Bill Text: CA SCAX32 | 2009-2010 | Regular Session | Introduced
Bill Title: State finance.
Spectrum: Partisan Bill (Republican 4-0)
Status: (Introduced - Dead) 2009-10-26 - From committee without further action. [SCAX32 Detail]
Download: California-2009-SCAX32-Introduced.html
BILL NUMBER: SCAX3 2 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Ashburn
(Principal coauthor: Senator Cogdill)
(Principal coauthors: Assembly Members Adams and Niello)
FEBRUARY 25, 2009
A resolution directing the Secretary of State to withdraw from the
consideration of the people of the State of California Senate
Constitutional Amendment No. 30 (Resolution Chapter 167 of the
Statutes of 2008) and further directing the Secretary of State to
make amendments in Senate Constitutional Amendment No. 13 (Resolution
Chapter 144 of the Statutes of 2008).
LEGISLATIVE COUNSEL'S DIGEST
SCA 2, as introduced, Ashburn. State finance.
Senate Constitutional Amendment No. 13 of the 2007-08 Regular
Session, as amended by Senate Constitutional Amendment No. 30 of the
2007-08 Regular Session, would, if approved by the voters, make
certain changes relating to state finance.
This measure would withdraw Senate Constitutional Amendment No. 30
from the consideration of the voters.
Senate Constitutional Amendment No. 13 of the 2007-08 Regular
Session, if approved by the voters, would rename the Budget
Stabilization Account the Budget Stabilization Fund and would provide
that all moneys in the fund not designated for deposit into the
Deficit Recovery Bond Retirement Sinking Fund Subaccount may be
transferred to the General Fund by a statute that contains no
unrelated provisions or may be loaned to the General Fund to address
a General Fund cashflow deficit. That measure would further require
the Director of Finance, on or before May 29 of each year, to report
to the Legislature and the Governor an estimate of the amount of
General Fund revenues, transfers, and balances available from the
prior fiscal year for the current fiscal year and the impact of tax
legislation adopted during the current fiscal year subsequent to the
enactment of the Budget Bill. In addition, that measure would provide
that if, pursuant to a formula based on those estimates, there are
unanticipated revenues in the current fiscal year, those revenues may
be used only for specified purposes, and in a specified order of
priority.
This measure would amend those provisions to also create the
Supplemental Budget Stabilization Account, and to establish the
Supplemental Education Payment Account if a constitutional provision
is added to provide for supplemental education payments, as
specified. The measure would also provide that, apart from a transfer
made for the purpose of responding to an emergency declared by the
Governor, as defined, or a loan to meet General Fund cash
requirements which would be repaid within a fiscal year, the total
amount that may be transferred from the Budget Stabilization Fund to
the General Fund for any fiscal year shall not exceed the amount
derived by subtracting the General Fund revenues, transfers, and
balances available from the prior fiscal year for that fiscal year
from the expenditure forecast amount for the current fiscal year,
determined as total General Fund expenditures for the immediately
preceding fiscal year adjusted for changes in population and the cost
of living. In addition, this measure would direct the Controller to
transfer, on October 1 of each year beginning in 2011, from the
Budget Stabilization Fund to the Supplemental Education Payment
Account, if established, a sum equal to 1.5% of the estimated General
Fund revenues for the current fiscal year until a specified total
amount is met. After that amount is met, or if the Supplemental
Education Payment Account is not established, the Controller would
instead be required to transfer that sum on October 1 of each year to
the Supplemental Budget Stabilization Account, from which
appropriations could be made only for capital outlay purposes or to
retire bonded indebtedness of the state. This measure would further
provide that, commencing with the 2010-11 fiscal year, unanticipated
revenues shall be determined pursuant to a formula either based on
estimates of General Fund revenues for the current fiscal year and
the revenue forecast amount for the current fiscal year, as defined,
or based on estimates of General Fund revenues, transfers, and
balances available from the prior fiscal year for the current fiscal
year and the expenditure forecast amount for the current fiscal year.
The measure would also modify the education funding purposes for
which unanticipated revenues could be expended.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
Resolved by the Senate, the Assembly concurring, That the
Legislature of the State of California at its 2009-10 Third
Extraordinary Session commencing on the fifth day of January 2009,
two-thirds of the membership of each house concurring, hereby directs
the Secretary of State to withdraw from the consideration of the
people of the State of California Senate Constitutional Amendment No.
