BILL ANALYSIS Ó
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UNFINISHED BUSINESS
Bill No: SB 85
Author: Senate Budget and Fiscal Review Committee
Amended: 6/14/11
Vote: 27 Urgency
PRIOR SENATE VOTES NOT RELEVANT
ASSEMBLY FLOOR : Not available
SUBJECT : Budget Act of 2011: education finance
SOURCE : Author
DIGEST : This bill contains the necessary statutory and
technical changes in the area of education in order to
implement changes to the Budget Act of 2011.
ANALYSIS :
K-12 Provisions
1.Eliminates approximately $3 billion in new and prior-year
revenue limit and apportionment deferrals, decreasing
annual inter-year payment deferrals to K-12 schools from
$9.4 billion to $6.4 billion in 2011-12. As a part of
this reduction, the buydown utilizes $663 million in
one-time General Fund payments scored in satisfaction of
outstanding Proposition 98 "settle-up" obligations.
2.Updates revenue limit deficit factors for school district
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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.
3.Amends and repeals various sections of the Education,
Government, and Welfare and Institutions Codes to repeal
the state AB 3632 mandate program, which mandated
counties to provide mental health services to students
with disabilities. As a result of this elimination,
responsibility for educationally related mental health
services, as required by federal law for student with
disabilities, is shifted back to schools.
4.Amends 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.
5.Renumbers Education Code Section 60422.3 to Section 60049
to correct a technical error in statute.
Child Care & Development Programs
1.Reduces the across-the-board unallocated reduction to all
the child care services from 15% to 11%, effective July
1, 2011.
2.Reinstates child care services for 11- to 12-year olds,
which had been scheduled for elimination by July 1, 2011.
3.Amends 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.
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4.Repeals the increase family fee schedule by 10%, which
had been scheduled for implementation by July 1, 2011.
5.Establishes the Early Learning Advisory Council within
the State Department of Education.
Higher Education
1 .Reduces the community colleges deferral payment enacted
in the March budget package, from $961 million to $560.8
million for fiscal year 2011-12, to be appropriated in
July of the 2012-13 Fiscal Year.
2.Suspends two mandates (Response Procedures and Student
Records), both of which are already required by federal
law.
3.Eliminates California State University duplicative audits
that are currently required biennially at each of the 23
campuses, which the university already incorporates into
their system wide annual financial statement report.
4.Makes 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.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: Yes
CPM:cm 6/15/11 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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