BILL NUMBER: SB 77	CHAPTERED
	BILL TEXT

	CHAPTER  171
	FILED WITH SECRETARY OF STATE  AUGUST 24, 2007
	APPROVED BY GOVERNOR  AUGUST 24, 2007
	PASSED THE ASSEMBLY  JULY 20, 2007
	PASSED THE SENATE  AUGUST 21, 2007
	AMENDED IN ASSEMBLY  MAY 21, 2007

INTRODUCED BY   Senator Ducheny

                        JANUARY 17, 2007

   An act making appropriations for the support of the government of
the State of California and for several public purposes in accordance
with the provisions of Section 12 of Article IV of the Constitution
of the State of California, and declaring the urgency thereof, to
take effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   I object to the following appropriations contained in Senate Bill
77.
   Item 0250-001-0001--For support of Judicial Branch. I revise this
item by deleting Provision 5.
   I am deleting Provision 5, which would state the Legislature's
intent that the Administrative Office of the Courts (AOC) prioritize
existing resources to provide a $5 increase to the hourly rates paid
to attorneys in the Court Appointed Counsel Program (Program). A
study of the Program's attorney rates is currently underway and is
due to be completed by the end of August 2007. To the extent that the
study justifies rate increases, the AOC has the ability to provide
increases commensurate with the needs as determined by the study.
   Item 0250-101-0932--For local assistance, Judicial Branch. I
reduce this item from $3,056,153,000 to $3,035,796,000 by reducing:
   (1) 45.10-Support for Operation of the Trial Courts from
$2,632,142,000 to $2,611,785,000;
   and by revising Provision 4.
   I am reducing this item by $20,357,000, which includes a reduction
of $17,377,000 for funding to support the implementation of the
Omnibus Conservatorship and Guardianship Reform Act of 2006 (Act) and
a reduction of $2,980,000 for one month of savings related to the 50
new trial court judgeships established in 2006-07. It is my
intention for the Judicial Branch to delay implementation of the Act
until the 2008-09 fiscal year. Due to the timing of appointments and
hiring, one month of the funding for new judgeships will not be
necessary in 2007-08. These reductions are necessary in order to
further build a prudent reserve in light of the various uncertainties
in revenues and spending that we face this year.
   I am revising Provision 4, which would require the Judicial
Council to allocate not less than $5,250,000 for court interpreter
pay increases and other recruiting and retention incentives.
Requiring the Judicial Council to allocate funds for court
interpreter recruiting and retention incentives would alter the
collective bargaining process by shifting the focus from the actual
need for pay increases and other recruiting and retention measures,
as negotiated through the normal process, to the minimum level of
funding allocated.
   Provision 4 is revised as follows:
   "The funds appropriated in Schedule (4) shall be for payments for
services of contractual court interpreters, and certified and
registered court interpreters employed by the courts, and the
following court interpreter coordinators: 1.0 each in counties of the
1st through the 15th classes, 0.5 each in counties of the 16th
through the 31st classes, and 0.25 each in counties of the 32nd
through the 58th classes. For the purposes of this provision, "court
interpreter coordinators" may be full- or part-time court employees,
or those contracted by the court to perform these services.
   The Judicial Council shall set statewide or regional rates and
policies for payment of court interpreters, not to exceed the rate
paid to certified interpreters in the federal court system. 
The Legislature finds and declares that there exists a shortage in
the availability of certified and registered interpreters in the
state courts that reduces the state's ability to provide meaningful
access to justice for all court users, including parties, witnesses,
and victims. Therefore, every effort must be made to recruit and
retain qualified interpreters to work in the state courts. 
    Of the amount appropriated in Schedule (4), not less than
five million dollars ($5,000,000), not including funds provided
pursuant to Section 77202 of the Government Code, shall be provided
to the trial courts for the purpose of adjusting or creating pay
ranges for court interpreter employees that, at the top of the range,
do not exceed the top step of the full performance range for staff
interpreters in the Federal Courts as of the effective date of this
provision. The establishment of pay ranges and their application to
specific employee classifications shall be subject to meet and confer
in good faith as provided in Chapter 7.5 (commencing with Section
71800) of Title 8 of the Government Code. The Judicial Council shall
adjust statewide or regional rates for contract court interpreters in
a manner that is equivalent to the average rate of increase provided
to court interpreter employees. The Judicial Council shall notify
the courts in each region of the availability of these funds for the
purposes set forth in this provision, and shall allocate the funds
upon notification that ranges and salary adjustments have been
established and implemented as provided herein. In no event shall the
daily rate set by the Judicial Council for contract interpreters
exceed the equivalent median wage of court interpreters employed by
the courts in each region. 
    Of the amount appropriated in Schedule (4), the Judicial
Council shall allocate not less than two hundred fifty thousand
dollars ($250,000) to develop and make available to trial courts,
interpreter training and recruitment programs including, but not
limited to: 1) training programs designed for working interpreters
who are subject to new certification exams in Russian, Western
Armenian, Mandarin, Cambodian and Punjabi; 2) certification exam
preparation courses for all languages subject to state certification
exams; and 3) development of mentoring and internship programs in the
trial courts for exam candidates attending educational institutions
that train legal interpreters, subject to meet and confer in good
faith as provided in Chapter 7.5 (commencing with Section 71800) of
Title 8 of the Government Code.  The Judicial Council shall
adopt appropriate rules and procedures for the administration of
these funds. The Judicial Council shall report to the Legislature and
Director of Finance annually regarding expenditures from this
schedule  , which shall also include a report of expenditures
for; equivalent work days of, non-certified and non-registered
contract interpreters that provide interpretation services in the
state trial courts; and number of interpreter vacancies filled
 ."
   Item 0250-111-0001--For local assistance, Judicial Branch. I
reduce this item from $1,813,729,000 to $1,793,372,000.
   I am reducing this item by $20,357,000 to conform with the action
taken in Item 0250-101-0932.
   Item 0530-001-9732--For support of Secretary of Health and Human
Services Agency. I reduce this item from $182,976,000 to $177,841,000
by reducing:
   (1) 30-Office of Systems Integration from $182,976,000 to
$177,841,000.
   This reduction conforms to the action taken in Item 5180-151-0001.

   Item 0540-492--Reappropriation, Secretary for Resources. I revise
this item by deleting Schedule 1.
   "Notwithstanding any other provision of law, the period to
liquidate encumbrances of the following citations is extended to June
30, 2008:
   0001-General Fund
    (1)     Item
0540-101-0001, Budget Act of 1999 (Ch. 50, Stats. 1999), as
reappropriated by Item 0540-492, Budget Act of 2002 (Ch. 379, Stats.
2002), Item 0540-490, Budget Acts of 2003 (Ch. 157, Stats. 2003),
2005 (Chs. 38 and 39, Stats. 2005), and 2006 (Chs. 47 and 48, Stats.
2006), and Item 0540-491, Budget Act of 2004 (Ch. 208, Stats. 2004)

   (2) Item 0540-101-0001, Budget Act of 2000 (Ch. 52, Stats. 2000),
as reappropriated by Item 0540-490, Budget Acts of 2003 (Ch. 157,
Stats. 2003), 2005 (Chs. 38 and 39, Stats. 2005), and 2006 (Chs. 47
and 48, Stats. 2006) and Item 0540-491, Budget Act of 2004 (Ch. 208,
Stats. 2004)
   (3) Item 0540-101-0001, Budget Act of 2001 (Ch. 106, Stats. 2001),
as reappropriated by Item 0540-491, Budget Act of 2004 (Ch. 208,
Stats. 2004), and Item 0540-490, Budget Acts of 2005 (Chs. 38 and 39,
Stats. 2005) and 2006 (Chs. 47 and 48, Stats. 2006)"
   I am eliminating the expenditure availability for two projects
funded from the Coastal Resources Grant program. Funds for these
projects have been available since 1999 and no funds have been
expended on either project as required by the grant agreements.
Several obstacles remain, making progress on these projects unlikely
in the near future. Consequently, it would not be prudent to continue
earmarking General Fund for these projects. This action will result
in $577,500 of General Fund savings.
   Item 0552-001-0001--For support of the Office of the Inspector
General. I reduce this item from $19,265,000 to $18,306,000 by
reducing:
   (1) 10-Office of Inspector General from $19,265,000 to
$18,306,000,
   and by deleting Provision 1.
   I am deleting the $959,000 augmentation for the Office of the
Inspector General (OIG) to implement their review of all candidates
for superintendent in Division of Juvenile Justice facilities.
Superintendent review was mandated by Chapter 709, Statutes of 2006
(AB 971). While I believe these activities are important, I am
directing the OIG to delay implementation of this measure in order to
further build a prudent reserve in light of the various
uncertainties in revenues and spending that we face this year.
   Provision 1 would require the OIG to complete a study of custody
resources within the California Department of Corrections and
Rehabilitation's (CDCR) budget related to the transfer of various
medical guarding and transportation positions within the CDCR. I am
concerned about the large number of programs being created and
expanded within the OIG. The Budget includes additional resources for
audits and investigations, auditing the budget of the California
Prison Receivership, monitoring compliance with court orders in the
Armstrong case, and chairing the California Rehabilitation Oversight
Board created by Chapter 7, Statutes of 2007 (AB 900). Because of the
increased workload requirements within their programmatic expansions
and responsibilities, the OIG will not be able to complete this
study. However, I am directing the CDCR's reactivated Program Support
Unit, whose historical responsibilities have included studying and
making recommendations on custody staffing levels within the CDCR, to
conduct this study.
   Item 0690-002-0001--For Support of Office of Emergency Services. I
delete Provision 4.
   I am deleting Provision 4, which specifies that the duties and
responsibilities of the State Anti-Gang Coordinator will be subject
to additional definition in legislation. However, I will continue to
work with the Legislature to further define the role of the
Coordinator to assist state and local agencies in combating gang
violence.
   Item 0690-102-0214--For local assistance, Office of Emergency
Services. I delete Provision 1.
   I am deleting Provision 1, which specifies that funds for grants
to cities and community-based organizations are for gang prevention,
intervention, reentry, education, job training and skills
development, and family and community services. In addition, the
language in Provision 1 specifies that none of the funds can be used
for law enforcement suppression activities or front-line police
services.
   While prevention and intervention are necessary components of a
comprehensive anti-gang strategy, so is suppression. Therefore, I am
vetoing Provision 1 and directing the State Anti-Gang Coordinator to
draft and provide cities with grant instructions specifying that
suppression activities are an allowable use of the funds, along with
the other activities listed in Provision 1.
   Item 0820-001-0001--For support of Department of Justice. I revise
this item from $404,237,000 to $403,237,000, by reducing:
   (8) 45-Public Rights from $92,478,000 to $89,312,000;
   (15) Amount payable from Hazardous Waste Control Account (Item
0820-001-0014) from -$1,973,000 to -$987,000;
   (26) Amount payable from the Toxic Substances Control Account
(Item 0820-001-0557) -$2,361,000 to -$1,181,000;
   and by deleting Provision 12.
   I am deleting the $1,000,000 legislative augmentation that would
have provided funding for the Department of Justice (DOJ) to
independently pursue climate change litigation as the plaintiff on
behalf of the state. In the area of law related to climate change,
the Air Resources Board (ARB) is the state agency with the
responsibility to oversee litigation in that arena and has the funds
to request the DOJ to pursue such litigation.
   I am deleting Provision 12 to conform to this action.
   I am reducing the Environmental Law Section's appropriations from
the Hazardous Waste Control Account and the Toxic Substances Control
Account by a total of $2,166,000 to reflect half-year funding for the
program, and I urge the Legislature to pass legislation that
redirects these funds to the California Environmental Protection
Agency's (Cal/EPA) and the Department of Toxic Substances Control's
(DTSC) green chemistry initiative and returns the litigation
oversight role in hazardous waste cases to Cal/EPA and DTSC. DTSC is
increasingly turning to our local government partners and district
attorneys to enforce California's hazardous waste laws. In addition,
Cal/EPA and DTSC are developing a green chemistry initiative that
will change the paradigm of toxic and chemical use and enforcement in
California. The combination of these activities will improve our
environment and human health through greater enforcement of current
hazardous waste laws and usher in a new future to the approach of
chemical use in California. In addition, when developing the 2008-09
Budget, we will review the litigation needs in this area and budget
the necessary funds for legal services within DTSC's budget.
   I am sustaining the $541,000 legislative augmentation for the
first year of a multi-year project to update the DOJ Automated
Firearms Systems database. However, I am concerned that there has
been no review done to ensure the information technology solution
addresses the program needs. In addition, I am concerned that
competing demands for the Dealers' Record of Sale Special Account
funds could necessitate an increase in fees on the sale of firearms.
Therefore, in addition to having an approved feasibility study report
prior to expending any funds, I am also requesting the DOJ to
provide the Department of Finance and the Legislature with a
long-term analysis of the fund, including any known pressures on that
fund, to ensure that there are sufficient resources to cover the
program costs without necessitating a fee increase.
   Item 0820-001-0014--For support of Department of Justice. I reduce
this item from $1,973,000 to $987,000.
   I am revising this item to conform to the action I have taken in
Item 0820-001-0001.
   Item 0820-001-0557--For support of Department of Justice. I reduce
this item from $2,361,000 to $1,181,000.
   I am revising this item to conform to the action I have taken in
Item 0820-001-0001.
   Item 0855-101-0367--For local assistance, California Gambling
Control Commission. I reduce this item from $30,283,000 to $283,000
and delete Provision 1.
   I am deleting the $30,000,000 for grants to local government
agencies to mitigate the impacts on the local governments by tribal
casinos. As evidenced in a recent Bureau of State Audits report,
there is great concern regarding whether these funds are being used
solely for their intended purpose, which is to mitigate the impacts
of having tribal casinos in their communities. I will support
legislation that includes an appropriation for mitigation funds if
the process is reformed.
   I am deleting Provision 1 to conform to this action.
   With this reduction, there still remains $283,000 for payment to
Del Norte County which reflects local mitigation grant funding not
received by Del Norte County from the Indian Gaming Special
Distribution Fund in fiscal years 2003-04, 2004-05, and 2005-06.
   Item 0860-001-0001--For support of State Board of Equalization. I
reduce this item from $218,835,000 to $218,435,000 by reducing:
   (2) 300000-Operating Expense and Equipment from $96,269,000 to
$95,869,000,
   and by deleting Provision 3.
   I am deleting this legislative augmentation of $400,000 for a
county assessor pilot program designed to promote taxpayer awareness
of the requirement to pay use tax on non-exempt purchases if sales
tax has not been paid. This reduction is necessary to limit program
expansions and provide for a prudent General Fund reserve in light of
the various uncertainties in revenues and spending that we face this
year.
   Item 0890-001-0001--For support of Secretary of State. I reduce
this item from $48,157,500 to $47,822,000 by reducing:
   (2) 20-Elections from $46,933,500 to $46,598,000.
   I am deleting the $335,500 legislative augmentation for 4.0
positions which would provide staffing to expand voter outreach and
education efforts to support the three elections scheduled for 2008.
During a time of limited General Fund resources, the counties,
political parties, and civic organizations must step up and encourage
and promote increased voter participation.
   Item 3110-101-0001--For local assistance, Special Resources
Program. I delete this item and Provision 1.
   I am deleting the $200,000 legislative augmentation for the Tahoe
Regional Planning Agency for regulation enforcement and transit
system development. It is premature to provide additional funding
until the bi-state commission completes its report. With these
reductions, $3,800,000 still remains to provide California's share of
funding for the Tahoe Regional Planning Agency.
   I am deleting Provision 1 to conform to this action.
   Item 3340-101-6051--For local assistance, California Conservation
Corps. I delete this item.
   I am deleting the $12,000,000 legislative augmentation that would
provide $1,000,000 to each of the 12 certified Local Conservation
Corps. Notwithstanding the merit of the Local Corps programs, the
California Conservation Corps is still in the process of developing
grant guidelines for Proposition 84 bond funds. Furthermore, a recent
audit of Proposition 12 and 40 bond funds identified a need for the
Corps to improve its oversight of bond expenditures. The audit
recommended that the Corps develop a corrective action plan prior to
receiving additional bond funds. Therefore, it is necessary to delete
this funding to ensure that bond proceeds are spent efficiently,
effectively, and in a manner consistent with my Executive Order
S-02-07 regarding bond accountability. I support funding for the
Local Corps grant program when the grant guidelines and a corrective
action plan that identifies appropriate oversight measures are in
place.
   Item 3360-001-0465--For Support, State Energy Resources
Conservation and Development Commission. I revise this item by
reducing:
   (1) 30-Development from $128,807,000 to $127,841,000, and
   (6) Reimbursements from -$6,711,000 to -$5,745,000.
   I am eliminating a fund shift of $966,000 from the Energy
Resources Programs Account to reimbursements for the support of two
contracts. Funding for these contracts was included in the budget of
the Energy Commission (Commission) when I introduced the Governor's
Budget last January. However, the Legislature removed the funds from
the Commission's budget, placed them in the budget of the Air
Resources Board, and indicated that the Commission may seek the funds
by contracting with the Air Resources Board. This would have the
effect of requiring both the Commission and the Air Board to engage
in unnecessary work that would delay these important projects, and as
such is unacceptable.
   Item 3600-001-0001--For support of Department of Fish and Game. I
reduce this item from $84,503,000 to $82,998,000 by reducing:
   (3) 30-Management of Department Lands and Facilities from
$54,180,000 to $53,342,000;
   (4) 40-Enforcement from $61,705,000 to $60,200,000; and
   (22) Amount payable from the Coastal Wetlands Account (Item
3600-001-3104) from -$974,000 to -$136,000.
   I am reducing the $3,000,000 legislative augmentation for Fish and
Game Warden recruitment and retention by $1,505,000. Last year, for
the first time in several years, I increased salaries by 25 percent
during the three years of the bargaining agreement. I am sustaining
$1,495,000 to provide overtime funding for wardens and lieutenants,
which continues my commitment to address compensation issues.
However, this partial veto is necessary in order to further build a
prudent reserve in light of the various uncertainties in revenues and
spending that we face this year.
   I am also revising this item to conform to the actions I have
taken in Item 3600-001-3104.
   Item 3600-001-3104--For support of Department of Fish and Game. I
reduce this item from $974,000 to $136,000.
   I am deleting the $838,000 legislative augmentation for the
maintenance and management of Department of Fish and Game coastal
wetlands properties. Last year, I sustained a $5,000,000 transfer
from the General Fund to the Coastal Wetlands Account to create an
endowment to provide ongoing, sustainable funding for coastal
wetlands management activities. This augmentation, if sustained for
2007-08 and continued in future years, would spend down the endowment
in approximately six years, and place additional cost pressure on
the General Fund at that time. With this reduction, $1,400,000
million and 18.1 positions remain for coastal wetlands management.
   Item 3720-001-0001--For support of California Coastal Commission.
I reduce this item from $11,881,000 to $11,501,000 by reducing:
   (1) 10--Coastal Management Program from $15,909,000 to
$15,529,000.
   I am deleting the $380,000 legislative augmentation for coastal
enforcement. The California Coastal Commission has the authority to
adjust its fees, and I am willing to consider augmentations that
address the Commission's workload needs once fees have been adjusted
to cover associated costs. Currently, however, the proposed
augmentation would result in additional General Fund costs. This
reduction is necessary in order to further build a prudent reserve in
light of the various uncertainties in revenues and spending that we
face this year. With this reduction $15,529,000 still remains to
support the Commission's coastal management program.
   Item 3780-001-0001--For support of Native American Heritage
Commission. I reduce this item from $970,000 to $770,000 by reducing:

   (1) 10--Native American Heritage Commission from $975,000 to
$775,000.
   I am deleting the $200,000 legislative augmentation for 2.0
positions to implement legislative mandates. This reduction is
necessary in order to further build a prudent reserve in light of the
various uncertainties in revenues and spending that we face this
year. With this reduction $775,000 remains to support the Native
American Heritage Commission.
   Item 3790-301-6051--For capital outlay, Department of Parks and
Recreation. I reduce this item from $60,878,000 to $45,878,000 by
reducing:
   (3.7) 90.RS.412-Statewide: State Park System Opportunity and
Inholding Acquisitions--Acquisition from $30,000,000 to $15,000,000.
   I am vetoing $15,000,000 of the $25,000,000 augmentation to allow
the Department sufficient resources for opportunity purchases and
inholding acquisitions. The Department expended $324,000,000 between
2000 and 2006 to acquire nearly 100,000 acres to expand the state
park system. Given this recent significant investment, the Department
should proceed cautiously to limit future operating costs.
   Item 3790-492--Reappropriation, Department of Parks and
Recreation. I revise this item by deleting Schedule 1.
   "Notwithstanding any other provision of law, the period to
liquidate encumbrances in the following citation is extended as cited
below:
   6029--California Clean Water, Clean Air, Safe Neighborhood Parks,
and Coastal Protection Fund
    (1)     Subdivision (b)
of Section 2 of Chapter 1126 of the Statutes of 2002. The
liquidation period for the grant of $3,000,000 to the City of
Oroville is extended to December 31, 2009." 
   I am eliminating the expenditure availability for this project
funded from the Proposition 40 Historical and Cultural Resources
Preservation Opportunity Grant Program. Funds for this project have
been available for five years and have not yet been spent.
   Item 3860-001-0001--For support of Department of Water Resources.
I revise this item by reducing:
   (1) 10-Continuing Formulation of the California Water Plan from
$120,292,000 to $116,047,000, and
   (29) Amount payable from the Safe Drinking Water, Water Quality
and Supply, Flood Control, River and Coastal Protection Fund of 2006
(Item 3860-001-6051) from -$12,165,000 to -$7,920,000.
   I am revising this item to conform to the action taken in Item
3860-001-6051.
   Item 3860-001-6051--For support of Department of Water Resources.
I reduce this item from $12,165,000 to $7,920,000.
   I am deleting the legislative augmentation of $4,245,000 for
watershed basin planning activities. Although I support this program,
I believe that these activities should be funded through Proposition
84 funds available for the development of regional and local land
use plans. Statewide water planning activity funds should be reserved
for activities such as planning future water storage, adaptations of
the state's water systems to climate change, and other activities
that address the state's future water supply needs.
   Item 3860-101-6051--For local assistance, Department of Water
Resources. I reduce this item from $229,340,000 to $219,340,000.
   I am deleting the legislative augmentation of $10,000,000 for the
Flood Protection Corridor Program. My proposal includes $24,000,000
Proposition 84 funds for projects to implement Flood Protection
Corridor Program. This funding is sufficient to meet the needs of the
program for the budget year, and I will propose additional funds to
implement Flood Protection Corridor projects in future budgets.
   Item 3860-101-6052--For local assistance, Department of Water
Resources. I reduce this item from $197,450,000 to $167,450,000.
   I am deleting the legislative augmentation of $30,000,000 for the
Floodway Corridor Program. This augmentation is unnecessary because
criteria have not been developed for this new program created by
Proposition 1E. Thus, it is not feasible for grants to be solicited
and awarded during the fiscal year. The Department of Water Resources
will develop criteria for this program during the fiscal year, and
funds                                                  to implement
Floodway Corridor Program projects will be included in future
budgets.
   Item 3900-001-0465--For support of State Air Resources Board. I
delete this item.
   I am eliminating this item by reducing $966,000 in funding from
the Energy Resources Programs Account. This funding was intended to
support two contracts that were proposed in the budget of the Energy
Commission when I introduced the Governor's Budget last January.
However, the Legislature removed the funds from the Commission's
budget, placed them in the budget of the Air Resources Board, and
indicated that the Commission may seek the funds by contracting with
the Air Resources Board. This would have the effect of requiring both
the Commission and the Air Board to engage in unnecessary work that
would delay these important projects, and as such is unacceptable.
   Item 3900-001-6053--For support of State Air Resources Board.
   I am sustaining the legislative augmentation of an additional
$96,500,000 provided for school bus replacement and retrofits to
reduce the air pollution emissions of older, high-polluting school
buses. However, I note a concern with respect to the ability of the
State Air Resources Board to allocate almost $200 million in
lower-emission school bus funding within the next two years. It is
important that we do not sacrifice accountability in the interests of
expediency. Therefore, while acknowledging the challenge that the
State Air Resources Board faces in distributing these funds, I am
directing the State Air Resources Board to allocate these funds
expeditiously while ensuring consistency with the accountability
safeguards identified in my Executive Order S-02-07 for the bonds
that were approved by the voters in the November 2006 general
election.
   Item 3900-001-6054--For support of State Air Resources Board.
   I am sustaining the legislative augmentation of an additional
$139,000,000 provided for trade corridor emissions reductions to be
expended in the budget year for this new program authorized by the
voters in Proposition 1B in the November 2006 general election.
Proposition 1B provides $1 billion to fund projects intended to
improve air quality along four of California's major transportation
corridors: from the Los Angeles ports to the Inland Empire, State
Route 99 in the Central Valley, the San Francisco Bay Area, and the
San Diego border region. The State Air Resources Board will be
developing program guidelines and will solicit project proposals. The
projects to be funded are intended to achieve air quality
improvements above and beyond anything required by current law or
regulation.
   The travelers on our busy trade corridors and the individuals who
reside along their routes are demanding relief now--not many years
from now. However, I am concerned about taxing the ability of the
State Air Resources Board to develop program guidelines and allocate
$250,000,000 in the 2007-08 fiscal year. We must ensure effective
expenditure of this bond funding. It is important that we do not
sacrifice accountability in the interests of expediency. Therefore,
while acknowledging the challenge that the State Air Resources Board
faces in distributing these funds, I am directing the State Air
Resources Board to ensure that this funding be allocated consistent
with the accountability safeguards identified in my Executive Order
S-02-07 for all bond funds approved by the voters in the November
2006 general election.
   I am requesting the State Air Resources Board to develop program
administrative guidelines that make sense, reduce bureaucratic red
tape, simplify and expedite project application and award procedures,
and ensure projects are completed in record time. The people who
voted for Proposition 1B are demanding this action. I know that my
colleagues in the Legislature agree with these goals, and that the
staff of the State Air Resources Board is up to this challenge.
   In addition, because the language adopted by the Legislature
relies heavily on local and regional entities to carry out this
program, I am calling on those entities to work closely with the
State Air Resources Board and ensure they are prepared to submit
applications to receive and allocate funding as soon as possible in
this fiscal year.
   Item 4260-001-0001--For support of Department of Health Care
Services. I reduce this item from $136,412,000 to $136,218,000 by
reducing:
   (1) 20-Health Care Services from $385,348,000 to $382,971,000;
   (6) Amount payable from the Childhood Lead Poisoning Prevention
Fund (Item 4260-001-0080) from -$198,000 to -$142,000;
   (8) Amount payable from the Federal Trust Fund (Item
4260-001-0890) from -$224,133,000 to -$224,036,000;
   and by deleting:
   (10) Amount payable from the California Discount Prescription Drug
Program Fund (Item 4260-001-8040) (-$2,030,000);
   and Provision 4.
   I am deleting the $56,000 legislative augmentation to restore 1.0
special funded position that was redirected from the Department of
Health Services (DHS) to the new Department of Health Care Services.
This will ensure the split of the DHS into two departments remains
budget-neutral, consistent with the intent of Chapter 241, Statutes
of 2006 (SB 162). This action is consistent with the deletion of
$744,000 and 11.0 positions in the Department of Public Health.
   I am also reducing $56,000 in Item 4260-001-0080 to conform to
this action.
   Provision 4 prohibits the Department of Health Care Services from
expending any funds to relocate the Fresno Medi-Cal Field Office. I
am deleting Provision 4 because it interferes with the Executive
Branch's ability to effectively administer programs. Maintaining the
Department's ability to consolidate operations is an important
component of increasing operational efficiencies.
   I am deleting $195,000 ($98,000 General Fund and $97,000 Federal
Trust Fund) and 2.0 positions for the implementation of Chapter 328,
Statutes of 2006 (SB 437), which included a pilot program for
self-certification of income at enrollment for Medi-Cal and
development of feasibility study reports to begin implementing
changes to several automated eligibility systems. While I remain
committed to implementation of these reforms, this reduction is
needed to build a prudent reserve in light of the various
uncertainties in revenues and spending that we face this year. I am
directing the Department of Health Care Services to delay
implementation for one year.
   In order to further build a prudent reserve, I am deleting
$2,030,000 intended to specifically fund implementation costs for the
California Discount Prescription Drug Program. I am directing the
Department of Health Care Services to identify resources to move
forward with implementation.
   I am also deleting Item 4260-001-8040 to conform to this action.
   I am deleting $96,000 General Fund intended to fund implementation
costs for the California Rx Prescription Drug Website Program and am
directing the Department of Health Care Services to delay
implementation of the program for one year.
   Item 4260-001-0080--For support of Department of Health Care
Services. I reduce this item from $198,000 to $142,000.
   I am reducing this item to conform to the action I have taken in
Item 4260-001-0001.
   Item 4260-001-0890--For support of Department of Health Care
Services. I reduce this item from $224,133,000 to $224,036,000.
   I am reducing this item by $97,000 to conform to the action I have
taken in Item 4260-001-0001, related to the delayed implementation
of Chapter 328, Statutes of 2006 (SB 437).
   Item 4260-001-8040--For support of Department of Health Care
Services. I delete this item.
   I am deleting this item to conform to the action I have taken in
Item 4260-001-0001 regarding the California Discount Prescription
Drug Program.
   Item 4260-006-0001--For transfer by the Controller to the
California Discount Prescription Drug Program Fund. I delete this
item and Provision 1.
   I am deleting the $6,330,000 in this item to conform to the
actions I have taken in Items 4260-001-0001, 4260-001-8040, and
4260-119-8040 regarding the California Discount Prescription Drug
Program.
   I am also deleting Provision 1 to conform to this action.
   Item 4260-101-0001--For local assistance, Department of Health
Care Services. I reduce this item from $14,313,728,000 to
$13,903,340,000 by reducing:
   (1) 20.10.010-Eligibility (County Administration) from
$2,660,676,000 to $2,633,842,000;
   (3) 20.10.030-Benefits (Medical Care and Services) from
$32,222,681,000 to $31,447,632,000; and
   (8) Amount payable from the Federal Trust Fund (Item
4260-101-0890) from -$20,595,964,000 to -$20,204,469,000.
   I am deleting the legislative augmentation of $4,260,000
($2,130,000 General Fund and $2,130,000 Federal Trust Fund) for
workstation replacement to conform to the action taken in Item
5180-141-0001.
   I am deleting $106,286,000 ($53,143,000 General Fund and
$53,143,000 Federal Trust Fund) of the funding for rates for managed
health care plans in the Medi-Cal Program. This reduction is
necessary to provide for a prudent General Fund reserve in light of
the various uncertainties in revenues and spending that we face this
year. With this reduction, $108,000,000 ($54,000,000 General Fund)
still remains to fund rate increases for plans to ensure adequate
access to care for low-income Californians.
   I am reducing the Medi-Cal Program by $644,893,000 ($331,893,000
General Fund and $313,000,000 Federal Trust Fund). This reduction is
necessary to provide for a prudent General Fund reserve in light of
the various uncertainties in revenues and spending that we face this
year. This reduction is based on historical data showing that on
average over the last three fiscal years, Medi-Cal expenditures have
been more than $400 million General Fund lower than the estimate.
   I am deleting $26,792,000 ($13,396,000 General Fund and
$13,396,000 Federal Trust Fund) to delay the implementation of
Chapter 328, Statutes of 2006 (SB 437), which included a pilot
program for self-certification of income at enrollment for Medi-Cal
and development of feasibility study reports to begin implementing
changes to several automated eligibility systems. This action will
delay implementation of SB 437 for one year. This reduction is
necessary to provide for a prudent General Fund reserve in light of
the various uncertainties in revenues and spending that we face this
year.
   I am reducing the $19,652,000 ($9,826,000 General Fund and
$9,826,000 Federal Trust Fund) in funding for the county grants
portion of the Children's Outreach Initiative. This appropriation
reduction is necessary to provide for a prudent General Fund reserve
in light of the various uncertainties in revenues and spending that
we face this year. With this reduction, $147,020,000 ($64,680,000
General Fund) still remains to fund other components of the Children'
s Outreach Initiative that streamline enrollment processes, improve
retention, and support county-based enrollment efforts for children.
The Department of Health Care Services will pay for any valid county
claims for the Children's Outreach Initiative for the 2006-07 fiscal
year from remaining funds within this item.
   Item 4260-101-0890--For local assistance, Department of Health
Care Services.
   I reduce this item from $20,595,964,000 to $20,204,469,000.
   I am reducing this item by $391,495,000 to conform to the action I
have taken in Item 4260-101-0001.
   Item 4260-111-0001--For local assistance, Department of Health
Care Services. I reduce this item from $172,616,000 to $162,616,000
by reducing:
   (3) 20.35-Primary and Rural Health from $53,289,000 to
$43,289,000,
   and by deleting Provision 3.
   I am reducing $10,000,000 General Fund from Expanded Access to
Primary Care (EAPC) in order to help build a prudent reserve in light
of the various uncertainties in revenues and spending that we face
this year. I will seek a subsequent bill this session to fund this
program with Proposition 99 funding and maintain a constant level of
funding in the program.
   Provision 3 directs the Department of Health Care Services to work
with various constituency groups to resolve issues with the timely
discharge of patients enrolled in the California Children's Services
Program. This requirement would result in an expenditure increase
without regard to the availability of revenues. Consequently, I am
vetoing this language.
   Given the Legislature's interest in this area and the importance
of this program, I am instructing the director of the Department of
Health Care Services to continue the activities of this legislative
request to the extent such activities can be achieved using existing
resources and without impairing the Department of Health Care
Services ability to perform its essential functions.
   Item 4260-113-0001--For local assistance, Department of Health
Care Services. I reduce this item from $190,394,000 to $185,171,000
by reducing:
   (1) 20.10.010-Eligibility (County Administration) from $20,783,000
to $5,860,000, and
   (4) Amount payable from the Federal Trust Fund (Item
4260-113-0890) from -$330,184,000 to -$320,484,000.
   I am reducing the $14,923,000 ($5,223,000 General Fund and
$9,700,000 Federal Trust Fund) in funding for the county grants
portion of the Children's Outreach Initiative to conform to the
action I have taken in Item 4260-101-0001. The Department of Health
Care Services will pay for any valid county claims for the Children's
Outreach Initiative for the 2006-07 fiscal year from remaining funds
within this item.
   Item 4260-113-0890--For local assistance, Department of Health
Care Services. I reduce this item from $330,184,000 to $320,484,000.
   I am reducing this item by $9,700,000 to conform to the action I
have taken in Item 4260-113-0001.
   Item 4260-119-8040--For local assistance, Department of Health
Care Services. I delete this item.
   I am deleting the $4,300,000 intended specifically to fund local
assistance implementation costs for the California Discount
Prescription Drug Program. This action is necessary to further build
a prudent reserve in light of the various uncertainties in revenues
and spending that we face this year.
   Item 4265-001-0001--For support of Department of Public Health. I
reduce this item from $96,897,000 to $95,460,000 by reducing:
   (2) 20-Public and Environmental Health from $504,804,000 to
$502,502,000;
   (3) 30-Licensing and Certification from $151,366,000 to
$150,935,000;
   (6) Reimbursements from $-36,726,000 to $-36,605,000;
   (14) Amount payable from the Radiation Control Fund (Item
4265-001-0075) from -$22,620,000 to -$22,402,000;
   (16) Amount payable from the Childhood Lead Poisoning Prevention
Fund (Item 4265-001-0080) from -$9,471,000 to -$9,368,000;
   (18) Amount payable from the Clinical Laboratory Improvement Fund
(Item 4265-001-0098) from -$5,571,000 to -$5,517,000;
   (24) Amount payable from the Genetic Disease Testing Fund (Item
4265-001-0203) from -$113,633,000 to -$113,577,000;
   (31) Amount payable from the Safe Drinking Water Account (Item
4265-001-0306) from -$11,383,000 to -$11,204,000;
   (37) Amount payable from the Federal Trust Fund (Item
4265-001-0890) from -$212,090,000 to -$211,956,000;
   (41) Amount payable from the Licensing and Certification Trust
Fund (Item 4265-001-3098) from -$84,033,000 to -$83,602,000;
   and by deleting Provision 6.
   I am reducing the $744,000 legislative augmentation to restore
11.0 special funded positions that were redirected from the
Department of Health Services (DHS) to administrative and managerial
positions in the new Department of Health Care Services and
Department of Public Health. This will ensure the split of the DHS
into two departments remains budget-neutral, consistent with the
intent of Chapter 241, Statutes of 2006 (SB 162). This action is
consistent with the deletion of $56,000 and 1.0 position in the
Department of Health Care Services.
   I am also reducing $218,000 in Item 4265-001-0075, $103,000 in
Item 4265-001-0080, $54,000 in Item 4265-001-0098, $56,000 in Item
4265-001-0203, $179,000 in Item 4265-001-0306, and $134,000 in Item
4265-001-0890 to conform to this action.
   I am also reducing $1,314,000 and 9.0 positions to reflect a delay
in implementation of the Healthcare Associated Infections Program
under Chapter 526, Statutes of 2006 (SB 739) for one year. This
action is necessary to help build a prudent reserve in light of the
various uncertainties in revenues and spending that we face this
year.
   I am also reducing $431,000 and 3.0 positions in Item
4265-001-3098 to conform to this action.
   I am reducing $123,000 General Fund and 2.0 positions for the
implementation of Chapter 328, Statutes of 2006 (SB 437), which
required development of feasibility study reports to implement
changes to several automated eligibility systems. I am taking this
action to delay implementation for one year in order to further build
a prudent reserve in light of the various uncertainties in revenues
and spending that we face this year.
   I am also deleting Provision 6 which would require the Department
of Public Health to provide an action plan to the Legislature by
November 1, 2007, and addresses temporary management appointment
issues identified by the Bureau of State Audits. This requirement
would result in an expenditure increase without regard to the
availability of revenues. Consequently, I am vetoing this language.
Nevertheless, in recognition of the Legislature's desire to obtain
this information, I am instructing the director of the Department of
Public Health to comply with this legislative request to the extent
compliance can be achieved using existing resources and without
impairing the department's ability to perform its essential
functions.
   Item 4265-001-0075--For support of Department of Public Health. I
reduce this item from $22,620,000 to $22,402,000.
   I am reducing this item to conform to the action I have taken in
Item 4265-001-0001.
   Item 4265-001-0080--For support of Department of Public Health. I
reduce this item from $9,471,000 to $9,368,000.
   I am reducing this item to conform to the action I have taken in
Item 4265-001-0001.
   Item 4265-001-0098--For support of Department of Public Health. I
reduce this item from $5,571,000 to $5,517,000.
   I am reducing this item to conform to the action I have taken in
Item 4265-001-0001.
   Item 4265-001-0203--For support of Department of Public Health. I
reduce this item from $113,633,000 to $113,577,000.
   I am reducing this item to conform to the action I have taken in
Item 4265-001-0001.
   Item 4265-001-0306--For support of Department of Public Health. I
reduce this item from $11,383,000 to $11,204,000.
   I am reducing this item to conform to the action I have taken in
Item 4265-001-0001.
   Item 4265-001-0890--For support of Department of Public Health. I
reduce this item from $212,090,000 to $211,956,000.
   I am reducing this item to conform to the action I have taken in
Item 4265-001-0001.
   Item 4265-001-3098--For support of Department of Public Health. I
reduce this item from $84,033,000 to $83,602,000.
   I am reducing this item by $431,000 and 3.0 positions to conform
to the action I have taken in Item 4265-001-0001 related to the
Healthcare Associated Infections Program.
   Item 4265-111-0001--For support of Department of Public Health. I
reduce this item from $273,999,000 to $265,499,000 by reducing:
   (1) 10.10-Emergency Preparedness from $198,220,000 to
$189,720,000.
   In order to further build a prudent reserve in light of the
various uncertainties in revenues and spending that we face this
year, I am reducing $8,500,000 from this item on a one-time basis
from the ongoing discretionary funding provided for allocation to
local health departments for local pandemic influenza preparedness
and response planning. Even with this reduction, $10,000,000 remains
to fund local health departments' emergency preparedness activities.
In addition, $8,500,000 remains to provide storage to protect the
state's investment in medical supplies and equipment to address
health care surge capacity needs.
   Item 4280-001-0001--For support of Managed Risk Medical Insurance
Board. I reduce this item from $2,516,000 to $2,400,000 by reducing:
   (3) 40-Healthy Families Program from $9,495,000 to $9,162,000, and

   (9) Amount payable from Federal Trust Fund (Item 4280-001-0890)
from -$7,000,000 to -$6,783,000.
   I am reducing $333,000 ($116,000 General Fund and $217,000 Federal
Trust Fund) and 3.0 positions for the implementation of Chapter 328,
Statutes of 2006 (SB 437) which provided for a program to test
self-certification of income at the Annual Eligibility Review for the
Healthy Families Program. I am directing the Managed Risk Medical
Insurance Board to delay implementation for one year to contribute to
a prudent reserve in light of the various uncertainties in revenues
and spending that we face this year.
   Item 4280-001-0890--For support of Managed Risk Medical Insurance
Board. I reduce this item from $7,000,000 to $6,783,000.
   I am reducing this item by $217,000 to conform to my actions in
4280-001-0001, related to the delayed implementation of Chapter 328,
Statutes of 2006 (SB 437).
   Item 4280-101-0890--For local assistance, Managed Risk Medical
Insurance Board.
   I reduce this item from $732,337,000 to $729,841,000.
   I am reducing this item by $2,496,000 to conform to the action I
have taken in Item 4280-101-0001, related to the delayed
implementation of Chapter 328, Statutes of 2006 (SB 437).
   Item 4280-102-0001--For local assistance, Managed Risk Medical
Insurance Board.
   I reduce this item from $26,520,000 to $26,240,000 by reducing:
   (1) 40-Healthy Families Program from $75,190,000 to $74,396,000,
and
   (3) Amount payable from the Federal Trust Fund (Item
4280-102-0890) from -$41,053,000 to -$40,539,000.
   I am deleting $794,000 ($280,000 General Fund and $514,000 Federal
Trust Fund) to conform to the action I have taken in Item
4280-001-0001, related to the delayed implementation of Chapter 328,
Statutes of 2006 (SB 437).
   Item 4280-102-0890--For local assistance, Managed Risk Medical
Insurance Board. I reduce this item from $41,053,000 to $40,539,000.
   I am reducing this item by $514,000 to conform to the action I
have taken in Item 4280-102-0001, related to the delayed
implementation of Chapter 328, Statutes of 2006 (SB 437).
   Item 4440-101-0001--For local assistance, Department of Mental
Health. I revise this item from $518,723,000 to $463,873,000 by
reducing:
   (1) 10.25-Community Services--Other Treatment from $705,124,000 to
$638,274,000, and
   (6) Reimbursements from -$1,132,671,000 to -$1,120,671,000.
   I am deleting the $54,850,000 legislative augmentation for the
Integrated Services for Homeless Adults with Serious Mental Illness
Program. While I support the goals of the program, this reduction is
necessary to limit program expansions and to help bring ongoing
expenditures in line with existing resources. To the extent counties
find this program beneficial and cost-effective, it can be
restructured to meet the needs of each county's homeless population
using other county funding sources, such as federal funds,
realignment funds, or Proposition 63 funds.
   I am reducing Schedule (6) to eliminate the $12,000,000
legislative augmentation for the 5 percent rate restoration for
mental health managed care. This technical veto is consistent with
the legislative action taken in Item 4440-103-0001.
   Item 4700-001-0001--For support of Department of Community
Services and Development. I reduce this item from $250,000 to
$150,000 by reducing:
   (1) 47-Naturalization Services from $250,000 to $150,000.
   I am deleting the $100,000 legislative augmentation to expand the
Naturalization Services Program. This action is necessary for a
prudent reserve for economic uncertainties. With this reduction,
$3,000,000 still remains to support the Naturalization Services
Program, and to assist legal immigrants in completing their
citizenship application, citizenship testing, and in preparing for
the interview. In addition, similar services are provided by the
California Department of Education, such as instruction in civics and
English.
   I am also taking conforming action to reduce Item 4700-101-0001.
   Item 4700-101-0001--For local assistance, Department of Community
Services and Development. I reduce this item from $4,750,000 to
$2,850,000 by reducing:
   (1) 47-Naturalization Services from $4,750,000 to $2,850,000.
   I am reducing this item by $1,900,000 to conform to my action in
Item 4700-001-0001.
   Item 5180-001-0001--For support of Department of Social Services.
I reduce this item from $102,904,000 to $102,717,000 by reducing:
   (2) 25-Social Services and Licensing from $161,486,000 to
$161,212,000;
   (8) Amount payable from the Federal Trust Fund (Item
5180-001-0890) from -$347,576,000 to -$347,489,000;
   and by deleting Provision 8.
   I am reducing this item by $274,000 ($187,000 General Fund and
$87,000 Federal Trust Fund) for 3.0 positions on a one-time basis.
This funding would have provided resources for the Department of
Social Services to assist in sibling searches within the Adoptions
Program, pursuant to legislation enacted during fiscal year 2006-07.
While I support efforts to remove barriers to sibling reunification
and facilitate the release of information between siblings, I am
delaying implementation of this program for one year in order to
further build a prudent reserve in light of the various uncertainties
in revenues and spending that we face this year. I am reducing Item
5180-151-0001 by $1,046,000 and Item 5180-151-0890 by $794,000 to
conform to this action.
   Provision 8 requires the Department of Social Services to display
legal accusations filed by the Department against a provider's
license on the Community Care Licensing public website pages as a
condition to spending set-aside funding of $1,475,000 to implement
its Licensing Reform Automation proposal. I am delaying
implementation of this project for one year, to provide for a prudent
General Fund reserve in light of the various uncertainties in
revenues and spending that we face this year. I am also deleting the
provisional language related to this project funding.
   Item 5180-001-0890--For support of Department of Social Services.
I reduce this item from $347,576,000 to $347,489,000 and delete
Provision 4.
   I am reducing this item to conform to the action I have taken in
Item 5180-001-0001 related to sibling searches within the Adoptions
Program.
   I am deleting Provision 4 to conform to the action I have taken in
Item 5180-001-0001 related to licensing reform automation costs.
                                                    Item
5180-151-0890--For local assistance, Department of Social Services. I
reduce this item from $1,222,557,000 to $1,218,641,000.
   I am reducing this item to conform to the actions I have taken in
Item 5180-151-0001 related to workstation replacement, sibling
searches within the Adoptions Program, and foster youth identify
theft.
   Item 5180-153-0001--For local assistance, Department of Social
Services. I revise this item by deleting Provision 2.
   Provision 2 requires the Department of Social Services to
collaborate with stakeholders to develop the timeline, components,
and execution of the evaluation of the Title IV-E Waiver. This
requirement would result in an expenditure increase without regard to
the availability of revenues. Consequently, I am vetoing this
language. Nevertheless, I am directing the Department to work with
stakeholders to facilitate the successful implementation of the Title
IV-E Waiver, which allows participating counties flexibility in
using federal Title IV-E foster care funds for direct services and
supports.
   Item 5225-001-0001--For support of the California Department of
Corrections and Rehabilitation. I reduce this Item from
$6,980,353,000 to $6,958,609,000 by reducing:
   (1) 10-Corrections and Rehabilitation Administration from
$376,992,000 to $369,580,000;
   (4) 20-Juvenile Operations from $183,097,300 to $181,168,300;
   (8) 25-Adult Corrections and Rehabilitation Operations from
$4,904,883,000 to $4,892,480,000;
   and by revising Provisions 10 and 16 and deleting Provisions 8,
11, and 19.
   I am reducing funds for the second phase of the Consolidated
Information Technology Infrastructure Project by $4,408,000 and
eliminating the $3,004,000 augmentation for the Division of Juvenile
Justice Infrastructure Migration Project. In addition, I am reducing
the augmentation provided for facility maintenance and special repair
projects by $10,000,000 and eliminating $4,332,000 for equipment
replacement. These reductions are necessary in order to further build
a prudent reserve in light of the various uncertainties in revenues
and spending that we face this year. I am revising Provisions 10 and
16 to conform to these actions as follows:
   "10. In implementing the Consolidated Information Technology
Infrastructure Project (CITIP), the department shall, when possible,
give first priority to data drops for business services and
rehabilitative programming.  Of the funds appropriated in
this item, $4,408,000 may not be expended sooner than 30 days after
the department provides a report to the Joint Legislative Budget
Committee certifying that CITIP design and engineering work has been
completed at 12 institutions. This report shall also identify the
revised cost estimates to implement the CITIP at these 12
institutions as compared to the original estimated costs. The report
shall also identify the reasons for any differences between the
original and revised estimates." 
   "16. Of the funds appropriated in this item,  $698,514,000
  $679,774,000  is available for expenditure only
for the purposes identified below. Any unexpended funds shall revert
to the General Fund.
   (a) Facility Maintenance Funding:  $46,000,000 
 $36,000,000 
   (b) Coleman v. Schwarzenegger, Administrative Segregation Unit
Mental Health Cells Modification: $3,550,000
   (c) Coleman v. Schwarzenegger, Administrative Segregation Intake
Cells: $13,203,000
   (d) Coleman v. Schwarzenegger, Salary Enhancements: $13,108,000
   (e) Plata v. Schwarzenegger: Salary Enhancements: $1,521,000
   (f) Coleman v. Schwarzenegger, CMF Acute Cells Modification:
$1,075,000
   (g) Coleman v. Schwarzenegger: Reception Center Enhanced
Outpatient Program: $2,916,000
   (h) Perez v. Tilton, Comprehensive Inmate Dental Services Program:
$8,477,000
   (i) Farrell v. Tilton, Safety and Welfare Remedial Plan:
$66,747,000
   (j) Farrell v. Tilton, Mental Health Remedial Plan: $25,145,000
   (k) Implementation of Revised Program Guide for Mental Health
Services Delivery System (Ch. 511, Stats. 2006): $8,706,000
   (l) Sex Offender Management Funding: $113,327,000
   (m) Reducing Recidivism Strategies: $90,136,000
   (1) The department is authorized to make changes to the Reducing
Recidivism Strategies supported by this subdivision not sooner than
15 days after notifying the fiscal committees of both houses of the
Legislature of any proposed changes.
   (n) Basic Correctional Officer Academy: $61,105,000
   (o) Records Staffing and Automation: $7,759,000
   (p) Garrison Johnson v. California, Racial Integration: $1,214,000

   (q) Coleman v. Schwarzenegger, Court Order Compliance: $2,325,000
   (r) Comprehensive Health Care Recruitment: $3,928,000
   (s) Life Prisoner Parole Hearing Staffing: $6,646,000
   (t) Farrell v. Tilton Healthcare Remedial Plan: $9,064,000
   (u) Farrell v. Tilton, Consent Decree: $1,327,000
   (v) Strategic Offender Management System: $3,611,000
   (w) Consolidated Information Technology Infrastructure Project:
 $118,466,000   $114,058,000 
   (x) Teacher Pay Parity: $13,868,000
    (y)     Equipment
Funding: $4,332,000 
   (z) Mandatory Aftercare/Drug Treatment Furlough: $65,615,000
   (aa) Valdivia Case Records: $3,344,000
   (bb) Perez v. Tilton, Salary Enhancements: $1,999,000"
   I am deleting Provision 8, which would require the Department to
pass along a portion of its 2.7-percent price increase to public
community correctional facilities under contract with the Department.
The Budget no longer contains funding for a price increase for the
Department. Therefore, this language is unnecessary.
   I am deleting Provision 11, which would allow the Department to
submit a staffing plan to conduct background investigations and would
preclude the use of sworn staff from being utilized. The Department'
s use of sworn staff to conduct background investigations has
improved the processing time that it takes to conduct a background
investigation as compared to non-sworn staff previously used. Because
sworn staff have proved to be more effective than non-sworn
classifications, and due to the need to aggressively fill the
Department's vacant Correctional Officer positions, this provision
would prevent the Department from managing their hiring process in a
manner that allows Correctional Officer vacancies to be filled in the
most effective way possible.
   I am deleting Provision 19, which would require the Department to
submit a plan for staffing and organizational changes in the Office
of Facilities Management and other departmental units to deliver
capital outlay projects, including those authorized by Chapter 7,
Statutes of 2007 (AB 900). This reporting requirement would result in
an expenditure increase without regard to the availability of
revenues. Consequently, I am vetoing this language. Nevertheless, in
recognition of the Legislature's desire to obtain this information,
it will be addressed as though the request had been included in
Supplemental Report Language. Therefore, I am instructing the
Secretary of the Department of Corrections and Rehabilitation to
comply with this legislative request for this report to the extent
compliance can be achieved using existing resources and without
impairing the Department's ability to perform its essential
functions.
   Item 5225-002-0001--For support of Department of Corrections and
Rehabilitation. I reduce this Item from $2,126,132,000 to
$2,124,612,000 by reducing:
   (4.2) 50.20-Dental Services-Adult from $103,292,000 to
$103,129,000;
   (4.3) 50.30-Mental Health Services-Adult from $303,093,000 to
$302,930,000; and
   (4.5) 50.50-Dental and Mental Health Services Administration-Adult
from $59,283,000 to $58,089,000.
   I am deleting the $1,520,000 legislative augmentation to support
positions to improve hiring efforts within the California Department
of Corrections and Rehabilitation's (CDCR) Dental and Mental Health
programs. While I am supportive of these activities, my budget
proposed to fund these limited-term positions using the salary
savings available from the vacancies within CDCR's Dental and Mental
Health programs.
   I expect that the recruitment efforts of the Department of
Personnel Administration, the salary increases provided to dental and
mental health classifications, and the hiring efforts of the CDCR
will greatly improve the CDCR's ability to fill the vacancies within
these programs. As such, I recognize that funding these positions
through salary savings is only a short-term solution and it may be
necessary to provide additional funding to support these efforts in
the future.
   Item 5225-301-0001--For capital outlay, Department of Corrections
and Rehabilitation.
   I am sustaining Provision 7, which requires the department to
report to the Joint Legislative Budget Committee with an update to
the facility master plan for juvenile facilities. This report will
identify how the projects funded in the 2007-08 Budget implement the
master plan. While the department is committed to completing this
valuable plan and has every intention of providing the data, it will
be unable to meet the October 31, 2007 deadline provided therein
because of the necessary time constraints associated with compiling
the level of detail as required by this report. I am directing the
department to prepare and deliver the required report by February 29,
2008.
   Item 5225-301-0660--For capital outlay, Department of Corrections
and Rehabilitation. I reduce this item from $119,752,000 to
$107,367,000 by deleting:
   (5.1) 61.23.004-California State Prison, Corcoran: Wastewater
Treatment Plant Improvements--Construction ($5,944,000), and
   (5.2) 61.30.004-Centinela State Prison, Imperial: Wastewater
Treatment Plant Upgrades--Construction ($6,441,000).
   I am deleting these two wastewater treatment plant projects from
this item because they cannot be funded with lease revenue bond
financing, I am directing the Department of Corrections and
Rehabilitation to fund both projects from the $300,000,000 General
Fund appropriation contained in Chapter 7, Statutes of 2007 (AB 900)
for infrastructure improvements at existing prisons. Should this
action result in additional funding needs in order to complete the
infrastructure work at the various existing institutions, I expect
that the Legislature will be supportive of future funding requests.
   Item 6110-001-0001--For support of Department of Education. I
reduce this item from $47,380,000 to $47,127,000 by reducing:
   (1) 10-Instruction from $62,022,000 to $60,422,000;
   (2) 20-Instructional Support from $103,209,000 to $99,833,000; and

   (9) Amount payable from Federal Trust Fund (Item 6110-001-0890)
from -$163,060,000 to -$158,337,000.
   I am deleting the legislative augmentation of $133,000 and 1.0
position to coordinate education programs for incarcerated youth and
support implementation of alternative school programs. This reduction
is necessary to limit program expansion and in order to further
build a prudent reserve in light of the various uncertainties in
revenues and spending that we face this year. Further, the Department
of Education already has existing positions that support alternative
school programs and there is not sufficient workload justification
for this additional position.
   I am deleting Provision 28 to conform to this action.
   I am deleting the $120,000 legislative augmentation to support
implementation of the English language learner component of the
Mathematics and Reading Professional Development Program. Chapter
524, Statutes of 2006 (SB 472), appropriated $120,000 to the
Department of Education without regard to fiscal year and authorized
the Department to establish one position for this purpose. The
Department has not filled the position and, consequently, the
$120,000 remains available for expenditure. Therefore, it is
unnecessary to provide additional expenditure authority in the budget
year. However, I am sustaining authority for 1.0 limited-term
position for one year to enable the Department to fill the position
in order to conduct one-time activities associated with this program.

