BILL ANALYSIS                                                                                                                                                                                                    



          SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW 
                              Senator Mark Leno, Chair
                                2015 - 2016  Regular 

          Bill No:            AB 1600         Hearing Date:    June 13,  
          2016
           ----------------------------------------------------------------- 
          |Author:   |Committee on Budget                                   |
          |----------+------------------------------------------------------|
          |Version:  |June 13, 2016    As amended                           |
           ----------------------------------------------------------------- 
           ---------------------------------------------------------------- 
          |Urgency:  |No                     |Fiscal:    |Yes              |
           ---------------------------------------------------------------- 
           ----------------------------------------------------------------- 
          |Consultant|Elisa Wynne                                           |
          |:         |                                                      |
           ----------------------------------------------------------------- 
          

                         Subject:  School Finance: Education


          Summary: This bill makes various statutory changes regarding child care  
          and early childhood education and K-14 education and  
          appropriates related funding, necessary for the implementation  
          of the Budget Act of 2016.  

          Proposed Law: This bill makes statutory changes to implement the  
          2016-17 budget. Specifically, this bill: 
          
           K-14 Education Crosscutting Issues.
           
          1)Provides $1.4 billion in Proposition 98 one-time and settle up  
            funding to pay down the existing mandate backlog. Of this,  
            $1.28 billion is allocated to K-12 local educational agencies  
            (LEAs) and approximately $106 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.  

          2)Suspends the Proposition 98 split between K-12 education and  
            the California Community Colleges.
           
            Child Care and Development, Early Childhood Education
           
          1)Between January 1, 2017 and June 30, 2018, establishes the  
            regional market rate (RMR), which is the reimbursement for  
            providers who accept vouchers, at the greater of: (a) the 75th  







          AB 1600 (Committee on Budget)                           Page 2  
          of ?
          
          
            percentile of the 2014 survey; (b) 104.5 percent of the 85th  
            percentile of the 2009 survey, deficited by 10.11 percent; or  
            (c) 104.5 percent of the 85th percentile of the 2005 survey.

          2)Effective, July 1, 2018, updates the RMR to the 75th  
            percentile of the 2014 RMR.

          3)Increases the license-exempt rate for providers from 65  
            percent to 70 percent, effective January 1, 2017. 

          4)Increases the standard reimbursement rate, which is the  
            reimbursement for providers who contract with the Department  
            of Education, by ten percent, beginning January 1, 2017.

          5)Establishes the income eligibility threshold for families to  
            qualify for subsidized child care at 70 percent of the state  
            median income of 2007. 

          6)Declares legislative intent to reimburse child care providers  
            at the 85th percentile of the most recent RMR; to update to  
            the most recent RMR ceiling, based on available funding; and  
            to increase the RMR ceilings, through the 2018-19 fiscal year,  
            to reflect increased costs to providers, as a result of state  
            minimum wage increases. 

           K-12 Education
                
          1)Provides $2.9 billion for continued implementation of the  
            Local Control Funding Formula, which provides base funding per  
            student to school districts and charter schools and additional  
            funding per student for enrollment of low-income, English  
            learner, or foster youth students.

          2)Allocates $200 million in one-time Proposition 98 funds for a  
            college readiness block grant to provide funds for LEAs to  
            support and prepare high school students, particularly  
            low-income, English learner, and foster youth students, to be  
            eligible for admission into a postsecondary institution and to  
            increase the four-year college-going rates of these students.

          3)Allocates $24 million in one-time Proposition 98 funds for the  
            California Collaborative on Educational Excellence (CCEE) to  
            conduct statewide training on the evaluation rubrics under  
            development by the State Board of Education and the local  








          AB 1600 (Committee on Budget)                           Page 3  
          of ?
          
          
            control and accountability plans.  A portion of the funds  
            would also be used to support a pilot program for the CCEE to  
            assist LEAs in improving pupil outcomes. Amends the process  
            for referral of an LEA to the CCEE to specify the CCEE shall  
            consult with the Superintendent when accepting requests or  
            referrals from LEAs for technical assistance. Clarifies that  
            charter schools are required to annually complete a local  
            control and accountability plan and annual update to the plan.

          4)Allocates $20 million in one-time Proposition 98 funds for the  
            Classified Employee Teacher Credentialing Program which would  
            provide grants for LEAs to assist their classified employees  
            in obtaining teaching credentials.

          5)Allocates $10 million in one-time General Fund to the  
            Commission on Teacher Credentialing to provide grants to  
            postsecondary institutions to create or expand four-year  
            integrated teacher preparation programs.

          6)Appropriates $5 million in one-time Proposition 98 funds for  
            the Commission on Teacher Credentialing to contract with an  
            LEA to establish the California Center for Teaching Careers  
            for the purpose of recruiting individuals into the teaching  
            profession, particularly in shortage areas of math, science,  
            special education, and bilingual education.

          7)Allocates $20 million in one-time Proposition 98 funding for a  
            new Charter School Start-up Grant program to provide funding  
            for new charter schools to support initial operations.

          8)Allocates $20 million in one-time Proposition 98 funding to be  
            allocated to the Orange County Department of Education to  
            provide grants to LEAs for the purpose of funding services or  
            practices aligned to the Multi-Tiered Systems of Support  
            framework under development.  Of this, up to $1 million may be  
            used to support LEA grantees.

