BILL ANALYSIS                                                                                                                                                                                                    


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                                 THIRD READING

          Bill No:  AB 114
          Author:   Assembly Budget Committee
          Amended:  6/9/11 in Senate
          Vote:     21


           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 

          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 

          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 


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