BILL ANALYSIS                                                                                                                                                                                                    



                                                                AB 191
                                                                Page  1
        CONCURRENCE IN SENATE AMENDMENTS
        AB 191 (Budget Committee)
        As Amended  June 14, 2010
        2/3 vote.  Urgency
         
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        |ASSEMBLY:  |     |(May 4, 2009)   |SENATE: |32-0 |(June 17,      |
        |           |     |                |        |     |2010)          |
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                   (vote not relevant)

        Original Committee Reference:    BUDGET  

         SUMMARY  :  Makes substantive changes to cash payments for K-12 local  
        education agencies in 2009-10 and makes technical corrections  
        related to K-12 education and transportation cash deferrals enacted  
        two cash management measures in the 8th Extraordinary Session.  

         The Senate amendments  delete the Assembly version of the bill, and  
        instead:

         K-12 Education  :

         1) Require the California Department of Education (CDE), for  
           2009-10 only, to make apportionment payments to K-12 local  
           education agencies of up to $800 million in June 2010, from  
           payments otherwise deferred to July 2010. 

         2) Require that the current June-to-July apportionment payment  
           deferral to K-12 apportionments does not drop below $1.1 billion.  
            

         3) Make technical corrections to the hardship waiver process for  
           intra-year apportionment deferrals for local education agencies  
           in 2010-11.  

         Transportation :  
         
         1) Create an exemption process for the deferral of Highway User Tax  
           Account (HUTA) allocations to cities and counties, which would  
           apply when the deferral creates a hardship in making required  
           bond debt payments.  

         AS PASSED BY THE ASSEMBLY  this bill expressed the intent of the  
        Legislature to enact statutory changes relating to the Budget Act of  
        2009.








                                                                AB 191
                                                                Page  2
         
        FISCAL EFFECT  :  There are no state costs associated with the changes  
        in this bill.

         COMMENTS:   K-12 Education  .  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.  This bill also  
        contains technical corrections to bills enacted in the Eighth  
        Extraordinary Session [AB 5 X8 (Budget Committee), Chapter 1,  
        Statutes of 2009-10 Eighth Extraordinary Session and AB 14 X8  
        (Budget Committee), Chapter 10, Statutes of 2009-10 Eighth  
        Extraordinary Session].

         Transportation  .  Current law defers $50 million per month in 2010-11  
        from the HUTA allocation to local governments.  The deferral would  
        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.

         Analysis Prepared by  :    Misty Feusahrens / BUDGET / (916) 319-2099
                                                                 FN: 0004893