BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 2X8|
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THIRD READING
Bill No: AB 2X8
Author: Assembly Budget Committee
Amended: 2/17/10 in Senate
Vote: 21
ASSEMBLY FLOOR : Not relevant
SUBJECT : 2010-11 Budget: trailer language
SOURCE : Author
DIGEST : Senate Floor Amendments of 2/17/10 delete the
previous version of the bill expressing the intent of the
Legislature to enact statutory changes relating to the
Budget Act of 2009.
The bill now recognizes a number of General Fund savings
for the 2010 Budget Act that addresses the fiscal emergency
declared by the Governor in the following areas: (1) the
Conservatorship and Guardianship Program fees; (2) DNA
Penalty fee increase; (3) Department of Fish and Game; (4)
Immigration and Customs Enforcement commutations; (5)
Inmate Health Care Cost reductions; (6) Division of
Juvenile Justice Population reductions; (7) Suspension and
Deferral of non-Education mandates; (8) Information
Technology; (9) Governor's Executive Order S-01-10; (10)
delaying pre-payment of other post employment benefits; and
(11) anti-fraud activities in the Medi-Cal program.
ANALYSIS : This bill recognizes a number of General Fund
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savings in the 2010 budget Act for purposes of the fiscal
emergency special session declared by the Governor,
including provisions to address the following items:
1. Conservatorship and Guardianship Program Delay . This
bill recognizes $17 million in savings from continued
delay in the implementation of the Omnibus
Conservatorship and Guardianship Act of 2006.
2. DNA Penalty Fee Increase . This bill recognizes $45
million in reduced spending in 2010-11 due to the
increase in additional DNA penalty fees allowed under AB
3. The revenues generated by the increase in fees
assessed on convicted offenders will be deposited into
the state's DNA Identification Fund. The bill also
authorizes revenues deposited into this account to be
used for the operation of state forensic laboratories
and lease-revenue payments.
3. Department of Fish and Game Reduction . This bill
recognizes savings of $5 million in the 2010-11 fiscal
year as a result of an unallocated reduction to the
Department of Fish and Game. The reduction will be
allocated during the 2010 spring budget process based on
priorities identified in budget subcommittee.
4. Immigration and Customs Enforcement Commutations . This
bill recognizes savings of $182 million related to
commutation and deportation of certain illegal
immigrants housed in state prisons. This reflects a
continuation of savings assumed in the 2009-10 Budget
Act.
5. Inmate Health Care Cost Reductions . This bill
recognizes $811 million in cost reductions for inmate
health care costs in the 2010-11 fiscal year. This
level of reduction would bring average costs for inmate
health care services roughly equivalent to that of other
states such as New York.
6. Division of Juvenile Justice Population Reduction . This
bill recognizes savings of $48 million from policies
designed to reduce the population of wards housed in
state facilities.
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7. Suspension and Deferral of non-Education Mandates . This
bill recognizes savings of $228 million to reflect the
suspension of certain mandates and payment deferrals for
other mandates. Generally, these savings would accrue
by mirroring the 2009 Budget Act treatment of mandates.
Most mandates are suspended, with the exception of
mandates relating to law enforcement, election
procedures, open meeting requirements, and tax
collection. Payment of pre-Proposition 1A mandate
claims is deferred. The Local Recreational Background
Checks mandate and the Crime Victims' Rights mandate
were excluded from this savings for further analysis in
budget subcommittees.
8. Information Technology Savings . This bill recognizes
savings of at least $140 million to reflect information
technology and related savings achieved by state
agencies pursuant to the Governor's Reorganization Plan
No. 1 of 2009 (GRP No. 1). These savings build upon the
$100 million in ongoing General Fund savings in the
2009-10 Budget Act which are also reflective of the
implementation of the GRP No. 1.
9. Governor's Executive Order S-01-10: Five Percent
Personnel Savings . This bill recognizes savings of $449
million to reflect savings from implementing the five
percent reduction to departmental personnel costs
resulting from Governor Schwarzenegger's Executive Order
S-01-10. The Executive Order requires agencies and
departments to cap the size and cost of the workforce by
July 1, 2010, effectively reducing the size of the state
workforce by 8,915.7 personnel years. This bill also
states legislative intent that first priority for
achieving these personnel savings come from
administration to avoid negative impacts on the delivery
of direct services.
10. Governor's Executive Order S-01-10: Operating Expenses
and Equipment Savings . This bill recognizes savings of
$130 million to reflect the Operating Expenses and
Equipment savings resulting from Governor
Schwarzenegger's Executive Order S-01-10 (detailed in
comment 9).
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11. Delaying Pre-payment of Other Post Employment Benefits .
This bill recognizes savings of $98.1 million to reflect
budgetary workload savings from delaying prepayment of
other post employment benefits.
12. Additional Anti-Fraud Activities for Medi-Cal Program .
This bill recognizes savings of $28.3 million from
additional anti-fraud activities to be conducted by the
Department of Health Care Services.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
DLW:do 10/18/10 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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