BILL ANALYSIS Ó
SB 70
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SENATE THIRD READING
SB 70 (Budget and Fiscal Review Committee)
As Amended March 14, 2011
2/3 vote. Urgency
SENATE VOTE :Vote not relevant
SUMMARY : Provides the necessary statutory changes in the area
of education in order to enact modifications to the 2010-11 and
2011-12 Budget Acts. Specifically, this bill :
K-12 Provisions:
1)Provides a revenue limit deficit factor of 19.892% to reflect
a $106.6 million deficit for county offices of education
(COEs). Provides a revenue limit deficit factor of 19.608% to
reflect a deficit of $7.7 billion for school districts. These
statutory factors are created to establish the state's intent
to repay the K-12 per-pupil reductions in the future,
including foregone cost-of-living adjustments (COLAs).
2)Defers an additional $2.1 billion in K-12 funds from 2011-12
to 2012-13. Specifically, the bill shifts $1.3 billion in
March 2012 payments and $763 million in April 2012 payments to
August 2012. This schedule is shorter than the 13 month
deferral proposed in the Governor's budget. With the addition
of this deferral, the state now defers over $10 billion or
one-fifth of Proposition 98 funding from one year to the next.
3)Extends various flexibility options to school districts for an
additional two years, including categorical flexibility,
instructional materials purchase and adoption requirements,
routine and deferred maintenance requirements, surplus
property, class size reduction, instructional minutes and
local budget reserve requirements.
4)Makes statutory changes conforming to zero funding for the
Emergency Repair Program in 2011-12.
5)Appropriates $80.8 million in one-time Proposition 98 funds to
support mental health related services for special education
students in 2010-11. Funds are appropriated on a one-time
basis based upon the relative costs of services provided.
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6)Extends until 2014-15, authorization for new schools, the
majority of which are charter schools, to access flexible
categorical program funding on par with existing schools.
7)Appropriates $5 million from the General Fund to augment the
Charter School Revolving Loan Fund, which makes low-interest,
start-up loans to new charter schools in order to meet the
purposes of their charters.
8)Establishes a zero percent COLA for K-12 programs in 2010-11.
Though the actual COLA of 1.67% is not provided, it is applied
to the deficit factors established in this measure.
9)Provides $2.3 million in federal funds ($1.5 million in Title
VI and $781,000 in Title II) for 2010-11 for the California
Longitudinal Pupil Achievement Data System (CALPADS). Require
first priority for the funds to support the transfer of
knowledge from the CALPADS contractor to staff of the
California Department of Education (CDE) and any other
relevant state agency. Require CDE, as a condition of
receiving funds to administer CALPADS, to ensure local
educational areas (LEAs) are provided with the standardized
templates and data necessary for meeting the requirements
established in the School Accountability Report Card.
10)Applies an 8.9% reduction to categorical programs for basic
aid districts in 2010-11 and 2011-12 commensurate to the
revenue limit reduction rate for other school districts in
2010-11 and 2011-12. Specify the intent to restore these
reductions at the same time, and in direct proportion to,
restoration of revenue limit reductions. Basic aid districts
are districts in which local property taxes equal or exceed
the district's revenue limit. These districts keep their
"excess taxes" in lieu of receiving state revenue limit
funding. Since basic aid districts do not receive revenue
limit funding, thus far they have not been affected by the
ongoing prior year reductions to revenue limit funding.
11)Authorizes a statutory appropriation for the K-3 Class Size
Reduction program for 2011-12. The statute authorizes the
Superintendent of Public Instruction to certify the funding
needed for the program in 2011-12 to ensure full funding for
the program. This action is consistent with action taken in
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the 2010-11 Budget Act.
12)Reduces ongoing Proposition 98 funding for special education
by about $13.1 million in 2011-12 and backfill with one-time
Proposition 98 savings from various programs to cover 2010-11
program adjustments.
