BILL ANALYSIS                                                                                                                                                                                                    Ó




           ----------------------------------------------------------------- 
          |SENATE RULES COMMITTEE            |                        AB 123|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |
           ----------------------------------------------------------------- 


                                    THIRD READING


          Bill No:  AB 123
          Author:   Committee on Budget  
          Amended:  6/16/15 in Senate
          Vote:     21 

          SENATE BUDGET AND FISCAL REVIEW COMMITTEE: Not available

          ASSEMBLY FLOOR: Not relevant

           SUBJECT:   Budget Act of 2015


          SOURCE:    Author


          DIGEST:  This bill contains provisions of the 2015-16 Budget  
          Act.


          ANALYSIS:  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.


          This bill 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,  








                                                                     AB 123  
                                                                     Page  2



              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.





            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  








                                                                     AB 123  
                                                                     Page  3



              funds for education-related transportation services and the  
              After School Education and Safety Program.


          Higher Education


            9)  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 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. 


            10)         California State University (CSU)


               e)     Removes $24 million for deferred maintenance.


               f)     States that the CSU Item includes funds for the  
                 California DREAM Loan Program.  










                                                                     AB 123  
                                                                     Page  4



            11)         University of California (UC)


               g)     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.


               h)     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. 


               i)     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. 


               j)     Clarifies that the UC Item includes funds for the  
                 California DREAM Loan Program.  


            12)         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 


            13)         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  








                                                                     AB 123  
                                                                     Page  5



              Protection Council and Fourth Climate Assessment.


            14)         Reduces funding to the Department of Parks and  
              Recreation by $3 million, sustaining the Governor's  
              reduction plan for the Environmental License Plate Fund. 


            15)         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.


            16)         Shifts $2.5 million from the California Ocean  
              Protection Trust Fund (Tidelands Oil Revenues) to the  
              General Fund for support of Marine Protected Areas.


            17)         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.


            18)         Removes budget bill language that requires the  
              Department of Forestry and Fire Protection to return to the  
              Legislature with options for procurement of helicopter  
              replacements in the 2016-17 budget cycle.


            19)         Eliminates $8 million General Fund back-payments  
              for the Payment In-Lieu of Taxes.


            20)         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.


            21)         Shift funding for the Los Angeles River  








                                                                     AB 123  
                                                                     Page  6



              opportunity acquisition from Proposition 1E to Proposition  
              40 and 84.


            22)         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.


            23)         Provides $1.6 million from State Parks and  
              Recreation Fund for renovations to the Historic Governor's  
              Mansion in Sacramento.


            24)         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


            25)         Provides $3.5 million General Fund for the  
              Department of Housing and Community Development's Office of  
              Migrant Services. 


          Health and Human Services 


            26)         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  
                                                                     Page  7



               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.


            27)         Department of Public Health


               f)     Eliminates funding for the California Disease  
                 Prevention Program; the Lab Aspire Program and  
                 microbiologist, and Hepatitis C rapid testing kits.


            28)         Department of Aging


               a)     Provides $1 million General Fund for the Long-Term  
                 Care Ombudsman Program.


            29)         Department of Developmental Services










                                                                     AB 123  
                                                                     Page  8



               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. 


               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.


            30)         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  








                                                                     AB 123  
                                                                     Page  9



                 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 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


            31)         Provides $11 million General Fund for Trial Court  
              Funding for dependency counsel.


            32)         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. 


            33)         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  








                                                                     AB 123  
                                                                     Page  10



              designed to improve community/peace officer relationships.


            34)         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. 


            35)         Eliminates $5 million in funding for the  
              California Gang Reduction Intervention and Prevention  
              Program.


          Comments


          This bill provides for various expenditure adjustments related  
          to the Conference Report, and together with that bill,  
          represents the Legislature's budget.


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

          According to the Senate Budget and Fiscal Review Committee,  
          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:   (Verified6/18/15)


          None received


          OPPOSITION:   (Verified6/18/15)









                                                                     AB 123  
                                                                     Page  11




          None received


          Prepared by: Mark Ibele /B. & F.R. / (916) 651-4103
          6/18/15 18:53:35


                                   ****  END  ****