BILL ANALYSIS Ó SB 854 Page 1 Date of Hearing: August 10, 2016 ASSEMBLY COMMITTEE ON BUDGET Philip Ting, Chair SB 854 (Committee on Budget and Fiscal Review) - As Amended August 8, 2016 SENATE VOTE: 25-11 SUBJECT: Budget Act of 2016 SUMMARY: This bill makes changes to the 2016-17 budget trailer bills related to K-12 and higher education. Specifically, this bill: 1) Allows the California Department of Education (CDE) to use up to $300,000 of the $18 million in Proposition 98 General Fund provided in the 2016-17 budget to contract with a local educational agency to provide regional trainings and technical assistance for grant recipients of Proposition 47 related dropout and truancy prevention programs. This bill also requires the CDE to submit an expenditure plan for these funds to the Joint Legislative Budget Committee. The 2016-17 education trailer bill, SB 858 (Chapter 29, Statutes of 2016), provided $18 million in one-time Proposition 98 General Fund for dropout and truancy related programs, in addition to the $9.9 million provided for this SB 854 Page 2 purpose through Proposition 47 related savings. Proposition 47 allows the CDE to use up to five percent of the education related Proposition 47 funds to administer the program and provide technical assistance. However, no funds were provided for technical assistance for the additional $18 million. 2) Requires applicants of the California Classified School Employee Teacher Credentialing Program to include a plan for recruiting bilingual cross-cultural teachers, in addition to teachers in shortage areas, in their application. This was a requirement of the previous California School Paraprofessional Teacher Training Program. 3) Extends the sunset date and Legislative Analyst's Office reporting date by one year on a program that allows the University of California and the California Community Colleges to use the best value procurement method when purchasing goods and materials. An LAO report analyzing the effectiveness of these programs will be due on Feb. 1, 2018, instead of 2017, and the program will sunset on Jan. 1, 2019, instead of 2018. This change is proposed to allow the LAO to address a requirement in the 2016 Budget Act requiring an extensive review of state financial aid programs this fall, before working on the review of the best value program. 4) Deletes redundant language included in AB 1602 (the Higher Education Trailer Bill as part of the 2016 Budget Act) regarding reporting requirements for funding distributed to the California State Library. This is a technical change. 5) Clarifies that the process for awarding funds for Precision Medicine grants is not subject to the provisions of the Government Code Section 11340. SB 854 Page 3 REGISTERED SUPPORT / OPPOSITION: None on file. Analysis Prepared by:Mark Martin / BUDGET / (916) 319-2099, Katie Hardeman / BUDGET / (916) 319-2099