ACA 1, as introduced, John A. Pérez. State reserve policy.
Existing provisions of the California Constitution require the Governor to submit to the Legislature a budget for the ensuing fiscal year within the first 10 days of each calendar year and prohibit the Legislature from sending to the Governor for consideration a Budget Bill that would appropriate from the General Fund a total amount that exceeds General Fund revenues for that fiscal year estimated as of the date of the Budget Bill’s passage.
This measure would require the Director of Finance to submit estimates of General Fund revenues and expenditures for the ensuing fiscal year and the 3 fiscal years thereafter within 10 days following the submission of a budget by the Governor, following the submission of proposed adjustments to the Governor’s Budget, as required by statute, and following the enactment of the Budget Bill.
Existing provisions of the California Constitution require the Governor to submit to the Legislature a budget for the ensuing fiscal year within the first 10 days of each calendar year and prohibit the Legislature from sending to the Governor for consideration a Budget Bill that would appropriate from the General Fund a total amount that exceeds General Fund revenues for that fiscal year estimated as of the date of the Budget Bill’s passage.
Existing provisions of the California Constitution require the Legislature to establish a prudent state reserve fund in an amount the Legislature deems reasonable and necessary. Existing provisions of the California Constitution, approved by the electors on March 2, 2004, additionally establish the Budget Stabilization Account in the General Fund and require the Controller, commencing no later than September 30, 2006, and for each fiscal year thereafter, to transfer from the General Fund to the account a specified percentage of estimated General Fund revenues.
Section 8 of Article XVI of the California Constitution (Proposition 98) sets forth a formula for computing the minimum amount of General Fund revenues that the state is required to appropriate for the support of school districts, as defined, and community college districts for each fiscal year.
This measure would establish a replacement version of the Budget Stabilization Account and, commencing with the 2015-16 fiscal year, would require the Controller to annually transfer from the General Fund to the account amounts determined pursuant to specified formulae, consisting of General Fund proceeds of taxes derived from personal income taxes paid on net capital gains that exceed a designated level, based on estimates provided in the Budget Act.
This measure would require the Department of Finance, commencing with the 2015-16 fiscal year, to annually report information to the Legislature estimated amounts necessary to calculate the amount of the transfer from the General Fund to the Budget Stabilization Account for that fiscal year, and would require certain of these estimates to be included in the annual Budget Act. Commencing with the 2017-18 fiscal year, the measure would require the department to provide updated estimates for each of the 2 preceding fiscal years, calculated separately, for the purpose of determining the maximum allowable transfer from the General Fund to the Budget Stabilization Account for each of these fiscal years.
This measure would prohibit the balance in the Budget Stabilization Account from exceeding 10% of estimated General Fund proceeds of taxes. It also would authorize the use of funds, that otherwise would be transferred to the account, for appropriation for other designated fiscal obligations of the state, including, but not limited to, payment of payable claims for mandated costs, payment of unfunded pension liabilities and prefunding of other postemployment benefits, and reduction of existing bonded indebtedness.
This measure would establish the Public School System Stabilization Account, to provide a reserve for public school funding. Commencing with the 2015-16 fiscal year and pursuant to specified calculations, the Controller would transfer certain moneys from the General Fund into the Public School System Stabilization Account, for subsequent allocation to school districts and community college districts in fiscal years for which the minimum state funding obligation under Proposition 98 falls below specified levels. The measure would prohibit the transfer of moneys into the Public School System Stabilization Account for a fiscal year for which a maintenance factor is created under Proposition 98 or before a previously determined maintenance factor has been fully reimbursed. The measure would also prohibit the transfer of funds into the account in a fiscal year in which provisions of Proposition 98 have been suspended.
The funds transferred into the Public School System Stabilization Account under the measure in a fiscal year would be counted toward the state’s annual funding obligation for that fiscal year under Proposition 98, rather than in a fiscal year in which those funds are allocated. The measure would authorize the Controller to utilize funds in the account, that he or she determines to be unnecessary to meet foreseeable obligations, to help manage General Fund daily cash flow needs if that use does not interfere with the purpose of the account.
Existing provisions of the California Constitution authorize the Governor to issue a proclamation declaring an emergency in specified circumstances.
