CDCAN Report #119-2011, June 8, 2011

 

Full Budget Committees Will Hold Separate Hearings – Seen As Step Before Democratic Legislative Leaders Push For Budget Vote By Next Week Before June 15^th State Constitutional Deadline

 

SACRAMENTO, CALIF  (CDCAN)  [Last Updated 06/08/2011  1:10 PM] -  Both the full Senate and Assembly Budget Committees are scheduled to meet today (Wednesday) in separate hearings, both at 3:30 PM, to largely review actions taken late last month by their budget subcommittees – and in the case of the Senate, possibly take some action on some unresolved or new budget items.  The informational hearings today – where no major new actions are expected – is the next step before Legislative Democratic leaders push for a floor vote in the Assembly and State Senate on the 2011-2012 State Budget (and budget related bills – called “budget trailer bills”) next week. 

 

For the Senate Budget and Fiscal Review Committee hearing, except for two items dealing with CalWORKS (the State’s “welfare to work” program) and one item dealing with Public Health regarding water, there are no agenda items covering any other health and human services budget issues. 

 

There are no specific health and human services budget items or issues on the Assembly Budget Committee hearing agenda today and the committee is not expected to take action on any individual budget items.  

 

The Senate Budget and Fiscal Review Committee, chaired  by Sen. Mark Leno (Democrat – San Francisco) will meet at 3:30 PM at the State Capitol in Room 4203.  The Assembly Budget Committee, chaired by Assemblymember Bob Blumenfield (Democrat – Van Nuys) will also meet at 3:30 PM, at the State Capitol in Room 4202.  Both hearings will be televised live on CalChannel (check your local cable listings for channel) and also webcasted live on the CalChannel website at www.calchannel.com

 

A copy of the Assembly Budget Committee agenda with the 46 budget overview, is attached to this CDCAN Report as “20110608-AssemblyBudgetCommitteeAgenda.pdf” 

 

For a copy of the Senate Budget and Fiscal Review Committee agenda click here:

http://sbud.senate.ca.gov/sites/sbud.senate.ca.gov/files/FullC/682011SBFRHearingAgenda.pdf   (this was not sent out as an attachment to this CDCAN Report because virtually none of the agenda items had direct major impact on budget items or issues impacting people with disabilities, mental health needs, seniors and low income families with the exception of the two agenda items dealing with CalWORKS. 

 

Assembly and Senate Budget Committee Agendas Released

·        The Senate Budget and Fiscal Review Committee released this morning a 53 page agenda (attached to this report), though, with the exception of two items dealing with CalWORKS (the State’s “welfare to work” program) and one public health item dealing with mutual water agencies, no other health or human services budget issues are on the agenda. 

·        Nearly all of Governor Brown’s new budget proposals that he released on May 16^th that revised his January 10^th budget proposal – referred to as the “May Revise” or “May Revision” – were taken up and acted on by the Assembly and Senate budget subcommittees late last month including those impacting health and human services covering services and supports for people with disabilities, mental health needs, seniors and low income families.  The Assembly Budget Committee hearing today will provide a brief overview of those actions.

·        The Senate agenda does have other items that would have impact on the over all budget – and could impact the possibility of more sweeping cuts depending on how those issues are resolved, including an item regarding public employee pension reform study.

·        The Assembly Budget Committee released their own agenda which consists of 1 page outlining the order of today’s informational hearing – and 46 additional pages that summarizes the actions taken by the Assembly and Senate budget subcommittees following the  Govenror’s May 16^th budget revisions.  

·        Like the Senate budget committee agenda, the Assembly agenda contains no specific budget items or issues impacting health and human services or any other program.

 

Legislature Gearing Up For Floor Votes on Budget

·        With the last of the budget subcommittee hearings held May 27^th, the State budget crisis is moving to its final crucial stage, with floor votes in both the Assembly and State Senate expected next week sometime on or before the June 15^th State Constitutional deadline that requires the Legislature to pass a budget and present it to the Governor. 

·        As of June 8^th, the Governor and Legislative Democrats still have not yet nailed down the two Republican votes they need in both the Assembly and State Senate in order to pass the Governor’s proposed 2011-2012 State Budget that hinges on over $9 billion in revenue solutions, including extension of the 2009 temporary tax increases that are set to expire June 30^th.

·        Governor Brown indicated last week in a speech before the California Chamber of Commerce,  that he is inclined to use his line item veto power – sometimes referred to as the “blue pencil” to reduce spending in specific budget items that the Legislature last month increased above his own budget proposals.  He did not provide details of what budget items he would consider using his line item veto power – but the Legislature, controlled by Democrats – did restore some budget reductions in some programs including Adult Day Health Care – that the Governor proposed for total elimination.  . 

·        Assuming all 52 Assembly and all 25 State Senate Democrats vote for the revised version of the main budget bill, at least two Republican votes would be needed in each house in order to pass it. 

