BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 971
                                                                  Page  1

          Date of Hearing:   June 11, 2014

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Joan Buchanan, Chair
                      SB 971 (Huff) - As Amended:  April 9, 2014

           SENATE VOTE :   34-0
           
          SUBJECT  :   School finance:  categorical programs

           SUMMARY  :   Repeals or modifies the provisions of various  
          categorical programs that are no longer funded as a consequence  
          of the enactment of the Local Control Funding Formula (LCFF)    
          Specifically,  this bill  :   

             1)   Repeals the following categorical programs:

                  a.        Microcomputer software grants;
                  b.        Education Technology Grant Program; 
                  c.        Year-round School Demonstration Project;
                  d.        Categorical Education Block Grant funding;
                  e.        Pupil Retention Block Grant;
                  f.        School Safety Consolidated Competitive Grant;
                  g.        Teacher Credentialing Block Grant;
                  h.        Professional Development Block Grant;
                  i.        School and Library Improvement Block Grant;
                  j.        Instructional Television;
                  aa.       New Careers Program;
                  bb.       Certificated Staff Mentoring Program;
                  cc.       In-service Training-Personnel;
                  dd.       Professional Development and Program  
                    Improvement Act of 1968;
                  ee.       Certificated Staff Performance Awards for  
                    Improved Student Achievement in Underachieving  
                    Schools;
                  ff.       Classroom Teacher Instructional Improvement  
                    Program;
                  gg.       Training for Teachers of Mathematics Who Teach  
                    Pupils in Grades 4 to 12, Inclusive;
                  hh.       Teaching as a Priority Block Grant;
                  ii.       Teacher Reading Instruction Development  
                    Program:  Kindergarten and Grades 1 to 3, Inclusive;
                  jj.       Program to Reduce Class Size in Two Courses in  
                    Grade 9;
                  aaa.      Language Arts Enrichment Program in Grades 1  








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                    to 3, Inclusive;
                  bbb.      Class Size Reduction Program;
                  ccc.      Gifted and Talented Pupil Program;
                  ddd.      Digital High School Education Technology Grant  
                    Programs;
                  eee.      Education Technology and Professional  
                    Development Grants;
                  fff.      Supplemental School Counseling Program;
                  ggg.      Summer Vocational education;
                  hhh.      Institute for Computer Technology;
                  iii.      Physical Education Specialist Pilot Program;
                  jjj.      School-based Program Coordination Act;
                  aaaa.     International Baccalaureate Diploma Program;
                  bbbb.     Special Elementary School Reading Instruction  
                    Program;
                  cccc.     Tutoring and Homework Assistance Program;
                  dddd.     State Instructional Materials Fund;
                  eeee.     Core Reading Program Instructional Materials;  
                    and
                  ffff.     Obsolete Materials.

             2)   Modifies requirements related to the following programs  
               and provisions: 

                  a.        Community-based English Tutoring (removes  
                    references to Budget Act funding and to conditions for  
                    the receipt of funds);
                  b.        County Community Schools (removes references  
                    to revenue limit funding);
                  c.        California School Finance Authority (replaces  
                    references to revenue limit and categorical block  
                    grant funding with a reference to LCFF funding);
                  d.        Deferred Maintenance and School Facilities  
                    Emergency Repair Account (deletes references to  
                    categorical funding apportionments);
                  e.        School Safety Plans (removes references to  
                    grants);
                  f.        School Maintenance (removes reference to state  
                    deferred maintenance funding);
                  g.        School Finance (removes reference to state  
                    deferred maintenance funding);
                  h.        Computation of Average Daily Attendance (ADA)  
                    (removes reference to summer school ADA);
                  i.        Charter School Operation (removes references  
                    to revenue limit funding and the charter school  








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                    categorical block grant and replaces them with  
                    references to the LCFF);
                  j.        Community Day Schools (removes requirements  
                    related to apportionments, the minimum school day, and  
                    calculation of ADA);  and
                  aa.        High School Exit Exam (removes a reference to  
                    summer school categorical funding).

           FISCAL EFFECT  :   According to the Senate Appropriations  
          Committee, pursuant to Senate 28.8, negligible state costs.

           COMMENTS  :   Last year the Legislature enacted the Local Control  
          Funding Formula (LCFF) as part of the 2013-14 state budget.  The  
          LCFF replaces the former system of school finance, which was  
          comprised mainly by general purpose funding (provided through  
          the revenue limit) and funding that was targeted to specific  
          purposes (categorical program funding).  Each categorical  
          program had specific requirements with which local education  
          agencies (LEAs) had to comply as a condition of receiving the  
          funds.  However, funding for nearly all of those programs has  
          been rolled into the LCFF, and LEAs now receive them as  
          unrestricted funds.  Accordingly, the statutory requirements for  
          the affected categorical programs no longer apply.   This bill   
          deletes provisions for some categorical programs and modifies  
          provisions for other categorical programs that have become  
          inoperative as a result of the enactment of the LCFF.  The  
          modifications delete funding-related references or change  
          references to revenue limits to references to the LCFF.

           Staff recommendations.   Staff recommends that Section 9 of the  
          bill, which repeals the Educational Technology Grant Program be  
          deleted, because that program has already been repealed.  In  
          addition, staff recommends that Section 45 of the bill, which  
          repeals Education Section 48663, be deleted.  EC 48663 contains  
          statutory provisions governing Community Day Schools, such as  
          the definition of the minimum school day, which are not affected  
          by the implementation of the LCFF and should be retained.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          California Association of School Business Officials
          Riverside County Superintendent of Schools
           








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            Opposition 
           
          None received

           Analysis Prepared by  :    Rick Pratt / ED. / (916) 319-2087