BILL ANALYSIS Ó
SB 97
Page 1
SENATE THIRD READING
SB 97 (Budget and Fiscal Review Committee)
As Amended August 28, 2013
Majority vote. Budget Bill Appropriation Takes Effect Immediately
SENATE VOTE :Vote not relevant
BUDGET 14-10
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|Ayes:|Skinner, Bloom, Campos, |
| |Chesbro, Daly, Dickinson, |
| |Gordon, |
| |Jones-Sawyer, Mitchell, |
| |Mullin, Muratsuchi, |
| |Nazarian, Stone, Ting |
| | |
|-----+--------------------------|
|Nays:|Gorell, Chávez, Grove, |
| |Harkey, Mansoor, |
| |Melendez, Morrell, |
| |Nestande, Patterson, |
| |Wagner |
| | |
--------------------------------
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 California Longitudinal Pupil Achievement Data System
(CalPADS) data system.
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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).
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.
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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 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 Regional Occupational Centers and Programs
(ROCP) 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 local educational agencies (LEAs) to submit
changes to 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.
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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 (SPI)
shall contract with a 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 AB 97 (Budget Committee), 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.
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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 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%
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 :
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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 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%. 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.
Analysis Prepared by : Misty Feusahrens and Mark Martin / BUDGET /
(916) 319-2099
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