BILL NUMBER:  AB 1765
  ITEM VETO DATE: 08/02/2003




Gray DavisAugust 2, 2003 Governor State of California Governor's
Office

I object to the following appropriations contained in Assembly Bill
1765.

Item 0250-490Reappropriation, Judicial Council.  I delete Provision
3.

I am deleting Provision 3 of this item as it is unnecessary and
infringes on a process that is already well underway.  The search
process should be left up to the Judicial Council, in conjunction
with the Department of General Services as the real estate experts,
to determine the best site that meets the programmatic needs of the
court who will ultimately reside on the property.

Item 3600-001-0001For support of Department of Fish and Game.  I
revise this item by deleting Provision 2.

Provision 2 requires the Department of Fish and Game to develop a
long-term sport fishing hatchery program and prohibits the Department
from closing any fish hatcheries until January 1, 2004.  This
language inappropriately restricts administrative flexibility in
addressing funding priorities with limited resources.

Item 3760-301-0005For capital outlay, State Coastal Conservancy.  I
delete this item and Provisions 1, 2, and 3.

This language would exclude priority projects within San Luis Obispo
and Santa Barbara counties from competing for these excess funds.  I
believe that any unencumbered balance from this Proposition 12
appropriation should revert to the Coastal Conservancy to be
allocated to priority projects using established guidelines and
criteria.

I am deleting Provisions 1, 2, and 3 to conform with this action.

Item 3860-496Reversion, Department of Water Resources.  I delete
Provision 1 of this item.

I am deleting this language that would prohibit the transfer of funds
from the General Fund to the Colorado River Management Account.  A
negotiated settlement of the Colorado River Quantification Settlement
Agreement (QSA) is critical to ensure that the States water needs
are met.  This language would weaken the Executive Branchs
flexibility in negotiating with local water agencies that rely on
water from the Colorado River, and reaching an ultimate agreement on
the QSA.

Item 41200010001For support of Emergency Medical Services Authority.
I delete Provision1.

I am deleting Provision 1 because this language is not necessary.
Provision 1 specifies that a reduction of $138,000 be made to State
operations only, and not to local assistance.  The Emergency Medical
Services Authority has already identified State operations reductions
of $68,000 General Fund in personal services and $70,000 in
operating expenses and equipment from the Disaster Medical Services
Division.

Item 4130-001-0632For support of California Health and Human Services
Agency Data Center.  I delete Provision 6.

I am deleting Provision 6, which would require the California Health
and Human Services Agency Data Center to reduce its rates by at least
8 percent to achieve total savings of approximately $20,000,000 in
client departments budgets.  While I support the need for the Data
Center to set rates that provide cost effective information
technology services, this language would hamper the Data Centers
ability to do so.  Rates set by the Data Center are predicated on
both costs and projec ted utilization.  To the extent that client
departments funding for information technology is reduced, those
departments would not have appropriate resources to pay for increased
utilization.  Any decrease in utilization from that projected in
setting the rates would preclude the ability to actually lower the
rates.  This action conforms to my action on SEC. 9.70.

Item 4140-111-0236For local assistance, Office of Statewide Health
Planning and Development.  I revise this item by deleting Provision
1.

In order to correct a technical error in the Budget Bill, I am
deleting Provision 1, which would eliminate funding for the Rural
Health Small Grants Program if legislation is enacted to amend the
provisions of the Tobacco Tax and Health Protection Act (Proposition
99) to authorize Proposition 99 funds to be used to draw down federal
funds for the Rural Health Demonstration Program within the Managed
Risk Medical Insurance Board.  Although legislation has been enacted
to authorize the use of Pro position 99 funds for this purpose, there
are sufficient Proposition 99 funds to provide funding for both
programs in 2003-04.  Therefore, I am sustaining the funding for the
Rural Health Small Grants Program, which provides health care
services to approximately 18,500 uninsured persons in rural areas of
the State.

Item 4170-001-0001For support of Department of Aging.  I delete
Provision 1.

I am deleting Provision 1 because it specifies that a reduction made
to State operations cannot be allocated in a manner that affects
State positions that provide direct services for the Department of
Aging to the public or that administer the federal Older Americans
Act programs.  This language would restrict the Administrations
ability to prioritize resources and deal with the legislative
reduction based on programmatic needs of the Department of Aging.

Item 4220-001-0001For support of Child Development Policy Advisory
Committee.  I delete this item.

I am deleting the legislative augmentation of $668,000 ($367,000
General Fund and $301,000 Reimbursements), 5.4 positions for
administrative support, and funding for the Child Development Policy
Advisory Committee.  The Committee is no longer functioning as all
positions are currently vacant.  Further, other State entities can be
consulted for policy information and recommendations regarding child
development and child care issues, at no additional cost to the
State.

