SB 864 Summary

• Authorizes the Controller, Treasurer, and Director of Finance to implement a cash management plan to address General Fund cash shortages until external borrowing of $3.2 billion or more is secured for the 2010-11 fiscal year.

• Defers specific education payments until specified dates: kindergarten and grades 1-12 October 2010 apportionments by November 15, 2010; categorical payments up to $300 million by November 4, 2010; and California Community Colleges October 2010 apportionments by November 4, 2010.

• Defers Cal Grant payments to University of California by December 10, 2010 and to California State University by December 3, 2010 for July through October 2010.

• Prioritizes repayment of deferred K-12 and community college payments once external borrowing of $3.2 billion or more is secured.

• Modifies the Teachers' Retirement Fund payment schedule for the 2010-11 fiscal year, moving October 15, 2010 transfer to November 15, 2010 and April 15, 2011 transfer to March 14, 2011; takes effect immediately as an urgency statute and expires January 1, 2011.