This measure would authorize the Legislature, upon the Governor’s proclamation declaring a budget emergency, as described, to enact a statute that returns funds from the Budget Stabilization Account to the General Fund for appropriation to address the budget emergency, appropriates funds in the Public School System Stabilization Account for the support of school districts and community college districts, or suspends or reduces the transfer of funds from the General Fund to the Budget Stabilization Account or the Public School System Stabilization Account.
Existing law requires the Secretary of State to submit ACA 4 of the 2009-10 Regular Session, a proposed legislative constitutional amendment relating to state finance, to the voters at the November 4, 2014, statewide general election.
This bill would direct the Secretary of State to withdraw ACA 4 from the ballot.
Vote: 2⁄3. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
P4 1Resolved by the Assembly, the Senate concurring, That the
2Legislature of the State of California at its 2013-14 Second
3Extraordinary Session, commencing on the twenty-fourth day of
4April 2014, two-thirds of the membership of each house
5concurring, hereby directs the Secretary of State to withdraw, from
6the consideration of the people of the State of California, Assembly
7Constitutional Amendment No. 4 of the 2009-10 Regular Session
8(Resolution Chapter 174 of the Statutes of 2010); and
9WHEREAS, The Legislature of the State of California hereby
10finds and declares that the intent of this proposed constitutional
11amendment is to repay state debt and protect the state from the
12negative effects of economic downturns; and
13WHEREAS, This measure will ensure that future revenue spikes
14from capital gains will be deposited into the state’s Budget
15Stabilization Account and be used to stabilize program funding
16when revenues decline; and
17WHEREAS, This measure will establish a reserve for school
18funding to prevent education cuts and teacher layoffs while
19maintaining current guaranteed levels of school funding; and
20WHEREAS, Multi-year budgeting will allow for better planning
21for the future; now, therefore, be it
22Resolved, That the Legislature, hereby proposes to the people
23of the State of California, that the Constitution of the State be
24amended as follows:
That Section 12.5 is added to Article IV thereof, to read:
Within 10 days following the submission of a budget
27pursuant to subdivision (a) of Section 12, following the proposed
P5 1adjustments to the Governor’s Budget required by subdivision (e)
2of Section 13308 of the Government Code or a successor statute,
3and following the enactment of the budget bill, or as soon as
4feasible thereafter, the Director of Finance shall submit to the
5Legislature both of the following:
6(a) Estimates of General Fund revenues for the ensuing fiscal
7year and for the three fiscal years thereafter.
8(b) Estimates of General Fund expenditures for the ensuing
9fiscal year and for the three fiscal years thereafter.
That Section 20 of Article XVI thereof is repealed.
(a) The Budget Stabilization Account is hereby
12created in the General Fund.
13(b) In each fiscal year as specified in paragraphs (1) to (3),
14inclusive, the Controller shall transfer from the General Fund to
15the Budget Stabilization Account the following amounts:
16(1) No later than September 30, 2006, a sum equal to 1 percent
17of the estimated amount of General Fund revenues for the 2006-07
18fiscal
year.
19(2) No later than September 30, 2007, a sum equal to 2 percent
20of the estimated amount of General Fund revenues for the 2007-08
21fiscal year.
22(3) No later than September 30, 2008, and annually thereafter,
23a sum equal to 3 percent of the estimated amount of General Fund
24revenues for the current fiscal year.
25(c) The transfer of moneys shall not be required by subdivision
26(b) in any fiscal year to the extent that the resulting balance in the
27account would exceed 5 percent of the General Fund revenues
28estimate set forth in the budget bill for that fiscal year, as enacted,
29or eight billion dollars ($8,000,000,000), whichever is greater. The
30Legislature may, by statute, direct the Controller, for one or more
31fiscal years, to transfer into the account amounts in excess of the
32levels prescribed by this subdivision.
33(d) Subject to any restriction imposed by this section, funds
34transferred to the Budget Stabilization Account shall be deemed
35to be General Fund revenues for all purposes of this Constitution.
36(e) The transfer of moneys from the General Fund to the Budget
37Stabilization Account may be suspended or reduced for a fiscal
38year as specified by an executive order issued by the Governor no
39later than June 1 of the preceding fiscal year.