·        While Proposition 25, passed by voters last November, authorizes a majority vote State budget – it still leaves in place the State Constitution provision that requires 2/3rds vote (54 votes in the Assembly and 27 in the State Senate) to approve a budget with tax increases.  Penalties imposed by Proposition 25 if a State budget is not passed by the Legislature and presented to the Governor on by June 15^th, would also kick in – including loss of pay and travel/living expenses each day for every legislator until a budget is passed and sent to the Governor (the loss of pay and travel/living expense is forfeited permanently).  

·        Those penalties will be a significant factor on how long a budget stalemate goes on – if one does, though it is not clear if the penalties will have a greater impact on legislative Democrats than legislative Republicans. 

·        Also complicating any agreement on the 2011-2012 State Budget is the release this Friday (June 10^th) of the independent legislative redistricting commission’s draft legislative districts (that will be finalized in August) that will give the first real glimpse of the new legislative boundaries for the 2012 elections.  How those boundaries are established will have major impact on the chances of both parties and individual legislators to win elections in 2012.  That in turn will have potential major influence on how legislators from either party ultimately vote on resolving the 2011-2012 State budget crisis.

·        Adding to the budget crisis is the sweeping impact of last month’s  landmark US Supreme Court decision that ordered California to take immediate steps to correct the overcrowding in its state prisons or release thousands of prisoners.

·        In addition the Governor’s proposal to eliminate redevelopment agencies, which fell one vote short of approval in March (the State Senate never voted on the proposal) is still on the table, with the Governor urging, as part of his May 16^th budget revisions, to approve his proposal.  That proposal to eliminate redevelopment agencies would mean a reduction – or savings to the State general fund of over $1.7 billion, according to the Brown Administration.  Some affordable housing advocates – including those who are advocates for people with disabilities, seniors and low income families – opposed last March the elimination of the redevelopment agencies because of its links to affordable housing that the Governor’s proposal they say, did not address. 

 

Main Budget Bill Passed In  March But Not Sent to Governor – Will Be Revised & Voted On Again Along With Several New Budget Trailer Bills

·        As previously reported, complicating the “normal State budget process” is the fact that the Assembly and State Senate passed on March 17^th  the original main budget bill for 2011-2012, but never sent it to the Governor because there was no agreement on the issue of extending the temporary 2009 tax increases due to expire June 30, 2011. 

·        That main budget bill will be revised, and then voted on again sometime on or before June 15^th along with several new budget trailer bills. 

·        What was passed by the Legislature on March 17^th and approved by Governor Brown on March 24^th were 13 budget trailer bills that included over $11 billion in cuts in State general fund spending largely achieved by actual program or service cuts, and also by fund shifts and bringing in new federal dollars – over $6 billion of the reductions and savings from health and human services.  Nearly all of those reductions will go into effect either on July 1^st or sometime during the 2011-2012 State budget year (some of the reductions or changes require federal approval first). 

 

Revenue Piece Unresolved – Along With Major Reduction Proposal

Still not resolved is the issue of revenues, and some major reductions.  Governor Brown wants to extend or maintain, effective July 1, 2011, for five years most of the 2009 temporary tax increases due to expire June 30, 2011, with a special election to be held sometime likely in the fall to ratify the action by the Legislature, as follows:

·        $1.4 billion – extending the 2009 temporary increase of the vehicle license fee (VLF) at current levels for another five years. Of this amount, $1.1 billion would go to local (county) public safety programs and $270 million would go to schools.

·        $4.5 billion from extending the 2009 temporary increase of the sales tax rate at current levels for another five years for local (county) public safety programs.

·        $2.2 billion from extending the 2009 temporary personal income tax (PIT) dependent exemption credit and maintaining it at the current level for another five years  to fund schools.

·        $1.3 billion from continuing the personal income tax (PIT) surcharge in 2012 through 2015 at the 2010 level of 0.25% for schools. The surcharge would not be in effect for state tax year of 2011.

 

ASSEMBLY BUDGET COMMITTEE AGENDA

The Assembly Budget Committee this afternoon released a one page agenda and a 46 page summary of budget actions taken by both the Assembly and Senate subcommittees – referred to as the “Assembly and Senate United Budget Plan”.  A copy of this agenda with the 46 budget overview, is attached to this CDCAN Report as “20110608-AssemblyBudgetCommitteeAgenda.pdf” 

 

Agenda

June 8, 2011

3:30 PM – Room 4202

 

Overview of the Assembly and Senate United Budget Plan

1.      Call to Order

2.      Overview of the Assembly and Senate United 2011-2012 Budget Plan

·        Department of Finance Overview Presentation

·        Committee Member Questions

3.      Adjournment

 

SENATE BUDGET COMMITTEE AGENDA SUMMARY

The following is the summary of items on the agenda of the Senate Budget and Fiscal Review Committee for its hearing today (the entire agenda is 53 pages – that provide more detail to the summary of items below)  For a copy of this agenda click here:

http://sbud.senate.ca.gov/sites/sbud.senate.ca.gov/files/FullC/682011SBFRHearingAgenda.pdf

 

                                  

AGENDA

June 8, 2011

3:30 p.m.

