BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW
                              Senator Mark Leno, Chair
                                2015 - 2016  Regular 

          Bill No:            AB 116          Hearing Date:    June 15,  
          2015
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          |Author:   |Committee on Budget                                   |
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          |Version:  |January 9, 2015    Introduced                         |
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          |Urgency:  |No                     |Fiscal:    |No               |
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          |Consultant|Peggy Collins                                         |
          |:         |                                                      |
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                            Subject:  Budget Act of 2015.


          Summary: This bill augments the Budget Act of 2014 to address various  
          funding shortfalls.

          Background:  This bill makes supplemental appropriations to the Budget Act  
          of 2014 in order to address the following shortfalls:
          
           Department of Health Care Services  :  Increased costs are  
          associated with hospital presumptive eligibility; a delay in  
          Medi-Cal redeterminations; behavioral health treatment services;  
          increased Medicare payments; a decrease in the projected managed  
          care organization tax savings; and reduced federal drug rebates.  
           These increased costs are partially offset by increased savings  
          due to litigation settlements and additional drug rebates, for a  
          total deficiency of $241.2 million General Fund (GF).

           Department of Developmental Services  : Increased costs are  
          associated with staffing adjustments at the state developmental  
          centers; decertification of four intermediate care facility  
          units at Sonoma Developmental Center; increased caseload and  
          utilization costs for regional center consumers; and  
          continuation costs for residents transitioning into the  
          community from a developmental center.  These increased costs  
          are partially offset by a reduction in the estimated costs for  
          the expansion of the secured treatment program at Porterville  
          Developmental Center; reduced costs for the Fairview and  
          Porterville developmental centers program improvement plan  







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          implementation; lower than anticipated costs associated with the  
          state minimum wage increase; and the court action that has  
          delayed implementation of federal overtime requirements, for a  
          total deficiency of $170 million GF.

           California Correctional Health Care Services (Receiver)  :  
          Increased costs are associated with increased California Health  
          Care Facility staffing; Valley Fever testing; new high-cost  
          Hepatitis C treatment; increased pharmaceutical costs; and  
          adjustments based on the medical acuity staffing model, for a  
          total deficiency of $107.7 million GF.

           Department of General Services  : Increased costs are associated  
          with the ongoing external legal representation in the case of  
          California First, LLP (CalFirst) v. State of California, for a  
          total deficiency of $2.5 million GF.  This case concerns a  
          purchase and sale agreement whereby CalFirst agreed to purchase  
          11 properties owned by the state.  According to the  
          Administration, this agreement automatically terminated when  
          CalFirst failed to post a second deposit, as required by the  
          agreement.  

           Homicide Trials  : Under existing law, qualifying counties may  
          seek reimbursement from the State Controller for extraordinary  
          expenses associated with homicide trials.  Two counties,  
          Mariposa County in the case of People v. Cary Stayner and Lassen  
          County in the case of People v. Joanne McElrath and Robin James,  
          qualify for specified reimbursements, for a total supplemental  
          cost of $72,000 GF.  
           
          Public Utilities Commission  : Increased costs are associated with  
          the inclusion of wireless cell phones in the Universal Lifeline  
          Telephone Service program, which provides discounted home phone  
          and cell phone services to qualified families.  This inclusion  
          resulted in a 60 percent increase in claims, for a total  
          deficiency of $96 million (Universal Lifeline Telephone Service  
          Trust Administrative Committee Fund).

          Proposed Law and Fiscal  
          Effect:  This bill augments the Budget Act of 2014 by $521,541,114 GF  
          and $96,000,000 (Special Funds) to address various funding  
          shortfalls.

          Support:   None on file








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          Opposed:  None on file
          
          
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