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BUDGET UPDATE
From Aaron Read & Associates
July 9, 2008
The Joint Legislative Budget Conference Committee “completed” their work late last night with the Speaker and Pro Tem releasing their proposed billions in tax increases on businesses and high earners to help bridge California's budget shortfall. The budget has become such a leadership deal that the hearing was held at the Capitol with most of the legislators at home in their districts. The democrats had a caucus conference call last night at 9:30 after all the increases were made public and that is when the membership as a whole was given the details of their new proposal.
The Republicans have already responded with 'great disappointment' that the tax increases are being forced on the table. Assemblymember Roger Niello (R-Sacramento) said very clearly they would be rejected in the first floor vote (California is one of a handful of states that requires a two-thirds vote and he insists no Republicans, and they need seven—one Democrat is terribly ill and there is a six-vote difference between the parties—will vote for this proposal.)
The Senate Republican contact, Senator Dutton from Cucamonga, characterizes this as a setback.
Will there be a budget?
Well, the thinking that makes the most sense to us is that the urgency becomes critical on August 1 when California begins to run out of money and, as Juan Fernandez the former deputy treasurer says, the state will need a plan (budget) to get the best price on the money they need to borrow.
The Senate needs two Republicans to vote for a budget. We think they have them, although this will not be the iteration that is negotiated for their vote. The chest thumping in public and the tweaking in private has just begun.
We also believe that at least five Republicans in the Assembly have been identified to eventually vote for a budget with tax increases.
Key elements of what was restored:
- Restores $1.8 billion in health and human services the Governor cut. This includes restoring nearly $200 million in health care services to some of the state’s most vulnerable residents, the reimbursement rate for Medi-Cal providers and federal pass-through funds for the aged, blind and disabled.
- Provides $1.5 billion more for education than the Governor recommended.
- Restores $57 million in financial assistance for college students.
- Reduces corrections spending by $300 million with a reform package that helps reduce the prison population.
Key elements of the tax package:
- It reinstates the tax brackets on the wealthiest Californians by reinstating the 10% and 11% tax brackets. Revenue generated: $5.6 billion. California’s personal income tax rates ranges from 1 to 9.3 percent (for taxable income above about $93,000 for joint returns). An additional 1 percent rate applies to incomes above $1 million (that money supports mental health programs under Prop 63). Under this budget, this proposal imposes a new rate of 10 percent for taxpayers filing joint returns with taxable income above $321,000 and 11 percent for those with incomes above $642,000. This is similar to what Republican Gov. Pete Wilson did in the 1990s.
- It closes a corporate tax loophole for large corporations. Revenue generated: $1.1 billion. California allows companies to carry forward a portion of losses (called Net Operating Losses, or NOL) incurred in one year and use them as a deduction against earnings in subsequent years. These tax breaks are used primarily by large corporations, many of them in the manufacturing and finance area. Companies with more than $5 million in gross receipts account for just 13% of total businesses but 80% of the NOL deduction.During an earlier fiscal crisis, this loophole was suspended. When the law was reinstated, the percentage of losses eligible to be carried forward was increased from 50 percent to 100 percent. The carry-forward period was also expanded to 10 years. The FTB estimates the value of NOL carried forward exceeded $260 billion as of 2006. Our budget suspends the NOL for three years.
- It suspends a tax adjustment for upper-income Californians. Revenue generated: $815 million. In a year where the poor, elderly, and disabled aren’t getting cost-of-living increases for SSI/SSP and CalWORKS, we shouldn’t be adjusting all of the tax tables for everyone else. Suspension of “indexing” would result in a proportional increase for taxpayers with incomes of up to $97,000 (joint returns), and a flat increase thereafter. As an example, a taxpayer with taxable income of $50,000 would pay about $34 more while a taxpayer with income exceeding $97,000 would pay about $180 more.
- It rolls back a tax loophole for upper-income Californians. Revenue generated: $215 million. Since 1997, taxpayers have received a nonrefundable income tax exemption credit for each dependent—regardless of their income. In 2007 this credit was $294. The LAO recommended making the dependent tax credit the same dollar amount as the personal exemption credit for all taxpayers. That credit was $94 for single taxpayers and $188 for couples. Our proposal is a variation of the LAO recommendation. It would rollback the dependent credit for taxpayers with adjusted gross income (AGI) that exceeds $150,000. As a result, it would protect the credit for lower and middle-income households.
- It restores the franchise tax. Revenue generated: $470 million. Virtually all companies are required to pay some amount of corporation tax. The top rate is now 8.84 percent. Prior to 1997, it was 9.3 percent. Our proposal rolls back the 1997 tax cut, and restores the 9.3 percent rate.
- It steps up tax enforcement. Revenue generated: $1.5 billion. Modeled after successful tax amnesty efforts in the past, this proposal will collect taxes already owed to the State. Part of this revenue has been owed for years. Part will be an acceleration of revenues that would be paid in the future. This is one-time revenue.
The Conference Committee proposal will now be voted-on by both the Assembly and the Senate. While we are unsure of the timeline (likely to be announced sometime today), we expect a vote sooner rather then later.
The Speaker and the Pro Tem held a press conference today at 10:30 outlining their budget proposal. Each indicated that these increases are necessary to move California forward and balance the budget. Borrowing is not a solution, and in response to a question about revenue increases being a “line in the sand,” both said yes, “we will not balance the budget with cuts alone, so yes this is a line in the sand.”
Asked why the VLF tax reductions were not a part of the plan, Perata responded that it was Governor Schwarzenegger who did it, Governor Schwarzenegger will have to undo it.
Karen Bass said talks with their Republican counterparts (that have been ongoing) to discuss the proposal will begin tomorrow and, if they (Republicans) want to propose different “loophole closures” or increases instead of the ones proposed, that is what we are prepared to compromise on, not additional cuts.
KEY: S - Support; O - Oppose; W - Watch
AB 582 ( Evans) Adoption facilitators (Amended 06/16/2008)
Position: S
Existing law provides a comprehensive scheme regarding adoption regulation, and also provides for the regulation of adoption facilitators, as defined. Existing law also requires the State Department of Social Services to establish and adopt regulations for a statewide registration process for adoption facilitators. This bill would require the department to also establish and adopt regulations for a statewide enforcement process for adoption facilitators. The bill would also require the process to include a means for removing adoption facilitators from the adoption facilitator registry. This bill contains other related provisions and other existing laws.
Status: 06/16/2008-From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD.
Current Location: 06/16/2008-S JUD.
AB 863 ( Davis) Los Angeles County Superior Court employees. (Amended 06/25/2007)
Position: S
Existing law provides that each trial court may establish a salary range for each of its employee classifications, and considerations shall include, but are not limited to, local market conditions and other local compensation-related issues such as difficulty of recruitment or retention. This bill would require the Los Angeles County Superior Court to pay each employee in a bargaining unit represented by any specified employee organization an amount equivalent to the additional amount the employee would have received if the reclassification raise the employee received on October 1, 2005, had been retroactive to August 1, 2005. The bill would also provide that the Legislature urges the Los Angeles County Superior Court to act in a responsible manner and disburse the funds, which are currently held by the Administrative Office of the Courts, as directed for the purposes of paying the amounts prescribed in this act.
