BILL ANALYSIS                                                                                                                                                                                                    



                                                                     SB 828


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          (Without Reference to File)





          SENATE THIRD READING


          SB  
          828 (Committee on Budget and Fiscal Review)


          As Amended  June 12, 2016


          Majority vote.  Budget Bill Appropriation Takes Effect  
          Immediately


          SENATE VOTE:  Vote not relevant




          SUMMARY: This is the Omnibus K-14 Education Trailer Bill for  
          2016-17.  This bill makes various statutory changes to implement  
          the 2016-17 budget.  Specifically, this bill:
          Early Care and Education  


           1)Increases the standard reimbursement rate by 10% beginning  
            January 1, 2017.  
           2)Increases the regional market rate (RMR) to the 75th  
            percentile of the 2014 survey for that region, or at the RMR  
            for that region as it existed on December 31, 2016, whichever  
            is greater, beginning January 1, 2017.  Increases the RMR to  
            the 75th percentile of the 2014 survey for that region  
            beginning January 1, 2018.  








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           3)Expresses legislative intent to reimburse child care providers  
            at the 85th percentile of the most recent RMR survey and  
            update the RMR ceilings with each new survey, based on  
            available funding.  Also expresses legislative intent to  
            further increase the RMR ceilings through the 2018-19 fiscal  
            year to reflect increased costs to providers resulting from  
            the increases in the state minimum wage.  


           4)Increases the licensed exempt rates from 65% to 70% of the  
            Family Child Care Home rate beginning January 1, 2017.


          5)Establishes the income eligibility limits for the 2016-17  
            fiscal year at 70% of the state median income that was used  
            for the 2007-08 fiscal year, adjusted for family size.  


           6)Allows for only one parent to sign an application for  
            enrollment in child care services and prohibit requiring the  
            parent to submit additional documentation regarding the second  
            parent.  


           K-12 Education 


          1)Allocates $2.94 billion in ongoing Proposition 98 of 1988  
            funding to further implement the Local Control Funding Formula  
            (LCFF), bringing the total amount provided for LCFF to $55.8  
            billion in the 2016-17 fiscal year.
          2)Provides a total of $1.39 billion in one-time discretionary  
            funding to pay down the K-14 mandates backlog ($1.28 billion  
            for K-12 education and $105 million for community colleges).   
            Specifically, $665 million is attributed to meeting the  
            2014-15 minimum guarantee, $386 million toward the 2015-16  
            minimum guarantee, $141 million in reappropriated funds and  








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            $194 million in settle-up.  The funds are to be allocated on a  
            per student basis and it is intended for school districts to  
            use these one-time funds for professional development,  
            induction for beginning teachers with a focus on relevant  
            mentoring, instructional materials, technology infrastructure  
            and any other investments necessary to support the  
            implementation of the state content standards.  It is intended  
            for community colleges to use these one-time funds for  
            professional development, campus security infrastructure,  
            technology infrastructure and developing open education  
            resources and zero-textbook-cost degrees.


          3)Establishes the College Readiness Block Grant program, which  
            includes the following components: 


             a)   Appropriates $200 million in one-time Proposition 98  
               funding for the College Readiness Block Grant program in  
               order to provide additional support for "unduplicated"  
               (low-income, English learner or foster youth) students to  
               increase the number who enroll in institutions of higher  
               education and complete in four years. 
             b)   Allocates funds to school districts, county offices of  
               education and charter schools based on the number of  
               unduplicated high school students.  No school district,  
               county office of education or charter school would receive  
               less than $75,000 if they serve at least one unduplicated  
               student. 


             c)   Block grant funds are provided to support unduplicated  
               students in successfully matriculating to institutions of  
               higher education and can be used for activities such as  
               professional development related to increasing college  
               readiness, counseling services, materials to support  
               college readiness, implementing partnerships with  
               postsecondary institutions, providing subsidies for  
               unduplicated students to cover advanced placement exam fees  








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               and expanding access to college preparation coursework. 


             d)   Grant recipients must develop a plan for using the funds  
               and the plan must be discussed at a public meeting by the  
               governing board.  


             e)   Grant recipients must report to the Superintendent of  
               Public Instruction by January 1, 2017 on how they will  
               measure the impact of the funds on college readiness.  The  
               Department of Education must then compile this information  
               and report to the Legislature by April 30, 2017.


