BILL NUMBER:  SB 870
VETOED	DATE: 10/08/2010




Arnold Schwarzenegger                                   		October 8, 2010
Governor



                          State of California
                           Governor’s Office

I object to the following appropriations contained in Senate Bill 870.

Item 0690-102-0890-For local assistance, California Emergency Management Agency.
I revise this item by deleting Provision 2. 

I am deleting Provision 2, which requires the California Emergency Management Agency to 
distribute federal Edward Byrne Memorial Justice Assistance Grant funding according to a 
specific methodology.  These grant awards have already been allocated for fiscal year 
2010-11, the grantees have incorporated these allocations into their respective expenditure 
plans, and any changes would create additional state costs.

Item 1100-001-0001-For support of California Science Center.  I revise this item
by deleting Provision 1.

I am deleting Provision 1, which would require the California Science Center to report to the
Legislature on short- and long-term alternatives for restructuring the California Science 
Center's financing and governance.  

This reporting requirement would result in an expenditure increase without regard to the 
availability of revenues. Consequently, I am vetoing this language. Nevertheless, in 
recognition of the Legislature’s desire to obtain this information, it will be addressed as 
though the request had been included in Supplemental Report language. Therefore, I am 
instructing the Chief Executive Officer of the California Science Center to comply with this
legislative request for this report to the extent compliance can be achieved using existing 
resources and without impairing the California Science Center’s ability to perform its 
essential functions.

Item 2660-001-0042-For support of Department of Transportation, payable from the State 
Highway Account, State Transportation Fund.  I reduce this item from $2,622,616,000 to 
$2,599,061,000 by reducing:

 (2) 20.10-Highway Transportation-Capital Outlay Support from $1,753,604,000 to 
     $1,733,297,000,

 (9) 40-Transportation Planning from $105,684,000 to $98,246,000, and

 (17) Amount payable from the Federal Trust Fund (Item 2660-001-0890) from 
      -$596,673,000 to -$592,483,000.

Consistent with my May Revision proposal, I am eliminating the legislative augmentation of 
$20,307,000 ($16,117,000 State Highway Account, and $4,190,000 Federal Trust Fund) 
and 296.0 personnel years for engineering, design, environmental studies, and other work 
done by the capital outlay support program.  In view of diminishing long-term workload it is 
prudent to limit program expansion to a level that is consistent with anticipated project 
funding levels in order to help bring ongoing expenditures in line with resources.  While the 
Department continues to work on better techniques for estimating workload, and accurately 
assessing its staffing needs, I am concerned that estimated staffing needs have been 
higher historically than the actual workload that materialized.  I am also concerned that 
increased productivity of state staff has not been adequately taken into account.  In the 
May Revision I also proposed to use an increased share of contractual services, consistent 
with the provisions of Proposition 35 approved by the voters in 2000, but the Legislature 
instead funded 90 percent state staff and 10 percent contract staff.  Because it will take a 
year or more to hire and train state staff as existing staff leave, I am very concerned that 
this action will delay projects and cost more than using contractual services.  Moreover, 
because the funding from Proposition 1B is one-time and will be exhausted over the next 
three years, the hiring of new permanent state staff could result in the need for future 
layoffs.  An appropriate balance between state staff and contract staff will enable the state 
to improve its highways, roads, bridges, and railroad crossings immediately.  Therefore, I
am instructing the Director of the Department of Transportation to take all steps necessary 
to deliver projects as quickly as possible, including an increased use of contractual services 
within the funding level the Legislature has provided.  With these reductions, 
$1,733,297,000 still remains to support the Capital Outlay Support Program.  

I am reducing this item by $7,438,000 and 63.7 personnel years because state funds
should not be committed to the development of project initiation documents for locally-
funded projects that are not on a state highway corridor or do not have funding identified to 
fund the project.  I propose instead that local agencies fund these costs for their projects.

Item 2660-001-0890-For support of Department of Transportation.  I reduce this item from
$596,673,000 to $592,483,000. 

I am reducing this item by $4,190,000 to conform to the action I have taken in 
Item 2660-001-0042.

Item 2660-011-0062-For transfer by the Controller, upon order of the Director of Finance, 
from the Highway Users Tax Account, Transportation Tax Fund, to the General Fund.  
I revise this item by deleting Provision 2.

