BILL ANALYSIS �
SB 1020
Page 1
SENATE THIRD READING
SB 1020 (Budget and Fiscal Review Committee)
As Amended June 25, 2012
Majority vote. Budget Bill Appropriation Takes Effect Immediately
SENATE VOTE :Vote not relevant
Summary : Provides an overall financing structure for the 2011 Public
Safety Realignment. The funding structure includes the creation of
accounts and rules that govern the flexibility of counties to transfer
monies between accounts. The bill also directs the allocation of
funding among accounts, including the allocation of growth funding.
Proposed Law. The 2011 Realignment legislation provided for a
temporary financing structure for the 2011-12 fiscal year only. This
legislation enacts a permanent financing structure for the 2011
Realignment, including account structures, funding allocations among
accounts and counties, allocations of available growth funding, and
various other issues. Specifically, this bill
1)Creates Account Structure in State Treasury. This bill amends the
current account structure created in the Local Revenue Fund 2011
within the State Treasury and directs the transfer of all remaining
funds in the original funds to designated successor funds.
Specifically, the bill abolishes all of the original accounts in the
Local Revenue Fund 2011 except for the Mental Health Account. The
bill also creates and designates permanent successor accounts. The
bill creates three main accounts within the Local Revenue Fund; the
Support Services Account, the Law Enforcement Services Account, and
the Sales and Use Tax Growth Account.
The Support Services Account includes the Protective Service
Subaccount and Behavioral Health Subaccount and this bill directs
the deposit of funds from the original subaccounts into the new
subaccounts and special accounts as follows:
-----------------------------------------------------------
| Original Subaccount | Successor Subaccount |
|------------------------------+----------------------------|
|Adult Protective Services | Protective Services |
|Subaccount | Subaccount |
|------------------------------+----------------------------|
|Foster Care Assistance | |
|Subaccount | |
SB 1020
Page 2
|------------------------------+----------------------------|
|Foster Care Administration | |
|Subaccount | |
|------------------------------+----------------------------|
|Child Welfare Services | |
|Subaccount | |
|------------------------------+----------------------------|
|Adoptions Subaccount | |
|------------------------------+----------------------------|
|Adoption Assistance Program | |
|Subaccount | |
|------------------------------+----------------------------|
|Child Abuse Prevention | |
|Subaccount | |
-----------------------------------------------------------
-----------------------------------------------------------
| Original Subaccount | Successor Subaccount |
|------------------------------+----------------------------|
|Drug Court Subaccount | Behavioral Health |
| | Subaccount |
|------------------------------+----------------------------|
|Nondrug Medi-Cal Substance | |
|Abuse Treatment Services | |
|Subaccount | |
|------------------------------+----------------------------|
|Drug Medi-Cal Subaccount | |
|------------------------------+----------------------------|
|Women and Children's |Women's and Children's |
|Residential Treatment |Residential Treatment |
|Services Subaccount |Services Special Account |
| | |
-----------------------------------------------------------
The successor Women's and Children's Residential Treatment Services
Special Account is created as a special account within the
Behavioral Health Subaccount. The Support Services Account also
includes the creation of a new County Intervention Support Services
Subaccount.
The Law Enforcement Services Account has the following Subaccounts
and this bill directs the deposit of funds from the original funds
into the new subaccounts and special accounts as follows:
SB 1020
Page 3
------------------------------------------------------------
| Original Fund | Successor Subaccount |
|-------------------------------+----------------------------|
|Trial Court Security Account |Trial Court Security |
|-------------------------------+----------------------------|
|Local Community Corrections |Community Corrections |
|Account |Subaccount |
|-------------------------------+----------------------------|
|Local Law Enforcement Services |Enhancing Law Enforcement |
|Account |Activities Subaccount |
|-------------------------------+----------------------------|
|District Attorney and Public |District Attorney and |
|Defender Account |Public Defender Subaccount |
|-------------------------------+----------------------------|
|Juvenile Justice Account |Juvenile Justice Subaccount |
|-------------------------------+----------------------------|
|Youthful Offender Block Grant |Youthful Offender Block |
|Subaccount |Grant Special Account |
|-------------------------------+----------------------------|
|Juvenile Reentry Grant |Juvenile Reentry Grant |
|Subaccount |Special Account |
| | |
------------------------------------------------------------
The successor Youthful Offender Block Grant Special Account and
Juvenile Reentry Grant Special Account are both created as special
accounts within the Juvenile Justice Subaccount. The Vehicle
License Fee revenues are deposited directly in Enhancing Law
Enforcement Activities Subaccount.
This bill creates the Sales and Use Tax Growth Account in the Local
Revenue Fund 2011. Within this account is the Support Services
Growth Subaccount and the Law Enforcement Services Growth
Subaccount. The Support Services Growth Subaccount contains two
special accounts, the Protective Services Growth Special Account and
the Behavioral Health Services Growth Special Account. The Law
Enforcement Services Growth Subaccount contains four special
accounts, as follows: Trial Court Security Growth Special Account;
Community Corrections Growth Special Account; District Attorney and
Public Defender Growth Special Account; and, Juvenile Justice Growth
Special Account.
There is also created in the Enhancing Law Enforcement Activities
Subaccount an Enhancing Law Enforcement Growth Special Account where
SB 1020
Page 4
any vehicle license fee revenues above $489.9 million are deposited.
As of September 15, 2012, all of the funds in both the original
funds and subaccounts are deposited in the successor subaccounts and
special account.
2)Directs Creation of County Account Structure. This bill directs the
county treasurer to amend the current account structure created in
the County Local Revenue Fund 2011. The account structure mirrors
the subaccount and special account structure in the state fund, but
does not direct the creation of the County Intervention Support
Services Subaccount. This bill also directs the creation of a
Support Services Reserve Subaccount in the Support Services Account.
The bill directs the creation of a Contract Special Account within
the Protective Services Subaccount for designated counties for the
funding of multi-state or statewide contracts. The bill also
directs the creation of a Local Innovation Subaccount within the Law
Enforcement Services Account. Starting in 2015-16 the funds
deposited in this account will be able to be used more flexibly for
eligible public safety related activities.
This bill requires only the counties of Alameda, Los Angeles, Marin,
San Diego, San Francisco, and San Joaquin to create a County Women
and Children's Residential Treatment Services Special Accounts
within their Behavioral Health Subaccount.
