BILL ANALYSIS
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UNFINISHED BUSINESS
Bill No: SB 847
Author: Steinberg (D)
Amended: 8/26/10
Vote: 27 - Urgency
SENATE FLOOR : Not relevant
ASSEMBLY FLOOR : 77-1, 8/30/10 - See last page for vote
SUBJECT : Education finance
SOURCE : Author
DIGEST : This bill appropriates $1,201,534,585 from the
Federal Trust Fund to the Office of Planning and Research
for the 2010-11 fiscal year upon notification to the state
of a funding award pursuant to the federal Education Jobs
and Medicaid Assistance Act of 2010..
Assembly Amendments delete the Senate version of the bill
relating to the Budget Act of 2010 and replaced it with the
language relating to the appropriation of $1,201,534,585
from the Federal Trust Fund pursuant to the federal
Education Jobs and Medical Assistance Act of 2010.
ANALYSIS : Existing law requires expenditure authority to
be granted, through an appropriation in the Budget Act, a
continuous statutory appropriation or through an
appropriation in special legislation, before a state agency
or department is able to expend or allocate funds to other
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entities, such as local education agencies.
This bill:
1.Creates an urgency statute that appropriates
$1,201,534,585 from the Federal Trust Fund to the Office
of Planning and Research for the 2010-11 fiscal year upon
notification to the state of a funding award pursuant to
the federal Education Jobs and Medicaid Assistance Act of
2010 (Education Jobs Act).
2.Requires that $1,201,406,585 be transferred to the
California Department of Education for purposes of
implementing the federal Education Jobs Act, and requires
those funds to be expended as follows:
A. $1,199,906,585 to be allocated to local
educational agencies on the basis of an equal amount
per unit of 2010-11 Second Principal Apportionment
average daily attendance (P-2 ADA). Requires a
preliminary allocation equal to 90% of the estimated
final allocation, with that estimate based on 2009-10
P-2 ADA, to be allocated no later than 14 days
following the enactment of this bill or the
notification of an award for federal funding,
whichever is later.
B. $1.5 million to be available to the CDE for
administrative purposes related to the allocation of
Education Jobs Act funds to LEAs.
3.Makes $128,000 available to the OPR for the purpose of
providing oversight of funds allocated to local
educational agencies.
4. Clarifies that local educational agencies are required
to use allocated Education Jobs Act funds in a manner
consistent with the requirements of the Education Jobs
Act and any related federal regulations or guidance, and
requires the funds to be used only for compensation,
benefits and other expenses, including support services,
necessary to retain existing employees, to recall or
rehire former employees, and to hire new employees, where
those employees provide school-level educational and
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related services.
5.Authorizes any local educational agency that receives an
allocation of Education Jobs Act funds and has funds
remaining after fiscal year 2010-2011, to use those
remaining funds through September 30, 2012, for the
purposes specified.
Comments
On August 10, 2010, President Obama signed HR 1586 into
law, enacting the federal Education Jobs and Medicaid
Assistance Act of 2010 (the Jobs Act) which includes $16.1
billion in expanded Federal Medical Assistance Percentage
(FMAP) funding for the states and $10 billion in education
funding provided to the states to support an estimated
160,000 education jobs nationwide. The Jobs Act requires
that the education funds provided to the states be spent by
local education agencies to prevent teacher layoffs in the
2010-11 school year, that the funding be allocated to local
education agencies based on a state's funding formula
specified in the state's State Fiscal Stabilization Fund
application or each districts' relative share of federal
Title I funds, that states show that they have met the
maintenance of effort provisions, and that this funding not
be used to supplant state education funding or provide a
funding service.
The $10 billion in education funding will be allocated to
the state's proportional to state population; California
will receive an allocation over $1.2 billion. The U.S.
Department of Education (USDOE) estimates that this funding
will save approximately 16,500 teacher jobs in California;
an estimated 22,000 teachers received pink slips in the
spring of this year. According to United States Secretary
of Education Arne Duncan, "With the support of the jobs
bill, these educators will be helping our children learn
instead of looking for work. This is the right thing to do
for our children, for our teachers, and for our economy."
In order to ensure that states receive funding as quickly
as possible, USDOE is streamlining the application process
so that states can submit applications shortly. USDOE will
award funding to states within two weeks of their
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submission of an approvable application. The purpose of
this bill is to appropriate these expected federal funds
and to provide the CDE with the expenditure authority
necessary for it to allocate those funds, when received by
the state, to local education agencies at the earliest time
possible.
According to USDOE, it will award funding to states within
two weeks of a state's submission of an approvable
application. The purpose of this bill is to appropriate
these expected federal funds and to provide the appropriate
state entity with the expenditure authority necessary for
it to allocate those funds, when received by the state, to
local educational agencies at the earliest time possible.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 8/30/10)
California Federation of Teachers
California School Employees Association
California Teachers Association
League of Women Voters of California
Los Angeles Unified School District
Santa Ana Unified School District
Small School Districts Association
United Teachers of Los Angeles
ARGUMENTS IN SUPPORT : According to the author's office,
this bill is needed to ensure that schools receive the $1.2
billion in federal Education Jobs Fund dollars as soon as
possible and can use them for their intended purpose - to
save or create education jobs in the coming 2010-11 school
year. The author's office states that this bill is a
stand-alone bill and is not connected to the Budget Act or
the Proposition 98 funding level provided to K-12 schools.
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Arambula, Bass, Beall, Bill
Berryhill, Tom Berryhill, Block, Blumenfield, Bradford,
Brownley, Buchanan, Caballero, Charles Calderon, Carter,
Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,
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DeVore, Eng, Evans, Feuer, Fletcher, Fong, Fuentes,
Fuller, Furutani, Gaines, Galgiani, Garrick, Gatto,
Gilmore, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill,
Huber, Huffman, Jeffries, Jones, Knight, Lieu, Logue,
Bonnie Lowenthal, Ma, Mendoza, Miller, Monning, Nava,
Nestande, Niello, Nielsen, Norby, V. Manuel Perez,
Portantino, Ruskin, Salas, Saldana, Silva, Skinner,
Smyth, Solorio, Audra Strickland, Swanson, Torlakson,
Torres, Torrico, Tran, Villines, Yamada, John A. Perez
NOES: Anderson
NO VOTE RECORDED: Vacancy, Vacancy
CPM:cm 8/31/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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