Existing law requires the board of supervisors of a county to approve a recommended budget, including revisions, on or before June 30 of each year, as specified.

This bill would authorize the board of supervisors of a county to direct the publication of a recommended budget for the purpose of conducting a budget hearing without authorizing spending pursuant to the recommended budget until the budget is adopted. The bill would require the board of supervisors to follow specific procedures for the adoption of a budget under these provisions, including, among other requirements, conducting a hearing on the recommended budget on or before June 20 and adopting the budget on or before June 30 of each year in which the board elects to utilize these provisions.

Existing law requires the board of supervisors of a county to approve a recommended budget, including revisions, on or before June 30 of each year, as specified.

This bill would authorize the board of supervisors of a county to direct the publication of a recommended budget for the purpose of conducting a budget hearing without authorizing spending pursuant to the recommended budget until the budget is adopted. The bill would require the board of supervisors to follow specific procedures for the adoption of a budget under these provisions, including, among other requirements, conducting a hearing on the recommended budget on or before June 20 and adopting the budget on or before June 30 of each year in which the board elects to utilize these provisions.

Existing law requires the board of supervisors of a county to approve a recommended budget, including revisions, on or before June 30 of each year, as specified.

This bill would authorize the board of supervisors of a county to direct the publication of a recommended budget for the purpose of conducting a budget hearing without authorizing spending pursuant to the recommended budget until the budget is adopted. The bill would require the board of supervisors to follow specific procedures for the adoption of a budget under these provisions, including including, among other requirements, conducting a hearing on the recommended budget on or before June 20 and adopting the budget on or before June 30 of each year in which the board elects to utilize these provisions.

Existing law requires the board of supervisors of a county to approve a recommended budget, including revisions, on or before June 30 of each year, as specified.

This bill would provide that in any year in which authorize the board of supervisors of a county adopts a budget on or before June 30, the board is not required to approve a recommended budget. to direct the publication of a recommended budget for the purpose of conducting a budget hearing without authorizing spending pursuant to the recommended budget until the budget is adopted. The bill would require the board of supervisors to follow specific procedures for the adoption of a budget under these provisions, including conducting a hearing on the recommended budget on or before June 20 and adopting the budget on or before June 30 of each year in which the board elects to utilize these provisions.

Existing law requires the board of supervisors of a county to approve a recommended budget, including revisions, on or before June 30 of each year, as specified.

This bill would provide that in any year in which the board of supervisors of a county adopts a budget on or before June 30, the board is not required to approve a recommended budget.

Date of Hearing: June 15, 2016

ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT

Susan Talamantes Eggman, Chair

SBPCA Bill Id:SB 1315

Author:(Bates) – As Amended Ver:April 7, 2016

SENATE VOTE: 37-0

SUBJECT: Counties: budgets.

SUMMARY: Authorizes an alternative budget process for counties that adopt a final budget by June 30. Specifically, this bill:

1. Allows a county board of supervisors (BOS) to direct the publication of a recommended budget for the purpose of conducting a budget hearing without authorizing spending, pursuant to the recommended budget until the budget is adopted, subject to the following conditions:
   1. On or before May 30, the BOS shall make the recommended budget available to the public;
   2. On or before May 30, the BOS shall publish a notice stating that the recommended budget is available to members of the public, and that the BOS will conduct a public hearing on the recommended budget, including the time and place of that hearing;
   3. On or before June 20, but not fewer than 10 days after the recommended budget is made available to the public, the BOS shall conduct the public hearing on the recommended budget; and,
   4. After the conclusion of the hearing on the recommended budget, and not later than June 30, the BOS shall adopt the budget by resolution, pursuant to the requirements of the County Budget Act that govern the adoption of a final budget, as specified.
2. Requires, on or before May 30 of each year in which a BOS utilizes the alternative budget procedures outlined above, the BOS to set forth a proposed budget adoption schedule that complies with the requirements of 1), above.

EXISTING LAW requires counties to use a two-step process when adopting an annual budget: a BOS must annually approve a recommended budget on or before June 30, which provides interim authority for county government spending during the period of time after the fiscal year begins July 1 and before the BOS adopts a final budget, which must occur by October 2.

FISCAL EFFECT: None

COMMENTS:

1. Bill Summary. This bill provides an alternative procedure counties may use in their budget process. It allows counties to direct the publication of a recommended budget in order to hold a budget hearing without authorizing spending pursuant to the recommended budget until a final budget is adopted. Counties that elect this procedure must meet the following conditions:
   1. Make the recommended budget available to the public by May 30;
   2. Publish a notice by May 30 stating that the recommended budget is available to members of the public, and that the BOS will conduct a public hearing on the recommended budget, including the time and place of that hearing;
   3. Conduct a public hearing on the recommended budget by June 20, but not fewer than
      10 days after the recommended budget is made available to the public; and,
   4. Adopt the budget by resolution, pursuant to the County Budget Act, after the public hearing on the recommended budget and no later than June 30.

Counties that elect this procedure must also set forth a proposed budget adoption schedule that complies with the requirements outlined above.

This bill is sponsored by the County of Orange.