Status: 09/05/2007-To inactive file on motion of Assembly Member De Leon.
Current Location: 09/05/2007-A INACTIVE FILE
AB 1340 ( Jones) Guardians and conservators. (Amended 07/10/2008)
Position: W
Existing law provides for the creation of conservatorships and guardianships. Existing law permits any person entitled to petition for the appointment of a guardian or conservator to file a petition for the appointment of a temporary guardian or temporary conservator of the person or estate or both. Existing law requires that notice for the hearing on the appointment be given, as specified, at least 5 days before the hearing on the petition, unless the court for good cause otherwise orders. This bill would require that the notice for the hearing on the appointment of a temporary guardian or temporary conservator, as described above, be given at least 5 court days before the hearing. This bill contains other related provisions and other existing laws.
Status: 07/10/2008-Read third time, amended. To second reading.
Current Location: 07/10/2008-Read third time, amended. To second reading.
AB 1569 ( Mendoza) Court reporters: rough draft transcript. ( Amended 07/10/2008)
Position: ?
Existing law provides that the report of the official reporter or official reporter pro tempore of any court, as specified, when transcribed and certified as being a correct transcript of the testimony and proceedings in a case, is prima facie evidence of that testimony and proceedings. Existing law specifically provides that the report, when prepared as a rough draft transcript, shall not be certified and cannot be used, cited, or transcribed as the official certified transcript of the proceedings. Existing law also provides that the rough draft transcript may not be cited or used to rebut or contradict the official certified transcript and that the production of a rough draft transcript shall not be required. This bill would provide, until January 1, 2016, that the instant visual display of the testimony or proceedings, or both, shall not be certified and cannot be used, cited, or transcribed as the official certified transcript of the proceedings. The bill also would prohibit the citation or use of the instant visual display of the testimony or proceedings, or both, to rebut or contradict the official certified transcript of the proceedings.
Status: 07/14/2008-Read second time. To third reading.
Current Location: 07/14/2008-S THIRD READING
AB 1844 (Hernandez) Public employee benefits. (Amended 06/11/2008)
Position: ?
Existing law provides that it is a crime to make a knowingly false material statement or representation for the purpose of obtaining workers' compensation, or supporting or denying a workers' compensation claim. The Public Employees' Retirement Law, the Teachers' Retirement Law, and the County Employees Retirement Law of 1937 prescribe the rights, benefits, and duties of members of the retirement systems established by those laws. This bill would make it a crime for a person to make or present false material statements and representations in connection with those retirement systems' benefits and applications, as specified, or to aid or abet someone in this regard. The bill would also make it a crime for a person to knowingly accept, with the intent to keep for personal benefit, a payment from any of those retirement systems with the knowledge that he or she was not entitled to the benefit. The bill would provide that a violation of these provisions is punishable by up to one year in a county jail, or a fine, or both, and restitution, as specified. The bill would require any restitution order imposed to be satisfied before any criminal fine imposed may be collected, and would further provide that its provisions are cumulative. By creating a new crime or expanding an existing crime, the bill would create a state-mandated local program. This bill contains other related provisions and other existing laws.
Status: 06/24/2008-From committee: Do pass, and re-refer to Com. on APPR. Re-referred. (Ayes 4. Noes 0.).
Current Location: 06/24/2008-S APPR.
AB 1876 (De Leon) Superior court security. (Amended 04/21/2008)
Position: W
Existing law, the Superior Court Law Enforcement Act of 2002, authorizes the presiding judge of each superior court to contract with a sheriff for the necessary level of law enforcement services in the courts. Existing law requires the sheriff or marshal and presiding judge of any county to develop a court security plan to be utilized by the court, as specified, and requires the Judicial Council to establish a process for its review of court security plans in the California Rules of Court. Existing law requires the superior court and the sheriff to enter into a memorandum of understanding specifying the agreed upon level of court security services and their cost and terms of payment, and requires the sheriff to provide specified information to the courts by April 30 of each year, with actual court security allocations subject to the approval of the Judicial Council. If the superior court and the sheriff are unwilling or unable to enter into an agreement, they may request mediation assistance, as specified, for a period of 45 days. Existing law requires the Judicial Council to establish a working group on court security to promulgate recommended uniform standards that may be used to implement court security standards and to promulgate rules and standards for trial courts to reduce operating costs. This bill would require the Judicial Council to adopt a template or templates and requirements for quarterly reporting of services and expenditures , consistent with state accounting standards . The bill would provide that the sheriff or marshal is accountable for the effective and cost-efficient expenditure of court security funds, and would require the sheriff or marshal to provide quarterly reports to the court and the Administrative Office of the Courts using those templates. The Administrative Office of the Courts would be required to compile the quarterly reports and submit a summary report to the Legislature annually. The bill would require the sheriff or marshal to maintain the reports and underlying records for at least 7 years, and would authorize the Administrative Office of the Courts to conduct periodic audits. This bill would require the Judicial Council to adopt a template for the memorandum of understanding between sheriffs or marshals and courts for court security, as specified. The bill would require the court and the sheriff or marshal, if those parties are unwilling or unable to enter into a memorandum of understanding within 60 days from the date the Judicial Council approves the security allocation in any year, or in the event there is a dispute between the court and the sheriff or marshal over the administration of court security services, to meet and attempt to resolve the dispute, and would authorize the parties to arrange for appropriate mediation services, with the costs to be divided equally between the court and the sheriff or marshal . By increasing the duties of the county sheriff's department, the bill would impose a state-mandated local program. This bill contains other related provisions and other existing laws.
Status: 05/22/2008-Referred to Com. on JUD.
Current Location: 05/22/2008-S JUD.
AB 1877 (Adams) Child custody evaluations: confidentiality. ( Enrolled 07/22/2008)
Position: ?
Existing law provides that in any contested proceeding involving child custody or visitation rights, the court may appoint a child custody evaluator to conduct a child custody evaluation in cases where the court determines it is in the best interests of the child. If directed by the court, the court-appointed child custody evaluator shall file a written confidential report on his or her evaluation, which report shall not be made available other than as specified. In addition, any information obtained from access to a juvenile court case file is confidential and shall only be disseminated as specified. This bill would authorize the court, commencing January 1, 2010, to impose a monetary sanction for the unwarranted disclosure of a written confidential report, as specified. The bill would require that the Judicial Council, by January 1, 2010, adopt a form that informs the report recipient of the confidentiality of the report and the potential consequences for the unwarranted disclosure of the report; and adopt a rule to require that, when a court-ordered child custody evaluation report is served on the parties, the form shall be included with the report.
Status: 07/22/2008-Enrolled and to the Governor at 12:30 p.m.
Current Location: 07/22/2008-A ENROLLED
AB 1923 (Anderson) Local correctional facilities: contraband. (Chaptered 07/22/2008)
Position: ?