Provision 2 provides that the funds from the repayment of this loan shall be allocated by the 
formula set forth in paragraph (3) of subdivision (a) of Section 2103 of the Streets and 
Highways Code.  Use of these funds for the State Highway Operation and Protection 
Program (SHOPP) for critical highway maintenance and safety projects is a higher priority 
given the extraordinary backlog and needs in this program.

Item 2660-104-6043-For local assistance, Department of Transportation, non-State 
Transportation Improvement Program (STIP), payable from the High-Speed Passenger Train 
Bond Fund.   I reduce this item from $146,126,000 to $38,500,000 by reducing:

(1)	30.10-Mass Transportation from $146,126,000 to $38,500,000.

While I am sustaining $38,500,000 to fund the implementation of positive train control 
safety projects in various local rail corridors, I am reducing this item by $107,626,000.
These funds are available from Proposition 1A bond proceeds for the purpose of enhancing 
local transit lines as feeder routes to the high-speed rail system.  The High-Speed Rail 
Authority, the Department of Transportation, and local jurisdictions should work together to
develop a statewide strategy and an associated list of projects that will best accomplish the 
goal of moving passengers between destinations around the state in the quickest, most 
efficient and cost effective way, by utilizing these funds to advance the construction of 
facilities for joint use where possible and by providing better connectivity to the future 
high-speed rail system.

Item 2660-304-6043-For capital outlay, Department of Transportation, non-State 
Transportation Improvement Program (STIP), payable from the High-Speed Passenger 
Train Bond Fund.   I reduce this item from $88,302,000 to $62,490,000 by reducing:

(1)	30-Mass Transportation from $88,302,000 to $62,490,000.

While I am sustaining $62,490,000 to fund the implementation of positive train control 
technology on various state intercity rail corridors, I am reducing this item by $25,812,000, 
to conform to the action I have taken in Item 2660-104-6043.

Item 2665-004-6043-For support of High-Speed Rail Authority, payable in accordance 
with and from the proceeds of the Safe, Reliable High-Speed Train Bond Act for the 
21st Century, payable from the High-Speed Passenger Train Bond Fund.  I delete
Provision 2.

Provision 2 provides that $55,320,000 appropriated in this item and Items 2665-304-0890, 
2665-304-6043, 2665-305-0890, and 2665-305-6043 is available only upon submittal of a 
report to the Joint Legislative Budget Committee and a 60-day review period.  The report is 
to include a legal analysis of any revenue guarantee, a summary of contract expenditures 
for community outreach, a financial plan with alternative funding scenarios, a copy of the 
strategic plan, a report on the performance of the Program Management Contractor, and a 
report on how the Authority has addressed other recommendations of the Bureau of State 
Audits not otherwise covered by this provision.  While the Administration supports these 
reporting requirements, making the appropriation contingent upon receipt and approval of
this report by the Legislature could result in project delays, jeopardize the Authority's 
ability to meet already tight federal deadlines and result in increased state costs.

Item 2665-304-0890-For capital outlay, High-Speed Rail Authority.  I revise this item by 
revising Provision 1. 

I am revising Provision 1 to conform to the action I have taken in Item 2665-004-6043 as 
follows:

"1. Provision 2 of Item 2665-004-6043 and Provision 1 and 1.6 of Item 2665-304-6043 shall
apply to this item."

Item 2665-304-6043-For capital outlay, High-Speed Rail Authority.  I revise this item by
deleting Provisions 1.5 and 1.6.

I am deleting Provisions 1.5 and 1.6 to conform to the action I have taken in 
Item 2665-004-6043.

Item 2665-305-0890-For capital outlay, High-Speed Rail Authority.  I revise this item by 
revising Provision 1. 

I am revising Provision 1 to conform to the action I have taken in Item 2665-004-6043 as 
follows:

"1. Provision 2 of Item 2665-004-6043 and Provision 3 of Item 2665-305-6043 shall apply to 
this item."

Item 2665-305-6043-For capital outlay, High-Speed Rail Authority.   I revise this item by 
deleting Provision 1.5.

I am deleting Provision 1.5 to conform to the action I have taken in Item 2665-004-6043.

Item 3600-001-0001-For support of Department of Fish and Game.  I reduce this item 
from $66,318,000 to $64,818,000 by reducing:

(1) 20-Biodiversity Conservation Program from $128,915,000 to $127,415,000.

Of the $3,000,000 legislative augmentation for the Department of Fish and Game’s (DFG) 
Habitat Conservation Programs, I am sustaining $1,500,000 for Marine Life Protection Act 
projects and deleting $1,500,000 for Timber Harvest Plan (THP) review.  The reduction in 
funding to the Department’s Habitat Conservation Programs is necessary to achieve
additional General Fund savings.  Additionally, appropriate levels of funding still remain for 
THP review and the DFG should focus these remaining resources on the highest priority  
projects.

