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  :    The Budget Act of 2009 (Chapter 1 of the  
                                                           CONTINUED





                                                                AB 181
                                                                Page  
          2

          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:

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

          2. Provides the Director of the Department of Finance  
             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  10/12/09   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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