BILL NUMBER:  AB 1497
  VETOED	DATE: 06/27/2012




EDMUND G. BROWN JR.     June 27, 2012
Governor

State of California
Governor's Office

I object to the following appropriations contained in Assembly Bill
1497.

Item 0250-101-0932-For local assistance, Judicial Branch.  I revise
this item by deleting a portion of Provision 15.

I am revising this item by deleting the last sentence of Provision
15, which would permit the Judicial Council to offset General Fund
reductions to the trial courts by redirecting additional funds from
within the Judicial Branch's budget.  I believe this language is
unnecessary as the Budget already provides the appropriate level of
funding, given available resources, for each segment of the
Judiciary.

"15. Notwithstanding any other provision of law, during the 2012-13
fiscal year, the Judicial Council shall allocate $385,000,000 of
reductions in funding contained in Schedule (1) as follows: (a) no
more than $235,000,000 shall be allocated to each trial court based
on each court's proportionate share of total statewide trial court
reserves, and (b) no more than $150,000,000 shall be allocated based
on each trial court's proportionate share of the 2011-12 fiscal year
Trial Court Trust Fund allocation. Upon approval of the Director of
Finance and no sooner than 30 days after notification in writing to
the committees of each house of the Legislature that consider the
State Budget, the Judicial Council may offset either of these
reductions through transfers from any other item within the Judicial
Branch's budget, with the exception of funding scheduled for the
Supreme Court, Courts of Appeal, and Habeas Corpus Resource Center."

Item 5180-111-0001-For local assistance, Department of Social
Services.   I reduce this item from $4,443,230,000 to $4,438,530,000
by reducing:

(2)     25.15-IHSS from $6,239,606,000 to $6,234,906,000.

I am reducing this item by $4,700,000 to eliminate an augmentation to
support administration of the In-Home Supportive Services (IHSS)
program.  This would align funding with the level I included in the
May Revision.  This reduction is necessary to provide for a prudent
General Fund reserve.  With this reduction, $134,223,000 General Fund
still remains for IHSS administration.

Item 5180-141-0001-For local assistance, Department of Social
Services.  I reduce this item from $717,265,000 to $694,265,000 by
reducing:

(1)     16.75-County Administration and Automation Projects from
$1,833,498,000 to $1,779,498,000.

(3)     Amount payable from the Federal Trust Fund (Item
5180-141-0890) from
-$1,068,900,000 to -$1,037,900,000.

I am reducing this item by $54,000,000 ($23,000,000 General Fund) on
a one-time basis in the County Administration and Automation Projects
program for administration of the CalFresh program.  This reduction
is necessary to provide for a prudent General Fund reserve.  With
this reduction, total funding of $1,464,752,000 still remains
budgeted to support CalFresh administrative costs.  This level of
funding for county administration is greater than what I proposed in
the May Revision.

Item 5180-141-0890-For local assistance, Department of Social
Services.  I reduce this item from $1,068,900,000 to $1,037,900,000.

I am reducing this item by $31,000,000 to conform to the action I
have taken in Item�5180?141?0001.

Item 6110-001-0890-For support of Department of Education.  I reduce
this item from $162,299,000 to $162,194,000 and by revising Provision
35.

I am reducing this item by $105,000 federal Migrant Education Funds
to eliminate indirect cost funding associated with the Bureau of
State Audits audit of the Migrant Education Program.  This amount
duplicates state operations funding already included in the
Department of Education's budget and is unnecessary.  With this
reduction, $600,000 remains to fund the audit.

