BILL ANALYSIS �
SB 84
Page 1
SENATE THIRD READING
SB 84 (Budget and Fiscal Review Committee)
As Amended March 14, 2011
2/3 vote. Urgency
SENATE VOTE :Vote not relevant
SUMMARY : This bill makes various changes to state laws to
facilitate certain loans and transfers in the 2011-12 fiscal
year. Specifically, this bill :
1)Amends the 2010 Budget Act to allow for budgetary loans and
transfers to be made during the 2010-11 fiscal year. Under
the provisions of the bill, there would be added budget
language to allow for additional budgetary loans and transfers
to be made from special funds to the General Fund. The total
amount of additional borrowing that could occur during the
2010-11 fiscal year is $544.7 million, which amounts would
need to be repaid as necessary to support the activities
related to each of the affected funds. The funds affected by
the loans and transfers are:
-------------------------------------------------------
| Special Fund Loans and Transfers | Amount |
| | in |
| |millions |
|---------------------------------------------+---------|
|State Emergency Telephone Number Account | $28.0|
|---------------------------------------------+---------|
|Alcoholic Beverage Control Appeals Fund | 0.5|
|---------------------------------------------+---------|
|School Facilities Fee Assistance Fund* | 0.9|
|---------------------------------------------+---------|
|Housing Rehabilitation Loan Fund | 18.0|
|---------------------------------------------+---------|
|State Highway Account | 147.1|
|---------------------------------------------+---------|
|Renewable Resource Trust Fund | 20.0|
|---------------------------------------------+---------|
|California Used Oil Recycling Fund | 2.5|
|---------------------------------------------+---------|
|Electronic Waste Recovery and Recycling | 27.0|
|Account | |
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|---------------------------------------------+---------|
|Oil Spill Response Trust Fund | 40.0|
|---------------------------------------------+---------|
|Harbors and Watercraft Revolving Fund | 17.0|
|---------------------------------------------+---------|
|Off-Highway Vehicle Trust Fund | 21.0|
|---------------------------------------------+---------|
|Environmental Protection Trust Fund* | 1.2|
|---------------------------------------------+---------|
|State Water Pollution Control Revolving Fund | 3.0|
|Small Community Grant Fund | |
|---------------------------------------------+---------|
|Hazardous Waste Control Account | 13.0|
|---------------------------------------------+---------|
|Site Remediation Account | 1.0|
|---------------------------------------------+---------|
|Illegal Drug Lab Cleanup Account | 1.0|
|---------------------------------------------+---------|
|Cleanup Loans and Environmental Assistance | 0.5|
|to Neighborhoods Account | |
|---------------------------------------------+---------|
|Foster Family Home and Small Family Home | 3.0|
|Insurance Fund* | |
|---------------------------------------------+---------|
|California High-Cost Fund-B Administrative | 100.0|
|Committee Fund | |
|---------------------------------------------+---------|
|California Advanced Services Fund | 75.0|
|---------------------------------------------+---------|
|Public Utilities Commission Utilities | 25.0|
|Reimbursement Account | |
|---------------------------------------------+---------|
|TOTAL |$544.7 |
-------------------------------------------------------
* Indicates transfer.
The loans and transfers were proposed by the Governor to
replace the funding that was lost due to the cancellation of
the sale/lease-back of 11 major state office buildings. The
sale/lease-back was proposed by the previous administration
as a budget solution for the 2010-11 fiscal year, and was
designed to free-up the state's equity in the buildings to
provide one-time revenue for addressing the current budgetary
shortfall. This action would have resulted in ongoing lease
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costs and carried with it a higher implied interest rate than
the internal borrowing provided under this bill. The implied
interest rate for the state under the building
sale/lease-back is approximately 10%, whereas the internal
borrowing rate is roughly 2%. The bill also includes language
to allow for additional funding, as needed, for the Secretary
of State's Office to cover costs of a special election.
2)Adds an urgency clause allowing this bill to take effect
immediately upon enactment.
Analysis Prepared by : Mark Ibele / BUDGET / (916) 319-2099
FN: 0000066