BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 1477| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 1477 Author: Assembly Budget Committee Amended: 8/24/12 in Senate Vote: 21 SENATE BUDGET & FISCAL REVIEW COMMITTEE : 10-4, 8/23/12 AYES: Leno, Alquist, DeSaulnier, Hancock, Liu, Lowenthal, Negrete McLeod, Simitian, Wolk, Wright NOES: Emmerson, Fuller, Gaines, La Malfa NO VOTE RECORDED: Anderson, Evans ASSEMBLY FLOOR : Not relevant SUBJECT : 2012-13 Budget Act: Trailer Bill SOURCE : Author DIGEST : This bill amends the Budget Act of 2012 by revising various items of appropriation and making other changes in the Budget Act of 2012, including the Childrens Health and Human Services Special Fund, California Police Activities League, California State University, University of California Capital Outlay Projects Provisional Language, Reduction for Employee Compensation, Public Utilities Commission Special Fund Allocations, Renewable Resources Trust Fund, Parks and Recreation Water and Wastewater Projects, Parks and Recreation National Parks Agreements, Vote-by-mail Ballots and Election Results Statements, CalWORKs, and K-12 Education Mandate Reimbursements. CONTINUED AB 1477 Page 2 Senate Floor Amendments of 8/24/12 add support to the Department of Transportation and make changes to the California State University provision. ANALYSIS : The Senate Budget and Fiscal Review Committee staff state, the majority of this bill make minor, technical corrections to the Budget Act of 2012. This bill also includes the following major changes to the Budget Act of 2012: 1. Children's Health and Human Services Special Fund . Appropriates an additional $183 million (Children's Health and Human Services Special Fund) to the Healthy Families Program for 2012-13. This additional appropriation is scheduled across Item 4280 (Managed Risk Medical Insurance Board, Healthy Families Program) and reflects a total appropriation of $968.7 million (total funds) for the Healthy Families Program. With the additional $183 million, the total amount appropriated within the Children's Health and Human Services Special Fund will be $191.8 million. The revenues for the Children's Health and Human Services Special Fund are generated from the gross premiums tax on Health Plans participating in the Medi-Cal Managed Care Program as originally enacted in AB 1422, Statutes of 2009. However, the authority for this tax expired as of July 1, 2012. Legislation to reauthorize this tax is proceeding this session and AB 1479 has a contingency clause that the additional $183 million (Children's Health and Human Services Special Fund) appropriation is operative only if revenues as specified are obtained for this purpose. 2. California Police Activities League . Appropriates $123,000 to the California Police Activities League to fund programs and services. The resources for this appropriation were collected pursuant to a check-off contribution option placed on the personal income tax return. CONTINUED AB 1477 Page 3 3. University of California Capital Outlay Projects Provisional Language . Adds budget bill provisional language that was inadvertently omitted from appropriations of 1992 and 1996 General Obligation bond funds for construction of Phase 2 Infrastructure Improvements at UC Santa Cruz. The provisional language, which has been included in the past several budgets on GO-bond funded UC capital outlay projects, authorizes expenditure of any savings as specified and requires payment of prevailing wage rates. 4. Reduction for Employee Compensation . Amends existing budget control section language to ratify the addenda with statewide Bargaining Units 2 (CASE), 7 (CSLEA), and 10 (CAPS), which were submitted to the Joint Legislative Budget Committee by July 1, 2012. These additional addenda, similar to those ratified in the 2012 Budget Act for other statewide bargaining units, specify that state employees in Bargaining Units 2, 7, and 10 have agreed to participate in the Personal Leave Program 2012 (PLP 2012) for the period from July 1, 2012, to June 30, 2012. These changes further implement Control Section 3.90 of the Budget Act of 2012, which achieves employee compensation-related savings of $402 million GF. 5. Public Utilities Commission Special Fund Allocations . Adjusts special fund allocations at the commission to reflect revised fund balances and caseload projections. 6. Renewable Resources Trust Fund . Re-establishes an annual audit of the fund by the Office of State Audits and Evaluations that was inadvertently deleted in previous legislation. 7. Parks and Recreation Water and Wastewater Projects . Extends the encumbrance period for previously appropriated water and wastewater projects. This will allow the department to use these funds for projects to keep parks from closing due to adverse actions caused by water pollution violations. 8. Parks and Recreation National Parks Agreements . Provides appropriation authority to the department specifically for funding received by the federal CONTINUED AB 1477 Page 4 government for parks where they have taken over full or partial funding of operations. 9. Vote-by-mail Ballots and Election Results Statements . Due to the closure of several Postal Distribution Centers, the receipt of vote-by-mail ballots may be negatively impacted. This provision would provide the Department of Finance with $5 million to reimburse County Registrars for costs related to changes in law requiring registrars to count absentee ballots postmarked on or before the date of an election. 10. CalWORKs . Makes a technical adjustment to the cost-per-case with respect to employment services in the CalWORKs welfare-to-work program. Funds this adjustment through the early reversion of $80 million that was appropriated for CalWORKs in the 2011-12 fiscal year. 11. K-12 Education Mandate Reimbursements . Adds reimbursement funding for several small mandates, most of which were inadvertently left out of the budget. Amendments provide $1,000 each for five mandates. 12. Department of Transportation (Caltrans) . Provides additional support for the (Caltrans) of $7.7 million through expenditure adjustments to the State Highway Account and additional reimbursements largely from local government agencies for the funding of project initiation documents (PIDs), which are preliminary planning documents that include the estimated cost, scope and schedule for the project. This reflects a compromise regarding the funding of PIDs relating to locally-sponsored highway capital projects on the state highway system. Includes Budget Bill language that: (a) exempts PID development and oversight services reimbursed by local government agencies from state overhead charges for cost recovery; and, (b) directs Caltrans streamline the cooperative work agreement process related to PIDs development and oversight. 2. California State University (CSU). Authorizes the CSU Chancellor to transfer balances from extension programs CONTINUED AB 1477 Page 5 in order to also mitigate the impacts of reductions in tuition fee revenues to state-supported instructional programs. The August 22, 2012, amendments to this bill authorized the CSU Chancellor to transfer balances from extension programs in order to mitigate only the impacts of GF reductions to state-supported instructional programs regardless of whether the "trigger cuts" authorized in subdivision (a) of Section 3.62 of the Budget Act of 2012 were operational. FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local: No DLW:k 8/25/12 Senate Floor Analyses SUPPORT/OPPOSITION: NONE RECEIVED **** END **** CONTINUED