Item 3600-001-0200-For support of Department of Fish and Game.  I revise this item by 
deleting Provision 2.

I am deleting Provision 2 requiring the Department of Fish and Game (DFG) to submit a 
report to the Legislature regarding all incidents in which a taser was used.  This provision 
would create a new reporting requirement for the DFG without providing funding source for 
the cost of producing the report.

Item 3860-001-0001-For support of Department of Water Resources.  I revise this item by 
reducing:

(3)	30-Public Safety and Prevention of Damage from $140,265,000 to $139,765,000,
	and 

(32)	Amount payable from the Disaster Preparedness and Flood Prevention Bond Fund 
	of 2006 (Item 3860-001-6052) from -$72,398,000 to -$71,898,000. 

I am revising this item to conform to the action I have taken in Item 3860-001-6052 and 
Item 3860-101-6052.

Item 3860-001-6052-For support of Department of Water Resources.  I reduce this item 
from $72,398,000 to $71,898,000.

I am reducing this item by $500,000 to conform to the action I have taken in 
Item 3860-001-0001 and Item 3860-101-6052 related to agricultural easements.

Item 3860-101-6052-For local assistance, Department of Water Resources.  I reduce this 
item from $129,750,000 to $125,250,000 and delete Provision 2.

I am deleting the $4,500,000 legislative augmentation for agricultural easements.  Acquiring 
agricultural easements may be a permissible component of a multi-benefit flood control 
project, but the primary purpose of Proposition 1E funding is to enhance flood protection 
throughout the state.  This earmark for agricultural easements undermines the state’s ability to
allocate limited bond funds to projects with the highest flood control benefits and would 
increase state costs.

I am deleting Provision 2 to conform to this action.

Item 4170-001-0001-For support of Department of Aging.  I reduce this item from 
$4,131,000 to $3,991,000 by reducing:

(4)	40-Special Projects from $6,777,000 to $6,637,000,

and by deleting Provision 1.

I am deleting the legislative augmentation of $140,000 and 0.9 personnel years for support 
of Community Based Services programs.

I am deleting Provision 1 to conform to the action I have taken in Item 4170-101-0001.

Item 4170-101-0001-For local assistance, Department of Aging.  I reduce this item from 
$35,343,000 to $29,083,000 by reducing:  

(4)	40-Special Projects from $18,051,000 to $11,791,000,

and by deleting Provision 3.

I am deleting the $6,260,000 legislative augmentation to Community Based Services 
programs.  This reduction is necessary to help bring ongoing expenditures in line with 
existing resources and to build a prudent reserve.

I am deleting Provision 3 to conform to this action.

Item 4200-001-0001-For support of Department of Alcohol and Drug Programs.

I reduce this item from $4,628,000 to $4,353,000 by reducing:  

(1)	15-Alcohol and Other Drug Services Program from $45,311,000 to $45,036,000.

I am reducing this item by $275,000 and 3.0 positions to help bring ongoing expenditures in 
line with existing resources and to build a prudent reserve.  This eliminates funding for the 
Offender Treatment Program, consistent with my proposed Budget.  I am reducing a total of 
$18,000,000 for this purpose: $275,000 from this item and $17,725,000 from 
Item 4200-101-0001.

Item 4200-101-0001-For local assistance, Department of Alcohol and Drug Programs.  
I reduce this item from $83,665,000 to $65,940,000 by reducing:

(1)	15-Alcohol and Other Drug Services Program from $332,191,000 to $314,466,000.

I am reducing this item by $17,725,000 to help bring ongoing expenditures in line with 
existing resources and to build a prudent reserve.  This eliminates state funding for the 
Offender Treatment Program consistent with my proposed Budget.  I am reducing a total of 
$18,000,000 for this purpose: $17,725,000 from this item and $275,000 from 
Item 4200-001-0001.

Item 4200-104-0001-For local assistance, Department of Alcohol and Drug Programs.  
I reduce this item from $21,111,000 to $20,448,000 by reducing:  

(1) 15-Alcohol and Other Drug Services Program from $38,165,000 to $37,502,000,

and by revising Provision 2.

