LEGISLATIVE COUNSEL'S DIGEST


SB 30, as amended, Ducheny. Budget Act of 2009.
Human service programs: CalWORKs: county share of cost.

This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2009.
(1) The Vehicle License Fee (VLF) Law establishes, in lieu of any
ad valorem property tax upon vehicles, an annual license fee upon any
vehicle subject to registration in this state. The California
Constitution authorizes the Legislature to deposit an amount of
revenues derived from a specified portion of the vehicle license fee
rate into the Local Revenue Fund, for allocation to cities, counties,
and cities and counties. Existing law requires the Controller to
deposit 74.9% of the revenues collected under the VLF Law in the
State Treasury to the credit of the Local Revenue Fund.
This bill would require, on and after July 1, 2009, that 88.6% of
those revenues be deposited into the Local Revenue Fund.
Existing law requires the amount appropriated by the Legislature
for the use of the Department of Motor Vehicles and the Franchise Tax
Board in implementing the VLF Law to be transferred from the Motor
Vehicle License Fee Account in the Transportation Tax Fund to the
Motor Vehicle Account in the State Transportation Fund.
This bill would require, for the 2009-10 fiscal year and each
fiscal year thereafter, that this amount be equal to 1.98% of the
total amount of money collected for applications accepted under the
VLF Law for the fiscal year.
(2) Existing federal law provides for allocation of federal funds
through the federal Temporary Assistance for Needy Families (TANF)
block grant program to eligible states, with California's version of
this program being known as the California Work Opportunity and
Responsibility to Kids (CalWORKs) program. Under the CalWORKs program
each county provides cash assistance and other benefits to qualified
low-income families and individuals who meet specified eligibility
criteria. Existing law continually appropriates money from the
General Fund to pay for a share of aid grant costs under the CalWORKs
program.
Existing law provides for the establishment of the Sales Tax
Account in the continuously appropriated Local Revenue Fund for the
allocation of sales and use tax revenues to local government, which
includes, among others, a Social Services Subaccount. Under existing
law, cities and counties that receive funds from the Local Revenue
Fund are required to establish and maintain a local health and
welfare trust fund comprised of specified accounts, including a
social services account.
Existing law requires the Controller, for the 1992-93 fiscal year
and fiscal years thereafter, to make monthly deposits of the sales
tax proceeds from revenues deposited to the credit of the Local
Revenue Fund, to the subaccounts of the Sales Tax Account, as
specified.
Existing law further contains requirements for monthly allocations
of these funds to each county's local health and welfare trust fund
subaccounts.
This bill would create a new subaccount, the CalWORKs Subaccount,
in the Sales Tax Account of the Local Revenue Fund, from which moneys
would be allocated to counties for the purpose of funding a portion
of the counties' share of aid grant costs under the CalWORKs program.
The bill would require counties to create a CalWORKs account within
their local health and welfare trust funds.
This bill would require moneys in the CalWORKs Subaccount to be
deposited into the county CalWORKs accounts, and would require the
Department of Finance to annually develop a monthly allocation
schedule to be used by the Controller in making each county's
allocation of funds from the CalWORKs Subaccount, as specified.

This bill, for the 2009-10 fiscal year, would require $300,000,000
of the funds in the Sales Tax Account of the Local Revenue Fund to
be allocated to the CalWORKS Subaccount in that account, before
making any allocations to the other subaccounts in that fund. The
bill would reduce the state's share of costs for CalWORKs aid grant
costs to 89% to reflect this allocation. For subsequent fiscal years,
an amount of funds from the Sales Tax Account would be required, in
accordance with a prescribed formula, to be allocated to the CalWORKs
Subaccount, prior to any allocations being made to other subaccounts
in the Sales Tax Account, for allocation to counties to pay for an
adjustment in the counties' share of aid grant costs, required to be
made pursuant to the bill, that would reflect the amount of this
allocation.
Because the reduction in the percentage of the state CalWORKs
contribution would result in an increase in the required county
contribution, this bill would impose a state-mandated local program.

By increasing deposits into the continuously appropriated Local
Revenue Fund, the bill would make an appropriation.
The
(3) The California Constitution
authorizes the Governor to declare a fiscal emergency and to call the
Legislature into special session for that purpose. The Governor
issued a proclamation declaring a fiscal emergency, and calling a
special session for this purpose, on December 19, 2008.
This bill would state that it addresses the fiscal emergency
declared by the Governor by proclamation issued on December 19, 2008,
pursuant to the California Constitution.
(4) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.

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Comments/questions on SBX3 30 (Ducheny): Human service programs: CalWORKs: county share of cost.