BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 108| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 108 Author: Assembly Budget Committee Amended: 3/14/11 in Senate Vote: 27 PRIOR VOTES NOT RELEVANT SUBJECT : Budget Act of 2010: Revisions SOURCE : Author DIGEST : This bill makes budgetary loans and transfers in the 2010-11 fiscal year by amending the 2010 Budget Act. Senate Floor Amendments of 3/14/11 delete the prior version of the bill and insert the current provisions relating to budgetary loans and transfers. ANALYSIS : This bill amends the 2010 Budget Act to add new budgetary loans and transfers from special funds to the General Fund. In total, the amount directed to the General Fund in this bill is $544.7 million. The loans must be repaid as needed to support the activities of the related programs. Most of these loans were proposed by the Governor to backfill for the revenue loss caused by the cancelation of the sale-for-leaseback of 11 large state office buildings. The sale of the state office buildings would have resulted in higher ongoing lease costs, and carried an implied CONTINUED AB 108 Page 2 interest rate of approximately 10 percent. The special fund loans will have a much lower interest cost - likely under two percent. This bill includes the Proposition 25 language that identifies all the budget trailer bills. The loans and transfers are as follows: ---------------------------------------------------------- This bill also provides the Department of Finance with authority to provide up to $10 million to the Secretary of State for its costs for the June 2011 statewide special election. FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes Local: No DLW:mw 3/15/11 Senate Floor Analyses SUPPORT/OPPOSITION: NONE RECEIVED **** END ****