P6 1(f) (1) Of the moneys transferred to the account in each fiscal
2year, 50 percent, up to the aggregate amount of five billion dollars
3($5,000,000,000) for all fiscal years, shall be deposited in the
4Deficit Recovery Bond Retirement Sinking Fund Subaccount,
5which is hereby created in the account for the purpose of retiring
6deficit recovery bonds authorized and issued as
described in
7Section 1.3, in addition to any other payments provided for by law
8for the purpose of retiring those bonds. The moneys in the sinking
9fund subaccount are continuously appropriated to the Treasurer to
10be expended for that purpose in the amounts, at the times, and in
11the manner deemed appropriate by the Treasurer. Any funds
12remaining in the sinking fund subaccount after all of the deficit
13recovery bonds are retired shall be transferred to the account, and
14may be transferred to the General Fund pursuant to paragraph (2).
15(2) All other funds transferred to the account in a fiscal year
16shall not be deposited in the sinking fund subaccount and may, by
17statute, be transferred to the General Fund.
That Section 20 is added to Article XVI thereof, to read:
(a) The Budget Stabilization Account is hereby
20created in the General Fund.
21(b) (1) For the 2015-16 fiscal year and each fiscal year
22thereafter, based on the Budget Act for the fiscal year, the
23Department of Finance shall provide to the Legislature all of the
24following information:
25(A) An estimate of the amount of General Fund proceeds of
26taxes that may be appropriated pursuant to Article XIII B for that
27fiscal year.
28(B) (i) An estimate of that portion of the General Fund proceeds
29of taxes identified in subparagraph (A) that is derived from
personal
30income taxes paid on net capital gains.
31(ii) The portion of the estimate in clause (i) that exceeds 6.5
32percent of the estimate made under subparagraph (A).
33(C) That portion of the state’s funding obligation under Section
348 that results from including the amount calculated under clause
35(ii) of subparagraph (B), if any, as General Fund proceeds of taxes.
36(D) The amount of any appropriations described in subdivision
37(g) in lieu of all or part of the transfer to the Budget Stabilization
38Account.
39(E) The amount resulting from subtracting the combined values
40calculated under subparagraphs (C) and (D) from the value
P7 1calculated under clause (ii) of subparagraph (B). If less than zero,
2the amount shall be considered zero for this purpose.
3(F) The lesser of the amount calculated under subparagraph (E)
4or the amount of transfer resulting in the balance in the Budget
5Stabilization Account reaching the limit specified in subdivision
6(e). This is the maximum amount that may be transferred to the
7Budget Stabilization Account.
8(2) In the 2016-17 fiscal year, with respect to the 2015-16 fiscal
9year only, and in the 2017-18 fiscal year and each fiscal year
10thereafter, separately with respect to each of the two next preceding
11fiscal years, the Department of Finance shall calculate all of the
12following, using the same methodology used for the relevant fiscal
13year, and provide those calculations to the Legislature:
14(A) An updated estimate of the amount of General Fund
15proceeds of taxes that may be appropriated pursuant to Article
16XIII B.
17(B) (i) An updated estimate of that portion of the General Fund
18proceeds of taxes identified in subparagraph (A) that is derived
19from personal income taxes paid on net capital gains.
20(ii) That portion of the updated estimate in clause (i) that exceeds
216.5 percent of the updated estimate made under subparagraph (A).
22(C) The updated calculation of that portion of the state’s funding
23obligation under Section 8 that results from including the updated
24amount calculated under clause (ii) of subparagraph (B), if any,
25as General Fund proceeds of taxes.
26(D) The amount of any appropriations described in subdivision
27(g) in lieu of all or part of the transfer to the Budget Stabilization
28Account.
29(E) The amount resulting from subtracting the combined values
30calculated under subparagraphs (C) and (D) from the value
31calculated under clause (ii) of subparagraph (B). If less than zero,
32the amount shall be considered zero for this purpose.
33(F) The amount previously transferred for the fiscal year by the
34Controller from the General Fund to the Budget Stabilization
35Account pursuant to subdivisions (c) and (d).
