BILL NUMBER: SBX3 4	CHAPTERED
	BILL TEXT

	CHAPTER  12
	FILED WITH SECRETARY OF STATE  FEBRUARY 20, 2009
	APPROVED BY GOVERNOR  FEBRUARY 20, 2009
	PASSED THE SENATE  FEBRUARY 19, 2009
	PASSED THE ASSEMBLY  FEBRUARY 14, 2009
	AMENDED IN ASSEMBLY  FEBRUARY 14, 2009
	AMENDED IN ASSEMBLY  JANUARY 13, 2009

INTRODUCED BY   Senator Ducheny

                        JANUARY 5, 2009

   An act to amend Sections 2558.46, 14041.5, 17592.71, 41203.1,
42238, 42238.146, 52124, and 60119 of, to amend, repeal, and add
Section 17584.1 of, to add Sections 14041.6, 17070.766, 17592.74,
41207.3, 42238.49, 42605, 52124.3, and 92612.5 to, and to add and
repeal Sections 1240.3 and 60422.1 of, the Education Code, to amend
Items 6110-196-0001, 6110-234-0001, 6110-488, 6870-101-0001, and
6870-295-0001 of, to add Items 6110-111-0046 and 6110-111-3116 to,
and to repeal Item 6110-111-0001 of, Section 2.00 of, and to add
Section 12.42 to, and to repeal Sections 12.40 and 35.80 of, the
Budget Act of 2008 (Chapters 268 and 269 of the Statutes of 2008),
and to amend Sections 34, 35, and 37 of, and to repeal Section 33 of,
Chapter 757 of the Statutes of 2008, relating to education finance,
making an appropriation therefor, and declaring the urgency thereof,
to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 4, Ducheny. Education finance.
   (1) Existing law requires the county superintendent of schools of
each county, among other specified duties, to make annual visits to
each school in his or her county at reasonable intervals to observe
its operation and to learn of its problems. Existing law requires
that the priority objective of those visits be the determination of
whether each school has sufficient textbooks, as defined.
   This bill would revise the definition of sufficient textbooks for
the 2008-09 and 2009-10 fiscal years and, during those fiscal years,
would require a county superintendent of schools to use that revised
definition to determine whether a school has sufficient textbooks.
The bill would make these provisions inoperative on July 1, 2010, and
repeal them on January 1, 2011.
   (2) Existing law requires a revenue limit to be calculated for
each county superintendent of schools, adjusted for various factors,
and reduced, as specified. Existing law reduces the revenue limit for
each county superintendent of schools for the 2008-09 fiscal year by
a deficit factor of 4.396%.
   This bill would instead reduce the revenue limit for each county
superintendent of schools for the 2008-09 fiscal year by a deficit
factor of 7.839%, and for the 2009-10 fiscal year by a deficit factor
of 13.360%.
   (3) Existing law specifies that the amount apportioned for revenue
limits for a school year that are be deemed to attributed to the
minimum funding obligation for school districts and community college
districts for the following fiscal year shall be $715,118,000.
   This bill would change that amount and set the amount at
$1,101,655,000 for the 2008-09 and each school year thereafter.
   (4) Existing law requires the Controller to draw warrants on the
State Treasury in favor of the county treasurer of each county in
each month of each year in prescribed amounts and in a prescribed
manner.
   This bill, commencing with the 2008-09 fiscal year, would require
the warrants for the principal apportionments for the month of
February in the amount of $2,000,000,000 to be drawn in July of the
same calendar year and would require those warrants to be applied
toward the minimum funding requirements for school districts and
community college districts imposed by Section 8 of Article XVI of
the California Constitution for the year in which they are drawn.
   (5) The Leroy F. Greene School Facilities Act of 1998 requires the
State Allocation Board to require school districts applying for
funds under that act to deposit, into a specified account for ongoing
and major maintenance of school buildings, an amount equal to or
greater than 3% of the total general fund expenditures of the
applicant school district.
   This bill, for the 2008-09 to the 2012-13 fiscal years, inclusive,
would reduce that deposit requirement to an amount equal to or
greater than 1% of the total general fund expenditures of the
applicant school district.
   (6) Existing law requires a governing board of a school district
to discuss proposals and plans for expenditure of funds for the
deferred maintenance of school district facilities at a regularly
scheduled public hearing. Existing law requires the governing board
to make a report on the district's spending priorities for the
current fiscal year to the Legislature, with copies to the
Superintendent of Public Instruction, the State Board of Education,
the Department of Finance, and the State Allocation Board, by March 1
of any year that the school district does not set aside prescribed
funds for the deferred maintenance of its facilities.
   This bill would make this report requirement inoperative for the
2008-09 to 2012-13 fiscal years, inclusive.
   (7) Existing law directs that an amount of moneys be transferred
in the annual Budget Act from the Proposition 98 Reversion Account to
the School Facilities Emergency Repair Account. The amount to be
transferred is required to equal 50% of the unappropriated balance of
the Proposition 98 Reversion Account or $100,000,000, whichever
amount is greater. The moneys transferred are required to be used for
the purpose of addressing emergency facilities needs.
   This bill, for the 2009-10 fiscal year, would reduce the amount
required to be transferred pursuant to the requirement above to zero.

   The bill would prohibit funds provided to school districts from
the School Facilities Emergency Repair Account for the purpose of
emergency repair grants from being used either to supplant funds
provided to local educational agencies for the deferred maintenance
of school facilities pursuant to specified statutes or for deposit
into a school district deferred maintenance fund for expenditure for
specified purposes.
   (8) Existing law requires, for the 1990-91 fiscal year and each
fiscal year thereafter, that moneys to be applied by the state for
the support of school districts, community college districts, and
direct elementary and secondary level instructional services provided
by the state be distributed in accordance with certain calculations
governing the proration of those moneys among the 3 segments of
public education. Existing law makes that provision inapplicable to
the fiscal years between the 1992-93 and 2008-09, inclusive.
   This bill would make that provision inapplicable to the 2009-10
fiscal year.
   (9) The California Constitution requires the state to apply a
minimum amount of funding for each fiscal year for the support of
school districts and community college districts. The Superintendent
of Public Instruction and the Director of Finance, by January 1,
2006, are required to jointly determine the outstanding balance of
the minimum funding obligation to school districts and community
college districts pursuant to the California Constitution for the
1995-96 to 2003-04 fiscal years, inclusive. Existing law, commencing
with the 2006-07 fiscal year, annually appropriates $150,000,000 from
the General Fund to the Controller for allocation to school
districts and community college districts for the purpose of
discharging in full the outstanding balance of the minimum funding
obligation to school districts and community college districts
pursuant to the California Constitution. Existing law cancels that
annual appropriation for the 2008-09 fiscal year.
   This bill, in addition, would provide that, if the Superintendent
and the Director of Finance jointly determine that, for the 2008-09
fiscal year, the state has applied moneys for the support of school
districts and community college districts in an amount that exceeds
the minimum amount required for that fiscal year pursuant to the
California Constitution, the bill would deem $1,100,590,000, as of
June 30 of that fiscal year, as a payment in satisfaction of the
outstanding balance, as defined, of the minimum funding obligation
under that section for the 2002-03 and 2003-04 fiscal years, as
specified.
   (10) Existing law requires a revenue limit to be calculated for
each school district and each county superintendent of schools and
requires the amount of the revenue limit to be adjusted for various
factors.
   This bill would, for the 2011-12 fiscal year, require the
Superintendent to compute an equalization adjustment for each school
district so that the prior year base revenue limit per unit of
average daily attendance of a school district is not less than the
prior year base revenue limit per unit of average daily attendance
above which fall not more than 10% of the total statewide units of
average daily attendance for the appropriate size and type of school
district.
   (11) Existing law requires the county superintendent of schools to
determine a revenue limit for each school district in the county,
and requires the amount of the revenue limit to be adjusted for
various factors. Existing law reduces the revenue limit for each
school district for the 2008-09 fiscal year by a deficit factor of
4.713%.
   This bill would instead reduce the revenue limit for each school
district for the 2008-09 fiscal year by a deficit factor of 7.844%,
and for the 2009-10 fiscal year by a deficit factor of 13.094%.
   (12) Existing law establishes various categorical education
programs and appropriates the funding for those programs in the
annual Budget Act. That act authorizes local educational agencies to
expend up to 10% of the amount apportioned under specified
categorical education programs for the purposes of any other program
for which the recipient is eligible for funding, as specified.
   This bill would instead reduce by a percentage, calculated as
specified, the appropriations made in the Budget Act of 2008 to
school districts and county offices of education in enumerated items
that fund specified categorical education programs. The bill would
authorize school districts, for the 2008-09 to 2012-13 fiscal years,
inclusive, to use the funds received pursuant to any of those budget
items, with specified exceptions, for any educational purpose, to the
extent permitted by federal law. The school districts and county
offices of education would be required, at a regularly scheduled,
open, public hearing, to take testimony from the public, discuss, and
approve or disapprove the proposed use of funding, and to report to
the State Department of Education, in the existing annual
Standardized Accounting System reporting process, the purposes for
which the funds were used and the amounts used for each of those
purposes. The department would be required to collect and provide
this information to the appropriate legislative policy and budget
committees and the Department of Finance by February 28, 2010.
   (13) Existing law establishes the Class Size Reduction Program
under which a participating school district or county office of
education reduces class size to 20 pupils per class in kindergarten
and grades 1 to 3, inclusive. If a school district or county office
of education receives funding for a class but fails to reduce the
size of that class to 20 pupils, the school district or county office
of education suffers a reduction in its next principal apportionment
of state funds.
   This bill would reduce the amount of this penalty for the 2008-09,
2009-10, 2010-11 and 2011-12 fiscal years, as specified.
   (14) The Pupil Textbook and Instructional Materials Incentive
Program Act requires the governing board of a school district to hold
a public hearing and make a determination as to whether each pupil
in each school in the district has sufficient textbooks or
instructional materials in the subjects of mathematics, science,
history-social science, and English/language arts that are aligned to
the adopted content standards and that are consistent with the
content and cycles of the curriculum framework adopted by the State
Board of Education. Existing law subjects school districts that
receive funds from any state source to this and specified
requirements only in a fiscal year in which the Superintendent of
Public Instruction determines that the base revenue limit for each
school district will increase by at least 1% per unit of average
daily attendance from the prior fiscal year.
   This bill would delete the condition related to the increase in
revenue limit funding so that school districts would be subject to
the requirements when they receive funds for instructional materials
from any state source.
   (15) Existing law establishes the Instructional Materials Funding
Realignment Program that requires the State Department of Education
to apportion funds to school districts and requires the governing
board of a school district to use that funding to ensure that each
pupil is provided with a standards-aligned textbook or basic
instructional materials by the beginning of the first school term
that commences no later than 24 months after those materials were
adopted by the State Board of Education, except as specified.
   This bill, until July 1, 2010, would exempt school districts from
that requirement.
   (16) Existing law establishes a statewide system of public
postsecondary education that includes, among other segments, the
various campuses of the University of California, which is
administered by the Regents of the University of California.
   This bill would state the intent of the Legislature that no new
General Fund augmentation be made available for contributions to the
University of California Retirement Plan.
   (17) Existing law appropriates $39,780,000 from the General Fund
to the Board of Governors of the California Community Colleges, in
augmentation of an amount appropriated pursuant to a specified item
in the Budget Act of 2008, to provide a 0.68% cost-of-living
adjustment to apportionments to community college districts for
expenditure during the 2008-09 fiscal year.
   This bill would repeal this provision.
   (18) Existing law appropriates $388,283,000 from the General Fund
to the State Department of Education for 10 specified programs
according to a specified schedule, and requires the department to
encumber these funds by July 1, 2009. This appropriation reflects the
June 2009 principal apportionment that is deferred to July 2009.
Included in this appropriation is $52,583,000 for home-to-school
transportation.
   This bill would eliminate that appropriation for home-to-school
transportation and instead would appropriate $570,000,000 for class
size reduction in kindergarten and grades 1 to 3, inclusive. The bill
would increase the total appropriation from $388,283,000 to
$905,700,000 to reflect the February 2009 principal apportionment and
the 2009 payment for class size reduction in kindergarten and grades
1 to 3, inclusive. The funds appropriated would be applied toward
the minimum funding requirements for school districts and community
college districts imposed by Section 8 of Article XVI of the
California Constitution for the 2009-10 fiscal year.
   (19) The Budget Act of 2008 appropriates $200,000,000 from the
General Fund to the Board of Governors of the California Community
Colleges for expenditure during the 2009-10 fiscal year.
   This bill would increase that appropriation to a total of
$540,000,000, and would defer the disbursal of those funds until July
2010. The amount appropriated would represent $115,000,000 of the
January apportionment to community college districts, $115,000,000 of
the February apportionment to those districts, $55,000,000 of the
March apportionment and $55,000,000 of the April apportionment, and
$200,000,000 of the June apportionment of those districts. The funds
appropriated would be applied toward the minimum funding requirements
for school districts and community college districts imposed by
Section 8 of Article XVI of the California constitution for the
2009-10 fiscal year.
   (20) Existing law provides no cost-of-living adjustment for
specified education programs for the 2008-09 fiscal year.
   This bill would add the categorical block grant for charter
schools to the list of programs not receiving a cost-of-living
adjustment for the 2008-09 fiscal year.
   (21) The Budget Act of 2008 makes various appropriations for
purposes of public education.
   This bill would reduce or eliminate specified appropriations made
in that Budget Act.
   (22) This bill would appropriate $198,446,000 from the Public
Transportation Account in the State Transportation Fund to the State
Department of Education for purposes of home-to-school
transportation, to be allocated as specified.
   (23) This bill would appropriate $420,268,000 from the Mass
Transportation Fund to the State Department of Education for purposes
of home-to-school transportation, to be allocated as specified.
   (24) The Budget Act of 2008 makes various appropriations for
purposes of child care and development programs.
   This bill would reduce specified General Fund appropriations made
in that Budget Act for those purposes. The bill also would
reappropriate the unobligated balances from other specified
appropriations to the State Department of Education for CalWORKs
Stage 2 Child Care services, as specified.
   (25) This bill would reappropriate for the 2008-09 fiscal year
prescribed amounts or the unexpended balance of specified
appropriations made in specified prior Budget Acts to the State
Department of Education for allocation to the Class Size Reduction
Program in kindergarten and grades 1 to 3, inclusive.
   (26) This bill would appropriate $958,283,000 from the General
Fund to the State Department of Education for 11 specified programs
according to a specified schedule and would require the department to
encumber these funds by July 31, 2010. The bill would provide that,
for purposes of satisfying the minimum annual funding obligation for
school districts required by the California Constitution, the
appropriated funds are General Fund revenues appropriated for school
districts and community college districts for the 2010-11 fiscal
year.
   (27) Existing law requires the Board of Governors of the
California Community Colleges to adopt regulations providing for the
payment of apportionments to community college districts on a
schedule to include an advance apportionment on or before July 15 of
each year, and a first and 2nd principal apportionment on or before
February 20 and June 25 of each year, respectively.
   Existing law requires the Controller to draw warrants on the State
Treasury in favor of the county treasurer of each county in each
month of each year during the fiscal year from the State School Fund
to the school districts under the jurisdiction of the county
superintendent of schools of the county, to the county school service
fund, and to the county school tuition fund of the county. Warrants
for 6% of specified amounts allowed to the county school service
funds and 6% of specified amounts apportioned to school districts and
county school service funds for classes maintained by county
superintendents of schools and to the county service fund are
required to be drawn in July. For the 2008-09 fiscal year only the
entire amount of the July warrant for the county school service fund
and a specified percentage of the amount of the July warrant for
school district apportionments, county school service fund
apportionments for classes maintained by the county superintendent of
schools, and county school tuition fund apportionments are deferred
to the warrants drawn in September.
   This bill would defer $200,000,000 of the July 2009 community
college advance apportionment to October 2009. The bill also would
defer $1,000,000,000 of the July 2009 and $1,500,000,000 of the
August 2009 apportionments for local educational agencies that
maintain kindergarten or any of grades 1 to 12, inclusive, to October
2009.
   (28) This bill would appropriate $540,000,000 from the General
Fund to the Board of Governors of the California Community Colleges
for expenditure during the 2010-11 fiscal year according to a
specified item in the Budget Act of 2009. The bill would defer until
July 2011 the disbursal of those funds. The amount appropriated would
represent $115,000,000 of the January apportionment to community
college districts, $115,000,000 of the February apportionment to
those districts, $55,000,000 of the March apportionment and
$55,000,000 of the April apportionment, and $200,000,000 of the June
apportionment to those districts. The bill would provide that, for
purposes of satisfying the minimum annual funding obligation for
community college districts required by the California Constitution,
those funds are General Fund revenues appropriated for community
college districts for the 2010-11 fiscal year.
   (29) Existing law requires the Superintendent of Public
Instruction, the Controller, and the Director of Finance to develop
standards and criteria to be reviewed by the State Board of Education
and to be used by local educational agencies in the development of
annual budgets and the management of subsequent expenditures from
those budgets.
   This bill, for the 2008-09 fiscal year only, would authorize the
governing board of a school district or county office of education to
use up to 100% of the balances, as of June 30, 2008, of restricted
accounts in its general fund or cafeteria fund, excluding restricted
reserves committed for capital outlay, bond funds, sinking funds,
federal funds, and balances in designated programs.
   (30) This bill would require the Superintendent of Public
Instruction to reduce the principal apportionment for school
districts and county offices of education for the 2008-09 fiscal
year, as necessary, if, during that fiscal year, the Controller has
disbursed funds from the appropriations reduced by the bill in
amounts greater than the amounts remaining in those appropriations
following the reductions and the Superintendent determines there is
no other way to recover the funds that have been disbursed during the
2008-09 fiscal year.
   (31) This bill would set the cost-of-living adjustment for
community day schools, for specified items in the Budget Act of 2009,
and for specified items in the Budget Act of 2008 for the 2009-10
fiscal year at 0% notwithstanding the cost-of-living adjustment
specified in existing statutes.
   (32) This bill would require funds appropriated pursuant to
specified items in the Budget Act of 2009 to be encumbered by July
31, 2010.
   (33) The California Constitution authorizes the Governor to
declare a fiscal emergency and to call the Legislature into special
session for that purpose. The Governor issued a proclamation
declaring a fiscal emergency, and calling a special session for this
purpose, on December 19, 2008.
   This bill would state that it addresses the fiscal emergency
declared by the Governor by proclamation issued on December 19, 2008,
pursuant to the California Constitution.
   (34) This bill would declare that it is to take effect immediately
as an urgency statute.
   Appropriation: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1240.3 is added to the Education Code, to read:

