BILL ANALYSIS Ó AB 169 Page 1 Date of Hearing: March 16, 2011 ASSEMBLY COMMITTEE ON EDUCATION Julia Brownley, Chair AB 169 (Torres) - As Introduced: January 20, 2011 SUBJECT : Education finance SUMMARY : Requires the State Board of Education (SBE) to include school districts, county offices of education (COE), and other agencies deemed eligible pursuant to state and federal law in any application for federal aid to education, in any allocation of federal funds made pursuant to law, and in any rules and regulations adopted governing the allocation of those funds. EXISTING LAW 1)Provides base funding by requiring the Superintendent of Public Instruction to make prescribed calculations for the apportionment of state aid to local educational agencies. 2)Establishes and funds categorical programs that focus resources and/or compliance requirements on specific classes of students or schools, or on specific uses of funds, identified by the Legislature as priorities. 3)Authorizes the allocation and apportionment of federal funds to recipients for use as specified in federal and state law. 4)Requires the SBE to make timely application for federal education funds and to direct the allocation of federal funds to local education agencies. FISCAL EFFECT : In a substantially similar bill carried by this author in the prior session, the Assembly Appropriations Committee found that the bill created no additional state General Fund/Proposition 98 administrative costs. COMMENTS : This bill proposes to require the SBE to include COE and other agencies, where eligible, in any application for federal aid to education, in any allocation of federal funds currently made to school districts, and in any rules and regulations adopted governing the allocation of those funds. The California Department of Education reports that there are no AB 169 Page 2 instances where federal education funds are currently made available to school districts, but not to COE or other agencies, unless there is federal or state statute requiring that differentiation; this is true despite there being no current statutory requirement on the inclusion of COE or other educational agencies. This bill would thus codify current practice and continue to ensure that all eligible educational entities are included in federal funding opportunities available to the state. According to the author, "County offices of education play a vital role in providing educational programs and services for students, parents, school districts and the community. Often the students served by county offices of education are at-risk students. AB 169 will ensure that county offices are not inadvertently left out when federal funds are allocated." Current law set in the code sections amended by this bill, regarding the SBE making applications for federal funds or allocating those funds, include references to "school districts", "local education agencies," and "local school districts and other agencies entitled to receive federal funds for the support of schools." These different references do not appear to be related to any substantive difference in the treatment of those agencies in terms of the application for or allocation of federal funds; in fact, these terms are used in an ambiguous and interchangeable manner throughout these sections of code. Since these code sections exist the context of the Legislature's authorization of the state's full participation in Federal Programs and Interstate Agreements, since the federal government generally focuses education funding on schools and students rather than on school districts, county, or regional education agencies (note that the federal government has to take a one-size-fits-all approach to local education governance in order to deal with varied organizational models across the states), and since these sections of the code have remained unclear since being enacted in AB 3100 (Greene), Chapter 1010, Statutes of 1976 (which implemented a complete revision of the education code), it can be concluded that the proposal made in this bill (to have the students and schools under the administration of COE and other agencies included in applications and eligible for the receipt of federal funds, unless specifically excluded) is consistent with the intent of the Legislature stated in the Education Code sections amended by this bill. Given this conclusion, this bill also serves a AB 169 Page 3 technical purpose in that it reconciles existing ambiguous and seemingly interchangeable references to "school districts" and "local education agencies" in existing law, and thus clarifies that school districts, county offices of education, and all other educational agencies deemed eligible are required to be considered by the SBE when any application or allocation of federal funds is being made. Committee amendments: In order to conform with the intent of the Legislature that all eligible educational entities be included in any application for federal aid to education, in any allocation of federal funds made pursuant to law, and in any rules and regulations adopted governing the allocation of those funds, Committee staff recommends that the bill be amended to clarify that "school districts," as used in this article "include school districts, county offices of education, and other educational agencies or entities deemed eligible pursuant to state and federal law." Previous legislation: AB 339 (Torres), vetoed in 2010, was substantially similar to this bill. AB 3100 (Greene), Chapter 1010, Statutes of 1976, implemented a complete revision of the education code, including the statute related to which educational entities would be included by the SBE in any applications for or allocations of federal education funds. REGISTERED SUPPORT / OPPOSITION : Support California County Superintendents Educational Services Association Los Angeles County Office of Education Monterey County Office of Education Riverside County Superintendent of Schools Opposition None on file Analysis Prepared by : Gerald Shelton / ED. / (916) 319-2087 AB 169 Page 4