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ACA-1 State budget: state-mandated local programs(2007-2008)

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ACA1:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2007–2008 4th Ext.

Assembly Constitutional Amendment
No. 1


Introduced  by  Assembly Member Plescia

November 12, 2008


A resolution to propose to the people of the State of California an amendment to the Constitution of the State, by amending Section 12 of Article IV thereof, by amending Section 3 of Article XIII A thereof, and by amending Section 6 of Article XIII B thereof, relating to state finances.


LEGISLATIVE COUNSEL'S DIGEST


ACA 1, as introduced, Plescia. State budget: state-mandated local programs
(1) Existing provisions of the California Constitution specify the procedures and time by which the Legislature shall pass a budget bill to provide for the support of state operations. Existing constitutional provisions require the Legislature to pass a budget bill by June 15 of each year.
This measure would require the Legislative Analyst to determine and report to the Legislature whether the enacted budget bill is a balanced state budget, as defined. If the Legislative Analyst reports that it is not a balanced state budget, the Legislature is required to pass and send the Governor a bill or bills to balance the state budget within 15 days and the Governor may reduce expenditures in the enacted budget bill as necessary to balance the state budget if the Legislature does not do so. The measure would also require the Legislative Analyst to make a similar determination and report quarterly. The measure would provide that if the Legislature does not pass and send the Governor a bill or bills to balance the state budget within 15 days after a quarterly report, the Governor may reduce appropriations in the enacted budget bill as necessary to balance the state budget.
(2) Existing constitutional provisions require each house of the Legislature to pass a bill appropriating money from the General Fund, except appropriations for the public schools, by a 2/3 vote.
This measure would also exempt from this vote requirement appropriations in the budget bill.
(3) The California Constitution requires a change in state taxes enacted for the purpose of increasing state revenues to be by a 2/3 vote of each house of the Legislature.
This measure would instead require a 2/3 vote by each house of the Legislature for a bill making any increase in state taxes or state fees.
(4) Under the California Constitution, whenever the Legislature or a state agency mandates a new program or higher level of service on any local government, the state is required to provide a subvention of funds to reimburse the local government, with specified exceptions.
This measure would instead provide that the local government need not provide the new program or higher level of service until it has received a state subvention of funds to reimburse the local government. The measure would also eliminate the specified exceptions to this requirement.
Vote: 2/3   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

Resolved by the Assembly, the Senate concurring, That the Legislature of the State of California at its 2007–08 Fourth Extraordinary Session commencing on the sixth day of November 2008, two-thirds of the membership of each house concurring, hereby proposes to the people of the State of California, that the Constitution of the State be amended as follows:

First—

 That Section 12 of Article IV thereof is amended to read:

SEC. 12.
 (a) Within the first 10 days of each calendar year, the Governor shall submit to the Legislature, with an explanatory message, a budget for the ensuing fiscal year containing itemized statements for recommended state expenditures and estimated state revenues. If recommended expenditures exceed estimated revenues, the Governor shall recommend the sources from which the additional revenues should be provided.
(b) The Governor and the Governor-elect may require a state agency, officer, or employee to furnish whatever information is deemed necessary to prepare the budget.
(c) (1) The budget shall be accompanied by a budget bill itemizing recommended expenditures.
(2) The budget bill shall be introduced immediately in each house by the persons chairing the committees that consider the budget.
(3) The Legislature shall pass the budget bill by midnight on June 15 of each year.
(4) Until the budget Within 72 hours of the enactment of the budget bill, the Legislative Analyst shall determine and report to the Legislature on whether the enacted budget bill is a balanced state budget. If the Legislative Analyst reports that the enacted budget bill is not a balanced state budget, the Legislature shall pass and send to the Governor a bill or bills to balance the state budget within 15 days of the issuance of that report, and if the Legislature does not do so the Governor may reduce appropriations in the enacted budget bill as necessary to balance the state budget.
(5) The Legislative Analyst shall determine and report quarterly to the Legislature whether the state budget remains balanced. These reports shall be delivered to the Joint Legislative Budget Committee no later than October 1, January 1, and April 1 for the current fiscal year. If the Legislative Analyst reports that the state budget is not balanced, the Legislature shall pass and send to the Governor a bill or bills to balance the state budget within 15 days of the issuance of that report, and if the Legislature does not do so the Governor may reduce appropriations in the enacted budget bill as necessary to balance the budget.
(6) As used in this section, a balanced state budget is an enacted budget bill that meets the requirement set forth in subdivision (f).
(7) Until the budget bill has been enacted, the Legislature shall not send to the Governor for consideration any bill appropriating funds for expenditure during the fiscal year for which the budget bill is to be enacted, except emergency bills recommended by the Governor or appropriations for the salaries and expenses of the Legislature.
(d) No bill except the budget bill may contain more than one item of appropriation, and that for one certain, expressed purpose. Appropriations from the General Fund of the State, except appropriations for the public schools or appropriations made in the budget bill, are void unless passed in each house by rollcall vote entered in the journal, two-thirds of the membership concurring.
(e) The Legislature may control the submission, approval, and enforcement of budgets and the filing of claims for all state agencies.
(f) For the 2004–05 fiscal year, or any subsequent fiscal year, the Legislature may not send to the Governor for consideration, nor may the Governor sign into law, a budget bill that would appropriate from the General Fund, for that fiscal year, a total amount that, when combined with all appropriations from the General Fund for that fiscal year made as of the date of the budget bill’s passage, and the amount of any General Fund moneys transferred to the Budget Stabilization Account for that fiscal year pursuant to Section 20 of Article XVI, exceeds General Fund revenues for that fiscal year estimated as of the date of the budget bill’s passage. That estimate of General Fund revenues shall be set forth in the budget bill passed by the Legislature.

Second—

 That Section 3 of Article XIII A thereof is amended to read:

Section 3.
 From and after the effective date of this article, any changes Any increases in state taxes enacted for the purpose of increasing revenues collected pursuant thereto or state fee whether by increased rates, or changes in methods of computation, or a change in the persons subject to the state tax or state fee must be imposed by an Act passed by not less than two-thirds of all members elected to each of the two houses of the Legislature, except that no new ad valorem taxes on real property, or sales or transaction taxes on the sales of real property may be imposed.

Third—

 That Section 6 of Article XIII B thereof is amended to read:

SEC. 6.
 (a) Whenever the Legislature or any state agency mandates a new program or higher level of service on any local government, the State shall provide local government need not provide the new program or higher level of service until it has received from the State a subvention of funds to reimburse that local government for the costs of the program or increased level of service, except that the Legislature may, but need not, provide a subvention of funds for the following mandates: service.

(1)Legislative mandates requested by the local agency affected.

(2)Legislation defining a new crime or changing an existing definition of a crime.

(3)Legislative mandates enacted prior to January 1, 1975, or executive orders or regulations initially implementing legislation enacted prior to January 1, 1975.

(b)(1)Except as provided in paragraph (2), for the 2005–06 fiscal year and every subsequent fiscal year, for a mandate for which the costs of a local government claimant have been determined in a preceding fiscal year to be payable by the State pursuant to law, the Legislature shall either appropriate, in the annual Budget Act, the full payable amount that has not been previously paid, or suspend the operation of the mandate for the fiscal year for which the annual Budget Act is applicable in a manner prescribed by law.

(2)Payable claims for costs incurred prior to the 2004–05 fiscal year that have not been paid prior to the 2005–06 fiscal year may be paid over a term of years, as prescribed by law.

(3)Ad valorem property tax revenues shall not be used to reimburse a local government for the costs of a new program or higher level of service.

(4)This subdivision applies to a mandate only as it affects a city, county, city and county, or special district.

(5)This subdivision shall not apply to a requirement to provide or recognize any procedural or substantive protection, right, benefit, or employment status of any local government employee or retiree, or of any local government employee organization, that arises from, affects, or directly relates to future, current, or past local government employment and that constitutes a mandate subject to this section.

(c)

(b) A mandated new program or higher level of service includes a transfer by the Legislature from the State to cities, counties, cities and counties, or special districts of complete or partial financial responsibility for a required program for which the State previously had complete or partial financial responsibility.