BILL ANALYSIS                                                                                                                                                                                                    





                                                                  AB 339

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          GOVERNOR'S VETO
          AB 339 (Torres)
          As Amended  April 29, 2009
          2/3 vote



           EDUCATION           10-0        APPROPRIATIONS      16-0    


           
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          |     |Brownley, Nestande,       |Ayes:|De Leon, Nielsen,         |
          |     |Ammiano, Arambula,        |     |Ammiano,                  |
          |     |Carter, Eng, Garrick,     |     |Charles Calderon, Davis,  |
          |     |Miller, Solorio,          |     |Duvall, Fuentes, Hall,    |
          |Ayes:|Torlakson                 |     |Harkey, Miller,           |
          |     |                          |     |John A. Perez, Price,     |
          |     |                          |     |Skinner, Solorio, Audra   |
          |     |                          |     |Strickland, Torlakson     |
           ----------------------------------------------------------------- 



           ASSEMBLY:  73-0 (May 14, 2009)  SENATE:     34-0 (July 9, 2009) 
           
           SUMMARY  :  Requires the State Board of Education (SBE) to include  
          school districts, county offices of education, and other  
          agencies deemed eligible pursuant to state and federal law in  
          any application for federal aid to education, in any allocation  
          of federal funds made pursuant to law, and in any rules and  
          regulations adopted governing the allocation of those funds;  
          also makes findings and declarations regarding the purposes for,  
          the contributions made by, and the treatment of COEs.

           EXISTING LAW  :

          1)Provides base funding by requiring the SPI to make prescribed  
            calculations for the apportionment of state aid to local  
            educational agencies.











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          2)Establishes and funds categorical programs that focus  
            resources and/or compliance requirements on specific classes  
            of students or schools, or on specific uses of funds,  
            identified by the Legislature as priorities.

          3)Authorizes the allocation and apportionment of federal funds  
            to recipients and for uses as specified in federal and state  
            law.

          4)Requires the SBE to make timely application for federal  
            education funds and to direct the allocation of federal funds  
            to local education agencies.

           FISCAL EFFECT  : According to the Senate Appropriations Committee,  
          pursuant to Senate Rule 28.8, negligible state costs.

           COMMENTS  : This bill proposes to require the SBE to include COEs  
          in any application for federal aid to education, in any  
          allocation of federal funds currently made to school districts,  
          and in any rules and regulations adopted governing the  
          allocation of those funds.  This proposal has pointed out  
          inconsistencies in statute. In the code sections amended by this  
          bill, regarding the SBE making applications for federal funds or  
          allocating those funds, there are references to "school  
          districts", "local education agencies", and "local school  
          districts and other agencies entitled to receive federal funds  
          for the support of schools."  These different references do not  
          appear to be related to any substantive difference in the  
          treatment of those agencies in terms of the application for or  
          allocation of federal funds.  Five observations can be made  
          about this issue: i) these terms are used in an ambiguous and  
          interchangeable manner in these sections of code; ii) these code  
          sections exist the context of the authorization of the state's  
          full participation in Federal Programs and Interstate  
          Agreements; iii) the federal government generally focuses  
          education funding on schools and students rather than on school  
          districts, county, or regional education agencies (note that the  
          federal government has to take a one-size-fits-all approach to  
          local education governance, since there are many organizational  
          models across the states); iv) according to the CDE, there are  
          no instances where federal education funds are currently made  










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          available to school districts, but not to COEs, unless there is  
          federal or state statute requiring that differentiation; and v)  
          these sections of the code were enacted by AB 3100 (Greene),  
          Chapter 1010, Statutes of 1976, which implemented a complete  
          revision of the education code and have not been clarified  
          since.  Given these observations, it could be concluded that the  
          proposal made in this bill, to have the students and schools  
          under the administration of COEs included in applications and  
          eligible for the receipt of federal funds, unless specifically  
          excluded, is consistent with the intent of the Legislature as  
          stated in the Education Code sections amended by this bill.   
          Given this conclusion, this bill is of a technical nature in  
          that it would serve to clarify that COEs be considered eligible  
          for federal education funds during application or allocation,  
          unless excluded by statute.

          Effectively, this bill reconciles existing ambiguous and  
          seemingly interchangeable references to "school districts" and  
          "local education agencies" in existing law, and thus clarifies  
          that school districts, county offices of education, and all  
          other educational agencies deemed eligible are required to be  
          considered by the SBE when any application or allocation of  
          federal funds is being made.
           
          GOVERNOR'S VETO MESSAGE  :

          "This bill would redefine 'school districts' to include school  
          districts, county offices of education, and other agencies  
          deemed eligible pursuant to state and federal law, for the  
          purpose of allocating federal education funds. However, in its  
          current form, I am concerned that the bill may have unintended  
          consequences for charter schools and/or other educational  
          agencies currently eligible for these federal funds."




           Analysis Prepared by:     Gerald Shelton / ED. / (916) 319-2087 


                                                                FN: 0002155










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