13)Suspends the statutory division of Proposition 98 funding
among K-12 educational agencies, community colleges, and other
state agencies, and instead conform the division of funding
based upon actual budget appropriations in 2011-12.
14)Requires the state to adjust the Proposition 98 calculation
so that any shift in local property taxes previously received
by redevelopment agencies has no effect on the Proposition 98
minimum guarantee in 2011-12.
Child Care and Development:
1)Lowers the maximum allowable income to receive subsidized
child care to 70% of State Median Income (SMI) from 75%
effective July 1, 2011. The reduction applies to all child
care services, including preschool.
2)Deprioritizes child care services for 11- to 12-year olds,
with the exception of children who are in child protective
services, at risk of abuse or neglect, homeless, disabled, or
in non-traditional hours of care, effective July 1, 2011.
Prioritize 11- to 12-year olds who lost child care for the
waitlists or any open spaces in before and after school
programs, and allows those 11- and 12- year olds to attend a
before and after school program at a school other than their
own within their districts.
3)Reduces the reimbursement rate for license-exempt providers
from 80% to 60% of the regional market rate, effective July 1,
2011.
4)Increases family fee schedule by 10%, but continue existing
policy that the family fees cannot exceed 10% of the family's
total income, effective July 1, 2011.
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5)Provides $60 million from one-time funds for the April through
June 2011 period to fund California Work Opportunity and
Responsibility to Kids (CalWORKs) Stage 3.
Higher Education:
1)Requires the University of California (UC) and California
State University (CSU) to provide a preliminary report by June
1, 2011 on how the segments will address their respective $500
million budget reductions, taking into account input provided
by stakeholders. The final report that details the
implementation of all budget solutions will be required by
September 1, 2012.
2)Requires the UC to enroll 209,977 students during the 2011-12
academic year, which is the same number UC was required to
enroll during the 2010-11 academic year. Requires the CSU to
enroll 331,716 students during the 2011-12 academic year,
which is 8,157 fewer students than the university was required
to enroll during the 2010-11 academic year, as they did not
meet their enrollment target.
3)Increases the community college student fee from $26 per unit
to $36 per unit.
4)Defers an additional $129 million of community college
apportionment payments from January through May to October
2012, and provide hardship exemption for districts that do not
have sufficient cash resources to sustain the deferral.
5)Extends the community college categorical flexibility to
2014-15 to be consistent with K-12 categorical flexibility.
6)Amends existing student information privacy statute to allow
California Community Colleges to share student data as
permitted in the federal Family Educational Right and Privacy
Act of 1974 (FERPA).
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7)Requires that all returning Cal Grant recipients have their
income and assets information verified as currently required
for new recipients.
8)Requires the California Student Aid Commission to certify by
October 1 of each year all participating higher education
institutions' latest Three-Year Cohort Default Rate as most
recently reported by the United States Department of
Education.
9)Requires all institutions of higher education, with more than
40% undergraduate students borrowing federal student loans, to
maintain their Three-Year Cohort Default Rate below 24.6% for
the 2011-12 academic year, in order to continue meeting
eligibility to participate in the Cal Grant Program for
initial and renewal awards. For 2012-13 academic year, and
every academic year thereafter, institutions are to maintain
their Three-Year Cohort Default Rate below 30%.
10)Reduces by 20% the maximum renewal Cal Grant A or Cal Grant B
awards, if an institution becomes ineligible due to their
Three-Year Cohort Default Rate exceeding the established
threshold, and recipients choose to renew their Cal Grant
awards at the ineligible institution.
11)Requires the Legislative Analyst's Office to review this
policy and potential alternatives by January 1, 2013, and
report to the policy and fiscal committees of the Legislature
with recommendations.
12)Adds an urgency clause allowing this bill to take effect
immediately upon enactment.
Analysis Prepared by : Misty Feusahrens and Sara Bachez /
BUDGET / (916) 319-2099
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