BILL ANALYSIS Ó
SB 97
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Date of Hearing: August 29, 2013
ASSEMBLY COMMITTEE ON BUDGET
Nancy Skinner, Chair
SB 97 ( Budget and Fiscal Review) - As Amended: August 28,
2013
SENATE VOTE : Vote not relevant
SUBJECT : Education
SUMMARY : Makes various technical and clarifying changes to
statutes related to K-12 and Higher Education in order to
implement the 2013 Budget Act. Specifically, this bill :
K-12 Education:
1)Makes clarifying changes related to the transfer of the
California School Finance Authority from the State Department
of Education (SDE) to the State Treasurer's Office.
2)Makes various technical changes related to implementation of
the California Clean Energy Jobs Act (Proposition 39):
a) Specifies, for purposes of calculating an average daily
attendance equivalent for the state special schools, SDE
will use 97% of their prior year enrollment as captured in
the state's CalPADS data system.
b) Clarifies that small school districts may receive two
years' worth of Proposition 39 funding allocations in the
first year, and extends the deadline by which they must
apply for this treatment by one month.
c) Clarifies an existing statutory requirement that schools
receiving Proposition 39 funding repay that funding if they
vacate the benefitting facility within five years of
project completion, to specify that it applies to every
local educational agency, not just school districts.
3)Clarifies that the terms and conditions of the General Fund
cashflow loan to Inglewood Unified School District shall
include costs incurred by the California Infrastructure and
Economic Development Bank (I-Bank).
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4)Clarifies that the Program Specialists and Regionalized
Services (PSRS) and professional development funds are
included in the special education base funding when
calculating the Statewide Target Rate.
5)Makes various changes related to the Local Control
Accountability Plan (LCAP), including:
a) Clarifies that a budget cannot be approved for a school
district or county office of education (COE) before a local
control accountability plan (LCAP) or update to the
existing plan is adopted and clarifies terms under which a
budget review committee shall be formed.
b) Requires school district and COE actions related to
achieving the goals of the LCAP to be consistent with local
collective bargaining agreements.
c) Clarifies that the initial LCAP program expenditures
shall be listed and described in the same manner as the
annual LCAP.
d) Provides greater detail related to career technical
education state priorities.
e) Adds local bargaining units to the groups school
district and COEs must consult in the development of the
LCAP.
f) Requires LCAP to adhere to regulations adopted related
to expenditure of supplemental and concentration grant
funding.
6)Makes a several technical and clarifying changes related to
the 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 with the new funding model.
b) Repeals law related to county community schools and the
transfer of students to conform with LCFF requirements.
c) Clarifies allocation methodology related to the
Education Protection Account (EPA) for revenues for school
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districts, charter schools and COEs.
d) Continues, through 2016, direct appropriation of
categorical funding to Joint Power Authorities if they
received these funds directly prior to the passage of the
LCFF.
e) Authorizes school districts and county offices of
education to jointly meet ROC/P maintenance of effort
requirements by allowing a county office or school district
to include expenditures from both entities so long as the
combined expenditures of both entities meet the maintenance
of effort requirement in total.
f) Clarifies free and reduce-price meal eligibility is
based on federal income eligibility criteria for purposes
of unduplicated pupil counts.
g) Authorizes LEAs to submit changes to California
Longitudinal Pupil Achievement Data System (CALPADS) within
the timeframes and procedures established by the SDE.
h) Excludes, for the 2013-14 and 2014-15 fiscal years, $3.5
million from the calculation of the LCFF transition
adjustment for Torrance Unified School District to reflect
the pass through of these funds to Southern California
Regional Occupational Center.
i) Clarifies the physical location of a charter school for
purposes of generating concentration grant funding.
j) 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.
aa) 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.
bb) Repeals obsolete code sections related to Capistrano
Unified School District and Fallbrook Union High School.
cc) Specifies that Superintendent of Public Instruction
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(SPI) shall contract with a local education agency (LEA),
or consortium of LEAs, to serve as the fiscal agent for the
California Collaborative for Educational Excellence (CCEE).
