BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   SB 847|
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                              UNFINISHED BUSINESS


          Bill No:  SB 847
          Author:   Steinberg (D)
          Amended:  8/26/10
          Vote:     27 - Urgency

           
           SENATE FLOOR  :  Not relevant  

          ASSEMBLY FLOOR  :  Not available 


           SUBJECT  :    Education finance

           SOURCE  :     Author


           DIGEST  :    This bill appropriates $1,201,534,585 from the  
          Federal Trust Fund to the Office of Planning and Research  
          for the 2010-11 fiscal year upon notification to the state  
          of a funding award pursuant to the federal Education Jobs  
          and Medicaid Assistance Act of 2010..

           Assembly Amendments  delete the Senate version of the bill  
          relating to the Budget Act of 2010 and replaced it with the  
          language relating to the appropriation of $1,201,534,585  
          from the Federal Trust Fund pursuant to the federal  
          Education Jobs and Medical Assistance Act of 2010.

           ANALYSIS  :    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  
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          entities, such as local education agencies.

          This bill:

          1.Creates an urgency statute that appropriates  
            $1,201,534,585 from the Federal Trust Fund to the Office  
            of Planning and Research for the 2010-11 fiscal year upon  
            notification to the state of a funding award pursuant to  
            the federal Education Jobs and Medicaid Assistance Act of  
            2010 (Education Jobs Act).

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

             A.    $1,199,906,585 to be allocated to local  
                educational agencies 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.

             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.Makes $128,000 available to the OPR for the purpose of  
            providing oversight of funds allocated to local  
            educational agencies.

          4.  Clarifies that local educational agencies 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  

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            related services.

          5.Authorizes any local educational agency 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.

           Comments

           On August 10, 2010, President Obama signed HR 1586 into  
          law, enacting the federal Education Jobs and Medicaid  
          Assistance Act of 2010 (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  
          local education agencies to prevent teacher layoffs in the  
          2010-11 school year, that the funding be allocated to local  
          education agencies based on a state's funding formula  
          specified in the state's State Fiscal Stabilization Fund  
          application or each districts' relative share of federal  
          Title I funds, that states show that they have met the  
          maintenance of effort provisions, and that this funding not  
          be used to supplant state education funding or provide a  
          funding service.

          The $10 billion in education funding will be allocated to  
          the state's proportional to state population; California  
          will receive an allocation over $1.2 billion.  The 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 pink slips in the  
          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  

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          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 local education agencies at the earliest time  
          possible.

          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  
          local educational agencies at the earliest time possible.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  8/30/10)

          California Federation of Teachers
          California School Employees Association
          California Teachers Association
          League of Women Voters of California
          Los Angeles Unified School District
          Santa Ana Unified School District
          Small School Districts Association
          United Teachers of Los Angeles

           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          this bill is needed to ensure that schools receive the $1.2  
          billion in federal Education Jobs Fund dollars as soon as  
          possible and can use them for their intended purpose - to  
          save or create education jobs in the coming 2010-11 school  
          year.  The author's office states that this bill is a  
          stand-alone bill and is not connected to the Budget Act or  
          the Proposition 98 funding level provided to K-12 schools.


          CPM:cm  8/30/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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