BILL ANALYSIS Ó
SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW
Mark Leno, Chair
Bill No: AB 103
Author: Committee on Budget
As Amended: September 6, 2013
Consultant: Kim Connor and Keely Martin Bosler
Fiscal: Yes
Hearing Date: September 9, 2013
Subject: Education Omnibus Budget Trailer Bill
Summary: This bill makes various changes to the education
budget and trailer bills, adopted as part of the 2013-14
budget package.
Background: As part of the 2013-14 budget package, several
bills were adopted to implement the K-12 and higher
education provisions of the 2013 budget act. These bills
included, Chapter 29 (SB 73, Budget), Chapter 47 (AB 97,
Budget), Chapter 48, (AB 86, Budget), Chapter 49 (SB 91,
Budget), and Chapter 50, (AB 94, Budget). This bill makes
various changes to provisions included in these bills,
along with other related provisions.
Proposed Law: This bill includes the following key
changes:
Higher Education
1.Apprenticeship Program. The 2013 budget act consolidated
under the California Community Colleges, the
apprenticeship programs that were administered separately
under the California Department of Education and the
California Community Colleges. This bill makes various
technical changes to the code to conform definitions
related to the apprenticeship programs and makes a
technical date change for the development of common
administrative practices between the programs.
2.Middle Class Scholarship. The 2013 budget act created a
new Middle Class Scholarship for students that do not
qualify for the Cal Grant Program but come from a family
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with a household income that is less than $150,000. This
bill makes technical amendments that conform the academic
requirements definition for the Middle Class Scholarship
to the Cal Grant program. This bill also makes
clarifying changes to ensure that the University of
California (UC) and the California State University (CSU)
systems do not use the Middle Class Scholarship to
supplant existing institutional aid. The changes ensure
CSU and UC flexibility to change policies unrelated to
aid for undergraduate students, which is the only group
eligible for the Middle Class Scholarship.
3.Community Colleges - Deferrals. Reduces the deferrals to
the Community Colleges by $2.8 million.
4.Community Colleges - Mandates. Makes technical name
corrections to various Community Colleges mandates.
5.Community Colleges - Cash Flow Language. Authorizes the
Department of Finance to accelerate the apportionment of
General Fund between July 1, 2013 and February 1, 2014 if
it is determined that the Community Colleges have a
budgetary shortfall related to property tax resulting
from the dissolution of redevelopment agencies. Requires
notification of the Joint Legislative Budget Committee if
a shortfall is determined and acceleration is granted by
the Department of Finance.
6.Redevelopment Agency Dissolution Property Tax Backfill
for 2012-13. Allows the Department of Finance to
authorize up to $100 million Proposition 98 General Fund
for the California Community Colleges if property taxes
related to the dissolution of redevelopment agencies are
not received as estimated for 2012-13. The Department of
Finance has until December 31, 2013 to make a final
determination about the amount of property tax received
by the Community Colleges and the amount of General Fund
backfill required. The Department of Finance may
consider updated estimates of other local property tax
revenue, student fee revenue, or other sources of revenue
when making final determinations about what amount of
General Fund is needed to backfill the California
Community Colleges.
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K-12 Education
7.Local Control Funding Formula. Makes a several technical
and clarifying changes related to the new Local Control
Funding Formula (LCFF), including:
a) Clarifies statutes related to the William's
settlement agreement to delink from previous
categorical funding while continuing requirements
within the new funding model, and specifies that LCFF
funding will be used to offset any resulting
reimbursable state mandate.
b) Makes technical statutory changes to align
Community Day School and County Community School
funding with new LCFF requirements.
c) Specifies that statutes guiding state
apportionments to county offices of education and
charter schools will apply only to the Education
Protection Account beginning in 2013-14, and will
sunset on July 1, 2021, since funds will be
apportioned pursuant to the new LCFF.
d) Clarifies funding calculations that apply to
district reorganizations filed before and after
December 1, 2013.
e) Clarifies free and reduce-price meal eligibility is
based on federal income eligibility criteria for
purposes of unduplicated pupil counts under LCFF,
instead of receipt of meals.
f) Specifies that 2012-13 ADA counts, as of February
20, 2014, shall be used for purposes of calculating
Economic Recovery Target rate "add-ons" for qualifying
LEAs.
g) Deletes LCFF provisions governing declining
enrollment funding calculations to allow school
districts in decline to receive either the prior year
or current year average daily attendance (ADA) funding
and corresponding grade span proportions, whichever is
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greater.
h) Repeals statute authorizing special funding for the
Center for Advanced Research Technology (CART) program
-- operated by the Fresno Unified and Clovis Unified
school districts -- which will now be funded pursuant
to LCFF. Retains statutes for the CART program that
guide minimum instructional day, computation of
average daily attendance, supervision of pupils, and
the program sunset date.
i) Makes a technical correction to clarify that only
charter schools serving students that a county office
of education would otherwise be responsible for
educating, are eligible to claim the alternative
education funding rate under LCFF.
j) Requires that the California Department of
Education (CDE) and Department of Social Services
enter into a memorandum of understanding to share
foster youth data, and changes the due date of a CDE
report on foster youth outcomes.
aa) Specifies that Home-to-School Transportation
funding includes funding for the Small School District
Transportation Program.
bb) Establishes a process for school districts and
county offices of education to share maintenance of
effort (MOE) requirements related to Adult Education
and Home-to -School Transportation.
cc) Specifies that Regional Occupational Centers and
Programs, including those operated under a joint
powers agreement, shall be funded at their 2012-13
funding levels through 2014-15.
dd) Specifies that average daily attendance (ADA), for
the purpose of calculating county office of education
operational grant funding under the LCFF, shall
include the ADA of charter schools authorized by
districts over which the county office has
jurisdiction.