Item 4260-101-0890For local assistance, Department of Health
Services.  I reduce this item from $16,566,448,000 to
$16,409,608,000.

I am reducing this item by $156,840,000 to correct a technical error
in the Budget Bill.  This technical veto is consistent with the
Legislatures intent and legislative actions taken in this item.

Item 4440-101-0001For local assistance, Department of Mental Health.
I revise this item by reducing:

(1)10.25-Community Services--Other Treatment $1,139,412,000 to
$1,127,228,000

I am reducing Program 10.25 by $12,184,000 as a technical adjustment
in order to conform to the legislative action to implement a
5-percent reduction to Mental Health Managed Care.

Item 5240-001-0001For support of Department of Corrections.  I reduce
this item from $4,739,474,000 to $4,739,327,000 by reducing:

(3)31-Community Correctional Program from $512,902,000 to
$512,755,000.

I am sustaining the $2,600,000 legislative augmentation to implement
a program to place inmates in residential aftercare treatment 120
days prior to release from prison, rather than upon parole.  However,
due to my strong concerns regarding public safety, I am directing
the Department to develop regulations that clearly specify that
inmates will not be eligible for this program who have been
previously convicted of a serious or violent offense, or who are
presently serving a sentence for a seri ous or violent offense.

I am sustaining the $45,000,000 legislative augmentation to implement
a Substance Abuse Treatment Control Unit program for non-violent
parole violators who are not eligible for Proposition 36 and to
implement a community detention program utilizing structured
sanctions for other low-level parole violators.  However, to ensure
the safety of the citizens of California, I am directing the
Department to develop regulations specifying that no individuals with
an underlying serious or violent offense , or who have previously
been convicted of a serious or violent offense will be eligible for
these programs.  In addition, these regulations are to specify that
the community detention programs are only available if the parole
violation is of a minor, technical nature.

I am deleting the $147,000 legislative augmentation for the Sexually
Violent Predators (SVPs) Conditional Release program, which the
Legislature requested be transferred from the Department of Mental
Health to the Department of Corrections (CDC).  SVPs are repeat sex
offenders who are diagnosed with mental illnesses and ordered into
inpatient treatment upon completion of their criminal sentences.  The
Conditional Release program is necessary to monitor offenders and
protect the public when cour ts order SVPs released into the
community.  The supervision, monitoring, and clinical treatment
provided to SVPs under conditional release are essential to ensuring
public safety.  It is unclear at this time whether the CDC is
appropriately equipped to provide all of the supervision and
treatment services for this population.  However, I will instruct the
departments to explore the most effective and least costly way to
provide supervision for these SVPs.

Item 6110-001-0890For support of Department of Education.  I reduce
this item from $129,929,000 to $129,304,000 and revise Provisions 9
and 24.

I am reducing the legislative augmentation for support of special
education dispute resolution services amount by $123,000.  This
technical reduction eliminates funding for salary increases
negotiated by the contractor.  As the Budget provides for no
augmentations for state employees, I believe it would be inequitable
to fund salary increases for contracted employees.  With this
reduction, $10,140,000 remains available for dispute resolution
services.  I am revising Provision 9 to conform to th is action.

9.Of the funds appropriated in this item, $10,263,000 $10,140,000 is
for dispute resolution services, including mediation and fair hearing
services, provided through contract for the Special Education
Program.

I am reducing the $1,700,000 legislative augmentation for support of
the Ravenswood City School Improvement Program by $502,000.  This
technical reduction reflects the payment recently made for this
purpose through the legal claim process.  With this reduction,
$1,198,000 remains available to fully comply with the court-ordered
payment for the States share of monitoring this districts special
education program.  I am revising Provision 24 to conform to this
action.

24.Of the funds appropriated in this item $1,700,000 $1,198,000 shall
be allocated to the Ravenswood City School District to support the
costs of the court-ordered Ravenswood School Improvement Program.

Item 6870-101-0001For local assistance, Board of Governors of the
California Community Colleges (Proposition 98).  I revise this Item
by revising Provision 2.

I am revising Provision 2 to delete language that would limit any
apportionment reduction for a given community college district
related to concurrent enrollment to no more than ten percent of the
statewide amount in order to ensure an equitable allocation of the
reductions.  The ten percent limitation would result in potentially
disproportionate reductions to other districts.  The provision would
still provide sufficient authority for the Chancellor to mitigate
reductions in the event such red uctions would threaten fiscal
solvency, which I believe to be sufficient.

