BILL ANALYSIS
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THIRD READING
Bill No: SB 849
Author: Ducheny (D)
Amended: 8/9/10
Vote: 27 - Urgency
PRIOR VOTES NOT RELEVANT
ASSEMBLY FLOOR : 71-0, 8/16/10 - See last page for vote
SUBJECT : Budget Act of 2009: augmentation
SOURCE : Department of Finance
DIGEST : Assembly Amendments delete the Senate version of
the bill which was a 2010 Budget trailer spot bill.
This bill now is a supplemental appropriations bill which
appropriates $654 million (General Fund) to augment the
Budget Act of 2009 to cover deficiencies for the 2009-10
fiscal year. This appropriation is factored into current
budget figures and does not add to the current budget
deficit. Any unencumbered funds would revert to the
General Fund.
ANALYSIS : This bill requires the State Controller to
allocate these funds as follows:
1.$406,184,000 to the Department of Corrections and
Rehabilitation (CDCR) for contract medical services.
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This deficiency funding request is from federal health
care receiver Clark Kelso for contract medical
expenditures. The medical contract funding request also
includes $2.6 million for emergency medical contract
costs related to the August 2008 riot at the California
Institution for Men, Chino.
2.$111,264,000 to CDCR for the federal medical receiver's
turnaround plan.
The turnaround plan includes what the receiver terms
special projects designed to improve health care delivery
by upgrading information technology (IT) and creating an
electronic health records system.
3.$131,137,000 to the Department of Developmental Services
as a result of Shaw v. Chiang , a fund shift for the cost
of transportation services for regional center clients
from the Public Transportation Account (PTA) to the GF.
The 2009 Budget included $138.3 million in PTA funding
for regional center (RC) transportation, which is an
entitlement under the Lanterman Act. The Shaw v. Chiang
suit disallowed the use of PTA funds for RC
transportation, resulting in a GF deficiency of $138.3
million, offset by a $7.1 million decrease in RC costs.
4.$5,399,000 to the Department of Forestry and Fire
Protection (CAL FIRE) for unemployment insurance cost
increases.
State departments are responsible for payment of both the
standard Unemployment Insurance (UI) claims and a portion
of the recent UI extension. CAL FIRE hires about 2,600
seasonal firefighters during the high risk months. The
recent UI extensions, the economic downturn, and the
inability of seasonal firefighters to find full-time work
have resulted in increased UI payments.
5.$5,860 for Payment to Counties for Costs of Homicide
Trials to reimburse Mariposa County for qualified costs.
Counties may apply to the state controller for
reimbursement of homicide trial costs that exceed a
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specified percentage of assessed property value in the
county. Mariposa's request is for trial-related costs -
mainly ongoing vehicle storage - in the case of People v.
Cary Stayner in 2008-09 and 2009-10.
Comments
1. Rationale . This bill contains funding necessary to
address deficiencies in the 2009 Budget Act. These funds
have already been spent. The appropriations in this bill
will not impact current budget difficulties. The
proposed funding in this measure has been approved by the
Department of Finance (DOF) and the Joint Legislative
Budget Committee.
2.The CAL FIRE deficiency is actually $14.4 million, but $9
million of that cost will be paid out of the $9 million
remaining in the 2009-10 budget item for deficiencies.
3.CDCR medical contract expenditures grew from $252 million
to $845 million from 2003-04 to 2008-09. (The
receivership was appointed in February 2006.) Despite
this significant - and anticipated - growth, the amount
budgeted for medical contracts has remained relatively
static: from $204 million in 2002-04 to $308 million in
2009-10 and 2010-11.
The receiver cites a number of factors leading to
increased medical expenditures, including longer terms
and an increased inmate population, resulting in more
overcrowding and aging inmates who require more health
care. For example, some of the most specialized and
costly medical needs - respiratory disease, heart
disease, kidney disease, Alzheimer's disease - are
generally referred to community hospitals and clinics.
Also, as the level of health care has increased within
the institutions as a result of the receivership, more
health issues are identified. To address these issues,
the receivership has increasingly relied on outside
contractors, such as hospitals for inpatient and
outpatient care, specialty care physicians and
laboratories.
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FISCAL EFFECT : Appropriation: No Fiscal Com.: yes
Local: No
Appropriates $654 million (GF) to augment the 2009 Budget
Act for unanticipated expenditures.
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Beall, Tom
Berryhill, Block, Blumenfield, Bradford, Brownley,
Buchanan, Caballero, Carter, Chesbro, Conway, Cook, Coto,
De La Torre, De Leon, DeVore, Eng, Evans, Feuer,
Fletcher, Fong, Fuentes, Fuller, Furutani, Gaines,
Galgiani, Garrick, Gatto, Gilmore, Hagman, Hall, Hayashi,
Hernandez, Hill, Huber, Huffman, Jones, Knight, Lieu,
Logue, Bonnie Lowenthal, Ma, Mendoza, Miller, Monning,
Nava, Nestande, Niello, Nielsen, V. Manuel Perez,
Portantino, Ruskin, Salas, Saldana, Silva, Skinner,
Smyth, Solorio, Audra Strickland, Swanson, Torlakson,
Torres, Torrico, Tran, Villines, Yamada, John A. Perez
NO VOTE RECORDED: Bass, Bill Berryhill, Blakeslee, Charles
Calderon, Davis, Harkey, Jeffries, Norby, Vacancy
DLW:cm 8/17/10 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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