BILL ANALYSIS
SB 3 X1
Page 1
( Without Reference to File )
SENATE THIRD READING
SB 3 X1 (Ducheny)
As Amended December 18, 2008
Majority vote
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. However, provides the Judicial
Branch the flexibility to transfer a lesser amount from the
Trial Court Improvement Fund and instead transfer funds from
either the Modernization Fund or the Court Facilities Trust
Fund to achieve the total $61 million transfer.
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.
Eliminates funding for various local assistance programs
resulting in savings of $23.9 million. Programs that will be
eliminated as a result of this reduction include Vertical
Prosecution Block Grants, Rural Crime Prevention, California
Multi-jurisdictional Methamphetamine Enforcement Teams, High
Technology Theft Apprehension Program, Sexual Assault Felony
Enforcement Teams, and California Gang Suppression.
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
SB 3 X1
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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
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 $28.7
million. Savings would be achieved by: a) reducing the
Regional Center systems' Purchase of Services line item by
$40.4 million ($24.1 million GF) for 2008-09; and, b)
suspending several administrative and case management
requirements in existing law from February 1, 2009 to June 30,
2010, inclusive, in order to provide flexibility to each
Regional Center for the purpose of reducing their Operations
expenditures ($6.6 million ($4.6 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 April 1, 2009 for GF savings of
$117.8 million. Associated trailer bill language (SB 5 X1)
specifies continuation into 2009-10 for savings that year of
$471 million. SB 5 X1 would also suspend the June 2010 state
cost of living adjustment for 2009-10 savings of $26 million
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GF.
9)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 (SB7 X1) 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).
10) Local Law Enforcement Funding
Reduces, overall, the funding for the Citizens Option for
Public Safety (COPS) program by $17.7 million in the current
fiscal year. Changes in this bill reduce GF spending for the
COPS program by $44.6 million GF. This reduction is partially
backfilled by other legislation that realigns $26.9 million in
vehicle license fee revenues to fund this program in the
current fiscal year.
Reduces, overall, funding for the Juvenile Justice Crime
Prevention Act (JJCPA) by $17.7 million in the current fiscal
year. Changes in this bill reduce GF spending for the JJCPA
program by $44.6 million GF. This reduction is partially
backfilled by other legislation that realigns $26.9 million in
vehicle license fee revenues to fund this program in the
current fiscal year.
Reduces, overall, Juvenile Probation subventions allocated by
the Corrections Standards Authority by $25.1 million in the
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current fiscal year. Changes in this bill reduce GF spending
for the Juvenile Probation Funding by $63.3 million GF. This
reduction is partially backfilled by other legislation that
realigns $38.2 million in vehicle license fee revenues to fund
this program in the current fiscal year.
11) Corrections
Reduces the budget for the California Department of
Corrections and Rehabilitation by $3.2 million to reflect
additional savings from implementing a corrections package
that will reduce the inmate and parolee populations. This
package includes: a) changes to credits that inmates earn; b)
changes to the parole system that would allow specified
non-violent, non-serious, non-sex offenders to be discharged
from parole after six months of continuous clean time; and, c)
updating the threshold for certain property crimes to reflect
inflation.
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
Includes clause making this bill contingent on the chaptering
of AB 2 or SB 2 X1; and AB 9 or SB 9 X1.
Analysis Prepared by : Christopher Woods / BUDGET / (916)
319-2099
FN: 0000049