BILL ANALYSIS
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THIRD READING
Bill No: AB 4XXX
Author: Assembly Budget Committee
Amended: 2/15/08 in Assembly
Vote: 27 - Urgency
WITHOUT REFERENCE TO COMMITTEE OR FILE
SUBJECT : School finance: apportionment: deferral
SOURCE : Author
DIGEST : This bill makes a variety of education-related
budget adjustments to the K-12 schools and community
colleges portions of the 2007-08 Budget Act, as necessary
to achieve mid-year General Fund, Proposition 98 savings.
NOTE: This bill is identical to SB 2XXX.
ANALYSIS : This bill is one of several measures that
address the fiscal emergency declared by the Governor.
This bill makes the following changes to the 2007-08 Budget
Act that are necessary to effectuate $506.8 million in
General Fund, Proposition 98 savings for K-12 schools and
community colleges:
Proposition 98 Savings . Captures $506.8 million in savings
for K-12 schools and community college programs. These
savings reflect excess funds appropriated for the current
budget year and several prior years and do not affect the
CONTINUED
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level of ongoing funding for local programs. In order to
achieve these savings in 2007-08, $295.4 million in savings
for numerous K-12 and community college programs from
several prior years are reappropriated for the Targeted
Instructional Improvement Block Grant and the General Fund
appropriation for this program is reduced by a the same
amount in 2007-08. In addition, the 2007-08 appropriations
for a number of K-12 and community programs are reduced by
$211.4 million to reflect savings that have been identified
for those programs. In total, the $506.8 million in
savings provide an alternative to the $400 million
reduction in K-12 and community college apportionments
proposed by the Governor's January 10 budget.
Payment Deferrals to Address State Cash Shortage . Moves
$1.1 billion in advance revenue limit apportionment
payments for K-12 school districts from July to September
in 2008-09 in order to meet the state's cash needs.
Specifically, school districts would receive 0.9 percent of
their July revenue limit advance apportionment payment
instead of the 6.0 percent provided under current law.
September revenue limit payments would grow by 5.1 percent
above the portions provided in current law. These changes
do not affect August revenue limit payments nor do they
affect categorical payments for school districts per
current law. School districts may be exempted from the
July payment deferral -- subject to approval by the
Director of Finance -- if their county superintendent of
education certifies to the Superintendent of Public
Instruction and the Director of Finance that the deferral
would result in qualifying the district for an emergency
apportionment.
Additional Proposition 98 Reversion Funds for Emergency
Repair Program . Appropriates an additional $100 million in
Proposition 98 Reversion Funds for the Emergency Repair
Program (ERP) in 2007-08 pursuant to current law. This
brings total funding for ERP to $200 million in 2007-08 and
eliminates a budget provision and control section that
would allow additional funds to be appropriated from the
Proposition 98 Reversion Account for ERP in 2007-08.
Proposition 49 . Clarifies the definition of "continuous
appropriation" for the purposes of Proposition 49 (The
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After School Education and Safety Program) to mean that
funds are appropriated on a fiscal year basis and are
available for encumbrance for one year. This definition
conforms to the use of "continuous appropriation" as it
applies to K-12 revenue limit appropriations. This change
clarifies a statutory definition and does not alter the
program as adopted by the voters.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
DLW:cm 2/20/08 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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