July 23, 2009

Assembly Budget Committee Releases Draft Floor Report

By David Walrath

Following is the education portion of the draft summary of the budget agreement affecting schools. The home-to-school transportation provision reflects a 20% cut.  The specific revenue limit deficit factors and categorical per ADA cut amounts will be presented later. 

Edited July 23, 2009 at 2:32 p.m. Click here for the FINAL full report.

Assembly Budget Committee 10

THE 2009-2010 STATE BUDGET

DRAFT FLOOR REPORT

Education (Proposition 98)

¨ Provides approximately $49.1 billion for the 2008-09 fiscal year and approximately $50.4 billion for the 2009-10 fiscal year in total Proposition 98 funding and funds at the minimum guarantee in both years.

¨ Captures $1.6 billion in unallocated categorical program funds in 2008-09 in order to reduce K-14 funding to the minimum guarantee under Proposition 98.

¨ Reduces school district and county office of education revenue limits by $2.2 billion in 2009-10, including a commensurate categorical reduction for Basic Aid Districts and a partial backfill of $282 million for Home to School Transportation.

¨ Defers $1.7 billion in revenue limit payments from 2009-10 to 2010-11.

¨ Provides several additional program and funding flexibility options, beyond what was provided in February, as follows:

o Suspends the High School Exit Exam as a requirement for graduation for students with disabilities beginning in 2009-10;

o Authorizes local education agencies (LEAs) to reduce the number of instructional days to 175 per year through 2012-13;

o Suspends the requirement to purchase newly adopted instructional materials and suspends regular State Board of Education adoptions through 2012-13;

o Allows school districts to sell surplus property not purchased with state funds and use proceeds for general fund purposes for nearly three years;

o Suspends the remaining routine maintenance reserve requirement of one percent through 2012-13 for school districts that meet the facility requirements of the Williams settlement;

o Provides LEAs with access to additional, prior-year fund balances in 2009-10 beyond those provided in February. Additions include: Targeted Instructional Improvement Grants, Instructional Materials, California High School Exit Exam, Adult Education, ROC/P Facilities, and Deferred Maintenance.

¨ Changes the Charter School Facility Grant Program from a reimbursement program to a grant program.

¨ Lowers the minimum reserves for economic uncertainty to one-third of the currently required level for 2009-10 provided that LEAs make annual progress in fully restoring these reserves by 2011-12.

¨ Prohibits the assignment of a negative or qualified fiscal certification due to a substantial loss of federal Stabilization Funds in 2011-12 and 2012-13.

¨ Funds the Quality Education Investment Act (QEIA) in 2009-10 with ongoing, rather than one-time, Proposition 98 funds for a General Fund savings of $450 million. Eligible districts may apply for federal Title I funds to backfill the redirection of ongoing Proposition 98 funds. Extends the QEIA program for an addition year, though 2014-15.

¨ Certifies the amounts of the Proposition 98 minimum guarantees and outstanding balances for the 2005-06 through 2008-09 fiscal years, including that the maintenance factor for 2008-09 year is $11.2 billion and provides that this amount will be restored to the Proposition 98 base as otherwise provided in the Constitution.

Child Care & Development (Proposition 98)

¨ Restores Child Care Services for CalWORKs families and families transitioning off CalWORKs.

¨ Rejects the Governor's proposal to increase family fees, which would have doubled fees for low income families.

¨ Denies the Governor's proposal to eliminate funding for ROC/P and Adult Education CalWORKs Services.

¨ Eliminates the Extended Day Care (Latchkey) program, but retains funding for services from July 1 until the start of school to ensure no children are immediately displaced, and adopts language to ensure that children receive priority placement in other subsidized programs.

¨ Holds the Regional Market Reimbursement rates constant at the 2005 levels, reimbursing up to a maximum of the 85th percentile.

¨ Appropriates $110 million in American Recovery and Reinvestment Act (ARRA) federal stimulus funds in order to both hold program levels constant and increase child care slots in the voucher program.

¨ Clarifies that reimbursements to child care service providers based on a daily rate may only be authorized under specified circumstances.

For your information:

Higher Education

¨ Includes $2 billion in cuts to UC and CSU, which is the same level as proposed by the Governor and reimbursement authority of $1.2 billion in federal ARRA funds. However, this proposal treats the UC and CSU equally and retains academic preparation programs.

¨ Achieves about $700 million in savings from Community Colleges, but offsets the reduction with an additional $130 million in federal funds and $80 million from restoring the fee increase to $26 per unit.

¨ Provides the Community Colleges Categorical Program "flexibility" by allowing funding from selected programs to be moved to better meet the needs of the districts.

¨ Rejects the Governor's cuts to Cal Grants, but shifts $32 million of General Fund costs to the student aid fund.

¨ Revises the Quality Education Investments Act (QEIA) allocation of $48 million for the Community Colleges Career Technical Education program from 2010-11 through 2013-14.