BILL ANALYSIS                                                                                                                                                                                                    


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                                 THIRD READING

          Bill No:  AB 114
          Author:   Assembly Budget Committee
          Amended:  6/14/11 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 6/14/11 make education-related 
          statutory revisions consistent with the 2011-12 budget 

           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 


                                                                AB 114

             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 

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes   
          Local:  Yes


                                                                AB 114

          CPM:do  6/15/11   Senate Floor Analyses 


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