   1240.3.  (a) For the purposes of Section 1240, for the 2008-09 and
2009-10 fiscal years, sufficient textbooks or instructional
materials include standards-aligned textbooks or instructional
materials, or both, that were adopted prior to July 1, 2008, by the
state board or local educational agency pursuant to statute, unless
those local educational agencies purchased or arranged to purchase
textbooks or instructional materials adopted by the state board after
that date. It is the intent of the Legislature that each local
educational agency provide each pupil with the same state-adopted,
standards-aligned textbook or instructional material as is provided
to every other pupil enrolled in the same grade and same course
offered by the local educational agency.
   (b) Notwithstanding Section 1240 or any other law, for the 2008-09
and 2009-10 fiscal years, a county superintendent of schools, in
making visits to schools as specified in Section 1240, shall
determine the status of sufficient textbooks as defined in
subdivision (a).
   (c) This section shall become inoperative on July 1, 2010, and, as
of January 1, 2011, is repealed, unless a later enacted statute that
is enacted before January 1, 2011, deletes or extends the dates on
which it becomes inoperative and is repealed.
  SEC. 2.  Section 2558.46 of the Education Code is amended to read:
   2558.46.  (a) (1) For the 2003-04 fiscal year, the revenue limit
for each county superintendent of schools determined pursuant to this
article shall be reduced by a 1.195 percent deficit factor.
   (2) For the 2004-05 fiscal year, the revenue limit for each county
superintendent of schools determined pursuant to this article shall
be reduced by a 0.323 percent deficit factor.
   (3) For the 2003-04 and 2004-05 fiscal years, the revenue limit
for each county superintendent of schools determined pursuant to this
article shall be reduced further by a 1.826 percent deficit factor.
   (4) For the 2005-06 fiscal year, the revenue limit for each county
superintendent of schools determined pursuant to this article shall
be reduced further by a 0.898 percent deficit factor.
   (5) For the 2008-09 fiscal year, the revenue limit for each county
superintendent of schools determined pursuant to this article shall
be reduced by a 7.839 percent deficit factor.
   (6) For the 2009-10 fiscal year, the revenue limit for each county
superintendent of schools determined pursuant to this article shall
be reduced by a 13.360 percent deficit factor.
   (b) In computing the revenue limit for each county superintendent
of schools for the 2006-07 fiscal year pursuant to this article, the
revenue limit shall be determined as if the revenue limit for that
county superintendent of schools had been determined for the 2003-04,
2004-05, and 2005-06 fiscal years without being reduced by the
deficit factors specified in subdivision (a).
   (c) In computing the revenue limit for each county superintendent
of schools for the 2010-11 fiscal year pursuant to this article, the
revenue limit shall be determined as if the revenue limit for that
county superintendent of schools had been determined for the 2009-10
fiscal year without being reduced by the deficit factors specified in
subdivision (a).
  SEC. 3.  Section 14041.5 of the Education Code is amended to read:
   14041.5.  (a) Notwithstanding subdivision (a) of Section 14041,
commencing with the 2002-03 fiscal year, warrants for the principal
apportionments for the month of June instead shall be drawn in July
of the same calendar year pursuant to the certification made pursuant
to Section 41335.
   (b) Except as provided in subdivisions (c) and (d), for purposes
of making the computations required by Section 8 of Article XVI of
the California Constitution, the warrants drawn pursuant to
subdivision (a) shall be deemed to be "General Fund revenues
appropriated to school districts," as defined in subdivision (c) of
Section 41202 for the fiscal year in which the warrants are drawn and
included within the "total allocations to school districts and
community college districts from General Fund proceeds of taxes
appropriated pursuant to Article XIII B" as defined in subdivision
(e) of Section 41202, for the fiscal year in which the warrants are
drawn.
   (c) For the 2003-04 school year, the amount of apportionments for
revenue limits computed pursuant to Section 42238 from any of the
apportionments made pursuant to Section 14041 that are deemed
"General Fund revenues appropriated for school districts," as defined
in subdivision (c) of Section 41202 for the following fiscal year
and included within the "total allocations to school districts and
community college districts from General Fund proceeds of taxes
appropriated pursuant to Article XIII B" as defined in subdivision
(e) of Section 41202, for the 2004-05 fiscal year shall be seven
hundred twenty-six million two hundred seventy thousand dollars
($726,270,000). Any amount in excess of seven hundred twenty-six
million two hundred seventy thousand dollars ($726,270,000) that is
apportioned in July of 2004 is deemed "General Fund revenues
appropriated for school districts," as defined in subdivision (c) of
Section 41202 for the 2003-04 fiscal year and included within the
"total allocations to school districts and community college
districts from General Fund proceeds of taxes appropriated pursuant
to Article XIII B" as defined in subdivision (e) of Section 41202,
for the 2003-04 fiscal year.
   (d) For the 2004-05 school year to the 2007-08 school year,
inclusive, the amount of apportionments for revenue limits computed
pursuant to Section 42238 from any of the apportionments made
pursuant to Section 14041 that are deemed "General Fund revenues
appropriated for school districts," as defined in subdivision (c) of
Section 41202 for the following fiscal year and included within the
"total allocations to school districts and community college
districts from General Fund proceeds of taxes appropriated pursuant
to Article XIII B" as defined in subdivision (e) of Section 41202,
for the following fiscal year shall be seven hundred fifteen million
one hundred eighteen thousand dollars ($715,118,000). Any amount in
excess of seven hundred fifteen million one hundred eighteen thousand
dollars ($715,118,000) that is apportioned in July of any year is
deemed "General Fund revenues appropriated for school districts," as
defined in subdivision (c) of Section 41202 for the prior fiscal year
and included within the "total allocations to school districts and
community college districts from General Fund proceeds of taxes
appropriated pursuant to Article XIII B" as defined in subdivision
(e) of Section 41202, for the prior fiscal year.
   (e) For the 2008-09 school year, and each school year thereafter,
the amount of apportionments for revenue limits computed pursuant to
Section 42238 from any of the apportionments made pursuant to Section
14041 that are deemed "General Fund revenues appropriated for school
districts," as defined in subdivision (c) of Section 41202 for the
following fiscal year and included within the "total allocations to
school districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIII B" as defined
in subdivision (e) of Section 41202, for the following fiscal year
shall be one billion one hundred one million six hundred fifty-five
thousand dollars ($1,101,655,000). Any amount in excess of one
billion one hundred one million six hundred fifty-five thousand
dollars ($1,101,655,000) that is apportioned in July of any year is
deemed "General Fund revenues appropriated for school districts," as
defined in subdivision (c) of Section 41202 for the prior fiscal year
and included within the "total allocations to school districts and
community college districts from General Fund proceeds of taxes
appropriated pursuant to Article XIII B" as defined in subdivision
(e) of Section 41202, for the prior fiscal year.
  SEC. 4.  Section 14041.6 is added to the Education Code, to read:
   14041.6.  (a) Notwithstanding subdivision (a) of Section 14041, or
any other law, commencing with the 2008-09 fiscal year, warrants for
the principal apportionments for the month of February in the amount
of two billion dollars ($2,000,000,000) instead shall be drawn in
July of the same calendar year pursuant to the certification made
pursuant to Section 41339.
   (b) Except as provided in subdivisions (c) and (e) of Section
41202, for purposes of making the computations required by Section 8
of Article XVI of the California Constitution, the warrants drawn
pursuant to subdivision (a) shall be deemed to be "General Fund
revenues appropriated to school districts," as defined in subdivision
(c) of Section 41202, for the fiscal year in which the warrants are
drawn and included within the "total allocations to school districts
and community college districts from General Fund proceeds of taxes
appropriated pursuant to Article XIII B," as defined in subdivision
(e) of Section 41202, for the fiscal year in which the warrants are
drawn.
  SEC. 5.  Section 17070.766 is added to the Education Code, to read:

   17070.766.  Notwithstanding paragraph (2) of subdivision (b) of
Section 17070.75, for the 2008-09, 2009-10, 2010-11, 2011-12, and
2012-13 fiscal years, the board shall require a school district to
deposit into the account established pursuant to paragraph (1) of
subdivision (b) of Section 17070.75 only an amount equal to 1 percent
of the total expenditures by a district from its general fund in the
2008-09, 2009-10, 2010-11, 2011-12, and 2012-13 fiscal years
respectively. A school district may elect to deposit into the account
an amount that is greater than the amount required by the board
pursuant to this section.
  SEC. 6.  Section 17584.1 of the Education Code is amended to read:
   17584.1.  (a) The governing board of a school district shall
discuss proposals and plans for expenditure of funds for the deferred
maintenance of school district facilities at a regularly scheduled
public hearing.
   (b) The purposes of this section are to inform the public
regarding the local decisionmaking process relating to the deferred
maintenance of school facilities and to provide a foundation for
local accountability in that regard.
   (c) This section shall become inoperative on July 1, 2013, and, as
of January 1, 2014, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2014, deletes or
extends the dates on which it becomes inoperative and is repealed.
  SEC. 7.  Section 17584.1 is added to the Education Code, to read:
   17584.1.  (a) The governing board of a school district shall
discuss proposals and plans for expenditure of funds for the deferred
maintenance of school district facilities at a regularly scheduled
public hearing.
   (b) In any fiscal year that the school district does not set aside
0.5 percent of its current-year revenue limit average daily
attendance for deferred maintenance, the governing board of a school
district shall submit a report to the Legislature by March 1 of that
year, with copies to the Superintendent, the state board, the
Department of Finance, and the State Allocation Board.
   (c) The report required pursuant to subdivision (b) shall include
all of the following:
   (1) A schedule of the complete school facilities deferred
maintenance needs of the school district for the current fiscal year,
including a schedule of costs per schoolsite and total costs.
   (2) A detailed description of the school district's spending
priorities for the current fiscal year and an explanation of why
those priorities, or any other considerations, have prevented the
school district from setting aside sufficient local funds so as to
permit it to fully fund its deferred maintenance program and, if
eligible, to participate in the state deferred maintenance funding
program as set forth in Section 17584.
   (3) An explanation of the manner in which the governing board of a
school district plans to meet its current-year facilities deferred
maintenance needs without setting aside the funds set forth in
Section 17584.
   (d) Copies of the report shall be made available at each
schoolsite within the school district, and shall be provided to the
public upon request.
   (e) The purposes of this section are to inform the public
regarding the local decisionmaking process relating to the deferred
maintenance of school facilities and to provide a foundation for
local accountability in that regard.
   (f) This section shall become operative on July 1, 2013.
  SEC. 8.  Section 17592.71 of the Education Code is amended to read:

   17592.71.  (a) There is hereby established in the State Treasury
the School Facilities Emergency Repair Account. The State Allocation
Board shall administer the account.
   (b) (1) Commencing with the 2005-06 fiscal year, an amount of
moneys shall be transferred in the annual Budget Act from the
Proposition 98 Reversion Account to the School Facilities Emergency
Repair Account, equaling 50 percent of the unappropriated balance of
the Proposition 98 Reversion Account or one hundred million dollars
($100,000,000), whichever amount is greater. Moneys transferred
pursuant to this subdivision shall be used for the purpose of
addressing emergency facilities needs pursuant to Section 17592.72.
   (2) Notwithstanding paragraph (1), for the 2008-09 fiscal year,
the amount of money to be transferred from the Proposition 98
Reversion Account to the School Facilities Emergency Repair Account
pursuant to paragraph (1) shall not exceed one hundred one million
dollars ($101,000,000).
   (3) Notwithstanding paragraph (1), for the 2009-10 fiscal year,
the amount of money to be transferred from the Proposition 98
Reversion Account to the School Facilities Emergency Repair Account
pursuant to paragraph (1) shall be zero.
   (c) The Legislature may transfer to the School Facilities
Emergency Repair Account other one-time Proposition 98 funds, except
funds specified pursuant to Section 41207. Donations by private
entities shall be deposited in the account and, for tax purposes, be
treated as otherwise provided by law.
   (d) Funds shall be transferred pursuant to this section until a
total of eight hundred million dollars ($800,000,000) has been
disbursed from the School Facilities Emergency Repair Account.
  SEC. 9.  Section 17592.74 is added to the Education Code, to read:
   17592.74.  Notwithstanding any other law, the funds provided to
school districts from the School Facilities Emergency Repair Account
pursuant to this article for the purpose of emergency repair grants
shall not be used to do either of the following:
   (a) Supplant funds provided to local educational agencies for the
deferred maintenance of school facilities pursuant to Sections 17584
and 17587.
   (b) Be deposited into a school district deferred maintenance fund
for the purposes established pursuant to Section 17582.
  SEC. 10.  Section 41203.1 of the Education Code is amended to read:

   41203.1.  (a) For the 1990-91 fiscal year and each fiscal year
thereafter, allocations calculated pursuant to Section 41203 shall be
distributed in accordance with calculations provided in this
section. Notwithstanding Section 41203, and for the purposes of this
section, school districts, community college districts, and direct
elementary and secondary level instructional services provided by the
State of California shall be regarded as separate segments of public
education, and each of these three segments of public education
shall be entitled to receive respective shares of the amount
calculated pursuant to Section 41203 as though the calculation made
pursuant to subdivision (b) of Section 8 of Article XVI of the
California Constitution were to be applied separately to each segment
and the base year for the purposes of this calculation under
paragraph (1) of subdivision (b) of Section 8 of Article XVI of the
California Constitution were based on the 1989-90 fiscal year.
Calculations made pursuant to this subdivision shall be made so that
each segment of public education is entitled to the greater of the
amounts calculated for that segment pursuant to paragraph (1) or (2)
of subdivision (b) of Section 8 of Article XVI of the California
Constitution.
   (b) If the single calculation made pursuant to Section 41203
yields a guaranteed amount of funding that is less than the sum of
the amounts calculated pursuant to subdivision (a), the amount
calculated pursuant to Section 41203 shall be prorated for the three
segments of public education.
   (c) Notwithstanding any other law, this section does not apply to
the 1992-93 to 2009-10 fiscal years, inclusive.
  SEC. 11.  Section 41207.3 is added to the Education Code, to read:
   41207.3.  (a) If the Superintendent and the Director of Finance
jointly determine that, for the 2008-09 fiscal year, the state has
applied moneys for the support of school districts and community
college districts in an amount that exceeds the minimum amount
required for that fiscal year pursuant to Section 8 of Article XVI of
the California Constitution, the excess, up to one billion one
hundred million five hundred ninety thousand dollars
($1,100,590,000), shall be deemed, as of June 30 of that fiscal year,
a payment in satisfaction of the outstanding balance of the minimum
funding obligation under that section for the 2002-03 and 2003-04
fiscal years in accordance with the following:
   (1) The first four hundred eighty-three million sixteen thousand
dollars ($483,016,000) in payment of the outstanding balance of the
minimum funding obligation for the 2002-03 fiscal year.
   (2) The next six hundred seventeen million five hundred
seventy-four thousand dollars ($617,574,000) in payment of the
outstanding balance of the minimum funding obligation for the 2003-04
fiscal year.
   (b) For purposes of this section, the outstanding balance of the
minimum funding obligation to school districts and community college
districts pursuant to Section 8 of Article XVI of the California
Constitution for a fiscal year is the amount, if any, by which the
amount required to be applied by the state for the support of school
districts and community college districts pursuant to Section 8 of
Article XVI of the California Constitution, including any maintenance
factor that should have been allocated in that fiscal year pursuant
to subdivision (e) of Section 8 of Article XVI, exceeds the amount
applied by the state for the support of school districts and
community college districts for that fiscal year.
   (c) The amounts allocated pursuant to this section shall be
deemed, for purposes of Section 8 of Article XVI of the California
Constitution, to be appropriations made and allocated in the fiscal
year in which the deficiencies resulting in the outstanding balance
were incurred. When the amount determined to be owed for each such
fiscal year is fully allocated pursuant to this subdivision, the data
used in the computations made under this section with regard to the
total amount owed by the state for the support of school districts
and community college districts pursuant to Section 8 of Article XVI
of the California Constitution for that fiscal year, including as
much of the maintenance factor for that fiscal year determined
pursuant to subdivision (d) of Section 8 of Article XVI as has been
allocated as required by subdivision (e) of Section 8 of Article XVI
by virtue of the allocations made under this section, shall be deemed
certified for purposes of Section 41206.
   (d) The amount described in subdivision (a) shall be deemed a
payment in full satisfaction of the amounts owed pursuant to Section
41207.
  SEC. 12.  Section 42238 of the Education Code is amended to read:
   42238.  (a) For the 1984-85 fiscal year and each fiscal year
thereafter, the county superintendent of schools shall determine a
revenue limit for each school district in the county pursuant to this
section.
   (b) The base revenue limit for a fiscal year shall be determined
by adding to the base revenue limit for the prior fiscal year the
following amounts:
   (1) The inflation adjustment specified in Section 42238.1.
   (2) For the 1995-96 fiscal year, the equalization adjustment
specified in Section 42238.4.
   (3) For the 1996-97 fiscal year, the equalization adjustments
specified in Sections 42238.41, 42238.42, and 42238.43.
   (4) For the 1985-86 fiscal year, the amount received per unit of
average daily attendance in the 1984-85 fiscal year pursuant to
Section 42238.7.
   (5) For the 1985-86, 1986-87, and 1987-88 fiscal years, the amount
per unit of average daily attendance received in the prior fiscal
year pursuant to Section 42238.8.
   (6) For the 2004-05 fiscal year, the equalization adjustment
specified in Section 42238.44.
   (7) For the 2006-07 fiscal year, the equalization adjustment
specified in Section 42238.48.
   (8) For the 2011-12 fiscal year, the equalization adjustment
specified in Section 42238.49.
   (c) Except for districts subject to subdivision (d), the base
revenue limit computed pursuant to subdivision (b) shall be
multiplied by the district average daily attendance computed pursuant
to Section 42238.5.
   (d) (1) For districts for which the number of units of average
daily attendance determined pursuant to Section 42238.5 is greater
for the current fiscal year than for the 1982-83 fiscal year, compute
the following amount, in lieu of the amount computed pursuant to
subdivision (c):
   (A) Multiply the base revenue limit computed pursuant to
subdivision (c) by the average daily attendance computed pursuant to
Section 42238.5 for the 1982-83 fiscal year.
   (B) Multiply the lesser of the amount in subdivision (c) or 1.05
times the statewide average base revenue limit per unit of average
daily attendance for districts of similar type for the current fiscal
year by the difference between the average daily attendance computed
pursuant to Section 42238.5 for the current and 1982-83 fiscal
years.
   (C) Add the amounts in subparagraphs (A) and (B).
   (2) This subdivision shall become inoperative on July 1, 1998.
   (e) For districts electing to compute units of average daily
attendance pursuant to paragraph (2) of subdivision (a) of Section
42238.5, the amount computed pursuant to Article 4 (commencing with
Section 42280) shall be added to the amount computed in subdivision
(c) or (d), as appropriate.
   (f) For the 1984-85 fiscal year only, the county superintendent
shall reduce the total revenue limit computed in this section by the
amount of the decreased employer contributions to the Public
Employees' Retirement System resulting from enactment of Chapter 330
of the Statutes of 1982, offset by any increase in those
contributions, as of the 1983-84 fiscal year, resulting from
subsequent changes in employer contribution rates.
   (g) The reduction required by subdivision (f) shall be calculated
as follows:
   (1) Determine the amount of employer contributions that would have
been made in the 1983-84 fiscal year if the applicable Public
Employees' Retirement System employer contribution rate in effect
immediately prior to the enactment of Chapter 330 of the Statutes of
1982 was in effect during the 1983-84 fiscal year.
   (2) Subtract from the amount determined in paragraph (1) the
greater of subparagraph (A) or (B):
   (A) The amount of employer contributions that would have been made
in the 1983-84 fiscal year if the applicable Public Employees'
Retirement System employer contribution rate in effect immediately
after the enactment of Chapter 330 of the Statutes of 1982 was in
effect during the 1983-84 fiscal year.
   (B) The actual amount of employer contributions made to the Public
Employees' Retirement System in the 1983-84 fiscal year.
   (3) For purposes of this subdivision, employer contributions to
the Public Employees' Retirement System for either of the following
shall be excluded from the calculation specified above:
   (A) Positions supported totally by federal funds that were subject
to supplanting restrictions.
   (B) Positions supported, to the extent of employer contributions
not exceeding twenty-five thousand dollars ($25,000) by any single
educational agency, from a revenue source determined on the basis of
equity to be properly excludable from the provisions of this
subdivision by the Superintendent with the approval of the Director
of Finance.
   (4) For accounting purposes, the reduction made by this
subdivision may be reflected as an expenditure from appropriate
sources of revenue as directed by the Superintendent.
   (h) The Superintendent shall apportion to each school district the
amount determined in this section less the sum of:
   (1) The district's property tax revenue received pursuant to
Chapter 3 (commencing with Section 75) and Chapter 6 (commencing with
Section 95) of Part 0.5 of the Revenue and Taxation Code.
   (2) The amount, if any, received pursuant to Part 18.5 (commencing
with Section 38101) of the Revenue and Taxation Code.
   (3) The amount, if any, received pursuant to Chapter 3 (commencing
with Section 16140) of the Government Code.
   (4) Prior years' taxes and taxes on the unsecured roll.
   (5) Fifty percent of the amount received pursuant to Section
41603.
   (6) The amount, if any, received pursuant to the Community
Redevelopment Law (Part 1 (commencing with Section 33000) of Division
24 of the Health and Safety Code), except for any amount received
pursuant to Section 33401 or 33676 of the Health and Safety Code that
is used for land acquisition, facility construction, reconstruction,
or remodeling, or deferred maintenance, except for any amount
received pursuant to Section 33492.15, paragraph (4) of subdivision
(a) of Section 33607.5, or Section 33607.7 of the Health and Safety
Code that is allocated exclusively for educational facilities.
   (7) For a unified school district, other than a unified school
district that has converted all of its schools to charter status
pursuant to Section 47606, the amount of statewide average
general-purpose funding per unit of average daily attendance received
by school districts for each of four grade level ranges, as computed
by the department pursuant to Section 47633, multiplied by the
average daily attendance, in corresponding grade level ranges, of any
pupils who attend charter schools funded pursuant to Chapter 6
(commencing with Section 47630) of Part 26.8 for which the district
is the sponsoring local educational agency, as defined in Section
47632, and who reside in and would otherwise have been eligible to
attend a noncharter school of the district.
               (i) A transfer of seventh and eighth grade pupils
between an elementary school district and a high school district
shall not result in the receiving district receiving a revenue limit
apportionment for those pupils that exceeds 105 percent of the
statewide average revenue limit for the type and size of the
receiving school district.
  SEC. 13.  Section 42238.49 is added to the Education Code, to
immediately follow Section 42238.48, to read:
   42238.49.  (a) (1) For the 2011-12 fiscal year, the Superintendent
shall compute an equalization adjustment for each school district,
so that the 2010-11 base revenue limit per unit of average daily
attendance of a school district is not less than the 2010-11 base
revenue limit per unit of average daily attendance above which fall
not more than 10 percent of the total statewide units of average
daily attendance for each category of school district set forth in
subdivision (b).
   (2) For purposes of this section, the base revenue limit shall not
include any amounts attributable to Section 45023.4, 46200, or
46201.
   (b) Subdivision (a) shall apply to the following school districts,
which shall be grouped according to size and type as follows:
  District                          ADA
Elementary ..................... less than 101
Elementary ..................... more than 100
High School .................... less than 301
High School .................... more than
                                  300
Unified ........................ less than 1,501
Unified ........................ more than 1,500


