BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                 UNFINISHED BUSINESS


          Bill No:  SB 89
          Author:   Senate Budget and Fiscal Review Committee
          Amended:  6/12/13
          Vote:     21

           
          PRIOR SENATE VOTES NOT RELEVANT

           ASSEMBLY FLOOR  :  Not available


           SUBJECT  :    Budget Act of 2012 

           SOURCE  :     Author


           DIGEST  :    This bill makes supplemental appropriations to the  
          Budget Act of 2012.  Specifically, the bill appropriates  
          $482,870,000 from the General Fund (GF) to the Department of  
          Health Care Services; $8,290,000 GF to the Department of  
          Developmental Services; $5,915,000 GF to Health and Dental  
          Benefits for Annuitants; and $224,976 GF to reimburse qualified  
          counties for the costs of homicide trials.

           Assembly Amendments  delete Senate version of the bill which  
          expressed Legislative intent to enact statutory changes relating  
          to the Budget Act of 2013, and instead add the current language.  


           ANALYSIS  :     Department of Health Care Services  .  The Budget Act  
          of 2012 assumes savings in the Medi-Cal program associated with  
          various actions.  These savings were not fully realized due to  
          several factors, including the shift of the Healthy Families  
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          program to Medi-Cal, a court injunction related to provider rate  
          reductions, and the lack of federal approval to eliminate  
          supplemental payments to non-designated public hospitals.

           Department of Developmental Services.   The Budget Act of 2012  
          assumes the number of persons with developmental disabilities  
          who will require services in state developmental centers  
          throughout the budget year.  The actual developmental center  
          population is higher than budgeted.  Additionally, the  
          department is required to contract with an independent  
          consultative review expert, as a condition of the Program  
          Improvement Plan entered into with the federal government.   
          Finally, the department receives federal Title XX Social  
          Services Block Grant funding to provide special services to  
          assist persons with developmental disabilities live in the least  
          restrictive environment possible.  These block grant funds have  
          been reduced as a result of federal sequestration.  Under the  
          Lanterman Act, which provides an entitlement to services for  
          persons with developmental disabilities, the department cannot  
          limit access to services to address the reduction in Title XX  
          funding. 

           Health and Dental Benefits for Annuitants  .  The Budget Act of  
          2012 assumes that savings associated with the transition to the  
          Employer Group Waiver Plan for CalPERS Supplemental Medicare  
          plans would offset any potential shortfall in federal  
          reimbursement dollars.  However, the savings amount is  
          insufficient to fully accomplish this.

           Homicide Trials  .  Chapter 3 (commencing with Section 15200) of   
          Part 6 of Division 3 of Title 2 the Government Code allows for  
          qualified counties to seek state reimbursement for homicide  
          trial costs, upon review and approval of the State Controller.   
          The counties of Mariposa, Amador and Lassen all have such  
          claims.

          This bill:
          
           1.Department of Health Care Services  .  Appropriates $482,870,000  
            GF to address the erosion of anticipated savings, due largely  
            to the shift of the Healthy Families program to Medi-Cal, a  
            court injunction related to provider rate reductions, and the  
            lack of federal approval to eliminate supplemental payments to  
            non-designated public hospitals.

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           2.Department of Developmental Services  .  Appropriates $2,392,000  
            GF to reflect a higher than budgeted population in the state  
            developmental centers; and $241,000 GF to fund the current  
            year costs of an independent consultative review expert,  
            required as a condition of the Program Improvement Plan  
            entered into with the state Department of Public Health, as a  
            result of the loss of federal certification for four of the  
            ICF units at Sonoma Developmental Center.  Appropriates  
            $5,657,000 GF to provide a backfill for the loss of federal  
            Title XX block grant funding as a result of the federal  
            sequester.

           3.Health and Dental Benefits for Annuitants  .  Appropriates  
            $5,915,000 GF for June health care premiums for state and  
            state university employees, due to a shortfall in federal  
            Medicare Part D subsidy funds that occurred during the state's  
            transition to the Employer Group Waiver Plan for CalPERS  
            Supplemental Medicare Plans.

           4.Homicide Trials.   Appropriates $224,976 GF to reimburse  
            qualifying counties for costs associated with homicide trials.  
             Specifically, provides $12,773 GF to Mariposa County for the  
            case "People v. Cary Stayner"; $59,629 GF to Amador County for  
            the cases "People v. Bergo" and "People v. Manisap, Nguyen,  
            Saechao, Tai, and Tran"; and $152,574 GF to Lassen County for  
            the case "People v. McElrath, James."

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  No

          According to the Senate Budget and Fiscal Committee, this bill  
          appropriates $497,299,976 from the General Fund to address  
          various budget shortfalls in the Budget Act of 2012.




          JA:nl  6/13/13   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  NONE RECEIVED

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