BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 15| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ UNFINISHED BUSINESS Bill No: SB 15 Author: DeSaulnier (D) Amended: 9/2/11 Vote: 21 SENATE GOVERNANCE & FINANCE COMMITTEE : 8-0, 3/30/11 AYES: Wolk, Huff, DeSaulnier, Hancock, Hernandez, Kehoe, La Malfa, Liu NO VOTE RECORDED: Fuller SENATE BUDGET & FISCAL REVIEW COMMITTEE : 14-0, 5/12/11 AYES: Leno, Huff, Anderson, DeSaulnier, Emmerson, Evans, Fuller, Hancock, La Malfa, Liu, Lowenthal, Rubio, Wolk, Wright NO VOTE RECORDED: Alquist, Simitian SENATE FLOOR : 39-0, 5/31/11 AYES: Alquist, Anderson, Blakeslee, Calderon, Cannella, Corbett, Correa, De León, DeSaulnier, Dutton, Emmerson, Evans, Fuller, Gaines, Hancock, Harman, Hernandez, Huff, Kehoe, La Malfa, Leno, Lieu, Liu, Lowenthal, Negrete McLeod, Padilla, Pavley, Price, Rubio, Runner, Simitian, Steinberg, Strickland, Vargas, Walters, Wolk, Wright, Wyland, Yee NO VOTE RECORDED: Berryhill ASSEMBLY FLOOR : 76-2, 09/07/11 - See last page for vote SUBJECT : State budget SOURCE : State Controller John Chiang CONTINUED SB 15 Page 2 California Forward DIGEST : This bill makes various changes to the information that is required to be submitted by the Governor to the Legislature as part of the budget process. Assembly Amendments narrow the scope of the bill by deleting some of the additional long-term reporting requirements. ANALYSIS : Existing law, Article IV, Section 12 of California's Constitution requires the Governor to submit a balanced budget to the Legislature by January 10th of each year. Government Code Section 13308 requires the submission of the budget trailer bill language by February 1st of each year. This bill: 1. Requires the Governor's budget documents to provide estimates for anticipated revenues and expenditures for the three fiscal years succeeding the budget year as part of documents that accompany the January 10th proposal, the May Revision, and the final budget summary upon enactment of the Budget Bill. If available, this estimate should be compared to the projection from the four previous fiscal years. 2. Stipulates that the Governor submit legislative language needed to implement budget provisions and the five-year infrastructure plan when the budget is submitted on or before January 10th. Comments This bill seeks to provide more information to the Legislature so that they will better understand the impacts of decisions they make on the fiscal health of the state in subsequent budget years. One-time solutions adopted by the Legislature can provide for temporary budgetary relief and have a role, but in recent years ongoing budgetary reductions have also been needed to bring expenditures in line with long-term revenue projections. This bill seeks CONTINUED SB 15 Page 3 to introduce more information into the process to inform decision makers of the impacts and tradeoffs of budgetary decisions. The Department of Finance (DOF) currently prepares a five year projection commonly referred to as the multi-year projection. These projections are not included in budget submissions on the DOF's Web site, but are officially transmitted to the Legislature on the day the budget is released. It is unclear whether incorporating this information more officially in the DOF's submissions would increase the likelihood that the Legislature uses this information to inform a final budget package. Ultimately, there are many factors entering into final decisions on the budget package and this information is just one of those inputs. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No SUPPORT : (Verified 5/19/11 - unable to reverify at time of writing) State Controller John Chiang (co-source) California Forward (co-source) AARP American Association of University Women American Federation of State, County and Municipal Employees Bay Area Council Business Council of San Joaquin County California Alliance of Child and Family Services California Church IMPACT California Partnership for the San Joaquin Valley California Senior Advocates League California State Student Association Contra Costa Council Fresno Business Council Greenlining Institute Half Moon Bay Coastside Chamber of Commerce Huntington Beach Chamber of Commerce Kern County Taxpayers Association Los Angeles Area Chamber of Commerce Marin Builders' Association CONTINUED SB 15 Page 4 San Francisco Chamber of Commerce San Gabriel Valley Economic Partnership San Mateo County Economic Development Association Santa Clara and San Benito Counties Building and Construction Trades Council Santa Cruz County Medical Society Saving California Communities Silicon Valley Leadership Group State Building and Construction Trades Council of California Valley Industry and Commerce Association WELL Network ASSEMBLY FLOOR : 76-2, 09/07/11 AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, Brownley, Buchanan, Butler, Charles Calderon, Campos, Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson, Eng, Feuer, Fletcher, Fong, Fuentes, Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Grove, Hagman, Halderman, Hall, Harkey, Hayashi, Roger Hernández, Hill, Huber, Hueso, Huffman, Jeffries, Knight, Lara, Logue, Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell, Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan, Perea, V. Manuel Pérez, Portantino, Silva, Skinner, Smyth, Solorio, Swanson, Torres, Valadao, Wagner, Wieckowski, Williams, Yamada, John A. Pérez NOES: Donnelly, Jones NO VOTE RECORDED: Furutani, Gorell AGB:kc 9/8/11 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED