BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   AB 108|
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                                 THIRD READING


          Bill No:  AB 108
          Author:   Assembly Budget Committee 
          Amended:  3/14/11 in Senate 
          Vote:     27 - Urgency

           
          PRIOR VOTES NOT RELEVANT

           SENATE BUDGET & FISCAL REVIEW COMMITTEE  :  11-5, 3/16/11
          AYES:  Leno, Alquist, DeSaulnier, Evans, Liu, Lowenthal, 
            Rubio, Simitian, Wright, Hancock, Wolk
          NOES:  Huff, Emmerson, Fuller, Anderson, La Malfa


           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.    

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                                                                AB 108
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          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 
          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:
          
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          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  3/17/11   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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