   I am also revising this item to conform to the actions I have
taken in Item 6110-001-0890.
   Item 6110-001-0890--For support of Department of Education. I
reduce this item from $163,060,000 to $158,337,000.
   I am reducing a legislative augmentation by $198,000 in federal
Title II funds and 6.0 positions to implement the Compliance,
Monitoring, Interventions, and Sanctions (CMIS) program related to
the highly qualified teacher requirements under the federal No Child
Left Behind Act. The Department of Education did not provide
sufficient workload justification for these positions. Further, the
Legislature rejected the Administration's proposal to shift funding
from federal Title V to Title II for 4.0 professional development
positions, with a priority on meeting the highly qualified teacher
requirements, as Title V will no longer be available to support these
positions. Therefore, I am sustaining $929,000 to support 2.0 new
positions and the 4.0 existing but unfunded positions for the purpose
of assisting school districts to meet the highly qualified teacher
requirements. When combined with the positions that are currently
dedicated for this purpose, the Department will have a total of 8.0
positions for the CMIS program.
   I am revising Provision 34 to conform to this action as follows:
   "34. Of the funds appropriated in this item,  $1,127,000
  $929,000  of federal Title II funds is for the
Compliance, Monitoring, Intervention, and Sanctions (CMIS) program.
This program is designed to help school districts meet the highly
qualified teacher requirements specified in the federal No Child Left
Behind Act of 2001 (20 U.S.C. Sec. 6301 et seq.). By April 1, 2008,
the State Department of Education shall submit a report on the CMIS
program to the budget and policy committees. The report shall
identify (a) the number of school districts that received CMIS
support in the 2007-08 fiscal year, and (b) the major components of
the plans that those districts developed to respond to the federal
highly qualified teacher requirements. For each participating
district, the report also shall provide longitudinal data on the
number and percent of teachers who are and are not highly qualified.
At a minimum, the 2007-08 report shall include finalized data for the
2004-05, 2005-06, and 2006-07 fiscal years, and initial data for the
2007-08 fiscal year. The report shall provide data separately for
high-poverty and low-poverty schools. For comparison, the report
shall provide the same longitudinal data for the statewide average of
all school districts as well as the average for school districts not
receiving CMIS support."
   I am reducing this item by $1,600,000 and 4.0 positions to monitor
and provide technical assistance to alternative, county court, and
Division of Juvenile Justice schools serving English learners. An
increase in staff to monitor these schools has not been justified.
Furthermore, monitoring and providing technical assistance for these
schools is an ongoing activity and the use of one-time monies would
be inappropriate. With this veto, these funds will be available to be
distributed to local educational agencies for direct classroom
instruction of English learner students.
   I am deleting Provision 37 to conform to this action.
   I am technically revising Provision 39 to eliminate references
stipulating that $450,000 of one-time funds is made available for
special education dispute resolution contract "cost-of-living
increases". This program does not receive a cost-of-living
adjustment, but rather receives funding on a workload basis.
Accordingly, the funds will be used for addressing new workload
claims to ensure that the public receives prompt and appropriate due
process for consideration of dispute resolution matters, as required
by law.
   I am revising Provision 39 to conform as follows:
   "39. Of the funds appropriated in this item, $450,000 is made
available on a one-time basis for the special education dispute
resolution contract  for cost-of-living increases  .
The State Department of Education, in coordination with the Office
of Administrative Hearings, shall provide quarterly caseload and
expenditure data to the appropriate budget committees of the
Legislature, the Department of Finance, and the Legislative Analyst's
Office by March 1, 2008. The information shall also include updated
budget detail and payment provisions, as shown in Exhibit B of the
interagency agreement."
   I am deleting the $150,000 legislative augmentation to provide an
independent evaluation of the special education dispute resolution
services provided by the Office of Administrative Hearings. The
proposal essentially is a request for data, some of which is
duplicative. Instead, I am directing the Office of Administrative
Hearings to provide the remaining data requested using existing
resources, including specified workload and mediator use data, and
efficiency options for the program.
   I am deleting Provision 40 to conform to this action.
   I am deleting the $1,050,000 legislative augmentation to expand
special education focused monitoring and technical assistance
services in alternative, county court, and Division of Juvenile
Justice schools. This program essentially provides auditing for
compliance with individualized education plans and follow-up for
necessary corrections. I am unable to support this augmentation.
Individualized education plan compliance should already be a part of
the Special Education program not only for alternative schools but in
all educational settings. Students are entitled to receive the
quality services required by law and included in their individual
education plans. This particular funding should be allocated instead
to local grants to fund direct special education instruction.
   I am deleting Provision 41 to conform to this action.
   I am reducing this item to delete the legislative augmentation of
$125,000 for a study to identify options for improving indicators of
student socioeconomic status. Because the study is vague, I am
concerned that $125,000 augmentation may not be adequate to complete
the study and may lead to future cost pressures to complete or expand
the study. With this veto, these funds will be available to be
distributed to local educational agencies for direct classroom
instruction to improve the academic performance of schools. In lieu
of this funding, I request that the Legislative Analyst's Office
partner with the Department of Finance to explore the issue with
existing resources and staff.
   I am deleting Provision 43 to conform to this action.
   I am reducing this item by $350,000 and 4.0 positions for
assistance to local educational agencies (LEAs) that are expected to
face federal No Child Left Behind corrective action sanctions. Until
more definitive results from a privately funded pilot project are
available and a resulting plan for expenditure of the local
assistance dollars is fully developed, it is premature to add staff
to support these activities. Further, until the final determination
is made on how to allocate local assistance funding, it is not clear
that it is necessary for the State Department of Education to provide
a higher level of assistance or that additional positions are
needed.
   I am deleting Provision 44 to conform to this action.
   I am reducing this item to delete the legislative augmentation of
$300,000 intended to support a pilot project that allows schools to
use non-adopted reading language arts materials for English learner
students. The proposed new program would allow the use of
instructional materials that are not aligned to state standards,
which is a concern because all students should have access to
standards-aligned materials. In addition, an alternate $20 million
pilot project is already underway, and that project will be assessing
what educational practices work best for improving the academic
performance of English learners.
   I am deleting Provision 46 to conform to this action.
   I am deleting the $400,000 legislative augmentation to create an
advisory committee and perform a best practices study that would
assist local education agencies in implementing evidence-based
practices intended to assist students with specific learning
disabilities to improve academically. However, I believe local grants
for direct instruction would be a more prudent and timely use of
this funding.
   I am deleting Provision 47 to conform to this action.
   I am reducing this item by $500,000 for an evaluation of the
English Learner Best Practices Pilot Program (Pilot) pursuant to the
requirements of Chapter 561, Statutes of 2006 (AB 2117). During last
year's development of Assembly Bill 2117, which established the
Pilot, the understanding was that the evaluation would be funded by a
not-for-profit organization. However, this funding has not
materialized. The legislative augmentation of $1,000,000 for the
evaluation appears to be excessive. Instead, I am sustaining $500,000
of the augmentation which would be consistent with similar
evaluations done in the recent past. I believe the evaluation is an
important component of ensuring that the $20 million Proposition 98
General Fund provided in the Budget Act of 2006 for the Pilot would
produce conclusions that could lead to improvements in English
learner academic performance.
   I am revising Provision 48 to conform to this action.
   "48. Of the funds appropriated in this item,  $1,000,000
  $500,000  of one-time federal Title III funds is
available on a one-time basis for five years for an independent
evaluation administered by the State Department of Education pursuant
to the requirements of Chapter 561 of the Statues of 2006."
   I am reducing this item by $50,000 for an evaluation to ensure
that local educational agencies (LEAs) are employing methods to
ensure effective and timely oral communication with
non-English-speaking parents. To the extent that this is a problem
for LEAs, they already receive federal funds that can be used for
these purposes. Specifically, the Budget includes over $165 million
in federal Title III funds that can be used for parent outreach
activities such as interpreter services. With this veto, these funds
will be available to be distributed to LEAs for direct classroom
instruction of English learner students.
   I am deleting Provision 49 to conform to this action.
   Item 6110-123-0001--For local assistance, Department of Education.
I revise Provision 1 of this item.
   I am deleting provisional language added by the Legislature that
allocates funds to Intervention Underperforming Schools Program
(II/USP) schools that are still subject to state sanctions and are
working with school assistance and intervention teams (SAITs). The
last cohort of II/USP schools qualified for funding in 2002-03 and
since that time, some schools, even with the assistance of SAITs,
still have not met bare minimum academic benchmarks to improve
student achievement and to exit the program. Consequently, I do not
believe that the state should continue to fund these activities given
the efforts to consolidate state and federal accountability
programs. In addition, I am concerned that the Legislature's shift of
these II/USP costs from another Budget item to this item may create
cost pressures within the II/USP successor program, the High Priority
Schools Grant Program. I continue to support focusing efforts on
improving low-performing schools and request that the State Board of
Education assign the full spectrum of more effective sanction
strategies available under current law to these schools to help them
improve student achievement.
   I am revising Provision 1 as follows to conform to this action.
   "1. Funds appropriated in Schedule (1) are provided solely for the
purpose of implementing the High Priority Schools Grant Program
pursuant to Article 3.5 (commencing with Section 52055.600) of
Chapter 6.1 of Part 28 of the Education Code. Of these funds,
$10,000,000 or whatever greater or lesser amount is necessary, shall
be available to support schools working with school assistance and
intervention teams or schools subject to state sanctions by the
Superintendent of Public Instruction as part of the High Priority
Schools Grant Program  or the Immediate
Intervention/Underperforming Schools Program  ."
   Item 6110-134-0890--For local assistance, Department of Education.
I reduce this item from $77,900,000 to $70,800,000 by deleting:
   (7) 10.30.013-District Assistance and Intervention Teams
($7,100,000),
   and by deleting Provision 9.
   I am deleting $7,100,000 and setting these funds aside for
appropriation in subsequent legislation. This Legislative
augmentation provided funding for District Assistance and
Intervention Teams (DAITs) to work with local educational agencies
(LEAs) facing sanctions under the federal accountability system. The
augmentation is premature because a privately funded pilot project
and evaluation of the effectiveness of DAITs is underway. Until the
evaluation is completed, or an interim report shows that DAITs are
effective, I cannot support funding for these new activities. I
recognize the problem of a growing number of LEAs and schools
entering federal No Child Left Behind sanctions and note that funding
is set aside in this item, pursuant to subsequent legislation, for
implementation of an effective plan that supports LEAs and schools
and their attempts to improve the academic performance of their
students.
   Item 6110-196-0001--For local assistance, Department of Education
(Proposition 98).
   I reduce this item from $1,761,366,000 to $1,756,366,000 by
reducing:
   (1) 30.10.010-Special Programs, Child Development, Preschool
Education from $418,644,000 to $413,644,000,
   and by revising Provision 3 to conform.
   I am reducing $5,000,000 from preschool programs and revising
Provision 3 by eliminating language that would expand the authorized
use of these funds to include wrap-around child care for children
participating in any state preschool program. These funds were
provided to continue support of the Pre-Kindergarten Family Literacy
program (PKFL) that was authorized by Chapter 211, Statutes of 2006
(AB 172) by providing ongoing funding for full-day child care for
children participating in the PKFL program (AB 172 utilized one-time
funding to provide this service in 2006-07). I believe that making
these funds available to all preschool programs would undermine the
PKFL program and negatively impact the ability of families to
participate in the program. I am therefore setting these funds aside
for legislation that would
     restore the priority for these funds to the PKFL programs.
   I am revising Provision 3 to conform to this action as follows:
   "3. Of the amount appropriated in Schedule (1), $50,000,000 is
available for pre-Kindergarten and Family Literacy Preschool programs
pursuant to Chapter 211 of the Statutes of 2006.  Of the
amount appropriated in Schedule (1), $5,000,000 is available for
wraparound care in order to provide direct child care for children in
the state preschool program for the portion of the day that is not
otherwise covered by services provided as part of the state preschool
program.  "
   Item 6120-211-0001--For local assistance, California State
Library. I reduce this item from $21,342,000 to $14,342,000 by
reducing:
   (1) 20.30-Direct Loan and Interlibrary Loan Programs from
$18,616,000 to $11,616,000.
   I am deleting $7,000,000 for Direct Loan and Interlibrary Loan
services. This reduction is necessary in order to further build a
prudent reserve in light of the various uncertainties in revenues and
spending that we face this year.
   Item 6120-221-0001--For local assistance, California State
Library, Public Library Foundation Program. I reduce this item from
$22,360,000 to $14,360,000.
   I am deleting the discretionary $1,000,000 legislative
augmentation to the Public Library Foundation. This reduction is
necessary to limit program expansions and help bring ongoing General
Fund expenditures in line with existing resources. In addition, I am
deleting $7,000,000 in order to further build a prudent reserve in
light of the various uncertainties in revenues and spending that we
face this year.
   Item 6440-001-0001--For support of University of California. I
reduce this item from $3,019,559,000 to $3,016,059,000 by reducing:
   (1) Support from $2,936,063,000 to $2,932,563,000,
   and by revising Provisions 11,13, and 24 and deleting Provisions
26 and 27.
   I am deleting the legislative augmentations for agricultural
research ($1,500,000) and for oceanographic research at the Scripps
Institute of Oceanography ($1,500,000) to limit program expansions
and to help bring ongoing expenditures in line with existing
resources. With these reductions, over $77,000,000 of state and
university funds remains to support agricultural research and over
$9,700,000 of state and university funds remains to support research
at the Scripps Institute of Oceanography.
   I am deleting provisions 26 and 27 to conform to these actions.
   I am deleting $500,000 for UC-Mexico research, which represents
the amount of funding for the financing of a facility located in
Mexico, in order to further build a prudent reserve in light of the
various uncertainties in revenues and spending that we face this
year. The University of California should use other sources for this
purpose at its discretion.
   I am revising Provision 11 to conform as follows:
   "11.  Notwithstanding Section 3.00, for the term of the
financing, the University of California may use funds appropriated in
Schedule (1) for debt service and costs associated with the
purchase, renovation, and financing of a facility for the UC-Mexico
research and academic programs in Mexico City. The amount to be
financed shall not exceed $7,000,000.  The university shall
report to the Legislature by March 15, 2008, on the  (a)
amount of funds spent to support the UC-Mexico facility, including
the specific use of these funds, (b)  amount of funds spent
to support UC-Mexico research and academic programs, and  (c)
 different types of research conducted and programs
operated at the UC-Mexico facility."
   I am sustaining the legislative augmentation of $19,300,000 for
student academic preparation and education programs. However, the
reporting requirement would result in an expenditure increase without
regard to the availability of revenues. Consequently, I am vetoing
this language. Nevertheless, in recognition of the Legislature's
desire to obtain this information, it will be addressed as though the
request had been included in Supplemental Report language.
Therefore, I am instructing the President of the University of
California to comply with this legislative request for this report to
the extent compliance can be achieved using existing resources and
without impairing the University's ability to perform its essential
functions.
   I am revising Provision 24 to conform as follows:
   "24. Of the funds appropriated in Schedule (1), $19,300,000 is for
student academic preparation and education programs (SAPEP) and is
to be matched with $12,000,000 from existing university resources,
for a total of $31,300,000 for these programs. The University of
California shall provide a plan to the Department of Finance and the
fiscal committees of each house of the Legislature for expenditure of
both state and university funds for SAPEP by September 1, 2007.
 It is the intent of the Legislature that the university
report on the use of state and university funds provided for these
programs, including detailed information on the outcomes and
effectiveness of academic preparation programs consistent with the
accountability framework developed by the university in April 2005.
The report shall be submitted to the fiscal committees of each house
of the Legislature not later than April 1, 2008.  "
   Finally, I am revising Provision 13 to delete language that
describes a new methodology for determining the marginal cost of each
additional state-supported student in the future. The new formula is
not transparent, is too difficult to either replicate or verify
allowing for potential manipulation in future years, and does not
properly reflect the full mix of new faculty associated with the
system-wide growth in students.
   I am revising Provision 13 to conform as follows:
   "13. Of the funds appropriated in Schedule (1), $52,930,000 is to
fund 5,000 additional state-supported full-time equivalent students
(FTES) at the University of California, based on a marginal General
Fund cost of $10,586 per additional student.  This funding
rate is based on a methodology for determining the marginal cost of
each additional state-supported student, as adopted by the
Legislature for the 2006-07 fiscal year. This methodology calculates
a total marginal cost (including operation and maintenance costs and
faculty costs based on the salaries of recently hired professors) and
then subtracts from this cost the fee revenue the university
anticipates from each additional student (after adjusting for
financial aid), in order to determine the amount of General Fund
support needed from the state. It is the intent of the Legislature
that enrollment growth funding provided to the university in
subsequent fiscal years be based on this specific methodology.
 The Legislature expects the University of California to
enroll a total of 198,455 state-supported FTES during the 2007-08
academic year. This enrollment target does not include nonresident
students and students enrolled in non-state-supported summer
programs. The University of California shall report to the
Legislature by March 15, 2008, on whether it has met the 2007-08
enrollment goal. For purposes of this provision, enrollment totals
shall only include state-supported students. If the University of
California does not meet its total state-supported enrollment goal by
at least 250 FTES, the Director of Finance shall revert to the
General Fund by April 1, 2008, the total amount of enrollment funding
associated with the total share of the enrollment goal that was not
met."
   Item 6440-305-6048--For capital outlay, University of California.
   I am sustaining the $10,000,000 provided for the Life Sciences
Research and Nursing Education Building in this item.
   In my efforts to continue to support programs and projects that
will alleviate the nursing shortage California is suffering, I am
sustaining this legislative augmentation for the Charles R. Drew
University of Medicine and Science to build a Life Sciences Research
and Nursing Education Building. However, I note that a number of
issues both legal and programmatically need to be resolved before
funds may be expended. Specifically, there are legal concerns
regarding the use of general obligation bonds for this project and
may require the state to acquire and maintain ownership of the
facility being built. Additionally, the nursing program that will
utilize this facility needs to be fully developed before the scope of
this new facility can be generated. Until these concerns are
resolved, no funds for this project may be expended.
   Item 6610-001-0001--For support of California State University. I
revise this item by revising Provision 7.
   I am revising Provision 7 to delete language that describes a new
methodology for determining the marginal cost of each additional
state-supported student in the future. The new formula is not
transparent, is too difficult to either replicate or verify allowing
for potential manipulation in future years, and does not properly
reflect the full mix of new faculty associated with the system-wide
growth in students.
   I am revising Provision 7 to conform as follows:
   "7. Of the amount appropriated in Schedule (1), $64,417,000 is to
fund 8,355 additional state-supported full-time equivalent students
(FTES) at the California State University (CSU), based on a marginal
General Fund cost of $7,710 per additional student.  This
funding rate is based on a methodology for determining the marginal
cost of each additional state-supported student, as adopted by the
Legislature for the 2006-07 fiscal year. This methodology calculates
a total marginal cost (including operation and maintenance costs and
faculty costs based on the salaries of recently hired professors) and
then subtracts from this cost the fee revenue the university
anticipates from each additional student (after adjusting for
financial aid), in order to determine the amount of General Fund
support needed from the state. It is the intent of the Legislature
that enrollment growth funding provided to the university in
subsequent fiscal years be based on this specific methodology.
 The Legislature expects CSU to enroll a total of 342,553
state-supported FTES during the 2007-08 academic year. This
enrollment target does not include nonresident students and students
enrolled in non-state-supported summer programs. The CSU shall
provide a preliminary report to the Legislature by March 15, 2008,
and a final report by May 1, 2008, on whether it has met the 2007-08
enrollment goal. For purposes of this provision, enrollment totals
shall only include state-supported students. If CSU does not meet its
total state-supported enrollment goal by at least 418 FTES, the
Director of Finance shall revert to the General Fund by May 15, 2008,
the total amount of enrollment funding associated with the total
share of the enrollment goal that was not met."
   Item 6870-101-0001--For local assistance, Board of Governors of
the California Community Colleges, Proposition 98. I reduce this item
from $3,906,649,000 to $3,859,753,000 by reducing:
   (1) 10.10.010-Apportionments from $3,093,135,000 to
$3,079,349,000;
   (2) 10.10.020-Basic Skills and Apprenticeship from $48,339,000 to
$15,229,000;
   and by deleting subdivision (c) of Provision 7.
   I am reducing Schedule (1) by $13,786,000 and Schedule (2) by
$33,110,000 to delete the legislative augmentations for a noncredit
course rate increase and a basic skills student funding increase,
respectively. However, I am setting these funds aside for legislation
that appropriates these funds for improving outcomes for at-risk
students in a manner more consistent with the priorities of my
proposed Student Success Initiative ($33,110,000) and the remainder
for other more compelling Proposition 98 funding needs.
   The Legislature's proposed $13,786,000 augmentation to support a
second consecutive noncredit rate increase is premature and
inconsistent with the agreement reached in last year's compromise on
Chapter 631, Statutes of 2006 (SB 361). As part of that agreement, my
Administration indicated that any future noncredit rate increase
would be subject to improved student outcomes from last year's
initial investment of $30,000,000. To date, no accountability
measures have been developed to evaluate this investment, nor has my
Administration received a comprehensive list of courses and programs
that have been approved by the Chancellor's Office for funding from
the 2006-07 increase. While I cannot sustain this augmentation, the
budget does provide a 4.53-percent COLA, which, when combined with
the ongoing $30,000,000 increase from 2006-07, provides for a
23-percent increase in per student funding for selected noncredit
courses since the 2005-06 fiscal year.
   I am deleting Provision 4.6 to conform to this action.
   I cannot support the Legislature's $33,110,000 redirection of
funds proposed for my May Revision's Student Success Initiative
because the accompanying control provisions do not contain the
appropriate accountability and distribution mechanisms necessary to
ensure this investment improves student outcomes, particularly for
at-risk students transitioning from high schools. With this
reduction, the community colleges still retain $33,110,000 in unspent
current year funds that carryover for expenditure in the budget year
to address strategies for improving basic skills instruction. My
Administration is prepared to work with the Chancellor's Office to
reinstate the ongoing funding pending agreement on revised
accountability and distribution provisions that address my priority
for improving meaningful outcomes for students transitioning from
high school.
   I am deleting subdivision (c) of provision 7 to conform to this
action.
   Item 6870-486--Reappropriation, Proposition 98, Board of Governors
of the California Community Colleges. I reduce this item from
$26,668,000 to $21,168,000 by deleting legislative augmentations for
the Part-time Faculty Health Insurance Program in Schedule (4) and
the proposed Construction College Pilot Program in Schedule (6).
   I am deleting the one-time augmentation of $4,000,000 from the
Proposition 98 Reversion Account for the Part-time Faculty Health
Insurance Program because this program was established as an
incentive grant program to encourage additional district investments
in benefits for part-time faculty. However, these programs were not
intended to require additional one-time or ongoing contributions from
the state. Given the significant general purpose increases provided
in this Budget for community colleges, I believe that districts have
sufficient resources to provide additional benefits to part-time
faculty at their discretion.
   I am also deleting the one-time augmentation of $1,500,000 for a
Construction College pilot program at San Jose City College and
another, unspecified site. While this program may have merit from a
local perspective, significant investments are already proposed for
apprenticeship and pre-apprenticeship programs, as well as
traditional K-12 career path programs including construction
technology, within my anticipated 2007-08 Career Technical Education
Initiative expenditure plan. Additional funding for a
construction-specific program would establish an undesirable
precedent for singling out a local project for funding without
competing for limited resources with other meritorious local
projects. It is also premature to fund this program until other
construction and related program grants can be evaluated.
   Item 7980-001-0001--For support of Student Aid Commission. I
reduce this item from $15,449,000 to $15,349,000 by reducing:
   (1) 15-Financial Aid Grants Program from $13,886,000 to
$13,786,000,
   and by deleting Provision 5.
   I am deleting the $100,000 legislative augmentation for one
position for purposes of administering the Public Interest Attorney
Loan Repayment Program to conform to my action on Item 7980-101-0001.

   I am deleting Provision 5 to conform to this action.
   Item 7980-101-0001--For local assistance, Student Aid Commission.
I reduce this item from $859,814,000 to $857,614,000 by reducing:
   (1) 15-Financial Aid Grants Program from $889,950,000 to
$887,750,000,
   and by revising Provision 5 and deleting Provision 9.
   I am reducing the legislative augmentation for the California
Student Opportunity and Access Program (CalSOAP) by $2,200,000. This
program provides financial aid awareness as well as student academic
preparation and education services to public school students. This
reduction is necessary in order to build a prudent reserve in light
of the various uncertainties in revenues and spending that we face
this year. Additionally, I am concerned that this program's various
student academic support and preparation activities have not been
subjected to a cost-effectiveness analysis in many years. With this
reduction, $6,367,000 still remains for CalSOAP to support financial
aid awareness activities. Further, it is my understanding that the
California Student Aid Commission recently approved $2,200,000 from
the Student Loan Operating Fund for similar financial aid outreach
purposes. Therefore, this augmentation is largely redundant with
planned expenditures.
   I am revising Provision 5 to conform to this action:
   "5. Of the funds appropriated in Schedule (1),  $8,567,000
  $6,367,000  is for the California Student
Opportunity and Access Program established pursuant to Article 4
(commencing with Section 69560) of Chapter 2 of Part 42 of the
Education Code and shall be available to provide financial aid
awareness and outreach to students who are preparing to enter, or are
currently enrolled in, college."
   Additionally, I am deleting the legislative language augmentation
included in Provision 9 that authorizes 100 new warrants for the
Public Interest Attorney Loan Repayment Program. The authorization of
100 loan assumption warrants would commit the state to out-year
costs in excess of $1,000,000. Furthermore, this program authorizes
warrants for attorneys employed by local government. Thus, in effect,
this augmentation would serve to subsidize local government employee
recruitment and retention with state funds. Therefore, this action
is necessary to limit program expansions.
   Item 7100-001-0185--For support of Employment Development
Department. I reduce this item from $79,495,000 to $67,435,000.
   I am reducing the $27,060,000 legislative augmentation for the Job
Services Program by $12,060,000. This program provides employment
services in the One-Stop Career Centers, facilitating a match between
employers' needs and job seekers' skills, and while I agree with the
Legislature that some additional resources would benefit job
seekers, I am confident that the $168,000,000 available will be
sufficient in meeting the employment demands of California
communities. Finally, I am directing the Employment Development
Department to minimize the number of positions to be reduced in job
services locations by making reductions in Administration and
facility operations.
   I am deleting Provision 4 to conform to this action.
   Item 7350-001-0001--For support of Department of Industrial
Relations. I reduce this item from $67,768,000 to $67,383,000 by
reducing:
   (6) 50-Division of Labor Standards Enforcement from $49,933,000 to
$49,548,000.
   I am deleting $385,000 and 5.0 positions for the Licensing and
Registration Unit provided for recently enacted legislation including
the registration of employers in the car washing and polishing
industry. This reduction is necessary to further build a prudent
reserve in light of the various uncertainties in revenues and
spending that we face this year.
   Item 7350-011-0223--For support of Department of Industrial
Relations. I revise this item by deleting Provision 1.
   I delete Provision 1, which would require the Department of
Industrial Relations to provide a long-term plan and a detailed
repayment schedule by January 10, 2008, for the California
Occupational Safety and Health Administration, Targeted Inspection
and Consultation Fund loan.
   This reporting requirement would result in an expenditure increase
without regard to the availability of revenues. Consequently, I am
vetoing this language. Nevertheless, in recognition of the
Legislature's desire to obtain this information, it will be addressed
as though the request had been included in Supplemental Report
language. Therefore, I am instructing the Director of the Department
of Industrial Relations to comply with this legislative request for
this report to the extent compliance can be achieved using existing
resources and without impairing the Department of Industrial
Relations' ability to perform its essential functions.
   Item 8120-011-0268--For support of Commission on Peace Officer
Standards and Training. I revise this item by deleting Provision 3.
   I am deleting Provision 3, which would require the Commission on
Peace Officer Standards and Training to report to the Legislature on
the findings of the local law enforcement agency audits conducted by
the Controller on behalf of the commission. This reporting
requirement would result in an expenditure increase without regard to
the availability of revenues. Consequently, I am vetoing this
language. Nevertheless, in recognition of the Legislature's desire to
obtain this information, it will be addressed as though the request
had been included in Supplemental Report language. Therefore, I am
instructing the Executive Director of the Commission on Peace Officer
Standards and Training to comply with this legislative request for
this report to the extent compliance can be achieved using existing
resources and without impairing the Commission on Peace Officer
Standards and Training's ability to perform its essential functions.
   Item 8660-001-0042--For support of Public Utilities Commission. I
reduce this item from $3,526,000 to $3,354,000.
   I am deleting a legislative augmentation of $172,000 and 2.0
positions for Public Utilities Commission's (PUC) rail crossing
safety staff. In the 2006 Budget Act, I included three positions for
the rail safety crossing program, giving the PUC 20.0 base positions
for rail crossing safety. To date, all those positions are not
filled. It would be premature to authorize additional positions until
the positions at the PUC are filled and the impact on workload can
be determined. With these reductions, $3,354,000 still remains to
support the rail crossing safety staff.
   Item 8660-001-0462--For support of Public Utilities Commission. I
revise this item by reducing:
   (1) 10-Regulation of Utilities from $120,157,000 to $119,857,000;
   (3) 20-Regulation of Transportation from $19,911,000 to
$19,739,000;
   (7) Amount payable from the State Highway Account, State
Transportation Fund (Item 8660-001-0042) from -$3,526,000 to
-$3,354,000; and
   (18) Amount payable from the Public Utilities Commission Rate
payer Advocate Account (Item 8660-001-3089) from -$21,632,000 to
-$21,332,000.
   I am revising this item to conform to the actions I have taken in
Item 8660-001-3089 and Item 8660-001-0042.
   Item 8660-001-3089--For support of Public Utilities Commission. I
reduce this item from $21,632,000 to $21,332,000.
   I am deleting a legislative augmentation of $300,000 and 3
positions for the Division of Ratepayer Advocates' (DRA) water audits
division. The Budget Act of 2006 provided additional auditors to the
Public Utilities Commission (Commission) that were intended to meet
the needs of the DRA as well as the balance of the Commission. With
these reductions, $2,200,000 and 22.0 positions still remain to
support the Division of Ratepayer Advocates water auditing staff.
   Item 8770-001-0462--For Support of the Electricity Oversight
Board. I reduce this item from $3,579,000 to $2,684,000 by reducing:
   (1) 30-Administration from $4,128,000 to $3,096,000, and
   (2) Amount payable from the Energy Resources Programs Account
   (Item 8770-001-0465) from -$549,000 to -$412,000.
   I am reducing Schedule (1) to reflect my expectation that by April
1, 2008, the Electricity Oversight Board (EOB) will have transferred
its remaining duties to the Public Utilities Commission. The EOB was
established in 1996 as part of the state's attempt to restructure
the electricity industry, and was given the responsibility for
overseeing the California Independent System Operator, a non-profit
entity that operates most of California's electric transmission grid.
Since that time, changes in state and federal law have eliminated
the need for the EOB; the duties it performs are now also performed
either by the California Independent System Operator or the
California Public Utilities Commission. When I first took office, the
California Performance Review determined that the EOB should be
eliminated, with its remaining functions transferred to other
entities. It is time to implement this recommendation. With this
reduction, sufficient funding will remain in the EOB budget to allow
for an orderly staffing reduction plan so staff will have every
opportunity to transfer to new duties within California state
government. I am requesting the Department of Personnel
Administration to fully assist the EOB in this effort.
   Item 8770-001-0465--For support of the Electricity Oversight
Board. I reduce this item from $549,000 to $412,000.
   I am revising this item to conform to actions I have taken in Item
8770-001-0462.
   Item 8910-001-0001--For support of Office of Administrative Law. I
revise this item by deleting Provision 1.
   I am deleting Provision 1, which would require the Office of
Administrative Law to report to the Legislature on the use of
positions assigned to underground regulation review. This reporting
requirement would result in an expenditure increase without regard to
the availability of revenues. Consequently, I am vetoing this
language. Nevertheless, in recognition of the Legislature's desire to
obtain this information, it will be addressed as though the request
had been included in Supplemental Report language. Therefore, I am
instructing the director of the Office of Administrative Law to
comply with this legislative request for this report to the extent
compliance can be achieved using existing resources and without
impairing the Office of Administrative Law's ability to perform its
essential functions.

   Item 8955-001-0001--For support of California Department of
Veterans Affairs. I revise this item by deleting Provision 5.
   I delete Provision 5, which would require the California
Department of Veterans Affairs (CDVA) to report on the Department's
progress in providing a "restraint-free" environment for residents at
the Veterans Homes. This reporting requirement would result in an
expenditure increase without regard to the availability of revenues.
Consequently, I am vetoing this language. Nevertheless, in
recognition of the Legislature's desire to obtain this information,
it will be addressed as though the request had been included in
Supplemental Report language. Therefore, I am instructing the
Secretary of the CDVA to comply with this legislative request for
this report to the extent compliance can be achieved using existing
resources and without impairing the CDVA's ability to perform its
essential functions.
   Item 9210-107-0001--For local assistance, Local Government
Financing. I delete this item.
   I am deleting the $3,500,000 legislative augmentation for grants
to county assessors, which would be made in proportion to the amount
of property tax received by their K-14 schools. This reduction is
necessary to limit program expansions and provide for a prudent
General Fund reserve in light of the various uncertainties in
revenues and spending that we face this year.
   Local government is anticipated to receive $28,000,000 in property
tax revenue in 2007-08 pursuant to a new method of collecting
fractionally owned aircraft property taxes, facilitated by budget
trailer bill legislation. As a result, this $3,500,000 augmentation
is unnecessary.
   Item 9800-001-0001--For Augmentation for Employee Compensation. I
reduce this item from $525,262,000 to $453,262,000.
   I am reducing funding by $72,000,000 for employee compensation and
instructing my administration to absorb this reduction in order to
further build a prudent reserve in light of the various uncertainties
in revenues and spending that we face this year. To effect this
reduction, I am directing the Director of Finance to reduce the
amount that would have been allocated to each department from Item
9800-001-0001 by an amount equal to 8.576 percent of that department'
s General Fund expenditures for personal services in April of 2007.
With this reduction, $453,262,000 still remains to be allocated by
the Department of Finance for increases in employee compensation that
the Department of Personnel Administration has already agreed to
pay. This reduced amount available for allocation to departments will
not affect pay or benefits for employees in any way. Employees will
receive full pay, and the funding for pay increases not available
from Item 9800 will be funded by a redirection within existing
resources by individual departments. So, all previously negotiated
employee compensation increases, and all employee compensation
increases for medical, mental, and dental health positions arising
from the Coleman and Plata court cases will be unaffected by my
action to reduce this appropriation.
   Item SEC 24.55--California Research and Education Network. I
delete this control section.
   I am deleting Control Section 24.55 because this language is
unnecessary and could increase administrative costs at the expense of
either direct network services or potentially higher fees. Chapter
552, Statutes of 2006, already provides appropriate oversight for
K-12. Similarly, annual program review through the budget process,
the governance structure of the higher education segments, and the
current business practices of establishing interagency agreements and
essentially using cost-based accounting for each educational segment
already provide appropriate accountability for higher education.
   With the above deletions, revisions, and reductions, I hereby
approve Senate Bill 77.
                                                Schwarzenegger,
Arnold

   SB 77, Ducheny. Budget Act of 2007.
   This bill would make appropriations for support of state
government for the 2007-08 fiscal year.
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Appropriation: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.00.  This act shall be known and may be cited as the
"Budget Act of 2007."
  SEC. 1.50.  (a) In accordance with Section 13338 of the Government
Code, as added by Chapter 1284, Statutes of 1978, and as amended by
Chapter 1286, Statutes of 1984, it is the intent of the Legislature
that this act utilize a coding scheme compatible with the Governor's
Budget and the records of the Controller, and provide for the
appropriation of federal funds received by the state and deposited in
the State Treasury.
   (b) Essentially, the format and style are as follows:
   (1) Appropriation item numbers have a code which is common to all
the state's fiscal systems. The meaning of this common coded item
number is as follows:
   2720--Organization Code (this code represents the California
Highway Patrol)
   001--Reference Code (first appropriation for a particular fund for
support of each department)
   0044--Fund Code (Motor Vehicle Account, State Transportation Fund)

   (2) Appropriation items are organized in organization code order.
   (3) All the appropriation items, reappropriation items, and
reversion items, if any, for each department or entity are adjacent
to one another.
   (4) Federal funds received by the state and deposited in the State
Treasury are appropriated in separate items.
   (c) The Department of Finance may authorize revisions to the codes
used in this act in order to provide compatibility between the codes
used in this act and those used in the Governor's Budget and in the
records of the State Controller.
   (d) Notwithstanding any other provision of this act, the
Department of Finance may revise the schedule of any appropriation
made in this act where the revision is of a technical nature and is
consistent with legislative intent. These revisions may include, but
shall not be limited to, the substitution of category for program or
program for category limitations, the proper categorization of
allocated administration costs and cost recoveries, the distribution
of any unallocated amounts within an appropriation and the adjustment
of schedules to facilitate departmental accounting operations,
including the elimination of categories providing for amounts payable
from other items or other appropriations and the distribution of
unscheduled amounts to programs or categories. These revisions shall
include a certification that the revisions comply with the intent and
limitation of expenditures as appropriated by the Legislature.
   (e) Notwithstanding any other provision of this act, when the
Department of Finance, pursuant to subdivision (d), approves the
schedule or revision of any appropriation relating to the elimination
of amounts payable, the language authorizing the transfer shall also
be eliminated.
  SEC. 1.80.  (a) The following sums of money and those appropriated
by any other sections of this act, or so much thereof as may be
necessary unless otherwise provided herein, are hereby appropriated
for the use and support of the State of California for the 2007-08
fiscal year beginning July 1, 2007, and ending June 30, 2008. All of
these appropriations, unless otherwise provided herein, shall be paid
out of the General Fund in the State Treasury.
   (b) All capital outlay appropriations and reappropriations, unless
otherwise provided herein, are available as follows:
   (1) Studies, preliminary plans, working drawings, and minor
capital outlay funds are available for expenditure until June 30,
2008.
   (2) Construction funds are available for expenditure until June
30, 2010, if allocated through fund transfer or approval to proceed
to bid by the Department of Finance by June 30, 2008. Any funds not
allocated by June 30, 2008, shall revert on July 1, 2008, to the fund
from which the appropriation was made.
   (3) All other capital outlay funds are available until June 30,
2010.
   (c) Whenever by constitutional or statutory provision the revenues
or receipts of any institution, department, board, bureau,
commission, officer, employee, or other agency, or any moneys in any
special fund created by law therefor, are to be used for salaries,
support, or any proper purpose, expenditures shall be made therefrom
for any such purpose only to the extent of the amount therein
appropriated, unless otherwise stated herein.
   (d) Appropriations for purposes not otherwise provided for herein
that have been heretofore made by any existing constitutional or
statutory provision shall continue to be governed thereby.
  SEC. 2.00.  Items of appropriation.
LEGISLATIVE/JUDICIAL/EXECUTIVE

       Legislative

0110-001-0001--For support of Senate...... 107,556,000
     Schedule:
     (1)   101001-Salaries of
           Senators............   6,208,000
     (2)   317295-Mileage......      11,000
     (3)   317292-Expenses.....   1,480,000
     (4)   500004-Operating
           Expenses............  99,022,000
     (5)   317296-Automotive
           Expenses............     835,000
     Provisions:
     1.    The funds appropriated in
           Schedule (4) are for operating
           expenses of the Senate,
           including personal services for
           officers,     clerks, and all
           other employees, and
           legislative committees thereof
           composed in whole or in part of
           Members of the Senate, and for
           support of joint expenses of
           the Legislature, to be
           transferred by the Controller
           to the Senate Operating Fund.
     2.    The funds appropriated in
           Schedule (5) are for operating
           expenses of the Senate relating
           to the purchase, maintenance,
           repair, insurance, and other
           costs of operating automobiles
           for the use of Members of the
           Senate, to be transferred by
           the Controller to the Senate
           Operating Fund.
     3.    The funds appropriated in
           Schedules (1), (2), (3), and
           (5) may be adjusted for
           transfers to or from the Senate
           Operating Fund.


0120-011-0001--For support of Assembly.... 145,952,000
    Schedule:
    (1)   101001-Salaries of
          Assembly Members....   11,247,000
    (2)   317295-Mileage......        8,000
    (3)   317292-Expenses.....    3,045,000
    (4)   500004-Operating
          Expenses............  130,793,000
    (5)   317296-Automotive
          Expenses............      859,000
    Provisions:
    1.    The funds appropriated in
          Schedule (4) are for operating
          expenses of the Assembly,
          including personal services for
          officers,     clerks, and all
          other employees, and legislative
          committees thereof composed in
          whole or in part of Members of
          the Assembly, and for support of
          joint expenses of the
          Legislature, to be transferred
          by the Controller to the
          Assembly Operating Fund.
    2.    The funds appropriated in
          Schedule (5) are for operating
          expenses of the Assembly
          relating to the lease,
          maintenance, repair, insurance,
          and other costs of operating
          automobiles for the use of
          Members of the Assembly, to be
          transferred by the Controller to
          the Assembly Operating Fund.
    3.    The funds appropriated in
          Schedules (1), (2), (3), and (5)
          may be adjusted for transfers to
          or from the Assembly Operating
          Fund.


0130-021-0001--For support of Office of the
Legislative Analyst.................................. 0
     Schedule:
     (1)    Expenses of the Office of
            the Legislative Analyst....      7,200,000
     (2)    Transferred from Item 0110-
            001-0001...................     -3,600,000
     (3)    Transferred from Item 0120-
            011-0001...................     -3,600,000
     Provisions:
     1.     The funds appropriated in Schedule (1)
            are for the expenses of the Office of the
            Legislative Analyst and of the Joint
            Legislative Budget Committee for any
            charges, expenses, or claims either may
            incur, available without regard to fiscal
            years, to be paid on certification of the
            Chairperson of the Joint Legislative
            Budget Committee or his or her designee.
     2.     Funds identified in Schedules (2) and (3)
            may be transferred from the Senate
            Operating Fund, by the Senate Committee
            on Rules, and the Assembly Operating
            Fund, by the Assembly Committee on Rules.


