BILL ANALYSIS �
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UNFINISHED BUSINESS
Bill No: SB 6X1
Author: Senate Budget and Fiscal Review Committee
Amended: 9/2/11
Vote: 21
PRIOR VOTES NOT RELEVANT
ASSEMBLY FLOOR : 48-27, 9/8/11 - See last page for vote
SUBJECT : Budget Act of 2011
SOURCE : State Budget: Expenditure Reductions trailer
bill
DIGEST : This bill makes necessary changes to implement
expenditure reductions in 2011-12 if revenues fall below
forecast levels, as specified in Section 3.94 of the 2011
Budget Bill.
Assembly Amendments delete the prior version of the bill
which expressed legislative intent, and insert the above
provisions.
ANALYSIS : The 2011 Budget Bill anticipates General Fund
revenues of $88.5 billion. Per Section 3.94 of the 2011
Budget Bill, the Department of Finance (DOF) is required to
provide notification to the Joint Legislative Budget
Committee by December 15, 2011, with an updated revenue
forecast for 2011-12. Section 3.94 further states that if
revenues are forecast to be lower by $1 billion to $2
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billion, expenditure cuts of $600 million are triggered on.
If revenues are forecast to be lower by more than $2
billion, then additional expenditure cuts of $1.9 billion
are triggered on. Related legislation in the enacted 2011
budget package included the statutory provisions to
implement these reductions.
If Section 3.94 of the 2011 Budget Bill is operative
because revenues are below forecast, this bill makes
further changes to implement the trigger reductions,
including the following:
1. Community College Fee Increase Trigger . Current law
states that the community college fee level is $36 per
unit, effective with the "fall" 2011 term. Under
current law, if revenues fall below forecast levels and
the budget trigger is operative, the community college
fee increase "trigger" of $10 per unit ( to a total of
$46 per unit) is effective
January 1, 2012, and will commence in the "winter" term of
the 2011-12 academic year.
This bill makes changes to these provisions of law to
clarify that if the community college fee increase
"trigger" of $10 per unit (to a total of $46 per unit)
is operative pursuant to Section 3.94 of the 2011 Budget
Bill, it is effective May 1, 2012, and would commence in
the "summer" term of the 2012 calendar year.
Adopts a statement of legislative intent that trigger
reductions made by community college districts in
2011-12 pursuant to Section 3.94 reflect the one-time
nature of the statewide $30 million reduction imposed as
a result of delaying the $10 per unit student fee
increase from the winter term to the summer term.
Further, and until the increased fees are collected, it
is the intent of the Legislature that districts should,
to the extent possible, make every effort to implement
reductions in a manner that will minimize the impact on
course offerings and programs needed by students to
achieve their basic skills, workforce training, or
transfer goals.
2. 2011 Budget Act Trigger Reductions . Requires the
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Director of DOF to make every effort to notify the
Legislature by December 9, 2011, of the specific trigger
reductions that are proposed and, at least 10 days prior
to implementing the trigger reductions, consult with the
Legislature about the reductions as well as alternative
budget solutions to those set forth in current law, as
specified.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
Unknown with latest amendments.
SUPPORT : (Verified 9/7/11)
The Arc and United Cerebral Palsy in California
ASSEMBLY FLOOR : 48-27, 9/8/11
AYES: Alejo, Allen, Ammiano, Atkins, Beall, Block,
Blumenfield, Bonilla, Bradford, Brownley, Buchanan,
Butler, Charles Calderon, Campos, Carter, Cedillo,
Chesbro, Davis, Dickinson, Eng, Feuer, Fong, Fuentes,
Furutani, Gatto, Gordon, Hall, Hayashi, Roger Hern�ndez,
Hill, Huber, Hueso, Huffman, Lara, Bonnie Lowenthal, Ma,
Mendoza, Mitchell, Monning, Pan, V. Manuel P�rez,
Skinner, Swanson, Torres, Wieckowski, Williams, Yamada,
John A. P�rez
NOES: Achadjian, Bill Berryhill, Conway, Cook, Donnelly,
Fletcher, Beth Gaines, Garrick, Grove, Hagman, Halderman,
Harkey, Jeffries, Jones, Knight, Logue, Mansoor, Miller,
Morrell, Nestande, Nielsen, Norby, Olsen, Silva, Smyth,
Valadao, Wagner
NO VOTE RECORDED: Galgiani, Gorell, Perea, Portantino,
Solorio
DLW:mw 9/9/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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