BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 1802|
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THIRD READING
Bill No: AB 1802
Author: Assembly Budget Committee
Amended: 6/27/06 in Senate
Vote: 27 - Urgency
WITHDRAWN FROM SENATE RULES COMMITTEE
ASSEMBLY FLOOR : Not relevant
SUBJECT : Budget Act of 2006: education trailer bill
SOURCE : Author
DIGEST : This bill makes a number of education related
changes necessary to implement the Budget Act of 2006.
Senate Floor Amendments of 6/27/06 delete the prior version
which expressed legislative intent to enact statutory
changes related to the Budget Act of 2006.
ANALYSIS : This bill makes statutory changes necessary to
implement the K-12 and Higher Education portions of the
2006 Budget Act. The bill makes the following statutory
changes:
PROPOSITION 98 - ONE-TIME SETTLE-UP APPROPRIATIONS
Appropriates approximately $2.6 billion in one-time
Proposition 98 "settle-up" funds to K-12 education and
community colleges for several fiscal years (Sections 43 &
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44). These one-time funds are provided for the following
purposes:
K-12 Education
1.$908 million to reimburse school districts and county
offices of education for outstanding, prior year
education mandate claims. This includes $650 million
for 2005-06 settle-up payments and $258 million for
settle-up payments in prior years. (The budget provides
an additional $19 million in one-time funds from the
Proposition 98 Reversion Account for prior-year K-12
mandates.)
2.$533.5 million billion for Discretionary Block Grants.
Of this amount, $400.1 million (75 percent) is for
school site block grants for a variety of purposes to be
determined by school site councils, including but not
limited to, instructional materials, classroom and lab
supplies, school and classroom library materials,
education technology, deferred maintenance, professional
development and other efforts to close the achievement
gap. The remaining $133.4 million (25 percent) is for
school district block grants that can be used for the
school-site purposes mentioned above, as well as,
home-to-school transportation and activities to address
outstanding fiscal obligations.
3.$500 million for a block grant to districts for purchase
of arts, music and physical education supplies and
equipment.
4.$100 million for a block grant that districts may use
for instructional materials, school and classroom
library materials and education technology.
5.$50 million for teacher recruitment and retention grants
to schools ranked in the lowest three deciles of the
Academic Performance Index (API).
6.$50 million to the Child Care Facilities Revolving Fund
for renovation of existing facilities or purchase of new
relocatable child care facilities. These one-time funds
are tied to $50 million in ongoing funds provided in the
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budget for expansion of the State Preschool Program.
7.$40 million for grants to school districts to purchase
equipment related to career technical education,
including a $2.5 million set-aside tied to an allied
health professions preparation program.
8.$30 million for supplemental instructional materials
designed to assist K-12 students who are English
learners. Funds may only be used in addition to
standards-aligned materials adopted by the State Board.
9.$20 million for a multi-year research pilot program to
identify best practices for improving the academic
achievement and English language development of students
who are English learners.
10.$15 million to restore funding to an existing
parent/teacher involvement grant program.
11.$11.5 million in new funds for local education agencies
to prepare for transition to the California Longitudinal
Pupil Achievement Data System (CALPADS) in 2008. Of
this total, the following amounts are available: $9.5
million in local assistance grants to school districts,
county offices of education and charter schools for a
less intensive version of California School Information
System (CSIS) program; $1.5 million in associated state
level CSIS activities; and $533,000 for related CSIS
equipment (hardware and software) purchases.
12.$10 million to reimburse districts for their costs of
developing fiscal solvency plans for addressing
long-term unfunded liabilities related to retiree health
benefits.
13.$10 million to provide a new cohort of Healthy Start
grants to school districts and charter schools for
start-up of comprehensive health programs on or near
school sites.
14.$9 million to continue funding the Charter School
Facilities Grant Program that helps offset the rental or
lease costs of charter school facilities in economically
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disadvantaged areas.
15.$5.5 million to districts for purchase of individual
workbooks for students who have failed the California
High School Exit Exam.
