BILL NUMBER: SB 15 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 19, 2011
AMENDED IN SENATE APRIL 25, 2011
INTRODUCED BY Senators DeSaulnier and Wolk
( Principal coauthor: Senator
Rubio )
(Principal coauthor: Assembly Member
: Bonilla coauthors:
Assembly Members : Bonilla and Huffman )
(Coauthors: Assembly Members Buchanan and Gordon)
DECEMBER 6, 2010
An act to amend Sections 13308 and 13337 of
Section 13308 of, and to amend, repeal, and add Section 13337
of, the Government Code, relating to the state budget.
LEGISLATIVE COUNSEL'S DIGEST
SB 15, as amended, DeSaulnier. State budget.
Existing law requires the Governor to submit to the Legislature,
within the first 10 days of each calendar year, a budget for the
ensuing fiscal year. Under existing law, the budget is required to
contain a complete plan and itemized statements of all proposed
expenditures and all estimated revenues of the state for the ensuing
fiscal year, together with a comparison with the actual revenues and
expenditures for the last completed fiscal year, the estimated
revenues and expenditures for the existing fiscal year, and the
budgeted revenues and expenditures for the next fiscal year. Existing
law further requires the Director of Finance to provide to the
Legislature, on or before May 14 of each year, an estimate of General
Fund revenues for the current fiscal year and the ensuing fiscal
year, any proposals to reduce expenditures to reflect updated revenue
estimates, and specified proposed adjustments to the Governor's
Budget.
This bill would instead require the budget submitted by the
Governor to contain itemized statements, provisional language,
performance measurement standards for state agencies and programs,
recommended state expenditures, and a projection of anticipated state
revenues, including revenues anticipated to be one-time revenues. In
addition, the bill would require the budget to contain an estimate
of the total resources available for the state expenditures
recommended for the budget year and the succeeding fiscal year, and
would further require the budget to contain a projection of
anticipated state expenditures and anticipated state revenues for the
3 fiscal years following the fiscal year succeeding the budget year,
along with budget-related plans and proposals for those 3 fiscal
years. In the event recommended expenditures exceed estimated
revenues, the Governor would be required to recommend reductions in
expenditures or the sources from which the additional revenues should
be provided and to include an estimate of the long-term impact that
the expenditure reductions or additional revenues will have on the
state economy. The Governor would also be required to submit with the
budget any legislation necessary to implement appropriations
contained in the budget, together with a 5-year capital
infrastructure and strategic growth plan. If the Governor's Budget
proposes to create a new state program or agency, or to expand the
scope of an existing state program or agency, resulting in a net
increase in state costs during the budget year or the succeeding
fiscal year, or proposes to reduce a state tax resulting in a net
decrease in state revenue in the budget year or the succeeding fiscal
year, the proposal would be required to be accompanied by a
statement identifying state program reductions or sources of
additional state revenue in an amount that is equal to or greater
than the net increase in state costs or net decrease in state
revenue. The bill would also require the Director of Finance to
provide to the Legislature, on or before October 15 of each year,
updated projections of state revenues and state expenditures for the
current fiscal year and for the ensuing fiscal year.
This bill would require the implementation of these provisions
commencing in the year 2015, or in an earlier year when it is
possible to do so and funding is provided therefor in the annual
Budget Act.
The bill would also state the intent of the Legislature to
establish an oversight process for evaluating and improving the
performance of all state programs and to establish a schedule of
review for all state programs, whether managed by a state or local
agency.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 13308 of the Government Code is amended to
read:
13308. (a) The Director of Finance shall provide to the
Legislature, on or before February 1 of each year, all proposed
statutory changes, as prepared by the Legislative Counsel, that are
necessary to implement the Governor's Budget, as described in
subdivision (a) of Section 13337.
(b) The Director of Finance shall provide to the Legislature, on
or before April 1 of each year, all proposed adjustments to the
Governor's Budget except as specified by subdivisions (c) and (d).
(c) The Director of Finance shall provide to the Legislature, on
or before May 1 of each year, all proposed adjustments to the
Governor's Budget in appropriations for capital outlay.
(d) The Director of Finance shall provide to the Legislature, on
or before May 14 of each year, all of the following:
(1) An estimate of General Fund revenues for the current fiscal
year and for the ensuing fiscal year.
(2) Any proposals to reduce expenditures to reflect updated
revenue estimates.
