BILL ANALYSIS
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UNFINISHED BUSINESS
Bill No: SB 64
Author: Senate Budget and Fiscal Review Committee
Amended: 6/25/09
Vote: 27 - Urgency
PRIOR SENATE VOTE NOT RELEVANT
ASSEMBLY FLOOR : Not available
SUBJECT : Budget Act of 2008: Education
SOURCE : Author
DIGEST : As it left the Senate, this bill expressed the
intent of the Legislature to enact statutory changes
relating to the Budget Act of 2009.
Assembly Amendments deleted the prior version of the bill,
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
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an additional $1.3 billion reduction for revenue
limits in 2008-09.
2. 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 2008-09 pursuant to this act.
3. Expands Funding Flexibility Provisions for LEAs .
A. 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. All of these
requirements are in effect for five years, 2008-09
through 2012-13.
B. 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 the following programs/funds: Targeted
Instructional Improvement Grants, Instructional
Materials, California High School Exit Exam, Adult
Education, Deferred Maintenance, Pupil Transportation
Equipment, and Capital Outlay. Clarifies protection
(no access to balances) for the Child Development,
Child Nutrition and English Language Learner Pilot
programs. The Economic Impact Aid, Special Education,
Home-to-School Transportation, Quality Education
Investment Act (QEIA) programs remain protected.
High Priority Schools Grant Savings . Eliminates remaining
funding of approximately $90.3 million for the High
Priority Schools Grant program in 2008-09 to conform to the
elimination of this program in 2009-10.
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.
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Charter School EIA Allocations . Restores $8.3 million in
Economic Impact Aid (EIA) 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.
Categorical Flexibility Clean-Up . Makes various technical
changes to clarify implementation of categorical program
reductions and new funding flexibility enacted as a part of
the February special session budget packages.
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 6/25/09 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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