BILL ANALYSIS                                                                                                                                                                                                    

                              Senator Mark Leno, Chair
                                2015 - 2016  Regular 

          Bill No:            AB 104          Hearing Date:    June 18,  
          |Author:   |Committee on Budget                                   |
          |Version:  |January 9, 2015 Introduced                            |
          |Urgency:  |No                     |Fiscal:    |Yes              |
          |Consultant|Elisa Wynne and Samantha Lui                          |
          |:         |                                                      |

                            Subject:  Budget Act of 2015.

          Summary: This bill makes various statutory changes and appropriations  
          regarding child care and early childhood education and K-14  
          education, necessary for the implementation of the Budget Act of  

          Proposed Law: This bill makes statutory changes to implement the  
          2015-16 budget. Specifically, this bill:
          K-14 Education Crosscutting Issues.
             1)   Appropriates $3.8 billion in Proposition 98 one-time and  
               settle up funding to pay down the existing mandate backlog.  
               Of this, $3.2 billion is allocated to K-12 and over $600  
               million is provided to community colleges. Includes intent  
               language that these funds be spent on professional  
               development, teacher induction, and supporting  
               implementation of state-adopted academic content standards.  
                Includes language that ensures that school districts and  
               community colleges to not have to remit funding to pay for  
               disallowed costs identified by audits.

             2)   Suspends the Proposition 98 split between K-12 education  
               and the California Community Colleges.
          Adult Education


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             1)   Establishes the Adult Education Block Grant program to  
               provide adult education services through regional  
               consortia.  The Superintendent of Public Instruction and  
               the Chancellor of the Community Colleges jointly approve  
               consortia, including governance structures and funding  
               allocations, with the advice of the Executive Director of  
               the State Board of Education. Of the total funding  
               appropriated for this program in the Budget Act of 2015,  
               the provision of funding to school district adult education  
               programs based on the maintenance-of-effort certification  
               is capped at $375 million, with the remainder allocated to  
               consortia or consortia members by the superintendent and  
               Chancellor, with the concurrence of the Executive Director  
               of the State Board of Education. The language also  
               specifies that joint powers agencies may participate as  
               adult education consortia members and that older adults may  
               access programs that relate to employment or helping  
               children succeed in elementary and secondary education.

             2)   Provides for the development and collection of outcome  
               data relating to the effectiveness of each adult education  
               consortia in meeting the educational and workforce training  
               needs of adults.  Authorizes the Chancellor and  
               Superintendent to collaborate on the development of common  
               outcome data collection, and requires them to report to the  
               Legislature by November 1, 2015 on progress

             3)   Changes references to apprenticeship programs in adult  
               education statutes to pre-apprenticeship training  
               activities conducted in coordination with apprenticeship  
               programs approved by the Division of Apprenticeship  
               Standards.  Pre-apprenticeship programs will provide job  
               preparation training courses that will lead into  
               apprenticeship programs
            Child Care and Development, Early Childhood Education
             1)   Effective July 1, 2015, provides a five percent increase  
               to the Standard Reimbursement Rate, which is used to pay  
               providers that contract with the State Department of  

             2)   Effective July 1, 2015, establishes the full-day State  
               Preschool rate for the Standard Reimbursement Rate.  


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             3)   Effective October 1, 2015, provides a 4.5 percent  
               increase, to the Regional Market Rate (RMR) for all  
               counties. The RMR is used to pay providers that accept  

             4)   Effective October 1, 2015, establishes the RMR ceilings,  
               at the greater of either the 85th percentile of the 2009  
               RMR survey, reduced by 10.11 percent; or, the 85th  
               percentile of the 2005 RMR survey. These ceilings must be  
               calculated to include the additional 4.5 across-the-board  
               increase, as discussed above. 

             5)   Increases, from 60 percent to 65 percent of the family  
               child care home rate, the reimbursement to license-exempt  
               child care providers, effective October 1, 2015.

             6)   Requires that adjustment factors for serving specified  
               infants, toddlers, children with exceptional needs,  
               children with severe disabilities, children at risk of  
               abuse or neglect, or limited-English speaking and  
               non-English speaking children, must apply to a full-day  
               State Preschool program when reimbursement rates are above  
               the full-day State Preschool rate. 