I am reducing this item by $663,000 to help bring ongoing expenditures in line with existing 
resources and to build a prudent reserve.  With these reductions $5,104,000 still remains to 
support the eight existing Residential Perinatal Treatment Programs, a funding level 
consistent with last year’s funding level for each of the remaining centers.

I am revising Provision 2 to conform to this action as follows:

"2.  Of the funds appropriated in this item, $5,767,000$5,104,000 shall be used to fund 
existing residential perinatal treatment programs that were begun through the federal 
Center for Substance Abuse Treatment grants, but whose grants have since expired and 
currently are constituted as Women and Children's Residential Treatment Services. For 
counties in which there is such a provider, the State Department of Alcohol and Drug
Programs shall include language in those counties' allocation letters that indicates 
the amount of the allocation designated for the provider during the fiscal year. 
Pursuant to Section 11840.1 of the Health and Safety Code, the treatment programs that 
were established through the federal Center for Substance Abuse Treatment grants are not 
subject to the county 10-percent match. All of the funds allocated for programs shall be 
passed through those counties directly to the designated residential treatment programs in 
each county, respectively."

Item 4260-101-0001-For local assistance, Department of Health Care Services.
I reduce this item from $13,285,305,000 to $13,263,331,000 by reducing:

(1)	20.10.010-Eligibility (County Administration) from $2,893,028,000 to
	$2,849,080,000, and

(9)	Amount payable from the Federal Trust Fund (Item 4260-101-0890) from
	-$28,849,145,000 to -$28,827,171,000.

I am deleting the $21,974,000 legislative General Fund augmentation for County 
Administration.  This reduction is necessary to bring expenditures in line with existing 
resources and to build a prudent reserve.

Item 4260-101-0890-For local assistance, Department of Health Care Services.  I reduce 
this item from $28,849,145,000 to $28,827,171,000.

I am reducing this item by $21,974,000 to conform to my action in Item 4260-101-0001.

Item 4260-111-0001-For local assistance, Department of Health Care Services.  I reduce 
this item from $200,496,000 to $190,496,000 by reducing:  

(1)	20.35-Primary and Rural Health from $11,054,000 to $1,054,000.

I am deleting the $10,000,000 legislative augmentation for various discretionary clinic 
grants. This reduction is necessary to bring expenditures in line with existing resources and 
to build a prudent reserve.  Federal Health Care Reform alternatively provides $1.4 billion of 
increased funds over five years to clinics, in addition to substantial increases from the
American Recovery and Reinvestment Act.  Most of these clinics will continue to receive 
significant state funding from Medi-Cal and other programs.

Item 4265-001-0001-For support of Department of Public Health.  I reduce this item from 
$77,997,000 to $76,997,000 by reducing:

(2)	20-Public and Environmental Health from $395,074,000 to $394,074,000.

I am deleting the legislative augmentation of $1,000,000 General Fund for the Prostate 
Cancer Treatment Program.  These reductions are necessary to limit program expansions, 
to help bring ongoing expenditures in line with existing resources, and to build a prudent 
reserve.  With this reduction, $3,100,000 still remains to support the Prostate Cancer 
Treatment Program.

Item 4265-111-0001-For local assistance, Department of Public Health.  I reduce this item 
from $239,617,000 to $174,884,000 by reducing:

(3)	20.20-Infectious Disease from $390,613,000 to $330,880,000; and

(4)	20.30-Family Health from $1,610,589,000 to $1,605,589,000.

I am reducing this item by $57,133,000 by reducing funding to local entities for the following 
programs:

·	$52,133,000 for Office of AIDS local assistance programs, and

·	$5,000,000 for the Maternal, Child and Adolescent Health Program.

These reductions are necessary to help bring ongoing expenditures in line with existing 
resources and to build a prudent reserve.  With these reductions, $55,109,000 still remains 
to support the Maternal, Child, and Adolescent Health Program, and $55,412,000 still 
remains to support Office of AIDS local assistance programs.

I am also reducing this item by $7,600,000 General Fund by reducing funding to local 
entities for the AIDS Drug Assistance Program (ADAP).  The Department of Public Health 
may utilize funding from the ADAP Rebate Fund, which is continuously appropriated, to 
maintain services, if necessary.  This reduction is necessary to provide for a prudent 
General Fund reserve.  With this reduction, $434,013,000 still remains to support the 
ADAP.

Item 5180-101-0001-For local assistance, Department of Social Services.  I reduce this 
item from $3,614,352,000 to $3,248,452,000 by adding:

Unallocated Reduction -$365,900,000.

