BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 114| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 114 Author: Assembly Budget Committee Amended: 6/14/11 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 6/14/11 make education-related statutory revisions consistent with the 2011-12 budget package. ANALYSIS : This bill makes the following statutory revisions affecting K-12 education and higher education: K-12 Education 1. Elimination of K-12 Inter-Year Deferral Buydown. . Eliminates a total of $3 billion to buydown (reduce) inter-year payment deferrals for K-12 schools in 2011-12. (Of the $3.0 billion eliminated, $663 million is Proposition 98 "settle-up" funds and $2.347 billion is ongoing Proposition 98 funds.) This action will CONTINUED AB 114 Page 2 continue all existing inter-year payment deferrals in 2011-12, as well as, a new $2.1 billion payment deferral enacted by the March package. Altogether, inter-year payment deferrals for K-12 schools will total approximately $9.4 billion in 2011-12. 2. General Fund Savings from County Offices of Education . Utilizes surplus county office of education property tax balances that are currently restricted, and cannot be expended for any purpose, to offset other programs thereby reducing state General Fund costs by up to $50 million in 2011-12. 3. Technical Changes . Makes a number of technical changes that clarify language related to the provision of educationally related mental health services for students with disabilities. Child Care and Development 1. Early Learning Advisory Council (ELAC) . Removes language related to moving the Early Learning Advisory Council to the Department of Education. Higher Education 1. Eliminates Buydown of Community College Deferrals . Eliminates language related to reducing the annual California Community College (CCC) deferral, thus maintaining the deferral level of $961 million. 2. Increases University of California (UC) Deferral . Defers the UC June 2012 General Fund allocation until August 2012. 3. Maintains all California State University (CSU) Audits . Removes language related to eliminating duplicative audits required biennially at each of the 23 CSU campuses. FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes Local: Yes AB 114 Page 3 CPM:do 6/15/11 Senate Floor Analyses SUPPORT/OPPOSITION: NONE RECEIVED **** END ****