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Home My WebLink About09/05/97 BAKERSFIELD CITY MANAGER'S OFFICE MEMORANDUM September 5, 1997 TO: HONORABLE MAYOR AND CITY CO~ 'JE"'"'~ FROM: ALAN TANDY, CITY MANAGER ~'~ SUBJECT: GENERAL INFORMATION 1. It's not just a hole anymore! Heavy rebar structures, which are the skeleton for concrete to be poured, are rising up above surface level at the arena site. They are sheer walls - or the earthquake resistant structural supports. They are also starting to form up the basement perimeter walls. 2. Enclosed is an update from the Economic and Community Development Department on the housing and community development projects. 3. Attached is a memorandum regarding the Joint Power Agreement with Califonria Rural Mortgage and the ability of City residents to participate in the Second Mortgage Program. 4. A response to a Council referral regarding potential Arena events is enclosed. 5.' I will be going to the City Management Conference in Vancouver, September 13- 17. I'm planning to take the balance of that week off as vacation. The office will have my number for emergencies. Dolores Teubner will be in charge. 6. With the streetscape and the Buena Vista trunkline on for bid award September 10th, it seems like we are making excellent progress with our major capital improvements. Wastewater Plant III was recently awarded - Plant II will come up soon. The Panama bridge and Arena are well underway - so, overall it's going well. 7. Key members of staff have started meetings to develop both a short term and long term plan for dealing with the adverse court decision on the site development ordinance. Honorable Mayor and City Council September 5, 1997 Page 2 8. Response to suite sales the first week has been strong. Four deposits have been made and two others who say they are "on their way with checks." Several strong expressions of interest have also been made. It's first come-first served On location and price range, so if you know of people interested, it is to their benefit to get in soon. Have them call my office. There are 22 suites in the building, so if the two "on the way" do arrive, we are 27% sold out the first week! 9. I'm sorry to say that our recent success at short Council meetings is likely to end September 10th with a pretty tough agenda. AT: rg cc: Department Heads Pamela McCarthy, City Clerk Trudy Slater, Administrative Analyst Economic and Community Development Department MEMORANDUM August 29, 1997 TO: Jake Wager, Economic Development Director FROM: Vince A. Zaragoza, Principal Planner q~' SUBJECT: Status of Housing and Community Development Activities This memo will serve as an update for the past quarter regarding on-going housing and community development projects. CAPITAL IMPROVEMENT PROJECTS 1. Terrace Way Storm Drain Extension Project (Phase H- Design Only) About $11,000 has been set aside for Phase II design. Design consists of about 1,880 1.f. of storm drain pipe on Terrace Way from Union Avenue to Berneta Avenue. Construction to be funded with non - CDBG funds. Design is scheduled to start in late August and to be completed end of next month. Construction is anticipated to start by November, 1997. 2. Street Barrier Removal/Reconstruction Improvements Funds in the amount of $57,000 ($15,000 in FY 95-96 and $42,000 in FY 96-97) are available for reconstruction of existing street barriers for improving pedestrian and traffic flow in the downtown area. The street barrier design will complement the streetscape design being developed for the Chester Avenue Streetscape Improvement Project. Among the first barriers to be addressed will be those at 20th & H streets adjacent to the Fox Theater and include a combination of bollards and landscaping. Public Works is developing plans and specifications for the bid package. Bollards for the downtown area have been ordered and are expected to arrive by no later than next week. Construction is _ anticipated to start next month with completion by end of the year. ~-'~ r-~-~, f. ~ ~'~ 1 '~. 199'[ ,C~TY [~,'iP-~.~/-'~i :':" 3. Lake Street Area Street Reconstruction Project (Phase III) Approximately $122,000 of FY 95-96 and $113,000 of FY 97-98 funds are available to reconstruct Lake Street from Owens Street to Williams Street. The reconstruction includes 2,275 +_ lineal feet of Lake Street. Total reconstruction improvements will also. include the installation of approximately 6,550 lineal feet of curb and gutter. Design began in May with completion expected by late August, 1997. Construction to begin in September with completion by November, 1997. 4. Lake Street Area Reconstruction Project (Phase IV) Installation of 1,550 +/- lineal feet of in-fill curb and gutter with 775 +/- lineal feet lineal feet of street reconstruction along Lake Street between Beale Avenue and Owens Street. The budget for this activity is approximately $110,000. Design began in May and to be completed August 1997. Construction to begin in September with completion by November, 1997. 5. Union Ave. #10 Area Water Main and Fire Hydrant Upgrade Improvement Project Design and construction of 7,000+ 1.f. of water line in the newly annexed Union #10 area. Improvements to be owned and operated by Cai-Water. Project agreement was executed by the Council last December, 1996. The lead responsibilities for this project were transferred from the Water Department to the Public Works Department. The plans and specifications are under review and estimated to be completed by September. The project is anticipated to be completed by the end of 1997. The City's budget is approximately $512,170 (FY 95-96 - $298,000; FY 96-97 - $214,170). 6. Martin Luther King Jr. Communi~_ Center Driveway Installation Installation of a 2,800 + square foot rear entrance driveway to allow direct access to major meeting rooms when delivering equipment to the community center. City Parks desires to have the project switch the access to the front of the building, and combine the activity with the parking lot reconstruction project funded for FY 96-97. The redesign was completed in May, 1997 with installation estimated to begin in late August and to be completed in October, 1997. The FY 95-96 and 96-97 CDBG budgets are approximately $8,000, and $25,000, respectively. 7. Martin Luther King Jr. Communi~_ Center Recreation Improvements (Phase III) Approximately $72,500 has been earmarked for the rehabilitation of the 22,000 square 2 foot center. Outside door replacement started in June and was completed in July 1997. Installation of a new counter top and a 144 square foot glass storefront office is scheduled to begin in late August with completion by September, 1997. 8. Sidewalk Reconstruction Project (Phase II) Removal and reconstruction of substandard and deteriorated sidewalks in low-income neighborhoods. The construction bids were opened on May 9, 1997. Construction started in early July, 1997 and to be completed at the beginning of September, 1997. The budget for this activity is approximately $70,000. 9. Chester Avenue Streetscape Improvement Project Approximately $332,000 in FY 96-97 and $336,000 in FY 97-98 CDBG funds have been earmarked for streetscape improvements within the public right-of-way along Chester Avenue between Truxtun Avenue and 23rd Street. An additional $1.5 + million in Federal, State and local funds will also be needed to fund the improvements. Plans and specifications have been completed. Original bids were too high and a second bid advertisement was initiated. Bids are due by August 29. Construction is estimated to begin by September, 1997 with completion by January, 1997. 10. Neighborhood Street Lighting Improvement Project Upgrading of existing street lights to City standards and the placement of new street lights and poles to existing residential streets (non commercial) in three low income targeted areas. About 12 lights were installed in the Homemaker Area last April. Additionally, 11 lights are to be placed in the Pacific Street area with another 12 in the Gorrill Avenue Areas. Construction is scheduled to start in late August and to be completed in October, 1997. Approximately $74,000 has been budgeted for this activity. NON-PROFIT/PUBLIC FACILITY PROJECTS Economic and Community Development staff is assisting the following various non-profit organizations to acquire or improve their facilities. 1. Kern Count_ Economic Opportuni~_ Corporation (KCEOC) KCEOC is a designated Community Housing Development Organization (CHDO) under the HOME Program guidelines. KCEOC is using $33,000 of CHDO allocations to purchase HUD repo properties; and they are using the HUD 203K program to rehabilitate the properties. The houses will be sold to low income first time homebuyers. KCEOC identified four properties to purchase at below market value, rehabilitate, and sell 3 to low income first time homebuyers. The City paid $16,236 into escrow as down payment for two of the properties (2619 University Ave and 3904 Edith Lane) on June 23, 1997. The total acquisition cost was $63,158 for 2619 University and $61,260 for 3904 Edith. Approximately 25 % of the 203K loan amount will be used to cover rehabilitation costs. The properties are now under rehabilitation and KCEOC is prescreening prospective buyers. KCEOC will reimburse the City's down payment assistance when the properties are sold. 2. Communi~_ Services Organization (CSO) Rehabilitation Project Funds in the amount of $150,000 have been budgeted for rehabilitating the 15,476 sq. ft. CSO facility at 715 Lake Street. Project is currently under construction. Completion is expected by September, 1997. When completed, the new facility will provide office space for CSO's counseling and training programs. CSO will be able to move from leased space to their own facility. 3. Bakersfield Homeless Center (BHC) The City Council appropriated $41,675 in State Emergency Housing Assistance Program (EHAP) funds to expand the Center's kitchen and complete other related work. JTS Construction has been awarded the bid. Project was completed the end of May, 1997. Installation of the new cold-box equipment is pending the receipt by Bethany of additional funds to supplement the EHAP grant. 4. Fox Theater Foundation Improvements Approximately $19,000 was set aside by the City Council for costs associated with compliance with ADA requirements. The funds were used for the construction of a handicap accessible restroom on the ground floor. Project was completed last month. 