Courtesy of California Disability Community Action Network
State Budget Update
LEGISLATURE APPROVES OVER $6 BILLION IN HEALTH & HUMAN SERVICES SPENDING CUTS – WILL TAKE UP REVENUE, OTHER TRAILER BILLS AND MAIN BUDGET BILL POSSIBLY THURSDAY
Republicans Give Support to Spending Reductions – But Still No Support Yet for Revenue Piece of Governor’s Plan – Spending Cuts Budget Trailer Bills For Medi-Cal, IHSS, SSI/SSP, Developmental Services, CalWORKS, Adult Day Health Care, Multipurpose Senior Services Program, Proposition 63 Mental Health, Proposition 10 Head Next To Governor – Elimination of Redevelopment Agencies Trailer Bill Falls 1 Vote Short in Assembly – Will Likely Be Taken Up Thursday – Both Houses To Meet 11 AM Thursday
SACRAMENTO, CALIF (CDCAN) [Updated 03/16/2011 – 9:23 PM (Pacific Time) – The California Legislature took a major step in what it hopes will help to solve the State’s enormous budget crisis, by approving – with Republican support – several of the budget related bills dealing with over $6 billion in cuts in State general fund spending to health and human services, and reductions in general government that largely follow the Governor’s proposed reductions.
The Assembly however fell 1 vote short of approving the $1.5 billion cut to Redevelopment Agencies, with the last vote 53 to 23 taken just before the Assembly adjourned this evening at 09:23 PM. The Senate adjourned at 09:04 PM.
But the Legislature however did not take up the main budget bill, education and other budget trailer bills or the budget related bills that deal with revenues – the part of the Governor’s proposed budget for 2011-2012 that needs – and still lacks crucial legislative Republican support.
Next Steps
· Both houses will meet again Thursday to possibly take up those measures and other remaining budget related bills.
· The State Senate adjourned at 09:04 PM Wednesday evening and will reconvene Thursday morning at 11:00 AM.
· The Assembly adjourned at 09:23 PM Wednesday evening and will reconvene Thursday morning at 11:00 AM.
California Faces Enormous On-going Budget Crisis
California faces a projected budget shortfall of over $25 billion through the end of June 30, 2012, and on-going projected deficits of over $20 billion through at least 2016 unless permanent action is taken by the Legislature and Governor – a point raised by Sen. Mark Leno (Democrat – San Francisco), chair of the Senate Budget and Fiscal Review Committee and Assemblymember Bob Blumenfield (Democrat – Van Nuys, 40th Assembly District), chair of the Assembly Budget Committee when they both brought the budget “trailer” bills up for votes on the Senate and Assembly floors today.
Several legislative Republicans in both houses, while supporting many of the budget “trailer” bills, responded that legislative Democrats that some of the reductions were not real cuts and that the budget plan was not addressing critical issues that they believe could mean big savings to the State in reforms to public employee pensions and State regulations.
What the Legislature Did Today (March 16th)
· Both houses approved a total of 8 budget related (“trailer”) bills:
· Approved 5 budget “trailer” bills dealing with health and human services spending reductions dealing with health (Medi-Cal, Healthy Families, Adult Day Health Care), Developmental Services (regional centers), Human Services (In-Home Supportive Services, CalWORKS, SSI/SSP, Multipurpose Senior Services Program); Proposition 10 (Children and Families First); and Proposition 63 Mental Health Services Act Funding.
· Approved 1 budget “trailer” bill dealing with General Government [SB 80, passed Assembly 54 to 20 and State Senate 33 to 2]
· Approved 2 other budget related bills dealing with transportation and cash management (SB 82, passed Assembly 54 to 2 and State Senate 39 to 0).
· The Assembly took up for a vote when it first convened at 1 PM this afternoon the budget “trailer” bill dealing with the elimination of Redevelopment Agencies but the initial vote fell short of the needed 54 votes for passage. Throughout the evening the bill was called up again and again for a final vote tally, but fell two votes short of the 54 votes needed for passage. The bill will be taken up again on Thursday by the Assembly. The Senate did not take up that bill but was waiting Wednesday evening for the Assembly to approve it – which did not happen.
· Senate Budget and Fiscal Review Committee met just after the Senate convened at 1 PM Wednesday afternoon (March 16th) to formally review and refer to the Senate floor, all of the budget trailer bills. The Assembly suspended its internal rules that require the Assembly Budget Committee to meet and refer the bills to the floor, and instead took up some of the budget trailer bills directly for a vote on the floor.
· The Senate Budget and Fiscal Review Committee amended today (March 16th) at 2 of the budget trailer bills – health (AB 97) and transportation (AB 105), before the bills were voted on by the full State Senate and Assembly. The committee also amended the education trailer bill, which did not come up for a vote in either house. The amendments made to the health budget trailer bill (AB 97) deleted provisions dealing with the “Maddy Medical Emergency Services Fund” and the extension of the (AB 1422) Medi-Cal managed care gross premium 2.3% tax. All other provisions in the health trailer bill (AB 87) remained the same.
