BILL ANALYSIS                                                                                                                                                                                                    

                                                                  SB 847
                                                                  Page  1

          SB 847 (Steinberg)
          As Amended  August 20, 2010
          2/3 vote.  Urgency

           SENATE VOTE  :   Vote not relevant
           SUMMARY  :  Creates an urgency statute that appropriates  
          $1,201,534,585 from the Federal Trust Fund to the California  
          Department of Education (CDE) for purposes of implementing the  
          federal Education Jobs and Medicaid Assistance Act of 2010 (the  
          Jobs Act or Public Law 111-226), requires that $1,200,034,585 of  
          those funds be allocated to local educational agencies (LEAs) in  
          accordance with federal law, and makes $1.5 million available to  
          the CDE during the period from August 10, 2010 through December  
          30, 2012.

           EXISTING LAW  requires expenditure authority to be granted, through  
          an appropriation in the Budget Act, a continuous statutory  
          appropriation or through an appropriation in special legislation,  
          before a state agency or department is able to expend or allocate  
          funds to other entities, such as LEAs.

           FISCAL EFFECT  :  This bill appropriates $1,201,534,585 in federal  
          funds available to the state under the recently enacted Education  
          Jobs and Medicaid Assistance Act.

           COMMENTS  :  On August 10, President Obama signed HR 1586 into law,  
          enacting the Jobs Act which includes $16.1 billion in expanded  
          Federal Medical Assistance Percentage (FMAP) funding for the  
          states and $10 billion in education funding provided to the states  
          to support an estimated 160,000 education jobs nationwide.  The  
          Jobs Act requires that the education funds provided to the states  
          be spent by LEAs to prevent teacher layoffs in the 2010-11 school  
          year, that the funding be allocated to LEAs based on a state's  
          funding formula specified in the state's State Fiscal  
          Stabilization Fund (SFSF) application or each districts' relative  
          share of federal Title I funds, that states show that they have  
          met maintainence of effort provisions, and that this funding not  
          be used to supplant state education funding or provide a funding  

          The $10 billion in education funding will be allocated to the  
          states proportional to state population; California will receive  
          an allocation of over $1.2 billion.  The U.S. Department of  
          Education (USDOE) estimates that this funding will save  


                                                                  SB 847
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          approximately 16,500 teacher jobs in California; an estimated  
          22,000 teachers received pink slips in spring of this year.   
          According to United States Secretary of Education Arne Duncan,  
          "With the support of the jobs bill, these educators will be  
          helping our children learn instead of looking for work.  This is  
          the right thing to do for our children, for our teachers, and for  
          our economy."

          In order to ensure that states receive funding as quickly as  
          possible, USDOE is streamlining the application process so that  
          states can submit applications shortly.  USDOE will award funding  
          to states within two weeks of their submission of an approvable  
          application.  The purpose of this bill is to appropriate these  
          expected federal funds and to provide the CDE with the expenditure  
          authority necessary for it to allocate those funds, when received  
          by the state, to LEAs at the earliest time possible.

           Analysis Prepared by  :    Gerald Shelton / ED. / (916) 319-2087 
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