0160-001-0001--For support of Legislative
Counsel Bureau................................ 87,148,000
     Schedule:
     (1)   Support................   87,279,000
     (2)   Reimbursements.........     -131,000

       Judicial


0250-001-0001--For support of Judicial
Branch.................................... 346,429,000
    Schedule:
    (1)    10-Supreme Court....  44,924,000
    (2)    20-Courts of Appeal. 198,626,000
    (3)    30-Judicial Council. 101,895,000
    (4)    35-Judicial Branch
           Facility Program....   2,684,000
    (5)    50-Habeas Corpus
           Resource Center.....  14,263,000
    (6)    Reimbursements......  -6,690,000
    (7)    Amount payable from
           the Motor Vehicle
           Account, State
           Transportation Fund
           (Item 0250-001-
           0044)...............    -179,000
    (8)    Amount payable from
           the Court
           Interpreters' Fund
           (Item 0250-001-
           0327)...............    -155,000
    (9)    Amount payable from
           the Federal Trust
           Fund (Item 0250-001-
           0890)...............  -4,116,000
    (10)   Amount payable from
           the Appellate Court
           Trust Fund (Item
           0250-001-3060)......  -4,823,000
    Provisions:
    1.     Notwithstanding Section 26.00,
           the     funds appropriated or
           scheduled in this item may be
           allocated or reallocated among
           categories by order of the
           Judicial Council.
    2.     Of the funds appropriated in
           this item, $200,000 is
           available for reimbursement to
           the Attorney General, or for
           hiring outside counsel, for
           prelitigation and litigation
           fees and costs, including any
           judgment, stipulated judgment,
           offer of judgment, or
           settlement. This amount is for
           use in connection with (a)
           matters arising from the
           actions of appellate courts,
           appellate court bench officers,
           or appellate court employees;
           (b) matters arising from the
           actions of the Judicial
           Council, council members, or
           council employees or agents;
           (c) matters arising from the
           actions of the Administrative
           Office of the Courts or its
           employees; or (d) employment
           litigation arising from the
           actions of trial courts, trial
           court bench officers, or trial
           court employees. Either the
           state or the Judicial Council
           must be named as a defendant or
           alleged to be the responsible
           party. Any funds not used for
           this purpose shall revert to
           the General Fund.
    3.     The funds appropriated in
           Schedule (5) shall be available
           for costs associated directly
           or indirectly with the
           California Habeas Corpus
           Resource Center (CHCRC). The
           CHCRC shall report to the
           Legislature and the Department
           of Finance on September 1,
           2007, and April 1, 2008, on
           expenditures, specifically
           detailing personal services
           expenditures, operating
           expenses, and equipment
           expenditures.
    4.     Notwithstanding any other
           provision of     law, upon
           approval and order of the
           Department of Finance, the
           amount appropriated in this
           item shall be reduced by the
           amount transferred in Item 0250-
           011-0001 to provide adequate
           resources to the Judicial
           Branch Workers' Compensation
           Fund to pay workers'
           compensation claims for
           judicial branch employees and
           justices, and administrative
           costs pursuant to Section
           68114.10 of the Government Code.
    5.     It is the intent of the
           Legislature that the
           Administrative Office of the
           Courts prioritize existing
           resources in order to provide a
           $5 increase in the hourly rates
           paid to attorneys in the Court
           Appointed Counsel Program.


0250-001-0044--For support of Judicial
Branch, for payment to Item 0250-001-
0001, payable from the Motor Vehicle
Account, State Transportation Fund........     179,000


0250-001-0159--For support of Judicial
Branch, payable from the Trial Court
Improvement Fund............................  8,693,000
     Provisions:
     1.  Upon approval by the Administrative
         Director of the Courts, the
         Controller shall increase this item
         up to $18,100,000 for recovery of
         costs     for administrative
         services provided to the trial
         courts by the Administrative Office
         of the Courts.
     2.  Upon approval by the Administrative
         Director of the Courts, and
         notification to the Department of
         Finance, the chairpersons of the
         committees in each house of the
         Legislature that consider
         appropriations and the State
         Budget, and the Chairperson of the
         Joint Legislative Budget Committee,
         the Controller shall additionally
         increase this item by an amount, or
         amounts, totaling no more than
         $1,810,000. Any augmentation shall
         be authorized no sooner than 30
         days after notification in writing
         to the chairpersons of the
         committees in each house of the
         Legislature that consider
         appropriations, the chairpersons of
         the committees and appropriate
         subcommittees that consider the
         State Budget, and the Chairperson
         of the Joint Legislative Budget
         Committee, or not sooner than
         whatever lesser time the
         Chairperson of the Joint
         Legislative Budget Committee or his
         or her designee may determine.


0250-001-0327--For support of Judicial
Branch, for payment to Item 0250-001-
0001, payable from the Court
Interpreters' Fund........................     155,000


0250-001-0890--For support of Judicial
Branch, for payment to Item 0250-001-
0001, payable from the Federal Trust Fund.   4,116,000


0250-001-0932--For support of Judicial
Branch, payable from the Trial Court Trust
Fund......................................... 3,396,000
     Schedule:
     (1) 30-Judicial Council........ 3,396,000
     Provisions:
     1.  Upon approval by the Director of the
         Administrative Office of the Courts,
         the Controller shall increase this
         item by an amount sufficient to
         allow for the expenditure of any
         transfer to this item made pursuant
         to Provisions 8 and 9 of Item 0250-
         101-0932.


0250-001-3037--For support of Judicial
Branch, payable from the State Court
Facilities Construction Fund.................. 38,530,000
     Schedule:
     (1)   30-Judicial Council....    7,225,000
     (2)   35-Judicial Branch
           Facility Program.......   31,305,000
     Provisions:
     1.    The Director of Finance may augment
           this item by an amount not to
           exceed available funding in the
           State Court Facilities Construction
           Fund, after review of a request
           submitted by the Administrative
           Office of the Courts that
           demonstrates a need for additional
           resources associated with and
           including, but not limited to, the
           transfer, acquisition,
           rehabilitation, construction, or
           financing of court facilities. This
           request shall be submitted no later
           than 60 days prior to the effective
           date of the augmentation. Any
           augmentation shall be authorized no
           sooner than 30 days after
           notification in writing to the
           chairpersons of the committees in
           each house of the Legislature that
           consider appropriations, the
           chairperson of the committee and
           appropriate subcommittees that
           consider the State Budget, and the
           Chairperson of the Joint
           Legislative Budget Committee, or
           not sooner than whatever lesser
           time the Chairperson of the Joint
           Legislative Budget Committee or his
           or her designee may determine.


0250-001-3060--For support of Judicial
Branch, for payment to Item 0250-001-0001,
payable from the Appellate Court Trust Fund.  4,823,000
     Provisions:
     1.  Upon approval of the Director of
         Finance, the amount available for
         expenditure in this item may be
         augmented by the amount of any
         additional resources available in
         the Appellate Court Trust Fund,
         which is in addition to the amount
         appropriated in this item. Any
         augmentation shall be authorized no
         sooner than 30 days after
         notification in writing to the
         chairpersons of the committees in
         each house of the Legislature that
         consider appropriations, the
         chairpersons of the committees and
         appropriate subcommittees that
         consider the State Budget, and the
         Chairperson of the Joint
         Legislative Budget Committee, or
         not sooner than whatever lesser
         time the Chairperson of the Joint
         Legislative Budget Committee, or
         his or her designee, may determine.


0250-001-3066--For support of Judicial
Branch, payable from the Court Facilities
Trust Fund.................................... 24,945,000
     Schedule:
     (1)   35-Judicial Branch
           Facility Program.......   25,070,000
     (2)   Reimbursements.........     -125,000
     Provisions:
     1.    Notwithstanding any other provision
           of law, the Director of Finance may
           authorize expenditures in excess of
           this item for the operation,
           repair, and maintenance of court
           facilities pursuant     to Section
           70352 of the Government Code.


0250-003-0001--For support of Judicial
Branch for rental payments on lease-revenue
bonds........................................ 2,948,000
     Schedule:
     (1) Base Rental and Fees....... 2,932,000
     (2) Insurance..................    16,000
     Provisions:
     1.  The funds appropriated in this item
         shall be made available for costs
         associated with rental payments on
         lease-revenue bonds for the Court of
         Appeal, Fourth Appellate District,
         Division 2, in Riverside, California.
     2.  The Controller shall transfer funds
         appropriated in this item according
         to a schedule to be provided by the
         State Public Works Board. The
         schedule shall be provided on a
         monthly basis or as otherwise might
         be needed to ensure debt
         requirements are met.
     3.  This item may contain adjustments
         pursuant to Section 4.30 that are
         not currently reflected. Any
         adjustments to this item shall be
         reported to the Joint Legislative
         Budget Committee pursuant to Section
         4.30.


0250-011-0001--For transfer, upon order of
the Director of Finance, to the Judicial
Branch Workers' Compensation Fund...........      1,000
     Provisions:
     1.  Notwithstanding any other provision
         of law, upon approval and order of
         the Department of Finance, the
         Judicial Council     shall adjust
         the amount of this transfer to
         provide adequate resources to the
         Judicial Branch Workers'
         Compensation Fund to pay workers'
         compensation claims for judicial
         branch employees and justices, and
         administrative costs pursuant to
         Section 68114.10 of the Government
         Code.


0250-012-0001--For transfer by the
Controller to the Court Facilities Trust
Fund......................................  22,383,000


0250-101-0001--For local assistance,
Judicial Branch............................ 18,496,000
    Schedule:
    (1)    45.10-Support for
           Operation of Trial
           Courts..............    6,827,000
    (2)    45.55.010-Child
           Support
           Commissioners
           Program (Article 4
           (commencing with
           Section 4250) of
           Chapter 2 of Part 2
           of Division 9 of
           the Family Code)....   49,241,000
    (3)    45.55.020-
           California
           Collaborative and
           Drug Court Projects.    3,032,000
    (4)    45.55.030-Federal
           Child Access and
           Visitation Grant
           Program.............      800,000
    (5)    45.55.050-Federal
           Court Improvement
           Grant Program.......      700,000
    (6)    45.55.070-Grants-
           -Other..............      745,000
    (7)    45.55.080-Federal
           Grants--Other.......      775,000
    (8)    45.55.090-Equal
           Access Fund Program.   10,495,000
    (9)    Reimbursements......  -51,844,000
    (10)   Amount payable from
           Federal Trust Fund
           (Item 0250-101-
           0890)...............   -2,275,000
    Provisions:
    1.     In order to improve equal access
           and the fair administration of
           justice, the funds appropriated
           in Schedule (8) are to be
           distributed by the Judicial
           Council through the Legal
           Services Trust Fund Commission
           to qualified legal services
           projects and support centers as
           defined in Sections 6213 to
           6215, inclusive, of the Business
           and Professions Code, to be used
           for legal services in civil
           matters for indigent persons.
           The Judicial Council shall
           approve awards made by the
           commission if the council
           determines that the awards
           comply with statutory and other
           relevant guidelines. Ten percent
           of the funds in Schedule (8)
           shall be for joint projects of
           courts and legal services
           programs to make legal
           assistance available to pro per
           litigants and 90 percent of the
           funds in Schedule (8) shall be
           distributed consistent with
           Sections 6216 to 6223,
           inclusive, of the Business and
           Professions Code. The Judicial
           Council may establish additional
           reporting or quality control
           requirements     consistent with
           Sections 6213 to 6223,
           inclusive, of the Business and
           Professions Code.
    2.     The amount appropriated in
           Schedule (1) is available for
           reimbursement of court costs
           related to the following
           activities: (a) payment of
           service of process fees billed
           to the trial courts pursuant to
           the provisions of Chapter 1009
           of the Statutes of 2002, (b)
           payment of the court costs
           payable under Sections 4750 to
           4755, inclusive, and Section
           6005 of the Penal Code, and (c)
           payment of court costs of
           extraordinary homicide trials.


0250-101-0890--For local assistance,
Judicial Branch, for payment to Item 0250-
101-0001, payable from the Federal Trust
Fund......................................   2,275,000


0250-101-0932--For local assistance,
Judicial Branch, payable from the Trial
Court Trust Fund.......................... 3,056,153,000
    Schedule:
    (1)   45.10-Support for
          Operation of the     2,632,142,00
          Trial Courts........            0
    (2)   45.25-Compensation
          of Superior Court
          Judges..............  298,858,000
    (3)   45.35-Assigned
          Judges..............   24,960,000
    (4)   45.45-Court
          Interpreters........   90,284,000
    (5)   45.55.060-Court
          Appointed Special
          Advocate (CASA)
          Program.............    2,231,000
    (6)   45.55.065-Model
          Self-Help Program...      965,000
    (8)   45.55.090-Equal
          Access Fund Program.    5,527,000
    (9)   45.55.095-Family
          Law Information
          Centers.............      348,000
    (10)  45.55.100-Civil
          Case Coordination...      838,000
    Provisions:
    1.    Notwithstanding Section 26.00,
          the funds appropriated or
          scheduled in this item may be
          allocated or reallocated among
          categories by the Judicial
          Council.
    2.    The funds appropriated in
          Schedule (2) shall be made
          available for costs of the
          workers' compensation program
          for trial court judges.
    3.    The amount appropriated in
          Schedule (3) shall be made
          available for all judicial
          assignments. Schedule (3)
          expenditures for necessary
          support staff may not exceed the
          staffing level that is necessary
          to support the equivalent of
          three judicial officers sitting
          on assignments.
    4.    The funds appropriated in
          Schedule (4) shall be for
          payments for services of
          contractual court interpreters,
          and certified and registered
          court interpreters employed by
          the courts, and the following
          court interpreter coordinators:
          1.0 each in counties of the 1st
          through the 15th classes, 0.5
          each in counties of the 16th
          through the 31st classes, and
          0.25 each in counties of the
          32nd through the     58th
          classes. For the purposes of
          this provision, ""court
          interpreter coordinators'' may
           be full- or part-time court
          employees, or those contracted
          by the court to perform these
          services.
           The Judicial Council shall set
          statewide or regional rates and
          policies for payment of court
          interpreters, not to exceed the
          rate paid to certified
          interpreters in the federal
          court system.
          The Legislature finds and
          declares that there exists a
          shortage of certified and
          registered interpreters in the
          state courts that reduces the
          state's ability to provide
          meaningful access to justice for
          all court users, including
          parties, witnesses, and victims.
          Therefore, every     effort must
          be made to recruit and retain
          qualified interpreters to work
          in the state courts.
          Of the amount appropriated in
          Schedule (4), not less than
          $5,000,000, not including funds
          provided pursuant to Section
          77202 of the Government Code,
          shall be provided to the trial
          courts for the purpose of
          adjusting or creating pay ranges
          for court interpreter employees
          that, at the top of the range,
          do not exceed the top step of
          the full performance range for
          staff interpreters in the
          federal courts as of the
          effective date of this
          provision. The establishment of
          pay ranges and their application
          to specific employee
          classifications shall be subject
          to meet and confer in good faith
          requirements, as provided in
          Chapter 7.5 (commencing with
          Section 71800) of Title 8 of the
          Government Code. The Judicial
          Council shall adjust statewide
          or     regional rates for
          contract court interpreters in a
          manner that is equivalent to the
          average rate of increase
          provided to court interpreter
          employees. The Judicial Council
          shall notify the courts in each
          region of the availability of
          these funds for the purposes set
          forth in this provision, and
          shall allocate the funds upon
          notification that ranges and
          salary adjustments have been
          established and implemented as
          provided herein. In no event
          shall the daily rate set by the
          Judicial Council for contract
          interpreters exceed the
          equivalent median wage of court
          interpreters employed by the
          courts in each region.
          Of the amount appropriated in
          Schedule (4), the Judicial
          Council shall allocate not less
          than $250,000 to develop and
          make available to the trial
          courts for interpreter training
          and recruitment programs,
          including, but not     limited
          to: (a) training programs
          designed for working
          interpreters who are subject to
          new certification examinations
          in Russian, Western Armenian,
          Mandarin, Cambodian, and
          Punjabi, (b) certification
          examination preparation courses
          for all languages subject to
          state certification
          examinations, and (c)
          development of mentoring and
          internship programs in the trial
          courts for examination
          candidates attending educational
          institutions that train legal
          interpreters, subject to meet
          and confer in good faith as
          provided in Chapter 7.5
          (commencing with Section 71800)
          of Title 8 of the Government
          Code.
          The Judicial Council shall adopt
          appropriate rules and procedures
          for the administration of these
          funds. The Judicial Council
          shall report to the Legislature
          and Director of Finance annually
          regarding expenditures from this
          schedule, which     shall also
          include a report of expenditures
          for equivalent work days of
          noncertified and nonregistered
          contract interpreters who
          provide interpretation services
          in the state trial courts and
          the number of interpreter
          vacancies filled.
    5.    Upon order of the Director of
          Finance, the amount available
          for expenditure in this item may
          be augmented by the amount of
          any additional resources
          available in the Trial Court
          Trust Fund, which is in addition
          to the amount appropriated in
          this item. Any augmentation
          shall be authorized no sooner
          than 30 days after notification
          in writing to the chairpersons
          of the committees in each house
          of the Legislature that consider
          appropriations, the chairperson
          of the committee and appropriate
          subcommittees that consider the
          State Budget, and the
          Chairperson of the Joint
          Legislative Budget
          Committee, or not sooner than
          whatever lesser time the
          Chairperson of the Joint
          Legislative Budget Committee or
          his or her designee may
          determine.
    6.    Notwithstanding any other
          provision of law, upon approval
          and order of the Department of
          Finance, the amount appropriated
          in this item shall be reduced by
          the amount transferred in Item
          0250-115-0932 to provide
          adequate resources to the
          Judicial Branch Workers'
          Compensation Fund to pay
          workers' compensation claims for
          judicial branch employees and
          judges, and administrative costs
          pursuant to Section 68114.10 of
          the Government Code.
    7.    Of the funds appropriated in
          Schedule (1), which will be
          transferred to the     Trial
          Court Improvement Fund in
          accordance with subdivision (b)
          of Section 77209 of the
          Government Code, up to
          $5,000,000 shall be available
          for support of services for self-
          represented litigants.
    8.    Upon approval by the
          Administrative Director of the
          Courts, the Controller shall
          transfer up to $10,900,000 to
          Item 0250-001-0932 for recovery
          of costs for administrative
          services provided to the trial
          courts by the Administrative
          Office of the Courts.
    9.    Upon approval by the
          Administrative Director of the
          Courts, and notification to the
          Department of Finance, the
          chairpersons of the committees
          in each house of the Legislature
          that consider appropriations and
          the     State Budget, and the
          Chairperson of the Joint
          Legislative Budget Committee,
          the Controller shall
          additionally increase the amount
          of the transfer by an amount or
          amounts no more than $1,090,000.
          Any augmentations shall be
          authorized no sooner than 30
          days after notification in
          writing to the chairpersons of
          the committees in each house of
          the Legislature that consider
          appropriations, the chairpersons
          of the committees and
          appropriate subcommittees that
          consider the State Budget, and
          the Chairperson of the Joint
          Legislative Budget Committee, or
          not sooner than whatever lesser
          time the Chairperson of the
          Joint Legislative Budget
          Committee or his or her designee
          may determine.
    10.   In order to improve equal access
          and the fair administration of
          justice, the funds appropriated
          in Schedule (8) are available
          for distribution by the Judicial
          Council through the Legal
          Services Trust Fund Commission
          to qualified legal services
          projects and support centers as
          defined in Sections 6213 to
          6215, inclusive, of the Business
          and Professions Code, to be used
          for legal services in civil
          matters for indigent persons.
          The Judicial Council shall
          approve awards made by the
          commission if the council
          determines that the awards
          comply with statutory and other
          relevant guidelines. Upon
          approval by the Administrative
          Director of the Courts, the
          Controller shall transfer up to
          5 percent of the funding
          appropriated in Schedule (8) to
          Item 0250-001-0932 for
          administrative expenses. Ten
          percent of the funds remaining
          after administrative costs shall
          be for joint projects of courts
          and legal services programs to
          make legal assistance available
          to pro per litigants and 90
          percent of the funds remaining
          after administrative costs shall
          be distributed consistent with
          Sections 6216 to 6223,
          inclusive, of the Business and
          Professions Code. The Judicial
          Council may establish
          additional reporting or quality
          control requirements consistent
          with Sections 6213 to 6223,
          inclusive, of the Business and
          Professions Code.
    11.   Of the funds appropriated in
          this item, $27,767,000 is
          provided for the costs of new
          judgeships and accompanying
          staff. Any funds not used for
          this purpose shall revert to the
          General Fund. The Judicial
          Council shall report to the
          Legislature on January 1, 2008,
          and each January 1 thereafter,
          until all judgeships are
          appointed and new staff hired,
          on the amount of funds allocated
          to each trial court to fund the
          new portions.
    12.   Funds available for expenditure
          in Schedule (8) may be augmented
          by order of the Director of
          Finance by the amount     of any
          additional resources deposited
          for distribution to the Equal
          Access Fund Program in
          accordance with Sections 68085.3
          and 68085.4 of the Government
          Code. Any augmentation under
          this provision shall be
          authorized not sooner than 30
          days after notification in
          writing to the chairpersons of
          the committees in each house of
          the Legislature that consider
          appropriations, the chairpersons
          of the committees and
          appropriate subcommittees that
          consider the State Budget, and
          the Chairperson of the Joint
          Legislative Budget Committee, or
          not sooner than whatever lesser
          time the Chairperson of the
          Joint Legislative Budget
          Committee, or his or her
          designee, may determine.
    13.   From funds previously provided
          by the Legislature in the 2004-
          05 budget to address court
          employee pay parity due to
          unification of the municipal and
          superior courts, the Judicial
          Council     shall allocate funds
          to the Los Angeles Superior
          Court and the court shall pay to
          each employee the amount the
          employee would have received if
          the reclassification raise the
          employee received on October 1,
          2005, had been retroactive to
          August 1, 2005. The
          Administrative Office of the
          Courts shall confirm with the
          Los Angeles Superior Court the
          names of the affected employees
          and the amount of funding
          necessary to implement this
          provision.
    14.   Of the amount appropriated in
          Schedule (1), $2,500,000 shall
          be available for the expansion
          of self-help programs to court
          locations without an existing
          self-help program or to
          additional case types in court
          locations with self-help
          programs.


0250-102-0556--For local assistance,
Judicial Branch, payable from the Judicial
Administration Efficiency and
Modernization Fund......................... 37,692,000
      Provisions:
      1.     Upon approval of the Director
             of Finance, the amount
             available for expenditure in
             this item may be     augmented
             by the amount of any
             additional resources available
             in the Judicial Administration
             Efficiency and Modernization
             Fund, which is in addition to
             the amount appropriated in
             this item. Any augmentation
             shall be authorized no sooner
             than 30 days after
             notification in writing to the
             chairpersons of the committees
             in each house of the
             Legislature that consider
             appropriations, the
             chairpersons of the committees
             and appropriate subcommittees
             that consider the State
             Budget, and the Chairperson of
             the Joint Legislative Budget
             Committee, or not sooner than
             whatever lesser time the
             Chairperson of the Joint
             Legislative Budget Committee
             or his or her designee may
             determine.


0250-111-0001--For transfer by the
Controller to the Trial Court Trust Fund.. 1,813,729,000


0250-112-0001--For transfer by the
Controller to the Judicial Administration
Efficiency and Modernization Fund.........  37,692,000


0250-115-0932--For transfer, upon order of
the Director of Finance, to the Judicial
Branch Workers' Compensation Fund...........      1,000
     Provisions:
     1.  Notwithstanding any other provision
         of law, upon approval and order of
         the Department of Finance, the
         Judicial Council     shall adjust
         the amount of this transfer to
         provide adequate resources to the
         Judicial Branch Workers'
         Compensation Fund to pay workers'
         compensation claims for judicial
         branch employees and judges, and
         administrative costs pursuant to
         Section 68114.10 of the Government
         Code.


0250-301-0660--For capital outlay, Judicial
Branch, payable from the Public Buildings
Construction Fund............................ 3,086,000
     Schedule:
     (1) 90.20.401-Court of Appeal,
         Fourth Appellate District
         Santa Ana: New Courthouse-
         -Construction.............. 3,086,000
     Provisions:
     1.  The State Public Works Board may
         issue lease-revenue bonds, notes, or
         bond anticipation notes pursuant to
         Chapter 5 (commencing with Section
         15830) of Part 10b of Division 3 of
         Title 2 of the Government Code to
         finance the design and construction
         of the project authorized by this
         item.
     2.  The Judicial Branch and State Public
         Works Board are authorized and
         directed to execute and deliver any
         and all leases, contracts,
         agreements, or other documents
         necessary or advisable to consummate
         the sale of bonds or otherwise
         effectuate the financing of the
         scheduled project.
     3.  The State Public Works Board shall
         not be deemed a lead or responsible
         agency for purposes of the
         California Environmental Quality Act
         (Division 13 (commencing with
         Section 21000) of the Public
         Resources Code) for any activities
         under the State Building
         Construction Act of 1955 (Part 10b
         (commencing with Section 15800) of
         Division 3 of Title 2 of the
         Government Code). This provision
         does not exempt the Judicial Branch
         from the requirements of the
         California Environmental Quality
         Act. This provision is declaratory
         of existing law.


0250-301-3037--For capital outlay, Judicial
Branch, payable from the State Court
Facilities Construction Fund................. 35,949,000
    Schedule:
    (0.5)   91.05.001-Calaveras
            County, New San
            Andreas Courthouse-
            -Acquisition..........     845,000
    (1)     91.07.001-Contra
            Costa County: New
            Antioch Area
            Courthouse--Working
            drawings..............   3,632,000
    (1.5)   91.18.001-Lassen
            County, New
            Susanville Courthouse-
            -Acquisition..........   1,478,000
    (1.6)   91.19.001-Los Angeles
            County, New Long
            Beach Courthouse-
            -Acquisition..........   5,889,000
    (2)     91.20.001-Madera
            County: New Madera
            Courthouse-
            -Acquisition..........   3,440,000
    (3)     91.26.001-Mono
            County: New Mammoth
            Lakes Courthouse--
            Working drawings......     725,000
    (4)     91.32.001-Plumas and
            Sierra Counties: New
            Portola/Loyalton
            Courthouse--Working
            drawings..............     346,000
    (5)     91.33.001-Riverside
            County: New Riverside
            Mid-County Courthouse-
            -Acquisition..........   3,283,000
    (5.5)   91.35.001-San Benito
            County, New Hollister
            Courthouse-
            -Acquisition..........     541,000
    (6)     91.36.001-San
            Bernardino County:
            New San Bernardino
            Courthouse-
            -Acquisition..........   4,774,000
    (7)     91.39.001-San Joaquin
            County: New Stockton
            Courthouse-
            -Acquisition..........   6,570,000
    (8)     91.54.001-Tulare
            County, New
            Porterville
            Courthouse-
            -Acquisition..........   4,426,000
    Provisions:
    4.5.    Notwithstanding any other
            provision of law, each county
            listed in this item shall
            transfer responsibility or
            responsibility and title to the
            state prior to the release of
            funds for all acquisition
            projects. Of the funds
            appropriated for the San
            Bernardino     County, New San
            Bernardino Courthouse project,
            $4,774,000 will be reimbursed
            from funds donated by the County
            of San Bernardino.
    5.      Notwithstanding subdivision (d)
            of Section 70374 of the
            Government Code, the Judicial
            Council will not commit to
            additional expenditures from the
            Court Facilities Construction
            Fund above the level appropriated
            in the 2007-08 Budget Act unless
            the expenditures are replaced
            with increased revenues to the
            fund. This is to ensure that
            moneys remain in the fund to
            support the construction of the
            new court facility projects
            approved in the 2007-08 Budget
            Act.
    6.      Beginning with the 2008-09
            budget, each capital outlay
            request will address the eventual
            disposition of the     court
            facility or facilities that will
            be vacated as part of the new
            project. The disposition plan
            should seek to ensure the most
            efficient and least costly option
            to the state in replacing the
            court facility.
    7.      Notwithstanding any other
            provision of law, the
            Administrative Office of the
            Courts shall gather information
            for a public-private partnership
            agreement for the Long Beach
            Court replacement, specify a
            process and criteria for
            developing alternative methods of
            project delivery, and identify
            variables that will be used to
            evaluate the alternative methods
            of delivery.
    8.      Pursuant to Section 70391.5 of
            the Government Code, the Judicial
            Council may enter into a lease-
            purchase agreement     or other
            appropriate multiyear agreement,
            together with other related
            agreements, with one or more
            entities for the delivery of the
            new Los Angeles County--Long
            Beach Courthouse that will
            provide payments to the entity or
            entities for the state's
            proportional share of project
            costs, subject to notice to the
            Legislature and the Department of
            Finance approval that the
            agreements meet established
            performance expectations. This
            provision is contingent upon the
            execution of an agreement for
            transfer of responsibility of the
            existing Long Beach court
            facility to the state no later
            than June 30, 2007, and
            subsequent approval of the
            transfer of title by the State
            Public Works Board.


0250-401--The Director of Finance may
authorize a loan from the General Fund to the
Trial Court Improvement Fund for cashflow
purposes in an amount not to exceed
$70,000,000 subject to the following
conditions:
     (a) The loan is to meet cash needs
         resulting from a delay in receipt of
         revenues.
     (b) The loan is short term, and shall be
         repaid by     October 31 of the fiscal
         year following that in which the loan
         was authorized.
     (c) Interest charges may be waived
         pursuant to subdivision (e) of Section
         16314 of the Government Code.
     (d) The Director of Finance may not
         approve the loan unless the approval
         is made in writing and filed with the
         Chairperson of the Joint Legislative
         Budget Committee and the chairpersons
         of the committees in each house of the
         Legislature that consider
         appropriations not later than 30 days
         prior to the effective date of the
         approval, or not sooner than whatever
         lesser time the chairperson of the
         joint committee or his or her designee
         may determine.


0250-490--Reappropriation, Judicial Branch. The
balances of the appropriations provided for in the
following citations are reappropriated for the
purposes and subject to the limitations, unless
otherwise specified, provided for in the
appropriations:
      3037--State Court Facilities Construction Fund
      (1)     Item 0250-301-3037, Budget Act of 2006
              (Chs. 47 and 48, Stats.     2006)
              (1)       91.07.001-Contra Costa County:
                        New Antioch Area Courthouse-
                        -Preliminary plans
              (1.2)     91.10.001-Fresno County: Sisk
                        Federal Courthouse Renovation-
                        -Working drawings and
                        construction
              (1.3)     91.26.001-Mono County: New
                        Mammoth Lakes Courthouse-
                        -Preliminary plans
              (2)       91.32.001-Plumas and Sierra
                        Counties: New Portola/Loyalton
                        Courthouse--Preliminary plans


0280-001-0001--For support of the
Commission on Judicial Performance, Program
10..........................................  4,400,000
     Provisions:
     1.  Notwithstanding any other provision
         of law, upon approval and order of
         the Department of Finance, the
         amount appropriated in this item
         shall be reduced     by the amount
         transferred in Item 0280-011-0001
         to provide adequate resources to
         the Judicial Branch Workers'
         Compensation Fund to pay workers'
         compensation claims for judicial
         branch employees and administrative
         costs pursuant to Section 68114.10
         of the Government Code.


0280-011-0001--For transfer, upon order of
the Director of Finance, to the Judicial
Branch Workers' Compensation Fund...........      1,000
     Provisions:
     1.  Notwithstanding any other provision
         of law, upon approval and order of
         the Department of Finance, the
         Commission on     Judicial
         Performance shall adjust the amount
         of this transfer to provide
         adequate resources to the Judicial
         Branch Workers' Compensation Fund
         to pay workers' compensation claims
         for judicial branch employees and
         administrative costs pursuant to
         Section 68114.10 of the Government
         Code.


0390-001-0001--For transfer by the
Controller to the Judges' Retirement Fund,
for Supreme Court and Appellate Court
Justices....................................  1,150,000
     Provisions:
     1.  Upon order of the Department of
         Finance, the Controller shall
         transfer such funds as are
         necessary between     Item 0390-001-
         0001 and Item 0390-101-0001.


0390-101-0001--For transfer by the
Controller to the Judges' Retirement Fund
for Superior Court and Municipal Court
Judges..................................... 136,304,000
      Provisions:
      1.     Upon order of the Department
             of Finance, the Controller
             shall transfer such funds as
             are necessary between     Item
             0390-001-0001 and Item 0390-
             101-0001.

       Executive


0500-001-0001--For support of Governor and of
Governor's office............................. 19,650,000
     Schedule:
     (1)   Support................   19,575,000
     (2)   Governor's Residence
           (Support)..............       35,000
     (3)   Special Contingent
           Expenses...............       40,000
     Provisions:
     1.    The funds appropriated in Schedules
           (2) and (3) of this item are exempt
           from the provisions of Sections
           925.6, 12410, and 13320 of the
           Government Code.


0502-001-9730--For support of the Office of
the Chief Information Officer, payable from
the Department of Technology Services
Revolving Fund............................... 3,500,000
     Schedule:
     (1) Office of     the Chief
         Information Officer........ 3,500,000
     Provisions:
     1.  By March 1, 2008, the Office of the
         Chief Information Officer shall
         deliver a five-year project plan for
         achieving the administration's
         stated direction of improving the
         state's information technology (IT)
         effectiveness. The project plan
         shall include a timeline,
         milestones, and well-defined
         deliverables that include, but are
         not limited to: (a) a minimum skill
         set for state IT project managers,
         including the state budgeting and
         contracting processes, (b) a process
         by which IT project managers will be
         certified to the minimum skill level
         before they assume an IT project
         leadership assignment, and (c) a
         process for identifying and
         applying current technologies to
         enable data sharing across state
         systems as a means to reduce state
         business and IT process redundancy
         and inefficiencies.


0510-001-0001--For support of Secretary of
State and Consumer Services..................   804,000
     Schedule:
     (1) Support.................... 1,426,000
     (2) Reimbursements.............  -622,000


0520-001-0001--For support of Secretary for
Business, Transportation and Housing, for
payment to Item 0520-001-0044...............  4,878,000
     Provisions:
     1.  Of the amount appropriated in this
         item, $1,000,000 shall be available
         for use by the California Travel
         and Tourism     Commission for use
         in promoting California tourism to
         potential visitors.


0520-001-0044--For support of Secretary for
Business, Transportation and Housing, payable
from the Motor Vehicle Account, State
Transportation Fund........................... 1,428,000
    Schedule:
    (1)     10-Administration of
            Business,
            Transportation and
            Housing Agency.........   3,372,000
    (2)     25-Infrastructure
            Finance and Economic
            Development Program....  14,280,000
    (3)     Reimbursements.........  -3,055,000
    (4)     Amount payable from
            the General Fund (Item
            0520-001-0001).........  -4,878,000
    (5)     Amount payable from
            the California
            Infrastructure and
            Economic Development
            Bank Fund (Item 0520-
            001-0649)..............  -3,183,000
    (6)     Amount payable from
            the Federal Trust Fund
            (Item 0520-001-0890)...  -4,300,000
    (7)     Amount payable from
            the California Small
            Business Expansion
            Fund (Item 0520-001-
            0918)..................    -437,000
    (8)     Amount payable from
            the Welcome Center
            Fund (Item 0520-001-
            3083)..................     -78,000
    (9)     Amount payable from
            the Film Promotion and
            Marketing Fund (Item
            0520-001-3095).........     -10,000
    (10)    Amount payable from
            the Chrome Plating
            Pollution Prevention
            Fund (Item 0520-001-
            9329)..................    -283,000
    Provisions:
    1.      Of the amount appropriated in
            Schedule (2), $85,000 is for
            reimbursement of the Department of
            Toxic Substances Control for
            expansion of the Model Shop
            Program pursuant to Chapter 2
            (commencing with Section 42100) of
            Part 3 of Division 30 of the
            Public Resources Code.


0520-001-0649--For support of Secretary
for Business, Transportation and Housing,
for payment to Item 0520-001-0044,
payable from the California
Infrastructure and Economic Development
Bank Fund.................................   3,183,000


0520-001-0890--For support of Secretary
for Business, Transportation and Housing,
for payment to Item 0520-001-0044,
payable from the Federal Trust Fund.......   4,300,000


0520-001-0918--For support of Secretary
for Business, Transportation and Housing,
for payment to Item 0520-001-0044,
payable from the California Small
Business Expansion Fund...................     437,000


0520-001-3083--For support of Secretary for
Business, Transportation and Housing, for
payment to Item 0520-001-0044, payable from
the Welcome Center Fund........................     78,000
     Provisions:
     1.  Consistent with Section 13995.151 of
         the Government Code, the Office of
         Tourism has the flexibility to limit
         the number of California Welcome
         Centers within a geographic area to
         prevent excessive     density, but it
         also has the flexibility to locate
         them within 50 miles of each other
         regardless of whether they would be
         located in a rural or urban area.


0520-001-3095--For support of Secretary
for Business, Transportation and Housing,
for payment to Item 0520-001-0044,
payable from the Film Promotion and
Marketing Fund............................      10,000


0520-001-9329--For support of Secretary
for Business, Transportation and Housing,
for payment to Item 0520-001-0044,
payable from the Chrome Plating Pollution
Prevention Fund...........................     283,000


0520-002-0001--For support of Secretary for
Business, Transportation and Housing........     70,000
     Provisions:
     1.  The amount appropriated in this
         item is available for payment of
         costs resulting from the closure of
         the former Technology, Trade, and
         Commerce Agency.
         Notwithstanding any other provision
         of law, if the Department of
         Finance determines that the
         expenditures for these costs will
         exceed the expenditures authorized
         by this item, the Department of
         Finance shall report that fact to
         the Chairperson of the Joint
         Legislative Budget Committee and
         the chairpersons of the committees
         in each house of the Legislature
         that consider appropriations.
         Thirty days after providing the
         written notification, the Director
         of Finance may increase this
         appropriation pursuant to the
         provisions of Chapter 2 of the
         Statutes of 2003, First
         Extraordinary Session.


0520-011-0001--For transfer, upon order
of the Director of Finance, to the Small
Business Expansion Fund...................   3,927,000


0520-101-0001--For local assistance, Secretary of
Business, Transportation and Housing................... 0
      Schedule:
      (1)     25-Infrastructure Finance
              and Economic Development
              Program....................      2,000,000
      (2)     Reimbursements.............     -2,000,000


0520-101-9329--For local assistance,
Secretary for Business, Transportation and
Housing, payable from the Chrome Plating
Pollution Prevention Fund...................    250,000
     Provisions:
     1.  Notwithstanding any other provision
         of law, the Director of Finance may
         adjust amounts     in this
         appropriation item for payment of
         defaults and related costs on loan
         guarantees made pursuant to Chapter
         2 (commencing with Section 42100)
         of Part 3 of Division 30 of the
         Public Resources Code. Within 30
         days of making an adjustment, the
         Department of Finance shall report
         the adjustment in writing to the
         Joint Legislative Budget Committee.


0520-401--The Department of Finance is
hereby authorized to transfer any savings
from the amount transferred pursuant to
Item 0520-011-0001 of this act to the
General Fund at the end of the 2007-08
fiscal year.


0530-001-0001--For support of Secretary of
California Health and Human Services.......... 2,093,000
     Schedule:
     (1)   10-Secretary of
           California Health and
           Human Services.........    4,247,000
     (2)   Reimbursements.........   -1,254,000
     (3)   Amount payable from
           the Federal Trust Fund
           (Item 0530-001-0890)...     -900,000


0530-001-0890--For support of Secretary
of California Health and Human Services,
for payment to Item 0530-001-0001,
payable from the Federal Trust Fund.......     900,000


0530-001-9732--For support of Secretary
of California Health and Human Services,
payable from the Office of Systems
Integration Fund.......................... 182,976,000
    Schedule:
    (1)   30-Office of
          Systems Integration.. 182,976,000
    Provisions:
    1.    Notwithstanding any other
          provision of law, upon the
          request of the California Health
          and Human Services Agency, the
          Department of Finance may
          augment the amount available for
          expenditure in this item to pay
          for new contract costs for the
          In-Home Supportive Services/Case
          Management Payrolling System II.
          The augmentation may be made not
          sooner than 30 days after
          notification in writing of the
          chairpersons of the committees
          in each house of the Legislature
          that consider appropriations and
          the Chairperson of the Joint
          Legislative Budget Committee, or
          not sooner than whatever lesser
          time the chairperson of the
          joint committee may in each
          instance determine. The amount
          of funds augmented pursuant to
          the authority in this provision
          shall be consistent with the
          amount approved by the
          Department of Finance based on
          its review and approval of the
          new contract and Special Project
          Report, or equivalent document,
          to be submitted at the
          conclusion of procurement
          activities.


0530-017-0001--For support of Secretary of
California Health and Human Services......... 3,169,000
     Schedule:
     (1) 21-Office of HIPAA
         Implementation............. 3,820,000
     (2) Reimbursements.............  -651,000
     Provisions:
     1.  The funding appropriated in this
         item is limited to the amount
         specified in Section 17.00. These
         funds are to be used in support of
         compliance activities related to the
         federal Health Insurance
         Portability and Accountability Act
         (HIPAA) of 1996.


0540-001-0001--For support of Secretary
for Resources, payable to Item 0540-001-
0140......................................   6,005,000


0540-001-0005--For support of Secretary
for Resources, for payment to Item 0540-
001-0140, payable from the Safe
Neighborhood Parks, Clean Water, Clean
Air, and Coastal Protection Bond Fund.....     207,000


0540-001-0140--For support of Secretary for
Resources, payable from the Environmental
License Plate Fund.......................... 3,316,000
    Schedule:
    (1)    10-Administration of
           Resources Agency.....   23,268,000
    (2)    20-CALFED Bay-Delta
           Program..............   32,790,000
    (3)    Reimbursements.......  -16,439,000
    (4)    Amount payable from
           the General Fund
           (Item 0540-001-0001).   -6,005,000
    (5)    Amount payable from
           the Safe
           Neighborhood Parks,
           Clean Water, Clean
           Air, and Coastal
           Protection Bond Fund
           (Item 0540-001-0005).     -207,000
    (5.5)  Amount payable from
           the Environmental
           and Mitigation
           Program Fund (Item
           0540-001-0183).......     -125,000
    (6)    Amount payable from
           the Federal Trust
           Fund (Item 0540-001-
           0890)................   -2,959,000
    (7)    Amount payable from
           the River Protection
           Subaccount (Item
           0540-001-6015).......      -16,000
    (8)    Amount payable from
           the California Clean
           Water, Clean Air,
           Safe Neighborhood
           Parks, and Coastal
           Protection Fund
           (Item 0540-001-6029).   -1,935,000
    (9)    Amount payable from
           the Water Security,
           Clean Drinking
           Water, Coastal and
           Beach Protection
           Fund of 2002 (Item
           0540-001-6031).......  -10,761,000
    (10)   Amount payable from
           the Safe Drinking
           Water, Water Quality
           and Supply, Flood
           Control, River and
           Coastal Protection
           Fund of 2006 (Item
           0540-001-6051).......  -14,295,000


0540-001-0183--For support of Secretary
for Resources, for payment to Item 0540-
001-0140, payable from the Environmental
Enhancement and Mitigation Program Fund...    125,000


0540-001-0890--For support of Secretary
for Resources, for payment to Item 0540-
001-0140, payable from the Federal Trust
Fund......................................   2,959,000


0540-001-6015--For support of Secretary
for Resources, for payment to Item 0540-
001-0140, payable from the River
Protection Subaccount.....................      16,000


0540-001-6029--For support of Secretary
for Resources, for payment to Item 0540-
001-0140, payable from the California
Clean Water, Clean Air, Safe Neighborhood
Parks, and Coastal Protection Fund........   1,935,000


0540-001-6031--For support of Secretary
for Resources, for payment to Item 0540-
001-0140, payable from the Water
Security, Clean Drinking Water, Coastal
and Beach Protection Fund of 2002.........  10,761,000


0540-001-6051--For support of Secretary
for Resources, for payment to Item 0540-
001-0140, payable from the Safe Drinking
Water, Water Quality and Supply, Flood
Control, River and Coastal Protection Fund
of 2006.................................... 14,295,000
      Provisions:
      1.     The funds     appropriated in
             this item for purposes of
             subdivision (n) of Section
             75050 of the Public Resources
             Code shall be available for
             encumbrance or expenditure
             until June 30, 2010, for
             purposes of support, local
             assistance, or capital outlay.
      2.     The funds appropriated in this
             item for purposes of
             subdivision (n) of Section
             75050 of the Public Resources
             Code may only be used,
             consistent with the terms of
             the settlement agreement in
             N.R.D.C. v. Rodgers, for the
             following: studies, baseline
             monitoring, and other project
             planning, management, and
             research costs; establishment,
             operation, and other costs of
             the Technical Advisory
             Committee; and the
             establishment, operation, and
             other costs of the Restoration
             Administrator. To the extent
             that the Technical Advisory
             Committee gives advice
             directly to state agencies,
             the Technical Advisory
             Committee shall play only an
             advisory role to the state.


0540-101-6031--For local assistance,
Secretary for Resources, payable from the
Water Security, Clean Drinking Water,
Coastal and Beach Protection Fund of 2002.. 20,500,000
      Provisions:
      1.     The funds appropriated in this
             item for purposes of Section
             79541 of the     Water Code
             shall be available for
             encumbrance until June 30,
             2010, for purposes of support,
             local assistance, or capital
             outlay.
      2.     The funds received by other
             state agencies from this item
             in accordance with Section
             79541 of the Water Code are
             exempt from the reporting
             requirements of Section 28.50.


0540-490--Reappropriation, Secretary for
Resources. The balance of the appropriations
provided for in the following citations is
reappropriated for the purposes provided for
in those appropriations and shall be available
for encumbrance or expenditure until June 30,
2009:
     0005--Safe Neighborhood Parks, Clean
     Water, Clean Air, and Coastal Protection
     Bond Fund
     (1) Item     0540-101-0005, Budget Act of
         2000 (Ch. 52, Stats. 2000)
     (2) Item 0540-001-0005, Budget Act of 2002
         (Ch. 379, Stats. 2002) for Folsom
         Powerhouse State Park Project.
     6015--River Protection Subaccount
     (1) Item 0540-101-6015, Budget Act of 2002
         (Ch. 379, Stats. 2002)
     6029--California Clean Water, Clean Air,
     Safe Neighborhood Parks, and Coastal
     Protection Fund
     (1) Item 0540-101-6029, Budget Act of 2002
         (Ch. 379, Stats. 2002)


0540-491--Reappropriation, Secretary for
Resources. Notwithstanding any other provision
of law, the period to liquidate encumbrances
of the following citations is extended to June
30, 2009:
     6029--California Clean Water, Clean Air,
     Safe Neighborhood Parks, and Coastal
     Protection Fund
     (1) Item 0540-001-6029, Budget Act of 2003
         (Ch. 157, Stats. 2003), as
         reappropriated by Item     0540-490,
         Budget Act of 2004 (Ch. 208, Stats.
         2004)


0540-492--Reappropriation, Secretary for
Resources. Notwithstanding any other provision
of law, the period to liquidate encumbrances
of the following citations is extended to June
30, 2008:
     0001--General Fund
     (1) Item 0540-101-0001, Budget Act of 1999
         (Ch. 50, Stats. 1999), as
         reappropriated by Item 0540-492,
         Budget Act of 2002 (Ch. 379, Stats.
         2002), Item 0540-490, Budget     Acts
         of 2003 (Ch. 157, Stats. 2003), 2005
         (Chs. 38 and 39, Stats. 2005), and
         2006 (Chs. 47 and 48, Stats. 2006),
         and Item 0540-491, Budget Act of 2004
         (Ch. 208, Stats. 2004)
     (2) Item 0540-101-0001, Budget Act of 2000
         (Ch. 52, Stats. 2000), as
         reappropriated by Item 0540-490,
         Budget Acts of 2003 (Ch. 157, Stats.
         2003), 2005 (Chs. 38 and 39, Stats.
         2005), and 2006 (Chs. 47 and 48,
         Stats. 2006), and Item 0540-491,
         Budget Act of 2004 (Ch. 208, Stats.
         2004)
     (3) Item 0540-101-0001, Budget Act of 2001
         (Ch. 106, Stats. 2001), as
         reappropriated by Item 0540-491,
         Budget Act of 2004 (Ch. 208, Stats.
         2004), and Item 0540-490, Budget Acts
         of 2005 (Chs. 38 and 39, Stats. 2005)
         and 2006 (Chs. 47 and 48,     Stats.
         2006)


0540-495--Reversion, Secretary for
Resources. As of June 30, 2007, the
balances specified below, of the
appropriations provided in the following
citations, shall revert to the balance of
the fund from which the appropriations were
made:
     6029--California Clean Water, Clean
     Air, Safe Neighborhood Parks, and
     Coastal Protection Fund
     (1) $10,000 from Item 0540-001-6029,
         Budget     Act of 2003 (Ch. 157,
         Stats. 2003)
     (2) $19,775 from Item 0540-001-6029,
         Budget Act of 2005 (Chs. 38 and 39,
         Stats. 2005)
     (3) $21,225 from Item 0540-001-6029,
         Budget Act of 2006 (Chs. 47 and 48,
         Stats. 2006)


0552-001-0001--For support of Office of
the Inspector General...................... 19,265,000
    Schedule:
    (1)    10-Office of the
           Inspector General....  19,265,000
    Provisions:
    1.     The Office of the Inspector
           General (OIG) shall analyze the
           extent to which current
           institutional levels of regular
           search and escort custody
           staffing, overtime funding, and
           funding for operational expenses
           and equipment (OE&E) have been
           accounted for in the transfer of
           resources for medical guarding
           and transportation from Item
           5225-001-0001 to Item 5225-002-
           0001. This analysis shall
           specifically examine whether the
           transfer of the medical guarding
           and transportation functions to
           the Receiver warrants a
           reduction in the regular search
           and escort institutional custody
           staffing, overtime funding , and
           OE&E supported by Item 5225-001-
           0001. The Department of
           Corrections and Rehabilitation
           shall     cooperate and provide
           any administrative resources
           necessary to assist the OIG in
           the timely completion of its
           analysis. The OIG may contract
           for any expertise it determines
           is necessary to conduct this
           analysis. The OIG shall report
           its results to the Chair of the
           Joint Legislative Budget
           Committee and the chairs of the
           fiscal committees of both houses
           of the Legislature. The Director
           of Finance may augment this item
           for the purpose of this analysis
           no sooner than 30 days after
           notifying in writing the Chair
           of the Joint Legislative Budget
           Committee.


