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


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