BILL ANALYSIS Ó SB 83 Page 1 SENATE THIRD READING SB 83 (Budget and Fiscal Review Committee) As Amended March 26, 2012 Majority vote. Budget Bill Appropriation Takes Effect Immediately SENATE VOTE :Vote not relevant BUDGET 14-6 ----------------------------------------------------------------- |Ayes:|Blumenfield, Nielsen, | | | | |Alejo, Allen, Bonilla, | | | | |Buchanan, Chesbro, | | | | |Dickinson, Feuer, Gordon, | | | | |Mitchell, Monning, | | | | |Nestande, Swanson | | | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Bill Berryhill, Grove, | | | | |Jones, Logue, Mansoor, | | | | |Wagner | | | | | | | | ----------------------------------------------------------------- SUMMARY : Appropriates, as a supplemental appropriations bill (deficiency bill), $339,000 from the General Fund (GF) to the Citizens Redistricting Commission (Commission) and authorizes additional budget authorizations for the Commission under conditions specified by the bill relating to potential litigation and personnel costs. Specifically, this bill : 1)Appropriates $339,000 GF to the Citizens Redistricting Commission for operational costs in Fiscal Year (FY) 2011-12. The operational costs included in this bill are already reflected in the Administration's revised current-year expenditure projections; therefore, those costs do not add to the current budget deficit. 2)Authorizes the Director of Finance, subject to review by the Joint Legislative Budget Committee (JLBC), to increase the Commission's budget by up to $659,000 if the Commission demonstrates that additional funding is necessary during the 2011-12 FY for litigation to defend any action regarding a certified final map. SB 83 Page 2 3)Authorizes the Director of Finance, subject to review by the JLBC, to increase the Commission's budget by up to $163,000 if the Commission demonstrates that additional funding is necessary during the 2011-12 FY for costs related to unemployment insurance, and vacation leave balance payments for staff, who terminate employment with the state. FISCAL EFFECT : This bill has a GF cost of $339,000. This bill also authorizes the Director of Finance, subject to JLBC review, to appropriate up to $822,000 more from the GF, if necessary. COMMENTS : Voters in November 2008 approved Proposition 11, which established a Citizens Redistricting Commission to draw new political district lines every 10 years for California legislative, congressional and Board of Equalization districts. The initiative requires the Legislature to make necessary appropriations to fund the Commission's operations, including litigation support, during the three-year redistricting process that began in 2009-10. The Budget Act of 2011 allocated $400,000 GF for Commission operations, and up to $1.5 million, GF for potential litigation costs. The Commission received $1.07 million in November 2011 for litigation-related expenses. On February 7, 2012, the Department of Finance notified the JLBC of a request for additional funding from the Citizens Redistricting Commission. Four legal challenges have been brought against the Commission-designed maps, with all four cases decided in the Commission's favor. After extensive discussions, the JLBC on March 15, 2012, indicated support for $339,000 in additional operational costs. In addition, the Committee indicated support for provisional language to allow the Commission more funding if additional costs arise during the 2011-12 fiscal year. Included in this is up to $659,000 to defend any appeals related to the four lawsuits resolved in the Commission's favor, and up to $163,000 to cover possible costs related to unemployment insurance and vacation leave balances as the Commission concludes its duties and staff terminate employment. Combined with previous appropriations and budget augmentations, this appropriation would bring the Commission's total authorized funding for the current redistricting process to $6,184,000. SB 83 Page 3 Analysis Prepared by : Mark Martin / BUDGET / (916) 319-2099 FN: 0003190