BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1610
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 1610 (Budget Committee)
          As Amended  October 7, 2010
          2/3 vote.  Urgency 
           
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          |ASSEMBLY:  |     |(April 22,      |SENATE: |28-6 |(October 7,    |
          |           |     |2010)           |        |     |2010)          |
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                    (vote not relevant)

          Original Committee Reference:    BUDGET  

           SUMMARY  :  Provides the necessary statutory changes in the area  
          of education in order to enact modifications to fiscal year (FY)  
          2009-10 and 2010-11 Budget Acts.

           The Senate amendments  delete the Assembly version of the bill,  
          and instead:

           K-12 Provisions:
           

          1)Provide a revenue limit deficit factor of 18.25% to reflect a  
            $133.7 million deficit for county offices of education (COEs)  
            and a revenue limit deficit factor of 17.963% to reflect a  
            deficit of $6.9 billion for school districts. These statutory  
            factors are created to establish state intent to repay the  
            K-12 per-pupil reductions in the future, including foregone  
            cost-of-living adjustments (COLA's). 

          2)Combine the English Language Assistance Program (ELAP) funding  
            with Economic Impact Aid (EIA) funding and repeals the ELAP  
            statute.  Clarifies that local educational agencies (LEAs) may  
            continue using this funding for English language professional  
            development.  


          3)Increase the amount of school district revenue limit funding  
            scored towards a June to July deferral from $1.1 billion to  
            $1.6 billion. (This funding is already deferred in practice,  
            just not currently scored so there is no impact to school  
            districts with this adjustment).










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          4)Defer $420 million from K-12 principal apportionment payments  
            made in April to July and $800 million from K-12 principal  
            apportionments made in May to July.


          5)Authorize up to $100 million in school apportionment funds  
            currently scheduled to be deferred from June to July, to  
            continue to be paid in June, for school districts and charter  
            schools who can demonstrate that absent this relief, they will  
            be unable to meet June payroll obligations. 


          6)Limit state mandate costs for the existing pupil promotion and  
            retention mandate, worth an estimated $3.1 million annually,  
            by relieving school districts from performing activities  
            reimbursable under the mandate, through July 1, 2013. 


          7)Suspend the statutory division of Proposition 98 funding among  
            K-12 educational agencies, community colleges, and other state  
            agencies for 2010-11, instead referencing the funding split  
            reflected in the 2010-11 Budget.  


          8)Provide $210 million towards the approximately $1.8 billion in  
            "settle-up" payments owed to schools for FY 2009-10. (In  
            total, the budget provides $300 million towards this settle-up  
            obligation, the balance of $90 million is appropriated in the  
            budget act for 2010-11 mandate costs). 


          9)Limit state costs for the High School Science Graduation  
            mandate claim (about $2 billion in past costs and $200 million  
            annually in ongoing costs) by directing LEAs to use state  
            apportionment and flexible categorical funding to cover  
            related costs.  Requires districts to first fund teacher  
            salary costs for courses required by the state when  
            determining the proportion of their budgets statutorily  
            required to be expended for the salaries of classroom  
            teachers. 


          10)Provide supplemental categorical block grant funding for new  
            charter schools established in 2008-09, 2009-10 or 2010-11  
            that were unable to access categorical funds due to  








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            flexibility provisions enacted as a part of the 2008-09 Budget  
            Act.


          11)Delete a statutory requirement that school districts submit  
            teachers' applications to participate in a National Board  
            Certification incentive program to the state Department of  
            Education for review and approval.  These incentives are no  
            longer funded, so there is no need for districts to forward  
            applications.  


          12)Authorize the Department of Education to allocate facilities  
            grant funding to eligible charter schools for current-year  
            costs, to the extent that any funds remain after reimbursing  
            past-year costs.  


          13)Limit state mandate costs for the existing truancy mandate,  
            under which the state pays districts $17 each, or about $15.9  
            million annually, to send form letters to parents of truants,  
            by amending the mandate to require schools to use the most  
            cost-effective method possible for notification, which may  
            include electronic mail or a telephone call. 


          14)Authorize county court schools to qualify for Economic Impact  
            Aid funding, beginning in 2010-11, which should enable them to  
            draw an estimated $2.7 million to serve poor students and  
            English-learners.  States legislative intent that average  
            daily attendance records of county court schools be reviewed  
            as part of those schools' routine audits. 


