BILL ANALYSIS                                                                                                                                                                                                    

                                                                  AB 86
                                                                  Page  1

          AB 86 (Budget Committee)
          As Amended  June 14, 2013
          Majority vote.  Budget Bill Appropriation Takes Effect  
          |ASSEMBLY:  |     |(May 13, 2013)  |SENATE: |33-3 |(June 14,      |
          |           |     |                |        |     |2013)          |
                    (vote not relevant)                
           Original Committee Reference:    BUDGET

          SUMMARY  :  Contains necessary statutory and technical changes in  
          the area of education in order to implement changes to the  
          Budget Act of 2013.  

           The Senate amendments  delete the Assembly version of this bill,  
          and instead:

           K-12 Education
          1)Include statutory provisions that retire a total of $4.3  
            billion in ongoing Proposition 98 deferrals for K-14 education  
            in 2012-13 and 2013-14.  This leaves an outstanding balance of  
            $6.2 billion in deferred funding to schools.

          2)Appropriate $1.25 billion to school districts, county offices  
            of education (COEs), charter schools and state special schools  
            for the purposes of implementing Common Core State Standards.

          3)Establish the California Career Pathways Trust.  This  
            competitive grant program for regional partnerships links high  
            schools, community colleges and businesses to build and  
            improve career pathway programs.

          4)Extend through July 1, 2016, the requirement that the  
            governing board of any school district seeking to sell or  
            lease any real surplus property first offer that property for  
            sale or lease to charter schools that have at least 80 units  
            of average daily attendance, as specified. 

          5)Extend flexibility through July 1, 2016, to allow school  
            districts to deposit the proceeds from the sale of surplus  


                                                                  AB 86
                                                                  Page  2

            property into their general fund.

          6)Delete education code sections that are inconsistent with  
            federal law as it relates to cafeteria funds.

          7)Make several changes related to the shifting of the Charter  
            School Facility Grant Program from the Department of Education  
            to the California School Finance Authority.

          8)Authorize the Commission on Teacher Credentialing to charge  
            fees for teacher preparation program review, with notification  
            to Legislature and Department of Finance.

          9)Adjust the meal reimbursement rate for free and reduced price  
            meals in schools to $0.2229 and adjusts the rate for child  
            care centers to reflect a rate of $0.1660.

          10)Suspend the following mandates, consistent with action on  
            Local Government mandates: Absentee Ballots, Brendon Maquire  
            Act, Mandate Reimbursement I and II and Sex Offender:  
            Disclosure by Law Enforcement.

          11)Add the Science Graduation Requirement and the Pupil  
            Expulsions and Suspensions mandates to the K-12 mandate block  
            grant.  The budget bill increases funding for the block grant  
            by $50 million to reflect the inclusion of these mandates.

          12)Modify state law related to Behavior Intervention Plans to  
            minimize costs related to mandated activities.  

          13)Consolidate funding for regionalized services and program  
            specialists and personnel development grants into the larger  
            AB 602 funding formula to provide more local flexibility in  
            the use of the funds.  

          14)Relax restrictions on funding for service to students with  
            low-incidence disabilities.  Consolidates two extraordinary  
            cost pool budget items into one.  

          15)Revise the statewide target rate to a weighted student  
            average based on updated data, and begins to equalize funding  
            across all special education local plan areas (SELPAs).  

          16)Extend supplemental per-Average Daily Attendance (ADA)  
            funding provided to necessary small SELPAs.  Authorize growth  


                                                                  AB 86
                                                                  Page  3

            funding and a 1.565% cost of living adjustment.  

          17)Allocate federal special education funding separately from  
            state funding to streamline the calculation and correct  
            inequities in the funding that SELPAs receive when ADA grows  
            versus the amount they lose when it declines.  Specify the  
            state's federally-required "maintenance of effort"  

          18)Make the necessary statutory changes to begin the process of  
            equalizing state special education funding among SELPAs in  
            2013-14 to the 90th percentile.  The Budget Act provided $30  
            million to begin this process in 2013-14.  

