BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           1298 (Hancock)
          
          Hearing Date:  05/03/2010           Amended: 04/21/2010
          Consultant:  Dan Troy           Policy Vote: ED 5-3
          _________________________________________________________________ 
          ____
          BILL SUMMARY:   SB 1298 would allow a school district, for the  
          2011-12 and 2012-13 fiscal years, to withdraw from a regional  
          occupational center or program (ROCP) it jointly operates with  
          one or more districts only if it is determined by the State  
          Board of Education that the withdrawal will not negatively  
          impact pupils from the other participating district(s).  The  
          bill would also require that funds appropriated to districts for  
          ROCP participation be used in a specified manner.  This would  
          limit the flexibility of districts to use the funds for other  
          purposes, as provided in current law.  
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
           
          ROCP                   No new state cost, but a loss of local     
                   General*
                                 funding and programmatic flexibility

          *Counts toward meeting the Proposition 98 minimum funding  
          guarantee                       
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: 

          Current law provides for the delivery of career technical  
          education in a variety of manners including Regional  
          Occupational Centers and Programs (ROCP) which provide training  
          for students from multiple schools or districts.  Current law  
          also allows for two or more districts to establish a Joint  
          Powers Agency (JPA) for the operation of ROC/Ps.  

          Chapter 12 of the 3rd Extraordinary Session of 2009 (SBX3 4)  
          reduced funding for many K-12 categorical education programs.   
          SBX3 4 also provided districts, through the 2012-13 fiscal year,  










          with varying levels of flexibility over the use of funding for  
          these programs to help local districts manage their budgets in  
          ways that would help mitigate the impact of the funding  
          reductions.  ROCPs are among the group of categorical programs  
          for which districts have complete flexibility over the use of  
          funding.  In other words, a local district may take funding  
          received through the Budget Act for ROCPs and expend those funds  
          for any educational purpose of the district.  

          This bill would, for the 2011-12 and 2012-13 fiscal years,  
          prohibit districts from withdrawing from JPAs that operate ROCPs  
          unless the State Board of Education (SBE) determines that a  
          district's withdrawal would not negatively impact the career  
          technical education services offered by that ROCP to pupils of  
          other districts or charter schools in the region.  Also, the  
          bill would require funding received for ROCPs to be expended in  
          accordance with the regional plan for occupational course  
          sequences.

          Page 2
          SB 1298 (Hancock)

          While this bill does not create any new state costs - districts  
          will receive the same funding as they would absent the bill - it  
          does, for the 2011-12 and 2012-13 fiscal years, restrict the  
          flexibility provided through SBX3 4.  A district that desired to  
          shift funds from this program to stabilize other programs, to  
          provide career technical education in a more efficient manner  
          locally, or simply to meet payroll, would only be allowed to do  
          so if the SBE determined that services offered to pupils in  
          other districts would not be impacted.  

          The author's office has indicated that this program merits  
          removal from the blanket district flexibility provisions of SBX3  
          4 as ROCP/JPAs are regional entities and that one district's  
          flexibility should not impact another's program.  It is  
          possible, though, that removing one program from the flexibility  
          package will create pressure to remove others and ultimately  
          limit the options districts have to manage scarce resources.