BILL ANALYSIS Ó SB 828 Page 1 (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. SB 828 Page 2 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 SB 828 Page 3 $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 SB 828 Page 4 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. SB 828 Page 5 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. SB 828 Page 6 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 SB 828 Page 7 $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 SB 828 Page 8 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. SB 828 Page 9 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 SB 828 Page 10 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. SB 828 Page 11 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 SB 828 Page 12 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. SB 828 Page 13 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