I am reducing this item by $365,900,000 and am instructing the Director of the Department 
of Social Services to request a corresponding advance of Temporary Assistance for Needy 
Families Block Grant funds from the federal government for the quarter ending 
June 30, 2011.  This will provide one-time General Fund relief without any adverse program 
impacts.

Item 5180-151-0001-For local assistance, Department of Social Services.  I reduce this 
item from $740,599,000 to $679,718,000 by reducing:  

(1)	25.30-Children and Adult Services and Licensing from $2,178,571,000 to 
	$2,117,690,000.

I am reducing this item by $60,881,000 to help bring ongoing expenditures in line with 
existing resources and to build a prudent reserve. With this reduction $2,117,690,000 still 
remains to support the Children and Adult Services and Licensing Program.  This maintains 
the level of funding for the Child Welfare Services Program that was in effect in fiscal year 
2009-10. I am reducing a total of $79,956,000 for this purpose: $60,881,000 from this item 
and $19,075,000 from Item 5180-153-0001.

Item 5180-153-0001-For local assistance, Department of Social Services.  I reduce this 
item from $359,729,000 to $340,654,000 by reducing:  

(1)	26-Title IV-E Waiver from $914,352,000 to $895,277,000.

I am reducing this item by $19,075,000 to help bring ongoing expenditures in line with 
existing resources.  With this reduction $895,277,000 still remains to support the 
Title IV-E Program.  This maintains the level of funding for the Child Welfare Services 
Program that was in effect in fiscal year 2009-10.  I am reducing a total of $79,956,000 for
this purpose: $19,075,000 from this item and $60,881,000 from Item 5180-151-0001.

Item 5225-001-0001-For support of California Department of Corrections and 
Rehabilitation.  I revise this item by deleting Provision 7.

I am deleting Provision 7, which would restrict the California Department of Corrections and 
Rehabilitation (CDCR) from using the Inmate Activation Schedule for purposes of budgeting 
and to instead use a ratio of one staff for every 5.6 inmates.  This methodology change 
would result in additional workload without regard to the availability of resources. 
Consequently, I am vetoing this language.  Nevertheless, I am instructing the CDCR to 
continue to work with the Department of Finance and the Legislature to develop and 
implement changes to their population budgeting process that would result in more 
transparency, provided they are able to do so using existing resources and without 
impairing the CDCR’s ability to perform its essential functions.

Item 6110-001-0001-For support of Department of Education.  I revise this item from 
$34,031,000 to $34,030,000 by reducing:

(2)	20-Instructional Support from $139,361,000 to $132,914,000; 

(3)	30-Special Programs from $53,845,000 to $53,342,000;

(8)	Reimbursements from -$17,293,000 to -$16,790,000;

(9)	Amount payable from Federal Trust Fund (Item 6110-001-0890) from -$148,290,000
	to -$141,844,000; and by

revising Provision 22; and 

deleting Provision 25.

I am deleting the legislative augmentation of $385,000 in reimbursement authority and 
2.0 limited-term positions for support of the State Advisory Council on Early Childhood 
Education and Care (ELAC) because the increase in workload has not been justified.  
Further, I am vetoing $118,000 in reimbursement authority proposed in the May Revision 
for one redirected position given that the Sacramento County Office of Education will a
ssume the responsibility for coordinating the activities of the ELAC.  The Budget continues 
to provide authority for 2.0 limited-term positions for the Department to provide additional 
support for the ELAC’s work, which should be sufficient. 

I am revising Provision 22 to conform to this action as follows:

"22. (a) Of the reimbursements appropriated in Schedule (8), $439,000 and 2.0 limited-term 
positions until July 1, 2013, pursuant to an agreement with the California Children and Families
Commission, shall be available to the State Department of Education to support the
activities of the Early Learning Quality Improvement System Advisory Committee
established by Chapter 307 of the Statutes of 2008, and the Advisory Council on
Early Childhood Education and Care (ELAC) pursuant to Executive Order S-23-09. 

(b) Of the reimbursement funds appropriated in Schedule (8), $503,000 is provided for 
1.0 redirected position, 2.0 new limited-term positions until July 1, 2013, and associated 
committee expenses to support the activities of the ELAC, pursuant to an agreement with the
California Children and Families Commission."

I am reducing the legislative augmentation of $144,000 General Fund by $1,000 and 
deleting the provisional language specifying that the Curriculum Development and 
Supplemental Materials Commission (Commission) is to complete the History/Social 
Science and Science frameworks.  Instead, it is my intent that the remaining $143,000 be 
used for higher priority activities related to the California Common Core Standards, as 
directed by the State Board of Education.

