BILL ANALYSIS Ó SB 1020 Page 1 SENATE THIRD READING SB 1020 (Budget and Fiscal Review Committee) As Amended June 25, 2012 Majority vote. Budget Bill Appropriation Takes Effect Immediately SENATE VOTE :Vote not relevant Summary : Provides an overall financing structure for the 2011 Public Safety Realignment. The funding structure includes the creation of accounts and rules that govern the flexibility of counties to transfer monies between accounts. The bill also directs the allocation of funding among accounts, including the allocation of growth funding. Proposed Law. The 2011 Realignment legislation provided for a temporary financing structure for the 2011-12 fiscal year only. This legislation enacts a permanent financing structure for the 2011 Realignment, including account structures, funding allocations among accounts and counties, allocations of available growth funding, and various other issues. Specifically, this bill 1)Creates Account Structure in State Treasury. This bill amends the current account structure created in the Local Revenue Fund 2011 within the State Treasury and directs the transfer of all remaining funds in the original funds to designated successor funds. Specifically, the bill abolishes all of the original accounts in the Local Revenue Fund 2011 except for the Mental Health Account. The bill also creates and designates permanent successor accounts. The bill creates three main accounts within the Local Revenue Fund; the Support Services Account, the Law Enforcement Services Account, and the Sales and Use Tax Growth Account. The Support Services Account includes the Protective Service Subaccount and Behavioral Health Subaccount and this bill directs the deposit of funds from the original subaccounts into the new subaccounts and special accounts as follows: ----------------------------------------------------------- | Original Subaccount | Successor Subaccount | |------------------------------+----------------------------| |Adult Protective Services | Protective Services | |Subaccount | Subaccount | |------------------------------+----------------------------| |Foster Care Assistance | | |Subaccount | | SB 1020 Page 2 |------------------------------+----------------------------| |Foster Care Administration | | |Subaccount | | |------------------------------+----------------------------| |Child Welfare Services | | |Subaccount | | |------------------------------+----------------------------| |Adoptions Subaccount | | |------------------------------+----------------------------| |Adoption Assistance Program | | |Subaccount | | |------------------------------+----------------------------| |Child Abuse Prevention | | |Subaccount | | ----------------------------------------------------------- ----------------------------------------------------------- | Original Subaccount | Successor Subaccount | |------------------------------+----------------------------| |Drug Court Subaccount | Behavioral Health | | | Subaccount | |------------------------------+----------------------------| |Nondrug Medi-Cal Substance | | |Abuse Treatment Services | | |Subaccount | | |------------------------------+----------------------------| |Drug Medi-Cal Subaccount | | |------------------------------+----------------------------| |Women and Children's |Women's and Children's | |Residential Treatment |Residential Treatment | |Services Subaccount |Services Special Account | | | | ----------------------------------------------------------- The successor Women's and Children's Residential Treatment Services Special Account is created as a special account within the Behavioral Health Subaccount. The Support Services Account also includes the creation of a new County Intervention Support Services Subaccount. The Law Enforcement Services Account has the following Subaccounts and this bill directs the deposit of funds from the original funds into the new subaccounts and special accounts as follows: SB 1020 Page 3 ------------------------------------------------------------ | Original Fund | Successor Subaccount | |-------------------------------+----------------------------| |Trial Court Security Account |Trial Court Security | |-------------------------------+----------------------------| |Local Community Corrections |Community Corrections | |Account |Subaccount | |-------------------------------+----------------------------| |Local Law Enforcement Services |Enhancing Law Enforcement | |Account |Activities Subaccount | |-------------------------------+----------------------------| |District Attorney and Public |District Attorney and | |Defender Account |Public Defender Subaccount | |-------------------------------+----------------------------| |Juvenile Justice Account |Juvenile Justice Subaccount | |-------------------------------+----------------------------| |Youthful Offender Block Grant |Youthful Offender Block | |Subaccount |Grant Special Account | |-------------------------------+----------------------------| |Juvenile Reentry Grant |Juvenile Reentry Grant | |Subaccount |Special Account | | | | ------------------------------------------------------------ The successor Youthful Offender Block Grant Special Account and Juvenile Reentry Grant Special Account are both created as special accounts within the Juvenile Justice Subaccount. The Vehicle License Fee revenues are deposited directly in Enhancing Law Enforcement Activities Subaccount. This bill creates the Sales and Use Tax Growth Account in the Local Revenue Fund 2011. Within this account is the Support Services Growth Subaccount and the Law Enforcement Services Growth Subaccount. The Support Services Growth Subaccount contains two special accounts, the Protective Services Growth Special Account and the Behavioral Health Services Growth Special Account. The Law Enforcement Services Growth Subaccount contains four special accounts, as follows: Trial Court Security Growth Special Account; Community Corrections Growth Special Account; District Attorney and Public Defender Growth Special Account; and, Juvenile Justice Growth Special Account. There is also created in the Enhancing Law Enforcement Activities Subaccount an Enhancing Law Enforcement Growth Special Account where SB 1020 Page 4 any vehicle license fee revenues above $489.9 million are deposited. As of September 15, 2012, all of the funds in both the original funds and subaccounts are deposited in the successor subaccounts and special account. 2)Directs Creation of County Account Structure. This bill directs the county treasurer to amend the current account structure created in the County Local Revenue Fund 2011. The account structure mirrors the subaccount and special account structure in the state fund, but does not direct the creation of the County Intervention Support Services Subaccount. This bill also directs the creation of a Support Services Reserve Subaccount in the Support Services Account. The bill directs the creation of a Contract Special Account within the Protective Services Subaccount for designated counties for the funding of multi-state or statewide contracts. The bill also directs the creation of a Local Innovation Subaccount within the Law Enforcement Services Account. Starting in 2015-16 the funds deposited in this account will be able to be used more flexibly for eligible public safety related activities. This bill requires only the counties of Alameda, Los Angeles, Marin, San Diego, San Francisco, and San Joaquin to create a County Women and Children's Residential Treatment Services Special Accounts within their Behavioral Health Subaccount. As of September 15, 2012, all of the funds in the county original funds and subaccounts are deposited in the county successor subaccounts and special accounts and the original funds and subaccounts are abolished. The accounts mirror those created in the State Treasury with the aforementioned exceptions. 