BILL ANALYSIS Ó
SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW
Mark Leno, Chair
Bill No: AB 1480
Author: Committee on Budget
As Amended: June 25, 2012
Consultant: Keely Bosler
Fiscal: Yes
Hearing Date: June 25, 2012
Subject: 2011 Public Safety Realignment.
Summary: This bill provides an overall financing structure
for the 2011 Public Safety Realignment. The funding
structure includes the creation of accounts and rules that
govern the flexibility of counties to transfer monies
between accounts. The bill also directs the allocation of
funding among accounts, including the allocation of growth
funding.
Background: Chapter 40, Statutes of 2011 (AB 118, Budget)
enacted 2011 Public Safety Realignment that transferred
approximately $5.6 billion in state fiscal responsibilities
for public safety programs from the state to local
governments. This realignment also redefined 1.0625 of the
state sales and use tax as a local sales and use tax to
support $5.1 billion of the realignment starting in the
2011-12 fiscal year and redirected $453.4 million in
vehicle license fee revenues in Chapter 35, Statutes of
2011 (SB 89, Budget) from the state to local governments to
specifically support local law enforcement programs
previously funded by the state. The Schools and Local
Public Safety Protection Act of 2012 is a Constitutional
Amendment that is qualified for the November 6, 2012
general election that will constitutionally protect the
revenues transferred to local governments as part of the
enactment of 2011 Public Safety Realignment. This
constitutional amendment, among other things, also provides
various mandate protections for the state and guidance
related to cost sharing of future changes to federal
entitlement programs realigned to the counties.
Proposed Law: The legislation (AB 118, Budget) that
provided the framework for the 2011 Realignment provided
-1-
for a temporary financing structure for the 2011-12 fiscal
year only. This legislation enacts a permanent financing
structure for the 2011 Realignment, including account
structures, funding allocations among accounts and
counties, allocations of available growth funding, and
various other issues. Specifically, this bill does the
following:
1. Creates Account Structure in State Treasury. This
bill amends the current account structure created in the
Local Revenue Fund 2011 within the State Treasury and
directs the transfer of all remaining funds in the original
funds to designated successor funds. Specifically, the
bill abolishes all of the original accounts in the Local
Revenue Fund 2011 except for the Mental Health Account.
The bill also creates and designates permanent successor
accounts. The bill creates three main accounts within the
Local Revenue Fund; the Support Services Account, the Law
Enforcement Services Account, and the Sales and Use Tax
Growth Account.
The Support Services Account includes the Protective
Service Subaccount and Behavioral Health Subaccount and
this bill directs the deposit of funds from the original
subaccounts into the new subaccounts and special accounts
as follows:
-----------------------------------------------------------
| Original Subaccount | Successor Subaccount |
|------------------------------+----------------------------|
|Adult Protective Services | Protective Services |
|Subaccount | Subaccount |
|------------------------------+----------------------------|
|Foster Care Assistance | |
|Subaccount | |
|------------------------------+----------------------------|
|Foster Care Administration | |
|Subaccount | |
|------------------------------+----------------------------|
|Child Welfare Services | |
|Subaccount | |
-2-
|------------------------------+----------------------------|
|Adoptions Subaccount | |
|------------------------------+----------------------------|
|Adoption Assistance Program | |
|Subaccount | |
|------------------------------+----------------------------|
|Child Abuse Prevention | |
|Subaccount | |
-----------------------------------------------------------
-----------------------------------------------------------
| Original Subaccount | Successor Subaccount |
|------------------------------+----------------------------|
|Drug Court Subaccount | Behavioral Health |
| | Subaccount |
|------------------------------+----------------------------|
|Nondrug Medi-Cal Substance | |
|Abuse Treatment Services | |
|Subaccount | |
|------------------------------+----------------------------|
|Drug Medi-Cal Subaccount | |
|------------------------------+----------------------------|
|Women and Children's |Women's and Children's |
|Residential Treatment |Residential Treatment |
|Services Subaccount |Services Special Account |
| | |
-----------------------------------------------------------
The successor Women's and Children's Residential Treatment
Services Special Account is created as a special account
within the Behavioral Health Subaccount. The Support
Services Account also includes the creation of a new County
Intervention Support Services Subaccount.
The Law Enforcement Services Account has the following
Subaccounts and this bill directs the deposit of funds from
the original funds into the new subaccounts and special
accounts as follows:
------------------------------------------------------------
| Original Fund | Successor Subaccount |
|-------------------------------+----------------------------|
|Trial Court Security Account |Trial Court Security |
| |Subaccount |
-3-
|-------------------------------+----------------------------|
|Local Community Corrections |Community Corrections |
|Account |Subaccount |
|-------------------------------+----------------------------|
|Local Law Enforcement Services |Enhancing Law Enforcement |
|Account |Activities Subaccount |
|-------------------------------+----------------------------|
|District Attorney and Public |District Attorney and |
|Defender Account |Public Defender Subaccount |
|-------------------------------+----------------------------|
|Juvenile Justice Account |Juvenile Justice Subaccount |
|-------------------------------+----------------------------|
|Youthful Offender Block Grant |Youthful Offender Block |
|Subaccount |Grant Special Account |
|-------------------------------+----------------------------|
|Juvenile Reentry Grant |Juvenile Reentry Grant |
|Subaccount |Special Account |
| | |
------------------------------------------------------------
The successor Youthful Offender Block Grant Special Account
and Juvenile Reentry Grant Special Account are both created
as special accounts within the Juvenile Justice Subaccount.
The Vehicle License Fee revenues dedicated to 2011
Realignment by Chapter 35, Statutes of 2011 (SB 89, Budget)
are deposited directly in the Enhancing Law Enforcement
Activities Subaccount.
This bill creates the Sales and Use Tax Growth Account in
the Local Revenue Fund 2011. Within this account is
created the Support Services Growth Subaccount and the Law
Enforcement Services Growth Subaccount. The Support
Services Growth Subaccount contains two special accounts,
the Protective Services Growth Special Account and the
Behavioral Health Services Growth Special Account. The Law
Enforcement Services Growth Subaccount contains four
special accounts, as follows; Trial Court Security Growth
Special Account, Community Corrections Growth Special
Account, District Attorney and Public Defender Growth
Special Account and Juvenile Justice Growth Special
Account.
There is also created in the Enhancing Law Enforcement
Activities Subaccount an Enhancing Law Enforcement Growth
-4-
Special Account where any vehicle license fee revenues
allocated by Chapter 35, Statues of 2011 (SB 89, Budget)
are deposited above $489.9 million.
