I believe they already have the equipment, it's just a matter of installing it. Procurement happened a long time ago. The deadline for that passed a long time ago and they purchased everything they needed so they wouldn't lose the budgeted money.
Much of the funding comes out of vehicle registration fees and road/gas taxes. Installation has been delayed due to a number of factors, including "you can only do so much with the staff resources available."
Also, they want to be in compliance with the FCC. I'm speculating here, but it could make it harder to acquire the frequencies they'll need in the future for the statewide 700 system if they don't get compliant and fast. I'm not saying the FCC would deny applications, but they could delay things and make it a little more difficult in the future, and could take a "well you weren't in a hurry to get compliant in '13, why are you in such a hurry now?" stance.
The State already has their 700 MHz frequencies, and they don't have to apply for individual licenses. They do, however, have to show they are using their 700 MHz spectrum, and the CHP is key in meeting the FCC's mandates.
Also, OES is now in charge of public safety communications. It would be pretty embarrassing for OES if they got a notice or fined by the FCC in their first year on the job. I think one of the reasons why the CHPERS project slowed is because of the transfer of the agency from CTA to OES.
OES is now the agency that the Public Safety Communications Division (PSCD) is within, just as CTA was the agency that PSCD was within. It is still PSCD's responsibility (as the Governor's designee) to ensure State land-mobile operations are in compliance. Any 'black eyes' stay in PSCD, the same as it was under CTA, and DGS before that.
As to the delays on CHPERS, see my comments above as to one of the reasons for the delays (there are other significant reasons, also, which I won't get into).