   (c) The Superintendent shall compute a revenue limit equalization
adjustment for each school district's base revenue limit per unit of
average daily attendance as follows:
   (1) Multiply the amount computed for each school district pursuant
to subdivision (a) by the average daily attendance used to calculate
the revenue limit for the 2011-12 fiscal year of a school district.
   (2) Divide the amount appropriated from the Supplemental Education
Payment Account for purposes of this section for the 2011-12 fiscal
year by the statewide sum of the amounts computed pursuant to
paragraph (1).
   (3) Multiply the amount computed for the school district pursuant
to paragraph (1) of subdivision (a) by the amount computed pursuant
to paragraph (2).
   (d) (1) For the purposes of this section, the 2010-11 statewide
90th percentile base revenue limit determined pursuant to paragraph
(1) of subdivision (a), and the fraction computed pursuant to
paragraph (2) of subdivision (c) for the 2010-11 second principal
apportionment, shall be final, and shall not be recalculated at
subsequent apportionments. The fraction computed pursuant to
paragraph (2) of subdivision (c) shall not exceed 1.00. For purposes
of determining the size of a school district pursuant to subdivision
(b), county superintendents of schools, in conjunction with the
Superintendent, shall use school district revenue limit average daily
attendance for the 2010-11 fiscal year as determined pursuant to
Section 42238.5 and Article 4 (commencing with Section 42280).
   (2) For the purposes of calculating the size of a school district
pursuant to subdivision (b), the Superintendent shall include units
of average daily attendance of any charter school for which the
school district is the sponsoring local educational agency.
   (3) For the purposes of computing the target amounts pursuant to
subdivision (a), the Superintendent shall count all charter school
average daily attendance toward the average daily attendance of the
school district that is the sponsoring local educational agency.
  SEC. 14.  Section 42238.146 of the Education Code is amended to
read:
   42238.146.  (a) (1) For the 2003-04 fiscal year, the revenue limit
for each school district determined pursuant to this article shall
be reduced by a 1.198 percent deficit factor.
   (2) For the 2004-05 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
0.323 percent deficit factor.
   (3) For the 2003-04 and 2004-05 fiscal years, the revenue limit
for each school district determined pursuant to this article shall be
further reduced by a 1.826 percent deficit factor.
   (4) For the 2005-06 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
0.892 percent deficit factor.
   (5) For the 2008-09 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
7.844 percent deficit factor.
   (6) For the 2009-10 fiscal year, the revenue limit for each school
district determined pursuant to this article shall be reduced by a
13.094 percent deficit factor.
   (b) In computing the revenue limit for each school district for
the 2006-07 fiscal year pursuant to this article, the revenue limit
shall be determined as if the revenue limit for that school district
had been determined for the 2003-04, 2004-05, and 2005-06 fiscal
years without being reduced by the deficit factors specified in
subdivision (a).
   (c) In computing the revenue limit for each school district for
the 2010-11 fiscal year pursuant to this article, the revenue limit
shall be determined as if the revenue limit for that school district
had been determined for the 2009-10 fiscal year without being reduced
by the deficit factors specified in subdivision (a).
  SEC. 15.  Section 42605 is added to the Education Code, to read:
   42605.  (a) (1) Unless otherwise prohibited under federal law or
otherwise specified in subdivision (e), for the 2008-09 fiscal year
to the 2012-13 fiscal year, inclusive, school districts, charter
schools, and county offices of education may use funding received,
pursuant to subdivision (b), from any of these items listed in
paragraph (2) that are contained in an annual Budget Act, for any
educational purpose:
   (2) 6110-104-0001, 6110-105-0001, 6110-108-0001, 6110-122-0001,
6110-123-0001, 6110-124-0001, 6110-137-0001, 6110-144-0001,
6110-150-0001, 6110-151-0001, 6110-156-0001, 6110-181-0001,
6110-188-0001, 6110-189-0001, 6110-190-0001, 6110-193-0001,
6110-195-0001, 6110-198-0001, 6110-204-0001, 6110-208-0001,
6110-209-0001, 6110-211-0001, 6110-227-0001, 6110-228-0001,
6110-232-0001, 6110-240-0001, 6110-242-0001, 6110-243-0001,
6110-244-0001, 6110-245-0001, 6110-246-0001, 6110-247-0001,
6110-248-0001, 6110-260-0001, 6110-265-0001, 6110-266-0001,
6110-267-0001, 6110-268-0001, and 6360-101-0001.
   (b) For the 2009-10 fiscal year to the 2012-13 fiscal year,
inclusive, the Superintendent shall apportion from the amounts
provided in the annual Budget Act for the items enumerated in
paragraph (2) of subdivision (a), an amount to a school district,
charter school, and county office of education based on the same
relative proportion that the local education agency received in the
2008-09 fiscal year for the programs funded through the items
enumerated in paragraph (2) of subdivision (a). A school district
that receives funding on behalf of a charter school pursuant to
Sections 47634.1 and 47651 shall continue to distribute the funds to
those charter schools based on the amounts distributed in the 2008-09
fiscal year, and shall adjust those amounts as specified in this
section. The amounts allocated shall be adjusted for any greater or
lesser amount appropriated for the items enumerated in paragraph (2)
of subdivision (a).
   (c) (1) This section does not obligate the state to refund or
repay reductions made pursuant to this section. A decision by a
school district to reduce funding pursuant to this section for a
state-mandated local program shall constitute a waiver of the
subvention of funds that the school district is otherwise entitled to
pursuant to Section 6 of Article XIII B of the California
Constitution on the amount so reduced.
   (2) As a condition of receipt of funds the governing board of the
school district or board of the county office of education, as
appropriate, at a regularly scheduled open public hearing shall take
testimony from the public, discuss, and approve or disapprove the
proposed use of funding.
   (d) For the 2008-09 fiscal year to the 2012-13 fiscal year,
inclusive, local education agencies that use the flexibility
provision of the section shall be deemed to be in compliance with the
program and funding requirements contained in statutory, regulatory,
and provisional language, associated with the items enumerated in
subdivision (a).
   (e) Notwithstanding subdivision (d), the following requirements
shall continue to apply:
   (1) For Items 6110-105-0001 and 6110-156-0001, the amount
authorized for flexibility shall exclude the funding provided for
instruction of CalWORKs eligible students pursuant to schedules (2)
and (3), and provisions 2 and 4.
   (2) (A) Any instructional materials purchased by a local education
agency shall be the materials adopted by the state board for
kindergarten and grades 1 to 8, inclusive, and for grades 9 to 12,
inclusive, the materials purchased shall be aligned with state
standards as defined by Section 60605, and shall also meet the
reporting and sufficiency requirements contained in Section 60119.
   (B) For purposes of this section, "sufficiency" means that each
pupil has sufficient textbooks and instructional materials in the
four core areas as defined by Section 60119, and that all pupils
within the local education agency who are enrolled in the same course
shall have identical textbooks and instructional materials.
   (3) For Item 6110-195-0001, the item shall exclude monies that are
required to fund awards for teachers that have previously met the
requirements necessary to obtain these awards, until the award is
paid in full.
   (4) As a condition of exercising the authority conferred on local
educational agencies to transfer funds to their general funds
pursuant to subdivision (a), both of the following requirements shall
be met:
   (A) The governing board of the school district, or the county
board of education, as appropriate, at a regularly scheduled open
public hearing, shall take testimony from the public, discuss, and
approve each transfer and the proposed use of funding.
   (B) In the existing Standardized Account Code Structure (SACS)
reporting process, a local educational agency shall report the
amounts transferred pursuant to this section by using the appropriate
program code for which these funds were expended. The State
Department of Education shall collect and provide this information to
the Department of Finance and to the appropriate policy and budget
committees of the Legislature by February 28, 2010.
   (5) For Item 6110-266-0001, a county office of education shall
conduct at least one site visit to each of the required schoolsites
pursuant to Section 1240.
  SEC. 16.  Section 52124 of the Education Code, as amended by
Section 1 of Chapter 515 of the Statutes of 2008, is amended to read:

   52124.  (a) A school district that implements a class size
reduction program pursuant to this chapter is subject to this
section.
   (b) A school district may establish a program to reduce class size
in kindergarten and grades 1 to 3, inclusive, and that program shall
be implemented at each schoolsite according to the following
priorities:
   (1) If only one grade level is reduced at a schoolsite, the grade
level shall be grade 1.
   (2) If only two grade levels are reduced at a schoolsite, the
grade levels shall be grades 1 and 2.
   (3) If three grade levels are reduced at a schoolsite, then those
grade levels shall be kindergarten and grades 1 and 2 or grades 1 to
3, inclusive. Priority shall be given to the reduction of class sizes
in grades 1 and 2 before the class sizes of kindergarten or grade 3
are reduced.
   (4) If four grade levels are reduced at a schoolsite, then those
grade levels shall be kindergarten and grades 1 to 3, inclusive.
First priority shall be given to the reduction of class sizes in
grades 1 and 2, and second priority shall be given to the reduction
of class size in kindergarten and grade 3. This paragraph shall be
operative only in those fiscal years for which funds are appropriated
expressly for the purposes of this paragraph.
   (c) It is the intent of the Legislature to continue to permit the
use of combination classes of more than one grade level to the extent
that school districts are otherwise permitted to use that
instructional strategy. However, a school district that uses a
combination class in a class for which funding is received pursuant
to this chapter shall not claim funding pursuant to this chapter if
the total number of pupils in the combination class, regardless of
grade level, exceeds 20 pupils per certificated teacher assigned to
provide direct instructional services.
   (d) The governing board of a school district shall certify to the
Superintendent that it has met the requirements of this section in
implementing its class size reduction program. If a school district
receives funding pursuant to this chapter but has not implemented its
class size reduction program for all grades and classes for which it
received funding pursuant to this chapter, the Superintendent shall
notify the Controller and the school district in writing and the
Controller shall deduct an amount equal to the amount received by the
school district under this chapter for each class that the school
district failed to reduce to a class size of 20 or fewer pupils from
the next principal apportionment or apportionments of state funds to
the district, other than basic aid apportionments required by Section
6 of Article IX of the California Constitution.
   (e) Except for a school district participating pursuant to
subdivision (h) of Section 52122, and except as set forth in Section
52124.3, the amount deducted pursuant to subdivision (d) shall be
adjusted as follows:
   (1) Twenty percent of the amount to which the district would
otherwise be eligible for each class for which the annual enrollment
determined pursuant to Section 52124.5 is greater than or equal to
20.5 but less than 21.0.
   (2) Forty percent of the amount to which the district would
otherwise be eligible for each class for which the annual average
enrollment determined pursuant to Section 52124.5 is greater than or
equal to 21.0 but less than 21.5.
   (3) Eighty percent of the amount to which the district would
otherwise be eligible for each class for which the annual average
enrollment determined pursuant to Section 52124.5 is greater than or
equal to 21.5 but less than 21.9.
   (4) The amount deducted pursuant to subdivision (d) for each class
for which the annual average enrollment determined pursuant to
Section 52124.5 is greater than or equal to 21.9 shall be the amount
of funding the district received for the class pursuant to this
chapter.
   (f) Notwithstanding any other provision of this chapter, a school
district located in the County of Los Angeles, Riverside, San
Bernardino, San Diego, or Ventura may claim funding pursuant to this
chapter for the 2003-04 school year based on enrollment counts before
the October 2003 fires, in classes for which the class size
reduction program is implemented, if the following criteria are met:
   (1) The school district submits to the Superintendent a "Request
for Allowance of Attendance because of Emergency Conditions" pursuant
to Section 46392 and the emergency conditions were caused by the
October 2003 fires.
   (2) The school district certifies that it suffered a loss of
enrollment in classes in which the class size reduction program is
implemented and this loss of enrollment is due to the October 2003
fires and would result in a decrease in funding that the district
receives pursuant to this chapter.
   (g) This section shall become inoperative on July 1, 2014, and as
of January 1, 2015, is repealed, unless a later enacted statute that
is enacted before January 1, 2015, deletes or extends the dates on
which it becomes inoperative or is repealed.
  SEC. 17.  Section 52124.3 is added to the Education Code, to read:
   52124.3.  (a) For the 2008-09, 2009-10, 2010-11, and 2011-12
fiscal years only, the amounts deducted pursuant to subdivision (d)
of Section 52124 shall be as follows:
   (1) Five percent of the amount to which the school district would
otherwise be eligible for each class for which the annual enrollment
determined pursuant to Section 52124.5 is greater than or equal to
20.5 but less than 21.5.
   (2) Ten percent of the amount to which the school district would
otherwise be eligible for each class for which the annual average
enrollment determined pursuant to Section 52124.5 is greater than or
equal to 21.5 but less than 22.5.
   (3) Fifteen percent of the amount to which the school district
would otherwise be eligible for each class for which the annual
average enrollment determined pursuant to Section 52124.5 is greater
than or equal to 22.5 but less than 23.0.
   (4) Twenty percent of the amount to which the school district
would otherwise be eligible for each class for which the annual
average enrollment determined pursuant to Section 52124.5 is greater
than or equal to 23.0 but less than 25.0.
   (5) Thirty percent of the amount to which the school district
would otherwise be eligible for each class for which the annual
average enrollment determined pursuant to Section 52124.5 is greater
than or equal to 25.0.
   (b) A local educational agency is eligible to receive funding
pursuant to this section only if it was participating in the K-3
Class Size Reduction Program as of December 10, 2008. An eligible
local educational agency may only receive funding for the grade level
or levels for which it had applied to receive funding as of December
10, 2008.
  SEC. 18.  Section 60119 of the Education Code is amended to read:
   60119.  (a) In order to be eligible to receive funds available for
the purposes of this article, the governing board of a school
district shall take the following actions:
   (1) (A) The governing board shall hold a public hearing or
hearings at which the governing board shall encourage participation
by parents, teachers, members of the community interested in the
affairs of the school district, and bargaining unit leaders, and
shall make a determination, through a resolution, as to whether each
pupil in each school in the district has sufficient textbooks or
instructional materials, or both, that are aligned to the content
standards adopted pursuant to Section 60605 in each of the following
subjects, as appropriate, that are consistent with the content and
cycles of the curriculum framework adopted by the state board:
   (i) Mathematics.
   (ii) Science.
   (iii) History-social science.
   (iv) English/language arts, including the English language
development component of an adopted program.
   (B) The public hearing shall take place on or before the end of
the eighth week from the first day pupils attend school for that
year. A school district that operates schools on a multitrack,
year-round calendar shall hold the hearing on or before the end of
the eighth week from the first day pupils attend school for that year
on any tracks that begin a school year in August or September. For
purposes of the 2004-05 fiscal year only, the governing board of a
school district shall make a diligent effort to hold a public hearing
pursuant to this section on or before December 1, 2004.
   (C) As part of the hearing required pursuant to this section, the
governing board also shall make a written determination as to whether
each pupil enrolled in a foreign language or health course has
sufficient textbooks or instructional materials that are consistent
with the content and cycles of the curriculum frameworks adopted by
the state board for those subjects. The governing board also shall
determine the availability of laboratory science equipment as
applicable to science laboratory courses offered in grades 9 to 12,
inclusive. The provision of the textbooks, instructional materials,
or science equipment specified in this subparagraph is not a
condition of receipt of funds provided by this subdivision.
   (2) (A) If the governing board determines that there are
insufficient textbooks or instructional materials, or both, the
governing board shall provide information to classroom teachers and
to the public setting forth, in the resolution, for each school in
which an insufficiency exists, the percentage of pupils who lack
sufficient standards-aligned textbooks or instructional materials in
each subject area and the reasons that each pupil does not have
sufficient textbooks or instructional materials, or both, and take
any action, except an action that would require reimbursement by the
Commission on State Mandates, to ensure that each pupil has
sufficient textbooks or instructional materials, or both, within two
months of the beginning of the school year in which the determination
is made.
   (B) In carrying out subparagraph (A), the governing board may use
money in any of the following funds:
   (i) Any funds available for textbooks or instructional materials,
or both, from categorical programs, including any funds allocated to
school districts that have been appropriated in the annual Budget
Act.
   (ii) Any funds of the school district that are in excess of the
amount available for each pupil during the prior fiscal year to
purchase textbooks or instructional materials, or both.
   (iii) Any other funds available to the school district for
textbooks or instructional materials, or both.
   (b) The governing board shall provide 10 days' notice of the
public hearing or hearings set forth in subdivision (a). The notice
shall contain the time, place, and purpose of the hearing and shall
be posted in three public places in the school district. The hearing
shall be held at a time that will encourage the attendance of
teachers and parents and guardians of pupils who attend the schools
in the district and shall not take place during or immediately
following school hours.
   (c) (1) For purposes of this section, "sufficient textbooks or
instructional materials" means that each pupil, including English
learners, has a standards-aligned textbook or instructional
materials, or both, to use in class and to take home. This paragraph
does not require two sets of textbooks or instructional materials for
each pupil.
   (2) Sufficient textbooks or instructional materials as defined in
paragraph (1), does not include photocopied sheets from only a
portion of a textbook or instructional materials copied to address a
shortage.
   (d) The governing board of a school district that receives funds
for instructional materials from any state source is subject to the
requirements of this section.
  SEC. 19.  Section 60422.1 is added to the Education Code, to read:
   60422.1.  (a) Notwithstanding subdivision (i) of Section 60200,
Section 60422, or any other provision of law, for the 2008-09 and
2009-10 fiscal years, the governing board of a school district is not
required to provide pupils with instructional materials by a
specified period of time following adoption of those materials by the
state board.
   (b) Notwithstanding subdivision (a), this section does not relieve
school districts of their obligations under the law to provide every
pupil with standards-aligned textbooks or instructional materials,
as provided in Section 60119.
   (c) This section does not relieve school districts of the
obligation to hold a public hearing or hearings pursuant to
subparagraphs (A) and (B) of paragraph (1) of subdivision (a) of
Section 60119.
   (d) This section shall become inoperative on July 1, 2010, and, as
of January 1, 2011, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2011, deletes or
extends the dates on which it becomes inoperative and is repealed.
  SEC. 20.  Section 92612.5 is added to the Education Code, to read:
   92612.5.  It is the intent of the Legislature that no new General
Fund augmentation be made available for contributions to the
University of California Retirement Plan.
  SEC. 21.  Section 33 of Chapter 757 of the Statutes of 2008 is
repealed.
  SEC. 22.  Section 34 of Chapter 757 of the Statutes of 2008 is
amended to read:
  Sec. 34.  (a) The sum of nine hundred five million seven hundred
thousand dollars ($905,700,000) is hereby appropriated from the
General Fund to the State Department of Education. This appropriation
reflects the portions of the February 2009 principal apportionment
and the 2009 payment for the class size reduction, as set forth in
Chapter 6.10 (commencing with Section 52120) of Part 28 of Division 4
of the Education Code, for kindergarten and grades 1 to 3,
inclusive, and the June 2009 principal apportionment that are to be
deferred until July 2009 and attributed to the 2009-10 fiscal year.
Notwithstanding any other law, the department shall encumber the
funds appropriated in this section by July 31, 2009. It is the intent
of the Legislature that, by extending the encumbrance authority for
the funds appropriated in this section to July 31, 2009, the funds
will be treated in a manner consistent with Section 1.80 of the
Budget Act of 2008. The appropriation is made in accordance with the
following schedule:
   (1) Six million two hundred twenty-seven thousand dollars
($6,227,000) for apprenticeship programs to be expended consistent
with the requirements specified in Item 6110-103-0001 of Section 2.00
of the Budget Act of 2008.
   (2) Ninety million one hundred seventeen thousand dollars
($90,117,000) for supplemental instruction to be expended consistent
with the requirements specified in Item 6110-104-0001 of Section 2.00
of the Budget Act of 2008. Of the amount appropriated by this
paragraph, fifty-one million sixty-one thousand dollars ($51,061,000)
shall be expended consistent with Schedule (1) of Item 6110-104-0001
of Section 2.00 of the Budget Act of 2008, twelve million three
hundred thirty thousand dollars ($12,330,000) shall be expended
consistent with Schedule (2) of that item, four million six hundred
ninety thousand dollars ($4,690,000) shall be expended consistent
with Schedule (3) of that item, and twenty-two million thirty-six
thousand dollars ($22,036,000) shall be expended consistent with
Schedule (4) of that item.
   (3) Thirty-nine million six hundred thirty thousand dollars
($39,630,000) for regional occupational centers and programs to be
expended consistent with the requirements specified in Schedule (1)
of Item 6110-105-0001 of Section 2.00 of the Budget Act of 2008.
   (4) Four million two hundred ninety-four thousand dollars
($4,294,000) for the Gifted and Talented Pupil Program to be expended
consistent with the requirements specified in Item 6110-124-0001 of
Section 2.00 of the Budget Act
           of 2008.
   (5) Forty-five million eight hundred ninety-six thousand dollars
($45,896,000) for adult education to be expended consistent with the
requirements specified in Schedule (1) of Item 6110-156-0001 of
Section 2.00 of the Budget Act of 2008.
   (6) Four million seven hundred fifty-one thousand dollars
($4,751,000) for community day schools to be expended consistent with
the requirements specified in Item 6110-190-0001 of Section 2.00 of
the Budget Act of 2008.
   (7) Five million nine hundred forty-seven thousand dollars
($5,947,000) for categorical block grants for charter schools to be
expended consistent with the requirements specified in Item
6110-211-0001 of Section 2.00 of the Budget Act of 2008.
   (8) Thirty-eight million seven hundred twenty thousand dollars
($38,720,000) for the School Safety Block Grant to be expended
consistent with the requirements specified in Schedule (1) of Item
6110-228-0001 of Section 2.00 of the Budget Act of 2008.
   (9) Five hundred seventy million dollars ($570,000,000) for class
size reduction in kindergarten and grades 1 to 3, inclusive, to be
expended consistent with the requirements specified in Item
6110-234-0001 of Section 2.00 of the Budget Act of 2008.
   (10) One hundred million one hundred eighteen thousand dollars
($100,118,000) for the Targeted Instructional Improvement Grant
Program to be expended consistent with the requirements specified in
Item 6110-246-0001 of Section 2.00 of the Budget Act of 2008.
   (b) For the purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the
appropriations made by subdivision (a) shall be deemed to be "General
Fund revenues appropriated for school districts," as defined in
subdivision (c) of Section 41202 of the Education Code, for the
2009-10 fiscal year, and included within the "total allocations to
school districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIII B," as
defined in subdivision (e) of Section 41202 of the Education Code,
for the 2009-10 fiscal year.
  SEC. 23.  Section 35 of Chapter 757 of the Statutes of 2008 is
amended to read:
  Sec. 35.  (a) The sum of five hundred forty million dollars
($540,000,000) is hereby appropriated from the General Fund to the
Board of Governors of the California Community Colleges for
apportionments to community college districts, for expenditure during
the 2009-10 fiscal year, to be expended in accordance with Schedule
(1) of Item 6870-101-0001 of Section 2.00 of the Budget Act of 2008.
   (b) The disbursal of funds appropriated in subdivision (a) shall
be deferred until July of the 2009-10 fiscal year. This appropriation
and deferment represent one hundred fifteen million dollars
($115,000,000) of the January apportionment to community college
districts, one hundred fifteen million dollars ($115,000,000) of the
February apportionment to community college districts, fifty-five
million dollars ($55,000,000) of the March apportionment to community
college districts and fifty-five million dollars ($55,000,000) of
the April apportionment to community college districts, and two
hundred million dollars ($200,000,000) of the June apportionment to
community college districts.
   (c) For the purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the
appropriation made by subdivision (a) shall be deemed to be "General
Fund revenues appropriated for community college districts," as
defined in subdivision (d) of Section 41202 of the Education Code,
for the 2009-10 fiscal year, and included within the "total
allocations to school districts and community college districts from
General Fund proceeds of taxes appropriated pursuant to Article XIII
B," as defined in subdivision (e) of Section 41202 of the Education
Code, for the 2009-10 fiscal year.
  SEC. 24.  Section 37 of Chapter 757 of the Statutes of 2008 is
amended to read:
  Sec. 37.  (a) Notwithstanding Sections 42238.1 and 42238.15 of the
Education Code or any other provision of law, the cost-of-living
adjustment for Items 6110-104-0001, 6110-105-0001, 6110-119-0001,
6110-122-0001, 6110-124-0001, 6110-128-0001, 6110-150-0001,
6110-156-0001, 6110-158-0001, 6110-161-0001, 6110-167-0001,
6110-181-0001, 6110-189-0001, 6110-190-0001, 6110-193-0001,
6110-196-0001, 6110-203-0001, 6110-209,0001, 6110-211-0001,
6110-224-0001, 6110-232-0001, 6110-234-0001, 6110-244-0001, and
6110-246-0001 of the Budget Act of 2008 (Chapters 268 and 269 of the
Statutes of 2008) is zero percent for the 2008-09 fiscal year. All
funds appropriated in the Budget Act of 2008 in the items identified
in this section are in lieu of the amounts that would otherwise be
appropriated pursuant to any other provision of law.
   (b) Notwithstanding Section 42238.1 of the Education Code or any
other provision of law, for purposes of Section 48664 of the
Education Code the cost-of-living adjustment is zero percent for the
2008-09 fiscal year.
  SEC. 25.  Item 6110-111-0001 of Section 2.00 of the Budget Act of
2008 is repealed.
  SEC. 26.  Item 6110-111-0046 is added to Section 2.00 of the Budget
Act of 2008, to read:
6110-111-0046--For local assistance,
Department of Education (from the Public
Transportation Account, State Transportation
Fund) Program 10-Instruction, for transfer
to Section A of the State School Fund, Home
to School Transportation, pursuant to
Article 10 (commencing with Section 41850)
of Chapter 5 of Part 24 of Division 3 of      198,446,0
Title 2 of the Education Code................        00
      Provisions:
      1.      Notwithstanding any other
              provision of law, these funds
              shall be used to provide mass
              transportation services for
              pupils enrolled in school
              districts that receive these
              funds.