I am revising Provision 35 to conform to this action as follows:

"35. Of the funds appropriated in this item, up to $705,000 $600,000
is provided in one-time federal Title I, Part C, carryover funds for
transfer to the State Audit Fund for the purpose of the Bureau of
State Audits to conduct an independent audit of state and local
implementation of the federally funded Migrant Education Program.
The audit report shall be submitted to the appropriate fiscal and
policy committees of each house of the Legislature and to the State
Department of Education (SDE) no later than March 1, 2013.
(a) The audit report shall include all of the following:
(1) A detailed audit of expenditures, fiscal practices, and fiscal
oversight at the SDE and in a sample of local Migrant Education
Program regions to determine whether there is compliance with
applicable state and federal laws, regulations, and administrative
policies.
(2) A detailed audit of the State Parent Advisory Council (SPAC)
makeup and activities at the state level and in a sample of local
Migrant Education Program regions to determine whether there is
compliance with applicable state and federal laws, regulations, and
administrative policies, and to assess whether the state
appropriately supports and engages migrant parents.
(3) A detailed review of how effectively the state organizes and
implements migrant education services at both the state and local
levels, which includes alignment between program goals and program
activities, outcomes from state-level contracts, effectiveness of
data collection structures and internal operations, and the efficacy
of the existing regional service delivery structure.
(4) Recommendations for how the state may address audit findings
related to the topics described in paragraphs (1), (2), and (3).
(5) A review of the extent to which any relevant findings raised in
recent federal reviews (since 2006) of the state's Migrant Education
Program pertaining to these and other topics have been addressed.  If
these findings have not been adequately addressed, provide
recommendations on how the state should address them to ensure the
delivery of services in the Migrant Education Program are efficient
and effective.
(b) The regions selected for the sample shall be sufficient in number
to reflect the diversity of local regions and program structures."

Item 6110-140-0001-For local assistance, Department of Education
(Proposition 98).  I reduce this item from $886,000 to $0 by
reducing:

(2)     20.90.001.020-California School Information Services
Administration from $2,184,000 to $1,298,000.

I am reducing this item by $886,000 to reflect the decrease in
workload at the California School Information System (CSIS)
associated with the completion of the California Longitudinal Pupil
Achievement Data System (CALPADS) project. The Budget acknowledges
the continued workload associated with CSIS's support of the CALPADS
maintenance phase, and therefore, continues to provide $7,136,000 to
ensure that CSIS is successful in meeting this objective.

Item 6110-194-0001-For local assistance, Department of Education.  I
reduce this item from $770,603,000 to $750,603,000 by reducing:

(1.5)     30.10.020-Child Care Services from $1,329,885,000 to
$1,309,885,000, and

(d)     30.10.020.007-Special Program, Child Development, Alternative
Payment Program from $194,031,000 to $174,031,000.

I am reducing $20,000,000 from voucher-based child care programs,
except for those serving current and former CalWORKs families.  While
I would have preferred to restructure rates and reform the program
to achieve savings, this across the board reduction in child care
slots is necessary to help bring ongoing expenditures in line with
existing resources.  With this reduction, a total of $1.3 billion in
non?Proposition 98 General Fund and federal funds remain to support
child care programs administered by the Department of Education.

Item 6110-488-Reappropriation, Department of Education.  I revise
this item by deleting Provision 8.

I am deleting Provision 8 which contains an augmentation of
$8,100,000 for the Advancement Via Individualized Determination
program because it creates additional cost pressures within
Proposition�98 and school districts are in the best position to
determine whether this program should be funded at the local level.

Item 6440-001-0001-For support of University of California.  I reduce
this item from $2,053,750,000 to $2,053,749,000 by reducing:

(1)      Support from $2,053,750,000 to $2,053,749,000,

and by deleting Provisions 5, 7, 8, 9, 10, 11, 12, 14, 15, and 17.

I am deleting Provisions 5, 7, 8, 9, 10, 11, and 12, because the
requirements contained in these provisions to expend funds on various
programs create unnecessary cost pressures within this item and are
unnecessarily restrictive.  Specifically, these provisions earmark
funding levels for the following programs administered by the
University of California (University): the Charles R. Drew Medical
Program, the California State Summer School for Mathematics and
Science, the Science and Math Teacher Initiative, the Program in
Medical Education, nursing programs, Acquired Immune Deficiency
Syndrome research, and the California Subject Matter Projects.
Eliminating these earmarks will give the University greater
flexibility to manage the $750 million permanent reduction in state
funding enacted in fiscal year 2011-12.

I am deleting Provision 14 because the requirement contained in this
provision to expend funds on retired annuitant health and dental
benefits creates unnecessary cost pressures and is unnecessarily
restrictive.

