BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   AB 191|
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                                 THIRD READING


          Bill No:  AB 191
          Author:   Assembly Budget Committee
          Amended:  6/14/10 in Senate
          Vote:     27 - Urgency

           
           WITHOUT REFERENCE TO COMMITTEE OR FILE
           
           ASSEMBLY FLOOR  :  Not relevant 


           SUBJECT  :    State cash resources

           SOURCE  :     Author


           DIGEST  :     Assembly Amendments  deleted the prior version of  
          the bill which expressed the intent of the Legislature to  
          enact statutory revisions relating to the 2009 Budget Act.

          This bill makes substantive changes to cash payments for  
          K-12 local education agencies in 2009-10.  This bill also  
          addresses technical problems in the cash management bills  
          (ABX8 5 and ABX8 14) related to K-12 education and  
          transportation cash deferrals.

           ANALYSIS  :    This bill contains the following provision  
          related to state cash management.

           K-12 Education  .  Requires the Department of Education, for  
          2009-10 only, to make apportionment payments of up to $800  
          million in June 2010, from payments otherwise deferred to  
          July 2010, and further requires that the current  
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          June-to-July apportionment payment deferral does not drop  
          below $1.1 billion.  In so doing, this bill provides a cash  
          advance to K-12 local education agencies in June 2010 from  
          funds that are currently scored in 2009-10, but currently  
          paid in 2010-11.  There are no state costs associated with  
          these changes.

          This bill makes technical corrections to the hardship waive  
          process for intra-year apportionment deferrals for local  
          education agencies in 2010-11.

           Transportation  .  Creates an exemption process for the  
          deferral of Highway User Tax Account (HUTA) allocations to  
          cities and counties, which will apply when the deferral  
          creates a hardship in making required bond debt payments.   
          Current law defers $50 million per month in 2010-11 from  
          the HUTA allocations to local governments.  The deferral  
          will be in place from July 2010 through March 2011, with  
          the deferred amount fully repaid on or within two business  
          days of April 28, 2011.

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

          DLW:do  6/16/10   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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