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Bills on the Move

By Andrew Keller - February 26, 2010

 

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This week is all about the budget. After filling a $2 billion gap in the budget – out of $20 billion – earlier in the week, lawmakers looked to other fixes for the remaining funds. Up for debate are adjustments to state lottery revenues, funding deferrals to K-12 and higher education, and a complex gas tax swap. Here is a breakdown of the bills related to these issues.

 

Finance

AB 142 (Hayashi) California State Lottery.  
Introduced: 1/22/2009  Last Amended: 2/1/2010
Status: 2/23/2010-From committee: Do pass, and re-refer to Com. on APPR. Re-referred. (Ayes 9. Noes 0.) (February 23).

Summary: The California State Lottery Act of 1984, enacted by initiative, authorizes a California State Lottery and provides for its operation and administration by the California State Lottery Commission and the Director of the California State Lottery, with certain limitations.  The act requires that not less than 84% of the total annual revenues from the sale of state lottery tickets or shares be returned to the public in the form of prizes and net revenues to benefit public education, and that no more than 16% of those revenues be used for expenses of the lottery.  The act further specifies that, of that 84%, 50% of the total annual lottery revenues be returned to the public in the form of prizes, and that at least 34% of those revenues be allocated to the benefit of public education.  The act establishes the State Lottery Fund, a continuously appropriated fund for carrying out the purposes of the act.

This bill would require revenues of the state lottery to be allocated so as to maximize the amount of funding allocated to public education, and would require that not less than 87% of the total annual revenues of the state lottery be returned to the public, and no more than 13% be used for lottery expenses.  The bill would further specify that, of that 87%, not less than 50% of the total annual lottery revenues, in an amount to be determined by the commission, be returned to the public in the form of prizes.  The bill would require the commission to establish the percentage to be allocated to the benefit of public education at a level that maximizes the total net revenues allocated to the benefit of public education.  By changing these allocations, the bill would change the purposes for which the funds of a continuously appropriated fund may be appropriated, and thereby would make an appropriation.  The bill would make other conforming changes.  This bill contains other related provisions and other existing laws.

 

ABX8 5 (Committee on Budget) State cash resources.  
Introduced: 1/15/2010 Last Amended: 2/19/2010
Status: 2/25/2010-To enrollment.

Summary: Existing law requires the Controller to notify the Governor and the Pooled Money Investment Board when the General Fund is or will be exhausted.  The Governor is then authorized to order the Controller to direct the transfer of all or any part of the moneys not needed in other funds or accounts, with specified exceptions, to the General Fund from those funds or accounts, as determined by the Pooled Money Investment Board.  This bill would require that specified General Fund payments to be made in March 2010 would be paid no sooner than April 15, 2010, but no later than May 1, 2010, which would be carried out by the Controller.  The bill would require the Controller, Treasurer, and Director of Finance, prior to the payment deferrals, to jointly review and compare the actual General Fund receipts and disbursements with the receipt and disbursement projections contained in the cash flow statements associated with the proposed 2010-11 Governor's Budget.

The bill would require the payments that would otherwise be deferred to be made if sufficient cash is available, as specified, and would require the Department of Finance to notify the Joint Legislative Budget Committee of the payments.  If payments are deferred, beginning April 1, 2010, the bill would require the Controller, Treasurer, and Director of Finance to review daily the actual cash receipts and disbursements in comparison to the receipt and disbursement projections associated with the proposed 2010-11 Governor's Budget.  The bill would require the deferred payments to be made as soon as feasible, in a specified order, if sufficient cash is available to make all payments through April 15, 2010, including the payments otherwise subject to deferral, and maintain a prudent cash reserve. This bill contains other related provisions and other existing laws.

 

SBX8 6 (Committee on Budget and Fiscal Review) Transportation finance.
Introduced: 1/20/2010  Last Amended: 2/22/2010
Status: 2/23/2010-In Senate. To unfinished business.

Summary: Existing law requires the Director of Finance to make certain adjustments in one of the formulas used in computing the state's obligation under the California Constitution to provide funding for school districts and community college districts so as to ensure that the modifications in property tax revenue allocation requirements that were made by prior enactments do not have a net fiscal impact on school districts or community college districts, or upon the state's funding obligation to those districts.  This bill would additionally specify adjustments on the calculation of the state's constitutional funding obligations that are related to the change in taxes made by this bill. This bill contains other related provisions and other existing laws.

Editor's Note: Andrew Keller is the Legislative Assistant for Governmental Solutions Group, LLC, a policy consulting and legislative advocacy firm.