5. Mercy Charities Housing, California The City provided Mercy with approximately $550,000 to assist with the construction of a 56-unit affordable apartment complex designed for low income residents with large families. The total project costs approximate $4,600,000 and is primarily financed through the California Credit Tax Allocation Committee (CTAC) tax credit program. Construction is underway and anticipated to be completed by late August, 1997. 6. Anne Sippe Clinic (ASC) Riverside Ranch On March, 1996, the Council awarded $140,000 in multi-family funds to ASC for rehabilitation improvements to the residential care facility on 18200 Kern Canyon Road. The multi-family project is also receiving funding assistance of $550,000 from the County 4 for acquisition and renovation. Construction is underway and is expected to be completed by late September, 1997. 7. Golden Empire Gleaners Rehabilitation Improvement Project Approximately $340,000 in FY 96-97 funds have been earmarked for rehabilitating a 37,033 sq.fi, facility at 3100 Chester Avenue into administrative offices and a food distribution warehouse. The County provided acquisition assistance for the Gleaner's new facility as well as a portion of the rehabilitation costs. An agreement for the rehabilitatiOn portion of the project has been drafted and is under review by the County. Anticipate City Council review of project agreement by October, 1997. 8. Clinica Sierra Vista Communi~_ Services Center Site Acquisition Clinica Sierra Vista (CSV) is proposing to use CDBG funds to acquire property in the 700 block of East California Avenue. CSV will use other funds to then develop an urgent care drop-in facility. The environmental review is underway. CSV has agreed to obtain a Phase ! Haz Mat review and a commercial appraisal. An agreement is expected to be fmaled by September and brought to City Council for action. NEIGHBORHOOD REVITALIZATION AND HOUSING 1. First Time Home Bu_¥ers Program This program continues to assist a significant number of low/moderate income fn'st time home buyers. Up to $3,500 per applicant is provided in the form of a no interest, no monthly payment loan for use toward the downpayment and non-recurring closing costs associated with the acquisition. The loan is repayable in full at the time the borrower sells the residence. Over 420 households have benefited from this program to date. In the past three months, about 41 loans were made. FY 96-97 had approximately $280,000 allocated for this program, and was spent in the first 6 months of the fiscal year. However, another $240,000 was recently added to the program budget. $93,415 has been expended this past quarter which has levemged approximately $2,870,000 in home purchases. 2. Lookine Good Ne~hborhood (LGN) Program. The LGN Program for C.T.'s 13, 15, 21 and 22 is for general public service activities such as clean- up days, public health awareness, educational campaigns and an annual neighborhood awareness festival. The Good Neighbor Festival is scheduled for October 18, 1997. This will be the second year that coordination of the event will be handled by the Bakersfield African-American Cultural Association. Staff will continue to participate as a member of the Good Neighbor Festival committee. The City will remain as a co-sponsor of the event. 5 3. Multi-family and Single Rehabilitation Projects During this past quarter, we completed two single family rehabs; two rehabs are in various stages of construction, and 20 applications are under review for approval. We received eight rehabilitation applications; eight work write-ups have been completed by rehab staff, and 10 work write-ups are currently in progress. The balance of available single family rehabilitation funds were expended during this quarter. 4. Home Accessibili~_ Program We received seven requests for assistance through the Home Accessibility Program this quarter. Ten disabled clients were assisted, and we are working on another 7 applications. Public demand for this program continues to be high. 5. Housing Rehabilitation Marketing Staff received approximately 12 inquiries about our various programs and mailed that many applications for assistance to our potential clients. Housing staffmade 15 personal contacts with homeowners. Staffparficipated in the CSO Baker St Street Faire, and the Homebuyers Expo, in April 1997. A marketing video is under production for the single family rehabilitation program. This will allow us to, more effectively, inform clients about our program and what to expect in a rehabilitation. The revised date is the end of August, 1997. 6. URM Incentive Program As of last month under the incentive program, 16 applicants have been granted reimbursement funds. About 24 commercial owners ofunreinforced property have been given consent to proceed with their project. Of those, twenty are retrofit projects with four scheduled demolitions. At this time, we are processing an additional 24 applications for URM assistance. These applications represent properties that have either applied or have completed environmental review and are currently awaiting their initial seismic study from their engineer. 7. Business Assistance Program Marketing efforts continue for the CDBG Jobs Fund. Facilities for Guy Chaddock & Co., a fumiture manufacturer, are now complete and they are in full operation. About 130 positions were to be created with over half allocated to low income persons. The company received $200,000 in financial assistance. The company President recently indicated they now have 225 employees. Staff is currently in negotiations with Dopaco, a national cardboard and print/packaging business, to provide financial assistance for equipment purchase. Estimated jobs to be created for this company will range from 100-125. Council recently approved an agreement with Kem Tech which is located near Baker Street for an equipment loan of about $170,000 to expand their manufacturing capacity. The new equipment will increase orders and provide additional jobs with over half going to low income residents. The company has hired five new employees. 8. Fair Housing Last June, the City was awarded a 1997 Outstanding Planning Award for Advocacy Planning under the Leadership Category from the Central California Chapter of the American Planning Association. The award was given on the basis of its "cutting edge analysis of fair housing need and strategic planning". The document has been highly complimented by the L.A. Area HUD Office and is used as an example for other jurisdictions preparing similar documents. The fair housing hotline experienced a large increase in calls during this period. A total of three-hundred-ninety-three (393) callers received counseling over the hotline from which 14 cases were'established and 19 cases were closed. Eight of the reviewed and investigated cases were successfully mediated, yielding mutual conciliation agreements between the parties. Fiscal year end statistics compiled from data collected between July 1996 to June 1997 have been summarized and indicate a thirty-three percent (33%) increase in discrimination calls, a forty-four (44%) increase in discrimination cases and a mediation success rate of sixty percent (60%). Additionally, the bases of housing discrimination complaints and inquires to the Fair Housing Hotline as follows: Race .............. 49% Gender: ............ 1½% Religion: ........... 1% Familial Status: ..... 29½% Disability: .......... 3% Marital Status: .......1% Other Arbitrary ...... 15% *Other includes age, sexual preference and other protected classes under case law. 9. Communi~_ Reinvestment Act (CRA) Lenders Group City staff assisted in the formation of a public/private partnership with local lenders to address the need for affordable housing in the City of Bakersfield. A number of lenders are participating in the financing of single family and multi-family housing projects affordable to low income families. To date, more than $1,076,829 of federal funds have been leveraged with over $25,000,000 of private sector financing to provide mortgages for about 420 low income families within the City. 7 10. Mortgage Credit Certificates (MCC) Program The City has contracted with Danny Fred and Associates to administer the MCC program for the City as well as for the following cities: California City, Delano, Ridgecrest, Shafter, Taft, Tehachapi, and Wasco (to date, approximately 135 MCC's have been issued which includes 10 certificates for the past quarter). Additionally, the City has been awarded $3.9 million in FY 96 bond allocation to continue the program. 11. Commercial Facade Grant Proeram Applications for three facades on 1100 Union Avenue (Wellsprings Facility) were withdrawn. There remains about $20,000 in this program. 12. Enterprise Zone Marketing/Training The City, County, Employers' Training Resource (ETR) and Kem Economic Development Corporation have approved the 1997 Enterprise Zone Agreement. The agreement sets out the duties and responsibilities of each organization in marketing the Enterprise Zone. A majority of the funds goes towards ETR to provide assistance in business certification, job training, and employee referral services. City and County each contribute one-half of the funding for the $18,000 agreement that extends through June 30, 1998. Marketing and training are on-going. 13. Self Help Enterprise (SHE) Home Acquisition Project SHE, as a designated CHDO, used approximately $238,650 in HOME funds to acquire ten single family residential lots. The purchase was completed in November, 1996. SHE is in the process of selecting low-income qualified first time homebuyers to assist in the construction of their own homes under the Self Help program guidelines. Each applicant is estimated to give approximately 1,200 hours of volunteer labor and will supervised under the direction of SHE managers. The project will be completed by January, 1998. 14. Restoration Communi~_ Project, Inc. (RCPI) RCPI's proposal is to acquire a single-family home and rehabilitate the facility for use in conjunction with RCPI's adjacent property (formerly known as the Friese Maternity Home) for use as a transitional housing project. The facility will house women and their children as they recover from substance abuse and gain the skills to be self-sufficient. Kern County is also contributing to this project. Council has recently approved the use of $100,000 in HOME funds for this project. Acquisition was completed in July, 1997 with the rehabilitation phase taking an additional 90 - 120 days from the date the County funds become available. The County funds are anticipated to become available this fall. 8 15. New Construction Assistance The FY 96-97 budget has earmarked about $116,000 for housing development assistance for construction of affordable housing. Currently, staff has identified about eight vacant lots that are being offered in a public tax delinquent sale by the County. On August 21, 1996 the Council approved a request that the County withdraw these sites from the tax sale in order for the City to make an offer to purchase them for future housing development. Two affordable housing developers have agreed to participate. Escrow has opened on five of the properties with transfer of the title expected in September, 1997. 16. Ci~_ 's Sewer Connection Fee Loan Program A zero interest loan program was designed to encourage low income residents of the Panama 10 Annexation area to hook up to the newly constructed sewer. The program offers a five year, no interest loan to low income homeowners to pay the fees associated with sewer hookup. If the homeowner applies, and receives a home improvement loan the sewer hookup fees will become a grant. This is a pilot program that will begin by the end of the month and be extended to other CDBG targeted areas as needed. The current budget is approximately $40,000. A citizen's brochure for this program has been developed and will be desseminated to interested residents. This program was just kicked off in June in the Panama 10 annexation area. 17. Integrated Disbursement Information System (IDIS) As part of a new grant management system, HUD is requesting that IDIS be operational for cities and counties in the very near future. Using telecommunication software, modems, and integrated information software, grantees will be expected to seek future HUD grants on line and maintain City grant files on a federal database in Washington. IDIS will also affect the City's reimbursement process from HUD's line of credit. The goal of IDIS is to provide past accomplishments, current status, and proposed project information on one centralized database that allows HUD and Congress to access real time data for emitlement communities. HUD envisions that after the IDIS conversion process is complete, grantees will be able to streamline and expedite the submission and reporting process for federal grants. Staff is currently focusing their efforts to meet the IDIS challenge which will require new procedures for managing the HUD grant management process. Anticipated conversion date is middle of next month. P:\QTLY\AUGQTLY. 97W ~'~~ MEMORANDUM September 3, 1997 To: Alan Tandy, City Manager ronk, Convention Center Manager '~Council Referral Regarding Potential Arena Events Pleage advise should you wish to amend the following council referral response. In response to council member Salvaggio's request, the following describes potential events to be hosted within the new arena. · Anticipate a 32 to 34 home series ice hockey season with expectations of pre and post season play. · In August, staffmet with a representative of Ringling Brothers and Barnum & Bailey Circus and Disney on Ice to discuss potential scheduling. Awaiting verification of routing and contract information. · In September, re-contacted a representative from Champions on Ice regarding : possible late winter or summer single day event. Expect to select date within 60- 90 days as their routing and our available dates are determined. Skaters are former Olympic and or World Cup ice skating participants. · We are tentatively holding a November 1998 date for a major country western male singer. As a courtesy to promoter, we prefer to withhold name until further along with event details. · We are tentatively holding a February 1999 weekend for a multi-day rodeo, possibly culminating with a concert. · Several promoters have requested we keep them apprized of construction progress. In turn, they will monitor available concert and theatrical tour routing for possible future bookings. · Watchtower convention organizers have expressed an interest in transferring their event from existing space to the new arena in order to bring more delegates to Bakersfield. · Marketing persons from Sesame Street Live have inquired regarding future bookings. Awaiting status as to routing. · CVB, especially through its Sports Marketing Council, is following leads from various events including possibility of Olympic pre-qualifying event for power lit~ing. S:\arena\council referral I Economic and Community Development Department MEMORANDUM August 28, 1997 TO: Jake Wager, Economic Development Director FROM: George Gonzales,~ity Development Coordinator SUBJECT: Joint Power Agreement with the California Rural Mortgage Finance Authority (Cai Rural) to participate in their Second Mortgage Program. At the September 26, 1997, Board of Supervisor's meeting, the Joint Powers Agreement with Cal Rural was approved. All cities in Kern County are now eligible to participate in the Second Mortgage Program for their respective jurisdictions. Cal Rural has been implementing a second mortgage program which is similar to the City's very successful first time homebuyers program. The program they offer, parallels the City's program, in that the downpayment assistance (up to 6% of the first loan amount) is secured by a thirty year second trust deed (at a 5% interest rate). Their program does require repayment while ours is forgiven at the end of the thirty year term (or if title is transferred before the expiration of term the full principal amount is due). The Second Mortgage Program (as it is known) requires no payment for the first ten years but interest does compound. For the last twenty years of the term, the repayment is fully amortized. One distinct advantage to the Second Mortgage Program is the higher income limits allowed when compared to HUD's income restrictions. Thus, we would continue to assist the lower income household while also allowing us to assist higher income families and individuals. This program presents no financial risk to the City nor does it require city staff or funds for support. Cal Rural representatives will be scheduling a meeting with lenders and realtors in October to initiate the program. With the County approving the Joint Power Agreement with Cal Rural, the City Council's action, on the same issue, which was approved on August 6, 1997, need not be finalized. City residents will be able to take advantage of the Cal Rural Second Mortgage Program. 5EP 2 1997 dlk:?:\GEORG£\CAL~Ui~.k'~ . ~. , _ - ,- .. , LOCAL '700. SEFIVICE EMPLOYEES INTEFINATIONAL UNION, AFI.-CIO] CLC 1001 SEVENTEENTH STREET, BAKERSFIEED, CA 93301 . . PHONE: 805 325-7487 FAX: 805 325-7814 MEMBERS: 800.570-5700 MID YALLEY OFFICE? 512 N..IRWIN STREET, #B, HANFORD, CA 93230 PHONE 209 582-3463 FAX 209 582-3510 ' AugUst,'26; 1997 ' · '- ~ ..... _, - - , 4VIL 'Alan Tandy? 'City Manager - -~" -' City ofBakersfi~!d'- -' !.50! T'_rux_tu_n_ Avenue '~ - ~-;-~ ..... -__--'-,-,,,..~,,..,~,.~,,~,,.,.-~-./-,. :,..,o.v,. .-~ - =- ~- '.~ -:~':- ~-.--~ - - . Dear.Alan: ' - - - _ _As the fine.print below tells' you, CCAPE.. 'is the result of a merger.betWeen the,Kern County Public Employees Association and the California League Of Cities Employees - Associationl As Of August 1, 1997 these two Locals Of 'the-Service Employees . internfitional' Union merged to form the largest local-union in California's central valley. We now;rePresent.:three Counties; Kern; K!ngs and Tu]are, twelve cities' from Bakersfield ' to Coalinga, three' school districtS,-and, a nUmber of other special govemmer/tal districts' providing Water, clean air, hospitals,and cemeteries .... ' i""Our_m6mbers, some 5,100 strong,., fix roads; control inmate populatiOns and provide · - -medical.carel. They take care' of parks, libraries and museums and provide the .support as'Sistance that is'so vi~al to getting all of those jobs done. -' ' . -' We are. very proud Of our members and. our new umon and we just wanted tO tell you about it. . ' -- .- Chuck Waide .Empl0ye¢ Relations- Supervisor .' - . xc Bakersfield City Department Heads "' - -' -.-'.; 5. . : . . . ii -. . . ~.~ BUd et.Brief- ._.~,_,~ ........... . ,_ .. . .... Mai Feature of the ~, --- -.': .... ~ -- . or s -.~,..... , ~... , 1997.California. Budget. . -- 18, 1997 the Go'vern°~ signed the Budget'ACt. In.this: report we"high~ . ' .... light'the majorfeatures ofthe budget. PaCkage: I: Budget,OVerview ' '* 2.. -"'" II. Health and Welfare ............... i,..2 ....... ;. ......... -4 - . '" ' III, Proposition' 98 Education ..L..i:.:.~:.'~i.."~;.!.... 8 ' .-..- . IV. Higher EducatiOn,.., .... i ........ :.... .... ,....: ..... ~: .... 10 -~ V. Judiciaryand Criminal Justice' ' ' 1'2. ..-. · ~' VI jor Provisions..~...,.,,,: .... ;~ ....... ;..,i4 ' Appendix i: .Trailer Legislation -' Legislati~/eAnalyst's office ' AugUst 21,r1997 -'-". . BUdget Overview . :. . . - - Sa-umm-ry.' ' : " · ' ' The 1997-98 Bo~get. Act 'signed by the lovernor on 1997-98 Estimated General Fund Con{~tion. , - 'August 18, 1997, tog~the, r with relate0 implementing (Dollars ih Millions) legislation ("trailer bills"), comprisea budget package that '. ' I-'ercent '-~ authorizes total state sPending of $67.'2 billion. This total 1996-97 i997-98a Change spending includes $52.8 billiOn'from the G~neral Fund ..... , . . - - . (ani8 perceni increase from 1996-97)andS14.4 bil!ion Prior-yearba[ance . .$564 $859- from .special funds.(a 6~1 percent increase). As indicated . ' ' . in FigUre~l, the General Fubd budget includes a year-end' Revenues and transfers -: 49,205 - 52,531 6.8%- . 'reserve Of $.112' million: . ' T~tal resources available $49,769 .~$53;390 .. Before~signing ihe 'b~udget, the' Governor Used-his Expenditures $48,910 $51,599. 5.5% line-item .veto 'authority to delete $314 million in appro- PERS repayment '-- 1,280 pr, iati0ns adopted by the Legislature. The Governor indi- ' ' - cated that about $203 million of these cuts: were' tempo¢ Total expenditu'ros $41t,910 .$52,827 8.0% - rary~ in that they could lie restored la~er upon e~actment Ending fun~'balance $859 ' $563 - ~ I .of legislation which meets, his requirements.invo, lving a Other dbligations $451 ".$451 ' mandatorg educational testing program for all California -- I pupils in grades 2 throUgh 11. The expenditure totals in Rese_~e . . ._. '$408 $112 . . . - Figure I assame~'restoration of these $203 million of a ' " · ' Of the $203 million- in funds vetoed and set asid0 by the . . temporary cuts, If not restored, these funds would never- Governor. $197 million was from tlie General-Fund. The expenditure numbers for ' 997-98 include these~General 'theless be set aside-for-Proposition 98 purposes. ~ Fund set-asides. The ~1997-98 BudgetAct inc udes significant increases in ................ ' .......................................... education :spending ~n.d a major reform, to the state's Following the.Supreme Court's PERS decis, ion~ it b~came weifare program. In other areas, the budget includes clear that it would be difficult to fund-various legislative and ' relatively few new initiatives and fa!dy limited changes to executive augmentations and make the PERS.repayment program fundin~ -.This is due mainly tO the decision to unless it could be spread over seVeral.years. After several - . . . :repay a substantial deferred 'obligation tO the Public weeks.of negotiations, failed t0 produCe agreements,:,the ' Emplbyees'- Retirement- System (PERS) :in "1.997,98. Governor directed that the full $!.2 billion principal amount - be immediately transferred t0 CERS. The PERS Repayment~$1.2 Billion. In late May, the ~ ~. . California Supreme Court refused t6 hear an appeal of The' PERS ~repayment rem0ved.virtually all of the-discro-. - lower 'court- rulings which 'had declared unconstitu- tionary funds that had been aVailable in the nomPropo- - tional the General..Fu'nd% deferral of state-c0n'tribm siti6n 98 portionof the b.udget and effectively required 'tions to the retirement fund in the early '~990s. As a the Budget ConferenCe Commiftee to eliminate most of result,, the state: was ordered'to repay $1.2 billion in the spending augmentations.c0n~ideredinthe bu~ge!'. p.rincipal, plu~ intereSL . As a result, the'non-Pro poSition 98 portion of the bUdget . . . - is relatively tight, containing limited augme'ntations. 'Legislat!.veAnalyst'soffice--'-.. .'~ Page 2' Major FeatUres of 1997-98 Budget LOcal Governme'nt.The budget ~continues the,Citizen's ;. ' ' ' ' ' . .Option for Public Safety program~.($!O0 millioh). It also Taxes-'Thebudget includes, no ;:hanges to state taxlaw. ..reducesthe:state's"take-out" frem the disproportionate · ' '" Th-e Legis!aturerejectedthe 10 percent ph.ased reduction share hospital payments, 'thereby increasing Co~unty 're--' ~-o'corporate tax-rates included in the Governor'sodginal - -sources by$75 million. Following the PERS repayment, : budget: proposal, as Well his July.proposal for. a phased the Legis!ature eliminated the shift Of property taxes from - 10 percent reduction in pei'sonal income tax rates: :the state.backto Io~al governments (propbsed'at$100 mil- '- -i - .' ... lion by the Governor and at $280 million bylthe AsSemblY). K-.12.Education. Healthy re~,enue growth, coupled With It also eliminated $50 rfiillion .that. had been proposed by. -' - oth~ factors .affecting Proposition 98 spendihg, led to. the Governor to caPitali~'e th'(~ infrastructure bank. '" '' ' ' ' '" ' . major'inc~:eases in K-:I4' education, funding :in. both ' . ....... ~ ,. 1996-97-and 1997-98.'The budget Uses these gains to othe~Programs. The,budge{ e~tends the suspensi0n of ' ' expand the class'size reduction program to a fourth [j[ade' the renters'-tax credit f0r one additi0nal.yeai' (the Cover- and significantly increases local' revenue limit funding, nor had PrOPosed permanen.t, elimination of the credit). - · -. - .' The budget contains no general employee..sala'ry in~ ...... Higher EducatiOn.. The budget includes significant'fund- crease. ..... . -. lng increases for the Uni~emity- of-California; California :..State .university, -and California Community-'. Colleges,- . 'GOvernOr's'Vetoes 'with no student, fee increases. '.: . . . .Before signing the budget, the Goyern0r Used his line item .Welfare 'Reform: The"budget funds, al' major .-welfar, e vetoauthority to eliminate $314 million from the spending reform Progr. am ,--CalWORKs (California-Work Oppor-' plan,-including $298 million from the' Ger~eral Fund' and 'tunity and 'Responsibility to Kids Program): It includes' $16milli0n fro. m spec!al and federal funds. .. 'time limits on aid for adults, participation requirements . .. .- , - . foradults, expanded child care and job.training services, Veto Set Asides. About $203 million' of.the vetoes a'r'e "- and various .county fiscal incentives. - - fUnds which have'been "set asideS' by the Governor for - . restOration upon enactment Of legislation which'satisfies ~ Other Health and' Welfare' Provisions.. The. budget his requirements for a mandatory te,sting program 'in - . rejects the Govemor!s proposal to make permanent K:12 education. Of the'set:a:sides; about'S197 million'is the4.9 percent Supple, mental Security. Income/State Proposition 98.General Fund monies, with the remain- · .. :... Supplementary Pr. ogram (SSI/SSP) statewide grant de~ for non-Proposition. 98. General.Fund~ special funds reductioh -and instead restores the-grant on Novem- ' and federal funds. "' :ber .1, 1.997. The budget extends-the 'previ0, Usly en- - acted 4'~9 percent Aid to .Families.. with Dependent Other Vetoes. The majorityof theremainingvetoes are in Children (AFDC) gra,nt reduction t.h'rough, October. health and welfare and community colleges... 1998, an~l suspe.n'ds both AFDC ~.nd. SSI/SSP cost?of- living adjustments for an additional year. " · 'The Governdr-vetoed$68 million from health and · - · welfare. This incldded $30 million in legis!ative aug- . Regarding Uedi-Cal~ the budget'f~nds pi'enatal services:. . mentati0nsfor!n'digent health~:.are'programs,$5 mil-' ' for illegal immigrants until. OctOber:l, 1997.. Tlie Cover- -lion for. citizenship se .rvices to legal immigrants, ' nor vetoed.budget language to continue the program. $17' million in SSI/SSp ~tate-only benefits for aged. . -. ': legal noncitizens who are not covered by federal_ ' Corrections. -The budget 'essentially' funds inmate law, and $8 million in SSI/SSPstate.-0nly 15enefits for " .. caseload, contains no money for new Prisons an'd pro- certain children. ' ' ' -rides .few new initia~tiv&s. In addition, the 'budget.as- - . .....: . .-- ' ' sumes $94 million more in'federal fur~ds than the amount ·. About $23 million is.from community colleges,, in-. ' ' ._ included in the Govern0~:'s'.budget. to' offset the state's cluding$9_milliohforapp0rtionmentsand$5-million'- . costs of supervising undocumented felons. . for economic development. ~ ...... · - - '. __ '_ . '"' . . .Prepared.by the Economms and : ~ ' Fiscal Forecasting section..-~.(916) 324-4~42 '" ' Legislative Analyst's'Office "'Page 3 Health and Welfare Health and Welfare.. . 'Medi-Cal Program ., " General Fund .support for health a~ndw~!fare programs in Reduce. State "Takeout" From Disproportionate Share . ' 1997-98totals $1'4.9 bil!ion,, an increase of slightly less HOspital Payments, Th.e buciget includes a $75m. illion than one .percent over the prior year. General'Fund augmentation in the Medi-Cal Program to -.- . '. ~ . .,.. .. baCkfill for a reduction in the state '~takeout" from dispro~ -- Figute 1. describes the major General Fund changes portionate share hospital (DSH) contributions made by. enactedinthe ?997-98BUdget'Actandrelatedlegislat!.on. public hospitals operated~by. . counties,... . .the University of - ' ' . California, and local hospitaldistricts. The budget action reduces the state "takeout"., .Which is used to offset a .. . -~ portion of the General Fund cost o'f the MedbCal Pro- : Health and Welfare Programs - ~. :. _ ". gram, from'S229.8 million.to $!54.8' mi.llion in 1997-98. Major.1997-98 Policy Changes--General Fund - -. ' The budget, as passed by the Legislature,also expressed (In Millions) Change From intent to reduce the ~state '~takeout" by an additional Program/Issue .1 .-. . - Prior Law- $25 million in 1998-99~ This language wa.s subsequently" vetoed by the Governor,. ' ' Prenatal services forillegai immigrants .$63;7a The budget actionprimarilybenefits counties that operate M~dicare/Medi-Cal cros. s'over payment limit ' -94.0 . county, hospitals, which provide most of the DSH trans: Dispropo~ti0nate share hospitals 75.0 fers. Absent thebudget action these counties would.have Public Health. "to increase their DSH contributions by about$50 million Pdmary care programs . '$5.0' to offset the loss of contributions from FreSno and several AFDC/TANF . ' ' . . .. smaller counties that' recently Closed ~their county hospi- · Welfare reform t -' .' .tals. The remaining benefit ofabout $25 million will enable (CaiWORKsb and relaied programs) $217'1c ' counties to reduce their contributions or tb recei~/e more SSI/SSP - '. " ' DSH funds ...... . - ' Continue SusPension of cost-oFliving adjustment for.o, ne,year -$27:4 Medicarelfl/ledi-Cal"'Crossove~" Payment Limits. The Reject continuation.of statewide"4.9 percent : recentlyenacted federal budget legislation allows Califor- - . · - grant reduction ~'--d State-0nly program'for aged legal noncitizens '. ' nia to reinstate crossover paymeo, t limits, for An e§t. im'a:ted Food Stamps - ' General Fund Savings of $94 mill~on in 1997-98, assure-. :- State-only program for legal noncitiz~ns-- ' lng implementation by September 1, 1997. These pay- children and eiderly . .$36.0 ,~ ment limits apply to dual beneficiaries-L-per.sons who - qualify for' benefits Under both the Medi-Cal Program and aBudget includes about $21 million which would fund the program for the first three months of the fiscal year. Existing state law the federal. MediCare Program. authorizes th~ program, but federal~welfare reform legislation of ,1996 requires alnew state law to continue the program. The - bGbvernqr yet?ed bbdget language to continue the program.. Currently, allowable Medica~e charges for a service often Califorriia Work Opportunity ahd~Responsibility to Kids program. :' ' .dln?ludes $111 m~lhon,~n'Proposl?on 98,funds. , . . exceed Medi-Cal rates. Under the. cro~sm)er limits, how- ' The Governor. vetoed $17 million provided by the Legislature. ever, Medi-Cal will only pay deductibles and copayments .... -" for Medicare co~ered services to the extent necessary to :'Legislative Analyst's' Office ' ' .page4 "meet .the Medi-Cal payment.rate, and.Medicare providers , (CalWORKs) program and creates-and modifies other must accept the Medi-Cal 'rates 'as pa. yment in full. The related programs. This act. inconjunction With budget " federal Courts Overturned California's' existing crossover legislation,-results in.. a 'state cost of $217 .million in -' limits' in 1996,' The .federal budget legislation enables the~: 1997-98,.compared'to prior law. This includes $111 mil.