BILL ANALYSIS                                                                                                                                                                                                    Ó




           SENATE COMMITTEE ON EDUCATION
                              Senator Carol Liu, Chair
                                2015 - 2016  Regular 

           Bill No:             SB 416             
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           |Author:    |Huff                                                 |
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           |Version:   |April 6, 2015                               Hearing  |
           |           |Date:    April 8, 2015                               |
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           |Urgency:   |No                     |Fiscal:    |Yes              |
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           |Consultant:|Lenin Del Castillo                                   |
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           Subject:  Public schools:  repeal of funding programs

             SUMMARY
           
           This bill repeals numerous provisions of the Education Code  
           for categorical programs that are considered obsolete or  
           unnecessary in light of the passage of recent Local Control  
           Funding Formula (LCFF) legislation.

             BACKGROUND
           
           The LCFF, enacted as part of the 2013-14 Budget Act, was a  
           significant reform to the state's system of financing K-12  
           public schools.  It replaces the prior system of revenue  
           limits and restricted funding for a multitude of categorical  
           programs with a new funding formula that provides base funding  
           for the core educational needs of all students and  
           supplemental funding for the additional educational needs of  
           low-income students, English learners, and foster youth.  
           Because the LCFF funds have limited spending restrictions,  
           local education agencies (LEAs) have considerable flexibility  
           to direct LCFF resources to best meet their students' needs. 

           Although local education agencies have considerably more  
           flexibility in how they spend their resources under LCFF  
           compared to the previous funding system, the law requires a  
           school district, county office of education, or charter  








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           school:

                "...to increase or improve services for unduplicated  
           pupils [low-
                income students, English learners, and foster youth]  
           in proportion to 
                the increase in funds apportioned on the basis of  
           the number and 
                concentration of unduplicated pupils in the school  
           district, county 
                office of education, or charter school."

           Under the old system, revenue limits provided LEAs with  
           discretionary (unrestricted) funding for general education  
           purposes, and categorical program (restricted) funding was  
           provided for specialized purposes, with each program having  
           unique allocation and spending requirements.  Revenue limits  
           made up about two-thirds of state funding for schools, while  
           categorical program funding made up the remaining one-third  
           portion. For some time, that system was criticized as being  
           too state-driven, bureaucratic, complex, inequitable, and  
           based on outdated allocation methods that did not reflect  
           current student needs.


           To ensure accountability for Local Control Formula Funds  
           (LCFF), the state also mandated that each local education  
           agency (LEA) develop a local control and accountability plan  
           (LCAP) that identifies locally determined goals, actions,  
           services, and expenditures of LCFF funds for each school year  
           in support of the state educational priorities that are  
           specified in statute, as well as any additional local  
           priorities.  School district LCAPs are subject to review and  
           approval by county offices of education.  Statute established  
           a process for districts to receive technical assistance  
           related to their LCAP.  The Superintendent of Public  
           Instruction (SPI) is authorized to intervene in a struggling  
           school district under certain conditions.

             ANALYSIS
           
           This bill would repeal numerous provisions of the Education  
           Code for categorical programs that are considered obsolete or  
           unnecessary in light of the passage of the LCFF.  Below are  








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           the bill sections and the general subject matter of the  
           proposed changes. 

              1.   Youth conservation program (SEC. 1)

              2.   Technical, agricultural, and natural resource  
                conservation schools (SEC. 2)

              3.   Cosmetology courses (SEC. 3)

              4.   Arts work visual and performing arts education (SEC.  
                4)

              5.   Schoolbus clean fuel and efficiency demonstration  
                (SEC. 5)

              6.   School safety block grant (SEC. 6)

              7.   School safety violence protection (SEC. 7)

              8.   Foster children educational services (SEC. 8)

              9.   Revenue limit adjustments for State Teachers'  
                Retirement and unemployment insurance (SEC. 9)

              10.  National board certification incentives (SEC. 10)

              11.  Education technology staff development (SEC. 11)

              12.  Education technology (SEC. 12)

              13.  Bilingual education (SEC. 13)

              14.  Mathematics improvement programs (SEC. 14)

              15.  Single gender academies program (SEC. 15)

              16.  State instructional materials (SEC. 16)  

           STAFF COMMENTS
           
           1.   Need for the bill.  According to the author's office,  
                this bill would remove various Education Code Sections  
                that remain on the books despite being rendered obsolete  








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                by the enactment of the Local Control Funding Formula  
                (LCFF).  The LCFF removed funding for a number of  
                categorical programs which still remain codified in the  
                Education Code.

           2.   Previous LCFF clean-up legislation.  SB 587 (Emmerson,  
                2013) was the genesis for Chapter 923, Statutes of 2014  
                (SB 971, Huff).  SB 587 was amended at the end of session  
                in 2013 to incorporate changes to the Education Code in  
                light of the passage of LCFF.  According to Senator  
                Emmerson's office at the time, SB 587 was to begin the  
                discussion amongst all parties, to achieve consensus,  
                about sections of the Education Code that could possibly  
                be repealed or modified.  The elements of SB 587 were  
                originally drafted by the Department of Finance (DOF),  
                and were a first attempt to "clean up" the Education  
                Code; however, these provisions were viewed through the  
                prism of DOF's perspective on the implementation of LCFF  
                (from DOF's perspective almost everything was  
                discretionary), and not on the merits of each statute and  
                the underlying intent.  

                In the Fall of 2013; the Department of Finance,  
                California Department of Education, and Senate  
                legislative staff met multiple times to discuss elements  
                that could be part of SB 587 through a consensus  
                approach.  The discussions were intended to ascertain (1)  
                whether the actions proposed were consistent with LCFF,  
                (2) the bill does not impede pending legislation or  
                legislative discussions, (3) the bill did not impact past  
                or pending judicial actions, and (4) determine whether  
                any of the proposed changes could lead to any unintended  
                consequences at either a programmatic, budget or auditing  
                level.  SB 587 was never heard by this Committee.

                SB 971 was originally introduced by Senator Cannella in  
                2014 and subsequently authored by Senator Huff.  The  
                measure included many of the provisions from SB 587.   
                While the process for determining what sections should  
                remain in law in light of LCFF will likely take multiple  
                pieces of legislation over a period of time, SB 971 was a  
                solid first step in this regard.

           3.   Committee amendments.  Building on the efforts with SB  








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                587 and SB 971 and also based on recent discussions with  
                various stakeholders, staff recommends an amendment to  
                remove the following sections from the bill:  SEC. 8  
                (Foster children educational services), SEC. 10 (National  
                board certification incentives), and SEC. 16 (State  
                instructional materials).  Staff also recommends an  
                amendment to SEC. 13 (Bilingual education) to provide  
                that only Article 1 of Chapter 7 (commencing with Section  
                52130) regarding the Impacted Languages Act of 1984 is  
                repealed.

             SUPPORT
           
           California School Boards Association (sponsor)

             OPPOSITION
            
            None received.

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