· With the exception of those two bills, all the other budget trailer bills approved today by the Legislature were not amended or changed today.
What Happens Next
· It is not clear if the Legislature will actually send the approved bills to the Governor immediately or hold them until the main budget bill and the revenue related bills are also approved. Normally the main budget bill is passed first, followed or trailed by the budget “trailer” bills.
· Legislature still needs to pass the main budget bill, and several other budget “trailer” bills dealing including one that will draw some controversy among Democrats – education, which contains $1.5 billion reductions in State general fund spending for higher education, though no real reductions for K-12 public education. The $500 million reduction in State general fund spending for community colleges has major impact on students with disabilities, mental health needs, the blind and others.
· Legislature also needs to obtain 2 Republican votes in the Assembly and 2 in the State Senate to approve the Governor’s proposal to extend for five years temporary tax increases on a June special election ballot.
· Until the main budget bill – which only needs a majority vote, and the special election tax extension proposal – which needs 2/3rds vote or 54 votes in the 80 member Assembly and 27 votes in the 40 member State Senate – are approved, the budget crisis continues unresolved.
Budget Takes Majority Vote To Pass Now – But Placing Measures on Election Ballot Or Raising Taxes Still Requires 2/3rds Vote
· While the overall main budget bill for 2011-2012 can be passed by a simple majority vote – the specific proposal to place on a June special election ballot proposals to extend for 5 years temporary tax increases in order to balance the State budget, requires 2/3rds votes in both houses or 54 votes in the Assembly and 27 votes in the State Senate.
· That means, if all Assembly Democrats and all Senate Democrats vote for the proposal, 2 Assembly Republicans and 2 Senate Republicans would still be needed to pass it.
· The proposed extension of the temporary tax increases (increases which are set to expire on June 30th) are crucial to Governor Brown’s budget plan because it makes up over $11 billion of the overall $12 billion revenue proposals. Spending reductions and fund shifts and new federal money make up over $12.5 billion.
CDCAN STATUS OF BUDGET TRAILER BILLS:
· Latest actions of budget related (“trailer”) bills, listed by subject area.
· The bill number of the actual budget trailer bill – or even the main budget bill – can change during the time it takes to win passage, even if the contents of the bill largely remain the same.
· Both the State Senate and Assembly amended identical budget “trailer bill” language into several bills that each house could use to vote, on Wednesday. Both houses amend identical bills because sometimes one house may get delayed on a certain bill – while the other house may end up passing several (as was the case when the vote actually took place Wednesday). The budget trailer bill that passes first out of one house – is likely (but not always) the bill that ends up being passed by the second house and then sent on to the Governor.
· Sometimes neither identical bill ends up passing – and a totally different bill number is used to amend the same trailer bill language or language that is slightly different.
· “Urgency” clause or provision means the bill is considered an “emergency” or “urgency” that needs to take effect immediately after the Governor signs it. A bill with such a provision needs 54 votes (2/3rds) in the Assembly and 27 votes (2/3rds) in the State Senate. While the bill takes effect immediately if signed by the Governor, the specific things (such as a specific spending cut) could have a later effective date. If it doesn’t, then the spending cut or change in the bill takes effect immediately.
MAIN BUDGET BILL
· The main budget bill does not contain the changes in State law needed to implement reductions or savings in the Governor’s 2011-2012 State Budget (as modified by the Budget Conference Committee on March 3rd).
· The changes in state law needed to implement reductions in the main budget bill are contained in the various budget “trailer bills” below – called “trailer bills” because those bills follow or trail the main budget bill after it is passed and signed into law by the Governor.
SB 69 – Main Budget Bill
Download copy of this bill (704 pages):
http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_0051-0100/sb_69_bill_20110307_proposed.pdf
LAST AMENDED: 03/07/2011 (Budget Conference Committee report)
LOCATION: State Senate Floor
LATEST ACTION 03/16/2011: No action or vote was taken on the main budget bill.
MEDI-CAL, ADULT DAY HEALTH CARE, HEALTHY FAMILIES
· Includes reductions to Medi-Cal, including elimination of Adult Day Health Centers, 10% reduction to Medi-Cal providers, mandatory co-payments, reductions to Healthy Families program and other cuts [MSSP reduction, though a Medi-Cal program, is under “Human Services Budget Trailer Bill”]
· Contains provision dealing with Lanterman Developmental Center closure transition.
· Bill was amended 03/16/2011 in the Senate Budget and Fiscal Review Committee (see below CDCAN Note).
AB 97 – Health Budget Trailer Bill
Download copy of this bill (133 pages):
http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_0051-0100/ab_97_bill_20110314_amended_sen_v98.pdf
LAST AMENDED: 03/16/2011
LATEST ACTION 03/16/2011: PASSED State Senate 36-2 with urgency provision. PASSED Assembly 56 to 14 with urgency provision.
