BILL ANALYSIS
AB 2 X8
Page 1
GOVERNOR'S VETO
AB 2 X8 (Budget Committee)
As Amended February 17, 2010
2/3 vote
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|ASSEMBLY: | |(February 4, |SENATE: |23-15|(February 18, |
| | |2010) | | |2010) |
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(vote not relevant)
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|ASSEMBLY: |44-20|(February 22, | | | |
| | |2010) | | | |
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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:
AB 2 X8
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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.
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.
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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.
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.
GOVERNOR'S VETO MESSAGE :
Delaying implementation of the spending reductions I
proposed in January will require the Legislature to
make even more difficult choices later this year. As
the Legislative Analyst has said, 'Many of the major
expenditure reductions in this budget will require
significant lead time for departments to implement.
Accordingly, the Legislature and the Governor will
need to agree to a framework to solve much of the
budget problem by the end of March.' The Legislative
Analyst goes on to say that 'The Governor's trigger
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cuts? are painful and in some cases draconian.
Nevertheless, there is no way the Legislature can
avoid making some similarly difficult decisions this
year.'
In addition, this bill contains certain savings
assumptions that are unrealistic. When I proposed the
deportation of undocumented felons last year, I said I
would review each case individually and would not
commute the sentence of any undocumented felon that
had committed serious or violent crime. Based on this
review, my January budget includes only $19 million in
estimated savings from the commutation and deportation
of a select number of undocumented felons, not the
$182 million assumed in this legislation. As such,
the savings level assumed by this bill will not be
achieved.
The longer the Legislature delays action on real
reductions, the more difficult the choices become. I
encourage the Legislature to return to work in the
Extraordinary Session and act on actual spending
reductions that will address California's fiscal
emergency.
Analysis Prepared by : Daisy Gonzales / BUDGET / (916)
319-2099
FN: 0003745