Room 4203

 

JUDICIAL BRANCH (Budget item 0250)

1. Courts Public Contract Code Trailer Bill Clean Up

 

STATE CONTROLLER (Budget Item 0840)

1.      Local Government Oversight Initiative

2.      Unclaimed Property Holder Compliance Initiative

 

DEPARTMENT OF INSURANCE (Budget Item 0845)

1. Federal Health Insurance Reform Workload

 

CALIFORNIA VICTIM COMPENSATION AND GOVERNMENT CLAIMS BOARD (Budget Item 1870)

1.      Claim Reporting Requirement

 

DEPARTMENT OF TRANSPORTATION (Budget Item 2660)

1. Study of Contracting out for Temporary Workloads

 

HIGH-SPEED RAILA AUTHORITY (Budget Item 2665)

1.      Communications Contract

2.      Right-of-way Purchase and Construction Contracts in 2011-12

3.      Phase II Environmental and Design Funding

 

CALIFORNIA HIGHWAY PATROL (Budget Item 2720)

1. License Plate Reader (LPR) Data

 

ENERGY RESOURCE CONSERVATION AND DEVELOPMENT COMMISSION (Budget Item 3360)

1.      Restoration of Base Budget Plus Programmatic Audit

 

DEPARTMENT OF CONSERVATION (Budget Item 3480)

1. Budget Bill Language to Allow Reporting on Hydraulic Fracturing

2. Reappropriation of Proposition 50 Bond Funds

 

DEPARTMENT OF RESOURCES RECYCLING AND RECOVERY (Budget Item 3500)

1.      Fraud Prevention and Strategic Priority Initiative

 

DEPARTMENT OF FORESTRY AND FIRE PROTECTION (Budget Item 3540)

1. Civil Cost Recovery Program

 

DEPARTMENT OF FISH AND GAME (Budget Item 3600)

1. Hatcheries and Inland Fisheries Funded Programs

 

DEPARTMENT OF PARKS AND RECREATION (Budget Item 3790)

1.      Angel Island State Park—Ferry Service Routes Concession

2.      Vehicle Fleet Emissions Retrofit

3.      Budget Reduction Supplemental Reporting Language

 

DEPARTMENT OF WATER RESOURCES (Budget Item 3860)

1.      State Water Project Biological Opinions

2.      Salton Sea Restoration .

3.      State Water Project Support Positions

 

DEPARTMENT OF PUBLIC HEALTH (Budget Item 4265)

1. Budget Bill Language for Mutual Water Agencies

 

DEPARTMENT OF SOCIAL SERVICES (Budget Item 5180)

1. California Work and Responsibilities to Kids (CalWORKs) Program

2. CalWORKs Single Allocation Funding

 

DEPARTMENT OF CORRECTIONS AND REHABILITATION (Budget Item 5225)

1. Structural Shortfall and Population Adjustment

 

CALIFORNIA DEPARTMENT OF EDUCATION (Budget Item 6110)

1.      State Operations – Charter Schools Staff

2.      Federal Title 1 Funds – Common Core Standards

3.      Federal English Language Proficiency Assessment Grant – Language

4.      Federal Funds – Student and Teacher Data Systems

5.      K-12 Inter-Year Payment Deferral Buydown

6.      Child Care Services

 

CALIFORNIA POSTSECONDARY EDUCATION COMMISSION (Budget Item 6420)

1. Proposed Elimination of the California Postsecondary Education Commission

 

UNIVERSITY OF CALIFORNIA (Budget Item 6440)

1.      Intercollegiate Athletics

2.      Enrollment Target

3.      Research and Specialty Programs

 

CALIFORNIA COMMUNITY COLLEGES (Budget Item 6870)

1.      Apportionment and Deferral

2.      Student Fee Shortfall

3.      Financial Aid Mandates

 

EMPLOYMENT DEVELOPMENT DEPARTMENT (Budget Item 7100)

1. Alternate Base Period (ABP) Program Support 2010-11 Budget Bill Amendments

 

DEPARTMENT OF FINANCE (Budget Item 8860)

1.      Budget Shortfall

2.      Pension Reform Study

 

COSTS OF HOMICIDE TRIALS (Budget Item 9300)

1. County of Del Norte

 

CASH MANAGEMENT AND BUDGETARY LOANS (Budget Item 9620)

1. Early Repayment of Special Fund Loans

 

REDUCTIONS IN STATE OPERATIONS (Budget Item CS 3.91)

1. Reducing State Government

 

AGENCY REIMBURSEMENT PAYMENTS (Budget Item CS 28.50)

1. Legislative Budget Transfers

 

REVENUES

1.      Bridge Financing