BILL NUMBER:  AB 88
VETOED	DATE: 09/23/2008






Arnold Schwarzenegger                September 23, 2008
Governor



                   State of California
                    Governor’s Office

I object to the following appropriations contained in
Assembly Bill 88.



Item 0690-001-0001-For support of Office of 
Emergency Services.

I am sustaining Provision 4, which suspends the 
Government Code Section 8581.5 requirement for the 
biennial report on emergency preparedness for 
catastrophic disasters, which was scheduled to be 
published in 2008-09.  However, I am directing the 
Office of Emergency Services to prepare this report to 
the extent possible using existing resources.

Item 0690-102-0001-For local assistance, Office of 
Emergency Services.  I revise this item by deleting
Provisions 3 and 5.

Provision 3 requires the Office of Emergency 
Services to allocate $800,000 to the Central Coast 
Rural Crime Prevention Program.  Funding for this 
program was reduced by 10 percent, but this 
language was not amended to reflect the reduced 
amount.  This technical veto is necessary to ensure 
that all grant recipients receive the same level of 
reduction.  Therefore, I am directing the Office of 
Emergency Services to allocate the grant funding in a
manner consistent with this budget language adjusted 
for the 10 percent reduction.

Provision 5 would require the Office of Emergency 
Services to use a competitive grant process for 
allocating funds to California Multijurisdictional 
Methamphetamine Enforcement Teams, and would 
create limitations on the minimum and maximum 
amounts of grants awarded under this program.  This 
language is unnecessarily restrictive; therefore, I am 
vetoing this provision.

Item 2640-101-0046-For local assistance, State
Transit Assistance.  I reduce this item from 
$406,434,000 to $306,434,000.

I am reducing this item by $100,000,000 for the State
Transit Assistance program so that sufficient funding 
will be available in the Public Transportation Account 
to provide full reimbursement of the General Fund for 
its Home-to-School Transportation costs.  While this 
budget bill provides for a modest reserve in 2008-09, 
it fails to make the necessary statutory spending
reductions and revenue increases needed to 
eliminate the state's structural budget deficit going 
forward.  At the same time, constitutional 
requirements, federal law, and court required 
payments drive the majority of the spending in any 
budget, and limit my ability to reduce spending.  As a 
result, I have an obligation to reduce spending when 
my veto power is adequate to do so.  Consequently -- 
and in order to further ensure that this budget remains 
in balance -- I am taking the difficult but necessary 
action reflected in this veto to further control state 
spending.

With the $5 billion in transit and intercity rail funding 
provided in Proposition 1B, this will allow a substantial 
increase in the capacity, safety, and reliability of 
public transportation throughout the state.  The 
amount I am retaining in this item also continues 
program funding at a sustainable level.

Item 2660-001-0042-For support of Department of
Transportation.

I am sustaining the Legislature’s funding for capital 
outlay support.  In the May Revision, Iproposed a 
reduction in positions and dollars for engineering, 
design, environmental studies, and other work.  For 
the declining amount of ongoing work, I proposed to 
use an increased share of contractual services, 
consistent with the provisions of Proposition 35, 
approved by the voters in 2000.

The Legislature, however, funded 90 percent state 
staff and 10 percent contract staff.  Because it will 
take a year or more to hire and train state staff as 
existing staff leave, I am concerned that this action 
will delay projects by a year or more and end up 
costing more than using contractual services.  
Moreover, because the funding from Proposition 1B is 
one-time and will be exhausted over the next four 
years, the hiring of new permanent state staff could 
lead to the need for future layoffs.  An appropriate 
balance between state staff and contract staff will 
enable the state to improve its highways, roads, 
bridges, and railroad crossings immediately.  
Therefore, I am directing the Director of the 
Department of Transportation to take all steps 
necessary to deliver these projects as quickly as 
possible, including an increased use of contractual 
services beyond the level reflected in the budget 
action, but within the funding level the Legislature has 
provided. 

Item 3540-001-0001-For support of Department of
Forestry and Fire Protection.  I reduce this item from 
$560,045,000 to $557,896,000 by reducing:

(3)  12-Resource Management from $62,597,000 to
$60,448,000;

(4)  20.01-Administration from $67,198,000 to
$66,911,000; and

(5)  20.02-Distributed Administration from -
$66,536,000 to -$66,249,000.

