BILL ANALYSIS Ó SB 876 Page 1 Date of Hearing: August 14, 2014 ASSEMBLY COMMITTEE ON BUDGET Nancy Skinner, Chair SB 876 (Committee on Budget and Fiscal Review) - As Amended: August 12, 2014 SENATE VOTE : Not Relevant SUBJECT : Technical Clean-up Education Omnibus Trailer Bill SUMMARY : This bill makes various technical changes to the education trailer bills, adopted as part of the 2014-15 Budget package. Specifically, this bill : 1.Clarifies that the regional market reimbursement rate, which is used to reimburse child care providers who accept vouchers, is set at the 85th percentile of the 2009 Regional Market Rate Survey, as reduced by a deficit factor of 10.11 percent. This amendment aligns the deficit factor to the amount of funding appropriated in SB 852 (Committee on Budget & Fiscal Review), Chapter 25, Statutes of 2014. 2.Clarifies that the increase to maximum reserve fund balances established by SB 858 (Committee on Budget & Fiscal Review), Chapter 32, Statutes of 2014, applies only to agencies contracting with the Department of Education under the California state preschool program. Also specifies that the additional 10 percent that these agencies may separately retain for use on professional development is part of an overall 15 percent reserve. 3.Specifies that funds provided through the Child Care Facilities Revolving Fund for renovation, repair, or improvement of existing buildings are to be provided as loans, and that those loans must be repaid within 10 years. 4.Specifies that $15 million of funding provided in SB 852 shall be allocated to the Department of Education to fund professional development stipends for teachers, to be administered by local planning councils. Also establishes priorities for the use of those funds, including first priority for transitional kindergarten teachers and second priority for teachers in the California state preschool program. SB 876 Page 2 5.Provides that if more than 10 percent of the average daily attendance (ADA) of a local educational agency is claimed through the new independent study option established through the 2014-15 Budget, then the ADA for that entity shall be reduced by the statewide average rate of absence, as specified. Also clarifies that nothing in the section of law establishing the new independent study option shall prohibit the right to collectively bargain any subject within the scope of representation pursuant to Government Code § 3543.2. 6.Clarifies that a Regional Occupational Center or Program operated by a Joint Powers Authority may be a grant recipient under the Career Pathways Trust grant program. 7.Specifies that if the University of California (UC) plans to use any of its support appropriation in the annual budget act for capital expenditures or capital outlay projects, as defined, it must submit a report, by September 1 of each year, describing the projects to the committees in each house of the Legislature that consider the state Budget, the appropriate budget subcommittees, and the Department of Finance (DOF). Also specifies that the DOF must review the report and submit, by February 1, a list of preliminarily approved capital expenditures and capital outlay projects to the committees in each house of the Legislature that consider the state Budget and the appropriate budget subcommittees for review and response. Currently, these UC capital expenditures and capital outlay projects are reported to the Joint Legislative Budget Committee. These changes conform to the process for California State University (CSU) capital projects and expenditures, which was established in the Higher Education Omnibus Trailer Bill, SB 860 (Committee on Budget and Fiscal Review), Chapter 34, Statutes of 2014. 8.Allows the UC to provide public notice of construction projects to bidders electronically on the website of the university. This change is consistent with authority granted to the CSU in SB 860. 9.Specifies that goal frameworks developed by community colleges and the board of governors for the California Community Colleges (CCCs) must be guided by the statewide goals outlined in Section 66010.91 of the Education Code and express the intent of the Legislature that the goals be challenging and SB 876 Page 3 quantifiable, address achievement gaps for underrepresented populations, and align the educational attainment of California's adult population to the workforce and economic needs of the state. 10.Expresses the intent of the Legislature that the appropriate policy and fiscal committees of the Legislature review specific UC and CSU performance measures in a collaborative process that includes the DOF, the Legislative Analyst's Office, individuals with expertise in statewide accountability efforts, the UC, the CSU, and, for the purposes of data integrity and consistency, the CCCs and consider any recommendations for modification and refinement. Also expresses the intent of the Legislature that any modification or refinement of the performance measures be guided by the legislative intent included in Section 66010.93 of the Education Code. COMMENTS : This bill makes technical and clarifying changes to the education related budget trailer bills to ensure the intent of the Legislature in passing the 2014-15 Budget. REGISTERED SUPPORT / OPPOSITION : Support Unknown Opposition Unknown Analysis Prepared by : Katie Hardeman and Mark Martin / BUDGET / (916) 319-2099