| Last Updated: | 1/27/2011 |
| Budget Issue: | Repayment of $10 million loan to the General Fund |
| Program: | Department of Consumer Affairs - Board of Accountancy |
| Finding or Recommendation: | Reject the Governor’s January 2011-12 budget proposal to repay a $10 million loan that was made from the Board of Accountancy to the General Fund in 2010-11. Adopt budget bill language to delay repayment of this loan for one year. Our review of the fund balance at the Board of Accountancy found that reserves are adequate and repayment is unnecessary in 2011-12. Delaying repayment of the loan would help to provide General Fund relief in the budget year. |
Brief Description
The Governor’s January 2011-12 budget proposes to repay a $10 million loan that was made from the Board of Accountancy to the General Fund in 2010-11. Budget bill language in the 2010-11 Budget Act requires repayment of this loan by June 30, 2012.
LAO Recommendation
We recommend the Legislature reject the Governor’s January 2011-12 budget proposal to repay a $10 million loan that was made from the Board of Accountancy to the General Fund in 2010-11. Our review of the fund balance at the Board of Accountancy found that reserves are adequate and repayment of this loan is unnecessary in 2011-12. Delaying repayment of the loan for one year would help to provide General Fund relief in the budget year.
We recommend the Legislature adopt the following budget bill language to delay repayment of the $10 million loan for one year.
The amount loaned pursuant to Item 1110-011-0704 of the Budget Act of 2010 shall not be required to be repaid until June 30,2013.