BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 1070
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          Date of Hearing:   August 8, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                  SB 1070 (Steinberg) - As Amended:  August 6, 2012 

          Policy Committee:                             Higher Education 
          Vote:        8-0
                       Education                              9-0

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

           SUMMARY  

          This bill revises provisions of the Career Technical Education 
          Pathways (CTEP) program and extends the program's sunset date 
          from January 1, 2013 to January 1, 2018.  

           FISCAL EFFECT  

          GF/98 costs, likely between $20 million and $38 million, to 
          continue funding the CTEP program.  This measure requires the 
          program to only be operative in fiscal years (FYs) where funds 
          are appropriated for this purpose.  The 2012 Budget Act 
          allocates $38 million for this program.  In the 2013-14 FY, the 
          CTEP program is scheduled to receive $20 million.    

          Per the California Tea chers Association et. al. v. 
          Schwarzenegger settlement, CCCs are required to receive a total 
          of $292 million over a seven-year period for this program and 
          one-time costs.  The original allocations were between the 
          2007-08 fiscal year (FY) and the 2013-14 FY.  However, due to 
          the state's fiscal crisis, the amount of funding allocated to 
          CCCs under this agreement fluctuated between $18 and $38 
          million.  As such, the state added an extra year to the timeline 
          to ensure the entire $292 million obligation to CCCs is met.     


           SUMMARY, CONTINUED
           
          1)Requires the chancellor of the California Community Colleges 
            (CCCs) and the Superintendent of Public Instruction (SPI) to 
            assist economic and workforce regional development centers and 








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            consortia, CCCs, middle schools, high schools, and regional 
            occupational centers and programs (ROC/Ps) to improve linkages 
            and CTE pathways between high schools and CCCs to accomplish 
            specified goals that increase middle and high school pupil 
            success and access to postsecondary education, as specified.  

          2)Requires the SPI and the CCC Chancellor to jointly administer 
            contracts and competitive grants for programs and initiatives 
            that demonstrate a plan for collaboration among regional 
            institutions/entities, including, but not limited to school 
            districts, public postsecondary educational institutions, 
            ROC/Ps, local workforce investment boards (LWIBs), and 
            business/industry, as specified.  

             a)   Requires first priority for contracts and grants to be 
               given to applicants that can demonstrate comprehensive 
               regional collaboration to create new pathways or course 
               sequences, as specified.  
             b)   Requires special consideration to be given for contracts 
               and grants with specified characteristics, such as 
               displaying a statewide benefit, leveraging additional 
               financial support, serving rural regions, and coordinating 
               with initiatives in partnership with LWIBs.  

          3)Requires all contract or grant awardees to demonstrate 
            outcome-based data pertinent to the type of program and 
            individuals they serve, as specified.  

          4)Requires the SPI and the CCC Chancellor to (a) develop 
            standardized procedures/tools to collect outcome based data 
            and (b) submit a report to the governor and the Legislature on 
            or before March 1 of each year on the CTEP program, as 
            specified.  

          5)Requires the SPI and CCC Chancellor to provide an 
            implementation and expenditure plan to the Legislature and the 
            Department of Finance at least 30 days before taking action to 
            implement the expenditure plan.    

          6)Authorizes a CCC district to enroll a high school pupil, who 
            is not a resident of the district, in a CTEP program that is 
            developed and implemented by the district, as specified.  

           COMMENTS









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            1)Rationale  .  According to the author, "Studies show that 
            programs that bring together strong academics, demanding 
            technical education, and real world experience are more likely 
            to engage pupils, raise high school graduation rates, and 
            better prepare pupils for lasting success in college and 
            careers."  The author further states the CTE Pathway 
            Initiative and other investments have led to "5,792 
            partnerships, developed or revised more than 1,000 courses, 
            provided trainings to more than 36,000 staff at high schools 
            and CCCs."  This bill revises and reauthorizes the CTEP 
            program until January 1, 2018.  

           2)Existing law  , the CTE Pathways Initiative, established by SB 
            70 (Scott), Chapter 352, Statutes of 2005, requires the CCC to 
            assist economic and workforce regional development centers and 
            consortia to improve CTE education pathways between high 
            schools and community colleges.  The initiative has served 
            nearly 750,000 California middle and high school pupils and 
            college students through a variety of programs and services 
            designed to increase their success in college and career.   

            The CTE Pathways Initiative is a component of the CCC Economic 
            and Workforce Development program, which requires the CCC 
            Board of Governors to assist economic and workforce regional 
            development centers and consortia, including middle and junior 
            high schools or high schools and ROC/Ps to improve linkages 
            and CTE pathways between high schools and community colleges.  
            The CCC Economic and Workforce Development program sunsets on 
            January1 1, 2013.

            The provisions of this bill are consistent with existing law 
            related to the CTE Pathways Initiative and the CCC Economic 
            and Workforce Development program, as specified.     

           3)Clarification regarding priority in grant funding  .  This bill 
            requires first priority be given to applicants that can 
            demonstrate comprehensive regional collaboration to create new 
            pathways or course sequences, as specified.  It further 
            requires "special consideration" to be given for contracts and 
            grants with specified characteristics, such as displaying a 
            statewide benefit, leveraging additional financial support, 
            serving rural regions, and coordinating with initiatives in 
            partnership with LWIBs.  There is no definition of "special 
            consideration" and as such, it is unclear if a contract 
            providing a statewide benefit is a higher priority than a 








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            grant serving a rural region.  Staff recommends the author 
            clearly delineate priorities for grant and contract funding 
            under this program.    
           
          4)Funding for the CTE Pathways Initiative  .  SB 70 (Scott), 
            Chapter 352, Statutes of 2005, allocated approximately $20.2 
            million for this program.  Of this amount, $20 million was 
            one-time GF/98 reversion funds to provide grants and $193,000 
            was federal CTE funds allocated to SDE to support two two-year 
            limited-term positions for workload associated with the 
            program.   

            SB 1133 (Torlakson), Chapter 751, Statutes of 2006, 
            established the Quality Education Investment Act (QEIA), which 
            implemented the settlement agreement for the California 
            Teachers Association et. al. v. Schwarzenegger lawsuit related 
            to not providing enough funding required under Proposition 98 
            (K-14 education).  SB 1133 allocated a total of $2.71 billion 
            over seven FYs to the following: 

             a)   The QEIA program, which provides funding to elementary, 
               secondary, and charter schools ranked in deciles 1 or 2 of 
               the 2005 Academic Performance Index to provide funding to 
               reduce class size and hire additional counselors, as 
               specified. 
             b)   The CCCs to fund CTE pathway programs established under 
               SB 70 and conduct one-time activities, such as fixing the 
               physical plant of campuses.  

            Since the passage of SB 1133, the statute governing the CTA 
            et. al. v. Schwarzenegger settlement has been amended various 
            times, mainly to address issues related to the QEIA program.  
            For the most part the amount of funding provided to CCCs has 
            remained consistent with the original statute.  

           5)Related legislation  .  SB 1402 (Lieu), pending in this 
            committee, is a companion bill to this measure in that it 
            recasts and revises provisions governing the CCC Economic and 
            Workforce Development program and extends its sunset to 
            January 1, 2018.




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








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          319-2081