BILL ANALYSIS Ó SB 1070 Page 1 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 SB 1070 Page 2 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 SB 1070 Page 3 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 SB 1070 Page 4 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) SB 1070 Page 5 319-2081