BILL ANALYSIS                                                                                                                                                                                                    

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          SB 847 (Steinberg)
          As Amended  August 30, 2010
          2/3 vote.  Urgency

           SENATE VOTE  :Vote not relevant  
           EDUCATION           9-0         APPROPRIATIONS      13-0        
          |Ayes:|Brownley, Nestande,       |     |Fuentes, Conway,          |
          |     |Ammiano, Arambula,        |     |Bradford,                 |
          |     |Carter, Eng, Miller,      |     |Charles Calderon, Coto,   |
          |     |Norby, Torlakson          |     |Davis, Gatto, Hall,       |
          |     |                          |     |Nielsen, Norby, Solorio,  |
          |     |                          |     |Torlakson, Torrico        |
          |     |                          |     |                          |
           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 in an amount  
               proportional to the amount calculated for the 2010-11  
               fiscal year for school district total revenue limits,  
               county office of education revenue limits, and the revenue  
               limit portion of charter school operational funding.  Also  
               requires a preliminary allocation equal to 90% of the  
               estimated final allocation, with that estimate based on  
               2009-10 data, to be distributed no later than 14 days  


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               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  
               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  :  According to the Assembly Appropriations  
          Committee, this bill distributes $1.2 billion in federal  
          Education Jobs Act funding to LEAs.  Of this amount, $128,000 is  
          allocated to OPR to perform oversight duties regarding these  
          federal funds and $1.5 million is allocated to SDE for  
          administrative purposes.

           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  


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          allocated to LEAs based on a state's primary funding formula as  
          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 reserve.  

          The $10 billion in education funding will be allocated to the  
          states proportional to state population; California has received  
          an award 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.  On August 27, 2010, the  
          USDOE awarded Education Jobs Act funding to California in the  
          amount of $1.2 billion.  

          The purpose of this bill is to appropriate these federal funds  
          and provide the appropriate state entity with the expenditure  
          authority necessary for the allocation of these funds to LEAs at  
          the earliest time possible.  This bill distributes these funds  
          to LEAs (including charter schools) in an amount proportional to  
          each LEA's revenue limit (general purpose) funding in the  
          2010-11 FY.

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

                                                               FN:  0006839


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