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Inventory of the Department of Finance Records
R157, F3609, F3695
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Table of contents
Title: Department of Finance Records
Dates: 1912-2001
Inventory: R157, F3609, F3695
Creator:
Department of Finance
Collection Size:
492 cubic feet
Repository:
California State Archives
Sacramento, California
Abstract: The records of the Department of Finance consist of 492 cubic feet of records from 1912 through 2001.
Language:
English.
While the majority of the records are open for research, any access restrictions are noted in the record series descriptions.
For permission to reproduce or publish, please consult California State Archives staff. Permission for reproduction or publication
is given on behalf of the California State Archives, Office of the Secretary of State, Sacramento, as the owner of the physical
items. The researcher assumes all responsibility for possible infringement that may arise from reproduction or publication
of materials from the California State Archives’ collections.
[Identification of item], Dept. of Finance Records, R157.[series number], [box and folder number], California State Archives,
Office of the Secretary of State, Sacramento, California.
The Department of Finance was created by Statutes of 1921, Chapter 603. This legislation established the Department of Finance,
which would have general supervision over all matters concerning the financial and business policies of the State as well
as performing numerous services centrally for other departments, offices, boards, and commissions. The new department assumed
the responsibilities of numerous agencies and departments including the Department of Public Accounting; Children's Agents;
State Purchasing Department; Superintendent of Capitol Buildings and Grounds; Board of Trustees of the State Burial Grounds;
Board of Colton Hall Trustees; Board of Monterey Custom House Trustees; Board of Sutter's Fort Trustees; Capital Planning
Commission; Superintendent of State Printing; Motor Vehicle Department of California; Board of Trustees of the State Library;
and the State Librarian.
The Department of Finance was initially created with six divisions including the Division of Claims and Disbursements; Division
of Budgets and Accounts; Division of Purchase and Custody; Division of Printing; Division of Motor Vehicles; and Division
of Libraries. In 1927 this number of divisions was reduced to three: the Division of Budgets and Accounts; Division of Service
and Supply; and Division of Motor Vehicles. The Division of Libraries was removed to the Department of Education in 1927.
The Division of Motor Vehicles was abolished in 1929 and transferred to the Department of Public Works.
Board of Control
With the creation of the Department of Finance, the Board of Control became its governing body. When the Department of Finance
was reorganized in 1927 (Statutes of 1927, Chapter 251) the Board of Control was abolished as the governing body of the department
and the Director of Finance was made as the executive officer, who was appointed by the Governor.
Division of Budgets and Accounts
The Budgets and Accounts Division was created with responsibility for the general supervision of the State's fiscal affairs.
The division prepared and executed the state budget as well as devised, installed, and supervised the accounting systems for
the State and all its agencies. In 1948 the Department's role in surveying, analyzing, and recommending improvements of the
administrative structure and procedures of state agencies was transferred to this division. Additionally, the division was
responsible for budgetary control of the fiscal year budgets for each state office or department as well as allocation of
Emergency Funds and other lump sum appropriations.
Division of Printing
The State Printer's office was established in 1850 by Statutes of 1850, Chapter 2. It was repealed in 1852 and reestablished
in 1854. The State Printer's office was abolished in 1874 and replaced by the State Printing Office and the position of Superintendent
of State Printing. The Department of Finance succeeded to the powers and duties of the Superintendent of State Printing in
1921. After the 1927 reorganization the division became the Bureau of Printing within the Division of Service and Supply.
It again attained division status in 1947 and was transferred to the Department of General Services in 1963.
Division of State Lands
In 1929 a Division of State Lands was created within the Department of Finance. The division had its origins with the Office
of Surveyor General that was created by the State Constitution in 1849, as well as the State Land Office and the Register
of the State Land Office, which was established in 1858. The responsibilities of these agencies were transferred to the Department
of Finance in 1929 with the chief of the division acting as the ex officio Register of State Lands. In 1931 the division assumed
the duties of the Department of Agriculture with regard to the State Land Settlement Board. After the creation of the State
Lands Commission in 1938 the division administered the functions of the commission.
Division of Exhibits
The Division of Exhibits was created in 1929 when the powers and duties of the State Board of Agriculture, the State Agricultural
Society, and the District Agricultural Associations were transferred to the Department of Finance. A Board of Directors of
the State Agricultural Society was created in place of the State Board of Agriculture. The division, through the Agricultural
Society, managed the California State Fair in Sacramento. It also maintained contact with all of the county fairs and agricultural
associations.
Division of Personnel and Organization
The Division of Personnel and Organization was created in 1929 to take over the clerical and organizational survey work of
the State Civil Service Commission (Statutes of 1929, Chapter 293). On November 7, 1934, California voters passed Proposition
7, which abolished the Division of Personnel and Organization and created a State Personnel Board to administer the state
civil service system.
Division of Service and Supply
The Division of Service and Supply was created in 1927 in order to carry out various separate activities including operations
and maintenance of state buildings and grounds and state purchasing. Placed within the division were the Bureau of Purchases,
the Bureau of Printing, Bureau of Commerce, and Bureau of Buildings and Grounds. The division was abolished in 1947.
