BILL ANALYSIS
Appropriations Committee Fiscal Summary
AB2684 (Bock)
Hearing Date:8/21/00 Amended:8/14/00
Consultant: Anne Maitland Policy Vote:Local Govt:
4-0
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BILL SUMMARY:
AB 2684 allows local governments which reduce costs of two
mandates to receive an amount equal to 1/3 of the cost
savings in addition to the mandate reimbursement
Fiscal Impact (in thousands)
Major Provisions 2000-01 2001-02 2002-03
Fund
SCO admin 97 49*
50* General
Allocations unknown, potential increased reimbursements
Local
Reimbursements unknown, potential cost savings
General
* may be offset by mandate cost savings
STAFF COMMENTS:
Current law requires the State to reimburse local
governments for mandated increases in levels of local
service. The Commission on State Mandates is responsible
for determining if legislation creates a reimbursable state
mandate and for specifying which local costs are eligible
to be reimbursed.
AB 2684 requires the Controller to develop a Savings
Allocation Program. Under this program, a local government
which identifies savings generated from implementing two
specified mandates is entitled to receive up to one-third
of the savings verified by the Controller in addition to
the mandate reimbursement. Funding for this "Savings
Allocation Program" will be included in the annual claims
bill.
The two mandates identified in AB 2684 are supportive
services for handicapped children and the child abduction
and recovery program. In 1999-00 the State reimbursed
local governments $48.5 million for these two mandates.
Local governments may appeal the Controller's decision
about cost savings to the Commission on State Mandates.
This program sunsets 1/1/07.
Staff notes that cost shifting between fiscal years may
result in the appearance of cost savings which are not
sustained over time. If costs rise again, the State is
still liable for reimbursement even if locals had received
a Savings Allocation "bonus" for earlier savings.