BILL ANALYSIS Ó
SB 77
Page 1
SENATE THIRD READING
SB
77 (Committee on Budget and Fiscal Review)
As Amended June 16, 2015
Majority vote. Budget Bill Appropriation Takes Effect
Immediately
SENATE VOTE: Vote not relevant
SUMMARY: Makes various statutory changes and appropriations
regarding child care and early childhood education and K-14
education, necessary for the implementation of the Budget Act of
2015. Makes statutory changes to implement the 2015-16 Budget.
Specifically, this bill:
K-14 Education Crosscutting Issues.
1)Appropriates $3.8 billion in Proposition 98 (1988) one-time
and settle up funding to pay down the existing mandate
backlog. Of this, $3.2 billion is allocated to K-12 and over
$600 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. Includes
language that ensures that school districts and community
colleges to not have to remit funding to pay for disallowed
costs identified by audits.
2)Suspends the Proposition 98 split between K-12 education and
the California Community Colleges.
SB 77
Page 2
Adult Education.
1)Establishes the Adult Education Block Grant program to provide
adult education services through regional consortia. The
Superintendent of Public Instruction and the Chancellor of the
Community Colleges jointly approve consortia, including
governance structures and funding allocations, with the advice
of the Executive Director of the State Board of Education. Of
the total funding appropriated for this program in the Budget
Act of 2015, the provision of funding to school district adult
education programs based on the maintenance-of-effort
certification is capped at $375 million, with the remainder
allocated to consortia or consortia members by the
superintendent and Chancellor, with the concurrence of the
Executive Director of the State Board of Education. The
language also specifies that joint powers agencies may
participate as adult education consortia members and that
older adults may access programs that relate to employment or
helping children succeed in elementary and secondary
education.
2)Provides for the development and collection of outcome data
relating to the effectiveness of each adult education
consortia in meeting the educational and workforce training
needs of adults. Authorizes the Chancellor and Superintendent
to collaborate on the development of common outcome data
collection, and requires them to report to the Legislature by
November 1, 2015, on progress.
3)Changes references to apprenticeship programs in adult
education statutes to pre-apprenticeship training activities
conducted in coordination with apprenticeship programs
approved by the Division of Apprenticeship Standards.
Pre-apprenticeship programs will provide job preparation
training courses that will lead into apprenticeship programs.
SB 77
Page 3
Child Care and Development, Early Childhood Education.
1)Effective July 1, 2015, provides a 5% increase to the Standard
Reimbursement Rate, which is used to pay providers that
contract with the State Department of Education.
2)Effective July 1, 2015, establishes the full-day State
Preschool rate for the Standard Reimbursement Rate.
3)Effective October 1, 2015, provides a 4.5% increase, to the
Regional Market Rate (RMR) for all counties. The RMR is used
to pay providers that accept vouchers.
4)Effective October 1, 2015, establishes the RMR ceilings, at
the greater of either the 85th percentile of the 2009 RMR
survey, reduced by 10.11%; or, the 85th percentile of the 2005
RMR survey. These ceilings must be calculated to include the
additional 4.5 across-the-board increase, as discussed above.
5)Increases, from 60% to 65% of the family child care home rate,
the reimbursement to license-exempt child care providers,
effective October 1, 2015.
6)Requires that adjustment factors for serving specified
infants, toddlers, children with exceptional needs, children
with severe disabilities, children at risk of abuse or
neglect, or limited-English speaking and non-English speaking
children, must apply to a full-day State Preschool program
when reimbursement rates are above the full-day State
Preschool rate.
7)Shifts local educational agencies' "wrap care" into
Proposition 98 guarantee.
SB 77
Page 4
8)Requires California Department of Education (CDE) to convene a
stakeholder group to provide recommendations to streamline
data and other reporting requirements for child care and early
learning providers, and a separate stakeholder group to
examine CalWORKs Stage 2, CalWORKs Stage 3, and Alternative
Payment Program child care contract requirements, program and
fiscal audits, and the process by which contractors are
informed of, and implement, new contract requirements.
9)Establishes income eligibility limits for state subsidized
child care at 70% of the state median income that was in use
for the 2007-08 Fiscal Year, adjusted for family size.
10)Eliminates the July 1, 2018, sunset on the San Francisco
individualized county child care subsidy pilot program.
11)Provides a cost-of-living adjustment to free and reduced
price meals served at schools and child care centers.
K-12 Education.
1)Appropriates $500 million in one-time funds for educator
effectiveness. $490 million is provided for beginning teacher
and administrator support and mentoring; professional
development, coaching, and support services for teachers who
have been identified as needing improvement or additional
support; professional development for teachers and
administrators that is aligned to state academic content
standards; and activities such as training on mentoring and
coaching certificated staff, and training certificated staff
to support effective teaching and learning. $10 million is
provided to the K-12 High Speed Network to provide
SB 77
Page 5
professional development and training related to network
management and infrastructure. As a condition of receiving
funds, local educational agencies must develop and adopt a
plan for expenditure of funds. Funds may be expended through
the 2017-18 Fiscal Year.