0555-001-0001--For support of Secretary
for Environmental Protection, for payment
to Item 0555-001-0044.....................   1,136,000


0555-001-0014--For support of Secretary
for Environmental Protection, for payment
to Item 0555-001-0044, payable from the
Hazardous Waste Control Account...........     318,000


0555-001-0028--For support of Secretary
for Environmental Protection, for payment
to Item 0555-001-0044, payable from the
Unified Program Account...................   1,412,000


0555-001-0044--For support of Secretary for
Environmental Protection, payable from the
Motor Vehicle Account, State Transportation
Fund........................................... 1,813,000
     Schedule:
     (1)    30-Support.............   14,223,000
     (2)    Reimbursements.........   -1,904,000
     (3)    Amount payable from
            the General Fund (Item
            0555-001-0001).........   -1,136,000
     (4)    Amount payable from
            the Hazardous Waste
            Control Account (Item
            0555-001-0014).........     -318,000
     (5)    Amount payable from
            the Unified Program
            Account (Item 0555-001-
            0028)..................   -1,412,000
     (6)    Amount payable
            from the California
            Used Oil Recycling
            Fund (Item 0555-001-
            0100)..................      -31,000
     (7)    Amount payable from
            the Department of
            Pesticide Regulation
            Fund (Item 0555-001-
            0106)..................     -794,000
     (8)    Amount payable from
            the Air Pollution
            Control Fund (Item
            0555-001-0115).........   -1,331,000
     (9)    Amount payable from
            the Waste Discharge
            Permit Fund (Item 0555-
            001-0193)..............     -292,000
     (10)   Amount payable from
            the Public Resources
            Account, Cigarette and
            Tobacco Products
            Surtax Fund (Item 0555-
            001-0235)..............      -65,000
     (11)   Amount payable from
            the Recycling Market
            Development Revolving
            Loan Account,
            Integrated Waste
            Management Fund (Item
            0555-001-0281).........     -146,000
     (12)   Amount payable from
            the Integrated Waste
            Management Account,
            Integrated Waste
            Management Fund (Item
            0555-001-0387).........     -729,000
     (13)   Amount payable from
            the Underground
            Storage Tank Cleanup
            Fund (Item 0555-001-
            0439)..................     -866,000
     (14)   Amount payable from
            the State Water
            Quality Control Fund
            (Item 0555-001-0679)...     -177,000
     (15)   Amount payable from
            the Rural CUPA
            Reimbursement Account
            (Item     0555-001-
            1006)..................     -953,000
     (16)   Amount payable from
            the Water Rights Fund
            (Item 0555-001-3058)...      -35,000
     (17)   Amount payable from
            the Environmental
            Enforcement and
            Training Account (Item
            0555-001-8013).........   -2,066,000
     (18)   Amount payable from
            the Environmental
            Education Account
            (Item 0555-001-8020)...     -155,000
     Provisions:
     1.     Notwithstanding Section 48653 of
            the Public Resources Code, funds
            appropriated in this item from the
            California Used Oil Recycling Fund
            shall be available for purposes of
            administration.
     2.     Funds appropriated in this item
            from the Environmental Education
            Account are available for
            appropriation only to the extent
            that funding is received in the
            Environmental Education Account
            established by Section 71305 of the
            Public Resources Code.


0555-001-0100--For support of Secretary
for Environmental Protection, for payment
to Item 0555-001-0044, payable from the
California Used Oil Recycling Fund........      31,000


0555-001-0106--For support of Secretary
for Environmental Protection, for payment
to Item 0555-001-0044, payable from the
Department of Pesticide Regulation Fund...     794,000


0555-001-0115--For support of Secretary for
Environmental Protection, for payment to Item
0555-001-0044, payable from the Air Pollution
Control Fund...................................  1,331,000
     Provisions:
     1.  Of the funds appropriated pursuant to
         this item, $586,000 shall be expended
         solely for 4.0 full-time positions to
         perform functions associated with the
         Climate Action Team, including
         tracking of     state agency actions
         to reduce greenhouse gas emissions.


0555-001-0193--For support of Secretary
for Environmental Protection, for payment
to Item 0555-001-0044, payable from the
Waste Discharge Permit Fund...............     292,000


0555-001-0235--For support of Secretary
for Environmental Protection, for payment
to Item 0555-001-0044, payable from the
Public Resources Account, Cigarette and
Tobacco Products Surtax Fund..............      65,000


0555-001-0281--For support of Secretary
for Environmental Protection, for payment
to Item 0555-001-0044, payable from the
Recycling Market Development Revolving
Loan Account, Integrated Waste Management
Fund......................................     146,000


0555-001-0387--For support of Secretary
for Environmental Protection, for payment
to Item 0555-001-0044, payable from the
Integrated Waste Management Account,
Integrated Waste Management Fund..........     729,000


0555-001-0439--For support of Secretary
for Environmental Protection, for payment
to Item 0555-001-0044, payable from the
Underground Storage Tank Cleanup Fund.....     866,000


0555-001-0679--For support of Secretary
for Environmental Protection, for payment
to Item 0555-001-0044, payable from the
State Water Quality Control Fund..........     177,000


0555-001-1006--For support of Secretary
for Environmental Protection, for payment
to Item 0555-001-0044, payable from the
Rural CUPA Reimbursement Account..........     953,000


0555-001-3058--For support of Secretary
for Environmental Protection, for payment
to Item 0555-001-0044, payable from the
Water Rights Fund.........................      35,000


0555-001-8013--For support of Secretary
for Environmental Protection, for payment
to Item 0555-001-0044, payable from the
Environmental Enforcement and Training
Account...................................   2,066,000


0555-001-8020--For support of Secretary for
Environmental Protection, for payment to
Item 0555-001-0044, payable from the
Environmental Education Account.............    155,000
     Provisions:
     1.  The funding appropriated and
         available for expenditure in this
         item is limited to     the amount
         of funding received in the
         Environmental Education Account
         established by Section 71305 of the
         Public Resources Code.


0555-011-0001--For transfer by the State
Controller to the Rural CUPA
Reimbursement Account.....................     953,000


0555-011-0044--For transfer by the
Controller, upon order of the Director of
Finance, to the Air Pollution Control Fund
from the Motor Vehicle Account, State
Transportation Fund.........................  (293,000)
     Provisions:
     1.  The transfer made by this item is a
         loan to the Air     Pollution
         Control Fund.


0558-001-0001--For support of the Office of
the Secretary for Education..................   998,000
     Schedule:
     (1) Secretary for Education.... 1,098,000
     (2) Reimbursements.............  -100,000
     Provisions:
     1.  The amount appropriated in this item
         is intended for support of the
         Education Agency. The appropriation
         is an estimate of the funding needs
         from January 1, 2008, to June 30,
         2008, inclusive. Legislation
         establishing the agency will be
         introduced and, if enacted, would be
         effective on or before January 1,
         2008. In the event that legislation
         creating the agency is not effective
         on or before January 1, 2008, or the
         funds are needed prior to January 1,
         2008, the unexpended balance of the
         funds appropriated in this item
         shall be available for expenditure
         pursuant to Item 0650-011-0001, as
         authorized by the Director of
         Finance.
     2.  Of the reimbursements appropriated
         in this item, $48,000 in support of
         Proposition 49 activities is
         available only until June 30, 2010.


0559-001-0001--For support of the California Labor
and Workforce Development Agency..................... 0
     Schedule:
     (1)    10-Office of the Secretary
            of Labor and Workforce
            Development................      2,445,000
     (2)    Reimbursements.............     -2,234,000
     (3)    Amount payable from the
            Labor and Workforce
            Development Fund (Item
            0559-001-3078).............       -211,000


0559-001-3078--For support of the
California Labor and Workforce Development
Agency, for payment to Item 0559-001-0001,
payable from the Labor and Workforce
Development Fund............................    211,000
     Provisions:
     1.  The amount appropriated in this
         item includes revenues     derived
         from the assessment of fines and
         penalties imposed as specified in
         Section 13332.18 of the Government
         Code.


0650-001-0001--For support of Office of
Planning and Research.......................... 5,436,000
     Schedule:
     (1)   11-State Planning and
           Policy Development......    4,238,000
     (2)   21-California Service
           Corps...................    8,011,000
     (3)   Reimbursements..........   -3,408,000
     (4)   Amount payable from the
           Federal Trust Fund
           (Item 0650-001-0890)....   -3,405,000
     Provisions:
     1.    No later than April 1, 2008, the
           Office of Planning and Research
           shall report to the committees in
           each house of the Legislature that
           consider the budget on performance
           indicators for the Online Volunteer
           Matching Program. This report shall
           provide a status of the program
           using information available to
           identify the number and name of
           volunteer programs that received
           volunteers referred by this system,
           Internet Web site     hit count by
           month, posted volunteer activities
           by month, number of first-time
           volunteers, number of volunteer
           hours directly attributable to the
           statewide system, and other measures
           to fully disclose the impact of the
           Online Volunteer Matching Program.


0650-001-0890--For support of Office of
Planning and Research, for payment to
Item 0650-001-0001, payable from the
Federal Trust Fund........................   3,405,000


0650-011-0001--For support of Office of
Planning and Research........................   998,000
     Schedule:
     (1) Office of the Secretary
         for Education.............. 1,103,000
     (2) Reimbursements.............  -105,000
     Provisions:
     1.  The funds appropriated in this item
         are intended for support of the
         Education Agency. The appropriation
         is an estimate of the funding needs
         from July 1, 2007, to December 31,
         2007, inclusive. Legislation
         establishing the agency     will be
         introduced and, if enacted, would be
         effective on or before January 1,
         2008. After the effective date of
         that legislation, and upon the
         determination that all obligations
         of the agency in the Office of
         Planning and Research have been met,
         the unexpended balance of the funds
         appropriated in this item shall be
         available for expenditure pursuant
         to Item 0558-001-0001, as authorized
         by the Director of Finance.
     2.  Of the reimbursements appropriated
         in this item, $47,000 in support of
         Proposition 49 activities is
         available only until June 30, 2010.


0650-101-0890--For local assistance,
Office of Planning and Research, Program
21-California Service Corps, payable from
the Federal Trust Fund..................... 35,000,000
      Provisions:
      1.     The funds appropriated in this
             item are for local assistance
             allocations approved by the
             California Service Corps.


0690-001-0001--For support of Office of
Emergency Services......................... 38,244,000
    Schedule:
    (0.5)   10-Support of
            Office of Homeland
            Security............   1,105,000
    (1)     15-Mutual Aid
            Response............  17,488,000
    (2)     35-Plans and
            Preparedness........  19,543,000
    (3)     45-Disaster
            Assistance..........  29,140,000
    (4)     55.01-
            Administration and
            Executive...........   8,489,000
    (5)     55.02-Distributed
            Administration and
            Executive...........  -7,401,000
    (8)     Reimbursements......  -2,651,000
    (9)     Amount payable from
            the Unified Program
            Account (Item 0690-
            001-0028)...........    -781,000
    (10)    Amount payable from
            the Nuclear
            Planning Assessment
            Special     Account
            (Item 0690-001-
            0029)...............  -1,080,000
    (11)    Amount payable from
            the Federal Trust
            Fund (Item 0690-001-
            0890)............... -24,402,000
    (11.5)  Amount payable from
            the California
            Ports
            Infrastructure,
            Security, and Air
            Quality Improvement
            Account, Highway
            Safety, Traffic
            Reduction, Air
            Quality, and Port
            Security Fund of
            2006 (Item 0690-001-
            6054)...............  -1,105,000
    (12)    Amount payable from
            the Antiterrorism
            Fund (Item 0690-015-
            3034)...............    -101,000
    Provisions:
    1.      Funds appropriated in this item
            may be reduced by the Director
            of Finance, after giving notice
            to the Chairperson of the Joint
            Legislative Budget Committee,
            by the amount of federal funds
            made available for the purposes
            of this item in excess of the
            federal funds scheduled in Item
            0690-001-0890.
    2.      The Office of Emergency
            Services shall charge tuition
            for all training offered
            through the California
            Specialized Training Institute.
    3.      Upon approval by the Department
            of Finance, the Controller
            shall transfer such funds as
            are necessary between this item
            and Item 0690-101-0890.


0690-001-0028--For support of Office of
Emergency Services, for payment to Item
0690-001-0001, payable from the Unified
Program Account...........................     781,000


0690-001-0029--For support of Office of
Emergency Services, for payment to Item
0690-001-0001, payable from the Nuclear
Planning Assessment Special Account.........  1,080,000
     Provisions:
     1.  Pursuant to subdivision (f) of
         Section 8610.5 of the Government
         Code, any     unexpended funds from
         the appropriation in the prior
         fiscal year for the purposes of
         conducting a full participation
         exercise are hereby appropriated in
         augmentation of this item.


0690-001-0890--For support of Office of
Emergency Services, for payment to Item
0690-001-0001, payable from the Federal
Trust Fund................................. 24,402,000
      Provisions:
      1.     Any funds that may become
             available, in addition to the
             funds appropriated in this
             item, for disaster
             response and recovery may be
             allocated by the Department of
             Finance subject to the
             conditions of Section 28.00,
             except that, notwithstanding
             subdivision (d) of that
             section, the allocations may
             be made 30 days or less after
             notification of the
             Legislature.
      2.     Notwithstanding any other
             provision of law, the funds
             appropriated in this item may
             be expended without regard to
             the fiscal year in which the
             application for reimbursement
             was submitted to the Federal
             Emergency Management Agency.


0690-001-3112--For support of Office of
Emergency Services, payable from the
Equality in Prevention and Services for
Domestic Abuse Fund.......................      38,000


0690-001-6054--For support of the Office
of Emergency Services, for payment to
Item 0690-001-0001, payable from the
California Ports Infrastructure,
Security, and Air Quality Improvement
Account, Highway Safety, Traffic
Reduction, Air Quality, and Port Security
Fund of 2006..............................  1,105,000


0690-001-8039--For support of Office of
Emergency Services, payable from the
Disaster Resistant Communities Account......    200,000
     Provisions:
     1.  The Department of Finance may
         authorize the augmentation of the
         total amount available for
         expenditure under this item in the
         amount of any donations from the
         private sector received by the
         Office of Emergency Services that
         are in excess of the amount
         appropriated in this item. Any
         augmentation shall be accompanied
         by a spending plan submitted by the
         Office of Emergency Services. The
         spending plan shall include, at a
         minimum, the source and level of
         donations received to date, a
         detailed description of activities
         already completed and those
         activities proposed, the source and
         amount of any additional donations
         expected to be received, and the
         identification of any impact of the
         spending plan on other state funds.
         An approval of an augmentation of
         this item shall be effective not
         sooner than 30 days after the
         transmittal of the approval and
         spending plan to the Chairperson of
         the Joint Legislative Budget
         Committee, or not     sooner than
         whatever lesser time the
         chairperson of the joint committee,
         or his or her designee, may
         determine.


0690-002-0001--For support of Office of
Emergency Services............................ 11,073,000
     Schedule:
     (1)   50-Criminal Justice
           Projects...............   14,869,000
     (2)   51-State Terrorism
           Threat Assessment
           Center.................    6,912,000
     (3)   Reimbursements.........      -20,000
     (4)   Amount payable from
           the Local Public
           Prosecutors and Public
           Defenders Training
           Fund (Item 0690-002-
           0241)..................      -76,000
     (5)   Amount payable from
           the Victim-Witness
           Assistance Fund (Item
           0690-002-0425).........   -1,335,000
     (6)   Amount payable from
           the High Technology
           Theft Apprehension and
           Prosecution Program
           Trust Fund (Item
           0690-002-0597).........     -691,000
     (7)   Amount payable from
           the Federal Trust Fund
           (Item 0690-002-0890)...   -8,586,000
     Provisions:
     1.    The funds appropriated in Schedule
           (2) shall be used to continue and
           expand funding for the State
           Terrorism Threat     Assessment
           Center, which shall provide
           investigative assistance to local
           and federal law enforcement
           agencies, provide intelligence
           gathering and data analysis, and
           create and maintain a statewide
           informational database to analyze
           and distribute information related
           to terrorist activities. The Office
           of Emergency Services shall
           allocate funds to the Department of
           Justice for these purposes upon the
           request of the Department of
           Justice.
     2.    It is the intent of the Legislature
           that the General Fund shall be
           reimbursed from future allocations
           of federal security-related funds
           that may be used for the purposes
           described in this item.
     3.    Of the funds appropriated in
           this item, $100,000 is provided on
           a one-year, limited-term basis for
           state operations to support the
           California Multijurisdictional
           Methamphetamine Enforcement Teams
           Program.
     4.    Of the amount appropriated in this
           item, $446,000 shall be used for an
           Office of State Anti-Gang
           Coordination. The duties and
           responsibilities of this office
           shall be subject to additional
           definition in legislation adopted
           during the 2007-08 Regular Session.


0690-002-0241--For support of Office of
Emergency Services, for payment to Item
0690-002-0001, payable from the Local
Public Prosecutors and Public Defenders
Training Fund...............................     76,000
     Provisions:
     1.  Notwithstanding any other provision
         of law restricting the costs     of
         administering individual programs,
         the full amount of this
         appropriation may be used by the
         Office of Emergency Services for
         administrative costs.


0690-002-0425--For support of Office of
Emergency Services, for payment to Item
0690-002-0001, payable from the Victim-
Witness Assistance Fund...................   1,335,000


0690-002-0597--For support of Office of
Emergency Services, for payment to Item
0690-002-0001, payable from the High
Technology Theft Apprehension and
Prosecution Program Trust Fund..............    691,000
     Provisions:
     1.  Funds appropriated in this item are
         for the High     Technology Theft
         Apprehension and Prosecution
         Program, as established by Chapter
         5.7 (commencing with Section 13848)
         of Title 6 of Part 4 of the Penal
         Code, as amended by Chapter 555,
         Statutes of 1998, and shall be
         deposited in the High Technology
         Theft Apprehension and Prosecution
         Program Trust Fund, established
         pursuant to Section 13848.4 of the
         Penal Code.


0690-002-0890--For support of Office of
Emergency Services, for payment to Item
0690-002-0001, payable from the Federal
Trust Fund................................   8,586,000


0690-003-0001--For support of Office of
Emergency Services, for rental payments on
lease-revenue bonds.......................... 1,969,000
     Schedule:
     (1) Base Rental and Fees....... 1,942,000
     (2) Insurance..................    27,000
     Provisions:
     1.  The Controller shall transfer funds
         appropriated in this item according
         to a schedule to be provided by the
         State Public Works Board. The
         schedule shall be provided on a
         monthly basis or as otherwise
         might be needed to ensure debt
         requirements are met.
     2.  This item may contain adjustments
         pursuant to Section 4.30 that are
         not currently reflected. Any
         adjustments to this item shall be
         reported to the Joint Legislative
         Budget Committee pursuant to Section
         4.30.


0690-010-3034--For support of Office of
Emergency Services for the Office of
Homeland Security, for payment to Item
0690-011-0890, payable from the
Antiterrorism Fund........................     110,000


0690-011-0890--For support of Office of
Emergency Services for the Office of Homeland
Security, payable from the Federal Trust Fund. 35,195,000
     Schedule:
     (1)   10-Support of
           Office of Homeland
           Security...............   13,305,000
     (2)   60-Support of Other
           State Agencies.........   22,000,000
     (3)   Amount payable from
           the Antiterrorism Fund
           (Item 0690-010-3034)...     -110,000


0690-013-0001--For transfer by the
Controller to the High Technology Theft
Apprehension and Prosecution Program Trust
Fund........................................    691,000
     Provisions:
     1.  Funds appropriated in this item are
         for the High Technology Theft
         Apprehension and Prosecution
         Program, as     established by
         Chapter 5.7 (commencing with
         Section 13848) of Title 6 of Part 4
         of the Penal Code, as amended by
         Chapter 555, Statutes of 1998, and
         shall be deposited in the High
         Technology Theft Apprehension and
         Prosecution Program Trust Fund,
         established pursuant to Section
         13848.4 of the Penal Code.


0690-015-3034--For support of the Office
of Emergency Services, for payment to
Item 0690-001-0001, payable from the
Antiterrorism Fund........................     101,000


0690-101-0029--For local assistance, Office
of Emergency Services, Program 35--Plans
and Preparedness, payable from the Nuclear
Planning Assessment Special Account.........  2,469,000
     Provisions:
     1.  Pursuant to subdivision (f) of
         Section 8610.5 of the Government
         Code,     any unexpended funds from
         the appropriation in the prior
         fiscal year for the purposes of
         conducting a full participation
         exercise are hereby appropriated in
         augmentation of this item.


0690-101-0890--For local assistance,
Office of Emergency Services, payable
from the Federal Trust Fund............... 573,826,000
    Schedule:
    (1)   35-Plans and
          Preparedness........   16,100,000
    (2)   45-Disaster
          Assistance..........  557,726,000
    Provisions:
    1.    Any federal funds that may
          become available in addition to
          the funds appropriated in this
          item for Program 45-Disaster
          Assistance are exempt from
          Section 28.00.


0690-101-6054--For local assistance, Office
of Emergency Services, payable from the
California Ports Infrastructure, Security,
and Air Quality Improvement Account,
Highway Safety, Traffic Reduction, Air
Quality, and Port Security Fund of 2006..... 40,000,000
     Schedule:
     (1)    10-Support of Office
            of Homeland
            Security.............  40,000,000


0690-102-0001--For local assistance, Office
of Emergency Services......................... 61,949,000
     Schedule:
     (1)   50.20-Victim Services..    4,352,000
     (2)   50.30-Public Safety....   57,597,000
     Provisions:
     1.    Notwithstanding any other provision
           of law, the Office of Emergency
           Services may provide advance
           payment of up to 25 percent of
           grant funds awarded to community-
           based nonprofit organizations,
           cities, school districts, counties,
           and     other units of local
           government that have demonstrated
           cashflow problems according to the
           criteria set forth by the Office of
           Emergency Services.
     2.    To maximize the use of program
           funds and demonstrate the
           commitment of the grantees to
           program objectives, the Office of
           Emergency Services shall require
           all grantees of funds from the Gang
           Violence Suppression-Curfew
           Enforcement Strategy Program to
           provide local matching funds of at
           least 10 percent for the first and
           each subsequent year of operation.
           This match requirement applies to
           each agency that is to receive
           grant funds. An agency may meet its
           match requirements with an in-kind
           match, if approved by the Office of
           Emergency Services.
     3.    Of the amount appropriated in
           Schedule (2), $800,000 shall be
           provided for grants to counties,
           consistent with the Central Coast
           Rural Crime Prevention Program as
           established in Chapter 18 of the
           Statutes of 2003. The funds shall
           be distributed only to counties for
           planning, or for implementation of
           the program in those counties that
           have completed the planning
           process, consistent with Chapter 18
           of the Statutes of 2003. In no case
           shall a grant exceed $300,000.
     4.    The Department of Finance shall
           include a special display table in
           the Governor's Budget under the
           Office of Emergency Services that
           displays, by fund source, component
           level detail for Program 50,
           Criminal Justice Projects. In
           addition, the Office of Emergency
           Services, in consultation with the
           Department of Finance, shall
           provide a     report to the Joint
           Legislative Budget Committee by
           January 10 of each year that
           provides a list of grantees, total
           funds awarded to each grantee, and
           performance statistics to document
           program outputs and outcomes in
           order to assess the state's return
           on investment for each component of
           Program 50 for each of the three
           years displayed in the Governor's
           Budget.
     5.    Of the funding appropriated in
           Schedule (2) of this item,
           $29,400,000 is for local assistance
           to support the California
           Multijurisdictional Methamphetamine
           Enforcement Teams Program.
           $19,900,000 of this funding is
           provided on a one-year, limited-
           term basis. No later than January
           10, 2008, the Office of Emergency
           Services, in consultation with the
           Department of Finance, shall submit
           to the Joint Legislative Budget
           Committee a report that proposes a
           funding allocation plan     that
           links grant funding to the size of
           the problem in each of the five
           state-designated regions. The
           report shall also include a summary
           of spending by region, program
           activities, and demonstrated
           outcomes such as lab seizures and
           arrests.
     6.    Of the amount appropriated in
           Schedule (2), $8,000,000 is in
           augmentation of the Vertical
           Prosecution Block Grants for a
           total program of $16,176,000.


0690-102-0214--For local assistance, Office
of Emergency Services, payable from the
Restitution Fund............................. 10,500,000
     Schedule:
     (1)    Grants to cities with
            heavy gang
            concentrations........   3,000,000
                                                          (2)
Competitive grants to
            cities................   4,500,000
     (3)    Competitive grants to
            community-based
            organizations.........   2,000,000
     (4)    Internet Crimes
            Against Children Task
            Force Funding.........   1,000,000
     Provisions:
     1.     The amount appropriated in
            Schedules (1), (2), and (3) shall
            be for grants to cities and
            community-based organizations for
            gang prevention, intervention,
            reentry, education, job training
            and skills development, and
            family and community services.
            Grant funds shall not be used for
            law enforcement suppression
            activities or front-line police
            services.
     2.     The Office of Emergency Services
            shall award grants from Schedules
            (1), (2), and (3) not later than
            January 15, 2008. All grantees
            must provide a dollar-for-dollar
            match to state grant funds.
            Grantees may expend funds over a
            three-year     period.
     3.     The Office of Emergency Services
            shall submit a report and
            evaluation of the grants awarded
            pursuant to Schedules (1), (2),
            and (3) to the fiscal committees
            of the Legislature not later than
            April 1, 2011.
     4.     The Department of Finance may
            transfer up to 3 percent of the
            funds appropriated in Schedules
            (1), (2), and (3) to Item 0690-
            002-0001 for administration of
            the grant programs.
     5.     The amount appropriated in
            Schedule (1) shall be distributed
            as follows: $1,000,000 each to
            Los Angeles, Bay Area cities, and
            Central Valley     cities.
     6.     The amount appropriated in
            Schedule (2) shall be competitive
            grants to cities. No grant shall
            exceed $500,000, and at least two
            grants shall be awarded to cities
            with populations of 200,000 or
            less. In awarding grants, the
            Office of Emergency Services
            shall give preference to
            applicants that incorporate
            regional approaches to antigang
            activities.
     7.     Each city that receives a grant
            from Schedule (1) or (2) shall
            collaborate and coordinate with
            area jurisdictions and agencies,
            including the existing county
            juvenile justice coordination
            council, with the goal of
            reducing gang activity in the
            city and adjacent areas. Each
            grantee shall establish a
            coordinating and advisory council
            to     prioritize the use of the
            funds. Membership shall include
            city officials, local law
            enforcement, including county
            sheriff, chief probation officer,
            and district attorney, local
            education agencies, including
            school districts and the county
            office of education, and
            community-based organizations.
     8.     The amount appropriated in
            Schedule (3) shall be for grants
            to community-based organizations.
            The grants shall be used to test
            different approaches designed to
            reduce gang activities in
            communities and neighborhoods. No
            grant shall exceed $200,000.


0690-102-0241--For local assistance, Office
of Emergency Services, payable from the
Local Public Prosecutors and Public
Defenders Training Fund......................    792,000
     Schedule:
     (1) 50.30-Public Safety........   792,000
     Provisions:
     1.  Notwithstanding any other provision
         of law, the Office of Emergency
         Services may provide advance payment
         of up to 25 percent of grant funds
         awarded to community-based,
         nonprofit organizations, cities,
         school districts, counties, and
         other units of local government that
         have demonstrated cashflow problems
         according to the criteria set forth
         by the Office of Emergency Services.


0690-102-0425--For local assistance, Office
of Emergency Services, payable from the
Victim-Witness Assistance Fund................ 16,519,000
     Schedule:
     (1)   50.20-Victim Services..   16,519,000
     Provisions:
     1.    Notwithstanding any other provision
           of law, the Office of Emergency
           Services may provide advance
           payment of up to 25 percent of
           grant funds awarded to community-
           based, nonprofit organizations,
           cities, school districts, counties,
           and other units of local government
           that have demonstrated cashflow
           problems according to the criteria
           set forth by the Office of
           Emergency Services.


0690-102-0597--For local assistance, Office
of Emergency Services, payable from the High
Technology Theft Apprehension and Prosecution
Program Trust Fund............................ 13,300,000
     Schedule:
     (1)   50.30-Public Safety....   13,300,000
     Provisions:
     1.    Funds appropriated in this item are
           for the High Technology Theft
           Apprehension and Prosecution
           Program, as established by Chapter
           5.7 (commencing with Section 13848)
           of Title 6 of Part 4 of the Penal
           Code, as amended by Chapter 555,
           Statutes of 1998, and shall be
           deposited in the High Technology
           Theft Apprehension and Prosecution
           Program Trust Fund, established
           pursuant to Section 13848.4 of the
           Penal Code.
     2.    All grantees receiving funds
           appropriated in this item shall be
           required to provide matching funds
           equal to 25 percent of the amount
           of grant funding received by them
           from the High Technology Theft
           Apprehension and Prosecution
           Program Trust Fund.


0690-102-0890--For local assistance,
Office of Emergency Services, payable
from the Federal Trust Fund............... 114,777,000
     Schedule:
     (1)   50.20 Victim
           Services............  70,635,000
     (2)   50.30 Public Safety.  44,142,000
     Provisions:
     1.    Notwithstanding any other
           provision of law, the Office of
           Emergency Services may provide
           advance payment of up to 25
           percent of grant funds awarded
           to community-based, nonprofit
           organizations, cities, school
           districts, counties, and other
           units of local government that
           have demonstrated cashflow
           problems according to the
           criteria set forth by the
           Office of Emergency Services.
     2.    Of the funds appropriated in
           this item, $224,000 of the
           amount allocated for the
           Victims of Crime Act Program
           (50.20.451) shall be provided
           for support of the Office of
           Victims' Services within the
           Department of Justice.


0690-102-3112--For local assistance, Office
of Emergency Services, payable from the
Equality in Prevention and Services for
Domestic Abuse Fund.........................    300,000
     Schedule:
     (1) 50.20-Victim Services......  300,000


0690-111-0890--For local assistance,
Office of Emergency Services, for the
Office of Homeland Security, payable from
the Federal Trust Fund.................... 328,000,000


0690-112-0001--For local assistance,
Office of Emergency Services, for disaster
recovery costs............................. 55,793,000
      Provisions:
      1.     The funds appropriated in this
             item are for the state's share
             of response and recovery costs
             for disasters.


0690-113-0001--For transfer by the
Controller to the High Technology Theft
Apprehension and Prosecution Program Trust
Fund....................................... 13,300,000
      Provisions:
      1.     Funds appropriated in this
             item are for the High
             Technology Theft Apprehension
             and Prosecution Program, as
             established by Chapter 5.7
             (commencing with Section
             13848) of Title 6 of Part 4 of
             the Penal Code, as amended by
             Chapter 555 of the Statutes of
             1998, and shall be deposited
             in the High Technology Theft
             Apprehension and Prosecution
             Program Trust Fund,
             established pursuant to
             Section 13848.4 of the Penal
             Code.


0690-115-0001--For local assistance, Office
of Emergency Services, for volunteer
disaster service workers' compensation......  1,125,000
     Provisions:
     1.  The funds appropriated in this item
         shall be used to pay approved
         volunteer disaster service workers'
         compensation     claims and
         administrative expenditures related
         to the payment of those claims by
         the State Compensation Insurance
         Fund.
     2.  Notwithstanding any other provision
         of law, the Director of Finance may
         authorize expenditures in this item
         in excess of the amount
         appropriated in this item for the
         purposes of paying unanticipated
         volunteer disaster service workers'
         compensation claims and
         administrative expenditures related
         to the payment of those claims. The
         Director of Finance may not approve
         any expenditure unless the approval
         is made in writing and filed with
         the Chairperson of the Joint
         Legislative Budget Committee and
         the chairpersons of the committees
         in each house of the Legislature
         that consider appropriations no
         later than 30 days prior to the
         effective date of approval, or
         prior to whatever lesser time the
         chairperson of the joint
         committee, or his or her designee,
         may determine.


0750-001-0001--For support of Office of
the Lieutenant Governor...................   3,152,000


0820-001-0001--For support of Department
of Justice................................ 404,237,000
    Schedule:
    (1)   11.01-Directorate-
          -Administration.....   29,886,000
    (2)   11.02-Distributed
          Directorate-
          -Administration.....  -29,886,000
    (3)   12.01-Legal Support
          and Technology
          Administration......   53,425,000
    (4)   12.02-Distributed
          Legal Support and
          Technology
          Administration......  -53,425,000
    (5)   25-Executive
          Programs............   16,203,000
    (6)   30-Civil Law........  146,177,000
    (7)   40-Criminal Law.....  118,744,000
    (8)   45-Public Rights....   92,478,000
    (9)   50-Law Enforcement..  254,168,000
    (10)  60-California
          Justice Information
          Services............  182,388,000
    (13)  Reimbursements......  -43,079,000
    (14)  Amount payable from
          the Attorney
          General Antitrust
          Account (Item 0820-
          001-0012)...........   -1,306,000
    (15)  Amount payable from
          Hazardous Waste
          Control Account
          (Item 0820-001-
          0014)...............   -1,973,000
    (16)  Amount payable from
          the     Fingerprint
          Fees Account (Item
          0820-001-0017)......  -72,586,000
    (17)  Amount payable from
          Firearms Safety
          Account (Item 0820-
          001-0032)...........     -329,000
    (18)  Amount payable from
          the Motor Vehicle
          Account, State
          Transportation Fund
          (Item 0820-001-
          0044)...............  -24,876,000
    (19)  Amount payable from
          the Department of
          Justice Sexual
          Habitual Offender
          Fund (Item 0820-001-
          0142)...............   -2,835,000
    (20)  Amount payable from
          the Travel Seller
          Fund (Item 0820-001-
          0158)...............   -1,316,000
    (21)  Amount payable from
          the Restitution
          Fund (Item 0820-001-
          0214)...............     -334,000
    (22)  Amount payable from
          the Sexual Predator
          Public Information
          Account (Item 0820-
          001-0256)...........     -165,000
    (23)  Amount payable from
          the Indian Gaming
          Special
          Distribution
          Fund (Item 0820-001-
          0367)...............  -15,180,000
    (24)  Amount payable from
          the False Claims
          Act Fund (Item 0820-
          001-0378)...........  -13,195,000
    (25)  Amount payable from
          the Dealers' Record
          of Sale Special
          Account (Item 0820-
          001-0460)...........   -9,745,000
    (26)  Amount payable from
          the Toxic
          Substances Control
          Account (Item 0820-
          001-0557)...........   -2,361,000
    (27)  Amount payable from
          the Department of
          Justice Child Abuse
          Fund (Item 0820-001-
          0566)...............     -350,000
    (28)  Amount payable from
          the Gambling
          Control Fund (Item
          0820-001-0567)......   -7,021,000
    (29)  Amount payable from
          the Gambling
          Control Fines and
          Penalties Account
          (Item 0820-001-
          0569)...............      -45,000
    (30)  Amount payable from
          the Federal Trust
          Fund (Item     0820-
          001-0890)...........  -41,222,000
    (31)  Amount payable from
          the Federal Asset
          Forfeiture Account,
          Special Deposit
          Fund (Item 0820-001-
          0942)...............   -1,475,000
    (32)  Amount payable from
          the State Asset
          Forfeiture Account,
          Special Deposit
          Fund (Item 0820-011-
          0942)...............     -562,000
    (33)  Amount payable from
          the Firearms Safety
          and Enforcement
          Special Fund (Item
          0820-001-1008)......   -3,075,000
    (34)  Amount payable from
          the Missing Persons
          DNA Database Fund
          (Item 0820-001-
          3016)...............   -4,370,000
    (35)  Amount payable from
          the Public Rights
          Law Enforcement
          Special Fund (Item
          0820-001-3053)......   -5,928,000
    (36)  Amount payable from
          the Ratepayer
          Relief Fund (Item
          0820-001-3061)......   -7,147,000
    (37)  Amount payable from
          the DNA
          Identification Fund
          (Item 0820-001-
          3086)...............  -20,986,000
    (38)  Amount payable from
          the Unfair
          Competition Law
          Fund (Item 0820-001-
          3087)...............   -3,510,000
    (39)  Amount payable from
          the Registry of
          Charitable Trusts
          Fund (Item 0820-001-
          3088)...............   -2,785,000
    (40)  Amount payable from
          the Legal Services
          Revolving Fund
          (Item 0820-001-
          9731)............... -118,165,000
    Provisions:
    1.    The Attorney General shall
          submit to the Legislature, the
          Department of Finance, and the
          Governor the quarterly and
          annual reports that he or she
          submits to the federal
          government on the activities of
          the Medi-Cal Fraud Unit.
    2.    Notwithstanding any other
          provision of law, the Department
          of Justice may purchase or lease
          vehicles of any type or class
          that, in the judgment of the
          Attorney General or his or her
          designee, are necessary to the
          performance of the investigatory
          and enforcement responsibilities
          of the Department of Justice,
          from the funds appropriated for
          that purpose in this item.
    3.    Of the amount included in
          Schedule (6), $4,184,000 is
          available for costs related to
          the Lloyd's of London
          (Stringfellow) litigation. Any
          funds not expended for this
          specific purpose as of June 30,
          2008, shall revert immediately
          to the General Fund.
    4.    Of the funds appropriated in
          this item, $18,029,000 is
          available solely for the
          Correctional Law Section that
          handles only workload related to
          Department of Corrections and
          Rehabilitation cases, and of
          that amount $4,971,000 is
          restricted to class action
          workload.
    5.    Of the amount appropriated in
          Schedule (9), $4,665,000 is
          available for costs related to
          the California Methamphetamine
          Strategy program. Any of these
          funds not expended for this
          specific purpose shall revert to
          the General Fund.
    6.    Of the amount appropriated in
          Schedule     (9), $5,347,000 is
          available for costs related to
          the Gang Suppression Enforcement
          Teams program. Any of these
          funds not expended for this
          specific purpose shall revert to
          the General Fund.
    11.   Notwithstanding any other
          provision of law, of the funds
          appropriated in Schedule (9),
          $541,000 is payable from the
          Dealers' Record of Sale Special
          Account and may be used to
          update the Automated Firearms
          Systems database. These funds
          may not be expended until the
          Office of the Chief Information
          Officer approves a feasibility
          study report for this project.
          The Department of Justice shall
          notify the Joint Legislative
          Budget Committee that a
          feasibility study report has
          been approved within 30 days of
          the report's approval by the
          Office of the Chief Information
          Officer, and shall include with
          the notification a copy of the
          approved feasibility study
          report.
    12.   Notwithstanding any other
          provision of law, $1,000,000 in
          this item is provided to pursue
          climate litigation to reduce
          greenhouse gas emissions. These
          funds shall not be used to
          support litigation against local
          government entities.


0820-001-0012--For support of Department
of Justice, for payment to Item 0820-001-
0001, payable from the Attorney General
Antitrust Account.........................   1,306,000


0820-001-0014--For support of Department
of Justice, for payment to Item 0820-001-
0001, payable from the Hazardous Waste
Control Account...........................   1.973,000


0820-001-0017--For support of Department
of Justice, for payment to Item 0820-001-
0001, payable from the Fingerprint Fees
Account, pursuant to subdivision (e) of
Section 11105 of the Penal Code...........  72,586,000


0820-001-0032--For support of Department
of Justice, for payment to Item 0820-001-
0001, payable from the Firearms Safety
Account...................................     329,000


0820-001-0044--For support of Department
of Justice, for payment to Item 0820-001-
0001, payable from the Motor Vehicle
Account, State Transportation Fund........  24,876,000


0820-001-0142--For support of Department of
Justice, for payment to Item 0820-001-0001,
payable from the Department of Justice
Sexual Habitual Offender Fund...............  2,835,000
     Provisions:
     1.  The amount appropriated in this
         item includes revenues derived from
         the     assessment of fines and
         penalties imposed as specified in
         Section 13332.18 of the Government
         Code.


0820-001-0158--For support of Department
of Justice, for payment to Item 0820-001-
0001, payable from the Travel Seller Fund.   1,316,000


0820-001-0214--For support of Department
of Justice, for payment to Item 0820-001-
0001, payable from the Restitution Fund...     334,000


0820-001-0256--For support of Department of
Justice, for payment to Item 0820-001-0001,
payable from the Sexual Predator Public
Information Account.........................    165,000
     Provisions:
     1.  Notwithstanding subparagraph (D) of
         paragraph (5) of subdivision (a) of
         Section 290.4     of the Penal
         Code, the Department of Justice may
         expend the amount appropriated in
         this item.


0820-001-0367--For support of Department
of Justice, for payment to Item 0820-001-
0001, payable from the Indian Gaming
Special Distribution Fund.................  15,180,000


0820-001-0378--For support of Department
of Justice, for payment to Item 0820-001-
0001, payable from the False Claims Act
Fund......................................  13,195,000


0820-001-0460--For support of Department of
Justice, for payment to Item 0820-001-0001,
payable from the Dealers' Record of Sale
Special Account.............................  9,745,000
     Provisions:
     1.  Dealers' Record of Sale fees
         collected pursuant to the state law
         for the registration of     assault
         weapons shall not exceed $20 per
         registrant.


0820-001-0557--For support of Department
of Justice, for payment to Item 0820-001-
0001, payable from the Toxic Substances
Control Account...........................   2,361,000


0820-001-0566--For support of Department
of Justice, for payment to Item 0820-001-
0001, payable from Department of Justice
Child Abuse Fund..........................     350,000


0820-001-0567--For support of Department
of Justice, for payment to Item 0820-001-
0001, payable from Gambling Control Fund..   7,021,000


0820-001-0569--For support of Department
of Justice, for payment to Item 0820-001-
0001, payable from Gambling Control Fines
and Penalties Account.....................      45,000


0820-001-0890--For support of Department
of Justice, for payment to Item 0820-001-
0001, payable from the Federal Trust Fund.  41,222,000


0820-001-0942--For support of Department
of Justice, for payment to Item 0820-001-
0001, payable from the Federal Asset
Forfeiture Account, Special Deposit Fund..   1,475,000


0820-001-1008--For support of Department
of Justice, for payment to Item 0820-001-
0001, payable from the Firearms Safety
and Enforcement Special Fund..............   3,075,000


0820-001-3016--For support of Department
of Justice, for payment to Item 0820-001-
0001, payable from the Missing Persons
DNA Data Base Fund........................   4,370,000


0820-001-3053--For support of Department of
Justice, for payment to Item 0820-001-0001,
payable from the Public Rights Law
Enforcement Special Fund....................  5,928,000
     Provisions:
     1.  Of the funds appropriated in this
         item, $4,976,000 is for the
         Corporate     Responsibility Unit.
         These funds may not be encumbered
         or expended until the Corporate
         Responsibility Unit has recovered
         sufficient funds to cover its costs.


0820-001-3061--For support of Department of
Justice, for payment to Item 0820-001-0001,
payable from the Ratepayer Relief Fund......  7,147,000
     Provisions:
     1.  All funds appropriated in this item
         are for energy investigations and
         litigation. These funds may not be
         encumbered or expended until the
         Energy and Corporate Responsibility
         Section has recovered sufficient
         funds to cover its costs.


0820-001-3086--For support of Department
of Justice, for payment to Item 0820-001-
0001, payable from the DNA Identification
Fund......................................  20,986,000


0820-001-3087--For support of Department
of Justice, for payment to Item 0820-001-
0001, payable from the Unfair Competition
Law Fund..................................   3,510,000


0820-001-3088--For support of Department
of Justice, for payment to Item 0820-001-
0001, payable from the Registry of
Charitable Trusts Fund....................   2,785,000


0820-001-9731--For support of Department
of Justice, for payment to Item 0820-001-
0001, payable from the Legal Services
Revolving Fund............................. 118,165,000
      Provisions:
      1.     Notwithstanding Section 28.00,
             the Attorney General may
             augment the amount
             appropriated in the     Legal
             Services Revolving Fund up to
             an aggregate of 10 percent
             above the amount approved in
             this act for the Civil Law
             Division and the Public Rights
             Division in cases where the
             legal representation needs of
             client agencies are secured by
             an interagency agreement or
             letter of commitment and the
             corresponding expenditure
             authority has not been
             provided in this item. The
             Attorney General shall notify
             the chairpersons of the budget
             committees, the Joint
             Legislative Budget Committee
             and the Department of Finance
             within 15 days after the
             augmentation is made as to the
             amount and justification of
             the augmentation, and the
             program that has been
             augmented.


0820-003-0001--For support of Department of
Justice, for rental payments on lease-
revenue bonds................................ 4,520,000
     Schedule:
     (1) Base Rental and Fees....... 4,519,000
     (2) Insurance..................    13,000
     (3) Reimbursements.............   -12,000
     Provisions:
     1.  The Controller shall transfer funds
         appropriated in this item according
         to a schedule to be provided by the
         State Public Works Board. The
         schedule shall be provided on a
         monthly basis or as otherwise might
         be needed to ensure debt
         requirements are met.
     2.  This item may contain adjustments
         pursuant to Section 4.30 that are
         not currently reflected. Any
         adjustments to this item shall be
         reported to the Joint Legislative
              Budget Committee pursuant to Section
         4.30.


0820-011-0942--For support of Department
of Justice, for payment to Item 0820-001-
0001, payable from the State Asset
Forfeiture Account, Special Deposit Fund..     562,000


0820-101-0001--For local assistance,
Department of Justice........................ 3,045,000
     Schedule:
     (1) 40-Criminal law............ 3,045,000
     Provisions:
     1.  The funds appropriated in this item
         shall be allocated to district
         attorneys for vertical prosecution
         activities related to implementation
         of the Battered Women Protection Act
         of 1994, pursuant to Chapter 885 of
         the Statutes of 1997.


0820-101-0214--For local assistance,
Department of Justice........................ 6,355,000
     Schedule:
     (1) 50-Law Enforcement......... 6,355,000
     Provisions:
     1.  The funds appropriated in this item
         shall be allocated to support the
         California Witness Protection
         Program. Any funds not expended for
         this specific purpose shall revert
         to the Restitution Fund.


0820-101-0460--For local assistance,
Department of Justice, payable from the
Dealers' Record of Sale Special Account......     28,000
     Schedule:
     (2) 50-Law Enforcement..........   28,000


0820-101-0641--For local assistance,
Department of Justice, payable from the
Domestic Violence Restraining Order
Reimbursement Fund..........................  1,918,000
     Provisions:
     1.  The funds appropriated in this item
         shall be expended to reimburse
         local law enforcement or other
         criminal justice agencies pursuant
         to Chapter 707 of the Statutes of
         1998.


0820-490--Reappropriation, Department of
Justice. The balances of the appropriations
provided in the following citations are
reappropriated for the purposes provided for
in the appropriations and shall be available
for encumbrance or expenditure until June 30,
2008:
     0001--General Fund
     (1) Item 0820-001-0001, Budget Act of 2006
         (Chs. 47 and 48, Stats. 2006). The
         balance of     the funds appropriated
         in Schedule (10) 60-California Justice
         Information Services for the Violent
         Crime Information Network Renovation
         project is reappropriated for that
         purpose.
     (2) Item 0820-001-0001, Budget Act of 2006
         (Chs. 47 and 48, Stats. 2006). The
         balance of the funds appropriated in
         Schedule (10) 60-California Justice
         Information Services for the Criminal
         Justice Information System Redesign
         project is reappropriated for that
         purpose.


