BILL ANALYSIS
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CONFERENCE COMPLETED
Bill No: AB 1781
Author: Assembly Budget Committee
Amended: Conference Report No. 1
Vote: 27 - Urgency
PRIOR VOTES NOT RELEVANT
CONFERENCE COMMITTEE VOTE : 4-2, 7/14/08
AYES: Ducheny, Machado, Laird, Leno
NOES: Dutton, Laird
SUBJECT : 2008 State Budget
SOURCE : Author
DIGEST : Conference Amendments delete the prior version
of the bill expressing the intent of the Legislature to
enact changes relating to the Budget Act of 2008 and,
instead, provide for the specifics of the Budget Act of
2008-09. This conference report, combined with changes
proposed in AB 88, will comprise the Budget Act of 2008.
The Conference Report enacts the 2008 State Budget
NOTE: Refer to the Senate Budget and Fiscal Review
Committee analysis for details of the budget.
ANALYSIS : This bill provides for a balanced budget as
required by the State Constitution. The budget, also
modified by changes proposed in AB 88, is based on $105.3
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billion in available General fund resources, and contains
$103.4 billion in expenditures. The final General Fund
Reserve is approximately $1 billion. In terms of all funds
(General Fund, special funds, and select bond funds) the
proposed budget is approximately $140 billion.
Budget Process Overview
With the submission of the Governor's Budget, which is
required by January 10 of each year, the chair of the
Senate Budget and Fiscal Review and Assembly Budget
Committees each introduce a Budget Bill which contains
appropriations to finance the program levels proposed in
the Governor's budget. Throughout the spring, and with the
assistance of committee consultants and the Legislative
Analyst, who prepares a detailed analysis of the Governor's
budget, the fiscal committees of each house of the
Legislature hold hearings to determine if changes should be
made in the Governor's budget. At these hearings,
representatives from the state department whose budget is
being heard, the Department of Finance (DOF), the
Legislative Analyst, and the public may be called upon to
provide official testimony.
Changes desired by the Administration concerning events
occurring after the Governor's budget are submitted and
included in "Finance Letters" addressed to and considered
by the Senate Budget and Fiscal Review Committee and the
Assembly Budget Committee.
In mid-May, the DOF updates its estimates of current year
and budget year revenues, expenditures (including any final
Administration expenditure proposals) and surplus. This
provides the Legislature with the most current estimate of
resources that will be available for expenditure.
At the completion of the hearings, the Senate and the
Assembly passes its Budget Bill. A Conference Committee of
six legislators is chosen to receive differences in the two
bills and to incorporate a "Conference Committee Version"
into one of the bills. The bill is then sent to the floor
of both the Senate and the Assembly and, if passed by
two-thirds, is enrolled and sent to the Governor. If it is
not passed, a new Conference Committee is formed and the
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conference process is repeated. Sometimes it has become
necessary for the Senate Pro Tem, Assembly Speaker, Senate
Minority Leader, Assembly Minority Leader, and the Governor
to meet to resolve major issues. The Legislature is
required under the State Constitution to pass the Budget by
June 15th of each year.
Upon receipt of the Budget Bill, the Governor meets with
his advisors to make reductions or eliminate particular
items of expenditure (known as the item-veto). The
Governor then signs the Budget Bill and it becomes the
Budget Act. Under the State Constitution, the Governor
must sign the Budget by June 30th of each year. The
Legislature may then consider overriding any vetoes the
Governor has made and may do so by a two-thirds vote of
each house.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
DLW:cm 8/29/08 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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