BILL ANALYSIS Ó 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addition, four out of 10 of the Intermediate Care Facility units at the Sonoma Developmental Center (SDC) were recently withdrawn from federal certification.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 -1- 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 -2- 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 -3-