As of September 15, 2012, all of the funds in the county original
funds and subaccounts are deposited in the county successor
subaccounts and special accounts and the original funds and
subaccounts are abolished. The accounts mirror those created in the
State Treasury with the aforementioned exceptions.
3)Transferability Between Subaccounts in Support Services Account.
This bill authorizes the counties to allocate up to 10% between
subaccounts in the Support Services Account. The 10% is based on
the amount deposited in the subaccount in the previous year with the
lowest balance. The authorization to make this transfer must occur
in a regularly scheduled public hearing and must be based on the
most cost effective use of available resources to maximize client
outcomes. Any reallocations made shall only be in effect for the
fiscal year in which the allocation was made and shall not be
considered a permanent funding allocation or a permanent funding
source for any program or service receiving the reallocation. These
SB 1020
Page 5
transfers must be documented annually to the State Controller and
reported to the Legislature. This bill allows counties authorized
to operate an integrated and comprehensive county health and human
services system to not withstand the transferability rules set up in
this bill.
4)Use of Support Services Reserve Account. This bill authorizes a
county's board of supervisors to reallocate funds from the
Protective Services Subaccount or Behavioral Health Subaccount, or
both to the Support Services Reserve Subaccount. The amount of
these transfers may not exceed 5% of the total funds allocated to
the Protective Services Subaccount or Behavioral Health Subaccount
in the State Treasury (excludes growth). The authorization to make
allocations to the Support Services Reserve Account must occur in a
regularly scheduled public hearing. The allocations to the reserve
accounts must be documented annually to the State Controller and
reported to the Legislature.
5)Specifies Eligible Uses for Funds Deposited in 2011 Realignment
Subaccounts and Special Accounts. This bill requires that all funds
deposited in the County Local Revenue Fund 2011 be used exclusively
for public safety services, as defined by this bill and The Schools
and Local Public Safety Protection Act of 2012. Current law
restricts the expenditure of funds deposited in the original funds
and accounts created for 2011 Realignment. This bill updates those
accounts to the new successor subaccounts and special accounts and
subjects these updated subaccounts and special accounts to the same
restrictions, including funding in the various Growth Special
Accounts.
In addition, this bill adds planning, implementation and training
costs for revocation proceedings as an eligible use of funds
deposited in the District Attorney and Public Defender Subaccount
and associated growth special account.
This bill also specifies that funding in the Enhancing Law
Enforcement Activities Subaccount and associated growth special
account shall be used to provide grants and funding to local law
enforcement as provided by statute.
This bill also specifies that funds deposited in the Local
Innovation Subaccount within the Law Enforcement Services Account
shall be used to fund local needs, which include any eligible
expenditure in the Juvenile Justice Subaccount, the District
SB 1020
Page 6
Attorney and Public Defender Subaccount, the Community Corrections
Subaccount, or the Trial Court Security Subaccount.
This bill defines that the counties have 100% of the nonfederal
share of costs of programs that are part of 2011 Realignment. These
costs shall be covered by funds deposited in the Local Revenue Fund
2011. Also specifies that funds shall be expended in a manner that
maintains eligibility for federal funding.
This bill adds Medi-Cal specialty health services, including Early
and Periodic Screening, Diagnosis, and Treatment Program and mental
health managed care to the list of programs funded from within 2011
Realignment. These programs were funded outside of 2011
Realignment last year.
This bill directs the expenditure of any residual funds remaining in
the Reserve Account and Undistributed Account to fund entitlements
for the 2011-12 fiscal year. After these accounts are liquidated
they are abolished on January 1, 2013.
6)Community Corrections Grant Program. This bill specifies that the
monies in the Community Corrections Subaccount and the Community
Corrections Growth Special Account constitute funding for the
Community Corrections Grant Program established by AB 109 (Budget
Committee), Chapter 15, Statutes of 2011.
7)Defines 2011 Realignment Legislation. This bill defines "2011
Realignment Legislation" as legislation entitled 2011 Realignment
and provides for the assignment to local agencies of
responsibilities for public safety services. This legislation must
be enacted by September 30, 2012. Furthermore, this bill also
provides that no new program may be assigned to local agencies after
January 1, 2012, except for the Early and Periodic Screening,
Diagnosis, and Treatment program and mental health managed care.
This statutory framework will become inoperative if Article XIII of
the Constitution is added per The Schools and Public Safety
Protection Act of 2012 on the November 6, 2012, statewide general
election.
8)Mandate Protection for State. This bill provides statutory guidance
directing that any mandate of a new program or higher level of
service on a local agency imposed by 2011 Realignment Legislation
shall be paid from the funding provided in the Local Revenue Fund
2011. This statutory framework would become inoperative if Article
SB 1020
Page 7
XIII of the Constitution is added per The Schools and Public Safety
Protection Act of 2012 on the November 6, 2012, statewide general
election.
9)County Protection against New State Imposed Costs for Realigned
Programs. This bill provides that any legislation enacted after
September 30, 2012, that has the overall effect of increasing the
costs for programs or levels of service mandated by the 2011
Realignment Legislation shall apply to local agencies only to the
extent that the state provides annual funding for the cost increase.
This bill also provides that any regulations, executive orders, or
administrative directives, implemented after October 9, 2011, that
are not necessary to implement 2011 Realignment and have the overall
effect of increasing the costs for programs or levels of service
mandated in 2011 Realignment shall apply to local agencies only to
the extent that the state provides annually funding for the cost
increase. This bill also limits the state from submitting to the
federal government any plans or waivers, or amendments to those
plans or waivers that have an overall effect of increasing the cost
by a local agency for programs or levels of service mandated by 2011
Realignment.
10)Cost Sharing Provisions for Unanticipated New Program Costs. This
bill makes it clear that that the state is not required to provide
funds for a mandate that is imposed by the state at the request of a
local agency or to comply with federal law. This bill also makes it
clear that any new mandates imposed by the state shall not be funded
from 2011 Realignment, ad valorem property tax, or 1991 Realignment.
This bill also makes it clear that it is a county option to provide
a new program or a higher level of service, but it does not require
a subvention of funds from the state.