0840-001-0001--For support of State
Controller................................ 114,680,000
    Schedule:
    (1)   100000-Personal
          Services.............  99,147,000
    (2)   300000-Operating
          Expenses and
          Equipment............  80,629,000
    (3)   Amount payable from
          various special and
          nongovernmental cost
          funds (Section
          25.25)............... -14,644,000
    (4)   Reimbursements....... -38,439,000
    (5)   Amount payable from
          the Leaking
          Underground Storage
          Tank Cost Recovery
          Fund (Item 0840-001-
          0025)................  -1,014,000
    (6)   Amount payable from
          the Motor Vehicle
          Fuel Account,
          Transportation Tax
          Fund (Item 0840-001-
          0061)................  -3,986,000
    (7)   Amount payable from
          the Highway Users
          Tax Account,
          Transportation Tax
          Fund (Item 0840-001-
          0062)................  -1,133,000
    (8)   Amount payable from
          the Local Revenue
          Fund (Item 0840-001-
          0330)................    -570,000
    (9)   Amount payable from
          the Federal Trust
          Fund (Item 0840-001-
          0890)................  -1,381,000
    (10)  Amount payable from
          the State Penalty
          Fund (Item 0840-001-
          0903)................  -1,280,000
    (11)  Amount payable from
          various other
          unallocated
          nongovernmental cost
          funds (Retail Sales
          Tax Fund) (Item 0840-
          001-0988)............    -236,000
    (12)  Amount payable from
          School Facilities
          Fund (Item 0840-001-
          6044)................    -935,000
    (13)  Amount payable from
          other unallocated
          special funds (Item
          0840-011-0494).......    -107,000
    (14)  Amount payable from
          unallocated bond
          funds (Item 0840-011-
          0797)................    -410,000
    (15)  Amount payable from
          various other
          unallocated
          nongovernmental cost
          funds (Item 0840-011-
          0988)................    -100,000
    (16)  Amount payable from
          the Public
          Transportation
          Account, State
          Transportation Fund
          (Section 25.50)......     -18,000
    (17)  Amount payable from
          the Highway Users
          Tax Account,
          Transportation Tax
          Fund (Section 25.50).    -290,000
    (18)  Amount payable from
          the Motor Vehicle
          License Fee Account,
          Transportation Tax
          Fund (Section 25.50).     -17,000
    (19)  Amount payable from
          the DMV Local Agency
          Collection Fund
          (Section 25.50)......      -2,000
    (20)  Amount payable from
          the Trial Court
          Trust Fund (Section
          25.50)...............    -165,000
    (21)  Amount payable from
          the Timber Tax Fund
          (Section 25.50)......      -1,000
    (22)  Amount payable from
          the Public Safety
          Account, Local
          Public Safety Fund
          (Section 25.50)......    -254,000
    (23)  Amount payable from
          the Local Revenue
          Fund (Section 25.50).    -114,000
    Provisions:
    1.    The appropriation made in this
          item shall be in lieu of the
          appropriation in Section 1564 of
          the Code of Civil Procedure for
          all costs, expenses, or
          obligations connected with the
          administration of the Unclaimed
          Property Law, with the exception
          of payment of owners' or
          holders'     claims pursuant to
          Section 1540, 1542, 1560, or
          1561 of the Code of Civil
          Procedure, or of payment of the
          costs of compensating
          contractors for locating and
          recovering unclaimed property
          due the state.
    2.    Of the claims received for
          reimbursement of court-ordered
          or voluntary desegregation
          programs pursuant to Sections
          42243.6, 42247, and 42249 of the
          Education Code, the Controller
          shall pay only those claims that
          have been subjected to audit by
          school districts in accordance
          with the Controller's procedures
          manual for conducting audits of
          education desegregation claims.
          Furthermore, the Controller
          shall pay only those past-year
          actual claims for desegregation
          program costs that are
          accompanied by all reports
          issued by the auditing entity,
          unless the auditing entity was
          the Controller.
    3.    No less than 0.9 personnel-year
          in the audits division shall be
          used to audit education
          desegregation claims.
    4.    The Controller may, with the
          concurrence of the Director of
          Finance and the Chairperson of
          the Joint Legislative Budget
          Committee, bill affected state
          departments for activities
          required by Section 20050 of the
          State Administrative Manual,
          relating to the administration
          of federal pass-through funds.
           No billing may be sent to
          affected departments sooner than
          30 days after the Chairperson of
          the     Joint Legislative Budget
          Committee has been notified by
          the Director of Finance that he
          or she concurs with the amounts
          specified in the billings.
    5.    (a)     Notwithstanding
                  subdivision (b) of
                  Section 1531 of the Code
                  of Civil Procedure, the
                  Controller may publish
                  notice in any manner
                  that the Controller
                  determines reasonable,
                  provided that (1) none
                  of the moneys used for
                  this purpose is
                  redirected from funding
                  for the Controller's
                  audit activities, (2) no
                  photograph is used in
                  the publication of
                  notice, and (3) no
                  elected official's name
                  is used in the
                  publication of notice.
          (b)     No funds appropriated in
                  this act may be expended
                  by the Controller to
                  provide general
                  information to the
                  public, other than
                  holders (as defined in
                  subdivision (e) of
                  Section 1501 of the Code
                  of Civil Procedure) of
                  unclaimed property,
                  concerning the unclaimed
                  property program or
                  possible existence of
                  unclaimed property held
                  by the Controller's
                  office, except for
                  informational
                  announcements to the
                  news media, through the
                  exchange of information
                  on electronic bulletin
                  boards, or no more than
                  $50,000 per year to
                  inform the public about
                  this program in
                  activities already
                  organized by the
                  Controller for other
                  purposes. This
                  restriction does not
                  apply to sending
                  individual notices to
                  property owners (as
                  required by the Code of
                  Civil Procedure).
    6.    Of the moneys appropriated to
          the Controller in this act, the
          Controller shall not expend more
          than $500,000 to conduct
          posteligibility fraud audits of
          the Supplemental Security
          Income/State Supplementary
          Payment Program.
    7.    The Commission on State Mandates
          shall provide, in applicable
          parameters and guidelines, as
          follows:
          (a)     If a local agency or
                  school district
                  contracts with an
                  independent contractor
                  for the preparation and
                  submission of
                  reimbursement claims,
                  the costs reimbursable
                  by the state for that
                  purpose shall not exceed
                  the lesser of (1) 10
                  percent of the amount of
                  the claims prepared and
                  submitted by the
                  independent contractor,
                  or (2) the actual costs
                  that would necessarily
                  have been incurred for
                  that purpose if
                  performed by employees
                  of the local agency or
                  school district.
          (b)     The maximum amount of
                  reimbursement provided
                  in subdivision (a) may
                  be exceeded only if the
                  local agency or school
                  district establishes, by
                  appropriate
                  documentation, that the
                  preparation and
                  submission of these
                  claims could not have
                  been accomplished
                  without incurring the
                  additional costs claimed
                  by the local agency or
                  school district.
    8.    The funds appropriated to the
          Controller in this item may not
          be expended for any performance
          review or performance audit
          except pursuant to specific
          statutory authority. It is the
          intent of the Legislature that
          audits conducted by the
          Controller, or     under the
          direction of the Controller,
          shall be fiscal audits that
          focus on claims and
          disbursements, as provided for
          in Section 12410 of the
          Government Code. Any report,
          audit, analysis, or evaluation
          issued by the Controller for the
          2007-08 fiscal year shall cite
          the specific statutory or
          constitutional provision
          authorizing the preparation and
          release of the report, audit,
          analysis, or evaluation.
    9.    The Controller shall deliver his
          or her monthly report on General
          Fund cash receipts and
          disbursements within 10 days
          after the close of each month to
          the Joint Legislative Budget
          Committee, the fiscal committees
          of the Legislature, the
          Department of Finance, the
          Treasurer's office, and the
          Legislative Analyst's Office.
    10.   For purposes of the review and
          payment of any claim for
          reimbursement by local
          government submitted pursuant to
          Section 54954.4 of the
          Government Code, the Controller
          shall use the procedures that
          were in effect at the time the
          claim was submitted.
    11.   Pursuant to subdivision (c) of
          Section 1564 of the Code of
          Civil Procedure, the Controller
          shall transfer all moneys in the
          Abandoned Property Account in
          excess of $50,000 to the General
          Fund no less frequently than at
          the end of each month. This
          transfer shall include unclaimed
          Proposition 103 insurance rebate
          moneys pursuant to Section
          1861.01 of the Insurance Code
          and Section 1523 of the Code of
          Civil Procedure.
    12.   The Controller shall provide to
          the Department of Finance, the
          Chairperson of the Joint
          Legislative Budget Committee,
          and the chairpersons of the
          fiscal committees of each house
          of the Legislature a report that
          provides the following details
          by mandate: the level of claims
          requested; the amount reduced by
          the initial desk audit; the
          amount paid; the amount
          recouped; and the results of a
          final audit and subsequent
          funding adjustments. The report
          is due on April 15, 2008, and
          will cover the fourth quarter of
          the 2006-07 fiscal year and the
          first three quarters of the 2007-
          08 fiscal year.
    13.   To the extent authorized by
          existing law, the Controller
          shall recoup the amount of any
          unallowable mandate claim costs
          resulting from desk and/or
          field audits of such claims.
    14.   The Controller's estimate of the
          state's liability for
          postemployment benefits prepared
          to comply with Governmental
          Accounting Standards Board
          (GASB) Statement 45 shall
          include, in addition to all
          other items required under the
          accounting statement: (a) an
          identification and explanation
          of any significant differences
          in actuarial assumptions or
          methodology from any relevant
          similar types of assumptions or
          methodology used by the
          California Public Employees'
          Retirement System to estimate
          state pension obligations; and
          (b) alternative calculations of
          the state's liability for
          postemployment benefits using
          different long-term rates of
          investment return consistent
          with a hypothetical assumption
          that the state will begin to
          deposit 100 percent or a lesser
          percent, respectively, of its
          annual required     contribution
          under GASB Statement 45 to a
          retiree health and dental
          benefits trust fund beginning in
          the 2007-08 fiscal year. This
          provision shall not obligate the
          state to change the practice of
          funding health and dental
          benefits for annuitants
          currently required under state
          law.
    15.   Notwithstanding any other
          provision of law, the Director
          of Finance may authorize
          increases or decreases in
          expenditures for this item to
          reflect the final lease costs
          for the Cannery Business Park
          location and lease costs
          associated with the federal
          injunction on the Unclaimed
          Property Program of the
          Controller. The Director of
          Finance may authorize
          expenditure adjustments per this
          provision not sooner than 30
          days after notification in
          writing of the necessity
          therefor is provided to the
          chairpersons of the fiscal
          committees in each house of the
          Legislature and the Chairperson
          of the Joint Legislative Budget
          Committee, or not sooner than
          whatever lesser time the
          chairperson of the joint
          committee, or his or her
          designee, may in each instance
          determine.
    16.   The Controller shall provide the
          Chairperson of the Joint
          Legislative Budget Committee and
          the chairpersons of the fiscal
          committees in each house of the
          Legislature a report on the
          Human Resources Management
          System specifying the dollars
          expended on the program in the
          previous fiscal year and over
          the life of the program and any
          known savings that have occurred
          in the prior fiscal year , to be
          submitted annually but no later
          than August 30 of each year. The
          report should compare the known
          savings with the most recent
          estimate of projected savings
          and explain the methodology by
          which the savings were
          calculated.
    17.   (a)     The State Controller's
                  Office (SCO) shall
                  conduct an audit of
                  collection,
                  distribution, and
                  reporting practices
                  related to local
                  property tax revenue for
                  K-14 districts. The
                  intent of this audit is
                  to determine why the
                  growth rate in property
                  tax revenues as reported
                  by K-14 districts is
                  lower than the growth
                  rates reported by the
                  State Board of
                  Equalization and the
                  countywide growth rates
                  reported by county
                  assessors. This audit
                  shall determine how much
                  property tax is received
                  at the district level,
                  how those revenues are
                  allocated, and how those
                  revenues are reported
                  for purposes of
                  offsetting the state's
                  Proposition 98 General
                  Fund obligation. The
                  audit shall review and
                  report on the property
                  tax system, specifically
                  the process from
                  assessment to
                  allocation, collection,
                  and payment to K-14
                  districts and shall
                  focus particular
                  attention on pass-
                  through payments
                  received from
                  redevelopment agencies.
          (b)     Prior to initiating the
                  audit, the SCO shall
                  work with the
                  Legislature, the State
                  Department of Education,
                  the Department of
                  Finance, and the State
                  Board of Equalization to
                  ensure the scope
                  adequately addresses the
                  intent of the audit. The
                  SCO shall provide an
                  initial report on the
                  audit findings to the
                  Legislature, the State
                  Department of Education,
                  the Department of
                  Finance, and the State
                  Board of Equalization on
                  or before November 1,
                  2007, and, if necessary,
                  shall issue a
                  supplemental report or
                  reports as soon
                  thereafter as possible.


0840-001-0025--For support of State
Controller, for payment to Item 0840-001-
0001, payable from the Leaking
Underground Storage Tank Cost Recovery
Fund......................................   1,014,000


0840-001-0061--For support of State
Controller, for payment to Item 0840-001-0001,
payable from the Motor Vehicle Fuel Account,
Transportation Tax Fund........................  3,986,000
     Provisions:
     1.  Provision 15 of Item 0840-001-0001
         also applies to this item.


0840-001-0062--For support of State
Controller, for payment to Item 0840-001-0001,
payable from the Highway Users Tax Account,
Transportation Tax Fund........................  1,133,000
     Provisions:
     1.  Provision 15 of Item 0840-001-0001
         also applies to this item.


0840-001-0330--For support of State
Controller, for payment to Item 0840-001-0001,
payable from the Local Revenue Fund............    570,000
     Provisions:
     1.  Provision 15 of Item 0840-001-0001
         also applies to this item.


0840-001-0890--For support of State
Controller, for payment to Item 0840-001-
0001, payable from the Federal Trust Fund.   1,381,000


0840-001-0903--For support of State
Controller, for payment to Item 0840-001-0001,
payable from the State Penalty Fund............  1,280,000
     Provisions:
     1.  Provision 15 of Item 0840-001-0001
         also applies to this item.


0840-001-0988--For support of State
Controller, for payment to Item 0840-001-0001,
payable from various other unallocated
nongovernmental cost funds (Retail Sales Tax
Fund)..........................................    236,000
     Provisions:
     1.  Provision 15 of Item 0840-001-0001
         also applies to this item.


0840-001-6044--For support of State
Controller, for payment to Item 0840-001-0001,
payable from School Facilities Fund............    935,000
     Provisions:
     1.  Provision 15 of Item 0840-001-0001
         also applies to this item.


0840-011-0494--For support of State
Controller, for payment to Item 0840-001-
0001, payable from other unallocated
special funds...............................    107,000
     Provisions:
     1.  Notwithstanding any other provision
         of law, the Director of Finance may
         authorize expenditures in excess of
         the amount appropriated in this
         item not sooner than 30 days after
         notification in writing of the
         necessity therefor is provided to
         the chairpersons of the fiscal
         committees of each house of the
         Legislature and the Chairperson of
         the Joint Legislative Budget
         Committee, or not sooner than
         whatever lesser time the
         chairperson of the joint committee,
         or his or her designee, may in each
         instance determine.


0840-011-0797--For support of State
Controller, for payment to Item 0840-001-
0001, payable from unallocated bond funds...    410,000
     Provisions:
     1.  Notwithstanding any other provision
         of law, the Director of Finance may
         authorize expenditures in excess of
         the     amount appropriated in this
         item not sooner than 30 days after
         notification in writing of the
         necessity therefor is provided to
         the chairpersons of the fiscal
         committees of each house of the
         Legislature and the Chairperson of
         the Joint Legislative Budget
         Committee, or not sooner than
         whatever lesser time the
         chairperson of the joint committee,
         or his or her designee, may in each
         instance determine.


0840-011-0988--For support of State
Controller, for payment to Item 0840-001-
0001, payable from various other
unallocated nongovernmental cost funds......    100,000
     Provisions:
     1.  Notwithstanding any other provision
         of law, the Director of Finance may
         authorize     expenditures in
         excess of the amount appropriated
         in this item not sooner than 30
         days after notification in writing
         of the necessity therefor is
         provided to the chairpersons of the
         fiscal committees of each house of
         the Legislature and the Chairperson
         of the Joint Legislative Budget
         Committee, or not sooner than
         whatever lesser time the
         chairperson of the joint committee,
         or his or her designee, may in each
         instance determine.


0840-101-0979--For allocation by the
Controller from the California Firefighters'
Memorial Fund.................................   500,000
     Provisions:
     1.  The funds appropriated in this item
         are to be allocated as follows:
         (a) To the Franchise Tax Board and
             Controller for reimbursement of
             costs incurred in connection with
             duties under Article 9
             (commencing with Section 18801)
             of Chapter 3 of Part 10.2 of
             Division 2 of the Revenue and

         Taxation Code.
         (b) To the California Fire Foundation
             the balance in the fund for the
             construction of a memorial as
             authorized in that article.


0840-490--Reappropriation, State Controller.
The balances of the appropriations provided in
the following citations are reappropriated for
the purposes provided in those appropriations
and shall be available for encumbrance or
expenditure until June 30, 2008:
     0001--General Fund
     (1) Item 0840-001-0001, Budget Act of 2006
         (Chs. 47 and 48, Stats. 2006), for the
         purpose of the     Unclaimed Property
         System Replacement project.


0840-495--Reversion, State Controller. As
of June 30, 2007, the balances of the
appropriations provided in the following
citations shall revert to the balance in
the fund from which the appropriations were
made:
     0001--General Fund
     (1) Item 0840-001-0001, Budget
         Act of 2006 (Chs. 47 and
         48, Stats. 2006)...........  308,000
         (2) 300000-Operating
             Expenses and Equipment.  710,000
         (4) Reimbursements......... -402,000


0845-001-0217--For support of Department
of Insurance, payable from the Insurance
Fund...................................... 166,277,000
    Schedule:
    (1)   10-Regulation of
          Insurance Companies
          and Insurance
          Producers...........   68,782,000
    (2)   12-Consumer
          Protection..........   52,064,000
    (3)   20-Fraud Control....   43,488,000
    (4)   30-Tax Collection
          and Audit...........    2,166,000
    (5)   50.01-
          Administration......   28,546,000
    (6)   50.02-Distributed
          Administration......  -28,519,000
    (7)   Reimbursements......     -250,000
    Provisions:
    1.    Of the funds appropriated in
          this item, the Controller shall
          transfer one-half of $4,898,000
          upon passage of the Budget Act
          and the remaining half on
          January 1, 2008, to the
          California Department of Aging
          for support of the Health
          Insurance Counseling and
          Advocacy Program.
    2.    Of the funds appropriated in
          this item, the Controller shall
          transfer one-half of $607,000
          upon passage of the Budget Act
          and the remaining half on
          January 1, 2008, to the State
          and Consumer Services Agency for
          support of the Office of
          Insurance Advisor, to provide
          assistance to the Governor on
          insurance-related matters. The
          unencumbered balance, as
          determined by the State and
          Consumer Services Agency for the
          2007-08 fiscal year, shall
          revert to the Insurance Fund.
    3.    The Department of Insurance
          shall include in the annual
          ""Proposition 103 Recoupment Fee
          Assessment Report'' funds paid
          pursuant to subdivision (b) of
          Section 1861.10 of the Insurance
          Code, pertaining to reasonable
          advocacy and witness fees and
          expenses for persons     who
          initiate or intervene in any
          proceeding permitted or
          established under Article 10
          (commencing with Section
          1861.01) of Chapter 9 of Part 2
          of Division 1 of the Insurance
          Code. The report shall be posted
          on the department's Internet Web
          site and shall include the
          following information: (a) the
          identity of the person making
          the application, (b) the
          specific proceeding in which the
          person participated, and (c) the
          fees and expenses collected by
          the person.


0845-101-0217--For local assistance,
Department of Insurance, payable from the
Insurance Fund................................ 47,539,000
     Schedule:
     (1)   12-Consumer Protection.    1,500,000
     (2)   20-Fraud Control.......   46,039,000


0850-001-0562--For support of the
California State Lottery Commission, for
payment of expenses of the lottery,
including all costs incurred in the
operation and administration of the
lottery, payable from the State Lottery
Fund..................................... (435,225,000)
     Provisions:
     1.    Notwithstanding any other
           provision of law, the
           California State Lottery
           Commission shall submit to the
           Department of Finance, the
           Joint Legislative Budget
           Committee, and the budget
           committees of the Legislature,
           all of the following:
           (a)    In conjunction with
                  submission of the
                  commission's quarterly
                  financial statements, a
                  report comparing
                  estimated
                  administrative costs to
                  budgeted administrative
                  costs for the 2008-09
                  fiscal year. The
                  reports shall be in
                  sufficient detail that
                  they may be used for
                  legislative review
                  purposes and for
                  sustaining a thorough
                  ongoing review of the
                  expenditures of the
                  California State
                  Lottery Commission.
                  These reports shall
                  include a reporting of
                  the lottery sales
                  revenues and shall
                  detail any
                  administrative funding
                  that is used to
                  supplement the prize
                  pool     of any lottery
                  game.
           (b)    No later than January
                  10, 2008, a copy of the
                  proposed administrative
                  budget for the
                  California State
                  Lottery Commission for
                  the 2008-09 fiscal year
                  that is included in the
                  Governor's Budget.
           (c)    No later than June 1,
                  2008, a copy of the
                  proposed administrative
                  budget and expected
                  sales revenue for the
                  California State
                  Lottery Commission for
                  the 2008-09 fiscal year
                  that is submitted to
                  the California State
                  Lottery Commission's
                  Budget Committee. This
                  report shall detail any
                  administrative funding
                  that is proposed to be
                  used to supplement the
                  prize pool of any
                  lottery     game.
           (d)    No later than June 30,
                  2008, the final 2008-09
                  budget and revenue
                  projections approved by
                  the California State
                  Lottery Commission. The
                  report shall include
                  any approved revision,
                  and supporting
                  documentation, to the
                  June 1, 2008, proposed
                  budget. The report
                  shall detail any
                  administrative funding
                  that is proposed to be
                  used to supplement the
                  prize pool of any
                  lottery game.


0855-001-0367--For support of California
Gambling Control Commission, payable from the
Indian Gaming Special Distribution Fund....... 7,129,000
     Schedule:
     (1) 10-California Gambling
         Control Commission.......... 7,129,000


0855-001-0567--For support of California
Gambling Control Commission, payable from the
Gambling Control Fund......................... 2,915,000
     Schedule:
     (1) 10-California Gambling
         Control     Commission...... 2,915,000


0855-101-0366--For local assistance,
California Gambling Control Commission,
payable from the Indian Gaming Revenue
Sharing Trust Fund......................... 96,500,000
      Provisions:
      1.     The funds appropriated in this
             item are for distribution to
             noncompact tribes pursuant to
             Section     12012.90 of the
             Government Code.
      2.     Notwithstanding any other
             provision of law, the Director
             of Finance may authorize
             expenditures for purposes of
             this item in excess of the
             amount appropriated in this
             item. The Director of Finance
             may not approve any
             expenditure unless the
             approval is made in writing
             and filed with the Chairperson
             of the Joint Legislative
             Budget Committee and the
             chairperson of the committee
             in each house that considers
             appropriations not later than
             30 days prior to the effective
             date of approval, or prior to
             whatever lesser time the
             chairperson of the joint
             committee, or his or her
             designee, may determine.
      3.     As part of any request to
             augment this item, the
             California Gambling Control
             Commission shall provide the
             Chairperson of the Joint
             Legislative Budget Committee
             and the chairperson of the
             committee in each house that
             considers appropriations a
             report identifying (a) the
             methodology for determining a
             noncompact tribe, (b) a list
             of the noncompact tribes
             identified based on the
             commission's methodology, (c)
             a trust fund condition report
             including the amount of
             revenue received from each
             compact tribe, and (d) the
             amount of funds to be
             distributed to each noncompact
             tribe. Upon receiving
             additional expenditure
             authority for distributing
             funds under the trust fund,
             the commission shall submit
             that information to the
             chairpersons of the committees
             on a quarterly basis
             concurrent with the
             distribution of the funds to
             the noncompact tribes.


0855-101-0367--For local assistance,
California Gambling Control Commission,
payable from the Indian Gaming Special
Distribution Fund.......................... 30,283,000
      Provisions:
      1.     Funds appropriated in this
             item shall be used to provide
             grants to local government
             agencies     pursuant to
             Section 12715 of the
             Government Code.
      2.     Notwithstanding any other
             provision of law, of the
             amount appropriated in this
             item, $282,500 is for payment
             to Del Norte County pursuant
             to Government Code Section
             12714. This amount represents
             local mitigation grant funding
             not received by Del Norte
             County from the Indian Gaming
             Special Distribution Fund in
             fiscal years 2003-04, 2004-05,
             and 2005-06.


0855-111-0367--For transfer by the
Controller, upon order of the Director of
Finance, from the Indian Gaming Special
Distribution Fund, to the Indian Gaming
Revenue Sharing Trust Fund................ (50,500,000)


0860-001-0001--For support of State Board
of Equalization............................ 218,835,000
    Schedule:
    (1)   100000-Personal
          Services.............  294,890,000
    (2)   300000-Operating
          Expenses and
          Equipment............   96,269,000
    (3)   Reimbursements....... -117,500,000
    (4)   Amount payable from
          the Breast Cancer
          Fund (Item 0860-001-
          0004)................     -523,000
    (5)   Amount payable from
          the State Emergency
          Telephone Number
          Account (Item 0860-
          001-0022)............     -607,000
    (6)   Amount payable from
          the Motor Vehicle
          Fuel Account,
          Transportation Tax
          Fund (Item 0860-001-
          0061)................  -20,891,000
    (7)   Amount payable from
          the Occupational
          Lead Poisoning
          Prevention Account
          (Item 0860-001-0070).     -668,000
    (8)   Amount payable from
          the Childhood Lead
          Poisoning Prevention
          Fund (Item 0860-001-
          0080)................     -488,000
    (9)   Amount payable from
          the Cigarette and
          Tobacco Products
          Surtax Fund (Item
          0860-001-0230).......   -6,556,000
    (10)  Amount payable from
          the Oil Spill
          Prevention and
          Administration Fund
          (Item 0860-001-0320).     -247,000
    (11)  Amount payable from
          the Integrated Waste
          Management Account,
          Integrated Waste
          Management Fund
          (Item 0860-001-0387).     -426,000
    (12)  Amount payable from
          the Underground
          Storage Tank Cleanup
          Fund (Item 0860-001-
          0439)................   -2,909,000
    (13)  Amount payable from
          the     Energy
          Resources Programs
          Account (Item 0860-
          001-0465)............     -243,000
    (14)  Amount payable from
          the California
          Children and
          Families First Trust
          Fund (Item 0860-001-
          0623)................  -10,918,000
    (15)  Amount payable from
          the Federal Trust
          Fund (Item 0860-001-
          0890)................   -1,594,000
    (16)  Amount payable from
          the Timber Tax Fund
          (Item 0860-001-0965).   -2,243,000
    (17)  Amount payable from
          the Gas Consumption
          Surcharge Fund (Item
          0860-001-3015).......     -417,000
    (18)  Amount payable from
          the Water Rights
          Fund (Item 0860-001-
          3058)................     -420,000
    (19)  Amount payable from
          the Electronic Waste
          Recovery and
          Recycling Account
          (Item 0860-001-3065).   -4,494,000
    (20)  Amount payable from
          the Cigarette and
          Tobacco Products
          Compliance     Fund
          (Item 0860-001-3067).   -1,180,000
    Provisions:
    1.    It is the intent of the
          Legislature that all funds
          appropriated to the State Board
          of Equalization for processing
          tax returns, auditing, and
          collecting owed tax amounts,
          shall be used in a manner
          consistent with both its
          authorized budget and with the
          documents that were presented to
          the Legislature for its review in
          support of that budget. The State
          Board of Equalization shall not
          reduce expenditures or redirect
          either funding or personnel
          resources away from direct
          auditing or collection activities
          without prior     approval of the
          Director of Finance. The director
          shall not approve any such
          reduction or redirection sooner
          than 30 days after providing
          notification to the Joint
          Legislative Budget Committee. No
          such position may be transferred
          from the organizational unit to
          which it was assigned in the 2007-
          08 Governor's Budget and the
          Salaries and Wages Supplement as
          revised by legislative actions
          without the approval of the
          Department of Finance.
          Furthermore, the board shall
          expeditiously fill budgeted
          positions consistent with the
          funding provided in this act.
    2.    It is the intent of the
          Legislature that the funds
          appropriated for the State Board
          of Equalization Electronic Filing
          Infrastructure Project be used to
          improve the state's efficiencies
          in tax administration. The State
          Board of Equalization shall
          report to the Department of
          Finance and the appropriate
          fiscal     committees of the
          Legislature on March 1, 2008, and
          March 1, 2009, on the status of
          Electronic Filing at the State
          Board of Equalization, including
          the following:
          (a)     The current level of
                  Electronic Filing
                  participation.
          (b)     Any revised estimates of
                  future Electronic Filing
                  participation, including
                  progress in reaching 10-
                  percent participation in
                  the 2008-09 fiscal year
                  and 20-percent in the
                  2009-10 fiscal year.
          (c)     The board's estimate of
                  current     and future
                  annual savings associated
                  with increased use of
                  Electronic Services at
                  the State Board of
                  Equalization.
          (d)     Any identified
                  implementation problems
                  or barriers to additional
                  participation.
    3.    Of the amount appropriated in
          this item, $400,000 shall be for
          the Board of Equalization to (a)
          contract with up to three
          selected county assessors offices
          on a pilot basis to include with
          their Business Property
          Statements an additional message
          from the board explaining the
          obligation to pay use tax on
          nonexempt purchases if sales tax
          was not paid and to provide, in
          electronic form, data to the
          board from the Business Property
          Statements on recent equipment
          purchases by businesses, and (b)
          for the board to conduct
          discovery audits for the primary
          purpose of determining whether
          the problem of nonpayment of use
          tax by businesses is significant
          and to determine, if feasible,
          areas with the greatest
          noncompliance (for example, by
          type of business, size, or
          geographic area). The board may
          seek the assistance of the
          selected county assessors in
          selecting and identifying
          businesses for potential
          discovery audits.


0860-001-0004--For support of State Board
of Equalization, for payment to Item 0860-
001-0001, payable from the Breast Cancer
Fund........................................    523,000
     Provisions:
     1.  Notwithstanding Section 30461.6 of
         the Revenue and Taxation Code, or
         any other provision of law,
         sufficient funds to cover the costs
         of the State Board of Equalization
         for the collection and enforcement
         of fees to be deposited in the
         Breast Cancer Fund shall be
         retained in the fund, and be
         available to be appropriated to the
         board.


0860-001-0022--For support of State Board
of Equalization, for payment to Item 0860-
001-0001, payable from the State
Emergency Telephone Number Account........     607,000


0860-001-0061--For support of State Board
of Equalization, for payment to Item 0860-
001-0001, payable from the Motor Vehicle
Fuel Account, Transportation Tax Fund.....  20,891,000


0860-001-0070--For support of State Board
of Equalization, for payment to Item 0860-
001-0001, payable from the Occupational
Lead Poisoning Prevention Account...........    668,000
     Provisions:
     1.  The amount appropriated in this
         item includes revenues derived from
         the     assessment of fines and
         penalties imposed as specified by
         Section 13332.18 of the Government
         Code.


0860-001-0080--For support of State Board
of Equalization, for payment to Item 0860-
001-0001, payable from the Childhood Lead
Poisoning Prevention Fund...................    488,000
     Provisions:
     1.  The amount appropriated in this
         item includes revenues derived from
         the assessment     of fines and
         penalties imposed as specified by
         Section 13332.18 of the Government
         Code.


0860-001-0230--For support of State Board
of Equalization, for payment to Item 0860-
001-0001, payable from the Cigarette and
Tobacco Products Surtax Fund..............   6,556,000


0860-001-0320--For support of State Board
of Equalization, for payment to Item 0860-
001-0001, payable from the Oil Spill
Prevention and Administration Fund........     247,000


0860-001-0387--For support of State Board
of Equalization, for payment to Item 0860-
001-0001, payable from the Integrated Waste
Management Account, Integrated Waste
Management Fund.............................    426,000
     Provisions:
     1.  The amount appropriated in this
         item includes revenues     derived
         from the assessment of fines and
         penalties imposed as specified by
         Section 13332.18 of the Government
         Code.


0860-001-0439--For support of State Board
of Equalization, for payment to Item 0860-
001-0001, payable from the Underground
Storage Tank Cleanup Fund...................  2,909,000
     Provisions:
     1.  The amount appropriated in this
         item includes revenues derived from
         the assessment     of fines and
         penalties imposed as specified in
         Section 13332.18 of the Government
         Code.


0860-001-0465--For support of State Board
of Equalization, for payment to Item 0860-
001-0001, payable from the Energy
Resources Programs Account................     243,000


0860-001-0623--For support of State Board
of Equalization, for payment to Item 0860-
001-0001, payable from the California
Children and Families Trust Fund..........  10,918,000


0860-001-0890--For support of the State
Board of Equalization, for payment to
Item 0860-001-0001, payable from the
Federal Trust Fund........................   1,594,000


0860-001-0965--For support of State Board
of Equalization, for payment to Item 0860-
001-0001, payable from the Timber Tax
Fund......................................   2,243,000


0860-001-3015--For support of State Board
of Equalization, for payment to Item 0860-
001-0001, payable from the Gas
Consumption Surcharge Fund................     417,000


0860-001-3058--For support of State Board
of Equalization, for payment to Item 0860-
001-0001, payable from the Water Rights
Fund......................................     420,000


0860-001-3065--For support of State Board
of Equalization, for payment to Item 0860-
001-0001, payable from the Electronic
Waste Recovery and Recycling Account......   4,494,000


0860-001-3067--For support of State Board
of Equalization, for payment to Item 0860-
001-0001, payable from the Cigarette and
Tobacco Products Compliance Fund..........   1,180,000


0890-001-0001--For support of Secretary of
State....................................... 48,157,500
    Schedule:
    (1)   10-Filings and
          Registrations.........   44,652,000
    (2)   20-Elections..........   46,933,500
    (3)   30-Archives...........   12,757,000
    (4)   50.01-Administration
          and Technology........   21,468,000
    (5)   50.02-Distributed
          Administration and
          Technology............  -21,468,000
    (6)   Reimbursements........   -7,339,000
    (7)   Amount payable from
          the Secretary of
          State's Business Fees
          Fund (Item 0890-001-
          0228).................  -36,854,000
    (8)   Amount payable from
          the Federal Trust
          Fund (Item 0890-001-
          0890).................  -10,365,000
    (9)   Amount payable from
          the Victims of
          Corporate Fraud
          Compensation Fund
          (Item 0890-001-3042)..   -1,627,000
    Provisions:
    1.    The Secretary of State may not
          expend any special handling fees
          authorized by Chapter 999 of the
          Statutes of 1999 which are
          collected in excess of the cost of
          administering those special
          handling fees unless specifically
          authorized by the Legislature.
    2.    Of the     amounts appropriated in
          this item, $10,673,000 shall be
          used for operational costs
          associated with implementation of
          the Help America Vote Act of 2002
          (42 U.S.C. Sec. 15301 et seq.).


0890-001-0228--For support of Secretary
of State, for payment to Item 0890-001-
0001, payable from the Secretary of
State's Business Fees Fund................  36,854,000


0890-001-0890--For support of Secretary of
State, for payment to Item 0890-001-0001,
payable from the Federal Trust Fund.......... 10,365,000
     Provisions:
     1.    Funds shall be expended for the
           purposes approved in the September
           13, 2006, Help America Vote Act
           spending     plan. The amounts
           spent on each activity shall not
           exceed the maximum specified in
           the spending plan.
     2.    Notwithstanding any other
           provision of law, any funds not
           needed for an activity authorized
           in the September 13, 2006, Help
           America Vote Act spending plan
           shall not be redirected to other
           activities and are not authorized
           for expenditure.
     3.    The Secretary of State shall
           forward to the Chairperson of the
           Joint Legislative Budget Committee
           copies of quarterly reports sent
           to the Department of Finance. The
           quarterly reports shall provide,
           at a minimum, the level of
           expenditures by scheduled activity.
     4.    The Secretary of State shall
           forward to the Department of
           Finance, the budget,
           appropriations, and policy
           committees in each house of the
           Legislature that oversee
           elections, and the Legislative
           Analyst, each year prior to
           January 15, until the Statewide
           Voter Database is fully
           implemented, a report on the
           status of all of the following:

                    (a)    Election system security
                  measures, including all of
                  the following:
                  (1)     Source Code Review.
                  (2)     Parallel Monitoring.
                  (3)     Poll Monitoring,
                          including a review
                          of who conducted
                          the monitoring and
                          where they were
                          located.
           (b)    Expected General Fund
                  exposure for completion of
                  Help America Vote Act
                  compliance, including
                  expected costs of
                  administration.
           (c)    Completion of the CalVoter
                  database, including
                  information on the costs
                  associated with the use of
                  contractors and
                  consultants, the names of
                  the contractors and
                  consultants used, and the
                  purposes for which
                  contractors and consultants
                  were used.
     5.    The Department of Finance may
           authorize an increase in the
           appropriation of this item, up to
           the total amount of the program
           reserve. Any such approval shall
           be accompanied by the approval of
           an amended spending plan submitted
           by the Secretary of State
           providing detailed justification
           for the increased expenses. An
           approval of an augmentation or of
           spending plan amendments shall not
           be effective sooner than 30 days
           following the transmittal of the
           approval to the Chairperson of
           the Joint Legislative Budget
           Committee, or not sooner than
           whatever lesser time the
           chairperson of the joint
           committee, or his or her designee,
           may determine.
     6.    Notwithstanding any other
           provision of law, any primary
           vendor contract for the
           development of a new statewide
           voter registration database shall
           be subject to the notification and
           other requirements under Section
           11.00. The validity of any such
           contract shall be contingent upon
           the appropriation of funds in
           future budget acts.


0890-001-3042--For support of Secretary
of State, for payment to Item 0890-001-
0001, payable from the Victims of
Corporate Fraud Compensation Fund.........   1,627,000


0950-001-0001--For support of State
Treasurer................................... 6,771,000
    Schedule:
    (1)   100000-Personal
          Services..............   19,262,000
    (2)   300000-Operating
          Expenses and
          Equipment.............    5,821,000
    (3)   Reimbursements........  -18,312,000
    Provisions:
    1.    The Director of Finance may
          authorize a loan from the General
          Fund, in an amount not to exceed
          the level of reimbursements
          appropriated in Schedule (3) to
          the State Treasurer's office,
          provided that:
          (a)     The loan is to meet cash
                  needs resulting from a
                  delay in receipt of
                  reimbursements.
          (b)     The loan is short term,
                  and shall be repaid within
                  two months.
          (c)     Interest charges may be
                  waived pursuant to
                  subdivision (e) of Section
                  16314 of the Government
                  Code.
          (d)     The Director of Finance
                  shall not approve the loan
                  unless the approval is
                  made in writing and filed
                  with the Chairperson of
                  the Joint Legislative
                  Budget Committee and the
                  chairpersons of the
                  committees in each house
                  of the Legislature that
                  consider appropriations
                  not later than 30 days
                  prior to the effective
                  date of the approval, or
                  not sooner than whatever
                  lesser time the
                  chairperson of the joint
                  committee or his or her
                  designee may determine.
          (e)     At the end of the two-
                  month term of the loan,
                  the State Treasurer's
                  office shall notify the
                  Chairperson of the Joint
                  Legislative Budget
                  Committee whether the
                  State Treasurer's office
                  has repaid the loan
                  pursuant to subdivision
                  (b).


0954-001-0001--For support of the
Scholarshare Investment Board ............... 1,048,000
     Schedule:
     (1) 20-Governor's Scholarship
         Programs .................. 1,048,000
     Provisions:
     1.  Funds appropriated in this item are
         for the purpose of administering, in
         accordance with Article 20.5
         (commencing with Section 69999.6) of
         Chapter 2 of Part 42 of the
         Education Code, the Governor's
         Scholars Program and the Governor's
         Math and Science Scholars Program,
         established pursuant to former
         Article 20 (commencing with Section
         69995) of Chapter 2 of Part 42 of
         the Education Code.


0954-001-0564--For support of the
Scholarshare Investment Board, payable from
the Scholarshare Administrative Fund......... 1,331,000
     Schedule:
     (1) 10-Golden State
         Scholarshare Trust
         Program.................... 1,331,000
     Provisions:
     1.  Notwithstanding any other provision
         of law, the Director of Finance may
         authorize expenditures for the
         Scholarshare Investment Board in
         excess of the amount appropriated
         not sooner than 30 days after
         notification in writing is provided
         to the chairpersons of the fiscal
         committees and the Chairperson of
         the Joint Legislative Budget
         Committee, or not sooner than
         whatever lesser time the chairperson
         of the committee, or his or her
         designee, may in each instance
         determine.


0956-001-0171--For support of California
Debt and Investment Advisory Commission,
payable from the California Debt and
Investment Advisory Commission Fund.......... 2,176,000
     Schedule:
     (1) 10-California Debt and
         Investment Advisory
         Commission................. 2,276,000
     (2) Reimbursements.............  -100,000
     Provisions:
     1.  Notwithstanding any other provision
         of law, the Director of Finance may
         authorize expenditures for the
         California Debt and Investment
         Advisory Commission in excess of the
         amount appropriated not sooner than
         30 days after notification in
         writing of the necessity therefor is
         provided to the chairpersons of the
         fiscal committees and the
         Chairperson of the Joint Legislative
         Budget Committee, or not sooner than
         whatever lesser time the chairperson
         of the committee, or his or her
         designee, may in each instance
         determine.


0959-001-0169--For support of California
Debt Limit Allocation Committee, payable
from the California Debt Limit Allocation
Committee Fund............................... 1,200,000
     Schedule:
     (1) 10-Debt     Limit
         Allocation Committee....... 1,200,000
     Provisions:
     1.  Notwithstanding any other provision
         of law, the Director of Finance may
         authorize expenditures for the
         California Debt Limit Allocation
         Committee in excess of the amount
         appropriated not sooner than 30 days
         after notification in writing of the
         necessity therefor is provided to
         the chairpersons of the fiscal
         committees and the Chairperson of
         the Joint Legislative Budget
         Committee, or not sooner than
         whatever lesser time the chairperson
         of the committee, or his or her
         designee, may in each instance
         determine.


0965-001-0215--For support of California
Industrial Development Financing Advisory
Commission, payable from the Industrial
Development Fund.............................    260,000
     Schedule:
     (1) 10-Industrial Development
         Financing Advisory
         Commission.................   335,000
     (2) Reimbursements.............   -75,000
     Provisions:
     1.  Notwithstanding any other provision
         of law, the Director of Finance may
         authorize expenditures for the
         California Industrial Development
         Financing Advisory Commission in
         excess of the amount appropriated
         not sooner than 30 days after
         notification in writing of the
         necessity therefor is provided to
         the chairpersons of the fiscal
         committees and the Chairperson of
         the Joint Legislative Budget
         Committee, or not sooner than
         whatever lesser time the chairperson
         of the committee, or his or her
         designee, may in each instance
         determine.


0968-001-0448--For support of California Tax
Credit Allocation Committee, payable from
the Occupancy Compliance Monitoring Account,
Tax Credit Allocation Fee Account............ 2,064,000
     Schedule:
     (1) 10-California Tax Credit
         Allocation Committee....... 2,094,000
     (2) Reimbursements.............   -30,000
     Provisions:
     1.  Notwithstanding any other provision
         of law, the Director of Finance may
         authorize expenditures for the
         California Tax     Credit Allocation
         Committee in excess of the amount
         appropriated not sooner than 30 days
         after notification in writing of the
         necessity therefor is provided to
         the chairpersons of the fiscal
         committees of each house of the
         Legislature and the Chairperson of
         the Joint Legislative Budget
         Committee, or not sooner than
         whatever lesser time the chairperson
         of the joint committee, or his or
         her designee, may in each instance
         determine.


0968-001-0457--For support of California Tax
Credit Allocation Committee, payable from
the Tax Credit Allocation Fee Account........ 1,774,000
     Schedule:
     (1) 10-California Tax Credit
         Allocation Committee....... 1,804,000
     (2) Reimbursements.............   -30,000
     Provisions:
     1.  Notwithstanding any other provision
         of law, the Director of Finance may
         authorize expenditures for the
         California Tax Credit Allocation
         Committee in excess of the
         amount appropriated not sooner than
         30 days after notification in
         writing of the necessity therefor is
         provided to the chairpersons of the
         fiscal committees and the
         Chairperson of the Joint Legislative
         Budget Committee, or not sooner than
         whatever lesser time the chairperson
         of the committee, or his or her
         designee, may in each instance
         determine.


0968-001-3038--For support of California Tax
Credit Allocation Committee, payable from
the Community Revitalization Fee Fund........     82,000
     Schedule:
     (1) 20-Community
         Revitalization     Program.    82,000
     Provisions:
     1.  Notwithstanding any other provision
         of law, the Director of Finance may
         authorize expenditures for the
         California Tax Credit Allocation
         Committee in excess of the amount
         appropriated not sooner than 30 days
         after notification in writing of the
         necessity therefor is provided to
         the chairpersons of the fiscal
         committees and the Chairperson of
         the Joint Legislative Budget
         Committee, or not sooner than
         whatever lesser time the chairperson
         of the committee, or his or her
         designee, may in each instance
         determine.


0971-001-0528--For support of California
Alternative Energy and Advanced
Transportation Financing Authority, payable
from the California Alternative Energy
Authority Fund...............................    202,000
     Schedule:
     (1) 10-California Alternative
         Energy and Advanced
         Transportation Financing
         Authority..................   202,000
     Provisions:
     1.  Notwithstanding any other provision
         of law, the Director of Finance may
         authorize expenditures for the
         California Alternative Energy and
         Advanced Transportation Financing
         Authority in excess of the amount
         appropriated not sooner than 30 days
         after notification in writing of the
         necessity therefor is provided to
         the chairpersons of the fiscal
         committees and the Chairperson of
         the Joint Legislative Budget
         Committee, or not sooner than
         whatever     lesser time the
         chairperson of the joint committee,
         or his or her designee, may in each
         instance determine.


0977-001-6046--For the support of California
Health Facilities Financing Authority,
payable from the Children's Hospital Fund.....    369,000
     Schedule:
     (1) 30-Children's Hospital
         Program.....................   369,000


0985-001-0890--For support of California
School Finance Authority, payable from the
Federal Trust Fund............................    125,000
     Schedule:
     (1) 20-Charter School
         Facilities Program..........   125,000


0985-001-9734--For support of California
School Finance Authority, payable from the
Charter School Facilities Account, 2004 State
School Facilities Fund........................    566,000
     Schedule:
     (1) 20-Charter School
         Facilities Program..........   566,000


0985-001-9735--For support of California
School Finance Authority, payable from the
Charter School Facilities Account, 2006 State
School Facilities Fund........................    429,000
     Schedule:
     (1) 20-Charter School
         Facilities Program..........   429,000


0985-101-0890--For local assistance,
California School Finance Authority, State
Charter School Facilities Incentive Grant
Program, payable from the Federal Trust
Fund........................................  9,725,000
     Provisions:
     1.  No charter school receiving funds
         under the program authorized
         under this provision shall receive
         funding in excess of 75 percent of
         annual lease costs through this
         program or in combination with any
         other source of funding provided in
         this or any other act.

       STATE AND CONSUMER SERVICES


1100-001-0001--For support of California
Science Center............................ 14,808,000
    Schedule:
    (1)    10-Education........  13,567,000
    (2)    20-Exposition Park
           Management..........   4,351,000
    (3)    30-California
           African-American
           Museum..............   2,541,000
    (4)    40.01-
           Administration......   1,176,000
    (5)    40.02-Distributed
           Administration......  -1,176,000
    (6)    Reimbursements-
           Education...........  -1,213,000
    (7)    Reimbursements-
           Exposition Park
           Management..........    -350,000
    (8)    Reimbursements-
           California African-
           American Museum.....     -75,000
    (10)   Amount payable from
           the Exposition Park
           Improvement Fund
           (Item     1100-001-
           0267)...............  -4,013,000
    Provisions:
    2.     The operation of the California
           Science Center may require
           individual skills not generally
           available in state civil
           service to support specialized
           functions, such as exhibit
           maintenance, and educational
           and guest services programs,
           including animal care and
           horticulture. Notwithstanding
           any other provision of law, the
           California Science Center may
           enter into a personnel service
           contract or contracts with the
           California Science Center
           Foundation without a
           competitive bidding process.
           Any such contract shall be
           subject to approval by the
           State and Consumer Services
           Agency and the Department of
           General Services and be subject
           to all state audit
           requirements.


1100-001-0267--For support of California
Science Center, for payment to Item 1100-
001-0001, payable from the Exposition Park
Improvement Fund............................  4,013,000
     Provisions:
     1.  The amount appropriated in this
         item may include revenues derived
         from the assessment of     fines
         and penalties imposed as specified
         in Government Code Section 13332.18.


1100-003-0001--For support of California
Science Center, for rental payments on lease-
revenue bonds................................ 2,707,000
     Schedule:
     (1) Base Rental and Fees....... 2,700,000
     (2) Insurance..................    19,000
     (3) Reimbursements.............   -12,000
     Provisions:
     1.  The Controller shall transfer funds
         appropriated in this item according
         to a schedule to be provided by the
         State Public Works Board. The
         schedule shall be provided on a
         monthly basis or as otherwise might
         be needed to ensure debt
         requirements are met.
     2.  This item may contain adjustments
         pursuant to Section 4.30 that are
         not currently reflected. Any
         adjustments to this item shall be
         reported to the Joint Legislative
         Budget Committee pursuant to Section
         4.30.


1100-301-0001--For capital outlay, California
Science Center................................ 2,325,000
     Schedule:
     (1)   90.05-California
           African American
           Museum: Renovation and
           Expansion Project-
           -Preliminary     plans.    3,487,000
     (2)   Reimbursements.........   -1,162,000


1110-001-0024--For support of State Board
of Guide Dogs for the Blind, Program 54,
payable from the State Board of Guide Dogs
for the Blind Fund..........................    162,000
     Provisions:
     1.  The amount appropriated in this
         item may include revenues derived
         from the assessment of     fines
         and penalties imposed as specified
         in Section 13332.18 of the
         Government Code.


1110-001-0069--For support of the State Board
of Barbering and Cosmetology, payable from
the Barbering and Cosmetology Contingent Fund. 17,290,000
     Schedule:
     (1)   22-Board of
           Barbering and
           Cosmetology............   17,347,000
     (2)   Reimbursements.........      -57,000
     Provisions:
     1.    The amount appropriated in this
           item may include revenues derived
           from the assessment of fines and
           penalties imposed as specified in
           Section 13332.18 of the
           Government Code.


1110-001-0093--For support of Contractors'
State License Board, for payment to Item
1110-001-0735, payable from the
Construction Management Education Account...     15,000
     Provisions:
     1.  The amount appropriated in this
         item may include revenues derived
         from the     assessment of fines
         and penalties imposed as specified
         in Section 13332.18 of the
         Government Code.


1110-001-0108--For support of Acupuncture
Board, payable from the Acupuncture Fund..... 2,621,000
     Schedule:
     (1) 56-Acupuncture Board....... 2,644,000
     (2) Reimbursements.............   -23,000
     Provisions:
     1.  The amount appropriated in this item
         may include revenues derived from
         the assessment of fines and
         penalties imposed as specified in
         Section 13332.18 of the Government
         Code.


1110-001-0175--For support of Medical Board
of California, Registered Dispensing
Opticians, for payment to Item 1110-001-
0758, payable from the Dispensing Opticians
Fund........................................    281,000
     Provisions:
     1.  The amount appropriated in this
         item may include revenues derived
         from the assessment of fines and
         penalties imposed as specified in
         Section 13332.18 of the Government
         Code.


1110-001-0205--For support of Board for
Geologists and Geophysicists, Program 51,
payable from the Geology and Geophysics
Fund........................................  1,273,000
     Provisions:
     1.  The amount appropriated in this
         item may include revenues derived
         from the assessment of fines and
         penalties imposed as specified in
         Section 13332.18 of the Government
         Code.


1110-001-0210--For support of Medical Board
of California, Outpatient Setting, for
payment to Item 1110-001-0758, payable from
the Outpatient Setting Fund of the Medical
Board of California.........................     25,000
     Provisions:
     1.  The amount appropriated in this
         item may     include revenues
         derived from the assessment of
         fines and penalties imposed as
         specified in Section 13332.18 of
         the Government Code.


1110-001-0264--For support of Osteopathic
Medical Board of California, payable from
the Osteopathic Medical Board of California
Contingent Fund.............................. 1,214,000
     Schedule:
     (1) 70-Osteopathic Medical
         Board of California........ 1,264,000
     (2) Reimbursements.............   -50,000
     Provisions:
     1.  The amount appropriated in this item
         may include revenues derived from
         the assessment of fines and
         penalties imposed as     specified
         in Section 13332.18 of the
         Government Code.


1110-001-0280--For support of Physician
Assistant Committee, payable from the
Physician Assistant Fund..................... 1,144,000
     Schedule:
     (1) 59-Physician Assistant
         Committee.................. 1,169,000
     (2) Reimbursements.............   -25,000
     Provisions:
     1.  The amount appropriated in this item
         may include revenues derived from
         the assessment of fines and
         penalties imposed as specified in
         Section 13332.18 of the Government
         Code.


1110-001-0295--For support of California
Board of Podiatric Medicine, payable from
the Board of Podiatric Medicine Fund......... 1,335,000
     Schedule:
     (1) 61-California Board of
         Podiatric Medicine......... 1,339,000
     (2) Reimbursements.............    -4,000
     Provisions:
     1.  The amount appropriated in this item
         may include revenues derived from
         the assessment of fines and
         penalties imposed as specified in
         Section 13332.18 of the Government
         Code.