             7)   Shifts local educational agencies' "wrap care" into  
               Proposition 98 guarantee.

             8)   Requires CDE to convene a stakeholder group to provide  
               recommendations to streamline data and other reporting  
               requirements for child care and early learning providers,  
               and a separate stakeholder group to examine CalWORKs Stage  
               2, CalWORKs Stage 3, and Alternative Payment Program child  
               care contract requirements, program and fiscal audits, and  
               the process by which contractors are informed of, and  
               implement, new contract requirements.

             9)   Establishes income eligibility limits for state  
               subsidized child care at 70 percent of the state median  
               income that was in use for the 2007-08 fiscal year,  
               adjusted for family size.

             10)  Eliminates the July 1, 2018, sunset on the San Francisco  
               individualized county child care subsidy pilot program.


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             11)  Provides a cost-of-living adjustment to free and reduced  
               price meals served at schools and child care centers.

           K-12 Education
             1)   Appropriates $500 million in one-time funds for educator  
               effectiveness. $490 million is provided for beginning  
               teacher and administrator support and mentoring;  
               professional development, coaching, and support services  
               for teachers who have been identified as needing  
               improvement or additional support; professional development  
               for teachers and administrators that is aligned to state  
               academic content standards; and activities such as training  
               on mentoring and coaching certificated staff, and training  
               certificated staff to support effective teaching and  
               learning.  $10 million is provided to the K-12 High Speed  
               Network to provide professional development and training  
               related to network management and infrastructure.  As a  
               condition of receiving funds, local educational agencies  
               must develop and adopt a plan for expenditure of funds.  
               Funds may be expended through the 2017-18 fiscal year.

             2)   Establishes the California Career Technical Education  
               Incentive Grant Program, a competitive grant program  
               administered by the CDE to provide support for career  
               technical education in grades K-12, and provides $400  
               million in 2015-16, $300 million in 2016-17, and $200  
               million in 2017-18 for this program.  Provides competitive  
               grants in three size related spans (0-140, 140-550, over  
               550 average daily attendance).  Requires a  
               dollar-for-dollar match from each applicant.  Specifies  
               sources of this match, states that these sources do not  
               include funding received through the Career Pathways Trust  
               program.  Requires higher weighting of applicants who do  
               not have a Career Technical Education program; serve  
               low-income, English learner, and foster youth students;  
               have a high dropout rate; or are located in areas with high  
               unemployment rates.  Requires applicants to submit a three  
               year plan for the funds with specified elements.  Allows  
               various local education entities to apply jointly for this  
               funding.  Allows renewal grants under specified  


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             3)   Appropriates $145.5 million to the School Facilities  
               Emergency Repair Account, to fulfill the terms of the  
               Williams v. State of California settlement.

             4)   Appropriates $10 million in one-time funds to a county  
               office of education (or two applying jointly) to provide  
               technical assistance and to develop and disseminate  
               statewide resources that encourage and assist local  
               educational agencies and charter schools in establishing  
               and aligning schoolwide, data-driven systems of learning  
               and behavioral supports for the purpose of meeting the  
               needs of the state's diverse learners in the most inclusive  
               environments possible. 

             5)   Requires an annual appropriation of $2 million to the  
               Los Angeles County Office of Education (LACOE) for  
               professional development and leadership training in  
               anti-bias education and the creation of inclusive and  
               equitable schools. 

             6)   Appropriates $350,000 for support and development of  
               evaluation rubrics through a contract between the CDE and  
               the San Joaquin County Office of Education.

             7)   Appropriates $50,000 to the CDE for increased 2014-15  
               district claims for teacher dismissal costs.  

             8)   Establishes homeless students as a subgroup for purposes  
               of the unduplicated pupil counts used in Local Control and  
               Accountability Plans.

             9)   Includes intent language that, at full implementation of  
               the Local Control Funding Formula, local educational  
               agencies and charter schools report on the resources and  
               services provided to serve low-income students, English  
               learners, and foster youth, and requires that this  
               information be made available on the CDE website.

