1. Little Hoover Commission Special Districts Review – Status Report
Debby Cherney, Deputy General Manager
Danielle Coats, Senior Legislative Program Manager
May 3, 2017

2. Discussion Overview Little Hoover Commission Overview
Special District Study Update
Next Steps

3. Little Hoover Commission Overview

4. Little Hoover Commission
Formally called the Milton Marks “Little Hoover” Commission on California State Government Organization and Economy
Created in 1962 as an independent oversight agency
Bipartisan and comprised of 13 commissioners outlined in statute:
5 citizens appointed by the Governor
4 citizens appointed by the Legislature
Members of the Legislature – 2 Assembly Members/2 Senators
Mission of the Little Hoover Commission:
To investigate state government operations and - through reports, recommendations, and legislative proposals – promote efficiency, economy, and improved service.
Explores how programs could or should function.
Reports often serve as a spring-board for legislation.
Commission staff follows through as technical support until the issue is addressed legislatively or administratively.

5. Commissioners Pedro Nava Iveta Brigis Sebastian Ridley-Thomas
Chair
Legislative Appointee
Iveta Brigis
Governor Appointee
Sebastian Ridley-Thomas
State Assembly Member
Sean Varner*
Vice-Chair
Governor Appointee
Anthony Cannella
State Senator
Richard Roth*
State Senator
Scott Barnett
Legislative Appointee
Chad Mayes*
State Assembly Member
Janna Sidley
Governor Appointee
David Beier
Governor Appointee
Don Perata
Legislative Appointee
Helen Iris Torres
Governor Appointee
* From Riverside County
** Note: 1 vacancy remains on the Commission

6. Special Districts Study Update

7. Little Hoover Commission
In 2000 the Little Hoover Commission released its initial report on California’s special districts
2016 hearings on special districts have explored the following:
August 25, 2016 – Initial hearing focused on special district reserves and property taxes
October 27, 2016 – Examined how special districts plan to address climate change
November 16, 2016 – Narrowly focused on healthcare districts
February 23, 2017 – Interest renewed in exploring consolidation and elimination of special districts

8. Issues Raised at the February 2017 Business Meeting
The following includes some of the concerning comments raised during the February 23, 2017, Little Hoover Commission Business Meeting:
Comment: Implement a ten-year sunset for all special districts, referred to as a “death-sentence” or “sunset model”
EMWD/Special District Concerns:
Disruption of core services
Unable to pursue bond funding
What entity would assume the debts, liability, infrastructure, continuation of services?
Comment: Introduce a Base Realignment and Closure (BRAC)-type commission to evaluate and dissolve underperforming special districts
LAFCOs have the ability and powers to evaluate special districts and recommend dissolution, elimination, or consolidation
Similar to the concerns above, maintaining a bond ratings would be challenging and risky
What problem are we trying to solve?

9. Addressing New Issues Raised
Special districts conducted extensive outreach to commissioners
EMWD actively pursued discussions with Riverside County connected Commissioners
Associations and special districts volunteered information and assistance to Commissioners and Commission staff
Commissioners surveyed to determine how to proceed
Responses were generally positive

10. Next Steps

11. Next Steps for the Report Development
Commissioners have elected to hold a smaller “roundtable” meeting in late June
Developing recommendations based on the initial report circulated in February
Areas of additional conversation include:
Encouraging greater participation by the public in special district and LAFCO related activities
More transparency in special district property tax collection and distribution, and
Encourage LAFCOs to conduct more consistent, thorough municipal service reviews, with more substantive recommendations

12. Report Conclusion
It is feasible that a report could be adopted in late summer following the June “roundtable” meeting
EMWD has established a highly visible presence at the hearings/business meetings and we will continue to participate and engage
Riverside County members of the LHC have been briefed by EMWD and others and will continue to be on an as-needed basis.

13. Contact Information
Danielle Coats
Senior Legislative Program Manager
(951) Ext. 4526