NEXT STEPS: Goes next to the Governor for approval.
CDCAN NOTE: Initial vote on this bill (around 5:15 PM) was taken by mistake without the urgency provision, which requires 27 votes. That provision was added and the vote was retaken at 7:34 PM. This bill was amended in the Senate Budget and Fiscal Review Committee today (March 16th) that deleted a provision dealing with the Maddy Emergency Medical Fund and also the provision that extended the Medi-Cal Managed Care tax under AB 1422 (enacted in 2009). All other provisions of the bill remained the same.
SB 72 - Human Services Budget Trailer Bill
Download copy of this bill (80 pages):
http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_0051-0100/sb_72_bill_20110314_amended_asm_v98.pdf
LAST AMENDED: 03/14/2011
LATEST ACTION 03/16/2011: PASSED Assembly 54 to 6 with urgency provision. PASSED State Senate 39 to 0 with urgency provision.
CDCAN NOTE: No changes were made to this bill since 03/14/2011.
REGIONAL CENTERS & DEVELOPMENTAL CENTERS
· This budget related (trailer) bill includes provisions dealing with regional centers and developmental services under the Developmental Services budget including reductions achieved through imposing conflict of interest, audit requirements, administrative caps for those agencies with “negotiated rates”, accountability and transparency measures, and third party liability.
· Also included is continuation of the 4.25% reduction in payments to nearly all regional center providers and regional center operations through at least June 30, 2012.
· Included is direction from Legislature to the Department of Developmental Services on proposal it wants to review and consider approving to achieve the $174 million (previously $150 million) reduction in State general fund spending in regional center community based services
· Note: some provisions dealing with Lanterman Developmental Center transition are in the Health trailer bills (AB 97)
SB 74 – Developmental Services Budget Trailer Bill
Download copy of this bill (36 pages):
http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_0051-0100/sb_74_bill_20110314_amended_asm_v98.pdf
LAST AMENDED: 03/14/2011
LATEST ACTION 03/16/2011: PASSED Assembly 56 to 16 with urgency provision. PASSED State Senate 35 to 1 with urgency provision.
NEXT STEPS: Goes to Governor for approval.
CDCAN Note: No changes were made to this bill since it was amended 03/14/2011.
PROPOSITION 10 (CHILDREN & FAMILIES FIRST ACT OF 1998)
· This budget related (trailer) bill contains the necessary changes in State law dealing with the shifting (or reduction) of $1 billion in Proposition funds to Medi-Cal children’s programs.
· Of this amount,$50 million will be from accounts, including reserve funds as specified, under the State Commission; and $950 million will be from combined balances, including reserves as specified, under the County Commissions.
· County Commissions that received less than $600,000 in California Children and Families Trust Fund revenues in the 2009-2010 State budget year are exempt.
AB 99 – Proposition 10 Budget Trailer Bill
Download copy of this bill (7 pages)
http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_0051-0100/ab_99_bill_20110314_amended_sen_v98.pdf
LAST AMENDED: 03/14/2011
LATEST ACTION 03/16/2011: PASSED State Senate 36 to 3 with urgency provision. Assembly PASSED 55 to 16 with urgency provision.
NEXT STEPS: Goes to Governor for approval.
CDCAN NOTE: No changes were made to this bill since 03/14/2011.
MENTAL HEALTH SERVICES ACT
· This budget related (trailer) bill contains necessary changes in State law to shift (reduction) about $900 million from Mental Health Services Act to 3 mental health community based programs (EPSDT, or Early, Periodic, Screening, Diagnosis and Treatment Program); mental health services for special education students under AB 3632; and Medi-Cal mental health managed care services.
AB 100 – Mental Health Services Act
Download copy of this bill (17 pages):
http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_0051-0100/ab_100_bill_20110314_amended_sen_v98.pdf
LAST AMENDED: 03/14/2011
LATEST ACTION 03/16/2011: PASSED State Senate 37 to 2 with urgency provision. PASSED Assembly 55 to 14 with urgency provision.
NEXT STEPS: Goes to Governor for approval.
CDCAN NOTE: No changes were made to this bill since 03/14/2011.
REDEVELOPMENT & AFFORDABLE HOUSING
· This bill deals with elimination of redevelopment agencies and transition process for the orderly wind-down of redevelopment agencies activities, including completion of some mid-phase projects.
· Establishes “Successor Agencies” to the redevelopment agencies effective July 1, 2011, that would be, except in certain situations, such as those involving an Redevelopment Agencies based on a joint powers authority, the entity that created the redevelopment agency.
· If no local agency chooses to be the “Successor Agency”, a designated local authority would be formed, whose three members would be appointed by the Governor.
· Allows for the continuation of housing activities by the “Successor Agency”, which would be permitted to assume responsibility for housing obligations and to use the existing balance in the low and moderate income housing fund Set-aside for these purposes.