3)Transferability Between Subaccounts in Support Services Account. This bill authorizes the counties to allocate up to 10% between subaccounts in the Support Services Account. The 10% is based on the amount deposited in the subaccount in the previous year with the lowest balance. The authorization to make this transfer must occur in a regularly scheduled public hearing and must be based on the most cost effective use of available resources to maximize client outcomes. Any reallocations made shall only be in effect for the fiscal year in which the allocation was made and shall not be considered a permanent funding allocation or a permanent funding source for any program or service receiving the reallocation. These SB 1020 Page 5 transfers must be documented annually to the State Controller and reported to the Legislature. This bill allows counties authorized to operate an integrated and comprehensive county health and human services system to not withstand the transferability rules set up in this bill. 4)Use of Support Services Reserve Account. This bill authorizes a county's board of supervisors to reallocate funds from the Protective Services Subaccount or Behavioral Health Subaccount, or both to the Support Services Reserve Subaccount. The amount of these transfers may not exceed 5% of the total funds allocated to the Protective Services Subaccount or Behavioral Health Subaccount in the State Treasury (excludes growth). The authorization to make allocations to the Support Services Reserve Account must occur in a regularly scheduled public hearing. The allocations to the reserve accounts must be documented annually to the State Controller and reported to the Legislature. 5)Specifies Eligible Uses for Funds Deposited in 2011 Realignment Subaccounts and Special Accounts. This bill requires that all funds deposited in the County Local Revenue Fund 2011 be used exclusively for public safety services, as defined by this bill and The Schools and Local Public Safety Protection Act of 2012. Current law restricts the expenditure of funds deposited in the original funds and accounts created for 2011 Realignment. This bill updates those accounts to the new successor subaccounts and special accounts and subjects these updated subaccounts and special accounts to the same restrictions, including funding in the various Growth Special Accounts. In addition, this bill adds planning, implementation and training costs for revocation proceedings as an eligible use of funds deposited in the District Attorney and Public Defender Subaccount and associated growth special account. This bill also specifies that funding in the Enhancing Law Enforcement Activities Subaccount and associated growth special account shall be used to provide grants and funding to local law enforcement as provided by statute. This bill also specifies that funds deposited in the Local Innovation Subaccount within the Law Enforcement Services Account shall be used to fund local needs, which include any eligible expenditure in the Juvenile Justice Subaccount, the District SB 1020 Page 6 Attorney and Public Defender Subaccount, the Community Corrections Subaccount, or the Trial Court Security Subaccount. This bill defines that the counties have 100% of the nonfederal share of costs of programs that are part of 2011 Realignment. These costs shall be covered by funds deposited in the Local Revenue Fund 2011. Also specifies that funds shall be expended in a manner that maintains eligibility for federal funding. This bill adds Medi-Cal specialty health services, including Early and Periodic Screening, Diagnosis, and Treatment Program and mental health managed care to the list of programs funded from within 2011 Realignment. These programs were funded outside of 2011 Realignment last year. This bill directs the expenditure of any residual funds remaining in the Reserve Account and Undistributed Account to fund entitlements for the 2011-12 fiscal year. After these accounts are liquidated they are abolished on January 1, 2013. 6)Community Corrections Grant Program. This bill specifies that the monies in the Community Corrections Subaccount and the Community Corrections Growth Special Account constitute funding for the Community Corrections Grant Program established by AB 109 (Budget Committee), Chapter 15, Statutes of 2011. 7)Defines 2011 Realignment Legislation. This bill defines "2011 Realignment Legislation" as legislation entitled 2011 Realignment and provides for the assignment to local agencies of responsibilities for public safety services. This legislation must be enacted by September 30, 2012. Furthermore, this bill also provides that no new program may be assigned to local agencies after January 1, 2012, except for the Early and Periodic Screening, Diagnosis, and Treatment program and mental health managed care. This statutory framework will become inoperative if Article XIII of the Constitution is added per The Schools and Public Safety Protection Act of 2012 on the November 6, 2012, statewide general election. 8)Mandate Protection for State. This bill provides statutory guidance directing that any mandate of a new program or higher level of service on a local agency imposed by 2011 Realignment Legislation shall be paid from the funding provided in the Local Revenue Fund 2011. This statutory framework would become inoperative if Article SB 1020 Page 7 XIII of the Constitution is added per The Schools and Public Safety Protection Act of 2012 on the November 6, 2012, statewide general election. 9)County Protection against New State Imposed Costs for Realigned Programs. This bill provides that any legislation enacted after September 30, 2012, that has the overall effect of increasing the costs for programs or levels of service mandated by the 2011 Realignment Legislation shall apply to local agencies only to the extent that the state provides annual funding for the cost increase. This bill also provides that any regulations, executive orders, or administrative directives, implemented after October 9, 2011, that are not necessary to implement 2011 Realignment and have the overall effect of increasing the costs for programs or levels of service mandated in 2011 Realignment shall apply to local agencies only to the extent that the state provides annually funding for the cost increase. This bill also limits the state from submitting to the federal government any plans or waivers, or amendments to those plans or waivers that have an overall effect of increasing the cost by a local agency for programs or levels of service mandated by 2011 Realignment. 