Existing law generally regulates the conditions of incarceration for prisoners in a local correctional facility, and specifically prohibits the unauthorized possession of a wireless communication device or the possession of tobacco products by inmates, as defined. This bill would prohibit any unauthorized person housed in a local correctional facility from possessing a handcuff key, as defined. A violation of that provision would be a misdemeanor. Because the bill would create a new crime, the bill would impose a state-mandated local program. This bill contains other related provisions and other existing laws.
Status: 07/22/2008-Chaptered by the Secretary of State, Chapter Number 190, Statutes of 2008
Current Location: 07/22/2008-A CHAPTERED
Memo:
AB 1963 (Carter) Public employees' retirement: service credit. (Enrolled 07/21/2008)
Position: ?
Existing law prohibits a person from receiving credit for the same service in two retirement systems supported wholly or in part by public funds, with specified exceptions. Existing law excepts from this prohibition concurrent participation and credit for service in the defined benefit plan provided by the Public Employees' Retirement System (PERS) and a supplemental defined benefit plan offered by an employer, provided that supplemental defined benefit plan meets specified federal tax requirements and certain conditions exist. The County Employees Retirement Law of 1937 permits a participant in specified deferred compensation plans to participate also in a retirement system established pursuant to its provisions. This bill would specify that a participant in a retirement system established under the County Employees Retirement Law of 1937 is permitted to concurrently participate in individual account retirement plans and is permitted to concurrently participate in, and to receive credit for service in, a supplemental defined benefit program maintained by his or her employer, provided that the supplemental program meets specified requirements.
Status: 07/21/2008-Enrolled and to the Governor at 9:45 a.m.
Current Location: 07/21/2008-A ENROLLED
AB 1997 (Hayashi) Public employee health benefits: vision care: local, school, and university members. (Amended 06/18/2008)
Position: ?
Existing law establishes the Vision Care Program for State Annuitants that is administered by the Department of Personnel Administration and creates the Vision Care Program for State Annuitants Fund in the State Treasury, which is continuously appropriated, for expenditure solely for the provision of vision care benefits to state annuitants. This bill would establish a similar vision care program for specified local members, school members, and university members, and their dependents to be known as the Retired Public Employees Vision Care Program. The bill would require the Board of Administration of the Public Employees' Retirement System , on or before January 1, 2010, to administer the program, and would create the Retired Public Employees Vision Care Program Fund, which would be continuously appropriated for those purposes. The bill would also require the board to terminate the program upon a specified circumstance.
Status: 06/24/2008-From committee: Do pass, and re-refer to Com. on APPR. Re-referred. (Ayes 3. Noes 1.).
Current Location: 06/24/2008-S APPR.
AB 2001 (Swanson) Local government: whistleblower hotlines. (Amended 07/10/2008)
Position: ?
Existing law requires the State Auditor to maintain a whistleblower hotline to receive calls from persons who have information regarding possible violations of state or federal statutes, rules, or regulations, or violations of fiduciary responsibility by a corporation or limited liability company to its shareholders, investors, or employees. This bill would authorize a city, county, or city and county auditor or controller to maintain a whistleblower hotline to receive calls from persons who have information regarding possible violations by local government employees of state, federal, or local statutes, rules, or regulations.
Status: 07/10/2008-Read third time, amended. To second reading.
Current Location: 07/10/2008-S SECOND READING
AB 2023 (Houston) Public employee disability benefits. (Amended 07/07/2008)
Position: ?
The Public Employees' Retirement System provides for the granting of disability benefits to members in state service. Existing law generally provides that if a medical examination and other available information show to the satisfaction of the Board of Administration of the Public Employees' Retirement System that a member in state service is incapacitated physically or mentally for the performance of his or her duties and is eligible to retire for disability, the board shall immediately retire him or her for disability. The State Teachers' Retirement System permits the board of administration of the system to authorize payment of a disability allowance or disability retirement allowance, requires a member to provide medical documentation to substantiate the claim qualifying the member for the disability allowance or disability retirement allowance, and permits the board to order a medical examination in this regard, as specified. The County Employees Retirement Law of 1937 permits a member permanently incapacitated for duty to retire for disability only if specified criteria are met. Existing law permits the legislative body of a local agency to establish a pension trust, as specified, for the benefit of its officers and employees and permits that legislative body to establish reciprocal retirement benefits with other specified retirement systems. This bill would restrict the board or body administering a retirement system or a pension trust, as described above, with respect to the medical opinion or documentation used to determine whether a member is eligible to retire for disability, as specified, and would prohibit the use of disability retirement as a substitute for the disciplinary process.
Status: 07/10/2008-Read second time. To third reading.
Current Location: 07/10/2008-S THIRD READING
AB 2028 (Solorio) Fair employment: peace officers: medical and psychological examinations. (Amended 07/01/2008)
Position: ?
Under existing law, the Fair Employment and Housing Act, an employer may require a medical or psychological examination or make a medical or psychological inquiry of a job applicant after an employment offer has been made but before the commencement of employment duties, provided that the examination or inquiry is job-related and consistent with business necessity and that all entering employees in the same job classification are subject to the same examination or inquiry. This bill would provide that, in order to be considered bona fide, an employment offer must be based on the collection and consideration of nonmedical and nonpsychological information prior to the requiring of a medical or psychological examination or the making of a medical or psychological inquiry, unless the employer or employment agency can demonstrate that it could not have reasonably completed the collection and consideration of the nonmedical and nonpsychological information prior to issuing the employment offer.
Status: 07/01/2008-Read second time, amended, and to third reading.
Current Location: 07/01/2008-S THIRD READING
AB 2041 (Fuentes) County employees' retirement: noncontributory plans: death of member. (Enrolled 07/08/2008)
Position: ?
The County Employees Retirement Law of 1937 establishes noncontributory retirement plans for employees in specified counties. Under existing law, if approved by the county board of supervisors, members of those plans in the Counties of Los Angeles and Santa Barbara who have completed at least 5 years of credited service may elect to purchase retirement service credit. This bill would require, with respect to members of the noncontributory retirement plans in the Counties of Los Angeles and Santa Barbara, that, upon the death of an active or former member of the plan, the accumulated contributions made by the member, with interest, be paid to the member's beneficiaries.
Status: 07/08/2008-Chaptered by Secretary of State - Chapter No. 72, Statutes of 2008
Current Location: 07/08/2008-A CHAPTERED
AB 2158 (Soto) State employees' health benefits: blood-borne diseases. (Amended 07/01/2008)
Position: ?