- State'to reinstatethe limits.. "' -. ' ~ lion from the. Proposition .98 allocation for schools and '- . .' '- ....' ... "... ' :.' ._ ' '" ' ' ' ""-' ' .- c0mmunity, cblleges.~ (Wenotethat because Of declin-' Continuation of Prenatal. Ca're.f°r Illegal, Immigrant. lng .caseloads; the budget app¢opria.tion for the Aid to -- Women.The budget I:Jill,'.as.passed by.the Legislature,* Families With Dependent. Children/CalWORKs Pro- ''' authoiized, the contir~uation' of prenatal, benefits for gram is less than estimated expenditures'for 1996-97.) Ilegal. immigrantsand*prOvided $23 million to partially Figure2 (page 6).provideS. detail on this'fiscal impact - '- fund th0~ecOstsin 1997-98. The Governor vetoedthe and Figure 3 (page7) describesthe major-features.o_f language 'auti~0rizing ;theprog~am and reduce'd the AB 1542', ' funding bY~$.i.7 million.'C0nsequently, this .leaves . " - :$21 million for the.program, v~hi*ch he i.ndicat~d Would ' ' Supplemental secUritYlncome/State. terminat~ October i, 1'997. 'Supplementary.* Program -- - · - . Public Health- . . . _ Giant Payments. Pursuant.tO current, law, the'budget · rejected the Governor's proposal to'make.Permanent the Primary care Expansion. The budget 'as passed by 4.9 percent statewide grant' reduCtion.enaCted in 1995. tl~e Legislature, allocated$30 million from.the General The budget legislation, hOwever,-extendsthe suspensioh. 'Fund to exPand, primary, care services in three PrO- of the. statutory cOst-of-living adjustment for one year,... . grams: the* Ear yAc.cess to ..PrimarY care p~ogram resulting in'General Fund savings of $27 million. ($'7 .rhilli0n)~. the Ru'ral Health'Clinics grant prOgram ($6.5 milli(~n), and'the California Healthcare for ElderlYNoncitizens. Federalwelfarereform,as'amended .... . Ihdigents Pr°gram ($1.6.5 million).' In the budget delib- by the Balanced Budget Actor1997, makes'elderly legal .'orations,-funds for these expansions were redirected non(~itizens, who.were in' the united States prior to Au- from a redudtiOn-in .the budget for Medi-Cal prenata. I. . gUst 22, 1996 but not yet mCeiving'aid,'ineligible for the c~Jre services, for illegal immigrants. Subsequently,.the -. Supplemental Security Income/State Supplementary Pro- Governor vetoed these fu-nds..The budget"includes a gram; Thebudget,as passed bythe Legislature, provided ' "~ $3.m'illi~'n Geheral Fund 'augmentation'for. the Sea-·' state,only funded, benefits .for such legal nonciti:~ens,. : sonal Agricultural and' Migrant Worker Clinics gran~ resulting ina General Fund cost of $1'7.million in 1997-98..- progra.m, and a $2 million General Fund augmentation 'Subsequentiy,-the-Go~/ernor vetoed these funds. ' .for. the Ru~*al Hea thClinics grant program.. '. Food Stamps Program' ' ' Aid to Families with Dependent Children/ Temporary, ASsistance for- -.-- - State-Onl~Program for~Children andEIderlyNOnciti- Needy Families Program . . Zens. Federal welfare reform' makes legal.noncitizens (with certain exceptions) ineli.gi hie for food'Stamps ben- .... . . - . efits. The budget legislation provideS state-only funded '. .Welfare Reform. Assembly Bi!l 1542. (DuchenY,. foodstampbeneftsfor'noncitiz~nsundertheageof18:or ~ Ashburn, ThomPson,.and Maddy! Creates the Califor- over the age.of 64. Th s temporary_program commences nia Work- OPpo~,tunity~ and- ResPonsibility to Kids on Septembe~ 1, 1997. and sure,ets on July 1~ 2000. ~,'.- . ' ........ . .. ~ Prepared by tt~e Health ~nd Social Services' ..... .- ... 'Se. ction~-(916).:445-6061 .: . : ~ .~ .: -. ~. . . . . . . _ , i' -.. Legislative Analyst,s Office . .. ' - _ Page 5 _- CalWORKsa [AssemblyBill'"1542) and'Related Programs ..... FisCal Summary--State Funds. "~. :'.. ." ' (In'Milli0ns) .. ~ ". -.. . Change. from Pdor Law "* ' '" * ' ' , - .... Non-Proposition 98 Proposition 98 DEPARTMENT OF SOCIAL' SERVICES (~SS) . ' Conform resource limits to Food Stamps .- $8,8 . -, -- " " "'" Etiminate'"look back" requirement for two-parent families ' 1.0 · ' ' . -' ' Modify treatment'of lump-sum income and recovery of overpayments - 1.9 .:---. · Services .... ~ ,- - ~ - - ':'.:- :' Welfa~re-to'-Work services (GAIN) $222,6r, -- · Mental health and Substance abuse 23.5 -T ' ' · Child care _ 106.4 ~. · · Child care capacity b~ilding ... 8,0 -- . - : Child care capacity building (th Department of Education) 8.0b- -- ..- · ,. ,; . Micr.oenterprise'projects -- _ J0,b identification program 6.7 -- Cqunty Administration - . -- Retraining and'retooling $40.6 .-- '- .. .. County fiscaHncentives (county savings) 1913 - .,'Other 6.0 -- · Subtotals--DSS costs - $452.8 -- ' .- Grants and County Administration Continue 4.9 p,ement grant re, duction -$t35.2 -- Suspend cost-of-living adjustment -.- -71.0 -- Eliminate Beno case grant red~ction ex~mp!ions '-35.0 -- - $225 and 50 p~rcentearned ir~come disregard -82.2. , ' - Eliminate child care disregard _ . -20~4 - . -- Exits due to employment -3.2 . -- -- Increased earnings -8.1 -- FailUre to participate (sanctions) -9.7. -- -- · GAIN c(~ncilia~ion (county administration) -9,9' -- " ' ' - Pat~rnity'establis.hment · -4.0 - .~. Subt0tals--BSS savings -. -$378,7 -- - Net Impact--DSS '$74,1 -- Work-study and child care_ ....... ~---: '"'i · - Job_ --olacement/coordination/cUrriculum developmeni -- -' 15.5 ..Job development -- 5.0? . DEPARTMENT OF EDUCATION ' Adult education .... $25.0 Child care -- .. 16.0 E~MPLOyMEi~'DEVELoPMB~n- DEPARi:MENT "'- ........ '- Em~i0~;mer~{~i~ining P~neiP~'(~gr~"-~--:' .....'; ' "$26.0 ........... TRADE AND COMMERCE ',A, GENCY ' Job creation $5.0 DEPARTMENT OF HOUSING AND COMMUNITY .DEVELOPMENT. Child care loan funds - $7.0 --- Totals (all departments) ' $106,! $111;0 Total (all state funds) - $217,1 ' ;'b Cahforn~a Work Opportumty and Respons~bd~ty to K~ds program. ', The Govern'or vetoed $2.5 milli(Jn provided by tl~e-Legislaturel'. · ' . . :-.. - The Legislature appropriated $10 md on The Governor reduced this amount to $5~million. -- - _ Legislative Analyst's office. .. · - Page'6 ... CalWORKsa (As:semblY'Bill 154.2): .,. , . :-- --. -: -- ' ' Major Features ·. .' -. . . , .. . - · · Eligibility An adult recipient in a two-parent family must "_Look Back" Provision. Elim nates the. requ rement participate for 35 hours per week. "that two-parent-families applying for assistance have Exemptions. Disabled, elderly, specified caretaker' · -' - a prior Connection to the labor fome. relatives, caretaker of disabled person, teen parent in school, parent with child six months or under (with . Resource Limits. Conforms resoume limits to the county discretion to change to 3,12 months). Tom- . amounts permitted under federal law for the FOod porary deferral for "gbod cause." ' ~. Stamps program, (This increases-the asset limit for ; aUtomobiles, as applied to appli.cants, from $1,500 to Sanctions. The sanction for.failure.to participate in .,. $4,650.) work activities orcommunity service is removal of the adult portion of the grant. Diversion Program. Permits counties to provide .-, . eligible applicant families with up to three months of .. aid payments in the fbrm of a lump sum, for purposes A, Time Limits of providing temporary assistance so that the family Welfare-to~WorkServices. New applicants are lim- : .. .does not enter-the program, ited fo 18 months of job training/education services. Existing recipients are limited to 24 months. Counties · Grants may extend the 18 month limit by six months if the · · extension is likely to lead to nonsubsidized employ- Maximum Grants. Continues4.9 percentstatewide ment or if no jobs are available. Able-bodied adults grant reduction and suspension of the statutory cost- must commence community service employment (work of-living adjustment through October 31, 1998. for grant) at the endof these time limits, if the county Beno Exemptions. Eliminates Bono court casi~ grant certifies that a nonsubsidized job is not available. - reduction exemptions (applicable to certain recipi- Five- Year Time Limit/Safety Net. Afterfivecumula- ents not able to work), tive years on aid, the amount of the grant is reduced Income Disregards. Replaces. the existing "fill the by the portion for the adult. The.child's portion of the : . .. - gap"* and,"$3Oand one-third disregard" with a $225 grant would be continued,~but counties have the .plus 50 pement earned income disregard, whereby option of providing this aid in-the form of cash or -.. the.first $225 of earnings plus 50 percent of each vouchers. Certain recipients are exempt, including additional dollar of earnings are disregarded'in deter- specified caretaker relatives and disabled persons. mining the family's' grant. · 'County Administration · Services County Training. Provides funding for county train- ' Welfare-to. Work Activities; Specifies the following lng and "retooling." sequence Of services: job search; assessment; wel. County Fiscal Incentives. Provides 100 percent of '-' fare-to-work activities (education and training); and certain grant savings to the counties. Specifically, . community service employment, allocates 75 percent of the state's' grant savings Child Care. Creates a new delivery system, adminis- resulting from (1) program exits due to employment tered by county welfare del~artments and the state lasting six months, (2) increased earnings and Department bf Education.' ' (3) diversion of applicants f~om the program, The remaining 25 percent of grant savings Shall be allo- /~ Employment Retention. Authorizes up to one year cated to counties that have not achieved savings but · of case management'and other job retention Services have performed in a manner "worthy of recognition.' for persons leaving aid due to employment. Counties must use these savings in the CalWORKsa program unless expenditure of these funds is not needed to meet the federal TANP maintenance-of- .... · Participat. ion Requirements effort requirement. Weekly Hours. Adults in single-parent families . must participate in work or approved education, or Fraud Savings; Rea!locates 25 percentofthestate's training activities for 20 hours per week effective savings from fraud detection activities to the counties. January t, .1998, 26 hours effective July 1, ..1998, a california Work Opportunity and Responsibility to Kids and32 hours effective July 1.1999 and thereafter, b program. ' Temporary Assistance for. N~e ,d~y Families. _ Legislative Analyst's Office. . " '~ 'Page 7 - .... Proposition'98 '-Education.. _ . In'this sectionl we describe the major, features of ihe &' Budget Year--1997-98. Overall K~12 funding of budget.PaCkage i~as it relates to the~ PropOsition. 