BILL ANALYSIS                                                                                                                                                                                                    Ó






                  SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW
                                Mark Leno, Chair
                                        
          Bill No:       AB 1485
          Author:        Committee on Budget
          As Amended:    June 13, 2012
          Consultant:    Peggy Collins
          Fiscal:        Yes
          Hearing Date:  June 14, 2012
          
          Subject:  Budget Act of 2011: Supplemental Appropriations

          Summary:  This bill appropriates $1.1 billion General Fund 
          to the Department of Corrections and Rehabilitation ($295.4 
          million), Department of Mental Health ($41.8 million), 
          Department of Health Care Services ($759.6 million), and 
          Mariposa and Lassen counties ($125,436).

          Background:  The Budget Act of 2011 appropriated specific 
          amounts from the General Fund for the support of state 
          government.  This bill contains funding necessary to 
          address deficiencies in the 2011 Budget Act.  The proposed 
          funding in this measure has been approved by the Department 
          of Finance (DOF) and reviewed by the Joint Legislative 
          Budget Committee (JLBC).

          Proposed Law:  This bill includes the following provisions:

             1.   Appropriates $295.4 million General Fund to augment 
               the 2011 Budget Act for the Department of Corrections 
               and Rehabilitation (CDCR) to address a shortfall in 
               the Receiver's Medical Services Program.  Included in 
               this amount is:
                  a.        $163.2 million to address the Receiver's 
                    inability to realize the savings associated with 
                    a 10 percent unallocated budget reduction 
                    included in the 2011 Budget Act;
                  b.        $86 million to address a structural 
                    deficiency in the pharmaceutical budget; and
                  c.        $46.2 million to address increased 
                    custody costs related to the transportation of 
                    prisoners to and from medical appointments and 
                    supervision while at medical appointments.

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             2.   Appropriates $41.8 million General Fund to augment 
               the 2011 Budget Act for the Department of Mental 
               Health (DMH) associated with increased operating 
               costs.  Included in the amount is:
                  a.        $147.5 million associated with 
                    patient-related activities (such as enhanced 
                    observation of patients and admission 
                    assessments) and costs associated with the 
                    redirection of staff toward Civil Rights for 
                    Institutionalized Persons Act (CRIPA)-related 
                    activities.  DMH and the United States Department 
                    of Justice entered into a Consent Judgment in 
                    2006 requiring state hospitals to implement 
                    numerous corrective actions for CRIPA violations;
                  b.        $13.9 million to address costs associated 
                    with increased patient caseload related to the 
                    Coleman lawsuit settlement which required 
                    improved mental health services to CDCR 
                    prisoners; and  
                  c.        $119.6 million in additional savings 
                    associated with a decrease in the projected state 
                    hospital caseload, implementation of the state 
                    hospitals savings plan, and increased 
                    reimbursements.

             3.   Appropriates $759.6 million General Fund to augment 
               the 2011 Budget Act for the Department of Health Care 
               Services (DHCS) for costs primarily associated with 
               unrealized savings anticipated by the 2011 Budget Act. 
                These include:
                  a.        $346.8 million to address costs 
                    associated with a court injunction barring the 
                    implementation of provider rate reductions;
                  b.        $511.1 million to address costs 
                    associated with the failure to obtain federal 
                    approval to implement copayments in the Medi-Cal 
                    program; and
                  c.        $98.3 million in various adjustments 
                    within the Medi-Cal local assistance budget that 
                    result in a net savings.

             4.   Appropriates $125,436 General Fund to counties 
               requesting reimbursement of qualified homicide trial 
               costs.  These claims have been approved by the State 
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               Controller.  Included in this amount is:
                  a.        $6,508 to Mariposa County for the case of 
                    "People v. Cary Stayner;" and
                  b.        $118,928 to Lassen County for the cases 
                    of "People v. Joanna Lynne McElrath" and "People 
                    v. Robin Glenn James."

          Fiscal Effect:  Appropriates $1.1 billion General Fund in 
          the current year.  This appropriation is assumed in the 
          proposed 2012 Budget Act.  Any unencumbered funds will 
          revert to the General Fund.

          Support:   None on file

          Opposed:  None on file




























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