BILL ANALYSIS
SB 12 X1
Page 1
( Without Reference to File )
SENATE THIRD READING
SB 12 X1 (Ducheny)
As Amended December 16, 2008
2/3 vote. Urgency
SENATE VOTE :Vote not relevant
SUMMARY : Makes various changes to the Budget Act of 2008.
Specifically, this bill :
1)Judicial Branch
Reduces the growth factor provided to the Judicial Branch from
2.8% to 1.4% for $35.1 million in General Fund (GF) savings in
the current fiscal year.
Transfers on a one-time basis $61 million from the Trial Court
Improvement Fund to the GF. These funds were reserved for
long-term projects to modernize trial court operations
throughout the state.
2)Office of Emergency Services
Eliminates the Internet Crimes Against Children task force and
the California Gang Reduction, Intervention and Prevention
initiative ( CalGRIP ) for combined savings of $30 million. GF
savings result from a larger Restitution Fund transfer to the
GF.
3)State Transit Assistance
Reduces funding for local transit operations from $306 million
to $150 million on an ongoing basis. GF savings result
because these Public Transportation Account funds are used to
support other mass transportation activities that would
otherwise be GF.
4)Department of Motor Vehicles fund shift
Associated with the local law enforcement provisions, reduces
Department of Motor Vehicles (DMV) expenditures from the
Vehicle License Fee Account by $150 million and increases DMV
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expenditures from the Motor Vehicle Account by $150 million.
5)Department of Parks and Recreation fund shift
Achieves GF savings of $15 million by shifting expenditures to
bond funds.
6)Defer loan repayment
Achieves GF savings of $6.7 million in 2008-09 by deferring
repayment of loans made from the Integrated Waste Management
Board. Other loan deferrals associated with the Integrated
Waste Management Board and the Public Utilities Commission can
be achieved administratively to bring total 2008-09 GF savings
to $31 million.
7)Regional Center funding reduction
Reduces funding for Regional Centers in the Department of
Developmental Services budget to achieve GF savings of $40
million. Savings would be achieved by: a) reducing the
Regional Center systems' Purchase of Services line item by
$55.7 million ($33.3 million GF) for 2008-09; and, b)
suspending several administrative and case management
requirements in existing law from December 1, 2008 to June 30,
2010, inclusive, in order to provide flexibility to each
Regional Center for the purpose of reducing their Operations
expenditures ($9.3 million ($6.5 million GF) in 2008-09).
8)SSI/SSP COLA
Suspends the pass-through of the Social Security Income (SSI)
/ State Supplementary Payment (SSP) federal cost-of-living
adjustment (COLA) effective March 1, 2009 for GF savings of
$157 million. Associated trailer bill language (SB 9 X4)
specifies continuation into 2009-10 for savings that year of
$472 million. SB 5 X4 would also suspend the June 2010 state
cost-of-living adjustment for 2009-10 savings of $26 million
GF.
9)Higher Education funding reduction
Achieves GF savings of $132 million by reducing the University
of California ($65 million), California State University ($66
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million), and Hastings College of the Law ($402,000). This
adjusted funding level, along with prior reductions, results
in a 10% across the board funding reduction. The reductions
are unallocated within each institution.
10) Williamson Act funding elimination
Eliminates the Budget appropriation to make open-space
(Williamson Act) subvention payments to counties and several
cities. These payments are made on the basis of acreage under
open-space contracts and offset, to varying degrees, the
property tax revenue losses to the participating counties and
cities due to reduced assessed value of the open-space lands.
The 2008-09 Budget Agreement reduced these subventions by 10%,
and the Budget Act appropriated $34.7 million from the GF to
make these payments. This bill eliminates the Budget Act
appropriation for 2008-09, and associated trailer bill
language (SB 6 X4) eliminates the back-up continuous
appropriation in order to achieve a savings of $37.4 million
annually, starting in 2008-09. To the extent (if any) that
local governments decide to cancel contracts as a result of
the elimination of the subvention, the state would realize
additional GF savings, starting in about four years as
assessed value on the non-renewed lands gradually is restored
to its full Proposition 13 value and increased property tax
revenues to K-14 Education reduce the state's GF education
funding obligation (assuming that either Test 2 or Test 3 is
in effect under Proposition 98 at that time).
11) Local Law Enforcement Funding
Reduces, overall, the funding for the Citizens Option for
Public Safety (COPS) program by $14.2 million in the current
fiscal year. Changes in this bill reduce GF spending for the
COPS program by $53.6 million GF. This reduction is partially
backfilled by other legislation that realigns $39.3 million in
vehicle license fee revenues to fund this program in the
current fiscal year.
Reduces, overall, the funding for the Juvenile Justice Crime
Prevention Act (JJCPA) by $14.2 million in the current fiscal
year. Changes in this bill reduce GF spending for the JJCPA
program by $53.6 million GF. This reduction is partially
backfilled by other legislation that realigns $39.3 million in
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vehicle license fee revenues to fund this program in the
current fiscal year.
Shifts state subvention to counties related to booking fees
from the GF to vehicle license fee revenues. Changes in this
bill reduce GF spending for booking fees by $15.8 million GF.
This reduction is completely backfilled by other legislation
that realigns $15.8 million in vehicle license fee revenues to
fund this subvention in the current fiscal year.
Reduces, overall, Juvenile Probation subventions allocated by
the Corrections Standards Authority by $20.2 million in the
current fiscal year. Changes in this bill reduce GF spending
for the Juvenile Probation Funding by $75.9 million GF. This
reduction is partially backfilled by other legislation that
realigns $55.7 million in vehicle license fee revenues to fund
this program in the current fiscal year.
Reduces funding for the Juvenile Camps subvention allocated by
the Corrections Standards Authority by $14.7 million GF.
12) State Employee Compensation
Adds Control Section 3.90 that reduces GF appropriations by
$240 million to be achieved through employee compensation
savings agreed to through the collective bargaining process.
States the intent of the Legislature that GF savings of $417
million also be achieved in the 2009-10 year.
13) Contingency Clause
Contains a contingency clause which states that the contents
of this bill are not enacted unless SB 1 X1 is enacted.
14) Declares this bill take effect immediately as an
urgency statute.
Analysis Prepared by : Christopher Woods / BUDGET / (916)
319-2099
FN: 0000015
SB 12 X1
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