  SEC. 27.  Item 6110-111-3116 is added to Section 2.00 of the Budget
Act of 2008, to read:
6110-111-3116--For local assistance,
Department of Education (from the Mass
Transportation Fund) Program 10-
Instruction, for transfer to Section A of
the State School Fund, Home to School
Transportation, pursuant to Article 10
(commencing with Section 41850) of
Chapter 5 of Part 24 of Division 3 of
Title 2 of the Education Code, and Small
School District Transportation, pursuant
to Article 4.5 (commencing with Section
42290) of Chapter 7 of Part 24 of
Division 3 of Title 2 of the Education
Code...................................... 420,268,000
    Schedule:
    (1)   10.10.006-Pupil
          Transportation......  414,182,000
    (2)   10.10.008-Small
          School District Bus
          Replacement.........    6,086,000
    Provisions:
    1.    Of the funds appropriated in
          this     item, $0 is for the
          purpose of providing a cost-of-
          living adjustment.
    2.    Notwithstanding any other
          provision of law, these funds
          shall be used to provide mass
          transportation services for
          pupils enrolled in school
          districts that receive these
          funds.


  SEC. 28.  Item 6110-196-0001 of Section 2.00 of the Budget Act of
2008 is amended to read:
6110-196-0001--For local assistance,
Department of Education (Proposition 98),
for transfer by the Controller to Section
A of the State School Fund, for
allocation by the Superintendent of
Public Instruction to school districts,
county offices of education, and other
agencies for the purposes of Proposition
98 educational programs funded in this
item, in lieu of the amount that
otherwise would be appropriated pursuant
to any other statute...................... 1,675,043,000
   Schedule:
   (1)  30.10.010-Special
        Program, Child
        Development, Preschool     426,327,
        Education.................      000
   (1.5 30.10.020-Child Care       1,775,31
   )    Services..................    0,000
        (a)  30.10.020.
             001-
             Special
             Program,
             Child
             Developmen
             t,
             General
             Child
             Developmen
             t          773,796,00
             Programs..          0
        (c)  30.10.020.
             004-
             Special
             Program,
             Child
             Developmen
             t,
             Migrant
             Day Care.. 35,966,000
        (d)  30.10.020.
             007-
             Special
             Program,
             Child
             Developmen
             t,
             Alternativ
             e Payment  257,037,00
             Program...          0
        (e)  30.10.020.
             011-
             Special
             Program,
             Child
             Developmen
             t,
             Alternativ
             e Payment
             Program--  342,960,00
             Stage 2...          0
        (f)  30.10.020.
             012-
             Special
             Program,
             Child
             Developmen
             t,
             Alternativ
             e Payment
             Program--
             Stage 3    230,204,00
             Setaside..          0
        (g)  30.10.020.
             008-
             Special
             Program,
             Child
             Developmen
             t,
             Resource
             and
             Referral.. 19,438,000
        (i)  30.10.020.
             015-
             Special
             Program,
             Child
             Developmen
             t,
             Extended
             Day Care.. 31,553,000
        (j)  30.10.020.
             096-
             Special
             Program,
             Child
             Developmen
             t,
             Allowance
             for
             Handicappe
             d.........  1,997,000
        (k)  30.10.020.
             106-
             Special
             Program,
             Child
             Developmen
             t,
             California
             Child
             Care
             Initiative
             ..........    250,000
        (l)  30.10.020.
             901-
             Special
             Program,
             Child
             Developmen
             t,
             Quality
             Improvemen
             t......... 67,572,000
        (m)  30.10.020.
             911-
             Special
             Program,
             Child
             Developmen
             t,
             Centralize
             d
             Eligibilit
             y List....  7,900,000
        (n)  30.10.020.
             920-
             Special
             Program,
             Child
             Developmen
             t, Local
             Planning
             Councils..  6,637,000
   (3)  30.10.020.908-Special
        Program, Child
        Development, Cost-of-
        Living Adjustments........        0
   (4)  30.10.020.909-Special
        Program, Child
        Development, Growth        10,917,0
        Adjustments...............       00
   (5)  Amount payable from the
        Federal Trust Fund (Item   -537,511
        6110-196-0890)............     ,000
   Provisions:
   1.   Notwithstanding Section 8278 of
        the Education Code, funds
        available for expenditure pursuant
        to that section shall be expended
        in the current fiscal year
        pursuant to the following schedule:
        (a)  $4,000,000 or whatever lesser
             or greater amount is
             necessary for accounts
             payable pursuant to paragraph
             (1) of subdivision (b) of
             Section 8278 of the Education
             Code.
        (b)  $22,963,000 shall be
             available for CalWORKs Stage
             3 child care.
        (c)  The Controller shall
             establish an account entitled
             ""Section 8278 Expenditures
             in 2007'' in Item 6110-196-
             0001, Program 30.10.060. Any
             unexpended General Fund
             balances as of June 30, 2008,
             or subsequent abatements,
             from those amounts listed in
             Schedules (1), (1.5)(a),
             (1.5)(c), (1.5)(d), (1.5)(g),
             (1.5)(i), (1.5)(j), (1.5)(k),
             (1.5)(l), and (1.5)(n), that
             are available pursuant to
             Section 8278 of the Education
             Code, shall be transferred to
             the account for the purpose
             of making expenditures
             pursuant to that section and
             as specified in this
             provision.
   2.   (a)  Notwithstanding any other
             provision of law, alternative
             payment child care programs
             shall be subject to the rate
             ceilings established in the
             Regional Market Rate Survey
             of California child care and
             development providers for
             provider payments. When
             approved pursuant to Section
             8447 of the Education Code,
             any changes to the market
             rate limits, adjustment
             factors, or regions shall be
             utilized by the State
             Department of Education and
             the State Department of
             Social Services in various
             programs under the
             jurisdiction of either
             department.
        (b)  Notwithstanding any other
             provision of law, the funds
             appropriated in this item for
             the cost of licensed child
             care services provided
             through alternative payment
             or voucher     programs,
             including those provided
             under Article 3 (commencing
             with Section 8220) and
             Article 15.5 (commencing with
             Section 8350) of Chapter 2 of
             Part 6 of Division 1 of Title
             1 of the Education Code,
             shall be used only to
             reimburse child care costs up
             to the 85th percentile of the
             rates charged by providers
             offering the same type of
             child care for the same age
             child in that region
             based on the 2005 regional
             market rate survey.
             Notwithstanding Section 8357
             of the Education Code, it is
             the intent of the Legislature
             to consider new rate limits
             based on the 2007 regional
             market rate survey data for
             the 2009-10 fiscal year.
   3.   Of the amount appropriated in
        Schedule (1), $50,000,000 is
        available for Prekindergarten and
        Family Literacy preschool programs
        pursuant to Chapter 211 of the
        Statutes of 2006. Of the amount
        appropriated in Schedule (1),
        $5,000,000 is available for the
        provision of wraparound care to
        children enrolled in state
        preschool programs. The
        Superintendent of Public
        Instruction shall assign priority
        for these funds to children
        enrolled in prekindergarten and
        family literacy programs
        authorized by Section 8238.4 of
        the Education Code.
   4.   Funds in Schedule (1.5)(l) shall
        be reserved for activities to
        improve the quality and
        availability of child care,
        pursuant to the following:
        (a)  $2,014,056 is for the
             schoolage care and resource
             and referral earmark.
        (b)  $11,359,176 is for the infant
             and toddler earmark and shall
             be used for increasing the
             supply of quality child care
             for infants and toddlers.
        (c)  $7,237,000 in one-time
             federal funding is available
             for use in the 2008-09 fiscal
             year. Of that amount,
             $200,000 shall be used for
             Trustline registration
             workload (Chapter 3.35
             (commencing with Section
             1596.60) of Division 2 of the
             Health and Safety Code). The
             remaining funds shall be used
             for child care and
             development quality
             expenditures identified by
             the State Department of
             Education (SDE) and approved
             by the Department of Finance.
        (d)  From the remaining funds in
             Schedule (1.5)(l), the
             following amounts shall be
             allocated for the following
             purposes: $4,000,000 to train
             former CalWORKs recipients as
             child care teachers,
             $2,700,000 for contracting
             with the     State Department
             of Social Services (DSS) for
             increased inspections of
             child care facilities,
             $1,000,000 for Trustline
             registration workload
             (Chapter 3.35 (commencing
             with Section 1596.60) of
             Division 2 of the Health and
             Safety Code), $500,000 for
             health and safety training
             for licensed and exempt child
             care providers, $300,000 for
             the Health Hotline, and
             $300,000 to implement a
             technical assistance program
             to child care providers in
             accessing financing for
             renovation, expansion, or
             construction of child care
             facilities.
   5.   Of the amount appropriated in
        Schedule (1.5)(l), $15,000,000
        shall be for child care worker
        recruitment and retention programs
        pursuant to Section 8279.7 of the
        Education Code, and $320,000 shall
        be for the Child Development
        Training Consortium.
   6.   (a)  The State Department of
             Education (SDE) shall conduct
             monthly analyses of CalWORKs
             Stage 2 and Stage 3 caseloads
             and expenditures and adjust
             agency contract maximum
             reimbursement amounts and
             allocations as necessary to
             ensure funds are distributed
             proportionally to need. The
             SDE shall share monthly
             caseload analyses with the
             State Department of Social
             Services (DSS).
        (b)  The SDE shall provide
             quarterly information
             regarding the sufficiency of
             funding for Stage 2 and Stage
             3 to DSS. The SDE shall
             provide caseloads,
             expenditures, allocations,
             unit costs, family fees, and
             other key variables and
             assumptions used in
             determining the sufficiency
             of     state allocations.
             Detailed backup by month and
             on a county-by-county basis
             shall be provided to the DSS
             at least on a quarterly basis
             for comparisons with Stage 1
             trends.
        (d)  By September 30 and March 30
             of each year, the SDE shall
             ensure that detailed caseload
             and expenditure data, through
             the most recent period for
             Stage 2 and Stage 3 Setaside
             along with all relevant
             assumptions, is provided to
             DSS to facilitate budget
             development. The detailed
             data provided shall include
             actual and projected monthly
             caseload from Stage 2
             scheduled to time off of
             their transitional child care
             benefit from the last actual
             month reported by agencies
             through the next two fiscal
             years as well as local
             attrition experience. DSS
             shall utilize data provided
             by the SDE, including key
             variables from the prior
             fiscal year and the     first
             two months of the current
             fiscal year, to provide
             coordinated estimates in
             November of each year for
             each of the three stages of
             care for preparation of the
             Governor's Budget, and shall
             utilize data from at least
             the first two quarters of the
             current fiscal year, and any
             additional monthly data as
             they become available for
             preparation of the May
             Revision. The DSS shall share
             its assumptions and
             methodology with the SDE in
             the preparation of the
             Governor's Budget.
        (e)  The SDE shall coordinate with
             the DSS to identify annual
             general subsidized child care
             program expenditures for
             Temporary Assistance for
             Needy Families-eligible
             children. The SDE shall
             modify existing reporting
             forms as necessary to capture
             this data.
        (f)  The SDE shall provide to the
             DSS, upon request, access to
             the information and data
             elements necessary to comply
             with federal reporting
             requirements and any other
             information deemed necessary
             to improve estimation of
             child care budgeting needs.
   7.   Notwithstanding any other
        provision of law, the funds in
        Schedule (1.5)(f) are reserved
        exclusively for continuing child
        care for the following: (a) former
        CalWORKs families who are working,
        have left cash aid, and have
        exhausted their two-year
        eligibility for transitional
        services in either Stage 1 or 2
        pursuant to subdivision (c) of
        Section 8351 or Section 8353 of
        the Education Code, respectively,
        but still meet eligibility
        requirements for receipt of
        subsidized     child care
        services, and (b) families who
        received lump-sum diversion
        payments or diversion services
        under Section 11266.5 of the
        Welfare and Institutions Code and
        have spent two years in Stage 2
        off of cash aid, but still meet
        eligibility requirements for
        receipt of subsidized child care
        services.
   8.   Nonfederal funds appropriated in
        this item which have been budgeted
        to meet the state's Temporary
        Assistance for Needy Families
        maintenance-of-effort requirement
        established pursuant to the
        federal Personal Responsibility
        and Work Opportunity
        Reconciliation Act of 1996 (P.L.
        104-193) may not be expended in
        any way that would cause their
        disqualification as a federally
        allowable maintenance-of-effort
        expenditure.
   9.   (a)  Notwithstanding any other
             provision of law, the income
             eligibility limits pursuant
             to Section 8263.1 of the
             Education Code that were
             applicable to the 2007-08
             fiscal year shall remain in
             effect for the 2008-09 fiscal
             year.
   10.  Of the amounts provided in this
        item, $0 is available to provide a
        cost-of-living adjustment for
        Schedules (1), (1.5)(a), (1.5)(c),
        (1.5)(d), (1.5)(g), (1.5)(i),
        (1.5)(j), and (1.5)(n). The
        maximum standard reimbursement
        rate shall not exceed $34.38 per
        day for general child care
        programs and $21.22 per day for
        state preschool programs.
        Furthermore, the migrant child
        care and Cal-SAFE child care
        programs shall adhere to the
        maximum standard reimbursement
        rates as prescribed for the
        general child care     programs.
        All other rates and adjustment
        factors shall be revised to
        conform.
   11.  Of the amounts provided in this
        item, $10,917,000 is available to
        provide a growth adjustment for
        Schedules (1), (1.5)(a), (1.5)(c),
        (1.5)(d), (1.5)(i), and (1.5)(j).
   12.  (a)  Notwithstanding any other
             provision of law, the funds
             in Schedule (1.5)(m) are
             appropriated exclusively for
             developing and maintaining a
             centralized eligibility list
             in each county pursuant to
             Section 8227 of the Education
             Code. By November 1 of each
             year, the State Department of
             Education shall provide a
             status report on implementing
             eligibility lists in each
             county, which     shall
             include, but is not limited
             to, the cost of
             implementation and operation
             of the eligibility lists in
             each county, and number of
             children and families on the
             list for each county.
   13.  Notwithstanding Section 8278.3 of
        the Education Code or any other
        provision of law, up to $5,000,000
        of the Child Care Facilities
        Revolving Fund balance may be
        allocated for use on a one-time
        basis for renovations and repairs
        to meet health and safety
        standards, to comply with the
        federal Americans with
        Disabilities Act of 1990 (42
        U.S.C. Sec. 12101 et seq.), and to
        perform emergency repairs, that
        were the result of an unforeseen
        event and are necessary to
        maintain continued normal
        operation of the child care and
        development program. These funds
        shall be made available to school
        districts and contracting agencies
        that provide subsidized center-
        based     services pursuant to the
        Child Care and Development
        Services Act (Chapter 2
        (commencing with Section 8200) of
        Part 6 of Division 1 of Title 1 of
        the Education Code).
   14.  It is the intent of the
        Legislature to fully fund the
        third stage of child care for
        former CalWORKs recipients.


  SEC. 29.  Item 6110-234-0001 of the Budget Act of 2008 is amended
to read:
6110-234-0001--For local assistance,
Department of Education (Proposition 98),
Program 10.25, for transfer by the
Controller to Section A of the State
School Fund, for allocation by the
Superintendent of Public Instruction for
the Class Size Reduction Program pursuant
to Chapter 6.10 (commencing with Section
        52120) of Part 28 of Division 4 of Title
2 of the Education Code................... 1,769,291,231
      Provisions:
      1.     Schools participating in
             Option One shall receive a
             per-pupil rate of $1,071.
             Schools participating in
             Option Two shall receive a
             per-pupil rate of $535.