The 2011 Realignment includes realignment of programs and funding
for federal entitlement programs. This bill provides that the state
shall provide at least 50% of the nonfederal costs of any changes in
federal statutes or regulations that alter the conditions under
which federal matching funds are obtained.
For the federal entitlement programs that are part of 2011
Realignment, this bill requires the state to pay for 50% on the
nonfederal share of costs related to judicial or administrative
orders that impose a cost in the form of a monetary penalty.
Payment is not required if the state determines that the settlement
or order relates to one or more local agencies failing to perform a
SB 1020
Page 8
legal obligation in good faith. This bill states that judicial
complaints related to a state or local agency fail to perform a duty
or obligation under 2011 Realignment shall have priority over all
other civil matters.
11)Conditions of Expenditure of 2011 Realignment Funds. This bill
directs that funds deposited in the County Local Revenue Fund 2011
be spent in a manner designed to maximize the state's eligibility
for federal matching funds and ensure compliance with applicable
federal standards governing the provision of services included in
2011 Realignment.
Funds deposited in the County Local Revenue Fund 2011 may not be
used by local agencies to supplant other funding for public safety
services.
12)Public Notification of Reductions to Optional and Discretionary
Programs. This bill requires that significant reductions
("significant" defined as 10% in one year or 25% over three years)
to optional or discretionary programs currently funded in behavioral
health, adult protective services, and child welfare services be
made in an open session, as an action item in a duly noticed meeting
of the board of supervisors.
13)Share of Costs Definition. This bill specifies that for the
programs realigned as part of 2011 Realignment the state shall not
have a share of costs. The funding provided is specifically
intended to be in an amount sufficient to fund the cost of the state
mandates. The bill requires the county first exhaust funding
provided in 2011 Realignment and 1991 Realignment for any state
mandated costs related to 2011 Realignment. This statutory
framework will become inoperative if Article XIII of the
Constitution is added per The Schools and Public Safety Protection
Act of 2012 on the November 6, 2012, statewide general election.
The bill also specifies that that state does not have a share of
costs for programs described in 2011 Realignment that are funded by
1991 Realignment. This provision shall become operative if Article
XIII of the Constitution is added per The Schools and Public Safety
Protection Act of 2012 on the November 6, 2012, statewide general
election.
14)Reporting by the State Controller. The State Controller is
required to post monthly the amount received by the Local Revenue
SB 1020
Page 9
Fund 2011. The State Controller shall also post the amounts
allocated to every account, subaccount and special account within
the Local Revenue Fund 2011. Annually the State Controller shall
provide detailed information as to the source of the funding
deposited in each account, subaccount and special account. Also,
starting in 2014-15 the State Controller is required to report the
highest amount ever allocated to the Subaccounts in the Local
Revenue Fund 2011 and not how much growth funding may need to be
provided as restoration in a future fiscal year to achieve that
level. Also annually, the State Controller shall make a detailed
report on how much each county, city and city and county received in
each subaccount.
15)Clarifications on Entitlement Programs. This bill clarifies that
nothing in 2011 Realignment impacts in any way the rights provided
by federal entitlement programs. This bill also specifies that
counties shall fund Medi-Cal specialty mental health services,
including Early and Periodic Screening, Diagnosis and Treatment from
monies received from the Behavioral Health Subaccount and the
Behavioral Health Growth Special Account. Funding for this program
shall also come from 1991 Realignment funds and to the extent
permissible under the Mental Health Services Act, the Mental Health
Services Fund. This bill requires that the provision of services
for these mental health programs be based on the requirement of
federal law.
16)Technical Amendments to 2011-12 Funding Allocations. This bill
makes technical amendments to the 2011-12 funding allocations for
2011 Realignment. Mainly these amendments clarify that cash for any
given fiscal year include cash until August 15, 2012, to account for
the lag in receipt of sales tax revenues.
17)Makes 2012-13 Funding Allocations. This bill makes funding
allocations to the accounts and subaccounts within the Local Revenue
Fund 2011 for the 2012-13 fiscal year. The first allocations made
from the Local Revenue Fund 2011 are as follows:
(in Millions)
-------------------------------------------------------------
|Account | Amount|
|------------------------------+------------------------------|
|Mental Health Account |$1,120.6 |
| | |
SB 1020
Page 10
-------------------------------------------------------------
-------------------------------------------------------------
|Account | Amount|
|------------------------------+------------------------------|
|Enhancing Law Enforcement | $489.9 from Vehicle License |
|Activities |Fee (VLF) revenues and if VLF |
| | revenues are not enough to |
| | reach this level from sales |
| |tax revenues deposited in the |
| | Local Revenue Fund 2011 |
|------------------------------+------------------------------|
|Enhancing Law Enforcement | Any remaining VLF revenue |
|Growth Special Account |above $489.9 |
| | |
-------------------------------------------------------------
After the above allocations are made the remaining funds deposited
in the Local Revenue Fund 2011 are allocated as follows for the
2012-13 fiscal year:
(in Millions)
-------------------------------------------------------------
|Account | Amount|
|------------------------------+------------------------------|
|Support Services Account | 64.1975% or up to $2,604.9|
|------------------------------+------------------------------|
|Law Enforcement Services |35.8025% or up to |
|Account |$1,452.7 |
| | |
-------------------------------------------------------------
The following allocations are then made from the accounts above to
the following subaccounts for the 2012-13 fiscal year:
(in Millions)
-------------------------------------------------------------
|Support Services Account | Amount|
|------------------------------+------------------------------|
|Behavioral Health Subaccount | 37.0264% or up to $964.5|
|------------------------------+------------------------------|
SB 1020
Page 11
|Protective Services |62.9736% or up to |
|Subaccount |$1,640.4 |
| | |
-------------------------------------------------------------
-------------------------------------------------------------
|Law Enforcement Services | Amount|
|Account | |
|------------------------------+------------------------------|
|Trial Court Security | 34.1721% or up to $496.4|
|Subaccount | |
|------------------------------+------------------------------|
|Community Corrections | 58.0217% or up to $842.9|
|Subaccount | |
|------------------------------+------------------------------|
|District Attorney and Public | 1.0050% or up to $14.6|
|Defender Subaccount | |
|------------------------------+------------------------------|
|Juvenile Justice Subaccount |6.8012% or up to |
| |$98.8 |
| | |
-------------------------------------------------------------
From the Behavioral Health Subaccount an amount of $5.1 million is
allocated to the Women and Children's Residential Treatment Services
Special Account.
