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
AB 116 (Committee on Budget) Page 2
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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
AB 116 (Committee on Budget) Page 3
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Opposed: None on file
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