          9)Allocates $18 million in one-time Proposition 98 funding for  
            dropout and truancy prevention programs to be allocated  
            pursuant the formula adopted for the distribution of  
            Proposition 47 Safe Neighborhoods and Schools Funds through  
            legislation adopted in the 2015-16 legislative cycle.   
            Includes intent language that Proposition 47 Safe  
            Neighborhoods and Schools Funds are distributed pursuant to  








          AB 1600 (Committee on Budget)                           Page 4  
          of ?
          
          
            legislation.

          10)Provides $9.5 million in one-time Proposition 98 funding for  
            the State Water Resources Control Board, in consultation with  
            the Department of Education, to award grants to LEAs to  
            improve access to, and quality of, drinking water in public  
            schools.

          11)Establishes the Mathematics Readiness Challenge program that  
            would allocate $6.4 million in federal Title II carryover  
            funding for partnerships between LEAs and postsecondary  
            institutions for activities designed to reduce mathematics  
            remediation rates at the California State University.

          12)Appropriates $6.6 million in one-time Proposition 98 funding  
            for the California School Information Services program.

          13)Appropriates $3.5 million in one-time Proposition 98 funding  
            for the operations of the K-12 High Speed Network (HSN) and  
            requires that the Department of Education provide  
            three-quarters of the state's funding for the K-12 HSN by  
            August of each year.

          14)Provides $3 million in one-time Proposition 98 funding for  
            the Department of Education to contract with an LEA to  
            initialize development of a new standardized account code  
            structure system.

          15)Allocates $2 million in one-time Proposition 98 funding for  
            the purpose of providing school breakfast program startup  
            grants in the 2017-18 and 2018-19 fiscal years.

          16)Provides $1 million in one-time Proposition 98 funding to the  
            Los Angeles County Office of Education (LACOE) to contract  
            with Special Olympics of Northern and Southern California to  
            expand the Special Olympics Unified Strategy for Schools. 

          17)Adjusts the Local Control Funding Formula for the San  
            Francisco Unified School District to include an additional  
            $3.5 million on an ongoing basis to contract with the  
            Exploratorium to provide statewide professional development  
            and resources for the implementation of the Next Generation  
            Science Standards.









          AB 1600 (Committee on Budget)                           Page 5  
          of ?
          
          
          18)Provides $500,000 annually for three years (2016-17, 2017-18,  
            and 2018-19) for support and development of evaluation rubrics  
            and the School Accountability Report Card through a contract  
            between the CDE and the San Joaquin County Office of  
            Education.

          19)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 the  
            estimated amount reflected in the Budget Act of 2016.   
            Appropriates up to $27.4 million in one-time Proposition 98  
            funds for support of special education programs to backfill  
            for a reduction in property taxes provided for this purpose  
            related to the elimination of the Triple Flip.

          20)Provides an allocation formula for the Foster Youth Services  
            Coordinating Program funds commencing in the 2016-17 fiscal  
            year that includes a base grant of $75,000 for each  
            participating county office of education, with the formula  
            allocating 70 percent of funds based on the number of foster  
            youth in the county and 30 percent based on the number of  
            school districts.

          21)Allows the Superintendent of Public Instruction flexibility  
            in allocating funding to LEAs for the Career Technical  
            Education Incentive Grant program and allows the Department of  
            Education to determine if grantees met local match  
            requirements and reduce funding allocations, if necessary.  
            Appropriates $7.8 million in one-time Proposition 98 funding  
            for the Career Technical Education Incentive Grant Program.  
            This is a technical adjustment and does not change the total  
            amount of funding provided for this program for use in 2016-17  
            ($300 million).

          22)Eliminates a requirement that prohibits former employees of  
            local educational agencies from working for a non-public  
            agency which provides services such as mental health, behavior  
            specialists, and autism services to students through contracts  
            with local educational agencies for 365 days.

          23)Defines the term "electronic file", defines which records can  
            be maintained as electronic files, and specifies that  
            electronic files may be used for audit purposes.








          AB 1600 (Committee on Budget)                           Page 6  
          of ?
          
          

          24)Provides for a study to be completed on the costs of full and  
            part-day kindergarten programs and recommendations for  
            incentivizing full-day programs.

          25)Extends the authority of the Superintendent of Public  
            Instruction, with approval of the State Board of Education, to  
            suspend calculation of the Academic Performance Index for the  
            2015-16 fiscal year.

          26)Reflects anticipated changes in funding for the Out-of-Home  
            Care program for foster students with exceptional needs.

          27)States legislative intent that the Department of Education,  
            where feasible, ensure that future California computer-based  
            assessments utilize the Smarter Balanced Technical Hosting  
            Solution as the technology platform and system for delivering  
            assessments. 

           California Community Colleges
           
          1)Provides $23.8 million in 2009-10 Proposition 98 settle-up  
            funds for deferred maintenance, instructional materials, and  
            other activities.
          
          Fiscal  
          Effect:  The funding related to the changes in this bill is contained  
          in the 2016-17 budget. In addition, this bill appropriates  
          funding for K-14 education programs, totaling approximately $4.7  
          billion.
          
          Support: None on file.
          
          Opposed: None on file.
          

          
                                      -- END --