Amended in Assembly August 4, 2014

Senate Bill No. 872

Introduced by Committee on Budget and Fiscal Review

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(Coauthors: Assembly Members Muratsuchi, Skinner, and Williams)

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January 9, 2014

begin delete An act relating to the Budget Act of 2014. end delete begin insert An act to amend the Budget Act of 2014 (Chapter 25 of the Statutes of 2014) by amending Items 6440-001-0001 and 6610-001-0001 of Section 2.00 of that act, relating to the State Budget, and making an appropriation therefor, to take effect immediately, budget bill. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 872, as amended, Committee on Budget and Fiscal Review. Budget Act of 2014.

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The Budget Act of 2014 made appropriations for the support of state government for the 2014-15 fiscal year.

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This bill would amend the Budget Act of 2014 by revising items of appropriation pertaining to the University of California and the California State University.

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This bill would declare that it is to take effect immediately as a Budget Bill.

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This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2014.

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Vote: majority. Appropriation:  begin delete no end delete begin insert yes end insert . Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

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begin insert Item 6440-001-0001 of Section 2.00 of the end insert begin insert Budget
Act of 2014 end insert begin insert is amended to read: end insert

 

6440-001-0001--For support of University of California    begin delete end delete

begin delete 2,935,671,000 end delete begin delete end delete begin insert 2,985,671,000 end insert

Schedule:

(1)

Support    begin delete end delete

begin delete 2,935,671,000 end delete begin delete end delete begin insert 2,985,671,000 end insert

Provisions:

1.

This appropriation is exempt from Sections 6.00 and 31.00.

2.

(a)

The Regents of the University of California shall approve a plan that includes at least all of the following:

(1)

Projections of available resources in the 2015-16, 2016-17, and 2017-18 fiscal years. In projecting General Fund appropriations and student tuition and fee revenues, the university shall use any assumptions provided by the Department of Finance. The Department of Finance shall provide any assumptions no later than August 1, 2014.

(2)

Projections of expenditures in the 2015-16, 2016-17, and 2017-18 fiscal years and descriptions of any changes to current operations necessary to ensure that expenditures in each of those years are not greater than the available resources projected for each of those years pursuant to paragraph (1).

(3)

Projections of resident and non-resident enrollment in the 2015-16, 2016-17, and 2017-18 academic years, assuming implementation of any changes described in paragraph (2).

(4)

The university’s goals for each of the performance measures listed in subdivision (b) of Section 92675 of the Education Code for the 2015-16, 2016-17, and 2017-18 academic years, assuming implementation of any changes described in paragraph (2).

(b)

The plan approved pursuant to subdivision (a) shall be submitted, no later than November 30, 2014, to the Director of Finance, the chairpersons of the committees in each house of the Legislature that consider the State Budget, the chairpersons of the budget subcommittees in each house of the Legislature that consider the budget for the University of California, the chairpersons of the committees in each house of the Legislature that consider appropriations, and the chairpersons of the policy committees in each house of the Legislature with jurisdiction over bills relating to the university.

2.5.

Of the funds appropriated in this item:

(a)

$4,000,000 shall be used for the centers for labor research and education at the Berkeley and Los Angeles campuses. Of this amount, $2,000,000 is one-time funding.

(b)

$2,000,000 is one-time funding and shall be used for the California Blueprint for Research to Advance Innovations in Neuroscience Act of 2014.

(c)

$770,000 shall be used for the Statewide Database.

3.

(a)

The University of California shall allocate from this appropriation the amount necessary to pay in full the fees anticipated to become due and payable during the fiscal year associated with lease-revenue bonds issued by the State Public Works Board on its behalf that have been defeased and the amount of general obligation bond debt service attributable to the university.

(b)

The Controller shall transfer funds from this appropriation upon receipt of the following reports:

(1)

The State Public Works Board shall report to the Controller the fees anticipated to become due and payable in the fiscal year associated with lease-revenue bonds that were issued on behalf of the university that have been defeased.

(2)

The Department of Finance shall report to the Controller the amount of general obligation bond debt service anticipated to become due and payable in the fiscal year attributable to the university.

(3)

The State Public Works Board or the Department of Finance shall submit a revised report if either entity determines that an amount previously reported to the Controller is inaccurate based on revised estimates or actual amounts. If necessary pursuant to any revised reports, the Controller shall return funds to this appropriation. Any returned funds that were previously transferred pursuant to this subdivision shall be available for expenditure until June 30, 2016.

4.

Payments made by the state to the University of California for each month from July through April shall not exceed one-twelfth of the amount appropriated in this item, less the amount that is allocated pursuant to subdivision (a) of Provision 3. Transfers of funds pursuant to subdivision (b) of Provision 3 shall not be considered payments made by the state to the university.