· If the “Successor Agency” chooses not to assume the housing activity responsibilities, the funds would be transferred to the local housing authority or to the Department of Housing and Community Development
AB 101 – Redevelopment Agencies
Download copy of this bill (64 pages):
http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_0101-0150/ab_101_bill_20110315_amended_sen_v98.pdf
LAST AMENDED: 03/14/2011
LOCATION: State Senate Floor
LATEST ACTION 03/16/2011: None
SB 77 – Redevelopment Agencies
Download copy of this bill (64 pages):
http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_0051-0100/sb_77_bill_20110315_amended_asm_v98.pdf
LAST AMENDED: 03/15/2011
LOCATION: Assembly Floor
LATEST ACTION 03/16/2011: Vote taken but fell 1 vote short of passage. Reconsideration granted (meaning another vote can be taken on this bill).
NEXT STEP: Will likely be taken up again Thursday either in the Assembly or Senate.
CDCAN NOTE: No changes were made to this bill since 03/14/2011.
EDUCATION
· Education trailer bill was NOT taken up by either the full Assembly or State Senate on Wednesday, March 16. The education trailer bill (AB 94) in the State Senate however was formally heard and referred out of Senate Budget and Fiscal Review Committee with amendments today (March 16)
· These two trailer bills include changes to state law to implement reductions to higher education (community colleges, California State University and University of California).
· ONE of these two bills, will be passed by both houses and sent to the Governor, though at this point in time, it is not certain which of the two identical bills will move forward.
AB 94 – Education Finance
Download copy of this bill (108 pages):
http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_0051-0100/ab_94_bill_20110314_amended_sen_v98.pdf
LAST AMENDED: 03/16/2011
LOCATION: State Senate Floor
LATEST ACTION 03/16/2011: Bill was heard and referred out of Senate Budget and Fiscal Review Committee with amendments. It was not taken up for a vote on the Senate floor today.
CDCAN Note: This bill now differs from the education trailer bill in the Assembly (SB 70), with amendments made today (03/16/2011) in the Senate Budget and Fiscal Review Committee.
SB 70 – Education Finance
Download copy of this bill (108 pages):
http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_0051-0100/sb_70_bill_20110314_amended_asm_v98.pdf
LAST AMENDED: 03/14/2011
LOCATION: Assembly Floor
LATEST ACTION 03/16/2011: None
TRANSPORTATION
AB 105 – Transportation Trailer Bill (as amended 03/14/2011)
Download copy of this bill (61 pages):
http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_0101-0150/ab_105_bill_20110314_amended_sen_v98.pdf
LAST AMENDED: 03/16/2011
LATEST ACTION 03/16/2011: PASSED State Senate 39 to 0 with urgency provision. PASSED Assembly 66 to 3 with urgency provision.
NEXT STEP: Goes to Governor for approval.
CDCAN NOTE: This bill was amended 03/16/2011 in Senate Budget and Fiscal Review Committee hearing.
REVENUES – TAXATION: PERSONAL INCOME & CORPORATE TAX
· The Assembly and State Senate did NOT take up these revenue related trailer bills on Wednesday, March 16.
· These two identical bills would establish a mandatory single sales factor for apportionment of corporate income tax across states and changes the manner in which the location of sales of service and intangibles are assigned, and would eliminate the enterprise zone tax credits.
· ONE of these two bills, will be passed by both houses and sent to the Governor, though at this point in time, it is not certain which of the two identical bills will move forward.
AB 103 – Taxation – Personal Income and Corporation Tax
Download copy of this bill (156 pages):
http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_0101-0150/ab_103_bill_20110314_amended_sen_v98.pdf
LAST AMENDED: 03/14/2011
LOCATION: State Senate floor
LATEST ACTION 03/16/2011: None
SB 79 – Taxation – Personal Income and Corporation Tax
Download copy of this bill (156 pages):
http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_0051-0100/sb_79_bill_20110314_amended_asm_v98.pdf
LAST AMENDED: 03/14/2011
LOCATION: Assembly Floor
LATEST ACTION 03/16/2011: None
TAX INCREASE TEMPORARY EXTENSION & REALIGNMENT
· The Assembly and State Senate did NOT take any action on this bill.
· This constitutional amendment, titled “The Schools and Local Public Safety Protection Act of 2011" will generate approximately $11 billion by maintaining 2010 sales and use tax rates, vehicle license fee rates, and personal income tax rates for five years.
· These revenues will be dedicated to local public safety services realigned from the State to local governments and to help prevent cuts to local public schools and community colleges.