  SEC. 30.  Item 6110-488 of Section 2.00 of the Budget Act of 2008
is amended to read:
6110-488--Reappropriation (Proposition 98),
Department of Education. Notwithstanding any other
provision of law, the unobligated balances from the
following items are available for reappropriation
for the purposes specified in Provisions 3, 4, and 5:
       0001--General Fund
       (1)        $12,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for preschool
                  education and child care programs
                  in Schedules (1) and (1.5) of Item
                  6110-196-0001 of the Budget Act of
                  2003 (Ch. 157, Stats. 2003), as
                  carried forward per Provision 1 of
                  Item 6110-196-0001 of the Budget
                  Act of 2005 (Chs. 38 and 39, Stats.
                  2005).
       (2)        $1,441,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for preschool
                  education and child care programs
                  in Schedules (1) and (1.5) of Item
                  6110-196-0001 of the Budget Act of
                  2004 (Ch. 208, Stats. 2004), as
                  carried forward per Provision 1 of
                  Item 6110-196-0001 of the Budget
                  Act of 2006 (Chs. 47 and 48, Stats.
                  2006).
       (3)        $3,663,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for preschool
                  education and child care programs
                  in Schedules (1) and (1.5) of Item
                  6110-196-0001 of the Budget Act of
                  2005 (Chs. 38 and 39, Stats. 2005),
                  $1,749,000 of which was carried
                  forward per Provision 1 of Item
                  6110-196-0001 of the Budget Act of
                  2007 (Chs. 171 and 172, Stats.
                  2007).
       (4)        $12,921,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for CalWORKs Stage 2
                  and Stage 3 child care in Schedules
                  (1.5)(e) and (1.5)(f) of Item 6110-
                  196-0001 of the Budget Act of 2006
                  (Chs. 47 and 48, Stats. 2006).
       (6)        $18,120,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for preschool
                  education and child care programs
                  in Schedules (1) and (1.5) of Item
                  6110-196-0001 of the Budget Act of
                  2007 (Chs. 171 and 172, Stats.
                  2007), with the exception of
                  Schedules (1.5)(e) and (1.5)(f) for
                  CalWORKs child care programs.
       (7)        $8,000,000 of the amount
                  appropriated to the Child Care
                  Facilities Revolving Fund
                  established pursuant to Section
                  8278.3 of the Education Code from
                  Section 2.00 of the Budget Act of
                  2007 (Chs. 171 and 172, Stats.
                  2007).
       (8)        $5,000,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the provision of
                  wraparound care to children
                  enrolled in preschool programs
                  pursuant to Section 8238.6 of the
                  Education Code (Ch. 211, Stats.
                  2006).
       (9)        $48,000 or whatever greater or
                  lesser amount reflects the
                  unexpended funds from subdivision
                  (a) of Section 9 of Chapter 734 of
                  the Statutes of 1999.
       (10)       $21,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for Community-Based
                  English Tutoring pursuant to
                  Section 315 of the Education Code,
                  as enacted by Proposition 227 in
                  1998.
       (11)       $9,200,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for juvenile education
                  in Item 5225-011-0001 of the Budget
                  Act of 2007 (Chs. 171 and 172,
                  Stats. 2007).
       (12)       $76,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for Small School
                  District Bus Replacement in
                  Schedule (2) of Item 6110-111-0001
                  of the Budget Act of 2005 (Chs. 38
                  and 39, Stats. 2005).
       (13)       $488,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for     Home to School
                  Transportation in Schedule (1) of
                  Item 6110-111-0001 of the Budget
                  Act of 2006 (Chs. 47 and 48, Stats.
                  2006).
       (14)       $545,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the California
                  High School Exit Examination in
                  Schedule (4) of Item 6110-113-0001
                  of the Budget Act of 2006 (Chs. 47
                  and 48, Stats. 2006).
       (15)       $2,060,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for Assessment Review
                  and Reporting and the STAR Program
                  in Schedules (1) and (2) of Item
                  6110-113-0001 of the Budget Act of
                  2007 (Chs. 171 and 172, Stats.
                  2007).
       (16)       $19,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for transfer to the
                  State School Fund for specialized
                  secondary programs in Item 6110-122-
                  0001 of the Budget Act of 2006
                  (Chs. 47 and 48, Stats. 2006).
       (17)       $17,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Immediate
                  Intervention/Underperforming
                  Schools Program Corrective Actions
                  in Schedule (3) of Item 6110-123-
                  0001 of the Budget Act of 2005
                  (Chs. 38 and 39, Stats. 2005).
       (18)       $2,993,000 or whatever     greater
                  or lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the implementation
                  of the Public Schools
                  Accountability Act of 1999 for the
                  Immediate
                  Intervention/Underperforming
                  Schools Program Corrective Actions
                  in Schedule (2) of Item 6110-123-
                  0001 of the Budget Act of 2006
                  (Chs. 47 and 48, Stats. 2006).
       (19)       $615,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the implementation
                  of the Public Schools
                  Accountability Act of 1999 for the
                  Immediate
                  Intervention/Underperforming
                  Schools Program Corrective Actions
                  in Schedule (2) of Item 6110-123-
                  0001 of the Budget Act of 2007
                  (Chs. 171 and 172, Stats. 2007).
       (20)       $5,149,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the English
                  Language Learners Program in
                  Schedule (2) of Item 6110-125-0001
                  of the Budget Act of 2006 (Chs. 47
                  and 48, Stats. 2006).
       (21)       $5,149,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the English
                  Language Acquisition Program in
                  Schedule (2) of Item 6110-125-0001
                  of the Budget Act of 2007 (Chs. 171
                  and 172, Stats. 2007).
       (22)       $109,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for transfer to the
                  State School Fund for Economic
                  Impact Aid in Schedule (1) of
                  Item 6110-128-0001 of the Budget
                  Act of 2005 (Chs. 38 and 39, Stats.
                  2005).
       (23)       $4,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for transfer to the
                  State School Fund for Economic
                  Impact Aid in Item 6110-128-0001 of
                  the Budget Act of 2006 (Chs. 47 and
                  48, Stats. 2006).
       (24)       $1,500,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Administrator
                  Training Program in Item 6110-144-
                  0001 of the Budget Act of 2007
                  (Chs. 171 and 172, Stats. 2007).
       (25)       $7,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the American
                  Indian Early Childhood Education
                  Program in Item 6110-150-0001 of
                  the Budget Act of 2006 (Chs. 47 and
                  48, Stats. 2006).
       (26)       $110,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for American Indian
                  Education Centers in Schedule (1)
                  of Item 6110-151-0001 of the Budget
                  Act of 2005 (Chs. 38 and 39, Stats.
                  2005).
       (27)       $177,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for American Indian
                  Education Centers in Item 6110-151-
                  0001 of the Budget Act of     2006
                  (Chs. 47 and 48, Stats. 2006).
       (28)       $1,385,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for adults in
                  correctional facilities in Item
                  6110-158-0001 of the Budget Act of
                  2006 (Chs. 47 and 48, Stats. 2006).
       (29)       $107,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for special education
                  instruction in Schedule (1) of Item
                  6110-161-0001 of the Budget Act of
                  2005 (Chs. 38 and 39, Stats. 2005).
       (30)       $21,919,000 or whatever greater
                  or lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for special education
                  instruction in Schedule (1) of Item
                  6110-161-0001 of the Budget Act of
                  2006 (Chs. 47 and 48, Stats. 2006).
       (31)       $57,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for vocational
                  education for partnership academies
                  in Item 6110-166-0001 of the Budget
                  Act of 2006 (Chs. 47 and 48, Stats.
                  2006).
       (32)       $23,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Agricultural
                  Vocational Education Incentive
                  Program in Item 6110-167-0001 of
                  the Budget Act of 2005 (Chs. 38 and
                  39, Stats. 2005).
       (33)       $369,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for educational
                  technology programs in Item 6110-
                  181-0001 of the Budget Act of 2005
                  (Chs. 38 and 39, Stats. 2005).
       (34)       $369,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  transferred to the State School
                  Fund for educational technology
                  programs in Item 6110-181-0001 of
                  the Budget Act of 2006 (Chs. 47 and
                  48, Stats. 2006).
       (35)       $27,000 or whatever greater or
                  lesser amount reflects the
                  unexpended     balance of the
                  amount appropriated for staff
                  development for teacher peer review
                  in Schedule (2) of Item 6110-193-
                  0001 of the Budget Act of 2005
                  (Chs. 38 and 39, Stats. 2005).
       (36)       $95,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Bilingual
                  Teacher Training Assistance Program
                  and teacher peer review in
                  Schedules (1) and (2) of Item 6110-
                  193-0001 of the Budget Act of 2006
                  (Chs. 47 and 48, Stats. 2006).
       (37)       $43,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for transfer to the
                  State School Fund for teacher
                  dismissal apportionments in Item
                  6110-209-0001 of the Budget Act of
                  2006     (Chs. 47 and 48, Stats.
                  2006).
       (38)       $13,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for School Community
                  Policing Partnership Competitive
                  Grants Program in Schedule (5) of
                  Item 6110-228-0001 of the Budget
                  Act of 2004 (Ch. 208, Stats. 2004).
       (39)       $21,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the International
                  Baccalaureate Diploma Program in
                  Schedule (1) of Item 6110-240-0001
                  of the Budget Act of 2005 (Chs. 38
                  and 39, Stats. 2005).
       (40)       $6,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Teacher
                  Credentialing Block Grant Program
                  in Item 6110-244-0001 of the Budget
                  Act of 2006 (Chs. 47 and 48, Stats.
                  2006).
       (41)       $79,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the School and
                  Library Improvement Block Grant
                  Program in Item 6110-247-0001 of
                  the Budget Act of 2006 (Chs. 47 and
                  48, Stats. 2006).
       (42)       $186,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the School and
                  Library Improvement Block Grant
                  Program in Item 6110-247-0001 of
                  the     Budget Act of 2007 (Chs.
                  171 and 172, Stats. 2007).
       (43)       $30,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Physical
                  Education Teacher Incentive Grant
                  Program in Item 6110-260-0001 of
                  the Budget Act of 2006 (Chs. 47 and
                  48, Stats. 2006).
       (44)       $641,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated to county offices of
                  education for site visits for
                  Williams audits in Item 6110-266-
                  0001 of the Budget Act of 2007
                  (Chs. 171 and 172, Stats. 2007).
       (45)       $101,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Charter School
                  Facility Grant Program in Schedule
                  (7) of Item 6110-485 of the Budget
                  Act of 2005 (Chs. 38 and 39, Stats.
                  2005).
       (46)       $600,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Principal
                  Training Program in Schedule (8) of
                  Item 6110-485 of the Budget Act of
                  2006 (Chs. 47 and 48, Stats. 2006).
       (47)       $25,645,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance for the After
                  School Education and Safety Program
                  in Item 6110-649-0001 from the 2004-
                  05 fiscal year appropriation
                  pursuant to Section 8483.5 of the
                  Education Code, as enacted by
                  Proposition 49 in 2002.
       (48)       $178,352,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance for the After
                  School Education and Safety Program
                  in Item 6110-649-0001 from the 2007-
                  08 fiscal year appropriation
                  pursuant to Section 8483.5 of the
                  Education Code, as enacted by
                  Proposition 49 in 2002, and
                  pursuant to Section 8483.51 of the
                  Education Code as enacted by
                  Chapter 2 of the Statutes of 2008,
                  Third Extraordinary Session.
       (49)       $20,000,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for special education
                  instruction in Schedule (1) of Item
                  6110-161-0001 of the     Budget Act
                  of 2007 (Chs. 171 and 172, Stats.
                  2007).
       (50)       $520,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance for the After
                  School Education and Safety Program
                  in Item 6110-649-0001 from the 2006-
                  07 fiscal year appropriation
                  pursuant to Section 8483.5 of the
                  Education Code, as enacted by
                  Proposition 49 in 2002, and
                  pursuant to Section 8483.51 of the
                  Education Code, as enacted by
                  Chapter 2 of the Statutes of 2008,
                  Third Extraordinary Session.
       (51)       $3,207,465 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for special education
                  programs in Schedule (1) of Item
                  6110-161-0001 of the Budget Act of
                  2003 (Ch. 157, Stats. 2003).
       (52)       $10,922 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the School Safety
                  Consolidated Competitive Grant in
                  Item 6110-248-0001 of the Budget
                  Act of 2005 (Chs. 38 and 39, Stats.
                  2005).
       (53)       $10,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the adult
                  education program and regional
                  occupational programs pursuant to
                  Article 2 (commencing with Section
                  51120) of Chapter 1.5 of Part 28 of
                  Division 4 of Title 2 of the
                  Education Code in Schedule (3) of
                  Section 43 of Chapter 79 of the
                  Statutes of 2006.
       (54)       $27,500 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the parental
                  involvement program pursuant to
                  Article 2 (commencing with Section
                  51120) of Chapter 1.5 of Part 28 of
                  Division 4 of Title 2 of the
                  Education Code in Schedule (9) of
                  Section 43 of Chapter 79 of the
                  Statutes of 2006.
       (55)       $114,395 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for teacher
                  recruitment and retention pursuant
                  to Article 2 (commencing with
                  Section 51120) of Chapter 1.5 of
                  Part 28 of Division 4 of Title 2 of
                  the Education Code in Schedule (20)
                  of Section 43 of Chapter 79 of the
                  Statutes of 2006.
       (56)       $25,725 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for start-up school
                  breakfast and summer food program
                  pursuant to Article 2 (commencing
                  with Section 51120) of Chapter 1.5
                  of Part 28 of Division 4 of Title 2
                  of the Education Code in Schedule
                  (8) of Section 43 of Chapter 79 of
                  the Statutes of 2006.
       (57)       $831,523 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for prior year mandate
                  claims made by local education
                  agencies pursuant to Article 2
                  (commencing with Section 51120) of
                  Chapter 1.5 of Part 28 of Division
                  4 of Title 2 of the Education Code
                  in Schedule (1) of Section 43 of
                  Chapter 79 of the Statutes of 2006.
       (58)       $3,115,995     or whatever greater
                  or lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the High Priority
                  Schools Grant Program in Schedule
                  (1) of Item 6110-123-0001 of the
                  Budget Act of 2006 (Chs. 47 and 48,
                  Stats. 2006).
       (59)       $247,611 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Special
                  Education Infant Program in
                  Schedule (1) of Item 6110-161-0001
                  of the Budget Act of 2006 (Chs. 47
                  and 48, Stats. 2006).
       (60)       $730,454 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Early
                  Education for Individuals with
                  Exceptional Needs in Schedule (2)
                  of Item 6110-161-0001 of the Budget
                  Act of 2006 (Chs. 47 and 48, Stats.
                  2006).
       (61)       $44,135 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Agricultural
                  Vocational Education in Item
                  6110-167-0001 of the Budget Act of
                  2006 (Chs. 47 and 48, Stats. 2006).
       (62)       $29,837 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the California
                  High School Exit Exam Intensive
                  Intervention Program in Item 6110-
                  204-0001 of the Budget Act of 2006
                  (Chs. 47 and 48, Stats. 2006).
       (63)       $6,057 or whatever greater or
                  lesser amount reflects the
                          unexpended balance of the amount
                  appropriated for the School Safety
                  Block Grant in Schedule (1) of Item
                  6110-228-0001 of the Budget Act of
                  2006 (Chs. 47 and 48, Stats. 2006).
       (64)       $8,500,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the     K-3 Class
                  Size Reduction Program in     Item
                  6110-234-0001 of the Budget Act of
                  2006 (Chs. 47 and 48, Stats. 2006).
       (65)       $339,439 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Pupil
                  Retention Block Grant in Item 6110-
                  243-0001 of the Budget Act of 2006
                  (Chs. 47 and 48, Stats. 2006).
       (66)       $98,647 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Professional
                  Development Block Grant in Item
                  6110-245-0001 of the Budget Act of
                  2006 (Chs. 47 and 48, Stats. 2006).
       (67)       $5,130 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Arts and Music
                  Block Grant in     Item 6110-265-
                  0001 of the Budget Act of 2006
                  (Chs. 47 and 48, Stats. 2006).
       (68)       $1,941,700 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Certificated
                  Staff Mentoring Program in     Item
                  6110-267-0001 of the Budget Act of
                  2006 (Chs. 47 and 48, Stats. 2006).
       (69)       $12,844 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the School Safety
                  Block Grant Program pursuant to
                  subparagraph (J) of paragraph (2)
                  of subdivision (a) of Section 31 of
                  Chapter 73 of the Statutes of 2005.
       (70)       $11,705,886 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for adult education
                  programs pursuant to subparagraph
                  (G) of paragraph (2) of subdivision
                  (a) of Section 31 of Chapter 73 of
                  the Statutes of 2005.
       (71)       $1,217,782 or whatever greater or
                  lesser amount     reflects the
                  unexpended balance of the amount
                  appropriated for the Prior Year K-
                  12 Education Mandate Claims in
                  Schedule (10) of Item 6110-485 of
                  the Budget Act of 2006 (Chs. 47 and
                  48, Stats. 2006).
       (72)       $57,239 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Prior Year K-
                  12 Education Mandate Claims in
                  Schedule (12) of Item 6110-485 of
                  the Budget Act of 2006 (Chs. 47 and
                  48, Stats. 2006).
       (73)       $40,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the specialized
                  secondary programs in Item 6110-122-
                  0001 of the Budget Act of 2007
                  (Chs. 171 and 172, Stats. 2007).
       (74)       $658,800 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the High Priority
                  Schools Grant Program in Schedule
                  (1) of Item 6110-123-0001 of the
                  Budget Act of 2007 (Chs. 171 and
                  172, Stats. 2007).
       (75)       $40,310 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the
                  amount appropriated for the
                  Partnership Academies Program in
                  Item 6110-166-0001 of the Budget
                  Act of 2007 (Chs. 171 and 172,
                  Stats. 2007).
       (76)       $145,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the National Board
                  Certification Program in Item 6110-
                  195-0001 of the Budget Act of 2007
                  (Chs. 171 and 172, Stats. 2007).
       (77)       $49,774 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the California
                  High School Exit Exam Intensive
                  Instruction Program in Item 6110-
                  204-0001 of the Budget Act of 2007
                  (Chs. 171 and 172, Stats. 2007).
       (78)       $41,445 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Teacher
                  Dismissal Apportionment Program in
                  Item 6110-209-0001 of the Budget
                  Act of 2007 (Chs. 171 and 172,
                  Stats. 2007).
       (79)       $1,003,040 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Pupil
                  Retention Program in Item 6110-243-
                  0001 of the Budget Act of 2007
                  (Chs. 171 and 172, Stats. 2007).
       (80)       $167,158 or whatever greater or
                  lesser amount reflects the
                  unexpended     balance of the
                  amount appropriated for the
                  Professional Development Block
                  Grant in Item 6110-245-0001 of the
                  Budget Act of 2007 (Chs. 171 and
                  172, Stats. 2007).
       (81)       $429,880 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Certificated
                  Staff Mentoring Program in Item
                  6110-267-0001 of the Budget Act of
                  2007 (Chs. 171 and 172, Stats.
                  2007).
       (82)       $7,821 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Home to School
                  Transportation Program in Schedule
                  (14) of Item 6110-485 of the Budget
                  Act of 2007 (Chs. 171 and 172,
                  Stats. 2007).
       (83)       $281,207 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Quality
                  Education Improvement Act in
                  subparagraph (B) of paragraph (1)
                  of subdivision (c) of Section
                  52055.770 of the Education Code.
       (84)       $499,639 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated to the California
                  Community Colleges in Schedule (15)
                  of Item 6870-101-0001 of the Budget
                  Act of 2006 (Chs. 47 and 48, Stats.
                  2006).
       (85)       $145,359 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated to the California
                  Community Colleges for nursing
                  faculty recruitment and retention
                  in paragraph (30) of subdivision
                  (a) of Section 43 of Chapter 79 of
                  the Statutes of 2006.
       (86)       $229,653 or whatever greater or
                  lesser amount reflects the
                  unexpended balance     of the
                  amount appropriated to the
                  California Community Colleges in
                  Schedule (18) of Item 6870-101-0001
                  of the Budget Act of 2006 (Chs. 47
                  and 48, Stats. 2006).
       (87)       $40,000 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated to the California
                  Community Colleges in Schedule (15)
                  of Item 6870-101-0001 of the Budget
                  Act of 2007 (Chs. 171 and 172,
                  Stats. 2007).
       (88)       $59,931 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated to the California
                  Community Colleges in Schedule (20)
                  of Item 6870-101-0001 of the Budget
                  Act of 2007 (Chs. 171 and 172,
                  Stats. 2007).
       (89)       $81,824 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated to the California
                  Community Colleges in Schedule (23)
                  of Item 6870-101-0001 of the Budget
                  Act of 2007 (Chs. 171 and 172,
                  Stats. 2007).
       (90)       $404,091 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated to the     California
                  Community Colleges in Schedule (18)
                  of Item 6870-101-0001 of the Budget
                  Act of 2007 (Chs. 171 and 172,
                  Stats. 2007).
       (91)       $817,973 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated to the California
                  Community Colleges in Schedule (6)
                  of Item 6870-101-0001 of the Budget
                  Act of 2007 (Chs. 171 and 172,
                  Stats. 2007).
       (92)       $8,738,578 or whatever greater or
                  lesser amount reflects the
                  unexpended balance of the amount
                  appropriated for the Prior Year K-
                  12 Education Mandate Claims of
                  subparagraph (A) of paragraph (3)
                  of subdivision (a) of Section 44 of
                  Chapter 79 of the Statutes of 2006.
       Provisions:
       3.         The sum of     $38,631,987 is
                  hereby reappropriated to the State
                  Department of Education for
                  transfer by the Controller to
                  Section A of the State School Fund
                  for allocation by the
                  Superintendent of Public
                  Instruction for the purpose of
                  funding CalWORKs Stage 2 child
                  care. The amount reappropriated
                  pursuant to this provision is for
                  use in the 2008-09 fiscal year.
       4.         The sum of $164,686,000 is hereby
                  reappropriated to the State
                  Department of Education for
                  transfer by the Controller to
                  Section A of the State School Fund
                  for allocation by the
                  Superintendent of Public
                  Instruction for the purpose of
                  funding CalWORKs Stage 3 child
                  care. The amount reappropriated
                  pursuant to this provision is for
                  use in the 2008-09 fiscal year.
       5.         The sum of $46,161,769 is hereby
                  reappropriated to the State
                  Department of Education for
                  transfer by the Controller to
                  Section A of the State School Fund
                  for allocation by the
                  Superintendent of Public
                  Instruction for the Class Size
                  Reduction Program pursuant to
                  Chapter 6.10 (commencing with
                  Section 52120) of Part 28 of
                  Division 4 of Title 2 of the
                  Education Code.


