BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                              CONFERENCE COMPLETE


          Bill No:  SB 77
          Author:   Senate Budget and Fiscal Review Committee
          Amended:  7/9/07 
          Vote:     27 - Urgency

           
           SENATE FLOOR  :  26-14, 8/1/07 (FAIL)
          AYES:  Alquist, Calderon, Cedillo, Corbett, Correa,  
            Ducheny, Florez, Kehoe, Kuehl, Lowenthal, Machado,  
            Maldonado, Migden, Negrete McLeod, Oropeza, Padilla,  
            Perata, Ridley-Thomas, Romero, Scott, Simitian,  
            Steinberg, Torlakson, Vincent, Wiggins, Yee
          NOES:  Aanestad, Ackerman, Ashburn, Battin, Cogdill, Cox,  
            Denham, Dutton, Harman, Hollingsworth, Margett,  
            McClintock, Runner, Wyland
           
          CONFERENCE COMMITTEE  :  4-2, 7/9/07
          AYES:  Senators Ducheny and Machado, Assembly Members Laird  
            and Leno
          NOES:  Senator Hollingsworth and Assembly Member Niello
           
           PRIOR VOTES NOT RELEVANT


           SUBJECT :    Budget Act of 2007

           SOURCE  :     Author


           DIGEST :    This bill enacts the Budget Act of 2007.

           Conference Amendments  delete the prior version of the bill  
          relating to intent and, instead, provide for the specifics  
                                                           CONTINUED





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          of the Budget for 2007-08.

          NOTE:  Refer to the Senate Budget and Fiscal Review  
          Committee analysis for details of the budget.

           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 Department of Finance (DOF), 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 are submitted and  
          included in "Finance Letters" addressed to and considered  
          by the Senate Budget and Fiscal Review Committee and the  
          Assembly Budget Committee.

          In mid-May, the DOF 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 the hearings, the Senate and the  
          Assembly 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 both the Senate and the Assembly and, if passed by  
          two-thirds, is enrolled and sent to the Governor.  If it is  







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          not passed, a new Conference Committee is formed and the  
          conference process is repeated.  Sometimes 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

          This bill and SB 78 amount to $103 billion in General Fund  
          expenditures, another $40 billion in Special Funds and a  
          total available reserve of $3.4 billion.





          DLW:cm  8/16/07   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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