BILL ANALYSIS Ó
AB 114
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 114 (Budget Committee)
As Amended June 28, 2011
Majority vote. Budget Bill Appropriation Takes Effect
Immediately
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|ASSEMBLY: | |(February 22, |SENATE: |23-16|(June 28, |
| | |2011) | | |2011) |
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(vote not relevant)
SUMMARY : Contains necessary statutory and technical changes in
the area of education in order to implement changes to the
Budget Act of 2011.
The Senate amendments delete the Assembly version of this bill,
and instead:
K-12 Provisions:
1)Update 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% and a
county office of education factor of 20.041% in 2011-12.
Deficit factors track lost revenue limit funding in recent
years with the intent of eventual restoration in future years.
2)Amend 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.
This mandate was suspended due to the veto of funding for the
AB 3632 mandate in the 2010-11 budget by Governor
Schwarzenegger. As a result of this elimination,
responsibility for educationally related mental health
services, as required by federal law for student with
disabilities, is permanently shifted to schools. Pursuant to
federal law, local educational agencies are required to update
the Individualized Education Plan of each child that will
experience a change in services as a result of this shift of
responsibility.
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3)Amend 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.
4)Dedicate surplus county office of education property tax
balances that are currently restricted, and cannot be expended
for any purpose, to other education programs thereby reducing
state General Fund costs.
5)Renumber Education Code Section 60422.3 to Section 60049 to
correct a technical error in statute.
6)Requires, for the 2011-12 fiscal year (FY) only, local
educational agencies (LEAs), for the purposes AB 1200 budget
certification, to project the same level of revenue limit
funding it received in the 2010-11 FY and maintain staffing
and program levels commensurate with this funding level. For
the 2011-12 FY only, eliminates the requirement for an LEA to
demonstrate that it can meet its financial obligations for two
subsequent FYs.
Ballot Proposition 98 and Realignment Language:
7)Deem specified revenue collected in the 2011-12 fiscal year as
"non General Fund (GF)" revenue for the purposes of
calculating the Proposition 98 funding formula. Specifies
this section is operative for the 2011-12 FY and subsequent
FYs as long as one or more ballot measures is approved by the
voters prior to November 17, 2012 to do the following: makes
the "non GF" determination and provides funding for school
districts and community colleges in an amount equal to the
amount they would have received had the revenues been deemed
"GF" for the purposes of calculating the Proposition 98
funding formula.
8)If the voters do not approve one or more ballot measures prior
to November 17, 2012, (as referenced above), the Director of
Finance (DOF), in consultation with the Superintendent of
Public Instruction, shall determine the amount of funding
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school districts and community colleges would have received
under the Proposition 98 funding formula (had revenues been
deemed GF).
a) Requires the amount of Proposition 98 funding determined
by DOF to be distributed for the 2012-13 FY though the
2016-17 FY according to the following:
i) 17.8% of total funding to local education agencies
according to the following priorities:
(1) Reduce K-12 deferral;
(2) Repay K-12 mandate obligations; and,
(3) Other one-time purposes specified in statute
enacted after the effective date of this bill.
ii) 2.2% of total funding to community colleges
according to the following priorities:
(1) Reduce community college deferrals;
(2) Repay community college mandate obligations;
and,
(3) Other one-time purposes specified in statute
enacted after the effective date of this bill.
Child Care and Development Programs:
9)Reduce the across-the-board unallocated reduction to all the
child care services from 15% to 11%, effective July 1, 2011.
10)Reinstate child care services for 11- to 12-year olds which
had been scheduled for elimination by July 1, 2011.
11)Amend the before and after school programs to provide
preferred placement for children who are 11 or 12-years of
age, as originally established before the March budget
changes.
12)Repeal the increase family fee schedule by 10%, which had
been scheduled for implementation by July 1, 2011.
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13)Establish findings and declarations to clarify that the State
Preschool Program and the After School Education and Safety
Program fall within the Proposition 98 guarantee and that
other child care programs that are funded from this
appropriation do not count toward the Proposition 98 minimum
guarantee.
14)Make statutory changes that conform to the provision of state
General Funds - instead of Proposition 98 funds previously
provided - for most child care programs in 2011-12 in the
budget bill. Proposition 98 funding would 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:
15)Suspend two mandates (Response Procedures and Student
Records), both of which are already required by federal law.
16)Make a technical correction to ensure that the institutions
that become ineligible due to their Three-Year Cohort Default
Rate exceeding the established threshold for the 2012-13
academic year and every academic year thereafter, shall be
ineligible for initial and renewal Cal Grant awards at that
institution.
17)Eliminate duplicative audits required biennially at each of
the 23 California State University (CSU) campuses and instead
requires a system-wide audit.
Trigger Reductions:
The following changes will be pursuant to Senate Bill 96 or
Assembly Bill 121 of the 2011-12 Regular Session, as applicable:
18)Eliminate local education agencies authority to conduct an
employee layoff process during the time period between five
days after the enactment of the Budget Act and August 15 for
the 2011-12 FY only.
19)Reduce the number of instructional days by up to seven days
and reduces the home-to-school transportation program by $238
million, if the state receives forecasted revenue projections
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less than $2 billion pursuant to the determination made by the
Director of Finance. This requirement becomes operative
February 1, 2012, and is only operative for the 2011-12 FY.
20)Approve an increase across the board reduction to all child
care programs for a total of $23 million in savings. This
reduction would be effective January 1, 2012, if the Director
of Finance determines by December 15, 2011, that the
Legislative Analyst's November 2011 or the Department of
Finance's December 2011 revenue forecast is less than $85.9
billion.
21)Increase the community college student fee from $36 per unit
to $46 per unit, commencing in the winter term of the 2011-12
academic year. This student fee increase would be effective
January 1, 2012, if the Director of Finance determines by
December 15, 2011, that the Legislative Analyst's November
2011 or the Department of Finance's December 2011 revenue
forecast is less than $85.9 billion.
22)Add an appropriation allowing this bill to take effect
immediately.
AS PASSED BY THE ASSEMBLY , this bill expresses the intent of the
Legislature to enact statutory changes relating to the 2011
Budget Act.
Analysis Prepared by : Sara Bachez / BUDGET / (916) 319-2099
FN: 0001416