I am also deleting Provision 25 to conform to this action.

Finally, I am revising this item to conform to the actions taken in Item 6110-001-0890.

Item 6110-001-0890-For support of Department of Education.  I revise this item by: 
reducing this item from $148,790,000 to $142,344,000, revising language in this item, and 
by deleting Provision 17.5 and Provision 39.

I am reducing $2,946,000 Federal Trust Funds that would otherwise be available for the 
development and support of the California Longitudinal Pupil Achievement Data System 
(CALPADS).  I am concerned that the resources allocated for this purpose lack necessary 
accountability to ensure the citizens of California receive a high quality longitudinal 
educational data system that can be used to enable our students to improve academically,
consistent with my long standing goal for improved transparency to the public.  With this 
reduction, $2,946,000 remains to provide for costs incurred through December 6, 2010.  In 
addition, I have reduced expenditure authority for support of the California School 
Information Services administrative activities for the CALPADS project in Item 6110-485 
from $5,244,000 to $1,362,000 to conform to this action.  It is my intent that this reduced 
funding be set aside for future legislation that appropriates funds for an appropriate entity to
complete the project and provide a data system that will successfully supply student-level 
achievement data to assist teachers, district administrators, and policy makers with reliable 
information.

While California has struggled with this project for over seven years and spent over 
$150 million since 1997 on longitudinal data systems, other states have allocated far less 
funding and achieved their databases in much less time. For example, Virginia and Texas 
each have spent approximately $20 million to develop their systems; Virginia has an in-
house system; and Texas developed an integrated data warehouse system over a two-year
period.

It is critical to have a statewide longitudinal data system to measure overall effectiveness of 
teachers, principals, and schools.  Without this data, reform efforts in our lowest achieving 
schools are paralyzed.  We owe it to the children in those struggling schools to make 
certain we get this right.  The absence of a good statewide data system frustrates the 
efforts of our great school district leaders who need this data to learn from other high
performing school districts across the state and improve school achievement in their 
classrooms.  Finally, the lack of this data system was a significant factor in California's loss 
of federal Race to the Top funding.  Enough is enough.

I am revising Provision 17 to conform to this action as follows:

"17. The following funds appropriated in this item are for the development of a 
comprehensive strategy to address data reporting requirements and the 
development of the California Longitudinal Pupil Achievement Data System 
(CALPADS) to meet the requirements of the federal No Child Left Behind Act of 
2001 (P.L. 107-110) and Chapter 1002 of the Statutes of 2002:
	(a) $730,000 $ 287,500 and 5.0 positions to support state operations for 
	    a comprehensive strategy to address data reporting requirements.

	(b) $1,430,000 $48,500 and 1.0 position to support state operations
	    related to the development of CALPADS.

	(c) $115,000 and 1.0 position to support workload associated with
	    coordinating data collection and sharing for CALPADS and for the 
	    federal Education Data Exchange Network.

	(d) $2,457,000 to support Department of Technology Services costs 
	    associated with storage and maintenance of CALPADS servers and data.

	(e) $38,000 for software maintenance and licenses necessary to ensure
	    consistent matching of Statewide Student Identifiers."

I am also deleting Provision 17.5 to conform to this action.

Further, I am deleting $3,500,000 in federal Title II and federal Statewide Longitudinal Data 
System funds for the California Teachers Integration Data System (CALTIDES) to conform 
to my actions on the California Longitudinal Pupil Advancement Data System (CALPADS) 
and because CALTIDES was to be developed within the CALPADS infrastructure.  With this 
reduction, $563,000 remains to provide for costs incurred through December 6, 2010.   It is 
my intent that these funds be set aside for future legislation that would appropriate funds for 
an appropriate entity to complete the project and provide a data system that will 
successfully provide teacher and student-level achievement data to assist teachers, district 
administrators, and policy makers with reliable information.

I am also revising Provision 31 to conform to this action as follows:

"31. Of the funds appropriated in this item, $3,000,000$560,000 is provided from federal 
Statewide Longitudinal Data System funds and $1,060,000 is provided from federal Title II 
funds., of which $200,000 is one-time carryover.  The funding shall support 3.0 limited-term 
positions and  2.0 existing positions and other development costs for the California 
Longitudinal Teacher Integrated Data Education System (CALTIDES). The one-time 
carryover funds are available for CALTIDES or the California Longitudinal Pupil 
Achievement Data System (CALPADS) support, which may include a Data Processing 
Manager III position. No funds may be expended until the California Longitudinal Pupil 
Achievement Data System (CALPADS) has been determined to receive and transfer data 
reliably and upon the written approval of the Department of Finance and the office of the 
State Chief Information Officer.  The 3.0 limited-term positions shall expire on 
June 30, 2012."

