BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                                 THIRD READING


          Bill No:  AB 185
          Author:   Assembly Budget Committee 
          Amended:  3/18/10 in Senate
          Vote:     27 - Urgency

           
           ASSEMBLY FLOOR :  Not relevant 


           SUBJECT  :    Budget Act of 2010

           SOURCE  :     Author


           DIGEST  :     Senate Floor Amendments  of 3/18/10 delete the  
          prior version of the bill which would have provided the  
          necessary statutory changes in the area of emergency  
          response in order to enact modification s to the 2009  
          Budget Act.

          This bill now recognizes a number of savings in the 2010  
          Budget Act to address the emergency declared by the  
          Governor pursuant to the California Constitution.  The  
          bill's provisions concern the following:  (1) the Omnibus  
          Conservatorship and Guardianship Act of 2006, (2) DNA  
          Penalty Fee, (3) Department of Fish and Game, (4) Inmate  
          Health Care, (5) Division of Juvenile Justice Population,  
          (6) Suspension and Deferral of non-Education Mandates, (7)  
          Information Technology, (8) State personnel savings, (9)  
          operating expenses and equipment, (10) Post Employment  
          Benefits, and (11) Anti-Fraud Activities for the Medi-Cal  
          Program.

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           ANALYSIS  :    This is a Budget Trailer Bill which recognizes  
          a number of General Fund savings in the 2010 Budget Act for  
          purposes of the fiscal emergency special session declared  
          by the governor, including provisions to address the  
          following items:

           1.  Conservatorship and Guardianship Program Delay  .  This  
             bill recognizes $17 million in savings from continued  
             delay in the implementation of the Omnibus  
             Conservatorship Guardianship Act of 2006.

           2.  DNA Penalty Fee Increase  .  This bill recognizes $45  
             million in reduced spending in 2010-11 due to the  
             increase in additional DNA penalty fees allowed under AB  
             3.  The revenues generated by the increase in fees  
             assessed on convicted offenders will be deposited into  
             the state's DNA Identification Fund.  The bill also  
             authorizes revenues deposited into this account to be  
             used for the operation of state forensic laboratories  
             and lease-revenue payments.

           3.  Department of Fish and Game Reduction  .  This bill  
             recognizes savings of $5 million in the 2010-11 fiscal  
             year as a result of an unallocated reduction to the  
             Department of Fish and Game.  The reduction will be  
             allocated during the 2010 spring budget process based on  
             priorities identified in budget subcommittee.

           4.  Inmate Health Care Cost Reductions  .  This bill  
             recognizes $811 million in cost reductions for inmate  
             health care costs in the 2010-11 fiscal year.  This  
             level of reduction will bring average costs for inmate  
             health care services roughly equivalent to that of other  
             states such as New York.

           5.  Division of Juvenile Justice Population Reduction  .  This  
             bill recognizes savings of $48 million from policies  
             designed to reduce the population of wards housed in  
             state facilities.

           6.  Suspension and Deferral of non-Education Mandates  .  This  
             bill recognizes savings of $228 million to reflect the  
             suspension of certain mandates and payment deferrals for  
             other mandates.  Generally, these savings will accrue by  







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             mirroring the 2009 Budget Act treatment of mandates.   
             Most mandates are suspended, with the exception of  
             mandates relating to law enforcement, election  
             procedures, open meeting requirements, and tax  
             collection.  Payment of pre-Proposition 1A mandate  
             claims is deferred.  The Local Recreational Background  
             Checks mandate and the Crime Victims' Rights mandate  
             were excluded from this savings for further analysis in  
             budget subcommittees.

           7.  Information Technology Savings  .  This bill recognizes  
             savings of at least $140 million to reflect information  
             technology and related savings achieved by state  
             agencies pursuant to the Governor's Reorganization Plan  
             No. 1 of 2009 (GRP No. 1).  These savings build upon the  
             $100 million in ongoing General Fund savings in the  
             2009-10 Budget Act which are also reflective e of the  
             implementation of GRP No. 1.

           8.  Governor's Executive Order S-01-10:  Five Percent  
             Personnel Savings  .  This bill recognizes savings of $449  
             million to reflect savings from implementing the five  
             percent reduction to departmental personnel costs  
             resulting from Governor Schwarzenegger's Executive Order  
             S-01-10.  The Executive Order requires agencies and  
             departments to cap the size and cost of the workforce by  
             July 1, 2010, effectively reducing the size of the  
             state's workforce by 8,915.7 personnel years.  This bill  
             also states legislative intent that first priority for  
             achieving these personnel savings from administration to  
             avoid negative impacts on the delivery of direct  
             services.

           9.  Governor's Executive Order S-01-10:  Operating Expenses  
             and Equipment Savings  .  This bill recognizes savings of  
             $130 million to reflect the Operating Expenses and  
             Equipment savings resulting from Governor  
             Schwarzenegger's Executive Order S-01-10 (detailed in  
             comment 9).

          10.  Delaying Pre-Payment of Other Post Employment Benefits  .   
             This bill recognizes savings of $98.1 million to reflect  
             budgetary workload savings from delaying prepayment of  
             other post-employment benefits.







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          11.  Additional Anti-Fraud Activities for Medi-Cal Program  .   
             This bill recognizes savings of $28.2 million from  
             additional anti-fraud activities to be conducted by the  
             Department of Health Care Services.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          DLW:cm  3/22/10   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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