16.$5 million for a new cohort of grantees under the Early
Mental Health Initiative.
17.$4 million for support of the K-12 High Speed Network.
The budget provides a total of $15.6 million for support
of this network.
18.$3 million in grants for school districts, county
offices of education and charter schools for start-up of
school breakfast programs.
19.$1.8 million for a new pilot program to increase the
number of qualified high school math teachers and
improve the capacity of existing high school math
teachers.
Community Colleges
1.$100 million in general purpose block grants to
community college districts to be allocated based on a
full-time equivalent student basis. Of this amount,
$77.7 million is appropriated in this measure and $22.3
million is appropriated in the Budget Bill from the
Proposition 98 Reversion Account.
2.$94.1 million to the community colleges for physical
plant and instructional support. Funds are to be
distributed to colleges on a per student basis.
3.$40 million for equipment, materials, and minor facility
remodeling related to Career Technical Education.
4.$19.7 million associated with the implementation of a
new community college funding formula.
5.$15 million for payment of outstanding audited mandate
claims.
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6.$5 million for community college professional
development activities.
7.$2.5 million to develop a pilot program to recruit and
retain full-time nursing faculty at the California
Community Colleges.
8.$1.4 million for community college districts to complete
connection to the California Research and Education
Network.
9.$700,000 for the development and implementation of a
community college electronic transcript exchange.
10.$500,000 for the development and implementation of a
clinical nursing placement registry
11.$500,000 to conduct research and implement a community
colleges statewide strategic plan
12.$100,000 to the Amador County Office of Education to
study the feasibility of developing a community college
in Amador County.
OTHER K-12 EDUCATION PROVISIONS
1. Revenue Limit Equalization . Appropriates $350 million
for equalization of school district revenue limit
funding and specifies the method of equalization
reflecting current law. (Sections 5, 6, & 42)
2. Deficit Factor Buyout . Eliminates revenue limit deficit
factors for school districts and county offices of
education in 2006-07. Deficit factors were applied as a
result of revenue limit reductions and foregone
cost-of-living adjustments (COLAs) in 2003-04. The
budget provides $309 million to fully restore revenue
limits to where they would have been without these
reductions. (Sections 1 & 7)
3. Economic Impact Aid Augmentation . Changes, updates and
simplifies the formula for distributing funds through
the Economic Impact Aid program, which supports
districts' compensatory education programs to improve
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the achievement of economically disadvantaged and
English learner students. This change is associated
with a $350 million augmentation to the Economic Impact
Aid program in the budget. (Sections 10-11, 14-16, 20,
22, 35-36) Specifically, the new formula:
A. Changes the measurement of economically
disadvantaged from CalWorks participant counts to
census-based counts used for the federal Title I
program.
B. Calculates per pupil funding rates by dividing a
district's total EIA funding by its Title I and
English learner student data counts and holds
districts harmless from any loss of per pupil funding
in the future.
C. Establishes equal funding weights for economically
disadvantaged student and English learner student
counts.
D. Provides a concentration factor for districts with
over 50 percent EIA eligible students.
E. Provides a funding adjustment to each district
calculated on the basis of $600 minus its per pupil
funding amount.
4. Extension of the Special Disabilities Adjustment .
Continues authorization of the disability adjustment
calculation through 2006-07. This adjustment is
intended to compensate schools for higher special
education costs for some students with disabilities.
(Section 17)
5. Cost Pool for High Cost Student Residing in Foster Care .
Makes statutory changes to allow school districts to
access funds from the extraordinary cost pool for
students with disabilities residing in foster care
placements. This is associated with a $2 million
augmentation for the cost pool in the budget. (Section
18)
