BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 275
                                                                  Page  1

          Date of Hearing:   August 8, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    SB 275 (Hancock) - As Amended:  July 3, 2012 

          Policy Committee:                             Education Vote:9-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              No

           SUMMARY  

          This bill, beginning with the 2015-16 fiscal year (FY), requires 
          the Superintendent of Public Instruction (SPI) to apportion 
          Regional Occupational Centers and Programs (ROC/P) funding to 
          each county office of education (COE) in order to facilitate 
          coordination between COEs, school districts and joint powers 
          agencies (JPAs) for the development of career technical 
          education (CTE) programs.  Specifically, this bill:  

          1)Requires COEs to receive the same relative proportion of ROC/P 
            funding school districts and JPAs located within its 
            jurisdiction received in the 2014-15 FY.  Further requires 
            COEs to allocate these funds in the same relative proportion 
            to districts and JPAs as occurred in the 2014-15 FY.  

          2)Authorizes local education agencies (LEAs) to form regions for 
            the purpose of developing and maintaining CTE programs and to 
            utilize funding from the following four programs for this 
            purpose: (a) ROC/Ps, (b) Specialized Secondary programs, (c) 
            CA Partnership Academies (CPAs), and (d) Agricultural CTE 
            Incentive Programs.  Further requires these funds to only be 
            expended to ensure the development and maintenance of high 
            quality CTE programs.  

          3)Specifies (in the absence of a regional agreement) funding 
            allocated for Specialized Secondary programs, CPAs, and CTE 
            Incentive programs only be used for the purposes of these 
            programs.  

          4)Requires the governing board of an ROC/P, as a condition of 
            receiving funding, to develop a plan for establishing a 
            sequence of courses by July 1, 2015, as specified.  Further 








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            requires programs to collect and report data, as required by 
            the State Department of Education (SDE), for the purpose of 
            developing an accountability measure to determine the quality 
            and effectiveness of a study or sequence of CTE programs 
            funded under these provisions.    

          5)Requires the SPI to align accountability measures for ROC/Ps, 
            the Agriculture CTE program, and CPAs into a uniform 
            accountability metric, as specified.  

           FISCAL EFFECT  

          1)GF administrative costs to SDE, likely between $220,000 and 
            $420,000, to develop accountability measures required by this 
            bill.  These costs are associated with conducting committee 
            meetings and LEA training sessions on the accountability 
            measures.   

          2)The 2012 Budget Act allocates the following funding for the 
            programs specified in this measure: 

                         ---------------------------------- 
                        |ROC/Pa              |$384.7       |
                        |                    |million      |
                        |--------------------+-------------|
                        |CPA programb        |$21.4        |
                        |                    |million      |
                        |--------------------+-------------|
                        |Agricultural CTE    |$4.1 million |
                        |programsb           |             |
                        |--------------------+-------------|
                        |Total               |$410.2       |
                        |                    |million      |
                         ---------------------------------- 
                         aIncluded in categorical flexibility.  
                         bNot included in categorical flexibility.
                         *Amounts include 19.84% program reduction.  

           COMMENTS  

           1)Purpose  .  The author contends that LEAs, under the state's 
            categorical flexibility provisions, have severely reduced 
            spending and implementation of ROC/Ps and other CTE programs.  
            She further contends that without accountability provisions 
            for these programs, LEAs will cease to operate them once 








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            categorical flexibility ends in the 2014-15 FY.  Specifically, 
            the author states: "Despite the importance of CTE programs, 
            these funds are at risk of redirection if no state 
            accountability system exists for those programs.  ROC/Ps and 
            other CTE programs are integral to K-12 education, and cannot 
            be eliminated or redirected without creating irreparable harm 
            to the comprehensive instructional program that we should be 
            offering our students.  The approach offered by Ýthis bill] 
            both protects a valuable resource for the state, its CTE 
            programs, and allows local needs to be used as the basis for 
            structuring those programs at the regional level."   

           2)Categorical flexibility  .  As part of the February 2009 budget 
            package, SB 4 X3 (Ducheny), Third Extraordinary Session, 
            Chapter 12, Statutes of 2009, provided LEAs with unprecedented 
            fiscal and policy flexibility related to over 40 categorical 
            programs, including the ROC/Ps, between the 2008-09 FY and the 
            2012-13 FY. Specifically, any LEA that received funding for 
            specified categorical programs (i.e., ROC/Ps) in the 2008-09 
            FY is authorized to use this funding for any other educational 
            purpose until the 2012-13 FY. The LEA may choose to continue 
            operating the categorical program it received funding for or 
            redirect it for any other educational purpose the LEA deems 
            appropriate. SB 70 (Committee on Budget and Fiscal Review), 
            Chapter 7, Statutes of 2011, extended this flexibility until 
            the 2014-15 FY.

            The CPA and Agricultural CTE programs are not part of the 
            current categorical flexibility provisions.  Instead, the 
            funding for these programs is required to be spent according 
            to statutory program requirements.  

           3)Does this bill make funding and programmatic decisions for 
            three CTE programs prematurely?    This bill modifies the 
            manner in which ROC/P funding is allocated and locks the state 
            into an allocation amount for three CTE programs: ROC/P, CPA, 
            and Agricultural CTE programs.  Currently, ROC/P funding and 
            programmatic requirements are flexible (under categorical 
            flexibility) until the 2014-15 FY.  Likewise, school 
            districts, COEs, or JPAs that operate an ROC/P, CPA, or an 
            agriculture CTE program receive their funding directly.  

            Under this measure, the state is required to provide these 
            three programs the same amount of funding they received in the 
            2014-15 FY and allocate it to COEs (regardless if that is the 








                                                                  SB 275
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            entity that receives the funding currently).  Given the 
            volatility of the state's fiscal crisis, it is unclear the 
            need to make significant fiscal and policy changes to programs 
            that would not take effect until the 2015-16 FY.  




           Analysis Prepared by  :    Kimberly Rodriguez / APPR. / (916) 
          319-2081