          4)Allocates $218 million in the 2016-17 fiscal year to offset  
            the outstanding balance from the 2009-10 Proposition 98  
            minimum guarantee.  Of this amount, $194.2 million is provided  
            to school districts on a per student basis in order to pay  
            down the K-12 education mandate backlog.  Additionally, $23.8  
            million is provided to community colleges on a per student  
            basis to be used for deferred maintenance, instructional  
            materials and other activities. 
          5)Provides $24 million in one-time Proposition 98 funding for  
            the California Collaborative of Educational Excellence  
            (Collaborative) to do the following activities:


             a)   Dedicates $20 million to establish a statewide process  
               to provide professional development and training to local  
               educational agencies on using the evaluation rubrics and  
               the Local Control Accountability Plan and Annual Update  
               templates adopted by the State Board of Education.  The  
               Collaborative will ensure that training is provided in each  
               region of the state and is available to all local  
               educational agencies.  The Collaborative must submit an  
               implementation plan to the Legislature and Department of  
               Finance within 30 days of the state board's adoption of the  
               evaluation rubrics and begin training by October 15, 2016.








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             b)   Provides $4 million for the Collaborative to implement a  
               pilot program to inform its long-term efforts to advise and  
               assist local educational agencies in improving outcomes.   
               The Collaborative must submit a plan to the Legislature and  
               Department of Finance by August 15, 2016 on the goals and  
               activities of the pilot program, including the timeline and  
               anticipated expenditures.  The Collaborative is required to  
               report to the Legislature and Department of Finance by  
               November 1, 2018 on the lessons learned from the pilot  
               program and implications for the Collaborative's ongoing  
               work. 


          6)Reestablishes the California School Paraprofessional Teacher  
            Training Program as the Classified School Employee Teacher  
            Credentialing Program in order to recruit classified school  
            employees to obtain their teaching credential and teach in  
            their home school district.  Specifically, this program  
            includes the following:
             a)   Provides $20 million in one-time Proposition 98 funding  
               over five years for the Commission on Teacher Credentialing  
               to allocate grants of up to $4,000 per participant per  
               year, for up to 1,000 new participants per year.
             b)   Allows school districts, county offices of education and  
               charter schools that meet certain criteria to participate  
               in the program, including providing a plan for recruitment  
               to meet the demand for teachers in shortage areas.


             c)   Participating classified employees must pass a criminal  
               background check and have earned an associate degree (or  
               higher), or completed at least two years of postsecondary  
               education.  Participants must also commit to obtaining a  
               bachelor's degree, teaching credential and complete one  
               year of classroom instruction in the school district,  
               county office of education or charter school providing  
               assistance. 










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             d)   Requires the commission to contract with an independent  
               evaluator to conduct an evaluation of the success of the  
               program by July 1, 2021, which shall be submitted to the  
               Legislature. 


             e)   Requires the commission to report to the Legislature  
               January 1st of each year on the status of the program,  
               including how many classified school employees have been  
               recruited.


          7)Provides $20 million for the Superintendent of Public  
            Instruction to allocate charter school startup grants of  
            $575,000 for classroom-based charter schools and $375,000 for  
            nonclassroom-based charter schools.  New charter schools  
            authorized in counties with few or no active charter schools  
            and located in low-income communities will receive priority.   
            Grant funds can be used for any one-time costs associated with  
            the startup of a new charter school.  The Superintendent is  
            required to use all federal carryover funds provided for this  
            purpose before allocating state funds.
          8)Appropriates $20 million in one-time Proposition 98 funding  
            for the Orange County Office of Education to provide grants to  
            local educational agencies to implement programs aligned to  
            the Multi-Tiered Systems of Support (MTSS) framework.  The  
            Orange County Office of Education shall consult with the  
            Superintendent of Public Instruction and Executive Director of  
            the State Board of Education in awarding grants and may use up  
            to $1 million to administer the grants and provide support to  
            the grantees.


          9)Allocates $18 million in one-time Proposition 98 funding for  
            the Superintendent of Public Instruction to provide grants to  
            local educational agencies for drop-out and truancy prevention  
            programs, pursuant to legislation governing the use of the  
            savings generated from the Safe Neighborhoods and Schools Act  
            (Proposition 47).  This one-time funding is in addition to the  








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            $9.9 million in ongoing funding provided for this purpose. 


