BILL ANALYSIS
SB 84
Page 1
SENATE THIRD READING
SB 84 (Steinberg)
As Amended September 10, 2009
Majority vote
SENATE VOTE : Vote not relevant
APPROPRIATIONS 11-5
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|Ayes:|De Leon, Ammiano, Charles | | |
| |Calderon, Coto, Davis, | | |
| |Fuentes, Hall, John A. | | |
| |Perez, Skinner, Solorio, | | |
| |Torlakson | | |
| | | | |
|-----+-----------------------------+-+--------------------------|
|Nays:|Conway, Harkey, Miller, | | |
| |Nielsen, | | |
| |Audra Strickland | | |
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SUMMARY : Requires the revenue limit reduction (enacted as part
of the July 2009 Budget package) associated with capturing
General Fund (GF) savings under the Quality Education and
Investment Act (QEIA) program to occur only when an equivalent
amount of additional federal or state funds are available to
school districts or charter schools, as specified.
Specifically, this bill :
1)Requires the Superintendent of Public Instruction (SPI) and
the Director of Finance (DOF) to make the determination that
additional federal or state funds are available before
enacting the revenue limit reduction, as specified. Expresses
legislative intent that first priority for restoring the
revenue limit reduction be federal funds.
2)Authorizes the additional state and federal funds specified in
this measure to be used by school districts and charter
schools as general purposes funds, as specified.
3)Requires the SPI and DOF to report to the Legislature, by
March 1, 2010, the amount of the revenue limit reduction
(reference above) that will not be eligible for restoration
SB 84
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using available federal funds.
4)Requires the State Department of Education (SDE) to use $64.9
million in one-time carryover provided under the federal Title
I set-aside grant (funds for poor and needy pupils), as
allocated in the Budget Act enacted in July 2009, to be used
for the QEIA program, as specified.
FISCAL EFFECT : According to the Assembly Appropriations
Committee:
1)Potential GF/98 cost pressure of approximately $384.7 million
to provide additional state funds to local education agencies
(LEAs) who participate in the QEIA program in order to offset
the revenue limit reduction enacted in AB 2 X4 (Evans),
Chapter 2, Statutes of 2009, as specified.
2)Expresses legislative intent that first priority for the
restoration of the revenue limit reduction be federal funds.
To the extent that additional federal funds are identified for
this purpose, this cost may be significantly reduced. For
example, the budget revision enacted in July 2009 identifies
approximately $347 million in federal funds for this purpose.
Of this amount, $165 million are federal Title I set-aside
funds (annual and carryover) and approximately $182 million
are federal School Improvement Grant funds (see comment 2)
below). As a result, if all federal funds were able to be
used, the GF/98 costs would be approximately $37.7 million.
COMMENTS
Background . The QEIA program authorizes LEAs to apply for
funding to allocate to elementary, secondary and charter schools
that are ranked in either decile one or two of the Academic
Performance Index (as determined in 2005). A total of $402
million is allocated to implement this program, which involves
reducing class size, implementing staff development, and
reducing the student to school counselor ratio at schoolsites.
According to the SDE, 487 schools receive QEIA funding.
AB 2 X4 (Evans), Chapter 2, Statutes of 2009, swept the QEIA
program funding, along with payments for community colleges, for
a total of $450 million GF savings in the 2009-10 fiscal year
(FY). In order to realize the ongoing GF savings, Chapter 2
SB 84
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reduced each LEA's revenue limit funding (general purpose) by
the equivalent amount of QEIA program funding it receives. This
reduction is in addition to the overall $2.4 billion revenue
limit cut that all LEAs received in July 2009.
Furthermore, AB 2 X4 authorized LEAs participating in QEIA to
apply, on behalf of their schoolsites, to SDE for federal Title
I set-aside funds and federal School Improvement Grant (SIG)
funds (see comment #2 below). Chapter 2 also requires SDE to
award grants to schoolsites in the 2009-10 FY pursuant to the
requirements of these federal funds.
Since July 2009, LEAs who receive QEIA program funds have
expressed strong objection to receiving the additional revenue
limit reduction without certain assurances that federal funds
would be available as specified in AB 2 X4. Also, LEAs have
objected to reducing general purpose funding (revenue limit) and
replacing it with restricted funds (federal dollars).
LEAs have asked the Legislature to ensure: 1) the revenue limit
reduction does not occur until additional federal or state funds
are available; and, 2) the additional state or federal funding
provided to them is equivalent to revenue limit funding.
This bill prohibits the revenue limit reduction associated with
the QEIA program from occurring until the SPI and DOF determine
there is additional state or federal funds available to LEAs, as
specified. It also authorizes LEAs to use the additional funds
for general purposes.
Analysis Prepared by : Kimberly Rodriguez / APPR. / (916)
319-2081
FN: 0003174