Existing law provides various health benefits for state employees and annuitants. Existing law holds the state liable for payment of workers' compensation, including medical treatment, for injuries incurred by state employees that arise out of or in the course of employment. This bill would provide that if a state employee or an annuitant who retired from state employment and sustained an injury as the result of a work-related event that arose out of and in the course of his or her official duties as a state employee, before January 1, 1984, and that meets a specified definition of a blood-borne infectious disease, and a dependent, as defined, or former dependent, as defined, of that person contracts the blood-borne disease from that person, the dependent or former dependent may receive health care benefits sufficient to cover all medically necessary health care costs associated with the disease, for the duration of the disease. The bill would require the state to contribute the cost of providing that benefit coverage from the General Fund, upon appropriation by the Legislature. The bill would also provide that a person who elects to receive these benefits would be prohibited from bringing a civil action against the state for damages related to contracting the disease. The bill would also specify that a dependent or former dependent who does not elect to receive these benefits may pursue all civil remedies allowed by law and is not subject to a defense that the claim is barred by these provisions. The bill would require the Board of Directors of the State Compensation Insurance Fund to administer this benefit.
Status: 07/01/2008-From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on APPR.
Current Location: 07/01/2008-S APPR.
AB 2177 (Bass) Public works: prevailing wages: Compliance Group Representatives. (Amended 06/26/2008)
Position: S1
Existing law generally requires the payment of the general prevailing rate of per diem wages to workers employed on public works projects costing over $1,000, unless the awarding body, as defined, elects to initiate and enforce a labor compliance program, as defined, for every public works project under the authority of that awarding body. This bill would, until January 1, 2013, require the Division of Labor Standards Enforcement, under the Department of Industrial Relations, for purposes of ensuring that proper prevailing wages are paid on all state public works projects, to establish minimum qualifications and train qualified professionals, known as the Compliance Group Representatives, to interview workers on state public works projects, as provided, and to annually report to the Legislature on the effectiveness of this program. The Division of Labor Standards Enforcement would be allowed to establish standards for the conduct of representatives and to suspend or revoke a representative's authorization to interview workers, but would not assume responsibility for the conduct of a representative.
Status: 06/26/2008-Read second time, amended, and re-referred to Com. on APPR.
Current Location: 06/26/2008-S APPR.
AB 2202 (Caballero) Public Employees' Retirement System. (Enrolled 07/22/2008)
Position: ?
The Public Employees' Retirement Law provides that public employees become members of the Public Employees' Retirement System (PERS) upon entry into employment, with specified exceptions. Existing law excludes from membership in PERS part-time employees unless certain requirements are met. Existing law requires state agencies, school employers, and contracting agencies of PERS to provide specified information to the Board of Administration of PERS regarding employees who are members of the system. This bill would require every state agency, school employer, or contracting agency of PERS to provide information to the board, upon request, regarding its employees who are not enrolled as members of PERS. The bill would require that this information be treated as confidential, as specified. This bill contains other related provisions and other existing laws.
Status: 07/22/2008-Enrolled and to the Governor at 12:30 p.m.
Current Location: 07/22/2008-A ENROLLED
AB 2484 (Caballero) Local government: special districts. (Chaptered 07/22/2008)
Position: ?
Existing law, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 defines "change of organization" to mean, among other things, a district formation, a consolidation of cities or special districts, or a merger or establishment of a subsidiary district. This bill would include within the definition of "change of organization" a proposal for the exercise of new or different functions or classes of services, or the divestiture of the power to provide particular functions or classes of services, within all or part of the jurisdictional boundaries of a special district. This bill contains other related provisions and other existing laws.
Status: 07/22/2008-Chaptered by the Secretary of State, Chapter Number 196, Statutes of 2008
Current Location: 07/22/2008-A CHAPTERED
AB 2526 (Berryhill) County employee retirement: boards. (Amended 06/16/2008)
Position: ?
The County Employees Retirement Law of 1937 sets forth the membership composition for boards of retirement, as specified. Under that law, the retirement board in specified counties is comprised of 9 members and an alternate member who is the candidate for the 7th member from the group of safety members, under specified provisions, that is not represented by a board member who received the highest number of votes for all candidates in that group, except as specified. The alternate member has, unless prohibited by a resolution or regulation of the board, the same rights, privileges, responsibilities, and access to closed sessions as the 2nd, 3rd, 7th, and 8th member and the right to hold positions on committees of the board independent of the 2nd, 3rd, 7th, or 8th member and to participate in the deliberations of the board or its committees, as specified. This bill would delete the authority of the board to prohibit, by a resolution or regulation of the board, a member from having the same rights, privileges, responsibilities, and access to closed sessions as the 2nd, 3rd, 7th, or 8th member, or from holding positions on committees of the board, and participating in board or committee deliberations, as described above. The bill would also direct the board of supervisors to appoint a replacement to fill a vacancy for the duration of the current term in the 4th, 5th, 6th, or 9th board member positions. The bill would direct the board of supervisors to hold an election to fill a vacancy for the duration of the current term, except as specified, at the earliest possible date if there is a vacancy in the 2nd, 3rd, 7th, 8th, or alternate 7th member positions. It would limit candidacy to the 7th member and alternate member positions, as specified. The bill would require the board of supervisors to forego an election in specified circumstances when there is only one candidate. The bill would also make various changes in terminology and delete obsolete references. This bill contains other related provisions and other existing laws.
Status: 06/24/2008-In committee: Set first hearing. Failed passage. Reconsideration granted.
Current Location: 06/23/2008-S P.E. & R.
AB 2673 (Feuer) County employees' retirement: death benefits. (Chaptered 07/22/2008)
Position: ?
Existing law provides that registered domestic partners shall have the same rights, protections, and benefits, and shall be subject to the same responsibilities, obligations, and duties under law, as are granted to and imposed upon spouses. This bill would make the above provision of the County Employees Retirement Law of 1937 inapplicable to any member whose death occurs on or after January 1, 2009. This bill contains other existing laws.
Status: 07/22/2008-Chaptered by the Secretary of State, Chapter Number 197, Statutes of 2008
Current Location: 07/22/2008-A CHAPTERED
AB 2884 (Portantino) Court reporters: rough draft transcript. (Amended 06/18/2008)
Position: ?
Existing law provides that the report of the official reporter or official reporter pro tempore of any court, as specified, when transcribed and certified as being a correct transcript of the testimony and proceedings in a case, is prima facie evidence of that testimony and proceedings. Existing law specifically provides that the report, when prepared as a rough draft transcript, shall not be certified and cannot be used, cited, or transcribed as the official certified transcript of the proceedings. Existing law also provides that the rough draft transcript may not be cited or used to rebut or contradict the official certified transcript and that the production of a rough draft transcript shall not be required. This bill would provide , until January 1, 2016, that the instant visual display of the testimony or proceedings, or both, shall not be certified and cannot be used, cited, or transcribed as the official certified transcript of the proceedings. The bill also would prohibit the citation or use of the instant visual display of the testimony or proceedings, or both, to rebut or contradict the official certified transcript of the proceedings.
Status: 06/26/2008-To inactive file on motion of Senator Perata.
Current Location: 06/26/2008-S INACTIVE FILE.
AB 3044 (Committee on Public Employees, Retirement and Soci) County employees' retirement. (Chaptered 07/21/2008)
Position: ?