I am reducing this item by $2,149,000.  While this 
budget bill provides for a modest reserve in 2008-09, 
it fails to make the necessary statutory spending 
reductions and revenue increases needed to 
eliminate the state's structural budget deficit going 
forward.  At the same time, constitutional 
requirements, federal law and court required 
payments drive the majority of the spending in any 
budget, and limit my ability to reduce spending.  As a 
result, I have an obligation to reduce spending when 
my veto power is adequate to do so.  Consequently -- 
and in order to further ensure that this budget remains 
in balance --- I am taking the difficult but necessary 
action reflected in this veto to further control state 
spending.


However, I am sustaining $1,093,000 and 10.0 
positions in the Resource Management program to 
fund vegetation management efforts because fuel 
reduction projects are a cost-effective way to reduce 
the number and size of catastrophic wildfires.

Item 3900-001-0044-For support of State Air 
Resources Board.  I revise this item by reducing:

(2)  25-Stationary Source from $57,232,000 to
$55,232,000.

(6)  Amount payable from the General Fund (Item 
	3900-001-0001) from -$2,189,000 to 
	-$189,000

I am revising this item to conform to the action I have
taken in Item 3900-001-0001.

Item 4260-101-0001-For local assistance, 
Department of Health Care Services. I revise this item 
by reducing:

(1)  20.10.010-Eligibility (County Administration) 
	from $2,697,119,000 to $2,689,743,000, 

(8)  Amount payable from the Federal Trust Fund 
	(Item 4260-101-0890) from -$21,448,993,000 to 
	-$21,441,617,000;

and by deleting Provision 14.

I am revising this item to conform to the action I have
taken in Item 4260-101-0890.

I am also deleting Provision 14 from this item, which 
directs the Department of Health Care Services to 
provide the Legislature with specific options for 
improving the Medi-Cal fee-for-service program.  
While I share the Legislature’s interest in improving 
the coordination of care for Medi-Cal beneficiaries 
and believe that such efforts will better serve clients 
and reduce costs, I am deleting the provision as it 
would limit my discretion in developing a budget 
proposal.

Item 4260-101-0890-For local assistance, 
Department of Health Services.  I reduce this item 
from $21,448,993,000 to $21,441,617,000.

I am reducing this item by $7,376,000 to conform to 
my action in Items 4170-101-0001, 4200-001-0001, 
4265-111-0001, 4440-001-0001, and 5180-001-0001.

Item 4300-101-0001-For local assistance,
Developmental Services.  I reduce this item from 
$2,384,027,000 to $2,382,799,000 by reducing:

(2)  10.10.020-Purchase of Services from
$3,372,900,000 to $3,370,854,000, and

(4)  Reimbursements from -$1,308,405,000 to -
$1,307,587,000.

I am reducing this item by $2,046,000 ($1,228,000 
General Fund and -$818,000 Reimbursements).  This 
technical veto is consistent with the pass through of 
the 
January 1, 2009 federal Supplemental Security 
Income cost of living adjustment.

Item 4440-101-0001-For local assistance, 
Department of Mental Health.  I reduce this item from 
$480,163,000 to $480,111,000 by reducing:

(5)  10.97-Community Services-Healthy Families
from $24,805,000 to $24,653,000, and 

(6)  Reimbursements from -$1,208,165,000 to -
$1,208,065,000.

I am reducing this item by $152,000 ($52,000 General 
Fund and $100,000 Reimbursements) for the Healthy 
Families program.  While this budget bill provides for a 
modest reserve in 2008-09, it fails to make the 
necessary statutory spending reductions and revenue 
increases needed to eliminate the state's structural 
budget deficit going forward.  At the same time, 
constitutional requirements, federal law and court 
required payments drive the majority of the spending 
in any budget, and limit my ability to reduce spending.  
As a result, I have an obligation to reduce spending 
when my veto power is adequate to do so.  
Consequently -- and in order to further ensure that this 
budget remains in balance -- I am taking the difficult 
but necessary action reflected in this veto to further 
control state spending.
Item 5180-101-0001-For local assistance, 
Department of Social Services.  I reduce this item 
from $2,808,386,000 to $2,738,386,000 by reducing:  

(1)  16.30-CalWORKs from $5,290,712,000 to 
$5,220,712,000.

