BILL ANALYSIS                                                                                                                                                                                                    



                                                                    SB 1315


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          Date of Hearing:  June 15, 2016


                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT


                           Susan Talamantes Eggman, Chair


          SB  
          1315 (Bates) - As Amended April 7, 2016


          SENATE VOTE:  37-0


          SUBJECT:  Counties:  budgets.


          SUMMARY:  Authorizes an alternative budget process for counties  
          that adopt a final budget by June 30.  Specifically, this bill:   



          1)Allows a county board of supervisors (BOS) to direct the  
            publication of a recommended budget for the purpose of  
            conducting a budget hearing without authorizing spending,  
            pursuant to the recommended budget until the budget is  
            adopted, subject to the following conditions:



             a)   On or before May 30, the BOS shall make the recommended  
               budget available to the public;



             b)   On or before May 30, the BOS shall publish a notice  
               stating that the recommended budget is available to members  








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               of the public, and that the BOS will conduct a public  
               hearing on the recommended budget, including the time and  
               place of that hearing;



             c)   On or before June 20, but not fewer than 10 days after  
               the recommended budget is made available to the public, the  
               BOS shall conduct the public hearing on the recommended  
               budget; and,



             d)   After the conclusion of the hearing on the recommended  
               budget, and not later than June 30, the BOS shall adopt the  
               budget by resolution, pursuant to the requirements of the  
               County Budget Act that govern the adoption of a final  
               budget, as specified.



          2)Requires, on or before May 30 of each year in which a BOS  
            utilizes the alternative budget procedures outlined above, the  
            BOS to set forth a proposed budget adoption schedule that  
            complies with the requirements of 1), above.


          EXISTING LAW requires counties to use a two-step process when  
          adopting an annual budget: a BOS 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 July 1 and before the BOS  
          adopts a final budget, which must occur by October 2.


          FISCAL EFFECT:  None


          COMMENTS:  








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          1)Bill Summary.  This bill provides an alternative procedure  
            counties may use in their budget process.  It allows counties  
            to direct the publication of a recommended budget in order to  
            hold a budget hearing without authorizing spending pursuant to  
            the recommended budget until a final budget is adopted.   
            Counties that elect this procedure must meet the following  
            conditions:
             a)   Make the recommended budget available to the public by  
               May 30;



             b)   Publish a notice by May 30 stating that the recommended  
               budget is available to members of the public, and that the  
               BOS will conduct a public hearing on the recommended  
               budget, including the time and place of that hearing;



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



             d)   Adopt the budget by resolution, pursuant to the County  
               Budget Act, after the public hearing on the recommended  
               budget and no later than June 30.
            Counties that elect this procedure must also set forth a  
            proposed budget adoption schedule that complies with the  
            requirements outlined above.


            This bill is sponsored by the County of Orange.










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          2)Author's Statement.  According to the author, "As a result of  
            existing law, the Board of Supervisors must adopt the CEO's  
            recommended budget before the budget hearing, hold the budget  
            hearing, and then adopt the final budget.  While this process  
            may work for some counties who do not adopt their budget until  
            after June 30th, the current state process places the Board in  
            jeopardy of voting for items they may later oppose.   
            Additionally, the Board is left with no option to direct  
            publication of a recommended budget before initial review  
            rather than a required vote.  Streamlining the county budget  
            procedures is needed, while not removing a Board's authority  
            or responsibility to consider and approve a county's budget as  
            required under the County Budget Act.



          3)Background.  Current law, the County Budget Act, requires  
            counties to approve a recommended budget by June 30 to govern  
            county spending until a final budget is approved no later than  
            October 2.  This process works for most counties.  However,  
            some counties approve their final budget before June 30.  In  
            these cases, the requirement to formally approve a recommended  
            budget can be redundant and confusing.  This bill offers an  
            optional, alternative procedure for counties that adopt their  
            final budget no later than June 30.



          4)Arguments in Support.  The County of Orange, sponsor of this  
            bill, writes, "Government Code Section 29064 of the County  
            Budget Act requires a board of supervisors to first approve by  
            majority vote a recommended budget in order to set a  
            'baseline' before considering, revising and approving a final  
            budget.  This bill gives a board the option to direct  
            publication of a recommended budget before initial review  
            rather than a required vote, which may provide counties with  
            the flexibility to ultimately streamline county budget  
            procedures.  Nothing in this bill removes a board's authority  
            or responsibility to consider and approve a county's budget as  








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            required under the County Budget Act."



          5)Arguments in Opposition.  None on file.
            


            


          REGISTERED SUPPORT / OPPOSITION:




          Support


          County of Orange [SPONSOR]


          California State Association of Counties


          Urban Counties of California




          Opposition


          None on file




          Analysis Prepared by:Angela Mapp / L. GOV. / (916)  








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          319-3958