BILL ANALYSIS                                                                                                                                                                                                    �






                  SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW
                                Mark Leno, Chair
                                        
          Bill No:       AB 1470
          Author:        Committee on Budget
          As Amended:    June 12, 2014
          Consultant:    Peggy Collins 
          Fiscal:        Yes
          Hearing Date:  June 15, 2014
          
          Subject:  Budget Act of 2013

          Summary:  This bill makes supplemental appropriations to  
          the Budget Act of 2013.  Specifically, this bill  
          appropriates $553,358,000 (General Fund) to the Department  
          of Health Care Services; $443,000 (General Fund) to the  
          Victim Compensation and Government Claims Board; and  
          $291,510 (General Fund) to reimburse qualified counties for  
          costs of homicide trials.

          Background:  

              1.   Department of Health Care Services.  Unanticipated  
               costs in the current year associated with the delay in  
               federal approval of the hospital quality assurance  
               fee; the delay in the implementation of, and changes  
               to, the 10 percent provider rate reduction in  
               Medi-Cal; increased costs associated with the  
               mandatory expansion of Medi-Cal related to health care  
               reform; and other miscellaneous adjustments.  These  
               costs are offset by other savings, for a total  
               deficiency of $553,358,000.

              2.   Victim Compensation and Government Claims Board  
               (board).  The Government Claims Program (program)  
               processes claims for money or damages against the  
               state and is supported through filing fees and  
               surcharges on approved claims.  Program revenues have  
               averaged $1.2 million annually.  However, current year  
               revenues have fallen significantly below that average  
               and are estimated to be $664,587.  The board has  
               redirected staff and reduced operating expenditures  
               and equipment to reduce the deficiency but a shortfall  
               of $443,000 remains.
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              3.   Homicide Trials.   Chapter 3 (commencing with  
               Section 15200) of Part 6 of Division 3 of Title 2 of  
               the Government Code allow for qualified counties to  
               seek state reimbursement for homicide trial costs,  
               upon review and approval of the State Controller.  The  
               counties of Amador ($115,653), Mariposa ($7,658), and  
               Lassen ($168,199) have all made claims that have been  
               approved by the State Controller.  

          Fiscal Effect:  Appropriates $554,092,510 from the General  
          Fund to address various shortfalls in the Budget Act of  
          2013.

          Support:   N/A

          Opposed:  N/A

          Comments:  
          























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