Sacramento, CA - The audit request submitted by Assemblymember Hector De La Torre (D-South Gate) was approved with bi-partisan support by the Joint Legislative Audit Committee. The committee authorized the State Auditor to conduct a thorough audit of the federal funds received by California to combat terrorism. The audit request calls for a close examination of the Department of Health Services (DHS), the Office of Homeland Security (OHS), and other relevant state entities that administer these funds.

"Protecting Californians from a potential terrorist attack must be a top priority for our state, particularly in urban areas such as Los Angeles County. We need better coordination between the Office of Homeland Security, the Department of Health Services and our local first responders," said De La Torre. "Despite the federal government providing the State with hundreds of millions of dollars since the September 11th attacks, our state agencies have only spent 31 percent of these funds since the beginning of this year."

The audit will specifically:

1. Review how state entities have spent federal homeland security and bioterrorism grants.

2. Review the State's monitoring of funds distributed to local entities for emergency preparedness.

3. Examine the scale or criteria the State uses to assess the seriousness of a potential terrorist attack.

In June 2004, the RAND Corporation released a report on emergency preparedness stating: "Strong central leadership and coordination of public health appears to be lacking. Few jurisdictions believe they can count on the Department of Health Services in an emergency." Additionally, the non-partisan Trust of America's Health stated that only five states scored worse than California on a report that graded the state's ability to respond to a terrorist attack.

"The state should do more to monitor local authorities to ensure they are maximizing our efforts with homeland security grants. The recent arrests in Lodi are a clear reminder that we must do more to protect our State," the South Gate Democrat concluded. "The Governor needs to demand a strategic state plan and hold all state agencies accountable. Not doing so will jeopardize us all."

The Legislative Analyst's Office (LAO), per the request of Assemblymember De La Torre, conducted a fiscal analysis of the State's handling of homeland security funding. The LAO found that only 31 percent of homeland security grant funds had been spent. The most recent 2003 and 2004 grants administered by OHS had an average expenditure rate of 18 percent. For DHS administered grants, only 46 percent of grant funds had been spent. In addition, the LAO found that California lacked a unified strategic approach to homeland security.