(3) All proposed adjustments to the Governor's Budget that are
necessary to reflect updated estimates of state funding required
pursuant to Section 8 of Article XVI of the California Constitution,
or to reflect caseload enrollment or population changes.
(e) The Commencing in the year
2015, or in any earlier year when it is possible to do so and funding
is provided therefor in the annual Budget Act, the Director of
Finance shall provide to the Legislature, on or before October 15 of
each year, updated projections of state revenues and state
expenditures for the current fiscal year and for the ensuing fiscal
year.
(f) The Director of Finance may authorize suspension for the
current fiscal year of any provision of this section not sooner than
30 days after notification in writing of the necessity therefor to
the chairperson of the committee in each house that considers the
State Budget and the Chairperson of the Joint Legislative Budget
Committee.
SEC. 2. Section 13337 of the Government Code is
amended to read:
13337. (a) Within the first 10 days of each calendar year, the
Governor shall submit to the Legislature a budget for both the
ensuing fiscal year, known as the budget year, and for the succeeding
fiscal year. The budget shall contain itemized statements,
provisional language, performance measurement standards for state
agencies and programs, recommended state expenditures, and a
projection of anticipated state revenues, including revenues
anticipated to be one-time revenue. The budget shall also contain an
estimate of the total resources available for the state expenditures
recommended for the budget year and the succeeding fiscal year. The
budget shall also contain a projection of anticipated state
expenditures and anticipated state revenues for the three fiscal
years following the fiscal year succeeding the budget year, and
budget-related plans and proposals for those three fiscal years. If,
for the budget year and the succeeding fiscal year, the recommended
expenditures exceed estimated revenues, the Governor shall recommend
reductions in expenditures or the sources from which the additional
revenues should be provided, or both. The recommendations shall
include an estimate of the long-term impact that expenditure
reductions or additional revenues will have on the economy of
California. Together with the budget, the Governor shall submit to
the Legislature any legislation necessary to implement appropriations
contained in the budget, accompanied by a five-year capital
infrastructure and strategic growth plan.
(b) The budget shall, in accordance with Chapter 2 (commencing
with Section 41200) of Part 24 of Division 3 of Title 2 of the
Education Code, include a section that specifies the percentages and
amounts of General Fund revenues that must be set aside and applied
for the support of school districts, as defined in Section 41302.5 of
the Education Code, and community college districts, as required by
subdivision (b) of Section 8 of Article XVI of the California
Constitution.
(c) If the Governor's Budget proposes to create a new state
program or agency, or to expand the scope of an existing state
program or agency, which would result in a net increase in state
costs during the budget year or the succeeding fiscal year, or
proposes to reduce a state tax, which would result in a net decrease
in state revenue in the budget year or the succeeding fiscal year,
the proposal shall be accompanied by a statement identifying state
program reductions or sources of additional state revenue, or both,
in an amount that is equal to or greater than the net increase in
state costs or net decrease in state revenue.
(d) The Governor, or the Department of Finance acting on his or
her behalf, shall make appropriate changes in the budget request to
reflect any modification in the organization or functions of state
government proposed under Article 7.5 (commencing with Section 12080)
of Chapter 1 of Part 2 prior to the passage of the budget.
(e) The Governor's Budget shall be prepared in accordance with
guidelines and instructions adopted by the Department of Finance.
(f) In order to provide meaningful comparisons, the Governor's
Budget shall be prepared in such a manner that the information
presented provides for such comparisons between the fiscal years.
(g) The Department of Finance shall submit to the committee in
each house that considers appropriations and to the Joint Legislative
Budget Committee copies of budget material submitted to it by
agencies pursuant to the provisions of Article 2 (commencing with
Section 13320).
(h) The Governor's Budget shall also include a coding structure
which indicates for each budget entity the categorization of
expenditures and revenues.
(i) Prior to the submission of the Governor's Budget to the
Legislature, the Department of Finance may conduct public hearings
regarding any portion of any budget.
(j) The Governor, or the Department of Finance acting on his or
her behalf, shall, at the same time the Governor's Budget is
submitted to the Legislature, submit to the Legislature copies of the
material for the purposes of subdivision (k).
(k) The Department of Finance shall develop a fiscal information
system which will provide timely and uniform fiscal data needed to
formulate and monitor the budget, including, but not limited to,
on-line inquiry capacity and the ability to simulate budget
expenditures and forecast revenues. This system may include, among
other things, data on encumbrances and expenditures by line item,
governmental unit, and fund source. The system shall also include
expenditures and encumbrances by program, as required. This system
shall also include a coding structure which indicates the
categorization of expenditures and revenues. This system and the data
shall be available to both the legislative and executive branches.
