BILL NUMBER: ABX3 3 CHAPTERED 02/16/08 CHAPTER 1 FILED WITH SECRETARY OF STATE FEBRUARY 16, 2008 APPROVED BY GOVERNOR FEBRUARY 16, 2008 PASSED THE SENATE FEBRUARY 15, 2008 PASSED THE ASSEMBLY FEBRUARY 15, 2008 AMENDED IN ASSEMBLY FEBRUARY 15, 2008 AMENDED IN ASSEMBLY FEBRUARY 7, 2008 INTRODUCED BY Committee on Budget (Laird (Chair), Arambula, Beall, Berg, Brownley, De La Torre, Evans, Feuer, Hayashi, Hernandez, Jones, Krekorian, Mullin, Ruskin, Swanson, and Wolk) FEBRUARY 4, 2008 An act to amend Item 3790-497 of, and to add Items 3790-002-6051 and 4260-497 to, Section 2.00 of the Budget Act of 2007 (Chapters 171 and 172 of the Statutes of 2007), and to add Sections 4.44 and 24.85 to, and to repeal Section 24.80 of, that act, relating to the support of state government, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST AB 3, Committee on Budget. Reductions in the Budget Act of 2007 relating to state government: fiscal emergency. The Budget Act of 2007 (Chapters 171 and 172 of the Statutes of 2007) makes appropriations for the support of state government during the 2007-08 fiscal year. The California Constitution provides that if, following the enactment of the annual Budget Bill, the Governor determines that General Fund revenues will decline substantially below the estimate of General Fund revenues upon which the Budget Bill was based, or that General Fund expenditures will increase substantially above that estimate of General Fund revenues, or both, the Governor may issue a proclamation declaring a fiscal emergency and thereupon cause the Legislature to assemble in special session for that purpose. This bill would amend the Budget Act of 2007 by revising certain items of appropriation, through reversions and transfers, and by reductions of appropriations to various state agencies. The bill would state that it addresses a fiscal emergency declared by the Governor by proclamation on January 10, 2008, by which the Legislature was called in special session pursuant to the California Constitution. This bill would declare that it is to take effect immediately as an urgency statute. Appropriation: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The reversions and transfers added by this act are in addition to the appropriations made in Section 2.00 of the Budget Act of 2007 (Ch. 171, Stats. 2007 and Ch. 172, Stats. 2007) and are subject to the provisions of that act, as appropriate, including, as applicable, the provisions of that act that apply to the items of appropriation that are amended by this act. Unless otherwise specified, the references in this act to item numbers refer to items of appropriation in Section 2.00 of the Budget Act of 2007 (Ch. 171, Stats. 2007 and Ch. 172, Stats. 2007). SEC. 2. Item 3790-002-6051 is added to Section 2.00 of the Budget Act of 2007 to read: 3790-002-6051--For support of Department of Parks and Recreation, payable from the Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection 30,000,0 Fund of 2006.................................. 00 Provisions: 1. $30,000,000 of the funds appropriated in this item shall be for the planning, design, and construction of deferred maintenance projects within the state park system and shall be available for encumbrance until June 30, 2012. (a) Notwithstanding any other provision of law, the Director of Finance may authorize expenditures in this item for capital outlay projects not sooner than 30 days after written notification is provided to the chairpersons of the fiscal committees in each house of the Legislature and the Chairperson of the Joint Legislative Budget Committee. The written notification shall provide a description of each capital outlay project, the need for the project, and the cost and phase for which approval is requested. The total of these expenditures may not exceed $30,000,000. SEC. 3. Item 3790-497 of Section 2.00 of the Budget Act of 2007, as amended by Chapter 489, Statutes of 2007, is amended to read: 3790-497--Reversion, Department of Parks and Recreation. As of June 30, 2007, the balances provided in the following citations shall revert to the fund from which the appropriations were made: 0001--General Fund (1) Item 3790-001-0001, Budget Act of 2006 (Chs. 47 and 48, Stats. 2006) (1) For support of the Department of Parks and Recreation................ 205,000,000 0005--Safe Neighborhood Parks, Clean Water, Clean Air, and Coastal Protection Bond Fund (1) Item 3790-101-0005, Budget Act of 2001 (Ch.106, Stats. 2001) (1) 80.25-Recreational Grants (a) Local agencies operating park...................... 835,000 (2) Item 3790-001-0005, Budget Act of 2005 (Chs. 38 and 39, Stats. 