          10)Requires the Commission on Teacher Credentialing to develop  
            and implement a grant program for institutions of higher  
            education to create or expand a four-year integrated teaching  
            credential program, including student teaching.  The 2016  
            Budget Act provides $10 million in General Fund for the  
            commission to provide grants of up to $250,000 to each  
            eligible institution of higher education.  Grant recipients  
            can use the funds for activities such as providing faculty  
            release time, program coordinators, creating summer courses,  
            and recruiting students to participate in the four-year  
            integrated teaching credential program.  Grant recipients must  
            also provide outcome data to the commission for at least three  
            years after receiving the grant. 


          11)Provides $9.5 million in one-time Proposition 98 funding for  
            the State Water Board, in consultation with the Department of  
            Education, to award grants to local educational agencies to  
            improve access and the quality of drinking water in schools.   
            Grant funding can be used to install water bottle filling  
            stations, drinking water fountains that remove contaminants,  
            and point-of-entry treatment devices for drinking fountains,  
            including replacement filters.  The State Water Board is  
            charged with implementing the program and is required to give  
            priority to projects in schools within a small disadvantaged  
            community and projects that will be highly effective in  
            increasing access to safe drinking water in schools.


          12)Allocates $5 million in one-time Proposition 98 funding for  
            the Commission on Teacher Credentialing to provide a  
            multi-year award to a local educational agency to establish  
            the California Center on Teaching Careers in order to recruit  
            qualified individuals into the teaching profession.  The  
            center shall prioritize recruitment efforts in the shortage  
            areas of math, science and bi-lingual education and for  








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            low-income schools.  The Commission on Teacher Credentialing  
            is required to conduct an evaluation of the outcomes of the  
            center, including expenditure data, survey results, and any  
            other outcome data collected. 


          13)Provides an additional $2 million in one-time Proposition 98  
            funding for the existing School Breakfast Startup Grant  
            program to be encumbered through the 2018-19 fiscal year.  The  
            one-time funds are to be prioritized for school districts or  
            county offices of education to start or expand "breakfast  
            after the bell," or breakfast served after the start of the  
            school day, where at least 60% of students are low-income,  
            English learner or foster youth students.  This funding is in  
            addition to the $1 million provided annually for the School  
            Breakfast Startup Grant program.


          14)Requires the Department of Finance, by June 30, 2017, to  
            adjust funding provided to the Department of Education, if the  
            amount of revenues distributed to local educational agencies  
            for special education programs are more, or less, than the  
            estimated amount reflected in the 2016 Budget Act.  Also  
            requires up to $27.4 million to be appropriated to the  
            Department of Education to the extent that the amount of  
            property tax revenues distributed to local educational  
            agencies for special education programs are less than the  
            estimated amount reflected in the 2015 Budget Act.


          15)Requires the Superintendent of Public Instruction to report  
            to the Legislature by July 1, 2017 with an estimate of average  
            costs, including fixed and marginal costs, associated with  
            full-day and part-day kindergarten and options for  
            incentivizing full-day kindergarten, including providing  
            differentiated funding rates for full-day and part-day  
            programs.










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          16)Establishes the Mathematics Readiness Challenge Grant program  
            to develop grade 12 math courses, or other experiences, in  
            order to better prepare high school students for college level  
            math courses.  The 2016 Budget Act provides $6.4 million in  
            federal Title II carryover to implement this program.   
            Specifically, the program requires the Department of Education  
            to award grants of $1.28 million each to five eligible  
            partnerships selected by a committee consisting of  
            representatives from the department, the California State  
            University, and the California Mathematics Project. 


             a)   Eligible partnerships must include participation from at  
               least one teacher preparation program, higher education  
               institution of arts and sciences and a high-need local  
               educational agency. 
             b)   The committee must give preference to partnerships with  
               high school graduates with high math remediation rates and  
               select partnerships that provide different grade 12 math  
               experiences.


             c)   Grants may be used for professional development for  
               teachers, paraprofessionals, and principals, consistent  
               with federal law.


             d)   Grant recipients must make any new course materials  
               widely available and share information about the  
               effectiveness of their program with entities in their  
               region and across the state. 


          17)Appropriates $6.6 million in one-time Proposition 98 funding  
            to the Fiscal Crisis Management Assistance Team, including  
            $5.8 million for the California School Information Services  
            (CSIS), pursuant to the memorandum of understanding with the  
            Department of Education, and $800,000 for local educational  
            agencies to support data submission to the California  








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            Longitudinal Pupil Achievement Data System (CALPADS).
          18)Allocates $3.5 million in ongoing Proposition 98 funding for  
            San Francisco Unified School District to be made available to  
            the Exploratorium in San Francisco for the purposes of  
            providing professional development and leadership training for  
            education professionals, expanding access to quality science,  
            technology, engineering and math (STEM) education and  
            supporting the implementation of the Next Generation Science  
            Standards.