· This constitutional amendment will also guarantee local governments ongoing funding for realigned public safety services beyond the five-years and provides protections to counties against increased costs from future
SCAX1 1 The Schools and Local Public Safety Protection Act of 2011: Constitutional Amendment
Download copy of this bill (10 pages):
http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_0001-0050/scax1_1_bill_20110314_introduced.pdf
LAST AMENDED: 03/14/2011
LOCATION: State Senate Floor
LATEST ACTION 03/16/2011: None
Republicans Give Support to Spending Reductions – But Still No Support Yet for Revenue Piece of Governor’s Plan – Spending Cuts Budget Trailer Bills For Medi-Cal, IHSS, SSI/SSP, Developmental Services, CalWORKS, Adult Day Health Care, Multipurpose Senior Services Program, Proposition 63 Mental Health, Proposition 10 Head Next To Governor – Elimination of Redevelopment Agencies Trailer Bill Falls 1 Vote Short in Assembly – Will Likely Be Taken Up Thursday – Both Houses To Meet 11 AM Thursday
SACRAMENTO, CALIF (CDCAN) [Updated 03/16/2011 – 9:23 PM (Pacific Time) – The California Legislature took a major step in what it hopes will help to solve the State’s enormous budget crisis, by approving – with Republican support – several of the budget related bills dealing with over $6 billion in cuts in State general fund spending to health and human services, and reductions in general government that largely follow the Governor’s proposed reductions.
The Assembly however fell 1 vote short of approving the $1.5 billion cut to Redevelopment Agencies, with the last vote 53 to 23 taken just before the Assembly adjourned this evening at 09:23 PM. The Senate adjourned at 09:04 PM.
But the Legislature however did not take up the main budget bill, education and other budget trailer bills or the budget related bills that deal with revenues – the part of the Governor’s proposed budget for 2011-2012 that needs – and still lacks crucial legislative Republican support.
Next Steps
· Both houses will meet again Thursday to possibly take up those measures and other remaining budget related bills.
· The State Senate adjourned at 09:04 PM Wednesday evening and will reconvene Thursday morning at 11:00 AM.
· The Assembly adjourned at 09:23 PM Wednesday evening and will reconvene Thursday morning at 11:00 AM.
California Faces Enormous On-going Budget Crisis
California faces a projected budget shortfall of over $25 billion through the end of June 30, 2012, and on-going projected deficits of over $20 billion through at least 2016 unless permanent action is taken by the Legislature and Governor – a point raised by Sen. Mark Leno (Democrat – San Francisco), chair of the Senate Budget and Fiscal Review Committee and Assemblymember Bob Blumenfield (Democrat – Van Nuys, 40th Assembly District), chair of the Assembly Budget Committee when they both brought the budget “trailer” bills up for votes on the Senate and Assembly floors today.
Several legislative Republicans in both houses, while supporting many of the budget “trailer” bills, responded that legislative Democrats that some of the reductions were not real cuts and that the budget plan was not addressing critical issues that they believe could mean big savings to the State in reforms to public employee pensions and State regulations.
What the Legislature Did Today (March 16th)
· Both houses approved a total of 8 budget related (“trailer”) bills:
· Approved 5 budget “trailer” bills dealing with health and human services spending reductions dealing with health (Medi-Cal, Healthy Families, Adult Day Health Care), Developmental Services (regional centers), Human Services (In-Home Supportive Services, CalWORKS, SSI/SSP, Multipurpose Senior Services Program); Proposition 10 (Children and Families First); and Proposition 63 Mental Health Services Act Funding.
· Approved 1 budget “trailer” bill dealing with General Government [SB 80, passed Assembly 54 to 20 and State Senate 33 to 2]
· Approved 2 other budget related bills dealing with transportation and cash management (SB 82, passed Assembly 54 to 2 and State Senate 39 to 0).
· The Assembly took up for a vote when it first convened at 1 PM this afternoon the budget “trailer” bill dealing with the elimination of Redevelopment Agencies but the initial vote fell short of the needed 54 votes for passage. Throughout the evening the bill was called up again and again for a final vote tally, but fell two votes short of the 54 votes needed for passage. The bill will be taken up again on Thursday by the Assembly. The Senate did not take up that bill but was waiting Wednesday evening for the Assembly to approve it – which did not happen.
· Senate Budget and Fiscal Review Committee met just after the Senate convened at 1 PM Wednesday afternoon (March 16th) to formally review and refer to the Senate floor, all of the budget trailer bills. The Assembly suspended its internal rules that require the Assembly Budget Committee to meet and refer the bills to the floor, and instead took up some of the budget trailer bills directly for a vote on the floor.
· The Senate Budget and Fiscal Review Committee amended today (March 16th) at 2 of the budget trailer bills – health (AB 97) and transportation (AB 105), before the bills were voted on by the full State Senate and Assembly. The committee also amended the education trailer bill, which did not come up for a vote in either house. The amendments made to the health budget trailer bill (AB 97) deleted provisions dealing with the “Maddy Medical Emergency Services Fund” and the extension of the (AB 1422) Medi-Cal managed care gross premium 2.3% tax. All other provisions in the health trailer bill (AB 87) remained the same.
