BILL ANALYSIS Ó AB 18 Page 1 Date of Hearing: May 4, 2011 ASSEMBLY COMMITTEE ON EDUCATION Julia Brownley, Chair AB 18 (Brownley) - As Amended: April 27, 2011 SUBJECT : School-based financial reporting system SUMMARY : Restructures, commencing in the 2015-16 fiscal year, California's system for allocating state funding for public schools. Specifically, this bill : 1)Makes legislative findings and declarations related to: a) The complexity, illogic, and lack of transparency in California's current education finance system. b) The lack of flexibility, high compliance costs, and revenue inequities facing California schools and districts. c) The lack of data, effective data systems, and ability to use such data - all of which are shown by research to be important to successful schools and districts. d) The specific lack of information on and understanding of how money is allocated to schools within any school district. e) The lawsuits, currently faced by California, which claim that the state's system for funding public education is deficient. 2)States legislative intent to implement comprehensive school finance reform that: a) Builds on previous research, supports student achievement and provides appropriate incentives. b) Establishes simpler allocation formulas that provide base funding along with an amount that is tied to the specific needs of pupils. c) Improves rationality and equity in the system, so that all pupils are prepared for college, career, and citizenship. d) Supports accountability and local flexibility through improved fiscal transparency and reporting, and supports ongoing improvement and reform. e) Holds local education agencies harmless by transitioning to the new system as new funds become available. AB 18 Page 2 3)Consolidates, commencing in the 2015-16 fiscal year, the funding for 25 existing revenue limit add-ons and categorical programs (see Table 1 in the Comment section of this analysis for additional detail) into school district Total Revenue Limits as base funding, and provides this funding on the basis of average daily attendance (ADA). 4)Consolidates, commencing in the 2015-16 fiscal year, the funding for eight existing categorical programs (see Table 2 in the Comment section of this analysis for additional detail) into a new Targeted Pupil Equity Grant for the purpose of creating weighted pupil funding, and provides this funding to school districts and charter schools on the basis of the number of English learner and economically disadvantage pupils. 5)Requires that school districts and charter schools use funding received in the Targeted Pupil Equity Grant as a supplement to funds otherwise provided for English learners and low-income pupils, and for any educational purpose that provides instruction or support services, with the goal of improving the academic performance or workforce preparation, to those pupils. 6)Consolidates, commencing in the 2015-16 fiscal year, the funding for nine existing categorical programs (see Table 3 in the Comment section of this analysis for additional detail) into a new Quality Instruction Grant as a restricted portion of base funding, and provides this funding to school districts and charter schools on the basis of ADA. 7)Requires, unless otherwise prohibited under federal law or specified in these provisions, school districts and charter schools to use funding received in the Quality Instruction Grant, for any of the following purposes: a) To reduce class sizes. b) To provide professional development training to teachers, administrators, and staff on any of the following areas: i) The state common core content standards adopted by the State Board of Education (SBE). ii) The curriculum frameworks adopted by the SBE. iii) The English language development standards adopted by the SBE. AB 18 Page 3 c) To provide leadership coaching and individualized support to school site staff and administrators in order to support staff in becoming instructional leaders and administrators. d) To provide teacher, administrator, and staff mentoring or coaching in order to support beginning teachers with the goal of increasing academic achievement. e) To establish teacher recruitment programs that provide professional development assistance to paraprofessionals in order for them to obtain a teaching credential. f) To establish intern programs to provide an alternative route for individuals to obtain a teaching credential. g) To provide support for beginning teacher support and assessment. 8)States legislative intent to: a) Provide an inflation adjustment and an equalization adjustment to the per pupil amount calculated for the Targeted Pupil Equity Grant and the Quality Instruction Grant in any fiscal year in which funds are available. b) Use the augmentation to Total Revenue Limits in 3) above, in conjunction with other base funding provided to school districts, for any educational purpose necessary to maintain and improve the educational services provided to all pupils in the district. c) Use the Targeted Pupil Equity Grant, in conjunction with funding provided to school districts and charter schools for all pupils, to appropriately weight educational funding so as to provide additional resources for the instruction of English learners and low-income pupils and to enable school districts and charter schools to direct resources toward improving the academic performance of those pupils. d) Use the Quality Instruction Grant, in conjunction with other base funding provided to school districts and charter schools, to maintain and improve high quality instruction in all classrooms and to enable school districts and charter schools to direct resources toward improving the academic performance of all pupils by supporting teaching and instructional leadership. 