          19)Suspend the statutory division of Proposition 98 funding  
            among K-12 educational agencies, community colleges, and other  
            state agencies, and instead conform the division of funding  
            based upon actual budget appropriations in 2012-13. 

          20)Extend the statutory authorization for use of the existing  
            early literacy assessment for English learners (California  
            English Development Test (CELDT) exam) by two years. 

          21)Make statutory changes conforming to zero funding for the  
            Emergency Repair Program in 2012-13.  

          22)Authorize Inglewood Unified School District (IUSD), through  
            the Department of Education, to request cash flow loans from  
            the General Fund for a total of up to $55 million.  This  
            replaces the authorization established through SB 533  
            (Wright), Chapter 325, Statutes of 2012, which appropriated  
            $29 million for an emergency loan to IUSD and authorized an  
            additional $26 million of lease financing through the  
            California Infrastructure and Economic Development Bank  

          23)Authorize the Superintendent of Public Instruction (SPI) to  
            appoint a trustee with the powers and responsibilities of an  
            administrator when a school district becomes insolvent and  
            requires an emergency apportionment from the state.

           Higher Education
          24)Consolidate the K-12 and community college apprenticeship  
            programs into the community college system while continuing to  


                                                                  AB 86
                                                                  Page  4

            allow local school districts to administer existing programs.   
            Require the Community College Chancellor's Office and the  
            Division of Apprenticeship Standards, with participation by  
            school district and community college apprenticeship  
            administrators, to develop policies and standards for  
            apprenticeship programs.

          25)Require the Community College Chancellor's Office and State  
            Department of Education, based on funding provided in the  
            Budget Act of 2013, to jointly provide planning grants to  
            regional consortia of community college and school districts  
            to develop regional plans to improve adult education programs.  
             Plans are expected to include area adult education needs and  
            proposals to improve specific portions of adult education,  
            including English as a second language, career technical  
            education, education programs for adults with disabilities and  
            basic skills.  Include the requirement of a subsequent report  
            on improving the adult education system and legislative intent  
            that additional funding will be provided for adult education  
            in 2015-16.

          26)Eliminate the Community College Fund for Instructional  
            Improvement, an outdated program, and sweeps the remaining  
            fund balance of $863,000 into the General Fund.

          27)Change the date by which community college districts are  
            required to submit letters to participate in the mandates  
            block grant from September 30 to August 30.

          28)Allow for a General Fund backfill for community colleges to  
            the extent that expected property tax revenue from the  
            dissolution of Redevelopment Agencies does not match  
            anticipated revenues in the current year and budget year.

          29)Allow for a General Fund backfill for community colleges to  
            the extent that expected tax revenue from the Education  
            Protection Account, created by Proposition 30, does not match  
            anticipated revenues in the current year and budget year.

          30)Require that community college students who are California  
            Work Opportunity and Responsibility to Kids (CalWORKs)  
            recipients to receive priority enrollment status, allowing  
            these students who have a shortened amount of time on benefits  
            to enroll in classes earlier than other students.


                                                                 AB 86
                                                                  Page  5

          31)Remove the apprenticeship and matriculation categorical  
            programs at community colleges from the flex, which will  
            require districts to spend funding associated with these  
            programs directly on these programs.   

           Child Care

           32)Simplify family fees for families receiving state-subsidized  
            child care by creating a process for the Department of  
            Education to adopt a new fee schedule that will provide more  
            predictable fees through a cost-neutral change to the current  
            fee structure.

          33)Require the Department of Education to report family fees  
            collects for preschool programs to the Department of Finance.

          34)Clarify that current state income eligibility levels for  
            state child care program continue for the budget year.

          35)Contain an appropriation allowing this bill to take effect  
            immediately upon enactment.

           Analysis Prepared by  :   Misty Feusahrens, Mark Martin and  
          Christian Griffith / BUDGET / (916) 319-2099 

                                                               FN: 0001204