30 of the 2007-08 Regular Session (Resolution Chapter 167 of the
Statutes of 2008); and be it further
Resolved, That the Legislature hereby directs the Secretary of
State to make amendments in Senate Constitutional Amendment No. 13 of
the 2007-08 Regular Session (Resolution Chapter 144 of the Statutes
of 2008) by removing Sections 20 and 21 of Article XVI of the
Constitution, as proposed to be amended and added, respectively, by
that measure, and replacing those sections with the following
Sections 20 and 21:
Second-- That Section 20 of Article XVI thereof is amended to
read:
SEC. 20. (a) (1) The Budget
Stabilization Fund, and the Supplemental Budget Stabilization
Account is , are hereby created
in the General Fund.
(2) If Section 8.3 is added to this article to provide for
supplemental education payments at the same election at which this
paragraph was approved by the voters, the Supplemental Education
Payment Account is hereby established in the General Fund.
(b) In each fiscal year as specified in paragraphs (1) to (3),
inclusive, the Controller shall transfer from the General Fund to the
Budget Stabilization Account Fund the
following amounts:
(1) No later than September 30, 2006, a sum equal to 1 percent of
the estimated amount of General Fund revenues for the 2006-07 fiscal
year.
(2) No later than September 30, 2007, a sum equal to 2 percent of
the estimated amount of General Fund revenues for the 2007-08 fiscal
year.
(3) No later than On September 30,
2008, and on September 23 annually thereafter, a sum equal
to 3 percent of the estimated amount of General Fund revenues for
the current fiscal year.
(c) The Except for the amount determined
pursuant to subdivision (h), the transfer of moneys shall not
be required by subdivision (b) in any fiscal year to the extent that
the resulting balance in the account Budget
Stabilization Fund would exceed 5 12.5
percent of the General Fund revenues estimate set forth in the
budget bill for that fiscal year, as enacted , or eight
billion dollars ($8,000,000,000), whichever is greater .
The Legislature may, by statute, direct the Controller, for one or
more fiscal years, to transfer into the account
Budget Stabilization Fund amounts in excess of the levels
prescribed by this subdivision.
(d) Subject to any restriction imposed by this section, funds
transferred to the Budget Stabilization Fund, the Supplemental
Education Payment Account, or the Sup plemental
Budget Stabilization Account shall be deemed to be General
Fund revenues for all purposes of this Constitution.
(e) The Except for the amount determined
pursuant to subdivision (h), the transfer of moneys from the
General Fund to the Budget Stabilization Account
Fund may be suspended or reduced for a fiscal year as
specified by an executive order issued by the Governor no later than
June 1 of the preceding fiscal year the date
of the transfer set forth in subdivision (b) . For a
fiscal year commencing on or after July 1, 2011, this subdivision
shall be operative only if a transfer of moneys from the Budget
Stabilization Fund to the General Fund is authorized pursuant to
subparagraph (A) of paragraph (2) of subdivision (f).
(f) (1) Of the moneys transferred to the account
Budget Stabilization Fund in each fiscal year,
exclusive of the amount determined pursuant to subdivision (h),
50 percent, up to the aggregate amount of five billion dollars
($5,000,000,000) for all fiscal years, shall be deposited in the
Deficit Recovery Bond Retirement Sinking Fund Subaccount, which is
hereby created in the account Budget
Stabilization Fund for the purpose of retiring deficit recovery
bonds authorized and issued as described in Section 1.3, in addition
to any other payments provided for by law for the purpose of
retiring those bonds. The moneys in the sinking fund subaccount are
continuously appropriated to the Treasurer to be expended for that
purpose in the amounts, at the times, and in the manner deemed
appropriate by the Treasurer. Any funds remaining in the sinking fund
subaccount after all of the deficit recovery bonds are retired shall
be transferred to the account Budget
Stabilization Fund , and may be transferred to the General Fund
pursuant to paragraph (2).
(2) All Except for the amount determined
pursuant to subdivision (h), all other funds transferred to the
account Budget Stabilization Fund in a
fiscal year shall not be deposited in the sinking fund subaccount
and may , by statute, be transferred to the
General Fund by statute as specified in this
paragraph .
