BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2216
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          Date of Hearing:   April 30, 2014

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Joan Buchanan, Chair
                  AB 2216 (Muratsuchi) - As Amended:  March 28, 2014
           
          SUBJECT  :   Regional occupational centers and programs:  funding

           SUMMARY  :   Requires that specified regional occupational centers  
          and programs (ROC/Ps) shall receive an annual appropriation from  
          the General Fund (Proposition 98) and make various findings and  
          declarations.  Specifically,  this bill  :  

          1)Requires that an ROC/P established and maintained by local  
            education agencies (LEAs) or a joint powers authority (JPA)  
            shall receive an annual appropriation from the General Fund  
            for purposes of providing high-quality career technical  
            education (CTE) services.

          2)Requires that the funds shall be apportioned directly to the  
            ROC/P based on a formula agreed upon by participating LEAs.

          3)Makes findings and declarations regarding the importance and  
            current status of CTE programs.

          4)States the intent of the Legislature to enact legislation to  
            promote and support high-quality CTE programs, including, but  
            not limited to, ROC/Ps, linked learning, partnership  
            academies, and career pathways, to help prepare and engage  
            pupils for transition to postsecondary educational  
            opportunities and the workforce.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   California has several state-funded programs that  
          support CTE, including the following:

                  ROC/Ps   provide regional CTE during the school day,  
               after school, and in the evening in high schools and  
               regional centers.  As a categorical program, ROC/Ps were  
               last funded at $384 million per year.  From 2008-09 to  
               2012-13, districts were given flexibility over the use of  
               these funds.  In 2010, approximately 42% of districts  
               responding to a survey by the Legislative Analyst's Office  
               reported using at least some of their ROC/P funds to  








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               support other programs.   In 2013-14, ROC/P  funds were  
               rolled into the local control funding formula (LCFF).   
               However, districts are required to maintain their 2012-13  
               level of ROC/P funding through 2014-15.  This provides  
               ROC/Ps with some short term certainty during the transition  
               to the LCFF.  

                 Career Pathways Trust  provides $250 million in one-time  
               funding in 2013-14 for competitive grants to improve  
               linkages between CTE programs at schools, community  
               colleges, and local businesses.  These funds are available  
               for expenditure through 2015-16.  
                 
                   CTE Pathways Initiative  provides $48 million for  
               purposes similar to the Career Pathways Trust.  This  
               initiative, which sunsets at the end of 2014-15, also  
               provides support for California Partnership Academies and  
               Linked Learning, which support small learning cohorts that  
               integrate a career theme with academic education.  
                 
                   Specialized Secondary Programs  provide $4.9 million in  
               competitive start-up grants for pilot programs that prepare  
               students for college and careers in specialized fields,  
               including math, science, and the arts.  
                 
                   Agricultural CTE Incentive Program  provides $4.1 million  
               in ongoing funding for the purchase of non-salary items,  
               such as equipment and field trips, for agricultural  
               education.  
                 
           The Governor has proposed to roll funding for Specialized  
          Secondary Programs and Agricultural Education into the LCFF.   
          Districts currently receiving those funds would continue to  
          receive them, but they would be counted toward achievement of  
          their LCFF funding targets.

          In addition to the programs listed above, the LCFF includes a  
          2.6% "add-on" for the 9-12 grade span funding for "college and  
          career readiness."  Based on a target funding level of $8,289  
          for this grade span, that is about $215 per average daily  
          attendance for these programs.

           Double funding  .  Because ROC/P funding was rolled into the LCFF,  
          districts continue to receive it.    This bill  provides a  
          separate apportionment for ROC/Ps that would be in addition to  








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          the ROC/P funds that districts continue to get as part of their  
          LCFF apportionment, thereby double funding them.  

           The method of allocating funds is unclear  .  The bill provides  
          that "appropriated funds shall be apportioned directly to the  
          regional occupational center or program based on a formula  
          agreed upon by the local educational agencies participating in  
          the regional occupational center or program."  This appears to  
          mean that each ROC/P could-in collaboration with its member  
          LEAs-establish its own apportionment formula.  It is not clear  
          how the CDE would apportion funds if locally-developed formulas  
          require factors that are not reported to or collected by the  
          state and if different ROC/Ps develop different formulas.  

           Alternative approach.   After rolling ROC/P funding into the  
          LCFF, the Legislature imposed a maintenance of effort  
          requirement on districts, requiring them to spend at least as  
          much on ROC/Ps in 2014-15 and 2015-16 as they did in 2012-13.   
          The purpose was to protect existing ROC/P investments and  
          infrastructure while an alternative model (if any) was  
          developed.  However, no agency was assigned the responsibility  
          of making recommendations for an alternative model.  According  
          to the author's office, the uncertainty surrounding the future  
          of ROC/Ps undermines program quality and planning for the  
          future.  Therefore, staff recommends that the bill be amended to  
          delete its current contents and instead (1) extend the  
          maintenance of effort through 2016-17 and (2) require the  
          Superintendent of Public Instruction to convene a task force to  
          study funding models for ROC/Ps and to report recommended  
          options to the Legislature and Director of Finance on or before  
          September 1, 2016. 

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Association of Regional Occupational Centers and  
          Programs
          City of Hermosa Beach
          City of Torrance
          Napa County Office of Education
          Palos Verdes Peninsula Unified School District
          Redondo Beach Chamber of Commerce
          South Bay Cities Council of Governments
          Numerous individuals








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           Opposition 
           
          None received
           
          Analysis Prepared by  :    Rick Pratt / ED. / (916) 319-2087