I am deleting Provision 15 because the requirement contained in this
provision that the University achieve an enrollment target of 209,977
resident full-time equivalent students creates unnecessary cost
pressures on this item and is unnecessarily restrictive.

Finally, I am reducing this item by $1,000 and deleting Provision 17
which would restrict the University's ability to contract out for
services rather than using in-house personnel, under specified terms.
  While I encourage the University to review the overall cost
effectiveness of its contracting out, this provision would
unnecessarily limit the University's ability to effectively manage
its operations.

Item 6610-001-0001-For support of California State University.  I
delete Provisions 5, 6, 9, and�10.

I am deleting Provisions 5 and 6 because the requirements contained
in these provisions to expend funds on various programs creates
unnecessary cost pressures and are unnecessarily restrictive.
Specifically, these provisions earmark funding levels for the Science
and Math Teacher Initiative and nursing programs administered by the
California State University (CSU).  Eliminating these earmarks will
give CSU greater flexibility to manage the $750 million permanent
reduction in state funding enacted in 2011-12.

I am deleting Provision 9 because the requirement contained in this
provision to expend funds on retired annuitant dental benefits
creates unnecessary cost pressures and is unnecessarily restrictive.

Finally, I am deleting Provision 10 because the requirement contained
in this provision that the CSU achieve an enrollment target of
331,716 resident full-time equivalent students creates unnecessary
cost pressures and is unnecessarily restrictive.

Item 7980-101-0001-For local assistance, Student Aid Commission.  I
reduce this item from $721,452,000 to $698,852,000 by reducing:

(1)     15-Financial Aid Grants Program from $1,638,628,000 to
$1,616,028,000,

and by revising Provisions 1 and 3.

I am reducing this item by $22,600,000 and amending subsections which
establish the maximum Cal Grant awards.  The amounts of these awards
are statutorily required to be in the Budget.  Specifically, I am
reducing the private institution award from $9,708 to $9,223, the
independent institution award from $9,708 to $9,223, the Cal Grant B
access award from $1,551 to $1,473, the Cal Grant C tuition and fee
award from $2,592 to $2,462, and the Cal Grant C book and supply
award from $576 to $547.  Each of these represent a 5-percent
reduction.  This action is necessary to align ongoing program
expenditures with existing resources.  This action will not eliminate
eligibility for any Cal Grant student.

I am revising subsections (a), (b), (c), (d), and (e) of Provision 3
to conform to this action as follows:

"(a) New and renewal recipients attending private institutions shall
be $9,708$9,223.
(b) New and renewal recipients attending independent institutions
shall be $9,708$9,223.
(c) All recipients receiving Cal Grant B access awards shall be
$1,551$1,473.
(d) All recipients receiving Cal Grant C tuition and fee awards shall
be $2,592$2,462.
(e) All recipients receiving Cal Grant C book and supply awards shall
be $576$547."

I am further revising subsections to eliminate costs resulting from
the Student Aid Commission's authority to issue new warrants for the
Assumption Program of Loans for Education and the State Nursing
Assumption Program of Loans for Education.  The number of awards are
statutorily required to be in the Budget.  The General Fund savings
that will begin in 2013-14 will help align ongoing program
expenditures with available resources into the future.

I am revising subsection (c) of Provision 1 to conform to this action
as follows:

"(c) The purchase of loan assumptions under Article 5 (commencing
with Section 69612) of Chapter 2 of Part 42 of Division 5 of Title 3
of the Education Code.  The Student Aid Commission shall issue 7,200
new warrants."

I am revising subsection (f) of Provision 1 to conform to this action
as follows:

"(f) The purchase of loan assumptions under the State Nursing
Assumption Program of Loans for Education (SNAPLE) pursuant to
Article 1 (commencing with Section 70100) of Chapter 3 of Part 42 of
Division 5 of Title 3 of the Education Code.  The Student Aid
Commission shall issue 100 new warrants."

With the above deletions, revisions, and reductions, I hereby approve
Assembly Bill 1497.





       EDMUND G. BROWN JR.
1