BILL ANALYSIS �
AB 200
Page 1
Date of Hearing: April 24, 2013
ASSEMBLY COMMITTEE ON EDUCATION
Joan Buchanan, Chair
AB 200 (Hagman) - As Amended: April 18, 2013
[This bill is being heard for information purposes. No vote
will be taken at this hearing.]
SUBJECT : Education finance: categorical programs
SUMMARY : Changes the method of allocating funds for specified
categorical programs and requires local education agencies to
provide reports on the expenditure of those funds at each
schoolsite, as specified. Specifically, this bill :
1)Repeals the 2014-15 fiscal year termination date of the K-12
"Tier 3" categorical program block grant.
2)Requires the Superintendent of Public Instruction (SPI) to
determine the amount of funding per average daily attendance
(ADA) school districts received for the Tier 3 categorical
programs in 2013-14.
3)Requires, commencing with the 2014-15 fiscal year, the SPI to
apportion funds for the Tier 3 categorical programs to each
district on the basis of the amount it received per ADA in
2013-14 multiplied by its current year ADA.
4)Requires the California Department of Education (CDE) to adopt
uniform definitions for the Standardized Account Code
Structure reporting process that, at a minimum, include all
data field definitions consistent with school-level
expenditure reporting adopted by the department pursuant to
the requirements of the American Recovery and Reinvestment Act
of 2009..
5)Requires local education agencies (LEAs), as a condition of
receipt of funds, and using the Standardized Account Code
Structure, to report to the CDE and on its Internet web site
information on the expenditure per ADA of funds at the
district level and at each school site.
6)Requires the CDE to annually collect the school site
expenditure information from all LEAs and provide it to the
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Department of Finance (DOF) and the appropriate policy and
budget committees by April 15 each year.
EXISTING LAW
1)Establishes a "Tier 3" block of K-12 categorical programs
through the 2014-15 fiscal year.
2)Requires the SPI to apportion Tier 3 funds to LEAs, based on
the relative proportion that each LEA received in 2008-09.
3) Authorizes LEAs to use Tier 3 funds for any educational
purpose through 2014-15.
4)Requires LEAs, through 2014-15, to use the Standardized
Account Code Structure to report the district-level
expenditure of Tier 3 funds to the CDE, and requires the CDE
to report this information to the DOF and the appropriate
budget and policy committees of the Legislature by April 15
each year up to and including April 15, 2016.
5)Requires each school to prepare and make available to the
public a School Accountability Report Card (SARC), which
provides school-level information on a variety of factors,
including school finances.
FISCAL EFFECT : State-mandated local program
COMMENTS : This bill changes the funding mechanism for Tier 3
categorical programs and requires local education agencies to
report on school site-level expenditures of the funds each year
to the CDE.
Tier 3 categorical programs . Categorical program flexibility
was provided as part of the 2008-09 budget to help LEAs manage a
nearly 20% reduction in state K-12 funding. Funding for some
programs-notably special education, child care, and economic
impact aid, among others-was neither reduced nor flexed. These
are referred to as Tier 1 programs. Funding for other programs
(English learner assistance programs, student assessments, and
charter school facility grants, among others) was reduced but
not flexed. These are referred to as Tier 2 programs. Funding
for all other programs, the Tier 3 programs, was both reduced
and flexed. There are 38 Tier 3 programs, the largest five of
which are Targeted Instructional Improvement Block Grant (TIIG),
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adult education, regional occupational centers and programs,
School and Library Improvement Block Grant, and the
instructional materials block grant.
Since 2008-09, funding for the Tier 3 programs has essentially
been frozen at the 2008-09level. This bill , commencing with the
2014-15 fiscal year, shifts to a formula based on ADA. As a
result, total funding for Tier 3 programs for each district will
increase or decrease each year in accordance with increases or
decreases in district ADA. The bill also permanently maintains
the existing flexibility for the Tier 3 programs.
Prior to being flexed many of the Tier 3 programs were not
funded on the basis of ADA. The following list of the current
Tier 3 programs shows in bold the programs that have
historically been funded based on either ADA or enrollment. The
other programs have been historically been funded on the basis
of cost reimbursement, grants, number of teachers, or other
workload measures.
