BILL NUMBER: AB 289	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Nestande

                        FEBRUARY 11, 2013

   An act to amend Section 13337 of the Government Code, relating to
state fiscal affairs.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 289, as introduced, Nestande. State Budget: key liabilities.
   Existing law imposes various duties and responsibilities on the
Governor and the Department of Finance in connection with the
preparation and submission of the annual State Budget to the
Legislature at each regular session thereof, including, among other
things, the requirement to include a complete plan of all proposed
expenditures and estimated revenues for the ensuing fiscal year.
   This bill additionally would require the Governor, or the
Department of Finance acting on his or her behalf, at the time the
Governor's Budget is submitted to the Legislature, to submit
specified information to the Legislature, including a list of the
state's key liabilities relating to debt, infrastructure, retirement,
and other liabilities that will affect the state's financial health
in the future.
   The bill also would require the Governor's Budget to include a
section that specifies the percentages and amounts of General Fund
revenues that must be set aside and applied toward paying off key
liabilities. The bill further would restrict the Governor from
including in the budget as estimated revenues those revenues
estimated to be generated from laws, programs, or executive actions
not in effect or effectuated at the time the budget is submitted to
the Legislature.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 13337 of the Government Code is amended to
read:
   13337.  (a)  (1)    The budget required by the
 State   California  Constitution to be
submitted by the Governor at each regular session of the Legislature
shall be submitted within the first 10 days thereof and shall contain
a complete plan and itemized statement of all proposed expenditures
of the state provided by existing law or recommended by him or her,
and all of its institutions, departments, boards, bureaus,
commissions, officers, employees, and other agencies, and of all
estimated revenues, for the ensuing fiscal year, together with a
comparison, as to each item of revenues and expenditures, with the
actual revenues and expenditures for the last completed fiscal year,
the estimated revenues, and expenditures for the existing fiscal year
and the budgeted revenue and expenditures for the next fiscal year.

   (2) Estimated revenues, for purposes of paragraph (1), shall not
include revenues estimated to be generated from laws, programs, or
executive actions not in effect or effectuated at the time the budget
is submitted to the Legislature. 
   (b) The budget shall  , in accordance  
include   the following: 
    (1)     In accordance  with Chapter 2
(commencing with Section 41200) of Part 24  of Division 3 of
Title 2  of the Education Code,  include  a
section that specifies the percentages and amounts of General Fund
revenues that must be set aside and applied for the support of school
districts, as defined in Section 41302.5  of the Education Code
 , and community college districts, as required by subdivision
(b) of Section 8 of Article XVI of the California Constitution. 
   (2) A section that specifies the percentages and amounts of
General Fund revenues that must be set aside and applied toward
paying off the key liabilities listed in paragraph (3) of subdivision
(i). 
   (c) The Governor, or the Department of Finance acting on his or
her behalf, shall make appropriate changes in the budget request to
reflect any modification in the organization or functions of state
government proposed under Article 7.5 (commencing with Section 12080)
of Chapter 1  of Part 2  prior to the passage of the
budget.
   (d) The Governor's Budget shall be prepared in accordance with
guidelines and instructions adopted by the Department of Finance.
   (e) In order to provide meaningful comparisons, the Governor's
Budget shall be prepared in such a manner that the information
presented provides for such comparisons between the fiscal years.
   (f) The Department of Finance shall submit to the committee in
each house which considers appropriations and to the Joint
Legislative Budget Committee copies of budget material submitted to
it by agencies pursuant to the provisions of Article 2 (commencing
with Section 13320).
   (g) The Governor's Budget shall also include a coding structure
which indicates for each budget entity the categorization of
expenditures and revenues.
   (h) Prior to the submission of the Governor's Budget to the
Legislature, the Department of Finance may conduct public hearings
regarding any portion of any budget.
   (i) The Governor, or the Department of Finance acting on his or
her behalf, shall, at the  same  time the Governor's
Budget is submitted to the Legislature, submit  the following
 to the Legislature  copies of the material for the
purposes of subdivision (j).   :  
   (1) A list of loans made to the General Fund and a summary of each
loan, including its balance and the due date for repayment of the
loan.  
   (2) A list of General Fund obligations to pay deferred or
suspended expenditures or to transfer funds to any special fund or
account, and a summary of each obligation, including the amount of
the obligation and the due date for the payment or transfer. 

   (3) A list and summary of the state's key liabilities relating to
debt, infrastructure, retirement, and other liabilities that will
affect the state's financial health in the future. 
   (j) The Department of Finance shall develop a fiscal information
system which will provide timely and uniform fiscal data needed to
formulate and monitor the budget, including, but not limited to,
 on-line   online  inquiry capacity and the
ability to simulate budget expenditures and forecast revenues. This
system may include, among other things, data on encumbrances and
expenditures by line item, governmental unit, and fund source. The
system shall also include expenditures and encumbrances by program,
as required. This system shall also include a coding structure which
indicates the categorization of expenditures and revenues. This
system and the data shall be available to both the legislative and
executive branches. The system may contain separate programs
accessible by only one branch, designed to provide for distinct
application of the data, but the basic system data shall be available
on an equal basis to both the legislative and executive branches of
government.