California’s Little Hoover Commission

The genius of California democracy is that when public funds or resources are used, they are dispersed according to a vetted plan and the individuals spending the money are accountable to citizen oversight. 

In each of California’s 58 counties, this citizen oversight is provided by the Civil Grand Jury, which is charged with looking into the affairs of local government and issuing annual reports with suggestions for improvement.

At the state level, this is the job of the “Little Hoover Commission.”

The “Milton Marks ‘Little Hoover’ Commission on California State Government Organization and Economy,” as it is more formally known, was established under California law in 1962 as an independent state agency with a mandate to study and investigate operations for efficiency and cost-effectiveness. The Commission issues reports and offers recommendations and proposals for legislation to improve the functioning of state government.

The commission is inspired by the Hoover Commissions formed in 1947 by President Harry Truman, who appointed former former President Herbert Hoover as chair and tasked him with generating recommendations for the reorganization of the federal government. President Dwight Eisenhower revived the commission in 1953, once again appointing Hoover to head it.

California’s Little Hoover Commission is a bipartisan board composed of 13 members—five private citizens appointed by the Governor, four private citizens appointed by the Legislature, two State Senators and two State Assemblymembers. The nine private citizens serve staggered four-year terms, while the elected members serve at the pleasure of the appointing authority. Commissioners serve without compensation.

The Commission has broad authority to investigate state agency operations and functions, as well as expenditures of public funds. It is authorized to issue subpoenas to compel testimony of witnesses, and to produce records, accounting and other documentation. Its powers are not limited to state agencies or personnel, and may extend to counties, municipalities and other lower levels of government as needed.

Since its inception, the Little Hoover Commission has issued hundreds of reports covering a variety of topics extending beyond the operation of state government and including the economy, education, public safety, transportation and infrastructure, energy, health and the environment. 

The commission is also specifically charged with oversight of the California State Auditor’s Office. Its comprehensive review of the annual state audit is the basis for many recommendations to the Governor and Legislature for improvements in operations and reductions in cost—without negative impact to state services. It also contracts an independent audit of the California State Auditor to ensure accuracy in reporting and compliance with state laws.

As of this writing, current areas of Little Hoover study include California Electricity Costs, the Governor’s Reorganization Plan for 2025, and Public-Philanthropic Partnerships. Bills under consideration in the Legislature during the 2025-2026 session are informed in part by Commission recommendations covering the California Environmental Quality Act (CEQA), homeowners insurance, and open meetings.

As the most populous state in the union with an economy ranking among the wealthiest of nations, the job of keeping California working for the people is a complex and messy operation. The Little Hoover Commission is one way the state structurally works on working better.