As of September 15, 2012 all of the funds in the original
funds and subaccounts are transferred to the successor
subaccounts and special account.
2. Directs Creation of County Account Structure. This
bill directs the county treasurer to amend the current
account structure created in the County Local Revenue Fund
2011. The account structure mirrors the subaccount and
special account structure in the state fund, but does not
direct the creation of the County Intervention Support
Services Subaccount. This bill also directs the creation
of a Support Services Reserve Subaccount in the Support
Services Account.
The bill also directs the creation of a Contract Special
Account within the Protective Services Subaccount for
designated counties to support funding of multi-county or
statewide contracts. The bill also directs the creation of
a Local Innovation Subaccount within the Law Enforcement
Services Account in 2015-16. Starting in 2015-16 the funds
deposited in this account will be able to be used more
flexibly for eligible public safety related activities.
This bill requires only the counties of Alameda, Los
Angeles, Marin, San Diego, San Francisco, and San Joaquin
to create a County Women and Children's Residential
Treatment Services Special Accounts within their Behavioral
Health Subaccount.
As of September 15, 2012 all of the funds in the county
original funds and subaccounts are transferred to the
county successor subaccounts and special accounts and the
original funds and subaccounts are abolished. The accounts
mirror those created in the state treasury with the
aforementioned exceptions.
3. Transferability Between Subaccounts in Support
Services Account. This bill authorizes the counties to
allocate up to 10 percent between subaccounts in the
Support Services Account. The 10 percent is based on the
-5-
amount deposited in the subaccount in the previous year
with the lowest balance. The authorization to make this
transfer must occur in a regularly scheduled public hearing
of the board of supervisors and must be based on the most
cost effective use of available resources to maximize
client outcomes. Any reallocations made shall only be in
effect for the fiscal year in which the allocation was made
and shall not be considered a permanent funding allocation
or a permanent funding source for any program or service
receiving the reallocation. These transfers must be
documented annually to the State Controller and reported to
the Legislature. This bill allows counties authorized to
operate an integrated and comprehensive county health and
human services system to not withstand the transferability
rules set up in this bill.
4. Use of Support Services Reserve Account. This bill
authorizes a county's board of supervisors to reallocate
funds from the Protective Services Subaccount or Behavioral
Health Subaccount, or both to the Support Services Reserve
Subaccount. The amount of these transfers may not exceed 5
percent of the total funds allocated to the Protective
Services Subaccount or Behavioral Health Subaccount in the
State Treasury (excludes growth). The authorization to
make allocations to the Support Services Reserve Account
must occur in a regularly scheduled public hearing of the
board of supervisors. The allocations to the reserve
accounts must be documented annually to the State
Controller and reported to the Legislature.
5. Specifies Eligible Uses for Funds Deposited in 2011
Realignment Subaccounts and Special Accounts. This bill
requires that all funds deposited in the County Local
Revenue Fund 2011 be used exclusively for public safety
services, as defined by this bill and Article XIII of the
Constitution as proposed in The Schools and Local Public
Safety Protection Act of 2012. Current law restricts the
expenditure of funds deposited in the original funds and
accounts created for 2011 Realignment. This bill updates
those accounts to the new successor subaccounts and special
accounts and subjects these updated subaccounts and special
accounts to the same restrictions, including funding in the
various growth special accounts.
-6-
In addition, this bill adds planning, implementation and
training costs for revocation proceedings as an eligible
use of funds deposited in the District Attorney and Public
Defender Subaccount and associated growth special account.
This bill also specifies that funding in the Enhancing Law
Enforcement Activities Subaccount and associated growth
special account shall be used to provide grants and funding
to local law enforcement as provided by statute.
This bill also specifies that funds deposited in the Local
Innovation Subaccount within the Law Enforcement Services
Account shall be used to fund local needs, which include
any eligible expenditure in the Juvenile Justice
Subaccount, the District Attorney and Public Defender
Subaccount, the Community Corrections Subaccount, and the
Trial Court Security Subaccount.
This bill defines that the counties have 100 percent of the
nonfederal share of costs of programs that are part of 2011
Realignment. These costs shall be covered by funds
deposited in the Local Revenue Fund 2011. Also specifies
that funds shall be expended in a manner that maintains
eligibility for federal funding.
This bill adds Medi-Cal specialty health services,
including the Early and Periodic Screening, Diagnosis, and
Treatment Program and mental health managed care to the
list of programs funded from within 2011 Realignment.
These programs were funded outside of 2011 Realignment in
2011-12.
This bill directs the expenditure of any residual funds
remaining in the Reserve Account and Undistributed Account
of the Local Revenue Fund 2011 to fund entitlements for the
2011-12 fiscal year. After these accounts are liquidated
they are abolished on January 1, 2013.
6. Community Corrections Grant Program. This bill
specifies that the monies in the Community Corrections
Subaccount and the Community Corrections Growth Special
Account constitute funding for the Community Corrections
Grant Program established by Chapter 15, Statutes of 2011
(AB 109, Budget).
-7-
7. Defines 2011 Realignment Legislation. This bill
defines "2011 Realignment Legislation" as legislation
entitled 2011 Realignment and provides for the assignment
to local agencies responsibilities for public safety
services. This legislation must be enacted by September
30, 2012. Furthermore, this bill also provides that no new
program may be assigned to local agencies after January 1,
2012, except for the Early and Periodic Screening,
Diagnosis, and Treatment program and mental health managed
care. This statutory framework is provided until Article
XIII of the Constitution is added per The Schools and
Public Safety Protection Act of 2012 on the November 6,
2012 statewide general election.
8. Mandate Protection for State. This bill provides
statutory guidance directing that any mandate of a new
program or higher level of service on a local agency
imposed by 2011 Realignment Legislation shall be paid from
the from funding provided in the Local Revenue Fund 2011.
This statutory framework is provided until Article XIII of
the Constitution is added per The Schools and Public Safety
Protection Act of 2012 on the November 6, 2012 statewide
general election.
9. County Protection against New State Imposed Costs for
Realigned Programs. This bill provides that any
legislation enacted after September 30, 2012 that has the
overall effect of increasing the costs for programs or
levels of service mandated by the 2011 Realignment
Legislation shall apply to local agencies only to the
extent that the State provides annual funding for the cost
increase. This bill also provides that any regulations,
executive orders, or administrative directives, implemented
after October 9, 2011 that are not necessary to implement
2011 Realignment and have the overall effect of increasing
the costs for programs or levels of service mandated in
2011 Realignment shall apply to local agencies only to the
extent that he state provides annually funding for the cost
increase. This bill also limits the state from submitting
to the federal government any plans or waivers, or
amendments to those plans or waivers that have an overall
effect of increasing the cost by a local agency for
programs or levels of service mandated by 2011 Realignment.
