BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                    SB 15|
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                              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
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                      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 

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          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

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          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

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