BILL ANALYSIS Ó
SB 97
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( Without Reference to File )
SENATE THIRD READING
SB 97 (Budget and Fiscal Review Committee)
As Amended September 11, 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, |
|Skinn|Gordon, |
|er, |Jones-Sawyer, Mitchell, |
|Bloom|Mullin, Muratsuchi, |
|, |Nazarian, Stone, Ting |
|Campo| |
|s, | |
|Chesb|Gorell, Chávez, Grove, |
|ro, |Harkey, Mansoor, |
|Daly,|Melendez, Morrell, |
| |Nestande, Patterson, |
|Dicki|Wagner |
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|Murat| |
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|Nazar| |
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|Stone| |
|, | |
|Ting | |
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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 various changes related to the Local Control Accountability
Plan (LCAP), including:
a) Requires annual updates, as well as the initial LCAP, to
adhere to regulations adopted related to expenditure of
supplemental and concentration grant funding.
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b) 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.
c) Specifies that actions in a district or COE LCAP cannot
supersede provisions of an existing local collective bargaining
agreement.
d) Requires the template developed by the State Board of
Education (SBE) 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.
e) Provides greater detail related to career technical education
state priorities.
f) Adds local bargaining units to the groups school district and
COEs must consult in the development of the LCAP.
2)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) Aligns county community schools and community day school
funding with LCFF requirements.
c) Clarifies allocation methodology related to the Education
Protection Account (EPA) for revenues for school districts,
charter schools and COEs.
d) Clarifies funding calculations that apply to district
reorganizations.
e) 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.
f) Authorizes school districts and COEs to jointly meet Regional
Occupational Centers and Programs (ROCP) maintenance of effort
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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.
g) Clarifies free and reduce-price meal eligibility is based on
federal income eligibility criteria for purposes of unduplicated
pupil counts, instead of receipt of meals.
h) Authorizes local educational agencies (LEAs) to submit changes
to California Longitudal Pupil Achievement Data Systems (CalPADS)
within the timeframes and procedures established by the State
Department of Education (SDE).
i) Clarifies that only charter schools serving students that a
COE would otherwise be responsible for educating are eligible to
claim the alternative education funding rate under LCFF.
j) Specifies that the SDE and Department of Social Services shall
enter into a memorandum of understanding, to share foster youth
data, on or before February 1, 2014. Clarifies the definition of
foster youth. Changes the due date of an SDE report on foster
youth outcomes from February 15 to July 1 of each even-numbered
year.
aa) 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.
bb) Clarifies that 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.
cc) 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.
dd) Clarifies that Necessary Small Schools (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.
ee) Allows school districts experiencing declining enrollment to
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receive either prior year or current year ADA funding and
corresponding grade span proportions, whichever is greater.
ff) 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. Repeals statute authorizing special
funding for CART, which will now be funded pursuant to LCFF
formulas.
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)Provides annual apportionments beginning in 2013-14 to the South
Monterey County Joint Union High School District to fund the
difference between annual payments under the I-Bank loan and what
the district would be paying under a General Fund loan with an
interest rate set at the Pooled Money Investment Account rate plus
2%. These "gap" payments will continue through 2029-30, reflecting
the term of the loan.
5)Clarifies that LEAs, or a consortium of LEAs, shall serve as the
fiscal agent for the California Collaborative for Education
Excellence (CCEE). Further, establishes a five-member governing
board of the CCEE that will direct the fiscal agent to contract with
individuals, LEAs or organizations to carry out the purposes of the
CCEE, as specified.
6)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.
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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.
7)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.
8)Makes clarifying changes related to the transfer of the California
School Finance Authority from the SDE to the State Treasurer's
Office.
9)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.
10)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.
11)Makes other technical and clarifying changes, including provisions
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to avoid chaptering conflicts with SB 344 (Padilla) of the current
legislative session
12)Contains an urgency clause, allowing this bill to take effect
immediately.
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.
4)Allow the Director of Finance to allocate up to $100 million to
community colleges by December 31, 2013, based on a review 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 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;
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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 : The 2013-14 Budget Act:
1)Established the Local Control Funding Formula (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 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)Established the California Collaborative for Educational Excellence
(CCEE) to advise and assist school districts, COEs and charter
schools in achieving the goals of the LCFF. The 2013 Budget Act
appropriated $10 million for this purpose. The Governor's signing
message regarding this appropriation stated the need to properly
define the governance composition and ongoing role of the CCEE
within the accountability structure of the LCFF with subsequent
legislation.
3)Authorized 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 California Infrastructure and Economic
Development Bank (I-Bank). The interest charged on these loans are
at the annual rate of return of the Pooled Money Investment Account
(PMIA) plus 2%.
FISCAL EFFECT : Appropriates up to an additional $3.164 million
(General Fund) to the State Department of Education for state
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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 (Higher Education Trailer Bill).
Analysis Prepared by : Misty Feusahrens and Mark Martin / BUDGET /
(916) 319-2099
FN: 0002841