10)Cost Sharing Provisions for Unanticipated New Program Costs. This bill makes it clear that that the state is not required to provide funds for a mandate that is imposed by the state at the request of a local agency or to comply with federal law. This bill also makes it clear that any new mandates imposed by the state shall not be funded from 2011 Realignment, ad valorem property tax, or 1991 Realignment. This bill also makes it clear that it is a county option to provide a new program or a higher level of service, but it does not require a subvention of funds from the state. The 2011 Realignment includes realignment of programs and funding for federal entitlement programs. This bill provides that the state shall provide at least 50% of the nonfederal costs of any changes in federal statutes or regulations that alter the conditions under which federal matching funds are obtained. For the federal entitlement programs that are part of 2011 Realignment, this bill requires the state to pay for 50% on the nonfederal share of costs related to judicial or administrative orders that impose a cost in the form of a monetary penalty. Payment is not required if the state determines that the settlement or order relates to one or more local agencies failing to perform a SB 1020 Page 8 legal obligation in good faith. This bill states that judicial complaints related to a state or local agency fail to perform a duty or obligation under 2011 Realignment shall have priority over all other civil matters. 11)Conditions of Expenditure of 2011 Realignment Funds. This bill directs that funds deposited in the County Local Revenue Fund 2011 be spent in a manner designed to maximize the state's eligibility for federal matching funds and ensure compliance with applicable federal standards governing the provision of services included in 2011 Realignment. Funds deposited in the County Local Revenue Fund 2011 may not be used by local agencies to supplant other funding for public safety services. 12)Public Notification of Reductions to Optional and Discretionary Programs. This bill requires that significant reductions ("significant" defined as 10% in one year or 25% over three years) to optional or discretionary programs currently funded in behavioral health, adult protective services, and child welfare services be made in an open session, as an action item in a duly noticed meeting of the board of supervisors. 13)Share of Costs Definition. This bill specifies that for the programs realigned as part of 2011 Realignment the state shall not have a share of costs. The funding provided is specifically intended to be in an amount sufficient to fund the cost of the state mandates. The bill requires the county first exhaust funding provided in 2011 Realignment and 1991 Realignment for any state mandated costs related to 2011 Realignment. This statutory framework will become inoperative if Article XIII of the Constitution is added per The Schools and Public Safety Protection Act of 2012 on the November 6, 2012, statewide general election. The bill also specifies that that state does not have a share of costs for programs described in 2011 Realignment that are funded by 1991 Realignment. This provision shall become operative if Article XIII of the Constitution is added per The Schools and Public Safety Protection Act of 2012 on the November 6, 2012, statewide general election. 14)Reporting by the State Controller. The State Controller is required to post monthly the amount received by the Local Revenue SB 1020 Page 9 Fund 2011. The State Controller shall also post the amounts allocated to every account, subaccount and special account within the Local Revenue Fund 2011. Annually the State Controller shall provide detailed information as to the source of the funding deposited in each account, subaccount and special account. Also, starting in 2014-15 the State Controller is required to report the highest amount ever allocated to the Subaccounts in the Local Revenue Fund 2011 and not how much growth funding may need to be provided as restoration in a future fiscal year to achieve that level. Also annually, the State Controller shall make a detailed report on how much each county, city and city and county received in each subaccount. 15)Clarifications on Entitlement Programs. This bill clarifies that nothing in 2011 Realignment impacts in any way the rights provided by federal entitlement programs. This bill also specifies that counties shall fund Medi-Cal specialty mental health services, including Early and Periodic Screening, Diagnosis and Treatment from monies received from the Behavioral Health Subaccount and the Behavioral Health Growth Special Account. Funding for this program shall also come from 1991 Realignment funds and to the extent permissible under the Mental Health Services Act, the Mental Health Services Fund. This bill requires that the provision of services for these mental health programs be based on the requirement of federal law. 16)Technical Amendments to 2011-12 Funding Allocations. This bill makes technical amendments to the 2011-12 funding allocations for 2011 Realignment. Mainly these amendments clarify that cash for any given fiscal year include cash until August 15, 2012, to account for the lag in receipt of sales tax revenues. 17)Makes 2012-13 Funding Allocations. This bill makes funding allocations to the accounts and subaccounts within the Local Revenue Fund 2011 for the 2012-13 fiscal year. The first allocations made from the Local Revenue Fund 2011 are as follows: (in Millions) ------------------------------------------------------------- |Account | Amount| |------------------------------+------------------------------| |Mental Health Account |$1,120.6 | | | | SB 1020 Page 10 ------------------------------------------------------------- ------------------------------------------------------------- |Account | Amount| |------------------------------+------------------------------| |Enhancing Law Enforcement | $489.9 from Vehicle License | |Activities |Fee (VLF) revenues and if VLF | | | revenues are not enough to | | | reach this level from sales | | |tax revenues deposited in the | | | Local Revenue Fund 2011 | |------------------------------+------------------------------| |Enhancing Law Enforcement | Any remaining VLF revenue | |Growth Special Account |above $489.9 | | | | ------------------------------------------------------------- After the above allocations are made the remaining funds deposited in the Local Revenue Fund 2011 are allocated as follows for the 2012-13 fiscal year: (in Millions) ------------------------------------------------------------- |Account | Amount| |------------------------------+------------------------------| |Support Services Account | 64.1975% or up to $2,604.9| |------------------------------+------------------------------| |Law Enforcement Services |35.8025% or up to | |Account |$1,452.7 | | | | ------------------------------------------------------------- The following allocations are then made from the accounts above to the following subaccounts for the 2012-13 fiscal year: (in Millions) ------------------------------------------------------------- |Support Services Account | Amount| |------------------------------+------------------------------| |Behavioral Health Subaccount | 37.0264% or up to $964.5| |------------------------------+------------------------------| SB 1020 Page 11 |Protective Services |62.9736% or up to | |Subaccount |$1,640.4 | | | | ------------------------------------------------------------- ------------------------------------------------------------- |Law Enforcement Services | Amount| |Account | | |------------------------------+------------------------------| |Trial Court Security | 34.1721% or up to $496.4| |Subaccount | | |------------------------------+------------------------------| |Community Corrections | 58.0217% or up to $842.9| |Subaccount | | |------------------------------+------------------------------| |District Attorney and Public | 1.0050% or up to $14.6| |Defender Subaccount | | |------------------------------+------------------------------| |Juvenile Justice Subaccount |6.8012% or up to | | |$98.8 | | | | ------------------------------------------------------------- From the Behavioral Health Subaccount an amount of $5.1 million is allocated to the Women and Children's Residential Treatment Services Special Account. 