-8-
This bill clarifies that that the state is not required to
provide funds for a mandate that is imposed by the state at
the request of a local agency or to comply with federal
law. This bill also makes it clear that any new mandates
imposed by the state shall not be funded from 2011
Realignment, ad valorem property tax, or 1991 Realignment.
This bill also clarifies that it is a county option to
provide a new program or a higher level of service, but it
does not require a subvention of funds from the state.
10. Cost Sharing Provisions for Unanticipated New Program
Costs. The 2011 Realignment includes realignment of
programs and funding for federal entitlement programs.
This bill provides that the state shall provide at least 50
percent of the nonfederal share of costs of any changes in
federal statutes or regulations that alter the conditions
under which federal matching funds are obtained.
For the federal entitlement programs that are part of 2011
Realignment, this bill also requires the state to pay for
50 percent on the nonfederal share of costs related to
judicial or administrative orders that impose a cost in the
form of a monetary penalty. Payment is not required if the
state determines that the settlement or order relates to
one or more local agencies failing to perform a legal
obligation in good faith. This bill states that judicial
complaints related to a state or local agency's failure to
perform under 2011 Realignment shall have priority over all
other civil matters in state judicial proceedings.
11. Conditions of Expenditure of 2011 Realignment Funds.
This bill directs that funds deposited in the County Local
Revenue Fund 2011 be spent in a manner designed to maximize
the state's eligibility for federal matching funds and
ensure compliance with applicable federal standards
governing the provision of services included in 2011
Realignment.
Funds deposited in the County Local Revenue Fund 2011 may
not be used by local agencies to supplant other funding for
public safety services.
-9-
12. Public Notification of Reductions to Optional and
Discretionary Programs. This bill requires that
significant reductions ("significant" defined as 10 percent
in one year or 25 percent over three years) made to
optional or discretionary behavioral health, adult
protective services, and child welfare services programs
that are part of 2011 Realignment must be made in an open
session of a duly noticed meeting of the board of
supervisors.
13. Share of Costs Definition. This bill specifies that
for the programs realigned as part of 2011 Realignment the
state shall not have a share of costs. The funding
provided is specifically intended to be in an amount
sufficient to fund the cost of the state mandates. This
bill requires that the county first exhaust funding
provided in 2011 Realignment and then 1991 Realignment for
any state mandated costs related to 2011 Realignment. This
statutory framework is provided until Article XIII of the
Constitution is added per The Schools and Public Safety
Protection Act of 2012 on the November 6, 2012 statewide
general election.
This bill also specifies that that state does not have a
share of costs for programs described in 2011 Realignment
that were originally funded by 1991 Realignment. This
provision shall become operative if Article XIII of the
Constitution is added per The Schools and Public Safety
Protection Act of 2012 on the November 6, 2012 statewide
general election.
14. Reporting by the State Controller. The State
Controller is required to post monthly the amounts received
by the Local Revenue Fund 2011. The State Controller shall
also post the amounts allocated to every account,
subaccount and special account within the Local Revenue
Fund 2011. Annually the State Controller shall provide
detailed information as to the source of the funding
deposited in each account, subaccount and special account.
Also, starting in 2014-15 the State Controller is required
to report the highest amount ever allocated to the
subaccounts in the Local Revenue Fund 2011 and how much
growth funding may need to be provided as restoration in a
future fiscal year to achieve that level. Annually, the
-10-
State Controller shall make a detailed report on how much
each county, city and city and county received in each
subaccount.
15. Clarifications on Entitlement Programs. This bill
clarifies that nothing in 2011 Realignment impacts in any
way the rights provided by federal entitlement programs.
This bill also specifies that counties shall fund Medi-Cal
Specialty Mental Health Services, including Early and
Periodic Screening, Diagnosis and Treatment from monies
received from the Behavioral Health Subaccount and the
Behavioral Health Growth Special Account. Funding for this
program shall also come from 1991 Realignment funds and to
the extent permissible under the Mental Health Services
Act, the Mental Health Services Fund. This bill requires
that the provision of services for these mental health
programs be based on the requirement of federal law.
16. Technical Amendments to 2011-12 Funding Allocations.
This bill makes technical amendments to the 2011-12 funding
allocations for 2011 Realignment. Mainly these amendments
clarify that cash for any given fiscal year include cash
received until August 15, 2012 to account for the lag in
receipt of sales tax revenues.
17. Makes 2012-13 Funding Allocations. This bill makes
funding allocations to the accounts and subaccounts within
the Local Revenue Fund 2011 for the 2012-13 fiscal year.
The first allocations made from the Local Revenue Fund 2011
are as follows:
(in Millions)
-------------------------------------------------------------
|Account | Amount|
|------------------------------+------------------------------|
|Mental Health Account |$1,120.6 |
| | |
-------------------------------------------------------------
-------------------------------------------------------------
|Account | Amount|
|------------------------------+------------------------------|
|Enhancing Law Enforcement | $489.9 from Vehicle License |
-11-
|Activities |Fee (VLF) revenues and if VLF |
| | revenues are not enough to |
| | reach this level additional |
| |funds from sales tax revenues |
| | deposited in the Local |
| | Revenue Fund 2011 |
|------------------------------+------------------------------|
|Enhancing Law Enforcement | Any remaining VLF revenue |
|Growth Special Account |above $489.9 |
| | |
-------------------------------------------------------------
After the above allocations are made the remaining funds
deposited in the Local Revenue Fund 2011 are allocated as
follows for the 2012-13 fiscal year:
(in Millions)
-------------------------------------------------------------
|Account | Amount|
|------------------------------+------------------------------|
|Support Services Account | 64.1975% or up to $2,604.9|
|------------------------------+------------------------------|
|Law Enforcement Services |35.8025% or up to |
|Account |$1,452.7 |
| | |
-------------------------------------------------------------
The following allocations are then made from the accounts
above to the following subaccounts for the 2012-13 fiscal
year:
(in Millions)
-------------------------------------------------------------
|Support Services Account | Amount|
|------------------------------+------------------------------|
|Behavioral Health Subaccount | 37.0264% or up to $964.5|
|------------------------------+------------------------------|
|Protective Services |62.9736% or up to |
|Subaccount |$1,640.4 |
| | |
-------------------------------------------------------------
-12-
-------------------------------------------------------------
|Law Enforcement Services | Amount|
|Account | |
|------------------------------+------------------------------|
|Trial Court Security | 34.1721% or up to $496.4|
|Subaccount | |
|------------------------------+------------------------------|
|Community Corrections | 58.0217% or up to $842.9|
|Subaccount | |
|------------------------------+------------------------------|
|District Attorney and Public | 1.0050% or up to $14.6|
|Defender Subaccount | |
|------------------------------+------------------------------|
|Juvenile Justice Subaccount |6.8012% or up to |
| |$98.8 |
| | |
-------------------------------------------------------------
From the Behavioral Health Subaccount an amount of $5.1
million is allocated to the Women and Children's
Residential Treatment Services Special Account.
