BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 1610|
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THIRD READING
Bill No: AB 1610
Author: Assembly Budget Committee
Amended: 10/7/10 in Senate
Vote: 27 - Urgency
PRIOR VOTE NOTE RELEVANT
SUBJECT : Budget Act of 2010: Education
SOURCE : Author
DIGEST : Senate Floor Amendments of 1/7/10 delete the
prior version of the bill which expressed the intent of the
Legislature to enact statutory changes relating to the
Budget Act of 2010.
This bill now makes the necessary statutory changes in the
area of Education in order to enact modifications to the
2010 Budget Act.
ANALYSIS : This bill makes the following changes
necessary to effectuate the 2010 Budget Act:
1. K-12 Education
A. Revenue Limit Payment Deferral. Defers a total
$1.7 billion in revenue limit payments for K-12
schools from April, May and June of 2010-11 to July
of 2011-12. This reduces 2010-11 appropriations, but
allows schools to retain general purpose funds for
CONTINUED
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programs in 2010-11.
B. K-12 Inter-Year Deferral Hardship Waiver.
Effective in 2011, allows LEAs facing financial
hardship to continue to receive June apportionment
payments scheduled to be deferred to July. A total
of $300 million in school apportionment relief is
authorized for LEA hardship waivers in June 2011. In
order to be eligible for hardship waivers, school
districts, county offices of education and charter
schools must demonstrate that they will be unable to
meet June payroll obligations without deferral
waivers.
C. K-12 Payment Deferrals. Continues about $906
million in inter-year categorical payment deferrals
(from June to July of 2011).
D. Appropriates Proposition 98 Settle Up Funds.
Provides $210 million in one-time funds for K-12
schools and community colleges to satisfy Proposition
98 settle up obligations in 2009-10. Funds will be
allocated to K-12 schools and community colleges on a
per pupil basis and will count as payment against
prior year mandate claims. (These funds are in
addition to nearly $90 million in settle-up fund
provided for 2010-11 mandate costs appropriated in
the budget bill. This brings total 2009-10 settle up
funding to $300 million.)
E. Revenue Limit Deficit Factors. Establishes
county office of education revenue limit deficit
factor of 18.250 percent and school district revenue
limit deficit factor of 17.963 percent in 2010-11 to
continue revenue limit funding at 2009-10 levels.
Revenue limit deficit factors keep track of foregone
COLA increases in recent years, so they may be
restored in future years when state funds are
available.
F. Cost- of- Living Adjustments (COLAs).
Establishes a zero percent COLA for K-12 programs in
2010-11, instead of a negative COLA of -0.39 percent,
as currently estimated. However, revenue limit
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deficit factors are decreased by the amount of the
negative COLA.
G. 2009-10 Categorical Savings. Implements various
categorical program reductions and program backfills
to reduce appropriations in order to achieve $360
million in one-time program savings for various
programs in 2009-10, and to achieve a $340 million
reduction for the K-3 Class Size Reduction program in
2009-10.
H. Establishes One-Time Statutory Appropriation for
K-3 Class Size Reduction Program. Appropriates an
unspecified amount of funding for the K-3 CSR program
in 2010-11 as determined by the Superintendent of
Public Instruction.
I. Categorical Flexibility - Consolidate ELAP into
EIA. Folds English Language Assistance Program
(ELAP) funding into the Economic Impact Aid (EIA)
funding to better serve English learner pupils. This
action repeals the ELAP statute and clarifies that
local educational agencies may continue using this
funding for English language Professional Development
Institutes.
J. Access to Categorical Flexibility Funds for New
Schools. Ensures that new charter schools created
since 2008-09 can access categorical flexibility
funds in 2010-11.
AA. Charter School Facility Grant Funding. Converts
funding from a reimbursement basis to a grant basis
commencing in 2009-10, allowing the program to
receive funding in the same year it is earned.
BB. County Court Schools Funding. Authorizes county
court schools to qualify for Economic Impact Aid
funding, beginning in 2010-11, which will provide up
to $3.1 million in new funding for economically
disadvantaged and English learner pupils. States
intent that the average daily attendance records of
county court schools be reviewed as part of those
schools' routine audits.
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2. Child Care
A. Reserve Cap. Places a five percent cap on local
child care provider reserves. This cap only applies
to the state funds portion of the centers reserves.
B. Administrative Allowance. Lowers the limit for
the administrative and services allowance of child
care contracts from 19 percent to 17.5 percent.
C. License-Exempt Provider Reimbursement Rate.
Lowers the license-exempt child care provider
reimbursement rate from 90 percent to 80 percent of
the 85th percentile of Regional Market Rate (RMR).
D. San Francisco Child Care Pilot. Extends the San
Francisco child care pilot project until July 1,
2013.
E. COLA. Provides zero Cost-of-Living Adjustment
(COLA) for child care providers.
F. Technical Changes. Creates technical fixes for
2009-10 child care budget.
3. K-14 Mandate Reforms
A. Modification of K-12 Mandates to Preserve
Underlying Statutes, While Eliminating or Reducing
State Mandate Costs. Makes statutory changes to
several mandates including National Board
Certification, Pupil Promotion/Retention, Pupil
Truancy Notifications, and School Accountability
Report Card in order to continue programs, but remove
unnecessary state costs. This list also includes
modifications for two very costly state mandates:
? High School Science Graduation Requirement.
Specifies that state apportionment funding is
offsetting for this mandate, which was intended to
be a part of the regular course of study, not an
increase to the total number of classes taken by
pupils.
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? Behavioral Intervention Plans. Eliminates
ongoing state costs for a pending special education
"behavioral intervention plan" mandate that is tied
to regulations adopted by the State Board of
Education, since state statute and resulting
regulations implement federal mandates.
B. K-14 Mandate Suspensions. Consistent with budget
conference committee action, suspends approximately
eight K-14 education mandates during the remaining
period of categorical program funding flexibility
(through 2012-13).
C. Collective Bargaining Redetermination. Requests
the Department of Finance to exercise its statutory
authority to request the Commission on State Mandates
to adopt a new test claim to supersede the existing
test claim for the Collective Bargaining mandate
affecting K-14 education.
D. Mandates Working Group. Establishes a working
group led by the Legislative Analyst's Office to
examine K-14 mandates and make recommendations to the
Legislature for future fiscal and policy action.
1. Community Colleges
A. Deferrals. Increases community college
apportionment cash deferrals by $189 million. Also,
with DOF approval, provides hardship exemption for
districts that do not have sufficient cash resources
to sustain the deferral.
B. ARRA MOE. Shifts $30 million in QEIA funds from
2010-11 to 2009-10 in order to maintain compliance
with the federal ARRA Maintenance of Effort
requirements.
C. Career Technical Education. Removes Career
Technical Education (CTE) from categorical
flexibility and provides an additional $20 million
for CTE.
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D. University of California
E. Retirement Plan. Repeals the intent language
that University of California (UC) not use any new
General Fund dollars for the UC Retirement Program
(UCRP).
F. University of California and California State
University
G. Student-Imposed Athletic Fees. States that
campuses cannot spend any self-imposed campus student
athletic fees on purposes other than those voted on
by the students.
H. American Recovery and Reinvestment Act.
Appropriates a total of $3 million for new ARRA
funds: $1 million for K-12, $1 million for University
of California, and $1 for California State
University.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
PQ:nl 10/7/10 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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