Tier 3 Programs (Historically ADA- or enrollment-based
programs are in bold)
Supplemental Instruction (Summer School)
ROC/Ps
Supplemental School Counseling (per pupil with a
school site minimum)
Specialized Secondary Programs Grants
Gifted and Talented Education Program (ADA with a
school site minimum)
Mathematics and Reading Professional Development
Program
Administrator Trainer Program
American Indian Early Childhood Education Centers
American Indian Education Centers
Adult Education
Education Technology
Deferred Maintenance
Instructional Materials Block Grant
Community Day Schools
Teacher Peer Review
National Board Certification Incentives
CalSAFE
CAHSEE Support and Services
Civic Education
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Teacher Dismissal Apportionment
Charter School Categorical Block Grant
Community-Based English Tutoring
School Safety Block Grant (enrollment in grades 8-12,
inclusive)
Grade 9 Class Size Reduction (enrollment in grade 9)
Advanced Placement and International Baccalaureate
Programs
California Association of Student Councils
Pupil Retention Block Grant
Teacher Credentialing Block Grant
Professional Development Block Grant
Targeted Instructional Improvement Program
School/Library Improvement Block Grant
School Safety Competitive Grants
Physical Education Teacher Incentive Grants
Art and Music Block Grant
County Office of Education Williams Audits
Agricultural Vocational Education
Oral Health Assessment
Alternative Teacher Certification Program
Only eight of the 38 programs have historically been funded on
the basis of district wide or grade level-specific ADA or
enrollment. The committee may wish to consider whether it is
appropriate to permanently shift to an ADA-based funding system
for programs that have historically been funded on the basis of
other workload measures.
School-site financial reports . Existing law requires every
school in California to publish a School Accountability Report
Care (SARC) by February 1 each year. The SARC is required to
contain specified information about student enrollment,
demographics, and academic performance; school climate and
facilities; teachers; support staff; curriculum and
instructional materials, and school finances. With respect to
school finances, the SARC is required to include total
expenditures per pupil broken down by restricted and
unrestricted expenditures per pupil. The SARC must also contain
the average teacher salary for the school.
This bill requires a separate annual school site expenditure
report only for funds received for Tier 3 categorical programs.
The bill also requires the CDE to adopt uniform definitions for
the Standardized Account Code Structure that schools must use
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for the annual expenditure reports. Until the definitions are
adopted, it cannot be known what level of detail will be
required. The committee may wish to consider whether the
additional report required by this bill will add to the public's
knowledge and understanding of a school's performance and
condition.
Related legislation .
AB 88 (Buchanan), which is pending in the Assembly Education
Committee, contains the Governor's proposal to implement a Local
Control Funding Formula (LCFF) for schools. The LCFF would
eliminated virtually all categorical programs and allocate most
K-12 dollars through a base grant plus supplemental funding.
The supplemental funding would be based on an LEA's enrollment
of English learners, pupils eligible for free or reduced price
meals, and pupils in foster care.
AB 200 (Hagman), which is pending in the Assembly Education
Committee, eliminates the sunset date on the Tier 3 categorical
programs and provides that, beginning in 2014-15, funds for
those programs shall be allocated based on the amount per ADA
each recipient received in 2013-14.
AB 470 (Mullin), which is pending in the Assembly Education
Committee, removes the Teacher Credentialing block Grant from
Tier 3 flexibility and requires the SPI and the California
Commission on Teacher Credentialing to perform onsite reviews
for all California Beginning Teacher support and Assessment
programs (BTSA), implement high-quality teacher induction
programs, and enforce existing BTSA program standards.
AB 558 (Cooley), which is currently pending in the Assembly
Education Committee, extends the phase out of the reduced
penalties for exceeding K-3 class size reduction
pupil-to-teacher ratios.
AB 1152 (Ammiano), which is pending in the Assembly Education
Committee, removes the California School Age Families Education
Program (Cal-SAFE) from Tier 3.
AB 1186 (Bonilla), which is pending in the Assembly Education
Committee, extends the flexibility for Tier 3 categorical
program funds, provided, beginning with the 2013-14 fiscal year,
a school district that receives them agrees to use at least 9%
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of the total funds for professional development for certificated
and administrative employees related to implementation of the
common core content standards; purchasing technology to
implement assessments aligned with the common core content
standards; or implementation of programs to integrate science,
technology, engineering, and mathematics (STEM) in grades 7 to
12, inclusive.
AB 1215 (Muratsuchi), which is pending in the Assembly Education
Committee, requires that an annual appropriation from the
General Fund be made directly to the Southern California
Regional Occupational Center for the purposes of providing
career and technical education services.
SB 223 (Liu), which passed the Senate Education Committee on a
9-0 vote and is pending in the Senate Appropriations Committee,
extends categorical flexibility in exchange for the recipient
LEA agreeing to specified accountability preconditions.
REGISTERED SUPPORT / OPPOSITION :
Support
EdVoice
Opposition
None received
Analysis Prepared by : Rick Pratt / ED. / (916) 319-2087