BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 307
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          Date of Hearing:   August 27, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                   SB 307 (Alquist) - As Amended:  August 24, 2009 

          Policy Committee:                             Education Vote:9-0

          Urgency:     Yes                  State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill requires, for the 2009-10 fiscal year (FY) to the  
          2012-13 FY, a regional occupational center program (ROC/P),  
          maintained by a joint powers authority (JPA), to receive its  
          operating funds directly from the county office of education  
          (COE) of the county in which it is located, as specified.   
          Specifically, this bill:  

          1)Requires the ROC/P JPA to receive its operating funding in a  
            manner consistent with the funding for school districts that  
            comprise the JPA, which is provided to the COE pursuant to the  
            annual budget act.  

          2)Authorizes a ROC/P JPA that receives funding under this  
            measure to provide funding to the school district (pursuant to  
            its JPA agreement).  

          3)Specifies that this measure does not prohibit any school  
            district or COE from utilizing ROC/P funding allocated in the  
            annual budget act for any educational purpose, as specified in  
            SB 4 X3 (Ducheny), Chapter 12, Statutes of 2009 (the budget  
            flexibility language enacted in February 2009).   

           FISCAL EFFECT  

          Potential GF/98 cost pressure, likely between $200,000 and  
          $280,000, if a school district does not receive their funding  
          from the ROC/JPA (see comment #3 below).  There are 26 ROC/P  
          JPAs in the state. 

          As part of the February 2009 budget package, SB 4 X3 (Ducheny),  
          Chapter 12, Statutes of 2009, provided local education agencies  
          (LEAs) with policy and fiscal flexibility for all ROC/P programs  
          funded in the budget act, including those operated by JPAs.   






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          This bill is contrary to these provisions because school  
          districts participating in the ROC/P JPA will not have direct  
          access to ROC/P funding in order to use in a flexibility manner.  
               

           COMMENTS 

           1)Background  .  ROC/Ps provide high school students 16 years of  
            age and older, and also adult students, with valuable career  
            and technical education (CTE) so students can: (a) enter the  
            workforce with skills and competencies to be successful; (b)  
            pursue advanced training in higher educational institutions;  
            and/or (c) upgrade existing skills and knowledge. There are 74  
            ROC/Ps in the state serving approximately 470,000 students in  
            secondary schools.  Of this number, 26 are operated by a JPA.   


            ROC/Ps fall under one of three distinct organizational  
            structures: (a) school districts participating in a  
            COE-operated ROC/P; (b) school districts participating under a  
            JPA; or (c) a single school district.  This bill attempts to  
            rectify funding issues related to ROC/P maintained by a JPA.  

            SB 4 X3 (part of the February budget process), provided LEAs  
            with unprecedented fiscal and policy flexibility related to  
            over 40 categorical programs between the 2008-09 FY to the  
            2012-13 FY.  Specifically, any LEA that received funding for  
            specified categorical programs, including ROC/Ps, in the  
            2008-09 FY is authorized to use this funding for any other  
            educational purpose until the 2012-13 FY.  The LEA may choose  
            to continue operating the categorical program that it received  
            funding for or redirect it for any other educational purpose  
            it deems appropriate.

            This bill, sponsored by the Metropolitan Education District,  
            requires a ROC/P JPA to receive its funding directly from  
            COEs, not school districts.  The author argues this bill is  
            technical clean-up to ensure that ROC/P JPA continue receiving  
            their funding.  

           2)SB 1197 (Alquist), Chapter 519, Statutes of 2008  , requires,  
            commencing with the 2009-10 FY, ROC/P JPAs to receive funding  
            directly from COE in which it is located, instead of receiving  
            funds from each of the school districts participating in the  
            JPA.  

            Prior to the enactment of Chapter 519, ROC/P JPAs received  






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            their funding from school districts participating in the JPA.   
            The funding is based on their average daily attendance (ADA)  
            (i.e., unit that generates the amount of revenue limit  
            funding).  

            As referenced above, SB 4 X3 (enacted in February 2009)  
            established policy and fiscal flexibility for all ROC/P  
            programs funded in the budget act, including those operated by  
            JPAs.  Presumably, the statutory flexibility allows school  
            districts who receive ROC/P funding to do one of two things:  
            (a) continue operating their programs or (b) redirect a  
            portion or all funding for another education purpose during  
            the time period established in statute.  

            This bill requires, for the 2009-10 FY to the 2012-13 FY, a  
            ROC/P JPA to receive its operating funds directly from the COE  
            of the county in which it is located as set forth in SB 1197.   
            As such, it is unclear if school districts participating in  
            the JPA have access to their funding that is allocated for the  
            ROC/P JPA and therefore, have the ability to utilize these  
            funds in a flexible manner as established in SB 4 X3.  

           3)What happens to funding, if school districts participating in  
            a ROC/P JPA program chooses not to participate  ?  This bill  
            specifies that nothing prohibits any school district or COE  
            from utilizing ROC/P funding allocated in the annual budget  
            act for any educational purpose, as specified in SB 4 X3.   
            However, it is unclear as to how the school district would  
            access this funding for potential flexibility purposes if it  
            decides not to participate in the ROCP/JPA.  

            For example, under this bill, a COE allocates funding directly  
            to the ROC/P JPA.  If a school district chooses not to  
            participate in the program, it is unclear (under local JPA  
            agreements) if any or all of their funding would be returned  
            to it.  Therefore, school districts may be paying the ROC/P  
            JPA and not having students served.  If a school district does  
            not receive their funding from the ROC/JPA, it is conceivable  
            for a district to request a backfill from the COE or the  
            state. 

            The committee may wish to consider whether or not this bill  
            should address issues related to a school district's desire to  
            terminate the JPA agreement.   
               
           Analysis Prepared by  :    Kimberly Rodriguez / APPR. / (916)  
          319-2081 






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