1110-001-0310--For support of Board of
Psychology, payable from the Psychology Fund. 3,344,000
     Schedule:
     (1) 62-Board of Psychology..... 3,395,000
     (2) Reimbursements.............   -51,000
     Provisions:
     1.  The amount appropriated in this item
         may include revenues derived from
         the assessment of fines and
         penalties imposed as specified in
         Section 13332.18 of the Government
         Code.


1110-001-0319--For support of Respiratory
Care Board of California, payable from the
Respiratory Care Fund........................ 2,792,000
     Schedule:
     (1) 64-Respiratory Care Board
         of     California.......... 2,858,000
     (2) Reimbursements.............   -66,000
     Provisions:
     1.  The amount appropriated in this item
         may include revenues derived from
         the assessment of fines and
         penalties imposed as specified in
         Section 13332.18 of the Government
         Code.


1110-001-0326--For support of State Athletic
Commission, payable from the State Athletic
Commission Fund.............................. 1,921,000
     Schedule:
     (1) 9-State Athletic
         Commission................. 2,133,000
     (2) Amount payable from the
         Boxers' Pension Fund (Item
         1110-002-9250).............   -98,000
     (3) Amount payable from the
         Boxer's Neurological
         Examination Account (Item
         1110-001-0492).............  -114,000
     Provisions:
     1.  The amount appropriated in this item
         may include revenues derived from
         the assessment of fines and
         penalties imposed as specified in
         Section 13332.18 of the Government
         Code.


1110-001-0376--For support of the Speech-
Language Pathology and Audiology Board,
payable from the Speech-Language Pathology
and Audiology Board Fund.....................    885,000
     Schedule:
     (1) 65-Speech-Language
         Pathology and Audiology
         Board......................   909,000
     (2) Reimbursements.............   -24,000
     Provisions:
     1.  The amount appropriated in this item
         may include revenues derived from
         the assessment of fines and
         penalties imposed as     specified
         in Section 13332.18 of the
         Government Code.


1110-001-0380--For support of the Committee
on Dental Auxiliaries, Board of Dentistry,
payable from the State Dental Auxiliary Fund. 2,275,000
     Schedule:
     (1) 36.20-Committee on
         Dental Auxiliaries......... 2,297,000
     (2) Reimbursements.............   -22,000
     Provisions:
     1.  The amount appropriated in this item
         may include revenues derived from
         the assessment of fines and
         penalties imposed as specified in
         Section 13332.18 of the Government
         Code.


1110-001-0399--For support of Structural
Pest Control Board, for payment to Item
1110-001-0775, payable from the Structural
Pest Control Education and Enforcement Fund.    365,000
     Provisions:
     1.  The amount appropriated in this
         item may include revenues derived
         from the assessment of fines and

        penalties imposed as specified in
         Section 13332.18 of the Government
         Code.


1110-001-0492--For support of State
Athletic Commission, for payment to Item
1110-001-0326, payable from the Boxer's
Neurological Examination Account............    114,000
     Provisions:
     1.  The amount appropriated in this
         item may include revenues derived
         from the assessment     of fines
         and penalties imposed as specified
         in Section 13332.18 of the
         Government Code.


1110-001-0704--For support of California
Board of Accountancy, payable from the
Accountancy Fund, Professions and Vocations
Fund.......................................... 11,906,000
     Schedule:
     (1)   3-California Board
           of Accountancy.........   12,202,000
     (2)   Reimbursements.........     -296,000
     Provisions:
     1.    The amount appropriated in this
           item may include revenues derived
           from the assessment of fines and
           penalties imposed as specified in
           Section 13332.18 of the Government
           Code.


1110-001-0706--For support of California
Architects Board, payable from the
California Architects Board Fund............. 3,076,000
     Schedule:
     (1) 06.02.020-Distributed
         Cost-Architects/Landscape
         Architects.................   -49,000
     (2) 06.10.010-California
         Architects Board........... 3,130,000
     (3) Reimbursements.............    -5,000
     Provisions:
     1.  The amount appropriated in this item
         may include revenues derived from
         the assessment of fines and
         penalties imposed as specified in
         Section 13332.18 of the Government
         Code.


1110-001-0735--For support of Contractors'
State License Board, payable from the
Contractors' License Fund..................... 56,195,000
     Schedule:
     (1)   30-Contractors' State
           License Board..........   56,563,000
     (2)   Reimbursements.........     -353,000
     (3)   Amount payable from
           the Construction
           Management Education
           Account (Item 1110-001-
           0093)..................      -15,000
     Provisions:
     1.    The amount appropriated in this
           item may include revenues derived
           from the assessment of fines and
           penalties imposed as specified in
           Section 13332.18 of the Government
           Code.
     2.    The Secretary of State and Consumer
           Services shall report to the
           Director of Finance and the Joint
           Legislative Budget Committee on the
           progress of the Underground Economy
           Enforcement and shall provide
           justification for its continuance
           by September 13, 2007.


1110-001-0741--For support of Dental Board
of California, Board of Dentistry, payable
from the State Dentistry Fund................ 9,815,000
     Schedule:
     (1) 36.10-Dental Board of
         California................. 9,985,000
     (2) Reimbursements.............  -170,000
     Provisions:
     1.  The amount appropriated in this item
         may include revenues derived from
         the assessment of fines and
         penalties imposed as specified in
         Section 13332.18 of the Government
         Code.


1110-001-0757--For support of California
Architects Board, Landscape Architect
Technical Committee, Program 06.20, payable
from California Architects Board-Landscape
Architects Fund.............................  1,087,000
     Provisions:
     1.  The amount appropriated in this
         item may include     revenues
         derived from the assessment of
         fines and penalties imposed as
         specified in Section 13332.18 of
         the Government Code.


1110-001-0758--For support of Medical Board
of California, payable from the Contingent
Fund of the Medical Board of California....... 50,714,000
     Schedule:
     (1)   55.10.010-Medical
           Board     of
           California.............   51,789,000
     (2)   55.15-Registered
           Dispensing Opticians...      281,000
     (3)   55.17-Outpatient
           Setting................       25,000
     (4)   55.02.020-Distributed
           Medical Board of
           California.............     -691,000
     (5)   Reimbursements.........     -384,000
     (6)   Amount payable from
           the Dispensing
           Opticians Fund (Item
           1110-001-0175).........     -281,000
     (7)   Amount payable from
           the Outpatient Setting
           Fund of the Medical
           Board of California
           (Item 1110-001-0210)...      -25,000
     Provisions:
     1.    The amount appropriated in this
           item may include revenues derived
           from the assessment of fines and
           penalties imposed as specified in
           Section 13332.18 of the
           Government Code.


1110-001-0759--For support of Physical
Therapy Board of California, payable from
the Physical Therapy Fund.................... 2,318,000
     Schedule:
     (1) 58-Physical Therapy Board
         of California.............. 2,417,000
     (2) Reimbursements.............   -99,000
     Provisions:
     1.  The amount appropriated in this item
         may include revenues derived from
         the assessment of fines and
         penalties imposed as specified in
         Section 13332.18 of the Government
         Code.


1110-001-0761--For support of Board of
Registered Nursing, payable from the Board of
Registered Nursing Fund, Professions and
Vocations Fund................................ 22,634,000
     Schedule:
     (1)   78-Board     of
           Registered Nursing.....   23,648,000
     (2)   Reimbursements.........   -1,014,000
     Provisions:
     1.    The amount appropriated in this
           item may include revenues derived
           from the assessment of fines and
           penalties imposed as specified in
           Section 13332.18 of the
           Government Code.


1110-001-0763--For support of State Board of
Optometry, payable from the Optometry Fund,
Professions and Vocations Fund............... 1,180,000
     Schedule:
     (1) 69-State Board of
         Optometry.................. 1,186,000
     (2) Reimbursements.............    -6,000
     Provisions:
     1.  The amount appropriated in this item
         may include revenues derived from
         the assessment of fines and
         penalties imposed as specified in
         Section 13332.18 of the Government
         Code.


1110-001-0767--For support of California
State Board of Pharmacy, payable from the
Pharmacy Board Contingent Fund, Professions
and Vocations Fund........................... 9,315,000
     Schedule:
     (1) 72-California State Board
         of Pharmacy................ 9,566,000
     (2) Reimbursements.............  -251,000
     Provisions:
     1.  The amount appropriated in this item
         may include revenues derived from
         the assessment of fines and
         penalties imposed as     specified
         in Section 13332.18 of the
         Government Code.


1110-001-0770--For support of Board for
Professional Engineers and Land Surveyors,
payable from the Professional Engineer's and
Land Surveyor's Fund......................... 9,009,000
     Schedule:
     (1) 75-Board for Professional
         Engineers and Land
         Surveyors.................. 9,025,000
     (2) Reimbursements.............   -16,000
     Provisions:
     1.  The amount appropriated in this item
         may include revenues derived from
         the assessment of fines and
         penalties     imposed as specified
         in Section 13332.18 of the
         Government Code.


1110-001-0771--For support of Court Reporters
Board of California, payable from the Court
Reporters' Fund................................ 825,000
     Schedule:
     (1)    81-Court Reporters
            Board of California.....     843,000
     (2)    Reimbursements..........     -18,000
     Provisions:
     1.     The amount     appropriated in this
            item may include revenues derived
            from the assessment of fines and
            penalties imposed as specified in
            Section 13332.18 of the Government
            Code.


1110-001-0773--For support of Board of
Behavioral Science, payable from the
Behavioral Science Examiners Fund,
Professions and Vocations Fund............... 5,577,000
     Schedule:
     (1) 18-Board     of Behavioral
         Science.................... 5,732,000
     (2) Reimbursements.............   -50,000
     (3) Amount payable from the
         Mental Health Services
         Fund (Item 1110-001-3085)..  -105,000
     Provisions:
     1.  The amount appropriated in this item
         may include revenues derived from
         the assessment of fines and
         penalties imposed as specified in
         Section 13332.18 of the Government
         Code.


1110-001-0775--For support of Structural
Pest Control Board, payable from the
Structural Pest Control Fund, Professions
and Vocations Fund........................... 4,014,000
     Schedule:
     (1) 84-Structural Pest Control
         Board...................... 4,381,000
     (2) Reimbursements.............    -2,000
     (3) Amount payable from the
         Structural Pest Control
         Education and Enforcement
         Fund (Item 1110-001-0399)..  -365,000
     Provisions:
     1.  The amount appropriated in this item
         may include revenues derived from
         the assessment of fines and
         penalties imposed as specified in
         Section 13332.18 of the Government
         Code.


1110-001-0777--For support of Veterinary
Medical Board, payable from the Veterinary
Medical Board Contingent Fund................ 2,206,000
     Schedule:
     (1) 90-Veterinary Medical
         Board...................... 2,232,000
     (2) Reimbursements.............   -26,000
     Provisions:
     1.  The amount appropriated in this item
         may include revenues derived from
         the assessment of fines and
         penalties imposed as specified in
         Section 13332.18 of the Government
         Code.


1110-001-0779--For support of Board of
Vocational Nurse and Psychiatric Technician
Examiners, payable from the Vocational
Nursing and Psychiatric Technicians Fund..... 6,404,000
     Schedule:
     (1) 91.02.020-Distributed
         Vocational Nurses..........  -120,000
     (2) 91.10.010-Vocational
         Nurses Program............. 6,876,000
     (3) Reimbursements.............  -352,000
     Provisions:
     1.  The amount appropriated in this item
         may include revenues derived from
         the assessment of fines and
         penalties imposed as specified in
         Section 13332.18 of the Government
         Code.


1110-001-0780--For support of Board of
Vocational Nurse and Psychiatric Technician
Examiners, payable from the Psychiatric
Technician Examiners Account, Vocational
Nursing and Psychiatric Technicians Fund..... 1,622,000
     Schedule:
     (1) 91.20-Psychiatric
         Technician Program......... 1,644,000
     (2) Reimbursements.............   -22,000
     Provisions:
     1.  The amount appropriated in this item
         may include revenues     derived
         from the assessment of fines and
         penalties imposed as specified in
         Section 13332.18 of the Government
         Code.


1110-001-3017--For support of California
Board of Occupational Therapy, payable from
the Occupational Therapy Fund................ 1,004,000
     Schedule:
     (1) 67-California Board of
         Occupational     Therapy... 1,026,000
     (2) Reimbursements.............   -22,000
     Provisions:
     1.  The amount appropriated in this item
         may include revenues derived from
         the assessment of fines and
         penalties imposed as specified in
         Section 13332.18 of the Government
         Code.


1110-001-3085--For support of Board of
Behavioral Science, for payment to Item
1110-001-0773, payable from the Mental
Health Services Fund......................    105,000


1110-002-9250--For support of State
Athletic Commission, for payment to Item
1110-001-0326, payable from the Boxer's
Pension Fund................................     98,000
     Provisions:
     1.  The amount appropriated in this
         item may include revenues derived
         from the assessment of fines and
         penalties imposed as specified in
         Section 13332.18 of the Government
         Code.


1110-490--Reappropriation, Medical Board of
California. Notwithstanding any other
provision of law, the balance of the
appropriation provided for in the following
citation is reappropriated for the purpose of
completing a peer review study, the deadline
for which was extended by Senate Bill 1438
(Chapter 223, Statutes of 2006), and shall be
available for encumbrance or expenditure until
June 30, 2008:
     0758--Contingent Fund of the Medical Board
     of California
     (1) Item 1110-001-0758, Budget Act of 2006
         (Chs. 47 and 48, Stats. 2006).


1111-002-0166--For support of Arbitration
Certification Program, Department of
Consumer Affairs, payable from the Consumer
Affairs-Certification Account................ 1,014,000
     Schedule:
     (1) 23-Arbitration
         Certification Program...... 1,014,000
     Provisions:
     1.  The amount appropriated in this item
         may include revenues derived from
         the assessment of fines and
         penalties imposed as specified in
         Section 13332.18 of the Government
         Code.


1111-002-0208--For support of Hearing Aid
Dispensers Bureau, Department of Consumer
Affairs, payable from the Hearing Aid
Dispensers Fund..............................    755,000
     Schedule:
     (1) 24-Hearing Aid
         Dispensers Bureau..........   764,000
     (2) Reimbursements.............    -9,000
     Provisions:
     1.  The amount appropriated in this item
         may include revenues derived from
         the assessment of fines and
         penalties imposed as specified in
         Section 13332.18 of the Government
         Code.


1111-002-0239--For support of Bureau of
Security and Investigative Services,
Department of Consumer Affairs, payable from
the Private Security Services Fund............ 10,135,000
     Schedule:
     (1)   25.10.010-Bureau of
           Security and
           Investigative
           Services, Private
           Security Services
           Program................   10,739,000
     (2)   25.02.020-Distributed
           Private Security
           Services...............     -104,000
     (3)   Reimbursements.........     -500,000
     Provisions:
     1.    The amount appropriated in this
           item may include revenues derived
           from the assessment of fines and
           penalties imposed as specified in
           Section 13332.18 of the Government
           Code.


1111-002-0305--For support of Bureau for
Private Postsecondary and Vocational
Education, Department of Consumer Affairs,
payable from the Private Postsecondary
Education Administration Fund................ 4,413,000
     Schedule:
     (1) 27.10.010-Bureau for
         Private Postsecondary and
         Vocational Education....... 4,523,000
     (2) 27.02.020-Distributed
         Private Postsecondary and
         Vocational Education.......  -110,000
     Provisions:
     1.  The amount appropriated in     this
         item may include revenues derived
         from the assessment of fines and
         penalties imposed as specified in
         Section 13332.18 of the Government
         Code.
     2.  These funds shall only be available
         for expenditure if the proposed
         legislation to reform the Bureau for
         Private Postsecondary and Vocational
         Education's operations and establish
         the Private Postsecondary Education
         and Student Protection Act is
         enacted.


1111-002-0325--For support of Bureau of
Electronic and Appliance Repair, Department
of Consumer Affairs, payable from the
Electronic and Appliance Repair Fund......... 2,280,000
     Schedule:
     (1) 28-Bureau of Electronic
         and Appliance Repair....... 2,293,000
     (2) Reimbursements.............   -13,000
     Provisions:
     1.  The amount appropriated in this item
         may include revenues derived from
         the assessment of fines and
         penalties imposed     as specified
         in Section 13332.18 of the
         Government Code.


1111-002-0421--For support of Bureau of
Automotive Repair, Department of Consumer
Affairs, payable from the Vehicle
Inspection and Repair Fund................ 106,957,000
    Schedule:
    (1)   31.10.016-
          Automotive Repair
          and Smog Check
          Programs............  107,146,000
    (2)   31.02.090-
          Distributed
          Automotive Repair
          and Smog Check
          Programs............      -71,000
    (3)   Reimbursements......     -118,000
    Provisions:
    1.    The amount appropriated in this
          item may include revenues
          derived from the assessment of
          fines and penalties imposed as
          specified in Section 13332.18 of
          the Government Code.


1111-002-0459--For support of Telephone
Medical Advice Services Program, Department
of Consumer Affairs, payable from the
Telephone Medical Advice Services Fund.......    158,000
     Schedule:
     (1) 37-Telephone Medical
         Advice Services Program....   158,000
     Provisions:
     1.  The amount appropriated in this item
         may include revenues derived from
         the assessment of fines and
         penalties imposed as specified in
         Section 13332.18 of the Government
         Code.


1111-002-0582--For support of Bureau of
Automotive Repair, Department of Consumer
Affairs, payable from the High Polluter
Repair or Removal Account..................... 59,820,000
     Schedule:
     (1)   31.20.016-Vehicle
           Repair Assistance......   17,034,000
     (2)   31.20.030-Vehicle
           Retirement.............   30,819,000
     (3)   31.20.040-Program
           Administration.........   11,967,000
     Provisions:
     1.    The amount appropriated in this
           item may include revenues derived
           from the assessment of fines and
           penalties imposed as specified in
           Section 13332.18 of the Government
           Code.
     2.    Notwithstanding Section 26.00, the
           Department of Finance may authorize
           transfers among and between
           Schedules (1) and (2). Any transfer
           made pursuant to this provision
           shall be reported in writing to the
           chairpersons of the fiscal
           committees of each house of the
           Legislature and the Chairperson of
           the Joint Legislative Budget
           Committee within 30 days of the
           date of the transfer.


1111-002-0702--For support of Department of Consumer
Affairs, payable from the Consumer Affairs Fund,
Professions and Vocations Fund........................ 0
     Schedule:
     (1)      35.10.010-Administrative
              and Information Services
              Division..................     42,825,000
     (2)      35.10.015-Public Affairs..      1,048,000
     (3)      35.10.020-Consumer and
              Community Relations
              Division..................     11,186,000
     (4)      35.10.025-Division of
              Investigation.............      8,452,000
     (4.5)    35.10.030-DCA Workers'
              Compensation..............      3,350,000
     (5)      35.02.010-Distributed
              Administrative and
              Information Services
              Division..................    -42,352,000
     (6)      35.02.015-Distributed
              Public Affairs............       -992,000
     (7)      35.02.020-Distributed
              Consumer and Community
              Relations Division........    -11,186,000
     (8)      35.02.025-Distributed
              Division of Investigation.     -8,452,000
     (8.5)    35.02.030-Distributed DCA
              Workers' Compensation.....     -3,350,000
     (9)      Reimbursements............       -529,000
     Provisions:
     1.       The amount appropriated in this item may
              include revenues derived from the
              assessment of fines and penalties
              imposed as specified in Section 13332.18
              of the Government Code.
     2.       The Department of Consumer Affairs shall
              report to the Department of Finance and
              the Joint Legislative Budget Committee
              at the conclusion of the project, but no
              later than September 1, 2010, on the
              status of the iLicensing project,
              including     implementation by boards
              and bureaus, funding allocations,
              preliminary usage information among new
              and existing licensees, and a workload
              analysis for the positions established
              to support this project. The Department
              of Finance may eliminate any position
              established in the 2006-07 or 2007-08
              State Budget that supports the
              iLicensing project, if the workload
              cannot be justified by this report. In
              addition, in no case may a fee increase
              be imposed to support this project.
     3.       In recognition of operational
              efficiencies resulting from the
              implementation of the iLicensing
              information technology project by
              participating boards, bureaus, and
              divisions of the Department of Consumer
              Affairs, a departmentwide budget
              reduction of $500,000 (special funds)
              will be effectuated in the 2010-11
              fiscal year and ongoing fiscal years.
              However, to the     extent that
              additional resources are needed to
              protect California consumers, boards,
              bureaus, and divisions of the department
              may pursue budget augmentations through
              the annual budget process.


1111-002-0717--For support of Cemetery and
Funeral Bureau, Department of Consumer
Affairs, payable from the Cemetery Fund,
Professions and Vocations Fund............... 2,231,000
     Schedule:
     (1) 38.10.005-Cemetery Program. 2,465,000
     (2) 38.02.010-Distributed
         Cemetery Program...........  -115,000
     (3) Reimbursements.............  -119,000
     Provisions:
     1.  The amount appropriated in this item
         may include revenues derived from
         the assessment of fines and
         penalties imposed as specified in
         Section 13332.18 of the Government
         Code.


1111-002-0750--For support of Cemetery and
Funeral Bureau, Department of Consumer
Affairs, payable from the State Funeral
Directors and Embalmers Fund, Professions
and Vocations Fund........................... 1,621,000
     Schedule:
     (1) 38.20-Funeral Directors
         and Embalmers Program...... 1,633,000
     (2) Reimbursements.............   -12,000
     Provisions:
     1.  The amount appropriated in this item
         may include revenues derived from
         the assessment of fines and
         penalties imposed as specified in
         Section 13332.18 of the Government
         Code.


1111-002-0752--For support of Bureau of Home
Furnishings and Thermal Insulation,
Department of Consumer Affairs, payable from
the Bureau of Home Furnishings and Thermal
Insulation Fund.............................. 4,548,000
     Schedule:
     (1) 34-Bureau of Home
         Furnishings and Thermal
         Insulation................. 4,553,000
     (2) Reimbursements.............    -5,000
     Provisions:
     1.  The amount appropriated in this item
         may include revenues derived from
         the assessment of fines and
         penalties imposed as specified in
         Section 13332.18 of the Government
         Code.


1111-002-0769--For support of Bureau of
Security and Investigative Services,
Department of Consumer Affairs, payable from
the Private Investigator Fund................    974,000
     Schedule:
     (1) 25.20-Private
         Investigators Program......   990,000
     (2) Reimbursements.............   -16,000
     Provisions:
     1.  The amount appropriated in this item
         may include revenues derived from
         the assessment of fines and
         penalties imposed as specified in
         Section 13332.18 of the Government
         Code.


1111-002-0890--For support of Bureau for
Private Postsecondary and Vocational
Education, Department of Consumer Affairs,
payable from the Federal Trust Fund.......... 1,476,000
     Schedule:
     (1) 27.20-Federal Trust
         Program.................... 1,476,000
     Provisions:
     1.  Notwithstanding any other provision
         of law, the Federal Trust Fund
         Account of the Bureau for Private
         Postsecondary and Vocational
         Education may borrow from the
         Private Postsecondary and Vocational
         Education Administration Fund an
         amount not to exceed a cumulative
         total of $500,000 for the purpose of
         meeting cashflow needs for the
         purposes funded in this item due to
         delays in collecting federal funds.
         Any loan made pursuant to this
         provision shall be made only upon
         approval of the Department of
         Finance, and only if the bureau
         demonstrates and certifies that a
         sufficient surplus exists in the
         Private Postsecondary and Vocational
         Education Administration Fund to
         support the amount of the loan, and
         that funds will be available from
         the federal government to repay the
         loan. All moneys transferred shall
         be repaid to the fund as soon as
         possible, but not later than one
         year from the date of the loan.
     2.  To the extent legislation is not
         enacted to reform the Bureau for
         Private Postsecondary and Vocational
         Education's operations, this Title
         38 program will be administered by
         the Department of Consumer Affairs
         in support of the federal contract.


1111-002-0960--For support of Bureau for
Private Postsecondary and Vocational
Education, Department of Consumer Affairs,
          payable from the Student Tuition Recovery
Fund.........................................    433,000
     Schedule:
     (1) 27.30-Student Tuition
         Recovery Program...........   433,000
     Provisions:
     1.  The amount appropriated in this item
         may include revenues derived from
         the assessment of fines and
         penalties imposed as specified in
         Section 13332.18 of the Government
         Code.
     2.  These funds shall only be available
         for expenditure if the proposed
         legislation to reform the Bureau for
         Private Postsecondary and
         Vocational Education's operations
         and establish the Private
         Postsecondary Education and Student
         Protection Act is enacted.


1111-002-3069--For support of Bureau of
Naturopathic Medicine, Department of Consumer
Affairs, payable from the Naturopathic
Doctor's Fund.................................    148,000
     Schedule:
     (1) 39-Bureau of
         Naturopathic Medicine.......   151,000
     (2) Reimbursements..............    -3,000


1111-002-3108--For support of Professional
Fiduciaries Bureau, Department of Consumer
Affairs, payable from the Professional
Fiduciary Fund............................... 1,113,000
     Schedule:
     (1) 89-Professional
         Fiduciaries Bureau......... 1,113,000
     Provisions:
     1.  The amount appropriated in this item
         may include revenues derived from
         the assessment of fines and
         penalties imposed as specified in
         Section 13332.18 of the Government
         Code.


1111-003-0001--For support of Office of
Privacy Protection, Department of Consumer
Affairs.....................................    826,000
     Schedule:
     (1) 40-Office of Privacy
         Protection.................  861,000
     (2) Reimbursements.............  -35,000


1690-001-0217--For support of Alfred E.
Alquist Seismic Safety Commission, payable
from the Insurance Fund....................... 1,117,000
     Schedule:
     (1) 10-Alfred E. Alquist
         Seismic Safety
         Commission.................. 1,194,000
     (2) Reimbursements..............   -77,000


1700-001-0001--For support of Department of
Fair Employment and Housing................... 18,641,000
     Schedule:
     (1)   50-Administration of
           Civil Rights Law.......   24,370,000
     (2)   Amount payable from
           the Federal Trust Fund
           (Item 1700-001-0890)...   -5,729,000


1700-001-0890--For support of Department
of Fair Employment and Housing, for
payment to Item 1700-001-0001, payable
from the Federal Trust Fund...............   5,729,000


1705-001-0001--For support of Fair Employment
and Housing Commission........................ 1,165,000
     Schedule:
     (1) 10-Fair Employment and
         Housing Commission.......... 1,329,000
     (2) Reimbursements..............  -164,000


1730-001-0001--For support of Franchise
Tax Board................................. 513,992,000
    Schedule:
    (1)   10-Tax Programs.....  471,234,000
    (2)   20-Homeowners and
          Renters Assistance..    6,321,000
    (3)   30-Political Reform
          Audit (1,686,000)...            0
    (4)   45-Child Support
          Automation..........  142,813,000
    (5)   50-DMV Collections..    7,890,000
    (6)   60-Court
          Collections.........   12,603,000
    (7)   70-Contract Work....   13,816,000
    (8)   80.01-
          Administration......   24,993,000
    (9)   80.02-Distributed
          Administration......  -24,993,000
    (10)  Reimbursements......  -14,814,000
    (11)  Reimbursements-
          Child Support
          Automation.......... -104,873,000
    (12)  Amount payable from
          the Motor Vehicle
          Account, State
          Transportation Fund
          (Item 1730-001-
          0044)...............   -2,741,000
    (13)  Amount payable from
          the Motor Vehicle
          License Fee
          Account,
          Transportation Tax
          Fund (Item 1730-001-
          0064)...............   -5,149,000
    (14)  Amount payable from
          the Emergency Food
          Assistance Program
          Fund (Item     1730-
          001-0122)...........       -6,000
    (15)  Amount payable from
          the Delinquent Tax
          Collection Fund
          (Section 19378 of
          the Revenue and
          Taxation Code)......     -404,000
    (16)  Amount payable from
          the Fish and Game
          Preservation Fund
          (Endangered and
          Rare Fish,
          Wildlife, and Plant
          Species
          Conservation and
          Enhancement
          Account) (Item 1730-
          001-0200)...........      -13,000
    (17)  Amount payable from
          the Court
          Collection Account
          (Item 1730-001-
          0242)...............  -12,603,000
    (18)  Amount payable from
          the State
          Children's Trust
          Fund (Item 1730-001-
          0803)...............      -11,000
    (19)  Amount payable from
          the California
          Alzheimer's Disease
          and Related
          Disorders Research
          Fund (Item 1730-001-
          0823)...............      -11,000
    (20)  Amount payable from
          the California
          Seniors Special
          Fund (Item 1730-001-
          0886)...............       -4,000
    (21)  Amount payable from
          the California
          Breast Cancer
          Research Fund (Item
          1730-001-0945)......       -7,000
    (22)  Amount payable from
          the California
          Peace Officer
          Memorial Foundation
          Fund (Item 1730-001-
          0974)...............       -5,000
    (23)  Amount payable from
          the California
          Firefighters'
          Memorial Fund (Item
          1730-001-0979)......       -7,000
    (24)  Amount payable from
          the California Fund
          for Senior Citizens
          (Item 1730-001-
          0983)...............       -7,000
    (25)  Amount payable from
          the California
          Military Family
          Relief Fund (Item
          1730-001-8022)......       -6,000
    (26)  Amount payable from
          the California
          Prostate Cancer
          Research Fund (Item
          1730-001-8025)......       -6,000
    (27)  Amount payable from
          the California
          Sexual Violence
          Victim Services
          Fund (Item 1730-001-
          8035)...............       -6,000
    (28)  Amount payable from
          the California
          Colorectal Cancer
          Prevention Fund
          (Item 1730-001-
          8036)...............       -6,000
    (29)  Amount payable from
          the Veterans'
          Quality of Life
          Fund (Item 1730-001-
          8037)...............       -6,000
    Provisions:
    1.    It is the intent of the
          Legislature that all funds
          appropriated to the Franchise
          Tax Board for processing tax
          returns, auditing, and
          collecting owed tax amounts
          shall be used in a manner
          consistent with both its
          authorized budget and with the
          documents that were presented to
          the Legislature for its review
          in support of that budget. The
          Franchise Tax Board shall not
          reduce expenditures or redirect
          either funding or personnel
          resources away from direct
          auditing or collection
          activities without prior
          approval of the Director of
          Finance. The director shall not
          approve any such reduction or
          redirection sooner than 30 days
          after providing notification to
          the Joint Legislative Budget
          Committee. No such position may
          be transferred from the
          organizational unit to which it
          was assigned in the 2007-08
          Governor's Budget and the
          Salaries and Wages Supplement as
          revised by legislative actions
          without the approval of the
          Department of     Finance.
          Furthermore, the board shall
          expeditiously fill budgeted
          positions consistent with the
          funding provided in this act.
    2.    It is the intent of the
          Legislature that the Franchise
          Tax Board resolve tax
          controversies, without
          litigation, on a basis that is
          fair to both the state and the
          taxpayer and in a manner that
          will enhance voluntary
          compliance and public confidence
          in the integrity and efficiency
          of the board.
    3.    During the 2007-08 fiscal year,
          the collection cost recovery fee
          for purposes of subparagraph (A)
          of paragraph (1) of subdivision
          (a) of Section 19254 of the
          Revenue and Taxation Code shall
          be $155, and the filing
          enforcement cost recovery
          fee for purposes of subparagraph
          (A) of paragraph (2) of that
          subdivision shall be $122.
    4.    During the 2007-08 fiscal year,
          the collection cost recovery fee
          for purposes of subparagraph (B)
          of paragraph (1) of subdivision
          (a) of Section 19254 of the
          Revenue and Taxation Code shall
          be $234, and the filing
          enforcement cost recovery fee
          for purposes of subparagraph (B)
          of paragraph (2) of that
          subdivision shall be $305.
    5.    Of the amounts appropriated in
          this item, the amounts provided
          in Schedule (4) and Schedule
          (11), Reimbursements--Child
          Support Automation, are,
          pursuant to Section 5 of Chapter
          479 of the Statutes of 1999,
          available for the 2007-08 and
          2008-09     fiscal years.
    6.    It is the intent of the
          Legislature that the California
          Child Support Automation System
          project shall receive the
          highest commitment and priority
          of all of the state's child
          support automation activities.
    7.    The Legislature intends that the
          California Child Support
          Automation System project shall
          support all child support
          collections activities in
          compliance with federal
          certification requirements.
    8.    Notwithstanding any other
          provision of law, upon request
          of the     Franchise Tax Board,
          the Department of Finance may
          transfer any amounts not fully
          expended in Schedule (4)--Child
          Support Automation, to the
          Department of Child Support
          Services to provide for
          unanticipated costs associated
          with the California Child
          Support Automation System
          project. This provision may
          become effective no sooner than
          30 days after providing
          notification in writing to the
          chairpersons of the fiscal
          committees of each house of the
          Legislature and the Chairperson
          of the Joint Legislative Budget
          Committee, or not sooner than
          whatever lesser time the
          chairperson of the joint
          committee, or his or her
          designee, may in each instance
          determine.
    10.   Of the amount appropriated in
          this item, $250,000 is for the
          Franchise Tax Board, working
          with the State Board of
          Equalization and the Employment
          Development Department through
          the Federal/State Partnership,
          to contract for a technology
          consultant to explore existing
          technology solutions to increase
          data sharing efforts and promote
          compliance. The consultant's
          work shall emphasize Technology
          Identification and Development
          of a Collaborative Strategy, as
          described in the memorandum of
          April 27, 2007, from the
          Federal/State Partnership to the
          Legislative Analyst's Office.
          The Franchise Tax Board, through
          the Federal/State Partnership,
          shall report to the Legislature
          by March 15, 2008, on the status
          of the consultant contract and
          work product, and shall provide
          an update of the list of Future
          Data Sharing Efforts that was
          provided with the memorandum of
          April 27, 2007.


1730-001-0044--For support of Franchise
Tax Board, for payment to Item 1730-001-
0001, payable from the Motor Vehicle
Account, State Transportation Fund........   2,741,000


1730-001-0064--For support of Franchise
Tax Board, for payment to Item 1730-001-
0001, payable from the Motor Vehicle
License Fee Account, Transportation Tax
Fund......................................   5,149,000


1730-001-0122--For support of Franchise
Tax Board, for payment to Item 1730-001-
0001, payable from the Emergency Food
Assistance Program Fund...................       6,000


1730-001-0200--For support of Franchise
Tax Board, for payment to Item 1730-001-
0001, payable from the Fish and Game
Preservation Fund (Rare Fish, Wildlife,
and Plant Species Conservation and
Enhancement Account)......................      13,000


1730-001-0242--For support of Franchise
Tax Board, for payment to Item 1730-001-
0001, payable from the Court Collection
Account...................................  12,603,000


1730-001-0803--For support of Franchise
Tax Board, for payment to Item 1730-001-
0001, payable from the State Children's
Trust Fund................................      11,000


1730-001-0823--For support of Franchise
Tax Board, for payment to Item 1730-001-
0001, payable from the California
Alzheimer's Disease and Related Disorders
Research Fund.............................      11,000


1730-001-0886--For support of Franchise
Tax Board, for payment to Item 1730-001-
0001, payable from the California Seniors
Special Fund..............................       4,000


1730-001-0945--For support of Franchise
Tax Board, for payment to Item 1730-001-
0001, payable from the California Breast
Cancer Research Fund......................       7,000


1730-001-0974--For support of Franchise
Tax Board, for payment to Item 1730-001-
0001, payable from the California Peace
Officer Memorial Foundation Fund..........       5,000


1730-001-0979--For support of Franchise
Tax Board, for payment to Item 1730-001-
0001, payable from the California
Firefighters' Memorial Fund...............       7,000


1730-001-0983--For support of Franchise
Tax Board, for payment to Item 1730-001-
0001, payable from the California Fund
for Senior Citizens.......................       7,000


1730-001-8022--For support of Franchise
Tax Board, for payment to Item 1730-001-
0001, payable from the California
Military Family Relief Fund...............       6,000


1730-001-8025--For support of Franchise
Tax Board, for payment to Item 1730-001-
0001, payable from the California
Prostate Cancer Research Fund.............       6,000


1730-001-8035--For support of Franchise
Tax Board, for payment to Item 1730-001-
0001, payable from the California Sexual
Violence Victim Services Fund.............       6,000


1730-001-8036--For support of Franchise
Tax Board, for payment to Item 1730-001-
0001, payable from the California
Colorectal Cancer Prevention Fund.........       6,000


1730-001-8037--For support of Franchise
Tax Board, for payment to Item 1730-001-
0001, payable from the Veterans' Quality
of Life Fund..............................       6,000


1730-002-0001--For support of Franchise Tax
Board, for rental payments on lease-revenue
bonds........................................ 3,114,000
     Schedule:
     (1) Central Office--Buildings
         1 and 2.................... 3,085,000
     (2) Insurance..................    29,000
     Provisions:
     1.  The Controller shall transfer funds
         appropriated in this item according
         to a schedule to be provided by the
         State Public Works Board. The
         schedule shall be provided on a
         monthly basis or as otherwise
         might be needed to ensure debt
         requirements are met.
     2.  This item may contain adjustments
         pursuant to Section 4.30 that are
         not currently reflected. Any
         adjustments to this item shall be
         reported to the Joint Legislative
         Budget Committee pursuant to Section
         4.30.


1760-001-0001--For support of Department
of General Services, for payment to Item
1760-001-0666.............................. 10,894,000
     +
      Provisions:
      1.     The amount appropriated in
             this item is for State Capitol
             repairs.


1760-001-0002--For support of Department of
General Services, for payment to Item 1760-
001-0666, payable from the Property
Acquisition Law Money Account...............  4,674,000
     Provisions:
     1.  Of the amount appropriated in this
         item, $3,037,000 is a loan from the
         General     Fund, provided for the
         purposes of supporting the
         management of the state's real
         property assets.
     2.  Repayment of loans provided for the
         purposes of supporting the
         management of the state's real
         property assets shall be repaid
         within 60 days of the close of
         escrow from the sale of surplus
         property, pursuant to Section 11011
         of the Government Code.
     3.  To the extent that the annual
         surplus property listing enacted in
         separate legislation changes the
         workload related to the management
         of the state's real property
         assets, the Director of Finance may
         adjust the amount of the General
         Fund loan and the total amount
         appropriated in this item not
         sooner than 30 days     after
         notifying the Joint Legislative
         Budget Committee.
     4.  Notwithstanding any other provision
         of law, 2007-08 revenues from Third
         Party Cogeneration Projects
         previously shared between state
         agencies and the Energy Resources
         Fund shall be deposited in the
         state General Fund.


1760-001-0003--For support of Department
of General Services, for payment to Item
1760-001-0666, payable from the Motor
Vehicle Parking Facilities Moneys Account.   2,238,000


1760-001-0022--For support of Department
of General Services, for payment to Item
1760-001-0666, payable from the State
Emergency Telephone Number Account........   2,308,000


1760-001-0026--For support of Department of
General Services, for payment to Item 1760-
001-0666, payable from the State Motor
Vehicle Insurance Account...................  5,534,000
     Provisions:
     1.  Notwithstanding any other provision
         of law, Section 16379 of the
         Government Code     shall govern
         the payment of claims for the
         purposes of this item.


1760-001-0367--For support of Department
of General Services, for payment to Item
1760-002-0666, payable from the Indian
Gaming Special Distribution Fund..........      50,000


1760-001-0450--For support of Department
of General Services, for payment to Item
1760-001-0666, payable from the Seismic
Gas Valve Certification Fee Account.......      75,000


1760-001-0465--For support of Department
of General Services, for payment to Item
1760-001-0666, payable from the Energy
Resources Programs Account................   1,549,000


1760-001-0602--For support of Department
of General Services, for payment to Item
1760-001-0666, payable from the
Architecture Revolving Fund...............  41,283,000


1760-001-0666--For support of Department
of General Services, payable from the
Service Revolving Fund..................... 718,655,000
    Schedule:
    (1)   Program support......  978,545,000
    (2)   Distributed services.  -11,145,000
    (3)   Reimbursements-
          -Lease revenue.......     -129,000
    (5)   Amount payable from
          the General Fund
          (Item 1760-001-0001).  -10,894,000
    (6)   Amount payable from
          the General Fund
          (Item 1760-002-0001).     -338,000
    (7)   Amount payable from
          the Property
          Acquisition Law
          Money Account (Item
          1760-001-0002).......   -4,674,000
    (8)   Amount payable from
          the Motor Vehicle
          Parking Facilities
          Moneys Account (Item
          1760-001-0003).......   -2,238,000
    (9)   Amount payable from
          the State Emergency
          Telephone Number
          Account (Item 1760-
          001-0022)............   -2,308,000
    (10)  Amount payable from
          the State Motor
          Vehicle Insurance
          Account (Item 1760-
          001-0026)............   -5,534,000
    (11)  Amount payable from
          the Indian Gaming
          Special Distribution
          Fund (Item 1760-001-
          0367)................      -50,000
    (12)  Amount payable from
          the Seismic Gas
          Valve Certification
          Fee Account (Item
          1760-001-0450).......      -75,000
    (13)  Amount payable from
          the Energy Resources
          Programs Account
          (Item 1760-001-0465).   -1,549,000
    (14)  Amount payable from
          the Architecture
          Revolving Fund
          (Item 1760-001-0602).  -41,283,000
    (15)  Amount payable from
          the State School
          Building Aid Fund
          (Item 1760-001-0739).     -289,000
    (16)  Amount payable from
          the State School
          Deferred Maintenance
          Fund (Item 1760-001-
          0961)................     -153,000
    (17)  Amount payable from
          the 2004 State
          School Facilities
          Fund (Item 1760-001-
          6044)................  -12,525,000
    (18)  Amount payable from
          the 2006 State
          School Facilities
          Fund (Item 1760-001-
          6057)................     -575,000
    (19)  Amount payable from
          the Motor Vehicle
          Parking Facilities
          Moneys Account (Item
          1760-002-0003).......   -1,094,000
    (20)  Amount payable from
          the Service
          Revolving Fund (Item
          1760-002-0666)....... -150,619,000
    (21)  Amount payable from
          the Service
          Revolving Fund (Item
          1760-003-0666).......  -14,418,000
    Provisions:
    1.    Notwithstanding any other
          provision of law, revenues from
          the sale of legislative bills and
          publications received by the
          Legislative Bill Room shall be
          deposited in the Service
          Revolving Fund.
    2.    Notwithstanding any other
          provision of law, if the Director
          of General Services determines in
          writing that there is
          insufficient cash in a special
          fund under his     or her
          authority to make one or more
          payments currently due and
          payable, he or she may order the
          transfer of moneys to that
          special fund in the amount
          necessary to make payment or
          payments, as a loan from the
          Service Revolving Fund. That loan
          shall be subject to all of the
          following conditions:
          (a)     No loan shall be made
                  that would interfere with
                  the carrying out of the
                  object for which the
                  Service Revolving Fund
                  was created.
          (b)     The loan shall be repaid
                  as soon as there are
                  sufficient moneys in the
                  recipient fund to repay
                  the amount loaned, but no
                  later than 18 months
                  after the date of the
                  loan. The     amount
                  loaned shall not exceed
                  the amount that the fund
                  or program is authorized
                  at the time of the loan
                  to expend during the 2007-
                  08 fiscal year from the
                  recipient fund except as
                  otherwise provided in
                  Provisions 4, 5, and 6.
          (c)     The terms and conditions
                  of the loan are approved,
                  prior to the transfer of
                  funds, by the Department
                  of Finance pursuant to
                  appropriate fiscal
                  standards.
    3.    The Director of General Services
          may augment this item or any of
          Items 1760-001-0002, 1760-001-
          0003, 1760-001-0026, and 1760-001-
          0602, by up to an aggregate of 10
          percent in cases where (a) the
          Legislature has approved funds
          for a customer for the
          purchase of services or equipment
          through the Department of General
          Services (DGS) and the
          corresponding expenditure
          authority has not been provided
          in this item or (b) a local
          government entity or the federal
          government has requested services
          from the DGS. Any augmentation
          that is deemed to be necessary on
          a permanent basis shall be
          submitted for review as part of
          the normal budget development
          process. If the Director of
          General Services augments this
          item or Item 1760-001-0002, 1760-
          001-0003, 1760-001-0026, or 1760-
          001-0602, the DGS shall notify
          the Department of Finance within
          30 days after that augmentation
          is made as to the amount,
          justification, and the program
          augmented. Any augmentation made
          in accordance with this provision
          shall not result in an increase
          in any rate charged to other
          departments for services or the
          purchase of goods without the
          prior written consent of the
          Department of Finance. The
          Director of General Services
          shall not use this provision to
          augment this item or Item 1760-
          001-0002,     1760-001-0003, 1760-
          001-0026, or 1760-001-0602 for
          costs that the Department of
          General Services had knowledge of
          in time to include in the May

                Revision.
    4.    If this item or Item 1760-001-
          0002, 1760-001-0003, 1760-001-
          0026, or 1760-001-0602 is
          augmented pursuant to Provision 3
          by the maximum allowed under that
          provision, the Director of
          Finance may further augment the
          item or items in cases where (a)
          the Legislature has approved
          funds for a customer for the
          purchase of services or equipment
          through the Department of General
          Services (DGS) and the
          corresponding expenditure
          authority has not been provided
          in these items, or (b) a local
          government entity or the federal
          government has requested services
          from the DGS. Any augmentation
          that is deemed to be necessary on
          a permanent basis shall be
          submitted for review as part of
          the normal     budget development
          process. The Director of Finance
          shall not use this provision to
          augment this item or Item 1760-
          001-0002, 1760-001-0003, 1760-001-
          0026, or 1760-001-0602 for costs
          that the Departments of Finance
          or General Services had knowledge
          of in time to include in the May
          Revision.
    5.    The Director of General Services
          may augment this item and Items
          1760-001-0026 and 1760-001-0003
          to increase authorized
          expenditures by the Office of
          State Publishing, the Office of
          Risk and Insurance Management,
          the Office of Fleet
          Administration, the Office of
          Energy Management, and the Office
          of Public Safety Radio Services.
          The augmentation shall be for the
          specific purpose of enabling the
          Office of State Publishing, the
          Office of Risk and Insurance
          Management, the Office of Fleet
          Administration, the Energy
          Services Program, and the Office
          of Public Safety Radio Services
          to provide competitive services
          to their customers (including
          local government entities or the
          federal government) and may be
          made only if the office has
          sufficient operating reserves
          available to fund the
          augmentation. If the Director of
          General Services proposes to
          augment either of the items in
          this provision, the director
          shall notify the Department of
          Finance, the chairpersons of the
          fiscal committees of each house
          of the Legislature, and the
          Chairperson of the Joint
          Legislative Budget Committee 30
          days prior to making the
          augmentation, including the
          amount, justification, and the
          office augmented. Any
          augmentation that is deemed to be
          necessary on a permanent basis
          shall be submitted for review as
          part of the normal budget
          development process.
    6.    Any augmentation made pursuant to
          Provisions 3 and     4 shall be
          reported in writing to the
          chairpersons of the fiscal
          committees of each house of the
          Legislature and the Chairperson
          of the Joint Legislative Budget
          Committee within 30 days of the
          date the augmentation is
          approved. This notification shall
          be provided in a format
          consistent with normal budget
          change requests, including
          identification of the amount of,
          and justification for, the
          augmentation, and the program
          that has been augmented. Copies
          of the notification shall be
          provided to the Department of
          Finance.
    7.    Notwithstanding any other
          provision of law, the Director of
          General Services or his or her
          designee, in lieu of the Director
          of Finance, is authorized to
          approve Budget Revision, Standard
          Form 26, subject to a copy being
          provided to the Department of
          Finance.
    8.    Notwithstanding any other
          provision of law, due to the
          inability to issue energy
          efficiency revenue bonds pursuant
          to Chapter 2.7 (commencing with
          Section 15814.10) of Part 10b of
          Division 3 of Title 2 of the
          Government Code, in order to
          repay the General Fund for the
          cost of completing energy
          efficiency projects on specified
          buildings, the Department of
          General Services shall, within 10
          fiscal years, recover an amount
          sufficient to repay the costs
          associated with completed energy
          efficiency projects plus 5
          percent interest, through utility
          rates charged to tenants. On
          August 1 of each fiscal year
          beginning with the 2005-06 fiscal
          year, the Department of General
          Services shall transfer that
          amount to the General Fund. Once
          the General Fund has been fully
          repaid, the Department of General
          Services shall adjust utility
          rates for all tenants to
          accurately reflect the current
          rates.
    9.    The Director of Finance is
          authorized to increase this item
          for purposes of funding tenant
          improvement projects to
          facilitate the backfill of vacant
          space within stand-alone
          Department of General Services
          (DGS) bond funded office
          buildings. This provision shall
          only be used to augment
          expenditure authority for DGS
          stand-alone individual rate
          office buildings where a $0.03
          tenant improvement surcharge has
          been approved by the Department
          of Finance and is included in the
          monthly rental rate. Department
          of Finance approval is contingent
          upon justification for the
          proposed tenant improvement
          projects to be provided by the
          DGS including an analysis of cost
          impacts and how the tenant
          improvements will improve the
          state's utilization of the
          facility. Any augmentation made
          in accordance with this provision
          shall not result in an increase
          in any rate charged to other
          departments for services without
          the prior written consent of the
          Department of Finance. Any
          augmentation made pursuant to
          this provision may be authorized
          not sooner than 30 days after
          notification in writing to the
          chairpersons of the fiscal
          committees of each house of the
          Legislature and the Chairperson
          of the Joint Legislative Budget
          Committee.
    10.   The Department of General
          Services shall provide an
          implementation progress report to
          the Department of Finance and the
          appropriate fiscal committees of
          the Legislature on April 1, 2009,
          and on April 1, 2010, to provide
          the status of the following
          areas: (a) progress on meeting
          statewide fleet utilization
          targets, (b) disposal of vehicles
          not meeting minimum utilization
          standards, (c) trend of statewide
          fleet size, (d) trend of
          statewide fleet average fuel
          efficiency, (e) timeframes
          associated with producing
          standard and ad hoc reports, and
          (f) savings and cost avoidances
          achieved to date and potential
          for additional savings and cost
          avoidances.