Finally, I am deleting Provision 39 which states legislative intent language that a portion of 
the grant under the American Recovery and Reinvestment Act for the State Advisory 
Council on Early Childhood Education and Care (ELAC) be used to study the feasibility of 
implementing a data system containing information on children five years of age or 
younger.  This language is inconsistent with the approved grant application for these funds which
contains funding to contract for a needs assessment that will explore expanding
existing data systems for this purpose.

Item 6110-113-0890-For local assistance, Department of Education.  I reduce this item 
from $28,742,000 to $27,967,000 by deleting:

(1)	20.60.030.030-Instructional Support: Alternative Schools Accountability Model 
	($775,000),

and Provision 1.

I am reducing this item by $775,000 to eliminate the Alternative Schools Accountability 
Model consistent with my April 1st proposal.  The Department of Education and the State 
Board of Education have begun phasing out the external contractor in favor of the 
Department of Education staff compiling data from existing sources making these funds
unnecessary.  In addition, because the state funds testing and accountability programs 
interchangeably with federal funds and Proposition 98 General Fund, this reduction will 
generate Proposition 98 General Fund savings.

Item 6110-161-0890-For local assistance, Department of Education.  I reduce this item 
from $1,232,519,000 to $1,232,518,000 by reducing:

(4)	10.60.050.021-IDEA, State Level Activities from $81,914,000 to $81,913,000,

and by deleting Provision 9 to conform to the action I have taken in Item 8885-295-0001.

Item 6110-196-0001-For local assistance, Department of Education (Proposition 98).
I reduce this item from $1,508,848,000 to $1,252,848,000 by reducing:

(1.5)	30.10.020-Child Care Services from $1,683,503,000 to $1,427,503,000

(f)	30.10.020.012-Special Program, Child Development, Alternative Payment 
	Program-Stage 3 Setaside from $365,918,000 to $109,918,000.

I am reducing $256,000,000 from CalWORKs Stage 3 child care.  This action is necessary
to help bring ongoing expenditures in line with existing resources and to build a prudent 
reserve. With this reduction, $128,823,000 in federal funds remains to support existing
Stage 3 child care services through October 2010.

Item 6110-485-For local assistance, Department of Education.  I revise this item to 
conform to the actions related to the support and development of the California Longitudinal
Pupil Achievement Data System I have taken in Item 6110-001-0890 as follows:

"Reappropriation (Proposition 98), Department of Education.  The sum of $5,224,000  
$1,362,000 is hereby reappropriated from the Proposition 98 Reversion Account for the 
following purposes:

0001-General Fund
(2)	The sum of $5,224,000 $1,362,000 to support California School Information 
	Services administration activities authorized pursuant to Schedule (2) of 
	Item 6110-140-0001."

Item 6440-001-0001-For support of University of California.  I revise this item by deleting
Provision 17.

I am vetoing the provisional language that would require the University of California (UC) to 
report on its proposal for long-term state funding for the UC Retirement Plan (UCRP), 
including any alternative funding plans that might be proposed.  This language is 
unnecessary, as forwarding every proposal received from any person or entity is 
unwarranted.  Further, the UC Office of the President is committed to reporting on its UCRP 
proposals and has indicated that it would provide detailed reports on the long-term funding
of the UCRP without the adoption of this language.

I am deleting Provision 17 to conform to this action.

Item 7350-001-0001-For support of Department of Industrial Relations.  I revise this item 
by deleting Provision 2.

I am deleting Provision 2, which prohibits the Department of Industrial Relations (DIR) from 
implementing the prevailing wage survey in the Central Valley agreed to during 2009-10 
budget negotiations.  In an effort to build a prudent reserve, I have agreed that no 
General Fund will be added to this budget to support this activity.  However, I am instructing
the Director of the DIR to utilize existing resources to complete this critical study as the
disparity between commercial and residential rates is significant within the Central Valley.  
Failure to conduct this survey would prevent the DIR from meeting its statutory 
responsibilities to ensure wages paid within residential construction are appropriate.  In the 
absence of this study, the prohibition could result in future construction costs that are $25 to 
$50 million greater than would otherwise be required for completion of $1 billion in public 
works projects.

