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