BILL ANALYSIS                                                                                                                                                                                                    

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          SB 68 (Budget and Fiscal Review Committee)
          As Amended  May 7, 2013
          Majority vote.  Budget Bill Appropriation Takes Effect  

           SENATE VOTE  :24-9  
           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 (DDS) ($32.4 million) and to the  
          Department of Social Services (DSS) ($505,000).  This bill also  
          authorizes the reappropriation of funds within the Office of  
          Statewide Health Planning and 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 DDS for 2012-13  
            specifically for the Sonoma Developmental Center Program  
            Improvement Plan, in order to backfill for the loss of federal  

          3)Appropriates $25,000,000 General Fund to the DDS 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 DSS 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)  


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            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.

          7)Contains an appropriation allowing this bill to take effect  
            immediately upon enactment. 

           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 and Development and for the Judicial  

          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 10 residential units at  
          the ICF, resulting in the loss of federal funds.  DPH and DDS  
          have jointly entered into a Program Improvement Plan (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 is also 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.


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          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  
          4.4% reduction to authorized service hours.

          Analysis Prepared by  :    Nicole Vazquez / BUDGET / (916)  

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