BILL ANALYSIS                                                                                                                                                                                                    






                  SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW
                                Mark Leno, Chair
                                        
          Bill No:       SB 68
          Author:        Budget and Fiscal Review
          As Amended:    May 7, 2013
          Consultant:    Jennifer Troia
          Fiscal:        Yes
          Hearing Date:  May 9, 2013
          
          Subject:  Budget Act of 2012

          Summary:  This supplemental appropriations (deficiency)  
          bill appropriates $32.4 million General Fund (GF) to the  
          Department of Developmental Services and $505,000 GF to the  
          Department of Social Services, and makes corresponding  
          adjustments to anticipated federal funding, as appropriate.  
           This bill also authorizes the reappropriation of funds for  
          use by the Office of Statewide Health Planning and  
          Development and by the Administrative Office of the Courts  
          (AOC).  
                                                          
          Background:  

          1)Developmental Services:  The 2012 budget assumed that the  
            California Children and Families (First 5) Commission  
            would provide $40 million in funding for Early Start  
            services to young children.  The First 5 Commission  
            recently voted to instead provide the lesser amount of  
            $15 million in funding for these services.  In addition,  
            four out of 10 of the Intermediate Care Facility units at  
            the Sonoma Developmental Center (SDC) were recently  
            withdrawn from federal certification.  As a result, the  
            state is losing approximately $1.4 million per month in  
            federal funding.

          2)Social Services:  In March 2013, the Administration and  
            plaintiffs in three In-Home Supportive Services  
            (IHSS)-related lawsuits [Oster (V.L.) v. Lightbourne, et  
            al. (Oster) I & II, and Dominguez v. Schwarzenegger, et  
            al.] entered into a comprehensive settlement agreement  
            that includes an eight percent across-the-board reduction  
            in authorized hours of IHSS services.  The Administration  
            indicates that notices to recipients regarding this  
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            reduction need to be sent during the 2012-13 budget year  
            in order to reach recipients in advance of the expiration  
            of an existing 3.6 percent across-the-board reduction  
            (which is scheduled to expire June 30, 2012).  

          3)Mental Health Workforce, Education, and Training  
            Programs.  The Mental Health Services Act (MHSA)  
            Workforce, Education, and Training (WET) program promotes  
            the distribution, diversity, competency, collaboration,  
            and capacity of California's mental health practitioners.  
            Prior to 2012-13, the MHSA WET program was administered  
            by the Department of Mental Health and was transferred to  
            the Office of Statewide Health Planning and Development  
            in the 2012 budget.

          4)Proposed Courthouse in Alameda County:  A proposed  
            facility is intended to replace two existing court  
            facilities: the Gale-Schenone Courthouse, which is  
            currently leased by the AOC for $1.6 million per year,  
            and the Broussard Justice Center, which flooded and is  
            currently a non-functioning site.  The county has donated  
            the land on which the new courthouse and county  
            administrative office are to be constructed.  The county  
            will sell bonds for the project, oversee construction,  
            and retain ownership of the land and buildings until debt  
            service is fully repaid.  Upon full repayment of all  
            issued bonds, the courthouse and all associated land and  
            buildings will be transferred to the state for $1.  A  
            construction contract must be negotiated and finalized  
            prior to the expiration of the construction permit with  
            the City of Dublin, on June 30, 3013.

          Proposed Law:  

          1)Developmental Services:  Appropriates $25 million GF to  
            the Department of Developmental Services (DDS) for  
            2012-13, to backfill for the loss of assumed funding of  
            the same amount from First 5.  Additionally, appropriates  
            $7.4 million GF to DDS for 2012-13 to backfill for lost  
            federal funding attendant to the lack of federal  
            certification for four Intermediate Care Facility units  
            at SDC.  

          2)Social Services:  Appropriates $505,000 GF for mailing  
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            and translation of notices regarding settlement of recent  
            litigation and resulting changes in services to IHSS  
            recipients.  

          3)MHSA WET Funding:  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 Services Act Workforce, Education, and Training  
            programs.

          4)Court Funding:  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 and 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) 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:  Appropriations of $32.4 million General  
          Fund (GF) to the Department of Developmental Services and  
          $505,000 GF to the Department of Social Services, and  
          corresponding adjustments to anticipated federal funding,  
          as appropriate.  This bill also authorizes the  
          reappropriation of funds that were already authorized and  
          that remain available for use by the Office of Statewide  
          Health Planning and Development and by the AOC.  

          Support:   Unknown

          Opposed:  Unknown







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