BILL ANALYSIS                                                                                                                                                                                                    




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          |SENATE RULES COMMITTEE            |                       AB 1600|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
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                                   THIRD READING 


          Bill No:  AB 1600
          Author:   Committee on Budget   
          Amended:  6/13/16 in Senate
          Vote:     21 

           SENATE BUDGET & FISCAL REVIEW COMMITTEE:  17-0, 6/13/16
           AYES:  Leno, Nielsen, Allen, Anderson, Beall, Block, Glazer,  
            Hancock, Mitchell, Monning, Moorlach, Nguyen, Pan, Pavley,  
            Roth, Stone, Wolk

           ASSEMBLY FLOOR:  Not relevant

           SUBJECT:   School finance:  education omnibus trailer bill


          SOURCE:    Author


          DIGEST:  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.

          ANALYSIS:  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  








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             standards.  

           2) Suspends the Proposition 98 split between K-12 education and  
             the California Community Colleges.
           
           Child Care and Development, Early Childhood Education

           3) Establishes, between January 1, 2017 and June 30, 2018, the  
             regional market rate (RMR), which is the reimbursement for  
             providers who accept vouchers, at the greater of: (a) the  
             75th 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.

           4) Updates, effective, July 1, 2018, the RMR to the 75th  
             percentile of the 2014 RMR.

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

           6) Increases the standard reimbursement rate, which is the  
             reimbursement for providers who contract with the Department  
             of Education, by 10 percent, beginning January 1, 2017.

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

           8) 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

           9) 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,  








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             English learner, or foster youth students.

           10)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.

           11)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  
             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.

           12)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.

           13)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.

           14)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.

           15)Allocates $20 million in one-time Proposition 98 funding for  








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             a new Charter School Start-up Grant program to provide  
             funding for new charter schools to support initial  
             operations.

           16)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.

           17)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  
             legislation.

           18)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.

           19)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.

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

           21)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.

           22)Provides $3 million in one-time Proposition 98 funding for  








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             the Department of Education to contract with an LEA to  
             initialize development of a new standardized account code  
             structure system.

           23)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.

           24)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. 

           25)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.

           26)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 Department of Education and  
             the San Joaquin County Office of Education.

           27)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.

           28)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  








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             youth in the county and 30 percent based on the number of  
             school districts.

           29)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).

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

           31)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.

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

           33)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.

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

           35)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. 









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          California Community Colleges

           36)Provides $23.8 million in 2009-10 Proposition 98 settle-up  
             funds for deferred maintenance, instructional materials, and  
             other activities.

          FISCAL EFFECT:   Appropriation:    Yes         Fiscal  
          Com.:YesLocal:   Yes

          According to the Senate Budget and Fiscal Review Committee, 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:   (Verified6/14/16)


          None received

          OPPOSITION:   (Verified6/14/16)


          None received


          Prepared by:Elisa Wynne / B. & F.R. / (916) 651-4103
          8/22/16 9:44:58
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