18)Makes 2013-14 Funding Allocations. This bill makes funding allocations to the accounts and subaccounts within the Local Revenue Fund 2011 for the 2013-14 fiscal year. The first allocations made from the Local Revenue Fund 2011 are as follows: (in Millions) ------------------------------------------------------------- |Account | Amount| |------------------------------+------------------------------| |Mental Health Account |$1,120.6 | | | | ------------------------------------------------------------- ------------------------------------------------------------- |Account | Amount| |------------------------------+------------------------------| SB 1020 Page 12 |Enhancing Law Enforcement | $489.9 from Vehicle License | |Activities |Fee (VLF) revenues and if VLF | | | revenues are not enough to | | | reach this level from sales | | |tax revenues deposited in the | | | Local Revenue Fund 2011 | |------------------------------+------------------------------| |Enhancing Law Enforcement | Any remaining VLF revenue | |Growth Special Account |above $489.9 | | | | ------------------------------------------------------------- After the above allocations are made the remaining funds deposited in the Local Revenue Fund 2011 are allocated as follows for the 2013-14 fiscal year: (in Millions) ------------------------------------------------------------- |Account | Amount| |------------------------------+------------------------------| |Support Services Account | 2012-13 amount + $20.4 + | | | 2012-13 Growth| |------------------------------+------------------------------| |Law Enforcement Services | 2012-13 amount + $158.5 + | |Account | 2012-13 Growth for Trial | | |Court Security Subaccount and | | |Juvenile Justice Subaccount | | | | ------------------------------------------------------------- The following allocations are then made from the accounts above to the following subaccounts for the 2013-14 fiscal year: (in Millions) ------------------------------------------------------------- |Support Services Account | Amount| |------------------------------+------------------------------| |Behavioral Health Subaccount | 36.7391% or up to 2012-13 | | | amount + 2012-13 Growth| |------------------------------+------------------------------| |Protective Services | 63.2609% or up to 2012-13 | SB 1020 Page 13 |Subaccount | amount + $20.4 + 2012-13 | | |Growth | | | | ------------------------------------------------------------- ------------------------------------------------------------- |Law Enforcement Services |Amount | |Account | | |------------------------------+------------------------------| |Trial Court Security | 30.8105% or up to 2012-13 | |Subaccount | amount + 2012-13 Growth| |------------------------------+------------------------------| |Community Corrections | 61.9960% or up to $998.9| |Subaccount | | |------------------------------+------------------------------| |District Attorney and Public | 1.0613% or up to $17.1| |Defender Subaccount | | |------------------------------+------------------------------| |Juvenile Justice Subaccount | 6.1322% or up to 2012-13 | | |amount + 2012-13 Growth | | | | ------------------------------------------------------------- From the Behavioral Health Subaccount an amount of $5.1 million is allocated to the Women and Children's Residential Treatment Services Special Account. The special adjustments made to the Protective Services Subaccount adjust the base funding level for the implementation of AB 12 (Beall), Chapter 559, Statutes of 2010, that provides for supportive transitional services to foster youth until the age of 21. The adjustments made to the Community Corrections Subaccount and the District Attorney and Public Defender Subaccount are based on caseload adjustments being made as AB 109 (Budget Committee), Chapter 15, Statutes of 2011, is implemented. 19)Makes 2014-15 Funding Allocations. This bill makes funding allocations to the accounts and subaccounts within the Local Revenue Fund 2011 for the 2014-15 fiscal year. The first allocations made from the Local Revenue Fund 2011 are as follows: (in Millions) ------------------------------------------------------------- SB 1020 Page 14 |Account | Amount| |------------------------------+------------------------------| |Mental Health Account |$1,120.6 | | | | ------------------------------------------------------------- ------------------------------------------------------------- |Account | Amount| |------------------------------+------------------------------| |Enhancing Law Enforcement | $489.9 from Vehicle License | |Activities |Fee (VLF) revenues and if VLF | | | revenues are not enough to | | | reach this level from sales | | |tax revenues deposited in the | | | Local Revenue Fund 2011 | |------------------------------+------------------------------| |Enhancing Law Enforcement | Any remaining VLF revenue | |Growth Special Account |above $489.9 | | | | ------------------------------------------------------------- After the above allocations are made the remaining funds deposited in the Local Revenue Fund 2011 are allocated as follows for the 2014-15 fiscal year: (in Millions) ------------------------------------------------------------- |Account | Amount| |------------------------------+------------------------------| |Support Services Account | 2013-14 amount + $15.3 + | | | 2013-14 Growth| |------------------------------+------------------------------| |Law Enforcement Services | 2013-14 amount - $66.1 + | |Account | 2013-14 Growth for Trial | | |Court Security Subaccount and | | |Juvenile Justice Subaccount | | | | ------------------------------------------------------------- The following allocations are then made from the accounts above to the following subaccounts for the 2014-15 fiscal year: (in Millions) SB 1020 Page 15 ------------------------------------------------------------ ------------------------------------------------------------ |Law Enforcement Services | Amount| |Account | | |-----------------------------+------------------------------| |Trial Court Security | 32.1286% or up to 2013-14 | |Subaccount | amount + 2013-14 Growth| |-----------------------------+------------------------------| |Community Corrections | 60.4543% or up to $934.1| |Subaccount | | |-----------------------------+------------------------------| |District Attorney and Public | 1.0226% or up to $15.8| |Defender Subaccount | | |-----------------------------+------------------------------| |Juvenile Justice Subaccount | 6.3945% or up to 2013-14 | | |amount + 2013-14 Growth | | | | ------------------------------------------------------------ From the Behavioral Health Subaccount an amount of $5.1 million is allocated to the Women and Children's Residential Treatment Services Special Account. The special adjustments made to the Protective Services Subaccount adjust the base funding level for the implementation of Chapter 559, Statutes of 2010 (AB 12, Beall) that provides for supportive transitional services to foster youth until the age of 21. The adjustments made to the Community Corrections Subaccount and the District Attorney and Public Defender Subaccount are based on caseload adjustments being made as Chapter 15, Statutes of 2011 (AB 109, Budget) is implemented. 