BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 95|
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UNFINISHED BUSINESS
Bill No: SB 95
Author: Senate Budget and Fiscal Review Committee
Amended: 1/30/12
Vote: 21
PRIOR VOTES NOT RELEVANT
SUBJECT : Budget Act of 2011: State Internal Borrowing:
cash flow
SOURCE : Author
DIGEST : This bill increases the availability various
funds that could be used as borrowable resources for the
states General Fund for cash flow purposes.
Assembly amendments delete the Senate version of this bill
which expressed the intent of the Legislature to enact
budgetary statutory language and insert language concerning
budgetary cash flow.
ANALYSIS : 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.
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This bill:
1. Authorizes the Director of Finance to designate up to 15
percent 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
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.
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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.
9. Provides an appropriation to the Department of Finance
for administrative costs and as a budget bill will take
effect immediately pursuant subdivision (e) of Section
12 or Article IV of the California Constitution.
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.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
According to the Assembly Budget Committee, this 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.
DLW:do 1/31/12 Senate Floor Analyses
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SUPPORT/OPPOSITION: NONE RECEIVED
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