BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1214
                                                                  Page 1

          Date of Hearing:   May 1, 2013

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Joan Buchanan, Chair
                  AB 1214 (Muratsuchi) - As Amended:  March 21, 2013
           
          SUBJECT  :   Southern California Regional Occupational Center  
          (SCROC)

           SUMMARY  :   Enacts a special law requiring an annual  
          appropriation from the General Fund be made directly to SCROC  
          for the purposes of providing career and technical education  
          services.  Specifically,  this bill  :  

          1)Makes findings and declarations related to the SCROC.

          2)Requires the SCROC to receive an annual appropriation from the  
            General Fund for the purposes of providing career technical  
            education services.

          3)Specifies the funds received by the SCROC shall be apportioned  
            directly to the SCROC based on a formula agreed upon by the  
            school districts participating in the Joint Powers Authority  
            (JPA).

          4)Makes a finding and declaration that a special law is  
            necessary and that a general law cannot be made applicable.

           EXISTING LAW  :

          1)Authorizes the governing board of any high school district,  
            the governing board of any JPA occupational center or program,  
            or the county superintendent of schools to establish and  
            maintain a regional occupational center or a regional  
            occupational program to provide education and training in  
            career technical courses.

          2)Requires an ROCP to receive its funding directly from the  
            County Office of Education in which it is located, at an  
            amount per unit of average daily attendance (ADA) equal to the  
            revenue limit received by those districts.  

          3)Makes invalid a local or special statute if a general statute  
            can be made applicable.









                                                                  AB 1214
                                                                  Page 2

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   California's Regional Occupational Centers and  
          Programs (ROCPs) are an integral part of California's systemic  
          career preparation and workforce development efforts. The ROCPs  
          delivery system addresses the need for a highly skilled, diverse  
          workforce at the secondary and adult education level. Through  
          industry and education partnerships, ROCPs provide students with  
          relevant instruction that meets the career and technical  
          education employment needs of the communities served by ROCP.   
          ROCPs provide qualified students with the opportunity to attend  
          a Career Technical Education (CTE) training program regardless  
          of the geographical location of their residence. Many ROCPs  
          consolidate state and federal funds to offer comprehensive  
          employment training, placement, and support services. Combining  
          resources and services also allows ROCPs to offer cost-effective  
          employment training and career technical education without  
          duplicating administrative and overhead costs. In addition, an  
          ROCP student may receive the entire range of services needed to  
          enter the workforce or to continue education at a postsecondary  
          institution through one agency, rather than moving from one  
          location to another. 

          In California, the 74 ROCPs are organized under one of three  
          distinct organizational structures: County-operated, JPA, and  
          Single District. The SCROC is one of 26 ROCPs that is organized  
          as a JPA. This organization structure indicates that this is a  
          joint venture of two or more school districts (the SCROC is made  
          up of six school districts), the governing board is made up of  
          one elected representative from the boards of education of each  
          participating district; and the teachers are either hired  
          directly by the JPA or may be hired by the participating school  
          districts and then contracted to the JPA for all or a part of  
          their day; and support services are handled by the JPA. 

          ROCPs are funded under Proposition 98 through the annual Budget  
          Act (item 6110-105-0001) as one of approximately 60 categorical  
          programs that serve specific goals (e.g., to assist high school  
          students in passing the high school exit exam) or for specific  
          programs (e.g., ROC/Ps, special education).  There are also  
          numerous statutes and regulations that specify allowable use of  
          categorical funds and how funds are allocated.  The FY 2009-10  
          budget had an important impact on categorical programs.  The  
          budget agreement imposed a 20% reduction on 39 programs and gave  
          LEAs that received those funds in FY 2007-08 the flexibility to  








                                                                  AB 1214
                                                                  Page 3

          use the funds for any educational purposes from FY 2008-09  
          through FY 2012-13 (SBX3 4 (Ducheny), Chapter 12, Statutes of  
          the 2009-10 Third Extraordinary Session).  This reduction and  
          flexibility provision is commonly known as "Tier 3" flexibility,  
          which essentially gives LEAs $4.5 billion in additional  
          unrestricted funds.  Tier 1 protected four categorical programs  
          from cuts and flexibility while 11 categorical programs  
          sustained reductions but were given no flexibility under Tier 2.  
           For Tier 3 funds, school districts receive their allocations  
          based on the applicable percentage the programs received in FY  
          2007-08.  SB 70 (Budget Committee), Chapter 7, Statutes of 2011,  
          extended categorical flexibility to 2014-15.  Until 2015-16,  
          LEAs are not required to justify or report average daily  
          attendance in order to receive the specified categorical funds.   


          One of these 39 Tier 3 programs are the ROCPs.  However, SB 1197  
          (Alquist) Chapter 519, Statutes of 2008, redirected the funding  
          for those ROCPs that are maintained by school districts or JPAs  
          so that they are directly funded, thereby eliminating the  
          flexibility of those funds by the participating school  
          districts.  The intent of this bill is to continue this direct  
          stream of funding in light of the Governor's proposed budget.

          The Governor's FY 2013-14 budget proposal includes a new formula  
          and methodology for K-12 funding called the Local Control  
          Funding Formula (LCFF).  The LCFF would replace revenue limit  
          funding and separate categorical program funding with a uniform  
          per-pupil rate based on K-3, 4-6, 7-8, and 9-12 grade spans,  
          augmented by supplemental funding based on additional needs of  
          students, such as English learners or students from low income  
          families. Current career technical education funding is proposed  
          to be folded into a 9-12 grade span adjustment under the LCFF.   
          The proposed trailer bill language to implement this funding  
          change amends Education Code section 52321 in such a manner as  
          to eliminate any direct flow of revenue to ROCPs. 

          Under existing law and the terms of the JPA that SCROC has in  
          place with its participating school districts, the Los Angeles  
          County of Education passes through directly to SCROC the ROCP  
          moneys allocated to the six member school districts. In  
          addition, SCROC generates its own ADA revenue by providing ROCP  
          programs to students attending the center at times outside of  
          the regular school day. 









                                                                  AB 1214
                                                                  Page 4

          This committee may wish to consider whether carving out an  
          exception for the SCROC amongst the other entities that rely on  
          ROCP funding is the most effective manner to address the needs  
          of the students participating in these ROCPs.  Further, the  
          committee may wish to consider whether this bill is  
          appropriately addressed through an amendment to Education Code  
          rather than addressing the larger issue of ROCP funding through  
          the budget process.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Alta Vista PTA
          Beryl Heights Elementary PTA
          City of Palos Verdes Estates
          City of Rancho Palos Verdes
          City of Rolling Hills
          City of Torrance
          Gerber Ambulance Service
          Grand View Elementary PTA
          Individuals 
          Lincoln School PTA
          Manhattan Beach Council of PTAs
          Redondo Beach PTA Council
          Redondo Beach Unified School District
          Robinson Elementary PTSA
          Southern California Regional Occupational Center (Sponsor)
          Torrance Unified School District

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Jill Rice / ED. / (916) 319-2087