18. Makes 2013-14 Funding Allocations. This bill makes
funding allocations to the accounts and subaccounts within
the Local Revenue Fund 2011 for the 2013-14 fiscal year.
The first allocations made from the Local Revenue Fund 2011
are as follows:
(in Millions)
-------------------------------------------------------------
|Account | Amount|
|------------------------------+------------------------------|
|Mental Health Account |$1,120.6 |
| | |
-------------------------------------------------------------
-------------------------------------------------------------
|Account | Amount|
|------------------------------+------------------------------|
|Enhancing Law Enforcement | $489.9 from Vehicle License |
|Activities |Fee (VLF) revenues and if VLF |
| | revenues are not enough to |
| | reach this level additional |
-13-
| |funds from sales tax revenues |
| | deposited in the Local |
| | Revenue Fund 2011 |
|------------------------------+------------------------------|
|Enhancing Law Enforcement | Any remaining VLF revenue |
|Growth Special Account |above $489.9 |
| | |
-------------------------------------------------------------
After the above allocations are made the remaining funds
deposited in the Local Revenue Fund 2011 are allocated as
follows for the 2013-14 fiscal year:
(in Millions)
-------------------------------------------------------------
|Account | Amount|
|------------------------------+------------------------------|
|Support Services Account | 2012-13 amount + $20.4 + |
| | 2012-13 Growth|
|------------------------------+------------------------------|
|Law Enforcement Services | 2012-13 amount + $158.5 + |
|Account | 2012-13 Growth for Trial |
| |Court Security Subaccount and |
| | Juvenile Justice Subaccount |
| |only |
| | |
-------------------------------------------------------------
The following allocations are then made from the accounts
above to the following subaccounts for the 2013-14 fiscal
year:
(in Millions)
-------------------------------------------------------------
|Support Services Account | Amount|
|------------------------------+------------------------------|
|Behavioral Health Subaccount | 36.7391% or up to 2012-13 |
| | amount + 2012-13 Growth|
|------------------------------+------------------------------|
|Protective Services | 63.2609% or up to 2012-13 |
|Subaccount | amount + $20.4 + 2012-13 |
| |Growth |
-14-
| | |
-------------------------------------------------------------
-------------------------------------------------------------
|Law Enforcement Services | Amount|
|Account | |
|------------------------------+------------------------------|
|Trial Court Security | 30.8105% or up to 2012-13 |
|Subaccount | amount + 2012-13 Growth|
|------------------------------+------------------------------|
|Community Corrections | 61.9960% or up to $998.9|
|Subaccount | |
|------------------------------+------------------------------|
|District Attorney and Public | 1.0613% or up to $17.1|
|Defender Subaccount | |
|------------------------------+------------------------------|
|Juvenile Justice Subaccount | 6.1322% or up to 2012-13 |
| |amount + 2012-13 Growth |
| | |
-------------------------------------------------------------
From the Behavioral Health Subaccount an amount of $5.1
million is allocated to the Women and Children's
Residential Treatment Services Special Account.
The special adjustments made to the Protective Services
Subaccount adjust the base funding level for the
implementation of Chapter 559, Statutes of 2010 (AB 12,
Beall) that provides for supportive transitional services
to foster youth until the age of 21. The adjustments made
to the Community Corrections Subaccount and the District
Attorney and Public Defender Subaccount are based on
caseload adjustments being made according to the
implementation of Chapter 15, Statutes of 2011 (AB 109,
Budget).
19. Makes 2014-15 Funding Allocations. This bill makes
funding allocations to the accounts and subaccounts within
the Local Revenue Fund 2011 for the 2014-15 fiscal year.
The first allocations made from the Local Revenue Fund 2011
are as follows:
(in Millions)
-15-
-------------------------------------------------------------
|Account | Amount|
|------------------------------+------------------------------|
|Mental Health Account |$1,120.6 |
| | |
-------------------------------------------------------------
-------------------------------------------------------------
|Account | Amount|
|------------------------------+------------------------------|
|Enhancing Law Enforcement | $489.9 from Vehicle License |
|Activities |Fee (VLF) revenues and if VLF |
| | revenues are not enough to |
| | reach this level additional |
| |funds from sales tax revenues |
| | deposited in the Local |
| | Revenue Fund 2011 |
|------------------------------+------------------------------|
|Enhancing Law Enforcement | Any remaining VLF revenue |
|Growth Special Account |above $489.9 |
| | |
-------------------------------------------------------------
After the above allocations are made the remaining funds
deposited in the Local Revenue Fund 2011 are allocated as
follows for the 2014-15 fiscal year:
(in Millions)
-------------------------------------------------------------
|Account | Amount|
|------------------------------+------------------------------|
|Support Services Account | 2013-14 amount + $15.3 + |
| | 2013-14 Growth|
|------------------------------+------------------------------|
|Law Enforcement Services | 2013-14 amount - $66.1 + |
|Account | 2013-14 Growth for Trial |
| |Court Security Subaccount and |
| | Juvenile Justice Subaccount |
| |only |
| | |
-------------------------------------------------------------
The following allocations are then made from the accounts
-16-
above to the following subaccounts for the 2014-15 fiscal
year:
(in Millions)
-------------------------------------------------------------
|Support Services Account | Amount|
|------------------------------+------------------------------|
|Behavioral Health Subaccount | 36.5258% or up to 2013-14 |
| | amount + 2013-14 Growth|
|------------------------------+------------------------------|
|Protective Services | 63.4742% or up to 2013-14 |
|Subaccount | amount + $15.3 + 2013-14 |
| |Growth |
| | |
-------------------------------------------------------------
-------------------------------------------------------------
|Law Enforcement Services | Amount|
|Account | |
|------------------------------+------------------------------|
|Trial Court Security | 32.1286% or up to 2013-14 |
|Subaccount | amount + 2013-14 Growth|
|------------------------------+------------------------------|
|Community Corrections | 60.4543% or up to $934.1|
|Subaccount | |
|------------------------------+------------------------------|
|District Attorney and Public | 1.0226% or up to $15.8|
|Defender Subaccount | |
|------------------------------+------------------------------|
|Juvenile Justice Subaccount | 6.3945% or up to 2013-14 |
| |amount + 2013-14 Growth |
| | |
-------------------------------------------------------------
From the Behavioral Health Subaccount an amount of $5.1
million is allocated to the Women and Children's
Residential Treatment Services Special Account.
