BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          AB 2216 (Muratsuchi) - Regional Occupational Centers and  
          Programs
          
          Amended: July 2, 2014           Policy Vote: Education 6-0
          Urgency: No                     Mandate: No
          Hearing Date: August 4, 2014                                 
          Consultant: Jacqueline Wong-Hernandez                       
          
          This bill meets the criteria for referral to the Suspense File. 
          
          Bill Summary: AB 2216 extends the existing maintenance of effort  
          (MOE) requirement for local educational agencies that operate  
          Regional Occupational Centers and Programs (ROCPs) from the end  
          of the 2014-15 fiscal year to the end of the 2016-17 fiscal  
          year.

          Fiscal Impact: This bill requires local education agencies  
          (LEAs) that administer or participate in ROCPs to continue to  
          earmark funding ($323 million statewide) for ROCPs that could  
          otherwise be spent flexibly on other educational expenses and  
          local priorities. 
              Cost pressure: Approximately $323 million in Prop 98  
              General Fund cost pressure for the state to backfill in  
              local option monies the amount of funding this bill would  
              require LEAs to spend on ROCPs.

          Background: Existing law establishes various career technical  
          education programs for public schools, including ROCPs that  
          allow students from multiple schools or districts to participate  
          in career technical training programs regardless of the  
          geographical location of their residence in a county or region.  
          (Education Code � 52300 et seq.)

          Existing law authorizes the following types of ROCP operational  
          models:  
           
           1)   County ROCP:  Established and maintained by county  
               superintendents, with the consent of the State Board of  
               Education (SBE), to provide education and training in  
               career technical courses.   

           2)   Joint Powers Agency ROCP:  Established and maintained by  








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               two or more school districts forming a joint powers agency  
               ROCP to serve students who are enrolled in those districts.  
                 
                 
           3)   Single District ROCP:  Existing law authorizes certain very  
               large districts, who do not wish to be part of a county  
               ROCP, to apply to the SBE for permission to establish and  
               maintain a ROC/P for students enrolled in the district.   
                (EC � 52301)
          
           In 2013, the Local Control Funding Formula was enacted. The LCFF  
          replaces almost all sources of state funding, including funds  
          for ROCPs and most categorical programs, and uses new methods to  
          allocate these resources and future allocations to school  
          districts, charter schools, and county offices of education. The  
          LCFF allows LEAs much greater flexibility to spend the funds  
          than under the prior system. This formula is designed to provide  
          districts and charter schools with the bulk of their resources  
          in unrestricted funding to support the basic educational program  
          for all students, plus supplemental funding, based on the  
          enrollment of educationally disadvantaged students (low-income  
          students, English Learners, and foster youth), to increase or  
          improve services to these high-needs students. 
           
           Existing law imposes an MOE requirement for ROCP funding, within  
          local LCFF funds, under which a school district, county office  
          of education, or joint powers agency for the 2013-14 and 2014-15  
          fiscal years, inclusive, must spend at least as much on ROCPs as  
          they did in the 2012-13 fiscal year. 

          Proposed Law: This bill extends the existing MOE requirement for  
          school districts, joint powers agencies, and county offices of  
          education that fund ROCPs from the end of the 2014-15 fiscal  
          year to the end of the 2016-17 fiscal year.

          Staff Comments: Under existing law, LEAs will be able to use  
          money previously allocated to ROCPs for any educational purpose  
          under the LCFF. This bill would, instead, continue to restrict  
          the amount of funding an LEA spent on ROCPs in 2012-13, by  
          reserving that amount for continued ROCP spending. 

          This bill does not appropriate new state money, but it does  
          create cost pressure on all local funds by forcing an LEA to  
          spend a set minimum on ROCPs. Any LEA that is not receiving  








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          additional state funds through the LCFF (because it was already  
          receiving more than its current LCFF allocation, and is being  
          "held harmless"), which includes 31 counties, will (to the  
          extent that it is planning to redirect ROCP funds to another  
          purpose in 2016-17) have to reduce other planned expenditures in  
          order to protect ROCP funding.  By functionally requiring  
          certain LEAs to reduce planned funding for other programs in  
          order to continue ROCPs as their previous level, this bill  
          creates cost pressure on the state to provide LEAs with  
          additional funding to backfill the restricted funds. The current  
          MOE restricts approximately $323 million in Prop 98 General Fund  
          held at the local level.