BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 114|
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THIRD READING
Bill No: AB 114
Author: Assembly Budget Committee
Amended: 6/28/11 in Senate
Vote: 21
PRIOR VOTES 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 6/28/11 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. Proposition 98 Calculations - Dedication of State Sales
Taxes for Local Realignment . Changes the calculation of
General Fund revenues for purposes of Proposition 98 to
reflect the dedication of specific state sales tax
revenues to local realignment pursuant to the 2011-12
Budget package. These provisions are operative
CONTINUED
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beginning in 2011-12 only if (1) these changes are
authorized via ballot measures prior to November 17,
2012 and (2) provide funding for K-12 schools and
community colleges equal to the amount that would have
otherwise been provided if specified sales tax revenues
were General Fund. If these conditions are not met,
funds that would have been provided to Proposition 98 in
2011-12 prior to this shift, are calculated and will be
repaid, to K-12 schools and community colleges over a
five year period.
2. Limits District Ability to Re-Open Layoffs in 2011-12 .
Makes inoperative, in 2011-12, provisions of existing
law that allow school districts to terminate employees
for the period following budget passage through August
15th , if per pupil revenue limit funds do not increase
by at least two percent.
3. Fiscal Oversight Standards Eased . Limits the current
authority of county offices of education to provide
fiscal oversight by reducing existing requirements
governing the approval of school district budgets for
the 2011-12 fiscal year.
4. Trigger Reductions - Instructional Days . Requires local
education agencies to reduce the minimum instructional
days and minutes by up to seven additional days - beyond
the five days currently authorized - in order to achieve
savings if state revenues are not sufficient in 2011-12.
Consistent with Control Section 3.94 of the 2011-12
Budget Bill, this reduction becomes effective February
1, 2012, if state revenues are predicted to drop below
$86.5 billion per the December 15, 2011 forecast. If
triggered, this reduction will generate approximately
$1.5 billion in Proposition 98 savings in 2011-12. The
amount of the reduction will be "scaled" in proportion
to the General Fund shortfall.
5. Redirection of County Office Savings . Redirects
previously approved county office of education property
tax balances that are currently restricted, to offset up
to $50 million in state General Fund costs for trial
courts in in 2011-12.
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Child Care and Development
1. Trigger Reductions - Child Care . If triggered,
approves an across- the-board reduction to all child
care programs of $23 million in General Fund and
Proposition 98 savings in 2011-12. Pursuant to Control
Section 3.94 of the 2011-12 Budget Bill, this child care
reduction will become effective January 1, 2012, if
state revenues are predicted to drop below $87.5 billion
per the December 15, 2011 forecast.
2. Child Care Funding Shift and Rebenching . Makes
statutory changes that conform to the appropriation of
state General Funds - instead of Proposition 98 funds
previously provided - for most child care programs in
the 2011-12 Budget Bill. Proposition 98 funding will be
"rebenched" as a result of this funding shift. The
Budget Bill continues Proposition 98 funding for
part-day preschool programs in 2011-12.
Higher Education
1. Trigger Reductions - Community College Fee Increase .
Provides a $10 per unit student fee increase -- from $36
per unit to $46 per unit -- commencing in the winter
term of the 2011-12 academic year. Pursuant to Control
Section 3.94 of 2011-12 Budget Bill, this fee increase
will become effective January 1, 2012, if state revenues
are predicted to drop below $87.5 billion per the
December 15, 2011 forecast. If triggered, this fee
increase will generate approximately $30 million in
Proposition 98 savings in 2011-12.
2. Removes UC Deferral . Eliminates language to defer the
University of California June 2012 General Fund
allocation until August 2012.
3. Amends CSU Audits . Adds language to eliminate
duplicative audits required biennially at each of the 23
California State University campuses.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: Yes
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CPM:do 6/28/11 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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