1760-001-0739--For support of Department
of General Services, for payment to Item
1760-001-0666, payable from the State
School Building Aid Fund..................     289,000


1760-001-0961--For support of Department
of General Services, for payment to Item
1760-001-0666, payable from the State
School Deferred Maintenance Fund..........     153,000


1760-001-6044--For support of Department
of General Services, for payment to Item
1760-001-0666, payable from the 2004
State School Facilities Fund..............  12,525,000


1760-001-6057--For support of Department
of General Services, for payment to Item
1760-001-0666, payable from the 2006
State School Facilities Fund..............     575,000


1760-002-0001--For support of Department
of General Services, for payment to Item
1760-001-0666.............................     338,000


1760-002-0003--For support of Department of
General Services, for rental payments on
lease-revenue bonds, for payment to Item
1760-001-0666, payable from the Motor
Vehicle Parking Facilities Moneys Account.... 1,094,000
     Provisions:
     1.  The funds appropriated in     this
         item are for the following:
         (a) Base Rental and Fees... 1,088,000
         (b) Insurance..............     6,000
     2.  The Controller shall transfer funds
         appropriated in this item according
         to a schedule to be provided by the
         State Public Works Board. The
         schedule shall be provided on a
         monthly basis or as otherwise might
         be needed to ensure debt
         requirements are met.
     3.  This item may contain adjustments
         pursuant to Section 4.30 that are
         not currently reflected. Any
         adjustments to this item shall be
         reported to the Joint Legislative
         Budget Committee pursuant to Section
         4.30.


1760-002-0666--For support of Department of
General Services, for rental payments on
lease-revenue bonds, for payment to Item
1760-001-0666, payable from the Service      150,619,00
Revolving Fund..............................          0
  Provisions:
  1. The funds appropriated in this item are
     for the     following:
     (a) Base Rental and Fees..... 149,944,00
                                            0
         (1)  Capitol
              Area
              Developme
              nt
              Authority
              ,
              Sacrament
              o........    691,000
         (2)  State
              Office
              Building,
              Riverside
              .........  2,102,000
         (3)  Departmen
              t of
              Justice
              Building,
              Sacrament
              o........  4,727,000
         (4)  San
              Francisco
              Civic
              Center
              Building. 23,743,000
         (5)  Ronald
              Reagan
              Building,
              Los
              Angeles.. 18,039,000
         (6)  Elihu M.
              Harris
              Building,
              Oakland.. 10,730,000
         (7)  LA
              Junipero
              Serra II.  4,767,000
         (8)  State
              Office
              Building,
              San
              Diego
              (Suburban
              )........  2,882,000
         (9)  Capitol
              East End
              Garage...    968,000
         (10) Stephen
              P. Teale
              Data
              Center...  3,492,000
         (11) Capitol
              Area
              East End
              Complex.. 32,739,000
         (12) Butterfie
              ld
              Warehouse
              Plant....  2,498,000
         (13) Food and
              Agricultu
              re.......  1,344,000
         (14) Butterfie
              ld
              Office
              Building. 16,142,000
         (15) Caltrans
              San
              Diego
              Office
              Building.  5,790,000
         (16) Board of
              Equalizat
              ion
              Building
              Acquisiti
              on.......  6,410,000
         (17) Office
              Building
              #10......    553,000
         (18) State
              Archives. 12,327,000
     (b) Insurance................    804,000
     (c) Reimbursements...........   -129,000
  2. The Controller shall transfer funds
     appropriated in this item according to
     a schedule to be provided by the State
     Public Works Board monthly or as
     otherwise needed to ensure debt
     requirements are met.
  3. This item may contain adjustments
     pursuant to Section 4.30 that are not
     currently reflected. Any adjustments to
     this item shall be reported to the
     Joint Legislative Budget Committee
     pursuant to Section 4.30.


1760-003-0666--For support of Department
of General Services, for rental payments
on California Environmental Protection
Agency building, for payment to Item 1760-
001-0666, payable from the Service
Revolving Fund............................. 14,418,000
      Provisions:
      1.     The Controller shall
             transfer funds appropriated in
             this item according to a
             schedule to be provided by the
             State Public Works Board. The
             schedule shall be provided on
             a monthly basis or as
             otherwise might be needed to
             ensure debt requirements are
             met.
      2.     This item may contain
             adjustments pursuant to
             Section 4.30 that are not
             currently reflected. Any
             adjustments to this item shall
             be reported to the Joint
             Legislative Budget Committee
             pursuant to Section 4.30.


1760-101-0022--For local assistance,
Department of General Services, for
reimbursement of local agencies and service
suppliers or communications equipment
companies for costs incurred pursuant to
Sections 41137, 41137.1, 41138, and 41140
of the Revenue and Taxation Code, payable
from the State Emergency Telephone Number
Account..................................... 152,270,000
    Schedule:
    (1)   911 Emergency
          Telephone Number
          System................  104,523,000
    (2)   Enhanced Wireless
          Services..............   47,747,000


1760-301-0001--For capital outlay,
Department of General Services...............          0
     Schedule:
     (1) 50.10.250-Sacramento
         Public Safety
         Communications
         Decentralization,
         Resources--Acquisition.....   144,000
     (2) Reimbursements.............  -144,000
     Provisions:
     1.  Notwithstanding any other provision
         of law, the funds appropriated in
         this item shall be reimbursed from
         the Department of Water Resources.


1760-301-0042--For capital outlay, Department
of General Services, payable from the State
Highway Account, State Transportation Fund....    836,000
     Schedule:
     (1) 50.10.250-Sacramento Public
         Safety Communications
         Decentralization, Resources-
         -Acquisition................   836,000


1760-301-0044--For capital outlay,
Department of General Services, payable from
the Motor Vehicle Account, State
Transportation Fund.......................... 2,115,000
     Schedule:
     (1) 50.10.250-Sacramento
         Public Safety
         Communications
         Decentralization,
         Resources--Acquisition..... 2,115,000


1760-301-0200--For capital outlay, Department
of General Services, payable from the Fish
and Game Preservation Fund....................    188,000
     Schedule:
     (1) 50.10.250-Sacramento Public
         Safety Communications
         Decentralization, Resources-
         -Acquisition................   188,000


1760-301-0660--For capital outlay,
Department of General Services, payable from
the Public Buildings Construction Fund....... 82,734,000
     Schedule:
     (1)    50.10.200-Central
            Plant Renovation-
            -Construction.........  82,734,000
     Provisions:
     1.     The State Public Works Board may
            issue lease-revenue bonds, notes,
            or bond anticipation notes
            pursuant to Chapter 5 (commencing
            with Section 15830) of Part 10b
            of Division 3 of Title 2 of the
            Government Code to finance the
            construction of the projects
            authorized by this item.
     2.     The State Public Works Board and
            the Department of General
            Services may obtain interim
            financing for the project costs
            authorized in this item from any
            appropriate source, including,
            but not limited to, the Pooled
            Money Investment Account pursuant
            to Sections 16312 and 16313 of
            the Government Code.
     3.     The State Public Works Board may
            authorize the augmentation of the
            cost of construction of the
            project scheduled in this item
            pursuant to the board's authority
            under Section 13332.11 of the
            Government Code. In addition, the
            board may authorize any
            additional amount necessary to
            establish a reasonable
            construction reserve and to pay
            the cost of financing, including
            the payment of interest during
            construction of the project, the
            costs of financing a debt service
            fund, and the cost of issuance of
            permanent financing for the
            project. This additional amount
            may include interest payable on
            any interim financing obtained.
     4.     The Department of General
            Services is authorized and
            directed to execute and
            deliver any and all leases,
            contracts, agreements, or other
            documents necessary or advisable
            to consummate the sale of bonds
            or otherwise effectuate the
            financing of the scheduled
            projects.
     5.     The State Public Works Board
            shall not itself be deemed a lead
            or responsible agency for
            purposes of the California
            Environmental Quality Act
            (Division 13 (commencing with
            Section 21000) of the Public
            Resources Code) for any
            activities under the State
            Building Construction Act of 1955
            (Part 10b (commencing with
            Section 15800) of Division 3 of
            Title 2 of the Government Code).
            This provision does not exempt
            this department from the
            requirements of the California
            Environmental Quality Act. This
            provision is intended to be
            declarative of existing law.
     6.     Notwithstanding Section 1.80, the
            funds appropriated in Schedule
            (1) shall be available for
            expenditure until June 30, 2010.
     7.     The Department of General
            Services may contract for the
            lease, lease-purchase, lease with
            an option to purchase,
            acquisition, design, design-
            build, construction, construction
            management, and other services
            related to the design and
            construction of the Central Plant
            Renovation Project, Schedule (1).
            If the Director of General
            Services selects design-build as
            the method of delivery, the
            department shall use the method
            of design-build authorized by
            clause (i) of subparagraph (B) of
            paragraph (3) of subdivision (c)
            of Section 14661 of the
            Government Code.
     8.     The Department of Finance shall
            provide written notification to
            the Joint Legislative Budget
            Committee, within 10 days of
            receipt, of any request for
            augmentation of project costs,
            change in project scope, or any
            related change in project
            schedule, for projects identified
            in Schedule (1).
     9.     After execution of a design-build
            contract, any funds provided in
            this item for design-build
            contracts in excess of the
            executed amount of the contract
            shall be immediately reverted and
            shall no longer be available for
            expenditure.


1760-301-0768--For capital outlay, Department
of General Services, payable from the
Earthquake Safety and Public Buildings
Rehabilitation Fund of 1990................... 8,953,000
     Schedule:
     (1)     50.10.250-Sacramento
             Public Safety
             Communications
             Decentralization,
             Resources-
             -Acquisition..........   1,546,000
     (2)     50.99.040-Department
             of Corrections and
             Rehabilitation,
             Sierra Conservation
             Center, Jamestown:
             Buildings E and F,
             Structural Retrofit-
             -Working drawings.....     168,000
     (2.5)   50.99.091-California
             Department of
             Corrections and
             Rehabilitation, DVI,
             Tracy, Hospital
             Building: Structural
             Retrofit-
             -Construction.........   1,160,000
     (3)     50.99.409-Department
             of Corrections and
             Rehabilitation,
             California Medical
             Facility, Vacaville:
             Inmate Housing Wings
             U, V, and T,
             Structural Retrofit-
             -Working drawings.....     688,000
     (4)     50.99.418-Department
             of Corrections and
             Rehabilitation,
             California
             Correctional Center,
             Susanville:
             Vocational Building
             F, Structural
             Retrofit--Working
             drawings..............     331,000
     (5)     50.99.421-Department
             of Corrections and
             Rehabilitation,
             California
             Institution for Women
             at Frontera, Corona:
             Walker Clinic,
             Structural Retrofit-
             -Working drawings.....     255,000
     (6)     50.99.422-State
             Department of Mental
             Health, Metro State
             Hospital, Norwalk:
             Wards 206 and 208,
             Structural
             Retrofit--Working
             drawings..............     363,000
     (7)     50.99.423-Department
             of Corrections and
             Rehabilitation,
             California
             Correctional
             Institution,
             Tehachapi: Building
             H, Chapels Facility,
             Structural Retrofit-
             -Working drawings.....     200,000
     (8)     50.99.426-State
             Department of Mental
             Health, Patton State
             Hospital: Renovate H
             and J Buildings-
             -Preliminary plans
             and working
             drawings..............   3,998,000
     (9)     50.99.427-Department
             of Corrections and
             Rehabilitation,
             California
             Institution for Women
             at Frontera, Corona:
             Infirmary, Structural
             Retrofit--Working
             drawings..............     244,000


1760-401--Notwithstanding Provision 1 of
Item 1760-011-0666 of the Budget Act of
2006 (Chs. 47 and 48, Stats. 2006), the
$1,772,000 loan authorized shall be fully
repaid to the Service Revolving Fund as
soon as there are sufficient moneys in
the Motor Vehicle Parking Facilities
Moneys Account, but no later than June
30, 2013.


1760-490--Reappropriation, Department of
General Services. The balance of the
appropriations provided for in the following
citations is reappropriated for the purposes
and subject to the limitations, unless
otherwise specified, provided in the
appropriations and shall be available for
encumbrance or expenditure until June 30,
2010:
     0660--Public Buildings Construction Fund
     (1) Item 1760-301-0660, Budget Act of
         2003, as reappropriated by Item 1760-
         490, Budget Act of 2005
         (1) 50.10.220-Central Plant
             Renovation--Construction


1760-491--Reappropriation, Department of
General Services. Notwithstanding any other
provision of law, the period to liquidate
encumbrances of the following citations is
extended to June 30, 2008:
     0660--Public Buildings Construction Fund
     (1) Item 1760-301-0660, Budget Act of 2002
         (1) 50.10.140--Food and Agriculture
             Building Renovation, 1220 N
             Street, Sacramento--Construction


1760-492--Reappropriation, Department of
General Services. As of June 30, 2007, the
balance of the funds appropriated in Item
1760-101-0768, Budget Act of 1994 (Ch. 139,
Stats. 1994), as reappropriated by Item 1760-
492, Budget Acts of 2003 (Ch. 157, Stats.
2003), 2004 (Ch. 208, Stats. 2004), and 2005
(Chs. 38 and 39, Stats. 2005), is
reappropriated and shall be available for
encumbrance or expenditure until June 30,
2008:
     Schedule:
     (1) 3116-Richmond, Contra
         Costa--City Hall........... 1,149,975
     (2) 3117-Richmond, Contra
         Costa--Hall of Justice.....   683,613
     Provisions:
     1.  After June 30, 2008, these funds
         shall no longer be available for
         encumbrance or expenditure and shall
         not be reappropriated.


1870-001-0001--For support of California Victim
Compensation and Government Claims Board............... 0
     Schedule:
     (1)     11-Citizens
             Indemnification............      70,090,000
     (2)     12-Quality Assurance and
             Revenue Recovery Division..       9,489,000
     (3)     31-Civil Claims Against
             the State..................       1,318,000
     (4)     41-Citizens Benefiting the
             Public.....................          20,000
     (5)     51.01-Administration.......       9,197,000
     (6)     51.02-Distributed
             Administration Executive
             Office.....................      -9,704,000
     (7)     51.03-Executive Office
             Administration.............         507,000
     (8)     Reimbursements.............      -1,318,000
     (9)     Amount payable from the
             Restitution Fund     (Item
             1870-001-0214).............     -47,392,000
     (10)    Amount payable from the
             Federal Trust Fund (Item
             1870-001-0890).............     -32,187,000
       (11)    Amount payable from the
             Restitution Fund (Item
             1870-002-0214).............         -20,000
     Provisions:
     1.      The California Victim Compensation and
             Government Claims Board shall not
             routinely notify all local agencies and
             school districts regarding its
             proceedings. However, for each of its
             meetings, the board shall notify all
             parties whose claims or proposals are
             scheduled for consideration and any party
             requesting notice of the proceedings.


1870-001-0214--For support of California
Victim Compensation and Government Claims
Board, for support services pursuant to
Chapter 5 (commencing with Section 13950)
of Part 4 of Division 3 of Title 2 of the
Government Code, for payment to Item 1870-
001-0001, payable from the Restitution
Fund......................................  47,392,000


1870-001-0890--For support of California
Victim Compensation and Government Claims
Board, for payment to Item 1870-001-0001,
payable from the Federal Trust Fund.......  32,187,000


1870-002-0214--For support of California
Victim Compensation and Government Claims
Board, for support services pursuant to
subdivision (e) of Section 13973 of the
Government Code, for payment to Item 1870-
001-0001, payable from the Restitution
Fund......................................      20,000


1870-011-0214--For transfer by the
Controller from the Restitution Fund to
the Equality in Prevention and Services
for Domestic Abuse Fund...................  (300,000)


1880-001-0001--For support of State
Personnel Board............................. 5,530,000
    Schedule:
    (1)   10-Merit System
          Administration........   17,864,000
    (2)   40-Local Government
          Services..............    2,907,000
    (3)   50.01-Administration
          Services..............    3,874,000
    (4)   50.02-Distributed
          Administration
          Services..............   -1,983,000
    (5)   Reimbursements........  -17,132,000
    Provisions:
    1.    Notwithstanding any other
          provision of law, the Director of
          Finance may authorize a loan
          from the General Fund, in an
          amount not to exceed 35 percent of
          reimbursements appropriated in
          this item to the State Personnel
          Board, provided that:
          (a)     The loan is to meet cash
                  needs resulting from the
                  delay in receipt of
                  reimbursements for
                  services provided.
          (b)     The loan is for a short
                  term and shall be repaid
                  by September 30, 2008.
          (c)     Interest charges may be
                  waived pursuant to
                  subdivision (e) of
                  Section 16314 of the
                  Government Code.
          (d)     The Director of Finance
                  may not approve the loan
                  unless the approval is
                  made in writing and filed
                  with the Chairperson of
                  the Joint Legislative
                  Budget Committee and the
                  chairpersons of the
                  committees in each house
                  of the Legislature that
                  consider appropriations
                  not later than 30 days
                  prior to the effective
                  date of the approval, or
                  not sooner than whatever
                  lesser time that the
                  chairperson of the joint
                  committee or his or her
                  designee may determine.


1900-001-0822--For support of the Board of
Administration of the Public Employees'
Retirement System, payable from the Public
Employees' Health Care Fund................. (16,248,000)
      Provisions:
      1.    Notwithstanding any other
            provision of law, the Board of
            Administration of     the Public
            Employees' Retirement System
            (PERS), in accordance with all
            applicable provisions of the
            California Constitution, shall
            submit to the Controller, the
            Department of Finance, the Joint
            Legislative Budget Committee,
            and the fiscal committees of the
            Legislature, all of the
            following:
            (a)    No later than May 15,
                   2008, a copy of the
                   proposed budget for PERS
                   for the 2008-09 fiscal
                   year as approved by the
                   board of administration.
            (b)    The revisions to the
                   proposed budget for PERS
                   for the 2007-08 fiscal
                   year, as recommended by
                   the PERS Finance
                   Committee, at least 30
                   days prior to the
                   consideration of
                   those revisions by the
                   board of administration.
            (c)    Commencing October 1,
                   2007, all expenditures
                   and performance workload
                   data provided to the
                   board of administration,
                   as updated on a quarterly
                   basis. This quarterly
                   update information is to
                   be submitted to the Joint
                   Legislative Budget
                   Committee and fiscal
                   committees of the
                   Legislature, and shall be
                   in sufficient detail to
                   be useful for legislative
                   oversight purposes and to
                   sustain a thorough
                   ongoing review of Public
                   Employees' Retirement
                   System expenditures.
      2.    The Legislature finds and
            declares that the Public
            Employees' Retirement System is
            accountable to members,
            governmental entities, and
            taxpayers with     respect to
            the annual health premium
            increases that its board of
            administration adopts. The board
            is encouraged to use the means
            at its disposal under law,
            consistent with requirements to
            provide benefits to public
            employees and others, to achieve
            low annual premium increases. To
            facilitate legislative
            oversight, the board shall
            submit an annual report within
            100 days of its adoption of
            annual health premium increases
            or decreases that describes the
            methods it employed to moderate
            annual increases in premiums
            when taking that action. In
            years when the board adopts
            health premium increases in
            excess of those assumed in the
            most recent state retiree health
            program actuarial valuation, the
            report shall include a
            discussion of actions that the
            board plans to take, if any, to
            attempt to reduce the rate of
            annual premium growth to levels
            below those assumed in this
            valuation for the next three
            years. This reporting
            requirement applies to the
            board's action in 2007 to adopt
            premium rates for 2008 and all
            board     actions to increase or
            decrease annual health premiums
            adopted thereafter. This
            reporting requirement does not
            obligate the board to adopt any
            specific level of premium for
            any given year or to change any
            action it otherwise determines
            is necessary under state law.
            The board may state in the
            report that it is unable to
            commit to specific actions to
            reduce the rate of health
            premium growth or does not know
            if future reductions in the rate
            of health premium growth can be
            achieved. The system is
            requested to complete these
            reports with existing budgetary
            and staffing resources. The
            report shall be submitted to the
            Chairperson of the Joint
            Legislative Budget Committee,
            the chairpersons of the
            committees and subcommittees in
            each house of the Legislature
            that consider the system's
            budget and activities, the
            Controller, the Director of
            Finance, and the Legislative
            Analyst.


1900-001-0950--For support of Board of
Administration of the Public Employees'
Retirement System, payable from the Public
Employees' Contingency Reserve Fund........ 26,519,000
      Provisions:
      1.     The appropriation made in this
             item is for support of the
             Board of     Administration of
             the Public Employees'
             Retirement System pursuant to
             Section 22910 of the
             Government Code.
      2.     In addition to the purpose
             specified in Provision 1,
             funds appropriated in this
             item shall be used by the
             Public Employees' Retirement
             System to process Medicare
             Part D eligibility files,
             reconciliation files, and
             subsidy requests. The system
             may use funds of the Account
             for Retiree Drug Subsidy
             Payments in the Contingency
             Reserve Fund to fund a portion
             of these eligible costs,
             provided that this account
             supports only the portion of
             eligible expenses attributable
             to Medicare Part D retiree
             drug subsidy work related to
             state government and
             California State University
             members of the system. The
             Public Employees' Retirement
             System shall continue to apply
             directly for the maximum
             possible amount of Medicare
             Part D retiree drug subsidies
             in 2007 and 2008.
      3.     Notwithstanding the
             requirements of Provision 2,
             the Public Employees'
             Retirement System may choose
             not to apply for subsidies
             related to plans for which it
             is not eligible to act as the
             sponsor and receive Part D
             subsidies related to their
             enrollees or with respect to
             persons enrolled in a board-
             approved Medicare Advantage
             prescription drug health
             benefit plan, consistent with
             actions of the Public
             Employees' Retirement System
             for the 2007 calendar year .
             If the Public Employees'
             Retirement System chooses not
             to apply for subsidies
             pursuant to this provision,
             the system shall notify the
             Department of Finance, the
             chairpersons of the committees
             and the appropriate
             subcommittees in each house of
             the Legislature that consider
             the budget, the Chairperson of
             the Joint Legislative Budget
             Committee, and the Legislative
             Analyst's Office, and the
             system     shall explain the
             facts and circumstances
             underlying that choice.
      4.     Notwithstanding the
             requirements of Provisions 2
             and 3, the Public Employees'
             Retirement System may choose
             not to apply in the 2008
             calendar year for subsidies
             related to one or more
             employee association health
             benefit plans upon the
             system's certification to the
             Department of Finance that the
             estimated state share of
             Medicare Part D retiree drug
             subsidy funds for those plans
             for the 2006 calendar year did
             not exceed $500,000 on a
             combined basis.


1900-003-0830--For support of Board of
Administration of the Public Employees'
Retirement System, payable from the
Public Employees' Retirement Fund........ (555,635,000)
     Provisions:
     1.    The amount displayed in this
           item is based on the estimate
           by the Public     Employees'
           Retirement System of
           expenditures for external
           investment advisers and other
           investment-related expenses to
           be made during the 2007-08
           fiscal year pursuant to
           Sections 20172, 20208, and
           20210 of the Government Code.
           The Board of Administration of
           the Public Employees'
           Retirement System shall report
           to the fiscal committees of
           the Legislature and the Joint
           Legislative Budget Committee
           on or before January 10, 2008,
           regarding any revision of this
           estimate, including an
           accounting and explanation of
           changes, and the amount of,
           and basis for, investment
           adviser expenditures proposed
           for the 2008-09 fiscal year.
           The Board of Administration of
           the Public Employees'
           Retirement System shall report
           on or before January 10, 2009,
           on the final expenditures
           under this item, including an
           accounting and explanation of
           changes from estimates
           previously reported to the
           Legislature.
     2.    Each of the two reports
           described in Provision 1 also
           shall include all of the
           following:
           (a)    A summary and
                  comparison of the
                  externally managed
                  portfolios, the
                  internally managed
                  portfolios, and the
                  total fund. This
                  information shall
                  include the value of
                  the assets, the gross
                  and net returns, the
                  benchmark returns, and
                  the costs, by dollars
                  and basis points, for
                  these portfolios.
           (b)    A description of the
                  actions the Public
                  Employees' Retirement
                  System will take to
                  ensure that any future
                  expenditures for
                  outside advisers will
                  result in a greater
                  return     on
                  investments, including
                  costs for these
                  advisers, than if in-
                  house advisers were
                  used.
           (c)    Separate listings of
                  adviser contracts in
                  effect, and approved,
                  during the 2006-07 and
                  2007-08 fiscal years,
                  with (1) amounts (total
                  contract and annual
                  basis) for each
                  contract for base fees
                  and performance-based
                  fees, and (2) summary
                  statements of the
                  purposes of each
                  contract.


1900-015-0815--For support of Board of
Administration of the Public Employees'
Retirement System, payable from the Judges'
Retirement Fund............................... (861,000)
     Provisions:
     1.  Notwithstanding any other provision
         of law, the Board of Administration
         of the Public     Employees'
         Retirement System (PERS), in
         accordance with all applicable
         provisions of the California
         Constitution, shall submit to the
         Controller, the Department of
         Finance, the Joint Legislative Budget
         Committee, and the fiscal committees
         of each house of the Legislature, all
         of the following:
         (a) Not later than May 15, 2008, a
             copy of the proposed budget for
             PERS for the 2008-09 fiscal year
             as approved by the board of
             administration.
         (b) The revisions to the proposed
             budget for PERS for the 2007-08
             fiscal year, as recommended by
             the PERS Finance Committee, at
             least 30 days prior to the
             consideration of     those
             revisions by the board of
             administration.
         (c) Commencing October 1, 2007, all
             expenditure and performance
             workload data provided to the
             board of administration, as
             updated on a quarterly basis.
             This quarterly update information
             is to be submitted to the Joint
             Legislative Budget Committee and
             the fiscal committees of each
             house of the Legislature, and
             shall be in sufficient detail to
             be useful for legislative
             oversight purposes and to sustain
             a thorough ongoing review of
             Public Employees' Retirement
             System expenditures.


1900-015-0820--For support of Board of
Administration of the Public Employees'
Retirement System, payable from the
Legislators' Retirement Fund.................. (411,000)
     Provisions:
     1.  Notwithstanding any other provision
         of law, the Board of Administration
         of the Public     Employees'
         Retirement System, in accordance with
         all applicable provisions of the
         California Constitution, shall submit
         to the Controller, the Department of
         Finance, the Joint Legislative Budget
         Committee, and the fiscal committees
         of each house of the Legislature all
         of the following:
         (a) Not later than May 15, 2008, a
             copy of the proposed budget for
             the Public Employees' Retirement
             System for the 2008-09 fiscal
             year as approved by the board of
             administration.
         (b) The revisions to the proposed
             budget for the Public Employees'
             Retirement System for the 2007-08
             fiscal year, as recommended by
             the Public     Employees'
             Retirement System Finance
             Committee, at least 30 days prior
             to consideration of those
             revisions by the board of
             administration.
         (c) Commencing October 1, 2007, all
             expenditure and performance
             workload data provided to the
             board of administration, as
             updated on a quarterly basis.
             This quarterly update information
             shall be submitted to the Joint
             Legislative Budget Committee and
             the fiscal committees of each
             house of the Legislature in
             sufficient detail to be useful
             for legislative oversight
             purposes and to sustain a
             thorough ongoing review of the
             expenditures of the Public
             Employees' Retirement System.


1900-015-0830--For support of Board of
Administration of the Public Employees'
Retirement System, payable from the
Public Employees' Retirement Fund........ (264,501,000)
     Provisions:
     1.    Notwithstanding any other
           provision of law, the Board of
           Administration of the
           Public Employees' Retirement
           System, in accordance with all
           applicable provisions of the
           California Constitution, shall
           submit to the Controller, the
           Department of Finance, the
           Joint Legislative Budget
           Committee, and the fiscal
           committees of the Legislature,
           all of the following:
           (a)    No later than May 15,
                  2008, a copy of the
                  proposed budget for the
                  Public Employees'
                  Retirement System for
                  the 2008-09 fiscal year
                  as approved by the
                  board of administration.
           (b)    The revisions to the
                  proposed budget for the
                  Public Employees'
                  Retirement System for
                  the 2007-08 fiscal
                  year, as recommended by
                  the Public
                  Employees' Retirement
                  System Finance
                  Committee, at least 30
                  days prior to
                  consideration of those
                  revisions by the board
                  of administration.
           (c)    Commencing October 1,
                  2007, all expenditure
                  and performance
                  workload data provided
                  to the board of
                  administration, as
                  updated on a quarterly
                  basis. This quarterly
                  update information
                  shall be submitted to
                  the Joint Legislative
                  Budget Committee and
                  the fiscal committees
                  of the Legislature in
                  sufficient detail to be
                  useful for legislative
                  oversight purposes and
                  to sustain a thorough
                  ongoing review of the
                  expenditures of the
                  Public Employees'
                  Retirement System.
     2.    Commencing July 1, 2007,
           reports     on information
           technology projects that are
           submitted to the Board of
           Administration of the Public
           Employees' Retirement System
           shall be submitted to the
           Joint Legislative Budget
           Committee, the fiscal
           committees of the Legislature,
           and the Department of Finance
           on an informational basis. The
           quarterly update information
           submitted to the Department of
           Finance shall be in sufficient
           detail to be useful for
           Department of Finance
           informational project status
           reporting purposes.


1900-015-0833--For support of Board of
Administration of the Public Employees'
Retirement System, payable from the
Annuitants' Health Care Coverage Fund......... (285,000)
     Provisions:
     1.  Notwithstanding any other provision
         of law, the Board of Administration
         of the Public Employees' Retirement
         System (PERS), in accordance with all
         applicable provisions of the
         California Constitution, shall submit
         to the Controller, the Department of
         Finance, the Joint Legislative Budget
         Committee, and the fiscal committees
         of each house of the Legislature, all
         of the following:
         (a) No later than May 15, 2008, a
             copy of the proposed budget for
             PERS for the 2008-09 fiscal year
             as approved by the board of
             administration.
         (b) The revisions to the proposed
             budget for PERS for the 2007-08
             fiscal year, as recommended by
             the PERS Finance Committee, at
             least 30 days prior to
             consideration of those revisions
             by the board of administration.
         (c) Commencing October 1, 2007, all
             expenditure and performance
             workload data provided to the
             board of administration, as
             updated on a quarterly basis.
             This quarterly update information
             is to be submitted to the Joint
             Legislative Budget Committee and
             the fiscal committees of each
             house of the Legislature, and
             shall be in sufficient detail to
             be useful for legislative
             oversight purposes and to sustain
             a thorough ongoing review of the
             PERS expenditures.


1900-015-0884--For support of Board of
Administration of the Public Employees'
Retirement System, payable from the Judges'
Retirement System II Fund..................... (579,000)
     Provisions:
     1.  Notwithstanding any other provision
         of law, the Board of Administration
         of the Public     Employees'
         Retirement System (PERS), in
         accordance with all applicable
         provisions of the California
         Constitution, shall submit to the
         Controller, the Department of
         Finance, the Joint Legislative Budget
         Committee, and the fiscal committees
         of the Legislature, all of the
         following:
         (a) No later than May 15, 2008, a
             copy of the proposed budget for
             PERS for the 2008-09 fiscal year
             as approved by the board of
             administration.
         (b) The revisions to the proposed
             budget for PERS for the 2007-08
             fiscal year, as recommended by
             the PERS Finance Committee, at
             least 30 days prior to the
             consideration of those revisions
             by the board of administration.
         (c) Commencing October 1, 2007, all
             expenditure and performance
             workload data provided to the
             board of administration, as
             updated on a quarterly basis.
             This quarterly update information
             is to be submitted to the Joint
             Legislative Budget Committee and
             the fiscal committees of the
             Legislature, and shall be in
             sufficient detail to be useful
             for legislative oversight
             purposes and to sustain a
             thorough ongoing review of Public
             Employees' Retirement System
             expenditures.


1900-015-0962--For support of Board of
Administration of the Public Employees'
Retirement System, payable from the Volunteer
Firefighter Length of Service Award Fund...... (151,000)
     Provisions:
     1.  Notwithstanding any other provision
         of law, the Board of
         Administration of the Public

       Employees' Retirement System, in
         accordance with all applicable
         provisions of the California
         Constitution, shall submit to the
         Controller, the Department of
         Finance, the Joint Legislative Budget
         Committee, and the fiscal committees
         of the Legislature, all of the
         following:
         (a) No later than May 15, 2008, a
             copy of the proposed budget for
             the Public Employees' Retirement
             System for the 2008-09 fiscal
             year as approved by the board of
             administration.
         (b) The revisions to the proposed
             budget for the Public Employees'
             Retirement System for the 2007-08
             fiscal year recommended by
             the Public Employees' Retirement
             System Finance Committee, at
             least 30 days prior to
             consideration of those revisions
             by the board of administration.
         (c) Commencing October 1, 2007, all
             expenditure and performance
             workload data provided to the
             board of administration, updated
             on a quarterly basis, shall be
             submitted to the Joint
             Legislative Budget Committee and
             the fiscal committees of the
             Legislature. The quarterly update
             information submitted to the
             Legislature shall be in
             sufficient detail to be useful
             for legislative oversight
             purposes and to sustain a
             thorough ongoing review of the
             expenditures of the Public
             Employees' Retirement System.


1900-017-0950--For support of Public
Employees' Retirement System, payable from
the Public Employees' Contingency Reserve
Fund........................................    236,000
     Provisions:
     1.  The funding appropriated in this
         item is limited to the amount
         specified in Section 17.00. These
         funds are     to be used in support
         of compliance activities related to
         the federal Health Insurance
         Portability and Accountability Act
         (HIPAA) of 1996.


1920-001-0835--For support of State
Teachers' Retirement System, payable from
the State Teachers' Retirement Fund....... 134,143,000
    Schedule:
    (1)   10-Services to
          Members and
          Employers...........  134,545,000
    (2)   Reimbursements......     -339,000
    (3)   Amount payable from
          the Supplemental
          Benefit Maintenance
          Account in the
          Teachers'
          Retirement Fund
          pursuant to Section
          22954 of the
          Education Code......      -63,000
    Provisions:
    1.    This item shall not be subject
          to the requirements of
          subdivision (b), (c), (d), or
          (e) of Section 31.00. Nothing in
          this provision shall be
          construed as exempting this item
          from requirements of the State
          Civil Service Act or from
          requirements of laws, rules, and
          regulations administered by the
          Department of Personnel
          Administration.
    2.    Commencing July 1, 2006, reports
          on information technology
          projects that are submitted to
          the Teachers' Retirement Board
          shall be submitted to the Joint
          Legislative     Budget
          Committee, the fiscal committees
          of the Legislature, and the
          Office of the Chief Information
          Officer on an informational
          basis. The information submitted
          to the Office of the Chief
          Information Officer shall be in
          sufficient detail to be useful
          for the Chief Information
          Officer informational project
          status reporting purposes.


1920-002-0835--For support of State
Teachers' Retirement System (external
investment advisers), payable from the
State Teachers' Retirement Fund.......... (104,726,000)
     Provisions:
     1.    The amount displayed in this
           item is for informational
           purposes only, and is based
           on the current estimate by the
           State Teachers' Retirement
           System (STRS) of expenditures
           for external investment
           advisers to be made during the
           2007-08 fiscal year pursuant
           to Section 22353 of the
           Education Code. STRS shall
           report to the fiscal
           committees of each house of
           the Legislature and the Joint
           Legislative Budget Committee
           no later than January 10,
           2008, regarding any revision
           of this estimate, including an
           accounting and explanation of
           the changes, and regarding the
           amount of, and basis for,
           investment adviser
           expenditures proposed for the
           2008-09 fiscal year. STRS
           shall report on or before
           January 10, 2009, on the final
           expenditures under this item,
           including an accounting and
           explanation of changes from
           estimates previously reported
           to the Legislature.
     2.    Each of the two reports
           described in Provision 1 also
           shall include     all of the
           following:
           (a)    A summary and
                  comparison of the
                  externally managed
                  portfolios, the
                  internally managed
                  portfolios, and the
                  total fund. This
                  information shall
                  include the value of
                  the assets, the gross
                  and net returns, the
                  benchmark returns, and
                  the costs by dollars
                  and basis points for
                  these portfolios.
           (b)    A description of the
                  actions the State
                  Teachers' Retirement
                  System will take to
                  ensure that any future
                  expenditures for
                  outside advisers will
                  result in a greater
                  return on investments,
                  including costs for
                  these advisers, than if
                  in-house advisers were
                  used.
           (c)    Separate listings of
                  adviser contracts in
                  effect, and approved,
                  during the 2006-07 and
                  2007-08 fiscal years,
                  with (1) amounts (total
                  contract and annual
                  basis) for each
                  contract for base fees
                  and performance-based
                  fees and (2) summary
                  statements of the
                  purposes of each
                  contract.


1920-011-0001--For transfer by the
Controller to the State Teachers'
Retirement Fund......................... (1,122,917,000)
    Schedule:
    (1)  Supplemental
         Benefit Maintenance  (621,501,00
         Account (SBMA)......          0)
    (2)  Benefits Funding.... (501,416,00
                                       0)
    Provisions:
    1.   The estimated amount referenced
         in Schedule (1) is the state's
         contribution required by
         Section 22954 of the Education
         Code.
    2.   The estimated amount referenced
         in Schedule (2) is the state's
         contribution required by
         subdivisions (a) and (b) of
         Section 22955 of the Education
         Code.


1920-490--Reappropriation, State Teachers'
Retirement System (STRS). Up to $3,476,000 of
the balance as of June 30, 2007, of the
appropriation identified in the following
citation is reappropriated, subject to the
limitations set forth in Provision 1, and
shall be available for encumbrance or
expenditure until June 30, 2008. Any amount of
this reappropriation that is not expended in
the 2007-08 fiscal year shall be carried over
to the 2008-09 fiscal year and is hereby
reappropriated. In no event shall the total
amounts reappropriated for the 2008-09 Budget
exceed 3 percent of the STRS 2007-08
appropriation for Item 1920-001-0835.
     0835--Teachers' Retirement Fund
     (1) Item 1920-001-0835, Budget Act of 2006
         (Chs. 47 and 48, Stats. 2006)
     Provisions:
     1.  The funds reappropriated in this item
         shall be available for expenditure by
         the State Teachers' Retirement System
         for the purposes of meeting
         unanticipated system costs and
         promoting better service to the
         system's membership. The funds may not
         be encumbered without advance approval
         of the State Teachers' Retirement
         Board. The board shall report to the
         Legislature on a quarterly basis
         throughout the 2007-08 fiscal year on
         expenditures made pursuant to this
         item.


1955-001-9730--For support of Department
of Technology Services, payable from the
Department of Technology Services
Revolving Fund............................ 259,731,000
    Schedule:
    (1)   10-Administration
          of Technology
          Services............  259,731,000
    Provisions:
    1.    Notwithstanding any other
          provision of law, the Director
          of Finance may authorize
          expenditures for the Department
          of Technology Services in excess
          of the amount appropriated not
          sooner than 30 days after
          notification in writing of the
          necessity therefor is provided
          to the chairpersons of the
          fiscal committees in each house
          of the Legislature and the
          Chairperson of the Joint
          Legislative Budget Committee, or
          not sooner than whatever lesser
          time the chairperson of the
          joint committee, or his or her
          designee, may in each
          instance determine.
    2.    Expenditure authority provided
          in this item to support data
          center infrastructure projects
          may not be utilized for items
          outside the approved project
          scope. In addition, the
          Department of Technology
          Services shall report to the
          Office of the Chief Information
          Officer actual expenditures
          associated with the projects
          when purchase agreements have
          been executed. Changes in
          project scope must receive
          approval using the established
          administrative and legislative
          reporting requirements.

       BUSINESS, TRANSPORTATION AND HOUSING


2100-001-3036--For support of Department of
Alcoholic Beverage Control, payable from the
Alcohol Beverage Control Fund................. 48,988,000
     Schedule:
     (1)   10.10-Licensing........   27,182,000
     (2)   10.20-Compliance.......   22,853,000
     (3)   10.30.010-
           Administration.........    4,022,000
     (4)   10.30.020-Distributed
           Administration.........   -4,022,000
     (5)   Reimbursements.........   -1,047,000


2100-101-3036--For local assistance,
Department of Alcoholic Beverage Control,
Program 10.20-Compliance, for grants to
local law enforcement agencies, payable
from the Alcohol Beverage Control Fund......  3,000,000
     Provisions:
     1.  Notwithstanding any other provision
         of law, the Department of Alcoholic
         Beverage Control is authorized to
         grant funds to local law
         enforcement agencies for the
         purpose of enhancing enforcement of
         alcoholic beverage control laws in
         the local jurisdiction.
     2.  Notwithstanding any other provision
         of law, at the discretion of the
         Director of Alcoholic Beverage
         Control, the department may advance
         grant funds to local law
         enforcement agencies.
     3.  Notwithstanding any other provision
         of law, at the discretion of the
         Director of Alcoholic Beverage
         Control, title to any authorized
         equipment purchased by the local
         law enforcement agency pursuant to
         the grant may be vested in the
         local law enforcement agency     at
         the conclusion of the grant period.


2100-495--Reversion, Department of Alcoholic
Beverage Control. As of June 30, 2007, the
amounts specified below of the appropriation
provided for in the following citation shall
revert to the balance of the fund from which
the appropriation was made:
     3036--Alcohol Beverage Control Fund
     (1) Item 2100-001-3036, Budget Act of
         2006 (Ch. 47, Stats. 2006)
         (1) 10.10-Licensing........   792,000
         (2) 10.20-Compliance.......   732,000


2120-001-0117--For support of Alcoholic
Beverage Control Appeals Board, Program
10, payable from the Alcoholic Beverage
Control Appeals Fund......................   1,044,000


2150-001-0240--For support of Department
of Financial Institutions, for payment to
Item 2150-001-0298, payable from the
Local Agency Deposit Security Fund........     395,000


2150-001-0298--For support of Department of
Financial Institutions, payable from the
Financial Institutions Fund.................. 22,633,000
     Schedule:
     (1)    10-Licensing and
            Supervision of
            Banks and Trust
            Companies.............  20,088,000
     (2)    20-Special Licensees..   1,906,000
     (3)    40-Administration of
            Local Agency Security.     395,000
     (4)    50-Supervision of
            California Business
            and Industrial
            Development
            Corporations..........      32,000
     (5)    60-Credit Unions......   4,705,000
     (6)    70-Savings and Loan...     101,000
     (7)    80-Industrial Banks...   1,106,000
     (8)    90.01-Administration..   5,663,000
     (9)    90.02-Distributed
            Administration........  -5,663,000
     (10)   Reimbursements........    -600,000
     (11)   Amount payable from
            the Local Agency
            Deposit Security Fund
            (Item 2150-001-0240)..    -395,000
     (12)   Amount payable from
            the Credit Union Fund
            (Item 2150-001-0299)..  -4,705,000


2150-001-0299--For support of Department
of Financial Institutions, for payment to
Item 2150-001-0298, payable from the
Credit Union Fund.........................   4,705,000


2180-001-0067--For support of Department of
Corporations, payable from the State
Corporations Fund............................. 37,668,000
     Schedule:
     (1)   10-Investment Program..   19,978,500
     (2)   20-Lender-Fiduciary
           Program................   17,839,500
     (3)   50.01-Administration...    6,087,000
     (4)   50.02-Distributed
           Administration.........   -6,087,000
     (5)   Reimbursements.........     -150,000
     Provisions:
     1.    The amount appropriated in this
           item may include revenues
           derived from the assessment of
           fines and penalties imposed as
           specified in Section 13332.18 of
           the Government Code.


2240-001-0001--For support of Department of
Housing and Community Development............. 5,258,000
    Schedule:
    (1)    10-Codes and Standards
           Program................   29,496,000
    (2)    20-Financial
           Assistance Program.....   20,777,000
    (3)    30-Housing Policy
           Development Program....    2,496,000
    (4)    50.01-Administration...   10,847,000
    (5)    50.02-Distributed
           Administration.........  -10,842,000
    (6)    50.03-Distributed
           Administration of the
           Housing Policy
           Development Program....     -129,000
    (7)    Reimbursements.........   -1,087,000
    (8)    Amount payable from
           the Mobilehome Park
           Revolving Fund (Item
           2240-001-0245).........   -6,054,000
    (9)    Amount payable from
           the Mobilehome Park
           Purchase Fund (Item
           2240-001-0530).........     -568,000
    (10)   Amount payable from
           the Mobilehome-
           Manufactured Home
           Revolving Fund (Item
           2240-001-0648).........  -21,349,000
    (11)   Amount payable from
           the Self-Help Housing
           Fund (Item     2240-
           001-0813)..............     -130,000
    (12)   Amount payable from
           the Federal Trust Fund
           (Item 2240-001-0890)...   -9,545,000
    (13)   Amount payable from
           the Housing
           Rehabilitation Loan
           Fund (Item 2240-001-
           0929)..................   -2,493,000
    (14)   Amount payable from
           the Rental Housing
           Construction Fund
           (Item 2240-001-0938)...     -730,000
    (15)   Amount payable from
           the Predevelopment
           Loan Fund (Item 2240-
           001-0980)..............     -303,000
    (16)   Amount payable from
           the Emergency Housing
           and Assistance Fund
           (Item 2240-001-0985)...     -477,000
    (17)   Amount payable from
           the Jobs-Housing
           Balance Improvement
           Account (Item 2240-001-
           3006)..................     -704,000
    (18)   Amount payable from
           the Building Equity
           and Growth in
           Neighborhoods Fund
           (Item     2240-001-
           6038)..................     -324,000
    (19)   Amount payable from
           the Building Equity
           and Growth in
           Neighborhoods Fund
           (Item 2240-002-6038)...     -388,000
    (21)   Amount payable from
           the Regional Planning,
           Housing and Infill
           Incentive Account,
           Housing and Emergency
           Shelter Trust Fund of
           2006 (Item 2240-001-
           6069)..................   -2,543,000
    (23)   Amount payable from
           the Transit-Oriented
           Development
           Implementation Fund
           (Item 2240-001-9736)...     -692,000
    Provisions:
    1.     Of the amount appropriated in this
           item, $158,000 shall be used to
           continue oversight by the
           Department of Housing and Community
           Development of redevelopment
           agencies and to provide technical
           assistance, in accordance with the
           department's Housing Preservation
           Plan.


2240-001-0245--For support of Department
of Housing and Community Development, for
payment to Item 2240-001-0001, payable
from the Mobilehome Park Revolving Fund...   6,054,000


2240-001-0530--For support of Department
of Housing and Community Development, for
payment to Item 2240-001-0001, payable
from the Mobilehome Park Purchase Fund....     568,000


2240-001-0648--For support of Department
of Housing and Community Development, for
payment to Item 2240-001-0001, payable
from the Mobilehome-Manufactured Home
Revolving Fund............................. 21,349,000
      Provisions:
      1.     Notwithstanding Section 18077
             of the Health and Safety
             Code, or any other provision
             of law, the first $2,388,000
             in revenues collected by the
             Department of Housing and
             Community Development from
             manufactured home license fees
             shall be deposited in the
             Mobilehome-Manufactured Home
             Revolving Fund, and shall be
             available to the department
             for the support, collection,
             administration, and
             enforcement of manufactured
             home license fees.
      2.     Notwithstanding Section
             18077.5 of the Health and
             Safety Code, or any other
             provision of law, the
             Department of Housing and
             Community Development is not
             required to comply with the
             reporting requirement of
             Section 18077.5 of the Health
             and Safety Code.


2240-001-0813--For support of Department
of Housing and Community Development, for
payment to Item 2240-001-0001, payable
from the Self-Help Housing Fund...........     130,000


2240-001-0890--For support of Department
of Housing and Community Development, for
payment to Item 2240-001-0001, payable
from the Federal Trust Fund...............   9,545,000


2240-001-0929--For support of Department
of Housing and Community Development, for
payment to Item 2240-001-0001, payable
from the Housing Rehabilitation Loan Fund.   2,493,000


2240-001-0938--For support of Department
of Housing and Community Development, for
payment to Item 2240-001-0001, payable
from the Rental Housing Construction Fund.     730,000


2240-001-0980--For support of Department
of Housing and Community Development, for
payment to Item 2240-001-0001, payable
from the Predevelopment Loan Fund.........     303,000


2240-001-0985--For support of Department
of Housing and Community Development, for
payment to Item 2240-001-0001, payable
from the Emergency Housing and Assistance
Fund......................................     477,000


2240-001-3006--For support of Department
of Housing and Community Development, for
payment to Item 2240-001-0001, payable
from the Jobs-Housing Balance Improvement
Account...................................     704,000


2240-001-6038--For support of Department
of Housing and Community Development, for
payment to Item 2240-001-0001, payable
from the Building Equity and Growth in
Neighborhoods Fund........................     324,000


2240-001-6069--For support of Department
of Housing and Community Development, for
payment to Item 2240-001-0001, payable
from the Regional Planning, Housing and
Infill Incentive Account, Housing and
Emergency Shelter Trust Fund of 2006......   2,543,000


2240-001-9736--For support of Department
of Housing and Community Development, for
payment to Item 2240-001-0001, payable
from the Transit-Oriented Development
Implementation Fund.......................     692,000


2240-002-6038--For support of Department
of Housing and Community Development, for
payment to Item 2240-001-0001, payable
from the Building Equity and Growth in
Neighborhoods Fund........................     388,000


2240-101-0001--For local assistance,
Department of Housing and Community
Development................................... 6,316,000
    Schedule:
    (1)   20-Financial
          Assistance Program.....   171,316,000
    (2)   Amount payable from
          the Federal Trust Fund
          (Item 2240-101-0890)...  -165,000,000
    Provisions:
    1.    Of the funds appropriated by
          Schedule (1) of this item, the
          Department of Housing and Community
          Development shall allocate $500,000
          for     priority repairs,
          maintenance, and equipment for
          Office of Migrant Services
          facilities.


2240-101-0890--For local assistance,
Department of Housing and Community
Development, for payment to Item 2240-101-
0001, payable from the Federal Trust Fund.. 165,000,000
      Provisions:
      1.     Notwithstanding any other
             provision of law, federal
             funds appropriated by     this
             item but not encumbered or
             expended by June 30, 2008, may
             be expended in the subsequent
             fiscal year.


