BILL ANALYSIS Ó SB 1031 Page 1 SENATE THIRD READING SB 1031 (Budget and Fiscal Review Committee) As Amended August 23, 2012 Majority vote. Budget Bill Appropriation Takes Effect Immediately SENATE VOTE :Vote not relevant SUMMARY : Amends the 2012-13 Budget Act, which was adopted on June 15, 2012, in AB 1464 (Blumenfield), Chapter 21, Statutes of 2012. Specifically, this bill : 1)Includes a $29 million fund shift in the local assistance budget item under the Judicial Branch. One item was correctly increased; however, the other budget item was mistakenly not reduced. 2)Extends the encumbrance period by two years to allow the Department of Parks and Recreation to expend $6 million for water, wastewater, and sewer system capital outlay projects in state parks. 3)Authorizes up to $2 million from the State Parks and Recreation Fund (SPRF) for park operations at Del Norte Coast Redwoods State Parks, Samuel P. Taylor State Park, and Tomales Bay State Park. Fees for these parks are collected by the National Parks Services per federal agreements and deposited in SPRF. 4)Provides that the Department of Finance shall conduct an audit of the Renewable Resource Trust Fund and its related accounts and provide a final audit report to the Legislature no later than June 30, 2013. This audit was inadvertently deleted in the Resources Trailer Bill, SB 1018 (Budget and Fiscal Review Committee), Chapter 39, Statutes of 2012. 5)Reduces the Budget appropriation for three Public Utilities Commission programs: a) Universal Lifeline Telephone Service Trust Administrative Committee Fund - $75 million reduction; b) Deaf and Disabled Telecommunications Program Administrative Committee Fund - $22 million reduction; and, SB 1031 Page 2 c) California Teleconnect Fund Administration Committee Fund - $15 million reduction. d) These reductions are necessary to correct reporting errors, which overstated use of these programs. 6)Corrects a technical error in the 2012 Budget Act (that resulted from the transfer of the Office of Family Planning from the Department of Public Health to the Department of Health Care Services), within which the General Fund appropriations for the Office of Family Planning are overstated by $2.035 million. 7)Addresses an error in the 2012 Budget Act (that resulted from the elimination of the Department of Mental Health (DMH) and related transfer of programs and appropriations from DMH to other departments), which transferred the balances of the DMH appropriations to the Department of Health Care Services to liquidate the appropriations and inadvertently excluded this one appropriation. 8)Corrects a technical error in the 2012 Budget Act that resulted from the transfer of the Every Woman Counts (EWC) program from the Department of Public Health to the Department of Health Care Services, which inadvertently excluded amendments to budget bill language needed to transfer the EWC General Fund reappropriation language from one department to the other. 9)Reflects increased revenue from an extension to the gross premiums tax on managed care organizations, which will not take effect if such an extension does not occur, and this revenue is not realized. 10)Makes technical, no-cost corrections to the California Work Opportunity and Responsibility to Kids (CalWORKs) Single Allocation. The Single Allocation provides funding for counties' welfare-to-work services. The corrections shift unexpended funding from 2011-12 to the 2012-13 budget items, allowing counties to fully serve and re-engage cases. 11)Removes the Student Records mandate from the list of suspended mandates and adds a corresponding $1,000 SB 1031 Page 3 appropriation. 12)Adds four current and active mandates, which had been unintentionally not included in the 2012 Budget Act, and corresponding $1,000 appropriation for each mandate. 13)Includes budget bill provisional language, which has been included in the past several budgets on General Obligation bond funded University of California capital outlay projects, to authorize expenditure of any savings as specified and requires payment of prevailing wage rates. 14)Reinstates the expectation that the California State University (CSU) will enroll a total of 331,716 state supported full-time equivalent students during the 2012-13 academic year. This enrollment target does not include nonresident students and students enrolled in non-state supported summer programs. As a condition of receipt of state General Fund in 2012-13, requires CSU to report to the Legislature and to the Director of Finance by May 1, 2013, on whether it has met the enrollment goal. 15)Provides the CSU a one-time authority, effective only for the 2012-13 fiscal year, to transfer funds from the State University Continuing Education Revenue Fund or any other revenues received from extension programs to mitigate impacts to state-supported instructional programs that would result from reductions in state General Fund appropriations or from reductions in student fee revenues for support of the university. As a condition of this one-time authority, requires CSU to report to the Legislature and to the Director of Finance by June 30, 2013, on the impact of any transfer on self-supporting instructional programs and related fees and the use of any transferred funds. 16)Corrects a drafting error that inadvertently referenced the Department of Education instead of the Board of Governors of the California Community Colleges in the mandated programs block grant budget item. 17)Increases reimbursement authority to allow California Department of Transportation (Caltrans) to charge local transportation agencies for the development and oversight of Project Initiation Documents (PIDs). Local agencies will be charged only for direct costs. SB 1031 Page 4 18)Provides appropriation authority to allow the Controller to distribute California Police Activity League funds that are collected through a tax check-off box. 19)Provides $5 million General Fund to the Department of Finance to distribute to counties for allowable costs associated with the November 6, 2012, statewide election. 20)Provides Control Section 3.90: Ratifies addenda to the contracts of Bargaining Units 2, 7 and 10 to reflect reductions to employee compensation pursuant to the 2012 Budget Act. In all, 19 bargaining units agreed to compensation reductions. 21)Contains an appropriation allowing this bill to take effect immediately upon enactment. COMMENTS : This bill amends the original 2012-13 Budget Act, AB 1464 (Blumenfield), Chapter 21, Statutes of 2012, to reflect technical corrections and other conforming changes. Analysis Prepared by : Sara Bachez / BUDGET / (916) 319-2099 FN: 0005725