Item 7980-001-0001-For support of Student Aid Commission.  I reduce this item from 
$11,711,000 to $11,236,000 by reducing:  

(1)	15-Financial Aid Grants Program from $12,550,000 to $12,075,000;

(1.5)	50-California Loan Program from $514,000 to $257,000;

(4.5)	Amount payable from the Student Loan Operating Fund (Item 7980-001-0784); from
	-$514,000 to -$257,000

and by revising Provisions 4 and 5.

I am reducing Schedule (1) to delete legislative augmentations totaling $475,000 General 
Fund and 1.0 position for publication of a periodical and for additional information 
technology staff and equipment.  This reduction is necessary to limit program expansion 
and to help bring ongoing expenditures in line with existing resources and to build a prudent
reserve.  With this reduction, $11,236,000 still remains to support programs, including 
$1.2 million for restoring essential services performed by EdFund.

I am reducing Schedule (1.5) by $257,000 Student Loan Operating Fund and 3.0 net 
personnel years to reflect the phase-out of workload associated with oversight of EdFund 
resulting from recent federal legislation ending the Federal Family Education Loan Program 
and the U.S. Department of Education’s decision to terminate the Student Aid 
Commission’s guaranty agency agreement.  It is anticipated that these federal decisions will 
end all Federal Policy and Program Division workload by January 1, 2011.  Over $250,000 
remains available to fund this activity for the first six months of this fiscal year.

Similarly, I am reducing the amount authorized in Schedule (4.5), the amount payable from 
the Student Loan Operating Fund, by $257,000.

I am revising Provisions 4 and 5 to conform to these actions.

"4. This item reflects $514,000 $257,000 payable from the Student Loan Operating Fund for 
the purpose of funding, on a limited-term basis, 6.0 positions in the Federal Policy 
and Programs Division.  Those positions shall be continued until a sale or other authorized 
transaction is completed pursuant to Chapter 182 of the Statutes of 2007, which is
anticipated to occur no later than the 2010-11 fiscal year."

"5. Of the funds appropriated in Schedule (1), up to $1,151,000$676,000 is available for 
any expenses that may be necessary or convenient for the Student Aid Commission to 
assume activities currently provided by EdFund in order to further the intent of the sale, or 
other authorized transaction, of EdFund pursuant to Chapter 182 of the Statutes of 2007.  
These funds shall not be expended unless first approved in writing by the Department of 
Finance."

Item 7980-001-0784-For support of Student Aid Commission.  I reduce this item from 
$514,000 to $257,000 and delete Provision 1.

I am reducing this item by $257,000 to conform to the action I have taken in 
Item 7980-001-0001.

I am deleting Provision 1 to conform to this action.

Item 8885-295-0001-For local assistance for reimbursement, in accordance with the 
provisions of Section 6 of Article XIIIB of the California Constitution or Section 17561 of the 
Government Code, of the costs of any new program or increased level of service of an 
existing program mandated by statute or executive order, for disbursement by the 
Controller for claims for costs incurred during the specified periods.  I reduce this item from 
$216,336,000 to $80,400,000 by reducing:  

(1)	For payment of the following mandate claims for costs incurred in the 2004-05 
	through 2008-09 fiscal years from $216,336,000 to $80,400,000.

My policy is to suspend mandates not related to elections, law enforcement, or property 
taxes in order to maintain a prudent General Fund reserve.

I am reducing this item by $132,941,000 by deleting Schedule (1) (oo) Handicapped and 
Disabled Students I and II, and Seriously Emotionally Disturbed Pupils: Out of State Mental 
Health Services (AB 3632) (Ch.1747, Stats. 1984; Ch. 1128, Stats. 1994; Ch. 654, 
Stats. 1996) (CSM-4282; 02-TC-40; 02-TC-49; 97-TC-05).  This mandate is suspended.

I am also reducing this item by $2,995,000 by deleting Schedule (1) (pp) Local Recreational
Background Checks (Ch. 777, Stats. 2001).  This mandate is suspended.  However, I will
support legislation that grants local entities fee authority to recoup the costs of the 
background screenings for employees and volunteers at locally operated parks, 
playgrounds, recreational centers, or beaches used for recreational purposes.

With the above deletions, revisions, and reductions, I hereby approve Senate Bill 870.



                                                                            ARNOLD SCHWARZENEGGER