BILL ANALYSIS
AB 519
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( Without Reference to File )
CONCURRENCE IN SENATE AMENDMENTS
AB 519 (Budget Committee)
As Amended September 15, 2008
2/3 vote. Urgency
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|ASSEMBLY: | |(June 4, 2007) |SENATE: |30-9 |(September 16, |
| | | | | |2008) |
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(vote not relevant)
Original Committee Reference: ED.
SUMMARY : Makes various statutory changes to implement various
programmatic and technical changes necessary to implement the
education portion of the Budget Act of 2008 and
declares that this bill take effect immediately as an urgency
statute.
The Senate amendments delete the Assembly version of this bill
and instead:
K-12 Education Provisions
1)Calculate a deficit factor for school districts and county
offices of education to reflect the reduction of statutory
cost-of-living adjustments (COLAs) in 2008-09, so that in
2009-10 these factors are restored to revenue limit
calculations, as if the full statutory COLA had been applied.
These deficit factors reflect 0.68% COLAs, which amount to
$244 million for K-12 revenue limit apportionments in 2008-09.
2)Declare that the budgeted COLA rate of zero percent for
various K-12 categorical programs in 2008-09 is in-lieu of the
COLA that would be applied pursuant to any other law.
3)Require the California Department of Education (CDE) to
annually submit two reports to the Legislature, Legislative
Analyst's Office and the Governor. Requires one report,
submitted by February 15 of each year, to provide a three-year
tracking of federal funds, as specified. Requires a second
report, submitted by November 1 of each year that identifies
available federal carryover funds.
AB 519
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4)Suspend existing statute that specifies the division of
Proposition 98 funding among K-12 Local Educational Agencies
(LEAs), community colleges, and other state agencies, and
reflects a division of funding that conforms to that of the
2008-09 Budget.
5)Repeal the Norm Referenced Test (NRT), currently administered
to students in grades 3 and 7, as a component of the
Standardized Testing and Reporting (STAR) Program and makes
conforming changes. The Budget Act eliminates remaining funds
of $2.5 million for NRT in 2008-09.
6)Continue to defer $388.3 million in various program payments
included in the second principal apportionment by one month -
from June 2009 to July 2009 - in order to shift payments from
fiscal year (FY) 2008-09 to FY 2009-10. This practice
continues budget savings - achieved by shifting these payments
to the next FY - that were implemented in recent years.
7)Extend the authorized expenditure period for June
apportionment deferrals by one month - from June 30, 2009 to
July 31, 2009. This action makes the expenditure period for
apportionment payment deferrals consistent with the
expenditure period for Budget Act appropriations.
8)Continue authorization of the existing disability adjustment
calculation for special education programs through 2008-09.
This adjustment is intended to compensate K-12 local
educational agencies for higher special education costs for
some students with disabilities.
9)Defer a statutory appropriation of $150 million in 2008-09 for
purposes of providing payment of prior year Proposition 98
"settle-up".
10)^^^ Provide statutory authority to allocate $112.7 million in
federal funds through the establishment of a funding formula
for state intervention for local education agencies (LEAs) who
are in the third year of Program Improvement (PI) and facing
corrective actions under the federal No Child Left Behind Act
of 2001 (NCLB). Require the State Department of Education to
contract for an independent evaluation of the corrective
action process under NCLB and provide a timeline for the use
of technical assistance in the corrective action process.
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HIGHER EDUCATION PROVISIONS
11)^^^Require the Department of Finance (DOF) to meet a series
of reporting requirements delineating progress towards the
sale (or alternative arrangement to the sale) of EdFUND.
12)^^^Extend the date by which the DOF is authorized to sell, or
effectuate an "alternative arrangement to the sale" of EdFUND,
from January 2009 to January 2011.
13)^^^Allow the California Student Aid Commission to act as the
"Lender of Last Resort," under agreement with the United
States Secretary for Education, should students, via colleges
and universities, be unable to secure student loans through
the traditional federally-subsidized student loan programs.
14)^^^Expand the authority of the California Student Opportunity
and Access Program (Cal-SOAP) to provide public awareness and
outreach activities related to career-technical education.
15)^^^Clarify the uses of community college financial aid
funding to include financial aid support services, in response
to a recent Commission on State Mandates decision.
16)^^^Appropriate $12.5 million from the Public Interest
Research, Development, and Demonstration Fund to expand the
number of high school Partnership Academies by 61. New
Partnership Academies funded with this appropriation would;
meet current statutory requirements as well as; focus on clean
technology, renewable energy, pollution reduction, and other
"green" environmental technologies.
17)^^^Appropriate $39.8 million in augmentation of community
college apportionments to provide a 0.68% COLA.
18)^^^Continue to defer $200 million of community college
payments from FY 2008-09 to FY 2009-10.
19)^^^Declare this bill take effect as an urgency statute.
AS PASSED BY THE ASSEMBLY , this bill required the Superintendent
of Public Instruction (SPI) to work toward incorporating
additional measures of performance into the Academic Performance
Index (API).
AB 519
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Analysis Prepared by : Misty Feusahrens and Sara Bachez / BUDGET
/ (916) 319-2099
FN: 0007795