             10)  Shifts funding that has gone to home-to-school joint  
               powers agencies to the agencies' member school districts,  
               allows each agency to determine the amount of funding each  
               member district will receive, and requires that funding  
               received by each member district continue to be spent on  
               transportation services.


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             11)  Eliminates the transfer of funds from audit exceptions  
               to the Educational Telecommunications Fund.

             12)  Permits, through 2019-20, a phase-in of school district  
               contributions to routine restricted maintenance accounts  
               (no less than 2 percent by 2017-18 and 3 percent by  
               2020-21) and allows funds to be used for drought mitigation  
               purposes.  School districts that received an amount greater  
               than ten percent of school facilities funds from  
               voter-approved bonds are excluded from certain  

             13)  Increases the maximum allowable fee charged by the  
               Commission on Teacher Credentialing for the issuance and  
               renewal of teaching and service credentials from $70 to  

             14)  Expands eligibility for participation in the Charter  
               School Facilities Grant Program by allowing participation  
               by charter schools which enroll or are located in an  
               attendance area in which 55 percent (instead of 70 percent)  
               of students are eligible for free or reduced-price meals.  
               Allows that determination to be based solely on prior year  
               data.  Allows for participation of new charter schools in  
               the program.

             15)  Requires State Preschool programs to improve parental  
               knowledge about identification and treatment for  
               developmental disabilities, and requires that teachers be  
               provided staff development on behavioral strategies and  
               targeted interventions to improve kindergarten readiness.

             16)  Permits students who will turn five years old after the  
               eligibility window for Transitional Kindergarten to be  
               enrolled in Transitional Kindergarten before they turn five  
               years old, and states that this enrollment shall not  
               generate funding for average daily attendance or be  
               included in the enrollment or unduplicated pupil count for  
               purposes of the Local Control Funding Formula until those  
               students turn five years old.

             17)  Removes grade spans for pupil-to-teacher ratios in  
               independent study programs and requires calculations of the  


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               ratios to be based on average daily attendance rather than  

             18)  Extends the encumbrance period for funding for the  
               Career Pathways Trust program from 2014-15 to the 2016-17  
               fiscal year.

             19)  Authorizes the CDE to assess fees on publishers of  
               history/social science instructional materials when  
               submitting materials for state adoption review.

             20)  Adds two new approved mandates (Immunization  
               Records/Pertussis and Race to the Top) to the Mandates  
               Block Grant, and creates a consolidated category for  
               suspensions, expulsions, and expulsion appeals. 

             21)  Extends, until June 30, 2018, the authority of the  
               Inglewood Unified School District to sell property to repay  
               emergency loans to the state.

             22)  Extends the deadline for the State Board of Education to  
               adopt evaluation rubrics for one year, to October 1, 2016.

             23)  For the 2009-10 and 2010-11 fiscal year, requires that  
               certain allocations from the county Supplemental  
               Educational Revenue Augmentation Fund to be treated as  
               property taxes for purposes of calculating the ratio that  
               determined the pro rata share of the apportionment for a  
               basic aid school district that lost its basic aid status as  
               a result of required property tax transfers to charter  

             24)  Provides authority for the appropriation of Proposition  
               98 General Fund for support of special education programs  
               if the amount of property taxes provided for this purpose  
               from the dissolution of redevelopment agencies is less than  
               estimated amount reflected in the Budget Act of 2015.   
               Identifies funds in satisfaction of the federal special  
               education maintenance of effort.

             25)  Adjusts the LACOE and East San Gabriel Valley Special  
               Education Local Plan Area's (SELPA) LCFF calculations to  
               re-allocate the Home-to-School Transportation add-on for  
               special education transportation services from LACOE to the  


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               Home-to-School Transportation add-on of the SELPA's member  
               school districts. 

             26)  Adds "maintenance" to the list of activities for which  
               the contractual redevelopment agency pass-through payments  
               can be used, and removes the sunset on these provisions.


          Effect:  The funding related to the changes in this bill is  
          contained in the 2015-16 budget. In addition, this bill makes  
          multiple appropriations totaling $4.9 million.

          Support:   Unknown.
          Opposed:  Unknown.
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