I am reducing this item by $70,000,000 for the 
CalWORKs program.  This funding would have been 
available to counties as part of their single allocation, 
which can be used for county administration, 
employment services, and child care.  Even with this 
reduction in funding, the single allocation provided to 
counties still increases from 2007-08 to 2008-09.  
While this budget bill provides for a modest reserve in 
2008-09, it fails to make the necessary statutory 
spending reductions and revenue increases needed 
to eliminate the state's structural budget deficit going 
forward.  At the same time, constitutional 
requirements, federal law and court required 
payments drive the majority of the spending in any 
budget, and limit my ability to reduce spending.  As a 
result, I have an obligation to reduce spending when 
my veto power is adequate to do so.  Consequently -- a
nd in order to further ensure that this budget remains 
in balance -- Iam taking the difficult but necessary 
action reflected in this veto to further control state 
spending.

Item 5180-141-0001-For local assistance, 
Department of Social Services.  I reduce this item 
from $480,516,000 to $478,478,000 by reducing:

(1)  16.75-County Administration and Automation 
	Projects from $1,194,774,000 to $1,192,736,000.

I am reducing this item by $2,038,000 for the Work 
Incentive Nutritional Supplement program.  By 
eliminating this funding, I am delaying implementation 
of this program for one year.  This will allow the 
Department of Social Services to study this program 
and ensure it is consistent with federal rules.  Further, 
while this budget bill provides for a modest reserve in 
2008-09, it fails to make the necessary statutory 
spending reductions and revenue increases needed 
to eliminate the state's structural budget deficit going 
forward.  At the same time, constitutional 
requirements, federal law and court required 
payments drive the majority of the spending in any 
budget, and limit my ability to reduce spending.  As a 
result, I have an obligation to reduce spending when 
my veto power is adequate to do so.  Consequently -- 
and in order to further ensure that this budget remains 
in balance -- I am taking the difficult but necessary 
action reflected in this veto to further control state 
spending.

Item 5180-151-0001-For local assistance, 
Department of Social Services.  I reduce this item 
from $757,135,000 to $750,727,000 by reducing:  

(1)  25.30-Children and Adult Services and 
	Licensing from $2,151,082,000 to 
	$2,139,650,000;

(2)  25.35-Special Programs from $22,682,000 to 
	$22,101,000;

(3)  Reimbursements from -$143,894,000 to 
	-$138,589,000; and

(6)  Amount payable from the Federal Trust Fund 
	(Item 5180-151-0890) from -$1,263,716,000 to 
	-$1,263,416,000.

I am reducing this item by $11,432,000 ($6,127,000 
General Fund) for the Adult Protective Services 
program, and by $581,000 ($281,000 General Fund) 
for the Deaf Access program.  While this budget bill 
provides for a modest reserve in 2008-09, it fails to 
make the necessary statutory spending reductions 
and revenue increases needed to eliminate the state's 
structural budget deficit going forward.  At the same 
time, constitutional requirements, federal law, and 
court required payments drive the majority of the 
spending in any budget, and limit my ability to reduce 
spending.  As a result, I have an obligation to reduce 
spending when my veto power is adequate to do so.  
Consequently -- and in order to further ensure that this 
budget remains in balance -- I am taking the difficult 
but necessary action reflected in this veto to further 
control state spending.

Item 5180-151-0890-For local assistance, 
Department of Social Services.  I reduce this item 
from $1,263,716,000 to $1,263,416,000.

I am reducing this item to conform to the action I have
taken in 5180-151-0001 related to the Deaf Access 
program.

Item 5225-001-0001-For support of the California
Department of Corrections and Rehabilitation.  I 
reduce this item from $7,173,074,000 to 
$7,145,074,000 by reducing:

(8)  25-Adult Corrections and Rehabilitation 
	Operations from $4,974,568,000 to
	$4,946,568,000.

