BILL ANALYSIS Ó
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THIRD READING
Bill No: AB 114
Author: Assembly Budget Committee
Amended: 6/9/11 in Senate
Vote: 21
PRIOR VOTE NOT RELEVANT
SUBJECT : Budget Act of 2011: education-related
statutory revisions
SOURCE : Author
DIGEST : This bill makes education-related statutory
revisions consistent with the 2011-12 Budget package.
Senate Floor Amendments of 6/9/11 delete the prior version
of the bill expressing the intent of the Legislature to
enact statutory changes relating to the 2011 Budget Act.
ANALYSIS : This bill makes the following statutory
revisions affecting K-12 education and higher education:
K-12 Education
1. Inter-Year Deferral Buydown - Ongoing and One-Time
Settle-Up Funding . Eliminates approximately $3 billion
in new and prior-year revenue limit and apportionment
deferrals, decreasing annual inter-year payment
deferrals to K-12 schools from $9.4 billion to $6.4
billion in 2011-12. As a part of this reduction, the
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buydown utilizes $663 million in one-time General Fund
payments scored in satisfaction of outstanding
Proposition 98 "settle-up" obligations.
2. Revenue Limit Reductions and Deficit Factor Adjustments .
Updates revenue limit deficit factors for school
district and county of education to reflect ongoing base
reductions and foregone cost-of-living adjustments for
K-12 revenue limit (general purpose) funding in 2011-12.
More specifically, establishes a school district
deficit factor of 19.754 percent and a county office of
education factor of 20.041 percent in 2011-12. Deficit
factors track lost revenue limit funding in recent years
with the intent of eventual restoration in future years.
3. Mental Health Services Shift for Students with
Disabilities . Amends and repeals various sections of
the Education, Government, and Welfare and Institutions
Code to repeal the state AB 3632 mandate program, which
mandated counties to provide mental health services to
students with disabilities. As a result of this
elimination, responsibility for educationally related
mental health services, as required by federal law for
student with disabilities, is shifted back to schools.
4. Growth Funding for New Charter Schools . Amends an
existing categorical funding formula to provide $127 per
pupil to new, non-conversion charter schools established
after 2008-09. This formula funding gives
non-conversion charters schools access to categorical
funds included in the categorical flexibility program
that began in 2008-09. Requires school districts to
pass through either $127 per pupil or another mutually
agreed upon amount in categorical funding to new
conversion charter schools.
5. Education Code Technical Cleanup . Renumbers Education
Code Section 60422.3 to Section 60049 to correct a
technical error in statute.
Child Care and Development
1. 11- and 12-Year Olds . Restores child care fully for 11-
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and 12-year olds for all hours of care. The March
budget package had restricted child care for the 11- and
12-year old children.
2. Family Fees . Reduces the family fee paid by state
subsidized child care recipients by ten percent. This
reduction brings the family fee back to January 1, 2011
level.
3. Across-the-Board Reduction . Reduces the
across-the-board reduction to child care programs from
15 percent to 11 percent.
4. Early Learning Advisory Council (ELAC) . Moves the ELAC
to the California Department of Education.
Higher Education
1. Community College Deferrals . Reduces the annual
California Community College (CCC) deferral from $961
million to $561 million.
2. Community College Mandates . Suspends two CCC mandates,
the Sexual Assault Response Procedures and Student
Records, both of which are already required by federal
law.
3. California State University (CSU) Audits . Eliminates
duplicative audits required biennially at each of the 23
CSU campuses and instead requires a system-wide audit.
4. California Student Aid Commission . Technical cleanup
language to the student loan default rate statute
included in the March budget package.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
CM:do 6/9/11 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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