The County Employees Retirement Law of 1937 governs retirement plans for county employees. This bill would make various technical, nonsubstantive changes to the County Employees Retirement Law of 1937 by deleting obsolete provisions and updating references. This bill contains other related provisions and other existing laws.
Status: 07/21/2008-Chaptered by the Secretary of State, Chapter Number 164, Statutes of 2008
Current Location: 07/21/2008-A CHAPTERED
AB 3050 (Committee on Judiciary) Legal aid: court interpreters. (Amended 07/02/2008)
Position: ?
Existing law, the State Bar Act, provides for the licensure and regulation of attorneys by the State Bar of California, a public corporation. Existing law provides that it is the duty of an attorney to, among other things, never reject, for any consideration personal to himself or herself, the cause of the defenseless or oppressed. Existing law provides that a lawyer may fulfill his or her ethical commitment to provide pro bono services, in part, by providing financial support to organizations providing free legal services to persons of limited means. This bill would prohibit a person or organization that is not a legal aid organization, as defined, from using the term "legal aid," or any variant or similar name in any firm name, trade name, fictitious business name, or other designation, or on any advertisement, letterhead, business card, or sign. The bill would subject a person or organization that violates this prohibition to specified civil liability. This bill contains other related provisions and other existing laws.
Status: 07/02/2008-Read second time, amended, and re-referred to Com. on APPR.
Current Location: 07/02/2008-S APPR.
AB 3051 (Jones) Dependent children. (Chaptered 07/21/2008)
Position: ?
Existing law regulates the establishment and termination of guardianships. Existing law excepts from these provisions guardianships that result from the selection and implementation of a permanent plan for a child adjudged a dependent child of the court under specified circumstances. This bill would prohibit the guardianship laws described above from being construed to prevent a court that assumes jurisdiction of a minor child or a probate court, as specified, from issuing orders or making appointments, on the motion of the child's counsel, necessary to ensure the appropriate administration of funds for the benefit of the child, as specified. The bill would provide that orders or appointments established under these circumstances may continue after the court's jurisdiction is terminated, as specified. The bill also would correct obsolete cross-references in connection with these provisions. This bill contains other related provisions and other existing laws.
Status: 07/21/2008-Chaptered by the Secretary of State, Chapter Number 166, Statutes of 2008
Current Location: 07/21/2008-A CHAPTERED
ABX1 1 (Nunez) Health care reform. (Amended 01/16/2008)
Position: W1
Existing law creates the California Health and Human Services Agency. This bill would require the agency, in consultation with the Board of Administration of the Public Employees' Retirement System (PERS), to assume lead agency responsibility for professional review and development of best practice standards for high-cost chronic diseases that state health care programs would be required to implement upon their adoption. The bill would additionally require the agency, in consultation with PERS and health care provider groups, to develop health care provider performance measurement benchmarks, as specified. This bill contains other related provisions and other existing laws.
Status: 02/25/2008-From committee without further action pursuant to Joint Rule 62(a).
Current Location: 01/24/2008-A HEALTH
ACR 104 (Davis) Public Service Recognition Week. (Chaptered 05/12/2008)
Position: ?
This measure would designate the week of May 5 to 11, 2008, inclusive, as Public Service Recognition Week, and encourage all Californians to recognize the crucial role of public employees in this state.
Status: 05/12/2008-Chaptered by Secretary of State - Chapter No. 33, Statutes of 2008
Current Location: 05/12/2008-A CHAPTERED
SB 145 (Corbett) Court facilities. (Amended 08/31/2007)
Position: W1
Existing law requires the Judicial Council, in consultation with the superior court of each county and the county, to enter into agreements concerning the transfer of responsibility for court facilities from that county to the Judicial Council. Transfer of responsibility may occur not earlier than July 1, 2004, and not later than June 30, 2007. Existing law requires counties to remit to the state, for deposit in the Court Facilities Trust Fund, county facilities payments composed of the costs of various items related to court facility operation and maintenance. This bill would extend the deadline for the transfer of responsibility for court facilities to December 31, 2008. The bill would require that any transfer agreement that is executed on or after January 1, 2008, and on or before June 30, 2008, contain a requirement that the county pay an additional amount annually, to be calculated pursuant to a specified method. The bill would provide that the county is not required to make the additional payment if the county , before January 1, 2008, has submitted a proposed county facilities payment in connection with court facilities. The bill would further require that any transfer agreement that is executed on and after July 1, 2008, contain a requirement that the county facilities payment be calculated pursuant to the greater of 2 specified methods. The bill would make related, conforming changes. This bill contains other related provisions and other existing laws.
Status: 01/07/2008-Placed on inactive file on request of Senator Corbett.
Current Location: 01/07/2008-S INACTIVE FILE
SB 392 (Ducheny) County employees' retirement: cost-of-living adjustments. (Chaptered 07/25/2008)
Position: W1
The County Employees Retirement Law of 1937 authorizes specified cost-of-living increases to be applied to allowances paid to or on account of members of county and district retirement systems. Existing law, applicable to Sonoma County, permits the board of retirement of the retirement system in Sonoma County, if approved by the county board of supervisors, to provide cost-of-living adjustments, on a prefunded basis, to certain of the monthly allowances paid by the system to or on account of members of the system, as specified. This bill would extend the provisions described above to Imperial County.
Status: 07/25/2008-Chaptered by Secretary of State - Chapter No. 202, Statutes of 2008
Current Location: 07/25/2008-S CHAPTERED
SB 1019 (Romero) Peace officer records: confidentiality. (Amended 06/12/2008)
Position: O
Existing law generally regulates the confidentiality of various personnel records relating to peace and custodial officers. This bill would state the intent of the Legislature to abrogate the California Supreme Court decision in Copley Press, Inc. v. Superior Court and to restore public access to meetings and hearings regarding peace officer discipline that were open prior to the Copley Press decision. This bill contains other related provisions.
Status: 06/24/2008-Set, second hearing. Failed passage in committee. Reconsideration granted.
Current Location: 06/24/2008-A PUB. S.
SB 1123 (Wiggins) Public employee benefits. (Amended 06/11/2008)
Position: ?
Existing law requires a state or local retirement system to secure, not less than triennially, the services of an enrolled actuary, who is to perform a valuation of the system. Existing law requires the Legislature and local legislative bodies to secure the services of an enrolled actuary to provide a statement of the actuarial impact upon future annual costs before authorizing increases in public retirement plan benefits. Existing law requires the future annual costs of the public retirement plan benefits, as determined by the actuary, to be made public at a public meeting at least 2 weeks prior to the adoption of any increases in the benefits. This bill would revise and recast provisions regarding the services of an enrolled actuary and the disclosure of public retirement plan benefits, as described above. The bill would redefine the qualifications of actuaries for these purposes. The bill would include other postretirement benefits, with specified exceptions, within the subject matter of the actuary's statement that is provided before the Legislature or a local legislative body may authorize an increase in benefits. The bill would require the future annual costs of other postemployment benefits to be made public, as specified, and would require local legislative bodies to have an actuary present to provide information at the meeting where the adoption of a new benefit will be considered, subject to certain exceptions. The bill would prohibit the adoption of any benefit to which its provisions apply by means of a consent calendar. The bill would require, upon the adoption of any benefit change to which its provisions apply, that the person with the responsibilities of a chief executive officer acknowledge in writing that he or she understands the current and future cost of the benefit as determined by the actuary , and would specify that the Director of the Department of Personnel Administration perform this function for the adoption of benefit changes by the state. By increasing the duties of local entities, this bill would impose a state-mandated local program. The bill would except from these provisions a school district or a county office of education and specify that these entities remain subject to other regulations. This bill contains other related provisions and other existing laws.