18)Makes 2013-14 Funding Allocations. This bill makes funding
allocations to the accounts and subaccounts within the Local Revenue
Fund 2011 for the 2013-14 fiscal year. The first allocations made
from the Local Revenue Fund 2011 are as follows:
(in Millions)
-------------------------------------------------------------
|Account | Amount|
|------------------------------+------------------------------|
|Mental Health Account |$1,120.6 |
| | |
-------------------------------------------------------------
-------------------------------------------------------------
|Account | Amount|
|------------------------------+------------------------------|
SB 1020
Page 12
|Enhancing Law Enforcement | $489.9 from Vehicle License |
|Activities |Fee (VLF) revenues and if VLF |
| | revenues are not enough to |
| | reach this level from sales |
| |tax revenues deposited in the |
| | Local Revenue Fund 2011 |
|------------------------------+------------------------------|
|Enhancing Law Enforcement | Any remaining VLF revenue |
|Growth Special Account |above $489.9 |
| | |
-------------------------------------------------------------
After the above allocations are made the remaining funds deposited
in the Local Revenue Fund 2011 are allocated as follows for the
2013-14 fiscal year:
(in Millions)
-------------------------------------------------------------
|Account | Amount|
|------------------------------+------------------------------|
|Support Services Account | 2012-13 amount + $20.4 + |
| | 2012-13 Growth|
|------------------------------+------------------------------|
|Law Enforcement Services | 2012-13 amount + $158.5 + |
|Account | 2012-13 Growth for Trial |
| |Court Security Subaccount and |
| |Juvenile Justice Subaccount |
| | |
-------------------------------------------------------------
The following allocations are then made from the accounts above to
the following subaccounts for the 2013-14 fiscal year:
(in Millions)
-------------------------------------------------------------
|Support Services Account | Amount|
|------------------------------+------------------------------|
|Behavioral Health Subaccount | 36.7391% or up to 2012-13 |
| | amount + 2012-13 Growth|
|------------------------------+------------------------------|
|Protective Services | 63.2609% or up to 2012-13 |
SB 1020
Page 13
|Subaccount | amount + $20.4 + 2012-13 |
| |Growth |
| | |
-------------------------------------------------------------
-------------------------------------------------------------
|Law Enforcement Services |Amount |
|Account | |
|------------------------------+------------------------------|
|Trial Court Security | 30.8105% or up to 2012-13 |
|Subaccount | amount + 2012-13 Growth|
|------------------------------+------------------------------|
|Community Corrections | 61.9960% or up to $998.9|
|Subaccount | |
|------------------------------+------------------------------|
|District Attorney and Public | 1.0613% or up to $17.1|
|Defender Subaccount | |
|------------------------------+------------------------------|
|Juvenile Justice Subaccount | 6.1322% or up to 2012-13 |
| |amount + 2012-13 Growth |
| | |
-------------------------------------------------------------
From the Behavioral Health Subaccount an amount of $5.1 million is
allocated to the Women and Children's Residential Treatment Services
Special Account.
The special adjustments made to the Protective Services Subaccount
adjust the base funding level for the implementation of AB 12
(Beall), Chapter 559, Statutes of 2010, that provides for supportive
transitional services to foster youth until the age of 21. The
adjustments made to the Community Corrections Subaccount and the
District Attorney and Public Defender Subaccount are based on
caseload adjustments being made as AB 109 (Budget Committee),
Chapter 15, Statutes of 2011, is implemented.
19)Makes 2014-15 Funding Allocations. This bill makes funding
allocations to the accounts and subaccounts within the Local Revenue
Fund 2011 for the 2014-15 fiscal year. The first allocations made
from the Local Revenue Fund 2011 are as follows:
(in Millions)
-------------------------------------------------------------
SB 1020
Page 14
|Account | Amount|
|------------------------------+------------------------------|
|Mental Health Account |$1,120.6 |
| | |
-------------------------------------------------------------
-------------------------------------------------------------
|Account | Amount|
|------------------------------+------------------------------|
|Enhancing Law Enforcement | $489.9 from Vehicle License |
|Activities |Fee (VLF) revenues and if VLF |
| | revenues are not enough to |
| | reach this level from sales |
| |tax revenues deposited in the |
| | Local Revenue Fund 2011 |
|------------------------------+------------------------------|
|Enhancing Law Enforcement | Any remaining VLF revenue |
|Growth Special Account |above $489.9 |
| | |
-------------------------------------------------------------
After the above allocations are made the remaining funds deposited
in the Local Revenue Fund 2011 are allocated as follows for the
2014-15 fiscal year:
(in Millions)
-------------------------------------------------------------
|Account | Amount|
|------------------------------+------------------------------|
|Support Services Account | 2013-14 amount + $15.3 + |
| | 2013-14 Growth|
|------------------------------+------------------------------|
|Law Enforcement Services | 2013-14 amount - $66.1 + |
|Account | 2013-14 Growth for Trial |
| |Court Security Subaccount and |
| |Juvenile Justice Subaccount |
| | |
-------------------------------------------------------------
The following allocations are then made from the accounts above to
the following subaccounts for the 2014-15 fiscal year:
(in Millions)
SB 1020
Page 15
------------------------------------------------------------
------------------------------------------------------------
|Law Enforcement Services | Amount|
|Account | |
|-----------------------------+------------------------------|
|Trial Court Security | 32.1286% or up to 2013-14 |
|Subaccount | amount + 2013-14 Growth|
|-----------------------------+------------------------------|
|Community Corrections | 60.4543% or up to $934.1|
|Subaccount | |
|-----------------------------+------------------------------|
|District Attorney and Public | 1.0226% or up to $15.8|
|Defender Subaccount | |
|-----------------------------+------------------------------|
|Juvenile Justice Subaccount | 6.3945% or up to 2013-14 |
| |amount + 2013-14 Growth |
| | |
------------------------------------------------------------
From the Behavioral Health Subaccount an amount of $5.1 million is
allocated to the Women and Children's Residential Treatment Services
Special Account.
