BILL ANALYSIS                                                                                                                                                                                                    






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          |SENATE RULES COMMITTEE            |                       SB 1315|
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                                   THIRD READING 


          Bill No:  SB 1315
          Author:   Bates (R) 
          Amended:  4/7/16  
          Vote:     21 

           SENATE GOVERNANCE & FIN. COMMITTEE:  6-0, 4/6/16
           AYES:  Hertzberg, Beall, Hernandez, Lara, Moorlach, Pavley
           NO VOTE RECORDED:  Nguyen

           SUBJECT:   Counties:  budgets


          SOURCE:    Author


          DIGEST:  This bill allows a county that fulfills specified  
          requirements to adopt a final budget without first voting on a  
          recommended budget.


          ANALYSIS:  Existing law requires counties to use a two-step  
          process when adopting an annual budget.  Specifically, a board  
          of supervisors must annually approve a recommended budget on or  
          before June 30, which provides interim authority for county  
          government spending during the period of time after the fiscal  
          year begins on July 1 and before the board of supervisors adopts  
          a final budget, which must happen on or before October 2.


          This bill:


          1)Allows a county, in lieu of approving a recommended budget  








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            pursuant to state law, to instead direct the publication of a  
            recommended budget for the purposes of conducting a budget  
            hearing without authorizing spending pursuant to the  
            recommended budget until the budget is adopted.


          2)Requires a board of supervisors that chooses to use this  
            bill's alternative budget adoption procedures to:


             a)   Make the recommended budget available to the public on  
               or before May 30.


             b)   Publish a notice on or before May 30 stating that the  
               recommended budget is available to members of the public  
               and specifying the time and place at which the board will  
               conduct a public hearing on the recommended budget.


             c)   Conduct a public hearing on the budget on or before June  
               20, but not fewer than 10 days after the recommended budget  
               is made available to the public.


             d)   Adopt the budget by resolution pursuant to the  
               requirements of specified statutes governing the adoption  
               of a county budget after the conclusion of the hearing and  
               not later than June 30.


          3)Requires that, on or before May 30 of any year in which a  
            board of supervisors uses the budget adoption procedures  
            enacted by this bill, the board must set forth a budget  
            adoption schedule that complies with specified statutory  
            requirements.


          Background

          A recommended county budget must be submitted to the board of  
          supervisors by either the county administrative officer or  
          county auditor, as designated by the board, on or before June 30  
          of each year.  After receiving the recommended budget, the board  







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          must consider it and make any revisions, reductions, or  
          additions.  On or before June 30 of each year the board must  
          vote to approve the recommended budget, including the revisions  
          it deems necessary for the purpose of having authority to spend  
          until the budget is adopted.  With specified exceptions, a board  
          may make revisions to the recommended budget until a final  
          budget is adopted.  

          On or before September 8 of each year, state law requires the  
          board to make the recommended budget available to the public and  
          publish a notice in a newspaper stating that:

           The recommended budget documents are available to members of  
            the public.

           On the date stated in the notice, not fewer than 10 days after  
            the recommended budget documents are available, and at a  
            specified time and place, the board will conduct a public  
            hearing on the recommended budget.

           Any member of the public may appear at the hearing and be  
            heard regarding any item in the recommended budget or for the  
            inclusion of additional items.

           All proposals for revisions must be submitted in writing to  
            the clerk of the board of supervisors before the close of the  
            public hearing.

          State law specifies the manner in which a board of supervisors  
          must conduct a hearing on the recommended budget and requires  
          that after the hearing's conclusion, the board must, by  
          resolution, adopt the budget as finally determined not later  
          than October 2 of each year.



          Orange County officials assert that it is not necessary to  
          require a county board of supervisors to vote on a recommended  
          budget if the county chooses to adopt a final budget before the  
          July 1 start of the fiscal year.  They want the Legislature to  
          allow a county board of supervisors that adopts a final budget  
          on or before June 30 to publish a recommended budget without  
          having to take an official action to approve it.








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          Comments


          Purpose of the bill.  In most counties, the recommended budget  
          that a board of supervisors must vote to approve annually by  
          June 30 governs county spending until a final budget is adopted  
          later in the fiscal year.  However, if a county adopts a budget  
          before the fiscal year begins, the initial recommended budget  
          never has any practical effect beyond serving as a baseline for  
          the board's deliberations on, and approval of, a final budget.   
          In counties that don't rely on a recommended budget for spending  
          authority, it doesn't make sense to require a separate board of  
          supervisors vote on the recommended budget.  This bill creates  
          an alternative budget approval process that allows a county  
          board of supervisors to publish a recommended budget, in lieu of  
          voting on it, if the board adopts a final budget by June 30.   
          This bill does not require any county to alter its current  
          budget process.


          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:NoLocal:    No


          SUPPORT:   (Verified4/7/16)


          California State Association of Counties
          Orange County
          Urban Counties of California


          OPPOSITION:   (Verified4/7/16)


          None received






          Prepared by:Brian Weinberger / GOV. & F. / (916) 651-4119







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