  SEC. 31.  Item 6870-101-0001 of Section 2.00 of the Budget Act of
2008 is amended to read:
6870-101-0001--For local assistance,
Board of Governors of the California
Community Colleges (Proposition 98).....   3,649,230,000
   Schedule:
   (1)  10.10.010-             2,830,717,
        Apportionments........        000
   (2)  10.10.020-
        Apprenticeship........ 14,641,000
   (3)  10.10.030-Growth for   113,500,00
        Apportionments........          0
   (4)  20.10.004-Student
        Success for Basic
        Skills Students....... 33,100,000
   (5)  20.10.005-Student
        Financial Aid
        Administration........ 51,269,000
   (6)  20.10.020-Disabled     115,011,00
        Students..............          0
   (7)  20.10.045-Special
        Services for CalWORKs
        Recipients............ 43,580,000
   (8)  20.10.060-Foster Care
        Education Program.....  5,254,000
   (9)  20.10.070-             101,803,00
        Matriculation.........          0
   (10) 20.20.020-Academic
        Senate for the
        Community Colleges....    467,000
   (11) 20.20.041-Equal
        Employment
        Opportunity pursuant
        to Ch. 1169, Stats.
        2002..................  1,747,000
   (12) 20.20.050-Part-time
        Faculty Health
        Insurance.............  1,000,000
   (13) 20.20.051-Part-time
        Faculty Compensation.. 50,828,000
   (14) 20.20.055-Part-time
        Faculty Office Hours..  7,172,000
   (15) 20.30.011-
        Telecommunications
        and Technology
        Services.............. 26,197,000
   (16) 20.30.050-Economic
        Development........... 46,790,000
   (17) 20.30.070-Transfer
        Education and
        Articulation..........  1,424,000
   (18) 20.40.026-Physical
        Plant and
        Instructional Support. 27,345,000
   (19) 20.10.010-Extended
        Opportunity Programs
        and Services and       122,291,00
        Special Services......          0
   (20) 20.30.045-Fund for
        Student Success.......  6,158,000
   (21) 20.70.010-Career
        Technical Education... 20,000,000
   (22) 20.80.010-Campus
        Childcare Tax Bailout.  6,836,000
   (23) 20.95.010-Nursing
        Program Support....... 22,100,000
   Provisions:
   1.   The funds appropriated in
        Schedules (1), (2), (3), (4),
        (5), (6), (7), (8), (9), (11),
        (12), (13), (14), (15), (16),
        (18), (19), and (22) are for
        transfer by the Controller
        during the 2008-09 fiscal year
        to Section B of the State School
        Fund.
   2.   Notwithstanding any other
        provision of law, apportionment
        funding for community college
        districts shall be based on the
        greater of the current year or
        prior year level of full-time
        equivalent students (FTES),
        consistent with K-12 declining
        enrollment practices pursuant to
        Section 42238.5 of the Education
        Code. Decreases in FTES shall
        result in a revenue reduction at
        the district's     average level
        of apportionment funding per
        FTES and shall be made in the
        year following the initial year
        of decrease in FTES.
   3.   The funds appropriated in
        Schedule (1) for Apportionments
        include $31,409,000 to encourage
        district-level accountability
        efforts pursuant to Section
        84754.5 of the Education Code.
        It is intended that the
        Chancellor of the California
        Community Colleges submit an
        annual report on district-
        specific accountability measures
        by March 19 of each year. This
        report shall reflect outcomes
        from the most recently completed
        fiscal year for which data is
        available pursuant to Section
        84754.5 of the Education Code.
   4.   Of the funds appropriated in
        Schedule (1), Apportionments:
        (a)   Up to $100,000 is for a
              maintenance allowance,
              pursuant to Section 54200
              of Title 5 of the
              California Code of
              Regulations.
        (b)   Up to $500,000 is to
              reimburse colleges for the
              costs of federal aid
              repayments related to
              assessed fees for fee
              waiver recipients. This
              reimbursement only applies
              to students who completely
              withdraw from college
              before the census date
              pursuant to Section 58508
              of Title 5 of the
              California Code of
              Regulations.
   5.   Notwithstanding any other
        provision of law, the Chancellor
        of the California Community
        Colleges shall not reduce
        district workload obligations
        for a lack of a funded cost-of-
        living adjustment.
   6.   (a)   Of the amount appropriated
              in Schedule (2) for the
              Apprenticeship Program, up
              to $14,641,000 shall be
              available as necessary
              upon certification by the
              Chancellor of the
              California Community
              Colleges for the purpose
              of funding community
              college-related and
              supplemental instruction
              pursuant to Section 3074
              of the Labor Code, as
              provided in Section 8152
              of the Education Code. No
              community college district
              shall use funds available
              under this provision to
              offer any new
              apprenticeship training
              program or the expansion
              of any existing program
              unless the new     program
              or expansion has been
              approved by the chancellor.
        (b)   Notwithstanding Section
              8152 of the Education
              Code, each 60-minute hour
              of teaching time devoted
              to each indentured
              apprentice enrolled in and
              attending classes of
              related and supplemental
              instruction as provided
              under Section 3074 of the
              Labor Code shall be
              reimbursed at the rate of
              $5.06 per hour. For
              purposes of this
              provision, each hour of
              teaching time may include
              up to 10 minutes for
              passing time and breaks.
   7.   Funds appropriated in Schedule
        (3), Growth for Apportionments,
        shall be available first to any
        districts bringing online in the
        current fiscal year newly
        accredited colleges or
        California Postsecondary
        Education Commission-approved
        educational centers. It is the
        intent of the Legislature that
        increases in basic foundation
        allocations to each college be
        funded prior to additional
        growth in full-time equivalent
        students. The Chancellor of the
        California Community Colleges
        shall provide a report by
        November 1 of each year, to the
        Department of Finance and the
        Legislative Analyst, on the
        number of new centers and
        colleges added for the current
        fiscal year and those
        anticipated to be added for the
        prospective budget year. This
        report shall also detail the
        specific funding adjustments
        provided for basic foundation
        allocations to each college and
        center for the current fiscal
        year.
   8.   Notwithstanding any other
        provision of law, funds
        appropriated in Schedule (3) for
        Growth for Apportionments
        shall only be allocated for
        growth in full-time equivalent
        students (FTES), on a district-
        by-district basis, as determined
        by the Chancellor of the
        California Community Colleges.
        The chancellor shall not include
        any FTES from concurrent
        enrollment in physical
        education, dance, recreation,
        study skills, and personal
        development courses and other
        courses in conflict with
        existing law for the purpose of
        calculating a district's three-
        year overcap adjustment. The
        Board of Governors of the
        California Community Colleges
        shall implement the criteria
        required by subdivision (a) of
        Provision 5 of Item 6870-101-
        0001 of the Budget Act of 2003
        (Ch. 157, Stats. 2003) for the
        allocation of funds appropriated
        in Schedules (1) and (3), so as
        to ensure that courses related
        to student needs for transfer,
        basic skills, and
        vocational/workforce training
        are accorded the highest
        priority and are provided to the
        maximum extent possible within
        budgeted funds.
   10.  Of the amount appropriated in
        Schedule (1), $10,000,000 shall
        only be available for noncredit
        instruction to prepare pupils to
        pass the California High School
        Exit Examination (CAHSEE). The
        first priority shall be to serve
        high school pupils from the
        class of 2007 who met all other
        graduation requirements except
        for passage of the CAHSEE.
        Remaining funds may be used to
        support other necessary
        noncredit courses for other
        pupils who not only did not pass
        the CAHSEE, but who did not
        complete other coursework
        necessary to meet high school
        graduation requirements. These
        funds are intended to supplement
        but not supplant existing
        funding for these purposes.
   11.  The funds appropriated in
        Schedule (4), Student Success
        for Basic     Skills Students,
        shall be allocated as follows:
        (a)   $1,600,000 for faculty and
              staff development to
              improve curriculum,
              instruction, student
              services, and program
              practices in the areas of
              basic skills and English
              as a Second Language (ESL)
              programs. The Office of
              the Chancellor of the
              California Community
              Colleges shall select a
              district, utilizing a
              competitive process, to
              carry out these faculty
              and staff development
              activities. All colleges
              receiving funds pursuant
              to subdivision (b) shall
              be provided with the
              opportunity to participate
              in the faculty and staff
              development programs
              specified in this
              subdivision. The
              chancellor shall report on
              the use of these funds by
              the selected district to
              the Legislative Analyst
              and the Department of
              Finance not later than
              September 1, 2009.
        (b)   $31,500,000 for allocation
              by the chancellor to
              community college
              districts for improving
              outcomes of students who
              enter college needing at
              least one course in ESL or
              basic skills, with
              particular emphasis on
              students transitioning
              from high school.
        (c)   Funding specified in
              subdivisions (a) and (b)
              shall be distributed to
              eligible applicants
              pursuant to Chapter 489 of
              the Statutes of 2007.
        (d)   The Office of     the
              Chancellor shall work
              jointly with the
              Department of Finance and
              the Legislative Analyst to
              develop annual
              accountability measures
              for this program. It is
              the intent of the
              Legislature that annual
              performance accountability
              measures for this program
              utilize, to the extent
              possible, data available
              as part of the
              accountability system
              developed pursuant to
              Section 84754.5 of the
              Education Code. By
              November 1, 2009, the
              chancellor shall submit a
              report to the Governor and
              Legislature on the annual
              accountability measures
              developed pursuant to this
              process.
   12.  (a)   Of the funds appropriated
              in Schedule (5) for
              Student Financial Aid
              Administration, not less
              than $9,864,000 is
              available to provide $0.91
              per unit reimbursement to
              community college
              districts for the
              provision of board of
              governors (BOG) fee
              waiver awards pursuant to
              paragraph (2) of
              subdivision (m) of Section
              76300 of the Education
              Code.
        (b)   Of the funds appropriated
              in Schedule (5), not less
              than $4,405,000 is
              available to provide
              reimbursement of 2 percent
              of total waiver value to
              community college
              districts for the
              provision of BOG fee
              waiver awards pursuant to
              paragraph (2) of
              subdivision (m) of Section
              76300 of the Education