36(G) The lesser of (i) the amount, not less than zero, resulting
37from subtracting, from the amount calculated under subparagraph
38(E), the value of any suspension or reduction of transfer pursuant
39to paragraph (1) of subdivision (a) of Section 22 previously
40approved by the Legislature for the relevant fiscal year, and the
P8 1amount previously transferred for that fiscal year by the Controller
2as described in subparagraph (F), or (ii) the amount of transfer
3resulting
in the balance in the Budget Stabilization Account
4reaching the limit as specified in subdivision (e). This is the
5maximum amount that may be transferred to the Budget
6Stabilization Account for that fiscal year.
7(c) (1) By October 1 of the 2015-16 fiscal year and each fiscal
8year thereafter, based on the estimates set forth in the annual
9Budget Act pursuant to paragraphs (1) and (2) of subdivision (i),
10the Controller shall transfer amounts between the General Fund
11and the Budget Stabilization Account, pursuant to a schedule
12provided by the Director of Finance, as provided in paragraph (2).
13(2) In the fiscal year to which the Budget Act applies, the
14amount identified in subparagraph (F) of paragraph (1) of
15subdivision (b) shall be transferred from the General Fund to the
16Budget Stabilization Account, subject to any suspension or
17reduction of this transfer
pursuant to paragraph (1) of subdivision
18(a) of Section 22.
19(d) By October 1 of the 2016-17 fiscal year and each fiscal year
20thereafter, based on the estimates set forth in the annual Budget
21Act pursuant to paragraphs (3) and (4) of subdivision (i), the
22Controller shall transfer amounts between the General Fund and
23the Budget Stabilization Account pursuant to a schedule provided
24by the Director of Finance, as follows:
25(1) If the amount in subparagraph (G) of paragraph (2) of
26subdivision (b) is greater than zero, transfer that amount from the
27General Fund to the Budget Stabilization Account, subject to any
28suspension or reduction of this transfer pursuant to paragraph (1)
29of subdivision (a) of Section 22.
30(2) If the amount described in subparagraph (F) of paragraph
31(2) of subdivision (b) is greater than the amount
calculated under
32subparagraph (E) of paragraph (2) of subdivision (b), transfer that
33excess amount from the Budget Stabilization Account back to the
34General Fund.
35(e) Notwithstanding any other provision of this section, the
36amount of a transfer to the Budget Stabilization Account pursuant
37to subdivisions (c) and (d) for any fiscal year shall not exceed an
38amount that would result in a balance in the account that, when
39the transfer is made, exceeds 10 percent of the amount of General
40Fund proceeds of taxes for the fiscal year estimated pursuant to
P9 1subdivision (b). For any fiscal year, General Fund proceeds of
2taxes that, but for this paragraph, would have been transferred to
3the Budget Stabilization Account may be expended only for
4infrastructure, as defined by Section 13101 of the Government
5Code, as that section read on January 1, 2014, including deferred
6maintenance thereon, or to pay down obligations or avoid debt as
7specified in subdivision
(g).
8(f) The funds described in subdivision (b) as General Fund
9proceeds of taxes are General Fund proceeds of taxes for purposes
10of Section 8 for the fiscal year to which those proceeds are
11attributed, but are not deemed to be additional General Fund
12proceeds of taxes on the basis that the funds are thereafter
13transferred from the Budget Stabilization Account to the General
14Fund.
15(g) In lieu of the entire transfer, or a portion thereof, to the
16Budget Stabilization Account from the General Fund pursuant to
17subdivisions (c) and (d), the Legislature may appropriate funds
18from the General Fund for the following obligations and purposes:
19(1) Unfunded prior fiscal year General Fund obligations pursuant
20to Section 8 that existed on July 1, 2014.
21(2) Budgetary
loans to the General Fund, from funds outside
22the General Fund, that had outstanding balances on January 1,
232014.
24(3) Payable claims for mandated costs incurred prior to the
252004-05 fiscal year that have not yet been paid, and that pursuant
26to paragraph (2) of subdivision (b) of Section 6 of Article XIII B
27are permitted to be paid over a term of years, as prescribed by law.
