BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          SB 204 (Liu)
          
          Hearing Date: 05/16/2011        Amended: 04/26/2011
          Consultant: Jacqueline Wong-HernandezPolicy Vote: Education 7-0
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          BILL SUMMARY: SB 204 would change the state-level governance 
          structure for K-12 education by reducing the responsibilities 
          and powers of the State Board of Education (SBE) to an advisory 
          role to the Governor, Legislature, and Superintendent of Public 
          Instruction (SPI), and expands the role of the SPI in 
          administering the Department of Education (CDE) and setting 
          education policy. 
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                            Fiscal Impact (in thousands)

           Major Provisions                       2011-12       2012-13      
           2013-14                        Fund
                                                                      
          Transition costs                             Unknown, 
          potentially hundreds of thousands     General

          Consolidation of duties    Potential long-term savings based on 
          consolidation                  
                                                              of existing 
          SBE duties within the CDE              General
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          STAFF COMMENTS: This bill meets the criteria for referral to the 
          Suspense File.
          
          Current law provides for an eleven member SBE appointed by the 
          Governor for four-year terms, with each appointee subject to 
          confirmation by a two-thirds vote of the Senate. In addition, 
          current law provides that the SBE determines all questions of 
          policy within its powers. The California Constitution requires 
          the Legislature to provide for the 
          appointment or election of the SBE. The SBE has significant 
          authority over education regulations. Its duties also include 
          federal waivers, territory transfer appeals, charter school 
          oversight and assignment of numbers, Special Education Local 








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          Plan Area organization issues, various functions of the State 
          Education Agency under federal law, and various functions 
          related to curriculum. 

          The California Constitution specifies that an SPI shall be 
          elected by the people at each gubernatorial election. The 
          Constitution provides no further specification of the duties of 
          the SPI (Article IX, Section 2).  The SPI is one of seven 
          statewide elective offices specified in the constitution.  
          Current law prescribes the responsibilities of the SPI 
          throughout the Education Code including, among other things, 
          superintend the schools of this state.  (Education Code § 33112 
          et. seq.)

          This bill repeals the authority of the SBE "to determine all 
          questions of policy within its powers" and instead makes the SBE 
          an advisory board to the Governor, Legislature and SPI. The SPI 
          and CDE would take over the functions of the SBE to set policy, 
          adopt curriculum frameworks, and appoint Associate SPIs, as well 
          as its duties in various statutes to review or approve policies 
          and reports. While consolidating activities of the SBE within 
          the CDE would likely lead to long term administrative savings, 
          there would likely be significant upfront costs related to 
          transition. 
          The SBE currently has its own staff and budget. A large portion 
          of that budget supports eight authorized staff positions housed 
          in the CDE building. The cost of those positions (including 
          benefits) is nearly $900,000. If the staff's workload is 
          transferred to other existing CDE employees, there would be 
          significant state savings. This bill, however, does not require 
          the consolidation or reduction of staff, so there are no 
          guaranteed savings. Additionally, SBE duties transferring to the 
          CDE would still need to be completed, and it is unclear how much 
          of the workload could be absorbed by current CDE staff.

          This bill does not change the number of SBE meetings, the budget 
          for those meetings and travel, or staffing for those meetings; 
          it only changes the board's authority and some of its duties. 
          This bill could be implemented in a manner that achieves 
          considerable long term savings, but all savings depend on how 
          the bill is interpreted and implemented by the CDE and the SBE. 











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