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 SB 275 Page 2 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 SB 275 Page 3 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 Page 4 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