BILL ANALYSIS
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THIRD READING
Bill No: AB 88
Author: Assembly Budget Committee
Amended: 9/15/08 in Senate
Vote: 27 - Urgency
PRIOR VOTES NOT RELEVANT
SENATE FLOOR : 24-15, 8/29/08 (FAIL)
AYES: Alquist, Calderon, Cedillo, Corbett, Ducheny,
Florez, Kehoe, Kuehl, Lowenthal, Machado, Migden, Negrete
McLeod, Oropeza, Padilla, Perata, Ridley-Thomas, Romero,
Scott, Simitian, Steinberg, Torlakson, Vincent, Wiggins,
Yee
NOES: Aanestad, Ackerman, Ashburn, Battin, Cogdill, Cox,
Denham, Dutton, Harman, Hollingsworth, Maldonado,
Margett, McClintock, Runner, Wyland
NO VOTE RECORDED: Correa
SUBJECT : Budget Act of 2008 Budget Supplement to AB
1781
SOURCE : Author
DIGEST : This bill is the supplemental budget bill which
amends the Budget Bill (as proposed in AB 1781 Conference
Committee report). This bill, combined with AB 1781 will
serve as the Budget Act for the 2008-09 fiscal year.
ANALYSIS : According to the Senate Budget and Fiscal
Review Committee, the changes proposed will result in a
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final General Fund reserve of approximately $1.2 billion.
1. Office of Planning and Research . Increases funding by
$1.5 million General Fund for the Governor's Mentoring
Partnership program, the California Volunteer Matching
Network, and census efforts.
2. Office of Emergency Services :
A. Office of Gang Youth Violence Policy - Provides
an additional $900,000 for program operations (for a
total of approximately $1.2 million).
B. Includes $1.6 million GF (to match $1.6 million
federal funds) for Regional Operational Readiness in
order to increase effectiveness in emergency response
and management at the three OES regional offices.
C. Increases by $10 million for the California
Multijurisdictional Methamphetamine Enforcement Teams
(Cal-MMET) programs - total funding for the program
is $19.5 million - funding would be allocated on a
competitive basis.
3. Department of Justice . Provides $32 million GF in lieu
of increased fee reimbursements to support the state
forensic labs. Adds a reversion item in order to obtain
$17 million in unscored prior year GF savings. In
addition, allows for the transfer of $11.4 million to
the GF based on a pharmaceutical lawsuit settlement.
4. State Controller's Office . Provides $300,000 GF for
three positions for the Controller to ensure the
accuracy of redevelopment agency pass-through payment
calculations, estimated to benefit the GF by
approximately $98 million in the budget year.
5. Secretary of State Office . Appropriates $5 million GF
for costs associated with the November 2008 statewide
general election.
6. State Transit Assistance . Provides $406 million for
transit operators -- $100 million more than provided in
2007-08.
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7. State Air Resources Board . Provides $6 million from the
Motor Vehicle Account for the continued development of
the Hydrogen Highway, including zero-emission vehicle
infrastructure and incentives for zero-emission
vehicles.
8. Department of Forestry and Fire Protection . Restores
baseline GF for fire protection.
9. Department of Parks and Recreation . Includes
reappropriation for two parks grant projects (a) the
Otay Valley Regional Park, and (b) the City of San Jose
for the development of Japantown.
10. Department of Health Care Services . Includes a net
increase of approximately $12 million resulting from (a)
an increase of $221 million GF to address litigation
regarding Medi-Cal provider rates and (b) $209.5 million
GF in additional savings from delaying restoration of
Medi-Cal rates to March 1, 2009 (rather than September
1, 2008). Reduces $6 million GF associated with
Medi-Cal post-stabilization, this provision of language
is scheduled to sunset in two years. Includes budget
bill language, under the Medi-Cal Program, to require
the DHCS to provide the Legislature with options to
enhance the health care delivery system under Medi-Cal
for certain adults with disabilities or complex chronic
conditions. The intent of this language is to provide
Medi-Cal enrollees as specified with the ability to
select a medical home that provides primary and
preventive care as well as comprehensive and coordinated
care management. Also includes a reduction of
approximately $34 million for county administration of
the Medi-Cal, IHSS, and Food Stamps programs.
