Report 2016-132 Recommendation Responses

Report 2016-132: Department of Water Resources: The Unexpected Complexity of the California WaterFix Project Has Resulted in Significant Cost Increases and Delays (Release Date: October 2017)

Recommendation for Legislative Action

To improve management of large and complex infrastructure projects, the Legislature should enact legislation requiring agencies to publicly report significant changes in the cost or schedule of such projects if they are expected to exceed their established budgets by 10 percent or schedules by 12 months.

Description of Legislative Action

Assembly Bill 2543 (Chapter 918, Statutes of 2018) requires each state agency or department authorized to undertake any infrastructure project costing $100 million or more to publicly post on its website any change in the cost or schedule of the project that would result in the project exceeding its established budget by 10 percent or more or being delayed by 12 months or longer. This statute requires the posted information to describe how much the project is expected to exceed its established budget or delay its construction schedule.

California State Auditor's Assessment of 1-Year Status: Legislation Enacted


Description of Legislative Action

Assembly Bill 2543 (Eggman) would require each state agency or department authorized to undertake any infrastructure project costing $1 million or more to publicly post on its website any change in the cost or schedule of the project that would result in the project exceeding its established budget by 10 percent or more or being delayed by 12 months or longer. The bill would require the posted information to describe how much the project is expected to exceed its established budget or delay its construction schedule.

California State Auditor's Assessment of 6-Month Status: Legislation Introduced


All Recommendations in 2016-132