BILL ANALYSIS Ó SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW Senator Mark Leno, Chair 2015 - 2016 Regular Bill No: AB 123 Hearing Date: June 18, 2015 ----------------------------------------------------------------- |Author: |Committee on Budget | |----------+------------------------------------------------------| |Version: |January 9, 2015 Introduced | ----------------------------------------------------------------- ---------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ---------------------------------------------------------------- ----------------------------------------------------------------- |Consultant|Senate Budget Staff | |: | | ----------------------------------------------------------------- Subject: Budget Act of 2015. Summary: This bill contains provisions of the 2015-16 Budget Act. Background: The Legislature passed the 2015 Budget Act (AB 93) on June 15, 2015. This bill provides for certain adjustments to various budget items, clarifications of budget bill language, and additional appropriations. Proposed Law: AB 123 makes the following statutory changes to implement the 2015-16 budget. Child Care, Early Learning, and K-12 Education 1. Provides funding for 5,830 full-day state preschool slots, effective January 1, 2016; 1,200 non-local educational agencies full-day preschool slots, effective January 1, 2016; and 6,800 voucher slots, effective July 1, 2015. 2. Includes provisional language for Quality Rating and Improvement System (QRIS) consortia to provide training, technical assistance, and resources to help infant and toddler child care providers meet a hither tier of quality. Specifies that each county participating in a QRIS consortia must receive a minimum grant of $25,000. AB 123 (Committee on Budget) Page 2 of ? 3. Provides $18 million General Fund to increase the license-exempt rate from 60 percent to 65 percent of the family child care home rate, effective October 1, 2015. 4. Provides $44 million General Fund for a 4.5 percent increase to the Regional Market Rate, effective October 1, 2015. 5. Provides $61 million ($38 million Proposition 98 and $22.7 million General Fund) for a five percent increase to the Standard Reimbursement Rate, effective October 1, 2015. 6. Authorizes the Resource and Referral network to receive $300,000 in one-time federal Child Care and Development Block Grant funds to support data collection efficiency. 7. Provides a $10 million augmentation of the Foster Youth Services program and specifies that funds appropriated for the foster youth services program are intended to expand eligibility that aligns program requirements to reflect the establishment of the Local Control Funding Formula. 8. Eliminates funding to begin equalizing the provision of funds for education-related transportation services and the After School Education and Safety Program. Higher Education 1. Community Colleges (CCC) a. Provides $62.32 million to increase the number of full-time faculty at CCC. b. Provides $3 million on a one-time basis to support the administration of the Cal Grant B Access Award. c. Provides $155 million to implement the student equity plans, pursuant to Article 1.5 of Chapter 2 of Part 48 of Division 7 of Title 3 of the Education AB 123 (Committee on Budget) Page 3 of ? Code. d. Declares legislative intent that the Chancellor identifies one or more community college districts willing to use at least $5 million to provide a one-to-three match of state to private funds for the purpose of developing and providing education programs for incarcerated adults in prisons and jails, and the formerly incarcerated. 2. California State University (CSU) a. Removes $24 million for deferred maintenance. b. States that the CSU Item includes funds for the California DREAM Loan Program. 3. University of California (UC) a. Declares legislative intent that funds generated by an increase in the number of nonresident students enrolled in the 2015-16 academic year, and increases in nonresident tuition, as approved by the Regents on May 21, 2015, be used to support an increase in the number of resident students enrolled. b. Declares that if the Regents provide sufficient evidence that UC increased resident enrollment by at least 5,000 in the 2016-17 academic year, compared to the 2014-15 academic year, the Department of Finance must appropriate an additional $25 million to UC. AB 123 (Committee on Budget) Page 4 of ? c. Requires the Regents to report to the Legislature and the Department of Finance on how it is using funds to provide targeted student support services to increase system wide and campus four-year and six-year graduation rates, and two-year and three-year graduation transfer graduation rates of low-income and underrepresented students. d. Clarifies that the UC Item includes funds for the California DREAM Loan Program. 4. Provides $1,000,000 for the State Library, on a one-time basis, for a pilot program of the Career Online High School Program. Natural Resources 1. Shifts $2.8 million from the California Ocean Protection Trust Fund (Tidelands Oil Revenues) to the Environmental License Plate fund for support of the Ocean Protection Council and Fourth Climate Assessment. 2. Reduces funding to the Department of Parks and Recreation by $3 million, sustaining the Governor's reduction plan for the Environmental License Plate Fund. 3. Provides $678,000 for working drawings, and provides intent language for Border Field State Park that will be funded in phases in the future, and reduces budget year funding by $5.2 million. 4. Shifts $2.5 million from the California Ocean Protection Trust Fund (Tidelands Oil Revenues) to the General Fund for support of Marine Protected Areas. 5. Shifts $325,000 from the General Fund to the Lake Tahoe Conservancy Account, including language notwithstanding current law, for support of the Tahoe Regional Planning Agency Threshold Evaluation Report. 6. Removes budget bill language that requires the AB 123 (Committee on Budget) Page 5 of ? Department of Forestry and Fire Protection to return to the Legislature with options for procurement of helicopter replacements in the 2016-17 budget cycle. 7. Eliminates $8 million General Fund back-payments for the Payment In-Lieu of Taxes. 