BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1497
                                                                  Page  1

          (  Without Reference to File  )

          CONCURRENCE IN SENATE AMENDMENTS
          AB 1497 (Budget Committee)
          As Amended  June 25, 2012
          Majority vote.  Budget Bill Appropriation Takes Effect 
          Immediately
           
           ----------------------------------------------------------------- 
          |ASSEMBLY:  |     |(March 22,      |SENATE: |23-14|(June 27,      |
          |           |     |2012)           |        |     |2012)          |
           ----------------------------------------------------------------- 
                    (vote not relevant)           
           
           Original Committee Reference:    BUDGET  

           SUMMARY  :  Amends the 2012-13 Budget Act, which was adopted on 
          June 15, 2012, in AB 1464.  With these adjustments contained in 
          this bill, the final budget package will provide $16.5 billion 
          in overall solutions to fully bridge the May Revision budget gap 
          of $15.7 billion, resulting in a reserve level of $816 million.  
          The amendments in this bill adjust the budget package to reflect 
          the final budget agreement.  Specifically,  this bill  :

           The Senate amendments  delete the Assembly version of this bill, 
          and instead:

          1)Make adjustments to the Proposition 98 funding assumptions to 
            reflect that the state will honor redevelopment pass-through 
            agreements before allocating property tax associated with 
            redevelopment to the appropriate local entities.

          2)Provide $50 million of growth funding for California Community 
            Colleges, in lieu of using these funds to pay deferrals.  This 
            funding is contingent upon passage of the November revenue 
            initiative.

          3)Provide $50 million in Proposition 98 funding for charter 
            school growth funding.

          4)Appropriate $18 million to the Department of Justice for 
            programs related to helping individuals impacted by the 
            National Mortgage Settlement.  

          5)Assume savings from the transition of children from Healthy 








                                                                  AB 1497
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            Families to the Medi-Cal program.

          6)Include an additional $30 million reduction to child care 
            funding to the level assumed in AB 1464.  This reduction would 
            apply as an across-the board reduction.

          7)Include additional savings associated with new policy changes 
            associated with CalWORKs, including:

             a)   Sunsetting of the short-term extensions beginning 
               January 1, 2013; 

             b)   Adding the new one-time exemption for families with a 
               child between 12 and 24 months; applying the 24 month 
               services time clock prospectively;

             c)   Adding an extension to the 24 month clock for up to 20% 
               of the caseload; and, 

             d)   Delaying the restoration of the Earned Income Disregard, 
               reduce the re-assessment of eligibility to certain cases 
               from semi-annually to annually. 

          1)Include budget provisions for High Speed Rail Authority 
            staffing.  This bill does not include funding for High Speed 
            Rail construction or planning.

          2)Change to control section language regarding the trigger 
            reductions that would occur if the ballot initiative that 
            provides temporary revenue increases does not pass.

          3)Update a control section associated with the 5% reduction to 
            employee compensation to reflect bargaining agreements that 
            have been reached between the administration and several 
            unions.

          4)Make various technical, scoring, and conforming changes to 
            various budget items.

           AS PASSED BY THE ASSEMBLY  , this bill expressed the intent of the 
          Legislature to enact statutory changes relating to the Budget 
          Act of 2012.

           COMMENTS  :  This bill amends the original budget bill to achieve 
          the expenditures levels and solutions assumed in the overall 








                                                                  AB 1497
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          budget package.  This process allows for adjustments to the 
          budget bill itself without the logistical challenges of 
          re-enacting the entire 777 page budget bill.  This amended bill 
          is sometimes called "Budget Bill Junior" because the bill is 
          derived from the original budget act and is shorter in length. 


           Analysis Prepared by  :   Christian Griffith / BUDGET / (916) 
          319-2099



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