BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 2XXXX|
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UNFINISHED BUSINESS
Bill No: SB 2XXXX
Author: Ducheny (D)
Amended: 7/23/09
Vote: 27 - Urgency
SENATE FLOOR : Not relevant
ASSEMBLY FLOOR : Not available
SUBJECT : Budget Act of 2009: Education
SOURCE : Author
DIGEST : Assembly Amendments deleted the prior version of
the bill expressing the intent of the Legislature to enact
statutory changes relating to the 2009 Budget Act.
This bill now provides the necessary statutory changes in
the area of education in order to enact modifications to
the 2009 Budget Act.
ANALYSIS : This bill makes the following changes
necessary to effectuate the 2009 Budget Act:
I. K-12 Education
Revenue Limit Reductions and Deficit Factors . Revises
deficit factors for revenue limits for school districts
and county offices of education to reflect an
additional $2.4 billion reduction for revenue limits in
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2009-10.
Categorical Reductions for Basic Aid Districts .
Reduces categorical funding for Basic Aid school
districts proportionate to the additional revenue limit
reductions implemented for non-Basic Aid school
districts in 2009-10 pursuant to this act.
Reserve for Economic Uncertainty . Reduces the minimum
state requirement for reserves for economic uncertainty
for local educational agencies (LEAs) to one-third of
the currently required level for 2009-10. Requires
LEAs to make progress in restoring reserves in 2010-11
and to fully restore reserves in 2011-12.
II. LEA Fiscal Oversight . Prohibits a county
superintendent of schools or the Superintendent of
Public Instruction from assigning a qualified or
negative certification to a LEA for the 2009-10 fiscal
year based substantially on a projected loss of federal
Fiscal Stabilization Funds in 2011-12.
III. Expands Funding Flexibility Provisions for LEAs
Instructional School Days . Allows school districts to
reduce the number of instructional days (or the
equivalent instructional minutes) by five days - from
180 to 175 days per year - without losing longer school
year incentives. These provisions would be in effect
for four years - from 2009-10 through 2012-13.
Instructional Materials . Suspends statutory
requirements that LEAs buy newly adopted instructional
materials through 2012-13. (The February package
suspended this requirement in 2008-09 and 2009-10
only.) In addition, the State Board of Education shall
not adopt instructional materials through 2012-13.
Sale of Surplus Property . Permits school districts to
sell surplus property purchased entirely with local
funds and to use the proceeds for any one-time general
fund purposes. This authority is operative until
January 1, 2012. The Office of Public School
Construction shall report to the Legislature and the
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State Allocation Board to identify districts that have
exercised this authority, the amount of proceeds
involved, and the purpose for which the proceeds were
used.
Routine Maintenance Reserves . Allows school districts
that are compliant with the facilities requirements of
the Williams settlement to suspend the current one
percent reserve requirement for routine maintenance.
The February budget reduced routine maintenance
reserves from three percent to one percent of district
General Fund budgets. All of these requirements are in
effect for five years - 2008-09 through 2012-13.
Access to Ending Fund Balances . Provides LEAs with
access to additional, prior-year fund balances in
2008-09 and 2009-10 beyond those provided in February,
including the following programs/funds: Targeted
Instructional Improvement Grants, Instructional
Materials, California High School Exit Exam, Adult
Education, Deferred Maintenance, Pupil Transportation
Equipment, and Capital Outlay. Clarifies protection
(no access to balances) for the Child Development,
Child Nutrition and English Language Learner Pilot
programs. The Economic Impact Aid, Special Education,
Home-to-School Transportation, Quality Education
Investment Act programs remain protected.
IV. Categorical Flexibility Clean-Up . Makes various
technical changes to clarify implementation of
categorical program reductions and new funding
flexibility enacted as a part of the February special
session budget packages, including:
A. Ensuring that new schools, including charter
schools, beginning operation in 2008-9 or after may
apply for categorical funds included in the five
year flexibility program.
B. Continuing funding deficiencies for the charter
school block grant that are related to unanticipated
charter school enrollment growth.
V. California High School Exit Exam (CAHSEE) Suspension
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for Students with Disabilities . Suspends the
requirement that eligible students with disabilities
pass the CAHSEE in order to graduate from high school.
This suspension becomes effective in 2009-10, and will
last until the State Board of Education acts upon a
recommendation for an alternative means for assessing
eligible students.
VI. Charter School Facility Grant Funding . Converts
funding from a reimbursement basis to a grant basis
commencing in 2009-10, allowing the program to receive
funding in the same year it is earned.
VII. Quality Education Investment Act (QEIA) Funding .
Suspends a $402 million payment scheduled for 2009-10,
and declares that future annual QEIA payments shall be
made no sooner than October 8 of each fiscal year.
Authorizes $402 million in base 2009-10 Proposition 98
funding in lieu of QEIA funding, reduces 2009-10
revenue limit funding by the same amount, and
authorizes LEAs whose revenue limit funding was reduced
to apply for federal Title I funding.
VIII. Child Care
A. Specifies that subsidized child care providers
be reimbursed at a maximum of the 85th percentile of
the 2005 Regional Market Survey.
B. Prohibits the California Department of Education
from revising State Median Income levels for use in
the child development program mid year.
C. Maintains the current family fee schedule.
D. Clarifies conditions for payment of daily rates
in lieu of weekly or monthly rates.
E. Retains current law, which states that families
receiving CalWORKs cash aid not be charged a family
fee for child care services.
F. Repeals automatic carryover of child care funds.
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G. Makes Los Angeles-based CARES program contingent
upon funding being appropriated in the Budget Act.
H. Eliminates the School Age Community Child Care
Services (Extended Day or Latchkey) Program,
effective August 31, 2009, due to an overlap with
existing After School services.
IX. Community Colleges
A. Allows community college districts to transfer
funding from, and amongst, 12 categorical programs
to any other categorical program. This flexibility
provision is operative for 2009-10 through 2012-13.
B. Increases student fees by $6 per unit, from the
current level of $20 per unit to $26 per unit.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
DLW:mw 7/23/09 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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