Status: 06/25/2008-From committee: Do pass, but first be re-referred to Com. on APPR. (Ayes 4. Noes 2.) Re-referred to Com. on APPR.
Current Location: 06/25/2008-A APPR.
SB 1182 (Ackerman) Trial courts: restructuring. (Chaptered 07/01/2008)
Position: ?
Existing law provides for the restructuring of the trial court system, including the abolition of municipal courts, the unification of those courts with superior courts, and state funding of trial courts. This bill would delete provisions that have become obsolete as a result of that trial court restructuring.
Status: 07/01/2008-Chaptered by Secretary of State - Chapter No. 56, Statutes of 2008
Current Location: 07/01/2008-S CHAPTERED
SB 1296 (Corbett) Public Employment Relations Board. (Amended 06/17/2008)
Position: ?
The Meyers-Milias-Brown Act delegates jurisdiction to the Public Employment Relations Board to resolve disputes and enforce the statutory duties and rights of local public agency employers and employees. The bill would provide that superior courts shall have exclusive jurisdiction over actions involving interest arbitration when the action involves an employee organization that represents firefighters , as specified.
Status: 06/17/2008-Read second time. Amended. Re-referred to Com. on APPR.
Current Location: 06/17/2008-A APPR.
SB 1407 (Perata) Court facilities: financing. (Amended 07/14/2008)
Position: ?
The Trial Court Facilities Act of 2002 establishes the State Court Facilities Construction Fund and provides that moneys in that fund may be used to acquire, rehabilitate, construct, or finance court facilities, as defined, and to implement trial court projects in designated counties, as specified. This bill would extend the purposes for which moneys in that fund may be used to include the planning, design, construction, rehabilitation, replacement, leasing, or acquisition of court facilities. The bill would establish the Immediate and Critical Needs Account of the State Court Facilities Construction Fund, the proceeds of which would be used for the planning, design, construction, rehabilitation, renovation, replacement, or acquisition of court facilities, for the repayment of moneys appropriated for lease of court facilities pursuant to the issuance of lease-revenue bonds, and for the payment for lease or rental of court facilities. The bill would require the Judicial Council to collect and make available information regarding moneys in the account, as specified, and to make recommendations to the Governor and the Legislature for projects based on its determination that the need for a project is most immediate and critical, as specified. The bill would authorize the Judicial Council to acquire sites for the replacement of deficient court facilities in four specified counties and would appropriate, upon sufficient receipt of revenue into the account, $61,584,000 for this purpose. This bill contains other related provisions and other existing laws.
Status: 07/16/2008-Placed on APPR. suspense file.
Current Location: 07/16/2008-A APPR. SUSPENSE FILE
SB 1458 (Committee on Local Government) Local government: the County Service Area Law. ( Chaptered 07/21/2008)
Position: ?
The County Service Area Law authorizes the formation of county service areas to provide authorized services, as specified. This bill would revise and recast the County Service Area Law and make conforming changes. This bill contains other related provisions.
Status: 07/21/2008-Chaptered by the Secretary of State, Chapter Number 158, Statutes of 2008
Current Location: 07/21/2008-S CHAPTERED
SB 1482 (Correa) Local government: forfeiture of office. (Chaptered 07/10/2008)
Position: ?
Existing law sets forth the circumstances under which an office is forfeited, including, among other things, upon the conviction of certain crimes specified under the California Constitution or state law. This bill would provide that an elected officer of a city, county, city and county, or district in this state forfeits his or her office upon the conviction of a crime pursuant to the federal act, that involves a false claim of receipt of a military decoration or medal described in that act. This bill contains other existing laws.
Status: 07/10/2008-Chaptered by the Secretary of State, Chapter Number 118, Statutes of 2008
Current Location: 07/10/2008-S CHAPTERED
SB 1496 (Ashburn) Public Employees' Retirement System: member classifications. (Amended 05/07/2008)
Position: ?
Existing law classifies certain police officers, sheriff deputies, and firefighters who have responsibility for the direct supervision of state peace officer/firefighter personnel as state peace officer/firefighter members under the Public Employees' Retirement System (PERS). Employees classified as safety members under PERS , including state peace officer/firefighter members, are generally entitled to higher benefits and subject to higher contribution rates than employees classified as miscellaneous or general members. Member contributions to PERS are deposited in the Public Employees' Retirement Fund, a continuously appropriated fund. This bill would instead provide that those peace officers and firefighters are classified as state peace officer/firefighter members if the majority of their duties consists of responsibility for the direct supervision of state peace officer/firefighter personnel, conducting investigations or audits of investigatory practices and other audits of, or in, the Department of Corrections and Rehabilitation, or the administration of programs of an agency, department, or other organizational unit that is primarily responsible for active law enforcement or active firefighting/fire suppression, except as specified. The bill would define administration for these purposes. The bill would also include in that classification individuals hired prior to January 1, 2008, who do not meet the criteria for this classification if those individuals have been continuously employed in positions that were deemed to come within the classification prior to January 1, 2008. The bill would also require the Department of Personnel Administration to annually determine which classes meet these conditions and report its findings to the Legislature and to this system, to be effective July 1 of each year. The bill would prohibit an agency or department from designating an employee as a state peace officer/firefighter member without prior approval from the Department of Personnel Administration. The bill would make an appropriation by increasing the amount of employee contributions to the Public Employees' Retirement Fund.
Status: 05/22/2008-To Com. on P.E.,R. & S.S.
Current Location: 05/22/2008-A P.E.,R. & S.S.
SB 1717 (Perata) Workers' compensation: permanent partial disability benefits. (Amended 05/01/2008)
Position: ?
Existing law establishes a workers' compensation system, administered by the Administrative Director of the Division of Workers' Compensation, to compensate an employee for injuries sustained in the course of his or her employment. Existing law requires the payment of disability benefits to eligible individuals for injuries sustained in the course of employment that cause permanent disability, and specifies that the amount of those payments be computed in accordance with a prescribed formula. Existing law provides that if, within 60 days of an employee's disability becoming permanent and stationary, the employer does not offer the injured employee regular work, modified work, or alternative work, as specified, for the period of at least 12 months, or, if the regular work, modified work, or alternative work is terminated before the end of the period for which disability payments are due the injured employee, the employer shall pay the employee an increased amount of permanent disability benefits. Existing law also provides further that, if within 60 days of a disability becoming permanent and stationary, an employer offers the injured employee regular work, modified work, or alternative work, for a period of at least 12 months, regardless of whether the injured employee accepts or rejects the offer, the employer shall pay the employee a decreased amount of permanent disability benefits. This bill would eliminate those provisions requiring an employer to pay an injured employee a decreased amount of permanent disability benefits if, within 60 days of a disability becoming permanent and stationary, the employer offers the injured employee regular work, modified work, or alternative work, within those specified time periods, regardless of whether the injured employee accepts or rejects the offer. The bill would also revise the formula for computing those benefits for injuries causing permanent disability, which occur on or after January 1, 2009.
