BILL ANALYSIS �
SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW
Mark Leno, Chair
Bill No: AB 1485
Author: Committee on Budget
As Amended: June 13, 2012
Consultant: Peggy Collins
Fiscal: Yes
Hearing Date: June 14, 2012
Subject: Budget Act of 2011: Supplemental Appropriations
Summary: This bill appropriates $1.1 billion General Fund
to the Department of Corrections and Rehabilitation ($295.4
million), Department of Mental Health ($41.8 million),
Department of Health Care Services ($759.6 million), and
Mariposa and Lassen counties ($125,436).
Background: The Budget Act of 2011 appropriated specific
amounts from the General Fund for the support of state
government. This bill contains funding necessary to
address deficiencies in the 2011 Budget Act. The proposed
funding in this measure has been approved by the Department
of Finance (DOF) and reviewed by the Joint Legislative
Budget Committee (JLBC).
Proposed Law: This bill includes the following provisions:
1. Appropriates $295.4 million General Fund to augment
the 2011 Budget Act for the Department of Corrections
and Rehabilitation (CDCR) to address a shortfall in
the Receiver's Medical Services Program. Included in
this amount is:
a. $163.2 million to address the Receiver's
inability to realize the savings associated with
a 10 percent unallocated budget reduction
included in the 2011 Budget Act;
b. $86 million to address a structural
deficiency in the pharmaceutical budget; and
c. $46.2 million to address increased
custody costs related to the transportation of
prisoners to and from medical appointments and
supervision while at medical appointments.
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2. Appropriates $41.8 million General Fund to augment
the 2011 Budget Act for the Department of Mental
Health (DMH) associated with increased operating
costs. Included in the amount is:
a. $147.5 million associated with
patient-related activities (such as enhanced
observation of patients and admission
assessments) and costs associated with the
redirection of staff toward Civil Rights for
Institutionalized Persons Act (CRIPA)-related
activities. DMH and the United States Department
of Justice entered into a Consent Judgment in
2006 requiring state hospitals to implement
numerous corrective actions for CRIPA violations;
b. $13.9 million to address costs associated
with increased patient caseload related to the
Coleman lawsuit settlement which required
improved mental health services to CDCR
prisoners; and
c. $119.6 million in additional savings
associated with a decrease in the projected state
hospital caseload, implementation of the state
hospitals savings plan, and increased
reimbursements.
3. Appropriates $759.6 million General Fund to augment
the 2011 Budget Act for the Department of Health Care
Services (DHCS) for costs primarily associated with
unrealized savings anticipated by the 2011 Budget Act.
These include:
a. $346.8 million to address costs
associated with a court injunction barring the
implementation of provider rate reductions;
b. $511.1 million to address costs
associated with the failure to obtain federal
approval to implement copayments in the Medi-Cal
program; and
c. $98.3 million in various adjustments
within the Medi-Cal local assistance budget that
result in a net savings.
4. Appropriates $125,436 General Fund to counties
requesting reimbursement of qualified homicide trial
costs. These claims have been approved by the State
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Controller. Included in this amount is:
a. $6,508 to Mariposa County for the case of
"People v. Cary Stayner;" and
b. $118,928 to Lassen County for the cases
of "People v. Joanna Lynne McElrath" and "People
v. Robin Glenn James."
Fiscal Effect: Appropriates $1.1 billion General Fund in
the current year. This appropriation is assumed in the
proposed 2012 Budget Act. Any unencumbered funds will
revert to the General Fund.
Support: None on file
Opposed: None on file
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