BILL ANALYSIS �
SB 84
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SENATE THIRD READING
SB 84 (Budget and Fiscal Review Committee)
As Amended March 17, 2011
Majority vote
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 :
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.
Analysis Prepared by : Mark Ibele / BUDGET / (916) 319-2099
FN: 0000066