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
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        |Author:   |Committee on Budget                                   |
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        |Version:  |August 25, 2015    Amended                            |
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        |Urgency:  |Yes                    |Fiscal:    |Yes              |
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        |Consultant|Anita Lee                                             |
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                            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.
        

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