(A) Apart from a transfer pursuant to subparagraph (B), the total
amount that may be transferred to the General Fund pursuant to this
paragraph for any fiscal year shall not exceed the amount derived by
subtracting the General Fund revenues, transfers, and balances
available from the prior fiscal year for that fiscal year from the
expenditure forecast amount for the current fiscal year. For purposes
of this subparagraph, "General Fund revenues, transfers, and
balances available from the prior fiscal year for that fiscal year"
does not include revenues transferred from the General Fund to the
Budget Stabilization Fund pursuant to subdivision (b) for that fiscal
year. For purposes of this subparagraph, Section 21, and Section 12
of Article IV, "balances available from the prior fiscal year for
that fiscal year" means the funds in the Special Fund for Economic
Uncertainties, or a successor fund, as of June 30 of the prior fiscal
year. The "expenditure forecast amount" for a fiscal year is the
total General Fund expenditures for the immediately preceding fiscal
year adjusted for the change in population of the State, as defined
in Section 8 of Article XIII B, and the change in the cost of living
for the State, as measured by the California Consumer Price Index,
between the immediately preceding fiscal year and the fiscal year in
which the transfer is made. "Total General Fund expenditures for the
immediately preceding fiscal year" do not include, for this purpose,
the expenditure of unanticipated revenues pursuant to subparagraph
(B) or pursuant to paragraph (3) or (4) of subdivision (c) of Section
21.
(B) Any funds necessary for the purpose of responding to an
emergency declared by the Governor may be transferred by statute. For
purposes of this subparagraph, "emergency" has the same meaning as
set forth in paragraph (2) of subdivision (c) of Section 3 of Article
XIII B.
(g) In addition to any transfer authorized by this section, funds
in the Budget Stabilization Fund or the Supplemental Budget
Stabilization Account may be loaned to meet General Fund cash
requirements on the condition that the funds are repaid within the
same fiscal year in which the loan is made.
(h) If the Supplemental Education Payment Account is established
by subdivision (a), on October 1, 2011, and on October 1 annually
thereafter, the Controller shall transfer from the Budget
Stabilization Fund to the Supplemental Education Payment Account the
lesser of the following:
(1) A sum equal to 1.5 percent of the estimated amount of General
Fund revenues for the current fiscal year.
(2) The amount of the total supplemental education payments set
forth in subdivision (a) of Section 8.3 remaining to be allocated.
(i) (1) If the Supplemental Education Payment Account is
established by subdivision (a), on October 1 of the first fiscal year
for which the amount determined pursuant to paragraph (1) of
subdivision (h) is greater than the amount determined pursuant to
paragraph (2) of subdivision (h), and on October 1 annually
thereafter, the Controller shall transfer from the Budget
Stabilization Fund to the Supplemental Budget Stabilization Account a
sum equal to 1.5 percent of the estimated amount of General Fund
revenues for the current fiscal year minus the amount, if any, of the
total supplemental education payments set forth in subdivision (a)
of Section 8.3 remaining to be allocated.
(2) If the Supplemental Education Payment Account is not
established by subdivision (a), on October 1, 2011, and on October 1
annually thereafter, the Controller shall transfer from the Budget
Stabilization Fund to the Supplemental Budget Stabilization Account a
sum equal to 1.5 percent of the estimated amount of General Fund
revenues for the current fiscal year.
(3) Funds in the Supplemental Budget Stabilization Account may be
appropriated only for the purposes set forth in subparagraphs (B) or
(C) of paragraph (4) of subdivision (c) of Section 21.
Third-- That Section 21 is added to Article XVI thereof, to read:
SEC. 21. (a) On or before May 29, 2011, and on or before May
29 of each year thereafter, the Director of Finance shall do all of
the following, reporting the result in each case to the Legislature
and the Governor:
(1) Separately estimate General Fund revenues, transfers, and
balances available from the prior fiscal year for the current fiscal
year.
(2) Determine the revenue forecast amount for the current fiscal
year in the manner set forth in subdivision (d).
(3) Estimate the amount, as of that date, of any General Fund
obligations arising under Section 8 for the current fiscal year,
including any maintenance factor allocation for the current fiscal
year required pursuant to subdivision (e) of Section 8, that have not
yet been funded by the State.
(b) (1) Except as provided in paragraph (2), "unanticipated
revenues" for a fiscal year, for purposes of this section, shall be
the lesser of the following:
(A) Estimated General Fund revenues for the current fiscal year
reported pursuant to paragraph (1) of subdivision (a) minus the
revenue forecast amount for the current fiscal year.
(B) Estimated General Fund revenues, transfers, and balances
available from the prior fiscal year for the current fiscal year
reported pursuant to paragraph (1) of subdivision (a) minus the
expenditure forecast amount for the current fiscal year determined
pursuant to subparagraph (A) of paragraph (2) of subdivision (f) of
Section 20.