98 mini- - . _$5,108 per pupil in !997~98, Which .represents .an mumf.undingguarantee and K-12 SChools. increase.of $335, or 7 percent, above the i996,97 -~ Budget Act. These figures :exclude amounts that K,12 prOposition_98PrOvisions ' '~ were vetoed bytheGovern0r in connection with the . . unresolved state assessment program issues (see The K2t 2 portion of the"ProP0sition 98 budget PaCkage 'below). Restoration of those vetoes would increase includes: - · ' the 1997-98 per-pupil total.to~$5;144: : · '.'Prior-Y*ar--1~-~7;ProvidesoverallK-12fanding Figur0 I summarizes for 1996-97 and 1997-98 the effect o[ $4,004 pot p0pil [or 1006~07, or.$150 moro pot o[ tho bud[lot paeka~o on K-12 schools, community pupil than anticipated in the 1996-97B~dgetAct.. Colleges, and other sPecified age:ncies. Proposition 98 · ' ' funding for K~1'2 schools totals $28.7 million in 1997-98. ' ...... ': K-12 Program Impacts K-12. Education Budget Summary. · .. -.. ..... 1996-97 and 1997-98 ' · "' 1996-97 and Prior Years Settie2Up'Funding. Proposi- · [ tion 98 minimum-funding levels are' determined by .oneof (Dollars-in Billions) . ' four specified formtJl~s, each using a set' of' specified fac- 1996-97 1996-97 1997-98 - -' ' BUdget Act -'Revised Budget Act - tots. Because the factors change during the year, the mini,' ' - _ ........ :~.d ..... i_ ._~ ........... 'iiI mumfundingguarante~underProposition 98 also changes. - - ' ' ' ' ~' '-- · ' ' ...... [ ~ Any additional amounf needed tO satiSfy the_guarantee iS K-12.Proposition 98 ' 3eneral Fund~ ' $17~2~ .' $18.1 $19.7 . ! Local prope.rty.taxe's . 8.6 ~ . 8.7 9.0' I I referred to as Proposition 98 "SO~Io-up'' fu.nding. · AverageTOtaIS'DailyK'l 2 . $25.9... $26.8 . $28.7 [ The budget contains approximately $1.4 billion.in settle-up, -Attendance (ADA) ,5;4.18,707 5,47,3,'882 5,6~'1,327I ~funds, Figure 2 displays' the major allocations of these .Amount per ADA $4,775 "$4,904 ' $~,'I08 '~1 monies. Pursuant. tO ChaPter 203, Statutes of 1996 - · (AB'3497, Richter)'the budget. ProVides $522 milli°n for California Community Colleges' I'~! revenue limit equalization and deficit reduction, With half the. General Fund.- $1.6 ' $1.7 '$1;9 fund's going to each purpo$0.' The remaining funds are _oca!.Property taxes' 1.4 1.4 1.4 allocated for a variety of one-time purPoses. FOr example, Totals; Comm; Colleges · $3.0 - $3.1' ~' $3.3. $159 miilion of. the funds are allocated for facilities for class Other a[~encies $0.1 $.0A $0.1 . :'. Size reduction:These funds Will phyfor fa~:ilities requested Loan repayment ' ~$0~2 $0:2' '$0:2 for the 1996-97school year thatwere not'previ0usly funded' Proposition 98 The budget also.provides one-time funds for deferred General Fund ~: $19.1. ' $20~1- - $22.1a ' Local.property taxes 10.0 10;i ' 10.4 ~ maintenance, eduCational technology (digital high-school), and creation of new child care facilities. Totals, Proposition 98 $29~1 $30.2a - $32.5a · Totals include amo.unts.vetoed by the Governor ($14.9'million o~. 1996-97 funds and $201 million n 1997-98 funds) - ' i 1997-98 BaselinelncreaSes. Compared tothe ;1996-97 -' ' " ' ' - ' i' Budget ACt, K-12 Prop'osition 98 fdnding inCreased by. ....... ' .................... ----7' :-' -. ................... :'~ ~ -~'~ $3 billion..in 1997-98..Figure 3.,disp!ays the major K-12 ~'' I'-' 'LegislatiVe, . Analyst's.....0ffice . ,'. _ . . . . . . ' Page's ' $76.7 million for special ~eduCation reform, provid- . - ' _ lng that a reformbill.is enacted durir~g the 1997:98 ' K-12 Education. - session.. *The budget also includes funds for other Major Actions Regarding PriOr-Year Fuhds programs, including child care, educational tech (in Millions) .: . . nol0gy, staff deve opment, and assessment! PurpOse, ."- Amount Governor's Vetoes.'As noted*in Figur. e .1, the Governor '- Revenu~ limit-:equalization*, vetoed $14.9 million of"settle-up'~ fundsand $201-million -. and'deficit ~eduction $522.0 Facilities for clas~'size.reducfio.n 159.0 Mandates 158.6 · . ,~. Deferred maintenance . .. 100.0 K-12 Education Major Actions Special education deficiency, 59.0 Regarding 1997,98 Funds Digital high schOol .~. - 50.0 .. -. Child care facilities - .25.0 (In Millions) . Adult education---welfare reform 25.0 Amount~ Proposition 98 appropriation~ 'for 1997-98. The budget COLAs $707.0a ' .~. allocates $1.4 billion to provide i.nflation, and. growth.ad- Growth in Student attendance" . 722.0a · -justments. Specifical y,'the budget includes about $722 mil- Expand class' size reduction 717.6 ~ · ' Equalization and deficit reduction 555.2- li0n to accommodate a projected 2.5 percent increase in Special education reform 76..7 the stUdent population and $707 million for a cost,of- Child develepment expansion ~ 64.0 li~,ing adjustment (2.65 percent) for K~12 programs. As. D gita[ high.school - - 50.0 Figure 3 also' i~idicates, $143mil!i0n in categorical pr0- Buyout of one staff developmentday~ ' 50~0 gram growth and inflation adjustments were vetoed pend: aTh'e budget act reflects vetoes totaling $143 million in categoriC:al program growth End COLAs.pending the reso ution of assessment lng the r~soluti~n'of.the assessment issues, issues. :The'budget.directs'the remaining $1 ~6 billion for .other ............ : ..................... ¥'--- ......... :- PUrposes,. including' new programs and.existing K--12 in 1997-98 Proposition 98 funds. 'While the Governor Categorical programs. The major discretionary increases typically useS his veto authority to delete specific appro-~ approved,in the budget are as follows: ' priati0ns, most of'the vetoed Proposition-98 funds have · been "set aside" pending the resolution of K-12 assess- · ;Class size Reduction. The budget~dedicateS about ment issues. These issues revolve around the Governor's $718 million for expansion of the blass size reduc- proposal .to eliminate the existing voluntary student as- -' 'tion program, bringing total funding for-the program sessment program and create a new mandatory program. to '$1.5 billion;The new funds ~are sufficient 'to in- ' ' crease per-pupil, funding in.tl~e program from$650 In hi's veto messages, the Governor identifies the_Vetoed to $800 .and expand the program from three to four funds that are included in the set-aside.'The Go~/ernor grades.' includes $10.2 million of the $14.9 million vetoed settle- .... - up fundS and $186 million of the $201 million vetoed . . &' .Equalization And Deficit Reduction. The budget: .1997-98 Proposition98 funds in his set-aside. The continues the equalization and deficit reductionfund9 $10.2 'million in settle-up fUhds:were appropriated for 14 "~ p¢ovided for~the 1996-97 year in.the base budge_t for new programs, many affecting only' one school district. ~ 1997-98. Because these, funds cannot be released Of the $186 million in 1997-98 funds set_ aside by ~the - '*. -'~ until the accounting for the 1996-97 .fiscal.year is Governor, $143 million _were for K-12 categorical pro- ' 'complete, districts will ~eceive both the $522'rnillion gram growth and COLA funding andS30 million fo~ the - - provided f0r1996-97 and the contiquation amount of · mandatory testing program. An additional $2.5 million in $555 million in the 1997,98 budget year.: K-12'au, gmentations were Set;aside (as well,as $4 million ,-, . . ' in federal Goals 2000 funds) .The Governor also set aside f'~ · other 1997-98 Initiatives. As Figure 3 illustrates, $10..6 million nCommun~tycollege. Proposition 98funds.~ -the budget contains 'a'numbe'r of.other program -.' ....... increases. ~l~e. I~Jdget incliJdes a-n additional ~.Prepared.bYt~eEducation Section"' '(916)-445-8641 I~' LegislativeAnalyst'sOffice · . ' ': Page 9- 'Higher ,Education Figure-1 shows the change in funding f.~'r each major ihcrease in undergraduate and graduate, student fees, -. 'segment. 0~ higher edacatiod for 1997,98 from selected although 'growth in the number of :UC students 'and the .... · - .fund sources. .... ' ' '- - ' :.. fourth year.of a four,year planned increase ip g~aduate · · ' professional program fees (inc!uding law, medicine, den- ' tistry,, and veterinary medicine) will generate an expected ~ - ' : ~ $t0.8 million in revenues for the UC in 1997-98.'- ' - - - Higher Education Budget SUffered'ry.. ~ :-"'___: i: .. . . .. - Selected.Funding Soumos . /'The Legislature approved a budget.plan for the UC that- Change from 199697 to 199~-98 ' includes: . . -- ' .... ' ' ,(Dollars in Millions). '~ ' .' - . .... - ... - · - ~ - Change'From -~. $82 million in emPloyee compensation to'provide a .: ":~ :-' ' '1997-98. 1996~97a ~2 percent'cost-ofTliving 'increase for.all :emplbyees.. .. ~.. Budget Amount. Percent (effective October 1, 1997), an additional 3 percent ~OniV~rsity of California . ' .............................. --~ -"parity" salary increase for faculty, and- merit salarY General Fund $2,18~.6 ' $121.2' 5.9%. increases for. eligible faculty and ~taff.'An additional Student fees 629~8 1 LOb .' 1:9 increase of $15 million will.cover the annualized costs ~Totals $~,811.4 -. $1~3.0. 5.0% ._ - o! salary increases from the prior year. " Calif0mia State Univ. ersity. G~neralFund $1 888~6 $108;2. 6.1.% '& 1511.8. million to .offset the impact of .inflatiOn on: Student fees. 609.4 5.7'~ '. 0.9 .goods and services. '.TotalS' $2,498.0 $113.9 . 4.8% .. ~ .- Califomia community Col'leges¢~. ' ' · $10.5 million _.t° increase, siudent enrollmi~nt by Gerietal Fund (Proposition 98) .' $1,88Z5 $286.8 ; 17.9°/° 1,500 (1 percent). - · .'.. Prope~ taxes ..... · 1,402.5 39.6 2.9 _ .. Unive Sity';" __ Student fees 176.4 "5.1b "-3.0 The California.. ' ' Totals ' "' $3,46'6.4'. $331.5. 10.6% Stat. r Student Aid Cbmmissk~n : The 1997-98 :Budget.Act, as Signed by the Governor, Oeneml'Fund . . _ '. $295.3_. ,' . $30.5 11.5%. provides $108 milliOn (6.!.percent.) more ri. Genera Fungi .a notmclude" ''" n '''funds." -' - . ~ Support for the California State-University. (CSU)~ in' bDOes o_e-t~me . ~ .. ~ · Increase due to more students and/or an increase in (~ertain' 1997-98 than in 1996-97. As with the-UC, the budget ~. professional program fees: c .. '- - . ~ assumes no genera~l increase in student fees. -Loca! ass~stan, ce (~nly.. ..- .... .. ~ .................... : ....................................................... The Legislature apProVed'a budget plan for the'CSU that includes: University.. .'... .