1. Author's Statement. According to the author, "As a result of existing law, the Board of Supervisors must adopt the CEO’s recommended budget before the budget hearing, hold the budget hearing, and then adopt the final budget. While this process may work for some counties who do not adopt their budget until after June 30th, the current state process places the Board in jeopardy of voting for items they may later oppose. Additionally, the Board is left with no option to direct publication of a recommended budget before initial review rather than a required vote. Streamlining the county budget procedures is needed, while not removing a Board’s authority or responsibility to consider and approve a county’s budget as required under the County Budget Act.
2. Background. Current law, the County Budget Act, requires counties to approve a recommended budget by June 30 to govern county spending until a final budget is approved no later than October 2. This process works for most counties. However, some counties approve their final budget before June 30. In these cases, the requirement to formally approve a recommended budget can be redundant and confusing. This bill offers an optional, alternative procedure for counties that adopt their final budget no later than June 30.
3. Arguments in Support. The County of Orange, sponsor of this bill, writes, "Government Code Section 29064 of the County Budget Act requires a board of supervisors to first approve by majority vote a recommended budget in order to set a 'baseline' before considering, revising and approving a final budget. This bill gives a board the option to direct publication of a recommended budget before initial review rather than a required vote, which may provide counties with the flexibility to ultimately streamline county budget procedures. Nothing in this bill removes a board's authority or responsibility to consider and approve a county's budget as required under the County Budget Act."
4. Arguments in Opposition. None on file.

REGISTERED SUPPORT / OPPOSITION:

Support

County of Orange [SPONSOR]

California State Association of Counties

Urban Counties of California

Opposition

None on file

Analysis Prepared by: Angela Mapp / L. GOV. / (916) 319-3958

 THIRD READING  

Bill No: SB 1315

Author:

:

Vote:

SENATE GOVERNANCE & FIN. COMMITTEE: 6-0, 4/6/16

AYES: Hertzberg, Beall, Hernandez, Lara, Moorlach, Pavley

NO VOTE RECORDED: Nguyen

SUBJECT:

SOURCE: Author

DIGEST: This bill allows a county that fulfills specified requirements to adopt a final budget without first voting on a recommended budget.

ANALYSIS: Existing law requires counties to use a two-step process when adopting an annual budget. Specifically, a board of supervisors must annually approve a recommended budget on or before June 30, which provides interim authority for county government spending during the period of time after the fiscal year begins on July 1 and before the board of supervisors adopts a final budget, which must happen on or before October 2.

This bill:

1. Allows a county, in lieu of approving a recommended budget pursuant to state law, to instead direct the publication of a recommended budget for the purposes of conducting a budget hearing without authorizing spending pursuant to the recommended budget until the budget is adopted.
2. Requires a board of supervisors that chooses to use this bill’s alternative budget adoption procedures to:
   1. Make the recommended budget available to the public on or before May 30.
   2. Publish a notice on or before May 30 stating that the recommended budget is available to members of the public and specifying the time and place at which the board will conduct a public hearing on the recommended budget.
   3. Conduct a public hearing on the budget on or before June 20, but not fewer than 10 days after the recommended budget is made available to the public.
   4. Adopt the budget by resolution pursuant to the requirements of specified statutes governing the adoption of a county budget after the conclusion of the hearing and not later than June 30.
3. Requires that, on or before May 30 of any year in which a board of supervisors uses the budget adoption procedures enacted by this bill, the board must set forth a budget adoption schedule that complies with specified statutory requirements.

Background

A recommended county budget must be submitted to the board of supervisors by either the county administrative officer or county auditor, as designated by the board, on or before June 30 of each year. After receiving the recommended budget, the board must consider it and make any revisions, reductions, or additions. On or before June 30 of each year the board must vote to approve the recommended budget, including the revisions it deems necessary for the purpose of having authority to spend until the budget is adopted. With specified exceptions, a board may make revisions to the recommended budget until a final budget is adopted.

On or before September 8 of each year, state law requires the board to make the recommended budget available to the public and publish a notice in a newspaper stating that:

• The recommended budget documents are available to members of the public.
• On the date stated in the notice, not fewer than 10 days after the recommended budget documents are available, and at a specified time and place, the board will conduct a public hearing on the recommended budget.
• Any member of the public may appear at the hearing and be heard regarding any item in the recommended budget or for the inclusion of additional items.
• All proposals for revisions must be submitted in writing to the clerk of the board of supervisors before the close of the public hearing.

State law specifies the manner in which a board of supervisors must conduct a hearing on the recommended budget and requires that after the hearing’s conclusion, the board must, by resolution, adopt the budget as finally determined not later than October 2 of each year.

Orange County officials assert that it is not necessary to require a county board of supervisors to vote on a recommended budget if the county chooses to adopt a final budget before the July 1 start of the fiscal year. They want the Legislature to allow a county board of supervisors that adopts a final budget on or before June 30 to publish a recommended budget without having to take an official action to approve it.

