State mandates: prorated claims.

The California Constitution, whenever the Legislature or a state agency mandates a new program or higher level of service on any local government, including school districts, requires a subvention of funds to reimburse the local government, with specified exceptions. Existing law requires the Controller to prorate claims if the amount appropriated for reimbursement is not sufficient to pay all of the claims approved by the Controller. Existing law requires the Controller to report to the Department of Finance and various legislative entities when it is necessary to prorate claims. This bill would delete that reporting requirement and would require the Controller to determine the most cost-effective allocation method if $1,000 or less is appropriated for a program. This bill would also make a conforming statutory change.