BILL ANALYSIS                                                                                                                                                                                                    

                                                                     AB 104

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          (Without Reference to File)


          104 (Committee on Budget)

          As Amended  June 16, 2015

          Majority vote. Budget Bill Appropriation Takes Effect  

          |ASSEMBLY:  |      |(March 23,     |SENATE: |      |(June 19, 2015)  |
          |           |      |2015)          |        |      |                 |
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          |           |      |               |        |      |                 |
               (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.  


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           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  
          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  


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            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  


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            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  


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            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  


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            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  

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


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          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  

          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.


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          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  

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

          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  


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            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:  


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