BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2 X4
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           (Without Reference to File)
           
          CONCURRENCE IN SENATE AMENDMENTS
          AB 2 X4 (Evans)
          As Amended  July 23, 2009
          2/3 vote.  Urgency
           
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          |ASSEMBLY:  |     |(July 9, 2009)  |SENATE: |     |(July 24,      |
          |           |     |                |        |     |2009)          |
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                         (vote not relevant)           (vote not  
          available)
           
           Original Committee Reference:     RLS.  

           SUMMARY  :  Provides the necessary statutory changes in the area  
          of education in order to enact modifications to fiscal year (FY)  
          2008-09 and 2009-10 Budget Acts. 

           The Senate amendments  delete the Assembly version of this bill,  
          and instead:

           2008-09 Adjustments  :

          1)Suspend statutory requirements that local educational agencies  
            (LEAs) newly-adopted instructional materials be purchased  
            within 24 months of an adoption for FY 2008-09 through 2012-13  
            and suspends the regular adoption cycle for K-8 materials for  
            the same period of time.  


          2)Permit, for FY 2008-09 through 2012-13, school districts to  
            reduce the number of school days (or the equivalent  
            instructional minutes) by five days, from 180 per year to 175,  
            while maintaining a longer year incentive adjustment for those  
            districts that currently receive it.

          3)Make various average daily attendance (ADA) calculation  
            adjustments for programs that will no longer collect ADA  
            pursuant to the categorical flexibility provisions established  
            in the February enacted budget trailer bill (SB 4x3, Chapter  
            12, Statutes of 2009-10 Third Extraordinary Session).  

          4)Reduce, for FY  2008-09  through 2012-13  , the amount  of their  








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            General Fund budgets  that school districts are required to set  
            aside in "routine restricted maintenance accounts" from  1  % to  
             zero, as long as the district maintains its facilities in good  
            repair, as specified. 

          5)Authorize, for FY 2008-09 through 2012-13, the State  
            Allocation Board to release "extreme hardship" deferred  
            maintenance funding in advance of the normal timeline, if  
            necessary to avoid serious facility damage or hazard to the  
            health and safety of students.

          6)Make technical and clarifying changes to the implementation of  
            the categorical program flexibility enacted as part of the  
            February special session, including, prohibiting school  
            districts from retaining funding intended for charter schools.  
             

          7)Remove statutory language that ties the minimum requirements  
            for a professional clear multiple or single subject teaching  
            credential to budget act funding for beginning teacher  
            induction programs, to clarify that the requirements that  
            apply to individuals' teacher credentials are not contingent  
            on district decisions to offer teacher induction programs.

          8)Clarify, for FY 2008-09 through 2012-13, that LEAs in "program  
            improvement" and those who have received a federal correction  
            action sanction by the State Board of Education shall not be  
            prohibited from using categorical flexibility.

          9)Include technical adjustments to the class size reduction  
            program, pursuant to the implementation of the education  
            trailer bill enacted as part of the February budget package  
            (SB 4x3).

          10)^^^Amend, for 2008-09 and 2009-10 only, districts' authority  
            to use their categorical ending balances for any educational  
            purpose by adding several formerly restricted accounts and  
            deleting several formerly non-restricted ones.  Changes the  
            due date for an associated report from October 31, 2009, to  
            April 15, 2010.  

          11)^^^Authorize new charter schools to apply for categorical  
            program funding so long as the charter school is eligible and  
            meets the provisions of the program, including those  
            categorical programs that are included in categorical  








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            flexibility. 

           2009-10 Adjustments  :


          1)Adjust the county office of education (COE) revenue limit  
            deficit factor to 18.621% and the school district revenue  
            limit deficit factor to 18.355% to reflect a reduction of $2.3  
            billion to revenue limits in 2009-10. These statutory factors  
            are created to establish state intent to repay the K-12  
            per-pupil reductions, including foregone cost-of-living  
            adjustments.

          2)Reduce categorical funding for Basic Aid school districts by  
            $80 million to ensure a proportionate reduction to revenue  
            limit reductions implemented for Non-Basic Aid school  
            districts.


          3)Fund the Quality Education Investment Act (QEIA) in 2009-10  
            with ongoing, rather than one-time, Proposition 98 funds for a  
            General Fund savings of $450 million.  Eligible districts may  
            apply for federal Title I funds to backfill the redirection of  
            ongoing Proposition 98 funds.  Extends the QEIA program for an  
            addition year, though 2014-15.


          4)Allow school districts to sell surplus property not purchased  
            with state funds and use proceeds for GF purposes for three  
            years.


          5)Permit, for 2009-10 and 2010-11 only, school districts to  
            operate with one-third of its usual reserve for economic  
            uncertainties.  


          6)Suspend, starting in 2009-10, the requirement that eligible  
            pupils with disabilities pass the high school exit exam in  
            order to graduate from high school.  The exemption is in place  
            until the State Board of Education makes a determination if  
            they should adopt regulations authorizing an alternative exam.


          7)Specify through July 1, 2013 that the deficiency funding for  








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            the charter school categorical block grant be strictly limited  
            to unanticipated increases in average daily attendance (ADA)  
            and counts of economic impact aid (EIA) eligible pupils and  
            prohibits additional funding from being provided to restore  
            the categorical program reductions.



          8)Prohibit, for the FYs 2011-12 and 2012-13, a county  
            superintendent or the State Superintendent of Public  
            Instruction from assigning a qualified or negative  
            certification to a school district due to the loss of federal  
            economic stimulus funds.


          9)Change the Charter School Facility Grant Program from a  
            reimbursement program to a grant program.



           Child Care:


           10)Repeal automatic carryover of child care funds.

          11)Make Los Angeles based CARES program contingent upon funding  
            being appropriated in the Budget Act.


          12)Specify that subsidized child care providers will be  
            reimbursed at a maximum of the 85th percentile of the 2005  
            Regional Market Survey.


          13)Maintain the current family fee schedule for child care  
            services.  


          14)Clarify that families receiving CalWORKs cash aid will not be  
            charged a family fee for child care services.


          15)Eliminate the School Age Community Child Care Services  
            (Extended Day or Latchkey) Program, effective August 31, 2009,  
            due to an overlap with existing After School services.








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          16)Clarify that reimbursements to child care service providers  
            based on a daily rate may only be authorized under specified  
            circumstances. 

          
           Higher Education:
           

          17)Allow community college districts to transfer funding from 12  
            categorical programs to any other categorical program.  This  
            flexibility provision is operative for 2009-10 through  
            2012-13.  

          18)Increase community college student fees by $6 per unit, from  
            the current level of $20 per unit to $26 per unit. 


          19)Revise the Quality Education Investments Act (QEIA)  
            allocation of $48 million for the Community Colleges Career  
            Technical Education program from 2010-11 through 2013-14. 

          Urgency Clause:  Declare this bill take effect immediately as an  
          urgency statute.


           AS PASSED BY THE ASSEMMBLY,  this bill was a vehicle for the  
          budget trailer bill.


           Analysis Prepared by  :    Misty Feusahrens and Sara Bachez /  
          BUDGET / (916) 319-2099

                                                                   FN:  
                                                                 0002076