SACRAMENTO – The most comprehensive overhaul of state government in decades became official today following legislative approval of Governor Edmund G. Brown Jr.’s Reorganization Plan. The Governor’s plan, which will be implemented over the next year, cuts the number of state agencies from 12 to 10 and eliminates or consolidates dozens of departments and entities.

“This far-reaching plan will make government more effective and will reduce wasteful spending,” said Governor Brown.

Currently, many unrelated departments – like Caltrans, the Department of Real Estate and the Department of Financial Institutions – are housed together, while many related programs are scattered throughout different agencies. In many cases, departments and programs are duplicative. The Governor’s plan changes the reporting relationships of dozens of entities to improve coordination and efficiency. This will ultimately make government more responsive to the public.

Upon implementation, five existing state agencies will be replaced by the following three:

• The Government Operations Agency, which will be responsible for administering state operations, such as procurement, information technology and human resources;
• The Business, Consumer Services and Housing Agency, which will be responsible for licensing and oversight of industries, businesses and other professionals; and
• The Transportation Agency, which will align all of the state’s transportation entities.

In May, Governor Brown’s plan was unanimously approved by the Little Hoover Commission, the state’s top independent government oversight body. The plan was then sent to the Legislature for review. Without a vote to reject the plan by a majority vote of either house, the plan became effective today.

Governor Brown’s plan becomes operative on July 1, 2013 and the administration will be working closely with agencies, departments, boards and commissions on its implementation in the months ahead.

According to the Little Hoover Commission, the Governor’s plan represents the most ambitious of the 36 reorganizations they have reviewed since 1968.