California Legislature—2013–14 Regular Session

Assembly BillNo. 289


Introduced by Assembly Member Nestande

February 11, 2013


An act to amend Section 13337 of the Government Code, relating to state fiscal affairs.

LEGISLATIVE COUNSEL’S DIGEST

AB 289, as introduced, Nestande. State Budget: key liabilities.

Existing law imposes various duties and responsibilities on the Governor and the Department of Finance in connection with the preparation and submission of the annual State Budget to the Legislature at each regular session thereof, including, among other things, the requirement to include a complete plan of all proposed expenditures and estimated revenues for the ensuing fiscal year.

This bill additionally would require the Governor, or the Department of Finance acting on his or her behalf, at the time the Governor’s Budget is submitted to the Legislature, to submit specified information to the Legislature, including a list of the state’s key liabilities relating to debt, infrastructure, retirement, and other liabilities that will affect the state’s financial health in the future.

The bill also would require the Governor’s Budget to include a section that specifies the percentages and amounts of General Fund revenues that must be set aside and applied toward paying off key liabilities. The bill further would restrict the Governor from including in the budget as estimated revenues those revenues estimated to be generated from laws, programs, or executive actions not in effect or effectuated at the time the budget is submitted to the Legislature.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

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SECTION 1.  

Section 13337 of the Government Code is
2amended to read:

3

13337.  

(a) begin insert(1)end insertbegin insertend insertThe budget required by thebegin delete Stateend deletebegin insert Californiaend insert
4 Constitution to be submitted by the Governor at each regular
5session of the Legislature shall be submitted within the first 10
6days thereof and shall contain a complete plan and itemized
7statement of all proposed expenditures of the state provided by
8existing law or recommended by him or her, and all of its
9institutions, departments, boards, bureaus, commissions, officers,
10employees, and other agencies, and of all estimated revenues, for
11the ensuing fiscal year, together with a comparison, as to each item
12of revenues and expenditures, with the actual revenues and
13expenditures for the last completed fiscal year, the estimated
14revenues, and expenditures for the existing fiscal year and the
15budgeted revenue and expenditures for the next fiscal year.

begin insert

16(2) Estimated revenues, for purposes of paragraph (1), shall
17not include revenues estimated to be generated from laws,
18programs, or executive actions not in effect or effectuated at the
19time the budget is submitted to the Legislature.

end insert

20(b) The budget shallbegin delete, in accordanceend deletebegin insert include the following:end insert

21begin insert(1)end insertbegin insertend insertbegin insertIn accordanceend insert with Chapter 2 (commencing with Section
2241200) of Part 24begin insert of Division 3 of Title 2end insert of the Education Code,
23begin delete includeend delete a section that specifies the percentages and amounts of
24General Fund revenues that must be set aside and applied for the
25support of school districts, as defined in Section 41302.5begin insert of the
26Education Codeend insert
, and community college districts, as required by
27subdivision (b) of Section 8 of Article XVI of the California
28Constitution.

begin insert

29(2) A section that specifies the percentages and amounts of
30General Fund revenues that must be set aside and applied toward
31paying off the key liabilities listed in paragraph (3) of subdivision
32(i).

end insert

33(c) The Governor, or the Department of Finance acting on his
34or her behalf, shall make appropriate changes in the budget request
35to reflect any modification in the organization or functions of state
P3    1government proposed under Article 7.5 (commencing with Section
212080) of Chapter 1begin insert of Part 2end insert prior to the passage of the budget.

3(d) The Governor’s Budget shall be prepared in accordance with
4guidelines and instructions adopted by the Department of Finance.

5(e) In order to provide meaningful comparisons, the Governor’s
6Budget shall be prepared in such a manner that the information
7presented provides for such comparisons between the fiscal years.

8(f) The Department of Finance shall submit to the committee
9in each house which considers appropriations and to the Joint
10Legislative Budget Committee copies of budget material submitted
11to it by agencies pursuant to the provisions of Article 2
12(commencing with Section 13320).

13(g) The Governor’s Budget shall also include a coding structure
14which indicates for each budget entity the categorization of
15expenditures and revenues.

16(h) Prior to the submission of the Governor’s Budget to the
17Legislature, the Department of Finance may conduct public
18hearings regarding any portion of any budget.

19(i) The Governor, or the Department of Finance acting on his
20or her behalf, shall, at thebegin delete sameend delete time the Governor’s Budget is
21submitted to the Legislature, submit begin insertthe following end insertto the Legislature
22begin delete copies of the material for the purposes of subdivision (j).end deletebegin insert:end insert

begin insert

23(1) A list of loans made to the General Fund and a summary of
24each loan, including its balance and the due date for repayment
25of the loan.

end insert
begin insert

26(2) A list of General Fund obligations to pay deferred or
27suspended expenditures or to transfer funds to any special fund
28or account, and a summary of each obligation, including the
29amount of the obligation and the due date for the payment or
30transfer.

end insert
begin insert

31(3) A list and summary of the state’s key liabilities relating to
32debt, infrastructure, retirement, and other liabilities that will affect
33the state’s financial health in the future.

end insert

34(j) The Department of Finance shall develop a fiscal information
35system which will provide timely and uniform fiscal data needed
36to formulate and monitor the budget, including, but not limited to,
37begin delete on-lineend deletebegin insert onlineend insert inquiry capacity and the ability to simulate budget
38expenditures and forecast revenues. This system may include,
39among other things, data on encumbrances and expenditures by
40line item, governmental unit, and fund source. The system shall
P4    1also include expenditures and encumbrances by program, as
2required. This system shall also include a coding structure which
3indicates the categorization of expenditures and revenues. This
4system and the data shall be available to both the legislative and
5executive branches. The system may contain separate programs
6accessible by only one branch, designed to provide for distinct
7application of the data, but the basic system data shall be available
8on an equal basis to both the legislative and executive branches of
9government.



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