BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                                      VETO


          Bill No:  SB 81
          Author:   Alquist (D)
          Amended:  9/4/09
          Vote:     27 - Urgency

           
           SENATE FLOOR  :  26-0 (FAIL), 9/12/09
          AYES:  Alquist, Calderon, Cedillo, Corbett, Correa,  
            DeSaulnier, Ducheny, Florez, Hancock, Kehoe, Leno, Liu,  
            Lowenthal, Maldonado, Negrete McLeod, Oropeza, Padilla,  
            Pavley, Price, Romero, Simitian, Steinberg, Wiggins,  
            Wolk, Wright, Yee
          NO VOTE RECORDED:  Aanestad, Ashburn, Benoit, Cogdill, Cox,  
            Denham, Dutton, Harman, Hollingsworth, Huff, Runner,  
            Strickland, Walters, Wyland
           
          ASSEMBLY FLOOR  :  77-0, 9/11/09 - See last page for vote

           SB 307 VOTES  : 

              SENATE EDUCATION COMMITTEE  :  9-0, 6/17/09
             AYES:  Romero, Huff, Alquist, Hancock, Liu, Maldonado,  
               Padilla, Simitian, Wyland

              SENATE FLOOR  :  40-0, 6/24/09 (Consent)
             AYES:  Aanestad, Alquist, Ashburn, Benoit, Calderon,  
               Cedillo, Cogdill, Corbett, Correa, Cox, Denham,  
               DeSaulnier, Ducheny, Dutton, Florez, Hancock, Harman,  
               Hollingsworth, Huff, Kehoe, Leno, Liu, Lowenthal,  
               Maldonado, Negrete McLeod, Oropeza, Padilla, Pavley,  
               Price, Romero, Runner, Simitian, Steinberg,  
               Strickland, Walters, Wiggins, Wolk, Wright, Wyland,  
               Yee
                                                           CONTINUED





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           SUBJECT  :    Regional occupational centers or programs

           SOURCE  :     Metropolitan Education District


           DIGEST  :    Assembly Amendments  delete the Senate version  
          expressing the intent of the Legislature to enact necessary  
          statutory changes relating to the Budget Act of 2009.  This  
          bill now places SB 307 (Alquist) into the bill requiring,  
          for the 2009-10 fiscal year to the 2012-13 fiscal year, a  
          regional occupational center or program, maintained by a  
          joint powers authority, to receive its operating funds  
          directly from the county office of education of the county  
          in which it is located, as specified.

           ANALYSIS  :    

          Existing law: 

          1. Authorizes the establishment of regional occupation  
             centers or programs (ROC/Ps) by high school districts,  
             district consortia (operating as a joint powers agency  
             [JPA]), or county offices of education. 

          2. Establishes a funding formula for ROC/Ps based on per  
             pupil revenue limits for each ROC/P, current year  
             average daily attendance (ADA) or a cap on funded ADA as  
             established historically and in the prior year, any  
             annual cost-of-living adjustment (COLA) made to the per  
             pupil revenue limit amounts in the annual Budget Act,  
             and any adjustments to the funded cap on ADA made for  
             growth. 

          3. Provides for temporary flexibility to spend the funds  
             appropriated for nearly all categorical programs,  
             including funding for ROC/Ps, in order to relieve local  
             budget pressure created by the current economic  
             downturn. 

          This bill:

          1. Requires, for the 2009-10 through the 2012-13 fiscal  







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             year, that an ROC/P, established and maintained by  
             school districts acting as a JPA, receive its operating  
             funds directly from the county office of education (COE)  
             of the county in which it is located in a manner that is  
             consistent with the apportionments for those school  
             districts that comprise the JPA and that are provided to  
             the COE pursuant to the annual Budget Act. 

          2. Authorizes a JPA receiving an apportionment for a school  
             district pursuant to #1 above to disburse those funds,  
             pursuant to its joint powers agreement, to the school  
             district to which that apportionment was made. 

          3. Specifies that nothing in these provisions prevents any  
             school district or COE from using ROC/P funding for any  
             educational purpose. 

           Comments  

          This bill originally served as a budget bill intended to  
          enact statutory changes relating to the Budget Act of 2009.  
           As such, this bill has not been heard in any policy of  
          fiscal committee.  This bill in its current version is  
          substantially similar to SB 307 (Alquist).  That bill was  
          heard by the Assembly Education Committee and was held  
          under submission in the Assembly Appropriations Committee. 

          ROC/Ps offer a vocational educational program for high  
          school students and adults, and may be operated by a  
          district, a consortium of districts under a joint powers  
          agreement, or by a COE.  Nearly every COE in California  
          operates a single, countywide ROC/P.  California's 74  
          ROC/Ps have existed as part of California's educational  
          system for over 35 years.  According to the California  
          Department of Education (CDE), nearly 470,000 students age  
          16 or older enroll in ROC/Ps each year; approximately 30  
          percent of those students are adult learners.  Twenty-six  
          of the current ROC/Ps operate as a JPA.  These JPAs operate  
          under specific requirements, defined in Government Code,  
          dealing with governance, fiscal and programmatic  
          accountability, and the nature of the agreement between the  
          member districts.  The JPA administers the programs,  
          classes and day-to-day operations of the ROC/P; ROC/P  
          funding apportioned to each of the member districts  







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          provides the fiscal support for the JPA. 

