BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 1028| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ UNFINISHED BUSINESS Bill No: SB 1028 Author: Senate Budget and Fiscal Review Committee Amended: 8/30/12 Vote: 21 PRIOR VOTES NOT RELEVANT ASSEMBLY FLOOR : Not available SUBJECT : 2012-13 Budget Trailer Bill: Education SOURCE : Author DIGEST : This bill makes necessary statutory changes in the area of education in order to enact modifications to the 2012-13 Budget Act. Assembly Amendments delete the intent of the Legislature to enact statutory changes relating to the Budget Act of 2012, and insert the above language. ANALYSIS : This bill makes necessary statutory changes in the area of education in order to enact modifications to the 2012-13 Budget Act. Specifically, this bill: 1. Amends the Budget Act of 2011 to make a technical scoring correction that is a part of a Proposition 98 funding swap for special education utilized to achieve one-time budget savings in 2011-12. CONTINUED SB 1028 Page 2 2. Corrects the appropriations for the Quality Education Investment Act (QEIA) program in 2013-14 to reflect amounts agreed to as a part of the 2012-13 Budget Act. 3. Makes changes to existing statute to ensure that intercept payments related to facilities working capital financing and bond issuances through the California School Finance Authority for districts, counties, charter schools and community colleges includes all funds dispersed to them, as specified, regardless of fund source. 4. Adds five small mandates to the K-12 education mandate block grant established by the 2012-13 Budget that were inadvertently left off the mandates block grant list. 5. Requires the State Board of Education, the Health and Human Services Agency and the Department of Social Services to repeal regulations related to county mental health services that are no longer supported by statute. 6. Reinstates the expectation that the University of California (UC) will enroll a total of 209,977 state-supported full-time equivalent students during the 2012-13 academic year. This target was included in the Budget Act of 2012 but was subsequently vetoed by the Governor. As a condition of receipt of state General Fund (GF) in 2012-13, requires the UC to report to the Legislature by May 1, 2013, on whether it has met the enrollment goal. 7. Appropriates $4.75 million in 2006 General Obligation (GO) bond funds for the costs of preliminary plans and working drawings for a new Classroom and Academic Office Building at UC Merced. Includes budget bill provisional language, which has been included in the past several budgets on GO-bond funded UC capital outlay projects, to authorize expenditure of any savings as specified and require payment of prevailing wage rates. 8. Clarifies existing law, adopted as part of the 2011 Budget Act, that an institution that is ineligible to participate in the Cal Grant program shall regain its eligibility in the academic year for which it satisfies CONTINUED SB 1028 Page 3 the eligibility requirements. Under current law, federally reported cohort default rate (CDR) and graduation rate data is certified by the California Student Aid Commission (CSAC) in October of each year. That data becomes the basis for program eligibility in the following academic year. Existing law also specifies that an institution must have a CDR under 15.5% and a graduation rate greater than 30% to be eligible for the program. This amendment clarifies that an institution that is ineligible in the 2012-13 academic year shall regain its eligibility in the 2013-14 academic year if it satisfies the eligibility tests based on the fall 2012 data. The CSAC has interpreted current law to read as a two-year exclusion from the program. 9. Appropriate $5 million from the golden State Scholarshare Trust Fund to the Chancellor of the California State University to fund the establishment and maintenance of the California Open Education Resources Council and the California Digital Open Sources Library, and the development or acquisition of open education resources, pursuant to legislation. Further, the amendments allow the Chancellor to reimburse California community colleges and the UC for any of their costs associated with these activities. Moneys appropriated would be required to be matched 100% by private funds prior to being encumbered. 10.Contains an appropriation allowing this bill take effect immediately upon enactment. Comments This bill makes necessary technical and clarifying changes in the area of education in order to enact modifications to the 2012-13 Budget Act. FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local: No Appropriates $230,000 in federal Individuals with Disabilities Act carryover funds to the California Department of Education for oversight and technical CONTINUED SB 1028 Page 4 monitoring related to behavior intervention plans. Appropriates $4.75 million in 2006 GO bond funds for the costs of preliminary plans and working drawings for a new classroom and academic office building at UC Merced. Appropriates $361 million for the QEIA in 2013-14. Appropriates $5 million from State Scholarshare funds to the California State University, pursuant to legislation as specified. PQ:k 8/31/12 Senate Floor Analyses SUPPORT/OPPOSITION: NONE RECEIVED **** END **** CONTINUED