BILL ANALYSIS
AB 1645
Page 1
ASSEMBLY THIRD READING
AB 1645 (Nestande)
As Amended April 20, 2010
Majority vote
BUDGET 19-0
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|Ayes:|Blumenfield, Adams, | | |
| |Beall, | | |
| |Bill Berryhill, Brownley, | | |
| |Buchanan, Caballero, | | |
| |Carter, Cook, Evans, | | |
| |Feuer, Fuller, Harkey, | | |
| |Huffman, Jeffries, | | |
| |Nestande, Ruskin, Silva, | | |
| |Swanson | | |
| | | | |
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SUMMARY : Requires the Director of Finance to submit a report
to the Joint Legislative Budget Committee, on February 1st each
year, regarding obligations of the state General Fund (GF).
Specifically, the bill :
1)Requires, on February 1st of each year, the Director of
Finance to submit a written report to the Chairperson of the
Joint Legislative Budget Committee, containing the following:
a) A list of loans made to the GF, including amounts and
due dates for repayment;
b) A list of GF obligations to pay deferred or suspended
expenditures or to transfer funds to another account,
including amounts and dates for payments or transfers;
c) A list of the state's key liabilities relating to debt,
infrastructure, retirement, and the budget, and other
liabilities that affect the state's financial health; and,
d) Recommendations for potential methods of retiring the
liabilities and obligations identified in the report.
EXISTING LAW :
AB 1645
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1)Requires the Governor to submit, within the first ten days of
each calendar year, a Budget for the ensuing fiscal year
(Article IV, section 12 of the California Constitution).
2)Requires the Director of Finance on August 1st of each year to
report to the Joint Legislative Budget Committee the balance
of any internal loans between state funds. On February 1st,
the Director of Finance is required to update that report, and
additionally include a summary of all obligations for future
payments of deferred or suspended expenditures.
a) Staff notes that this section refers only to loans and
obligations related to the 2001-2004 fiscal years but that
the Director of Finance in practice includes all years in
the report.
COMMENTS : This bill does not define "key liabilities," leaving
considerable flexibility on the part of the Department of
Finance (DOF) in identifying the state's future obligations.
This report will allow the DOF to consolidate existing
information into one place for easy access, and would provide a
starting point for discussions on the state's debt service and
the need for a long-term view of how to handle those costs.
Requiring the report to be submitted by February 1st of each
year will provide the information during Budget discussions,
allowing desired changes to be incorporated into the final
Budget proposal.
FISCAL EFFECT : Unknown
Analysis Prepared by : Adam Dondro / BUDGET / (916) 319-2099
FN: 0003948