The special adjustments made to the Protective Services
Subaccount adjust the base funding level for the
implementation of Chapter 559, Statutes of 2010 (AB 12,
Beall) that provides for supportive transitional services
to foster youth until the age of 21. The adjustments made
-17-
to the Community Corrections Subaccount and the District
Attorney and Public Defender Subaccount are based on
caseload adjustments being made as Chapter 15, Statutes of
2011 (AB 109, Budget) is implemented.
20. Establishes Ongoing Annual Funding Allocation Starting
in 2015-16. This bill establishes funding allocations to
the accounts and subaccounts within the Local Revenue Fund
2011 for the 2015-16 fiscal year and each subsequent year
thereafter. The first allocations made from the Local
Revenue Fund 2011 are as follows:
(in Millions)
-------------------------------------------------------------
|Account | Amount|
|------------------------------+------------------------------|
|Mental Health Account |$1,120.6 |
| | |
-------------------------------------------------------------
-------------------------------------------------------------
|Account | Amount|
|------------------------------+------------------------------|
|Enhancing Law Enforcement | $489.9 from Vehicle License |
|Activities |Fee (VLF) revenues and if VLF |
| | revenues are not enough to |
| | reach this level additional |
| |funds from sales tax revenues |
| | deposited in the Local |
| | Revenue Fund 2011 |
|------------------------------+------------------------------|
|Enhancing Law Enforcement | Any remaining VLF revenue |
|Growth Special Account |above $489.9 |
| | |
-------------------------------------------------------------
After the above allocations are made the remaining funds
deposited in the Local Revenue Fund 2011 are allocated as
follows for the 2015-16 fiscal year and each year
subsequent:
(in Millions)
-18-
-------------------------------------------------------------
|Account | Amount|
|------------------------------+------------------------------|
|Support Services Account | Funding + Growth from |
| | immediately preceding fiscal |
| |year |
|------------------------------+------------------------------|
|Law Enforcement Services | Funding + Growth for all |
|Account | accounts from immediately |
| |preceding fiscal year |
| | |
-------------------------------------------------------------
The following allocations are then made from the accounts
above to the following subaccounts for the 2014-15 fiscal
year and each subsequent fiscal year:
(in Millions)
-------------------------------------------------------------
|Support Services Account | Amount|
|------------------------------+------------------------------|
|Behavioral Health Subaccount | Funding + Growth from |
| | immediately preceding fiscal |
| | year|
|------------------------------+------------------------------|
|Protective Services | Funding + Growth from |
|Subaccount | immediately preceding fiscal |
| |year |
| | |
-------------------------------------------------------------
-------------------------------------------------------------
|Law Enforcement Services | Amount|
|Account | |
|------------------------------+------------------------------|
|Trial Court Security | Funding + Growth from |
|Subaccount | immediately preceding fiscal |
| | year|
|------------------------------+------------------------------|
|Community Corrections | Funding + Growth from |
|Subaccount | immediately preceding fiscal |
| | year|
|------------------------------+------------------------------|
-19-
|District Attorney and Public | Funding + Growth from |
|Defender Subaccount | immediately preceding fiscal |
| | year|
|------------------------------+------------------------------|
|Juvenile Justice Subaccount | Funding + Growth from |
| | immediately preceding fiscal |
| |year |
| | |
-------------------------------------------------------------
From the Behavioral Health Subaccount an amount of $5.1
million is allocated to the Women and Children's
Residential Treatment Services Special Account.
If there are insufficient funds in the Support Services
Account or the Law Enforcement Services Account to make the
allocations to the subaccounts described above the State
Controller shall allocate the funding based on a
proportional share that the subaccounts received in the
immediately preceding fiscal year. The Department of
Finance will annually prepare a schedule that provides the
proportional allocations to direct the Controller's
allocation if funds are not sufficient to provide the
intended allocations described above.
21. Establishes Allocations for Growth Funding. Within
the Local Revenue Fund 2011 is the Sales and Use Tax Growth
Account. This account receives sales and use tax revenue
growth above the base allocations described in this bill.
This bill establishes an allocation methodology for these
funds to the subaccounts and special accounts within the
Sales and Use Tax Growth Account for fiscal years 2012-13,
2013-14, and 2014-15. This bill also specifies a permanent
growth allocation methodology starting in 2015-16 for most
of the special accounts.