9)Specifies that nothing in these funding provisions authorizes a school district, which receives funding on behalf of a dependent charter school, to redirect this funding for another purpose unless otherwise authorized. AB 18 Page 4 10)Requires the Superintendent of Public Instruction (SPI) to study and report on: a) Modifications to the standardized account code structure (SACS) to provide school-level reports on revenue and expenditures so as to facilitate easy comparisons across schools and districts, including comparisons of school, district, and statewide demographics and academic performance, and data on program-level expenditures. b) An evaluation mechanism to facilitate continuous improvement, maximum transparency, and accountability of the primary funding structures, as well as a consistent process to evaluate the effectiveness of any specific programs that are funded separately. 11)Requires the Superintendent to present the findings and recommendations from the study in 10) above to the Legislature and the Governor on or before December 1, 2012. EXISTING LAW : 1)Provides for revenue limit funding for school districts that is based on a per pupil base revenue limit multiplied by average daily attendance (ADA) reported by each district in the last attendance report of the fiscal year, for the current or prior fiscal year, whichever is greater. 2)Defines base revenue limit for any school district to be equal to the prior year amount adjusted to account for cost-of-living increases and any other adjustment specified by statute (e.g., adjustment implementing revenue limit equalization by increasing the base revenue limit for some set of low revenue limit districts). 3)Adjusts revenue limit funding further by making adjustments, as specified in statute, for individual programs or district characteristics; these adjustments are collectively referred to as revenue limit add-ons. 4)Establishes and funds categorical programs that focus resources and/or compliance requirements on specific classes of students or schools, or on specific uses of funds, identified by the Legislature as priorities. AB 18 Page 5 5)Consolidates a number of historical categorical programs into a smaller set of block grants, where a block grant gives funding recipients the flexibility to spend the funds across any of the previously individual programs consolidated into that block grant. 6)Allows for limited transfers of funds between specific categorical programs. 7)Provides for temporary flexibility to spend the funds appropriated for most categorical programs in order to relieve local budget pressure created by the current economic downturn. 8)Requires that each school district produce an annual school accountability report card for each school in the district, including various specific data elements describing the school and its condition. 9)Requires the development of the California Longitudinal Pupil Achievement Data System, and authorizes the use of SACS, developed by the California Department of Education, to account for revenues and expenditures. FISCAL EFFECT : Unknown COMMENTS : The "Getting Down to Facts" studies published in 2007 described California's education finance system as a "complex and irrational finance system", where the funding available to each school district is largely related to funding in the 1970s (revenue limit funding) combined with a complex system of categorical grant programs. The studies suggested that under this system, similar districts receive substantially different revenues per pupil, and differences in student needs, based on demographic or learning characteristics, across districts are not reflected in funding levels. Also, the administrative burdens imposed on both state and local education agencies by such a complex system of funding and associated compliance requirements is both substantial and costly. In addition, the studies point out that the current finance structure was put in place before the advent of the current state and federal accountability systems, and has never been updated to align with those systems; this means that the current funding and related compliance system tracks inputs in the production of education services, while the accountability systems focus on outcomes. AB 18 Page 6 If the focus is now on holding school districts responsible for outcomes, the question clearly arises concerning why the state would continue to focus and restrict funding and compliance based on inputs. Though the current categorical flexibility granted through the budget process alleviates some of this problem, that flexibility is a medium-term fix granted to help local educational agencies remain solvent amidst large recession-related budget cuts and is scheduled to end following the 2014-15 fiscal year. The "Getting Down to Facts" studies also recommended areas that warrant the focus of policy makers. These areas include the "relaxation of state regulations and restrictions on categorical funds in order to allow greater local flexibility for resource allocation, including the flexibility to make more effective use of instructional time and possible expansion of that time especially in schools with high concentration of disadvantaged students, and the simplification and rationalization of school finance formulas to promote better strategic planning for the best use of resources by local school officials." Clearly these two recommendations could be served by a school finance reform proposal that consolidates categorical funding programs, allocates that funding in a manner that accounts for differences in student need, and relies on increases in funding that will occur in the future to fuel the transition to the new system. The "Getting Down to Facts" studies implicitly provided broad suggestions for how the system could be changed. Many of those broad suggestions were further debated and developed into more concrete policy proposals by the Governor's Committee on Education Excellence and in subsequent research. Individual