BILL ANALYSIS Ó
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THIRD READING
Bill No: AB 103
Author: Assembly Budget Committee
Amended: 9/6/13 in Senate
Vote: 21
SENATE BUDGET & FISCAL REVIEW COMMITTEE : 10-2, 9/9/13
AYES: Leno, Beall, Block, DeSaulnier, Hancock, Hill, Jackson,
Roth, Torres, Wright
NOES: Anderson, Wyland
NO VOTE RECORDED: Emmerson, Berryhill, Monning, Nielsen
ASSEMBLY FLOOR : Not relevant
SUBJECT : Education Omnibus Budget Trailer Bill
SOURCE : Author
DIGEST : This bill makes various changes to the education
budget and trailer bills, adopted as part of the 2013-14 Budget
package.
ANALYSIS : 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, SB 73
(Senate Budget and Fiscal Review Committee, Chapter 29), AB 97
(Assembly Budget Committee, Chapter 47), AB 86 (Assembly Budget
Committee, Chapter 48), SB 91 (Senate Budget and Fiscal Review
Committee, Chapter 49), and AB 94 (Assembly Budget Committee,
Chapter 50). This bill makes various changes to provisions
included in these bills, along with other related provisions.
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This bill includes the following key changes:
Higher Education
1. Apprenticeship program . The 2013 Budget Act consolidated
under the California Community Colleges (CCC), the
apprenticeship programs that were administered separately
under the California Department of Education (CDE) and the
CCC. 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 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 (DOF) to accelerate the apportionment
of General Fund (GF) 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
DOF.
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6. Redevelopment agency dissolution property tax backfill for
2012-13 . Allows the DOF to authorize up to $100 million
Proposition 98 GF for the CCC if property taxes related to
the dissolution of redevelopment agencies are not received as
estimated for 2012-13. DOF 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 GF
backfill required. DOF 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 GF is needed to backfill the CCC.
K-12 Education
7. Local Control Funding Formula (LCFF) . Makes a several
technical and clarifying changes related to the new 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 average daily attendance (ADA)
counts, as of February 20, 2014, shall be used for
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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 ADA
funding and corresponding grade span proportions,
whichever is 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 ADA, 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. Specifies that the CDE and Department of Social
Services shall enter into a memorandum of understanding,
to share foster youth data, on or before February 1, 2014.
Clarifies the definition of foster youth. Changes the
due date of a CDE report on foster youth outcomes from
February 15 to July 1 of each even-numbered year.
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
requirements related to Regional Occupational Centers and
Programs funding.
CC. Specifies that in 2013-14 and 2014-15 Regional
Occupational Center and Program joint powers agencies and
Home-to-School Transportation joint powers agencies shall
continue to receive funding at a level associated with
2012-13 amounts for specified categorical programs.
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DD. Specifies that entitlements to the State Special
Schools shall continue to include funding at a level
associated with 2012-13 amounts for specified categorical
programs.
EE. Specifies that 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.
FF. 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.
GG. Authorizes school districts and charter schools to
submit changes to California Longitudinal Pupil
Achievement Data System within the timeframes and
procedures established by the CDE.
HH. Clarifies that Necessary Small School (NSS) ADA does
not count for purposes of base funding, but does count for
supplemental and concentration grant funding.
II. 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.
JJ. 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 existing law.
AAA. 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 ADA associated with non-TUSD
students will not count toward the district's LCFF target.
BBB. Clarifies that the $2 million in one-time funds
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appropriated in 2013-14 to the Office of Planning and
Research to support State Board of Education (SBE)
activities related to LCFF implementation is
non-Proposition 98 GF.
8. Local Control Accountability Plan . Makes various changes
related to the Local Control Accountability Plan (LCAP),
including:
A. Requires annual updates, as well as the initial 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 SBE, 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 the annual actions that school district
and county office of education actions take relating to
achieving the goals of the LCAP shall not supersede local
collective bargaining agreements.
F. Adds local bargaining units to the groups that school
district and county offices of education must consult in
the development of the LCAP.
G. Provides greater detail related to career technical
education state priorities for purposes of the LCAP.
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1. Department of Education - State Operations . Appropriates up
to $3.164 million in GFs (Non-Proposition 98) to the CDE for
State Operations, as follows:
A. LCFF implementation . Provides up to $1.4 million to
support the implementation and administration of the LCFF.
Specifically, this 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 DOF 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 DOF
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 the CDE shall use prior-year enrollment
data, instead of ADA, 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 .
Directs $250,000 in one-time Proposition 98 funds,
appropriated in the 2013 budget for the Career Technical
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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 (SPI) 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' ADA 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 CDE to the State
Treasurer's Office beginning in 2013-14.
4. GF emergency loan for Inglewood Unified School District -
covered costs . Specifies that the GF emergency loan package
for the Inglewood Unified School District shall cover costs
incurred by the California Infrastructure and Economic
Development Bank (I-Bank). (The 2013-14 Budget establishes a
GF emergency loan for Inglewood - instead of an I-Bank loan -
to reduce the interest rate for Inglewood to the Pooled Money
Investment Account rate plus 2%.)
5. Mitigation of I-Bank emergency loan payments for South
Monterey Joint Union High School District . Commences annual
Proposition 98 payments in 2013-14 to the South Monterey
Joint Union High School District to fund the difference
between annual payments under the I-Bank loan and what the
district would be paying under a GF loan with an interest
rate set at the Pooled Money Investment Account rate plus 2%.
These "gap" payments will continue through 2029-30,
reflecting the term of the loan.
6. Special education funding . Clarifies that Program
Specialists and Regionalized Services and professional
development funds are included in the special education
funding base when calculating the Statewide Target Rate for
Special Education Local Planning Areas.
7. Chaptering-out protection provisions . Includes provisions
guiding implementation of conflicting Education Code sections
contained in this bill (AB 103) and SB 344 (Padilla), if both
bills are enacted.
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8. California Collaborative for Educational Excellence (CCEE) .
Makes changes to the CCEE, authorized and funded in the
2013-14 Budget, to advise and assist local educational
agencies in achieving the goals set forth in their local
control and accountability plans. More specifically, this
bill:
Specifies that the SPI, with the approval of the SBE,
shall contract with a local educational agency, or
consortium of local educational agencies, to serve as the
fiscal agent for the CCEE, and that the SPI shall
apportion funds appropriated for the CCEE to the fiscal
agent.
Specifies that the CCEE shall be governed by a board
consisting of the following five members: (a) the SPI or
his/her designee; (b) the President of the SBE or his/her
designee; (c) a superintendent of a county office of
education appointed by the Senate Rules Committee; (d) a
teacher appointed by the Speaker of the Assembly; and (e)
a superintendent of a school district appointed by the
Governor.
Specifies that, at the direction of the board of the
CCEE, the fiscal agent shall contract with individuals, as
well as local educational agencies or organizations with
expertise, experience, and a record of success to carry
out the purposes of LCFF implementation.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
JA:k 9/11/13 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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