BILL ANALYSIS                                                                                                                                                                                                    



                                                                      



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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 
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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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