researchers (e.g., Bersin, Kirst and Liu), including those at the Public Policy Institute of California (Sonstelie, Rose, Weston, et al), have gone further in terms of developing more specific proposals for education finance reform or developing tools that can be used to analyze such proposals. At least four different types of proposals for school finance reform have been discussed in this research and/or enacted by the Legislature over the last five Legislative Sessions. Funding Flexibility simply converts categorical funds (i.e., restricted accounts) into discretionary or unrestricted funding, allowing school districts freedom in making expenditures. The obvious example of this approach is the current budget AB 18 Page 7 flexibility provided for approximately 40 categorical programs, where a set of previously restricted funding streams is now provided as a single allocation of unrestricted funds. On a smaller scale, actions taken to allow specific carryover balances of restricted accounts to be available for expenditure in a discretionary manner has also provided additional flexibility. As a long-term proposal, funding flexibility suffers from its lack of connection to the state's funding priorities, and may mean (as has been the case in some school districts since the implementation of the current flexibility provisions) that programs traditionally offered in individual school districts are dramatically cut or closed as a result of local governing board decisions. However, this result may also be seen in a beneficial light, in that flexibility allows local decision makers the ability to tailor resource use to fit local needs. Pupil-Weighted Funding has been discussed widely and positively by the Getting Down to Facts project, the Governor's Committee on Education Excellence, previous and subsequent researchers, and this Committee's School Finance Working Group convened during the 2006 legislative year. The primary attraction to this model is that funds are targeted at specific pupils on the basis of need. For example, most would agree that a English learner student requires additional educational services and is more costly to educate than a non-English learner student, all else being the same; under a pupil-weighted approach a school district would receive a larger allocation related to that English learner student than it would for a non- English learner student. A district would still receive some base amount equal to that received for every other student, plus an augmentation related to those English learner needs. Other need-related characteristics would be treated similarly, and the total amount of funding going to a given district would be the sum of the amounts provided on the basis of each of its individual students. The phrase "pupil-weighted" comes from the augmentations for these characteristics; the English learner student would receive the base amount increased by some legislatively determined weight (e.g., 1.05, 1.1) to reflect the costs due to that students extra need and cost. Many states use some variant of this approach to distribute funds to districts based on the number and types of students in attendance. This is an attractive funding model in that it matches revenue to need. One criticism of this approach is that it leaves the question of expenditure restrictions unanswered; in other words, AB 18 Page 8 this model allocates funds, but does not necessarily restrict the expenditure of those funds to the targeted pupils. That shortcoming, however, is easily eliminated by specifying restrictions on the expenditure of the funds. Clustered Block Grants were enacted by the legislature in 2004. Under this approach the funds allocated for categorical programs focusing on a similar sub-population or on similar activities are clustered together to create one larger grant, however, the individual programs are still retained within the single grant. In other words the revenue is consolidated and some flexibility is given on the expenditure side, but that flexibility is limited to expending the consolidated funds only on the programs that exist within the cluster. An example of this was created by AB 825 (Firebaugh), Chapter 871, Statutes of 2004, in the form of the School Safety Block Grant that allowed the consolidated funds to be spent on 6 previously existing school safety programs. This approach reduces administrative burdens on districts, increases transparency and maintains the spending priorities of the Legislature, but it does not provide the level of flexibility that would be necessary to allow LEAs to create educational programs that match the needs of their student populations, unless those needs happen to match the programs previously created and now clustered by the state. True Block Grants go an additional step beyond the clustered approach, and provide an effective way to distribute state funds for activities where the state seeks some broad restriction on the use of funds, but where increased flexibility, transparency, and fairness are desired. In a true block grant, the funding for broadly similar programs is bound together as a single funding source, and expenditure of those funds would be allowed on a broadly defined, but related, set of activities. For example, the School Safety Block Grant created by AB 825 allowed the consolidated funds to be spent on 6 previously existing school safety programs, but in a true school safety block grant those funds could be expended on school safety very broadly defined and thus would place greater discretion in the hands of the governing board of each school district. According to the author, "AB 18 is a vehicle for comprehensively reforming the state's public school finance system. The first step in this reform process is to simplify the number of funding streams provided to school districts and to provide continuing flexibility in the expenditure of those