BILL ANALYSIS AB 2 X8 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 2 X8 (Budget Committee) As Amended February 17, 2010 Majority vote ----------------------------------------------------------------- |ASSEMBLY: | |(February 4, |SENATE: |23-15|(February 18, | | | |2010) | | |2010) | ----------------------------------------------------------------- (vote not relevant) Original Committee Reference: RLS. SUMMARY: Stipulates to reduce expenditures by $2.2 billion in the 2010-11 fiscal year, by making the following changes to the proposed 2010 Budget. The Senate amendments delete the Assembly version of this bill, and instead: 1)Omnibus Conservatorship and Guardianship Reform Act Delay: Delay the implementation of the Conservatorship and Guardianship Reform Act of 2006 through a reduction of $17.4 million General Fund (GF). 2)Department of Justice DNA Penalty Fee: Reduce $45.1 million GF in 2010-11 due to the increase in additional DNA penalty fees. DNA penalty fees allowed under AB 3 X8 will generate revenue that will be deposited into the state's DNA Identification Fund and can be used for regional forensic labs, penalty assessment, including lease revenue debt service costs. 3)Department of Fish and Game: Include an unallocated reduction of $5 million GF. 4)Department of Corrections and Rehabilitation: Savings of $182 million GF to reflect the commutation of inmate sentences by the Governor and the deportation of inmates to their countries of origin. AB 2 X8 Page 2 5)Funding for Inmate Medical Services Program: Reduce $811 million GF to the Receiver's Medical Services Program, to reflect expenditure reductions per-inmate, to a level that is comparable to other correctional health care programs, such as New York. 6)Juvenile Offender Population Reform: Reduce $41.3 million GF and $6.7 million Proposition 98 GF for funding of the Division of Juvenile Justice Facilities. 7)Suspension and Deferral of Non-Education Local Mandates: Recognize a savings of $228 million to reflect the suspension and payment deferrals for certain mandates, including the payment of pre-Proposition 1A mandate claims. Exclude or defer mandates relating to: law enforcement, election procedures, open meeting requirements, and tax collection. Exclude the Local Recreational Background Checks mandate and the Crime Victims' Rights mandate from this savings for further analysis in Budget subcommittees. 8)Information Technology and Related Savings: At least $140 million GF will not be appropriated to reflect information technology and related savings achieved by state agencies and the State Chief Information Officer, as pursuant to the Governor's Reorganization Plan No.1 of 2009. 9)Governor's Executive Order S-01-10: A net total savings of $580 million GF will be achieved through this Executive Order, which ordered a 5% salary savings through a workforce cap and attrition by July 1, 2010. The savings are scored as $450 million GF from the implementation of the 5% reduction to departmental personnel costs and $130 million GF savings in operating expenses and equipment. AB 2 X8 Page 3 10)Delay in Prepayment of Postemployment Benefits: Reflect a $98.1 million GF savings from reducing funding for Health and Dental Benefits pre-funding and post-employment benefits for annuitants. 11)Department of Health Care Services Anti-Fraud Initiative: Anticipate a $28.3 million savings by implementing an anti-fraud initiative focused on areas of concern such as pharmacy, transportation, medical equipment and physician services in the Department of Health Care Services. AS PASSED BY THE ASSEMBLY , this bill was a vehicle for 2009 Budget legislation. Analysis Prepared by : Daisy Gonzales / BUDGET / (916) 319-2099 FN: 0003684