Status: 05/01/2008-Read second time. Amended. To third reading.
Current Location: 05/01/2008-S THIRD READING
SB 1718 (Perata) Public employment: State Bargaining Unit 2: compensation. (Amended 05/23/2008)
Position: ?
The Ralph C. Dills Act permits state employees to form, join, and participate in the activities of employee organizations of their own choosing for the purpose of representation on all matters of employer-employee relations, as specified. Existing law permits an employee organization to become the exclusive representative of an appropriate unit for purposes of meeting and negotiating, as specified. Existing law requires the Governor, or his or her representative, as properly designated by law, to meet and confer in good faith regarding wages, hours, and other terms and conditions of employment with representatives of recognized employee organizations, and to consider fully any presentation that is made by an employee organization on behalf of its members prior to arriving at a determination of policy or course of action. This bill would require the Department of Personnel Administration to annually conduct a survey that would obtain specified information regarding the compensation of certain legal professionals, including attorneys employed by specified public entities and judges. The bill would require the department to issue an annual report that would include the data obtained from the surveys as well as specified analyses. The bill would also require the report to be provided to the Legislature, the Governor, and the exclusive representative of State Bargaining Unit 2, no later than March 15 of each year. The bill would specify that this report would satisfy the department's reporting requirement to the parties meeting and conferring and to the Legislature. The bill would specify that the department would absorb the cost of preparing the surveys required by these provisions from existing appropriations. The bill would make related legislative findings and declarations regarding State Bargaining Unit 2. This bill contains other existing laws.
Status: 06/25/2008-From committee: Do pass, but first be re-referred to Com. on APPR. (Ayes 5. Noes 1.) Re-referred to Com. on APPR.
Current Location: 06/25/2008-A APPR.
March 2, 2008
Next speaker enjoys broad support -- Anyone who knew Wilhelmina Bass might understand why her daughter Karen Bass, the Los Angeles Democrat elected Thursday as the next leader of the California Assembly, has devoted her Capitol career to making the state a better parent to its 80,000 foster children.
February 20, 2008
Governor calls on lawmakers to approve budget by March – Gov. Arnold Schwarzenegger, calling for unprecedented action in a state budget crisis, urged legislators yesterday to enact a new budget by next month, well before the new fiscal year begins July 1.
February 15, 2008
State Budget Update, February 15, 2008—Aaron Read & Associates
The Assembly and Senate met today and lawmakers voted on a package of mid-year budget cuts they say will help get the state through the cash-flow problem in the current fiscal year. However, the 2008-09 budget is a different matter. As reported in the Sacramento Bee, Assembly Speaker Fabian Núñez called that the “Big Kahuna,” and the big kahuna has yet to be fully dealt with.
The present cuts will affect spending through June and are expected to have minimal impact on current public services. The bills passed today also included additional cuts of $1.2 billion for the next fiscal year; the bulk of the cuts being decreases in Medi-Cal reimbursements.
Speaker Nunez said cuts for the current year are aimed at solving the immediate danger of the state running out of cash. “I know a lot of people are not happy (about this) . . . but what’s coming in the budget year will be some devastating cuts.”
February 2008
Updated OCEA Legislative Report - Aaron Read & Associates
January 2008
Bi-Partisan Benefits Comission announces Comprehensive Plan To Address Pension and Retiree Health Care Obligations - Click the link to read more.
November 2007
Supreme Court steps into dispute over Calif. union law -- The Supreme Court intervened in a dispute between organized labor and management Tuesday, agreeing to decide the validity of a state law that limits employers' ability to weigh in on union organizing.
CalPERS Adopts Federal Investment Policy Guidelines Policies Outline Objectives of Pension Fund Investments -- The California Public Employees' Retirement System today approved guidelines for the pension fund’s engagement with federal lawmakers and regulators on proposals affecting CalPERS investments.
October 2007
'Post-partisanship' fails -- Fresh from his landslide victory in 2006, Gov. Arnold Schwarzenegger confidently proclaimed 2007 “the year of post-partisanship.” He was wrong; California politics are more partisan than ever, and the Legislature more bitterly divided on partisan grounds than probably anytime in its history.
State's unruly budget pattern -- In 1992 and 1993, Gov. Pete Wilson and lawmakers tried to take nearly $2 billion from public schools to balance the state budget. That didn't work. The state lost a court challenge and had to repay the money, with interest. In 1991, a budget move involving retired public employees didn't work, either. The courts made the state pay $1.2 billion, plus $300 million in interest.
August 2007
Highlights of new 2007 California budget
Democrats push health plan for state's uninsured children -- With time running out in California's legislative session, Democrats are prepared to move forward with a proposal to provide coverage for all uninsured children if more ambitious health care efforts fail.
Democratic strategist eager for battle on term limits — Kaufman would love governor's support, but she doesn't think it's essential for victory.
California Legislature adopts budget! California lawmakers on Tuesday ended one of the state's longest budget stalemates in 30 years, agreeing to a $145 billion spending plan that reins in expenses and addresses myriad concerns of holdout Republicans.
More budget information from Aaron Read and associates.
Healthcare reform: Code blue — The governor and legislative leaders can still pass a landmark measure, but time is running out.
Bill backlog greets state lawmakers — When lawmakers return to the Capitol on Monday for their final four weeks of work this year, they will confront not only a contentious budget standoff, but also more than 900 other bills — some of which deal with vital issues and many that are sure to fuel passionate debate. But the question is: Can they get to them?
Secretary of State Debra Bowen: News Release
Secretary of State Debra Bowen today announced that the proponents of a new initiative may begin collecting petition signatures for their measure.
San Jose pays more for its retirees' health than most cities, counties
San Jose pays more than $1,000 a month to cover health care premiums for retired workers of its largest union. That was among the highest monthly per-retiree benefit paid by Bay Area governments.
Sacramento Deputy union battles county. Suit opposes cutoff of medical benefits for new retirees.
The association representing Sacramento County sheriff's deputies has filed a lawsuit seeking to overturn the county's decision to stop subsidizing retirees' medical and dental coverage.
OCEA Annual Legislative Report
Prepared by Aaron Read and Associates
Ventura will cut health benefits for retiress
The Ventura City Council took steps to corral the soaring costs of retiree health benefits this week, reducing long-standing subsidies that will force dozens of former city employees to pay higher premiums.