funds." In implementing AB 18 Page 9 this simplification, this bill employs three of the four approaches discussed above. This bill, commencing at the end of the current budget flexibility provisions, treats current categorical funding streams in one of four ways: 1) Categorical funding and current revenue limit add-ons that are provided in a broad-based manner for programs and that are part of the base educational or operational program of the district (see Table 1) are consolidated into an add-on to revenue limit funding for school districts and thus provided on a per ADA basis; this funding becomes discretionary for the school district and provides a greater level of base funding. This Funding Flexibility approach consolidates 25 existing revenue limit add-ons and categorical programs, totaling approximately $3 billion in funding in 2010-11, and provides expenditure flexibility to school districts. 2) Categorical funding currently targeted to English learner or economically disadvantaged pupils (see Table 2) is provided to school districts and charter schools in the Targeted Pupil Equity Grant, and is provided on the basis of the number of EL and economically disadvantaged pupils; this funding is required to be expended on services to support learning and improved academic performance for those students. The bill states Legislative intent to provide for future cost of living and equalization adjustments to this funding, as funds are available in future years, and establishes this grant as the weighted targeted funding in what can be viewed as a Pupil-Weighted Funding approach. Funding provided in this grant, approximately $2.3 billion in 2010-11, comes from eight current categorical programs. 3) Categorical funding currently provided for class-size reduction and staff professional development (see Table 3) is consolidated into the Quality Instruction Grant and is provided on the basis of ADA; this funding is required to be expended on class-size reduction, professional development, or in support of leadership coaching and individualized support, teacher/administrator/staff mentoring or coaching, teacher recruitment programs, intern programs, or support and assessment for beginning teachers. AB 18 Page 10 The bill states Legislative intent to provide for future cost of living and equalization adjustments to this funding, as funds are available in future years. This True Block Grant consolidates nine existing categorical programs, totaling approximately $1.4 billion in funding in 2010-11, and provides expenditure flexibility within a broadly defined restriction. 4) This bill also leaves some funding streams outside of the proposal. Primarily this includes funding for special education, funding that has interactions with federal or other state programs or funding sources, funding for programs operated by entities outside of the traditional educational system (e.g., Indian Education Centers), funding for county offices of education, funding for career technical education, and funding for capital purchases. Historical discussions concerning the transition from one school funding model to another have generally focused on making the change in one step, while sorting out those winners that gain funding and those losers that receive less funding; that traditional approach then either holds the losers harmless or simply lets the losers suffer from the loss of funds. The former result is often, and certainly would currently be, prohibitively expensive, and the latter approach is particularly unattractive when, as research indicates is the current case, all California school districts are dramatically under-funded. Thus these traditional approaches would either count on funds that the state does not now have, or takes funding away from under-funded school districts to give to other school districts in a zero sum game. According to the author, "AB 18 provides a transition over time by allowing the Legislature to direct funding toward increasing the weight given to the targeted funding, or providing COLA or equalization to any of the funding pieces, as new funding becomes available. In this way districts will continue to receive their pre-transition levels of funding and no district would lose funding as a result of the move to the new system." This proposal, since it enacts changes commencing in the 2015-16 fiscal year, would also serve to eliminate the uncertainty that school districts are facing with respect to the lack of an exit strategy from the current budget flexibility provisions. At this point in time, budget planning at the local level beyond 2014-15 is impossible in that it is unknown whether some AB 18 Page 11 flexibility provisions will continue or whether categorical funding will return to its pre-flexibility state. Enactment of this proposal would constitute something of a compromise between continuing full flexibility and full return to restricted categorical funding. The author describes this version of the bill as a "first step." As the bill moves forward, Committee staff recommends that the author consider a number of unanswered questions, including: 1)What happens to the statutory requirements and restrictions on current categorical programs? 2)How is charter school funding treated? 3)How is the weighting of the Targeted Pupil Equity Grant ultimately determined? 