The system may contain separate programs accessible by only one
branch, designed to provide for distinct application of the data, but
the basic system data shall be available on an equal basis to both
the legislative and executive branches of government.
SEC. 2. Section 13337 of the Government
Code is amended to read:
13337. (a) (1) The budget required by the
State Constitution to be submitted by the Governor at each regular
session of the Legislature shall be submitted within the first 10
days thereof and shall contain a complete plan and itemized statement
of all proposed expenditures of the state provided by existing law
or recommended by him or her, and all of its institutions,
departments, boards, bureaus, commissions, officers, employees, and
other agencies, and of all estimated revenues, for the ensuing fiscal
year, together with a comparison, as to each item of revenues and
expenditures, with the actual revenues and expenditures for the last
completed fiscal year, the estimated revenues, and expenditures for
the existing fiscal year and the budgeted revenue and expenditures
for the next fiscal year.
(2) As soon as possible, if funding is provided therefor in the
annual Budget Act, in lieu of compliance with this subdivision, the
Governor shall comply with subdivision (a) of Section 13337 as added
by Section 3 of SB 15 of the 2011-12 Regular Session.
(b) The budget shall, in accordance with Chapter 2 (commencing
with Section 41200) of Part 24 of Division 3 of Title 2 of
the Education Code, include a section that specifies the percentages
and amounts of General Fund revenues that must be set aside and
applied for the support of school districts, as defined in Section
41302.5 of the Education Code , and community college
districts, as required by subdivision (b) of Section 8 of Article XVI
of the California Constitution.
(c) If the Governor's Budget proposes to create a new state
program or agency, or to expand the scope of an existing state
program or agency, which would result in a net increase in state
costs during the budget year or the succeeding fiscal year, or
proposes to reduce a state tax, which would result in a net decrease
in state revenue in the budget year or the succeeding fiscal year,
commencing with the first year for which compliance with this
subdivision is feasible and if funding is provided for this purpose
in the annual Budget Act, the proposal shall be accompanied by a
statement identifying state program reductions or sources of
additional state revenue, or both, in an amount that is equal to or
greater than the net increase in state costs or net decrease in state
revenue.
(c)
(d) The Governor, or the Department of Finance acting
on his or her behalf, shall make appropriate changes in the budget
request to reflect any modification in the organization or functions
of state government proposed under Article 7.5 (commencing with
Section 12080) of Chapter 1 of Part 2 prior to the passage
of the budget.
(d)
(e) The Governor's Budget shall be prepared in
accordance with guidelines and instructions adopted by the Department
of Finance.
(e)
(f) In order to provide meaningful comparisons, the
Governor's Budget shall be prepared in such a manner that the
information presented provides for such comparisons between the
fiscal years.
(f)
(g) The Department of Finance shall submit to the
committee in each house which that
considers appropriations and to the Joint Legislative Budget
Committee copies of budget material submitted to it by agencies
pursuant to the provisions of Article 2 (commencing with Section
13320).
(g)
(h) The Governor's Budget shall also include a coding
structure which indicates for each budget entity the categorization
of expenditures and revenues.
(h)
(i) Prior to the submission of the Governor's Budget to
the Legislature, the Department of Finance may conduct public
hearings regarding any portion of any budget.
(i)
(j) The Governor, or the Department of Finance acting
on his or her behalf, shall, at the same time the Governor's Budget
is submitted to the Legislature, submit to the Legislature copies of
the material for the purposes of subdivision (j)
(k) .
(j)
(k) The Department of Finance shall develop a fiscal
information system which will provide timely and uniform fiscal data
needed to formulate and monitor the budget, including, but not
limited to, on-line inquiry capacity and the ability to simulate
budget expenditures and forecast revenues. This system may include,
among other things, data on encumbrances and expenditures by line
item, governmental unit, and fund source. The system shall also
include expenditures and encumbrances by program, as required. This
system shall also include a coding structure which indicates the
categorization of expenditures and revenues. This system and the data
shall be available to both the legislative and executive branches.
The system may contain separate programs accessible by only one
branch, designed to provide for distinct application of the data, but
the basic system data shall be available on an equal basis to both
the legislative and executive branches of government.
(l) This section shall be repealed on January 1, 2015.