For the 2012-13 fiscal year, the Growth is allocated to the
two subaccounts in the account as follows:
-------------------------------------------------------------
|Account | |
|------------------------------+------------------------------|
-20-
|Support Services Growth | 65 percent|
|Subaccount | |
|------------------------------+------------------------------|
|Law Enforcement Services |35 |
|Subaccount |percent |
| | |
-------------------------------------------------------------
Starting in 2013-14 there is a definition of the amount
necessary to provide full base funding and the growth funds
are allocated accordingly to provide full base funding in
each subaccount. If there is not enough funding to provide
full base funding to the subaccounts, the growth is
distributed in the same proportion as the base allocations
were made for the 2013-14 fiscal year. If there are
additional growth monies after the amount necessary to
provide full base funding, these monies will be allocated
65 percent to the Support Services Growth Subaccount and 35
percent to the Law Enforcement Services Subaccount. The
amounts necessary to provide full base funding for each of
the accounts is defined as follows for the 2013-14 fiscal
year:
-------------------------------------------------------------
|Support Services Account | Amount|
|------------------------------+------------------------------|
|Behavioral Health Subaccount | Maximum amount allocated in |
| | 2012-13|
|------------------------------+------------------------------|
|Protective Services | Maximum amount allocated in |
|Subaccount |2012-13 |
| | |
-------------------------------------------------------------
-------------------------------------------------------------
|Law Enforcement Services | Amount|
|Account | |
|------------------------------+------------------------------|
|Trial Court Security | Greater of 2011-12 amount or |
|Subaccount | 2012-13 amount + 2012-13 |
| | growth|
|------------------------------+------------------------------|
|Community Corrections | Maximum amount allocated in |
|Subaccount | 2012-13|
-21-
|------------------------------+------------------------------|
|District Attorney and Public | Maximum amount allocated in |
|Defender Subaccount | 2012-13|
|------------------------------+------------------------------|
|Juvenile Justice Subaccount | Greater of 2011-12 amount or |
| | 2012-13 amount + 2012-13 |
| |growth |
| | |
-------------------------------------------------------------
Starting in 2014-15 the definition of the amount necessary
to provide full base funding for each subaccount is
provided in the table below. If there is not enough
funding to provide full base funding, the growth is
distributed in the same proportion as the base allocations
were made for the 2014-15 fiscal year. If full base
funding is available for each subaccount then additional
growth monies will be allocated 65 percent to the Support
Services Growth Subaccount and 35 percent to the Law
Enforcement Services Subaccount. The amounts necessary to
provide full base funding for each of the accounts is as
follows for the 2014-15 fiscal year:
-------------------------------------------------------------
|Support Services Account | Amount|
|------------------------------+------------------------------|
|Behavioral Health Subaccount |Greater of the maximum amount |
| | that could be allocated in |
| | 2012-13 or the largest |
| | amounts received (base + |
| | growth) in any prior year |
| | beginning with 2012-13|
|------------------------------+------------------------------|
|Protective Services |Greater of the maximum amount |
|Subaccount |that was allocated in 2012-13 |
| | or the maximum amount that |
| |was allocated in 2013-14 |
| | |
-------------------------------------------------------------
-------------------------------------------------------------
|Law Enforcement Services |Amount |
|Account | |
|------------------------------+------------------------------|
-22-
|Trial Court Security | Greater of 2011-12 amount or |
|Subaccount | the largest amounts received |
| | (base + growth) in any prior |
| |year beginning with 2012-13 |
|------------------------------+------------------------------|
|Community Corrections | Greatest amount allocated in |
|Subaccount | a single year beginning with |
| | 2012-13|
|------------------------------+------------------------------|
|District Attorney and Public | Greatest amount allocated in |
|Defender Subaccount | a single year beginning with |
| | 2012-13|
|------------------------------+------------------------------|
|Juvenile Justice Subaccount | Greater of 2011-12 amount or |
| | the largest amounts received |
| | (base + growth) in any prior |
| |year beginning with 2012-13 |
| | |
-------------------------------------------------------------
Starting in 2015-16 and for each subsequent year, after the
definition of the amount necessary to provide full base
funding for each subaccount is provided in the table below.
If there is not enough funding to provide full base
funding, the growth is distributed in the same proportion
as the base allocations were made for the 2015-16 fiscal
year and for each subsequent year. If there are additional
growth monies after the amount necessary to provide full
base funding, these monies will be allocated 65 percent to
the Support Services Growth Subaccount and 35 percent to
the Law Enforcement Services Subaccount. The amounts
necessary to provide full base funding for each of the
accounts is as follows:
-------------------------------------------------------------
|Support Services Account | Amount|
|------------------------------+------------------------------|
|Behavioral Health Subaccount |Greater of the maximum amount |
| |that was allocated in 2012-13 |
| | or the largest amounts |
| | received (base + growth) in |
| |any prior year beginning with |
| | 2012-13|
|------------------------------+------------------------------|
-23-
|Protective Services |Greater of the maximum amount |
|Subaccount | that was allocated in |
| | 2012-13, the maximum |
| | allocated in 2013-14, or the |
| | largest amounts received |
| | (base and growth) in any |
| | prior year beginning with |
| |2012-13 |
| | |
-------------------------------------------------------------
-------------------------------------------------------------
|Law Enforcement Services | Amount|
|Account | |
|------------------------------+------------------------------|
|Trial Court Security | Greater of 2011-12 amount or |
|Subaccount | the largest amounts received |
| | (base + growth) in any prior |
| | year beginning with 2012-13|
|------------------------------+------------------------------|
|Community Corrections | Greater amount (base + |
|Subaccount | growth) in a single year |
| | beginning with 2014-15 or |
| | highest amount authorized to |
| | receive in any single fiscal |
| | year beginning with 2012-13|
|------------------------------+------------------------------|
|District Attorney and Public | Greater amount (base + |
|Defender Subaccount | growth) in a single year |
| | beginning with 2014-15 or |
| | highest amount authorized to |
| | receive in any single fiscal |
| |year beginning with 2012-13 |
|------------------------------+------------------------------|
|Juvenile Justice Subaccount | Greater of 2011-12 amount or |
| | the largest amounts received |
| | (base + growth) in any prior |
| |year beginning with 2012-13 |
| | |
-------------------------------------------------------------
This bill also specifies growth allocation to the special
accounts within the Support Services Growth Subaccount and
the Law Enforcement Services Growth Subaccount in the Sales
-24-
and Use Tax Growth Account for the 2012-13 fiscal year.
Additional growth funding is dedicated to child welfare
services until the Director of Finance certifies that $200
million has been allocated to the Protective Services
Growth Special Account. The allocations are as follows:
-------------------------------------------------------------
|Support Services Growth | |
|Subaccount | |
|------------------------------+------------------------------|
|Mental Health Subaccount | 5 percent|
|------------------------------+------------------------------|
|Protective Services Growth | 40 percent|
|Special Account for Child | |
|Welfare Services | |
|------------------------------+------------------------------|
|Protective Services Growth | 42.03 percent|
|Special Account | |
|------------------------------+------------------------------|
|Behavioral Health Services |12.97 |
|Growth Special Account |percent |
| | |
-------------------------------------------------------------
-------------------------------------------------------------
|Law Enforcement Services | |
|Growth Subaccount | |
|------------------------------+------------------------------|
|Trial Court Security Growth | 10 percent|
|Special Account | |
|------------------------------+------------------------------|
|Community Corrections Growth | 75 percent|
|Special Account | |
|------------------------------+------------------------------|
|District Attorney and Public | 5 percent|
|Defender Growth Special | |
|Account | |
|------------------------------+------------------------------|
|Juvenile Justice Growth |10 |
|Special Account |percent |
| | |
-------------------------------------------------------------
Growth will not be added to the base to create a "rolling
-25-
base" for the Community Corrections Subaccount and the
District Attorney and Public Defender Subaccount until
2015-16.
