a full hearing is 7 necessary on the question of whether the State 8 Controller can be required to pay minimum wage in the 9 absence of a State budget, but a date has not been 10 scheduled. 11 It is estimated that the full hearing will take 12 place before November. I will keep you posted as 13 additional details become available. 14 The State Controller continues to monitor 15 daily -- daily monitoring of the State's cash status, 16 and is indicating that registered warrants or IOUs may 17 be necessary as early as October. 18 I will also keep you apprised on the status of 19 the IOUs. 20 On September 1st the Governor issued a 21 directive to his agency secretaries imposing a hard 22 hiring freeze on the Executive Branch. Departments were 23 instructed to stop all hiring, promotions, transfers 24 between departments and to avoid authorization of 25 overtime. 26 The Board of Equalization is not included in 27 this directive. However, we continue to carefully 28 monitor our expenditures. 6 1 On September 9th the California Supreme Court 2 held a hearing on the Governor's Executive Order calling 3 for a two-day furlough in February 2009, and that 4 extending the furlough to three days in July of 2009. 5 The Court's ruling is expected no later than December 6 9th. 7 I will provide a status of the possible impact 8 to the Board of Equalization once we know the final 9 decision of the Court. 10 ---oOo--- 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 7 1 SUB-ITEM 3, 2011/12 DRAFT BUDGET CHANGE PROPOSALS. 2 MS. HOUSER: The Budget Change Proposals for 3 the '11/'12 fiscal year that were approved by the Board 4 at the last meeting were submitted to the Department of 5 Finance on September 13th. 6 The Department of Finance is exploring an early 7 start of enhancing tax compliance proposal which 8 requests 96 positions and $11.3 million with estimated 9 revenues of 58.1 million. 10 Copies of the final BCPs were provided to your 11 office. 12 This concludes my presentation. I'll be happy 13 to answer any questions you may have. 14 MS. YEE: Thank you, Ms. Houser. 15 Questions, Members? 16 Hearing none, thank you very much. 17 MS. HOUSER: Thank you. 18 ---oOo--- 19 20 21 22 23 24 25 26 27 28 8 1 REPORTER'SCERTIFICATE 2 3 State of California ) 4 ) ss 5 County of Sacramento ) 6 7 I, BEVERLY D. TOMS, Hearing Reporter for the 8 California State Board of Equalization certify that on 9 September 15, 2010 I recorded verbatim, in shorthand, to 10 the best of my ability, the proceedings in the 11 above-entitled hearing; that I transcribed the shorthand 12 writing into typewriting; and that the preceding 8 13 pages constitute a complete and accurate transcription 14 of the shorthand writing. 15 16 Dated: October 5, 2010. 17 18 19 ____________________________ 20 BEVERLY D. TOMS 21 Hearing Reporter 22 23 24 25 26 27 28 9