BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   AB 181|
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                                 THIRD READING


          Bill No:  AB 181
          Author:   Bass (D), et al
          Amended:  9/4/09 in Senate
          Vote:     27 - Urgency

           
          WITHOUT REFERENCE TO COMMITTEE

           PRIOR VOTES NOT RELEVANT 
           

           SUBJECT  :    Budget Act of 2009 

           SOURCE  :     Author


           DIGEST  :     Senate Floor Amendments  of 9/4/09 delete the  
          prior version of the bill creating a new Department of  
          Resources, Recycling, and Recovery, and which became a  
          subject of another bill.  This bill now makes necessary  
          modifications to the 2009 Budget Act (SB 1 [Ducheny],  
          Chapter 1, Statutes of 2009-10, Third Extraordinary  
          Session; and AB 1 [Evans], Chapter 1, Statutes of 2009-10,  
          Fourth Extraordinary Session).  This bill amends the Budget  
          Act in order to address the budget gap for the 2009-10  
          fiscal year while avoiding the need to furlough state  
          employees a third day per month.  It provides the Director  
          of the Department of Finance with the authority to achieve  
          savings levels equivalent to those assumed in the 2009-10  
          budget without furloughing state employees more than two  
          days per month. 

           ANALYSIS  :    
                                                           CONTINUED





                                                                AB 181
                                                                Page  
          2


          This bill:

          1. Decreases the total amount of employee compensation  
             reductions the Director of the Department of Finance  
             (DOF) can make to General Fund (GF) and other fund (OF)  
             items of appropriation in the 2009-10 Budget by $425  
             million and $315 million, respectively.

          2. Provides the Director of DOF authority to make  
             equivalent reductions (to amounts identified above in  
             #1) to items of appropriation for state operations  
             provided the Governor does not order state employees to  
             take more than two furlough days per month during the  
             2009-10 fiscal year.

          3. Exempts the judicial branch, the legislative branch  
             (including the Legislative Counsel Bureau),  
             constitutional officers, and the Bureau of State Audits  
             from the reduction authority described above in #2.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          DLW:mw  9/8/09   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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