California Budget Bill Unique Provisions – Part VI

California’s state budget is the largest in the nation and also represents the largest bill in terms of page length and number of provisions. While its provisions are too numerous to cover, there are a number of them that are unique and readers should be aware of. This article is the sixth in a series.

So what are some of these unique provisions of the California budget law?

Approval of reassignment and return

This section deals with the necessary approval of the reallocation and return of funds in the California budget. Provides a statement of legislative intent regarding flexibility in granting administrative approval for items to be reallocated or transferred to an appropriate fund. Alternatives are available. The following is an example of this language from the state budget bill:

SEC. 20:00.

(a) It is the intent of the Legislature in enacting this section to provide flexibility for administrative approval of reallocations and returns within individual appropriations items in those cases where the action is necessary to effectively and cost-effectively carry out the programs, projects, and functions funded by this Act or any prior appropriation . No modifications shall be permitted under this section that either eliminate any program, project, or feature, except when it is determined that implementation is no longer feasible in light of changing circumstances or new information, or to create any new program, project or function. This process cannot be used for Department of Corrections and Rehabilitation.

(b) The chief financial officer may extend the date of availability for encumbrances or expenditures, any appropriation or reappropriation, or part thereof, from the funds referred to in subsection (f) not later than three years after the last date. the item is currently available for encumbrance if the CFO determines that the department, office, or other state entity needs more time to complete the original purpose of the appropriation.

Entities receiving lottery funds

This section imposes certain requirements on those state entities that receive funds from the state lottery. The following is an example of this language from the state budget bill:

SEC. 24.60.

Each state entity that receives lottery funds shall report annually to the Governor and the Legislature, no later than May 15, the amount of lottery funds received by the entity and the purposes for which such funds were expended in the previous fiscal year, including administrative costs. The Department of Education reports for K–12 entities. Where applicable, the accounting entity shall also report the amount of lottery funds received based on the average daily attendance of adult education (ADA) and the amount of lottery funds spent on adult education.

Approving Plan Transfers

This section deals with the necessary approval of transfers of funds under the plan in the California budget. Provides a statement of legislative intent regarding flexibility in granting administrative consent for intraplan transfers. Alternatives are available. The following is an example of this language from the state budget bill:

SEC. 26:00.

(a) It is the intent of the Legislature in enacting this section to provide flexibility for the administrative approval of transfers within individual budget items in those cases where the transfers are necessary for the efficient and cost-effective implementation of programs. , projects and functions funded by this Act. No transfer shall be permitted under this section to eliminate any program, project, or function, except when it is determined that implementation is no longer feasible in light of changing circumstances or new information, or to create any new program, project, or function .

(b) The chief financial officer may, upon application of the officer, department, division, bureau, board, commission, or other agency to which an amount is appropriated by this act, authorize an increase in the amount available for expenditure in any plan established for such item by transfer from any other designated program, project or function under the same plan. No transfer may be made under this section to fund any capital expenditure purpose, whether budgeted in capital expenditure or in a local aid allocation.

(c) Transfers of amounts available for expenditure on a program, project, or function designated on any line of any schedule established for that item within the schedule, by transfer from any other designated program, project, or function within the same schedule shall not exceed during any fiscal year year:

(1) Twenty percent of the amount so scheduled in this item for those items created by this act that are $2,000,000 or less.

(2) $400,000 of the amount so provided in this item for those items made by this act greater than $2,000,000 but equal to or less than $4,000,000.

(3) Ten percent of the amount so scheduled in this item for those items created by this act which are in excess of $4,000,000.

(4) The Ministry of Transport’s highway program is limited to changing the timetable by 10 percent.

(d) Any transfer in excess of $200,000 may be approved under this section not earlier than 30 days after the chairs of the committees in each house of the Legislature considering the appropriations and the chairman of the committee have been notified in writing that it is necessary. the Joint Legislative Appropriations Committee or not sooner than any shorter period after such notice may be determined in each case by the Chairman of the Joint Committee or his designee.

(e) Any transfer in excess of the limitations set forth in subsection (c) may be authorized no earlier than 30 days after written notice of the need to exceed the limitations has been served on the chairmen of the committees in each house of the Legislature. consider the items and the Chairman of the Joint Legislative Appropriations Committee, or no sooner than such shorter time after such notice as the Chairman of the Joint Committee or his designee may determine in each case.

Approval of augmentations

This section deals with the necessary approval of augmentations to spend unexpected federal funds in the California budget. Provides a statement of legislative intent regarding flexibility in granting administrative approval for the expenditure of unexpected federal or other non-state funds. Alternatives are available. The following is an example of this language from the state budget bill:

SEC. 28:00.

(a) The intent of the Legislature in enacting this section is to provide flexibility for administrative approval of increases in expenditures from unexpected federal funds or other nonstate funds in cases that meet the criteria set forth in this section. However, this section does not provide an alternative budget process, and proposals for additional spending should normally be considered in the annual state budget or other state legislation. Specifically, through the process set forth in this section, extensions should not be submitted for items that the Administration should have known to include in its 2022-2023 budget plan. Extensions of appropriations that can be deferred to fiscal year 2023–24 should be included in the budget proposals for fiscal year 2023–24.

(b) The director of finance may authorize an increase in the amount available for expenditure on any program, project, or function in the schedule of any item in this act or any other program, project, or function equal to an amount of any additional , windfall funds estimated by the director to be received by the state during fiscal year 2022-2023 from any local or federal government agency or from any other non-state source, provided that the additional funding meets all of the following requirements:

(1) The funds will be spent for a purpose that is in accordance with state law.

(2) Funds are made available to the state under conditions that allow them to be used only for the specified purpose, whereby additional expenditures proposed under this section would apply to this specified funding purpose.

(3) Acceptance of additional funding does not create an obligation for the state to commit or spend new state funds for any program or purpose.

(4) There is a need to expend additional funds during fiscal year 2022-2023.

(c) In order to receive consideration for an extension, an agency must either (1) notify the Director within 45 days of receiving official notice of the availability of additional, unexpected funds, or (2) explain in writing to the Director why it is doing so. the notice was impracticable or impracticable. In either case, the recipient agency will provide the Director with a copy of the official notice of availability of funds.

(d) The director may also limit any program, project, or function whenever the director determines that the funds to be received will be less than the amount contemplated by the plan.

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