2005)... 107,000 6029--California Clean Water, Clean Air, Safe Neighborhood Parks, and Coastal Protection Fund (1) Item 3790-001-6029, Budget Act of 2005 (Chs. 38 and 39, Stats. 2005), as reappropriated by Item 3790-490, Budget Act of 2006 (Chs. 47 and 48, Stats. 2006).............. 3,000,000 SEC. 4. Item 4260-497 is added to Section 2.00 of the Budget Act of 2007, to read: 4260-497--Reversion, Department of Health Care Services. The sum of $165,000,000 of the appropriation provided in Schedule (3) 20.10.030 Benefits (Medical Care and Services) of Item 4260-101-0001, Budget Act of 2007 (Chs. 171 and 172, Stats. 2007) shall revert to the General Fund. SEC. 5. Section 4.44 is added to the Budget Act, to read: SEC. 4.44. (a) Notwithstanding any other provision of law, appropriations from the General Fund to the state entity as scheduled in subdivision (d), whether made in the Budget Act of 2007 or in other statutes, shall be reduced by the amounts as scheduled in subdivision (d). Any item of appropriation, and each schedule and provision within any item of appropriation, in the Budget Act of 2007 shall be adjusted to achieve the reduction to the aggregate General Fund appropriations made to each entity as ordered by the Director of Finance. Reductions to appropriations made in statutes other than the Budget Act of 2007 shall be allocated to achieve the reduction as scheduled in subdivision (d) as directed by the Director of Finance. (b) To the extent made necessary by these reductions, appropriations from funds other than the General Fund to a state entity as scheduled in subdivision (d) may be adjusted to effectuate the provisions of this section. (c) Nothing within this section shall be construed to confer any authority upon the Director of Finance to modify or eliminate any other provision of existing law. (d) Appropriations from the General Fund for the state entities specified below shall be reduced by the amount specified. To the extent statutory changes are necessary to achieve these reductions, the reductions shall be effective only if necessary statutory changes are enacted. LEGISLATIVE, JUDICIAL, AND EXECUTIVE 0250 Judicial Branch Delay of new Judgeships.......... 21,96 0,000 0650 Office of Planning and Research State Planning & Policy 44,00 Development...................... 0 California Volunteers............ 375,0 00 0690 Office of Emergency Services Mutual Aid Response Fire and Rescue.......... 100,0 00 Law Enforcement.......... 100,0 00 Warning Center/Information Tech/ 100,0 Telecommunications....... 00 Administration and 26,00 Program Support.......... 0 Plans and Preparedness Plans and Preparedness... 300,0 00 Training and Administration and 130,0 Program Support.......... 00 Disaster Assistance and Administration and 2,447 Program Support.......... ,000 State Terrorism Threat 1,000 Assessment Center ............... ,000 STATE AND CONSUMER SERVICES 1760 Department of General Services Emergency Repair Program and 1,179 Capitol Maintenance & Repairs ... ,000 BUSINESS, TRANSPORTATION, AND HOUSING 2240 Department of Housing and Community Development Codes and Standards Program State Housing Law ....... 50,00 0 Financial Assistance Program Enterprise Zone Program . 50,00 0 Housing Policy Development Program Housing Element, Issues 100,0 & Reporting ............. 00 RESOURCES 0540 Secretary for Resources CALFED Bay Delta Program ........ 87,00 0 3600 Department of Fish and Game Biodiversity program ............ 1,400 ,000 Hunting Fishing and Public Use .. 165,0 00 Administration and Program 152,0 Support ......................... 00 3790 Department of Parks and Recreation State Park System ............... 1,000 ,000 3860 Department of Water Resources Flood Management................. 200,0 00 ENVIRONMENTAL PROTECTION 0555 Secretary for Environmental Protection Administrative Support Children's Health Center 100,0 ......................... 00 3900 Air Resources Board Stationary Source Program: 100,0 Research ........................ 00 3960 Department of Toxic Substance Control Site Mitigation and Brownfields: Illegal Drug Lab Removal 1,170 ......................... ,000 Emergency Response ...... 80,00 0 Distributed Administration ...... 50,00 0 3980 Office of Environmental Health Hazard Assessment Health Risk Assessment........... 100,0 00 HEALTH AND HUMAN SERVICES 4200 Department of Alcohol and Drug Programs Alcohol and Other Drug Services Program Drug Medi-Cal ........... 100,0 00 California Methamphetamine 360,0 Initiative .............. 00 4300 Department of Developmental Services Community Services Reduce Community Placement Plan 660,0 Operations by 10% ....... 