Comments

Purpose of the bill. In most counties, the recommended budget that a board of supervisors must vote to approve annually by June 30 governs county spending until a final budget is adopted later in the fiscal year. However, if a county adopts a budget before the fiscal year begins, the initial recommended budget never has any practical effect beyond serving as a baseline for the board’s deliberations on, and approval of, a final budget. In counties that don’t rely on a recommended budget for spending authority, it doesn’t make sense to require a separate board of supervisors vote on the recommended budget. This bill creates an alternative budget approval process that allows a county board of supervisors to publish a recommended budget, in lieu of voting on it, if the board adopts a final budget by June 30. This bill does not require any county to alter its current budget process.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT: (Verified 4/7/16)

California State Association of Counties

Orange County

Urban Counties of California

OPPOSITION: (Verified 4/7/16)

None received

Prepared by:

4/8/16 14:09:30

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SENATE COMMITTEE ON GOVERNANCE AND FINANCE

Senator Robert M. Hertzberg, Chair

2015 - 2016 Regular

Counties: budgets

Allows a county that fulfills specified requirements to adopt a final budget without first voting on a recommended budget.

Background

The County Budget Act spells out the procedures that county officials must follow when adopting an annual budget. The Act requires counties to use a two-step process in which a board of supervisors must annually approve a recommended budget on or before June 30. The recommended budget provides interim authority for county government spending during the period of time after the fiscal year begins on July 1 and before the board of supervisors adopts a final budget, which must happen on or before October 2.

The recommended budget must be submitted to the board by either the county administrative officer or county auditor, as designated by the board, on or before June 30 of each year. After receiving the recommended budget, the board must consider it and make any revisions, reductions, or additions. On or before June 30 of each year the board must vote to approve the recommended budget, including the revisions it deems necessary for the purpose of having authority to spend until the budget is adopted. With specified exceptions, a board may make revisions to the recommended budget until a final budget is adopted.

On or before September 8 of each year, state law requires the board to make the recommended budget available to the public and publish a notice in a newspaper stating that:

• The recommended budget documents are available to members of the public.
• On the date stated in the notice, not fewer than 10 days after the recommended budget documents are available, and at a specified time and place, the board will conduct a public hearing on the recommended budget.
• Any member of the public may appear at the hearing and be heard regarding any item in the recommended budget or for the inclusion of additional items.
• All proposals for revisions must be submitted in writing to the clerk of the board of supervisors before the close of the public hearing.

State law specifies the manner in which a board of supervisors must conduct a hearing on the recommended budget and requires that after the hearing’s conclusion, the board must, by resolution, adopt the budget as finally determined not later than October 2 of each year.

Orange County officials assert that it is not necessary to require a county board of supervisors to vote on a recommended budget if the county chooses to adopt a final budget before the July 1 start of the fiscal year. They want the Legislature to allow a county board of supervisors that adopts a final budget on or before June 30 to publish a recommended budget without having to take an official action to approve it.

Proposed Law

Senate Bill 1315 allows a county, in lieu of approving a recommended budget pursuant to state law, to instead direct the publication of a recommended budget for the purposes of conducting a budget hearing without authorizing spending pursuant to the recommended budget until the budget is adopted.

To use the budget adoption procedures authorized by SB 1315, a county board of supervisors must:

• Make the recommended budget available to the public on or before May 30.
• Publish a notice on or before May 30 stating that the recommended budget is available to members of the public and specifying the time and place at which the board will conduct a public hearing on the recommended budget.
• Conduct a public hearing on the budget on or before June 20.
• Adopt the budget by resolution after the conclusion of the hearing and not later than June 30.

SB 1315 requires that, on or before May 30 of any year in which a board of supervisors uses the budget adoption procedures enacted by the bill, the board must set forth a budget adoption schedule that complies with specified statutory requirements.

State Revenue Impact

No estimate.

Comments

1. Purpose of the bill. In most counties, the recommended budget that a board of supervisors must vote to approve annually by June 30 governs county spending until a final budget is adopted later in the fiscal year. However, if a county adopts a budget before the fiscal year begins, the initial recommended budget never has any practical effect beyond serving as a baseline for the board’s deliberations on, and approval of, a final budget. In counties that don’t rely on a recommended budget for spending authority, it doesn’t make sense to require a separate board of supervisors vote on the recommended budget. SB 1315 creates an alternative budget approval process that allows a county board of supervisors to publish a recommended budget, in lieu of voting on it, if the board adopts a final budget by June 30. SB 1315 does not require any county to alter its current budget process, but simply provides an alternative process that counties can choose.

2. Unintended consequences. Although SB 1315 is intended to require a county that uses its alternative procedures to follow existing laws governing the adoption of a final budget. However, its language could be misinterpreted to allow a county to adopt a final budget simply by adopting a resolution, without following most of the requirements that are imposed by current law. To avoid unintended consequences, the Committee may wish to consider amending SB 1315 to specify that, under the alternative process authorized by the bill:

• A hearing on a recommended budget must be held at least ten days after the recommended budget is made available to the public, and
• A final budget must be adopted pursuant to all of the statutory requirements that current law imposes on the adoption of a final budget.

Support and Opposition

(3/31/16)

Support: Orange County; Urban Counties of California.

Opposition: Unknown.

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