          19)Provides $3 million in one-time Proposition 98 funding for  
            the Superintendent of Public Instruction to contract with a  
            county office of education to contract with a vendor to  
            replace the state's outdated Standardized Account Code  
            Structure (SACS) education data system.  The funds are  
            available upon approval of the Department of Finance and  
            notification of the Joint Legislative Budget Committee.


          20)Allocates $1 million in one-time Proposition 98 funding to  
            the Los Angeles County Office of Education to be made  
            available to the Special Olympics Northern and Southern  
            California in order to expand Special Olympics in schools.


          21)Appropriates $500,000 annually in the 2016-17 through 2018-19  
            fiscal year for the San Joaquin County Office of Education to  
            support the development of a web based system for the LCFF  
            evaluation rubrics and school accountability report card. 


          22)Extends the authorization of the Superintendent of Public  
            Instruction's authority to suspend the Academic Performance  
            Index (API), with approval of the State Board of Education.   
            The API has been suspended since the 2013-14 school year due  
            to a transition to new standards-based assessments that  
            compromise comparability of results across schools or school  
            districts.








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          23)Requires the Superintendent of Public Instruction to  
            apportion three-fourths of the total funding for the K-12 High  
            Speed Network by August 31st and up to one-fourth by January  
            31st each year.  Also appropriates $3.5 million in Proposition  
            98 funding for part of the K-12 High Speed Network's operating  
            budget. 


          24)Amends the funding formula for the Foster Youth Services  
            Coordinating Program, beginning in 2016-17, to include a base  
            grant of $75,000 for each participating county office of  
            education that serves at least one foster youth and then  
            allocate the remaining funding to participating county offices  
            of education based on the following:


             a)   Seventy percent based on the number of foster youth  
               students in the county, and
             b)   Thirty percent based on the number of school districts  
               in the county.


          25)Allows the Superintendent of Public Instruction, in  
            collaboration with the Executive Director of the State Board  
            of Education, to adjust the grant amounts for the Career  
            Technical Education Incentive Grant program, designated for  
            specific average daily attendance categories.  Also requires  
            the Superintendent to review the expenditures of the grant  
            recipients and adjust the grant amount the following year if  
            the match requirement is not met.
          26)Clarifies that charter schools must complete a Local Control  
            Accountability Plan and Annual Update.


          27)Expresses legislative intent that the Department of Education  
            utilize the Smarter Balanced assessment delivery system  
            infrastructure and hosting platform for all computer-based  








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            statewide assessments, to the extent possible.


          28)Clarifies that documents related to independent study may be  
            maintained electronically and allows for an electronic file of  
            the original document to be used for auditing purposes.


          29)Shifts $7.8 million of the $300 million provided for the  
            Career Technical Incentive Grant program from the 2016-17  
            fiscal year to the 2015-16 fiscal year, for accounting  
            purposes.  This change is technical and does not impact the  
            total amount of funding provided for the Career Technical  
            Education Incentive Grant program.


          30)Maintains the existing funding rates for foster students  
            receiving special education services and specified capacity  
            for group homes for the 2016-17 school year.


          31)Suspends the statutorily-specified split of the Proposition  
            98 minimum guarantee for 2016-17 between K-12, community  
            college, and other state agencies.  This section of statute  
            has been suspended each year since 1992-93.


          32)Eliminates an outdated code section that prohibits a person  
            employed by a local educational agency within the last 365  
            days to be employed by a non-public agency contracted with a  
            local educational agency for special education related  
            services.


          33)Provides that, if the Commission on State Mandates determines  
            that the bill contains costs mandated by the state,  
            reimbursement for those costs shall be made pursuant to  
            existing law.









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          34)Declares that it is to take effect immediately as a bill  
            providing for appropriations related to the budget bill.




                     COMMENTS:  This bill is the budget trailer bill within the  
          overall 2016-17 budget package related to K-14 education  
          programs, including the Department of Education, California  
          Community Colleges, and the Commission on Teacher Credentialing.




          Analysis Prepared by:                                             
                          Katie Hardeman / BUDGET / (916) 319-2099  FN:  
          0003425