BILL ANALYSIS Ó AB 1846 Page 1 Date of Hearing: April 20, 2016 ASSEMBLY COMMITTEE ON EDUCATION Patrick O'Donnell, Chair AB 1846 (Lopez) - As Amended March 28, 2016 [Note: This bill was doubled referred to the Assembly Higher Education Committee and was heard as it relates to issues under its jurisdiction.] SUBJECT: Adult education consortium program SUMMARY: Appropriates $250 million from the General Fund to the Chancellor of the California Community Colleges and the California Department of Education (CDE) for ongoing support of the adult education consortium program. Finds and declares that according to the Regional Planning Report by the Chancellor of the California Community Colleges and the Superintendent of Public Instruction (SPI), an estimated 65 adult schools were closed between 2008 and 2013. Further finds that increasing the adult education consortium program to $750 million would restore adult education funding to its 2008 level. Expresses the intent of the Legislature to add $250 million annually to the $500 million appropriated annually to the adult education block grant program for a total of $750 million. EXISTING LAW: 1)Authorizes the establishment of adult school programs and AB 1846 Page 2 specifies eligibility criteria, programmatic requirements, and the manner in which school districts' adult education revenue limit per unit of average daily attendance (ADA) shall be determined. 2)Prohibits state apportionment to be made for any course or class not specified in law. 3)Defines "adult" as a person 18 years of age or older for a person who is not concurrently enrolled in a regular high school program. 4)Charges the California Community Colleges Chancellor's Office (CCCCO) and the CDE to jointly implement an adult education planning process; authorizes the CCCCO and the CDE to distribute $25 million to regional consortia to develop plans with the shared goal of better serving the educational needs of California's adult learners. 5)Establishes the Adult Education Block Grant Program and specifies the process for funding based on plans developed by regional consortia. Requires the SPI and the chancellor, with the advice of the executive director of the state board of education to, no later than July 31, 2015, certify, for each school district and COE, the amount of state funds required to be expended for adult education pursuant to the maintenance of effort (MOE) required under the Local Control Funding Formula (LCFF). Specifies that Adult Education Block Grant funds shall only be used for the following programs: a) Programs in elementary and secondary basic skills, including programs leading to a high school diploma or high school equivalency certificate. b) Programs for immigrants eligible for educational services in citizenship, English as a second language, and workforce preparation. c) Programs for adults, including, but not limited to, older adults, that are primarily related to entry or AB 1846 Page 3 reentry into the workforce. d) Programs for adults, including, but not limited to, older adults, that are primarily designed to develop knowledge and skills to assist elementary and secondary school children to succeed academically in school. e) Programs for adults with disabilities. f) Programs in career technical education that are short term in nature and have high employment potential. g) Programs offering preapprenticeship training activities conducted in coordination with one or more apprenticeship programs approved by the Division of Apprenticeship Standards for the occupation and geographic area. FISCAL EFFECT: Unknown COMMENTS: Background. Adult education in California is part of a large, complex, and diverse multi-provider system. It is a vital and integral part of the larger educational system that provides adults with the skills and education that enable them to earn a high school diploma or a general educational development certificate, become United States citizens, acquire specific job skills, learn English, and/or become independent and productive parents and members of their community. Enabling adults to acquire English skills also help parents to be more involved in their children's education. Adult education is provided by a number of delivery systems, but the two main providers are school districts and the California Community Colleges (CCCs). K-12 adult schools were funded by an adult education categorical program that, prior to budget reductions, received over $700 million annually. In 2013, the Governor proposed and the Legislature passed a new K-12 funding system that replaced revenue limits with a new base grant. LCFF incorporated most categorical program funds into the base grant and eliminated the categorical programs. School AB 1846 Page 4 districts choosing to continue their adult education programs would do so using their base funds. However, school districts and county offices of education were required to maintain the amount of funds expended for the adult education categorical program in fiscal year (FY) 2012-13 for two years, in FY 2013-14 and FY 2014-15. AB 86 Regional Consortia. Also in 2013, the budget provided $25 million for the development of regional consortia comprised of CCCs and K-12 school districts for the purpose of creating plans to integrate existing programs and determine how best to serve adult students within regions throughout the state (AB 86 (Budget Committee), Chapter 48, Statutes of 2013). Seventy regions were formed comprised of at least one CCC district and one or more K-12 school districts. Adult Education Block Grant Program. The FY 2015-16 Budget provided $500 million for the Adult Education Block Grant Program, enacted through the education budget trailer bill, AB 104 (Budget Committee), Chapter 13, Statutes of 2015. The program is built upon regional consortia established by AB 86. Beginning 2016-17, funds are distributed to each consortium by the SPI and the chancellor, with the advice of the Executive Director of the State Board of Education, based on 1) the amount of funds apportioned in the previous year; 2) a consortium's share of the statewide need for adult education; and 3) the consortium's effectiveness in meeting the educational needs of adults in the region based on available data. Funds are allocated according to a plan developed by each consortium. For the 2015-16 fiscal year, the trailer bill specified that up to $375 million shall be allocated to school districts and COEs based on a certification of the MOE required over the last two years. The remainder is allocated to regional consortia by the SPI and the chancellor, with concurrence from the Executive Director of the State Board of Education. The final amount awarded based on K-12 MOE totaled $337 million. Of the remaining amount, K-12 school districts received $63 million AB 1846 Page 5 while CCC districts received $100 million. Although K-12 adult schools received the bulk of the $500 million, CCCs are not disadvantaged as CCC noncredit programs continue to receive Full Time Equivalent Student (FTES) funding. The Governor proposes to continue the $500 million allocation for FY 2016-17. This bill intends to appropriate $250 million annually to the Adult Education Block Grant program. The author states that this appropriation will restore adult education funding back to the 2008 level, assuming that the Budget Act continues appropriation of $500 million. Staff notes that while the total may be equal to the 2008 funding level for K-12 programs; the $750 million will not be directed solely to K-12 adult schools. Committee amendment. This bill appropriates the funding to the AB 86 adult education consortium program, which was the planning process, instead of the Adult Education Block Grant Program. Staff recommends an amendment to correct the code section reference from Section 84830 to Section 84900. The author states: "For decades California has had the strongest commitment for adult education in the nation ensuring that adults have the ability to obtain the skills to enter the work force or pursue higher education. It was not until the recent recession in 2008 that adult education began to see significant cuts in funding, forcing thousands of students to discontinue their education. Several years later in 2013, after the first budget cuts, the legislature condensed the amount of programs offered which further disadvantaged communities who are truly in need of those services. AB 1846 Page 6 "According to the 2015 Adult Education Regional Planning report adult education in California is in high demand with an estimate that 15.3 million adults in need of adult educational programs that are currently offered. The demand for these programs has increasingly grown over the years particularly due to the sixty five schools that permanently shut their doors between the years of 2008 and 2013. The report goes further to highlight that with many of the recent changes to adult education funding; schools have been forced to shorten their hours of operation placing a major obstacle for working class students." REGISTERED SUPPORT / OPPOSITION: Support None on file Opposition None on file Analysis Prepared by:Sophia Kwong Kim / ED. / (916) 319-2087 AB 1846 Page 7