BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1025
                                                                  Page  1


          SENATE THIRD READING
          SB 1025 (Budget and Fiscal Review Committee)
          As Amended  June 13, 2012
          Majority vote.  Budget Bill Appropriation Takes Effect 
          Immediately

           SENATE VOTE  :Vote not relevant  
           
           SUMMARY  :  This supplemental appropriations bill (deficiency 
          bill) appropriates $1.1 billion from the General Fund (GF) to 
          the State Controller for allocation to the Department of Health 
          Care Services ($759.6 million), the Department of Corrections 
          and Rehabilitation ($295.4 million), the Department of Mental 
          Health ($41.8 million), and to local governments for homicide 
          trial reimbursement ($125,436).  Specifically,  this bill  :

          1)Allocates $759.6 million to the Department of Health Care 
            Services, largely due to court rulings preventing the 
            implementation of Medi-Cal provider payment reductions and a 
            rejection by the federal government of a proposal to implement 
            various co-payments for Medi-Cal beneficiaries.

          2)Allocates $295.4 million to the Department of Corrections and 
            Rehabilitation, largely due to medical staffing and specialty 
            health care costs, pharmaceutical expenses and cost overruns 
            related to the guarding and transportation of inmates 
            traveling to and from health care appointments. 

          3)Allocates $41.8 million to the Department of Mental Health, 
            largely due to state hospital costs related to court-driven 
            treatment and documentation requirements to comply with the 
            Civil Rights for Institutionalized Persons Act and increases 
            in pharmaceutical and outside medical care expenses.

          4)Allocates $125,436 for local government reimbursement for 
            homicide trials.  Lassen County received $118,928; Mariposa 
            County received $6,508.

          5)Contains an appropriation allowing this bill to take effect 
            immediately upon enactment.

           FISCAL EFFECT  :  Appropriates $1.1 billion (GF) to the State 
          Controller for allocation to specified departments and budget 
          items for unanticipated expenses.  This appropriation is 








                                                                  SB 1025
                                                                  Page  2


          factored into the current May Revision budget figures.  

           COMMENTS  :  This bill contains funding necessary to address 
          deficiencies in the 2011 Budget Act.  These funds have already 
          been spent.  The proposed funding in this measure has been 
          approved by the Department of Finance and the Joint Legislative 
          Budget Committee.


           Analysis Prepared by  :   Mark Martin / BUDGET / (916) 319-2099


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