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State Budget Signed: CLSA Funding Details
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June 30, 2016



FROM:         Mike Dillon and Christina DiCaro, CLA Lobbyists

RE:               News From the Capitol



Monday afternoon Governor Jerry Brown signed into law the 2016-17 State Budget and corresponding Budget “trailer bills,” both of which contain new funding for the California Library Services Act.  The Governor issued a press release after signing the Budget bill, SB 826-Leno stating, “This solid budget makes responsible investments in California and sets aside billions of dollars to prepare for the next recession.”  Due to very collaborative negotiations between the legislature and the Governor, when the Governor signed the Budget bill he did not “blue pencil” or make targeted reductions to any of the programs in SB 826. 


SB 826:  the 2016-17 Budget Bill

This measure contains $1.8 million in new, ongoing funding for the California Library Services Act.  This amount is added to the current baseline funding in the Act, which stands at $1.8 million -- for a new total of $3.6 million.  This funding continues to restore some of the cuts made to this program during the recent Recession.


SB 1602-Committee on Budget:  “Trailer bill” pertaining to Higher Education

This measure is approximately 90 pages in length and contains numerous provisions related to higher education and other matters, such as the State Library.  Specifically, SB 1602 includes the Governor’s proposal to provide $3 million in “one time funding” (meaning that it must be spent during the 2016-17 Budget year) to encourage the Systems within the California Library Services Act to participate in, or develop innovative programs for, digital delivery and resource sharing.  Throughout the Budget process, CLA strongly supported the Governor’s proposal relative to the $3 million, as well as the $1.8 million mentioned above.  We were pleased when both the Assembly and the Senate Budget Subcommittees adopted the proposals by unanimous votes.   Additionally, CLA and the Department of Finance worked together to develop language in SB 1602 that will make it very clear that print “and digital” materials are eligible for funding under the Act, as there had been some discrepancy about that issue within the law. 

Finally, a report on the use of the funding will be due to the legislature on or before September 1, 2017.  The new language for the $3,000,000 appropriation reads as follows:

“SEC. 34.  (a)  The sum of three million dollars ($3,000,000) is hereby appropriated from the General Fund to the California State Library for allocation pursuant to this act. 

(b) (1)  On or before September 1, 2017, the California State Library shall submit a report to the Director of Finance and the Legislature about the use of the moneys described in subdivision (a).  The report shall include all of the following:

(A)  A summary of the grants awarded, including grant amounts. 

(B)  A description of the projects.

(C)  A description of any additional funding benefitting the projects.

(D)  Information about the progress of grantees toward establishing regional or statewide E-resource platforms.

(E)  Information, where applicable, about the utilization of shared E-resources resulting from the grants.

(F)  A description, where applicable, of any other funding benefitting the projects.

(2)  The report submitted pursuant to paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.”



Yesterday the Assembly Budget Committee, Assembly Education Committee, and Senate Budget Committee held a hearing on an initiative called the “Tax Extension to Fund Education and Health Care.”  The legislature is required by law to hold hearings on all initiatives that are placed on the ballot by the public, versus those that are developed through the legislative process.  The State’s Legislative Analyst’s Office is also required to prepare an impartial analysis, which it is currently in the process of completing. 

The “Tax Extension to Fund Education and Health Care” is an effort by teachers, the health care industry, and related union groups to continue the increase in the income tax rates on high-income earners that occurred with the passage of Proposition 30 in 2012.  The initiative would not continue the sales tax portion of Proposition 30.   According to a representative from the Legislative Analyst’s Office at yesterday’s hearing, they estimate that the continuation of the income tax portion for 12 more years would result in approximately $4 billion to $9 billion annually.  The wide margin for the estimate is due to the fact that the LAO cautions that a shaky economy or large losses in the stock market could play a role in determining how much revenue can be generated from the income tax.  Most of the funding would be applied to the Proposition 98 formula, which funds K-12 schools and community colleges.  There is a potential that there could be some increased funding for Medi-Cal, depending on how the Proposition 98 funding is calculated, in its highly complex manner, during a particular year. 

Proponents attending the hearing included representatives of the California Teachers Association and the California Hospital Association.  Superintendent of Public Instruction Tom Torlakson also spoke in support of the initiative.  Testifying against the initiative was the National Federation of Independent Business, who argued that the state currently has one of the highest income and sales taxes in the country. 

The Committees took no action on the initiative, as the hearing was informational only. 



After concluding lengthy Floor sessions in both the Assembly and Senate today, the Legislature has departed for their month-long summer break.  They will return to Sacramento on August 1 in order to close out the remainder of the 2015-16 session.  During the month of August, fiscal committees will hear hundreds of bills for the first two weeks, and then bills will be sent to the Floors for the final two weeks, to be debated before they are sent to Governor Brown for action.  The legislature will officially adjourn the 2015-16 session on August 31.