State Planning Board
A State Planning Board was created as a division of the Department of Finance in 1935. The board consisted of the Director
of Finance, Director of Public Works, and the Director of Natural Resources, all ex officio, and five citizens appointed by
the Governor. The Board cooperated with persons or organizations interested in devising means to develop the natural and economic
resources of the State and was also authorized to accept grants and gifts from the federal government that were for the purpose
of state planning (Statutes of 1935, Chapter 331).
Administration Division
In 1942 the Department of Finance created the Administration Division to serve as a staff of administrative analysts for the
Governor and other state officials and agencies. The analysts were to assist agency executives in finding better and easier
ways to do governmental work through improvements in organization and operations. Their work was often done through consultation,
surveys, and reports. The division was also responsible for investment of certain funds and for approving transactions in
securities by designated state agencies as well as procurement of insurance and public official bonds. The division supervised
the leases and contracts of the State and construction activities of the State.
Local Allocation Division
The Local Allocation Division was created to examine applications and requests for payment by local agencies for sites, plan
preparation, and construction funds for moneys allocated to cities and counties to prevent unemployment and to finance the
construction of needed public works at the end of World War II. The division administered the programs requiring allocation
of funds under the Postwar Unemployment and Construction Act and the Aid to Impoverished School Districts Act. In addition
the division was responsible for the supervision of the management phase of the Emergency Veterans' Housing Program.
Public Works and Acquisition Division
By 1947 a Division of Public Works and Acquisitions existed within the Department of Finance. The division served as the technical
staff for the State Public Works Board, which administered a building program of schools, hospitals, correctional facilities,
and state office buildings. The division rendered advisory service to state agencies in preparation of their requests to the
board for approval of construction, improvement, and equipment allocations, as well as the acquisition of property. In 1956
the division became the Property Acquisition Division.
Property Acquisition Division
In 1956 the Division of Public Works and Acquisitions' name was changed to the Property Acquisition Division. It continued
to serve as the real estate procurement agency of the department, including field investigations, appraisal procurement, purchase
agreement processing, review of court proceedings, and the rental of state acquired property.
Audits Division
The Audits Division was created by statute in 1942 with the authority to examine the books and records of every state agency
and to determine if all funds and property are accounted for and correctly recorded. The primary functions of the Audits Division
were to conduct regular detailed examinations of the books and records of all state agencies, and such other studies and special
audits as were requested.
Fairs and Expositions Division
With Statutes of 1941, Chapter 943, the Division of Exhibits became the Fairs and Expositions Division. The Fairs and Exposition
Division's duties included supervision of the varied activities of agricultural districts and county fairs; compilation of
a master premium list; and checking of individual premium lists and budgets submitted annually. In addition the division passed
on all proposed purchases of land as well as permanent improvements on fairgrounds, and made recommendations to the Director
of Finance in connection with the purchase or leasing of lands for fair purposes as well as allocation of monies from the
Permanent Improvement Fund for construction of fairgrounds.
Buildings and Grounds Division
The main function of the Buildings and Grounds Division was the maintenance and operation of all State-owned or rented office
buildings in California, as well as the upkeep and care of Capitol Park, Sutter's Fort, and the Indian Museum in Sacramento.
Purchasing Division
The Purchasing Division was created in the late 1930s. It oversaw the purchase of all supplies, materials, equipment, foodstuff,
and clothing for state departments, boards, commissions, and institutions. By the late 1940s the division acted as the central
purchasing agent for the State and maintained storerooms in Sacramento, San Francisco, and Los Angeles.
Accounts and Disbursements Division
Also created in the mid-1940s was the Division of Accounts and Disbursements. The Division of Accounts and Disbursements maintained
the accounting, personnel, and property records of the Department.
Division of Communications
The Division of Communications was created by Statutes of 1947, Chapter 1071, in order to coordinate the use of radio and
other communication facilities owned and operated by the state, cities, counties, and other political subdivisions. The Division
also acted as liaison and representative of the State before the Federal Communications Commission.
Administrative Services Office
The Administrative Services Office was added to the Department in 1959 and included an Accounting Section and Personnel Section.
The Accounting Section maintained records and accounts on all support and capital outlay appropriations made available to
the Department of Finance by the Legislature. The Personnel Section provided assistance to the operating division in such
personnel management areas as position classification, salary studies, disciplinary problems, and the recruitment and appointment
of personnel.
Budget Division
The Budget Division was responsible for the preparation of the State Budget and exercised general supervision of state financial
affairs. The division also assisted the Governor and the Director of Finance in the formulation of basic budget policies and
established standards for use in evaluation workloads and accomplishments, and served as a source of information for the Legislature
and the public on matters involving state revenues, expenditures, and other aspects of state fiscal operation. The Budget
Division also prepared Five-Year Building Programs, which were revised and extended annually.