28(4) Unfunded liabilities for state-level pension plans and
29prefunding other postemployment benefits, in excess of current
30base amounts as established for the fiscal year in which the funds
31would otherwise be transferred pursuant to subdivisions (c) and
32(d). For the purpose of this paragraph, current base amounts are
33those required to be paid pursuant to law, an approved
34memorandum of understanding, benefit schedules established by
35the employer or entity authorized to establish those contributions
36for employees
excluded or exempted from collective bargaining,
37or any combination of these. To qualify as appropriation in lieu
38of the transfer, the appropriation must supplement and not supplant
39funding that would otherwise be made available to pay for the
40obligations described in this paragraph for the fiscal year.
P10 1(5) Elimination of unexercised authority to contract for future
2indebtedness, by appropriating substitute funding for debts and
3liabilities authorized by law in accordance with Section 1.
4Substitute funding appropriated pursuant to this paragraph shall
5not exceed the amount of the indebtedness authorized by the law
6less the amount of indebtedness actually contracted for at the time
7of the appropriation. The funds appropriated pursuant to this
8paragraph shall reduce the amount of the indebtedness authorized
9by law only to an amount not less than the amount contracted for
10under that authority at the time of the appropriation.
11(h) The Controller may utilize funds in the Budget Stabilization
12Account, that he or she determines to currently be unnecessary for
13the purposes of this section, to help manage General Fund daily
14cash flow needs. Any use pursuant to this subdivision shall not
15interfere with the purposes of the Budget Stabilization Account.
16(i) The annual Budget Act shall include the estimates described
17in all of the following:
18(1) Clause (ii) of subparagraph (B) of paragraph (1) of
19subdivision (b).
20(2) Subparagraph (F) of paragraph (1) of subdivision (b).
21(3) Clause (ii) of subparagraph (B) of paragraph (2) of
22subdivision (b).
23(4) Subparagraph (G) of paragraph (2) of subdivision (b).
That Section 21 is added to Article XVI thereof, to
25read:
(a) The Public School System Stabilization Account
27is hereby created in the General Fund.
28(b) On or before October 1 of each fiscal year, commencing
29with the 2015-16 fiscal year, based on the amounts identified in
30the annual Budget Act pursuant to subdivision (b) of Section 20,
31the Controller shall transfer, pursuant to a schedule provided by
32the Director of Finance, amounts from the General Fund to the
33Public School System Stabilization Account as follows:
34(1) (A) For the 2015-16 fiscal year, and for each fiscal year
35thereafter, any positive amount identified in subparagraph (C) of
36paragraph (1) of subdivision (b) of Section 20 shall be transferred
37from
the General Fund to the Public School System Stabilization
38Account in the amount calculated under subparagraph (B), subject
39to any reduction or suspension of this transfer pursuant to any other
P11 1provision of this section or paragraph (3) of subdivision (a) of
2Section 22.
3(B) The Director of Finance shall calculate the amount by which
4the positive amount identified in subparagraph (C) of paragraph
5(1) of subdivision (b) of Section 20, in combination with all other
6moneys required to be applied by the State for the support of school
7districts and community college districts for that fiscal year
8pursuant to Section 8, exceeds the sum of the total allocations to
9school districts and community college districts from General Fund
10proceeds of taxes appropriated pursuant to Article XIII B and
11allocated local proceeds of taxes in the prior fiscal year, plus any
12allocations from the Public School System Stabilization Account
13in the prior fiscal year, less
any transfers to the Public School
14System Stabilization Account pursuant to this section in the prior
15fiscal year and any revenues allocated pursuant to subdivision (a)
16of Section 8.5, adjusted for the percentage change in average daily
17attendance and adjusted for the higher of the change in the cost of
18living pursuant to paragraph (1) of subdivision (e) of Section 8 of
19Article XIII B or the cost of living adjustment applied to school
20district and community college district general purpose
21apportionments.
22(2) (A) Commencing with the 2016-17 fiscal year, and for each
23fiscal year thereafter, to the extent the amount calculated under
24this paragraph exceeds the amounts previously transferred by the
25Controller from the General Fund to the Public School System
26Stabilization Account for a preceding fiscal year, any positive
27amount calculated pursuant to subparagraph (C) of paragraph (2)
28of subdivision (b) of Section 20 for that
fiscal year shall be
29transferred from the General Fund to the Public School System
30Stabilization Account in the amount calculated under subparagraph
31(B), subject to any reduction or suspension of this transfer pursuant
32to any other provision of this section or paragraph (3) of
33subdivision (a) of Section 22.
