Thursday, July 15, 2004
Audit urges stricter policies for steering cigarette taxes to programs
JIM WASSERMAN
Associated Press Writer
Thursday, July 15, 2004
(07-15) 16:10 PDT SACRAMENTO (AP)
Five years after Californians raised cigarette and tobacco taxes to pay for children's programs, a state audit released Thursday says some counties haven't justified their spending decisions and often don't know if their programs are working.
Since voters passed Proposition 10's 50-cent-a-pack cigarette tax increase in November 1998, California and its 58 counties have received more than $3.2 billion for "First Five" early childhood programs. However, none of the counties must follow state or county contracting procedures when they solicit proposals or spend the money.
State Auditor Elaine Howle said several counties lack documents to explain how and why they spent the money, while others haven't followed the spending policies they already have. Her audit singled out Santa Clara County's First Five commission for giving $1 million to the San Jose-based Children's Discovery Museum to build an exhibit, although policies limited grants to less than $15,000.
The audit also spotlighted Kern County's lack of documentation to explain how and why it gave $4 million to children's service providers. The audit, also sampling Los Angeles, San Diego and El Dorado counties, criticized most for not attracting more matching funds from other sources, for lacking rules to limit administrative costs and sometimes having little idea whether the money accomplished anything. Some drew criticism for banking large amounts of their money.
Early childhood programs paid for by the measure are aimed at nearly 2.7 million young Californians, more than 7 percent of the state's population, and many living in poverty.
Because the First Five commissions are spending public money, their spending decisions should be made in public, said Steve Hendrickson, chief deputy state auditor. The commissions need "to institute some procedures and follow them."
Unlike many programs run by the state, Proposition 10 sponsored by Hollywood filmmaker Rob Reiner intended to let local boards decide how to spend the money. Counties and their independent, autonomous commissions receive 80 percent of funds based on their proportion of California's births, approximately 530,000 a year.
Sen. Dean Florez, a Democrat from Shafter who sought the audit after learning Kern County grant recipients received $1,400 each to buy brass plaques naming the county's "First Five" commissioners, said he plans to introduce bills next year to create state contracting rules for First Five programs and require that grants given without competition be done at scheduled meetings.
"We've taken five counties out of 58 and find similar stories and insufficient documentation," Florez said Thursday. "This seems to be transpiring throughout these five. You just kind of have to say this is happening everywhere."
After four years, Florez said, the $3.2 billion program still lacks performance measures.The state commission and counties named in the audit both defended their operations and promised new scrutiny over their policies.Kern County First Five director Steven Ladd said the group would "implement an additional step in our process.
Jolene Smith, interim director for First Five Santa Clara County, called the charge regarding the $1 million grant to the children's museum "inaccurate," adding that the $15,000 limit is for emergency and one-time needs.
Several counties said their noncompetitive contracts went to best-qualified groups and said the suggested push for more evaluation could drive up administrative costs. The state commission reported difficulty persuading private foundations to match funds over concerns about losing control of their money.
Reiner released a statement welcoming "public review" of the program, noting it has steered $220 million to children's health care programs and paid for nearly 1 million "Kits for New Parents" for parents and care givers.
On the Net:
Read the audit report, "California Children and Families Commissions," at
http:www.bsa.ca.gov/bsa
Associated Press Writer
Thursday, July 15, 2004
(07-15) 16:10 PDT SACRAMENTO (AP)
Five years after Californians raised cigarette and tobacco taxes to pay for children's programs, a state audit released Thursday says some counties haven't justified their spending decisions and often don't know if their programs are working.
Since voters passed Proposition 10's 50-cent-a-pack cigarette tax increase in November 1998, California and its 58 counties have received more than $3.2 billion for "First Five" early childhood programs. However, none of the counties must follow state or county contracting procedures when they solicit proposals or spend the money.
State Auditor Elaine Howle said several counties lack documents to explain how and why they spent the money, while others haven't followed the spending policies they already have. Her audit singled out Santa Clara County's First Five commission for giving $1 million to the San Jose-based Children's Discovery Museum to build an exhibit, although policies limited grants to less than $15,000.
The audit also spotlighted Kern County's lack of documentation to explain how and why it gave $4 million to children's service providers. The audit, also sampling Los Angeles, San Diego and El Dorado counties, criticized most for not attracting more matching funds from other sources, for lacking rules to limit administrative costs and sometimes having little idea whether the money accomplished anything. Some drew criticism for banking large amounts of their money.
Early childhood programs paid for by the measure are aimed at nearly 2.7 million young Californians, more than 7 percent of the state's population, and many living in poverty.
Because the First Five commissions are spending public money, their spending decisions should be made in public, said Steve Hendrickson, chief deputy state auditor. The commissions need "to institute some procedures and follow them."
Unlike many programs run by the state, Proposition 10 sponsored by Hollywood filmmaker Rob Reiner intended to let local boards decide how to spend the money. Counties and their independent, autonomous commissions receive 80 percent of funds based on their proportion of California's births, approximately 530,000 a year.
Sen. Dean Florez, a Democrat from Shafter who sought the audit after learning Kern County grant recipients received $1,400 each to buy brass plaques naming the county's "First Five" commissioners, said he plans to introduce bills next year to create state contracting rules for First Five programs and require that grants given without competition be done at scheduled meetings.
"We've taken five counties out of 58 and find similar stories and insufficient documentation," Florez said Thursday. "This seems to be transpiring throughout these five. You just kind of have to say this is happening everywhere."
After four years, Florez said, the $3.2 billion program still lacks performance measures.The state commission and counties named in the audit both defended their operations and promised new scrutiny over their policies.Kern County First Five director Steven Ladd said the group would "implement an additional step in our process.
Jolene Smith, interim director for First Five Santa Clara County, called the charge regarding the $1 million grant to the children's museum "inaccurate," adding that the $15,000 limit is for emergency and one-time needs.
Several counties said their noncompetitive contracts went to best-qualified groups and said the suggested push for more evaluation could drive up administrative costs. The state commission reported difficulty persuading private foundations to match funds over concerns about losing control of their money.
Reiner released a statement welcoming "public review" of the program, noting it has steered $220 million to children's health care programs and paid for nearly 1 million "Kits for New Parents" for parents and care givers.
On the Net:
Read the audit report, "California Children and Families Commissions," at
http:www.bsa.ca.gov/bsa
# posted by Senator Dean Florez @ 8:10 AM 
