BILL ANALYSIS
SENATE COMMITTEE ON EDUCATION
Gloria Romero, Chair
2009-2010 Regular Session
BILL NO: AB 673
AUTHOR: Carter
AMENDED: April 22, 2009
FISCAL COMM: Yes HEARING DATE: June 25, 2009
URGENCY: No CONSULTANT: James Wilson
SUBJECT : Regional Occupational Centers and Programs
SUMMARY
This bill provides that when the state budget calls for a
negative funding adjustment to be applied to Regional
Occupational Centers and Programs (ROC/P), that adjustment
shall be implemented as a uniform percentage reduction of
each ROC/P's limit of funded ADA.
BACKGROUND
Regional Occupational Centers and Programs (ROC/P) provide
career/ technical education to high school students 16
years of age and older, and adult students with the
objectives of allowing graduates to either enter the
workforce with the necessary skills to be successful;
upgrade existing schools or pursue advanced training in
postsecondary education. ROC/P may be operated by single
school districts, county offices of education or joint
powers authorities (JPA) comprised of multiple districts
and county offices. According to the Department of
Education, 74 ROC/Ps served 478,623 students in 2007-08.
Each ROC/P receives funding from the state in the form of a
revenue limit, which is multiplied by an Average Daily
Attendance (ADA) count generated by the hourly attendance
of pupils. For the 2008-09 fiscal year, the average ROC/P
revenue limit is estimated at $3,047 per unit of ADA. Each
year ROC/Ps are required to generate at least as much ADA
as was funded in the previous year, and if the ROC/P fails
to do this, the unused capacity is redistributed to other
ROC/Ps by means of a formula that is intended to allocate
capacity, called "growth ADA" to those programs with the
greatest need. The state pays for growth ADA by multiplying
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it by the statewide average ROC/P revenue limit and the
entire process directs growth funding towards ROC/Ps with
low participation while it tends to equalize the ADA
capacity of all ROC/Ps.
The current growth oriented allocation formulas for ROC/Ps
pose a problem for years when statewide funding is reduced.
The current statute directs the State Superintendent to
treat negative numbers as "zero" in all calculations, so a
negative adjustment to funding may not be used to reduce
the ADA capacity limits of the ROC/Ps. With funding in
decline, the capacity limits don't act as limits on the
funding that may be earned, but become requirements
specifying the minimum ADA that ROC/Ps must generate in
order to hold onto their (reduced) level of funding. The
programs end up reducing the revenue limit dollars
available per pupil, and potentially reducing the quality
of instruction, because they cannot reduce quantity, or
number of ADA served.
ANALYSIS
This bill:
1) Provides that, as of the 2009-10 fiscal year, if the
budget act calls for a negative growth adjustment to
Regional Occupational Centers or Programs average
daily attendance (ADA) funding, then statutory
instructions for the allocation of growth ADA will not
be followed and the negative adjustment will be made
as a percentage reduction to the cap on the average
daily attendance of each ROC/P.
2) Provides a method of calculating a negative ADA
adjustment for ROC/Ps in the 2009-10 fiscal year which
provides that each program's 2008-09 fiscal year ADA
will be reduced by the percentage reduction applied to
ROC/P funding in the Budget Act of 2008. This
adjustment would not make an additional funding
reduction for 2008-09, but would recognize the
reduction that was already made in 2008-09 for
purposes of calculating ROC/P funding for 2009-2010.
STAFF COMMENTS
1) Need for the bill. Prior to this measure, reductions
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to the budget act appropriation in support of ROC/Ps
are allocated as percentage reductions to ROC/P per
pupil revenue limits, potentially reducing the quality
of instruction. This measure would authorize each
ROC/P to choose to maintain the quality but serve
fewer pupils. The reduction in the number of pupils
served could not be greater than the reduction of
funding, so that an ROC/P could not reduce pupils
served in order to increase per pupil funding, but it
could match the number of pupils served to the funds
available.
2) Categorical flexibility. The education trailer bill
to the budget package adopted in February 2009 (SB 4
of the 3rd Extraordinary Session, Chapter 12 of 2009),
allowed school districts and county offices to
redirect most state categorical funding for any
educational purpose through at least the year 2012-13.
Districts and counties may choose to continue
operating programs, but they may also redirect program
funding for any other educational purpose that the
local board, after public hearing, deems appropriate.
Regional Occupational Centers and Programs are among
the programs over which districts have total control.
The funding formulas for all of the programs remain in
statute however, and the issue addressed by this bill
relates to the ROC/P funding formula that presumably
will be used for the allocation of ROC/P funding in
the future.
SUPPORT
Association of California School Administrators
California Association of Regional Occupational Centers and
Programs
California County Boards of Education
California School Boards Association
Los Angeles County Office of Education
Metropolitan Education District
Riverside County Superintendent of Schools
San Bernardino County Superintendent of Schools
OPPOSITION
None received.