BILL ANALYSIS
AB 1673
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Date of Hearing: April 14, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 1673 (Mendoza) - As Amended: April 6, 2010
Policy Committee: Education
Vote:6-2
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill requires the Legislative Analyst's Office (LAO),
subject to an appropriation for this purpose, to provide a
report to the Legislature by January 1, 2012 detailing specified
information regarding the effects of categorical budget
flexibility on adult education programs, including the following
information:
1)Budget data for the 2008-09 through 2010-11 fiscal years (FYs)
and, if available, projected school district budget actions
for the 2011-12 FY.
2)Aggregate amounts and percentage of adult education funds
diverted for other purposes other than adult education, as
specified.
3)Which, if any, adult education course offerings have been
reduced or eliminated due to the diversion of adult education
funds and the number of adult education programs that have
been discontinued in the 2009-10 or 2010-11 FY, or that are
projected to be discontinued in the 2011-12 FY due to the
transfer of adult education funds.
4)Whether school districts are charging fees for courses to
replace funds that have been diverted from adult education, as
specified.
FISCAL EFFECT
1)One-time GF administrative cost, likely less than $100,000, to
the LAO, the State Department of Education (SDE), and the
AB 1673
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California Community Colleges (CCC) to meet the requirement of
this measure. To the extent that SDE and CCC are unable to
easily access the information required by this report, costs
may increase depending on their workloads. This measure
prohibits the LAO from completing this report, unless an
appropriation is provided for this purpose in the budget act
or another statute.
2)The governor's proposed January 2010 budget provides $632.5
million for adult education programs, which includes a 19.81%
reduction carried forward from the 2009 Budget Act.
The 2009 Budget Act allocated $634.7 million for adult
education programs.
COMMENTS
1)Background . As part of the February 2009 budget process (SB 4
X3 (Ducheny), Chapter 12, Statutes of 2009), local education
agencies (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.
Adult education programs are part of the categorical
flexibility. AB 2 X4 (Evans), Chapter 2, Statutes 2009,
requires the Superintendent of Public Instruction to
apportion, from amounts in the annual budget act, to LEAs the
same relative proportion received in the 2007-08 FY for adult
education programs.
Adult education program advocates contend LEAs are
transferring large amounts of funding from their programs for
other education purposes, including closing significant
financial gaps. The California Adult Education Administrators
Association states, "Adult education is not like any of the
other 38 programs in the Tier III flexibility program and is
being hit the hardest by fund transfers. This is the reason
why it is critical to study the real impacts of the cuts to
these programs and their impact on our state's economy."
2)Categorical flexibility reporting requirement . SB 4 X3
AB 1673
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(Ducheny), Chapter 12, Statutes of 2009, requires LEAs to
report expenditures of funds under programs in categorical
flexibility in order to indicate the activities for which
these funds are expended. Chapter 12 also required SDE to
provide this information to the Department of Finance and the
appropriate legislative policy and fiscal committees by April
15, 2010, and annually thereafter until 2014. Adult
education programs are included in this reporting requirement.
According to SDE, there were 1.24 million students enrolled
in 276 adult education programs in 2007-08.
The LAO indicates it is releasing a publication in later April
or early May 2010 describing school district use of the
categorical flexibility provisions. Specifically, the LAO
surveyed district school business officials regarding which
categorical program funds they have transferred and for what
purposes. Also, school districts were asked to detail any
elimination of programs and to explain how categorical
programs were altered in any way compared to statutory
requirements prior to the implementation of flexibility.
Adult education program funds are covered in this survey.
Analysis Prepared by : Kimberly Rodriguez / APPR. / (916)
319-2081