2240-101-3006--For local assistance,
Department of Housing and Community
Development, payable from the Jobs-
Housing Balance Improvement Account.......  23,000,000


2240-101-6069--For local assistance,
Department of Housing and Community
Development, payable from the Regional
Planning, Housing and Infill Incentive
Account.................................... 300,000,000
      Provisions:
      1.     Notwithstanding Section
             16304.1 of the Government
             Code, funds     appropriated
             in this item shall be
             available for liquidation of
             encumbrances until June 30,
             2012.


2240-101-9736--For local assistance,
Department of Housing and Community
Development, payable from the Transit-
Oriented Development Implementation Fund... 95,000,000
      Provisions:
      1.     Notwithstanding Section
             16304.1 of the Government
             Code, funds appropriated in
             this item shall be available
             for liquidation of
             encumbrances until June 30,
             2012.


2240-102-6038--For local assistance,
Department of Housing and Community
Development, payable from the Building
Equity and Growth in Neighborhoods Fund.... 40,000,000
      Provisions:
      1.     Notwithstanding Section
             16304.1 of the Government
             Code, funds appropriated in
             this item shall be available
             for liquidation of
             encumbrances until June 30,
             2012.


2240-105-0001--For transfer, as an
expenditure, upon order of the Director of
Finance, to the Emergency Housing and
Assistance Fund.............................  4,000,000
     Provisions:
     1.  The amount transferred in this item
         to the Emergency Housing and
         Assistance Fund shall be
         distributed     pursuant to Chapter
         11.5 (commencing with Section
         50800) of Part 2 of Division 31 of
         the Health and Safety Code for
         operating facilities and capital
         development grants.
     2.  Grants shall not be used to
         supplant existing emergency shelter
         or transitional housing funding.
         Notwithstanding any regulatory
         provision to the contrary,
         operating facilities grants shall
         not exceed $100,000 nor be less
         than $30,000. For counties with an
         allocation of greater than $30,000,
         one grant of less than $30,000 may
         be awarded if necessary to fully
         utilize the county's allocation.
         For counties with an allocation of
         up to or equal to $30,000, up to
         two grants of less than $30,000 may
         be awarded.


2310-001-0400--For support of Office of Real
Estate Appraisers, payable from the Real
Estate Appraisers Regulation Fund............. 4,149,000
     Schedule:
     (1) 10-Administration of Real
         Estate Appraisers Program... 4,229,000
     (2) Reimbursements..............   -80,000


2320-001-0317--For support of Department of
Real Estate, payable from the Real Estate

Fund.......................................... 46,169,000
     Schedule:
     (1)   10-Licensing and
           Education..............   11,521,000
     (2)   20-Enforcement and
           Recovery...............   27,901,000
     (3)   30-Subdivisions........    6,997,000
     (4)   40.10-Administration...    8,177,000
     (5)   40.20-Distributed
           Administration.........   -7,992,000
     (6)   Reimbursements.........     -435,000
     Provisions:
     1.    Of the amount appropriated in this
           item, $500,000 shall be used only
           for the purposes of the Real Estate
           Recovery Account.
     2.    The Department of Real Estate
           shall, by January 10, 2008, report
           to the chairperson of the budget
           committee of each house of the
           Legislature and to the Legislative
           Analyst's Office all of the
           following: (a) actual workload data
           for the 2005-06 and 2006-07 fiscal
           years compared to the workload
           projected by the department in
           February 2006; (b) projected
           workload data for the 2007-08
           and 2008-09 fiscal years; and (c)
           any staffing and funding changes
           requested based on (a) and (b).
           Workload data shall include, at a
           minimum, the total number of
           licensees; the number of onsite and
           offsite exams scheduled; the number
           of licenses issued; the number of
           enforcement cases assigned; the
           number of audits performed; the
           number of Subdivision Program
           filings; and the number of legal
           actions filed.


2400-001-0933--For support of Department of
Managed Health Care, payable from the Managed
Care Fund..................................... 40,853,000
     Schedule:
     (1)   30-Health Plan Program.   41,060,000
     (2)   50.01-Administration...    9,835,000
     (3)   50.02-Distributed
           Administration.........   -9,835,000
     (4)   Reimbursements.........     -207,000
     Provisions:
     1.    The amount appropriated in this
           item may include revenues derived
           from the assessment of fines and
           penalties imposed as specified in
           Section 13332.18 of the Government
           Code.


2400-002-0933--For support of Department
of Managed Health Care, for the Office of
Patient Advocate, payable from the
Managed Care Fund.........................   2,394,000


2600-001-0042--For support of California
Transportation Commission, for payment to
Item 2600-001-0046, payable from the
State Highway Account, State
Transportation Fund.......................     700,000


2600-001-0046--For support of California
Transportation Commission, payable from the
Public Transportation Account, State
Transportation Fund............................. 1,261,000
     Schedule:
     (1)     10-Administration of
             California
             Transportation
             Commission..............   3,291,000
     (2)     Reimbursements..........    -457,000
     (3)     Amount payable from the
             State Highway Account,
             State Transportation
             Fund (Item 2600-001-
             0042)...................    -700,000
     (4)     Amount payable from the
             Corridor Mobility
             Improvement Account,
             Highway Safety, Traffic
             Reduction, Air Quality,
             and Port Security Fund
             of 2006 (Item 2600-001-
             6055)...................    -194,000
     (5)     Amount payable from the
             Trade Corridors
             Improvement Fund (Item
             2600-001-6056)..........     -95,000
     (6)     Amount payable from the
             Transportation
             Facilities Account,
             Highway Safety, Traffic
             Reduction, Air Quality,
             and Port Security Fund
             of 2006 (Item 2600-001-
             6058)...................    -220,000
     (7)     Amount payable from the
             Public Transportation
             Modernization,
             Improvement, and
             Service Enhancement
             Account, Highway
             Safety, Traffic
             Reduction, Air Quality,
             and Port Security Fund
             of 2006 (Item 2600-001-
             6059)...................     -50,000
     (8)     Amount payable from the
             State-Local Partnership
             Program Account,
             Highway Safety, Traffic
             Reduction, Air Quality,
             and Port Security Fund
             of 2006 (Item 2600-001-
             6060)...................    -111,000
     (9)     Amount payable from the
             Local Bridge Seismic
             Retrofit Account,
             Highway Safety, Traffic
             Reduction, Air Quality,
             and Port Security Fund
             of 2006 (Item 2600-001-
             6062)...................     -12,000
     (10)    Amount payable from the
             Highway-Railroad
             Crossing Safety
             Account, Highway
             Safety, Traffic
             Reduction, Air Quality,
             and Port Security Fund
             of 2006 (Item 2600-001-
             6063)...................     -40,000
     (11)    Amount payable from the
             Highway Safety,
             Rehabilitation, and
             Preservation Account,
             Highway Safety, Traffic
             Reduction, Air Quality,
             and Port Security Fund
             of 2006 (Item 2600-001-
             6064)...................    -111,000
     (12)    Amount payable from the
             Local Streets and Road
             Improvement, Congestion
             Relief, and Traffic
             Safety Account of 2006,
             Highway Safety, Traffic
             Reduction, Air Quality,
             and Port Security Fund
             of 2006 (Item 2600-001-
             6065)...................     -40,000
     Provisions:
     1.      Upon order of the Director of
             Finance, funds may be transferred
             between Items 2600-001-6055, 2600-
             001-6056, 2600-001-6058, 2600-001-
             6059, 2600-001-6060, 2600-001-6062,
             2600-001-6063, 2600-001-6064, and
             2600-001-6065 in order to meet
             program oversight needs as programs
             proceed through the implementation
             process.


2600-001-6055--For support of California
Transportation Commission, for payment to Item
2600-001-0046, payable from the Corridor
Mobility Improvement Account, Highway Safety,
Traffic Reduction, Air Quality, and Port
Security Fund of 2006..........................    194,000
     Provisions:
     1.  Provision 1 of Item 2600-001-0046 also
         applies to this item.


2600-001-6056--For support of California
Transportation Commission, for payment to Item
2600-001-0046, payable from the Trade
Corridors Improvement Fund.....................     95,000
     Provisions:
     1.  Provision 1 of Item 2600-001-0046 also
         applies to this item.


2600-001-6058--For support of California
Transportation Commission, for payment to Item
2600-001-0046, payable from the Transportation
Facilities Account, Highway Safety, Traffic
Reduction, Air Quality, and Port Security Fund
of 2006........................................    220,000
     Provisions:
     1.  Provision 1 of Item 2600-001-0046 also
         applies to this item.


2600-001-6059--For support of California
Transportation Commission, for payment to Item
2600-001-0046, payable from the Public
Transportation Modernization, Improvement, and
Service Enhancement Account, Highway Safety,
Traffic Reduction, Air Quality, and Port
Security Fund of 2006..........................     50,000
     Provisions:
     1.  Provision 1 of Item 2600-001-0046 also
         applies to this item.


2600-001-6060--For support of California
Transportation Commission, for payment to Item
2600-001-0046, payable from the State-Local
Partnership Program Account, Highway Safety,
Traffic Reduction, Air Quality, and Port
Security Fund of 2006..........................    111,000
     Provisions:
     1.  Provision 1 of Item 2600-001-0046 also
         applies to this item.


2600-001-6062--For support of California
Transportation Commission, for payment to Item
2600-001-0046, from the Local Bridge Seismic
Retrofit Account, Highway Safety, Traffic
Reduction, Air Quality, and Port Security Fund
of 2006........................................     12,000
     Provisions:
     1.  Provision 1 of Item 2600-001-0046 also
         applies to this item.


2600-001-6063--For support of California
Transportation Commission, for payment to Item
2600-001-0046, payable from Highway-Railroad
Crossing Safety Account, Highway Safety,
Traffic Reduction, Air Quality, and Port
Security Fund of 2006..........................     40,000
     Provisions:
     1.  Provision 1 of Item 2600-001-0046 also
         applies to this item.


2600-001-6064--For support of California
Transportation Commission, for payment to Item
2600-001-0046, payable from the Highway
Safety, Rehabilitation, and Preservation
Account, Highway Safety, Traffic Reduction,
Air Quality, and Port Security Fund of 2006....    111,000
     Provisions:
     1.  Provision 1 of Item 2600-001-0046 also
         applies to this item.


2600-001-6065--For support of California
Transportation Commission, for payment to Item
2600-001-0046, payable from the Local Streets
and Road Improvement, Congestion Relief, and
Traffic Safety Account of 2006, Highway
Safety, Traffic Reduction, Air Quality, and
Port Security Fund of 2006.....................     40,000
     Provisions:
     1.  Provision 1 of Item 2600-001-0046 also
         applies to this     item.


2600-402--Before allocating projects in
the 2007-08 fiscal year that would result
in the issuance of notes pursuant to
Section 14553 of the Government Code
exceeding $800,000,000, the California
Transportation Commission shall consult
with the Business, Transportation and
Housing Agency, the Department of
Transportation, and the Department of
Finance pursuant to Section 14553.8 of
the Government Code to consider and
determine the appropriateness of the
mechanism authorized by Section 14553 of
the Government Code in comparison to
other funding mechanisms, and to
determine and report to the Governor and
the Legislature the effect of issuance of
the notes on future federal funding
commitments. Allocations     exceeding
$800,000,000 shall not be made prior to
providing 60 days' notice to the
chairpersons of the transportation
committees of each house and the
Chairperson of the Joint Legislative
Budget Committee.


2640-104-6059--For local assistance, State
Transit Assistance, for allocation by the
Controller pursuant to Sections 99313 and
99314 of the Public Utilities Code,
payable from the Public Transportation
Modernization, Improvement, and Service
Enhancement Account, Highway Safety,
Traffic Reduction, Air Quality, and Port
Security Fund of 2006...................... 600,000,000
      Provisions:
      1.     Notwithstanding Sections 99313
             and 99314 of the Public
             Utilities Code, not more than
             $140,454 of the amount
             appropriated in this item
             shall reimburse the Controller
             for expenditures for
             administration of local
             transportation assistance
             funds.
      2.     Projects eligible for funding
             from this item shall be
             allocated by the California
             Transportation Commission and
             shall be available for
             allocation until June 30,
             2010, and available for
             encumbrance and liquidation
             until June 30, 2013.


2660-001-0041--For support of Department
of Transportation, for payment to Item
2660-001-0042, payable from the
Aeronautics Account, State Transportation
Fund......................................   3,374,000


2660-001-0042--For support of Department
of Transportation, payable from the State
Highway Account, State Transportation
Fund...................................... 2,604,048,000
    Schedule:
    (1)    10-Aeronautics......   3,436,000
    (2)    20.10-Highway
           Transportation-
           -Capital Outlay      1,610,517,0
           Support.............          00
    (3)    20.30-Highway
           Transportation--
           Local Assistance....  41,393,000
    (4)    20.40-Highway
           Transportation--
           Program Development.  75,198,000
    (5)    20.65-Highway
           Transportation--
           Legal...............  78,337,000
    (6)    20.70-Highway
           Transportation--
           Operations.......... 187,143,000
    (7)    20.80-Highway
           Transportation-      1,130,082,0
           -Maintenance........          00
    (8)    30-Mass
           Transportation...... 124,813,000
    (9)    40-Transportation
           Planning............ 104,337,000
    (10)   50.00-
           Administration...... 376,498,000
    (11)   60.10-Equipment
           Service Program
           Costs............... 179,942,000
    (11.5) 60.20-Distributed
           Equipment Service    -179,942,00
           Program Costs.......           0
    (12)   Reimbursements...... -328,261,00
                                          0
    (13)   Amount payable from
           the Aeronautics
           Account, State
           Transportation Fund
           (Item 2660-001-
           0041)...............  -3,374,000
    (14)   Amount payable from
           the Bicycle
           Transportation
           Account, State
           Transportation Fund
           (Item 2660-001-
           0045)...............     -10,000
    (15)   Amount payable from
           the Public
           Transportation
           Account, State
           Transportation Fund
           (Item     2660-001-  -142,503,00
           0046)...............           0
    (16)   Amount payable from
           the Historic
           Property
           Maintenance Fund
           (Item 2660-001-
           0365)...............  -1,557,000
    (16.5) Amount payable from
           the Seismic
           Retrofit Bond Fund
           of 1996 (Section
           8879.3 of the
           Government Code)....    -593,000
    (17)   Amount payable from
           the Federal Trust
           Fund (Item 2660-001- -529,838,00
           0890)...............           0
    (18)   Amount payable from
           the Transportation
           Financing
           Subaccount, State
           Highway Account,
           State
           Transportation Fund
           (Item 2660-001-
           6801)............... -11,066,000
    (19)   Amount payable from
           the Highway Safety,
           Traffic Reduction,
           Air Quality, and
           Port Security Fund
           of 2006 (Item 2660-
           004-6053)...........  -8,281,000
    (21)   Amount payable from
           the Corridor
           Mobility
           Improvement
           Account, Highway
           Safety, Traffic
           Reduction, Air
           Quality, and Port
           Security Fund of
           2006 (Item 2660-004-
           6055)............... -14,085,000
    (22)   Amount payable from
           the Trade Corridors
           Improvement Fund
           (Item 2660-004-
           6056)...............  -1,427,000
    (23)   Amount payable from
           the Transportation
           Facilities Account,
           Highway Safety,
           Traffic Reduction,
           Air Quality, and
           Port Security Fund
           of 2006 (Item 2660-
           004-6058)........... -63,188,000
    (24)   Amount payable from
           the Public
           Transportation
           Modernization,
           Improvement, and
           Service Enhancement
           Account, Highway
           Safety, Traffic
           Reduction, Air
           Quality, and Port
           Security Fund of
           2006 (Item 2660-004-
           6059)...............  -1,047,000
    (25)   Amount payable from
           the State-Local
           Partnership Program
           Account, Highway
           Safety, Traffic
           Reduction, Air
           Quality, and Port
           Security Fund of
           2006 (Item 2660-004-
           6060)...............    -653,000
    (26)   Amount payable from
           the Local Bridge
           Seismic Retrofit
           Account, Highway
           Safety, Traffic
           Reduction, Air
           Quality, and Port
           Security Fund of
           2006 (Item 2660-004-
           6062)...............     -86,000
    (27)   Amount payable from
           the Highway-
           Railroad Crossing
           Safety Account,
           Highway Safety,
           Traffic Reduction,
           Air Quality, and
           Port Security Fund
           of 2006 (Item 2660-
           004-6063)...........    -547,000
    (28)   Amount payable from
           the Highway Safety,
           Rehabilitation, and
           Preservation
           Account, Highway
           Safety, Traffic
           Reduction, Air
           Quality, and Port
           Security Fund of
           2006 (Item 2660-004-
           6064)............... -21,190,000
    Provisions:
    1.     For purposes of the funds
           appropriated in Schedules (2)
           to (7), inclusive, Program 20-
           -Highway Transportation, upon
           approval of the Department of
           Finance, the Department of
           Transportation shall notify the
           chairpersons of the fiscal
           committees of both houses of
           the Legislature and the
           Chairperson of the Joint
           Legislative Budget Committee at
           least 20 days prior to spending
           funds to expand activities
           above budgeted levels or to
           implement a new activity not
           identified in this act,
           including any of those
           expenditures to be funded
           through a transfer of moneys
           from other expenditure
           categories or programs, except
           in the case of emergency work
           increases caused by fire, snow,
           storm, or earth movement damage.
    2.     From funds appropriated in this
           item, the Department of
           Transportation may enter into
           interagency agreements with the
           Department of the California
           Highway Patrol to compensate
           that department for the cost of
           work performed by patrol
           officers at or near state
           highway construction projects
           so as to reduce the risk of
           occurrence of serious motor
           vehicle accidents.
    3.     Notwithstanding any other
           provision of law, funds
           appropriated in this item from
           the State Highway Account may
           be reduced and replaced by an
           equivalent amount of federal
           funds determined by the
           Department of Transportation to
           be available and necessary to
           comply with Section 8.50 and
           the most effective management
           of state transportation
           resources.     Not more than 30
           days after replacing the state
           funds with federal funds, the
           Director of Finance shall
           notify in writing the
           chairpersons of the committees
           in each house of the
           Legislature that consider
           appropriations and the
           Chairperson of the Joint
           Legislative Budget Committee of
           this action.
    4.     Notwithstanding any other
           provision of law, funding
           appropriated in this item may
           be transferred to Item 2660-005-
           0042 to pay for any necessary
           insurance, debt service, and
           other financing-related
           expenditures for Department of
           Transportation-owned office
           buildings. Any transfer will
           require the prior approval of
           the Department of Finance.
    5.     The funds     appropriated in
           Schedule (2) for external
           consultant and professional
           services related to project
           delivery (also known as 232
           contracts) that are
           unencumbered or encumbered but
           unexpended related to work that
           will not be performed during
           the fiscal year shall revert to
           the fund from which they were
           appropriated.
    6.     Notwithstanding any other
           provision of law, funds
           appropriated in this item may
           be supplemented with federal
           funding appropriation authority
           and with prior fiscal year
           State Highway Account
           appropriation balances at a
           level determined by the
           Department of Transportation as
           required to process claims
           utilizing federal advance
           construction through the plan
           of financial adjustment process
           pursuant to Sections 11251 and
           16365 of the Government Code.
    7.     Of the funds appropriated in
           Schedule (7), $588,000 is for
           the maintenance of the new
           Route 125 toll road in San
           Diego County. This full amount
           shall not be available for
           expenditure until the
           Department of Transportation
           has entered into a contract
           with the contractor for the
           year in which funds are to be
           expended.
    8.     Notwithstanding any other
           provision of law, funds
           appropriated in Item 2660-001-
           0042, 50.00-Administration from
           the State Highway Account, may
           be reduced and replaced by an
           equivalent amount of
           Reimbursements funds determined
           by the Department of
           Transportation to be available
           and necessary to comply with
           Section 28.50 and the most
           effective management of state
           transportation resources. The
           Reimbursements Account may also
           be reduced     and replaced by
           an equivalent amount of funds
           from the State Highway Account.
           Not more than 30 days after
           replacing the State Highway
           Account funds with
           Reimbursements funds and vice
           versa, the Director of Finance
           shall notify in writing the
           chairpersons of the committees
           in each house of the
           Legislature that consider
           appropriations and the
           Chairperson of the Joint
           Legislative Budget Committee of
           this action.
    9.     Not more than $1,400,000
           appropriated in this item is
           available for support of the
           Department of Transportation's
           Owner Controlled Insurance
           Program to administer insurance
           coverage for contractors on
           projects with combined total
           costs not to exceed
           $750,000,000.
    10.    Of the funds appropriated in
           this item, $214,000,000 is for
           major maintenance contracts for
           the preservation of highway
           pavement, and shall not be used
           to supplant any other funding
           that would have been used for
           major pavement maintenance.
    11.    Of the funds appropriated in
           Schedule (5), $48,600,000 is
           for the payment of tort lawsuit
           claims and awards. Any funds
           for that purpose that are
           unencumbered as of April 1,
           2008, may be transferred to
           Item 2660-302-0042. Any
           transfer shall require the
           prior approval of the
           Department of Finance.
    12.    Of the funds appropriated in
           Schedule (7), $7,167,000 shall
           be used to fund expansion of
           the     Department of
           Transportation's 800 MHz Radio
           System in District 10.
    13.    Of the funds appropriated in
           Schedule (2), $1,742,000 shall
           be used to fund 2.0 positions
           and contracts for the
           monitoring of underground
           storage tank sites.
    14.    Of the funds appropriated in
           Schedule (6), $1,200,000 shall
           be used to fund a two-year
           pilot project to test the
           viability of purchasing real-
           time traffic data collected
           from virtual traffic monitoring
           stations.
    15.    Of the funds appropriated in
           Schedules     (6) and (7),
           $11,206,000 shall be used for
           the maintenance, engineering,
           and repair of intelligent
           transportation systems and the
           associated field elements.
    16.    Of the funds appropriated in
           Schedule (8), $6,552,000 shall
           be available to pay for
           increased Amtrak operating
           costs once an agreement is
           signed by both the Department
           of Transportation and the
           Office of State Audits and
           Evaluations in the Department
           of Finance for an audit of the
           Department of Transportation's
           intercity rail program. Phase I
           of this audit, to be completed
           no later than December 31,
           2007, shall include, but not be
           limited to, an accurate measure
           of the daily average and peak
           ridership for each segment of
           Caltrans' intercity rail
           routes, actual existing rail
           equipment availability and
           ridership capacity, train
           schedules, and trainset
           configurations utilized to
           support ridership demand. Phase
           II of this audit, to be
           completed by March 31, 2008,
           shall include, but not be
           limited to, an accurate measure
           of Caltrans' methodology for
           forecasting future ridership
           and rail equipment requirements.
    18.    Of the funds appropriated in
           this item, $125,000 shall be
           used for the reimbursement of
           the Office of State Audits and
           Evaluations within the
           Department of Finance for audit
                                                                  and
consulting services related
           to the Department of
           Transportation's administration
           of the workers' compensation
           system. Upon completion of the
           audit report, the Office of
           State Audits and Evaluations
           shall provide a copy to the
           appropriate fiscal committees
           of the Legislature and the
           Legislative Analyst.
    19.    Notwithstanding Section 183.1
           of the Streets and Highways
           Code, the transfer of revenue
           from the State Highway Account
           in the State Transportation
           Fund to the Public
           Transportation Account in the
           State Transportation Fund,
           described in subdivision (b) of
           that section, is suspended to
           June 30, 2008.


2660-001-0045--For support of Department
of Transportation, for payment to Item
2660-001-0042, payable from the Bicycle
Transportation Account, State
Transportation Fund.......................      10,000


2660-001-0046--For support of Department
of Transportation, for payment to Item
2660-001-0042, payable from the Public
Transportation Account, State
Transportation Fund........................ 142,503,000
      Provisions:
      1.     For Program 30--Mass
             Transportation, $79,690,027
             appropriated     in this item
             is available for intercity
             rail.
      2.     Notwithstanding any other
             provision of law, funds
             appropriated in this item from
             the Public Transportation
             Account may be reduced and
             replaced by an equivalent
             amount of federal funds
             determined by the Department
             of Transportation to be
             available and necessary to
             comply with Section 8.50 and
             the most effective management
             of state transportation
             resources. Not more than 30
             days after replacing the state
             funds with federal funds, the
             Director of Finance shall
             notify in writing the
             chairpersons of the committees
             in each house of the
             Legislature that consider
             appropriations and the
             Chairperson of the Joint
             Legislative Budget Committee
             of this action.
      3.     Of the funds appropriated in
             this item, up to $6,552,000
             shall be available to pay for
             increased Amtrak operating
             costs once an agreement is
             signed by both the Department
             of Transportation and the
             Office of State Audits and
             Evaluations in the Department
             of Finance for an audit of the
             Department of Transportation's
             intercity rail program. Phase
             I of this audit, to be
             completed no later than
             December 31, 2007, shall
             include, but not be limited
             to, an accurate measure of the
             daily average and peak
             ridership for each segment of
             Caltrans' intercity rail
             routes, actual existing rail
             equipment availability and
             ridership capacity, train
             schedules, and trainset
             configurations utilized to
             support ridership demand.
             Phase II of this audit, to be
             completed by March 31, 2008,
             shall include, but not be
             limited to, an accurate
             measure of Caltrans'
             methodology for forecasting
             future ridership and rail
             equipment requirements.


2660-001-0365--For support of Department
of Transportation, for payment to Item
2660-001-0042, payable from the Historic
Property Maintenance Fund.................   1,557,000


2660-001-0890--For support of Department
of Transportation, for payment to Item
2660-001-0042, payable from the Federal
Trust Fund................................. 529,838,000
      Provisions:
      1.     For Program 20--Highway
             Transportation. For purposes
             of Section 163 of the Streets
             and Highways Code,     all
             expenditures from this item
             shall be deemed to be
             expenditures from the State
             Highway Account, State
             Transportation Fund.
      2.     For Program 20--Highway
             Transportation. Federal funds
             may be received from any
             federal source, and shall be
             deposited in the Federal Trust
             Fund. Any federal
             reimbursements shall be
             credited to the account from
             which the expenditures were
             originally made.
      3.     Notwithstanding any other
             provision of law, the Director
             of Finance may augment this
             item with additional federal
             funds in conjunction with an
             equivalent offsetting
             reduction in State Highway
             Account funds in Item 2660-001-
             0042, pursuant to Provision 3
             of that item or Public
             Transportation Account funds
             in Item 2660-001-0046,
             pursuant to Provision 2 of
             that item.


2660-001-3008--For transfer by the
Controller, upon the order of the
Department of Transportation, from the
Transportation Investment Fund to the
State Highway Account, State
Transportation Fund....................... (256,000,000)
      Provisions:
      1.     Funds transferred by this
             item     shall only be used
             for capital outlay support
             expenditures on State
             Transportation Improvement
             Program Projects.


2660-001-6801--For support of Department
of Transportation, for payment to Item
2660-001-0042, payable from the
Transportation Financing Subaccount,
State Highway Account, State
Transportation Fund.......................  11,066,000


2660-002-0042--For support of Department
of Transportation, payable from the State
Highway Account to fund ongoing
administrative costs for Grant
Anticipation Revenue Vehicles.............     600,000


2660-002-3007--For support of Department of
Transportation, payable from the Traffic
Congestion Relief Fund........................ 35,080,000
     Schedule:
     (1)   20.10-Highway
           Transportation-
           -Capital     Outlay
           Support................   34,333,000
     (2)   30-Mass Transportation.      286,000
     (3)   50-Administration......      461,000
     Provisions:
     1.    Notwithstanding any other provision
           of law, if the California
           Transportation Commission allocates
           funds to Traffic Congestion Relief
           Program projects in the 2007-08
           fiscal year, the Director of
           Finance may increase expenditure
           authority in this item for
           additional capital outlay staffing
           directly related to new Traffic
           Congestion Relief Program
           allocations after notifying the
           Chairperson of the Joint
           Legislative Budget Committee and
           the chairpersons of the committees
           in each house of the Legislature
           that consider appropriations not
           later than 30 days prior to the
           effective date of the approval.


2660-004-6053--For support of Department
of Transportation, for payment to Item
2660-001-0042, payable from the Highway
Safety, Traffic Reduction, Air Quality,
and Port Security Fund of 2006............  8,281,000


2660-004-6055--For support of Department
of Transportation, for payment to Item
2660-001-0042, payable from the Corridor
Mobility Improvement Account, Highway
Safety, Traffic Reduction, Air Quality,
and Port Security Fund of 2006............ 14,085,000


2660-004-6056--For support of Department
of Transportation, for payment to Item
2660-001-0042, payable from the Trade
Corridors Improvement Fund................  1,427,000


2660-004-6058--For support of Department
of Transportation, for payment to Item
2660-001-0042, payable from the
Transportation Facilities Account,
Highway Safety, Traffic Reduction, Air
Quality, and Port Security Fund of 2006... 63,188,000


2660-004-6059--For support of Department
of Transportation, for payment to Item
2660-001-0042, payable from the Public
Transportation Modernization,
Improvement, and Service Enhancement
Account, Highway Safety, Traffic
Reduction, Air Quality, and Port Security
Fund of 2006..............................  1,047,000


2660-004-6060--For support of Department
of Transportation, for payment to Item
2660-001-0042, payable from the State-
Local Partnership Program Account,
Highway Safety, Traffic Reduction, Air
Quality, and Port Security Fund of 2006...    653,000


2660-004-6062--For support of Department
of Transportation, for payment to Item
2660-001-0042, payable from the Local
Bridge Seismic Retrofit Account, Highway
Safety, Traffic Reduction, Air Quality,
and Port Security Fund of 2006............     86,000


2660-004-6063--For support of Department
of Transportation, for payment to Item
2660-001-0042, payable from the Highway-
Railroad Crossing Safety Account, Highway
Safety, Traffic Reduction, Air Quality,
and Port Security Fund of 2006............    547,000


2660-004-6064--For support of Department
of Transportation, for payment to Item
2660-001-0042, payable from the Highway
Safety, Rehabilitation, and Preservation
Account, Highway Safety, Traffic
Reduction, Air Quality, and Port Security
Fund of 2006.............................. 21,190,000


2660-005-0042--For support of Department
of Transportation, for building insurance,
debt service, and other financing-related
costs for department-owned office
buildings, payable from the State Highway
Account, State Transportation Fund......... 14,702,000
      Provisions:
      1.     Notwithstanding any other
             provision of law, funds
             provided in Item 2660-001-0042
             may be transferred to this
             item to pay for any necessary
             insurance, debt service, and
             other financing-related costs
             for department-owned office
             buildings. Any transfer shall
             require the prior approval of
             the Department of Finance.
      2.     The Controller shall transfer
             funds appropriated in this
             item according to a schedule
             to be provided by the State
             Public Works Board. The
             schedule shall be provided on
             a monthly basis or as
             otherwise might be needed to
             ensure debt requirements are
             met.
      3.     This item may contain
             adjustments pursuant to
             Section 4.30 that are     not
             currently reflected. Any
             adjustments to this item shall
             be reported to the Joint
             Legislative Budget Committee
             pursuant to Section 4.30.


2660-007-0042--For support of Department of
Transportation, payable from the State
Highway Account, State Transportation Fund.... 92,109,000
     Schedule:
     (1)   20.10-Highway
           Transportation-
           -Capital Outlay
           Support................   44,837,000
     (2)   20.65-Highway
           Transportation--Legal..      640,000
     (3)   20.70-Highway
           Transportation-
           -Operations............    1,055,000
     (4)   20.80-Highway
           Transportation--
           Maintenance............   45,559,000
     (5)   50-Administration......       18,000
     Provisions:
     1.    The funds appropriated in this item
           may be expended only to attain
           compliance with (a) the stormwater
           discharge provisions of the
           National Pollutant Discharge
           Elimination System permits as
           promulgated by the State Water
           Resources Control Board or regional
           water quality control boards, (b)
           the Statewide Storm Water
           Management Plan, (c) as required by
           court order, or (d) any other
           nonproject water or air quality
           related environmental activity that
           protects air quality or the quality
           of receiving waters.
     2.    The funds appropriated in this item
           may be transferred between
           schedules. Any transfer will
           require the prior approval of the
           Department of Finance.


2660-011-0041--For transfer by the
Controller from the Aeronautics Account,
State Transportation Fund, to the Public
Transportation Account, State
Transportation Fund, as prescribed by
Section 21682.5 of the Public Utilities
Code......................................    (30,000)


2660-012-0042--For augmentation for
emergencies relating to a state of
emergency declared by the Governor,
payable from the State Highway Account..... (40,000,000)
      Provisions:
      1.     Required notification to the
             Legislature of appropriations
             pursuant to this item
             shall include, in addition to
             all other required
             information, (a) an estimate
             of federal funds or other
             funds that the department may
             receive for the same purposes
             as the proposed appropriation,
             and (b) explanation of the
             necessity of the proposed
             appropriation given
             anticipated federal funds or
             other funds.
      2.     Funds appropriated in this
             item may be used for support,
             local assistance, or capital
             outlay expenditures.


2660-021-0042--For transfer by the
Controller from the State Highway
Account, State Transportation Fund, to
the Public Transportation Account, State
Transportation Fund, as prescribed by
Section 194 of the Streets and Highways
Code...................................... (22,410,000)


2660-022-0042--For transfer by the
Controller from the State Highway
Account, State Transportation Fund, to
the Environmental Enhancement and
Mitigation Program Fund to be used as
specified in Section 164.56 of the
Streets and Highways Code................. (10,000,000)


2660-101-0042--For local assistance,
Department of Transportation, State
Transportation Improvement Program (STIP),
payable from the State Highway Account,
State Transportation Fund................... 30,000,000
   Schedule:
   (1) 20.30-Highway Transportation-  30,000,
       -Local Assistance.............     000
       (a)  Regional
            Improvements
            ............ (30,000,000)
       (b)  Interregiona
            l
            Improvements
            ............            0
   Provisions:
   1.  Funds appropriated in this item shall
       be available for allocation by the
       California Transportation Commission
       until June 30, 2010, and available
       for encumbrance and liquidation until
       June 30, 2013.
   2.  Notwithstanding any other provision
       of law, funds appropriated in this
       item may be transferred intraschedule
       or to Item 2660-102-0042, 2660-301-
       0042, or 2660-302-0042. These
       transfers shall require the prior
       approval of the Department of
       Finance.
   3.  Notwithstanding any other provision
       of law, funds appropriated in this
       item may be supplemented with federal
       funding appropriation authority and
       with prior year State Highway Account
       appropriation balances at a level
       determined by the Department of
       Transportation as required to process
       claims utilizing federal advance
       construction through the plan of
       financial adjustment process under
       Sections 11251 and 16365 of the
       Government Code.


2660-101-0045--For local assistance,
Department of Transportation, Program 20-
-Highway Transportation, payable from the
Bicycle Transportation Account, State
Transportation Fund.......................   7,200,000


2660-101-0046--For local assistance,
Department of Transportation, payable from
the Public Transportation Account, State
Transportation Fund........................ 562,752,000
      Provisions:
      1.     Funds appropriated in this
             item shall be available for
             allocation by the California
             Transportation Commission
             until June 30, 2010.
      2.     Notwithstanding any other
             provision of law, funds
             appropriated in this item may
             be transferred to Item 2660-
             301-0046. These transfers
             require the prior approval of
             the Department of Finance.


2660-101-0183--For local assistance,
Department of Transportation, Program 20-
Highway Transportation, payable from the
Environmental Enhancement and Mitigation
Program Fund.............................. 10,000,000


2660-101-0890--For local assistance,
Department of Transportation, State
Transportation Improvement Program (STIP),
payable from the Federal Trust Fund......... 70,000,000
   Schedule:
   (1) 20-Highway Transportation..... 70,000,
                                          000
       (a)  Regional
            Improvements
            ............ (70,000,000)
   Provisions:
   1.  For purposes of the Streets and
       Highways Code, all expenditures from
       this     item shall be deemed to be
       expenditures from the State Highway
       Account, State Transportation Fund.
   2.  Federal funds may be received from
       any federal source and shall be
       deposited in the Federal Trust Fund.
       Any federal reimbursements shall be
       credited to the account from which
       the expenditures were originally made.
   3.  Notwithstanding any other provision
       of law, funds appropriated in this
       item may be transferred intraschedule
       or to Item 2660-102-0890, 2660-301-
       0890, or 2660-302-0890. These
       transfers shall require the prior
       approval of the Department of
       Finance. These funds shall be
       available for allocation by the
       California Transportation Commission
       until June     30, 2010.


2660-102-0042--For local assistance,
Department of Transportation, non-State
Transportation Improvement Program (STIP),
payable from the State Highway Account,
State Transportation Fund.................. 112,772,000
   Schedule:
   (1) 20-Highway Transportation... 100,772,
                                         000
       (a)  Regional
            Surface
            Transportat
            ion
            Program     (57,558,000
            Exchange...           )
       (b)  Local       (43,214,000
            Assistance.           )
   (2) 40-Transportation Planning.. 12,000,0
                                          00
   Provisions:
   1.  Funds appropriated in Schedule (1)
       shall be available for allocation by
       the California Transportation
       Commission until June 30, 2010, and
       available for encumbrance and
       liquidation until June     30, 2013.
   2.  Notwithstanding any other provision
       of law, funds appropriated in this
       item may be transferred
       intraschedule or to Item 2660-101-
       0042, 2660-301-0042, or 2660-302-
       0042. These transfers shall require
       the prior approval of the Department
       of Finance.


2660-102-0890--For local assistance,
Department of Transportation, non-State
Transportation Improvement Program
(STIP), payable from the Federal Trust
Fund..................................... 1,427,781,000
    Schedule:
    (1)  20-Highway           1,340,781,00
         Transportation......            0
    (2)  30-Mass
         Transportation......   22,000,000
    (3)  40-Transportation
         Planning............   65,000,000
    Provisions:
    1.   Notwithstanding any other
         provision of law, funds
         appropriated in this item may be
         transferred intraschedule or to
         Item 2660-101-0890, 2660-301-
         0890, or 2660-302-0890. These
         transfers shall require the
         prior approval of the Department
         of Finance. Funds appropriated
         in Schedules (1) and (2) shall
         be available for allocation by
         the California Transportation
         Commission until June 30, 2010.
    2.   For Program 20--Highway
         Transportation. For purposes of
         the Streets and Highways Code,
         all expenditures from this item
         shall be deemed to be
         expenditures from the State
         Highway     Account, State
         Transportation Fund.
    3.   For Program 20--Highway
         Transportation. Federal funds
         may be received from any federal
         source and shall be deposited in
         the Federal Trust Fund. Any
         federal reimbursements shall be
         credited to the account from
         which the expenditures were
         originally made.
    4.   For Program 40--Transportation
         Planning. Of the amount
         appropriated in this item,
         $5,000,000 is for regional
         blueprint planning grants.


2660-104-6053--For local assistance,
Department of Transportation, non-State
Transportation Improvement Program (STIP),
payable from the Highway Safety, Traffic
Reduction, Air Quality, and Port Security
Fund of 2006..................................      1,000
     Schedule:
     (1) 20.30-Highway Transportation-
         -Local Assistance............    1,000
     Provisions:
     1.  These funds shall be available for
         allocation by the California
         Transportation Commission until June
         30, 2010, and available for
         encumbrance and liquidation until
         June 30, 2013.
     2.  Notwithstanding any other provision
         of law, funds appropriated in this
         item may be transferred to Item 2660-
         304-6053. These     transfers shall
         require the prior approval of the
         Department of Finance.


2660-104-6055--For local assistance,
Department of Transportation, non-State
Transportation Improvement Program (STIP),
payable from the Corridor Mobility
Improvement Account, Highway Safety, Traffic
Reduction, Air Quality, and Port Security
Fund of 2006..................................      1,000
     Schedule:
     (1) 20.30-Highway Transportation-
         -Local Assistance............    1,000
     Provisions:
     1.  These funds shall be available for
         allocation by the California
         Transportation Commission until June
         30, 2010, and available for
         encumbrance and liquidation until
         June 30, 2013.
     2.  Notwithstanding any other provision
         of law, funds appropriated in this
         item may be transferred to Item
         2660-304-6055. These transfers shall
         require the prior approval of the
         Department of Finance.


2660-104-6056--For local assistance,
Department of Transportation, non-State
Transportation Improvement Program
(STIP), payable from the Trade Corridors
Improvement Fund.......................... 132,000,000
    Schedule:
    (1)   20.30-Highway
          Transportation-
          -Local
          Assistance..........  132,000,000
    Provisions:
    1.    These funds shall be available
          for allocation by the California
          Transportation Commission until
          June 30, 2010, and available for
          encumbrance and liquidation
          until June 30, 2013.
    2.    Notwithstanding any other
          provision of law, funds
          appropriated in this item may be
          transferred to Item 2660-304-
          6056. These transfers shall
          require the prior approval of
          the Department of Finance.


2660-104-6058--For local assistance,
Department of Transportation, State
Transportation Improvement Program
(STIP), payable from the Transportation
Facilities Account........................ 112,880,000
    Schedule:
    (1)   20.30-Highway
          Transportation-
          -Local
          Assistance..........  112,880,000
    Provisions:
    1.    These funds shall be available
          for allocation by the California
          Transportation Commission until
          June 30, 2010, and available for
          encumbrance and liquidation
          until June 30, 2013.
    2.    Notwithstanding any other
          provision of law, funds
          appropriated in this item may be
          transferred to Item 2660-304-
          6058. These transfers shall
          require the prior approval of
          the Department of Finance.
    5.    Notwithstanding any other
          provision of law, funds
          appropriated in this item may be
          increased by up to $30,780,000
          upon approval of the Department
          of Finance.


2660-104-6059--For local assistance,
Department of Transportation, payable from
the Public Transportation Modernization,
Improvement, and Service Enhancement Account,
Highway Safety, Traffic Reduction, Air
Quality, and Port Security Fund of 2006.......      1,000
     Schedule:
     (1) 20.30-Highway Transportation-
         -Local     Assistance........    1,000
     Provisions:
     1.  These funds shall be available for
         allocation by the California
         Transportation Commission until June
         30, 2010, and available for
         encumbrance and liquidation until
         June 30, 2013.
     2.  Notwithstanding any other provision
         of law, funds appropriated in this
         item may be transferred to Item 2660-
         304-6059. These transfers require the
         prior approval of the Department of
         Finance.
     3.  These funds shall become available
         following both the completion of a
         passenger rail audit and an agreement
         between the Department of Finance and
         Department of Transportation upon a
         projection of ridership that shows a
         need for additional rolling stock.


2660-104-6060--For local assistance,
Department of Transportation, non-State
Transportation Improvement Program
(STIP), payable from the State-Local
Partnership Program Account, Highway
Safety, Traffic Reduction, Air Quality,
and Port Security Fund of 2006............ 200,000,000
      Schedule:
    (1)   20.30-Highway
          Transportation-
          -Local Assistance...  200,000,000
    Provisions:
    1.    These funds shall be available
          for allocation by the California
          Transportation Commission until
          June 30, 2010, and available for
          encumbrance and liquidation
          until June 30, 2013.


2660-104-6062--For local assistance,
Department of Transportation, non-State
Transportation Improvement Program (STIP),
payable from the Local Bridge Seismic
Retrofit Account, Highway Safety, Traffic
Reduction, Air Quality, and Port Security
Fund of 2006................................ 13,500,000
     Schedule:
     (1)   20.30-Highway
           Transportation-
           -Local Assistance....   13,500,000
     Provisions:
     1.    These funds shall be available
           for allocation by the California
           Transportation Commission until
           June 30, 2010, and available for
           encumbrance and liquidation until
           June 30, 2013.
     4.    Notwithstanding any other
           provision of law, funds
           appropriated in this item may be
           increased by up to $2,825,000
           upon approval     of the
           Department of Finance.


2660-104-6063--For local assistance,
Department of Transportation, non-State
Transportation Improvement Program
(STIP), payable from the Highway-Railroad
Crossing Safety Account, Highway Safety,
Traffic Reduction, Air Quality, and Port
Security Fund of 2006..................... 122,499,000
    Schedule:
    (1)   30.10-Mass
          Transportation......  122,499,000
    Provisions:
    1.    These funds shall be available
          for allocation by the California
          Transportation Commission until
          June 30, 2010, and available for
          encumbrance and liquidation
          until June 30, 2013.
    2.    Notwithstanding any other
          provision of law, funds
          appropriated in this item may be
          transferred to     Item 2660-304-
          6063. These transfers shall
          require the prior approval of
          the Department of Finance.


2660-104-6064--For local assistance,
Department of Transportation, non-State
Transportation Improvement Program
(STIP), payable from the Highway Safety,
Rehabilitation and Preservation Account,
Highway Safety, Traffic Reduction, Air
Quality, and Port Security Fund of 2006... 122,500,000
    Schedule:
    (1)   20.30-Highway
          Transportation-
          -Local Assistance...  122,500,000
    Provisions:
    1.    These funds shall be available
          for allocation by the California
          Transportation Commission until
          June 30, 2010, and available for
          encumbrance and liquidation
          until June 30, 2013.
    2.    Notwithstanding any other
          provision of law, funds
          appropriated in this item
          may be transferred to Item 2660-
          304-6064. These transfers shall
          require the prior approval of
          the Department of Finance.
    5.    Notwithstanding any other
          provision of law, funds
          appropriated in this item may be
          increased by up to $30,625,000
          upon approval of the Department
          of Finance.


2660-105-0046--For local assistance,
Department of Transportation, Program 30-
Mass Transportation, payable from the
Public Transportation Account, State
Transportation Fund, for water transit
operations managed through the
Metropolitan Transportation Commission....   2,967,000


2660-301-0042--For capital outlay,
Department of Transportation, State
Transportation Improvement Program (STIP),
payable from the State Highway Account,
State Transportation Fund................... 33,247,000
   Schedule:
   (1) 20-Highway Transportation..... 33,247,
                                          000
       (a)  Regional
            Improvements
            ............ (22,165,000)
       (b)  Interregiona
            l
            Improvements
            ............ (11,082,000)
   Provisions:
   1.  These funds shall be available for
       allocation by the California
       Transportation Commission through the
       2009-10 fiscal year and available for
       encumbrance and liquidation until
       June 30, 2013.
   2.  Notwithstanding any other provision
       of law, funds appropriated in this
       item may be transferred intraschedule
       or to Item 2660-101-0042, 2660-102-
       0042, 2660-302-0042, or 2660-311-
       0042. These transfers shall require
       the prior approval of the Department
       of     Finance.
   3.  Notwithstanding any other provision
       of law, funds appropriated in this
       item may be supplemented with federal
       funding appropriation authority and
       with prior year State Highway Account
       appropriation balances at a level
       determined by the department as
       required to process claims utilizing
       federal advance construction through
       the plan of financial adjustment
       process under Sections 11251 and
       16365 of the Government Code.


2660-301-0046--For capital outlay,
Department of Transportation, payable from
the Public Transportation Account, State      36,400,00
Transportation Fund..........................         0
      Provisions:
      1.      Funds appropriated in this item
              shall be available for
              allocation by the California
              Transportation Commission until
              June 30, 2010.
      2.      Notwithstanding any other
              provision of law, funds
              appropriated in this item may
              be transferred to Item 2660-101-
              0046 with the prior approval of
              the Director of Finance.


2660-301-0890--For capital outlay,
Department of Transportation, State
Transportation Improvement Program (STIP),
payable from the Federal Trust Fund......... 281,753,000
   Schedule:
   (1) 20-Highway Transportation.... 281,753,
                                          000
       (a)  Regional
            Improvement (211,315,000
            s..........            )
       (b)  Interregion
            al
            Improvement
            s.......... (70,438,000)
   Provisions:
   1.  Notwithstanding any other provision
       of law, amounts scheduled in this
       item may be transferred intraschedule
       or to Item 2660-101-0890, 2660-102-
       0890, or 2660-302-0890, upon the
       prior approval of the Department of
       Finance. These funds shall be
       available for allocation by the
       California Transportation Commission
       until June 30, 2010.
   2.  For purposes of the Streets and
       Highways Code, all expenditures from
       this item shall be deemed to be
       expenditures from the State Highway
       Account, State Transportation Fund.
   3.  Federal funds may be received from
       any federal source and shall be
       deposited in the Federal Trust Fund.
       Any federal reimbursements shall be
       credited to the account from which
       the expenditures were originally made.


2660-302-0042--For capital outlay,
Department of Transportation, non-State
Transportation Improvement Program
(STIP), payable from the State Highway
Account, State Transportation Fund....... 980,000,000
  Schedule:
  (1 20-Highway Transportation.. 2,330,000
  )                                   ,000
     (a) State
         Highway
         Operation
         and
         Protection (2,330,000,0
         Program...          00)
  (2 Reimbursements............. -1,350,00
  )                                  0,000
  Provisions:
  1. These funds shall be available for
     allocation by the California
     Transportation Commission until June
     30, 2010, and available for
     encumbrance and liquidation until
     June 30, 2013.
  2. Notwithstanding any other provision
     of law, funds appropriated in this
     item may be transferred to Item 2660-
     101-0042, 2660-102-0042, 2660-301-
     0042, or 2660-311-0042. These
     transfers shall require the prior
     approval of the Department of
     Finance.
  3. The Director of Finance may increase
     this item pursuant to allocations
     made from tribal gaming bond
     revenues no sooner than 30 days
     after written notification of the
     allocation is provided to the
     chairpersons of the fiscal
     committees in each house of the
     Legislature and the Chairperson of
     the Joint Legislative Budget
     Committee, or not sooner than
     whatever lesser time the Chairperson
     of the Joint Legislative Budget
     Committee, or his or her designee,
     may determine.
  4. No funds appropriated in this item
     are available for expenditure on
     specialty building facilities. For
     the purpose of this item, specialty
     building facilities are equipment
     facilities, maintenance facilities,
     material laboratories, and traffic
     management     centers.
  5. The funds appropriated in this item
     include $100,000,000 attributable to
     the tribal gaming revenue collected
     and deposited in the State Highway
     Account pursuant to Section 63048.65
     of the Government Code. These funds
     shall only be available for pavement
     rehabilitation projects programmed
     in the State Highway Operation and
     Protection Program (SHOPP), and
     shall not supplant any other funding
     available for SHOPP. The first
     $100,000,000 of the SHOPP projects
     allocated using the appropriation
     provided by this item shall be
     funded from tribal gaming revenue
     deposited into the State Highway
     Account. The Department of
     Transportation shall m