BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           847 (Steinberg)
          
          Hearing Date:  08/31/2010           Amended: 08/30/2010
          Consultant:  Dan Troy           Policy Vote: NA
          _________________________________________________________________ 
          ____
          BILL SUMMARY:   SB 847, an urgency measure, would appropriate  
          over $1.2 billion in federal funds available to the state under  
          the recently enacted federal Education and Medicaid Assistance  
          Jobs Act.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
                                                                  
          Education Jobs Act                   $1,201,535                 
          Federal
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the  
          Suspense File.
          
          The federal government recently enacted the Education Jobs and  
          Medicaid Assistance Act of 2010 (Act), Public Law 111-226,  
          which, in relevant part, appropriates$10 billion nationwide to  
          support education jobs.  Per formula, California's share of that  
          funding is $1,201,534,585.

          This bill would:

                 Make $128,000 available to the Office Planning and  
               Research to oversee the expenditure of the federal dollars.
                 Make $1,500,000 available to the Department of Education  
               for administrative purposes related to implementing the  
               Act.
                 Allocate $1,199,906,585 to local education agencies in  
               an amount calculated to be an equal proportion of the  
               amount calculated for the 2010-11 fiscal year for 1) total  
               school district revenue limits, 2) total county office of  
               education revenue limits, and the 3) the revenue limit  
               portion of charter school operational funding, as  










               appropriate. 
                 Distribute a preliminary allocation equal to 90 percent  
               of 2009-10 funding to be made within 14 days of the  
               effective date of this bill or notification to the state of  
               a federal funding award, whichever is later.

          The bill further specifies that funds received by local  
          education agencies must be expended in a manner consistent with  
          the requirements of the Act and any relevant federal regulations  
          and guidance.  These requirements, as detailed in the bill,  
          include compensation, benefits, and other expenses, including  
          support services, that are 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.  The bill further allows local  
          education agencies to use these funds through September 30,  
          2012.  
          Page 2
          SB 847 (Steinberg)

          The Education Jobs and Medicaid Assistance Act was signed into  
          law on August 10, 2010.  The Act 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 Act requires that the  
          education funds provided to the states be spent by LEAs to  
          prevent teacher layoffs, 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 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 U.S. Department of Education (USDOE) estimates that this  
          funding will save approximately 16,500 teacher jobs in  
          California.  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.  Passage of this urgency measure would provide immediate  
          relief to local education agency budgets.