          ROC/P funding is provided to districts as part of the  
          Principal Apportionment, which also includes regular  
          revenue limit funding, and is included in a block of  
          funding (equal to the sum of Principal Apportionment  
          funding for all districts in a county) that the CDE  
          provides to the COE.  COEs have historically served as  
          clearinghouses that distribute this funding to each of the  
          districts in the county according to a schedule that is  
          also provided by the CDE.  Up to and including the 2008-09  
          fiscal year, funding for ROC/Ps operating as a JPA was  
          treated in this manner with the funds moving from the CDE  
          to the COE, then being transferred to each JPA member  
          district, and finally being submitted by the member  
          districts to the JPA.  This process was to be changed  
          commencing with the 2009-10 fiscal year as a result of SB  
          1197 (Alquist), Chapter 519, Statutes of 2008.  SB 1197  
          requires that a ROC/P operated as a JPA receive its funding  
          directly from the COE, rather than the funds being  
          transferred from the COE to the member districts prior to  
          the JPA receiving those funds from each of the school  
          districts.  This new provision was enacted January 1, 2009,  
          and was to be operative for the 2009-10 fiscal year. 

          In February 2009, SB 4XXX (Ducheny), Chapter 12, Statutes  
          of 2009-10, Third Extraordinary Session [as amended in July  
          by AB 2XXXX (Evans), Chapter 2, Statutes of 2009-10, Fourth  
          Extraordinary Session], implemented categorical flexibility  
          for the 2008-09 through 2012-13 fiscal year.  This  
          flexibility allows recipients to use restricted educational  
          funding from 43 categorical programs, including ROC/P  
          funding, for any discretionary educational purpose.  This  
          flexibility was achieved by deeming those funding  
          recipients to be in compliance with the program and funding  
          requirements contained in statutory, regulatory, and  
          provisional language associated with those programs.   
          Funding for these flexible programs is apportioned from the  
          amounts provided in the Budget Act in an amount based on  
          the same relative proportion that the recipient received in  
          the 2008-09 fiscal year for those programs.  As a condition  
          of receiving this flexibility, district governing boards  
          and county boards of education are required to hold public  
          hearings on the proposed use of the flexible funds, and are  







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          required to fully account for all expenditures. 

          Implementation of the flexibility provision (i.e., placing  
          the flexibility provisions of AB 2XXXX ahead of the intent  
          of SB 1197) in the case of JPA-operated ROC/P funding could  
          create fiscal problems for the JPA, in the same way that  
          other educational programs may be affected by flexibility,  
          if a JPA member school district chooses to make use of its  
          flexibility authority and move ROC/P funds to another use.   
          On the other hand, failure to allow that district to  
          implement flexibility (by placing the intent of SB 1197  
          ahead of the flexibility provisions), may jeopardize a JPA  
          member district's fiscal status.  The fundamental question  
          raised by this bill is whether the Legislature, in SB 4XXX,  
          intended that ROC/P funds, including those apportioned for  
          JPA member school districts, be subject to flexibility in  
          that those previously restricted monies could be used by  
          the recipient school district or COE for any discretionary  
          purpose.

          This bill proposes to resolve this question so that under  
          any circumstances during the 2009-10 through 2012-13 fiscal  
          years, COEs transfer the apportioned funds to JPAs in order  
          to continue the operation of the JPA ROC/Ps.  In other  
          words, this bill places the provisions of SB 1197 in a  
          dominant position over the flexibility provisions of SB  
          4XXX.  Effectively, this bill provides a protected status  
          for JPA operated ROC/Ps in that funding apportioned to JPA  
          member school districts will be spent on the ROC/P  
          activities with no opportunity for the member school  
          district to put those funds to another discretionary use.   
          Supporters of this bill state that, "This bill will correct  
          an unintended consequence of the 2009-10 budget trailer  
          bill [SB 4XXX]," and describe this bill as "a cleanup bill"  
          that "has no fiscal impact and remains consistent with [SB  
          4XXX], by ensuring local control and flexibility." 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No    
          Local:  No

           SUPPORT  :   (Verified  9/10/09)

          Metropolitan Education District (source)








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           SB 307 SUPPORT (6/18/09)  :

          Association of California School Administrators
          California Association of Regional Occupational Centers and  
          Programs
          California Association of Sheet Metal and Air Conditioning   

          Contractors'  National-Association
          California Automotive Business Coalition
          California Federation of Teachers
          California Industrial and Technology Education Association
          East San Gabriel Valley Regional Occupational Program and  
            Technical Center
          Metropolitan Education District
          Mission Valley ROP
          Southern California Regional Occupational Center


           GOVERNOR'S VETO MESSAGE:
           
             "I am returning Senate Bill 81 without my signature.  
             I am concerned that this bill runs counter to the  
             intent of recently enacted K-12 categorical  
             flexibility provisions that were part of the 2009-10  
             state budget agreement.  Those provisions were  
             included to assist K-12 schools in meeting their  
             highest priorities in an environment of significant  
             funding constraints. For this reason, I am unable to  
             sign this bill."


           ASSEMBLY FLOOR  : 
          AYES:  Adams, Ammiano, Anderson, Arambula, Beall, Bill  
            Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,  
            Bradford, Buchanan, Caballero, Charles Calderon, Carter,  
            Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,  
            DeVore, Emmerson, Eng, Evans, Feuer, Fletcher, Fong,  
            Fuentes, Fuller, Furutani, Gaines, Galgiani, Garrick,  
            Gilmore, Hall, Harkey, Hayashi, Hernandez, Hill, Huber,  
            Huffman, Jeffries, Jones, Knight, Krekorian, Lieu, Logue,  
            Bonnie Lowenthal, Ma, Mendoza, Miller, Monning, Nava,  
            Nestande, Niello, Nielsen, John A. Perez, V. Manuel  
            Perez, Portantino, Ruskin, Salas, Saldana, Silva,  
            Skinner, Smyth, Solorio, Audra Strickland, Swanson,  







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            Torlakson, Torres, Torrico, Tran, Villines, Yamada, Bass
          NO VOTE RECORDED:  Brownley, Hagman, Vacancy


          DLW:mw  1/11/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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