34(B) The Director of Finance shall calculate the amount by which
35the positive amount identified in subparagraph (C) of paragraph
36(2) of subdivision (b) of Section 20, in combination with all other
37moneys required to be applied by the State for the support of school
38districts and community college districts for that fiscal year
39pursuant to Section 8, exceeds the sum of the total allocations to
40school districts and community college districts from General Fund
P12 1proceeds of taxes appropriated pursuant to Article XIII B and
2allocated local proceeds of taxes in the prior fiscal year, plus any
3allocations from the Public School System Stabilization
Account
4in the prior fiscal year, less any transfers to the Public School
5System Stabilization Account pursuant to this section in the prior
6fiscal year and any revenues allocated pursuant to subdivision (a)
7of Section 8.5, adjusted for the percentage change in average daily
8attendance and adjusted for the higher of the change in the cost of
9living pursuant to the paragraph (1) of subdivision (e) of Section
108 of Article XIII B or the cost of living adjustment applied to
11school district and community college district general purpose
12apportionments.
13(c) Commencing with the 2016-17 fiscal year, and for each
14fiscal year thereafter, if the amount calculated pursuant to
15subparagraph (C) of paragraph (2) of subdivision (b) of Section
1620 for a fiscal year is less than the amounts previously transferred
17by the Controller from the General Fund to the Public School
18System Stabilization Account for that fiscal year, the amount of
19this difference shall be
appropriated and allocated by the State
20from the Public School System Stabilization Account for the
21support of school districts and community college districts.
22(d) Notwithstanding any other provision of this section, the
23amount transferred to the Public School System Stabilization
24Account pursuant to subdivision (b) for a fiscal year shall not
25exceed the amount by which the amount of state support calculated
26pursuant to paragraph (1) of subdivision (b) of Section 8 exceeds
27the amount of state support calculated pursuant to paragraph (2)
28of subdivision (b) of Section 8 for that fiscal year. If the amount
29of state support calculated pursuant to paragraph (1) of subdivision
30(b) of Section 8 does not exceed the amount of state support
31calculated pursuant to paragraph (2) of subdivision (b) of Section
328 for a fiscal year, no amount shall be transferred to the Public
33School System Stabilization Account pursuant to subdivision
(b)
34for that fiscal year.
35(e) Notwithstanding any other provision of this section, no
36amount shall be transferred to the Public School System
37Stabilization Account pursuant to subdivision (b) for a fiscal year
38for which a maintenance factor is determined pursuant to
39subdivision (d) of Section 8.
P13 1(f) Notwithstanding any other provision of this section, no
2amount shall be transferred to the Public School System
3Stabilization Account pursuant to subdivision (b) until the
4maintenance factor determined pursuant to subdivisions (d) and
5(e) of Section 8 for fiscal years prior to the 2014-15 fiscal year
6has been fully allocated. Transfers may be made beginning in the
7fiscal year following the fiscal year in which it is determined, based
8on the Budget Act for that fiscal year, that this condition will be
9met. If a transfer is made for a
fiscal year for which it is later
10determined that this condition has not been met, the amount of the
11transfer shall be appropriated and allocated from the Public School
12System Stabilization Account for the support of school districts
13and community college districts. No transfer shall be made for a
14year for which it was determined, based on the Budget Act for that
15fiscal year, that this condition would not be met but was
16subsequently determined to have been met in that year or a prior
17fiscal year.
18(g) Notwithstanding any other provision of this section, no
19amount shall be transferred to the Public School System
20Stabilization Account for any fiscal year for which any of the
21provisions of subdivision (b) of Section 8 are suspended pursuant
22to subdivision (h) of Section 8.
