BILL ANALYSIS Ó
SB 97
Page 1
SENATE THIRD READING
SB 97 (Budget and Fiscal Review Committee)
As Amended September 6, 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 LCAP
or update to the existing plan is adopted and clarifies
terms under which a budget review committee shall be
formed.
b) Clarifies that actions in a district or COE LCAP cannot
supersede provisions in a local collective bargaining
agreement. Further specifies actions that are inconsistent
with a local collective bargaining agreement shall be
renegotiated and implemented only after renegotiation.
c) Requires the template developed by the State Board of
Education to include guidance on the reporting of
expenditures, including expenditures that will serve low
income, English learner, foster youth and pupils
redesignated as fluent English proficient.
d) Provides greater detail related to career technical
education state priorities.
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e) Adds local bargaining units to the groups school
district and COEs must consult in the development of the
LCAP.
f) Requires the LCAP to adhere to regulations adopted
related to expenditure of supplemental and concentration
grant funding.
6)Makes 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 COEs to jointly meet
Regional Occupational Centers and Programs (ROCP)
maintenance of effort requirements by allowing a COE 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
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adjustment for Torrance Unified School District to reflect
the pass through of these funds to Southern California
Regional Occupational Center.
i) 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.
j) 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.
aa) Clarifies that NSS containing grades 7-8 are funded at
the elementary NSS rate for those grades, not the high
school NSS rate, consistent with existing law.
bb) 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.)
cc) Specifies that funding for districts with declining
attendance will be based on total attendance and grade span
distributions from the prior year, rather than calculations
using total attendance from the prior year and grade span
distributions in the current year.
7)Retain statutes for the Center for Advanced Research
Technology (CART) program that guide minimum instructional
day, computation of average daily attendance, supervision of
pupils, and the program sunset date.
8)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.
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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.
9)Amends AB 97 (Budget Committee), Chapter 47, Statutes of 2013,
to:
a) Clarify that the $2 million provided to the Office of
Planning and Research is non-Proposition 98/General Fund.
b) Appropriate $250,000 of the Career Technical Education
Pathways Grant Program ($250 million/Proposition 98) for an
evaluation.
10)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
amount of funds from Redevelopment Agencies (RDAs) is
determined. This change gives the Department of Finance
discretion to allow districts to use Proposition 98 funding
while districts wait for 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.
4)Allow the Director of Finance to allocate up to $100 million
to community colleges by Decmber 31, 2013, based on a review
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of property tax revenues related to the dissolution of
redevelopment agencies for the 2012-13 fiscal year. Requires
notification of the Joint Legislative Budget Committee should
the Department of Finance determine that an appropriation is
necessary.
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 :
1)Establishes the LCFF 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
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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 (Budget
Committee), Chapter 48, Statutes of 2013 (Education Omnibus
Trailer Bill), AB 97, Chapter 47, Statutes of 2013 (Local
Control Funding Formula) and AB 94 (Budget Committee), Chapter
50, Statutes of 2013.
Analysis Prepared by : Misty Feusahrens and Mark Martin /
BUDGET / (916) 319-2099
FN: 0002610