BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 1028
                                                                  Page  1


          (  Without Reference to File  )

          SENATE THIRD READING
          SB 1028 (Budget and Fiscal Review Committee)
          As Amended  August 30, 2012
          Majority vote.  Budget Bill Appropriation Takes Effect 
          Immediately 

           SENATE VOTE  :Vote not relevant  
           
           SUMMARY:   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.  

          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 








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            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 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.  Current 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 University of 
            California 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 








                                                                  SB 1028
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            immediately upon enactment.  

           FISCAL EFFECT:   Appropriates $230,000 in federal Individuals 
          with Disabilities Act (IDEA) carryover funds to the California 
          Department of Education (CDE) for oversight and technical 
          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.

           COMMENTS:   Makes necessary technical and clarifying changes in 
          the area of education in order to enact modifications to the 
          2012-13 Budget Act.  

           
          Analysis Prepared by  :   Misty Feusahrens and Sara Bachez/ BUDGET 
          / (916) 319-2099


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