BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 182|
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THIRD READING
Bill No: AB 182
Author: Assembly Budget Committee
Amended: 6/24/09 in Senate
Vote: 27 Urgency
PRIOR VOTES NOT RELEVANT
SUBJECT : Budget Act of 2008: Education
SOURCE : Author
DIGEST : Senate Floor Amendments of 6/24/09 delete the
prior version of the bill expressing the intent of the
Legislature to enact statutory revisions relating to the
2009 Budget Act. This bill now implements funding
reductions to the 2008 Budget for K-14 and higher education
programs, and makes related statutory changes.
ANALYSIS : This bill makes the following changes to the
2008 Budget Act and accompanying statute:
K-12 Education
1. Revenue Limit Reductions and Deficit Factors . Revises
deficit factors for revenue limits for school districts
and county offices of education to reflect an additional
$1.3 billion reduction for revenue limits in 2008-09.
2. Expands Funding Flexibility Provisions for LEAs
CONTINUED
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A. Instructional Materials . Extends the suspension
of the statutory requirement that local educational
agencies (LEAs) buy newly-adopted instructional
materials through 2012. The February budget approved
a two year suspension, through 2009-10. Continues
assurances that all students have access to
standards-aligned materials.
B. Routine Maintenance Reserves . Allows school
districts that are compliant with the facilities
requirements of the Williams settlement to suspend
the current one percent reserve requirement for
routine maintenance. The February budget reduced
routine maintenance reserves from three percent to
one percent of district General Fund budgets. These
requirements are in effect for five years, 2008-09
through 2012-13.
C. Access to Ending Fund Balances . Provides LEAs
with access to additional, prior-year fund balances
in 2008-09 and 2009-10 beyond those provided in
February, including: Targeted Instructional
Improvement Grants; Instructional Materials;
California High School Exit Exam; Adult Education;
ROC/P Facilities; and Deferred Maintenance.
(Economic Impact Aid, Special Education,
Home-to-School Transportation, QEIA, Child
Development, and Child Nutrition remain protected.)
3. Current Year Savings . Recognizes $16.0 million in
current and prior year Proposition 98 savings from the
Division of Juvenile Justice and reappropriates these
funds for purposes of offsetting revenue limit
reductions in 2008-09.
4. High Priority Schools Grant Program . Eliminates
remaining funding for the High Priority Schools Grant
program in 2008-09 to conform to the elimination of this
program in 2009-10.
5. Categorical Reductions for Basic Aid Districts . Reduces
categorical funding for Basic Aid school districts
proportionate to the additional revenue limit reductions
implemented for non-Basic Aid school districts in
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2008-09 pursuant to this act.
6. Charter School EIA Allocations . Restores $8.3 million
in Economic Impact Aid funding as a part of the
cut/flexibility program for the Charter School Block
Grant in order to be consistent with treatment for
non-charter schools.
Community College Reductions
1. Makes an unallocated reduction in the amount of $85
million to be achieved by the end of the fiscal year;
2. Defers $115 million in apportionment payments from 2009
to July 2009.
UC and CSU Reductions
1. Makes additional unallocated reductions to the UC and
CSU totaling $1.44 billion ($717.5 million each).
2. Provides increased reimbursement authority to expend
federal stimulus funds.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
DLW:nl 6/23/09 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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