BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  July 15, 2015


                           ASSEMBLY COMMITTEE ON EDUCATION


                              Patrick O'Donnell, Chair


          SB  
          786 (Allen) - As Amended July 6, 2015


          SENATE VOTE:  Vote not relevant


          SUBJECT:  Adult education: regional consortia.


          SUMMARY:  Requires the Superintendent of Public Instruction  
          (SPI) and the chancellor of the California Community Colleges to  
          certify the amount of funds expended by joint powers authority  
          (JPA) comprised of a community college, school district, county  
          office of education (COE) for the purpose of determining Adult  
          Education Block Grant Program funding.  Specifically, this bill:


          1)Adds JPAs to the provisions that do the following:


             a)   Requires the SPI and the chancellor of the California  
               Community Colleges to certify for each school district and  
               COE the amount of state funds required to be expended for  
               adult education in the local control funding formula  
               (LCFF).


             b)   Specifies the allocations of funds if the total amount  
               certified for school districts and COEs is less than $375  








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               million.


             c)   Specifies the allocations of funds if the total amount  
               certified for school districts and COEs is more than $375  
               million. 


          2)Authorizes the SPI and the chancellor to certify and apportion  
            funds after the dates required for 2015-16 maintenance of  
            effort (MOE) funding for a JPA.  


          EXISTING LAW:   


          1)Authorizes the establishment of adult school programs and  
            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 California Department of Education (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; and, specifies that the following five areas are to  
            be addressed in the plans:  

             a)   Elementary and secondary basic skills, including classes  








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               required for a high school diploma.
             b)   Classes and courses for immigrants in English as a  
               second language, citizenship, and workforce preparations.
             c)   Education programs for adults with disabilities.
             d)   Short-term career technical education programs with high  
               employment potential.
             e)   Programs for apprentices.  

          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 MOE required  
            under the LCFF.



          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.  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 $600 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  








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          grant - LCFF.  LCFF incorporated most categorical program funds  
          into the base grant and eliminated the categorical programs.   
          School districts choosing to continue their adult education  
          programs would do so using their base funds.  However, school  
          districts and COEs 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 will be 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.  The  
          planning consortia established by AB 86 included only school  
          districts and CCCs, although COEs, regional occupational centers  
          and other private and public agencies also participated in the  
          planning process.  AB 104 extended membership of regional  
          consortia to COEs and JPAs.  For the 2015-16 fiscal year, the  
          trailer bill specifies that up to $375 million shall be  
          allocated to school districts and COEs based on a certification  








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          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.    


          What does this bill do?  This bill inserts JPAs in all  
          provisions relating to funding for school districts and COEs for  
          the 2015-16 year.  The intent of the bill is to make JPAs  
          eligible for funding in 2015-16 based on their LCFF MOE  
          requirements.  


          What are JPAs?  Existing law authorizes the establishment of a  
          regional occupational center or program (ROC/P) joint powers  
          agencies by two or more school districts, with the consent of  
          the State Board of Education and the county superintendent of  
          schools.  There are approximately 26 JPAs in the state.  JPAs  
          receive funding from a variety of sources, including prior state  
          ROC/P funding as well as contributions from each participating  
          school district.  JPAs provide career technical education (CTE)  
          programs to high school students and some to adult students.   
          Current law finds and declares that vocational training  
          resources provided through ROC/Ps should be prioritized for  
          pupils enrolled in high school.  The statute also requires that  
          beginning in the 2011-12 fiscal year, ROC/Ps may not claim more  
          than 10% of the state ADA for students not enrolled in grades 9  
          through 12.  With LCFF, the ROC/P categorical program has been  
          eliminated, ROC/P funds have been incorporated into the LCFF  
          base grants and local educational agencies now receive an  
          increase in their base funding for students in grades 9-12 for  
          career or college readiness.         

          It is unclear whether this bill will result in MOE dollars for  
          JPAs.  The bill requires the SPI and the chancellor to certify a  
          JPA's MOE.  The MOE established by the trailer bill is based on  
          funding previously received by school districts and COEs through  
          the adult education categorical program.  Some JPAs may have  
          received adult education categorical program funding through  








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          participating school districts.  If those school districts claim  
          the MOE, allowing these JPAs to also certify a MOE may result in  
          double reporting and claims.  It is highly likely that most JPAs  
          have not received adult education categorical funding, and as  
          such, do not have MOEs to certify.  

          This bill was introduced on behalf of the Southern California  
          Regional Occupational Center (SoCal ROC).  According to the  
          author, SoCal ROC provides CTE to more than 2,400 adults from  
          more than 60 cities throughout Los Angeles and Orange counties  
          and will experience more than $3 million reduction in its  
          2015-16 budget absent additional funding.  SoCal ROC received  
          approximately $3.4 million in ROC/P funds, not adult education  
          program funds, which Torrance Unified School District received  
          from CDE and passed through to SoCal ROC to serve adult  
          students.  With the elimination of ROC/P funds, SoCal ROC is  
          seeking alternative funding.      
              
          Budget process.  SoCal ROC attempted to secure funding through  
          the budget process.  The Senate Budget Subcommittee #1 on  
          Education adopted a placeholder to express its intent to enable  
          SoCal ROC to continue to receive funding for providing adult  
          education.  The Budget Conference Committee did not adopt the  
          Senate version and instead adopted the language in the trailer  
          bill allowing JPAs to become members of adult education regional  
          consortia.  JPAs have an opportunity to receive direct Adult  
          Education Block Grant Program funding if the regional consortia  
          plans include JPAs.  Alternatively, local educational agencies  
          who are members of JPAs may pass through Adult Education Block  
          Grant Program funding at their local discretion to JPAs that  
          provide adult education on their behalf.  The Committee may wish  
          to consider the extent to which this bill is consistent with the  
          Budget agreement signed by the Governor.  


          Suggested amendment.  It is unclear how many JPAs are already  
          members of regional consortia.  Since the authority was made  
          explicit only recently through its enactment in the trailer  
          bill, In order to give JPAs an opportunity to receive 2015-16  








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          MOE funding, staff recommends authorizing regional consortia to  
          amend their plans to incorporate JPAs.  The trailer bill  
          specifies that the plans developed by regional consortia  
          pursuant to AB 86 are in effect for the 2015-16 through 2017-18  
          fiscal years.      

          Author's amendment.  The author requests the Committee to adopt  
          an urgency clause.  The author states that the urgency clause is  
          needed in order to enable any JPA participating in an adult  
          education consortium to comply with the current year statutory  
          deadlines that must be met for purposes of establishing the  
          JPA's MOE level.


          Prior related legislation.  AB 2216 (Muratsuchi), would have  
          extended by two years the MOE requirement for school districts  
          to spend at least as much on ROC/Ps as they did in the 2012-13  
          from 2014-15 to 2016-17.  The bill was held in the Senate  
          Appropriations Committee suspense file in 2014.  





          REGISTERED SUPPORT / OPPOSITION:




          Support


          California Manufacturers & Technology Association


          Patrick Furey, Mayor, City of Torrance 


          Southern California Regional Occupational Center 








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          South Bay Workforce Investment Board


          Torrance Area Chamber of Commerce


          TACC Governmental Affairs Policy Group


          Numerous individuals







          Opposition


          None on file




          Analysis Prepared by:Sophia Kwong Kim / ED. / (916)  
          319-2087