I am directing the Secretary of the California 
Department of Corrections and Rehabilitation to 
implement a Parole Decision-Making Instrument 
(PDMI) that provides guidelines on how to respond to 
technical parole violations based on the risk-to-
reoffend level of the offender and the seriousness of 
the violation.  I believe that the use of the PDMI by
parole agents will facilitate the reintegration into 
society of low-risk parolees by providing community-
based sanctions and programs.  By providing 
alternatives to incarceration for parolees who commit 
minor technical parole violations, the Department will 
be able to reduce prison overcrowding.  Consistent 
with this direction, I am reducing $22,000,000 from 
this item to reflect lower adult inmate population 
levels.  

I am also reducing this item by an additional 
$6,000,000 to reflect a delay in the activation of 
Female Rehabilitative Community Correctional Center 
beds that resulted from the state’s late budget. 

Item 6110-001-0001-For support of Department of
Education.  I revise this item by reducing:

(2)  20-Instruction Support from $174,201,000 to
$173,909,000;

(3)  30-Special Programs from $54,659,000 to 
$54,351,000; and

(9)  Amount payable from Federal Trust Fund (Item
6110-001-0890) from -$171,015,000 to 
	-$170,415,000.

I am revising this item to conform to the action I have
taken in Item 6110-001-0890.

Item 6110-001-0890-For support of Department of
Education.  I reduce this item from $171,015,000 to 
$170,415,000.

I am deleting the legislative augmentation of $600,000 
federal Title I funds to enhance an evaluation of the 
Migrant Education program.  The Budget Act of 2007 
provided $800,000 for completing a comprehensive 
needs assessment, developing the state educational 
agencies service delivery plan, and contracting for an 
evaluation to meet federal requirements.  The 
appropriation provided in 2007 should be sufficient for 
producing a useful program evaluation.

I am deleting Provision 30 to conform to this action.

I am deleting provisional language that would 
appropriate $1,200,000 of Title III funds proposed for 
unspecified English learner state level activities (state 
operations) in 2009-10 as it is premature to 
appropriate funds for 2009-10, for projects that have 
not been developed or justified.  

I am deleting provision 34 to conform to this action.

Item 6110-130-0001-For support of the Department 
of Education, Instructional Support.  I reduce this item 
from $9,035,000 to $8,131,000. 

I am reducing this item by $904,000 for the 
Advancement Via Individual Determination program.  
While this budget bill provides for a modest reserve in 
2008-09, it fails to make the necessary statutory 
spending reductions and revenue increases needed 
to eliminate the state's structural budget deficit going 
forward.  At the same time, constitutional 
requirements, federal law, and court required 
payments drive the majority of the spending in any 
budget, and limit my ability to reduce spending.  As a 
result, I have an obligation to reduce spending when 
my veto power is adequate to do so.  Consequently -- 
and in order to further ensure that this budget remains 
in balance -- I am taking the difficult but necessary 
action reflected in this veto to further control state 
spending.

I am revising Provision 1 to conform to this action as
follows:

"1. Of the funds appropriated, $1,300,000 $1,170,000
is available for administration of the Advancement Via 
Individual Determination (AVID) centers."

Item 6110-196-0001-For local assistance, 
Department of Education.  I revise this item by 
deleting Provisions 4(e) and 9(b). 

I am deleting Provision 4(e), which would specify 
principles for the State Department of Education 
(SDE) to follow when developing the 2008-09 
expenditure plan for state and local activities to 
improve child care. The language is unnecessary 
and does not specify any clear priorities for 
development of the expenditure plan.

I am deleting Provision 9(b), which would restrict the 
start point on the family fee schedule to 40 percent of 
the State Median Income as adjusted for family size.  
This Provision is inconsistent with the prior agreement 
reached between the Administration and the 
Legislature that families currently paying fees 
continue to do so as income eligibility is adjusted.  
Additionally, this language would result in lower fee 
revenues, increased costs in child care programs, and 
reduced capacity to serve children.

