BILL ANALYSIS Ó
SB 1037
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SENATE THIRD READING
SB 1037 (Budget and Fiscal Review Committee)
As Amended June 25, 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. With these adjustments contained in
this bill, the final budget package will provide $16.5 billion
in overall solutions to fully bridge the May Revision budget gap
of $15.7 billion, resulting in a reserve level of $816 million.
The amendments in this bill adjust the budget package to reflect
the final budget agreement. Specifically, this bill :
1)Makes adjustments to the Proposition 98 funding assumptions to
reflect that the state will honor redevelopment pass-through
agreements before allocating property tax associated with
redevelopment to the appropriate local entities.
2)Provides $50 million of growth funding for California
Community Colleges, in lieu of using these funds to pay
deferrals. This funding is contingent upon passage of the
November revenue initiative.
3)Provides $50 million in Proposition 98 funding for charter
school growth funding.
4)Appropriates $18 million to the Department of Justice for
programs related to helping individuals impacted by the
National Mortgage Settlement.
5)Assumes savings from the transition of children from Healthy
Families to the Medi-Cal program.
6)Includes an additional $30 million reduction to child care
funding to the level assumed in AB 1464. This reduction would
apply as an across-the board reduction.
7)Includes additional savings associated with new policy changes
associated with CalWORKs, including:
a) Sunsetting of the short-term extensions beginning
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January 1, 2013;
b) Adding the new one-time exemption for families with a
child between 12 and 24 months; applying the 24 month
services time clock prospectively;
c) Adding an extension to the 24 month clock for up to 20%
of the caseload; and,
d) Delaying the restoration of the Earned Income Disregard,
reduce the re-assessment of eligibility to certain cases
from semi-annually to annually.
1)Includes budget provisions for the routine staffing and
planning function of the High Speed Rail Authority. This bill
does not include funding for High Speed Rail construction.
2)Changes to control section language regarding the trigger
reductions that would occur if the ballot initiative that
provides temporary revenue increases does not pass.
3)Updates a control section associated with the 5% reduction to
employee compensation to reflect bargaining agreements that
have been reached between the administration and several
unions.
4)Makes various technical, scoring, and conforming changes to
various budget items.
5)Contains an appropriation allowing this bill to take effect
immediately upon enactment.
COMMENTS : This bill amends the original budget bill to achieve
the expenditures levels and solutions assumed in the overall
budget package. This process allows for adjustments to the
budget bill itself without the logistical challenges of
re-enacting the entire 777 page budget bill. This amended bill
is sometimes called "Budget Bill Junior" because the bill is
derived from the original budget act and is shorter in length.
Analysis Prepared by : Christian Griffith / BUDGET / (916)
319-2099
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FN: 0004190