(2) If the amount determined pursuant to paragraph (1) is less
than zero, the amount of unanticipated revenues shall be zero.
(c) Unanticipated revenues, as determined pursuant to this
section, may be used only as follows:
(1) Unanticipated revenues shall be appropriated to satisfy any
unfunded General Fund obligations arising under Section 8 for the
current fiscal year, as estimated pursuant to paragraph (3) of
subdivision (a).
(2) Any unanticipated revenues that remain after deducting, in
accordance with paragraph (1), the amount of the estimate required by
paragraph (3) of subdivision (a) shall be transferred by the
Controller no later than June 27 of the current fiscal year to the
Budget Stabilization Fund, not exceeding the amount needed to
increase the balance in the fund to an amount equal to 12.5 percent
of the estimate of General Fund revenues as set forth in the enacted
budget bill for that fiscal year. Notwithstanding any other provision
of this Constitution:
(A) If the Director of Finance determines at any time that the
total amount of General Fund obligations arising under Section 8 for
a fiscal year, including any maintenance factor allocation for that
fiscal year required pursuant to subdivision (e) of Section 8,
exceeds the total amount of those General Fund obligations as
calculated for that fiscal year for purposes of the estimate required
by paragraph (3) of subdivision (a), he or she shall so report to
the Legislature, the Governor, and the Controller. The Controller
shall thereupon transfer funds in the amount of that difference from
the Budget Stabilization Fund to the General Fund, and the funds so
transferred shall be appropriated only for purposes of funding the
additional amount of General Fund obligations under Section 8
determined pursuant to this paragraph.
(B) If the Director of Finance determines at any time that the
total amount of General Fund obligations arising under Section 8 for
a fiscal year, including any maintenance factor allocation for that
fiscal year required pursuant to subdivision (e) of Section 8, is
less than the total amount of those General Fund obligations as
calculated for that fiscal year for purposes of the estimate required
by paragraph (3) of subdivision (a), he or she shall so report to
the Legislature, the Governor, and the Controller. The Controller
shall thereupon transfer funds in the amount of that difference from
the General Fund to the Budget Stabilization Fund, not exceeding the
amount needed to increase the balance in the latter fund to an amount
equal to 12.5 percent of the estimate of General Fund revenues as
set forth in the enacted budget bill for that fiscal year.
(3) Any unanticipated revenues remaining after any appropriations
and transfers described in paragraphs (1) and (2) shall be
appropriated to retire outstanding budgetary obligations. For
purposes of this paragraph, "budgetary obligations" means any of the
following:
(A) Unfunded prior fiscal year General Fund obligations pursuant
to Section 8.
(B) Any repayment obligations created by the suspension of
subparagraph (A) of paragraph (1) of subdivision (a) of Section 25.5
of Article XIII.
(C) Any repayment obligations created by the suspension of
subdivision (a) of Section 1 of Article XIX B.
(D) Bonded indebtedness authorized pursuant to Section 1.3.
(4) Any unanticipated revenues remaining after any appropriations
and transfers described in paragraphs (1), (2), and (3) are made to
retire all outstanding budgetary obligations shall be used for one or
more of the following purposes:
(A) Transfer by statute to the Budget Stabilization Fund.
(B) Appropriation for one-time infrastructure or other capital
outlay purposes.
(C) Appropriation to retire, redeem, or defease outstanding
general obligation or other bonded indebtedness of the State.
(D) Return to taxpayers within the current or immediately
following fiscal year by a one-time revision of tax rates, or by
rebates.
(E) Appropriation for unfunded liabilities for vested nonpension
benefits for state annuitants.
(d) For the 2010-11 fiscal year, and for each fiscal year
thereafter, the revenue forecast amount shall be determined as
follows:
(1) The General Fund revenues for the current fiscal year shall be
forecast by extrapolating from the trend line derived by a linear
regression of General Fund revenues as a function of fiscal year for
the period of the 10 preceding fiscal years. For purposes of this
paragraph, General Fund revenues shall exclude both of the following:
(A) The General Fund revenue effect of a change in state taxes
that affects General Fund revenues for less than the entire period of
the 10 preceding fiscal years.
(B) Any proceeds of bonds authorized by subdivision (a) of Section
1.3.
(2) The amount forecast pursuant to paragraph (1) shall be
increased or decreased, as applicable, to reflect the net current
fiscal year General Fund revenue effect of a change in state taxes
for which General Fund revenue effects were excluded pursuant to
subparagraph (A) of paragraph (1).