This bill also specifies the growth allocation to the
special accounts within the Support Services Growth
Subaccount in the Sales and Use Tax Growth Account for the
2013-14 fiscal year as follows:
-------------------------------------------------------------
|Support Services Growth | |
|Subaccount | |
|------------------------------+------------------------------|
|Mental Health Subaccount | 5 percent|
|------------------------------+------------------------------|
|Protective Services Growth | 40 percent|
|Special Account for Child | |
|Welfare Services | |
|------------------------------+------------------------------|
|Protective Services Growth | 21.81 percent|
|Special Account | |
|------------------------------+------------------------------|
|Behavioral Health Services |33.19 |
|Growth Special Account |percent |
| | |
-------------------------------------------------------------
This bill states that once the Director of Finance has
certified that $200 million in funding has been provided to
county child welfare services programs and the Protective
Services Growth Special Account, the allocation to the
special accounts and subaccounts of the Support Services
Growth Subaccount are as follows:
-------------------------------------------------------------
|Support Services Growth | |
|Subaccount | |
|------------------------------+------------------------------|
|Mental Health Subaccount |5 percent |
|------------------------------+------------------------------|
|Protective Services Growth |45 percent |
|Special Account | |
|------------------------------+------------------------------|
|Behavioral Health Services |50 percent |
-26-
|Growth Special Account | |
-------------------------------------------------------------
22.Creates System of State Intervention for Medi-Cal
Programs in 2011 Realignment. The bill authorizes a
process and procedure for the Department of Health Care
Services to intervene if the department determines that a
county is failing to perform functions and could jeopardize
the receipt of federal funds for these programs. This bill
authorizes, after notification, that the State Controller
deposit the portion of the county's allocation attributable
to the effected program into the County Intervention
Support Services Subaccount. The amounts deposited in this
Subaccount will then be used by the Department to fund the
program or programs in the county where the county was
failing to perform necessary functions to maintain federal
funds.
23. Protection for Counties if Funding Supporting
Realignment is Reduced or Repealed. This bill requires the
state to annually provide moneys to the Local Revenue Fund
2011 in an amount equal to or greater than the aggregate
amount that otherwise would have been provided by the taxes
supporting 2011 Realignment if the taxes are reduced or
eliminated. If the state fails to annually appropriate
that amount, the State Controller shall transfer that
amount from the General Fund. A process for this backfill
of funding satisfies a requirement of Article XIII of the
Constitution to be added per The Schools and Public Safety
Protection Act of 2012 on the November 6, 2012 statewide
general election.
24. Provides Juvenile Justice Subaccount Allocations.
This bill makes technical amendments to the allocation of
funding within the Juvenile Justice Subaccounts for the
2011-12 fiscal year. This bill also proposes to allocate
these funds to the special accounts in 2012-13 and every
subsequent fiscal year as follows:
-------------------------------------------------------------
|Juvenile Justice Subaccount | |
|------------------------------+------------------------------|
|Youthful Offender Block Grant | 96.015 percent|
|Special Account | |
-27-
|------------------------------+------------------------------|
|Juvenile Reentry Grant |3.085 |
|Special Account |percent |
| | |
-------------------------------------------------------------
25. Directs Allocation of Funds from State to County and
Among Counties. This bill specifies that the revenues
collected between August 16 and August 15 of the following
year constitutes a fiscal year for the purposes of 2011
Realignment. This bill specifies allocation of the funds
to the counties as follows:
Funds in the Mental Health Account shall be
allocated on the 20th of each month to the local
Mental Health Subaccount that was created in 1991
Realignment.
Funds in the Trial Court Security Subaccount shall
be allocated by the State Controller on the 27th of
each month. Money in the Trial Court Security
Subaccount cannot be used to pay for general county
administrative expenses. This bill also provides for
an allocation of the Trial Court Security Subaccount
among the counties. This allocation is based on the
2011-12 allocation adjusted for expected increased
workload associated with the implementation of Chapter
15, Statutes of 2011 (AB 109, Budget).
Allocates funding from the Community Corrections
Subaccount to the counties for the 2012-13 and 2013-14
fiscal years only. This allocation was developed by
the California State Association of Counties and
allowed counties to pick the most favorable formula
from three formulas that included: (1) caseload; (2)
population between 18 and 64; and (3) the 2011-12
formula, which was based on a weighted formula
composed of caseload, population, and the SB 678
probation incentive program success rate. A new
methodology and schedule for allocating funds shall be
developed by the Department of Finance in consultation
with the California State Association of Counties
commencing with the 2014-15 fiscal year.
Allocates funding from the from the District
Attorney and Public Defender Subaccount to the
counties for the 2012-13 and 2013-14 fiscal years
only. A new methodology and schedule for allocating
-28-
funds shall be developed by the Department of Finance
in consultation with the California State Association
of Counties commencing with the 2014-15 fiscal year.
Funds deposited in the Enhancing Law Enforcement
Activities Subaccount are allocated among counties
according to current law.
On August 25 of each year, funds allocated to the
Enhancing Law Enforcement Activities Growth Special
Account shall be allocated as follows: (1) 38.40
percent to the Juvenile Probation and Camps Funding
program; (2) 27.08 percent to the Community Oriented
Policing Services Program; (3) 27.08 percent to the
Juvenile Justice Crime Prevention Act program; and (4)
7.44 percent to the Juvenile Camps and Ranches
program.
Directs the monthly allocation of funds from the
Protective Services Subaccount to the County
Protective Services Subaccount. For the 2012-13
fiscal year the distribution to each county shall be
the same as that used to distribute funds in the
2011-12 fiscal year adjusted to reflect updated
expenditures on Foster Care Assistance and Adoptions
Assistance Program payments and for the distribution
of the estimated funding for implementation of Chapter
559, Statutes of 2010 (AB 12). For the 2013-14 fiscal
year and each year subsequent the Department of
Finance may develop a schedule in consultation with
the California State Association of the Counties per
criteria. This bill authorizes up to $32,721,000
annually to be transferred to a Contract Special
Account of a designated county.
26. Directs Deposit of Growth Funds in County Accounts.
This bill directs the growth funds in state growth special
accounts to the appropriate county accounts as follows:
-------------------------------------------------------------
|Growth Account |Local Account |
|------------------------------+------------------------------|
|Protective Services Growth |Protective Services |
|Special Account |Subaccount |
|------------------------------+------------------------------|
|Behavioral Health Services |Behavioral Health Subaccount |
|Growth Special Account | |
-29-
|------------------------------+------------------------------|
|Trial Court Security Growth |Trial Court Security |
|Special Account |Subaccount |
|------------------------------+------------------------------|
|Community Corrections Growth |Community Corrections |
|Special Account |Subaccount |
|------------------------------+------------------------------|
|District Attorney and Public |District Attorney and Public |
|Defender Growth Special |Defender Subaccount |
|Account | |
|------------------------------+------------------------------|
|Juvenile Justice Growth |Juvenile Justice Subaccount |
|Special Account | |
-------------------------------------------------------------
The bill further directs that the growth funds shall be
allocated to the local subaccounts in the percentages
provided. However, if the allocation methodology is not
specified in this bill, the growth funds shall be allocated
in accordance with schedules developed by the Department of
Finance in consultation with the California State
Association of Counties and in accordance with any criteria
contained in this bill.