°f'California. ' " ' " ' '.. ' " ':: The 1997-98 Budget Act, as sign. ed by 'the G~)vernor; &, $68milli0n to provide-a'4'percent po01 Of funds for . · empl0ye.e compensation increases. How thesefun;ds _ provides SJ 21 million (5.9 percent) mOre in General Fund- are used (for cost-of21iving adiUstments,.merit in- supped f0~ the.Univ.ersit9 Of California (UC) in 1997-98 creases, and parity adjustments) will be determined compared. ~ _. to.... 1. 996z97,.. ~ :.Thebudget assumes..' . . no gene'ral . .. :.th'rough. collective. · . bargainingS''' ," "" :- : ": Legisl'ativeAnalyst's Office ' "' ~- . . ' Page. 10 " ~,:$14.4.m!llion to'increase enrollment by 2;500.'stu- Settle.~lp ExpenditUres. The:budget' includes dents (.1~ percent). ' ..... $130 million in :s. ettle-up 'fuhding for. 1996-'97 and' prio~' years, for several' one-time activities. Of this amount, the Community Colleges-. · ..:. budget allocates' $98. million fo r'district'iblOck grants, -. which will-be allocated on a per-student basis. The budget ' Because of the majo~ increase§ in Proposition 98 funding` ~ also provides $20' million~for deferred-, maintenance and m 1996-97 and A 997-98, the 1997 budget PaCkage con- $10 million for (~hild Care .facilities7 - tains major funding increases for ~cqmmunity colleges. · · Specifically; General Fund_spending for community col.- 'Ve~°es,- The Governor vet.ced $24 million_ of'1'997~98 leges, totals almost $1;9-billion in th~ budget year.-This appropriations for the community' College.s. In his. veto re ~287miil!on, 0r.18percent,.increaseabove message, the GOvernor expressed his'willingness to thefuhdingleveiin'cludedinthe 1996-97BudgetAct,(The . restore $10.6 million of this-amOunt.-S8;.6 millibn for :1996-9.7. 'total 'implicit in. Figure' 1 does not i..nclude equalization and $2 million for office hours for part-time '.$.106 million of.one-time.funds made .available.to the faculty--uPon enactmer~t.0f'legislaiio·n meeting his crite- colleges due to the recent upward revision of the Propo- ria fot statewide testing of pupils' in· grades 2 through11. sition 98 guarantee"f0r that fiscal year.) The budget does 'The remaining vetoes included a $5.m illion reduction for .not cOntain andy increase in student fee levels: Fee rev- faculty and staff development and a $5 million reduction enues 'will increase'due.to enrollment growth." ' in a new job development program.- 1997-98 Expenditures. Figure ·2 illustrates the major~ Student Aid Commission -- - program increases .provided with the' additional funds in . .1997-98: .The budget includes $89-million for colleges to The budget appropriates $295 million from the General ~ncrease enrollment'by a statewide average of 3 percent: Fund.for the Student Aid Commission in 1997-98, which .Thebudget. also provides $65 million for various services · "is an-'inc~rea.se o,f $31 million, or 11!.5 percent. Of this for students, on welfare, expands 'th.e economic develop- amoant, $26 million.represents augme ntationst0:the Cal- ment prog ·(by $15'mitli0r0, and starts a jobdev, elop--- Grant program, which provides financial aid grants to ment program ($5 million), higher education students in California, These augmenta- · "- tions include funds to increase.the number of grants.by "· ' .3,916 students and tb increase the maximum grant amount -' -~ - for students attending private colleges 'and universities Major Community College. Indreases _ from $7,164. to' $8,184.~: 1997-98 General Fund · - -" (In. Millions) Prepared by the Education Section--(916) 445-8641 Puroose', "' * 'r - - ' Amount ' ' Enrollment g?owth · $89.2 COLA .... 91.0' ~ Welfare reform 65.0 InstruCtional equipment ' ' 25.0 ' ' Economic and job development' 20.0- ' i ' - Lease-purchase payme'nts 20.9 L.egi?lative Analyst's 'Office Page 11 .-,.' .-' "' Judiciary .and Criminal J. us'tice' .-: , -.,, . . '.~ ~:. :.',._~ ~.~ ~ . . : -. ~ ,- ., -. .- ' :The-1997-98 budget f0rjud cial and.criminal:justi.ce, pro- 'In -enacting the .1997-98 Budget Act,.~ the ,keflisla~dr~ . .. . grams totals $5:4.billion, 'includi~ig $4,7 I~illi0n .frOm 'the modified, the Governor's' plan substantially..Among the- - Gei~eral FUnd and' $663 million from stale special funds, changes, the Legislature capped the cOnt. ributions for all This is an increase of $308 million, or 6.1 .percent, over- counties and beginning in 1998-99,-provided that the _ 1996-97 exPenditures. This increas~ is-due to a number state .will. pay all costs fOr the 20 smallest counties. In . ..of factors,, including 'increases .in spending to aCcommo-- addition; the Legislature provided that., beginning in .. date the.projected grOwth in the state's' j~rison and.parole...1998-99, the state'would take over a larger share of ~:osts populations, de'cliningfede[aisupp0rt (and thus increased _ for the trial courts than proposed ,by tb'e Governor..-The ' state costs) to pay the costs of'incarcerating Undocu' .budget also assumes enactment of the Governor's pro: --mented .felof~s in state prison, and ,'increases in s{ate posal to increase c!vil filing fees. The changes to accom-- supportOfthe trial courts financed primarily by'increases plish the Legisla!ur..e~s actions are included .in in court filing fees. " . .. AB'233 (Escutia), which is still under; consideration: " , ~The amduntis about $266 milli0nbe10w the Govemor's The Governor alSo proposed .a. number' of poliby ... propose~l, budget. 'the principal reasons for the"(Jha~nge-initiatives relatedto the trial .courts, including se~/eral are legislative actions to-use.additional federa/~funds to statewide .jury system .imProvements ($14 million),, pay the` costs'.qf incarcerating Undocumented felon's,- enti'ancements for-trial court security systems ($8 mil- downward' revisions of estimates- o~ the prison' inmate lion)', and 40 new judgeships'to be established .in'the: . population? and the Legislat. ure'_s rejection of some policy.last qu'arte[ of 1997-98 ($4. million). These propdsals initiatives and augmentations proposed by the Governor. were rejected by the Legislature. TiialCourt Funding .. ' · Department..of CorreCtions , ,,- ... 'l'i3e budget act includes $1.6 bill on for. supp(~rt of the'trial The budget provides a .total pf $3;7 billion: ($3.6 billion courts in'1997-98. Qf this amount $890 milli0n'.would be from the General Fund and $43.4. million .fi'om -other from fu'nds transmitted by counties .to. the state which funds) for suppo.rtbf th'e.'CaliforniaDel~artment o~ Cor~ec- wouldl in,turn, be alloca, ted to the courts. This transa'ction lions (CDC). 'This represents anincreaseof about 4.1 per- ' Wouldbepart0falargerchangeinthewaYtrialcourtsare cent above the 1996-97 level and 'is primarily due. .supported: - ~.. --. projected increases in~ inmate and parole populations.:' -In JanuarY, the Governor proposed a m'ajor'consoliklatio, n The. budget, reflects a'totai General Fund reduction, of.' of funding resp0asibil {y for the :trial courts'.' at the 'state. about $90..1 million below the Governor'S budget request Je~/el.. Under the pr.o. posal, the largest counties wOuld pay for the CDC Support budget. The most significant changes_ ' .: for a'capped, portion Of'the costs Of the courts (roughly were a $31 million.unallocated reductio, n to dePartmenta, l' .. e.(tuivalent to the amount they paid in 1994-95) and the programs, a $20.7 million reduction to '. refleCt recent ' - state would provide all additional funding. Also~ the. state caseload trends; and a $16.2 million shift of bohd pay, would pay for-all costs of the 20 'smallest co. unties..'The ments from the General. :Fund to bond funds no longer Governor also proposed increases in trial Cog.rt' civil filing, needed for prison Construction .... - ' fe.e.s of $88 million to help finance the state's additional ' .costs.. .... ' The 1997~98BUdgetActi~cludesnofuhdsfor~lanningor" .... '.'.' . '. ' .... construction of new priSon.facilities: He,Never, the bill .. ' .LegiSlative Analyst's Offi_ce : .. ' -.' · .. Page-12 - .;' . sent to the 'Governor did'include $2:5 million to expan.d Option foe Public Safety, or COPS, pmgr-am). A budget. drug.¥reatment for inmates an~l other prov.isi0n~sintended . trailer bill~A'B 1584 (Prenter):--modifies'local govern- .to he p.s owfutum growth in the prison' populati0r{.' ' ment repotting requirements for the.progr.am and Speci- - ' - .... ,. :.· fies legislative !ntent that the program be funded again in . Federal FundS-fOrIncarCeration'and-' 1998-99. and .1999-0o. ' · - -. . . I. _ Felons' " ' ·In addition, the budget Providers $54.6 m~lli0n'in federal The 'budget ,assumes a total .of. $346 miili0n 'in: federal.- 'prison construction fundsto the Boardof Corrections for funds to' offset'.thb' state's costs 'of'supervising'undocu- allocation to Iocal'go_vernments to COnstruct, expand, or mented inmates'and wards in state prison and the'Depart-, modify local adult and'juvenilel detention facilities. The -. ment of the'Youth Authority in- 1997-98. This amount is, Governor had proposed $14;,9 million for this purpose in $94 million more than' the amount assumed in the"- ~his January budget. The. 1997-98 Budget Act, provides G(~vernor!s budget: use reSultsffom twO factors, that at least $20'million of the amount appropriated .be First Legislature chose to'shi__ft $54 million in federal used to build new or modify existing juvenile detention _ ~on construction grant fu nds.'to'offset i'ncarceration facilities in counties with p0pulationsof 200 000 or less. costs of undocumented felons, as permitted under federal law. Second, the budget assumes that the state will InitiativesandAugmentations. TheGove~norpropo. sed 'receives40 million morein federal funds in 1997-98 than a number of program' n t atives,,including a $20. m!!lion: the Governor assumed, consistent witl~ amounts corn program for "at-risk" juveniles and ~, $15 million Commu- tained in the federal appropriations'bill before'the. U.S. nity Law Enforcement And Recovery (CLEAR) Demon- House of stration Project; that were not included'in the enacted ' ...... budget. Similarly, the Legislature considered, a number of Department-of the YOuth Authority -. initiatives 'and augmentations, such as' expansion of the '~ - . ~. Juvenile Crime' Enforcement:and 'Accountability Chal- get ($323 million from the. len.ge Grant Program. Almost all of these initiativeS-and Gener Fund and $6.6 million from other funds) for augmentations.were ultimately rejected.as well. support· of the 'Youth Authority. The most significant - change:totheYoL~tl-{Auth0rity'sbudgetfromthepriorye~ar Restitution Fund Loan. The 'budget includes a loan ' ' was' the shift of ,< in State support-for county of $26 million of surplus funds from the'Restitution Fund, 3r0bation camps )m the General Fund to which supports the Board of Control's Victims of Crime federal Temporary Assistance for Needy Families (TAN F) Pro. gram, to the General Fund. The budget act provides- funds, that the funds be' repaid to the Restitution Fbnd by June 30, 199g.