The special adjustments made to the Protective Services Subaccount
adjust the base funding level for the implementation of Chapter 559,
Statutes of 2010 (AB 12, Beall) that provides for supportive
transitional services to foster youth until the age of 21. The
adjustments made to the Community Corrections Subaccount and the
District Attorney and Public Defender Subaccount are based on
caseload adjustments being made as Chapter 15, Statutes of 2011 (AB
109, Budget) is implemented.
20)Makes Ongoing Annual Funding Allocation Starting in 2015-16. This
bill makes funding allocations to the accounts and subaccounts
within the Local Revenue Fund 2011 for the 2015-16 fiscal year and
each subsequent year. The first allocations made from the Local
Revenue Fund 2011 are as follows:
SB 1020
Page 16
(in Millions)
-------------------------------------------------------------
|Account | Amount|
|------------------------------+------------------------------|
|Mental Health Account |$1,120.6 |
| | |
-------------------------------------------------------------
-------------------------------------------------------------
|Account | Amount|
|------------------------------+------------------------------|
|Enhancing Law Enforcement | $489.9 from Vehicle License |
|Activities |Fee (VLF) revenues and if VLF |
| | revenues are not enough to |
| | reach this level from sales |
| |tax revenues deposited in the |
| | Local Revenue Fund 2011 |
|------------------------------+------------------------------|
|Enhancing Law Enforcement | Any remaining VLF revenue |
|Growth Special Account |above $489.9 |
| | |
-------------------------------------------------------------
After the above allocations are made the remaining funds deposited
in the Local Revenue Fund 2011 are allocated as follows for the
2015-16 fiscal year and each year subsequent:
(in Millions)
-------------------------------------------------------------
|Account | Amount|
|------------------------------+------------------------------|
|Support Services Account | Funding + Growth from |
| | immediately preceding fiscal |
| | year|
|------------------------------+------------------------------|
|Law Enforcement Services | Funding + Growth for all |
|Account | accounts from immediately |
| |preceding fiscal year |
| | |
-------------------------------------------------------------
The following allocations are then made from the accounts above to
SB 1020
Page 17
the following subaccounts for the 2014-15 fiscal year and each
subsequent fiscal year:
(in Millions)
-------------------------------------------------------------
|Support Services Account | Amount|
|------------------------------+------------------------------|
|Behavioral Health Subaccount | Funding + Growth from |
| | immediately preceding fiscal |
| | year|
|------------------------------+------------------------------|
|Protective Services | Funding + Growth from |
|Subaccount | immediately preceding fiscal |
| |year |
| | |
-------------------------------------------------------------
-------------------------------------------------------------
|Law Enforcement Services | Amount|
|Account | |
|------------------------------+------------------------------|
|Trial Court Security | Funding + Growth from |
|Subaccount | immediately preceding fiscal |
| | year|
|------------------------------+------------------------------|
|Community Corrections | Funding + Growth from |
|Subaccount | immediately preceding fiscal |
| | year|
|------------------------------+------------------------------|
|District Attorney and Public | Funding + Growth from |
|Defender Subaccount | immediately preceding fiscal |
| | year|
|------------------------------+------------------------------|
|Juvenile Justice Subaccount | Funding + Growth from |
| | immediately preceding fiscal |
| |year |
| | |
-------------------------------------------------------------
From the Behavioral Health Subaccount an amount of $5.1 million is
allocated to the Women and Children's Residential Treatment Services
Special Account.
SB 1020
Page 18
If there are insufficient funds in the Support Services Account or
the Law Enforcement Services Account to make the allocations to the
subaccounts described above the State Controller shall allocate the
funding based on a proportional share that the subaccounts received
in the immediately preceding fiscal year. The Department of Finance
will annually prepare a schedule that provides the appropriate and
proportional allocations to direct the Controller's allocation if
funds are not sufficient to provide the intended allocations
described above.
21)Makes Allocations of Growth Funding. Within the Local Revenue Fund
2011 is the Sales and Use Tax Growth Account. This account receives
sales and use tax revenue growth above the base allocations
described in this bill. This bill allocates these funds to the
subaccounts and special accounts within the Sales and Use Tax Growth
Account for fiscal years 2012-13, 2013-14, and 2014-15. For 2015-16
a permanent growth allocation methodology is established for
allocating most of the special accounts.
For the 2012-13 fiscal year, the growth is allocated to two of the
subaccounts as follows:
-------------------------------------------------------------
|Account | |
|------------------------------+------------------------------|
|Support Services Growth | 65%|
|Subaccount | |
|------------------------------+------------------------------|
|Law Enforcement Services |35% |
|Subaccount | |
-------------------------------------------------------------
Starting in 2013-14 there is a definition of the amount necessary to
provide full base funding. If there is not enough funding to
provide full base funding, the growth is distributed in the same
proportion as the base allocations were made for the 2013-14 fiscal
year. If there are additional growth monies after the amount
necessary to provide full base funding, these monies will be
allocated 65% to the Support Services Growth Subaccount and 35% to
the Law Enforcement Services Subaccount. The amounts necessary to
provide full base funding for each of the accounts is as follows:
-------------------------------------------------------------
|Support Services Account | Amount|
SB 1020
Page 19
|------------------------------+------------------------------|
|Behavioral Health Subaccount | Maximum amount allocated in |
| | 2012-13|
|------------------------------+------------------------------|
|Protective Services | Maximum amount allocated in |
|Subaccount |2012-13 |
| | |
-------------------------------------------------------------
-------------------------------------------------------------
|Law Enforcement Services | Amount|
|Account | |
|------------------------------+------------------------------|
|Trial Court Security |Greater of 2011-12 amount and |
|Subaccount | 2012-13 amount + 2012-13 |
| | growth|
|------------------------------+------------------------------|
|Community Corrections | Maximum amount allocated in |
|Subaccount | 2012-13|
|------------------------------+------------------------------|
|District Attorney and Public | Maximum amount allocated in |
|Defender Subaccount | 2012-13|
|------------------------------+------------------------------|
|Juvenile Justice Subaccount |Greater of 2011-12 amount and |
| | 2012-13 amount + 2012-13 |
| |growth |
| | |
