BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 116|
|Office of Senate Floor Analyses | |
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THIRD READING
Bill No: AB 116
Author: Committee on Budget
Amended: 6/11/15 in Senate
Vote: 21
SENATE BUDGET & FISCAL REVIEW COMMITTEE: 11-4, 6/15/15
AYES: Leno, Allen, Beall, Block, Hancock, Mitchell, Monning,
Pan, Pavley, Roth, Wolk
NOES: Nielsen, Moorlach, Nguyen, Stone
NO VOTE RECORDED: Anderson
ASSEMBLY FLOOR: Not relevant
SUBJECT: Budget Act of 2014: augmentation
SOURCE: Author
DIGEST: This bill augments the Budget Act of 2014 by
$521,541,114 (General Fund) and $96,000,000 (Special Funds) to
address various funding shortfalls.
ANALYSIS: This bill makes supplemental appropriations to the
Budget Act of 2014 in order to address the following shortfalls:
1)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
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Page 2
million General Fund (GF).
2)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
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.
3)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.
4)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.
5)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.
6)Public Utilities Commission: Increased costs are associated
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Page 3
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% increase in claims, for a
total deficiency of $96 million (Universal Lifeline Telephone
Service Trust Administrative Committee Fund).
FISCAL EFFECT: Appropriation: Yes Fiscal
Com.:YesLocal: No
SUPPORT: (Verified6/12/15)
None received
OPPOSITION: (Verified6/12/15)
None received
Prepared by:Peggy Collins / B. & F.R. / (916) 651-4103
6/15/15 13:09:20
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