27. Creates Local Innovation Subaccount. Starting in
2015-16, each county shall transfer to the Local Innovation
Subaccount 10 percent of the moneys received during a
fiscal year from each of the following state accounts:
Trial Court Security Growth Special Account
Community Corrections Growth Special Account
District Attorney and Public Defender Growth
Special Account
Juvenile Justice Growth Special Account
28. Incentive Funding from Protective Services Growth
Special Account. Starting in 2012-13, 10 percent of the
growth funding from the Protective Services Growth Special
Account shall only be allocated to counties that have
expended in that fiscal year an amount at least equivalent
to that which the county would have had to spend in the
absence of 2011 Realignment Legislation to access
augmentation funding pursuant to Section 10609.9 of the
Welfare and Institutions Code. This determination will be
made as of August 1 of each year with data from the prior
-30-
fiscal year. This bill exempts small counties from this
provision. This bill also allocates this growth funding
among the counties per a schedule.
29. Community Corrections Growth Allocation. This bill
requires the Department of Finance to develop a schedule
for allocating the growth funding in the Community
Corrections Growth Special Account. The schedule shall
reflect priorities that promote the effective
implementation of the 2011 Public Safety Realignment
including the following: (1) minimum allocations for each
county; (2) establishment of appropriate small county
minimum allocations; (3) adjustments for average daily
population variations; (4) other factors; and (5)
implementation of 2011 Public Safety Realignment consistent
with cost effective evidence based practices. This bill
requires that the Department of Finance consider a county's
commitment to continuing, expanding, or initiating
community corrections practices, programs and strategies
that manage felony offender populations most cost
effectively by using evidence-based practices when
developing this formula to allocate the growth over the
next two years.
30. Re-Enacts Definitions Related to Child Welfare
Services. This bill re-enacts definitions related to child
welfare services that were realigned in the 2011
Realignment. This provision of law is related to 2011
Realignment.
31. Women and Children's Residential Treatment Services
Program. This bill authorizes six counties to establish
the Women and Children's Residential Treatment Services
Special Account within their Behavioral Health Subaccount.
These six counties currently have established programs and
this bill would dedicate money to these programs in 2012-13
and ongoing. Funding is allocated to Alameda County, Marin
County, Los Angeles County, San Diego County, San Francisco
City and County, and San Joaquin County for this purpose.
32. Contract Back with State Authorization. This bill
authorizes counties to contract with the State Department
of Health Care Services or the Department of Social
Services to provide or administer the Drug Medi-Cal
-31-
Treatment Program and the Agency adoptions program.
Contracts would be exempt from certain aspects of the
Public Contract Code and contracts shall include
reimbursement to the state for the cost of providing the
services or activities.
33. Creates Contract Special Account. This bill
authorizes that up to $32,721,000 may be allocated annually
to the Contract Special Account of a designated county.
This account would be used to contract directly with the
Department of Social Services for the following programs,
services, and functions:
The Private Agency Adoptions Reimbursement Program.
The Chafee Post Secondary Education and Training
Voucher Program.
Health Care Oversight for Children in Foster Care.
Training, technical assistance, and other contracts
of statewide benefits.
Other contracts that counties, in consultation with
the Department of Social Services determine are in the
best interests of counties and the state.
Funds in this account shall not be subject to the
reallocation rules. If the funding is not fully expended
in a given fiscal year it shall be retained in the fund for
expenditure in the subsequent fiscal year. After
consultation with the Department of Social Services and the
California State Association of Counties, funding may be
redistributed back to all counties in the proportion that
it was provided to the Contract Special Account if it is
determined it is not needed to support the activities
described above.
34. Allocations of the Youthful Offender Block Grant and
Juvenile Justice Reentry Grant. This bill directs the
allocation of the Youthful Offender Block Grant Special
Account and the Juvenile Justice Reentry Special Account to
each county according to current law. Under current law
the Director of Finance determines allocations that are
distributed monthly to the counties.
35. Reporting. This bill requires transmittal of all
schedules developed by the Department of Finance for the
allocation of funding that are transmitted to the
-32-
Controller also be transmitted to the fiscal committees of
the Legislature.
36. 1991 Realignment Funding Swap. The 2011 Realignment
interacts with 1991 Realignment by providing $1,120,551,000
from 2011 Realignment to fund mental health services that
were previously funded by 1991 Realignment. The 1991
Realignment funding that is no longer supporting these
mental health funds is transferred at the county to the
county CalWORKS Maintenance of Effort Subaccount in an
amount up to $1,120,551,000. Growth associated with 1991
realignment funding should continue to accrue to the 1991
Mental Health Subaccount per current law and practice.
Fiscal Effect: Legislation that enacted 2011 Realignment
shifted approximately $5.6 billion in state revenues and
funding responsibilities to local governments. This bill
furthers the implementation of the 2011 Realignment. To
the extent that the revenues realigned to the local
governments are growing beyond the natural growth of
caseload and costs related to the entitlement programs
realigned the counties may be accruing additional funding
beyond what would have reasonably been provided for by the
state in the annual budget act. However, conversely if
revenues are not performing at the level expected when 2011
Realignment was enacted the state may be saving additional
costs that would have otherwise been provided in the budget
act because the county is being required to manage unfunded
program growth in entitlements from within the designated
allocations.
This bill may have minor costs for the State Controller and
the Department of Finance related to creating and
publishing various schedules for allocation of funding as
directed by this bill.
The 2011 Realignment clarifies that reasonable costs borne
by local governments in implementing 2011 Realignment are
required to be funded from 2011 Realignment funds.
Therefore, this bill does not create new mandates on local
governments.
Support: Unknown
-33-
Opposed: Unknown
Comments: This bill provides an ongoing statutory
framework and financing structure for 2011 Realignment. By
2014-15, the 2011 Realignment is expect to grow to over
$6.8 billion, which will provide counties with about $1
billion in additional resources to cover necessary costs
related to 2011 Realignment.
According to the Administration, the financing structure
and the allocation methodology for base allocations and
growth allocations were developed in consultation with the
California State Association of Counties.
-34-