BILL ANALYSIS Ó SB 786 Page 1 Date of Hearing: August 26, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair SB 786 (Allen) - As Amended August 17, 2015 ----------------------------------------------------------------- |Policy |Rules |Vote:|10 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | |Education | |7 - 0 | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- 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 SB 786 Page 2 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 SB 786 Page 3 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. SB 786 Page 4 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. SB 786 Page 5 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