BILL ANALYSIS
SB 847
Page 1
SENATE THIRD READING
SB 847 (Steinberg)
As Amended August 26, 2010
2/3 vote. Urgency
SENATE VOTE :(vote not relevant)
EDUCATION 9-0
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|Ayes:|Brownley, Nestande, | | |
| |Ammiano, Arambula, | | |
| |Carter, Eng, Miller, | | |
| |Norby, Torlakson | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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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
SB 847
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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
services.
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
reserve.
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
possible.
Analysis Prepared by : Gerald Shelton / ED. / (916) 319-2087
FN: 0006781