4)Are there any unwanted incentives created by the transition to this funding model? The tables below provide more detail on how the school finance reform proposal in this bill treats various funding streams. ---------------------------------------------------------------- |Table 1 - Funding Added to Total Revenue Limits or Base Funding | ---------------------------------------------------------------- |------------+---------------------------------------------------| |Budget Item |Program | |------------+---------------------------------------------------| | |Unemployment Insurance RL Add-on - 15 year avg. | |------------+---------------------------------------------------| | |PERS Adjustment Add-on - 15 year avg. | |------------+---------------------------------------------------| |6110-108-000|Supplemental School Counseling Program | |1 | | |------------+---------------------------------------------------| |6110-111-000|Home to School Transportation (except Special Ed) | |1 | | |------------+---------------------------------------------------| |6110-122-000|Specialized Secondary Program Grants | |1 | | |------------+---------------------------------------------------| |6110-124-000|Gifted and Talented Program | |1 | | |------------+---------------------------------------------------| |6110-181-000|Educational Technology - CTAP | |1 | | AB 18 Page 12 |------------+---------------------------------------------------| |6110-187-000|Emergency Repair Program | |1 | | |------------+---------------------------------------------------| |6110-188-000|Deferred Maintenance | |1 | | |------------+---------------------------------------------------| |6110-189-000|Instructional Materials Block Grant | |1 | | |------------+---------------------------------------------------| |6110-190-000|Community Day Schools | |1 | | |------------+---------------------------------------------------| |6110-195-000|National Board Certification Incentives (excluding | |1 |funds for prior awards) | |------------+---------------------------------------------------| |6110-198-000|California School Age Families Education (CalSAFE) | |1 | | |------------+---------------------------------------------------| |6110-204-000|California High School Exit Exam-Instructional | |1 |Support and Services | |------------+---------------------------------------------------| |6110-208-000|Civic Education | |1 | | |------------+---------------------------------------------------| |6110-209-000|Teacher Dismissal Apportionment | |1 | | |------------+---------------------------------------------------| |6110-228-000|School Safety Block Grant (8-12) | |1 | | |------------+---------------------------------------------------| |6110-232-000|Class Size Reduction (9th Grade) | |1 | | |------------+---------------------------------------------------| |6110-240-000|Advanced Placement and International Baccalaureate | |1 |Programs | |------------+---------------------------------------------------| |6110-243-000|Pupil Retention Block Grant | |1 | | |------------+---------------------------------------------------| |6110-247-000|School and Library Improvement Block Grant | |1 | | |------------+---------------------------------------------------| |6110-248-000|School Safety Consolidated Competitive Grants | |1 | | AB 18 Page 13 |------------+---------------------------------------------------| |6110-265-000|Arts and Music Block Grant | |1 | | |------------+---------------------------------------------------| |6110-268-000|Child Oral Health Assessments | |1 | | |------------+---------------------------------------------------| |6110-156-000|Adult Education - Schedule (1) | |1 | | ---------------------------------------------------------------- ---------------------------------------------------------------- | Table 2 - Funding added to the Targeted Pupil Equity Grant | ---------------------------------------------------------------- |------------+---------------------------------------------------| |Budget Item |Program | |------------+---------------------------------------------------| |6110-104-000|Supplemental Instruction (Summer School) | |1 | | |------------+---------------------------------------------------| |6110-128-000|Economic Impact Aid | |1 | | |------------+---------------------------------------------------| |6110-150-000|American Indian Early Childhood Education Centers | |1 | | |------------+---------------------------------------------------| |6110-156-000|Adult Education Schedule (2) & (3) | |1 | | |------------+---------------------------------------------------| |6110-211-000|Charter School Categorical Block Grant | |1 |(proportional to T programs) | |------------+---------------------------------------------------| |6110-212-000|New School Categorical Funding (proportional to T | |1 |programs) | |------------+---------------------------------------------------| |6110-227-000|Community-Based English Tutoring Program | |1 | | |------------+---------------------------------------------------| |6110-246-000|Targeted Instructional Improvement Block Grant | |1 | | ---------------------------------------------------------------- ---------------------------------------------------------------- | Table 3 - Funding added to the Quality Instruction Grant | ---------------------------------------------------------------- AB 18 Page 14 |------------+---------------------------------------------------| |Budget Item |Program | |------------+---------------------------------------------------| |6110-137-000|Mathematics and Reading Professional Development | |1 |Program | |------------+---------------------------------------------------| |6110-144-000|Administrator Training Program | |1 | | |------------+---------------------------------------------------| |6110-193-000|Bilingual Teacher Training Assistance Program - | |1 |Schedule (1) | |------------+---------------------------------------------------| |6110-193-000|Teacher Peer Review - Schedule (2) | |1 | | |------------+---------------------------------------------------| |6110-234-000|Class Size Reduction (K-3) | |1 | | |------------+---------------------------------------------------| |6110-244-000|Teacher Credentialing Block Grant | |1 | | |------------+---------------------------------------------------| |6110-245-000|Professional Development Block Grant | |1 | | |------------+---------------------------------------------------| |6110-260-000|Physical Education