I am sustaining Provision 2(b), which would provide 
details for the expenditures of the appropriation and 
specify the rate limits for alternative payment and 
other voucher-based programs based on the 85th 
percentile of the 2007 Regional Market Rate Survey 
with an effective date of March 1, 2009.  While I must 
sustain this provision because a statute would 
otherwise control the appropriation and drive the 
rates, I am concerned that this language will drive 
considerably higher costs per case in the future, 
similar to the rate increases experienced in 2007-08. 

I am also sustaining Provision 14, which specifies 
intent to fully fund the third stage (Stage 3) of child 
care for former CalWORKS families.  This intent 
statement duplicates statutory intent language and, 
while it reflects a goal to provide sufficient funds, I 
want to be clear that inclusion of this language in the 
budget bill is not a commitment to fund any deficiency 
that might occur.

Item 6110-202-0001-For local assistance, 
Department of Education.  I reduce this item from 
$11,742,000 to $10,880,000 by reducing:

(1)  30.20.010-Child Nutrition Programs from
$11,742,000 to $10,880,000.

I am reducing this item by $862,000.  While this 
budget bill provides for a modest reserve in 2008-09, 
it fails to make the necessary statutory spending 
reductions and revenue increases needed to 
eliminate the state's structural budget deficit going 
forward.  At the same time, constitutional 
requirements, federal law, and court required 
payments drive the majority of the spending in any 
budget, and limit my ability to reduce spending.  As a 
result, I have an obligation to reduce spending when 
my veto power is adequate to do so.  Consequently -- 
and in order to further ensure that this budget remains 
in balance -- I am taking the difficult but necessary 
action reflected in this veto to further control state 
spending.

Item 6110-488-Reappropriation, Proposition 98,
Department of Education.  I revise this item from 
$163,051,000 to $146,651,000, and by deleting:

I am deleting the $16,400,000 augmentation to Stage 
2 child care to align expenditures with updated 
caseload estimates.  With this reduction, a total of 
$516,611,000 still remains in the budget to support 
the CalWORKs Stage 2 program which should be 
sufficient for the estimated caseload under the 
authorized eligibility, copayment, and subsidy policies.

I am revising Provision 3 to conform to this action.

"3. The sum of $163,051,000 $146,651,000 is hereby 
reappropriated to the State Department of Education 
for transfer by the Controller to Section A of the State 
School Fund for allocation by the Superintendent of 
Public Instruction for the purpose of funding 
CalWORKs Stage 2 child care.  The amount 
reappropriated pursuant to this provision is for use in 
the 2008-09 fiscal year."

I am deleting the one-time legislative augmentation of 
$295,000 for assessments of the Oakland Unified, 
Vallejo City Unified, and West Fresno   Elementary 
School Districts.  Current law specifies that these 
emergency loan districts are responsible for the costs 
of these reports.  Therefore, I am eliminating this 
augmentation.

I am deleting Provision 2 to conform to this action.

Item 6440-001-0001-For support of University of 
California. I reduce this item from $3,000,920,000 to 
$2,995,520,000 by decreasing:

(1) Support from $3,123,516,000 to $3,118,116,000,

and by revising Provisions 14 and 24 and by deleting
Provision 16.
I am reducing this item by $5,400,000 to eliminate 
funding that supports research on labor and 
employment and labor education.  While this budget 
bill provides for a modest reserve in 2008-09, it fails to 
make the necessary statutory spending reductions 
and revenue increases needed to eliminate the state’s 
structural budget deficit going forward.  At the same 
time, constitutional requirements, federal law and 
court required payments drive the majority of the 
spending in any budget, and limit my ability to reduce 
spending.  As a result, I have an obligation to reduce 
spending when my veto power is adequate to do so.  
Consequently -- and in order to further ensure that this 
budget remains in balance -- I am taking the difficult 
but necessary action reflected in this veto to further 
control state spending.

I am also revising Provision 24 of this item to conform 
as follows:

"24. Of the funds appropriated in Schedule (1), 
$5,400,000 $0 is to support research on labor and 
employment and labor education throughout the 
University of California system.  Of these funds, 60 
percent shall be for labor research and 40 percent 
shall be for labor education."