8. Provides $6 million for riparian restoration projects for Chollas Creek, and shifts funding from Proposition 1E to the Habitat Conservation Fund and Wildlife Conservation Board reappropriations. 9. Shift funding for the Los Angeles River opportunity acquisition from Proposition 1E to Proposition 40 and 84. 10. Eliminates $1.3 million from the Coastal Trust Fund that would have continued the Climate-Ready grant programs at the Coastal Commission, State Coastal Conservancy and Bay Conservation Development Commission. 11. Provides $1.6 million from State Parks and Recreation Fund for renovations to the Historic Governor's Mansion in Sacramento. 12. Makes various technical changes to reduce funding from Greenhouse Gas Emission Reduction and cap-and-trade auction revenues to the Air Resources Board and CalRecycle, to comport with actions in the budget. Housing 1. Provides $3.5 million General Fund for the Department of Housing and Community Development's Office of Migrant Services. Health and Human Services 1. Department of Health Care Services (DHCS) a. Eliminates various Medi-Cal rate increases that will be considered in a special session focused on funding sources for the state's Medi-Cal programs, providers of developmental disability services, and In-Home Supportive Services program. AB 123 (Committee on Budget) Page 6 of ? b. Eliminates funding to forgive the retroactive recoupment related to rate freezes pursuant to AB 97 for distinct-part nursing facilities, and funding to research a capped enrollment program for undocumented adults in the Medi-Cal program. c. Eliminates $1 million (of the $3 million included in the Conference Report) for the Caregiver Resource Centers. d. Includes provisional language specifying that grants to the Robert F. Kennedy Health Plan and LifeLong Medical Care will be funded by the Major Risk Medical Insurance Fund. e. Reduces funding for the implementation of the new federal Fair Labor Standards Act overtime rules (related to the Nursing Facility/Acute Hospital Waiver) to assume a start date of no sooner than October 1, 2015. 2. Department of Public Health a. Eliminates funding for the California Disease Prevention Program; the Lab Aspire Program and microbiologist, and Hepatitis C rapid testing kits. 3. Department of Aging a. Provides $1 million General Fund for the Long-Term Care Ombudsman Program. 4. Department of Developmental Services a. Eliminates rate increases for community-based services and regional centers operations that will be considered in a special session focused on funding sources for the state's Medi-Cal programs, providers of developmental disability services, and In-Home Supportive Services program. AB 123 (Committee on Budget) Page 7 of ? b. Includes provisional language to require the department to report to the legislative budget committees during the 2016-17 budget process, on its evaluation of the existing rate-setting methodologies for community-based services and supports for persons with developmental disabilities and the regional centers' operations budget core-staffing formula. c. Reduces funding for the implementation of the new federal Fair Labor Standards Act overtime rules to assume a start date of no sooner than October 1, 2015. 5. Department of Social Services a. Eliminates $46 million General Fund for a CalWORKs cost-of-living adjustment; $1 million General Fund to delay the CalWORKs welfare-to-work 24-month clock; and, $103 million General Fund for the repeal of the Maximum Family Grant. b. Provides a $15 million General Fund augmentation to the CalWORKs Housing Support Program. c. Provides an additional $15 million General Fund for foster parent recruitment and retention; and, includes provisional language that specifies that funds can be used for staffing to provide and improve direct services; for exceptional child needs; for child care for licensed foster parents, approved resource families, and relative caregivers; for intensive relative finding, engagement, and navigation efforts, among others. d. Includes provisional language to provide funding to fully offset the seven-percent reduction in In-Home Supportive Services hours. e. Eliminates $66 million General Fund for a Supplemental Security income/State Supplemental Payment (SSI/SSP) grant increase, and $3 million General Fund for the State Emergency Food Assistance Program. f. Provides $10 million General Fund and AB 123 (Committee on Budget) Page 8 of ? associated trailer bill language to provide grants to qualified nonprofit organizations to provide application services to persons residing in California who are eligible for, or to renew, Deferred Action for Childhood Arrivals (DACA) or Deferred Action for Parents of Americans and Lawful Permanent Residents (DAPA) status. Public Safety 1. Provides $11 million General Fund for Trial Court Funding for dependency counsel. 2. Reduces funding to the Department of State Hospitals for an expanded Restoration of Competency program by $6.1 million General Fund, and eliminates $1.2 million General Fund for positions necessary for the Inspector General to provide independent oversight over the State Hospitals and Developmental Centers. 3. Reduces funding for the Board of State and Community Corrections (BSCC) by $4 million General Fund for providing grants to local law enforcement agencies that are designed to improve community/peace officer relationships. 4. Provides $20 million General Fund to BSCC for local law enforcement activities and requires that law enforcement agencies receiving funding provide the state with data on the number of use-of-force incidents that result in hospitalization or death. 5. Eliminates $5 million in funding for the California Gang Reduction Intervention and Prevention Program. Fiscal Effect: Together with the Conference Report, adopted by the Legislature on June 15, 2015, this bill results in budgeted General Fund expenditures of $115.4 billion in 2015-16. Support: Unknown. Opposed: Unknown. AB 123 (Committee on Budget) Page 9 of ? Comments: This bill provides for various expenditure adjustments related to the Conference Report, and together with that bill, represents the Legislature's budget. -- END --