5.

The funds appropriated in this item shall not be available to support auxiliary enterprises or intercollegiate athletic programs.

begin insert 6. end insert

begin insert Of the funds appropriated in this item, $50,000,000 is available for one-time purposes, including deferred maintenance. The amount allocated pursuant to this provision shall be available for encumbrance or expenditure until June 30, 2016. It is the intent of the Legislature that, if the economy continues to recover and General Fund revenues exceed projections, the augmentation provided in this provision shall become on-going beginning in the 2015-16 fiscal year for the purpose of increasing enrollment of California students and improving student services. end insert

 

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begin insert SEC. 2. end insert   

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begin insert Item 6610-001-0001 of Section 2.00 of the end insert begin insert Budget Act
of 2014 end insert begin insert is amended to read: end insert

 

6610-001-0001--For support of California State University    begin delete end delete

begin delete 2,692,273,000 end delete begin delete end delete begin insert 2,742,273,000 end insert

Schedule:

(1)

Support    begin delete end delete

begin delete 2,692,273,000 end delete begin delete end delete begin insert 2,742,273,000 end insert

Provisions:

1.

This appropriation is exempt from Sections 6.00 and 31.00 but is subject to the applicable sections of the Government Code referred to in subdivision (a) of Section 31.00.

2.

(a)

The Trustees of the California State University shall approve a plan that includes at least all of the following:

(1)

Projections of available resources in the 2015-16, 2016-17, and 2017-18 fiscal years. In projecting General Fund appropriations and student tuition and fee revenues, the university shall use any assumptions provided by the Department of Finance. The Department of Finance shall provide any assumptions no later than August 1, 2014.

(2)

Projections of expenditures in the 2015-16, 2016-17, and 2017-18 fiscal years and descriptions of any changes to current operations necessary to ensure that expenditures in each of those years are not greater than the available resources projected for each of those years pursuant to paragraph (1).

(3)

Projections of resident and non-resident enrollment in the 2015-16, 2016-17, and 2017-18 academic years, assuming implementation of any changes described in paragraph (2).

(4)

The university’s goals for each of the performance measures listed in subdivision (b) of Section 89295 of the Education Code for the 2015-16, 2016-17, and the 2017-18 academic years, assuming implementation of any changes described in paragraph (2).

3.

(a)

The California State University shall allocate from this appropriation the amount necessary to pay in full all amounts anticipated to become due and payable during the fiscal year for rental, fees, and insurance associated with lease-revenue bonds issued by the State Public Works Board on its behalf and general obligation bond debt service attributable to the University.

(b)

The Controller shall transfer funds from this appropriation upon receipt of the following reports:

(1)

The State Public Works Board shall report to the Controller the rental, fees, and insurance anticipated to become due and payable in the fiscal year associated with its lease-revenue bonds issued on behalf of the University.

(2)

The Department of Finance shall report to the Controller the amount of general obligation bond debt service anticipated to become due and payable in the fiscal year attributable to the University.

(3)

The State Public Works Board or the Department of Finance shall submit a revised report if either entity determines that an amount previously reported to the Controller is inaccurate based on revised estimates or actual amounts. If necessary pursuant to any revised reports, the Controller shall return funds to this appropriation. Any returned funds that were previously transferred pursuant to this subdivision shall be available for expenditure until June 30, 2016.

4.

Payments made by the state to the California State University for each month from July through April shall not exceed one-twelfth of the amount appropriated in this item, less the amount that is allocated pursuant to subdivision (a) of Provision 3. Transfers of funds pursuant to subdivision (b) of Provision 3 shall not be considered payments made by the state to the University.

5.

Contributions to the Public Employees’ Retirement Fund are charged to this appropriation pursuant to Section 20822 of the Government Code.

6.

The Director of Finance has the authority to adjust this appropriation pursuant to Section 3.60, as well as Section 89762 of the Education Code.

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begin insert Of the funds appropriated in this item, $50,000,000 is available for one-time purposes, including deferred maintenance. The amount allocated pursuant to this provision shall be available for encumbrance or expenditure until June 30, 2016. It is the intent of the Legislature that, if the economy continues to recover and General Fund revenues exceed projections, the augmentation provided in this provision shall become end insert begin insert on-going beginning in the 2015-16 fiscal year for the purpose of increasing enrollment of California students and improving student services. end insert

 

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begin insert SEC. 3. end insert   

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This act is a Budget Bill within the meaning of
subdivision (e) of Section 12 of Article IV of the California
Constitution and shall take effect immediately.

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SECTION 1.  

It is the intent of the Legislature to enact statutory
changes relating to the Budget Act of 2014.

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