20)Makes Ongoing Annual Funding Allocation Starting in 2015-16. This bill makes funding allocations to the accounts and subaccounts within the Local Revenue Fund 2011 for the 2015-16 fiscal year and each subsequent year. The first allocations made from the Local Revenue Fund 2011 are as follows: SB 1020 Page 16 (in Millions) ------------------------------------------------------------- |Account | Amount| |------------------------------+------------------------------| |Mental Health Account |$1,120.6 | | | | ------------------------------------------------------------- ------------------------------------------------------------- |Account | Amount| |------------------------------+------------------------------| |Enhancing Law Enforcement | $489.9 from Vehicle License | |Activities |Fee (VLF) revenues and if VLF | | | revenues are not enough to | | | reach this level from sales | | |tax revenues deposited in the | | | Local Revenue Fund 2011 | |------------------------------+------------------------------| |Enhancing Law Enforcement | Any remaining VLF revenue | |Growth Special Account |above $489.9 | | | | ------------------------------------------------------------- After the above allocations are made the remaining funds deposited in the Local Revenue Fund 2011 are allocated as follows for the 2015-16 fiscal year and each year subsequent: (in Millions) ------------------------------------------------------------- |Account | Amount| |------------------------------+------------------------------| |Support Services Account | Funding + Growth from | | | immediately preceding fiscal | | | year| |------------------------------+------------------------------| |Law Enforcement Services | Funding + Growth for all | |Account | accounts from immediately | | |preceding fiscal year | | | | ------------------------------------------------------------- The following allocations are then made from the accounts above to SB 1020 Page 17 the following subaccounts for the 2014-15 fiscal year and each subsequent fiscal year: (in Millions) ------------------------------------------------------------- |Support Services Account | Amount| |------------------------------+------------------------------| |Behavioral Health Subaccount | Funding + Growth from | | | immediately preceding fiscal | | | year| |------------------------------+------------------------------| |Protective Services | Funding + Growth from | |Subaccount | immediately preceding fiscal | | |year | | | | ------------------------------------------------------------- ------------------------------------------------------------- |Law Enforcement Services | Amount| |Account | | |------------------------------+------------------------------| |Trial Court Security | Funding + Growth from | |Subaccount | immediately preceding fiscal | | | year| |------------------------------+------------------------------| |Community Corrections | Funding + Growth from | |Subaccount | immediately preceding fiscal | | | year| |------------------------------+------------------------------| |District Attorney and Public | Funding + Growth from | |Defender Subaccount | immediately preceding fiscal | | | year| |------------------------------+------------------------------| |Juvenile Justice Subaccount | Funding + Growth from | | | immediately preceding fiscal | | |year | | | | ------------------------------------------------------------- From the Behavioral Health Subaccount an amount of $5.1 million is allocated to the Women and Children's Residential Treatment Services Special Account. SB 1020 Page 18 If there are insufficient funds in the Support Services Account or the Law Enforcement Services Account to make the allocations to the subaccounts described above the State Controller shall allocate the funding based on a proportional share that the subaccounts received in the immediately preceding fiscal year. The Department of Finance will annually prepare a schedule that provides the appropriate and proportional allocations to direct the Controller's allocation if funds are not sufficient to provide the intended allocations described above. 21)Makes Allocations of Growth Funding. Within the Local Revenue Fund 2011 is the Sales and Use Tax Growth Account. This account receives sales and use tax revenue growth above the base allocations described in this bill. This bill allocates these funds to the subaccounts and special accounts within the Sales and Use Tax Growth Account for fiscal years 2012-13, 2013-14, and 2014-15. For 2015-16 a permanent growth allocation methodology is established for allocating most of the special accounts. For the 2012-13 fiscal year, the growth is allocated to two of the subaccounts as follows: ------------------------------------------------------------- |Account | | |------------------------------+------------------------------| |Support Services Growth | 65%| |Subaccount | | |------------------------------+------------------------------| |Law Enforcement Services |35% | |Subaccount | | ------------------------------------------------------------- Starting in 2013-14 there is a definition of the amount necessary to provide full base funding. If there is not enough funding to provide full base funding, the growth is distributed in the same proportion as the base allocations were made for the 2013-14 fiscal year. If there are additional growth monies after the amount necessary to provide full base funding, these monies will be allocated 65% to the Support Services Growth Subaccount and 35% to the Law Enforcement Services Subaccount. The amounts necessary to provide full base funding for each of the accounts is as follows: ------------------------------------------------------------- |Support Services Account | Amount| SB 1020 Page 19 |------------------------------+------------------------------| |Behavioral Health Subaccount | Maximum amount allocated in | | | 2012-13| |------------------------------+------------------------------| |Protective Services | Maximum amount allocated in | |Subaccount |2012-13 | | | | ------------------------------------------------------------- ------------------------------------------------------------- |Law Enforcement Services | Amount| |Account | | |------------------------------+------------------------------| |Trial Court Security |Greater of 2011-12 amount and | |Subaccount | 2012-13 amount + 2012-13 | | | growth| |------------------------------+------------------------------| |Community Corrections | Maximum amount allocated in | |Subaccount | 2012-13| |------------------------------+------------------------------| |District Attorney and Public | Maximum amount allocated in | |Defender Subaccount | 2012-13| |------------------------------+------------------------------| |Juvenile Justice Subaccount |Greater of 2011-12 amount and | | | 2012-13 amount + 2012-13 | | |growth | | | | ------------------------------------------------------------- Starting in 2014-15 the definition of the amount necessary to provide full base funding is provided in the table below. If there is not enough funding to provide full base funding, the growth is distributed in the same proportion as the base allocations were made for the 2014-15 fiscal year. If there are additional growth monies after the amount necessary to provide full base