Further, while I am sustaining the Legislature’s action 
to earmark funding for student academic preparation 
and education programs (SAPEP), I am vetoing the 
language requiring the university to report on its use 
of funds for SAPEP activities.  This reporting 
requirement would result in an expenditure increase 
without regard to the availability of revenues.  
Nevertheless, in recognition of the Legislature’s desire 
to obtain this information.  I am instructing the 
President of the University of California to comply with 
this legislative request for this report to the extent 
compliance can be achieved using existing resources 
and without impairing the university’s ability to perform 
its essential functions.

I am revising Provision 14 to conform as follows:

"14.  Of the funds appropriated in Schedule (1), 
$19,300,000 is for student academic preparation and 
education programs (SAPEP) and is to be matched 
with $12,000,000 from existing university resources, 
for a total of $31,300,000 for these programs.  The 
University of California shall provide a plan to the 
Department of Finance and the fiscal committees of 
each house of the Legislature for expenditure of both 
state and university funds for SAPEP by September 1 
of each year.  It is the intent of the Legislature that the 
university report on the use of state and university 
funds provided for these programs, including detailed 
information on the outcomes and effectiveness of 
academic preparation programs consistent with the 
accountability framework developed by the university 
in April 2005. The report shall be submitted to the 
fiscal committees of each house of the Legislature no 
later than April 1, 2009."

Finally, I am deleting the legislative redirection of 
$15,000,000 from funds budgeted for administrator 
compensation to support salary increases and a step 
pay system for low-wage service employees.  Given the 
10 percent reduction to the university’s institutional 
support budget that was adopted by the Legislature, 
the University should be provided the flexibility to 
allocate its resources to preserve core administrative 
functions.  Further, employee salaries should be 
negotiated in collective bargaining agreements 
between the University and its service employees. 

I am deleting Provision 16 to conform to this action.

Item 7980-001-0001-For support of California 
Student Aid Commission.  I reduce this item from 
$14,206,000 to $13,527,000 by decreasing:

(1.5)  50-California Loan Program from $1,000,000 to
$500,000;

(3.5)  97.20.001 Unallocated Reduction from -789,000 
to -1,468,000;

(4.5)  Amount payable from the Student Loan 
	Operating Fund (7980-001-0784) from 
	-$1,000,000 to -$500,000;

and by revising Provision 4.

I am reducing this item by $679,000. However, I am 
sustaining the remaining $111,000 legislative 
augmentation for the purpose of funding additional 
ongoing telephone system and Department of 
Technology Services costs that were identified after 
the January budget proposal. While this budget bill 
provides for a modest reserve in 2008-09, it fails to 
make the necessary statutory spending reductions 
and revenue increases needed to eliminate the 
state'sstructural budget deficit going forward. At the 
same time, constitutional requirements, federal law 
and court required payments drive the majority of the 
spending in any budget, and limit my ability to reduce 
spending.As a result, I have an obligation to reduce 
spending when my veto power is adequate to do 
so. Consequently -- and in order to further ensure that 
this budget remains in balance -- I am taking the 
difficult but necessary action reflected in this veto to 
further control state spending.

I am also revising Provision 4 of this item to conform to
the action I have taken in 
Item 7980-001-0784 as follows:

"4. (a)  This item reflects $1,000,000 $500,000 
payable from the Student Loan Operating Fund for 
the purpose of funding, on a limited-term basis, 6.0 
positions in the Federal Policy and Programs Division. 
Those positions shall be continued until a sale or 
other authorized transaction is completed pursuant to 
Chapter 182 of the Statutes of 2007, which is 
anticipated to occur in the 2009-10 fiscal year.
(b)  Additionally, this item reflects an increase of 
$1,010,000 available on a one-time basis for 
necessary moving costs, furnishings, and equipment 
associated with relocation of the Student Aid 
Commission.  Not later than August 1, 2008, the 
commission shall detail and submit for approval to the 
Department of Finance, and for informational 
purposes to the Chairperson of the Joint Legislative 
Budget Committee, all one-time costs estimated to be 
necessary for relocation of the commission. Any 
funds remaining shall be available for any expenses 
that may be necessary or convenient to further the 
intent of the sale or other authorized transaction of 
EdFund pursuant to Chapter 182 of the Statutes of 
2007 upon the written approval of the Department of 
Finance."

