BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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          |SENATE RULES COMMITTEE            |                  AB 1765|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
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                                 THIRD READING


          Bill No:  AB 1765
          Author:   Assembly Budget Committee
          Amended:  7/27/03
          Vote:     27 - Urgency

           
          WITHOUT REFERENCE TO COMMITTEE 

           SENATE FLOOR  :  24-14, 6/25/03
          AYES:  Alarcon, Alpert, Bowen, Burton, Cedillo, Chesbro,  
            Ducheny, Dunn, Escutia, Figueroa, Florez, Karnette,  
            Kuehl, Machado, Murray, Ortiz, Perata, Romero, Scott,  
            Sher, Soto, Torlakson, Vasconcellos, Vincent
          NOES:  Aanestad, Ackerman, Ashburn, Battin, Brulte, Denham,  
            Hollingsworth, Johnson, Knight, Margett, McClintock,  
            McPherson, Oller, Poochigian
          ABSENT/NO VOTE RECORDED:  Morrow, Speier

           SENATE FLOOR  :  13-26, 7/15/03
          AYES:  Aanestad, Ackerman, Ashburn, Battin, Brulte,  
            Hollingsworth, Johnson, Knight, Margett, McPherson,  
            Morrow, Oller, Poochigian
          NOES:  Alarcon, Alpert, Bowen, Burton, Cedillo, Chesbro,  
            Ducheny, Dunn, Escutia, Figueroa, Florez, Karnette,  
            Kuehl, Machado, McClintock, Murray, Ortiz, Perata,  
            Romero, Scott, Sher, Soto, Speier, Torlakson,  
            Vasconcellos, Vincent
          ABSENT/NO VOTE RECORDED:  Denham

           ASSEMBLY FLOOR  :  Not relevant


           SUBJECT  :    State Budget

                                                           CONTINUED





                                                               AB 1765
                                                                Page  
          2

           SOURCE  :     Author


           DIGEST  :    This bill enacts the 2003-04 State Budget, which  
          contains $70.825 billion in General Fund monies.

           ANALYSIS  :    

           Budget Process Overview

           With the submission of the Governor's Budget, which is  
          required by January 10 of each year, the chair of the  
          Senate Budget and Fiscal Review and Assembly Budget  
          Committees each introduce a Budget Bill which contains  
          appropriations to finance the program levels proposed in  
          the Governor's Budget.  Throughout the spring, and with the  
          assistance of committee consultants and the Legislative  
          Analyst, who prepares a detailed analysis of the Governor's  
          Budget, the fiscal committees of each House of the  
          Legislature hold hearings to determine if changes should be  
          made in the Governor's Budget.  At these hearings,  
          representatives from the state department whose Budget is  
          being heard, the State Department of Finance, the  
          Legislative Analyst, and the public may be called upon to  
          provide official testimony.

          Changes desired by the Administration concerning events  
          occurring after the Governor's Budget is submitted are  
          included in "Finance Letters" addressed to and considered  
          by the Senate and Assembly Budget committees.

          In mid-May, the State Department of Finance updates its  
          estimates of current year, and budget year revenues,  
          expenditures (including any final Administration  
          expenditure proposals) and surplus.  This provides the  
          Legislature with the most current estimate of resources  
          that will be available for expenditure.

          At the completion of all the hearings, each House passes  
          its Budget Bill, a Conference Committee of six legislators  
          is chosen to receive differences in the two bills and to  
          incorporate a "Conference Committee Version" into one of  
          the bills.  The bill is then sent to the floor of each  
          House and, if passed by two-thirds, is enrolled to the  







                                                               AB 1765
                                                                Page  
          3

          Governor.  If it is not passed, a new Conference Committee  
          is formed and the conference process is repeated.  Some  
          times it has become necessary for the Senate Pro Tem,  
          Assembly Speaker, Senate Minority Leader, Assembly Minority  
          Leader, and the Governor to meet to resolve major issues.   
          The Legislature is required under the State Constitution to  
          pass the Budget by June 15th of each year.

          Upon receipt of the Budget Bill, the Governor meets with  
          his advisors to make reductions or eliminate particular  
          items of expenditure (known as the item-veto).  The  
          Governor then signs the Budget Bill, and it becomes the  
          Budget Act.  Under the State Constitution, the Governor  
          must sign the Budget by June 30th of each year.  The  
          Legislature may then consider overriding any vetoes the  
          Governor has made and may do so by a two-thirds vote of  
          each House.

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  No


          DLW:sl  7/27/03   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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