BILL ANALYSIS                                                                                                                                                                                                    

                                                                  SB 847
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          SB 847 (Steinberg)
          As Amended  August 26, 2010
          2/3 vote.  Urgency

           SENATE VOTE  :(vote not relevant)  
           EDUCATION           9-0                                         
          |Ayes:|Brownley, Nestande,       |     |                          |
          |     |Ammiano, Arambula,        |     |                          |
          |     |Carter, Eng, Miller,      |     |                          |
          |     |Norby, Torlakson          |     |                          |
          |     |                          |     |                          |
           SUMMARY  :   Creates an urgency statute that appropriates  
          $1,201,534,585 from the Federal Trust Fund for the purposes of  
          implementing the federal Education Jobs and Medicaid Assistance  
          Act of 2010 (Education Jobs Act), Public Law 111-226.   
          Specifically,  this bill  :

          1)Appropriates $1,201,534,585 from the Federal Trust Fund to the  
            Office of Planning and Research (OPR), and authorizes $128,000  
            of those federal funds to be available to OPR for the purpose  
            of providing oversight of Education Jobs Act funds allocated  
            to local educational agencies (LEAs).

          2)Requires that $1,201,406,585 of those federal funds be  
            transferred to the California Department of Education (CDE)  
            for the purpose of implementing the Education Jobs Act, and  
            requires those funds to be expended as follows:

             a)   $1,199,906,585 to be allocated to LEAs on the basis of  
               an equal amount per unit of 2010-11 Second Principal  
               Apportionment average daily attendance (P-2 ADA).  Requires  
               a preliminary allocation equal to 90% of the estimated  
               final allocation, with that estimate based on 2009-10 P-2  
               ADA, to be allocated no later than 14 days following the  
               enactment of this bill or the notification of an award for  
               federal funding, whichever is later; and,

             b)   $1.5 million to be available to the CDE for  


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               administrative purposes related to the allocation of  
               Education Jobs Act funds to LEAs.

          3)Clarifies that LEAs are required to use allocated Education  
            Jobs Act funds in a manner consistent with the requirements of  
            the Education Jobs Act and any related federal regulations or  
            guidance, and requires the funds to be used only for  
            compensation, benefits and other expenses, including support  
            services, necessary to retain existing employees, to recall or  
            rehire former employees, and to hire new employees, where  
            those employees provide school-level educational and related  

          4)Authorizes any LEA that receives an allocation of Education  
            Jobs Act funds and has funds remaining after fiscal year  
            2010-2011, to use those remaining funds through September 30,  
            2012, for the purposes specified.

           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 Act.

           COMMENTS  :  On August 10, 2010, President Obama signed HR 1586  
          into law, enacting the Education 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 Education 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 those  
          funds be expended by September 30, 2012, that the funding be  
          allocated to LEAs based on a state's primary funding formula as  
          specified in the state's State Fiscal Stabilization Fund (SFSF)  
          application (in the case of California's application this would  
          mean that funds are allocated in a manner consistent with the  
          requirements of Proposition 98) 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  


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          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 United States (U.S.)  
          Department of Education (USDOE) estimates that this funding will  
          save approximately 16,500 teacher jobs in California; an  
          estimated 22,000 teachers received layoff notices in spring of  
          this year.  According to U.S. Secretary of Education (USSE) 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 to allow  
          states to submit applications in an expedited manner.  The  
          Governor submitted California's application for these funds on  
          August 13, 2010.  In that application the Governor responded  
          that the state's primary funding formula as specified in the  
          state's State Fiscal Stabilization Fund (SFSF) application would  
          be used to allocate funds to LEAs, and provided a number of  
          assurances related to this program.  

          According to USDOE, it will award funding to states within two  
          weeks of a state's submission of an approvable application.  The  
          purpose of this bill is to appropriate these expected federal  
          funds and to provide the appropriate state entity with the  
          expenditure authority necessary for it to allocate those funds,  
          when received by the state, to LEAs at the earliest time  

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

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