Item 7980-101-0001-For support of California 
Student Aid Commission.  I revise this item by revising 
Provision 1.

I am deleting the legislative augmentation to Provision 
1(d), which increased the number of Assumption 
Program of Loans for Education (APLE) awards by 
800.  The remaining amount of authorized awards in the 
budget is 7,200.  I proposed fewer APLE awards 
to curb the growth in required APLE payments in the 
context of budget balancing reductions and because 
the Student Aid Commission has historically not 
utilized all the awards.  This reduction is necessary to 
limit future ongoing expenditures in line with ongoing 
resources as we work towards resolving the structural 
budget imbalance.

I am revising Provision 1 as follows:

"1.  Funds appropriated in Schedule (1) are for 
purposes of all of the following: 
	(a) Awards in the Cal Grant Program under 
	Chapter 1.7 (commencing with Section 69430) 
	and Article 3 (commencing with Section 69530) 
	of Chapter 2 of Part 42 of Division 5 of Title 3 of 
	the Education Code.
	(b) Grants under the Law Enforcement 
	Personnel Dependents Scholarship Program 
	pursuant to Section 4709 of the Labor Code.
	(c) California Student Opportunity and Access 
	Program contract agreements under Article 4 
	(commencing with Section 69560) of Chapter 2 
	of Part 42 of Division 5 of Title 3 of the 
	Education Code. 
	(d) The purchase of loan assumptions under 
	Article 5 (commencing with Section 69612) of 
	Chapter 2 of Part 42 of Division 5 of Title 3 of 
	the Education Code. The Student Aid 
	Commission shall issue 8,000 7,200 new 
	warrants.
	(e) The purchase of loan assumptions under the 
	Graduate Assumption Program of Loans for 
	Education pursuant to Article 5.5 (commencing 
	with Section 69618) of Chapter 2 of Part 42 of 
	Division 5 of Title 3 of the Education Code.
	(f) The purchase of loan assumptions under the 
	State Nursing Assumption Program of Loans for 
	Education (SNAPLE) Employees of State 
	Facilities Program pursuant to Article 2 
	(commencing with Section 70120) of Chapter 3 
	of Part 42 of Division 5 of Title 3 of the 
	Education Code.
	(g) The purchase of loan assumptions under the 
	State Nursing Assumption Program of Loans for 
	Education (SNAPLE) pursuant to Article 1 
	(commencing with Section 70100) of Chapter 3 of 
	Part 42 of Division 5 of Title 3 of the 
	Education Code.
	(h) The Student Aid Commission shall report by 
	April 1, 2009, on the State Nursing Assumption 
	Program of Loans for Education, pursuant to the 
	reporting requirements of Section 70108 of the 
	Education Code.
	(i) Of the amount appropriated in Schedule (1), 
	$297,000 is provided for loan assumption 
	payments to participants in the National Guard 
	Assumption Program of Loans for Education 
	pursuant to Article 12.5 (commencing with 
	Section 69750) of Chapter 2 of Part 42 of the 
	Education Code.
	(j) Notwithstanding subdivision (c) of Section 
	69613.8 of the Education Code, any 
	Assumption Program of Loans for Education 
	participant who meets the requirements of 
	subdivision (a) or (b) of Section 69613.8 of the 
	Education Code may receive the additional loan 
	assumption benefits authorized by those 
	subdivisions."

Item 8380-001-0001-For support of Department of
Personnel Administration.

I am revising this item in order to correct a technical
error in the Budget Bill:

(1)  10-Classification and Compensation from
$6,442,000 to $6,414,000;

(2)  20-Labor Relations from $3,480,000 to 
$3,464,000;

(3)  25-Legal from $7,947,000 to $7,919,000;

(5)  40.02-Distributed Administration from -
$4,457,000 to -$4,370,000; and

(6)  54-Benefits Administration from $32,972,000 to
$32,957,000.

With the above deletions, revisions, and reductions, I 
hereby approve Assembly Bill 88.


                                  ARNOLD SCHWARZENEGGER