State cash resources.

(1) Existing law requires the Controller to draw warrants on the State Treasury in each month of each year in specified amounts for the purpose of funding, among other entities, charter schools and school districts. Existing law defers the drawing of those warrants, as specified, but, commencing with the 2010–11 fiscal year, authorizes the payment of up to $100,000,000 of funds that would otherwise be deferred for the month of June under certain conditions. Existing law limits the amount that a charter school or school district may receive under this provision to no more than the lesser of the total amount of additional funds necessary for the charter school or school district to meet its financial obligations for the month of June, as specified, or the total payments that charter school or school district is entitled to receive in July for the prior fiscal year. This bill, for the 2011–12 fiscal year only, instead would limit the amount that a charter school or school district may receive under this provision to the amount of additional funds necessary for the charter school or school district to meet its financial obligations for the month of June, as specified. (2) Existing law, until September 1, 2012, declares the need for an effective cash management program for the 2010–11 and 2011–12 fiscal years, and exempts activities to implement and carry out the cash management plan from the Administrative Procedure Act. This bill would extend these provisions through the 2012–13 fiscal year. (3) Existing law, for the 2010–11 and 2011–12 fiscal years, prohibits payments made by the state to the University of California and the California State University from exceeding 112 of the annual appropriation for each month from July through April. This bill would extend that prohibition through the 2012–13 fiscal year and would exclude from the prohibition transfers and rental payments that support lease-revenue bonds. (4) Existing law, until September 1, 2012, enacts the cash management plan to authorize the Controller, Treasurer, and Director of Finance to defer General Fund payments for up to 60 or 90 days, as specified, for specific entities, including county offices of education, public schools, and charter schools, subject to certain conditions. Existing law provides a process by which county offices of education, public schools, and charter schools may receive payments that would otherwise be deferred, permits those entities to apply for a hardship waiver even if earlier payments were deferred. Existing law prohibits the total amount of deferrals to school districts, county offices of education, and charter schools from exceeding $2,500,000,000 at any given time and requires the Controller, Treasurer, and Director of Finance to determine and jointly provide a written declaration of the amounts and timing of payment deferrals for the 2010–11 fiscal year to the Legislature and to the State Department of Education, and requires the State Department of Education to provide this information to school districts, county offices of education, and charter schools no later than March 31, 2010. This bill would eliminate the limit of $2,500,000,000 in deferrals to school districts, county offices of education, and charter schools. The bill would, for the 2012–13 fiscal year, provide for deferrals and repayment of those deferrals for kindergarten to grade 12, inclusive, and would provide that a county office of education, a charter school, or a school district may receive scheduled payments from the Controller if payments are deferred and a certification is made on or before June 1, 2012, that the deferral of warrants will result in the county office of education being unable to meet its expenditure obligations for the time period in which payments are deferred, as specified. The bill would also provide a process for a county office of education, a charter school, or a school district to seek a hardship waiver for the March 2013 deferral. The bill would also require payment of the March 2013 deferral to the county offices of education, school districts, and charter schools to be made no later than April 29, 2013. (5) Existing law requires the Controller, subject to the approval of the Department of Finance, to pay the full amount of the apportionment payments for March 2010 for a community college for which the Chancellor of the California Community Colleges determines, in consultation with the Director of Finance, on or before March 15, 2010, that a deferral of payment would present an imminent threat to the fiscal integrity and security of the community colleges. This bill would, for the 2012–13 fiscal year, require the deferrals of apportionments to community college districts in the amounts of $150,000,000 to be made from July to December, $50,000,000 to be made from September to January, and $100,000,000 to be made from October to January. The bill would require the Controller to issue warrants that include the full apportionment of payments for the months of July, September, or October, or any combination of those months, for a community college for which the Chancellor of the California Community Colleges determines, in consultation with the Director of Finance, on or before June 1 of the preceding fiscal year that deferral of warrants will present an imminent threat to the fiscal integrity and security of the community college. This bill would also repeal obsolete provisions regarding the deferral of certain payments. (6) Existing law requires all money received by the state as litigation deposits, except as specified, to be deposited in the Litigation Deposits Fund in the State Treasury. Existing law authorizes the investment and reinvestment of those funds and requires all revenues earned from the investment or deposit of fund moneys to be deposited in the fund. Existing law charges the Department of Justice with control of the fund, as specified. This bill would authorize the Controller to use money in the fund for cashflow loans to the General Fund, as specified. (7) Existing law establishes a system of public elementary and secondary schools in this state. This system of public elementary and secondary schools is funded through, among other means, the apportionment of state funds by the Superintendent of Public Instruction to local educational agencies in accordance with statutory formulas and the receipt of property tax revenues by those local educational agencies. This bill would require the Superintendent of Public Instruction to delay the 2nd principal apportionment for the 2011–12 fiscal year from July 2, 2012, to July 15, 2012, to account for additional local property tax revenues remitted to school districts and county offices of education pursuant to a specified statute. The bill would require each county auditor-controller to provide the Superintendent of Public Instruction by June 10, 2012, with a report detailing the amount of additional property tax received pursuant to this specified statute by each school district and county office of education in their respective jurisdictions, thereby imposing a state-mandated local program. (8) 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions. (9) This bill would appropriate $1,000 from the General Fund to the Controller for administrative costs associated with this bill. (10) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.