BILL ANALYSIS
AB 88
Page 1
( Without Reference to File )
CONCURRENCE IN SENATE AMENDMENTS
AB 88 (Budget Committee)
As Amended September 15, 2008
2/3 vote. Urgency
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|ASSEMBLY: | |(May 3, 2008) |SENATE: |28-12|(September 16, |
| | | | | |2008) |
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(vote not relevant)
Original Committee Reference: ED.
SUMMARY : Amends the Budget Act of 2008 (AB 1781) to make various
General Fund (GF) and special fund restorations and reductions
in accordance with Budget decisions made after the close of the
Budget Conference Committee.
The Senate amendments delete the Assembly version of this bill
and instead provide specific provisions as follows:
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 $1,647,000 from the Emergency Response Account (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; and
(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
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lawsuit settlement.
4)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.
5)Department of Parks and Recreation. Provides $3 million from
the Emergency Response Account for fire prevention activities
in high risk fire zones. In addition, 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.
6)Department of Health Care Services. Includes $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. 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.
7)Department of Social Services: Rejects 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 million).
8)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.
9)Department of Corrections and Rehabilitation. Provides $136
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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 conform to
changes in the corrections reform package - found in the
Public Safety trailer bill - these changes result in $174
million GF savings in the budget year (the original Conference
Committee estimate was $445 million in possible savings).
10)K-14 Education. As a result of various revenues changes,
reduces funding by approximately $1 billion, therefore
eliminating funding for K-14 cost-of-living adjustments
(COLA). However, overall K-14 Proposition 98 funding is
approximately $1.1 billion greater than the administration's
May Revise. Eliminates the 2008-09 prior year K-14 settlement
payment. Increases Home-to-School transportation funding by
an additional $317 million from available transit spillover
funding. Provides K-12 with $228 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 May Revise recommendation.
11)University of California / California State University.
Provides approximately $376 million in lease revenue bonds for
10 capital outlay projects consistent with an economic
stimulus approach.
12)Student Aid Commission. Augments the California Student
Opportunity and Access Program (Cal-SOAP) by an additional
$500,000 (for a total augmentation of $1 million), and
specifies that the dollars be spent on career-technical
education outreach and public awareness activities.
13) Department of Finance. Reinstates the Financial Information
System for California (FI$Cal) project - this action affects,
among others, the Department of Personnel Administration,
State Treasurer, State Personnel Board, and State Controller's
Office.
14) Public Utilities Commission. Restores $2.5 million to the
PUC's administrative budget that was removed due to the
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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.
15)Tax Relief Programs. Suspends the Senior Homeowner's Tax
Assistance program for 2-years and reduces the Senior Renter's
Tax Assistance Programs by 10 percent for 2-years for a total
of $56 million in General Fund savings.
16) Local subventions. Restores $31.5 million GF for booking
fees and accounts for restoration of the small and rural
sheriff's subvention.
17)Transportation projects. Includes $187 million in
Proposition 1B funding for local streets and roads consistent
with an overall economic stimulus approach.
18)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.
19)Control Section 35.20. Adds this control section dealing
with accrual of tax payments consistent with the
administration's proposal.
20) Control Section 35.50. Modifies this control section to
conform to various revenue changes since the close of
Conference Committee.
21)Declare this bill take effect immediately as an urgency
statute.
FISCAL EFFECT : Increases General Fund spending by a net amount
approximately $218 million and special fund spending by $187
million. (An additional $250 million of General Fund savings is
achieved through the Transportation Trailer bill - SB 1073).
AS PASSED BY THE ASSEMBLY , this bill required the state
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Department of Education to develop, maintain and distribute a
comprehensive list of Internet safety resources for use by local
educational agencies.
Analysis Prepared by : Christopher Woods / BUDGET / (916)
319-2099
FN: 0007791