funding, these monies will be allocated 65% to the Support Services Growth Subaccount and 35% to the Law Enforcement Services Subaccount. The amounts necessary to provide full base funding for each of the accounts is as follows: ------------------------------------------------------------- |Support Services Account | Amount| |------------------------------+------------------------------| |Behavioral Health Subaccount |Greater of the maximum amount | SB 1020 Page 20 | | that could have been | | | allocated in 2012-13 or the | | | largest amounts received | | | (base + growth) in any prior | | |year beginning with 2013-14 | |------------------------------+------------------------------| |Protective Services |Greater of the maximum amount | |Subaccount |that was allocated in 2012-13 | | | and the maximum amount that | | |was allocated in 2013-14 | | | | ------------------------------------------------------------- SB 1020 Page 21 ------------------------------------------------------------- |Law Enforcement Services | Amount| |Account | | |------------------------------+------------------------------| |Trial Court Security | Greater of 2011-12 amount or | |Subaccount | the largest amounts received | | | (base + growth) in any prior | | | year beginning with 2012-13| |------------------------------+------------------------------| |Community Corrections | Greatest amount allocated in | |Subaccount | a single year beginning with | | | 2012-13| |------------------------------+------------------------------| |District Attorney and Public | Greatest amount allocated in | |Defender Subaccount | a single year beginning with | | | 2012-13| |------------------------------+------------------------------| |Juvenile Justice Subaccount | Greater of 2011-12 amount or | | | the largest amounts received | | | (base + growth) in any prior | | |year beginning with 2012-13 | | | | ------------------------------------------------------------- Starting in 2015-16 and for each subsequent year after the definition of the amount necessary to provide full base funding is provided in the table below. If there is not enough funding to provide full base funding, the growth is distributed in the same proportion as the base allocations were made for the 2015-16 fiscal year and for each subsequent year. If there are additional growth monies after the amount necessary to provide full base funding, these monies will be allocated 65% to the Support Services Growth Subaccount and 35% to the Law Enforcement Services Subaccount. The amounts necessary to provide full base funding for each of the accounts is as follows: ------------------------------------------------------------- |Support Services Account | Amount| |------------------------------+------------------------------| |Behavioral Health Subaccount |Greater of the maximum amount | | |that was allocated in 2012-13 | | | or the largest amounts | | | received (base + growth) in | SB 1020 Page 22 | |any prior year beginning with | | | 2012-13| |------------------------------+------------------------------| |Protective Services |Greater of the maximum amount | |Subaccount | that was allocated in | | | 2012-13, the maximum | | | allocated in 2013-14, or the | | | largest amounts received | | | (base and growth) in any | | | prior year beginning with | | |2012-13 | | | | ------------------------------------------------------------- ------------------------------------------------------------- |Law Enforcement Services | Amount| |Account | | |------------------------------+------------------------------| |Trial Court Security | Greater of 2011-12 amount or | |Subaccount | the largest amounts received | | | (base + growth) in any prior | | |year beginning with 2012-13 | |------------------------------+------------------------------| |Community Corrections | Greatest amount (base + | |Subaccount | growth) in a single year | | | beginning with 2014-15 or | | | highest amount authorized to | | | receive in any single fiscal | | | year beginning with 2012-13| |------------------------------+------------------------------| |District Attorney and Public | Greatest amount (base + | |Defender Subaccount | growth) in a single year | | | beginning with 2014-15 or | | | highest amount authorized to | | | receive in any single fiscal | | | year beginning with 2012-13| |------------------------------+------------------------------| |Juvenile Justice Subaccount | Greater of 2011-12 amount or | | | the largest amounts received | | | (base + growth) in any prior | | |year beginning with 2012-13 | | | | ------------------------------------------------------------- SB 1020 Page 23 This bill also specifies growth allocation to the special accounts within the Support Services Growth Subaccount and the Law Enforcement Services Growth Subaccount in the Sales and Use Tax Growth Account for the 2012-13 fiscal year. Additional growth funding is dedicated to child welfare services until the Director of Finance certifies that $200 million has been allocated to the Protective Services Growth Special Account. The allocations are as follows: ------------------------------------------------------------- |Support Services Growth | | |Subaccount | | |------------------------------+------------------------------| |Mental Health Subaccount | 5%| |------------------------------+------------------------------| |Protective Services Growth | 40%| |Special Account for Child | | |Welfare Services | | |------------------------------+------------------------------| |Protective Services Growth | 42.03%| |Special Account | | |------------------------------+------------------------------| |Behavioral Health Services |12.97% | |Growth Special Account | | ------------------------------------------------------------- ------------------------------------------------------------- |Law Enforcement Services | | |Growth Subaccount | | |------------------------------+------------------------------| |Trial Court Security Growth | 10%| |Special Account | | |------------------------------+------------------------------| |Community Corrections Growth | 75%| |Special Account | | |------------------------------+------------------------------| |District Attorney and Public | 5%| |Defender Growth Special | | |Account | | |------------------------------+------------------------------| |Juvenile Justice Growth |10% | |Special Account | | ------------------------------------------------------------- SB 1020 Page 24 Growth will not be added to the base to create a "rolling base" for the Community Corrections Subaccount and the District Attorney and Public Defender Subaccount until 2015-16. The allocations among the special accounts in the Law Enforcement Services Growth Subaccount are not proposed to be changed. This bill also specifies a different growth allocation to the special accounts within the Support Services Growth Subaccount in the Sales and Use Tax Growth Account for the 2013-14 fiscal year. ------------------------------------------------------------- |Support Services Growth | | |Subaccount | | |------------------------------+------------------------------| |Mental Health Subaccount | 5%| |------------------------------+------------------------------| |Protective Services Growth | 40%| |Special Account for Child | | |Welfare Services | | |------------------------------+------------------------------| |Protective Services Growth | 21.81%| |Special Account | | |------------------------------+------------------------------| |Behavioral