WHEREAS, the people of California have spoken and made clear their desire for a government that is a better provider of services, more responsive and more accountable; and

WHEREAS, the fiscal crisis confronting California demands fundamental change in the way the state does business, eliminating old, failed approaches and creating new and better ways to serve the people of the state; and

WHEREAS, California state government must become the first true 21st Century government in America, a government that is as innovative, efficient and dynamic as the state itself; and

WHEREAS, the State of California is filled with skilled and dedicated government employees, innovative companies, educational institutions and non-profit institutions with substantial experience and knowledge necessary to improve the operations and accountability of state government; and

WHEREAS, California needs a mechanism to rigorously examine how the government operates and the system it employs to accomplish its mission, focusing on the prioritization of program needs, return on program investment, effective program management, and effective, accountable fiscal management of the state's resources; and

WHEREAS, California's government structure has become too cumbersome to meet current service demands. California has agencies, boards and commissions with overlapping and related responsibilities which can be consolidated to make government more efficient, effective and transparent; and

WHEREAS, California has outmoded and duplicative information technology systems that must be replaced with a common set of statewide systems to bring government operations into the 21st century.

NOW, THEREFORE, I, ARNOLD SCHWARZENEGGER, Governor of the State of California, by virtue of the power and authority vested in me by the Constitution and statutes of the State of California, do hereby issue this Executive Order to become effective immediately:

1. There shall be created the California Performance Review to conduct a focused examination of California state government. Based on this examination and assessment, the Performance Review will formulate and recommend practical changes to government agencies, programs and operations to reduce total costs of government operations, increase productivity, improve services and make government more responsive and accountable to the public.

2. This year, the Performance Review will examine the following areas:

  • (1) Statewide Information Technology;
  • (2) Performance-Based Budgeting and Revenue Maximization;
  • (3) Personnel Management;
  • (4) Acquisition and Procurement;
  • (5) Customer Service;
  • (6) Health and Human Services;
  • (7) Education, Training and Volunteerism;
  • (8) Public Safety;
  • (9) Infrastructure (including transportation, housing, energy and water);
  • (10) Resources and Environmental Protection;
  • (11) California Business Climate;
  • (12) General Government (including agency reorganization and consolidation);
  • (13) Intergovernmental Relations; and
  • (14) Job Retention and Business Development.

3. The Department of General Services will provide office space and other administrative support services as are reasonably necessary for the Performance Review to fulfill its mission. The Performance Review shall be deemed to be a "proceeding" pursuant to Government Code section 14600 and shall be conducted as an adjunct activity of the Department of General Services. The Department of Finance shall provide assistance in making necessary resources available to the Performance Review and the Department of General Services.

4. Review staff members will be selected from within agencies and departments in state government for temporary service in the California Performance Review. They shall serve the Performance Review on loan from contributing agencies/departments which shall provide continued payment of employees' salaries while they are participating in the project.

5. The Performance Review will make its final recommendations to the Governor not later than June 30, 2004.

6. There shall be created a California Performance Review Commission that shall exist for the duration of the Performance Review to provide independent guidance and input. The Commission will be led by co-chairs and shall consist of members selected by the Governor, all of whom shall serve voluntarily and without compensation. The Commission shall conduct such public meetings and shall take such public testimony as necessary to assist the Performance Review. The Department of General Services shall provide staff support and shall bear incidental costs associated with the Commission's public meetings.

7. All state entities under the Governor's executive authority shall cooperate fully with the Performance Review and provide assistance and personnel as needed to implement this Executive Order. The provisions of this Executive Order shall not apply to the legislative and judicial branches of government, nor shall it apply to the constitutional officers of this state. However, I invite these branches of government and the constitutional officers to lend their assistance and support.

IT IS FURTHER ORDERED that as soon as hereafter possible, this order be filed in the Office of the Secretary of State and that widespread publicity and notice be given to this order.