BILL ANALYSIS
AB 673
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Date of Hearing: May 13, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
AB 673 (Carter) - As Amended: April 22, 2009
Policy Committee: Education
Vote:10-0
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill requires the Superintendent of Public Instruction
(SPI), beginning in the 2009-10 fiscal year (FY), to allocate
any negative growth adjustment in the annual budget act to each
regional occupational center program (ROC/P) as an equal
reduction to their average daily attendance (ADA) "cap," as
specified.
FISCAL EFFECT
Minor, absorbable costs to the State Department of Education
(SDE) to implement this measure. The state will realize the
GF/98 savings through the application of a negative growth
adjustment to ROC/Ps regardless of the programmatic effect to
these programs. This measure modifies existing statute to allow
for the adjustment to be applied to a ROC/P's ADA cap and not
its base revenue limit funding. According to the SDE, ROC/P
programs claimed 121,845 in ADA.
COMMENTS
1)Purpose . ROC/Ps provide high school students 16 years of age
and older, and also adult students, with valuable career and
technical education so students can: (a) enter the workforce
with skills and competencies to be successful; (b) pursue
advanced training in higher educational institutions; and/or
(c) upgrade existing skills and knowledge. According to SDE,
74 ROC/Ps served 478,623 students in 2007-08.
Under existing law, ROC/Ps receive funding through a base
revenue limit (general purpose), which was established when
AB 673
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the ROC/P become operational. For the 2008-09 fiscal year,
the average ROC/P revenue limit is estimated at $3,047 per
ADA. In addition to their revenue limit funding, each ROC/P
has an ADA cap, which is the number of students it must serve.
For example, if a ROC/P's ADA cap is 500 pupils and it serves
550 pupils, the ROC/P has met its cap and earns ADA funding
for the additional 50 pupils.
Each ROC/P also receives any growth or cost-of-living
adjustment funding. These funds are in addition to the
revenue limit and ADA funding. However, current law does not
have a clear mechanism to equally reduce a ROC/P's funding if
there is negative growth. Existing law applies any negative
growth adjustment to a ROC/P's base revenue limit funding
(general purpose). According to the ROC/Ps, this reduction in
general purpose funding directly affects their ability to
provide base program options for pupils.
This bill proposes to apply a negative growth adjustment, in
the form of an equal percentage reduction, to ROC/Ps' ADA cap
rather than their base revenue limit funding. Therefore,
using the previous example, the percentage reduction would be
applied to the ADA funding earned for the 50 pupils the ROC/P
served beyond their cap. The author argues that this
mechanism is more equitable, particularly in the state's
current fiscal environment.
2)Categorical flexibility . As part of the February 2009 budget
process (SB 4xxx (Ducheny), Chapter 12, Statutes of 2009),
LEAs were provided with unprecedented fiscal and policy
flexibility related to over 40 categorical programs.
Specifically, any LEA that received funding for specified
categorical programs in the 2008-09 FY is authorized to use
this funding for any other educational purpose until the
2012-13 FY. The LEA may choose to continue operating the
categorical program that it received funding for or redirect
it for any other educational purpose it deems appropriate.
ROC/Ps are part of the categorical flexibility.
Analysis Prepared by : Kimberly Rodriguez / APPR. / (916)
319-2081