Health Services |33.19% | |Growth Special Account | | ------------------------------------------------------------- This bill states that once the Director of Finance has certified that $200 million in funding has been provided to county child welfare services programs and the Protective Services Growth Special Account, the allocation amount is changed as follows: ------------------------------------------------------------- |Support Services Growth | | |Subaccount | | |------------------------------+------------------------------| |Mental Health Subaccount | 5%| |------------------------------+------------------------------| |Protective Services Growth | 45%| |Special Account | | |------------------------------+------------------------------| |Behavioral Health Services |50% | SB 1020 Page 25 |Growth Special Account | | ------------------------------------------------------------- 22)Creates System of State Intervention for Medi-Cal Programs in 2011 Realignment. The bill authorizes a process and procedure for the Department of Health Care Services to intervene if the department determines that a county is failing to perform functions and could jeopardize the receipt of federal funds for these programs. This bill authorizes, after notification, the State Controller to deposit the portion of the county's allocation attributable to the effected program into the County Intervention Support Services Subaccount. The amounts deposited in this Subaccount will then be used by the department to fund the program or programs in the county where the county was failing to perform necessary functions to maintain federal funds. 23)Protection for Counties if Funding Supporting Realignment is Reduced or Repealed. This bill requires the state to annually provide moneys to the Local Revenue Fund 2011 in an amount equal to or greater than the aggregate amount that otherwise would have been provided by the taxes supporting 2011 Realignment if the taxes are reduced or eliminated. If the state fails to annually appropriate that amount, the State Controller shall transfer that amount from the General Fund. A process for this backfill of funding satisfies a requirement of Article XIII of the Constitution to be added per The Schools and Public Safety Protection Act of 2012 on the November 6, 2012, statewide general election. 24)Provides Juvenile Justice Subaccount Allocations. This bill makes technical amendments to the allocation of funding within the Juvenile Justice Subaccounts for the 2011-12 fiscal year. This bill also proposes to allocate these funds to the special accounts in 2012-13 and every subsequent fiscal year as follows: ------------------------------------------------------------- |Juvenile Justice Subaccount | | |------------------------------+------------------------------| |Youthful Offender Block Grant | 96.015%| |Special Account | | |------------------------------+------------------------------| |Juvenile Reentry Grant |3.085% | |Special Account | | ------------------------------------------------------------- SB 1020 Page 26 25)Directs Allocation of Funds from State to County and Among Counties. This bill specifies that the revenues collected on August 16 to August 15, inclusive, of the following year constitutes a fiscal year for the purposes of 2011 Realignment. This bill specifies allocation of the funds to the counties as follows: a) Funds in the Mental Health Account shall be allocated on the 20th of each month to the local Mental Health Subaccount that was created in 1991 Realignment. b) Funds in the Trial Court Security Subaccount shall be allocated by the State Controller on the 27th of each month. Money in the Trial Court Security Subaccount cannot be used to pay for general county administrative expenses. This bill also provides for an allocation of the Trial Court Security Subaccount among the counties. This allocation is based on the 2011-12 allocation adjusted for expected increased workload associated with the implementation of AB 109 (Budget Committee), Chapter 15, Statutes of 2011. c) Allocates funding from the Community Corrections Subaccount to the counties for the 2012-13 and 2013-14 fiscal years only. This allocation was developed by the California State Association of Counties and allowed counties to pick the most favorable formula from three formulas that included: i) caseload; ii) population between 18 and 64; and, iii) the 2011-12 formula, which was based on a weighted formula composed of caseload, population, and SB 678 probation incentive program success rate. A new methodology and schedule for allocating funds shall be developed by the Department of Finance in consultation with the California State Association of Counties commencing with the 2014-15 fiscal year. d) Allocates funding from the District Attorney and Public Defender Subaccount to the counties for the 2012-13 and 2013-14 fiscal years only. A new methodology and schedule for allocating funds shall be developed by the Department of Finance in consultation with the California State Association of Counties commencing with the 2014-15 fiscal year. e) Funds deposited in the Enhancing Law Enforcement Activities Subaccount are allocated among counties according to current law. f) On August 25 of each year, funds allocated to the Enhancing Law Enforcement Activities Growth Special Account shall be SB 1020 Page 27 allocated as follows: i) 38.40% to the Juvenile Probation and Camps Funding program; ii) 27.08% to the Community Oriented Policing Services Program; iii) 27.08% to the Juvenile Justice Crime Prevention Act program; and, iv) 7.44% to the Juvenile Camps and Ranches program. g) Directs the monthly allocation of funds from the Protective Services Subaccount to the County Protective Services Subaccount. For the 2012-13 fiscal year the distribution to each county shall be the same as those used to distribute funds in the 2011-12 fiscal year adjusted to reflect updated expenditures on Foster Care Assistance and Adoptions Assistance Program payments and for the distribution of the estimated funding for implementation of AB 12 (Beall), Chapter 559, Statutes of 2010. For the 2013-14 fiscal year and each year subsequent the Department of Finance may develop a schedule in consultation with the California State Association of the Counties per criteria. This bill authorizes up to $32,721,000 annually to be transferred to a Contract Special Account of a designated county. 