· With the exception of those two bills, all the other budget trailer bills approved today by the Legislature were not amended or changed today.
What Happens Next
· It is not clear if the Legislature will actually send the approved bills to the Governor immediately or hold them until the main budget bill and the revenue related bills are also approved. Normally the main budget bill is passed first, followed or trailed by the budget “trailer” bills.
· Legislature still needs to pass the main budget bill, and several other budget “trailer” bills dealing including one that will draw some controversy among Democrats – education, which contains $1.5 billion reductions in State general fund spending for higher education, though no real reductions for K-12 public education. The $500 million reduction in State general fund spending for community colleges has major impact on students with disabilities, mental health needs, the blind and others.
· Legislature also needs to obtain 2 Republican votes in the Assembly and 2 in the State Senate to approve the Governor’s proposal to extend for five years temporary tax increases on a June special election ballot.
· Until the main budget bill – which only needs a majority vote, and the special election tax extension proposal – which needs 2/3rds vote or 54 votes in the 80 member Assembly and 27 votes in the 40 member State Senate – are approved, the budget crisis continues unresolved.
Budget Takes Majority Vote To Pass Now – But Placing Measures on Election Ballot Or Raising Taxes Still Requires 2/3rds Vote
· While the overall main budget bill for 2011-2012 can be passed by a simple majority vote – the specific proposal to place on a June special election ballot proposals to extend for 5 years temporary tax increases in order to balance the State budget, requires 2/3rds votes in both houses or 54 votes in the Assembly and 27 votes in the State Senate.
· That means, if all Assembly Democrats and all Senate Democrats vote for the proposal, 2 Assembly Republicans and 2 Senate Republicans would still be needed to pass it.
· The proposed extension of the temporary tax increases (increases which are set to expire on June 30th) are crucial to Governor Brown’s budget plan because it makes up over $11 billion of the overall $12 billion revenue proposals. Spending reductions and fund shifts and new federal money make up over $12.5 billion.
CDCAN STATUS OF BUDGET TRAILER BILLS:
· Latest actions of budget related (“trailer”) bills, listed by subject area.
· The bill number of the actual budget trailer bill – or even the main budget bill – can change during the time it takes to win passage, even if the contents of the bill largely remain the same.
· Both the State Senate and Assembly amended identical budget “trailer bill” language into several bills that each house could use to vote, on Wednesday. Both houses amend identical bills because sometimes one house may get delayed on a certain bill – while the other house may end up passing several (as was the case when the vote actually took place Wednesday). The budget trailer bill that passes first out of one house – is likely (but not always) the bill that ends up being passed by the second house and then sent on to the Governor.
· Sometimes neither identical bill ends up passing – and a totally different bill number is used to amend the same trailer bill language or language that is slightly different.
· “Urgency” clause or provision means the bill is considered an “emergency” or “urgency” that needs to take effect immediately after the Governor signs it. A bill with such a provision needs 54 votes (2/3rds) in the Assembly and 27 votes (2/3rds) in the State Senate. While the bill takes effect immediately if signed by the Governor, the specific things (such as a specific spending cut) could have a later effective date. If it doesn’t, then the spending cut or change in the bill takes effect immediately.
MAIN BUDGET BILL
· The main budget bill does not contain the changes in State law needed to implement reductions or savings in the Governor’s 2011-2012 State Budget (as modified by the Budget Conference Committee on March 3rd).
· The changes in state law needed to implement reductions in the main budget bill are contained in the various budget “trailer bills” below – called “trailer bills” because those bills follow or trail the main budget bill after it is passed and signed into law by the Governor.
SB 69 – Main Budget Bill
Download copy of this bill (704 pages):
http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_0051-0100/sb_69_bill_20110307_proposed.pdf
LAST AMENDED: 03/07/2011 (Budget Conference Committee report)
LOCATION: State Senate Floor
LATEST ACTION 03/16/2011: No action or vote was taken on the main budget bill.
MEDI-CAL, ADULT DAY HEALTH CARE, HEALTHY FAMILIES
· Includes reductions to Medi-Cal, including elimination of Adult Day Health Centers, 10% reduction to Medi-Cal providers, mandatory co-payments, reductions to Healthy Families program and other cuts [MSSP reduction, though a Medi-Cal program, is under “Human Services Budget Trailer Bill”]
· Contains provision dealing with Lanterman Developmental Center closure transition.
· Bill was amended 03/16/2011 in the Senate Budget and Fiscal Review Committee (see below CDCAN Note).
AB 97 – Health Budget Trailer Bill
Download copy of this bill (133 pages):
http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_0051-0100/ab_97_bill_20110314_amended_sen_v98.pdf
LAST AMENDED: 03/16/2011
LATEST ACTION 03/16/2011: PASSED State Senate 36-2 with urgency provision. PASSED Assembly 56 to 14 with urgency provision.
NEXT STEPS: Goes next to the Governor for approval.