Division of Organization and Cost Control
The division was created in 1955 (Chapter 1857, Statutes of 1955) and included the Management Analysis Section. The division
provided consultation service to state agencies and departments in organization, planning, policy development, records management,
tabulating systems, evaluation of methods and procedures, and development and installation of accounting systems. It was also
responsible for the preparation and maintenance of the State Administrative Manual.
Economic Development Agency
The Economic Development Agency was created in 1959 within the Department to provide leadership and coordination of the public
and private efforts to create continuing industrial and commercial growth in California.
1963 Reorganization
By Chapter 1786, Statutes of 1963, the Governor created the Department of General Services to provide centralized services
to state government. The legislation greatly changed the nature of the Department of Finance as the Department of General
Services assumed many of its duties. After 1963 the Department of Finance was concerned primarily with economic and revenue
forecasting, preparing and controlling the State Budget, and making essential studies to see that spending programs fit within
available means and to control the business and fiscal programs of the State. The Department also performed audits to insure
that funds were used to accomplish the purposes for which they were appropriated, and developed long-range plans to meet the
needs of the state. Effective October 1, 1963, the following divisions and units of the Department of Finance were transferred
to the Department of General Services: Administrative Services Division, Division of Buildings and Grounds, Building Standards
Commission, Communications Division, Local Allocation Division, Organization and Cost Control Division, Printing Division,
Printing Division, Property Acquisition Division, Purchasing Division, and State Board of Control. The following divisions
continued to be part of the Department of Finance: Budget Division, Audits Division, Office of Planning, State Lands Division,
and the Economic Development Agency.
Additional responsibilities were given to the Department of Finance following the reorganization of 1963. The work of the
Audits Division, Budgets Division, and State Lands Division continued. A Program and Policy Office assisted in the formulation
of program and administrative policy of the state by gathering and evaluating significant legislative and administrative items
and presented these to the Director of Finance and the Governor.
After 1975, the Department was organized into two large administrative divisions: the Executive Office and the Operational
Office. The units within the Operational Office changed often and included at various times the following: Internal Operations
or Administration; Accounting Systems; Education Systems; Financial, Economic and Demographic Research and Business and Transportation;
Financial and Economic Research; Fiscal Management Audits; S.A.M. Coordinator; Fiscal Systems and Consulting Unit; General
Government, Agricultural and Services, Judicial, Resources, Energy and the Environment; Health and Welfare; Legislation, Program
Evaluation and Intergovernmental Relations; Local Mandate Legislation and Intergovernmental Relations; State Office of Information
Technology; Business Services; California State Accounting and Reporting Systems (CALSTARS); California Fiscal Information
System, (CFIS); Budget Operations Support; Financial and Performance Audit; Corrections, Judicial, General Government and
State Consumer Services; and Legislation and Intergovernmental Relations.
The records of the Department of Finance consist of 450 cubic feet of textual records spanning the years 1922-2002. The files
consist of correspondence, memoranda, notes, reports, surveys, newspaper clippings, photographs, analyses, and similar material.
The largest volume of these records is Bill Files covering the years 1959-1992. Researchers should be aware that additional
Bill Files are available for research and can be accessed through the Accession Records Worksheets. Topics covered throughout
the collection include state budgetary matters, fiscal and administrative management of state government, and the wide range
of responsibilities of the Department of Finance.
The files are organized into twelve subgroups: Department of Finance; Administration Division; Division of Administrative
Services; Division of Audits; Budget Division; Division of Budgets and Accounts; Budgets and Operations Division; Executive
Office; Local Allocation Division; Operational Offices; Program and Policy Office; and State Lands Division. The materials
described under the Department of Finance grouping are Bill Files from 1983-1992. These materials were transferred to the
State Archives under various administrative units, but were interfiled by legislative session in order to facilitate retrieval
of the records by researchers.
Within the Audit Division records is the series State Agency Audit Reports (R157.21) covering the years 1912-1960. These reports
provide insight into the financial activities of state agencies for nearly a 50-year period and include information on fiscal
operations, conditions of records and record keeping, systems of internal control, recommendations, and occasionally agency
history background.
The records of the Division of Budgets and Accounts strongly reflect the Department of Finance's role in budget development
and fiscal management of the State and state agencies. In particular the Links Correspondence (R157.10) show the fiscal management
of the State and agencies during the 1930s and the early 1940s. Additionally the State Agency Survey Reports (R157.5) and
the State Agency Surveys (R157.6) demonstrate the division's work in improving government efficiency. Researchers will be
able to examine organizational changes in California State government as well as post-World War II administration of government.
Within the records of the Budget Division are the College Campus Development Plans (R157.13) that will be useful for researchers
looking at the construction and development of campuses in the University of California and California State Colleges systems
during the period of great growth of the 1960s. The files contain plans for individual campuses and buildings and discussion
about the requests for approval of the work.
The following terms have been used to index the description of this collection in the library's online public access catalog.
California. Department of Finance
Finance, Public--California.
Budget--California
California--Appropriations and expenditures
Related Material at the California State Archives
Selected Archives (Dept. of Finance)
Board of Control
Board of Examiners
Dept. of General Services
Dept. of Finance Historical Photographs (Links Collection)