26)Directs Deposit of Growth Funds in County Accounts. This bill directs the growth funds in state growth special accounts to the appropriate county accounts as follows: ------------------------------------------------------------- |Growth Account |Local Account | |------------------------------+------------------------------| |Protective Services Growth |Protective Services | |Special Account |Subaccount | |------------------------------+------------------------------| |Behavioral Health Services |Behavioral Health Subaccount | |Growth Special Account | | |------------------------------+------------------------------| |Trial Court Security Growth |Trial Court Security | |Special Account |Subaccount | |------------------------------+------------------------------| |Community Corrections Growth |Community Corrections | |Special Account |Subaccount | |------------------------------+------------------------------| |District Attorney and Public |District Attorney and Public | |Defender Growth Special |Defender Subaccount | |Account | | |------------------------------+------------------------------| SB 1020 Page 28 |Juvenile Justice Growth |Juvenile Justice Subaccount | |Special Account | | ------------------------------------------------------------- The bill further directs that the growth funds shall be allocated to the local subaccounts in the percentages provided. However, if the allocation methodology is not specified in this bill, the growth funds shall be allocated in accordance with schedules developed by the Department of Finance in consultation with the California State Association of Counties and in accordance with any criteria contained in this bill. 27)Creates Local Innovation Subaccount. Starting in 2015-16, each county shall transfer to the Local Innovation Subaccount 10% of the moneys received during a fiscal year from each of the following state accounts: a) Trial Court Security Growth Special Account; b) Community Corrections Growth Special Account; c) District Attorney and Public Defender Growth Special Account; and, d) Juvenile Justice Growth Special Account. 28)Incentive Funding from Protective Services Growth Special Account. Starting in 2012-13, 10% of the growth funding from the Protective Services Growth Special Account shall only be allocated to counties that have expended in that fiscal year an amount at least equivalent to that which the county would have had to spend in the absence of 2011 Realignment Legislation to access augmentation funding pursuant to Section 10609.9 of the Welfare and Institutions Code. This determination will be made as of August 1 with data from the prior fiscal year. Small counties are exempt from this provision according to this bill. This bill also allocates this growth funding among the counties per a schedule. 29)Community Corrections Growth Allocation. This bill requires the Department of Finance to develop a schedule for allocating the growth funding in the Community Corrections Growth Special Account. The schedule shall reflect priorities that promote the effective implementation of the 2011 Public Safety Realignment including the following: i) minimum allocations for each county; ii) SB 1020 Page 29 establishment of appropriate small county minimum allocations; iii) adjustments for average daily population variations; iv) other factors; and, v) implementation of 2011 Public Safety Realignment consistent with cost effective evidence based practices. This bill requires that the Department of Finance consider a county's commitment to continuing, expanding, or initiating community corrections practices, programs and strategies that manage felony offender populations most cost effectively by using evidence-based practices when developing this formula to allocate the growth over the next two years. 30)Re-Enacts Definitions Related to Child Welfare Services. This bill re-enacts definitions related to child welfare services that were realigned in the 2011 Realignment. This provision of law is related to 2011 Realignment. 31)Women and Children's Residential Treatment Services Program. This bill authorizes six counties to establish the Women and Children's Residential Treatment Services Special Account within their Behavioral Health Subaccount. These six counties currently have established programs and this bill would dedicate money to these programs in the future. Funding is allocated to Alameda County, Marin County, Los Angeles County, San Diego County, San Francisco City and County, and San Joaquin County. 32)Contract Back with State Allowance. This bill allows the counties to contract with the State Department of Health Care Services or the Department of Social Services to provide or administer the Drug Medi-Cal Treatment Program and the Agency Adoptions Program. Contracts would be exempt from certain aspects of the Public Contract Code and contracts shall include reimbursement to the state for the cost of providing the services or activities. 33)Creates Contract Special Account. This bill authorizes that up to $32,721,000 be allocated annually to the Contract Special Account of a designated county. This account would be used to contract directly with the Department of Social Services for the following programs, services, and functions: a) The Private Agency Adoptions Reimbursement Program; b) The Chafee Post Secondary Education and Training Voucher Program; SB 1020 Page 30 c) Health Care Oversight for Children in Foster Care; d) Training, technical assistance, and other contracts of statewide benefits; and, e) Other contracts that counties, in consultation with the Department of Social Services determine are in the best interests of counties and the state. Funds in this account shall not be subject to the reallocation rules. If the funding is not fully expended in a given fiscal year it shall be retained in the fund for expenditure in the subsequent fiscal year. After consultation with the Department of Social Services and the California State Association of Counties, funding may be redistributed back to all counties in the proportion that it was provided to the Contract Special Account. 34)Allocations of the Youthful Offender Block Grant and Juvenile Justice Reentry Grant. This bill directs the allocation of the Youthful Offender Block Grant Special Account and the Juvenile Justice Reentry Special Account to each county according to current law. Under current law the Director of Finance determines allocations that are distributed monthly to the counties. 35)Reporting. This bill requires transmittal of all schedules developed by the Department of Finance pursuant to this chapter and transmitted to the Controller for allocation of funding to also be transmitted to the fiscal committees of the Legislature. 36)1991 Realignment Funding Swap. The 2011 Realignment interacts with 1991 Realignment by providing $1,120,551,000 from 2011 Realignment to fund mental health services that were previously funded by 1991 Realignment. The 1991 Realignment funding that is no longer supporting these mental health funds is transferred in the counties CalWORKS Maintenance of Effort Subaccount up to $1,120,551,000. Growth associated with 1991 realignment funding should continue to accrue to the 1991 Mental Health Subaccount. 37)Contains an appropriation allowing this bill to take effect immediately upon enactment. COMMENTS : Chapter 40, Statutes of 2011 enacted 2011 Public Safety Realignment that transferred approximately $5.6 billion in state fiscal responsibilities for public safety programs from the state to SB 1020 Page 31 local governments. This realignment also redefined 1.0625 of the state sales and use tax as a local sales and use tax to support $5.1 billion of the realignment starting in the 2011-12 fiscal year and redirected $453.4 million in vehicle license fee revenues from the state to local governments to specifically support local law enforcement programs previously funded by the state. The Schools and Local Public Safety Protection Act of 2012 is a Constitutional Amendment that is qualified for the November 2012 election that will constitutionally protect the revenues transferred to local governments as part of the enactment of 2011 Public Safety Realignment. This constitutional amendment, among other things, also provides various mandate protections for the state and guidance related to cost sharing of future changes to federal entitlement programs realigned to the counties. Analysis Prepared by : Nicole Vazquez / BUDGET / (916) 319-2099 FN: 0004200