Today, the Senate Local Government Committee approved the
August 20 version of AB 155 by Assembly Member Tony Mendoza
on a 3-1 vote. This bill now requires that local agencies
wishing to seek Chapter 9 bankruptcy protection either receive
approval from the California Debt and Investment Advisory
Commission (CDIAC) or seek a review of its financial position
from the State Auditor. Either way, local agencies would
face delays prior to entering federal court. As a result,
CSAC is m
On Tuesday, August 24, the Senate Local Government Committee will
hear the newly amended AB 155. The bill was amended last
Friday to authorize a local agency to seek Chapter 9 federal
bankruptcy protection under the following conditions:
With the permission of the California Debt and Investment
Advisory Committee (CDIAC) and under its terms and
conditions; OR
By overriding the decision of CDIAC; OR
Upon completion of a review of its financial position by the
State Auditor.
This new option would authorize a local agency to request a
financial review by the State Auditor. Once that rev
Today, the Department of Finance, State Controller’s Office, and
State Treasurer’s Office jointly determined the need to exercise
the authority available to them under Government Code Section
16325.5(e) and move the 90-day deferral of social services
payments to counties from October 2010 to September 2010.
This means the payments will eventually be made in December
2010. The three offices determined that the action must be
taken due to the late state budget and the need to preserve cash.
Counties will recall this language was approved as a component of
budget discussions earlier this year
Just like that, arguably the most hated bill of the 2009-10
legislative session is revived. Mere moments ago, Assembly
Bill 155 by Assembly Member Tony Mendoza was removed from
the Senate Inactive File by Senator Mark DeSaulnier and now
awaits a vote by the Senate Floor. Counties will recall
that this bill requires a local agency wishing to seek Chapter 9
bankruptcy protection to secure the prior approval of the
California Debt and Investment Advisory Commission (CDIAC).
CSAC has shared much information with you over the past
months about our serious problems with this bill and have asked
At a Press Club luncheon yesterday, State Controller John Chiang
estimated that he would begin issuing IOUs in “two to four
weeks.” You probably remember that the Controller issued hundreds
of thousands of IOUs last year about this time, when the budget
adopted in February had gone severely sideways. This year, there
isn’t any budget in place at all, sideways, diagonal, or
inside-out.
Six months ago we started this new venture called “The County
Voice.” It’s grown significantly in terms of content and
readership during that time span. Our blog is now a vital
and timely communications tool for CSAC.
The content has been as varied as the 58 counties we represent.
State Controller John Chiang today released his monthly report of
state General Fund receipts and disbursements. For the month of
July, revenues fell below the Governor’s estimates by 1.9% (-$91
million). The Controller took the opportunity to impress upon the
Governor and legislators the importance of quickly enacting a
realistic budget.
Controller Chiang pointed out that, while the state can maintain
“safe” cash levels into October by deferring a major payment to
schools, he will have to begin issuing IOUs by late August or
early September to manage cash.
The House of Representatives, back in Washington for an
unprecedented summer recess vote, adopted a six-month extension
of the enhanced Federal Medical Assistance Percentages (FMAP)
this afternoon in a 247 to 161 vote.
Assembly Speaker John Perez and Senate President pro Tempore
Darrell Steinberg announced their revised “California Jobs
Budget” this afternoon. The plan reflects the Assembly
Speaker’s focus on saving jobs and the Pro Tem’s interest in
restructuring the provision and funding of state services.
The package includes a mix of cuts, new revenues, restructuring,
tax reductions, and reforms that is expected to be adopted by the
Budget Conference Committee in meetings in the next few days.
Counties interested in the details of the proposal can visit
Senator Steinberg’s website for the
CSAC, along with a broad coalition of associations and child
welfare groups, is working to bring Child Welfare and Foster Care
Services back from the brink after the Governor vetoed $80
million in CWS funding last fall.
Counties can help give abused and neglected children a hand up by
participating in the coalition’s quick and easy electronic
postcard campaign.
Since its inception in 2009, the CSAC Institute for Excellence in
County Government has made it a priority to attract quality
faculty to teach our courses. At no time is this more apparent
than in our upcoming August courses, which focus on three timely
subjects: pensions, social services and county finances. The
course instructors read like a “who’s who” of issue
experts.
It may be near 100 degrees in Sacramento, but the rain seems to
be falling on the water bond parade, as lawmakers attempt to
delay the measure until the 2012 ballot.
Both Gov. Schwarzenegger and Senate President Pro Tem
Darrell Steinberg have urged the Legislature to delay the $11
billion general-obligation bond package, originally slated for
the 2010 ballot. It’s a feat that would take a two-thirds vote of
both legislative houses.
Bond supporters are concerned that voters, wearied by a bad
economy and the state’s chronic budget crisis, might reject the
bond this November.
In a previous
blog, we reflected on a significant policy change proposed in
SB 1399 (Leno), which would establish a medical parole program
for the state’s most seriously ill prisoners.
You’ve come to rely on CSAC as a source of thorough, factual
information regarding countless budget and policy topics.
We’ve faithfully filled your inboxes with weekly Legislative
Bulletins and Around Our Counties, ensuring that
you are always provided with the most up-to-date knowledge on
what is happening at both the county and state levels.
We are excited to continue this service by officially launching
The CSAC Bulletin, an easily-navigable combination
of our
In a move redolent of past accounting gimmicks that saved the
state money, the Budget Conference Committee ended an era
yesterday when it voted to end state reimbursements to local
agencies for following parts of the Brown Act. They unanimously
approved an LAO plan that instead makes certain parts of the
Brown Act more like “safe harbor” provisions for complying with
Proposition 59.
The Federal Housing Finance Agency (FHFA) seems to have pulled
the plug on a popular energy financing program that would have
allowed homeowners to finance solar panels and other energy
improvements through an assessment repaid through their property
tax bills.
In an official statement released yesterday, the Federal
Housing Finance Agency (FHFA) reaffirmed its concerns with
Property Assessed Clean Energy financing programs, stating that
these programs, “present significant safety and soundness
concerns that must be addressed by Fannie Mae, Freddie Mac and
the Federal Home Loan Banks.” In i
One part of CSAC’s mission is to provide our membership with as
much information and knowledge as possible surrounding county
government. While we have traditionally done so through our major
meeting workshops, policy committee meetings and the New
Supervisors Institute, CSAC launched a new endeavor just 16
months ago: The CSAC
Institute for Excellence in County Government.
Last November, the Institute reached its first milestone: our
first five individuals were honored with Institute credentials.
We received an interesting comment last night to our June
9th posting,
“One Vote… Just One Single Vote.” It came from Sierra
County supervisorial candidate Karen Rickman.
If our counties have been wondering what their portion of the
Williamson
Act subvention allocation is going to be for 2009-10, their
wait is over. Sent yesterday by the State Controller’s
Office, the checks are in the mail. But don’t hold your
breath; 22 counties and three cities are receiving checks for
under $10.00, six of these are actually getting a check for under
$1.00. And shockingly, four are receiving checks for under 10
cents! Orange County and the City of Camarillo are both
getting checks for one penny.
