BILL ANALYSIS �
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THIRD READING
Bill No: AB 1463
Author: Assembly Budget Committee
Amended: 6/12/14 in Senate
Vote: 21
SENATE BUDGET & FISCAL REVIEW COMMITTEE : 12-3, 06/15/14
AYES: Leno, Beall, Block, Corbett, Hancock, Jackson, Liu,
Mitchell, Monning, Roth, Torres, Wyland
NOES: Nielsen, Berryhill, Morrell
NO VOTE RECORDED: Anderson
ASSEMBLY FLOOR : Not relevant
SUBJECT : Budget Act of 2014: Omnibus K-12 Education Trailer
Bill
SOURCE : Author
DIGEST : This bill provides for statutory changes necessary to
enact education-related provisions of the Budget Act of 2014.
ANALYSIS : As part of the 2014-15 Budget, this bill makes
statutory changes necessary to implement the Budget Act.
Specifically, this bill:
1. Repay Deferrals : Repays $4.7 billion of the state's
outstanding deferral obligations owed to local educational
agencies in 2014-15. The repayment of prior deferrals will
reduce the borrowing costs that many of these entities have
borne in order to manage these deferrals over several years.
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In addition, pays-off remaining $992 million in deferrals for
local educational agencies and California Community Colleges
(CCC), contingent upon a determination of the Proposition 98
minimum guarantee made by the Director of Finance on May 13,
2015. If the latter amount of deferrals is also paid-off,
these combined repayments would eliminate all prior
deferrals.
2. Repay Mandates : Specifies the use of $450 million to pay
down the K-14 education mandates backlog, with the intent
that K-12 monies freed up from this payment could be
dedicated to implementation of the Common Core State
Standards.
3. Suspend the Proposition 98 Statutory Split : Suspends the
statutorily-specified split of the Proposition 98 minimum
guarantee between K-12, CCC, and other state agencies. This
section of statute has been suspended each year since
1992-93.
4. Reschedule Settle-Up Payment : Reschedules the appropriation
of an outstanding 2006-07 "settle-up" balance ($212 million
in non-Proposition 98 General Fund) from 2014-15 to 2015-16.
As a result, those funds are freed up for other uses.
5. Appropriate Funds Related to the Quality Education
Investment Act (QEIA): Provides the final payment of $409.6
million non-Proposition 98 General Fund to fulfill the
settlement of the California Teachers' Association v.
Schwarzenegger lawsuit that established the QEIA. The funds
would be appropriated to the QEIA program ($267 million), the
CCC QEIA Career Technical Education program ($48 million),
and the Emergency Repair Program ($94.6 million).
6. Update Mandates Block Grant : Revises the list of programs
included in the mandates block grant, rather than reimbursed
on a program-specific basis.
7. Adjust Reimbursement Rates : Increases the standard
reimbursement rate (SRR) for child care and development
programs by 5%, to $9,024.75 per unit of average daily
enrollment for a 250-day year, increased by the
cost-of-living adjustment granted by the Legislature
annually. Sets the regional market rate (RMR) to the 85th
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percentile of the 2009 survey, reduced by 13%.
8. Establish Process to Award Preschool Expansion Funds :
Commencing June 15, 2015, requires the Superintendent of
Public Instruction (SPI) to consider different criteria and
data in awarding expansion funds, and require the SPI to
prioritize applicant agencies that would maximize progress
toward achieving access to full-day, full-year services for
all income eligible four-year-olds with working parents.
Authorize a family child care home education network to be
eligible for expansion funding.
9. Establish an Early Learning Quality Rating and Improvement
System (QRIS) Block Grant : Requires the SPI to administer an
early learning QRIS block grant allocated to local consortia
to support local early learning quality rating and
improvement systems that increase the number of low-income
children in high-quality preschool programs. Sets forth
processes local consortia must fulfill to be eligible.
