BILL ANALYSIS �
SB 95
Page 1
SENATE THIRD READING
SB 95 (Budget and Fiscal Review Committee)
As Amended January 30, 2012
Majority vote. Budget Bill Appropriation Takes Effect
Immediately
SENATE VOTE :Vote not relevant
BUDGET 18-6
--------------------------------
|Ayes:|Blumenfield, Alejo, |
| |Allen, Bonilla, Brownley, |
| |Buchanan, Butler, Cedillo |
| |Chesbro, Dickinson, |
| |Feuer, Gordon, Huffman, |
| |Jeffries, Mitchell, |
| |Monning, Nestande, |
| |Swanson |
| | |
|-----+--------------------------|
|Nays:|Harkey, Jones, Logue, |
| |Mansoor, Morrell, Wagner |
| | |
--------------------------------
SUMMARY : The bill would increase the availability of various
funds that could be used as borrowable resources for the state's
General Fund for cash flow purposes. The state currently has a
cash management plan in place and exempts certain activities to
implement this cash management plan from the administrative
procedures act. This legislation is necessary to carry-out the
requirements of the 2011-12 Budget Act. Specifically, this
bill :
1)Authorizes the Director of Finance to designate up to 15% of
the cash balances in the Highway Users Tax Account,
Transportation Investment Fund, Motor Vehicle Fuel Account,
Transportation Revolving Account and the State Highway Account
to be available for contingency interim financing for critical
state highway and local road projects that would otherwise be
financed by General Obligation bonds.
2)Sanctions the Controller to receive and duly account for
SB 95
Page 2
moneys received by the Condemnation Deposits Fund, maintained
by the Treasurer's Office, to use such funds for cash flow
loans to the General Fund.
3)Allows the Controller to use funds in the Transportation
Investment Fund for cash flow loans to the General Fund as
long as such loans would not interfere with the purpose for
which the fund was created. Interest would be computed based
on the earnings rate of the fund.
4)Permits the Controller to use funds in the Motor Vehicle Fuel
Account of the Transportation Tax Fund for cash flow loans to
the General Fund as long as such loans would not interfere
with the purpose for which the fund and account were created.
Interest would be computed based on the earnings rate of the
fund.
5)Authorizes the Controller to use funds in the Transportation
Revolving Account of the State Transportation Fund for cash
flow loans to the General Fund as long as such loans would not
interfere with the purpose for which the fund and account were
created. Interest would be computed based on the earnings
rate of the fund.
6)Sanctions the Controller to use funds in the State Highway
Account of the State Transportation Fund for cash flow loans
to the General Fund as long as such loans would not interfere
with the purpose for which the fund and account were created.
Interest would be computed based on the earnings rate of the
fund.
7)Allows the Controller to use funds in the Highway Users Tax
Account of the Transportation Tax Fund for cash flow loans to
the General Fund as long as such loans would not interfere
with the purpose for which the fund and account were created.
Interest would be computed based on the earnings rate of the
fund.
8)Permits an exemption from the current prohibition against
encumbering moneys without specific statutory authorization,
with respect to moneys appropriated from the Highway Users Tax
Account, and moneys apportioned or transferred from that
account. Moneys from these funds would thus be able to be
encumbered in the event of a delayed budget.
SB 95
Page 3
9)Provides an appropriation to the Department of Finance for
administrative costs and as a Budget Bill will take effect
immediately pursuant to the California Constitution, Article
IV, Section 12(e).
EXISTING LAW : Currently, deposits in the funds named above must
be retained in those funds until dispersed for the purposes for
which the fund was established. Certain funds for roads and
highways are continuously appropriated, but existing law
generally provides that moneys in continuously appropriated
funds may not be encumbered unless the Legislature through
statute specifies that the moneys in the funds are appropriated
for encumbrances.
FISCAL EFFECT : The bill will have no budgetary impact but
facilitate and ease cash flow requirements within the budget
year by increasing the amount of borrowable resources from
internal funds. An estimated $865 million will become available
for General Fund borrowing for cash flow purposes during
2011-12.
COMMENTS : The bill includes various provisions that further
transportation goals and facilitate the completion of projects.
The retention of cash balances in these funds will ensure that
interim financing is available and the loosening of encumbrance
limitations for continuously appropriated funds will help
projects be completed in a timely fashion.
Analysis Prepared by : Mark Ibele / BUDGET/ (916) 319-2099
FN: 0003105