BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2175


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          Date of Hearing:  May 4, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          2175 (Jones) - As Amended March 18, 2016


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill eliminates the statutory transfer of $10 million per  
          year from the Off-HighwayVehicle  (OHV) Trust Fund to the  
          General Fund. 









                                                                    AB 2175


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          FISCAL EFFECT:


          Ongoing $10 million loss of General Fund revenue and  
          corresponding increase in OHV Trust Fund revenues.


          COMMENTS:


          1)Background and Purpose. In 2011-12, to help address the state  
            budget crisis, support from the General Fund for the non-OHV  
            state park system was reduced by $11million, annualized to $22  
            million in the following fiscal year. To achieve a  
            proportionate level of General Fund savings related to OHV  
            state parks, a 2011-12 budget trailer bill include language  
            transferring $10 million annually ($833,000 per month) from  
            the OHV Trust Fund to the General Fund. 


            The author argues that, since enactment of the above  
            diversion, the OHV program has lost $50 million, and contends  
            that, with the General Fund no longer in crisis, it is now  
            time to reverse this diversion of OHV funding.


          2)OHV Trust Fund Condition. In 2016-17, and absent this bill,  
            the OHV Fund, as proposed by Governor, will receive $112  
            million in repaid General Fund loans. Total revenues will be  
            $240 million, an increase of $60 million over the current year  
            amount. Spending from the fund is estimated at $90 million,  
            leaving a $150 million balance.


          Analysis Prepared by:Chuck Nicol / APPR. / (916)  
          319-2081










                                                                    AB 2175


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