Require the SPI, in consultation with the executive director
of the State Board of Education, to allocate QRIS block grant
funds based on the number of California State Preschool
Program (CSPP) slots within the county or region.
10.Authorize a CSPP Contracting Agency to Retain a Higher
Reserve Fund Balance : Authorizes a CSPP contracting agency
to retain a reserve fund balance equal to 15% of the sum of
the maximum reimbursable amount of all preschool contracts,
for purposes of professional development for CSPP
instructional staff.
11.Repeal Family Fee for Part-day CSPP : Repeals the fee for
CSPP, which is levied under current law.
12.Provide Augmentation to Child Care Facilities Revolving Fund
for LEAs offering State Preschool Program : Allows local
educational agencies to apply for new funds to purchase,
renovate, or repair preschool facilities.
13.Require Minimum Qualifications of Specified Transitional
Kindergarten (TK) Teachers : Requires that teachers assigned
to a TK class after July 1, 2015, be credentialed, and by
August 1, 2020, have a minimum of 24 units of early childhood
education or childhood development, or a child development
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permit issued by the Commission on Teacher Credentialing.
Establishes the intent that TK curriculum be aligned to the
California Preschool Learning Foundations developed by the
department.
14.Set the State Median Income (SMI) for Child Care Eligibility
Purposes : Sets the SMI to 70% of the state median income in
use for the 2007-08 fiscal year, for purposes of
income-eligibility to qualify for child care programs.
15.Clarify Requirements Related to the State Child Care and
Development Fund plan : Specifies April 1 of the year that
the plan is due to the federal government as the deadline for
the California Department of Education (CDE) to provide the
plan to the Legislature and the Department of Finance. In
addition, requires CDE to provide the final plan that is
approved by the federal government and a description of any
changes made since the draft plan.
16.Require Commission on Teacher Credentialing (CTC) Review of
Permits : Requires, by July 1, 2016, the CTC to review, and
update, if applicable, conditions for issuance or renewal of
permits, which authorize: a) service in the care,
development, and instruction of children in child care and
development programs, and b) supervision of a child care and
development program.
17.Repeal County School Service Fund: Repeals existing law
which establishes the county school service fund contingency
account in the General Fund, in order to provide greater
flexibility consistent with the enactment of the Local
Control Funding Formula (LCFF).
18.Extend Encumbrance Period for the California Collaborative
on Educational Excellence : Extends the encumbrance period
for $10 million allocated in the 2013 Budget Act for the
Collaborative to the 2014-15 fiscal year.
19.Make Changes Impacting the CTC : Authorizes the State
Controller to make temporary intra-year cash transfers from
the Test Development and Administration Account to the
Teacher Credentials Fund to provide cash flow relief to the
Teacher Credentials Fund during low-revenue months. Also,
authorizes the CTC to set and charge fees to recover the
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costs of providing reviews of new and existing educator
preparation programs and require the CTC to notify the
Legislature and Department of Finance before implementing or
changing the fees.
20.Provide a Child Nutrition Cost-of-Living Adjustment (COLA):
Provides for a COLA to update reimbursement rates for meals
served through the state child nutrition programs.
21.Make Technical Changes Related to Special Education Funding :
Specifies the amounts of funding allocated in the budget
acts of 2012 and 2013 that would count toward the 2010-11
fiscal year MOE requirement for the special education
program. Also, adjusts special education General Fund
apportionments in 2014-15, based on an updated determination
of revenues related to the dissolution of redevelopment
agencies.
22.Rename the State Student Assessment System : Changes the
name of the state's new pupil assessment system from the
Measurement of Academic Performance and Progress (MAPP) to
the California Assessment of Student Performance and Progress
(CAASPP).
23.Clarify Responsibility for Administration of the
Standards-Based Test in Spanish : Clarifies that the
administration of the Standards-Based Test in Spanish to
English-language learners is funded by the state, and the
administration of the test to non-English learners in dual
immersion classrooms is at the discretion and expense of
local educational agencies.
