BILL ANALYSIS
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THIRD READING
Bill No: AB 183
Author: Assembly Budget Committee
Amended: 9/4/09 in Senate
Vote: 27 - Urgency
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 relating to education. This bill
now provides the necessary statutory changes in the area of
cash management and cash deferrals in order to ensure the
2009 Budget is fully implemented. Its purpose is to
provide additional cash flexibility and savings and will
assist the state in its attempts to get short-term revenue
anticipation note loans.
ANALYSIS :
Specifics of AB 183
1. University of California deferral . Defers $250 million
from February 2010 to no earlier than April 20, 2010,
but no later than May 31, 2010.
2. California State University deferrals . Defers (a) $250
million from February 2010 to no earlier than April 20,
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AB 183
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2010, but no later than
May 31, 2010; and (b) $150 million from March 2010 to no
earlier than May 1, 2010, but no later than May 31,
2010.
3. Community College deferral . Defers $100 million of the
Community College General Apportionment from March 2010
to May 2010.
4. Highway Users Tax Account (HUTA) deferrals . Revises
HUTA deferrals. Payments delayed in July and August
2009 to be paid in September 2009; payments for November
2009 through March 2010 to be paid on or within two
working days of April 28, 2010. Provides local
governments with certain specified flexibility to manage
cash within the deferral period. These deferrals shall
not apply to a county with a population of less than
40,000.
5. Supplemental Security Income/State Supplementary Program
(SSI/SSP) . Delays state SSI/SSP payments to the federal
government in February and March 2010 until after April
20, 2010, but no later than May 31, 2010.
6. Section 5924 of the Government Code . Section 5924
limits the annual amount of fees, costs, and other
similar expenses to be incurred by the state in
connection with letters of credit to two percent of the
amount of bonds to which the letters of credit pertains.
The amendments increase this cap to three percent until
June 30, 2013. This allows the state to take advantage
of changing market conditions.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
DLW:mw 9/8/09 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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