00 Reduce Regional Center Operations for HIPAA 23,00 Implementation by 10% ... 0 Developmental Centers Reduce Clients' Rights Advocacy and Volunteer Advocacy Services 39,00 Agreements by 10% ....... 0 Reduce ICF-DD Quality 755,0 Assurance Fees by 10% ... 00 Reduce the Porterville DC Office of Protective Services Peace Officer 181,0 I's by 10%............... 00 State Operations Reduce Regional Center Fiscal Audits Program by 23,00 11.8% ................... 0 Reduce Vendor Fiscal 96,00 Audits Program .......... 0 4440 Department of Mental Health Community Services EPSDT - Eliminate Home Health Market Basket 1,878 COLA .................... ,000 EPSDT - Reduce cost per 1,768 client .................. ,000 Reduce the contract for the Cathie Wright Technical Assistance 10,00 Center .................. 0 Caregiver Resource Ctr. . 400,0 00 State Hospitals SVP caseload savings .... 12,60 0,000 Administration Administrative Services . 422,0 00 Information Technology .. 300,0 00 5175 Department of Child Support Services State Operations Operational Expenses and 200,0 Equipment................ 00 5180 Department of Social Services Stop the Pay for Performance Incentive 40,00 funding.................. 0,000 SSI/SSP Total Delay of the June 2008 23,25 COLA .................... 3,000 Child Welfare Services/Case Management 3,000 System Savings .......... ,000 Automation Projects Total Delay ISAWS Migration 3,500 Project ................. ,000 Reduce Departmental Operational Expenses and 70,00 Equipment ............... 0 CORRECTIONS AND REHABILITATION 5225 Department of Corrections and Rehabilitation One-time savings due to program 40,00 delay ........................... 0,000 EDUCATION 6440 University of California Institutional Support - UC Berkeley Welfare Policy Research 1,450 Project ......................... ,000 LABOR AND WORKFORCE DEVELOPMENT 7300 Agricultural Labor Relations Board Board/General Counsel Office of the Board ..... 101,0 00 General Counsel ......... 49,00 0 GENERAL GOVERNMENT 8140 State Public Defender Capital Appeal Legal 405,0 Representation .................. 00 8260 California Arts Council Administrative Support .......... 24,00 0 8570 Department of Food and Agriculture Market Commodities, Agriculture 237,0 Services ........................ 00 General Agriculture Activities .. 263,0 00 8940 Military Department Air National Guard ........ 100,0 00 Office of the Adjutant General .. 700,0 00 Military Support to Civil 100,0 Authority ....................... 00 Military Retirement ............. 100,0 00 Youth Programs Headquarters ............ 100,0 00 8950 California Department of Veterans Affairs Veteran Homes ................... 1,729 ,000 Administrative Support .......... 30,00 0 Total General Fund Reductions................... 167,5 91,00 0 SEC. 6. Section 24.80 of the Budget Act 2007 is repealed. SEC. 7. Section 24.85 is added to the Budget Act, to read: SEC. 24.85. (a) Notwithstanding any other provision of law, the Director of Finance is authorized to reimburse General Fund expenditures for the purpose of offsetting the costs of the Home-to-School Transportation program for the 2007-08 fiscal year from the Public Transportation Account. A sum not to exceed $409,000,000 from the Public Transportation Account may be used to reimburse General Fund expenditures for the Home-to-School Transportation program. The total reimbursement shall not reduce the balance in the Public Transportation Account below a prudent reserve as determined by the Director of Finance. (b) It is not the intent of the Legislature in enacting this section to provide additional expenditure authority to state programs. (c) Funds provided from the Public Transportation Account for this purpose are derived from the sales tax on fuels and are dedicated to mass transportation purposes pursuant to Section 99310.5 of the Public Utilities Code. The Legislature hereby finds that transporting students to schools is a component of the state's mass transportation program. SEC. 8. This act addresses a fiscal emergency declared by the Governor by proclamation on January 10, 2008, by which the Legislature was called in special session pursuant to subdivision (f) of Section 10 of Article IV of the California Constitution. SEC. 9. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: In order that necessary reversions, transfers, and adjustments by this act to the appropriations in the Budget Act of 2007 for support of state government for the 2007-08 fiscal year be made as soon as possible to address the fiscal emergency declared by the Governor, it is necessary that this act take effect immediately.