BILL ANALYSIS Ó SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW Mark Leno, Chair Bill No: AB 101 Author: Committee on Budget As Amended: August 27, 2013 Consultant: Mark Ibele and Keely Bosler Fiscal: Yes Hearing Date: August 29, 2013 Subject: Budget Act of 2013. Summary: This bill amends the Budget Act of 2013 by revising various items of appropriation and making other necessary changes to the legislation. Background: The Legislature passed the 2013 Budget Act (Chapter 20, Statutes of 2013, [AB 110] on June 14, 2013. The legislation was signed by the Governor on June 28, 2013. This bill provides for certain technical adjustments to various budget items, clarifications of budget bill language, and additional appropriations. Proposed Law: The bill provides for the following 1.Department of Parks and Recreation. Corrects an over-appropriation of funds to the Department of Parks and Recreation. A one-time increase of $10 million in 2012-13 was not continued and, therefore, should appropriately be reduced by a like amount. 2.Department of Pesticide Regulation. Includes budget bill language to require the Department of Pesticide Regulation to conduct five risk assessments per year, at a minimum. 3.General Fund Loans. Provides a repayment of General Fund loans to the Alternative and Renewable Fuel and Vehicle Technology Fund and makes these funds available for the Clean Vehicle Rebate Project. 4.Secretary of State. Includes budget bill language clarifying reporting language related to the Secretary of State's efforts to reduce business filings within the -1- state. 5.Private Postsecondary Education. Includes a reappropriation of $270,000 from the Private Postsecondary Education Fund to the California State Auditor's Office to conduct a performance review of the Bureau of Private Postsecondary Education. 6.County Veteran Services. Includes budget bill language providing for a greater level of detail on the one-time, $3 million appropriation provided to County Veteran Service Officers, as part of the 2013 Budget Act. Specifically, $2.6 million will be distributed to counties based on the workload units reported for Fiscal Year 2012-13. The remaining $400,000 will be distributed to a single county to act as the lead agency in developing a state-wide veterans outreach effort. 7.Department of Transportation. Contains additional budget bill language governing cost recovery from project initiation documents from local governments, directs the department to streamline cooperative work agreements related to project initiation document development and oversight, augments the additional reimbursements from the High-Speed Rail Authority (HSRA) up to $1.8 million, exempts the HSRA from full cost recovery and reappropriates certain federal trust fund moneys. 8.Active Transportation Program. Shifts resources from several existing separate state programs that support active transportation, such as bicycling and walking, to the newly established Active Transportation Program, funded at $129.4 million. Contains language that provides a set-aside of $24.0 million in 2013-14, 2014-15 and 2015-16 for projects that fund safe routes to schools, with $7.2 million earmarked for non-infrastructure activities. Provides funding for activities that are not related to the ATP for the Recreational Trails Program at $3.4 million and Environmental Enhancement and Mitigation Program Fund at $7 million. 9.Stage 3 Child Care Technical Adjustment. Reduces the allocation to Stage 3 child care programs by $14.5 -2- million to reflect actual caseload estimates for the program. This item was erroneously over budgeted when the budget act was passed in June 2013. 10.Community Colleges Administration. Provides $422,000 to support four additional positions and funding to upgrade an existing position to support various new initiatives at the Chancellor's Office, including information technology activities, the apprenticeship program consolidation and adult education. 11.Apprenticeship Program. Corrects code references and clarifies oversight of community colleges over the apprenticeship program, formerly under the Department of Education. Prior to the 2013 budget act, apprenticeship programs existed at both the community colleges and the California Department of Education. 12.CalWORKs Workstudy Clarification. Clarifies that CalWORKs program categorical funds expended on workstudy are available to support participants that are meeting either state or federal minimum requirements. This change conforms to changes made in the overall CalWORKs program in 2012. 13.Physical Plant and Instructional Support. Clarifies that $30 million provided for physical plant and instructional support is one-time and available for expenditures until June 30, 2015. Also clarifies that this category of expenditures is no longer flexible and must be expended on physical plant and/or instructional support. 14.Extended Opportunity Programs and Services (EOPS). Updates budget bill language to reflect the correct amount appropriated in the 2013 budget act to the EOPS program, which is $15 million more than provided in the prior year. 15.Adult Education. Updates budget bill language to conform to trailer bill language passed as part of the 2013 budget act that created an Adult Education Consortium Program. -3- 16.Community Colleges - Proposition 39. Updated budget bill language to ensure Proposition 39 (Clean Energy Job Creation Fund) funds are expended consistent with trailer bill legislation passed as part of the 2013 budget act. Also ensures that the community colleges allocate and expend the money consistent with the guidance put forth to the Chancellor of the Community Colleges on May 29, 2013, that was developed in conjunction with the California Energy Commission. 17.Community Colleges - Federal Funds. Reappropriates unexpended federal funds for expenditure by the community colleges. 18.California Student Aid Commission. Ensures that local consortia do not have to meet matching requirements for funds allocated to the California Student Opportunity and Access Program (Cal-SOAP) program for the purpose of Middle Class Scholarship Program outreach. 19.K-12 and Community College Mandates. Makes various technical naming changes to the K-12 and community colleges mandates listed in the budget bill. 20.Local Control Funding Formula (LCFF). Eliminates $2 million appropriated to the Governor's Office of Planning and Research for support of State Board of Education activities, related to implementation of the Local Control Funding Formula for K-12 education. This amount is duplicative of another appropriation for the same purpose in the LCFF budget trailer bill. 21.Special Education Funding. Reduces the federal special education funding appropriation for K-12 education by $230,000, to reflect final budget actions. 22.Charter School Facility Grant Program Transfer. Adds a new budget item to authorize the transfer of Charter School Facility Grant Program funds from the Department of Education to the California School Finance Authority. This authority is needed to fully implement the program transfer included in the final budget. -4- Fiscal Effect: Contains various minor appropriations, corrects for a $10.0 million over-appropriation, reappropriates certain federal funds, makes a caseload downward adjustment of $14.5 million, transfers existing funds to a consolidated transportation fund, and corrects certain other appropriations. Support: NA Opposed: NA Comments: NA -5-