2)Establishes the California Career Technical Education
Incentive Grant Program, a competitive grant program
administered by the CDE to provide support for career
technical education in grades K-12, and provides $400 million
in 2015-16, $300 million in 2016-17, and $200 million in
2017-18 for this program. Provides competitive grants in
three size related spans (0-140, 140-550, over 550 average
daily attendance). Requires a dollar-for-dollar match from
each applicant. Specifies sources of this match, states that
these sources do not include funding received through the
Career Pathways Trust program. Requires higher weighting of
applicants who do not have a Career Technical Education
program; serve low-income, English learner, and foster youth
students; have a high dropout rate; or are located in areas
with high unemployment rates. Requires applicants to submit a
three year plan for the funds with specified elements. Allows
various local education entities to apply jointly for this
funding. Allows renewal grants under specified circumstances.
3)Appropriates $145.5 million to the School Facilities Emergency
Repair Account, to fulfill the terms of the Williams v. State
of California settlement.
4)Appropriates $10 million in one-time funds to a county office
of education (or two applying jointly) to provide technical
assistance and to develop and disseminate statewide resources
that encourage and assist local educational agencies and
charter schools in establishing and aligning schoolwide,
data-driven systems of learning and behavioral supports for
the purpose of meeting the needs of the state's diverse
learners in the most inclusive environments possible.
SB 77
Page 6
5)Requires an annual appropriation of $2 million to the Los
Angeles County Office of Education (LACOE) for professional
development and leadership training in anti-bias education and
the creation of inclusive and equitable schools.
6)Appropriates $350,000 for support and development of
evaluation rubrics through a contract between the CDE and the
San Joaquin County Office of Education.
7)Appropriates $50,000 to the CDE for increased 2014-15 district
claims for teacher dismissal costs.
8)Establishes homeless students as a subgroup for purposes of
the unduplicated pupil counts used in Local Control and
Accountability Plans.
9)Includes intent language that, at full implementation of the
Local Control Funding Formula, local educational agencies and
charter schools report on the resources and services provided
to serve low-income students, English learners, and foster
youth, and requires that this information be made available on
the CDE Web site.
10)Shifts funding that has gone to home-to-school joint powers
agencies to the agencies' member school districts, allows each
agency to determine the amount of funding each member district
will receive, and requires that funding received by each
member district continue to be spent on transportation
services.
11)Eliminates the transfer of funds from audit exceptions to the
SB 77
Page 7
Educational Telecommunications Fund.
12)Permits, through 2019-20, a phase-in of school district
contributions to routine restricted maintenance accounts (no
less than 2% by 2017-18 and 3% by 2020-21) and allows funds to
be used for drought mitigation purposes. School districts
that received an amount greater than 10% of school facilities
funds from voter-approved bonds are excluded from certain
requirements.
13)Increases the maximum allowable fee charged by the Commission
on Teacher Credentialing for the issuance and renewal of
teaching and service credentials from $70 to $100.
14)Expands eligibility for participation in the Charter School
Facilities Grant Program by allowing participation by charter
schools which enroll or are located in an attendance area in
which 55% (instead of 70%) of students are eligible for free
or reduced-price meals. Allows that determination to be based
solely on prior year data. Allows for participation of new
charter schools in the program.
15)Requires State Preschool programs to improve parental
knowledge about identification and treatment for developmental
disabilities, and requires that teachers be provided staff
development on behavioral strategies and targeted
interventions to improve kindergarten readiness.
16)Permits students who will turn five years old after the
eligibility window for Transitional Kindergarten to be
enrolled in Transitional Kindergarten before they turn five
years old, and states that this enrollment shall not generate
funding for average daily attendance or be included in the
enrollment or unduplicated pupil count for purposes of the
SB 77
Page 8
Local Control Funding Formula until those students turn five
years old.
17)Removes grade spans for pupil-to-teacher ratios in
independent study programs and requires calculations of the
ratios to be based on average daily attendance rather than
enrollment.
18)Extends the encumbrance period for funding for the Career
Pathways Trust program from 2014-15 to the 2016-17 Fiscal
Year.
19)Authorizes the CDE to assess fees on publishers of
history/social science instructional materials when submitting
materials for state adoption review.
20)Adds two new approved mandates (Immunization
Records/Pertussis and Race to the Top) to the Mandates Block
Grant, and creates a consolidated category for suspensions,
expulsions, and expulsion appeals.
21)Extends, until June 30, 2018, the authority of the Inglewood
Unified School District to sell property to repay emergency
loans to the state.
22)Extends the deadline for the State Board of Education to
adopt evaluation rubrics for one year, to October 1, 2016.
23)For the 2009-10 and 2010-11 Fiscal Year, requires that
certain allocations from the county Supplemental Educational
Revenue Augmentation Fund to be treated as property taxes for
purposes of calculating the ratio that determined the pro rata
SB 77
Page 9
share of the apportionment for a basic aid school district
that lost its basic aid status as a result of required
property tax transfers to charter schools.
24)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 estimated
amount reflected in the Budget Act of 2015. Identifies funds
in satisfaction of the federal special education maintenance
of effort.
25)Adjusts the LACOE and East San Gabriel Valley Special
Education Local Plan Area's (SELPA) LCFF calculations to
re-allocate the Home-to-School Transportation add-on for
special education transportation services from LACOE to the
Home-to-School Transportation add-on of the SELPA's member
school districts.
26)Adds "maintenance" to the list of activities for which the
contractual redevelopment agency pass-through payments can be
used, and removes the sunset on these provisions.
FISCAL EFFECT: The funding related to the changes in this bill
is contained in the 2015-16 Budget. In addition, this bill makes
multiple appropriations totaling $4.9 million.
Support: Unknown
Opposed: Unknown
SB 77
Page 10
Analysis Prepared by:
Nicole Vazquez / BUDGET / (916) 319-2099 FN: 0001041