~ ; Other Programs '" for,Police, Sheriff, and Prosecution. The -.' budget act continues for a second yea¢ a 'program that ' ' )r~ovides$1'00 .millio;n to local police, sheriff~ and prosecu- P~epa)'ed by the Criminal. tion programs (sometimes 'refer're.d to as 'the Citizen's juStice Section--(916)·445'4660 : Legislative'Anal~/st's Office: '_: '., , ' - :Page 13- - other Maj°r ProVisions Local Government '" .' .... ' ~ &' $75 million from Proposition 204 bond" ,' . , '" '.. funds.for ' -' water supply and Bay-Delta restoration projects: ".The bijdget does not'include any significant new' fiscal -. .' ' ',. ~ relief fO'r local' goveinments, Pr0Posals.for Educational' · $24 million from PropOsition 204 funds for'local flood Revenue Augmentation Fund relief'included'in the May. control Projects and delta levee improvements':. gmented in,the.Assembly were removed -- .. ... final version of~.the budget. Funding for. the' - · $10 million for'cOastal prOgrams'including improv- s~fetY program was continued ing coastal aci:essand acquiring coastal lands, and for a.second 'year With the intent to guarantee future' $3 million, for restoration of salmon and steelhead · - - fundingfor atleast'twoadditionalyears, trout. , State' .Employee' Compensatio · $9 million toacqui~eland to'implement the Natu?al ...... Community Conservation Planning program, . .The budget provides no fund ng for' increased comp~n- - · ' ' sation for state em Both'houses had'provided .... The 1997 budget provides$804 million fOr en~ironme.nta $500 million. . ($250. milli0n,General Fund).. . for.a 5,percent - protection, programs, including, about $680 million. 'for, - 1997~98, but these funds were deleted later state environmental protection agencies and $124. million .... as one'of'several actions to balance.the'budget.., for.local assistance. Significant features include: - .':i +axRelief '. ' , ' ' ' .- -. - · ~, $212 million in estimated reimbursements to tank ' ' ' "- -~ .. ..... owners four C eanup of:leaking underground.~ta~nks-- The :Renters' Tax Credit: )rovides a refundable'tax Credit an increase' of. $90 million. 5f' $60 to single renters.and$1.20'to ma~'ried couplesand. headsof households. The cr~dit Was suspended in .1993,. · $57 million from -P?oposition 204 -bond funds :fqr~ 199A, 1995, 'and 1996. The credit-was, scheduled to be .local, wate~ quality projects. reinstated, this year but was. suspehded for an additional year,, saving $520 million:-' ... -. · $8'million for.the. Department of Toxic Substances "' Control t6 clean up illegal drug.labs. - Resources and-Environmental Protection" ' . - Motor Vehicle ACCOunt. . - '. The 1997budget provides a total.Of about $1.2 billion for - - resources programs. Significant features include;= The budget provides $179 million in new revenues, trans:-. fers, and expenditure redb~tions in Order to '610~e a · i $346-million for fire protection by. the California projected $129 million.fundin{] shortfall inthe Motor Ve- De Forestry and Fire Protection,'i~clOd- hicle Acc0unt'(MVA)' and tO provide for a- $50 million ~ng the 'continUed support .of. fire hand .crewS. at ' reserve .The'MVA is projected to'receive .$40 million in new - ' ' conservat on camps o 'in_conjuncti0n'with - revenue.from a $1' inci'ease in the vehicle' registra!ion f6e the Department'of COrrections,_an'd a total of about and increasesto other.fees; .The aC~:ount will also receive $20 million for'eme?ge.ncy firef ghting purposes. $97 million in t~'ansfers from 0ther.'~funds--$67 rn lion. · 'Legislative Analyst's Office . : -"."-i . Page14 from th(~ staie Highway Account and $30 miltion from the Some of the 'major ,proje'c~s and programs funded in "' Trans Plann!dg ¢~nd DeVelopment account. 1997-~)8 include: Finally, the Department.of MotorVehic es and the California · ' ' HighwayPatrolwitl-redUcethei.rexpenditure~fr.omtheMVA A Department0[Justic¢- .$20 milli0n for replacement by a total of $42 million by deferring capita 'out ay projects, . of two crime labor, atodes': Shifting .s .ofne.-expenses to othe.r sources, and making ministrative r~ductions. ... . . · Department of Genecb. f Servi(~es--$79 million-for " : seismic safety retrofits 0~ 28 state buildings: - ,- :Transportation . - ' * .'' · Department of Health Services/S3.9 milliOn..'to ·" The 1997 budget'provide~s about $1.-.8 billion for support of 'prepare construction documents for a $108 million. · the De' Of Transportation (C~ltrans). Not' in- public health.laboratoryandofficecomplexin Rich- cluded in:this amount-is an estimated-S119 million'from mond. the ~Seisrnic Retrofit Bond Act of 1996 (PropOsition 192) . for depa;rtmental.suppo~l costs related.to seismic retrofit-, · Department¢~f Mental Health $312 million to pre- of highway bddges an'8 toll bridges. Caltrans'. 1997 .su p- 'pare construction documents for a $33 million addi- po~t budget reflectsthe Legislature'ls decision tosubsti- tion to theAtascadero State Hospital. tutb state-staff for 619 personnel,year equivalents, of "' -. planned consulting engineer contracts in response to a · Universit~of California--s172 million foe 32 projects Califo'rnia Supreme Court decision, at nine campuses. .. · · . Thebudget also, provides' $1.9 billion for transportation · Califo~niaStateUn versity--$i3.8 millionfor35major capital outlaypr, ojects. This amount includes $157 million projects at"1'8 campuses, including $1 million to to restdre'damage caused by heavy storms in Decem- studythefeasibitityofconvertingtheformerCamarillo State Hospital into a new campus; ber 1996 andJanua, ry .1997. The .budget provides' $1 .~ billion-for a variety of local · Community Colleges~$_i58 million for 98·Projects assistance progr.ams, p~'imariiy a pass-through of federal at 49 districts (65 _ca'mpuses and 0ff-campus.cen- funds for ~ighWay and transit purposes and state fynds for ters), including initial funding for' two new off-cam- the State-LocaITransportation Partnership P~ogram. This' _ pus centers,~" ~ S32' mil on n federal funds to repair .. storm damage on'locai streets and roads. Local assis- _ tance to transit authorities inclbdes $85'million for operat- 1997-98 Capital OUtlay '~rograms ' mg (thrbugh the State ~Transit Assistance (In'Milli0nsl' Budget Future program) and $64 million for capital acqu s t on through - Amount Cost the Transit Capital Improvement program).. ~' ' .. ~ Legislative/Executive/Judicial $19.8 ' pital Outlay' state and Consumer Services .79.2 $!3.3 Transportation 3.5 .3.0' The-budge{ includes $754. million for capital outlay as' Resources 90.3 5.4 shown in Figure 1; About85 percent of this'.tdtal is from Health and Weifare ·. 18.8 '- 146,4 '. bonds ($639 million); with other funding from the Gene,ral Corrections 51.8 32.7: Fund' ($4Omilli(~n), various special funds~($48 m!llion), Higher Education 490.4 494.2. and.federal, funds ($26 'million)..Future appropriations of General Government 0.6 -- · .~ ~$695 million will'be needed to complete capital outlay Totals '$754;4 $695~0 ' 3rojects funded in the budget. Almost two-thirds' of total .............. capital Outlay fun. ding is for the three segments of higher . Prepared.by the.fo/loWing.sections: educat on ·The budget includes ho.funding to design and Business, Labor, and Capita/Outlay--(916) 322-8402 construct new state prisons. TransportatiOn ,~nd Resou'rces~--(916) 445-5921 ~ '" · ' State an'd Local Finance~(916) 445-6442 ~ - Legislative Analyst's Office .. - ' . ,, Page- 15 '-..'.. 997-98..Budget: Trailer LegiSlation' ":'" 'E ted-nat?- -.-. ;. ' Bill AuthOr... - ect - 'AB' 64a Baca _ ' Edueation:'rochnolo~ grants to high schools. ' ' ' ~ ' ; Escutia . Education: Class size reduction. '- '- ~ ' * - ' -AB i086. Mazzoni -. :' Education:' Second year of GOALS 2000 pro[Iram. ' .... -' ' · : -. AB Escutia 'Social Services: Various (SSI/SSP COLA, IHSS eligibility,~fo, ster-car~ - · . - ' group homera~es/.' ' . ...... ., . .', . - ' AB 1576 ' Busta'm'ante - Social. Services: Food ~tamps for le~lal immigrants. : ", -AB 1578 Migdo~ Education: Various (K-'J2, Gommunity'¢ollo~o$). Propositibn~98 .... . ' : .aonronriations, - AB-1579 Sir(~'m-aartin ' ' ' Education:'Staff Development BuyoL~t, Ionizer schOOl },ear: · - - AB 1582 ' Bowen" .Resources: various (Department of Parks and Recreation; California. ' - ._ Conservation Corps, Harbors-and Watercraft, Stan!ord Mansion .... · GovernOr's" '-' ~'nes~c]enceb' . · AB 1584 Pr'enter COPS Pm[tram ' AB 1586.. Wright, R. . - General Government:Various (Departments o[Gen~eral Sergices, . Consumer Affairs, Veterans Memorial, Health Plan Fees,- California Science Center). ' . ~ - . .-- · . AB 1589 Prin~le -: .. Local Government: Librar,f and Fire ERAF AB 1591: House. "" ' . Motor Vehicles: Vehicle registration and title transfer fees.- -' .AB 1592 Leonard "' Renters'TaxCredit: Suspension in 1~97. , ' AB'159~ Machado - Water Resources: American River Flood Pr01ection SB 271 Thompson- R~sources: Tidelands Oil Revenues Coastal Salmon, Steelhea. d, and Trout Restoration. - . .SB 391 Soils . -..-.Health: Public health, Medi-Cal, disproportionate sha~e hoSpiial, mental · . - - .Proposition 99 and developmental disabilities. ' .' SB 80~ o'connell Ei:lucation:'Expansion of classsize redu(Stion. " ' -- SB-959a~: Kopp Embr~enc~/Sen/ces Reor~an zat on.of.cia ms processing. ' '." .' SB-1095a' . L~kyer Education: Special services to high-risk students. ' ' :' -' S61320 Sher ' '. Envirdnmental Protection: Peer Revii~w at CalEPA boards ahd departments. vetoea · Bill Author___ '" - AB 783 ' Brown' Alcohol and Beverage c0ntroITrainin[i Fund. ' : SB 386 Peace- .. ' CorreCtions: Various (audits, internal affai~:s, deportation n0tificationi: .- aAt the :ime this analysis was Prepared, tt~e Governor had'not taken finhl action on thi~ measure. . . -. ~ ~-'~. ................................. ' ............ -= ........... .. ,~ ......... :.: ....... :~....~ ................................. . ...... .~ ................ " _ - ' :: permission 'is granted to~ __~,.nhotocofiv-this 'docu/nent as desired. · -:- ' ' For'informatic;n contact the Legislative. Analyst's Office State of California, 925 L Street, Suite 1000, Sacramento, CA 95814. . ' ' · - :- · · Reperts are'also a. vailatile on the LAO's We_rid Wide Web. page at http://www.lao.ca.g0y.'