      Code.
        (c)   Funding provided to
              community college
              districts in subdivisions
              (a) and (b) of Provision
              15 is provided to directly
              offset any mandated costs
              claimed by community
              college districts pursuant
              to Commission     on State
              Mandates Test Claims 99-TC-
              13 (Enrollment Fee
              Collection) and 00-TC-15
              (Enrollment Fee Waivers).
        (d)   (1)   Of the amount
                    appropriated in
                    Schedule (5),
                    $2,800,000 shall be
                    for a contract with
                    a community college
                    district to conduct
                    a statewide media
                    campaign to promote
                    the general message
                    to prospective
                    students as follows:
                    (A) the California
                    Community Colleges
                    (CCC) remain
                    affordable, (B)
                    financial aid and
                    tax credits are
                    available to cover
                    enrollment fees and
                    help with books and
                    other costs, and (C)
                    the active
                    encouragement of
                    contact between
                    pupils and local CCC
                    financial aid
                    offices. Any funds
                    used from this
                    source to produce
                    radio, television,
                    or mail campaigns
                    must emphasize the
                    availability of
                    financial aid, the
                    easiest and most
                    reliable method of
                    accessing the
                    aid, a contact
                    telephone number, an
                    Internet Web site
                    address, where
                    applicable, and the
                    physical location of
                    a financial aid
                    office. Any mail
                    campaign must give
                    priority to existing
                    pupils, recent high
                    school graduates,
                    and 12th graders.
                    The outreach and
                    information campaign
                    should target its
                    efforts in high
                    schools, welfare
                    offices,
                    unemployment
                    offices, churches,
                    community centers,
                    and any other
                    location that will
                    most effectively
                    reach low-income and
                    disadvantaged
                    students who must
                    overcome barriers in
                    accessing
                    postsecondary
                    education. The
                    community college
                    district awarded the
                    contract shall
                    consult with the
                    Chancellor of the
                    California Community
                    Colleges and the
                    Student Aid
                    Commission prior to
                    performing any
                    activities to ensure
                    appropriate
                    coordination with
                    any other state
                    efforts in this area
                    and ensure
                    compliance with this
                    provision.
              (2)   Of the amount
                    appropriated in
                    Schedule (5), not
                    more than
                    $34,200,000 shall be
                    for direct contact
                    with potential and
                    current financial
                    aid applicants. Each
                    CCC campus shall
                    receive a minimum
                    allocation of
                    $50,000. The
                    remainder of the
                    funding shall be
                    allocated to
                    campuses based upon
                    a formula reflecting
                    full-time equivalent
                    students (FTES)
                    weighted by a
                    measure of low-
                    income populations
                    as demonstrated by
                    BOG fee waiver
                    program
                    participation within
                    a district. It is
                    the intent of the
                    Legislature, to the
                    extent that funds
                    are provided in this
                    item, that all
                    campuses provide
                    additional staff
                    resources to
                    increase both
                    financial aid
                    participation and
                    student access to
                    low-income and
                    disadvantaged
                    students who must
                    overcome barriers in
                    accessing
                    postsecondary
                    education. Funds may
                    be used for
                    screening current
                    students for
                    possible financial
                    aid eligibility and
                    offering personal
                    assistance to these
                    students in
                    accessing
                    financial aid,
                    providing individual
                    help in multiple
                    languages for
                    families and
                    students in filling
                    out the necessary
                    paperwork to apply
                    for financial aid,
                    and increasing
                    financial aid staff
                    to process
                    additional financial
                    aid forms.
              (3)   Funds allocated to a
                    community college
                    district for
                    financial aid
                    personnel, outreach
                    determination of
                    financial need, and
                    delivery of student
                    financial aid
                    services shall
                    supplement, and
                    shall not supplant,
                    the level of funds
                    allocated for the
                    administration of
                    student financial
                    aid programs during
                    the 2001-02 fiscal
                    year.
              (4)   It is the intent of
                    the Legislature that
                    the Office of the
                    Chancellor of the
                    California Community
                    Colleges provide the
                    Legislature with a
                    report not later
                    than April 1, 2009,
                    on the use of the
                    funds allocated
                    pursuant to
                    paragraphs (1) and
                    (2) of this
                    subdivision (d),
                    including the
                    distribution of the
                    funds, specific uses
                    of the funds,
                    strategies employed
                    to reach low-income
                    and disadvantaged
                    students potentially
                    eligible for
                    financial aid, and
                    the extent to which
                    districts were
                    successful in
                    increasing the
                    number of students
                    accessing financial
                    aid, particularly
                    the maximum Pell
                    Grant award.
              (5)   It is the intent of
                    the Legislature that
                    the chancellor
                    report by September
                    1, 2008, in the
                    manner and using the
                    factors set forth in
                    paragraph (5) of
                    subdivision (b) of
                    Provision 11 of Item
                    6870-101-0001 of
                    Section 2.00 of the
                    Budget Act of 2004
                    (Ch. 208, Stats.
                    2004), on the impact
                    of outreach efforts
                    on student headcount
                    and FTES enrollment
                    for the 2005-06 and
                    2006-07 academic
                    years.
   13.  Of the funds appropriated in
        Schedule (19) for Extended
        Opportunity Programs and
        Services, $106,786,000 is for
        Extended Opportunity Programs
        and Services (EOPS) in
        accordance with Article 8
        (commencing with Section 69640)
        of Chapter 2 of Part 42 of
        Division 5 of Title 3 of the
        Education Code. Funds provided
        in this item for EOPS shall be
        available to students on all
        campuses within the California
        Community College system,
        including those students on new
        campuses or in new districts. In
        addition, $15,505,000 is for
        funding, at all colleges, the
        Cooperative Agencies Resources
        for Education (CARE)     program
        in accordance with Article 4
        (commencing with Section 79150)
        of Chapter 9 of Part 48 of
        Division 7 of Title 3 of the
        Education Code. The Board of
        Governors of the California
        Community Colleges shall
        allocate funds on a priority
        basis to local programs on the
        basis of need for student
        services.
   14.  Of the funds appropriated in
        Schedule (19) for the Extended
        Opportunity Programs and
        Services, $1,900,000 shall be
        available to support additional
        textbook assistance grants to
        community college students as an
        allowable expenditure consistent
        with paragraph (10) of
        subdivision (b) of Section 69648
        of the Education Code.
   15.  The funds appropriated in
        Schedule     (20) for the Fund
        for Student Success is for
        additional targeted student
        services, to be expended as
        follows:
        (a)   $1,921,000 is for the
              Puente Project to support
              up to 75 colleges. These
              funds are available if
              matched by $200,000 of
              private funds and the
              participating community
              colleges and University of
              California campuses
              maintain their 1995-96
              fiscal year support level
              for the Puente Project.
              All funding shall be
              allocated directly to
              participating districts in
              accordance with their
              participation agreement.
        (b)   Up to $2,459,000 is for
              the Mathematics,
              Engineering and Science
              Achievement (MESA)
              Program. For each dollar
              allocated, the recipient
              district shall provide $1
              in matching funds.
        (c)   No less than $1,778,000 is
              for the Middle College
              High School Program. With
              the exception of fully
              compliant special part-
              time students at the
              community colleges
              pursuant to Sections 48802
              and 76001 of the Education
              Code, student workload
              based on participation in
              the Middle College High
              School Program shall not
              be eligible for community
              college state
              apportionment. Further, no
              community college state
              apportionment shall be
              made available for
              physical education
              classes, noncredit
              classes, nor other courses
              specified in Provision 8.
   16.  (a)   The funds appropriated in
              Schedule (6) for the
              Disabled Students Program
              are for assisting
              districts in funding the
              excess direct
              instructional cost of
              providing special support
              services or instruction,
              or both, to disabled
              students enrolled at
              community colleges, and
              for state hospital
              programs, as mandated by
              federal law.
        (b)   Of the amount appropriated
              in Schedule (6), no less
              than $3,945,000 shall be
              used to address
              deficiencies identified by
              the federal Office of
              Civil Rights (OCR), as
              determined by the Office
              of the Chancellor of the
              California Community
              Colleges.
        (c)   Of the amount appropriated
              in Schedule (6), at least
              $943,000 shall be used for
              support of the High Tech
              Centers for activities
              including, but not limited
              to, training of district
              employees, staff, and
              students in the use of
              specialized computer
              equipment for the
              disabled. All High Tech
              Centers shall meet
              standards developed by the
              Office of the Chancellor.
              Colleges that receive
              these augmentations shall
              not supplant existing
              resources provided to the
              centers.
        (d)   Notwithstanding any other
              provision of law, of the
              funds appropriated in
              Schedule (6), $1,246,000
              shall be for state
              hospital adult education
              programs at the hospitals
              served by the Coast and
              Kern Community College
              Districts since the 1986-
              87 fiscal year. If adult
              education services at any
              of the three hospitals are
              not     supported by the
              community colleges in any
              portion of the 2008-09
              fiscal year, remaining
              funds shall, upon order of
              the Department of Finance,
              after 30 days' notice to
              the Chairperson of the
              Joint Legislative Budget
              Committee, be transferred
              to the State Department of
              Developmental Services
              (DDS). For any transfer of
              funds to DDS during the
              2008-09 fiscal year, the
              Proposition 98 base
              funding levels for
              community colleges and DDS
              shall be adjusted
              accordingly.
        (e)   Of the funds appropriated
              in Schedule (6) for the
              Disabled Student Services,
              no less than $9,600,000
              shall be allocated to
              support high-cost sign
              language interpreter
              services and real-time
              captioning equipment or
              other communication
              accommodations for hearing-
              impaired students based on
              a 4-to-1 state-to-local
              district match.
   17.  The funds appropriated in
        Schedule (7), Special Services
        for CalWORKs Recipients, are for
        the purpose of assisting welfare
        recipient students and those in
        transition off of welfare to
        achieve long-term self-
        sufficiency through coordinated
        student services offered at
        community colleges, including
        workstudy, other educational
        related work experience, job
        placement services, child care
        services, and coordination with
        county welfare offices to
        determine eligibility and
        availability of services. All
        services funded in Schedule (7)
        shall be for current CalWORKs
        recipients or prior CalWORKs
        recipients who are in transition
        off of cash assistance for no
        more than two years. Current
        cash-assistance recipients may
        utilize these services until
        their initial educational
        objectives are met. Former
        recipients in transition off of
        cash assistance may     utilize
        these services for a period of
        up to two years after leaving
        cash assistance subject to the
        conditions of this provision.
        These funds shall be used to
        supplement and not supplant
        existing funds and services
        provided for CalWORKs recipients
        attending community colleges.
        The Chancellor of the California
        Community Colleges shall develop
        an equitable method for
        allocating funds to all
        districts and colleges based on
        the relative numbers of CalWORKs
        recipients in attendance and
        shall allocate funds for the
        following purposes:
        (a)   Job placement.
        (b)   Coordination with county
              welfare offices and other
              local agencies, including
              local workforce investment
              boards.
        (c)   Curriculum development and
              redesign.
        (d)   Child care and workstudy.
        (e)   Instruction.
        (f)   Postemployment skills
              training and related
              skills.
        (g)   Campus-based case
              management, limited to on-
              campus assistance and
              services not provided by
              county case workers that
              do not supplant other
              counseling and academic
              support services funded
              through existing
              California Community
              Colleges categorical
              programs.
         Of the amount appropriated in
        Schedule (7), $15,000,000 is for
        child care and does not require
        a district match. For the
        remaining funds, districts
        shall, as a condition of receipt
        of these funds, provide a $1
        match for every $1 provided by
        the state.
         Funds utilized for subsidized
        child care shall be for children
        of CalWORKs recipients through
        campus-based centers or parental
        choice vouchers at rates and
        with rules consistent with those
        applied to related programs
        operated by the State Department
        of Education in the 2008-09
        fiscal year, including
        eligibility, reimbursement
        rates, and parental contribution
        schedules. Subsidized campus
        child care for CalWORKs
        recipients may be provided
        during the period they are
        engaged in qualifying state and
        federal work activities through
        attainment of their initial
        education and training plan and
        for up to three months
        thereafter or until the end of
        the academic year, whichever
        period of time is greater.
         Funds utilized for
        workstudy shall be used solely
        for payments to employers that
        currently participate in campus-
        based workstudy programs or are
        providing work experiences that
        are directly related to and in
        furtherance of student
        educational programs and work
        participation requirements,
        provided that those payments may
        not exceed 75 percent of the
        wage for the workstudy
        positions, and the employers
        shall pay at least 25 percent of
        the wage for the workstudy
        positions. These funds may be
        expended only if the total hours
        of education, employment, and
        workstudy for the student are
        sufficient to meet both state
        and federal minimum requirements
        for qualifying work-related
        activities.
         Funds may be used to provide
        credit or noncredit classes for
        CalWORKs students if a district
        has committed all of its funded
        full-time equivalent students
        (FTES) and is unable to offer
        the additional instructional
        services to meet the demand for
        CalWORKs students. This
        determination shall be based on
        fall enrollment information.
        Districts shall submit
        applications to the Office of
        the Chancellor by October 15 of
        each year. If the chancellor
        approves the use of funds for
        direct instructional workload,
        the Office of the Chancellor
        shall submit a report to the
        Department of Finance and the
        Joint Legislative Budget
        Committee by November 15, 2008,
        that (a) identifies the
        enrollment of new CalWORKs
        students, (b) states whether and
        why additional classes were
        needed to accommodate the needs
        of CalWORKs students, and (c)
        sets forth an expenditure plan
        for the balance of funds.
         As a condition of receipt of
        the funds appropriated in
        Schedule (7), by the fourth week
        following     the end of the
        semester or quarter term
        commencing in January 2009, each
        participating community college
        shall submit to the Office of
        the Chancellor a report, in the
        format specified by the
        chancellor in consultation with
        the State Department of Social
        Services, that includes, but is
        not limited to, the funded
        components, the number of hours
        of child care provided, the
        average monthly enrollment of
        CalWORKs dependents served in
        child care, the number of
        workstudy hours provided, the
        hourly salaries and type of
        jobs, the number of students
        being case managed, the short-
        term programs available, the
        student participation rates, and
        other outcome data. It is
        intended that, to the extent
        practical, reporting from
        colleges utilize data gathered
        for federal reporting
        requirements at the state and
        local level. Further, it is
        intended that the Office of the
        Chancellor compile the
        information for annual reports
        to the Legislature, the
        Governor, the Legislative
        Analyst, the Department of
        Finance, and the State
        Department of Social Services by
        November 15 of each year.
         First priority for expenditures
        of any funds appropriated in
        Schedule (7) shall be in support
        of current CalWORKs recipients.
        However, if caseloads are
        insufficient to fully utilize
        all of the funding in this
        schedule in a cost-beneficial
        way, it is intended that up to
        $5,000,000 of the funds subject
        to local matching requirements
        may be allocated for providing
        postemployment services to
        former CalWORKs recipients who
        have been off of cash assistance
        for no longer than two years to
        assist them in upgrading skills,
        job retention, and advancement.
        Allowable services include
        direct instruction that cannot
        be funded under available growth
        funding, child care to support
        attendance in these classes
        consistent with this provision,
        job development and placement
        services, and career counseling
        and assessment activities which
        cannot be funded through other
        programs. Child care services
        may only be provided for periods
        commensurate with a student's
        need for postemployment training
        within the two-year transitional
        period.
         Prior to allocation of funds
        for postemployment services, the
        chancellor shall first secure
        the approval of the Department
        of Finance for the allocations,
        complete a cumulative report on
        the outcomes, activities, and
        cost-effectiveness of the
        program no later than November
        15, 2008, in compliance with the
        Budget Acts of 1998 (Ch. 324,
        Stats. 1998) and 1999 (Ch. 50,
        Stats. 1999) and this act, and
        shall provide the rationale and
        justification for the proposed
        allocation of postemployment
        services to districts for
        transitional students.
         If a district is unable to
        fully expend its share of child
        care funds, it may request that
        the Office of the Chancellor
        approve a reallocation to other
        CalWORKs purposes authorized by
        this provision, subject to all
        pertinent limitations and
        district match required for
        these purposes under this
        provision.
         Of the funds appropriated in
        Schedule (7) for the Special
        Services for CalWORKs Recipients
        Program, no less than $8,000,000
        is to provide direct workstudy
        wage reimbursement for students
        served under this program, and
        $1,000,000 is available for
        campus job development and
        placement services.
   18.  Funds appropriated in Schedule
        (7) for the Special Services for
        CalWORKs Recipients Program have
        been budgeted to meet the
        state's Temporary Assistance for
        Needy Families maintenance-of-
        effort requirement pursuant to
        the federal Personal
        Responsibility and Work
        Opportunity Reconciliation Act
        of 1996 (P.L. 104-193) and may
        not be expended in any way that
        would cause their
        disqualification as a federally
        allowable maintenance-of-effort
        expenditure.
    19.  (a)   Funds provided in Schedule
              (8) for the Foster Care
              Education Program shall be
              allocated to provide
              foster and
              relative/kinship care
              education and training.
              Districts shall ensure
              that education and
              training required by
              Sections 1529.1 and 1529.2
              of the Health and Safety
              Code and Section 16003 of
              the Welfare and
              Institutions Code receive
              priority. Districts may
              use any remaining funds
              for additional parenting
              skills training.
        (b)   Funds provided in Schedule
              (8) shall be used for
              foster parent and
              relative/kinship care
              provider education
              training services
              consistent with the
              following criteria:
              (1)   The Chancellor of
                    the California
                    Community Colleges
                    shall use these
                    funds exclusively
                    for foster parent
                    and relative/kinship
                    care provider
                    education and
                    training, as
                    specified     by the
                    chancellor in
                    consultation with an
                    advisory committee
                    that includes foster
                    parents,
                    representatives of
                    statewide foster
                    parent
                    organizations,
                    parent and
                    relative/kinship
                    care providers, and
                    representatives from
                    the State Department
                    of Social Services.
              (2)   Acceptance of funds
                    under this program
                    shall constitute
                    agreement by the
                    district to comply
                    with such reporting
                    requirements,
                    guidelines, and
                    other conditions for
                    receipt of funding
                    as the chancellor
                    may establish.
              (3)   Each college plan
                    for foster and
                    relative/kinship
                    care education
                    programs shall
                    include the
                    provision of
                    training to
                    facilitate the
                    development of
                    foster family homes,
                    small family homes,
                    and relative/kinship
                    homes to care for no
                    more than six
                    children who have
                    special mental,
                    emotional,
                    developmental, or
                    physical needs.
              (4)   The State Department
                    of Social Services
                    shall facilitate the
                    participation of
                    county welfare
                    departments in the
                    foster and
                    relative/kinship
                    care education
                    program.
   20.  (a)   Funds appropriated in
              Schedule (9) for the
              Matriculation Program are
              for the purpose of student
              matriculation pursuant to
              Article 1 (commencing
              with Section 78210) of
              Chapter 2 of Part 48 of
              Division 7 of Title 3 of
              the Education Code.
        (b)   Of the amount appropriated
              in Schedule (9),
              $20,000,000 shall be
              allocated to community
              college districts on a one-
              to-one matching funds
              basis to provide
              matriculation services,
              including, but not limited
              to, orientation,
              assessment, and
              counseling, for students
              enrolled in designated
              noncredit classes and
              programs who may benefit
              most, as determined by the
              Chancellor of the
              California Community
              Colleges pursuant to
              Sections 78216 to 78218,
              inclusive, of the
              Education Code.
   21.  The funds in Schedule (13) for
        the Part-time Faculty
        Compensation Program shall be
        allocated solely to increase
        compensation for part-time
        faculty from the amounts
        previously authorized. Funds
        shall be distributed to
        districts based on the total
        actual full-time equivalent
        students served in the previous
        fiscal year and include a small
        district factor as determined by
        the Chancellor of the California
        Community Colleges. These funds
        are to be used to assist
        districts in making part-time
        faculty salaries more comparable
        to full-time salaries for
        similar work, as determined
        through each district's local
        collective bargaining process.
        These funds shall not supplant
        the amount of resources each
        district used to compensate part-
        time faculty or be used to
        exceed parity of each part-time
        faculty employed by each
        district with regular full-time
        faculty at the same district, as
        certified by the chancellor. If
        a district achieves parity, its
        allocation may be used for any
        other educational purpose.
   22.  (a)   $24,197,000 of the funds
              provided in Schedule (15)
              for the Telecommunications
              and Technology Services
              Program shall be for the
              purpose of supporting
              technical and application
              innovations and for
              coordination of activities
              that serve to maximize the
              utility of the technology
              investments of the
              community college system
              towards improving learning
              outcomes. Allocations
              shall be made by the
              Chancellor of the
              California Community
              Colleges, based on
              criteria and guidelines as
              developed by the
              chancellor, on a
              competitive basis through
              the RFA/RFP application
              process for the following
              purposes:
              (1)   Provision of access
                    to statewide
                    multimedia hosting
                    and delivery
                    services for system
                    colleges and
                    districts.
              (2)   Provision of
                    systemwide Internet,
                    audio bridging, and
                    telephony.
              (3)   Technical assistance
                    and planning,
                    cooperative purchase
                    agreements, and
                    faculty and staff
                    development in a
                    manner consistent
                    with paragraph (3)
                    of subdivision (b)
                    of Provision 17 of
                    Item 6870-101-0001
                    of Section 2.00 of
                    the Budget Act of
                    1996 (Ch. 162,
                    Stats. 1996).
              (4)   Ongoing support for
                    the California
                    Virtual University
                    Distance Education
                    Program.
              (5)   Ongoing support for
                    programs designed to
                    use technology in
                    assisting
                    accreditation and
                    the alignment of
                    curricula across K-
                    20 segments in
                    California.
              (6)   Support for
                    technology pilots
                    and ongoing
                    technology programs
                    and applications
                    that serve to
                    maximize the utility
                    and economy of scale
                    of the technology
                    investments of the
                    community college
                    system     towards
                    improving learning
                    outcomes.
              In addition, a portion of
              the funds provided in this
              subdivision shall be
              available for allocations
              to districts. It is the
              intent of the Legislature
              that these funds be used
              by colleges to maintain
              the technology
              capabilities specified in
              subdivision (a) of
              Provision 21 of Item 6870-
              101-0001 of the Budget Act
              of 2003 (Ch. 157, Stats.
              2003). These funds shall
              not supplant existing
              funds used for those
              purposes, and colleges
              shall match maintenance
              and ongoing costs with
              other funds as provided by
              Provision 21(a) of Item
              6870-101-0001 of the
              Budget Act of 2003 (Ch.
              157, Stats. 2003).
        (b)   The Office of the
              Chancellor of the
              California Community
              Colleges shall develop the
              reporting criteria for all
              programs funded by this
              item and shall submit that
              for review along with an
              annual progress report on
              program implementation to
              the Legislative Analyst,
              the Office of the
              Secretary for Education,
              and the Department of
              Finance no later than
              December 1 of each year.
              Reporting shall include
              summaries of allocations
              and expenditures by
              program and by district,
              where applicable.
        (c)   Of the funds provided in
              Schedule (15), $2,000,000
              is for ongoing support and
              expansion of the
              California Partnership for
              Achieving Student Success
              (Cal-PASS) program. As a
              condition of receipt of
              these funds, the grantee
              shall submit to the Office
              of the Chancellor, by
              October 15 of each year,
              all     of the following:
              (1) a report that includes
              the numbers and
              percentages of
              institutions and school
              districts that have signed
              agreements and the number
              and percentage that have
              actively submitted data in
              the current year, (2) the
              results of an annual
              program evaluation, as
              prescribed by the
              chancellor, that
              sufficiently documents the
              value and productivity of
              the program, and (3) an
              annual financial audit, as
              prescribed by the
              chancellor, that includes
              an accounting of all
              funding sources and all
              uses of funds by funding
              source. It is the intent
              of the Legislature that
              all reporting requirements
              contained in this
              subdivision shall be
              completed using funds
              provided to the grantee.
   23.  Of the funds provided in
        Schedule (16) for the Economic
        and Workforce Development
        Program:
        (a)   $22,830,000 is allocated
              for grants for regional
              business resources
              assistance and innovation
              network centers. Each
              grant awarded to a
              district for Centers for
              International Development
              shall contain sufficient
              funds, as determined by
              the Chancellor of the
              California Community
              Colleges, for the
              continued operation of
              Mexican International
              Trade Centers.
        (b)   $7,822,000 is allocated
              for industry-driven
              regional education and
              training collaboratives.
              These grants shall be made
              on a competitive basis and
              the award amounts shall
              not be restricted to any
              predetermined limit, but
              rather shall be funded on
              their individual merits.
        (c)   $3,609,000 is allocated
              for statewide network
              leadership, organizational
              development, coordination,
              information and support
              services, or other program
              purposes.
        (d)   $4,529,000 is available
              for Job Development
              Incentive Training
              programs focused on job
              creation for public
              assistance recipients. Any
              annual savings from this
              subdivision shall only be
              available for expenditure
              for one-time activities
              listed under subdivision
              (j) of Section 88531 of
              the Education Code.
        (e)   $8,000,000 is allocated
              for the establishment of a
              Responsive Incumbent
              Worker Training Fund,
              which will serve to expand
              the delivery of
              performance improvement
              training to employers and
              incumbent workers in high-
              growth industries. Funds
              shall also be used to
              develop programs that
              integrate basic skills and
              career technical education
              curriculum in ways that
              provide students with
              seamless educational
              coursework that
              transitions students into
              high-tech and high-demand
              job sectors.
        (f)   The following provisions
              apply to the expenditure
              of funds within
              subdivisions (a) and (b):
              Funds allocated for
              centers and regional
              collaboratives shall seek
              to maximize the use of
              state funds for
              subdivisions (g) to (j),
              inclusive, of Section
              88531 of the Education
              Code.     Funds allocated
              to districts for purposes
              of subdivisions (g) and
              (i) of Section 88531 of
              the Education Code for
              performance-based training
              and student internships
              shall be matched by a
              minimum of $1 of private
              business and industry
              funding for each $1 of
              state funds. Funds
              allocated for purposes of
              subdivision (h) of Section
              88531 of the Education
              Code for credit and
              noncredit instruction may
              be transferred to Schedule
              (1) or (3) to facilitate
              distribution at the
              chancellor's discretion.
              Any funds that become
              available from network
              centers due to savings,
              discontinuance, or
              reduction of amounts shall
              first be made available
              for additional allocations
              in subdivision (b) to
              increase the level of
              subsidized training
              otherwise available.
        (g)   Funds allocated by the
              Board of Governors of the
              California     Community
              Colleges under this
              provision may not be used
              by community college
              districts to supplant
              existing courses or
              contract education
              offerings. The chancellor
              shall ensure that funds
              are spent only for
              expanded services and
              shall implement
              accountability reporting
              for districts receiving
              these funds to ensure that
              training, credit, and
              noncredit programs remain
              relevant to business
              needs. Programs that do
              not demonstrate continued
              relevance and support by
              business shall not be
              eligible for continued
              funding. The board of
              governors shall consider
              the level of involvement
              and financial commitments
              of business and industry
              as primary factors in
              making awards. The
              chancellor shall
              incorporate grant
              requirements into the
              guidelines for audits of
              economic development
              grants.
        (h)   Primary objectives of the
              Economic and Workforce
              Development Program are to
              maximize instruction, to
              prepare students for entry-
              level jobs, to increase
              skills of the current
              workforce, and to
              stimulate the growth of
              businesses through
              training so that more jobs
              are created. As part of
              the annual report on the
              performance of the
              Economic and Workforce
              Development Program, the
              chancellor shall provide
              disaggregated data
              detailing the funding
              provided to each economic
              development regional
              center and each industry-
              driven regional education
              and training
              collaborative, and to the
              extent practicable, the
              total number of hours of
              contract education
              services, performance
              improvement training,
              credit and noncredit
              instruction, and job
              placements created as a
              result of each center and
              collaborative.
   24.  (a)   The funds appropriated in
              Schedule (17) for the
              Transfer Education and
              Articulation Program are
              available to support
              transfer and articulation
              projects and common course
              numbering projects.
        (b)   Funding provided to
              community college
              districts from Schedule
              (17) is provided to
              directly offset any
              mandated costs claimed by
              community college
              districts pursuant to
              Chapter 737 of the
              Statutes of 2004.
   25.  (a)   $13,673,000 of the funds
              appropriated in Schedule
              (18) is available for the
              following purposes:
              (1)   Scheduled
                    maintenance and
                    special repairs of
                    facilities. The
                    Chancellor of the
                    California Community
                    Colleges shall
                    allocate funds to
                    districts on the
                    basis of actual
                    reported full-time
                    equivalent students
                    (FTES), and may
                    establish a minimum
                    allocation per
                    district. As a
                    condition for
                    receiving and
                    expending these
                    funds for
                    maintenance or
                    special repairs, a
                    district shall
                    certify that it will
                    increase its
                    operations and
                    maintenance spending
                    from the 1995-96
                    fiscal year by the
                    amount it allocates
                    from this
                    appropriation for
                    maintenance and
                    special repairs,
                    plus an equal amount
                    to be provided from
                    district
                    discretionary funds.
                    The chancellor may
                    waive all or a
                    portion of the
                    matching requirement
                    based upon a review
                    of a district's
                    financial condition.
                    The question of
                    whether a district
                    has complied with
                    its resolution shall
                    be reviewed under
                    the annual audit of
                    that district. For
                    every $1 a
                    district expends
                    from this
                    appropriation for
                    scheduled
                    maintenance and
                    special repairs, the
                    recipient district
                    shall provide $1 in
                    matching funds.
              (2)   Hazardous substances
                    abatement, cleanup,
                    and repairs.
              (3)   Architectural
                    barrier removal
                    projects that meet
                    the requirements of
                    the federal
                    Americans with
                    Disabilities Act of
                    1990 (42 U.S.C. Sec.
                    12101 et seq.) and
                    seismic retrofit
                    projects limited to
                    $400,000. Districts
                    that receive funds
                    for architectural
                    barrier removal
                    projects shall
                    provide a $1 match
                    for every $1
                    provided by the
                    state.
        (b)   $13,672,000 of the funds
              appropriated in Schedule
              (18) is available for
              replacement of
              instructional equipment
              and library materials. For
              every $3 a district
              expends from this
              appropriation for
              replacement of
              instructional equipment or
              library materials, the
              recipient district shall
              provide $1 in matching
              funds. The chancellor may
              waive all or a portion of
              the matching requirement
              based upon a review of a
              district's financial
              condition. The funds
              provided for instructional
              equipment and library
              materials shall not be
              used for personal services
              costs or operating
              expenses. The chancellor
              shall allocate funds to
              districts on the basis of
              actual reported FTES and
              may establish a minimum
              allocation per district.
              The question of whether a
              district has complied with
              its resolution shall be
              reviewed     under the
              annual audit of that
              district.
        (c)   The funds appropriated in
              Schedule (18) shall be
              available for expenditure
              until June 30, 2010.
   26.  Pursuant to Sections 69648.5,
        78216, and 84850, and
        subdivision (b) of Section
        87108, of the Education Code,
        the Board of Governors of the
        California Community Colleges
        may allocate funds appropriated
        in Schedules (6), (9), (11), and
        (19) by grant or contract, or
        through the apportionment
        process, to one or more
        districts for the purpose of
        providing program evaluation,
        accountability, monitoring, or
        program development services, as
        appropriate under the applicable
        statute.
   27.  The funds appropriated in
        Schedule (21) for the Career
        Technical Education Program are
        for the purpose of aligning
        career-technical education
        curriculum between K-12 and
        community colleges in targeted
        industry-driven programs offered
        through the Economic and
        Workforce Development Program.
        Prior to the allocation of these
        funds, the Chancellor of the
        California Community Colleges,
        in conjunction with the State
        Department of Education, shall
        submit a proposed expenditure
        plan for the funds contained in
        this item, and the rationale
        therefor, to the Department of
        Finance by August 1, 2008, for
        approval.
         Of the funds appropriated in
        Schedule (21),     $2,500,000 is
        available for the development
        and enhancement of health-
        related career pathway programs
        in grades 7 to 12, inclusive,
        and for the articulation and
        alignment of health-related
        curriculum between schools with
        pupils in kindergarten and
        grades 1 to 12, inclusive, and
        the California Community
        Colleges.
   28.  The funds appropriated in
        Schedule (22) for the Campus
        Childcare Tax Bailout shall be
        allocated by the Chancellor of
        the California Community
        Colleges to community college
        districts that levied child care
        permissive override taxes in the
        1977-78 fiscal year pursuant to
        Sections 8329 and 8330 of the
        Education Code in an amount
        equal to the property tax

  revenues, tax relief
        subventions, and state aid
        required to be made available by
        the district to its child care
        and development program for the
        1979-80 fiscal year pursuant
        to Section 30 of Chapter 1035 of
        the Statutes of 1979, increased
        by any cost-of-living increases
        granted in subsequent fiscal
        years. These funds shall be used
        only for the purpose of
        community college child care and
        development programs.
   29.  With regard to the funds
        appropriated in Schedule (23),
        Nursing Program Support, all of
        the following shall apply:
        (a)   $14,000,000 shall be used
              to provide support for
              nursing program enrollment
              and equipment needs
              consistent with paragraph
              (2) of subdivision (a) of
              Section 2 of Chapter 514
              of the Statutes of 2001.
              Grant funding for nursing
              enrollment shall provide a
              marginal increase in
              funding     in addition to
              the amount provided for
              each full-time equivalent
              student for regular growth
              in apportionments.
        (b)   $8,100,000 shall be used
              to provide diagnostic and
              support services, preentry
              coursework, alternative
              program delivery model
              development, and other
              services to reduce the
              incidence of student
              attrition in nursing
              programs.
        (d)   The Board of Governors of
              the California Community
              Colleges shall develop a
              request for applications
              (RFA) to allocate the
              additional $5,214,000 of
              funds in subdivision (b)
              to community college
              districts. Criteria for
              assessing each RFA shall
              include all of the
              following:
              (1)   The degree to which
                    the funds provided
                    would be used to
                    increase student
                    enrollment in
                    nursing programs
                    beyond the level of
                    full-time equivalent
                    students served in
                    the 2007-08 academic
                    year.
              (2)   The district's level
                    of attrition from
                    nursing programs and
                    the suitability of
                    planned expenditures
                    to address attrition
                    levels.
              (3)   The degree to which
                    funds provided would
                    be used to support
                    infrastructure or
                    equipment needs with
                    the intent of
                    building capacity
                    and increasing the
                    number of nursing
                    students served.
              (4)   For districts with
                    attrition rates of
                    15 percent or more,
                    new grant funding
                    shall focus on
                    attrition reduction.
                    For districts with
                    attrition rates
                    below 15 percent,
                    new grant funding
                    shall focus on
                    enrollment expansion.
        (e)   The board of governors
              shall release the RFA no
              sooner than 30 days after
              submitting it to the
              Legislature and the
              Department of Finance for
              review.
        (f)   On or before March 1 of
              each year, the Chancellor
              of the California
              Community Colleges shall
              provide the Legislature
              and the Department of
              Finance with a report on
              the allocation of funding.
              For each district
              receiving funding under
              this item, the report
              shall include all of the
              following: (1) the amount
              of funding received, (2)
              the number of nursing full-
              time equivalent students
              served in the 2006-07
              academic year, and the
              additional number of
              nursing full-time
              equivalent students served
              with funding provided in
              this item in each
              subsequent year, (3) the
              district's attrition and
              completion rates in the
              2006-07 academic year and
              subsequent years, (4) any
              equipment or
              infrastructure-related
              items acquired with the
              funds appropriated in this
              item, and (5) the number
              of new and existing
              faculty     receiving
              annual stipend awards.


