BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 1477|
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THIRD READING
Bill No: AB 1477
Author: Assembly Budget Committee
Amended: 8/24/12 in Senate
Vote: 21
SENATE BUDGET & FISCAL REVIEW COMMITTEE : 10-4, 8/23/12
AYES: Leno, Alquist, DeSaulnier, Hancock, Liu, Lowenthal,
Negrete McLeod, Simitian, Wolk, Wright
NOES: Emmerson, Fuller, Gaines, La Malfa
NO VOTE RECORDED: Anderson, Evans
ASSEMBLY FLOOR : Not relevant
SUBJECT : 2012-13 Budget Act: Trailer Bill
SOURCE : Author
DIGEST : This bill amends the Budget Act of 2012 by
revising various items of appropriation and making other
changes in the Budget Act of 2012, including the Childrens
Health and Human Services Special Fund, California Police
Activities League, California State University, University
of California Capital Outlay Projects Provisional Language,
Reduction for Employee Compensation, Public Utilities
Commission Special Fund Allocations, Renewable Resources
Trust Fund, Parks and Recreation Water and Wastewater
Projects, Parks and Recreation National Parks Agreements,
Vote-by-mail Ballots and Election Results Statements,
CalWORKs, and K-12 Education Mandate Reimbursements.
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Senate Floor Amendments of 8/24/12 add support to the
Department of Transportation and make changes to the
California State University provision.
ANALYSIS : The Senate Budget and Fiscal Review Committee
staff state, the majority of this bill make minor,
technical corrections to the Budget Act of 2012. This bill
also includes the following major changes to the Budget Act
of 2012:
1. Children's Health and Human Services Special Fund .
Appropriates an additional $183 million (Children's
Health and Human Services Special Fund) to the Healthy
Families Program for 2012-13. This additional
appropriation is scheduled across Item 4280 (Managed
Risk Medical Insurance Board, Healthy Families Program)
and reflects a total appropriation of $968.7 million
(total funds) for the Healthy Families Program. With
the additional $183 million, the total amount
appropriated within the Children's Health and Human
Services Special Fund will be $191.8 million.
The revenues for the Children's Health and Human
Services Special Fund are generated from the gross
premiums tax on Health Plans participating in the
Medi-Cal Managed Care Program as originally enacted in
AB 1422, Statutes of 2009. However, the authority for
this tax expired as of July 1, 2012.
Legislation to reauthorize this tax is proceeding this
session and AB 1479 has a contingency clause that the
additional $183 million (Children's Health and Human
Services Special Fund) appropriation is operative only
if revenues as specified are obtained for this purpose.
2. California Police Activities League . Appropriates
$123,000 to the California Police Activities League to
fund programs and services. The resources for this
appropriation were collected pursuant to a check-off
contribution option placed on the personal income tax
return.
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3. University of California Capital Outlay Projects
Provisional Language . Adds budget bill provisional
language that was inadvertently omitted from
appropriations of 1992 and 1996 General Obligation bond
funds for construction of Phase 2 Infrastructure
Improvements at UC Santa Cruz. The provisional
language, which has been included in the past several
budgets on GO-bond funded UC capital outlay projects,
authorizes expenditure of any savings as specified and
requires payment of prevailing wage rates.
4. Reduction for Employee Compensation . Amends existing
budget control section language to ratify the addenda
with statewide Bargaining Units 2 (CASE), 7 (CSLEA), and
10 (CAPS), which were submitted to the Joint Legislative
Budget Committee by July 1, 2012. These additional
addenda, similar to those ratified in the 2012 Budget
Act for other statewide bargaining units, specify that
state employees in Bargaining Units 2, 7, and 10 have
agreed to participate in the Personal Leave Program 2012
(PLP 2012) for the period from July 1, 2012, to June 30,
2012. These changes further implement Control Section
3.90 of the Budget Act of 2012, which achieves employee
compensation-related savings of $402 million GF.
5. Public Utilities Commission Special Fund Allocations .
Adjusts special fund allocations at the commission to
reflect revised fund balances and caseload projections.
6. Renewable Resources Trust Fund . Re-establishes an
annual audit of the fund by the Office of State Audits
and Evaluations that was inadvertently deleted in
previous legislation.
7. Parks and Recreation Water and Wastewater Projects .
Extends the encumbrance period for previously
appropriated water and wastewater projects. This will
allow the department to use these funds for projects to
keep parks from closing due to adverse actions caused by
water pollution violations.
8. Parks and Recreation National Parks Agreements .
Provides appropriation authority to the department
specifically for funding received by the federal
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government for parks where they have taken over full or
partial funding of operations.
9. Vote-by-mail Ballots and Election Results Statements .
Due to the closure of several Postal Distribution
Centers, the receipt of vote-by-mail ballots may be
negatively impacted. This provision would provide the
Department of Finance with $5 million to reimburse
County Registrars for costs related to changes in law
requiring registrars to count absentee ballots
postmarked on or before the date of an election.
10. CalWORKs . Makes a technical adjustment to the
cost-per-case with respect to employment services in the
CalWORKs welfare-to-work program. Funds this adjustment
through the early reversion of $80 million that was
appropriated for CalWORKs in the 2011-12 fiscal year.
11. K-12 Education Mandate Reimbursements . Adds
reimbursement funding for several small mandates, most
of which were inadvertently left out of the budget.
Amendments provide $1,000 each for five mandates.
12. Department of Transportation (Caltrans) . Provides
additional support for the (Caltrans) of $7.7 million
through expenditure adjustments to the State Highway
Account and additional reimbursements largely from local
government agencies for the funding of project
initiation documents (PIDs), which are preliminary
planning documents that include the estimated cost,
scope and schedule for the project. This reflects a
compromise regarding the funding of PIDs relating to
locally-sponsored highway capital projects on the state
highway system.
Includes Budget Bill language that: (a) exempts PID
development and oversight services reimbursed by local
government agencies from state overhead charges for cost
recovery; and, (b) directs Caltrans streamline the
cooperative work agreement process related to PIDs
development and oversight.
2. California State University (CSU). Authorizes the CSU
Chancellor to transfer balances from extension programs
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in order to also mitigate the impacts of reductions in
tuition fee revenues to state-supported instructional
programs. The August 22, 2012, amendments to this bill
authorized the CSU Chancellor to transfer balances from
extension programs in order to mitigate only the impacts
of GF reductions to state-supported instructional
programs regardless of whether the "trigger cuts"
authorized in subdivision (a) of Section 3.62 of the
Budget Act of 2012 were operational.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
DLW:k 8/25/12 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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