BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AJR 42
                                                                  Page  1


          ASSEMBLY THIRD READING
          AJR 42 (Nestande)
          As Introduced  June 20, 2012
          Majority vote 

           VETERANS AFFAIRS    8-0                                         
           
           -------------------------------- 
          |Ayes:|Cook, Pan, Atkins, Block, |
          |     |Gorell,   V. Manuel       |
          |     |P�rez, Williams, Yamada   |
          |     |                          |
           -------------------------------- 
           SUMMARY  :  Opposes the budget presented by the United States Air 
          Force to the Senate and House of Representatives of the United 
          States.  Specifically,  this bill  :   

          1)Resolves that the Legislature joins the Riverside County Board 
            of Supervisors, the California National Guard Association, and 
            the National Guard Association of the United States in 
            opposition to the disproportional budget cuts as presented by 
            the United States Air Force as they adversely impact the 
            California Military Department and the Air National Guard and 
            jeopardize national security and homeland defense.

          2)Directs that the Chief Clerk of the Assembly transmit copies 
            of this resolution to each Senator and Representative from 
            California in the Congress of the United States and the author 
            for appropriate distribution.

           FISCAL EFFECT  :  Unknown.  This bill is keyed non-fiscal by the 
          Legislative Counsel.

           COMMENTS  :  It is likely that on January 2, 2013, the U.S. 
          defense budget will be drastically reduced. The Balanced Budget 
          and Emergency Deficit Control Act of 1985 set deficit targets. 
          That law stipulated that if spending exceeded the specified 
          targets, a process known as sequester would go into effect.  
          Last August, as part of a negotiated deal, Congress agreed on 
          $900 billion in spending cuts and the creation of the Joint 
          Select Committee on Deficit Reduction (the "supercommittee").  
          The supercommittee was directed to come up with $1.2 trillion 
          more in deficit cuts over a decade.  If the supercommittee 
          failed, or if Congress rejected the panel's recommendation, the 








                                                                  AJR 42
                                                                  Page  2


          automatic spending cuts would start January 2, 2013.
           
          Because of the failure of the congressional supercommittee to 
          agree on a deficit reduction plan, the 2011 Budget Control Act 
          automatically cuts about $500 billion from the defense budget. 
          These cuts fall on top of $487 billion in reductions. 

          Whether or not a strategy will emerge to avoid sequestration and 
          if not, what the effects of sequestration will be are 
          speculative at this point.  However, sending a strong message 
          and taking a position of vigilance and concern about the 
          Department of Defense budget is wise in the face of so much 
          uncertainty.


           Analysis Prepared by  :    John Spangler / V.A. / (916) 319-3550


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