SEC. 3. Section 13337 is added to the
Government Code , to read:
13337. (a) Within the first 10 days of each calendar year, the
Governor shall submit to the Legislature a budget for both the
ensuing fiscal year, known as the budget year, and for the succeeding
fiscal year. The budget shall contain itemized statements,
provisional language, performance measurement standards for state
agencies and programs, recommended state expenditures, and a
projection of anticipated state revenues, including revenues
anticipated to be one-time revenue. The budget shall also contain an
estimate of the total resources available for the state expenditures
recommended for the budget year and the succeeding fiscal year. The
budget shall also contain a projection of anticipated state
expenditures and anticipated state revenues for the three fiscal
years following the fiscal year succeeding the budget year, and
budget-related plans and proposals for those three fiscal years. If,
for the budget year and the succeeding fiscal year, the recommended
expenditures exceed estimated revenues, the Governor shall recommend
reductions in expenditures or the sources from which the additional
revenues should be provided, or both. The recommendations shall
include an estimate of the long-term impact that expenditure
reductions or additional revenues will have on the economy of
California. Together with the budget, the Governor shall submit to
the Legislature any legislation necessary to implement appropriations
contained in the budget, accompanied by a five-year capital
infrastructure and strategic growth plan.
(b) The budget shall, in accordance with Chapter 2 (commencing
with Section 41200) of Part 24 of Division 3 of Title 2 of the
Education Code, include a section that specifies the percentages and
amounts of General Fund revenues that must be set aside and applied
for the support of school districts, as defined in Section 41302.5 of
the Education Code, and community college districts, as required by
subdivision (b) of Section 8 of Article XVI of the California
Constitution.
(c) If the Governor's Budget proposes to create a new state
program or agency, or to expand the scope of an existing state
program or agency, which would result in a net increase in state
costs during the budget year or the succeeding fiscal year, or
proposes to reduce a state tax, which would result in a net decrease
in state revenue in the budget year or the succeeding fiscal year,
the proposal shall be accompanied by a statement identifying state
program reductions or sources of additional state revenue, or both,
in an amount that is equal to or greater than the net increase in
state costs or net decrease in state revenue.
(d) The Governor, or the Department of Finance acting on his or
her behalf, shall make appropriate changes in the budget request to
reflect any modification in the organization or functions of state
government proposed under Article 7.5 (commencing with Section 12080)
of Chapter 1 of Part 2 prior to the passage of the budget.
(e) The Governor's Budget shall be prepared in accordance with
guidelines and instructions adopted by the Department of Finance.
(f) In order to provide meaningful comparisons, the Governor's
Budget shall be prepared in such a manner that the information
presented provides for such comparisons between the fiscal years.
(g) The Department of Finance shall submit to the committee in
each house that considers appropriations and to the Joint Legislative
Budget Committee copies of budget material submitted to it by
agencies pursuant to the provisions of Article 2 (commencing with
Section 13320).
(h) The Governor's Budget shall also include a coding structure
which indicates for each budget entity the categorization of
expenditures and revenues.
(i) Prior to the submission of the Governor's Budget to the
Legislature, the Department of Finance may conduct public hearings
regarding any portion of any budget.
(j) The Governor, or the Department of Finance acting on his or
her behalf, shall, at the same time the Governor's Budget is
submitted to the Legislature, submit to the Legislature copies of the
material for the purposes of subdivision (k).
(k) The Department of Finance shall develop a fiscal information
system which will provide timely and uniform fiscal data needed to
formulate and monitor the budget, including, but not limited to,
on-line inquiry capacity and the ability to simulate budget
expenditures and forecast revenues. This system may include, among
other things, data on encumbrances and expenditures by line item,
governmental unit, and fund source. The system shall also include
expenditures and encumbrances by program, as required. This system
shall also include a coding structure which indicates the
categorization of expenditures and revenues. This system and the data
shall be available to both the legislative and executive branches.
The system may contain separate programs accessible by only one
branch, designed to provide for distinct application of the data, but
the basic system data shall be available on an equal basis to both
the legislative and executive branches of government.
(l) This section shall become operative on January 1, 2015.
SEC. 3. SEC. 4. It is the intent of
the Legislature to establish an oversight process for evaluating and
improving the performance of all programs undertaken by the state, or
by local entities on behalf of the state, based on performance
standards established pursuant to statute. In furtherance of that
oversight process, it is the intent of the Legislature to establish,
within one year of the effective date of this act, a schedule of
review for all state programs, whether managed by a state or local
agency. The review schedule shall be designed so that the
relationship between similar state programs may be examined.