Teacher Incentive Grants | |1 | | |------------+---------------------------------------------------| |6110-267-000|Certificated Staff Mentoring | |1 | | ---------------------------------------------------------------- This bill also requires the SPI to make recommendations for the modification of the state's existing fiscal systems to support more comprehensive school-level financial reporting. There are clear benefits to school-level fiscal reporting - many related to increased transparency and sensitivity to possible intra-district funding and service inequities. In addition, school-level financial data reveals the effectiveness of expenditures at the intended point of impact - the school and classroom. School-level financial information would serve a variety of audiences, including the general public, education researchers, school administrators, other district and school employees (e.g., program coordinators, classroom teachers or non-instructional employees), local governing boards, the Legislature, and investors and creditors (e.g., bondholders and AB 18 Page 15 prospective bondholders, commercial banks, other creditors, vendors). According to a report from the National Center for Educational Statistics, by 2001, 44 states had begun regulating the financial reporting of school districts. Of these, 20 states had mandated some type of school-level financial or budget reporting. There are also numerous technical, administrative, accounting, and information technology issues that would have to be addressed by the SPI's recommendations before the Legislature could act on those recommendations. The state's SACS provides all California school districts with a uniform and comprehensive system of accounts that districts are required to use to categorize each revenue and expenditure. SACS, along with guidance in California School Accounting Manual and from the Governmental Accounting Standards Board, form the basis for school district accounting and financial reporting in California. Within SACS, school-level data can be added to the district's financial analyses; however, districts currently have flexibility in the extent to and manner in which they use the system to reflect school-level information. Since school districts have different levels of interest and expertise in terms of going beyond what is required in SACS and district financial reports, there may be a loss in uniformity in those school-level reports if compared across districts. According to the author, "A simpler and more transparent system is needed in order to support accountability for increased success for all students. One step toward improving the transparency of the current system is to implement school-level reports on revenue and expenditures to facilitate easy comparisons across schools and districts, including comparisons of school, district, and statewide demographics and academic performance, and data on program-level expenditures." Previous legislation : AB 2335 (Brownley), held in the Senate Rules Committee in 2010, would have required the SPI to make recommendations on modifying the format and requirements on school district accounting in order to support school-level financial reporting. AB 8 (Brownley), vetoed by the Governor in 2009, would have convened a working group to make findings and recommendations regarding the restructuring of California's education finance system, including changes necessary to support school-level financial reporting. AB 2159 (Brownley), held in the Senate Rules Committee in 2008, would have established a AB 18 Page 16 commission to develop a plan for reforming the school finance system. AB 851 (Brownley), Chapter 374, Statutes of 2009, consolidates four revenue limit add-ons into two fixed adjustments to be included in each district's total revenue limit funding, commencing with the 2010-11 fiscal year. AB 599 (Mullin), vetoed in 2008, was substantially similar to AB 851, except that it also included longer day-longer year incentive funding in the fixed adjustment that receives the annual COLA. AB 60 (Coto), held in the Assembly Appropriations Committee in 2009, proposed a study of the weights that would be necessary to implement a weighted-student funding approach. AB 2394 (Coto), held in the Assembly Appropriations Committee in 2008, was substantially similar to the current AB 60. AB 586 (Coto), held in the Assembly Appropriations Committee in 2008, would have stated Legislative intent to replace the funding mechanisms for kindergarten through twelfth grade education with a weighted student funding formula. AB 2890 (Duvall), failed in the Assembly Education Committee in 2008, and AB 2933 (Committee on Education), held in the Assembly Education Committee in 2008, would have consolidated numerous K-12 education categorical funding programs into several clustered categorical block grants effective beginning in the 2008-09 fiscal year. A number of additional bills have made proposals to reform or equalize revenue limits, or to consolidate categorical funding: AB 2531 (Mullin), vetoed in 2006; AB 60 (Nunez), held in the Assembly Appropriations Committee in 2005; SB 1510 (Alpert), held on the Assembly Floor in 2004; AB 2153 (Daucher), held in the Assembly Appropriations Committee in 2004. AB 825 (Firebaugh), Chapter 871, Statutes of 2004, places 26 historical categorical programs into six block grants. SB 512 (Committee on Education), Chapter 677, Statutes of 2005, changed the due date for annual financial reports from September 15 to October 15. AB 1578 (Migden), Chapter 299, Statutes of 1997, in Section 39, targeted funds to be used exclusively to develop and implement SACS. REGISTERED SUPPORT / OPPOSITION : Support American Civil Liberties Union (prior version) California State PTA (prior version) Children Now EdVoice Opposition AB 18 Page 17 None on File Analysis Prepared by : Gerald Shelton / ED. / (916) 319-2087