Supervisors move toward changing pensions
County supervisors took the first step Tuesday toward slashing pension benefits paid to retired deputy sheriffs, starting what could be a landmark legal battle with the deputies union.
Click here for Orange County Register video highlights relating to the July 31, 2007, Board of Supervisors action on pension benefits for Sheriff's Deputies.
July 2007
"John Garamendi: Always on your side!"
On July 10, 2007, the United Employee Organizations of Orange County (of which OCEA is a founding member) sponsored a political fundraiser for California Lieutenant Governor John Garamendi. The event was held in OCEA's Assembly Room, and a good number of John's supporters showed up. Here is a great photograph taken that evening, showing something of the festive mood that prevailed.
June 2007
Moorlach supports raising retirement age
O.C. supervisor signs ballot measure that would also cap pension benefits for new government employees statewide.
May 2007
OCERS CEO Leaving the County
Keith Bozarth, Chief Executive Officer of the $7 billion Orange County Employees Retiremment System has has been appointed executive director of...
The State Budget and Child Support Services
The Governor released his May Revision to his proposed 2007-08 budget. In total, his proposed budget includes $105 billion in available General Fund revenues (including $3.9 billion carry over from 2006-07), $103.7 billion in expenditures, and a reserve of $2.2 billion, which includes $700 million in the traditional reserve and $1.5 billion in the Budget Stabilization Account (BSA). The following comes from the Governor’s May Revision and legislative analysis of it.
Child Support Services
Requests position authority for nine permanent positions and two 1-year limited-term positions to address workload associated with implementation of the California Child Support Automation System (CCSAS). The DCSS proposes to redirect savings from existing contracts to fund the positions.
Continues to provide a backfill for lost Federal Incentives Matching Funds. Effective October 1, 2007, the Federal Deficit Reduction Act of 2005 will eliminate California's ability to claim federal matching funds for earned federal incentive payments. These incentive payments are awarded to all states based on program performance in a number of areas, such as paternity establishment. The Governor's Budget includes increased funding of $23 million General Fund to maintain the current funding level for local child support agencies.
Cost of Doing Business Adjustments for Counties Administering State Social Services Programs
The May Revision proposes a new methodology for adjusting county administrative costs for human services programs. Chapter 75, Statutes of 2006 (AB 1808) required the Department of Social Services (DSS) to estimate the costs for county administration of human services programs using countyspecific cost factors, examine factors contributing to those costs, and include the estimated county administration costs in budget documents beginning with the 200708 May Revision. AB 1808 also required the DSS to submit a plan to the Legislature for developing a new method of budgeting child welfare services.
The Administration proposes a budgeting methodology that would provide predictable, stable funding for county administration costs in the CalWORKs, Food Stamp, Child Welfare Services, Foster Care, Adoptions, InHome Supportive Services (IHSS), and Adult Protective Services programs, coupled with reforms designed to improve performance and accountability. Specifically, beginning in 200809, an annual adjustment to county administration funding would be provided equivalent to the salary and benefit increases provided to state employees, subject to appropriation. Annual adjustments would be coupled with an increased focus on accountability and incentives for improved services for children, families and lowincome aged, blind or disabled Californians.
The proposed methodology will build on the CalWORKs Pay-for-Performance program, existing state and county sharing in federal penalties for failure to meet performance measures in the CalWORKs and Food Stamp programs, and on the Child Welfare Services Outcomes and Accountability System. Further, the Administration proposes to establish a county share in federal Child Welfare Services penalties and to establish performance and accountability measures for the IHSS program. These reforms will provide a stable funding base for county administration and services that will grow commensurate with personnel costs, as well as introduce fiscal incentives to meet program goals and ensure the efficient use of state funds.
April 2007
Sacramento Lobbyist Steve Baker addresses OCEA Board of Directors
For many years, OCEA has had a close working relationship with Aaron Read and Steve Baker. These gentlemen represent Aaron Read & Associates, one of the nation’s premier firms of legislative advocates. Steve and Aaron monitor pending legislation and advise OCEA on it potential impact on our organization. They also work with OCEA in formulating responses to Sacramento activities, and strategies for informing legislators of OCEA’s positions.
On April 17, 2007, Steve Baker made a formal presentation to our Board of Directors, at the Board’s regular April meeting. Steve’s goal was to present our Board with an overview of what is now happening in Sacramento.
Steve touched on several primary topics, the first of which was term limits for California state legislators. Basically, term limits place restrictions on the number of terms a California legislator may serve (three terms in the assembly and two terms in the senate). As many of our members know, for OCEA term limits have been a mixed bag, at best. Because of term limits, two of OCEA’s best friends ever, namely Senator Joe Dunn and Assemblyman Tom Umberg, were forced out of the running.
Steve outlined the delicate interaction between the term limits dispute and Governor Schwarzenegger’s desire for reapportionment. The earlier presidential primary election in California could be the means by which term limits and redistricting are again addressed.
Next, Steve discussed the developments on the state’s budget, and also the recent establishment of the Public Employee Post-Employment Benefits Commission. He talked of the background of the members of the commission, and a little about the approach that they are expected to take.
Below are a few photos of Steve addressing our Board.
Above, Steve Baker, of Aaron Read & Associates (at left). In background (left to right), OCEA President Sara Ruckle-Harms, OCEA General Manager Nick Berardino, and Board members Ron Cooper and Alan Clow.
Above, Steve Baker speaks with our Board of Directors.
OCEA Board members in this photograph include (left to right) Pamela Waters, Cheryl Neuenschwander, Becki Daher, Jeff Gallagher, Phyllis Oudmayer, and Arlyn Buck. Steve Baker is standing in front of the chalk-board. To the right are visible (left to right) OCEA President Sara Ruckle-Harms, OCEA General Manager Nick Berardino, and Board members Ron Cooper and Alan Clow.
LAO Launches Web Site Focused on Retiree Health Care
The Legislative Analyst's Office has launched a Web site designed to provide information to policy makers, media, and the public concerning governmental retiree health care benefits, costs, and unfunded liabilities.
The Web site address is http://www.lao.ca.gov/retireehealth. The site will feature noteworthy news articles, reports, and commentaries from throughout California and around the country concerning governmental actions that affect retiree health benefits and liabilities.
Janet Nguyen Wins First District Board of Supervisors Seat
It was close, but after the recount, Janet Nguyen won the special election for First District Supervisor. The final margin of victory was three votes. Supervisor Nguyen was seated on March 27.
The Board of Supervisors is the ultimate “boss” of more than 18,000 County employees. The Board is now complete, after many weeks of operating with four members. Current members of the Board of Supervisors are:
Chris Norby
Board Chairman (4th District)
John M. W. Moorlach
Vice Chairman (2nd District)
Janet Nguyen
Supervisor (1st District)
Bill Campbell
Supervisor (3rd District)
Pat Bates
Supervisor (5th District)
In foreground, Supervisor Janet Nguyen (First District) during her first day on the Board. At left is Supervisor Bill Campbell (Third District).
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