BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   SB 334|
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                                 THIRD READING


          Bill No:  SB 334
          Author:   Ducheny (D)
          Amended:  5/6/09
          Vote:     21

           
           SENATE EDUCATION COMMITTEE  :  5-0, 4/15/09
          AYES:  Romero, Liu, Maldonado, Padilla, Simitian
          NO VOTE RECORDED:  Huff, Alquist, Hancock, Wyland

           SENATE APPROPRIATIONS COMMITTEE  :  7-5, 5/28/09
          AYES:  Kehoe, Corbett, DeSaulnier, Hancock, Leno, Oropeza,  
            Yee
          NOES:  Cox, Denham, Runner, Walters, Wyland
          NO VOTE RECORDED:  Wolk


           SUBJECT  :    Special Education:  school facilities: new  
          construction
                        grant eligibility

           SOURCE  :     County Schools Facilities Consortium


           DIGEST  :    This bill requires the State Allocation Board to  
          apply increases in the per pupil grant amount for new  
          construction funding authorized by Proposition 1D, (AB 127,  
          [Nunez], Chapter 35, Statutes of 2006), to the per pupil  
          grant amount for special day class students, as specified.

           ANALYSIS  :    Existing law requires that new construction  
          grants be adjusted annually to reflect construction cost  
          changes, as specified, and authorizes the State Allocation  
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          Board (SAB) to adopt regulations that adjust the new  
          construction grant amounts for qualifying individuals with  
          exceptional needs.

          Existing law also specifies the methodology for determining  
          whether a school district is "eligible" for state school  
          construction funding.  This method basically requires a  
          district to compare the numbers of students that it will  
          have five years in the future to the existing building  
          space.  If the district's space is sufficient to house the  
          estimated number of students, it does not qualify for state  
          funds.  If its space is insufficient, it qualifies for  
          state funding to house the "unhoused" students determined  
          in this calculation.  New construction funds are provided  
          in the form of a per unhoused pupil grant.  The amount  
          received is calculated based upon the assumed capacity per  
          classroom.  Currently, the assumed capacity for grades K-6  
          is 25 pupils while the capacity for grades 7-12 is 27  
          pupils.  For special day class students, the assumed  
          capacity is 13 for students with non-severe disabilities  
          and 9 for students with severe disabilities.

          This bill requires an increase made to the  
          per-unhoused-pupil grant amounts also to be made to the  
          per-unhoused-pupil who is a qualifying individual with  
          exceptional needs grant amounts and requires the Office of  
          Public School Construction to recommend to SAB the amount  
          of those adjustments so that they reflect increase made  
          pursuant to specified provisions of law.

           Prior legislation  

          AB 100 (Mullin), of 2008, among other things, would have  
          required specified increases to the grant amount for all  
          new construction grants, including special day class  
          construction grants, and would have authorized districts  
          and county offices to apply for a supplemental grant to  
          retroactively provide the six percent increase to new  
          construction grants authorized by the SAB in 2008 for  
          special day class students.  AB 100 was ultimately vetoed  
          by the Governor whose veto message read, in pertinent part:

            Provisions in this bill would set an undesirable  
            precedent by providing a retroactive increase to school  







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            district per-pupil construction grants.  This provision  
            conflicts with the full and final apportionment  
            provision of the School Facilities Program, which  
            requires districts to certify that the funding received  
            is sufficient to complete the project for which the  
            grants are intended.  Furthermore, with California's  
            current fiscal climate, it is imprudent to increase  
            construction grants at this time, particularly  
            considering it is uncertain when the next school bond  
            measure may be approved by the voters.

          SB 704 (Ducheny), of 2007, was essentially identical to  
          this bill.  SB 704 was ultimately held under submission in  
          the Assembly Appropriations Committee.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          According to the Senate Appropriations Committee:

                          Fiscal Impact (in thousands)

           Major Provisions                2009-10     2010-11     
           2011-12  Fund
           
          Special day class        $3,000    $3,000$3,000Bond*
            construction

          *Proposition 1D

           SUPPORT  :   (Verified  6/1/09)

          County Schools Facilities Consortium (source)
          American Federation of State, County and Municipal  
          Employees
          Association of California Construction Managers
          California School Boards Association
          Coalition for Adequate School Housing
          Los Angeles County Office of Education
          Riverside County Schools Advocacy Association (RCSAA)
          Riverside County Superintendent of Schools
          Small School Districts' Association

           ARGUMENTS IN SUPPORT  :    The County School Facilities  







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          Consortium writes, "Special needs students, including those  
          who are learning disabled, blind, deaf and autistic, are  
          being left out when the state approves adjustments for  
          other K-12 classrooms based on increased construction  
          costs.  We all know that the cost for concrete, steel and  
          labor should be the same for classroom construction no  
          matter who occupies that space.  Yet there has been a  
          failure to similarly realign Special Education new  
          construction grants up to this point.  This is because  
          Special Education facilities grants are in a separate  
          Education Code Section and must be referenced specifically  
          in order to be adjusted equitably.  This bill presents no  
          added cost to the state.  This is an equity issue that may  
          cause minimal school bond pressure, but must be addressed  
          or the state may be at risk for costly litigation."  This  
          bill ensures that, going forward, special needs students  
          will receive the same increase for new facilities as their  
          counterparts in K-12 classrooms.  The bill allows county  
          offices of education and school districts to continue to  
          meet their obligations to adequately serve and house the  
          special needs students that they have responsibility for.


          DLW:do  6/1/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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