11. Department of Social Services . Reverses the
administration's proposal to exchange $447 million in
federal TANF funds for GF that is currently expended in
the following TANF-qualifying programs: Cal Grants ($223
million); Juvenile Probation ($152 million); Emergency
Assistance
Foster Care ($50 million); and increased Title XX transfer
to the Department of Developmental Services ($22
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million).
12. Department of Developmental Services . Reduces funding
by approximately $13 million GF associated with family
cost participation, purchase of service review /
parental responsibility, and savings assumed from
Proposition 10 funding availability for Early Start
programs.
13. Department of Corrections and Rehabilitation . Provides
$136 million in lease-revenue bonds for the Condemn
Inmate Complex at San Quentin Prison. Includes budget
bill language changes associated with Small Management
Yards. And incorporates additional GF savings of $10.4
million from the delayed implementation of the Northern
California Re-entry Facility (NCRF).
Furthermore, makes necessary budget bill changes to
account for savings related to jail credits - found in
the Public Safety trailer bill - these changes result in
$14 million GF savings in the budget year.
14. K-14 Education . As a result of various revenues
changes, reduces funding by approximately $858 million,
therefore eliminating funding for K-14 categorical
program cost-of-living adjustments (COLA) but retaining
approximately $284 million for a partial COLA for K-12
revenue limits and community college apportionments.
Overall K-14 Proposition 98 funding is approximately
$1.3 billion greater than the administration's May
Revise. Defers the 2008-09 prior year K-14 settle-up
payment. Increases Home-to-School transportation
funding by an additional $317 million from available
transit spillover funding. Provides K-12 with $350
million in property tax revenues as a result of
adjusting redevelopment agencies pass-through, this
provides a like amount of GF relief - consistent with an
LAO recommendation.
15. University of California / California State University .
Provides approximately $428 million in lease revenue
bonds for 11 capital outlay projects consistent with an
economic stimulus approach.
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16. Student Aid Commission . Augments the California Student
Opportunity and Access Program (Cal-SOAP) by an
additional $500,000 (for a total augmentation of $1
million), and specifies that the dollars be spent on
career-technical education outreach and public awareness
activities.
17. Department of Finance . Reinstates the Financial
Information System for California (FI$Cal) project -
this action affects, among others, the Department of
Personnel Administration, State Treasurer, State
Personnel Board, and State Controller's Office.
18. Public Utilities Commission . Restores $2.5 million to
the PUC's administrative budget that was removed due to
the implementation of the Institute for Climate
Solutions. The resources trailer bill includes language
requiring the PUC to return to the Legislature for
authorization to create the Institute for Climate
Solutions. In addition, includes $150 million loan from
various PUC accounts to the GF, consistent with various
other approved loans.
19. Local Subventions . Restores $31.5 million GF for
booking fees and accounts for restoration of the small
and rural sheriff's subvention. Fully restores funding
to the governor's budget levels for the COPS and JJCPA
subventions to local law enforcement.
20. Transportation Projects . Includes $250 million in
Proposition 1B funding for local streets and roads
consistent with an overall economic stimulus approach.
Of this amount, $187 million is directed to cities and
$63 million is directed to counties.
21. Control Section 4.07 . Changes the due date for the
Department of Finance Control Section 4.07 report to the
Legislature from February 15, 2009, to April 15, 2009.
Control Section 4.07 requires an unallocated budget
reduction of $50 million General Fund with savings to be
achieved primarily through position vacancies. The
report will detail how the savings were achieved.
22. Control Section 12.32 . Conforms Proposition 98 GF
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expenditures to final budget changes.
23. Control Section 35.20 . Adds this control section
dealing with accrual of tax payments, as recommended by
the Administration.
24. Control Section 35.50 . Modifies this control section to
conform to various revenue changes since the close of
Conference Committee.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
DLW:cm 9/15/08 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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