BILL ANALYSIS Ó SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW Senator Mark Leno, Chair 2015 - 2016 Regular Bill No: AB 128 Hearing Date: August 27, 2015 ----------------------------------------------------------------- |Author: |Committee on Budget | |----------+------------------------------------------------------| |Version: |August 25, 2015 Amended | ----------------------------------------------------------------- ---------------------------------------------------------------- |Urgency: |Yes |Fiscal: |Yes | ---------------------------------------------------------------- ----------------------------------------------------------------- |Consultant|Anita Lee | |: | | ----------------------------------------------------------------- Subject: Education finance. Summary: This bill provides statutory changes and clean-up necessary to enact education-related provisions of the Budget Act of 2015. Background and Proposed Law: AB 128 makes statutory changes necessary to implement the Budget Act of 2015. These changes provide clarification and technical corrections to trailer bills enacted in June 2015. Higher Education 1.Middle Class Scholarship. Existing law specifies the award amounts for eligible students, with family incomes of $150,000 or less, to be 10 percent to 40 percent of the mandatory system-wide tuition and fees for an academic year for students. The 2015 Budget Act adjusts the income eligibility limits in future years based on inflation. This bill makes similar adjustments to the tuition discount for students of various income eligibility limits, and requires the California Student Aid Commission to conduct an annual calculation to ensure students receive tuition discounts between 40 percent and 10 percent, based on their income. 2.Eligibility Study. This bill requires the Director of the Office of Planning and Research (OPR) to conduct an eligibility study to evaluate the admissions policies used by the University of California (UC) and California State University (CSU). Under this bill, the Director must convene a workgroup that includes representatives from UC, CSU, the Department of Education, Department of Finance, and the Legislative Analyst's Office (LAO) AB 128 (Committee on Budget) Page 2 of ? to consider the overall approach of the study. In addition, this bill requires OPR to submit a report by December 1, 2016, on various factors, including the number of students eligible for admissions by race, gender, ethnicity, region and income; a description of whether the UC and CSU are admitting students as described in the Master Plan for Higher Education, and any adjustments UC and CSU have made, or plan to make, to their admissions policies. The 2015 Budget Act appropriated $1 million for this study but did not determine which entity would conduct the study. 3.CSU Doctor of Nursing Practice Evaluation Report. Existing law requires the CSU, Department of Finance, and the LAO to jointly conduct a statewide evaluation of the CSU Doctor of Nursing Practice Evaluation, and report to the Legislature and the Governor by January 1, 2017, on various factors, including the number of programs implemented, the extent to which they are addressing state needs for training doctorally-prepared nurses, and information on employment and job placement of students and graduates, among others. This bill will implement changes to the process and the timing of the report. Specifically, it requires the CSU to conduct the evaluation and report to the Legislature by March 1, 2016, and requires the LAO to submit a report with recommendations to the Legislature by January 1, 2017, for the degree pilot program, including whether or not the program should be continued or modified. 4.California State University Early Start Program Report. Existing law requires the LAO to report, starting on January 1, 2014, and every even-numbered year thereafter by July 1, on the impact the CSU Early Start Program on student mathematics and English proficiency. This report requirement sunsets on July 1, 2018. This bill changes the reporting date for the LAO's next analysis of the program from July 1, 2016, to January 1, 2018, to allow for more time to collect data. Child Care and Development, Early Childhood Education 5.San Mateo County Individualized Child Care Subsidy Plan. AB 260 (Gordon), Chapter 731, Statutes of 2013, extends, until July 1, 2018, the San Mateo County individualized child care subsidy plan, which allows Title 5 child care providers in the county to supersede state requirements in factors such as eligibility criteria, fees, reimbursement rates, and interagency agreements that allow flexible transfer of funds among agencies. Under AB 128 (Committee on Budget) Page 3 of ? existing law, and until January 1, 2018, the county must submit an annual report to the Legislature, Department of Social Services, and Department of Education that summarizes the county's ability to maximize funds and improve child care in the county. This bill eliminates the January 1, 2018 sunset for the county's annual reporting requirement, makes the reporting requirement permanent, and makes the San Mateo County child care subsidy plan permanent. K-12 Education 6.Educator Effectiveness Funding. Current statute, (AB 104 (Committee on Budget) Section 58, Chapter 13, Statutes of 2015) appropriated $490 million in one-time Proposition 98 General Fund to school districts, county offices of education, charter schools and state special schools to be distributed in an equal amount per certificated staff in the 2014-15 fiscal year. These funds may be used for beginning teacher support and mentoring, professional development, and improving teacher quality and effectiveness. This bill would clarify the formula for allocation of funds by specifying that they are to be appropriated in an equal amount per full-time equivalent certificated staff and using data counts from the California Longitudinal Pupil Achievement Data System. Fiscal Effect: The funding related to the changes in this bill is contained in the 2015 budget. In addition, this bill will adjust $50.8 million federal funds with $50.8 million General Fund from the Alternative Payment and CalWORKs Stage 3 programs. This adjustment will maintain existing contract funding ratios in the General Child Care program. Support: None on file. Opposed: None on file. -- END --