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 modifications 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.
CONTINUED
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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 4/8/10 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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