-------------------------------------------------------------
Starting in 2014-15 the definition of the amount necessary to
provide full base funding is provided in the table below. If there
is not enough funding to provide full base funding, the growth is
distributed in the same proportion as the base allocations were made
for the 2014-15 fiscal year. If there are additional growth monies
after the amount necessary to provide full base funding, these
monies will be allocated 65% to the Support Services Growth
Subaccount and 35% to the Law Enforcement Services Subaccount. The
amounts necessary to provide full base funding for each of the
accounts is as follows:
-------------------------------------------------------------
|Support Services Account | Amount|
|------------------------------+------------------------------|
|Behavioral Health Subaccount |Greater of the maximum amount |
SB 1020
Page 20
| | that could have been |
| | allocated in 2012-13 or the |
| | largest amounts received |
| | (base + growth) in any prior |
| |year beginning with 2013-14 |
|------------------------------+------------------------------|
|Protective Services |Greater of the maximum amount |
|Subaccount |that was allocated in 2012-13 |
| | and the maximum amount that |
| |was allocated in 2013-14 |
| | |
-------------------------------------------------------------
SB 1020
Page 21
-------------------------------------------------------------
|Law Enforcement Services | Amount|
|Account | |
|------------------------------+------------------------------|
|Trial Court Security | Greater of 2011-12 amount or |
|Subaccount | the largest amounts received |
| | (base + growth) in any prior |
| | year beginning with 2012-13|
|------------------------------+------------------------------|
|Community Corrections | Greatest amount allocated in |
|Subaccount | a single year beginning with |
| | 2012-13|
|------------------------------+------------------------------|
|District Attorney and Public | Greatest amount allocated in |
|Defender Subaccount | a single year beginning with |
| | 2012-13|
|------------------------------+------------------------------|
|Juvenile Justice Subaccount | Greater of 2011-12 amount or |
| | the largest amounts received |
| | (base + growth) in any prior |
| |year beginning with 2012-13 |
| | |
-------------------------------------------------------------
Starting in 2015-16 and for each subsequent year after the
definition of the amount necessary to provide full base funding is
provided in the table below. If there is not enough funding to
provide full base funding, the growth is distributed in the same
proportion as the base allocations were made for the 2015-16 fiscal
year and for each subsequent year. If there are additional growth
monies after the amount necessary to provide full base funding,
these monies will be allocated 65% to the Support Services Growth
Subaccount and 35% to the Law Enforcement Services Subaccount. The
amounts necessary to provide full base funding for each of the
accounts is as follows:
-------------------------------------------------------------
|Support Services Account | Amount|
|------------------------------+------------------------------|
|Behavioral Health Subaccount |Greater of the maximum amount |
| |that was allocated in 2012-13 |
| | or the largest amounts |
| | received (base + growth) in |
SB 1020
Page 22
| |any prior year beginning with |
| | 2012-13|
|------------------------------+------------------------------|
|Protective Services |Greater of the maximum amount |
|Subaccount | that was allocated in |
| | 2012-13, the maximum |
| | allocated in 2013-14, or the |
| | largest amounts received |
| | (base and growth) in any |
| | prior year beginning with |
| |2012-13 |
| | |
-------------------------------------------------------------
-------------------------------------------------------------
|Law Enforcement Services | Amount|
|Account | |
|------------------------------+------------------------------|
|Trial Court Security | Greater of 2011-12 amount or |
|Subaccount | the largest amounts received |
| | (base + growth) in any prior |
| |year beginning with 2012-13 |
|------------------------------+------------------------------|
|Community Corrections | Greatest amount (base + |
|Subaccount | growth) in a single year |
| | beginning with 2014-15 or |
| | highest amount authorized to |
| | receive in any single fiscal |
| | year beginning with 2012-13|
|------------------------------+------------------------------|
|District Attorney and Public | Greatest amount (base + |
|Defender Subaccount | growth) in a single year |
| | beginning with 2014-15 or |
| | highest amount authorized to |
| | receive in any single fiscal |
| | year beginning with 2012-13|
|------------------------------+------------------------------|
|Juvenile Justice Subaccount | Greater of 2011-12 amount or |
| | the largest amounts received |
| | (base + growth) in any prior |
| |year beginning with 2012-13 |
| | |
-------------------------------------------------------------
SB 1020
Page 23
This bill also specifies growth allocation to the special accounts
within the Support Services Growth Subaccount and the Law
Enforcement Services Growth Subaccount in the Sales and Use Tax
Growth Account for the 2012-13 fiscal year. Additional growth
funding is dedicated to child welfare services until the Director of
Finance certifies that $200 million has been allocated to the
Protective Services Growth Special Account. The allocations are as
follows:
-------------------------------------------------------------
|Support Services Growth | |
|Subaccount | |
|------------------------------+------------------------------|
|Mental Health Subaccount | 5%|
|------------------------------+------------------------------|
|Protective Services Growth | 40%|
|Special Account for Child | |
|Welfare Services | |
|------------------------------+------------------------------|
|Protective Services Growth | 42.03%|
|Special Account | |
|------------------------------+------------------------------|
|Behavioral Health Services |12.97% |
|Growth Special Account | |
-------------------------------------------------------------
-------------------------------------------------------------
|Law Enforcement Services | |
|Growth Subaccount | |
|------------------------------+------------------------------|
|Trial Court Security Growth | 10%|
|Special Account | |
|------------------------------+------------------------------|
|Community Corrections Growth | 75%|
|Special Account | |
|------------------------------+------------------------------|
|District Attorney and Public | 5%|
|Defender Growth Special | |
|Account | |
|------------------------------+------------------------------|
|Juvenile Justice Growth |10% |
|Special Account | |
-------------------------------------------------------------
SB 1020
Page 24
Growth will not be added to the base to create a "rolling base" for
the Community Corrections Subaccount and the District Attorney and
Public Defender Subaccount until 2015-16. The allocations among the
special accounts in the Law Enforcement Services Growth Subaccount
are not proposed to be changed.
This bill also specifies a different growth allocation to the
special accounts within the Support Services Growth Subaccount in
the Sales and Use Tax Growth Account for the 2013-14 fiscal year.