6. Extension of Pilot Program for Incarcerated Youth .
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Extends the sunset for a state pilot program by six
months - from January 1, 2007 to July 1, 2007. This
action will allow a fifth and final year of funding for
an interagency agreement between the Department of
Education and CSU, San Bernardino to provide monitoring
and technical assistance for special education programs
for youth with disabilities incarcerated at the Division
of Juvenile Justice, Department of Corrections and
Rehabilitation. The budget provides $301,000 in federal
carryover and General Funds for the final year of this
pilot program in 2006-07. (Section 19)
7. CAHSEE Supplemental Intervention . Makes changes to a
program created last year to provide supplemental
funding for intensive remedial instruction to 12th
graders who have not yet passed the California High
School Exit Exam (CAHSEE). The changes modify the
per-pupil rate from $600 to $500 per eligible 12th grade
student and allow CDE to pro-rate remaining funds to
serve 11th grade students who have not yet passed
CAHSEE. The budget provides $69 million in ongoing
funds for this program - an increase of $49 million in
2006-07. (Section 3)
8. High School Counselors . Creates a new block grant for
districts to support additional counseling services for
students in grades 7-12. (Section 13). Priority for
counseling services would be given to students who are
at-risk of not passing or who have not passed CAHSEE, as
well as, students who are at-risk of not graduating high
school due to insufficient credits. The budget provides
a $200 million in new ongoing funding for this purpose
in 2006-07. (Section 13)
9. School Meal Reimbursements . Increases the state meal
rate for free- and reduced- price meals by seven cents
in 2006-07. This change is tied to a $37.8 million
increase in the budget for this purpose. (Section 12)
10. Migrant Housing Program . Allows the State Allocation
Board to transfer unused funds from the inactive Migrant
Housing Program to state school facility programs.
(Section 2)
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11. Proposition 98 Split . Suspends existing statute that
specifies the division of Proposition 98 funding among
K-12 educational agencies, community colleges, and other
state agencies, and reflects a division of funding that
conforms to that of the 2006-07 budget. (Section 4)
12. Appropriation of Program Deferrals . Defers $358 million
in various program payments for second principal (P-2)
apportionments by one month - from June 2007 to July
2007 - in order to continue budget savings implemented
in recent years by scoring expenditures in the following
fiscal year. (Section 37)
13. Expenditure Period for Program Deferrals . Extends the
authorized expenditure period of appropriations made for
specified K-12 programs in 2006-07 and 2007-08 by one
month each - from June 30 to July 31. This action is
needed to implement continuing apportionment deferrals
from one-fiscal year to the next. (Section 39)
14. Proposition 98 Settle-Up Payments . Specifies the fiscal
year for allocation of prior year settle-up payments
pursuant to Chapter 216, Statutes of 2004. (Section 40)
15. Cost-of-Living (COLA) Adjustments . Declares that the
budgeted COLA rate of 5.92 percent for various K-12
programs in 2006-07 is in-lieu of the COLA that would be
applied pursuant to any other law. (Section 41)
OTHER HIGHER EDUCATION PROVISIONS
1. CSU Student Fees . Shifts California State University
(CSU) student fee revenue from the State Treasury to CSU
campus-based trust funds. Adopts language to ensure
that the expenditure of these funds is subject to audit
by the State Controller's Office. (Section 34)
2. Community College Student Fees . Reduces the fees for
California Community College students from $26 per unit
to $20 per unit, effective for the spring 2007 academic
term. (Section 33)
3. Community College Expenditure Deferrals . Continues to
defer $200 million of community college expenditures
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from the 2006-07 fiscal year to the 2007-08 fiscal year.
(Section 38)
4. Nursing Program Loans . Makes minor modifications to the
State Nursing Assumption Program of Loans for Education
(SNAPLE) to encourage individuals to complete their
graduate education and serve as nursing faculty at an
accredited California college or university. (Sections
21-27)
5. Public Interest Attorney Loans . Modifies the Public
Interest Attorney Loan Repayment Program to remove
components hindering its operation. (Sections 28-32)
COMMISSION ON TEACHER CREDENTIALING
Restoration of Credential Appeals Programs . Restores two
programs within the Commission on Teacher Credentialing
that relate to the appeals process for allegations of
misconduct. These programs were eliminated as a part of
program efficiencies adopted in the 2005-06 budget.
(Sections 8-9)
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
DLW:nl 6/27/06 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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