BILL ANALYSIS
AB 4 X1
Page 1
(Without Reference to File)
CONCURRENCE IN SENATE AMENDMENTS
AB 4 X1 (Evans)
As Amended December 18, 2008
Majority vote
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|ASSEMBLY: | |(December 8, |SENATE: | |(December 18, |
| | |2008) | | |2008) |
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(vote not relevant) (vote not available)
SUMMARY : Reduces Proposition 98 spending by $2.5 billion using
a combination of prior year unspent funds and current year
program reductions and makes various statutory changes to
implement these reductions to the Budget Act of 2008.
The Senate amendments delete the Assembly version of the bill,
and instead:
1)Reappropriate unspent prior year one-time K-14 Proposition 98
funds totaling $98.7 million to the Regional Occupation
Centers and Programs (ROC/Ps) and reduces ongoing funds for
the ROC/Ps by the same amount. This allows the state to reduce
ongoing Proposition 98 spending through the ROC/Ps while
ensuring no net reduction to the program. Of the total
reappropriation, $96.4 million is from K-12 categorical
programs and $2.3 million is from community college programs.
2)Make current-year K-14 Proposition 98 categorical program
reductions of approximately $1.8 billion. This total includes
reductions to over 20 K-12 categorical programs. For
community colleges, the bill eliminates funding for Physical
Plant and Instructional Support, reduces funding for Career
Technical Education, reduces funding for non-workload
categorical programs, reduces growth for apportionments, and
reduces community college mandate payments for a total
reduction of $157 million.
3)Reappropriate $1.4 million in prior year saving from the
Puente Program for support for this program in the current
year.
4)Reduce 2008-09 Proposition 98 appropriations for child care by
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nearly $95 million. This includes $76 million in anticipated
program savings and $19 million in federal fund offsets.
5)Eliminate the 0.68% COLA for school districts ($244 million)
and community colleges ($40 million).
6)Make conforming statutory program changes that include:
a) Suspension of the statutory requirement that local
educational agencies (LEAs) purchase newly-adopted
instructional materials in FY 2008-09 and FY 2009-10;
b) Specifying that the $35.1 million retained in the pupil
retention block grant in FY 2008-09 is to allow districts
to continue operating continuation high schools;
c) Reducing the FY 2008-09 per-student allocation made from
the charter school categorical block grant from $500 to
$400;
d) Suspension of the oral health assessment record-keeping
mandate in FY 2008-09 and FY 2009-10;
e) Suspension of the requirement for Program Improvement
schools and schools participating in the High Priority
Schools Grant Program to participate in the Math and
Reading Professional Development Program and the
Administrator Training Program for FY 2008-09 and FY
2009-10 due to the elimination of funding for these
programs; and,
f) Specifying that priority for remaining funds in the
Teacher Credentialing Block Grant will first fully fund all
first year teachers participating in the Beginning Teacher
Support and Assessment (BTSA) program and the remaining
funds will be prorated for second year teachers
participating in the program.
7)Provide flexibility to local education agencies to offset the
total current year reduction as follows:
a) For FY 2008-09, reduces the amount that school districts
are required to set aside in "routine restricted
maintenance accounts" from 3% to 1% of their General Fund
budgets.
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b) For FY 2008-09, eliminates reporting requirements for
school districts which fail to set at least a half percent
of their "current-year revenue limit average daily
attendance" funding for maintenance of facilities. The
elimination of this requirement is due to elimination of
state funding for deferred maintenance.
c) Authorizes LEAs to use ending fund balances as of June
30, 2008, in most restricted, categorical program accounts,
to backfill the $2.1 billion in categorical reductions.
Prohibits districts from accessing ending balances for
Economic Impact Aid, Targeted Instructional Improvement
Grants, Instructional Materials, Special Education, Quality
Education Investment Act, CAHSEE Supplemental Instruction,
and Home-to-School Transportation. Requires LEAs who elect
to use this authority to submit a related report to the
Superintendent of Public Instruction (SPI), and requires
the SPI to compile those reports and submit the information
to the Legislature by October 31, 2009.
8)Increase the FY 2008-09 school district revenue limit deficit
factor from 4.713% to 5.357% and increases the FY 2008-09
county offices of education revenue limit deficit factor from
4.396% to 5.050% to reflect the withdrawal of the 0.68% COLA
provided in the final Budget Act.
9)Eliminate the $100 million appropriation made in FY 2008-09
for the Emergency Repair Program and redirects all $100
million to Regional Occupational Centers and Programs to
achieve budget savings. Suspends any transfer of funds from
the Proposition 98 Reversion Account into the School
Facilities Emergency Repair Account for FY 2008-09 and FY
2009-10. Prohibits school districts from using School
Facilities Emergency Repair Account funds to supplant state
funds provided for deferred maintenance and from depositing
these funds into district deferred maintenance accounts.
10)Specify that $1.1 billion of the over appropriation of the
Proposition 98 guarantee in FY 2008-09 shall be scored in
satisfaction of "settle-up", displacing the $150 million
annual payments that would otherwise be made in FY 2008-09 and
future years.
11)Make a technical adjustment to the "mega-item" to only allow
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transfers from other categorical programs into the
home-to-school transportation program, no funds can be
transferred out of home to school transportation to another
categorical program.
12)Make the bill contingent upon enactment of either AB 2 x1 or
SB 2 x1 and either AB 9 x1 or SB 9 x1 of the 2009-10 first
extraordinary session.
AS PASSED BY THE ASSEMBLY this bill expressed intent of the
Legislature to enact statutory changes relating to the Budget
Act of 2008.
FISCAL EFFECT : Reduces overall Proposition 98 funding by $2.5
billion in FY 2008-09.
COMMENTS : Reduces Proposition 98 spending by the $2.5 billion
level proposed by the Governor. However, rather than using the
Governor's approach to cut school district revenue limits
(general purpose funding); this bill makes targeted program
reductions in an effort to mitigate direct impacts on classroom
instruction. The bill also provides districts with flexibility
to access prior year restricted fund balances to be used to
backfill the categorical program reductions.
Analysis Prepared by : Misty Feusahrens and Sara Bachez /
BUDGET / (916) 319-2099
FN: 0000041