BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 876
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          SENATE THIRD READING
          SB 876 (Budget and Fiscal Review Committee)
          As Amended  August 13, 2014
          Majority vote  
           
          SENATE VOTE  :  Vote not relevant

           BUDGET              23-1                                        
           
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          |Ayes:|Skinner, Gorell, Bloom,   |     |                          |
          |     |Campos, Chávez, Chesbro,  |     |                          |
          |     |Daly, Dickinson, Gordon,  |     |                          |
          |     |Grove, Jones-Sawyer,      |     |                          |
          |     |Melendez, Mullin,         |     |                          |
          |     |Muratsuchi, Nazarian,     |     |                          |
          |     |Nestande, Patterson,      |     |                          |
          |     |Rodriguez, Stone, Ting,   |     |                          |
          |     |Wagner, Weber, Dababneh   |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Allen                     |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  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%.  This  
            amendment aligns the deficit factor to the amount of funding  
            appropriated in SB 852 (Budget and Fiscal Review Committee),  
            Chapter 25, Statutes of 2014.

          2)Clarifies that the increase to maximum reserve fund balances  
            established by SB 858 (Budget and Fiscal Review Committee),  
            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% that these agencies may separately retain for  
            use on professional development is part of an overall 15%  
            reserve.








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          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. 

          5)Provides that if more than 10% 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 Section 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  








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            California State University (CSU) capital projects and  
            expenditures, which was established in the Higher Education  
            Omnibus Trailer Bill, SB 860 (Budget and Fiscal Review  
            Committee), Chapter 34, Statutes of 2014.

          8)Allows the UC to provide public notice of construction  
            projects to bidders electronically on the Web site 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 Education Code Section 66010.91 and express the intent of  
            the Legislature that the goals be challenging and  
            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 Education Code Section  
            66010.93.

           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.


           Analysis Prepared by  :    Katie Hardeman and Mark Martin / BUDGET  
          / (916) 319-2099 


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