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ee) Specifies that if a county office of education
meets or exceeds its LCFF funding target, it will be
funded pursuant to the county LCFF funding formula or
at the higher hold-harmless level.
ff) Authorizes school districts and charter schools to
submit changes to California Longitudinal Pupil
Achievement Data System (CALPADS) within the
timeframes and procedures established by the
Department of Education.
gg) Clarifies than Necessary Small School (NSS) average
daily attendance (ADA) does not count for purposes of
base funding, but does count for supplemental and
concentration grant funding.
hh) Clarifies that the amount of NSS funding received
by a school district that qualified for NSS funding in
the 2012-13 fiscal year, is included within their hold
harmless calculation.
ii) Repeals statute to clarify that NSS funding
containing grades 7-8 are funded at the elementary NSS
rate for those grades, not the high school NSS rate.
These changes are consistent with current law.
jj) Provides that the $3.5 million per year that the
Torrance Unified School District (TUSD) will continue
to pass through to its local Regional Occupational
Center in 2013-14 and 2014-15 for average daily
attendance associated with non-TUSD students will not
count toward the district's LCFF target.
aaa) Clarifies that the $2 million in one-time funds
appropriated in 2013-14 to the Office of Planning and
Research to support State Board of Education
activities related to LCFF implementation is
non-Proposition 98 General Fund.
8.Local Control Accountability Plan. Makes various changes
related to the Local Control Accountability Plan (LCAP),
including:
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a) Requires LCAP to adhere to regulations adopted
related to expenditure of supplemental and
concentration grant funding.
b) Clarifies that a budget cannot be approved for a
school district or county office of education before a
LCAP, or update to the existing plan, is adopted and
clarifies terms under which a budget review committee
shall be formed.
c) Requires the State Board of Education, in
developing LCAP templates, to include guidance to LEAs
in reporting a listing of expenditures for specific
actions and a listing of expenditures for low-income
pupils, English learner pupils, re-designated English
learner pupils, and pupils residing in foster care, in
2014-15 and each year thereafter.
d) Requires school districts and county offices of
education to ensure that all written notifications
related to the LCAP or annual update are available to
parents in languages other than English, as specified
under current law.
e) Specifies that school district and county office of
education actions related to achieving the goals of
the LCAP shall not supersede local collective
bargaining agreements. Further specifics that
specific actions described in the local plan that are
inconsistent with local bargaining agreements shall be
renegotiated, and implemented only as agreed to after
renegotiation.
f) Adds local bargaining units to the groups that
school district and COEs must consult in the
development of the LCAP.
g) Provides greater detail related to career technical
education state priorities.
1.Department of Education - State Operations. Appropriates
up to $3.164 million in General Funds (Non-Proposition
98) to the California Department of Education (CDE) for
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State Operations, as follows:
a) LCFF Implementation. Provides up to $1.4 million to
support the implementation and administration of the
LCFF. Specifically, the bill appropriates $933,000
(ongoing funds) for six positions for this purpose.
An additional $479,000 for up to five positions may be
authorized, contingent upon Department of Finance
approval of an expenditure plan.
b) LCAP Implementation. Provides up to $1.3 million
for the support and development of the LCAP.
Specifically, this bill appropriates $570,000 (ongoing
funds) for five positions for this purpose. An
additional $723,000 for up to six positions may be
authorized, contingent upon Department of Finance
approval of an expenditure plan.
c) Career Technical Education Grant Implementation.
Provides $459,000 (one-time funds) for three
limited-term positions to implement the California
Career Technical Education Pathways competitive grant
program;
1.Clean Energy Jobs Act. Makes several technical changes
related to implementation of the California Clean Energy
Jobs Act (Proposition 39):
a) Specifies that CDE shall use prior-year enrollment
data, instead of average daily attendance, for
purposes of allocating energy efficiency funds to the
state special schools.
b) Clarifies that small school districts may elect to
bundle year one and year two energy efficiency funds
in 2013-14, and extends the application deadline for
this bundling option by one month.
c) Clarifies that statutes requiring schools to repay
Proposition 39 funding if they vacate the facility
within five years of project completion apply to local
educational agencies, not just school districts.
1.Career Technical Education Grant Program Evaluation.
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Directs $250,000 in one-time Proposition 98 funds,
appropriated in the 2013 budget for the Career Technical
Education Pathways Grant Program, for an independent
evaluation. These one-time funds shall be allocated to a
local education agency identified by the Superintendent
of Public Instruction to contract for the evaluation.
2.Instructional Day Requirements. Specifies that the
penalty for districts that fail to meet instructional day
requirements is a maximum of five days' average daily
attendance apportionments, and makes other technical and
conforming changes.
3.California School Finance Authority. Makes several
clarifying changes related to the transfer of the
California School Finance Authority from the California
Department of Education to the State Treasurer's Office
beginning in 2013-14.
4.General Fund Loan for Inglewood Unified School District.
Clarifies that the General Fund to the Inglewood Unified
School District shall include costs incurred by the
California Infrastructure and Economic Development Bank
(I-Bank).
5.Special Education Funding. Clarifies that Program
Specialists and Regionalized Services (PSRS) and
professional development funds are included in the
special education funding base when calculating the
Statewide Target Rate for Special Education Local
Planning Areas (SELPAs).
Fiscal Effect:
Support:
Opposed:
Comments:
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