CDCAN NOTE: Initial vote on this bill (around 5:15 PM) was taken by mistake without the urgency provision, which requires 27 votes. That provision was added and the vote was retaken at 7:34 PM. This bill was amended in the Senate Budget and Fiscal Review Committee today (March 16th) that deleted a provision dealing with the Maddy Emergency Medical Fund and also the provision that extended the Medi-Cal Managed Care tax under AB 1422 (enacted in 2009). All other provisions of the bill remained the same.
SB 72 - Human Services Budget Trailer Bill
Download copy of this bill (80 pages):
http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_0051-0100/sb_72_bill_20110314_amended_asm_v98.pdf
LAST AMENDED: 03/14/2011
LATEST ACTION 03/16/2011: PASSED Assembly 54 to 6 with urgency provision. PASSED State Senate 39 to 0 with urgency provision.
CDCAN NOTE: No changes were made to this bill since 03/14/2011.
REGIONAL CENTERS & DEVELOPMENTAL CENTERS
· This budget related (trailer) bill includes provisions dealing with regional centers and developmental services under the Developmental Services budget including reductions achieved through imposing conflict of interest, audit requirements, administrative caps for those agencies with “negotiated rates”, accountability and transparency measures, and third party liability.
· Also included is continuation of the 4.25% reduction in payments to nearly all regional center providers and regional center operations through at least June 30, 2012.
· Included is direction from Legislature to the Department of Developmental Services on proposal it wants to review and consider approving to achieve the $174 million (previously $150 million) reduction in State general fund spending in regional center community based services
· Note: some provisions dealing with Lanterman Developmental Center transition are in the Health trailer bills (AB 97)
SB 74 – Developmental Services Budget Trailer Bill
Download copy of this bill (36 pages):
http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_0051-0100/sb_74_bill_20110314_amended_asm_v98.pdf
LAST AMENDED: 03/14/2011
LATEST ACTION 03/16/2011: PASSED Assembly 56 to 16 with urgency provision. PASSED State Senate 35 to 1 with urgency provision.
NEXT STEPS: Goes to Governor for approval.
CDCAN Note: No changes were made to this bill since it was amended 03/14/2011.
PROPOSITION 10 (CHILDREN & FAMILIES FIRST ACT OF 1998)
· This budget related (trailer) bill contains the necessary changes in State law dealing with the shifting (or reduction) of $1 billion in Proposition funds to Medi-Cal children’s programs.
· Of this amount,$50 million will be from accounts, including reserve funds as specified, under the State Commission; and $950 million will be from combined balances, including reserves as specified, under the County Commissions.
· County Commissions that received less than $600,000 in California Children and Families Trust Fund revenues in the 2009-2010 State budget year are exempt.
AB 99 – Proposition 10 Budget Trailer Bill
Download copy of this bill (7 pages)
http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_0051-0100/ab_99_bill_20110314_amended_sen_v98.pdf
LAST AMENDED: 03/14/2011
LATEST ACTION 03/16/2011: PASSED State Senate 36 to 3 with urgency provision. Assembly PASSED 55 to 16 with urgency provision.
NEXT STEPS: Goes to Governor for approval.
CDCAN NOTE: No changes were made to this bill since 03/14/2011.
MENTAL HEALTH SERVICES ACT
· This budget related (trailer) bill contains necessary changes in State law to shift (reduction) about $900 million from Mental Health Services Act to 3 mental health community based programs (EPSDT, or Early, Periodic, Screening, Diagnosis and Treatment Program); mental health services for special education students under AB 3632; and Medi-Cal mental health managed care services.
AB 100 – Mental Health Services Act
Download copy of this bill (17 pages):
http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_0051-0100/ab_100_bill_20110314_amended_sen_v98.pdf
LAST AMENDED: 03/14/2011
LATEST ACTION 03/16/2011: PASSED State Senate 37 to 2 with urgency provision. PASSED Assembly 55 to 14 with urgency provision.
NEXT STEPS: Goes to Governor for approval.
CDCAN NOTE: No changes were made to this bill since 03/14/2011.
REDEVELOPMENT & AFFORDABLE HOUSING
· This bill deals with elimination of redevelopment agencies and transition process for the orderly wind-down of redevelopment agencies activities, including completion of some mid-phase projects.
· Establishes “Successor Agencies” to the redevelopment agencies effective July 1, 2011, that would be, except in certain situations, such as those involving an Redevelopment Agencies based on a joint powers authority, the entity that created the redevelopment agency.
· If no local agency chooses to be the “Successor Agency”, a designated local authority would be formed, whose three members would be appointed by the Governor.
· Allows for the continuation of housing activities by the “Successor Agency”, which would be permitted to assume responsibility for housing obligations and to use the existing balance in the low and moderate income housing fund Set-aside for these purposes.
