BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  August 26, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          SB 786  
          (Allen) - As Amended August 17, 2015


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          Urgency:  Yes State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill requires the California Community College Chancellor's  
          Office (CCCCO) and the Superintendent of Public Instruction  
          (SPI) to certify, upon request from a Joint Powers Authority  
          (JPA), the amount of state funds expended by the JPA for adult  








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          career technical education (CTE) in the 2012-13 fiscal year, for  
          purposes of determining Adult Education Block Grant Program  
          funding. Specifically, this bill: 


          1)Specifies, if the CCCCO and the SPI certify that a JPA  
            expended 40% or more of the JPA's total state funding in  
            2012-13 for adult CTE, the JPA is deemed to have expended  
            state funds for adult education for purposes of determining  
            their share of Adult Education Block Grant Program funding.


          2)Requires the CCCCO and the SPI to apportion funds directly to  
            the JPA from the Adult Education Block Grant appropriation in  
            the 2015 Budget Act in an amount equal to the amount certified  
            for adult CTE.  


          3)Requires the JPA to be a member of an adult education  
            consortium as a condition of receipt of funds. 


          FISCAL EFFECT:


          This bill could result in a redirection of up to $38.1 million  
          (Proposition 98/GF) from the Adult Education Block Grant Program  
          to support the loss of regional occupation center or program  
          (ROC/P) funds for any JPA that used at least 40% of their funds  
          to provide adult CTE.  There are approximately 26 JPAs in the  
          state. It is not clear how many meet the 40% adult CTE spending  
          requirement in the bill.  At least one JPA, the Southern  
          California Regional Occupational Center (SoCal ROC) appears to  
          meet these criteria at a cost of approximately $3.4 million.


          The 2015-16 Budget Act provides a total of $500 million for the  
          Adult Education Block Grant Program.  Of this amount, the budget  
          set aside up to $375 million for school districts to maintain  








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          prior year adult education spending levels. According to the  
          Department of Finance, $336.9 million of the $500 million has  
          been certified for this purpose. Existing law specifies the  
          remaining $38.1 million shall be allocated to each adult  
          education consortium based on the region's share of statewide  
          need.  Any funds certified for purposes of this bill will reduce  
          overall funding for adult education consortia. 


          


          COMMENTS:


          1)Background on JPAs. Existing law authorizes the establishment  
            of an ROC/P JPA by two or more school districts, with the  
            consent of the State Board of Education and the county  
            superintendent of schools.  Theses programs provide career  
            technical education (CTE) to high school students and some  
            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.  



            The Local Control Funding Formula eliminated approximately 40  
            categorical programs, including dedicated funding for ROC/Ps.  
            ROC/P funds were 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. 


                    









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          2)Background on Adult Education.  Prior to 2008-09, school  
            districts operating adult schools received dedicated  
            Proposition 98 categorical funding (approximately $635 million  
            annually). In 2008-09, in response to the recession, the  
            Legislature granted categorical flexibility, allowing  
            districts to use restricted funds for any educational purpose.  
            In order to protect adult education programs as the state  
            transitioned to LCFF, the state required maintenance-of-effort  
            (MOE) to ensure school districts continued to expend the same  
            amount of funds on adult education as they had in 2012-13  
            through the 2014-15 fiscal years. Additionally, the budget  
            provided $25 million for the development of regional consortia  
            comprised of CCCs and K-12 school districts to determine how  
            best to serve adult students within regions throughout the  
            state.  



          3)Purpose.  This bill seeks to provide at least one JPA, SoCal  
            ROC, with adult education maintenance of effort (MOE) funds  
            from the Adult Education Block Grant to supplement their loss  
            of regional occupation center or program (ROC/P) categorical  
            program funds. 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.  ROC/P funds passed-through  
            from Torrance Unified School District were the primary source  
            of funding for these adult students. 



            Under LCFF, Torrance is no longer required to pass these funds  
            through since they have been incorporated into their LCFF base  
            grant. As a result, SoCal ROC lost approximately $3.4 million  
            in ROC/P funding.  The author is seeking to supplement this  
            loss with adult education MOE funding.  SoCal ROC is in a  
            unique position because they chose to use a significant  
            portion of their ROC/P funding to support a large number of  
            adult students from outside their member JPA's jurisdictions.   








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            They argue they should be able to access funding set aside to  
            maintain services for adults. 





          4)Current law options for funding.  The 2015 budget package  
            authorized JPAs to be members of the consortia, and as members  
            of the consortia, the consortia may provide resources in the  
            Adult Education Block Grant Program, however, the amount  
            provided to the JPA is determined by the consortia.   
            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.  



          5)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.  
          Analysis Prepared by:Misty Feusahrens / APPR. / (916)  
          319-2081