BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
847 (Steinberg)
Hearing Date: 08/31/2010 Amended: 08/30/2010
Consultant: Dan Troy Policy Vote: NA
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BILL SUMMARY: SB 847, an urgency measure, would appropriate
over $1.2 billion in federal funds available to the state under
the recently enacted federal Education and Medicaid Assistance
Jobs Act.
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Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
Education Jobs Act $1,201,535
Federal
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STAFF COMMENTS: This bill meets the criteria for referral to the
Suspense File.
The federal government recently enacted the Education Jobs and
Medicaid Assistance Act of 2010 (Act), Public Law 111-226,
which, in relevant part, appropriates$10 billion nationwide to
support education jobs. Per formula, California's share of that
funding is $1,201,534,585.
This bill would:
Make $128,000 available to the Office Planning and
Research to oversee the expenditure of the federal dollars.
Make $1,500,000 available to the Department of Education
for administrative purposes related to implementing the
Act.
Allocate $1,199,906,585 to local education agencies in
an amount calculated to be an equal proportion of the
amount calculated for the 2010-11 fiscal year for 1) total
school district revenue limits, 2) total county office of
education revenue limits, and the 3) the revenue limit
portion of charter school operational funding, as
appropriate.
Distribute a preliminary allocation equal to 90 percent
of 2009-10 funding to be made within 14 days of the
effective date of this bill or notification to the state of
a federal funding award, whichever is later.
The bill further specifies that funds received by local
education agencies must be expended in a manner consistent with
the requirements of the Act and any relevant federal regulations
and guidance. These requirements, as detailed in the bill,
include compensation, benefits, and other expenses, including
support services, that are necessary to retain, existing
employees, to recall or rehire former employees, and to hire new
employees, where those employees provide school-level
educational and related services. The bill further allows local
education agencies to use these funds through September 30,
2012.
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SB 847 (Steinberg)
The Education Jobs and Medicaid Assistance Act was signed into
law on August 10, 2010. The Act 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 Act requires that the
education funds provided to the states be spent by LEAs to
prevent teacher layoffs, that the funding be allocated to LEAs
based on a state's primary funding formula as specified in the
state's State Fiscal Stabilization Fund (SFSF) application or
each districts' relative share of federal Title I funds, that
states show that they have met maintainence of effort
provisions, and that this funding not be used to supplant state
education funding or provide a funding reserve.
The U.S. Department of Education (USDOE) estimates that this
funding will save approximately 16,500 teacher jobs in
California. In order to ensure that states receive funding as
quickly as possible, USDOE is streamlining the application
process to allow states to submit applications in an expedited
manner. Passage of this urgency measure would provide immediate
relief to local education agency budgets.