2.Of the funds appropriated in Schedule (1), Apportionments:  (a)Up
to $100,000 is for a maintenance allowance, pursuant to regulations
adopted by the board of governors.  (b)Up to $500,000 is to reimburse
colleges for the costs of federal aid repayments related to assessed
fees for fee waiver recipients. This reimbursement only applies to
students who completely withdraw from college before the census date.
  (c)The amount appropriated in this item reflects a reduction of $25
million and approximately 6,500 full-time-equivalent students (FTES)
based on a policy that revises allowable parameters for the claiming
of state funding for concurrent enrollment. The chancellor shall
allocate this reduction on a basis proportionate to the level of FTES
reported by districts for concurrent enrollment in physical
education, recreation, study skills, and personal development
courses. However, nothing in this provision shall prohibit those
districts from receiving growth allocations, as warranted, to the
extent that designated funds are available. No district shall receive
a funding reduction that exceeds 10 percent of the statewide total
reduction made pursuant to this subdivision. Further, the chancellor
may limit the amount of reduction for a district if, in the judgment
of the chancellor, the district's financial integrity otherwise would
be jeopardized. The chancellor shall report to the Legisl ature and
the Governor by January 1, 2004, on how the reduction was allocated.
(d)Notwithstanding any other provision of law or regulation, the
chancellor shall not reduce district workload obligations for a lack
of a funded cost-of-living adjustment.

Item 7350-001-0001For support of Department of Industrial Relations.
I delete Provision 1.

I am deleting Provision 1 because it conflicts with Labor Code
provisions, which direct the Industrial Welfare Commission to conduct
public hearings in at least three California cities, as specified.
This language would prevent the Commission to choosing the most cost
effective venue for meetings.

I am sustaining the $27,095,000 augmentation which would provide
partial year funding for the 80 percent General Fund share of workers
compensation program costs. This budget assumes that the 100 Percent
User Funding proposal that I proposed in December will be enacted as
a part of a larger workers compensation reform package.  I have
already stated my support and intent to enact reforms in the workers
compensation system.  I view this budget augmentation as a signal
that t he Legislature intends to include 100 Percent User Funding in
the workers compensation reform package.  If user funding is not
included in those reforms and enacted in a timely fashion, the
Department will incur a significant General Fund deficiency.

Item 8100-101-0001For local assistance, Office of Criminal Justice
Planning.  I delete Provision 3.

I am deleting Provision 3, as a technical correction, which would
require the Office of Criminal Justice Planning to maintain all
matching federal discretionary funds for the Homeless Youth Project
and the Youth Telephone Emergency Referral Program for at least this
fiscal year.  This language is unnecessary since Schedules (4) and
(5) of this item provide appropriations specifically intended to
support the Homeless Youth Project and Youth Telephone Emergency
Referral Program, including the use  of these funds to match any
available federal funds.

Item 8180-101-0001For local assistance, payment to counties for costs
of homicide trials.  I delete Provision 3.

I am deleting Provision 3, which allows Stanislaus County to be
reimbursed for 100 percent of its costs associated with the homicide
trial of the People v. Scott Peterson.  There is an existing
procedure by which counties can procure reimbursements for costly
homicide trials.  Stanislaus County can apply for funds for this
trial through that procedure; therefore this language is unnecessary.


Item 9210-103-0001For local assistance, Local Government Financing.
I delete this item and Provisions 1, 2, 3, and 4.

I am deleting this legislative augmentation, which restored $500,000
of my proposed elimination of the special supplemental subventions
for redevelopment agencies.  These resources were provided to ensure
that debt obligations supported by the special supplemental
subventions would not be harmed.  If redevelopment agencies have debt
secured by that funding, there is an established process to ensure
that they are not harmed.

I am deleting Provisions 1, 2, 3, and 4 to conform to this action.

SEC. 9.70Information Technology Savings from Reduced Rates at the
Health and Human Services Agency Data Center.  I delete this Control
Section.

I am deleting this control section because it would require that
(1)the Health and Human Services Agency Data Center reduce its rates
by 8percent, (2)the approximate $20 million in resultant savings be
reduced from client department budgets for information technology,
(3)the Department of Finance (Finance) capture the resultant savings
and revert the funding to the appropriate fund, and (4)Finance report
to the Legislature on adjustments be made by November 1,  2004.
While I support the need for the Data Center to set rates that
provide cost effective information technology services, I believe
this control section would hamper the Data Centers ability to do so.
Rates set by the Data Center are predicated on both costs and
projected utilization.  To the extent that client departments funding
for information technology is reduced, those departments would not
have appropriate resources to pay for increased utilization.  Any
decrease in u tilization from the projected levels would preclude the
ability to actually lower the rates.  Additionally, the requirement
for the Data Center to reduce its rates is unnecessary, because the
Data Center plans to reduce rates by an average of 8percent for
200304.

With the above deletions, revisions, and reductions, I hereby approve
Assembly Bill 1765.



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