· If the “Successor Agency” chooses not to assume the housing activity responsibilities, the funds would be transferred to the local housing authority or to the Department of Housing and Community Development
AB 101 – Redevelopment Agencies
Download copy of this bill (64 pages):
http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_0101-0150/ab_101_bill_20110315_amended_sen_v98.pdf
LAST AMENDED: 03/14/2011
LOCATION: State Senate Floor
LATEST ACTION 03/16/2011: None
SB 77 – Redevelopment Agencies
Download copy of this bill (64 pages):
http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_0051-0100/sb_77_bill_20110315_amended_asm_v98.pdf
LAST AMENDED: 03/15/2011
LOCATION: Assembly Floor
LATEST ACTION 03/16/2011: Vote taken but fell 1 vote short of passage. Reconsideration granted (meaning another vote can be taken on this bill).
NEXT STEP: Will likely be taken up again Thursday either in the Assembly or Senate.
CDCAN NOTE: No changes were made to this bill since 03/14/2011.
EDUCATION
· Education trailer bill was NOT taken up by either the full Assembly or State Senate on Wednesday, March 16. The education trailer bill (AB 94) in the State Senate however was formally heard and referred out of Senate Budget and Fiscal Review Committee with amendments today (March 16)
· These two trailer bills include changes to state law to implement reductions to higher education (community colleges, California State University and University of California).
· ONE of these two bills, will be passed by both houses and sent to the Governor, though at this point in time, it is not certain which of the two identical bills will move forward.
AB 94 – Education Finance
Download copy of this bill (108 pages):
http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_0051-0100/ab_94_bill_20110314_amended_sen_v98.pdf
LAST AMENDED: 03/16/2011
LOCATION: State Senate Floor
LATEST ACTION 03/16/2011: Bill was heard and referred out of Senate Budget and Fiscal Review Committee with amendments. It was not taken up for a vote on the Senate floor today.
CDCAN Note: This bill now differs from the education trailer bill in the Assembly (SB 70), with amendments made today (03/16/2011) in the Senate Budget and Fiscal Review Committee.
SB 70 – Education Finance
Download copy of this bill (108 pages):
http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_0051-0100/sb_70_bill_20110314_amended_asm_v98.pdf
LAST AMENDED: 03/14/2011
LOCATION: Assembly Floor
LATEST ACTION 03/16/2011: None
TRANSPORTATION
AB 105 – Transportation Trailer Bill (as amended 03/14/2011)
Download copy of this bill (61 pages):
http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_0101-0150/ab_105_bill_20110314_amended_sen_v98.pdf
LAST AMENDED: 03/16/2011
LATEST ACTION 03/16/2011: PASSED State Senate 39 to 0 with urgency provision. PASSED Assembly 66 to 3 with urgency provision.
NEXT STEP: Goes to Governor for approval.
CDCAN NOTE: This bill was amended 03/16/2011 in Senate Budget and Fiscal Review Committee hearing.
REVENUES – TAXATION: PERSONAL INCOME & CORPORATE TAX
· The Assembly and State Senate did NOT take up these revenue related trailer bills on Wednesday, March 16.
· These two identical bills would establish a mandatory single sales factor for apportionment of corporate income tax across states and changes the manner in which the location of sales of service and intangibles are assigned, and would eliminate the enterprise zone tax credits.
· ONE of these two bills, will be passed by both houses and sent to the Governor, though at this point in time, it is not certain which of the two identical bills will move forward.
AB 103 – Taxation – Personal Income and Corporation Tax
Download copy of this bill (156 pages):
http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_0101-0150/ab_103_bill_20110314_amended_sen_v98.pdf
LAST AMENDED: 03/14/2011
LOCATION: State Senate floor
LATEST ACTION 03/16/2011: None
SB 79 – Taxation – Personal Income and Corporation Tax
Download copy of this bill (156 pages):
http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_0051-0100/sb_79_bill_20110314_amended_asm_v98.pdf
LAST AMENDED: 03/14/2011
LOCATION: Assembly Floor
LATEST ACTION 03/16/2011: None
TAX INCREASE TEMPORARY EXTENSION & REALIGNMENT
· The Assembly and State Senate did NOT take any action on this bill.
· This constitutional amendment, titled “The Schools and Local Public Safety Protection Act of 2011" will generate approximately $11 billion by maintaining 2010 sales and use tax rates, vehicle license fee rates, and personal income tax rates for five years.
· These revenues will be dedicated to local public safety services realigned from the State to local governments and to help prevent cuts to local public schools and community colleges.
· This constitutional amendment will also guarantee local governments ongoing funding for realigned public safety services beyond the five-years and provides protections to counties against increased costs from future
SCAX1 1 The Schools and Local Public Safety Protection Act of 2011: Constitutional Amendment
Download copy of this bill (10 pages):
http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_0001-0050/scax1_1_bill_20110314_introduced.pdf
LAST AMENDED: 03/14/2011
LOCATION: State Senate Floor
LATEST ACTION 03/16/2011: None
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