BILL ANALYSIS                                                                                                                                                                                                    

          |SENATE RULES COMMITTEE            |                        AB 104|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |

                                   THIRD READING 

          Bill No:  AB 104
          Author:   Committee on Budget
          AmendedAmended:6/16/15 in Senate
          Vote:     21  

           SENATE BUDGET & FISCAL REVIEW COMMITTEE:  15-1, 6/18/15
           AYES: Leno, Nielsen, Allen, Anderson, Beall, Block, Hancock,  
            Mitchell, Monning, Moorlach, Pan, Pavley, Roth, Stone, Wolk
           NOES: Nguyen

           ASSEMBLY FLOOR:  Not relevant

           SUBJECT:   Education finance: education omnibus trailer bill

          SOURCE:    Author

          DIGEST: 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 2015.  
          ANALYSIS: This bill makes statutory changes to implement the  
          2015-16 Budget Act. 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  


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              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

            3)  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.

            4)  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

            5)  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


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            Child Care and Development, Early Childhood Education

            6)  Provides, effective July 1, 2015, a five percent increase  
              to the Standard Reimbursement Rate, which is used to pay  
              providers that contract with the California Department of  
              Education (CDE).

            7)  Establishes, effective July 1, 2015, the full-day State  
              Preschool rate for the Standard Reimbursement Rate.  

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

            9)  Establishes, effective October 1, 2015, 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. 

            10) 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.

            11) 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. 

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

            13) 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  


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              the process by which contractors are informed of, and  
              implement, new contract requirements.

            14) 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  

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

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

           K-12 Education

            17) 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.

            18) 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,  


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              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 circumstances.  

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

            20) 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. 

            21) 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. 

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

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

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

            25) Includes intent language that, at full implementation of  
              the Local Control Funding Formula, local educational  
              agencies and charter schools report on the resources and  


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              services provided to serve low-income students, English  
              learners, and foster youth, and requires that this  
              information be made available on the CDE website.

            26) 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.

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

            28) 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 requirements.

            29) 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  

            30) 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.

            31) 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.

            32) 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  


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              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.

            33) Removes grade spans for pupil-to-teacher ratios in  
              independent study programs and requires calculations of the  
              ratios to be based on average daily attendance rather than  

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

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

            36) 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. 

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

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

            39) 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 schools.

            40) 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.   


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              Identifies funds in satisfaction of the federal special  
              education maintenance of effort.

            41) 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  
              Home-to-School Transportation add-on of the SELPA's member  
              school districts. 

            42) 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. 

          FISCAL EFFECT: Appropriation:      No          Fiscal  
          Com.:YesLocal:   No

          According to the Senate Budget and Fiscal Review Committee, 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:   (Verified6/17/15)

          None received

          OPPOSITION:   (Verified6/17/15)

          None received

          Prepared by:Elisa Wynne / B. & F.R. / (916) 651-4103
          6/18/15 18:51:33

                                   ****  END  ****



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