BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 188|
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THIRD READING
Bill No: AB 188
Author: Assembly Budget Committee
Amended: 7/23/09 in Senate
Vote: 27 - Urgency
PRIOR VOTES NOT RELEVANT
SUBJECT : Budget Act of 2009: Department of Corrections
and
Rehabilitation
SOURCE : Author
DIGEST : Senate Floor Amendments of 7/23/09 delete the
prior version providing the necessary statutory changes in
the area of general government in order to enact
modifications to the 2009 Budget Act.
This bill now appropriates $645 million (General Fund [GF])
to the Department of Corrections and Rehabilitation to
augment the Budget Acts of 2007 and 2008 to cover
deficiencies for those years.
ANALYSIS : Specifically, this bill:
1.Appropriates $135.1 million (GF) to augment the 2007
Budget Act for the Department of Corrections and
Rehabilitation (CDCR) health care-related deficiencies,
and authorizes the transfer of up to $126.5 million (GF)
between the main CDCR budget support item and the CDCR
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health care item to account for increased health delivery
costs.
2.Appropriates $486.8 (GF) to augment the 2008 Budget Act
for CDCR health care-related deficiencies.
3.Requires Prison Health Care Services (PHCS) (the federal
health care receiver) to provide the Legislature written
reports, as specified, detailing actions taken and
planned to reduce and better manage medical contract
service costs in 2009-10.
4.Appropriates $23.3 million (GF) to augment the 2008
Budget Act for net inmate population and caseload
adjustments.
5.Requires any unencumbered funds to revert to the GF.
Rationale . This bill contains funding necessary to address
deficiencies in the 2007 and 2008 Budget Acts for CDCR.
These funds have already been spent. The appropriation in
this bill will not impact current budget difficulties.
The proposed funding in this bill has been approved by the
Department of Finance and the Joint Legislative Budget
Committee.
The Legislative Analyst's Office (LAO) notes, in a June 23,
2009 letter, that deficiency funding - or supplemental
appropriation, as deficiencies are known - is mean to cover
unanticipated expenses in advance of expenditure. The LAO
notes, in reference to the receiver's $486 million
deficiency request, that the request for additional funding
came after a large share of the requested funding had
already been spent. "As a result, the Legislature has
little choice at this point but to approve the supplemental
appropriation, since there is not other feasible
alternative at this time to address the increased
expenditures resulting from a court order regarding inmate
medical care."
The LAO's recommendations that any supplemental
appropriations for contract medical costs be restricted to
that purpose, that any unspent funds revert to the GF, and
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that the receiver provide detailed cost control plans to
the Legislature, are all included in this bill.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
1.Appropriates $135,064,000 (GF) to augment the 2007 Budget
Act as follows:
A. $128,706,000 for health care funding pursuant to
the federal court receivership over CDCR provision of
health care services. (Expenditures for prison
medical care in 2007008 were about $1.4 billion.)
(1) $82,868,000 to provide overtime funding for
health care guarding and transportation to provide
inmates specialty care outside of prisons in order
to comply with court mandates to provide
constitutional levels of medical care to all
inmates.
(2) $45,838,000 to augment pharmaceuticals and
medical supplies base funding.
B. $6,358,000 to implement September 2007 court
orders in the Armstrong v Schwarzenegger case, which
required CDCR to address issues related to disabled
inmates.
2.Appropriates $510,125,000 (GF) to augment the 2008 Budget
Act as follows:
A. $486,800,000 for contract medical services. This
appropriation, augmenting a contract medical services
base of $359 million, is directly related to the
Receiver's implementation of reforms determined
necessary to address the federal court's order to
raise inmate health care above what the court deemed
cruel and unusual punishment.
B. $23,325,000 for inmate population and caseload
adjustments.
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DLW:nl 7/23/09 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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