24.Make Changes Related to Retirees Participating in State
Teachers' Retirement Plan (STRS ): Extends, until June 30,
2017, an exemption that allows retired members of the STRS
Defined Benefit Program to earn specified postretirement
compensation in any one school year, without a reduction in
retirement allowance.
25.Make Changes Impacting Charter Schools : Authorizes, for the
2014-15 fiscal year only, charter schools whose charters were
granted by their chartering authority before July 1, 2014 to
claim average daily attendance for purposes of apportionments
from the adult education fund for schools or classes
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maintained for adults in correctional facilities, under
specified circumstances. Also, exempts, for the 2014-15
fiscal year only, charter schools whose charters were granted
by their chartering authority before July 1, 2014 and that
provide instruction exclusively in partnership with specified
career preparation programs from requirements that a pupil
over 19 years of age be continuously enrolled in public
school and making satisfactory progress toward a diploma in
order to generate charter school apportionments.
26.Establish in Statute the Career Pathways Trust Program :
Establishes a statutory framework for the Career Pathways
Trust competitive grant program for K-14, including
requirements of grant recipients and of the SPI for
administration of the program.
27.Revise Requirements for Local Reserve Funds: Beginning in
2015-16, requires the governing board of a school district,
when adopting a budget that includes a reserve above the
local minimum recommended reserve adopted by the State Board
of Education (SBE), to provides the following information for
public review: the minimum recommended reserve adopted by the
SBE; the district's fund balance in excess of the recommended
reserve; and a statement substantiating the need for the
excess reserve level. In the event that ACA 1 is passed by
voters, the following changes will apply: (i) in the
immediate fiscal year following a fiscal year that a transfer
is made to the Proposition 98 reserve, local districts would
be prohibited from having reserves in excess of two to three
times the minimum recommended reserve amount; (ii) districts
with less than 400,000 units of average daily attendance will
be capped at two times, while districts with more than
400,000 would be capped at three times this amount; (iii) A
county superintendent of schools could grant a school
district an exemption from this requirement for up to two
years within a three year period if the district provides
documentation indicating the need for a reserve above these
levels.
28.Make Changes Related to School Facilities : Specifies that
when moneys transferred to the General Fund each year from
the Public School Building Loan Fund and State School
Building Aid Fund exceed the amount required to reimburse the
General Fund for specified purposes, the excess amount would
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be appropriated from the General Fund for purposes of the
School Facilities Emergency Repair Account (rather than the
appropriation under existing law to the Leroy Greene State
School Building Lease-Purchase Law of 1976 and the State
School Deferred Maintenance Fund). Further, eliminates the
State School Deferred Maintenance Fund.
29.Make Changes Regarding Independent Study Program :
Streamlines some of the requirements of the current
Independent Study program, such as, not requiring a teacher
signature on every assignment, permitting year-long
Independent Study agreements, and allowing for electronic
parent signatures. Also, Creates a new course-based
Independent Study option with requisite standards for
instructional minutes, course rigor, and quality.
30.Reappropriate Specified Funds : Reappropriates and makes
available for encumbrance until June 30, 2018, $381 million
that was originally appropriated to CDE for allocation to
local educational agencies, for specified purposes, in the
Budget Act of 2013.
31.Include Other Provisions : Makes additional technical
changes, including but not limited to changes to remove
references to repealed code sections related to mental health
services; provides that, if the Commission on State Mandates
determines that the bill contains costs mandated by the
state, reimbursement for those costs shall be made pursuant
to existing law; and, declares that it is to take effect
immediately as a bill providing for appropriations related to
the budget bill.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: Yes
According to the Senate Budget and Fiscal Review Committee,
funds appropriated in this bill will be applied toward the
minimum funding requirements for school and CCC districts
imposed by Section 8 of Article XVI of the California
Constitution (Proposition 98).
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PQ:nl 6/15/14 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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