-------------------------------------------------------------
|Support Services Growth | |
|Subaccount | |
|------------------------------+------------------------------|
|Mental Health Subaccount | 5%|
|------------------------------+------------------------------|
|Protective Services Growth | 40%|
|Special Account for Child | |
|Welfare Services | |
|------------------------------+------------------------------|
|Protective Services Growth | 21.81%|
|Special Account | |
|------------------------------+------------------------------|
|Behavioral Health Services |33.19% |
|Growth Special Account | |
-------------------------------------------------------------
This bill states that once the Director of Finance has certified
that $200 million in funding has been provided to county child
welfare services programs and the Protective Services Growth Special
Account, the allocation amount is changed as follows:
-------------------------------------------------------------
|Support Services Growth | |
|Subaccount | |
|------------------------------+------------------------------|
|Mental Health Subaccount | 5%|
|------------------------------+------------------------------|
|Protective Services Growth | 45%|
|Special Account | |
|------------------------------+------------------------------|
|Behavioral Health Services |50% |
SB 1020
Page 25
|Growth Special Account | |
-------------------------------------------------------------
22)Creates System of State Intervention for Medi-Cal Programs in 2011
Realignment. The bill authorizes a process and procedure for the
Department of Health Care Services to intervene if the department
determines that a county is failing to perform functions and could
jeopardize the receipt of federal funds for these programs. This
bill authorizes, after notification, the State Controller to deposit
the portion of the county's allocation attributable to the effected
program into the County Intervention Support Services Subaccount.
The amounts deposited in this Subaccount will then be used by the
department to fund the program or programs in the county where the
county was failing to perform necessary functions to maintain
federal funds.
23)Protection for Counties if Funding Supporting Realignment is
Reduced or Repealed. This bill requires the state to annually
provide moneys to the Local Revenue Fund 2011 in an amount equal to
or greater than the aggregate amount that otherwise would have been
provided by the taxes supporting 2011 Realignment if the taxes are
reduced or eliminated. If the state fails to annually appropriate
that amount, the State Controller shall transfer that amount from
the General Fund. A process for this backfill of funding satisfies
a requirement of Article XIII of the Constitution to be added per
The Schools and Public Safety Protection Act of 2012 on the November
6, 2012, statewide general election.
24)Provides Juvenile Justice Subaccount Allocations. This bill makes
technical amendments to the allocation of funding within the
Juvenile Justice Subaccounts for the 2011-12 fiscal year. This bill
also proposes to allocate these funds to the special accounts in
2012-13 and every subsequent fiscal year as follows:
-------------------------------------------------------------
|Juvenile Justice Subaccount | |
|------------------------------+------------------------------|
|Youthful Offender Block Grant | 96.015%|
|Special Account | |
|------------------------------+------------------------------|
|Juvenile Reentry Grant |3.085% |
|Special Account | |
-------------------------------------------------------------
SB 1020
Page 26
25)Directs Allocation of Funds from State to County and Among
Counties. This bill specifies that the revenues collected on August
16 to August 15, inclusive, of the following year constitutes a
fiscal year for the purposes of 2011 Realignment. This bill
specifies allocation of the funds to the counties as follows:
a) Funds in the Mental Health Account shall be allocated on the
20th of each month to the local Mental Health Subaccount that was
created in 1991 Realignment.
b) Funds in the Trial Court Security Subaccount shall be
allocated by the State Controller on the 27th of each month.
Money in the Trial Court Security Subaccount cannot be used to
pay for general county administrative expenses. This bill also
provides for an allocation of the Trial Court Security Subaccount
among the counties. This allocation is based on the 2011-12
allocation adjusted for expected increased workload associated
with the implementation of AB 109 (Budget Committee), Chapter 15,
Statutes of 2011.
c) Allocates funding from the Community Corrections Subaccount to
the counties for the 2012-13 and 2013-14 fiscal years only. This
allocation was developed by the California State Association of
Counties and allowed counties to pick the most favorable formula
from three formulas that included: i) caseload; ii) population
between 18 and 64; and, iii) the 2011-12 formula, which was based
on a weighted formula composed of caseload, population, and SB
678 probation incentive program success rate. A new methodology
and schedule for allocating funds shall be developed by the
Department of Finance in consultation with the California State
Association of Counties commencing with the 2014-15 fiscal year.
d) Allocates funding from the District Attorney and Public
Defender Subaccount to the counties for the 2012-13 and 2013-14
fiscal years only. A new methodology and schedule for allocating
funds shall be developed by the Department of Finance in
consultation with the California State Association of Counties
commencing with the 2014-15 fiscal year.
e) Funds deposited in the Enhancing Law Enforcement Activities
Subaccount are allocated among counties according to current law.
f) On August 25 of each year, funds allocated to the Enhancing
Law Enforcement Activities Growth Special Account shall be
SB 1020
Page 27
allocated as follows: i) 38.40% to the Juvenile Probation and
Camps Funding program; ii) 27.08% to the Community Oriented
Policing Services Program; iii) 27.08% to the Juvenile Justice
Crime Prevention Act program; and, iv) 7.44% to the Juvenile
Camps and Ranches program.
g) Directs the monthly allocation of funds from the Protective
Services Subaccount to the County Protective Services Subaccount.
For the 2012-13 fiscal year the distribution to each county
shall be the same as those used to distribute funds in the
2011-12 fiscal year adjusted to reflect updated expenditures on
Foster Care Assistance and Adoptions Assistance Program payments
and for the distribution of the estimated funding for
implementation of AB 12 (Beall), Chapter 559, Statutes of 2010.
For the 2013-14 fiscal year and each year subsequent the
Department of Finance may develop a schedule in consultation with
the California State Association of the Counties per criteria.
This bill authorizes up to $32,721,000 annually to be transferred
to a Contract Special Account of a designated county.
26)Directs Deposit of Growth Funds in County Accounts. This bill
directs the growth funds in state growth special accounts to the
appropriate county accounts as follows:
-------------------------------------------------------------
|Growth Account |Local Account |
|------------------------------+------------------------------|
|Protective Services Growth |Protective Services |
|Special Account |Subaccount |
|------------------------------+------------------------------|
|Behavioral Health Services |Behavioral Health Subaccount |
|Growth Special Account | |
|------------------------------+------------------------------|
|Trial Court Security Growth |Trial Court Security |
|Special Account |Subaccount |
|------------------------------+------------------------------|
|Community Corrections Growth |Community Corrections |
|Special Account |Subaccount |
|------------------------------+------------------------------|
|District Attorney and Public |District Attorney and Public |
|Defender Growth Special |Defender Subaccount |
|Account | |
|------------------------------+------------------------------|
SB 1020
Page 28
|Juvenile Justice Growth |Juvenile Justice Subaccount |
|Special Account | |
-------------------------------------------------------------
The bill further directs that the growth funds shall be allocated to
the local subaccounts in the percentages provided. However, if the
allocation methodology is not specified in this bill, the growth
funds shall be allocated in accordance with schedules developed by
the Department of Finance in consultation with the California State
Association of Counties and in accordance with any criteria
contained in this bill.
