BILL NUMBER: AB 181	AMENDED
	BILL TEXT

	AMENDED IN SENATE  SEPTEMBER 4, 2009

INTRODUCED BY    Committee on Budget   (
  Evans (Chair), Arambula, Beall, Blumenfield,
Brownley, Caballero, Carter, De La Torre, Feuer, Hill, Huffman,
Monning, Ruskin, and Swanson   )  
Assembly Member   Bass 
    (   Principal coauthor:   Assembly Member
  De La Torre   ) 
    (   Principal coauthor:   Senator 
 Steinberg   ) 

                        FEBRUARY 2, 2009

    An act relating to the Budget Act of 2009.  
An act to amend and supplement the Budget Act of 2009 (Chapter 1 of
the 2009-10 Third Extraordinary Session) by amending Section 3.90 of,
and adding Section 3.91 to, that act, relating to the State Budget,
and declaring the urgency thereof, to take effect immediately. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 181, as amended,  Committee on Budget  
Bass  . Budget Act of 2009. 
   The Budget Act of 2009 (Chapter 1 of the 2009-10 Third
Extraordinary Session, as amended) made appropriations for the
support of state government for the 2009-10 fiscal year. The act,
among other things, authorized the Director of Finance to reduce
items of appropriation to reflect a reduction in employee
compensation achieved through the collective bargaining process or
through existing administrative authority in the total amounts of
$1,477,917,000 from General Fund items and $973,058,000 from items
relating to other funds.  
   This bill would reduce those amounts to $1,052,917,000 from
General Fund items and $658,058,000 from items relating to other
funds. In addition, the bill would authorize the Director of Finance
to reduce, with specified exceptions, items of appropriation for
state operations in the total amounts of $425,000,000 from General
Fund items and $315,000,000 from items relating to other funds. The
bill would make the director's authority to make those reductions
contingent on the imposition of no more than 2 furlough days per
month on state employees.  
   This bill would declare that it is to take effect immediately as
an urgency statute. 
   This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2009. 
   Vote:  majority   2/3  . Appropriation:
no. Fiscal committee:  no   yes  .
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    The Legislature hereby finds and
declares all of the following:  
   (a) The imposition by the Governor of a third furlough day each
month for state employees is unlikely to achieve its goal of saving
approximately four hundred twenty-five million dollars ($425,000,000)
from the General Fund in the 2009-10 fiscal year.  
   (b) The third furlough day will likely result in all of the
following:  
   (1) Revenue loss of up to three hundred sixty million dollars
($360,000,000) from the General Fund in the 2009-10 fiscal year.
 
   (2) Additional and significant loss of federal funds due to the
inflexible manner in which the furloughs have been implemented across
the whole of the executive branch without regard to fund source.
 
   (3) Diminished and delayed services to the public.  
   (4) Additional and unnecessary hardship on state employees who
have already endured a nearly 10-percent reduction in compensation
due to the imposition of two furlough days each month.  
   (c) It is the intent of the Legislature to eliminate the need for
the third furlough day by providing the Governor with the authority
to achieve, through other means, savings equivalent to those
originally anticipated to occur as a result of the implementation of
the third furlough day. 
   SEC. 2.    Section 3.90 of the   Budget Act
of 2009   is amended to read: 
  Sec. 3.90.  (a) Notwithstanding any other provision of this act,
each item of appropriation in this act, with the exception of those
items for the California State University, the University of
California, Hastings College of the Law, the Bureau of State Audits,
the Legislature (including the Legislative Counsel Bureau), and the
judicial branch, shall be reduced, as appropriate, to reflect a
reduction in employee compensation achieved through the collective
bargaining process for represented employees or through existing
administration authority and a proportionate reduction for
nonrepresented employees (utilizing existing authority of the
administration to adjust compensation for nonrepresented employees)
in the total amounts of  $1,477,917,000  
$1,052,917,000  from General Fund items and 
$973,058,000   $658,058,000  from items relating to
other funds. The Director of Finance shall allocate the necessary
reductions to each item of appropriation to accomplish the employee
compensation reductions required by this section.
   (b) The Department of Personnel Administration shall transmit
proposed memoranda of understanding to the Legislature promptly and
shall include with each such transmission estimated savings pursuant
to this section of each agreement.
   (c) Nothing in this section shall change or supersede the
provisions of the Ralph C. Dills Act (Chapter 10.3 (commencing with
Section 3512) of Division 4 of Title 1 of the Government Code).
   SEC. 3.    Section 3.91 is added to the  
Budget Act of 2009   , to read:  
  Sec. 3.91.    (a) Notwithstanding any other provision of
this act, the Director of Finance shall reduce items of appropriation
in this act for state operations in the 2009-10 fiscal year, with
the exception of those items for the Bureau of State Audits, the
Legislature (including the Legislative Counsel Bureau), the judicial
branch, and constitutional officers, in the total amounts of
$425,000,000 from General Fund items and $315,000,000 from items
relating to other funds.
   (b) The authority conferred upon the Director of Finance by this
section shall not become operative until Executive Order S-13-09 is
either rescinded or is amended to impose no more than two furlough
days each month on state employees, and shall remain operative only
while no more than two furlough days each month are imposed on state
employees. Nothing in this section confers any authority upon the
Director of Finance to modify or eliminate any other provision of
existing law.
   (c) Not later than February 15, 2010, the Director of Finance
shall report to the Chairperson of the Joint Legislative Budget
Committee and the chairpersons of the committees of each house of the
Legislature that consider appropriations the amount of reductions
made in each item of appropriation pursuant to this section. The
report shall include each specific reduction by department, agency,
and program; a description of programmatic effects; the number and
description of positions affected; and any other description
necessary to fully disclose the reduction's impact. 
   SEC. 4.    This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
 
   In order to prevent losses to the General Fund, and to avoid
diminished services to the public as well as hardship on state
employees as a result of the imposition of a third furlough day each
month, it is necessary that this act go into immediate effect. 

  SECTION 1.    It is the intent of the Legislature
to enact statutory changes relating to the Budget Act of 2009.