          15)Limit future state costs for a pending special education  
            "behavioral intervention plan" mandate (created by the  
            Department of Education regulations, with outstanding claims  
            of over half a billion dollars) by conforming California's  
            statutory requirements to those in federal law.  


          16)Suspend, through 2012-13, the following education mandates:  
            Removal of Chemicals, Scoliosis Screening, Pupil Residency  
            Verification and Appeals, Integrated Waste Management, Law  
            Enforcement Jurisdiction Agreements, Physical Education  








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            Reports and Health Benefits for Survivors of Peace Officers  
            and Firefighters.


          17)Capture $726 million in program savings in 2009-10 in order  
            to achieve state budget solution.  Of this amount, $340  
            million reflects budgeted savings for the K-3 Class Size  
            Reduction program and $386 million reflects natural savings  
            from more that seven other categorical programs.  


          18)Align the appropriation of federal 'stimulus' funds with the  
            amounts actually available to the state (up to $3 million more  
            than formerly expected). 


          19)Authorize the continuation of about $906 million in  
            inter-year K-12 payment deferrals (from June to July of 2011).  
             Inter-year deferrals have been a part of the budget since  
            2004-05.  


          20)Provide a statutory appropriation mechanism for the K-3 Class  
            Size Reduction program for the 2010-11 FY only to ensure that  
            the program is fully funded. 


          21)Establish a zero percent COLA for K-12 programs in 2010-11.   
            The actual cola of -0.39% will not be imposed, but instead  
            will be applied as an offset to the deficit factors  
            established in this measure.  


          22)Request the Department of Finance to exercise its statutory  
            authority to request the Commission on State Mandates to adopt  
            a new test claim to supercede the existing test claim for the  
            CCC Collective Bargaining mandate.  


          23)Require the State Controller to confirm by December 1, 2010,  
            that school districts have ceased to file claims under the  
            School Accountability Report Card mandate for activities no  
            longer required by statute, and to file a request with the  
            Commission on State Mandates to amend the parameters and  
            guidelines for that mandate, if schools have not ceased to  








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            file such claims. 


           Higher Education: 


           24)Repeal legislative intent that no new General Fund  
            augmentation be used for contributions to the UC Retirement  
            Plan. 

          25)Shift $30 million in California Community Colleges Quality  
            Education Investment Act (QEIA) from 2010-11 to ensure the  
            state meets the 2009-10 State Fiscal Stabilization Fund  
            maintenance of effort requirement for higher education. 


          26)Make technical corrections to the hardship waiver process for  
            inter-year apportionment deferrals for community colleges in  
            2010-11.  


          27)Defer an additional $129 million of community college  
            apportionment payments from January through June to July 2011  
            and defers $35 million from categorical programs and $25  
            million from Economic Development and Workforce Program for  
            fiscal year 2010-11. 


          28)Suspend four community colleges mandates for during the  
            remaining period of categorical program funding flexibility  
            (through 2012-13).  


          29)Exclude the California Community Colleges' Career Technical  
            Education program from categorical flexibility and provides  
            $20 million in one-time funds. 


          30)State that the Trustees of the California State University  
            shall not, and the Regents of the University of California are  
            requested not to, allocate student-imposed athletics fees on  
            purposes other than those voted on by the students. 


           Child Care and Development: 








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           31)Limit child care development contractors' reserves to five  
            percent of reimbursable contract amounts.  Previously, there  
            had been no limit on the size of the reserve for child care  
            development contractors. 

          32)Extend the City and County of San Francisco's child care  
            subsidy pilot program until July 1, 2015.


          33)Reduce the maximum reimbursement for license-exempt providers  
            from 90 percent to 80 percent of the 85th percentile using the  
            2005 regional market rate survey.


          34)Reduce the Alternative Payment agencies' administrative  
            allotment from 19 percent of original contract amount to 17.5  
            percent. 

          35)Urgency Clause.  Declare this bill take effect immediately as  
            an urgency statute.

           AS PASSED BY THE ASSEMBLY  , this bill was a vehicle for 2010  
          Budget legislation.


           Analysis Prepared by    Misty Feusahrens and Sara Bachez / BUDGET  
          / (916) 319-2099





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