BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 1426|
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THIRD READING
Bill No: SB 1426
Author: DeSaulnier (D), et al
Amended: 5/26/10
Vote: 21
SENATE BUDGET & FISCAL REV. COMMITTEE : 10-0, 5/27/10
AYES: Ducheny, Dutton, Alquist, DeSaulnier, Huff, Leno,
Lowenthal, Liu, Padilla, Simitian
NO VOTE RECORDED: Ashburn, Cogdill, Harman, Negrete
McLeod, Wright
SUBJECT : State budget
SOURCE : Author
DIGEST : This bill proposes a two-year budget process
starting in 2011-12, as specified.
ANALYSIS : State Budget Process Overview . Under the
current State Constitution the Legislature has the power to
appropriate State funds and make midyear adjustments to
those appropriations. The annual State budget act is the
Legislature's primary method of authorizing expenses for a
particular fiscal year. Also, under the current State
Constitution the Governor is required to propose a balanced
budget by January 10 for the next fiscal year (beginning
July 1) and the Legislature is required to pass the annual
budget act by June 15. Under current law the Governor may
also reduce or eliminate specific appropriation items using
his/her "line-item veto" power and the Legislature may
CONTINUED
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override a veto with a two-thirds vote in each house.
However, once the budget has been approved by the
Legislature and the Governor, current law provides the
Governor with limited authority to reduce spending during
the year without legislative approval.
Proposed Law
This bill requires the Director of Finance provide the
Legislature updated projections of state revenues and state
expenditures on or before October 15 of each year.
This bill requires the Governor to submit a budget for both
the budget year and the succeeding fiscal year. The budget
shall contain provisional language, performance measurement
standards, and a projection of anticipated state revenues,
including revenues anticipated to be one-time revenue.
This bill also requires that the budget contain a
projection of state expenditures and revenues for the three
fiscal years following the fiscal year succeeding the
budget year and budget plans for those three fiscal years.
If the expenditures exceed estimated revenues in the budget
year or succeeding fiscal year, this bill requires that the
Governor recommend reductions in expenditures or the
sources of additional revenues, or both. The bill further
requires an analysis of the recommendations on the
long-term impact that expenditure reductions or additional
revenues have on the economy of California.
This bill also requires the Governor to submit to the
Legislature, annually with the budget, any legislation
needed to implement appropriations contained in the budget
and a five-year capital infrastructure and strategic growth
plan.
This bill requires that if the Governor's budget expands or
creates a new program or expand the scope of an existing
program, which results in an increase in state costs or
reduces a state tax in the budget year or succeeding year,
the proposal must be accompanied by a statement identifying
state program reductions or additional revenue that are
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equal or greater than the net increase in the state costs
of the new or expanded program or tax expenditure.
This bill states it is the intent of the Legislature to
establish an oversight process for evaluating and improving
the performance of all programs undertaken by the state, or
by local entities on behalf of the state, based on
performance standards established pursuant to statute. In
furtherance of that oversight process, it is the intent of
the Legislature to establish, within one year of the
effective date of this act, a schedule of review for all
state programs, whether managed by a state or local agency.
The review schedule shall be designed so that the
relationship between similar state programs may be
examined.
Related Legislation
Other two-year budget plan legislation this session include
SCA 2 (Wyland), SCA 25 (Denham), ACA 29 (Jeffries), SCA 2X
(Wyland), SCA 2XX , and ACA 1 X4 (Jeffries).
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
DLW:do 6/1/10 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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