BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   AB 199|
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                                 THIRD READING


          Bill No:  AB 199
          Author:   Assembly Budget Committee
          Amended:  6/30/09 in Senate
          Vote:     27 - Urgency

           
           PRIOR VOTES NOT RELEVANT  


           SUBJECT  :    Budget Act of 2009:  Public Social Services:   
          CalWORKS

           SOURCE  :     Author


           DIGEST :     Senate Floor Amendments  of 6/30/09 delete the  
          prior version of the bill expressing the intent of the  
          Legislature to enact statutory revisions relating to the  
          2009 Budget Act.  This bill now realigns a portion of  
          CalWORKs cash grant costs from the state to counties.  It  
          increases the county share of cost for CalWORKs cash grants  
          from 2.5 percent to 11 percent and provides State Sales Tax  
          revenue to reimburse counties for this additional cost.  

           ANALYSIS  :    

          This bill:
           
          1. Creates the "2009 CalWORKs Account" within the Local  
             Realignment Fund and requires counties to create an  
             identical fund at the local level.

          2. Specifies that in fiscal year 2009-10, the State  
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                                                                AB 199
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             Controller shall allocate $300 million to the 2009  
             CalWORKs Account before allocating sales tax revenues to  
             the Local Realignment Fund.

          3. Stipulates that in future fiscal years the State  
             Controller will deposit an amount equal to the  
             difference between the January 1, 2009 level of funding  
             for Vehicle License Fee (VLF) tax administration and the  
             level equal to the 1.91 percent of total VLF. 

          4. Increases, for fiscal year 2009-10, the county share for  
             CalWORKs grant payments from 2.5 percent of the total  
             cost to 11 percent of the total cost.

          5. Specifies that in future years, the Department of  
             Finance (DOF) shall adjust the county share to reflect  
             the amount of sales tax revenues deposited in the 2009  
             CalWORKs Account.

          6. Requires DOF, in conjunction with the Department of  
             Social Services, to develop a monthly allocation  
             schedule that determines each county's costs due to the  
             change of the share of cost.

          7. Finds that the administrative cost for administering the  
             VLF tax to be 1.91 percent of total VLF.

          8. Increases the share of VLF for the Local Revenue fund  
             from 74.9 percent to 88.6 percent.

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  Yes


          DLW:mw  6/30/09   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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