(The 2013 Budget Act appropriated $10 million for this
purpose.)
7)Appropriates up to $3.164 million (General Fund) to the SDE
for state operations:
a) Provides $459,000 (one-time General Fund) for three
limited term positions to oversee the California Career
Technical Education Pathways Trust competitive grant
program;
b) Provides up to $1.4 million to support the
implementation and administration of the LCFF.
Specifically, the bill appropriates $$933,000 (ongoing
General Fund) 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.
c) Provides up to $1.3 million for the support and
development of the LCAP. Specifically, this bill
appropriates $570,000 (ongoing General Fund) for five
positions for this purpose. An additional $723,000 and six
positions may be authorized, contingent upon Department of
Finance approval of an expenditure plan.
8)Amends Chapter 47, Statutes of 2013 to clarify that the $2
million provided to the Office of Planning and Research is
non-Proposition 98/General Fund.
9)Makes other technical and clarifying changes.
Community Colleges:
1)Makes technical changes to statutes regarding community
college mandates and the apprenticeship program;
2)Adjusts deferral amounts within the community college system
by $2.8 million;
3)Allows community college districts to use Proposition 98
General Fund monies for cash-flow purposes until the final
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amount of funds from Redevelopment Agencies is determined.
This change gives the Department of Finance discretion to
allow districts to use Proposition 98 funding while districts
wait for Redevelopment Agency (RDA) funding. There is no new
cost to Proposition 98; the funding is needed for cash-flow
purposes and will be reconciled once final RDA amounts are
determined.
Middle Class Scholarship:
1)Makes four minor changes to the Middle Class Scholarship
program, which was established in the 2013 Budget Act. The
changes are:
a) Ensures that students are entitled to discounts of up to
40 percent of systemwide tuition and fees at the University
of California and California State University under the
programs. Previous language had inadvertently omitted
systemwide fees;
b) Requires that students maintain "satisfactory academic
progress," as defined by federal regulation, to qualify for
the program. This change aligns academic standards with
that of the Cal Grant program;
c) Clarifies legislative intent that students can qualify
for the program if their annual household incomes does not
exceed $150,000;
d) Clarifies legislative intent that the new program does
not allow the University of California or California State
University to supplant their institutional financial aid
programs and that the systems maintain institutional aid
funding levels for undergraduate students at the 2013-14
level.
EXISTING LAW :
1)Establishes the Local Control Funding Formula which replaces
the prior revenue limit and categorical funding structure for
K-12 education. The formula is comprised of a base grant
(general purpose funding), supplemental grants (funding for
English learners (EL), low income and foster youth) and
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concentration grants (additional funding for LEAs with high
numbers of EL, low income and foster youth students).
Existing law also includes accountability requirements through
the development and adoption of LCAPs, which require the
reporting of detailed pupil achievement data and information
related to the expenditure of their LCFF allocations. Statute
further requires the SBE to adopt a template for use by LEAs
in developing LCAPs.
2)Authorizes Inglewood Unified School District to request,
through the SDE, up to $55 million in cashflow loans from the
General Fund, in lieu of financing through the I-Bank. The
interest charged on these loans are at the annual rate of
return of the Pooled Money Investment Account (PMIA) plus 2
percent. According to the Department of Finance, the I-Bank
has incurred costs of roughly $144,000 to date.
FISCAL EFFECT : Appropriates up to an additional $3.164 million
(General Fund) to the State Department of Education for state
operations.
COMMENTS : This bill makes largely technical and clarifying
amendments to the education trailer bills passed in June as part
of the 2013 Budget Act. These bills were AB 86, Chapter 48,
Statutes of 2013 (Education Omnibus Trailer Bill), AB 97,
Chapter 47, Statutes of 2013 (Local Control Funding Formula) and
AB 94, Chapter 50, Statutes of 2013.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
None on file.
Analysis Prepared by : Misty Feusahrens and Mark Martin /
BUDGET / (916) 319-2099
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