BILL ANALYSIS Ó
AB 111
Page 1
Date of Hearing: May 9, 2013
ASSEMBLY COMMITTEE ON BUDGET
Bob Blumenfield, Chair
AB 111 (Budget Committee) - As Amended: May 7, 2013
SUBJECT : Budget Act of 2012
SUMMARY : This supplemental appropriations bill (deficiency
bill) appropriates $32.9 million from the General Fund to the
State Controller for allocation to the Department of
Developmental Services ($32.4 million) and to the Department of
Social Services ($505,000). This bill also authorizes the
reappropriation of funds within the Office of Statewide Health
Planning & Development and the Judicial Branch. Specifically,
this bill :
1)Reappropriates unspent funds originally appropriated in fiscal
years 2009-10 through 2012-13, and authorizes those funds to
be available through June 30, 2018. Requires these funds to
be used for the Mental Health Loan Assumption Program and
Mental Health Workforce, Education, and Training programs.
2)Appropriates $7,380,000 General Fund to the Department of
Developmental Services for 2012-13 specifically for the Sonoma
Developmental Center Program Improvement Plan, in order to
backfill for the loss of federal funding.
3)Appropriates $25,000,000 General Fund to the Department of
Developmental Services for 2012-13 specifically for Regional
Centers, to backfill for the loss of assumed funding of the
same amount from First 5 California.
4)Appropriates $505,000 General Fund to the Department of Social
Services for 2012-13 to reflect increased costs of providing a
notice to recipients in the In Home Supportive Services (IHSS)
program as a result of a recent legal settlement.
5)Reappropriates $50 million, from the Immediate and Critical
Needs Account to support the acquisition of the new East
County Courthouse in the County of Alameda.
6)Authorizes the Judicial Branch to enter into a lease-purchase
agreement with the County of Alameda for a new Courthouse
project upon: a) approval by the Director of Finance; b)
AB 111
Page 2
providing a 30-day notification to the committees in each
house that consider appropriations; and, c) providing a 30-day
notification, without objection, to the Joint Legislative
Budget Committee.
FISCAL EFFECT : Increases General Fund costs of $32,880,000 in
fiscal year 2012-13.
COMMENTS : This bill contains funding necessary to address
deficiencies in the 2012 Budget Act.
There are many valid reasons that departments sometimes do not,
and at times cannot, fully expend funds in the fiscal year in
which the funds were appropriated. Furthermore, statutory
authorization is required to reappropriate these funds and allow
them to be used for their intended purpose in subsequent years.
This bill provides that authorization for the Office of
Statewide Health Planning & Development and for the Judicial
Branch.
This bill also provides General Fund backfill for unexpected
losses in other types of funding. The Sonoma Developmental
Center Intermediate Care Facility (ICF) has experienced a loss
of federal funding as a result of the California Department of
Public Health (DPH) decertifying the ICF due to systematic
deficiencies. In response, DDS voluntarily terminated the
Medicaid certification of four of the ten residential units at
the ICF, resulting in the loss of federal funds. DPH and DDS
have jointly entered into a Program Improvement Plan to provide
a framework of improvements to meet federal certification
requirements and continued federal financial participation. The
Plan requires Sonoma Developmental Center to enter into a
contract with an independent entity to perform a root cause
analysis, develop action plans to correct identified
deficiencies, and to report progress to DPH on a monthly basis.
General Fund also is being used to backfill for a loss of First
5 California funding reflecting the fact that the 2012-13 budget
assumed $40 million in First 5 funds, however First 5 California
approved only $15 million, leaving a $25 million gap.
Finally, this bill appropriates $505,000 to cover unanticipated
costs resulting from a recent legal settlement affecting the
IHSS program. The increased costs result from a requirement on
the state to mail to recipients notification of an additional
AB 111
Page 3
4.4 percent reduction to authorized service hours.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
None on file.
Analysis Prepared by : Nicole Vazquez / BUDGET / (916)
319-2099