BILL ANALYSIS Ó AB 104 Page 1 (Without Reference to File) CONCURRENCE IN SENATE AMENDMENTS AB 104 (Committee on Budget) As Amended June 16, 2015 Majority vote. Budget Bill Appropriation Takes Effect Immediately -------------------------------------------------------------------- |ASSEMBLY: | |(March 23, |SENATE: | |(June 19, 2015) | | | |2015) | | | | | | | | | | | | | | | | | | -------------------------------------------------------------------- (vote not relevant) (vote not available) Original Committee Reference: BUDGET SUMMARY: 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. Makes statutory changes to implement the 2015-16 Budget. Specifically, this bill: K-14 Education Crosscutting Issues. AB 104 Page 2 1)Appropriates $3.8 billion in Proposition 98 (1988) 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. 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 AB 104 Page 3 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 5% increase to the Standard Reimbursement Rate, which is used to pay providers that contract with the State Department of Education. 2)Effective July 1, 2015, establishes the full-day State Preschool rate for the Standard Reimbursement Rate. 3)Effective October 1, 2015, provides a 4.5% increase, to the Regional Market Rate (RMR) for all counties. The RMR is used to pay providers that accept vouchers. 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%; 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% to 65% 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 AB 104 Page 4 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 California Department of Education (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% 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. 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 AB 104 Page 5 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 circumstances. 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 AB 104 Page 6 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 Web site. 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. 11)Eliminates the transfer of funds from audit exceptions to the Educational Telecommunications Fund. AB 104 Page 7 12)Permits, through 2019-20, a phase-in of school district contributions to routine restricted maintenance accounts (no less than 2% by 2017-18 and 3% by 2020-21) and allows funds to be used for drought mitigation purposes. School districts that received an amount greater than 10% of school facilities funds from voter-approved bonds are excluded from certain requirements. 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 $100. 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% (instead of 70%) 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. AB 104 Page 8 17)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 enrollment. 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 schools. 24)Provides authority for the appropriation of Proposition 98 General Fund for support of special education programs if the AB 104 Page 9 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 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. FISCAL 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 Analysis Prepared by: Nicole Vazquez / BUDGET / (916) 319-2099 FN: 0000989 AB 104 Page 10