  SEC. 32.  Item 6870-295-0001 of Section 2.00 of the Budget Act of
2008 is amended to read:
6870-295-0001--For local assistance, Board
of Governors of the California Community
Colleges (Proposition 98), for
reimbursement, in accordance with provisions
of Section 6 of Article XIII B of the
California Constitution or Section 17561 of
the Government Code, of the costs of any new
program or increased level of service of an
existing program mandated by statute or
executive order, for disbursement by the
Controller...................................      3,000
     Schedule:
     (1) 98.01.000.184-Health Fees
         (Ch. 1, Stats. 1984, 2nd
         Ex. Sess.) (CSM-4206)......     1,000
     (2) 98.01.090.896-Sex
         Offenders: Disclosure
         Requirements (Ch. 908,
         Stats. 1996) (CSM-97-TC-
         15)........................     1,000
     (3) 98.01.028.498-Law
         Enforcement Jurisdiction
         Agreements (Ch. 284,
         Stats. 1998) (CSM-98-TC-
         20)........................     1,000
     Provisions:
     1.  Allocation of funds appropriated in
         this item to the appropriate local
         entities shall be made by the
         Controller in accordance with the
         provisions of each statute or
         executive order that mandates the
         reimbursement of the costs, and
         shall be audited to verify the
         actual amount of the mandated costs
         in accordance with subdivision (d)
         of Section 17561 of the Government
         Code. Audit adjustments to prior
         year claims may be paid from this
         item. Funds appropriated by this
         item may be used to provide
         reimbursement pursuant to Article 5
         (commencing with Section 17615) of
         Chapter 4 of Part 7 of Division 4 of
         Title 2 of the Government Code.
     2.  If any of the scheduled amounts are
         insufficient to provide full
         reimbursement of costs, the
         Controller may, upon notifying the
         Director of Finance in     writing,
         augment those deficient amounts from
         the unencumbered balance of any
         other scheduled amounts therein. No
         order may be issued pursuant to this
         provision unless written
         notification of the necessity
         therefor is provided to the
         chairpersons of the committees in
         each house of the Legislature that
         consider appropriations, and the
         Chairperson of the Joint Legislative
         Budget Committee or his or her
         designee.


  SEC. 33.  Section 12.40 of the Budget Act of 2008 is repealed.
  SEC. 34.  Section 12.42 is added to the Budget Act of 2008, to
read:
  Sec. 12.42.  (a) The amounts appropriated in the items set forth in
subdivision (b) are each hereby reduced by the percentage determined
by dividing 943,773,000 by the sum of the amounts appropriated in
the items set forth in subdivision (b).
   (b) Subdivision (a) shall apply to Items 6110-103-0001,
6110-104-0001, 6110-105-0001, 6110-107-0001, 6110-108-0001,
6110-113-0001, 6110-119-0001, 6110-122-0001, 6110-123-0001,
6110-124-0001, 6110-125-0001, 6110-137-0001, 6110-144-0001,
6110-150-0001, 6110-151-0001, 6110-156-0001, 6110-158-0001,
6110-166-0001, 6110-167-0001, 6110-181-0001, 6110-182-0001,
6110-188-0001, 6110-189-0001, 6110-190-0001, 6110-193-0001,
6110-195-0001, 6110-198-0001, 6110-204-0001, 6110-208-0001,
6110-209-0001, 6110-211-0001, 6110-220-0001, 6110-224-0001,
6110-227-0001, 6110-228-0001, 6110-232-0001, 6110-240-0001,
6110-242-0001, 6110-243-0001, 6110-244-0001, 6110-245-0001,
6110-246-0001, 6110-247-0001, 6110-248-0001, 6110-260-0001,
6110-265-0001, 6110-266-0001, 6110-267-0001, 6110-268-0001, as
amended by Chapter 269, Statutes of 2008 and 6360-101-0001 of Section
2.00 of the Budget Act of 2008.
  SEC. 35.  Section 35.80 of the Budget Act of 2008 is repealed.
  SEC. 36.  (a) Notwithstanding any other law, fifty-two million
eight hundred nineteen thousand nine hundred thirty-five dollars
($52,819,935) is reduced from the amount appropriated to the Economic
Impact Aid Program in Item 6110-128-0001 of Section 2.00 of the
Budget Act of 2008 (Chs. 268 and 269, Stats. 2008).
   (b) Notwithstanding any other law, two million dollars
($2,000,000) is reduced from the amount appropriated to the K-12
High-Speed Network in Item 6110-182-0001 of Section 2.00 of the
Budget Act of 2008 (Chs. 268 and 269, Stats. 2008).
   (c) Notwithstanding any other law, two million dollars
($2,000,000) is reduced from the amount appropriated to the Teacher
Incentives National Board Certification Program in Item 6110-195-0001
of Section 2.00 of the Budget Act of 2008 (Chs. 268 and 269, Stats.
2008).
   (d) Notwithstanding any other law, five hundred seventy million
dollars ($570,000,000) is reduced from the amount appropriated to the
State Department of Education for class size reduction in
kindergarten and grades 1 to 3, inclusive, in Item 6110-234-0001 of
Section 2.00 of the Budget Act of 2008 (Chs. 268 and 269, Stats.
2008).
   (e) Notwithstanding any other law, one million dollars
($1,000,000) is reduced from the amount appropriated to the Pupil
Retention Block Grant Program in Item 6110-243-0001 of Section 2.00
of the Budget Act of 2008 (Chs. 268 and 269, Stats. 2008).
   (f) Notwithstanding any other law, one million dollars
($1,000,000) is reduced from the amount appropriated to the
Certificated Staff Mentoring Program in Item 6110-267-0001 of Section
2.00 of the Budget Act of 2008 (Chs. 268 and 269, Stats. 2008).
   (g) Notwithstanding any other law, one million dollars
($1,000,000) is reduced from the amount appropriated to the
California School Paraprofessional Teacher Training Program in Item
6360-101-0001 of Section 2.00 of the Budget Act of 2008 (Chs. 268 and
269, Stats. 2008).
  SEC. 37.  Notwithstanding any other provision of law, the
unobligated balances from the following items are reappropriated to
the State Department of Education for CalWORKs Stage 2 Child Care
services, in augmentation of, and for the purposes specified in,
Schedule (1.5) (e) of Item 6110-196-0001 of Section 2.00 of the
Budget Act of 2008 (Chs. 268 and 269, Stats. 2008):
   (a) Forty-three million two thousand six hundred fifteen dollars
($43,002,615) from Schedule (1) of Item 6110-196-0001 of Section 2.00
of the Budget Act of 2007 (Chs. 171 and 172, Stats. 2007).
   (b) Fifty-one million thirty-six thousand five hundred fifty-three
dollars ($51,036,553) from Schedule (1.5)(a) of Item 6110-196-0001
of Section 2.00 of the Budget Act of 2007 (Chs. 171 and 172, Stats.
2007).
   (c) Two million eight hundred forty-five thousand six hundred
forty-seven dollars ($2,845,647) from Schedule (1.5)(c) of Item
6110-196-0001 of Section 2.00 of the Budget Act of 2007 (Chs. 171 and
172, Stats. 2007).
   (d) Six million three hundred ninety-nine thousand seven hundred
one dollars ($6,399,701) from Schedule (1.5)(d) of Item 6110-196-0001
of Section 2.00 of the Budget Act of 2007 (Chs. 171 and 172, Stats.
2007).
   (e) Two hundred seventeen thousand three hundred fifty-three
dollars ($217,353) from Schedule (1.5)(g) of Item 6110-196-0001 of
Section 2.00 of the Budget Act of 2007 (Chs. 171 and 172, Stats.
2007).
   (f) Four million one hundred twenty-three thousand five hundred
seventy-two dollars ($4,123,572) from Schedule (1.5)(i) of Item
6110-196-0001 of Section 2.00 of the Budget Act of 2007 (Chs. 171 and
172, Stats. 2007).
   (g) Two hundred seventy-four thousand three hundred eighty-one
dollars ($274,381) from Schedule (1.5)(j) of Item 6110-196-0001 of
Section 2.00 of the Budget Act of 2007 (Chs. 171 and 172, Stats.
2007).
   (h) Three thousand seventy-six dollars ($3,076) from Schedule
(1.5)(k) of Item 6110-196-0001 of Section 2.00 of the Budget Act of
2007 (Chs. 171 and 172, Stats. 2007).
   (i) One hundred sixteen thousand one hundred fifteen dollars
($116,115) from Schedule (1.5)(n) of Item 6110-196-0001 of Section
2.00 of the Budget Act of 2007 (Chs. 171 and 172, Stats. 2007).
  SEC. 38.  (a) The sum of nine hundred five million seven hundred
thousand dollars ($905,700,000) is hereby appropriated from the
General Fund to the State Department of Education. This appropriation
reflects the portion of the February 2010 payment for the class size
reduction in kindergarten and grades 1 to 3, inclusive, and the June
2010 principal apportionment that is to be deferred until July 2010
and attributed to the 2010-11 fiscal year. Notwithstanding any other
law, the department shall encumber the funds appropriated in this
section by July 31, 2010. It is the intent of the Legislature that,
by extending the encumbrance authority for the funds appropriated in
this section to July 31, 2010, the funds will be treated in a manner
consistent with Section 1.80 of the Budget Act of 2009. The
appropriation is made in accordance with the following schedule:
   (1) Six million two hundred twenty-seven thousand dollars
($6,227,000) for apprenticeship programs to be expended consistent
with the requirements specified in Item 6110-103-0001 of Section 2.00
of the Budget Act of 2009.
   (2) Ninety million one hundred seventeen thousand dollars
($90,117,000) for supplemental instruction to be expended consistent
with the requirements specified in Item 6110-104-0001 of Section 2.00
of the Budget Act of 2009. Of the amount appropriated by this
paragraph, fifty-one million sixty-one thousand dollars ($51,061,000)
shall be expended consistent with Schedule (1) of Item 6110-104-0001
of Section 2.00 of the Budget Act of 2009, twelve million three
hundred thirty thousand dollars ($12,330,000) shall be expended
consistent with Schedule (2) of that item, four million six hundred
ninety thousand dollars ($4,690,000) shall be expended consistent
with Schedule (3) of that item, and twenty-two million thirty-six
thousand dollars ($22,036,000) shall be expended consistent with
Schedule (4) of that item.
   (3) Thirty-nine million six hundred thirty thousand dollars
($39,630,000) for regional occupational centers and programs to be
expended consistent with the requirements specified in Schedule (1)
of Item 6110-105-0001 of Section 2.00 of the Budget Act of 2009.
   (4) Four million two hundred ninety-four thousand dollars
($4,294,000) for the Gifted and Talented Pupil Program to be expended
consistent with the requirements specified in Item 6110-124-0001 of
Section 2.00 of the Budget Act of 2009.
   (5) Forty-five million eight hundred ninety-six thousand dollars
($45,896,000) for adult education to be expended consistent with the
requirements specified in Schedule (1) of Item 6110-156-0001 of
Section 2.00 of the Budget Act of 2009.
   (6) Four million seven hundred fifty-one thousand dollars
($4,751,000) for community day schools to be expended consistent with
the requirements specified in Item 6110-190-0001 of Section 2.00 of
the Budget Act of 2009.
   (7) Five million nine hundred forty-seven thousand dollars
($5,947,000) for categorical block grants for charter schools to be
expended consistent with the requirements specified in Item
6110-211-0001 of Section 2.00 of the Budget Act of 2009.
   (8) Thirty-eight million seven hundred twenty thousand dollars
($38,720,000) for the School Safety Block Grant to be expended
consistent with the requirements specified in Schedule (1) of Item
6110-228-0001 of Section 2.00 of the Budget Act of 2009.
   (9) Five hundred seventy million dollars ($570,000,000) for class
size reduction in kindergarten and grades 1 to 3, inclusive, to be
expended consistent with the requirements specified in Item
6110-234-0001 of Section 2.00 of the Budget Act of 2009.
   (10) One hundred million one hundred eighteen thousand dollars
($100,118,000) for the Targeted Instructional Improvement Grant
Program to be expended consistent with the requirements specified in
Item 6110-246-0001 of Section 2.00 of the Budget Act of 2009.
   (b) For the purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the
appropriations made by subdivision (a) shall be deemed to be "General
Fund revenues appropriated for school districts," as defined in
subdivision (c) of Section 41202 of the Education Code, for the
2010-11 fiscal year, and included within the "total allocations to
school districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIII B," as
defined in subdivision (e) of Section 41202 of the Education Code,
for the 2010-11 fiscal year.
  SEC. 39.  (a) Notwithstanding Sections 84320, 84321, and 84321.5 of
the Education Code and any other law that covers the regulations
adopted by the Chancellor of the California Community Colleges to
disburse funds, two hundred million dollars ($200,000,000) from the
payment of apportionments to districts pursuant to Sections 84320,
84321, and 84321.5 of the Education Code for July 2009, shall be
deferred to October 2009.
   (b) Notwithstanding any other law, one billion dollars
($1,000,000,000) from the payment of apportionments pursuant to
Section 14041 of the Education Code for July 2009, to local
educational agencies that maintain kindergarten and any of grades 1
to 12, inclusive, shall be deferred to October 2009.
   (c) Notwithstanding any other law, one billion five hundred
million dollars ($1,500,000,000) from the payment of apportionments
pursuant to Section 14041 of the Education Code for August 2009, to
local educational agencies that maintain kindergarten or any of
grades 1 to 12, inclusive, shall be deferred to October 2009.
   (d) Notwithstanding subdivisions (b) and (c) and subject to the
approval of the Director of Finance, the Controller shall issue
warrants pursuant to Section 14041 of the Education Code that include
the full amount of the apportionment payments for the months of July
and August for a local educational agency for which the county
superintendent of schools certifies to the Superintendent of Public
Instruction and to the Director of Finance on or before May 15, 2009,
that the deferral of warrants pursuant to subdivisions (b) and (c)
will result in qualifying the local educational agency for an
emergency apportionment pursuant to Article 2 (commencing with
Section 41320) of Chapter 3 of Part 24 of Division 3 of Title 2 of
the Education Code.
   (e) Notwithstanding subdivision (a) and subject to the approval of
the Director of Finance, the Controller shall issue warrants
pursuant to Sections 84320, 84321, and 84321.5 of the Education Code
that include the full amount of the apportionment payments for the
month of July for a community college for which the Chancellor of the
California Community Colleges determines, in consultation with the
Director of Finance, on or before May 15, 2008, that the deferral of
warrants pursuant to subdivision (a) will present an imminent threat
to the fiscal integrity and security of the community college.
   (f) This section shall apply to payments in the 2009-10 fiscal
year only.
  SEC. 40.  (a) Notwithstanding Sections 84320, 84321, and 84321.5 of
the Education Code and any other law that covers the regulations
adopted by the Chancellor of the California Community Colleges to
disburse funds, the payment of apportionments to districts pursuant
to Sections 84320, 84321, and 84321.5 of the Education Code for the
months of January and February, in the amount of one hundred fifteen
million dollars ($115,000,000) for each month, and the months of
March and April, in the amounts of fifty-five million dollars
($55,000,000) for each month, shall be deferred to July. The total
amount of these payments deferred to the month of July shall be three
hundred forty million dollars ($340,000,000).
   (b) This section is retroactively operative commencing with the
2008-09 fiscal year.
  SEC. 41.  (a) The sum of five hundred forty million dollars
($540,000,000) is hereby appropriated from the General Fund to the
Board of Governors of the California Community Colleges for
apportionments to community college districts, for expenditure during
the 2010-11 fiscal year, to be expended in accordance with Schedule
(1) of Item 6870-101-0001 of Section 2.00 of the Budget Act of 2009.
   (b) The disbursal of funds appropriated in subdivision (a) shall
be deferred until July of the 2010-11 fiscal year. This appropriation
and deferment represent one hundred fifteen million dollars
($115,000,000) of the January apportionment to community college
districts, one hundred fifteen million dollars ($115,000,000) of the
February apportionment to community college districts, fifty-five
million dollars ($55,000,000) of the March apportionment to community
college districts and fifty-five million dollars ($55,000,000) of
the April apportionment to community college districts, and two
hundred million dollars ($200,000,000) of the June apportionment to
community college districts.
   (c) For the purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the
appropriation made by subdivision (a) shall be deemed to be "General
Fund revenues appropriated for community college districts," as
defined in subdivision (d) of Section 41202 of the Education Code,
for the 2010-11 fiscal year, and included within the "total
allocations to school districts and community college districts from
General Fund proceeds of taxes appropriated pursuant to Article XIII
B," as defined in subdivision (e) of Section 41202 of the Education
Code, for the 2010-11 fiscal year.
  SEC. 42.  (a) For the 2008-09 and 2009-10 fiscal years, in order to
provide local budgeting flexibility as a result of budget reductions
made by the Legislature for the 2008-09 and 2009-10 fiscal years,
the governing board of a school district or county office of
education may use up to 100 percent of the balances, as of June 30,
2008, of restricted accounts in its general fund or cafeteria fund,
excluding restricted reserves committed for capital outlay, bond
funds, sinking funds, and federal funds, and excluding balances in
the following programs:
   (1) Economic Impact Aid (Article 2 (commencing with Section 54020)
of Chapter 1 of Part 29 of Division 4 of Title 2 of the Education
Code).
   (2) Targeted Instructional Improvement Grant (former Chapter 2.5
(commencing with Section 54200) of Part 29 of Division 4 of Title 2
of the Education Code).
   (3) Instructional materials.
   (4) Special education.
   (5) Quality Education Investment Act of 2006 (Article 3.7
(commencing with Section 52055.700) of Chapter 6.1 of Part 28 of
Division 4 of Title 2 of the Education Code).
   (6) California High School Exit Exam Intensive Intervention
Program.
   (7) Home-to-school transportation.
   (b) For purposes of this section, balances of restricted accounts
do not include the amounts deferred from the 2006-07 fiscal year to
the 2007-08 fiscal year or the amounts deferred from the 2007-08
fiscal year to the 2008-09 fiscal year.
   (c) A governing board shall not use the ending balance in any
restricted account if that use would violate a federal maintenance of
effort requirement.
   (d) This section does not obligate the state to refund or repay
funds used pursuant to this section. If a school district uses an
ending balance in a restricted account that consists, in whole or in
part, of funds reimbursed to the district as a subvention of funds
for a state-mandated local program, the school district shall not
submit a claim to the state for a subsequent reimbursement of the
funds that were reimbursed pursuant to Section 6 of Article XIII B of
the California Constitution and used pursuant to the authority
granted to a school district pursuant to this section.
   (e) A governing board that elects to use balances in restricted
accounts pursuant to this section shall report to the Superintendent,
in a manner determined by the Superintendent, regarding the programs
and amounts of restricted balances used pursuant to subdivision (a).
The Superintendent shall report statewide information and
information for each school district and county office of education
to the Joint Legislative Budget Committee by October 31, 2009.
  SEC. 43.  (a) Notwithstanding any other provision of law, in order
to effectuate the General Fund savings associated with the reductions
in appropriations made by this act, the Superintendent of Public
Instruction shall reduce the principal apportionment for school
districts and county offices of education for the 2008-09 fiscal
year, as necessary, if both of the following occur during the 2008-09
fiscal year:
   (1) The Controller has disbursed funds from the appropriations
reduced by this act in amounts greater than the amounts remaining in
those appropriations following the reductions.
   (2) The Superintendent determines there is no other way to recover
the funds that have been disbursed prior to the end of the 2008-09
fiscal year.
   (b) This section shall be broadly construed to effectuate its
purpose.
  SEC. 44.  (a) Notwithstanding Sections 42238.1 and 42238.15 of the
Education Code or any other law, the cost-of-living adjustment for
Items 6110-104-0001, 6110-105-0001, 6110-119-0001, 6110-122-0001,
6110-124-0001, 6110-128-0001, 6110-150-0001, 6110-156-0001,
6110-158-0001, 6110-161-0001, 6110-167-0001, 6110-181-0001,
6110-189-0001, 6110-190-0001, 6110-193-0001, 6110-196-0001,
6110-203-0001, 6110-209-0001, 6110-211-0001, 6110-224-0001,
6110-232-0001, 6110-234-0001, 6110-244-0001, and 6110-246-0001 of
Section 2.00 of the Budget Act of 2009 is zero percent for the
2009-10 fiscal year. All funds appropriated in the Budget Act
                                        of 2009 in the items
identified in this section are in lieu of the amounts that would
otherwise be appropriated pursuant to any other provision of law.
   (b) Notwithstanding Section 42238.1 of the Education Code or any
other law, for purposes of Section 48664 of the Education Code the
cost-of-living adjustment is zero percent for the 2009-10 fiscal
year.
  SEC. 45.  Notwithstanding any other provision of law, the funds
appropriated pursuant to Items 6110-103-0001, 6110-104-0001,
6110-105-0001, 6110-124-0001, 6110-156-0001, 6110-158-0001,
6110-161-0001, 6110-190-0001, 6110-211-0001, 6110-234-0001, and
6110-243-0001 of Section 2.00 of the Budget Act of 2009 shall be
encumbered by July 31, 2010. This one-month extension of encumbrance
authority is provided due to the effect of the deferral of the June
2010 principal apportionment on the budget items specified in this
section. It is the intent of the Legislature that, by extending the
encumbrance authority for the funds identified in this section to
July 31, 2010, the funds will be treated in a manner consistent with
Section 1.80 of the Budget Act of 2009.
  SEC. 46.  This act addresses the fiscal emergency declared by the
Governor by proclamation on December 19, 2008, pursuant to
subdivision (f) of Section 10 of Article IV of the California
Constitution.
  SEC. 47.  This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:
   In order to make the necessary statutory changes to implement the
Budget Act of 2008 at the earliest time possible, it is necessary
that this act take effect immediately.