23(h) Notwithstanding any other provision of this section, for any
24fiscal year, the amount
of a transfer to the Public School System
25Stabilization Account pursuant to subdivision (b) shall not exceed
26an amount that would result in a balance in the account that is in
27excess of 10 percent of the total allocations to school districts and
28community college districts from General Fund proceeds of taxes
29appropriated pursuant to Article XIII B and allocated local proceeds
30of taxes for that fiscal year pursuant to Section 8. For any fiscal
31year, General Fund proceeds of taxes that, but for this subdivision,
32would have been transferred to the Public School System
33Stabilization Account shall be applied by the State for the support
34of school districts and community colleges.
35(i) In any fiscal year in which the amount required to be applied
36by the State for the support of school districts and community
37college districts for that fiscal year pursuant to Section 8 is less
38than the total allocations to school districts and
community college
39districts from General Fund proceeds of taxes appropriated pursuant
40to Article XIII B and allocated local proceeds of taxes in the prior
P14 1fiscal year, plus any allocations from the Public School System
2Stabilization Account in the prior fiscal year, less any transfers to
3the Public School System Stabilization Account in the prior fiscal
4year and any revenues allocated pursuant to subdivision (a) of
5Section 8.5, adjusted for the percentage change in average daily
6attendance and adjusted for the higher of the change in the cost of
7living pursuant to paragraph (1) of subdivision (e) of Section 8 of
8Article XIII B or the cost of living adjustment applied to school
9district and community college district general purpose
10apportionments, the amount of the deficiency shall be appropriated
11and allocated by the State from the Public School System
12Stabilization Account for the support of school districts and
13community college districts.
14(j) Funds transferred to the Public School System Stabilization
15Account shall be deemed, for purposes of Section 8, to be moneys
16applied by the State for the support of school districts and
17community college districts in the fiscal year for which the transfer
18is made, and not in the fiscal year in which moneys are
19appropriated from the account.
20(k) Nothing in this section shall be construed to reduce, or
21otherwise change, the amount of the moneys required to be applied
22by the State for the support of school districts and community
23college districts pursuant to Sections 8 and 8.5.
24(l) The Controller may utilize funds in the Public School System
25Stabilization Account, that he or she determines to currently be
26unnecessary for the purposes of this section, to help manage
27
General Fund daily cashflow needs. Any use of funds by the
28Controller pursuant to this subdivision shall not interfere with the
29purposes of the Public School System Stabilization Account.
That Section 22 is added to Article XVI thereof, to read:
(a) Upon the Governor’s proclamation declaring a
32budget emergency and identifying the conditions constituting the
33emergency, the Legislature may pass a bill that does any of the
34following:
35(1) Suspends or reduces by a specified dollar amount for one
36fiscal year the transfer of moneys from the General Fund to the
37Budget Stabilization Account required by Section 20.
38(2) (A) Returns funds that have been transferred to the Budget
39Stabilization Account pursuant to Section 20 to the General Fund
40for appropriation to address the budget emergency.
P15 1(B) Not more than 50 percent of the balance in the
Budget
2Stabilization Account may be returned to the General Fund for
3appropriation pursuant to subparagraph (A) in any fiscal year,
4unless funds in the Budget Stabilization Account have been
5returned to the General Fund for appropriation in the immediately
6preceding fiscal year.
7(3) Suspends or reduces by a specified dollar amount for one
8fiscal year the transfer of moneys from the General Fund to the
9Public School System Stabilization Account required by Section
1021.
11(4) Appropriates funds transferred to the Public School System
12Stabilization Account pursuant to Section 21 and allocates those
13funds for the support of school districts and community college
14districts.
15(b) For purposes of this section, “budget emergency” means
16any of the following:
17(1) An
emergency declared by the Governor, within the meaning
18of paragraph (2) of subdivision (c) of Section 3 of Article XIII B.
19(2) A fiscal emergency declared by the Governor, within the
20meaning of paragraph (1) of subdivision (f) of Section 10 of Article
21IV.
22(3) A determination by the Governor that the estimated resources
23for the ensuing fiscal year, after satisfying the requirements of
24Section 8 for that fiscal year, will not be adequate to fund
25expenditures, other than those necessary to satisfy the requirements
26of Section 8, at or above the current fiscal year expenditure levels,
27adjusted for both of the following:
28(A) The percentage change in the cost of living for the State,
29as measured by the California Consumer Price Index.
30(B) The percentage growth
in the civilian population of the
31State.
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