27)Creates Local Innovation Subaccount. Starting in 2015-16, each
county shall transfer to the Local Innovation Subaccount 10% of the
moneys received during a fiscal year from each of the following
state accounts:
a) Trial Court Security Growth Special Account;
b) Community Corrections Growth Special Account;
c) District Attorney and Public Defender Growth Special Account;
and,
d) Juvenile Justice Growth Special Account.
28)Incentive Funding from Protective Services Growth Special Account.
Starting in 2012-13, 10% of the growth funding from the Protective
Services Growth Special Account shall only be allocated to counties
that have expended in that fiscal year an amount at least equivalent
to that which the county would have had to spend in the absence of
2011 Realignment Legislation to access augmentation funding pursuant
to Section 10609.9 of the Welfare and Institutions Code. This
determination will be made as of August 1 with data from the prior
fiscal year. Small counties are exempt from this provision
according to this bill. This bill also allocates this growth
funding among the counties per a schedule.
29)Community Corrections Growth Allocation. This bill requires the
Department of Finance to develop a schedule for allocating the
growth funding in the Community Corrections Growth Special Account.
The schedule shall reflect priorities that promote the effective
implementation of the 2011 Public Safety Realignment including the
following: i) minimum allocations for each county; ii)
SB 1020
Page 29
establishment of appropriate small county minimum allocations; iii)
adjustments for average daily population variations; iv) other
factors; and, v) implementation of 2011 Public Safety Realignment
consistent with cost effective evidence based practices. This bill
requires that the Department of Finance consider a county's
commitment to continuing, expanding, or initiating community
corrections practices, programs and strategies that manage felony
offender populations most cost effectively by using evidence-based
practices when developing this formula to allocate the growth over
the next two years.
30)Re-Enacts Definitions Related to Child Welfare Services. This bill
re-enacts definitions related to child welfare services that were
realigned in the 2011 Realignment. This provision of law is related
to 2011 Realignment.
31)Women and Children's Residential Treatment Services Program. This
bill authorizes six counties to establish the Women and Children's
Residential Treatment Services Special Account within their
Behavioral Health Subaccount. These six counties currently have
established programs and this bill would dedicate money to these
programs in the future. Funding is allocated to Alameda County,
Marin County, Los Angeles County, San Diego County, San Francisco
City and County, and San Joaquin County.
32)Contract Back with State Allowance. This bill allows the counties
to contract with the State Department of Health Care Services or the
Department of Social Services to provide or administer the Drug
Medi-Cal Treatment Program and the Agency Adoptions Program.
Contracts would be exempt from certain aspects of the Public
Contract Code and contracts shall include reimbursement to the state
for the cost of providing the services or activities.
33)Creates Contract Special Account. This bill authorizes that up to
$32,721,000 be allocated annually to the Contract Special Account of
a designated county. This account would be used to contract
directly with the Department of Social Services for the following
programs, services, and functions:
a) The Private Agency Adoptions Reimbursement Program;
b) The Chafee Post Secondary Education and Training Voucher
Program;
SB 1020
Page 30
c) Health Care Oversight for Children in Foster Care;
d) Training, technical assistance, and other contracts of
statewide benefits; and,
e) Other contracts that counties, in consultation with the
Department of Social Services determine are in the best interests
of counties and the state.
Funds in this account shall not be subject to the reallocation
rules. If the funding is not fully expended in a given fiscal year
it shall be retained in the fund for expenditure in the subsequent
fiscal year. After consultation with the Department of Social
Services and the California State Association of Counties, funding
may be redistributed back to all counties in the proportion that it
was provided to the Contract Special Account.
34)Allocations of the Youthful Offender Block Grant and Juvenile
Justice Reentry Grant. This bill directs the allocation of the
Youthful Offender Block Grant Special Account and the Juvenile
Justice Reentry Special Account to each county according to current
law. Under current law the Director of Finance determines
allocations that are distributed monthly to the counties.
35)Reporting. This bill requires transmittal of all schedules
developed by the Department of Finance pursuant to this chapter and
transmitted to the Controller for allocation of funding to also be
transmitted to the fiscal committees of the Legislature.
36)1991 Realignment Funding Swap. The 2011 Realignment interacts with
1991 Realignment by providing $1,120,551,000 from 2011 Realignment
to fund mental health services that were previously funded by 1991
Realignment. The 1991 Realignment funding that is no longer
supporting these mental health funds is transferred in the counties
CalWORKS Maintenance of Effort Subaccount up to $1,120,551,000.
Growth associated with 1991 realignment funding should continue to
accrue to the 1991 Mental Health Subaccount.
37)Contains an appropriation allowing this bill to take effect
immediately upon enactment.
COMMENTS : Chapter 40, Statutes of 2011 enacted 2011 Public Safety
Realignment that transferred approximately $5.6 billion in state
fiscal responsibilities for public safety programs from the state to
SB 1020
Page 31
local governments. This realignment also redefined 1.0625 of the
state sales and use tax as a local sales and use tax to support $5.1
billion of the realignment starting in the 2011-12 fiscal year and
redirected $453.4 million in vehicle license fee revenues from the
state to local governments to specifically support local law
enforcement programs previously funded by the state. The Schools and
Local Public Safety Protection Act of 2012 is a Constitutional
Amendment that is qualified for the November 2012 election that will
constitutionally protect the revenues transferred to local governments
as part of the enactment of 2011 Public Safety Realignment. This
constitutional amendment, among other things, also provides various
mandate protections for the state and guidance related to cost sharing
of future changes to federal entitlement programs realigned to the
counties.
Analysis Prepared by : Nicole Vazquez / BUDGET / (916) 319-2099
FN:
0004200